Shaer Halewood, Director of Resources, introduced a report which updated Members on the possibility of setting up a North West Mutual Bank which Wirral Council, in conjunction with two partner Councils, Liverpool and Preston, had been supporting. 

The Council at its meeting on 5 March, 2019 had agreed a £5m commitment in the capital programme 2019 – 2024 as an investment in the North West Mutual Community Bank. The proposal to create a Mutual aligned with the Community Wealth Building Strategy and if successfully implemented would help to retain financial resources within the region, provide social benefits and employment opportunities benefits and help tackle financial exclusion.

Shaer Halewood responded to a number of comments from Members and stated that there was no formal agreement yet with regard to the share of investment between the three Councils, but that the Committee could agree to Wirral’s share being up to a third as a maximum amount. It was hoped that once the proposals were further developed other investors, such as Pension Funds, would be sourced, which would reduce the Council’s overall investment of up to £5m.

Members expressed their support for the proposal, particularly with regard to the social benefits which would flow from the proposal, including for those residents who were financially excluded and for small and medium businesses.

On a motion by the Chair, seconded by Councillor Anita Leech, it was -

Resolved – That, subject to a satisfactory due diligence exercise review:

(1)  a commitment to jointly fund the costs / resources as outlined in paragraph 3.61 of the report and up to a maximum amount of £350,000, to take the North West Mutual to the banking licence application stage, subject to the outcome of the initial due diligence, be approved;

(2)  a commitment to a further joint fund as specified in paragraph 3.63 of the report and up to a maximum of £200,000, to buy in to the use of intellectual property developed by other Mutuals, be approved;

(3)  it be agreed to enter into a cost sharing arrangement with other Councils for the purpose of the above, up to a maximum amount of £185,000 if an equal three-way division of funding is applied; and

(4)  a further report be brought to Policy and Resources Committee once the next stage is completed and prior to any investment decision with the North West Mutual.