When growth is the only option…

Although the General Election is not expected before November, most political commentators would agree that campaigning has already begun in earnest.

The problem of course is that money is in short supply, so manifesto pledges are either modest and within current means or funded by growth if more aspirational. 

We can’t rely on growth to just happen. Creating the right conditions must be a priority. 

That’s why we’re emphasising to Government and Shadow Ministers the importance of keeping reform of the Consumer Credit Act (CCA) on their agenda. 

Millions of credit transactions each day are underpinned by legislation that actually makes it harder to do business. The CCA does not even recognise the concept of a digital customer, and it mandates the use of language that falls far short of the standards expected by the Consumer Duty.

What’s more, innovation in the consumer credit market has been stifled for decades because the CCA dictates the shape of credit products. So, with the CCA creating such barriers to business, what exactly is it preventing?

Growth in green finance. Sector experts note that the low hanging fruit in Net Zero preparations have already been picked – for instance coal power is no longer a major feature in the grid.

The next stage of the green transition will focus on points like heating and retrofitting. Unlike macro issues of national infrastructure, this stage will rely on millions and millions of individuals making millions and millions of green choices, the totality of which will get the UK closer to Net Zero.

Those green choices have to be easy to understand and affordable for the customer, and viable for the lender. The CCA is not the platform to deliver this.