The Chancellor’s Budget initiative on putting to charitable use the estimated £15bn of unclaimed bank balances, whilst retaining insured protection for legitimate claimants, presents an opportunity to fund the financial inclusion objectives favoured by CCBS’s Social Banking Foundation proposals.

First put to the banking industry by CCBS in 2000, and to the Chancellor in February 2001, as an alternative to a windfall tax (New Statesman 26-3-2001), a Social Banking Foundation would distribute its resources wisely across a range of social banking activities (but flexibly and in partnership with other sources where they exist) including the proposed community bank network, rural post office facilities, remote ATMs, credit union support, community finance, micro-credit initiatives and debt advice. [ See outline in the Articles Section of this website.]

Although the original proposal was based on the concept of a small annual levy on the banks, in return for the privileges conveyed by their authorization to conduct banking business, the unclaimed bank balances are potentially an alternative or supplementary funding source.

The banks are obliged to respond to the Chancellor before the November pre Budget statement and, with the approval of CCBS’s Steering Group, the Treasury, BBA, BSA, and the Big 4 banks have been made aware of our interest. Also, The Balance Foundation has been made aware of our suggestion that a specific range of financial inclusion beneficiaries, in line with the government’s agenda, is more likely to win the support of the banking industry than an unrestricted fund.