The Building Societies Association (BSA) has issued a growth plan calling for capital reform to unlock the full potential of the UK’s financial mutuals.

Launched at a Westminster reception celebrating 250 years of the building society movement, the Building Society Sector Growth Plan calls for better access to mutual capital and appropriate capital regulations.

In terms of capital, it wants ministers to remove barriers that prevent building societies from financing growth and innovation.

On regulation, it wants a proportional approach reflecting the sector’s lower-risk lending, which would enable fair competition with banks.

BSA says these changes will enable building societies to “accelerate innovation and expand their role as champions of ordinary working people, helping more people buy their own home, safeguarding savings and strengthening communities across the UK”.

Over the past 15 years, the apex adds, the building society sector has grown “stronger and more inclusive”.

Outlining its “significant contribution to the UK”, BSA says the sector adds £7.2bn a year to the economy.

It points to “£4bn extra benefit in people’s pockets through better interest rates and member rewards”.

Between them, building societies serve 27 million members, and account for 29% of the UK mortgage market and 37% of all first-time buyer lending, along with 47% of all cash ISA balances.

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The sector operates 35% of UK financial high street branches, up from 14% in 2012, and has 95% of its employees based outside London.

“The sector’s impact is clear,” said BSA, “but with improved access to mutual capital and more appropriate capital requirements building societies could do even more.

“Building societies are also leading on innovation, from new products for first-time homebuyers to financial education in schools, and initiatives like UK Savings Week.”

It added: “To achieve change, it is vital that building societies have a seat at the policy table, both nationally and locally, where decisions are made about housing, savings and financial inclusion. Their member insights can help shape solutions to key challenges, from local housing development and energy efficiency to the future of the high street.”

Robin Fieth

BSA’s outgoing CEO Robin Fieth added: “We are not asking for special treatment. We are asking for recognition of the vital role building societies and other financial mutuals play in delivering inclusive growth, financial resilience, and long-term value for communities across the whole of the UK. We are asking for a seat at the policy table.

“In 1775, our founders were the disruptors and innovators of their time. Today, that remains the case. Our growth plan urges the government to stand by its manifesto pledge to double the mutual and co-operative economy in the UK and put building societies at the heart of a fairer, more resilient economy for everyone.”

The Westminster event was the culmination of celebrations marking the movement’s anniversary, following receptions at Holyrood, Stormont and the Senedd.

New chief executive

Fieth retires from his role next month after 12 years and will be replaced on 1 December as CEO by Sarah Harrison, who currently serves as chief operating officer at the Cabinet Office.

Harrison has more than 30 years’s experience in strategic leadership roles as a public servant, working both for regulators and the government.

BSA said her “extensive senior experience of government and regulation, her expertise in communications and corporate affairs and her leadership roles in relation to both consumer engagement and digital transformation ideally equip her to take on the leadership at such a pivotal moment”.

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Harrison’s previous roles include chief operating officer at the former business department (BEIS), CEO of the Gambling Commission and senior roles at the energy regulator, Ofgem. Her earlier career was in government and public relations consultancy.  

Sarah Harrison

She was awarded an MBE for services to consumer protection in 2016 and was made a Companion of the Order of the Bath (CB) in the 2025 birthday honours for services to government productivity and regulatory excellence. 

“As a strong advocate of the customer-ownership business model I feel really privileged to be asked to join the BSA,” she said, “representing building societies and credit unions which provide vital financial services to consumers and communities across the UK.

“With the government’s commitment to double the size of the mutual and co-operative economy, now is such an exciting time for the sector and a real opportunity to contribute to the growth and well-being of the UK economy.

“Financial services are critical to the government’s growth ambitions and I’m looking forward to working with the sector and stakeholders to ensure building societies and credit unions interests are at the heart of this ambition.”

BSA chair Julie-Ann Haines added: “After an extensive recruitment process, we are delighted that Sarah has agreed to lead the BSA. She comes to us with significant leadership experience alongside energy and passion for the mutual model.

“I’m confident she will provide the strategic leadership to continue to develop the role of building societies and credit unions at the heart of a thriving UK financial services sector.

“I would like to thank Robin Fieth for the outstanding contribution he has made during his 12 year tenure. Having joined the BSA while the sector was still bruised from the de-mutualisations of the 1990s and the 2008 financial crisis he has led us back to the thriving heart of financial services with mutuals on the march. We wish him all the very best for the future.”