EDINBURGH CONTRIBUTES TO DEBATE ON TACKLING FINANCIAL EXCLUSION

Identifying effective means to tackle the problem of financial exclusion and improve financial and economic opportunity for disadvantaged neighbourhoods was discussed when local residents, bankers and business people, met Economic Secretary Patricia Hewitt in Edinburgh today.

Commenting on her visit, Ms Hewitt said:

"Tackling social exclusion is a top priority for this Government in its programme to create a modern and decent society where there are no forgotten people. Financial exclusion is both a symptom and cause of that social exclusion.

"People in our most deprived neighbourhoods often suffer serious disadvantages, both in personal financial matters and in attempting to set up small business enterprises. We need find ways to break the circle often ensures that those without means are denied the opportunity to achieve them.

"At a personal level, people in these communities get locked into a cash economy - often being forced to use cheque cashing shops, pawnshops and illegal loan sharks rather than the more efficient financial services the rest of us take for granted. Such restrictions on economic opportunity are not acceptable.

"We also want to encourage enterprise in deprived neighbourhoods, providing better access to capital and advice for small firms, particularly those just starting up. The poor physical and economic standing of many communities often hides richness in ideas and initiative for local residents wishing to start up and run their own businesses.

"My visit today is an opportunity for the people of Edinburgh to tell the Government about the problems on the ground and how we can increase access to financial services."

Ms Hewitt joined a forum discussion hosted by the Scottish Council Foundation as part of a series of visits around the country to help inform the work of two Treasury policy action teams looking at the problems of financial exclusion. These look at the problems of lack of access to personal financial services, such as bank accounts, and finance and support for small firms respectively.

Following the forum, Ms Hewitt met residents and their representatives at the Muirhouse New Housing Partnership and the Greater Pilton Childcare Centre to see the work in progress there to tackle social and financial exclusion issues and discuss their ideas and priorities for further improvement.

The main issues examined at these meetings are :

small firm finance;
small firm support and mentoring;
financial education;
access to bank accounts and other personal financial services; and
credit union development.

Representatives of over forty local community and business organisations attended the forum. These organisations included : Community Enterprise; Credit Union Enterprise Services; Scotwest Credit Union; the Mitchell St Centre; Scottish Financial Enterprise; Forward Scotland; Scottish Federation of Small Businesses; Cooperative Bank Plc; Clydesdale Bank Plc; TSB Scotland; Scottish Widows; and the Bank of Scotland.

NOTES TO EDITORS

1. The Treasury policy action teams were set up following on from the Social Exclusion Unit report Bringing Britain Together, published in September 1998, which sets out the Government's agenda for deprived neighbourhoods.

2. Media requiring further information on Treasury work in the area of financial exclusion should contact Charles Keseru in the Treasury Press Office on 0171 270 5188.

3. If you have access to the Internet, you can find this news release and other Treasury information on this site.

Press Notices 1999 January to June index