52/99
22 March 1999
LACK OF ACCESS TO FINANCIAL SERVICES: NEWCASTLE CONFRONTS THE PROBLEM
People and organisations in Newcastle had the opportunity today to tell Patricia Hewitt, the Economic Secretary to the Treasury, about the problems of lack of access to financial services and possible remedies to the problem.
Ms Hewitt was in Newcastle on the fourth of a series of roadshows to give communities the chance to have a real input into the policy process that is working to develop a programme to help their own communities.
Speaking in Newcastle, she said:
"I have come to Newcastle today to highlight that some of our most deprived communities in the UK are being starved of basic services that are essential for a decent and fair quality of life.
"Many individuals are unable to access the basic financial services that the majority of people in this country take for granted such as a bank account or contents insurance. I want to encourage discussion of financial services problems of people in deprived neighbourhoods and explore possible solutions.
"Many local entrepreneurs who may live in deprived communities are rich in creativeness and enthusiasm. And they are being failed because they simply cannot access the capital that would enable them to start their own business.
"The Government is not prepared to tolerate this restriction of economic and social opportunity - and we are determined to do something about it.
"We need real partnerships where all partners, from the private, public and voluntary sectors, are fully engaged and committed to tackling the problems we face.
"The challenge for us, as a Government, for all of us as partners in the venture is how do we move from social exclusion to social enterprise. How do we move from disadvantaged communities to communities that work. What we're trying to do is to create an environment - policies, programmes and a funding mechanism - that will not just enable, but will pull through and encourage the creation of new social enterprises and new social entrepreneurs."
These discussions are part of a series around the country organised by the Treasury. They have been arranged to help inform the work of the Treasury's two policy action teams which are looking at the problems of financial exclusion - one on lack of access to personal financial services and the other on finance and support for small firms.
NOTES TO EDITORS
1. The Treasury policy action teams were set up following on from the Social Exclusion Unit's report 'Bringing Britain together' which sets out the Government's agenda for deprived neighbourhoods.
2. Media requiring further information on the Treasury's work in the area of financial exclusion should contact Charles Keseru in the Treasury Press Office on 020 7270 5188.