New Archbishop risks row on banks before he's even started

Justin Welby's first act since nomination is move to force lending that goes against ministers' plans

The incoming Archbishop of Canterbury risks provoking a row with ministers by claiming that planned City reforms will fail those in Britain's poorest communities.

Just three days after being named as the new leader of the Church of England, the Right Reverend Justin Welby will demand that legislation is redrafted to shame banks into lending more money to poorer regions.

The House of Lords amendment is his first political act since he was named as the next leader of 80 million Anglicans last Friday. He is currently the Bishop of Durham and takes up the new post next month.

He has joined the Liberal Democrat peers Lord Sharkey, Baroness Kramer and Lord Phillips in lodging an amendment to the Treasury's Financial Services Bill, which is debated in the upper chamber today.

The amendment demands that banks are required to publish quarterly details of their lending to small and medium-sized businesses by postcode – revealing areas where the fewest loans are issued.

The Financial Services Bill proposes abolishing the Financial Services Authority, which presided over the financial collapse of 2008, and dividing its powers between a new Financial Conduct Authority (FCA) and the Bank of England.

Mr Welby, a Cambridge-educated former oil executive, has previously railed against the Bill's lack of provision for "effective competition" among small lenders that could reduce the reliance on pay-day-loans companies in the North-east. "I fail to see this in the Bill and that gives me great concern," he said.

He has also claimed the proposals would make the Governor of the Bank of England "almost unchallengeable" in the running of three main committees that would oversee Britain's financial stability, and leave the newly formed FCA as the "runt of the litter".

In the amendment to be debated today, he writes: "The FCA must require each holder of a banking licence to publish relevant data on a quarterly basis by postcode, including the total amount of lending to small and medium-sized enterprises."

Mr Welby was unavailable for comment on Sunday. But a spokesman for the Diocese of Durham said the 56-year-old would be in London this week doing "banking-standards" and "parliamentary" work.

The Treasury said it would "consider" the amendment alongside others, and insisted it was introducing "strong incentives to boost lending". Mr Welby was brought into the parliamentary Banking Standards Commission during the summer by George Osborne to improve transparency and governance in the City following the Libor rate-rigging scandal.

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksNow available in paperback
Arts and Entertainment
Joel Edgerton, John Turturro and Christian Bale in Exodus: Gods and Kings
film Ridley Scott reveals truth behind casting decisions of Exodus
News
Andy Murray with his girlfriend of nine years, Kim Sears who he has got engaged to
peopleWimbledon champion announces engagement to girlfriend Kim Sears
Arts and Entertainment
Jake Quickenden and Edwina Currie are joining the I'm A Celebrity...Get Me Out Of Here! camp
tv
Arts and Entertainment
Roisin, James and Sanjay in the boardroom
tvReview: This week's failing project manager had to go
Life and Style
Fright night: the board game dates back to at least 1890
life
Life and Style
fashion
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Argyll Scott International: Senior Business Analyst- Insurance

Negotiable: Argyll Scott International: Senior Business Analyst - Insurance ...

Recruitment Genius: Property Manager

£25000 - £29000 per annum: Recruitment Genius: This independent, growing Sales...

Recruitment Genius: Graphic Designer

£16000 - £20000 per annum: Recruitment Genius: Multi-skilled graphic designer ...

Austen Lloyd: Court of Protection Solicitor

£30000 - £50000 per annum + EXCELLENT: Austen Lloyd: Court of Protection Solic...

Day In a Page

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

Cameron, Miliband and Clegg join forces for Homeless Veterans campaign

It's in all our interests to look after servicemen and women who fall on hard times, say party leaders
Millionaire Sol Campbell wades into wealthy backlash against Labour's mansion tax

Sol Campbell cries foul at Labour's mansion tax

The former England defender joins Myleene Klass, Griff Rhys Jones and Melvyn Bragg in criticising proposals
Nicolas Sarkozy returns: The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?

Sarkozy returns

The ex-President is preparing to fight for the leadership of France's main opposition party – but will he win big enough?
Is the criticism of Ed Miliband a coded form of anti-Semitism?

Is the criticism of Miliband anti-Semitic?

Attacks on the Labour leader have coalesced around a sense that he is different, weird, a man apart. But is the criticism more sinister?
Ouija boards are the must-have gift this Christmas, fuelled by a schlock horror film

Ouija boards are the must-have festive gift

Simon Usborne explores the appeal - and mysteries - of a century-old parlour game
There's a Good Girl exhibition: How female creatives are changing the way women are portrayed in advertising

In pictures: There's a Good Girl exhibition

The new exhibition reveals how female creatives are changing the way women are portrayed in advertising
UK firm Biscuiteers is giving cookies a makeover - from advent calendars to doll's houses

UK firm Biscuiteers is giving cookies a makeover

It worked with cupcakes, doughnuts and macarons so no wonder someone decided to revamp the humble biscuit
Can SkySaga capture the Minecraft magic?

Can SkySaga capture the Minecraft magic?

It's no surprise that the building game born in Sweden in 2009 and now played by millions, has imitators keen to construct their own mega money-spinner
The King's School is way ahead of the pack when it comes to using the latest classroom technology

Staying connected: The King's School

The school in Cambridgeshire is ahead of the pack when it comes to using the latest classroom technology. Richard Garner discovers how teachers and pupils stay connected
Christmas 2014: 23 best women's perfumes

Festively fragrant: the best women's perfumes

Give a loved one a luxe fragrance this year or treat yourself to a sensual pick-me-up
Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

Our partner charities help veterans on the brink – and get them back on their feet
Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

Putin’s far-right ambition

Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

Escape to Moominland

What was the inspiration for Finland's most famous family?
Nightclubbing with Richard Young: The story behind his latest book of celebrity photographs

24-Hour party person

Photographer Richard Young has been snapping celebrities at play for 40 years. As his latest book is released, he reveals that it wasn’t all fun and games
Michelle Obama's school dinners: America’s children have a message for the First Lady

A taste for rebellion

US children have started an online protest against Michelle Obama’s drive for healthy school meals by posting photos of their lunches