Key Points
- · Bolton Council declined a £100,000 investment request in Hoot Credit Union.
- · The decision was part of a council meeting held on 15 September 2025.
- · The investment request was aimed at supporting Hoot Credit Union’s capital position amid financial difficulties.
- · Hoot Credit Union is a community-owned financial cooperative serving Bolton and Bury, providing affordable loans and savings.
- · The credit union has faced financial challenges, operating at a deficit in recent periods.
- · Bolton at Home has had a close partnership with Hoot, underwriting loan defaults and facilitating affordable loan access for local tenants.
- · The affordable loans scheme, while socially beneficial, is not financially sustainable due to high default rates.
- · Hoot Credit Union won the Social Enterprise of the Year Award at the Bolton Business Awards for its community impact.
- · Council paperwork cited no immediate effect of declining the investment request but indicated the council was cautious on investment risks.
- · The council continues to support affordable credit through other initiatives but withheld this specific capital infusion.
What Happened with Bolton Council's £100,000 Investment Proposal for Hoot Credit Union?
As reported in the official council minutes of 15 September 2025, Bolton Council declined a request to invest £100,000 in Hoot Credit Union. The proposal was part of a discussion on supporting the credit union’s capital position, which had been affected by a recent financial deficit period. The council opted to reject the investment, citing concerns over the immediate financial impact and risk appetite.
Who Is Hoot Credit Union and What Role Does It Play Locally?
Hoot Credit Union is a member-owned financial cooperative based in Bolton and Bury, offering savings and loans at affordable rates designed to support financial wellbeing. All profits are reinvested or distributed to members, and it is protected by the Financial Services Compensation Scheme. Hoot has a longstanding reputation for community impact, recently earning the Social Enterprise of the Year Award at the Bolton Business Awards—a recognition highlighted by the Bolton News for their work improving financial health in the community (Chris Canham, CEO as per ). Hoot operates with no shareholders or sales targets, aiming solely to benefit its members.
Why Did Bolton Council Decide to Halt the £100K Investment?
The investment was intended to be made in deferred shares to bolster Hoot’s capital. However, as detailed in the council minutes, the investment was declined due to the council’s cautious approach towards the financial risks involved. While there was no immediate effect anticipated from declining the investment, the council evidently preferred to avoid escalating its financial exposure amidst Hoot’s recent deficit performance.
How Has Hoot Credit Union Been Supported Previously by Bolton Council’s Partners?
Bolton at Home, a charitable housing organisation in Bolton, has had a close working relationship with Hoot Credit Union, particularly in developing and administering an affordable loans scheme for local tenants. Bolton at Home underwrites any loan defaults through a loan guarantee fund, with the loans administered jointly. The partnership helps low-income tenants access credit at reduced risk though the scheme is loss-making due to high default rates and costly administration (£70 per loan).
Is the Affordable Loans Scheme Financially Sustainable?
According to findings in a detailed 2025 report from Bolton at Home, the affordable loans scheme is socially valuable but financially challenging. Despite initial funding of £10,000 (later increased by another £12,000), the high default rates mean the scheme cannot cover its operating costs through interest and fees alone. Hoot Credit Union absorbs certain losses within its business model, as affordable credit loans from the scheme represent approximately 10% of its overall lending. Future management plans aim to reduce default rates following tighter affordability assessments, which may improve sustainability.
How Does Hoot Credit Union Benefit the Local Community?
Hoot Credit Union offers a key alternative to high-interest lending, encouraging savings and providing loans at reasonable rates. Over 500 community members have used loans for essential costs like school uniforms, with loan amounts and support extending into hundreds of thousands of pounds annually ("Over 500 People Saving for School Uniforms with Hoot Credit Union" ). This cooperative financial model has earned notable accolades and essential community support, as articulated by CEO Chris Canham emphasizing the mission to boost financial wellbeing without profit motives.
What Are the Future Prospects for Hoot Credit Union Without This Council Investment?
While the council's decision pauses direct financial support via deferred shares, Hoot Credit Union continues its mission supported by community members, Bolton at Home partnerships, and other funding streams. The credit union plans to encourage wider take-up of affordable loans and savings products and anticipates increased demand amid ongoing welfare reforms like Universal Credit delays, which amplify the need for affordable credit options.