News that the Government's Credit Union Legislative Reform Order will be delayed until next year has been met with dismay by many credit unions up and down the country because it has taken years to achieve an all party consensus only to be delayed by other priorities.

The LRO provides several vital provisions that will enable credit unions to grow towards sustainability much more quickly than at present. Key elements are:

• A much less prohibitive definition of the common bond which describes the field of membership.
• Allowing organisations such as housing associations to join a credit union.
• Allowing local voluntary organisations to join a credit union.

Graham Tomlin CEO of Credit Union Solutions said.

"One of our client credit unions would have been able to offer their services to an adjacent borough and has funding in place to be able to do that, this delay could put that funding in jeopardy.

The old common bond definition for London left most credit unions restricted to operating in one borough and although this has been relaxed slightly we are still hamstrung by requiring to prove that folk living in adjacent boroughs share the same "locality" which can be a nightmare.

In London we have been restricted by the one borough rule whereas outside London the next tier of government is acceptable and hence credit unions can operate across a county or even an area that was formerly a county such as Berkshire."

According to the Ferguson & McKillop (1997)  In order to reach the highest (mature) level, credit unions should experience large asset size, deregulation, a loose common bond, a competitive environment, highly developed information technology networks, professional management, welldeveloped central services, diversification of products and services, products and services based on market rate structures, and rigorous financial management of operations.

In the UK our credit union legislation is the most restrictive in the world hence the slow growth in membership by contrast in the USA there are 80 million members of credit unions all of whom have fared much better during the recession. Sadly in the UK we cannot even take advantage of legislative changes that have all party support because of bureaucracy.