As the UK begins to emerge from recession, and many great businesses and their leaders attempt to repair their damaged reputations, the mutual sector remains relatively unscathed.

The long-termism and clear business purpose of mutual societies has insulated the sector from the worst of the economic storm.

Addressing a fringe meeting at the Conservative Party Conference in Manchester this week, which examined the government's attitude towards mutuals following the recession, Mark Hoban MP, shadow financial secretary to the treasury, said, ‘In the past, the Conservative Party has perhaps not talked enough publicly about its support for the mutual sector but now there is a renewed interest in mutual organisations across the House of Commons.’

While not immune from the economic downturn, the mutual sector – which includes building societies, friendly societies, credit unions and mutual insurers – has proved its durability during the downturn.

Mark Lyonette, chief executive of the Association of British Credit Unions, explains how credit unions, as community owned and controlled organisations, offering local people a trusted financial solution, are playing a vital role in the economic downturn.

‘Credit union services are in demand more than ever, both from people looking for affordable places to borrow and from people looking for a safe home for their money.  Now that credit unions can offer a current account, many more people are leaving banks behind and having all of their wages or benefits paid into their credit union.’

He adds, ‘Large numbers of credit unions have reported big increases in deposits – sometimes with members crossing the road clutching four-figure sums they've just withdrawn from their bank.’

‘People are valuing local, mutual organisations that haven't been embroiled in the international economic crisis.’