Gay marriage and church politics

Who speaks for the Church of England?

Few will be surprised, though many will be disappointed, that the Church of England has come out vehemently against the government's proposals to allow same-sex marriage.  

The document released by the Church today claims that its opposition to the measure does not prejudge "continuing theological and ethical debate" within the institution over the status of same-sex relationships. However, in language very similar to that employed by the Catholic bishops earlier this year, the text stresses the importance of traditional marriage for the common good of society, argues that "complementarity" of the sexes (and the goal of procreation) undergirds it and takes the view that characterises the proposal as a "fundamental redefinition" of marriage.  

The first thing to note is that this official statement does not reflect the view of "the Church of England" because the Church of England, as such, does not have a view.  The statement has not been voted on by the General Synod or even offered to the Synod for comment.  It implies a unity of opinion among Anglican Christians that simply does not exist.  A majority of British Christians in fact support equal rights for gay people. The manner in which it was released is also quite striking.  The statement was, however, heavily trailed by a number of newspapers sympathetic to its general line, accompanied by comments, some off the record, by its authors. One of them took advantage of anonymity to describe the proposals as "shallow" and "half-baked".  On the record, the Bishop of Leicester warned in slightly more measured tones of "a situation in which civil law and canon law are at odds".

An accompanying press release claimed that the Church of England "has supported the removal of previous legal and material inequities between heterosexual and same-sex partnerships".  This is simply not true.  When civil partnerships were being introduced in 2004, six bishops voted against the proposal in the House of Lords, with only one (the then bishop of Oxford) voting in favour.  Conservative voices in the church made the same arguments - and raised much the same apocalyptic fears - then against civil partnerships as they are making now against equalising marriage.

Taken together, then, the statement and the accompanying media blitz are as much a part of internal church politics as they are an attempt to raise actual problems with the proposed legislation.  

Nevertheless, the document is worth considering on its own merits.  The most interesting sections are those that concern the legal implications of the change.  The authors are right, I think, to suggest that it is doubtful that the continuation of same-sex only civil partnership would be legally sustainable.  Indeed, the refusal to allow heterosexual couples the option of having a civil partnership instead of a marriage is for me the single most objectionable (and irrational) part of the government's proposals.  The C of E statement is also right to point out the illogicality of allowing religious premises to host civil partnership ceremonies while forbidding them from conducting same-sex marriages even when they wish to do so.  

Much attention today has focused on the possible implications of same-sex marriage on the constitutional position of the Church of England.  The document claims that, since there is no legal distinction between civil marriage and religious marriage (as opposed to civil and religious weddings), if the government's changes went ahead traditional marriage,

would in effect have been abolished and replaced by a new statutory concept which the Church – and many outside the Church – would struggle to recognise as amounting to marriage at all. A man and a woman who wished to enter into the traditional institution of marriage would no longer have the opportunity to do so.

This is, to say the least, a remarkably alarmist way of putting the matter.  There are real questions concerning the role of Anglican clergy as registrars: it could be argued, and no doubt will be, that their obligation to perform marriages for their parishioners ought to extend to same-sex couples.  But as the document goes on to admit, it is in practice highly unlikely that the European Court of Human Rights would intervene to force unwilling churches to marry people of the same sex - who would, after all, be able to achieve the same status via a civil ceremony. (A right to get married is not the same as a right to a particular style of wedding.)  Where the Courts might step in is in relation to the proposed bar on allowing churches to conduct same-sex marriages should they wish to do so.

This, I think, is the central fear behind the Church of England's official response to the consultation process. In Denmark, legislation has recently been passed allowing for same sex marriages in the country's established Lutheran church, subject to an opt-out for clergy who have conscientious objection to the idea. There's no prospect in sight of such a move being made in this country.  Whatever fears are being expressed today, the Church of England's role as the Established church no longer means (as it once did) that the state dictates what it should believe or how it should organise itself.  But if same-sex marriage goes through, there will be pressure from liberal Anglican clergy who would like the right to conduct weddings of gay couples.  Indeed, mainstream opposition within the church is likely to decline once same-sex marriage has become established and Anglicans notice that the Apocalypse has not arrived.

The Church of England has declared its opposition to government plans to introduce gay marriage. Photograph: Getty Images.
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Let's turn RBS into a bank for the public interest

A tarnished symbol of global finance could be remade as a network of local banks. 

The Royal Bank of Scotland has now been losing money for nine consecutive years. Today’s announcement of a further £7bn yearly loss at the publicly-owned bank is just the latest evidence that RBS is essentially unsellable. The difference this time is that the Government seems finally to have accepted that fact.

Up until now, the government had been reluctant to intervene in the running of the business, instead insisting that it will be sold back to the private sector when the time is right. But these losses come just a week after the government announced that it is abandoning plans to sell Williams & Glynn – an RBS subsidiary which has over 300 branches and £22bn of customer deposits.

After a series of expensive delays and a lack of buyer interest, the government now plans to retain Williams & Glynn within the RBS group and instead attempt to boost competition in the business lending market by granting smaller "challenger banks" access to RBS’s branch infrastructure. It also plans to provide funding to encourage small businesses to switch their accounts away from RBS.

As a major public asset, RBS should be used to help achieve wider objectives. Improving how the banking sector serves small businesses should be the top priority, and it is good to see the government start to move in this direction. But to make the most of RBS, they should be going much further.

The public stake in RBS gives us a unique opportunity to create new banking institutions that will genuinely put the interests of the UK’s small businesses first. The New Economics Foundation has proposed turning RBS into a network of local banks with a public interest mandate to serve their local area, lend to small businesses and provide universal access to banking services. If the government is serious about rebalancing the economy and meeting the needs of those who feel left behind, this is the path they should take with RBS.

Small and medium sized enterprises are the lifeblood of the UK economy, and they depend on banking services to fund investment and provide a safe place to store money. For centuries a healthy relationship between businesses and banks has been a cornerstone of UK prosperity.

However, in recent decades this relationship has broken down. Small businesses have repeatedly fallen victim to exploitative practice by the big banks, including the the mis-selling of loans and instances of deliberate asset stripping. Affected business owners have not only lost their livelihoods due to the stress of their treatment at the hands of these banks, but have also experienced family break-ups and deteriorating physical and mental health. Others have been made homeless or bankrupt.

Meanwhile, many businesses struggle to get access to the finance they need to grow and expand. Small firms have always had trouble accessing finance, but in recent decades this problem has intensified as the UK banking sector has come to be dominated by a handful of large, universal, shareholder-owned banks.

Without a focus on specific geographical areas or social objectives, these banks choose to lend to the most profitable activities, and lending to local businesses tends to be less profitable than other activities such as mortgage lending and lending to other financial institutions.

The result is that since the mid-1980s the share of lending going to non-financial businesses has been falling rapidly. Today, lending to small and medium sized businesses accounts for just 4 per cent of bank lending.

Of the relatively small amount of business lending that does occur in the UK, most is heavily concentrated in London and surrounding areas. The UK’s homogenous and highly concentrated banking sector is therefore hampering economic development, starving communities of investment and making regional imbalances worse.

The government’s plans to encourage business customers to switch away from RBS to another bank will not do much to solve this problem. With the market dominated by a small number of large shareholder-owned banks who all behave in similar ways (and who have been hit by repeated scandals), businesses do not have any real choice.

If the government were to go further and turn RBS into a network of local banks, it would be a vital first step in regenerating disenfranchised communities, rebalancing the UK’s economy and staving off any economic downturn that may be on the horizon. Evidence shows that geographically limited stakeholder banks direct a much greater proportion of their capital towards lending in the real economy. By only investing in their local area, these banks help create and retain wealth regionally rather than making existing geographic imbalances worce.

Big, deep challenges require big, deep solutions. It’s time for the government to make banking work for small businesses once again.

Laurie Macfarlane is an economist at the New Economics Foundation