Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the potential impact of unreliable labour market data on the accuracy of inflation forecasts and other economic indicators used for policy formulation.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Falling response rates have caused concern over the quality of Labour Force Survey (LFS) data and led to its suspension in October 2023. Following the return of the LFS in February, these figures are still volatile and, although the Office for National Statistics (ONS) expects to see improvements to survey quality following planned improvements, the estimates will continue to be badged as ‘official statistics in development’ until further review. The ONS recommends using a suite of labour market indicators alongside the LFS estimates.
Asked by: Baroness Smith of Llanfaes (Plaid Cymru - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have had with the Welsh Government about devolving the Crown Estate.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The UK Government has had no discussions with the Welsh Government on the devolving the Crown Estate, and has no plans to transfer responsibility of the Crown Estate to the Welsh Government.
The Crown Estate has played a significant role in attracting international investment into Wales to support the UK’s net zero target and will continue to do so through future leasing rounds for offshore wind developments, including floating wind projects in the Celtic Sea. They work closely with the Welsh Government and Natural Resources Wales in support of shared priorities, ensuring that these resources are sustainably managed for the long term
Introducing a new entity would fragment the market, complicate existing processes, and likely delay further development offshore, undermining investment in Welsh waters.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the potential impact of the recent performance of the UK stock market on (1) investor confidence, and (2) economic recovery.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government does not comment on the day to day performance of the UK’s public markets.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to protect the use of cash in the purchasing of everyday goods and services.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
In recognition that cash continues to be used by millions of people across the UK, including those in vulnerable circumstances, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this legislation, the government published a Cash Access Policy Statement. This set out that the vast majority of people should be no further than 1 mile from access to cash deposit and withdrawal services in predominately urban areas, and no further than 3 miles in predominately rural areas. The FCA is required to have regard to this statement when exercising its access to cash powers.
The government believes it should remain the choice of individual businesses as to whether to accept or decline any form of payment, including cash or card, based on their consideration of factors such as customer preference and cost. However, the government considers that its legislation will indirectly support cash acceptance in the wider economy, enabling businesses to continue accepting cash by ensuring they have reasonable access to deposit facilities.
Asked by: Stephen Hammond (Conservative - Wimbledon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of the Financial Conduct Authority's (FCA) proposals to publicly announce the names of firms and/or individuals at the commencement of enforcement investigations on the (a) commercial value of firms, (b) career prospects of individuals who are named and (c) overall competitiveness of the UK’s (i) financial and related professional services industries and (ii) wider economy; and if he will make an assessment of the compatibility of that proposal with the FCA’s secondary objective to consider international competitiveness and economic growth.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
I recognise that many in the financial services sector have concerns about the Financial Conduct Authority’s (FCA) proposed changes to its approach to enforcement.
This is why the Chancellor and I have been clear that we believe the FCA should reconsider its proposals, in light of responses to its consultation, and considering its new growth and competitiveness objective. The competitiveness of the UK’s world-leading financial services sector is one of the Government’s top priorities.
The legislative framework provides for the FCA to be operationally independent from the government. The independence of the FCA is vital to its role. The Government respects this operational independence, but takes holding it to account very seriously.
The specific concerns you have raised are a matter for the FCA, as the operationally independent regulator. The FCA will respond to the Honourable Member by letter on this matter, and a copy of the letter will be placed in the Library of the House of Commons.
The purpose of any consultation is to allow the regulators to test their proposals and understand their potential impact. It is therefore appropriate to suggest that the FCA reconsider its proposals in light of the feedback received. The Government will continue to engage closely with stakeholders, and with the FCA as they consider next steps.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help ensure that parents who are eligible for tax free childcare in Northern Ireland access that support.
Answered by Laura Trott - Chief Secretary to the Treasury
Tax-Free Childcare provides financial support across the UK to eligible working parents with their childcare costs. For every £8 parents pay into their childcare account, the Government adds £2, up to a maximum of £2,000 in top up per year for each child up to age 11, and up to £4,000 per disabled child up to the age of 16.
To further support parents and childcare providers, a series of engagement events took place from autumn 2022 to autumn 2023, including with Northern Ireland local councils. This gave families and childcare providers additional support at local levels to improve their understanding and promote the scheme.
The Childcare Choices website provides information on what’s available to help parents with their childcare costs, including what schemes are available in the devolved Nations.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many and what proportion of families eligible for tax free credits have not taken up their entitlement for tax free childcare in each of the last 5 years.
Answered by Laura Trott - Chief Secretary to the Treasury
Statistics relating to Tax-Free childcare account usage are published quarterly in "Tax-Free Childcare Statistics" on the gov.uk website.
The current estimated number of families in the UK that are eligible for Tax-Free Childcare is 1.2 million. As this is an estimate, it is not possible to give an exact number of the number of eligible families not using Tax-Free Childcare.
Asked by: Sammy Wilson (Democratic Unionist Party - East Antrim)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many families have taken up tax free childcare allowances in Northern Ireland in each of the last five years.
Answered by Laura Trott - Chief Secretary to the Treasury
Statistics relating to Tax-Free childcare account usage are published quarterly in "Tax-Free Childcare Statistics" on the gov.uk website.
The current estimated number of families in the UK that are eligible for Tax-Free Childcare is 1.2 million. As this is an estimate, it is not possible to give an exact number of the number of eligible families not using Tax-Free Childcare.
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his policy is on utilising the reserves in capital funding for 2024-25.
Answered by Laura Trott - Chief Secretary to the Treasury
The Reserve is used for genuinely unforeseen, unaffordable and unavoidable pressures, or certain special cases of expenditure that would otherwise be difficult to manage. Chapter 2 of Consolidated Budgeting Guidance sets out further information on the criteria for Reserve funding.
Asked by: Drew Hendry (Scottish National Party - Inverness, Nairn, Badenoch and Strathspey)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his policy is on utilising the reserves in resource funding for 2024-25.
Answered by Laura Trott - Chief Secretary to the Treasury
The Reserve is used for genuinely unforeseen, unaffordable and unavoidable pressures, or certain special cases of expenditure that would otherwise be difficult to manage. Chapter 2 of Consolidated Budgeting Guidance sets out further information on the criteria for Reserve funding.