Asked by: Gen Kitchen (Labour - Wellingborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the number of bank branches that have closed in (a) Wellingborough constituency and (b) Northamptonshire in each year since 2010.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Decisions to open or close a branch are commercial and the Government does not make assessments of these closure decisions. Nonetheless, it is imperative that banks and building societies recognise the needs of all their customers, including those who need to use cash or in-person services. The Government is monitoring the wider situation closely.
The Government legislated through the Financial Services and Markets Act 2023 to introduce a new legislative framework to protect access to cash. The Financial Conduct Authority (FCA) must seek to ensure that there is reasonable provision of free withdrawal and deposit facilities in relation to personal current accounts. Upon the closure of a core cash service such as a bank branch, LINK assesses the community’s access to cash needs. If additional cash services are needed, industry will provide a shared solution such as a Banking Hub.
Guidance from the FCA sets out its expectation of firms when they are deciding to reduce their physical branches or the number of free-to-use ATMs. The FCA’s guidance is clear that firms are expected to carefully consider the impact of planned branch closures on their customers’ everyday banking and cash access needs, and put in place alternatives, where this is reasonable. Alternative options to access everyday banking services can be via telephone banking, through digital means such as mobile or online banking and via the Post Office or Banking Hubs.
UK Finance have recently confirmed 225 Banking Hubs will be announced by the end of 2024, up from the 130 locations currently confirmed. Furthermore, following my recent discussions with the UK high street banks, participating firms have also committed to improving Hubs by standardising the services available between firms, ensuring that customers will not require their own digital device to bank, trialling a ‘customer liaison service’ and trialling Saturday openings.
Asked by: Gen Kitchen (Labour - Wellingborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help support people on lower incomes in Wellingborough constituency.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Over the previous two years, this government has provided support to help households with the cost of living totalling over £90 billion.
For the coming year, the government has increased working age benefits by 6.7%; maintained the triple lock; raised Local Housing Allowance rates with an average gain of £800, extended the Household Support Fund and increased the National Living Wage by 9.8%. Further actions taken by the government in 2024-25 include: a rise in the National Living Wage (NLW) by 9.8% - ending low hourly pay for workers on the NLW, raising Local Housing Allowance to the 30th percentile of market rents, uprating working-age benefits by 6.7%, freezing fuel duty, removing Debt Relief Order fees, and doubling the Budgeting Advance Loan repayment period.
In rural parts of constituencies like Wellingborough, the government is also providing support through the £110m Rural England Prosperity Fund. This is being invested in projects which boost productivity and create rural job opportunities. This includes farm businesses looking to diversify by opening a farm shop, a wedding venue or tourism facilities or improvements to village halls, pubs and other rural hubs for community uses.
Asked by: Fleur Anderson (Labour - Putney)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what fiscal steps his Department is taking to help support people on lower incomes.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The government has supported people on lower incomes by increasing working age benefits by 6.7%; raising Local Housing Allowance to the 30th percentile of market rents with an average gain of £800, extending the Household Support Fund and increasing the National Living Wage by 9.8%.
The government has also maintained the triple lock, frozen fuel duty, removed Debt Relief Order fees and doubled the Budgeting Advance Loan repayment period.
Over 2022-23 and 2023-24, the government has provided support to help households with the cost of living totalling over £90 billion.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to provide incentives to high street (a) banks and (b) building societies to provide bank hub services.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Banking Hubs are a voluntary initiative provided by the financial services sector. Upon the closure of a core cash access service, such as a bank branch, or a direct request from a community, LINK assesses the community’s access to cash needs. If additional cash services are needed, industry will provide a shared solution such as a Banking Hub. Hubs offer basic counter services provided by Post Office staff, allowing people and businesses to withdraw and deposit cash, deposit cheques, pay bills and make balance enquiries. They also contain dedicated rooms where customers can see community bankers from their own bank.
UK Finance have recently confirmed 225 Banking Hubs will be announced by the end of 2024, up from the 130 locations currently confirmed. Furthermore, following the Government’s recent discussions with the UK high street banks, participating firms have also committed to improving Hubs by standardising the services available between firms, ensuring that customers will not require their own digital device to bank, trialling a ‘customer liaison service’ and trialling Saturday openings.
The Government legislated as part of the Financial Services and Markets Act 2023 to establish the FCA as the lead regulator for access to cash, giving it responsibility to seek to ensure reasonable provision of cash withdrawal and deposit facilities. The FCA recently held a consultation on its proposed regulatory regime for access to cash, following the Government’s legislation: FCA consultation on access to cash. These proposals build on and strengthen the arrangement that has been established by the financial services sector by placing it on a regulatory footing. The FCA expects to publish its final rules by the end of the third quarter of this year.
Asked by: Gen Kitchen (Labour - Wellingborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of increases in the cost of living on trends in the number of (a) businesses at risk of insolvency and (b) people in debt in Wellingborough constituency; and what fiscal steps he is taking to support these (i) businesses and (ii) people.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
Over the previous two years, the government has provided support to help households with the cost of living totalling over £90 billion.
To help those on the lowest incomes with debt, at Spring Budget 2024 the government also removed Debt Relief Order fees and doubled the Budgeting Advance Loan repayment period.
The government continues to pursue an ambitious policy agenda to increase growth and productivity across the economy. This includes cuts to National Insurance, a business rates package worth £4.3bn over five years supporting small businesses and the high street, and wider measures supporting SMEs such as actions to encourage prompt payments. The government continues to go further in supporting small businesses, and at Spring Budget announced the raising of the VAT registration threshold to £90,000.
Asked by: Gen Kitchen (Labour - Wellingborough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to help ensure free access to cash (a) withdrawal and (b) deposit facilities in Wellingborough constituency.
Answered by Bim Afolami - Economic 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. As part of this responsibility, the FCA must also seek to ensure that there is reasonable provision of free withdrawal and deposit facilities in relation to personal current accounts.
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 FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of providing compensation for small shareholders for the loss of their shares in Northern Rock Plc.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
HM Treasury considers the issue of compensation for former Northern Rock shareholders to be settled. Both the Upper Tribunal in 2011 and the Court of Appeal in 2013 upheld the independent valuation of Northern Rock shares at nil value immediately prior to public ownership, and that no compensation was therefore due. HM Treasury does not intend to revisit this issue.
Asked by: Patricia Gibson (Scottish National Party - North Ayrshire and Arran)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of delivering compensation to former Northern Rock PLC shareholders.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
HM Treasury considers the issue of compensation for former Northern Rock shareholders to be settled. Both the Upper Tribunal in 2011 and the Court of Appeal in 2013 upheld the independent valuation of Northern Rock shares at nil value immediately prior to public ownership, and that no compensation was therefore due. HM Treasury does not intend to revisit this issue.
Asked by: Deidre Brock (Scottish National Party - Edinburgh North and Leith)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the total annual cost to UK businesses of completing customs declarations on trade across the EU-GB border, in each year since the UK left the EU.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC is working on an estimate, using insight from research with businesses to better understand the processes involved for traders and the administrative costs of complying with customs declarations after EU Exit.
Asked by: Alex Cunningham (Labour - Stockton North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential merits of a compensation scheme for Northern Rock shareholders.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
HM Treasury considers the issue of compensation for former Northern Rock shareholders to be settled. Both the Upper Tribunal in 2011 and the Court of Appeal in 2013 upheld the independent valuation of Northern Rock shares at nil value immediately prior to public ownership, and that no compensation was therefore due. HM Treasury does not intend to revisit this issue.