Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment has been made on the levels of household disposable income as a result of the potential impact of the OBR's forecasts on household income.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Since 2022, the government has demonstrated its commitment to households by providing one of the largest support packages in Europe. Support for households with the cost-of-living, from 2022-23 to 2023-24, totalled £96 billion – an average of £3400 per UK household.
Real Household Disposable Income (RHDI) per capita has outperformed OBR expectations. RHDI per capita grew by 1.3% in 2023, rather than falling by 3.2% as predicted in the OBR’s March 2023 forecast. This means that, in 2023, RHDI per capita was over £1,200 higher than the OBR expected in their March 2023 forecast, when using 2019 prices.
In the 2024 Spring Budget, the Chancellor announced a further 2 pence cut to the main rates of National Insurance Contributions. This adds to a boost of similar size from the National Insurance Contributions cut announced in the Autumn Statement 2023.
Asked by: Holly Mumby-Croft (Conservative - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish any (a) internal reviews and (b) audits conducted by the Financial Conduct Authority on the consistency of the redress scheme for British Steel Pension Scheme members.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
HM Treasury does not hold internal reviews or audits conducted by the Financial Conduct Authority (FCA) concerning its redress scheme for former British Steel Pension Scheme (BSPS) members.
Asked by: Duncan Baker (Conservative - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of trends in the number of ATM closures on (a) access to and (b) the depositing of cash.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Currently, LINK (the scheme that runs the UK's largest ATM network) has commitments to protect the broad geographic spread of free-to-use ATMs and is held to account against these commitments by the Payment Systems Regulator. LINK has committed to protect free-to-use ATMs more than one kilometre away from the next nearest free ATM or Post Office, and free access to cash on high streets (where there is a cluster of five or more retailers) that do not have a free-to-use ATM or a Post Office counter within one kilometre.
LINK publishes monthly statistics on its ATM network on its website https://www.link.co.uk/initiatives/financial-inclusion-monthly-report/#:~:text=LINK%20has%20also%20committed%20to,commitment%20can%20be%20found%20here.
However, in recognition that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups, 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. 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: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential implications for her policies on small businesses of trends in the number of bank closures in the last two years.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Decisions to open or close a branch or mobile banking service are commercial decisions for firms and the Government does not intervene. However, it is imperative that banks and building societies recognise the needs of all their customers, including those who need to use in-person services. Banks and building societies occupy a privileged position in society and are essential to enabling businesses to manage their money on a day-to-day basis.
Guidance from the FCA sets out its expectation of firms when they are deciding to reduce their physical branches. Firms are expected to carefully consider the impact of planned 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 for small businesses can be via telephone banking, through digital means such as mobile or online banking, and via the Post Office or Banking Hubs.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the cost to the public purse of HMRC sending (a) paper self-assessment tax returns to people who complete their tax returns online for the 2023-24 financial year and (b) correction letters to those people.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC are aware that some customers who normally file their Self Assessment (SA) tax returns online have received a paper SA. These were sent in error, and customers who were expecting to file online should continue to do so. HMRC have written to everyone affected to apologise for the confusion and to reassure them that they do not need to take any action other than to file their return, which they can still do online, by the 31st January 2025.
Asked by: Munira Wilson (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many paper self-assessment tax returns were erroneously dispatched by HMRC to people who normally complete their self-assessment tax returns online in financial year 2023-24.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
HMRC are aware that some customers who normally file their Self Assessment (SA) tax returns online have received a paper SA. These were sent in error, and customers who were expecting to file online should continue to do so. HMRC have written to everyone affected to apologise for the confusion and to reassure them that they do not need to take any action other than to file their return, which they can still do online, by the 31st January 2025.
Asked by: Holly Mumby-Croft (Conservative - Scunthorpe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to help ensure that members of the British Steel Pension Scheme receive equal compensation.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA) is responsible for the regulation of the financial advice market and has looked closely at the advice provided to British Steel Pension Scheme (BSPS) members who transferred from the scheme.
Following this, the FCA has put in place a consumer redress scheme to ensure that the advice given to former BSPS members from the relevant period is reviewed and that redress is paid to those who lost out financially as a result of the poor advice they received.
Asked by: Christopher Chope (Conservative - Christchurch)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many responses were received to the consultation entitled Public Sector Exit Payments : A New Controls Process for High Exit Payments which closed on 17 October 2022; and for what reason a response has not yet been issued.
Answered by Laura Trott - Chief Secretary to the Treasury
The Government received 32 responses to the consultation on 'Public Sector Exit Payments: A New Controls Process for High Exit Payments'. HM Treasury will publish the government response in due course.
Asked by: Lord Bishop of Southwark (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to regulate identity tracing agencies in relation to the recovery of debt.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government wants to see fair treatment of individuals in problem debt, and there is a range of work underway across government and regulators to promote responsible practices for debt recovery.
The Financial Conduct Authority (FCA) regulates the collection of debt by lenders and certain debt collection agencies arising under credit agreements, consumer hire agreements and peer-to-peer loans. The FCA sets clear expectations for firms undertaking the collection of these debts, including the expectation for firms to establish the correct identity, where this is disputed.
On 18 March 2024 the UK Regulators Network (UKRN), including the FCA, Ofgem, Ofwat and Ofcom, published joint guidance which sets out their expectations for firms’ debt collection practices across their respective sectors. This is to ensure that firms support customers in debt and that firms’ collection practices are not causing harm to customers.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to reduce public sector debt from its current level of 98.3 per cent of GDP.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The government is committed to sustainable public finances and reducing debt, while cutting taxes and boosting economic growth. This will involve managing public spending responsibly and increasing productivity through the Public Sector Productivity Programme, while maintaining high-quality public services.
The government’s fiscal mandate is for Public Sector Net Debt excluding the Bank of England to fall as a percentage of GDP by the fifth year of the rolling forecast. In March, the independent Office for Budget Responsibility confirmed the government is on track to meet this rule, with debt falling from 93.2% (2027-28) to 92.9% (2028-29). Public sector net debt (“headline debt”) is also forecast to fall from 98.3% of GDP this year, to 94.3% in 2028-29.