Local Authority Finances
Debate between Baroness Penn and Lord Bishop of St Albans(9 months, 3 weeks ago)
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The Lord Bishop of St Albans
My Lords, I beg leave to ask the Question standing in my name and declare my interest, as set out in the register, as a vice-president of the Local Government Association.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Penn) (Con)
We have listened carefully to local authorities about the pressure that they are facing. That is why we have announced that the final local government finance settlement for 2024-25 will now make available £64.7 billion, an increase of 7.5% in cash terms on last year and above inflation. The department continually monitors the local government sector through data and direct engagement with individual councils. This includes considering the impact of inflation and wider economic circumstances.
The Lord Bishop of St Albans
My Lords, I congratulate the Government on that 7.5% increase for the local financial settlement for the coming year. However, council leaders also say that what makes planning very difficult is that they do not get much warning of these final settlements and increasingly spend more and more of their budgets on the statutory obligations. They are spending a much-reduced amount on the preventive measures, despite the evidence of the social and financial benefits of prevention. Can His Majesty’s Government commit to producing a medium-term financial strategy to help local authorities to plan the effectiveness and impact of their spending much more effectively?
Baroness Penn (Con)
My Lords, in recent years we have tried to give more clarity around elements of the settlement on a multi-year basis. We will continue to do this for the next spending review and beyond.
Levelling Up
Debate between Baroness Penn and Lord Bishop of St Albans(1 year ago)
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Baroness Penn (Con)
My noble friend makes an important point about learning as we go and understanding what is effective in delivering our mission to level up. We have put in place comprehensive plans and published how we will approach evaluating the success of some of these projects. Of course, as part of that we want to publicise those projects that have had the biggest impact so that not only do they get the recognition that they deserve but others can learn from them.
The Lord Bishop of St Albans
My Lords, I declare my interests as president of the Rural Coalition and a vice-president of the LGA. The 9.6 million people living in rural areas are glad that there is a mention of rural in the opening paragraph, but we cannot quite see how that rolls out. I wonder whether the Minister can help us a little. One of the crucial things about rural sustainability, improving levels of employment and offering healthcare in rural areas is digital connectivity, yet 17% of rural houses are not on superfast broadband, and nor are 30% of rural commercial premises. How does this relate to the need across the country to roll out a much higher level of rural connectivity? It has been done with a fantastic project in Cornwall and a lot was done in Shropshire at one stage, so it can be done. How do we get that sort of rural levelling up in digital connectivity?
Baroness Penn (Con)
The right reverend Prelate makes a really important point. I know that the Government have significant ambitions in rolling out access to superfast broadband and making sure we cover off the last mile, as it were, to the harder-to-reach places. I am not familiar with the detail of that programme as it lies in another department, but I will of course write to the right reverend Prelate about how we are doing on delivering that digital connectivity, in particular in rural areas.
Local Government Finance
Debate between Baroness Penn and Lord Bishop of St Albans(1 year ago)
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Baroness Penn (Con)
As I said to the noble Lord, Lord Scriven, my department is working closely with the Home Office and local councils to ensure that the process for moving people on from hotel accommodation is as smooth as possible. As I also said, we recognise that the work that we are doing successfully to reduce the backlog in asylum claims puts pressure on other parts of the system, which is why we have increased resources there too.
The Lord Bishop of St Albans
Both the noble Lord, Lord Scriven, and the noble Baroness, Lady Lister, have raised the really troubling issue of asylum seekers leaving accommodation and being made homeless. In the Government’s strategy, Ending Rough Sleeping for Good, there was talk about having a transparent and joined-up system. What plans do His Majesty’s Government have to ensure that homelessness policy and asylum policy are working together so that we can minimise this dreadful problem?
Baroness Penn (Con)
My Lords, as I have said, my department is working closely with the Home Office and local authorities on this issue. Local authorities have already moved thousands of families out of bridging accommodation and into long-term accommodation. We are also providing £750 million to the local authority housing fund, which is being used to buy or create new housing stock to accommodate, for example, Ukrainian and Afghan refugees who have been offered refuge here and now need somewhere to move on to. But it will also help to improve temporary accommodation for families owed a homelessness duty. That is an example of some of the longer-term action that we are seeking to take to alleviate some of these pressures.
British Banking Sector
Debate between Baroness Penn and Lord Bishop of St Albans(1 year, 8 months ago)
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The Lord Bishop of St Albans
To ask His Majesty’s Government what assessment they have made of the health of the British banking sector, following the challenges faced by overseas banks.
The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)
The UK Government welcome the steps taken to support financial stability on Sunday by the Swiss authorities relating to Credit Suisse. This follows the sale on 13 March of Silicon Valley Bank UK to HSBC after the resolution of its US parent. No other UK banks have been materially affected by these actions. The Governor of the Bank of England has confirmed that, in his view:
“The wider UK banking system remains safe, sound, and well capitalised.”
The Lord Bishop of St Albans
I thank the Minister for her reply. Many people watching the events unfold at the moment are concerned that they may lose their jobs or that there will be another financial hit to people at a time of high inflation. It is 10 years since we had the publication of the Parliamentary Commission on Banking Standards report. One of its conclusions was that the implicit taxpayer guarantee gives banks
“access to cheaper credit than would otherwise be available and creates incentives for them to take excessive risks.”
Do His Majesty’s Government have any steps to remove the implicit taxpayer guarantee? If not, what other incentives will His Majesty’s Government give to ensure that bankers act prudently?
Baroness Penn (Con)
My Lords, I emphasise to people at home the words of the Governor of the Bank of England that the UK banking system
“remains safe, sound, and well capitalised.”
The situation is different from 2008. Over the last 15 years, the Government and the Bank of England have taken robust action to strengthen the regulatory system and the resilience of the UK banking system. Specifically to the right reverend Prelate’s question, we have put in place a resolution regime to ensure that the failure of a bank can be managed in a way that minimises the impact on depositors, the financial system and public finances. I note that the resolution solution found for Silicon Valley Bank last week involved no UK taxpayer money whatever.
Stock Markets
Debate between Baroness Penn and Lord Bishop of St Albans(2 years ago)
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The Lord Bishop of St Albans
To ask His Majesty’s Government what assessment they have made of the impact of Paris overtaking London as Europe’s most valuable stock market.
The Parliamentary Secretary, HM Treasury (Baroness Penn) (Con)
My Lords, according to the Global Financial Centres Index, London is the second highest-ranked financial centre in the world after New York, while Paris is 10th. The UK continues to be the pre-eminent financial centre for derivatives and foreign exchange trading. In all equities instruments, the UK almost doubles France’s total market capitalisation at $6.2 trillion. To support the UK’s competitiveness, the Government are undertaking ambitious reforms to keep pace with innovation.
The Lord Bishop of St Albans
My Lords, I totally accept that there are various people trying to analyse the levels of trading—although it was a wake-up call last year when on some grounds Amsterdam was seen to overtake London as the premier financial trading centre, and last week some of those organisations claimed that Paris had overtaken London as the premier stock exchange. In the light of us trying to build an economy which properly rewards our workers and protects our environment, what are His Majesty’s Government doing to increase confidence in London’s reputation in financial trading and as the premier stock market?
Baroness Penn (Con)
I am so glad that the right reverend Prelate has given me a chance to set out what the Government are doing. The Financial Services and Markets Bill has just completed its work in Commons Committee, setting forward a whole range of reforms to inherited EU law to make us more competitive. He also mentioned the environment. The Government’s ambition is to make London the premier place for green finance, to ensure that our financial markets take into account the challenge of climate change, so that we then can ensure that we are pursuing green growth across the whole of our economy.
North Sea Oil and Gas Producers: Investment Allowances
Debate between Baroness Penn and Lord Bishop of St Albans
Baroness Penn (Con)
My Lords, that is something which we will judge as we get to it, but I reassure the noble Viscount that there will be a sunset clause in the legislation to ensure that that judgment cannot go on indefinitely.
The Lord Bishop of St Albans
My Lords, will the Government, first, reveal the calculations they have made on why we are giving these subsidies, rather than putting the money into renewables? This has come at a time when we have seen massive increases in gas imports. Indeed, if we had done this some years ago, and been able to move and shift much more quickly, we would not be in half the mess we are in now. What is the basis on which the Government are deciding to subsidise the oil, rather than putting this extra financial incentive into renewables?
Baroness Penn (Con)
As I have explained to the House, this is not a subsidy, but an investment allowance which is part of an additional levy on oil and gas producers. Therefore, they receive the investment relief attached to it. As I have said to the House—and I am really happy to say it again—we are absolutely committed to increasing renewable energy in this country. We agree that it is cheap and clean, and an essential part of our path towards net zero.
Spring Statement Affordability Test
Debate between Baroness Penn and Lord Bishop of St Albans
Baroness Penn (Con)
My Lords, we have helped those families in a number of ways. In fact, with the universal credit changes at the Budget our first priority was giving, effectively, tax breaks to those in lowest income households. We have also extended the household support fund by £500 million a year. That allows local authorities, which are often best placed to identify those families, to give them the right support at this difficult time.
The Lord Bishop of St Albans
My Lords, in the light of the huge inflationary pressures that are on people across the board and with the Government’s plan to use universal credit as a way of recovering £6 billion-worth of historic tax credit debt, what assessment has been made of whether there is the slightest chance of recovering those debts? What assessment has been made of that level of debt?
Baroness Penn (Con)
My Lords, the Government have done a significant amount of work in helping households manage their debts, for example, through the breathing space programme and the statutory debt repayment programme. It is important that the Government manage public money well and, where possible, ensure that where money may have been overpaid or mispaid it is paid back.
G7 Global Tax Agreement
Debate between Baroness Penn and Lord Bishop of St Albans
The Lord Bishop of St Albans
To ask Her Majesty’s Government, further to the announcement of the G7 global tax agreement on 5 June, whether tech companies will pay more tax in the United Kingdom after the proposed removal of unilateral digital services taxes.
Baroness Penn (Con)
My Lords, the reforms agreed by the G7 countries include a global minimum tax of at least 15% and changes to profit allocation rules that mean large digital companies will pay more tax in countries where their customers are located, including the UK. The detailed design of the new rules is still under consideration, so it would be premature to provide revenue estimates. When the rules are implemented, the revenue impact will be formally assessed and certified by the OBR.
The Lord Bishop of St Albans [V]
I congratulate the Chancellor and the Government on reaching this landmark agreement. It is a positive step towards a global level playing field and an end to the unjust practice of offshoring. While this is a welcome starting point, does the Minister agree with the Chancellor’s assessment that this is a fair deal, given that the proposal now outlined clearly favours high-income countries at the expense of lower-income ones? Would it not be fairer for the Government to pursue a path on which additional tax revenues are distributed without preference being given to the countries in which multinationals are headquartered?
Baroness Penn (Con)
I thank the right reverend Prelate for his words of welcome. This is indeed a significant agreement. I disagree with his assessment of what has been agreed so far. It will benefit all countries, including lower-income countries. As he will know, this is not the end of the process. A key part of this process so far and going forward is the OECD inclusive framework, which means that less economically developed countries have an equal voice in the final agreement to those that are more economically developed.