Central Bank Digital Currency
Debate between Baroness Penn and Lord Fowler
Baroness Penn (Con)
The increase in digital payments during the pandemic has happened without the introduction of a central bank digital currency. However, the Government continue to look at the potential benefits of introducing a digital currency which may improve the resilience and innovation of payment systems within the UK.
The Lord Speaker (Lord Fowler)
Is the noble Lord, Lord Desai, there? He is not. All the supplementary questions have now been asked and we move to the next Question.
Build Back Better Business Council
Debate between Baroness Penn and Lord Fowler(3 years, 9 months ago)
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Baroness Penn (Con)
I absolutely agree about the important role of fintech and I have enjoyed the debates on the Financial Services Bill in Committee so far, covering both financial inclusion and fintech. I have not seen the strategic review yet, as it is out tomorrow, but I am sure that it will do an excellent job and that the Government will consider its recommendations carefully.
The Lord Speaker (Lord Fowler)
My Lords, the time allowed for this Question has elapsed, and we now come to the fourth Oral Question.
New Businesses: Capital Gains Tax
Debate between Baroness Penn and Lord Fowler(3 years, 10 months ago)
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Baroness Penn (Con)
My Lords, inheritance tax is currently the main tax levied at the point of death. However, I am sure the noble Lord will be aware of the Office of Tax Simplification’s report on inheritance tax; the Government are considering its findings carefully.
The Lord Speaker (Lord Fowler)
My Lords, all supplementary questions have been asked.
Health Protection (Coronavirus, Restrictions) (All Tiers) (England) Regulations 2020
Debate between Baroness Penn and Lord Fowler(3 years, 11 months ago)
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Baroness Penn (Con)
My Lords, now is a good moment to remind speakers of the time limit for this debate, which is six minutes for Back-Bench contributions.
The Lord Speaker (Lord Fowler)
The noble Lords, Lord Forsyth of Drumlean and Lord Hutton of Furness, have withdrawn, so I call the noble Lord, Lord Cormack.
United Kingdom Internal Market Bill
Debate between Baroness Penn and Lord FowlerWednesday 25th November 2020
(3 years, 12 months ago)
Lords ChamberRead Full debate United Kingdom Internal Market Act 2020 View all United Kingdom Internal Market Act 2020 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: HL Bill 150-III(Rev) Revised third marshalled list for Report - (23 Nov 2020)
Baroness Penn (Con)
My Lords, I begin by reminding noble Lords of the purpose of this part of the Bill. The power to provide financial assistance supports the Government’s determination to deliver on the commitments on which they were elected: levelling up and delivering prosperity across the whole United Kingdom, and strengthening the ties that bind our union together. It provides for a unified power that operates consistently UK-wide—one which will allow for strategic investment throughout the UK, underpinning the Government’s determination to see all parts of the UK flourish. It makes sure that we meet our manifesto commitment to deliver a UK shared prosperity fund which allows the Government to invest in communities across England, Scotland, Wales and Northern Ireland. Previously, in many of these areas, the EU mandated how our money had to be spent, with little say from elected politicians in the United Kingdom. The UK Government intend to take a much more collaborative approach in delivering any funding that replaces EU programmes.
In this context, I will speak to Amendments 64 and 68, which seek to remove Clauses 42 and 43. The noble and learned Lord, Lord Thomas, asked why such a power should be included in this Bill. The ability of the UK Government to invest in and support businesses and communities in all parts of our union, as these clauses provide for, helps to achieve a stronger and fairer internal market. Indeed, this is the argument the EU makes on the role of European structural and investment funds in strengthening the European single market. It is right that, as we leave at the end of the transition period, the UK Government have the right tools to make sure the whole country can benefit from investment which strengthens communities, economies and connectivity within and between all parts of the UK.
Another point of focus from noble Lords, including the noble Lords, Lord Purvis and Lord Fox, the noble and learned Lord, Lord Thomas, and the noble Baroness, Lady Finlay, among others, was the role of the devolved Administrations and other local partners, including local authorities. Let me be clear: this power is in addition to the devolved Administrations’ existing powers. It will allow the UK Government to complement and strengthen the support given to citizens, businesses and communities in Scotland, Northern Ireland and Wales. It does not take away responsibilities from the devolved Administrations. Rather, the power will enable the UK Government to deliver investment more flexibly and dynamically and in collaboration with the devolved Administrations and other partners.
We have taken a collaborative approach to investment with devolved Administrations already, for example through our successful city deals programme, as noble Lords have talked about. The UK Government intend to continue to work in this spirit of partnership with stakeholders. We will make sure that this new power can facilitate UK government support for projects, making it far more responsive and responsible for addressing the needs of communities and businesses throughout the country.
We have seen how important this can be. Colleagues on these Benches and in the other place have already noted that our experiences of Covid-19 have demonstrated the value of a responsive UK Government. The noble Lord, Lord Stevenson, questioned the support in this House for that statement; I tend to disagree, unless the party opposite does not support the furlough scheme and the Bounce Back Loan Scheme that have protected thousands of jobs and businesses across the UK during this pandemic. To make sure that the UK Government can deliver on this ambition for all parts of the UK, I hope these amendments will be withdrawn or not pressed.
Turning to government Amendment 66, we listened carefully to the debate by noble Lords on this part of the Bill in Committee, where questions were asked on how the clause would operate. Through Amendment 66, the Government seek to introduce a requirement in Clause 43 to report annually to Parliament on the use of this power to provide financial assistance. This would put a requirement in legislation to provide a summary on the use of the power for scrutiny by parliamentarians, other key partners and the wider public. This is in addition to the scrutiny role that Parliament already performs for public spending through voting on the spending allocations, as part of the estimates process and in line with the principle of the PAC concordat.
This requirement makes sure that key partners, including devolved Administrations, have transparency on where funding under the power has been directed. Any future funding decisions are subject to fiscal events. Accordingly, the requirement added by Amendment 66 requires a summary of the use of the power in the previous financial year. I hope your Lordships’ House will agree that this government amendment improves the opportunity for Parliament to see and scrutinise financial assistance provided under the power in Clause 42.
I will now discuss Amendments 65 and 67. Amendment 65 would mean that this new clause would seek to establish a UK shared prosperity fund commissioner, whose primary task would be to make recommendations for the disbursement of the UK shared prosperity fund. Amendment 67 would mean that financial assistance for economic development would be managed and administered through the devolved Administrations. As I have said, this power to provide financial assistance is wider than any single fund or organisation. It will ensure that the UK Government are well positioned to deliver financial assistance, following the end of the transition period, and to replace EU structural funds. It is crucial that the UK Government can use successor funds to invest strategically and have the additional flexibility needed to invest across the whole UK that this power provides. These amendments, including the establishment of a commissioner, would curtail that flexibility. In addition, decisions on governance for the fund should not be made through legislation.
Noble Lords are, however, right to seek progress on the UK shared prosperity fund. The Covid-19 pandemic presented exceptional circumstances, and it is right that our focus and priorities shift accordingly. The Government have conducted a one-year spending review to prioritise the response to Covid-19 and focus on supporting jobs. However, in these challenging times it is important we do not lose sight of our long-term objectives. I reassure my noble friend Lord Trenchard that investment under EU structural funds peaks next year and will tail off until 2023, with spending in each of England, Scotland, Wales and Northern Ireland remaining higher than the annual average.
To ensure a seamless transition from EU structural funds into the UK shared prosperity fund, we announced additional spending today in the spending review to help local areas prepare over 2021-22 for the introduction of the UK shared prosperity fund, supporting our communities to pilot programmes and new approaches. As noble Lords have also referenced, we have published the heads of terms setting out our plans for the shared prosperity fund.
The noble and learned Lord, Lord Thomas, asked whether the spending would be efficient and effective. The bureaucratic burden of EU programmes meant that places have had to wait a long time before they received any funding. Places typically see no investment in their communities until at least a year after the programmes have started. The provision of additional funding next year will be quick and responsive; it will be phased in as EU investment declines.
The heads of terms also set out that there will be two portions of the fund: one targeting places most in need to support people and communities to open up new opportunities; and a second targeted differently at people most in need through bespoke employment and skills programmes, again tailored to local need. As the noble Lord, Lord Stevenson, noted—I hope the noble Baroness, Lady Bennett, who had not seen the spending review document, will take some reassurance from this—the terms also state that investment should be aligned with the Government’s clean growth and net-zero objectives.
We have not taken back control over investment to hoard it in Whitehall or to roll over EU prescriptions on how we invest in our local economies. Local places across the UK will be able to shape investment to reflect their needs. This means a strong role for local partners across the UK. The UK Government intend to work with devolved Administrations and local communities to ensure this power is used to best effect and that the UK shared prosperity fund supports citizens across the UK. This includes engaging with local authorities and devolved Administrations, as well as wider public and private sector organisations. I reassure noble Lords that the Government have held 26 engagement events across the UK on plans for the shared prosperity fund, including 16 events in devolved Administrations, and that UK government officials regularly speak with their counterparts in the devolved Administrations to discuss the design and operation of the fund to ensure it supports every part of the UK.
Further details on additional funding for next year will be published in a prospectus in the new year. We will set out further details on the UK shared prosperity fund in the UK-wide investment framework, to be published in the spring. A multiyear profile will be set out at the next spending review.
The short answer to the noble Lord, Lord Fox, on his final question on the role of the office for the internal market is no. It looks only at Parts 1 to 3 of the Bill and relevant effects, so it would not look at decisions under this power.
Given the further details I have set out today, I encourage noble Lords not to press their amendments.
The Lord Speaker (Lord Fowler)
My Lords, I have received requests to ask a short question from the noble Lord, Lord Liddle, the noble Baroness, Lady Finlay of Llandaff, and the noble Lords, Lord Fox and Lord Purvis of Tweed. I call the noble Lord, Lord Liddle, to ask a short question for elucidation.
Adult Learning: Union Learning Fund
Debate between Baroness Penn and Lord Fowler
Baroness Penn (Con)
My Lords, I believe that I have acknowledged the return on investment, but, as I also pointed out, the return on investment in FE in general is slightly higher than in Unionlearn. Of course, it is for businesses and trade unions to keep working together, if they so wish, to provide training for their employees; that is something that the Government would welcome.
The Lord Speaker (Lord Fowler)
My Lords, all supplementary questions have been asked, and we now move to the second Oral Question.
Tax Avoidance: Base Erosion and Profit Shifting
Debate between Baroness Penn and Lord Fowler
Baroness Penn (Con)
I am pleased to tell my noble friend that progress is still being made on these actions, despite the global pandemic. On 12 October, the OECD published its Reports on the Pillar One and Pillar Two Blueprints, regarding the new work going forward. The UK is working with the OECD to support multilateral implementation, having supported and implemented all the key components itself. The OECD published a progress report this year on actions taken.
The Lord Speaker (Lord Fowler)
My Lords, the time allowed for this Question has elapsed.
Covid-19: Social and Economic Inequalities
Debate between Baroness Penn and Lord Fowler
Baroness Penn (Con)
I will certainly ensure that the Treasury finds out about the Ride Out Recession Alliance, if it is not aware of its work already. I agree with the noble Lord about the benefits of preventing homelessness and many other issues. During the pandemic we have increased the value of the local housing allowance to help people stay in their own homes, even if they have suffered adverse economic effects from the pandemic.
The Lord Speaker (Lord Fowler)
My Lords, the time allowed for this Question has elapsed. We now come to the second Oral Question.
VAT Retail Export Scheme
Debate between Baroness Penn and Lord Fowler
Baroness Penn (Con)
My Lords, the change in the position since 2013 is that the Government can no longer apply the scheme only to non-EU visitors. The end of the transition period and WTO rules mean that we are faced with the decision to extend it to all visitors or get rid of the scheme altogether. Given the costs associated with the scheme and our understanding of the primary drivers of people’s reasons for visiting the UK, we have taken the decision that we have.
The Lord Speaker (Lord Fowler)
My Lords, the time allowed for this Question has elapsed. We now come to the fourth Oral Question.
Net Zero Review
Debate between Baroness Penn and Lord Fowler
Baroness Penn (Con)
Yes, I can reassure the noble Baroness that it will. The review is not a question of whether we need to act to meet our net-zero target; it is about how we can act to meet it. That target is set out in law. We were the first major economy to commit to it, and the review is all about how we get there. So the question of the costs of not getting there, although important, is also, I hope, one that we have put to bed.
The Lord Speaker (Lord Fowler)
My Lords, all supplementary questions have been asked, and we now move to the next Question, the fourth Oral Question, asked by the noble Baroness, Lady Massey of Darwen.
Green Investment Fund
Debate between Baroness Penn and Lord Fowler(4 years, 2 months ago)
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Baroness Penn (Con)
As we can see from a slightly busier House today than before Recess, some noble Lords have returned to a bit of a commute. I do not think there has to be a contribution to climate change from commuting. That is why we have invested £2 billion in walking and cycling, which can contribute to people’s well-being. One of the things that we have seen during the pandemic is more flexible working structures that may allow people to get away from just peak travel. That can reduce congestion and reduce the impact on climate change.
The Lord Speaker (Lord Fowler)
My Lords, the time allowed for this Question has elapsed. I congratulate those who took part.
Banks: Internet Transfers of Cash
Debate between Baroness Penn and Lord Fowler
Lord Mackenzie of Framwellgate (Non-Afl) [V]
My Lords, we all support security checks by banks to prevent fraud and scams. However, there seems to be evidence emerging that some banks are routinely delaying transfers by holding up payments in the name of security. It is apparent that transfers are being frozen by banks without any adequate reason being given. Complaining is then made difficult by inadequate staffing or working from home, with long queueing on the phone. False promises of jam tomorrow are made. In some cases, the delay is blamed on HMRC, which blocks the payment with some kind of flagging mechanism on the account. Even when cleared, removing the flag is woefully slow—over two or three weeks, in one example, allegedly because HMRC is inundated with work. This is not good enough. The Minister knows that cash flow is the lifeblood of business, and these blockages in companies’ financial arteries are haemorrhaging British jobs. I ask the Minister: should there not be a duty on the banks to notify card-holders immediately when transfers are delayed and put on hold like this? Could the Minister advise the House on whether the banks profit by returning possession of these funds, which must amount to significant sums at any one time?
The Lord Speaker (Lord Fowler)
I repeat my instruction to have short questions. It is totally unfair on other questioners.
Baroness Penn
My Lords, there are circumstances where a firm may not be able to process a transaction immediately—in particular, where there are suspicions of criminal activity such as fraud or money laundering. The regulations in this area require checks to be proportionate to the assessment of risk. I reassure the noble Lord that, in such cases, banks should not be profiting from the holding of payments. On the question of disclosure, as this is potentially about fraud or other criminal activity, disclosing the holding of funds for these purposes may prejudice the investigation that is taking place.
Baroness Penn
I am not aware of the adverts that the noble Baroness refers to. We expect all businesses to treat SMEs fairly and proportionately in their transactions.
The Lord Speaker
My Lords, all supplementary questions have been asked. We now come to the second Oral Question.
Inheritance Tax
Debate between Baroness Penn and Lord Fowler
Baroness Penn
The Government often look at systems in other countries to see what can be learned from them. In the UK, the Government think that inheritance tax makes an important contribution to the Exchequer, while balancing the importance of allowing those who have worked hard and built up an asset that they want to pass on the ability to do so.
The Lord Speaker (Lord Fowler)
My Lords, the time allowed for this Question has now elapsed.
Economy: Bank of England Forecasts
Debate between Baroness Penn and Lord Fowler
Lord Wood of Anfield (Lab)
My Lords, pursuing the Question put by the noble Lord, Lord Lamont, one of the—[Inaudible]—about the scale and speed of recovery. It said that growth could hit 15% for 2021 as a whole. Does the Minister not agree that inducing excessive optimism about the speed of the recovery has its own risks, and does she agree with the former Chancellor, Sajid Javid, who said today that a— [Inaudible]—unlikely?
The Lord Speaker (Lord Fowler)
I am afraid that we got only part of your question. Minister, can you make something of that?
Baroness Penn
I will attempt to do so. In terms of optimism, or otherwise, about the speed of the recovery, the OBR’s and Bank of England’s scenarios are not those of the Government. We do not make our own economic forecasts. I would also point out that they are scenarios rather than forecasts, and the Bank of England said that the risk in its scenario was probably more on the downside. The Government are focused on providing support now for jobs and businesses so that they are protected during this time and so that we can recover as quickly and as safely as possible.
Baroness Penn
I believe that the Bank’s scenario took into account the gradual unwinding of the lockdown and of the support schemes matched to it, completed by the end of quarter 3. However, the Bank makes its own decisions about any scenarios or forecasts that it produces to inform its own decision-making and policy-making.
The Lord Speaker
My Lords, the time allowed for this Question has now elapsed. I apologise to the two Members who were unable to get in but I thank all noble Lords. That concludes the Virtual Proceedings on Oral Questions. The Virtual Proceedings will resume at 12.30 pm and, until then, stand adjourned.
Covid-19: Economy
Debate between Baroness Penn and Lord Fowler
Baroness Penn
As the noble Baroness said, we introduced bounce-back loans just this week. We are moving at pace to make sure that all the measures that we have announced are implemented. Because of that pace, we will of course always keep those measures under review to see how well they are working and that the support is getting where we want it to be. If further measures are needed, we will keep that under review as well.
The Lord Speaker (Lord Fowler)
Lord Sharkey. No? I call the noble Baroness, Lady Rawlings.
Baroness Rawlings (Con)
My Lords, what is essential? Does the Minister agree that mental stability is vital for prosperity and well-being? If so, does she agree that gardening and the arts are essential for the mind, just as food is for the body, to keep this nation prosperous and sane and to save lives?
Baroness Penn
The Government are very conscious of the impact that this pandemic may be having on people’s mental health and well-being. That is something that we will take into account as we look at the social distancing measures that we have in place. I know that many arts organisations are undertaking a lot of innovative work to bring arts into people’s homes. With regard to garden centres, we are working closely with the Horticultural Trades Association to see what can be done as we look at the easing of these measures.
The Lord Speaker
Lord Hendy. No? I call the noble Lord, Lord Woolley of Woodford.
Lord Woolley of Woodford (CB)
Black and minority ethnic youths are twice as likely to be unemployed as their white counterparts and 48% more likely to be on zero-hours contracts. What plans do the Government have to mitigate this already shocking data, which could get very much worse?
Baroness Penn
Of course, decisions around monetary policy are for the independent Bank of England. It has already taken action in this crisis, including cutting the bank rate from 0.25% to 0.1% and introducing the Term Funding Scheme with additional incentives to support small and medium-sized enterprises during this time.
The Lord Speaker
Are the noble Lords, Lord Sharkey or Lord Hendy, there now? No? In that case, the time allowed for the first set of questions has now elapsed.