Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government whether they intend to introduce a statutory right to pay for goods and services in cash; and if so, whether this would be subject to financial limits.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups. UK Finance estimates around 1.5 million people pay mainly or solely with cash, many of these on low or fixed incomes. It is vital that cash remains a viable method of payment for those who rely on it.
The Financial Conduct Authority has recently assumed regulatory responsibility for protecting access to cash, and its new rules went live on 18 September. The rules require the UK’s largest banks and building societies to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.
Whilst it is for each business to decide on the forms of payment it chooses to accept, the Government welcomes the work of the regulators to monitor cash acceptance. For example, research published by the Financial Conduct Authority found that 98 per cent of small businesses surveyed would never turn customers away if they needed to pay in cash. The new rules by the Financial Conduct Authority will also support businesses to accept cash by ensuring they have reasonable access to deposit facilities.
Many banking customers also benefit from the ease and convenience of online or mobile banking and payments. The Government recognises that promoting digital inclusion is essential to building the skills and confidence people need to participate in a modern digital economy and is considering barriers to this. In addition, the Government is committed to championing sufficient in person banking for all as a priority, including those who are reliant on cash.
This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this parliament. These hubs provide individuals who need face-to-face support with critical cash and banking services, including support with using digital banking.
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 support people who rely solely on cash (1) to access cash, and (2) to access digital banking alternatives to cash.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups. UK Finance estimates around 1.5 million people pay mainly or solely with cash, many of these on low or fixed incomes. It is vital that cash remains a viable method of payment for those who rely on it.
The Financial Conduct Authority has recently assumed regulatory responsibility for protecting access to cash, and its new rules went live on 18 September. The rules require the UK’s largest banks and building societies to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.
Whilst it is for each business to decide on the forms of payment it chooses to accept, the Government welcomes the work of the regulators to monitor cash acceptance. For example, research published by the Financial Conduct Authority found that 98 per cent of small businesses surveyed would never turn customers away if they needed to pay in cash. The new rules by the Financial Conduct Authority will also support businesses to accept cash by ensuring they have reasonable access to deposit facilities.
Many banking customers also benefit from the ease and convenience of online or mobile banking and payments. The Government recognises that promoting digital inclusion is essential to building the skills and confidence people need to participate in a modern digital economy and is considering barriers to this. In addition, the Government is committed to championing sufficient in person banking for all as a priority, including those who are reliant on cash.
This is why the Government is working closely with industry to roll out 350 banking hubs across the UK. The UK banking sector has committed to deliver these hubs by the end of this parliament. These hubs provide individuals who need face-to-face support with critical cash and banking services, including support with using digital banking.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the level of cash access of those living in the most rural areas.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups. Furthermore, the Government recognises that businesses need access to cash deposit services in order to continue accepting cash and, therefore, support people’s ability to continue to transact using cash.
The Financial Conduct Authority has recently assumed regulatory responsibility for protecting access to cash, and its new rules went live on 18 September. The rules require the UK’s largest banks and building societies to seek to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary. The most recent data from the FCA shows 98 per cent of people in rural areas live within 3 miles of a free-to-use cash access point offering deposits.
The decision to accept or decline a form of payment is a commercial one. However, the Government recognises the importance of cash as a means of payment for essential services and to the wider economy, and therefore welcomes the work of the regulators to monitor cash acceptance. For example, research published by the Financial Conduct Authority in 2020 found that 98 per cent of small businesses surveyed would never turn away a customer if they needed to pay in cash.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what steps they will take to protect the use of cash in the purchasing of everyday goods and services.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups. Furthermore, the Government recognises that businesses need access to cash deposit services in order to continue accepting cash and, therefore, support people’s ability to continue to transact using cash.
The Financial Conduct Authority has recently assumed regulatory responsibility for protecting access to cash, and its new rules went live on 18 September. The rules require the UK’s largest banks and building societies to seek to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary. The most recent data from the FCA shows 98 per cent of people in rural areas live within 3 miles of a free-to-use cash access point offering deposits.
The decision to accept or decline a form of payment is a commercial one. However, the Government recognises the importance of cash as a means of payment for essential services and to the wider economy, and therefore welcomes the work of the regulators to monitor cash acceptance. For example, research published by the Financial Conduct Authority in 2020 found that 98 per cent of small businesses surveyed would never turn away a customer if they needed to pay in cash.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the finding in the Social Market Foundation report Fiscally Responsible: The case for reforming Remote Gambling Duty, published on 15 October, that 52 per cent of respondents to a Survation poll believe the Government should increase tax on online gambling.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As with all taxes, the Government keeps gambling duty rates under review. Any changes will be announced by the Chancellor in the Budget.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what consideration they have given to doubling the tax on remote gaming duty from 21 per cent to 42 per cent, as recommended by the Social Market Foundation report Fiscally Responsible: The case for reforming Remote Gaming Duty, published on 15 October.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As with all taxes, the Government keeps gambling duty rates under review. Any changes will be announced by the Chancellor in the Budget.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to conduct a full review of gambling taxation ahead of the 2025 Budget, as recommended in the Social Market Foundation report Fiscally Responsible: The case for reforming Remote Gaming Duty, published on 15 October.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
As with all taxes, the Government keeps gambling duty rates under review. Any changes will be announced by the Chancellor in the Budget.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government whether they have plans to remove VAT on defibrillators.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government currently provides VAT reliefs to aid the purchase of defibrillators. This means that charities pay no VAT if they purchase a defibrillator and then donate it to an eligible body.
VAT is a broad-based tax on consumption, and exceptions to the standard rate have always been limited and balanced against affordability considerations. The Government keeps all tax under review, and any changes will be announced at fiscal events.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact that removing VAT on defibrillators would have on the national rollout effort.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government currently provides VAT reliefs to aid the purchase of defibrillators. For example, when an AED is purchased with funds provided by a charity and then donated to an eligible body no VAT is charged. Furthermore, all state schools in England have been fitted with AEDs.The Government keeps all taxes under review including consideration of impacts. A key consideration for any potential VAT relief is whether savings would be passed on to the consumer, and evidence suggests that savings are not always passed on.
VAT is the UK's second largest tax forecast to raise £176 billion in 2024/25, and taxation is a vital source of revenue which helps to fund public services. The Government has no current plans to make changes to the VAT treatment of AEDs.
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
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.