NatWest: Account Terminations and Branch Closures

Lord Grantchester Excerpts

Wednesday 10th January 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

No, I think those comments were very ill advised and I rather wish he had not made them—as I am sure he does. The key to a thriving housing market is ensuring that interest rates come down. To do that, one has to reduce inflation, and that is exactly what this Government are doing.

[Lord Grantchester (Lab)]

It is excellent news that the Government have today commenced the statutory instrument by which so-called “politically exposed persons” will not be subjected to increased monitoring compared with the general public. Will the Minister ensure that banks no longer use the policy of “constant refresh know your client” as an excuse to close bank accounts?

[Baroness Vere of Norbiton (Con)]

I am very grateful to the noble Lord for allowing me to highlight to the House that that statutory instrument, laid before Christmas, comes into force today. It means that banks should not treat all politically exposed persons the same; domestic politically exposed persons, as well as their family members and close associates, will be subject to a lower level of checks. In terms of “know your client”, it is important that we have the right balance between the information the banks have about the client and any concerns about their involvement in illicit finance. There are money laundering regulations in place but they are not prescriptive—firms must apply them in a proportionate fashion and appropriate guidance for banks on customer due diligence has been published by the Joint Money Laundering Steering Group.

Silicon Valley Bank

Lord Grantchester Excerpts

Tuesday 14th March 2023 Lords Chamber

[Baroness Penn (Con)]

On the noble Baroness’s final point, I do not think that those two aims need to contradict each other. In fact, the Financial Services and Markets Bill aims to deliver on both. I emphasise to the House the importance of a healthy financial services sector to growing our economy in all parts of our country. I point out to the noble Baroness that no one has said that the events over the weekend have brought into question the UK’s prudential regulatory regime and the protections we have put in place.

However, the point made by the noble Lord, Lord Fox, about the changing context and being able to remain dynamic in our assessment of the risks and, therefore, in looking at how our system works, is absolutely right. The world changes very quickly and there is absolutely no room for complacency here. But do I think that the reforms we are proposing in the Bill are right? Do I think they will both promote growth in the UK and protect the safety and soundness of our system? I do, and we will continue to strike that balance as we take our reforms forward.

[Lord Grantchester (Lab)]

Although the main reason for Silicon Valley Bank’s collapse may be its poor handling of the bond market, whether or not augmented by aggressive raising of interest rates by the Fed in the US and turbulence from the Truss era in London, nevertheless, the fact that the bank’s business was focused on new technology and innovation has raised some alarm. Can the Minister give the House an assurance that the technology sector, with its own stresses, has been protected by the transfer to the safe haven of HSBC, and that the drive to net zero and the raising of finance for that imperative has not been impeded in any way?

[Baroness Penn (Con)]

I can absolutely reassure the House that all depositors’ money with SVB UK is safe and secure as a result of the transaction. The noble Lord is right that many of SVB UK’s customers represented large parts of the tech sector in the UK. Part of the success of securing that sale means that they can continue with their business and with investing in innovative solutions to challenges such as net zero, confident that their banking services remain in place.

Small Business, Enterprise and Employment Bill

Lord Grantchester Excerpts

Wednesday 11th March 2015 Lords Chamber

[Lord Grantchester (Lab)]

I thank the Minister for her explanation of the amendment. Even if today the closure of a mine is not of the significance that it was a generation ago, it is still an important matter to the industry, to the local community around the pit and to the people directly involved. It is right that the Government should be able to provide appropriate support in this amendment through concessionary coal payments.

The amendments in this group are welcome as they can help to provide assistance at a time of great anxiety and stress to employees, who will appreciate the security that they can provide. In order that these concessionary coal payments can have some certainty as well, I ask the Minister if she can provide a bit more clarity on certain points with regard to subsection (3) of the new clause proposed by Amendment 81A, concerning Treasury consent. I understand that her department is preparing to submit these proposals for clearance under state aid rules. Does this mean that this enabling power could never be needed should the Treasury refuse to sanction her department’s submission? What would be the scope of that decision? Is it likely to lead to a reduction in the concession?

I understand from my honourable friend Tom Greatrex in the other place that the Minister, Matt Hancock, has promised to submit the proposal before Dissolution. I would be grateful if the Minister can confirm that commitment tonight and make the announcement before Parliament rises. For the comfort of the people who will be nervous of their situation in the coalfield, can she provide as much information as possible concerning how long she would envisage clearance to take on this state aid submission to the EU? Every week that goes by without state aid, the sum required actually increases. Should clearance be received before Dissolution, will she make the commitment that this will be announced to Parliament? However, should clearance not be received before Dissolution, can an announcement be made between Parliaments? Clarity and certainty in her assurances will be vital to those in these vulnerable communities.

[Baroness Verma]

My Lords, I am extremely grateful to the noble Lord, Lord Grantchester, for his support for the amendments. He raised a couple of questions which I hope I will be able to clarify. The Treasury has confirmed that it will meet the entitlements, although the reinstatement remains conditional, as the noble Lord is aware, on the Government securing the necessary approvals, including one from the Commission. We can assure concessionaires that entitlements will be reinstated, as they have been in the past, on the same terms and conditions.

We will be discussing state aid aspects with the Commission at the earliest opportunity and will formally notify the concessionaires as soon as practicable. The state aid clearance processes can take time, as the noble Lord is aware, so it is difficult for me to provide your Lordships with definitive assurances at this time. We will discuss, of course, with the Commission at the earliest opportunity to ensure a prompt and smooth clearance process. I reassure the noble Lord that no concessionaries will suffer loss as a consequence of any inertia in the process. Entitlements will be backdated, as they have been in the past, should any delays arise. I am extremely grateful to the noble Lord for his support and I hope that my response has satisfied him.

Infrastructure Bill [HL]

Lord Grantchester Excerpts

Monday 10th November 2014 Lords Chamber

[Lord Grantchester (Lab)]

My Lords, as the noble Baroness has stated, this amendment follows from the recommendations made by the Delegated Powers and Regulatory Reform Committee of your Lordships’ House. It is clear that the availability of statutory safeguards was a matter of considerable concern to a large proportion of respondents to the Government’s consultation exercise. If these safeguards are to be repealed, the proposed regulations should be approved by Parliament after the Government have made a full explanation which has been examined and debated by both Houses. We are pleased that the Government have seen fit to agree that any of these regulations will be made under the affirmative procedure.

Amendment 119B agreed.