Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the contribution of fintech lending platforms to improving access to working capital for small and medium-sized enterprises.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The UK is a world leader in Fintech, and attracted $3.6 billion of investment in 2025, second only to the US. The Government is committed to making the UK the world’s most technologically advanced global financial centre, and remaining a leading jurisdiction for fintech firms to start-up, scale and list.

Fintechs and specialist banks are an essential part of the UK's credit landscape, including access to working capital. The share of total nominal gross bank lending to SMEs by challenger and specialist banks in 2024 was 60 per cent.

Business models and financial technology have also evolved substantially, with more competition both for business banking and credit provision, increasing the options available to small and medium-sized enterprises to invest in and grow their businesses.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the implications for employment law, taxation and consumer protection of workers being paid in stablecoins or other digital assets.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Income Tax, National Insurance Contributions and PAYE rules for non-money earnings apply to stablecoins and other cryptoassets in the same way as other assets. HMRC has set out guidance explaining how tax rules apply to employment earnings in the form of cryptoassets.

As the market for cryptoassets evolves, the Government will continue to keep the tax framework under review.

The Government has also introduced a new financial services regulatory regime for cryptoassets which will raise standards, strengthen consumer protection, and address market abuse.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the level of competition within the UK’s retail payments market, particularly in relation to international card schemes; and what steps they are taking to support the development of competitive domestic payment infrastructure.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The UK has a diverse and competitive retail payments ecosystem, with a significant number of entrants into the sector in recent years.

The UK nonetheless remains a heavily card-based market. The Government recognises that greater choice in how to make and receive payments is likely to increase innovation and downward competitive pressure on the cost of payments.

In the National Payments Vision the government set out its ambition for account-to-account payments to be developed as a ubiquitous payment method – enabling consumers to pay digitally for goods and services in shops and online, without using a card. A new Retail Payments Infrastructure Board, chaired by the Bank of England and with representation from across the payments ecosystem, is currently working to design the UK’s future retail payments infrastructure in line with the government’s vision.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the role of AI tools integrated in e-commerce platforms in supporting productivity growth of small and medium-sized enterprises; and what impact that assessment has on their strategy for digital adoption by UK businesses.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

AI tools integrated into e-commerce platforms can help small and medium-sized enterprises (SMEs) to become more productive by automating routine tasks and improving data-based decision-making, for example on marketing, customer service and stock management.

The Department for Business and Trade is committed to increasing SME digital capability and AI confidence and is implementing the SME Digital Adoption Taskforce recommendations to address barriers such as lack of information, resources and skills. This includes convening industry roundtables to partner on delivering more, running local digital adoption pilots to test what support works best as well as linking up with the Business Growth Service to improve SME access to existing support.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the use of financial data by departments to support strategic decision-making and value-for-money assessments; and what steps they are taking to strengthen financial management capability in the public sector.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government routinely assesses how departments use financial information to support strategic decision-making and value for money. This includes scrutiny during Spending Reviews, regular engagement between HM Treasury and departments on budgets and forecasts, an End-of-Year assessment measuring financial performance, through departmental Annual Reports and Accounts, and through National Audit Office examinations, which provide independent assurance on the quality, transparency and use of financial data.

Departments routinely provide finance data to the HM Treasury OSCAR system, setting out their forecasts, budgets and spend to date. Departments report their forecast and actual efficiencies to HM Treasury. Accounting Officers of departments are responsible for value for money in the use of public funds, and in this they are supported by the guidance, budgeting and accounting framework provided by HM Treasury.

The Government is taking steps to strengthen financial management capability across the public sector through the Government Finance Function’s learning and development offer, which aims to build financial capability and develop a skilled and talented workforce. The Finance Function’s Government Finance Academy provides core learning offers which strengthen financial literacy across Government in key areas such as value for money, budgeting & forecasting, and provides professional training and development for finance professionals.

The Function also supports the development of talent pipelines and leadership capability across departments by building career frameworks and pathways that support progression. The Function connects some 9,000 finance professionals across government through its communities, networks and events, which further builds financial capability by providing opportunities for shared learning and fostering professional excellence.

The Government is modernising finance operations to support better decision‑making, including enhancing digital skills, promoting modern finance practices and encouraging the adoption of shared services and improved systems. Through common finance standards and data approaches the function enables departments to access high‑quality, reliable financial information, underpinning stronger financial management and improved value for money across government.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of (1) the use of artificial intelligence tools by consumers when making mortgage and other financial product decisions, and (2) the implications of that use for consumer protection.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The majority of mortgage loans are intermediated. Mortgage brokers are regulated by the Financial Conduct Authority and must comply with FCA Rules including the Consumer Duty and relevant mortgage conduct rules.

Regulated firms are already required to manage technology-related risks to consumers and financial stability, including those arising from the use of artificial intelligence (AI), under existing FCA rules. These include requirements relating to governance, operational resilience and data use.

The Government believes that the safe adoption of AI by the financial services sector is a major strategic opportunity that will power growth across the economy. As set out by the Chancellor in her Mais lecture, the Government’s ambition is for the UK to be the fastest adopter of AI in the G7, to boost productivity, drive economic growth, and deliver better products for consumers.

Question to the Department for Digital, Culture, Media & Sport:

To ask His Majesty's Government what assessment they have made of the financial sustainability of the workforce in the United Kingdom’s film and television production sector.

Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)

The UK’s creative industries generated £145.8 billion in GVA in 2024 — 5.6% of the economy — with film, TV, radio and photography contributing £23.5 billion. The sector’s growth and global strengths position the UK to lead in film and television production. To realise that ambition, we need a skilled and sustainable workforce. That is why our Sector Plan designates film, TV and video games as a frontier industry, signalling their priority status for future investment and support.

From April 2026, a £75 million Screen Growth Package will support independent UK content, attract inward investment and expand skills development, creating more jobs and greater long‑term stability across the sector. The Sector Plan also boosts access to finance through the British Business Bank, expanded debt and equity options, and tailored support for producers.

We are raising standards across the sector by acting on the Good Work Review, establishing the Creative Industries Independent Standards Authority and supporting the BFI’s £1.5 million WorkWise for Screen programme. Freelancers will have a stronger voice through a new Creative Freelance Champion, while the Employment Rights Act 2025 will tackle late payments, guarantee written contracts and extend health and safety protections.

We are also strengthening the skills and talent pipeline through major investment: expanding the National Film and Television School, scaling up the BFI Film Academy and delivering £725 million through the next phase of the Growth and Skills Levy, including fully funded SME apprenticeships for eligible under‑25s. From April 2026, new short courses in digital, AI and engineering will support Industrial Strategy sectors, complemented by work with DWP and Skills England to ensure training genuinely reflects the needs of creative employers.

Question to the Department for Education:

To ask His Majesty's Government what steps they are taking to (1) support access to computing and AI education for schoolchildren, and (2) address disparities in digital literacy across England.

Answered by Baroness Smith of Malvern - Minister of State (Department for Work and Pensions)

The government has accepted the relevant recommendations of the independent Curriculum and Assessment Review to ensure that young people become more digitally literate through a refreshed computing curriculum, including essential AI content, that builds digital confidence from an early age. We are considering how digital content can be integrated across other subjects to build strong, transferrable digital skills, and will replace the computer science GCSE with a broader qualification reflecting the full computing curriculum.

Work is underway to develop the new curriculum, and the department will conduct a public consultation on the draft programmes of study in summer 2026. To increase the number of pupils who will benefit from the reformed national curriculum, we are legislating so that academies will be required to teach it, alongside maintained schools.

We are continuing to invest in the National Centre for Computing Education to support teachers to teach about these topics with confidence.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of fintech investment platforms on competition, costs and investment choice in the self-invested personal pension market; and what steps they are taking to support innovation in digital pension products while maintaining appropriate regulatory safeguards.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government has not made a formal assessment of the impact of Fintech investment platforms on competition, costs and investment choice in the self-invested personal pensions (SIPPs) market.

The Financial Conduct Authority (FCA) is the regulator responsible for the SIPPs market. The FCA regularly reviews their relevant rules and regulations to ensure they are appropriate for the current market context. This includes supporting growth and innovation while maintaining appropriate regulatory safeguards to protect consumers.

As set out in the Government’s Financial Services Growth and Competitiveness Strategy, the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start up, scale and list.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact and role of accelerator and innovation programmes that support the growth of early-stage financial technology firms.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

As set out in the Government’s Financial Services Growth and Competitiveness Strategy, the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start up, scale and list.

The Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech. This includes creating a competitive regulatory environment by making it quicker and easier for new firms to achieve regulatory authorisation, as well as welcoming the City of London Corporation and the British Business Bank facilitating greater access to finance. The Financial Conduct Authority and Prudential Regulation Authority have launched a joint Scale-Up Unit to enhance engagement with fast-growing innovative firms.

Research England is also supporting activity in FinTech through the INFINITY programme, a partnership led by the University of Nottingham and the University of Birmingham to help researchers explore commercial opportunities in financial technology. There has been good engagement so far, with over 100 research projects developing their business potential and a number of ventures now progressing towards market.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the risks associated with the expansion of buy-now-pay-later lending through digital wallets and online marketplaces; and how the new regulatory framework will ensure effective affordability checks and consumer protection.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The Government is aware that Buy‑Now, Pay‑Later (BNPL) products have become a standard feature of digital wallets and online marketplaces, allowing consumers to defer payment at the point of sale. While these products can be a convenient way to help spread the cost of purchases, the lack of regulation has left some consumers exposed to harm, particularly through unaffordable borrowing.

To address this, in July 2025 Parliament passed legislation to bring BNPL products within Financial Conduct Authority (FCA) regulation. The new rules will take effect this July, with the FCA having confirmed the final regulatory requirements in February.

Under the new regulatory regime, BNPL firms will be required to carry out proportionate but robust affordability assessments before lending, informed by appropriate checks on consumers’ financial circumstances and existing borrowing commitments. Firms will also be required to provide clear, timely and prominent information on repayment terms, the consequences of missed payments, and what rights consumers have, enabling them to make informed decisions. In addition, consumers will gain access to established protections for credit users, including the Financial Ombudsman Service and section 75 rights under the Consumer Credit Act. Together, these measures will support the continued use of BNPL products while ensuring appropriate consumer safeguards are in place.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of Revolt being granted a banking licence on regulation and competitiveness in the fintech sector.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

Bank authorisations are a matter for the independent Prudential Regulation Authority.

As set out in the Government’s Financial Services Growth and Competitiveness Strategy, the UK aims to be the world’s most technologically advanced global financial centre, and to remain a leading jurisdiction for Fintech firms to start up, scale and list.

The Strategy set out a comprehensive package of reforms to maintain the UK’s global leadership in Fintech. This includes creating a competitive regulatory environment by working with UK regulators to make it quicker and easier for new firms to achieve regulatory authorisation.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the potential role of large language models in supporting Government departments to respond to enquiries from members of the public.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

His Majesty’s Government continues to take a careful and evidence led approach to exploring the potential role of large language models in supporting departments to respond to enquiries from members of the public.

I refer the noble Lord to the answer I gave to question HL15270 on 18 March 2026.

Question to the Department for Transport:

To ask His Majesty's Government what assessment they have made of the integration of voice-activated AI systems in consumer vehicles; and what steps they are taking to ensure that regulatory frameworks relating to safety, data protection and consumer protection are effective.

Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)

The Department has not made a specific assessment of integration of voice-activated Artificial Intelligence (AI) systems in consumer vehicles. Applicable legislation concerning safety, data protection and consumer protection still applies irrespective of the use of AI. The Department recently bolstered this by mandating internationally recognised requirements for vehicle cyber security that it helped develop. It also continues to work internationally to understand the risks from AI in automotive applications and how they could be managed or mitigated.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the extent to which public procurement frameworks allow (1) the NHS and, (2) the Ministry of Defence, to support the development and adoption of AI technologies produced by UK-based companies.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Department for Science, Innovation and Technology has not made a formal assessment to date of the extent to which public procurement frameworks allow the NHS or the Ministry of Defence to support the development and adoption of UK produced AI.

However, the Government is actively looking at this through a cross government ministerial working group bringing together DSIT, the Department of Health and Social Care and the Ministry of Defence, which is exploring how government works with innovative UK companies, including in the AI sector. Alongside this, the Government’s wider approach is to use public procurement to make the public sector a first customer for innovative technologies and a launchpad for scale ups, supported by Cabinet Office led social value reforms and work through the Commercial Innovation Hub.

Question to the Department of Health and Social Care:

To ask His Majesty's Government what assessment they have made of the role of digital technologies in supporting treatment and recovery services for people experiencing drug and alcohol addiction.

Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)

The Government is continuing to invest in improvements to local alcohol and drug treatment services to ensure those in need can access high quality help and support. From 2026, all drug and alcohol treatment and recovery funding will be channelled through the Public Health Grant, with over £13.45 billion allocated across three years, including £3.4 billion ringfenced for drug and alcohol treatment and recovery.

Local authorities are responsible for assessing local needs for alcohol and drug prevention and treatment in their area, and commissioning services to meet these needs. The Government works with local treatment systems to provide a number of digital products including guidance, subject-matter expertise and data tools to help them deliver their service.

Digital products are derived from The National Drug Treatment Monitoring System and other related health datasets and made available via a dedicated website to enable local treatment systems to monitor treatment access and better manage outcomes.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what steps they are taking to support UK researchers in the use of artificial intelligence, including measures to promote oversight and reproducibility.

Answered by Lord Vallance of Balham - Minister of State (Department for Energy Security and Net Zero)

We are working with UKRI, universities, and other partners to ensure the safe and responsible adoption of AI tools while protecting research integrity.

Our AI for Science Strategy recognises that the integration of AI into research holds potential to be the single most impactful application of the technology, setting out 15 actions that will support UK researchers. That will include the provision of compute through the AI Research Resource; delivery of training and upskilling in AI methods; the creation, curation, and scaling of AI-ready datasets; developing access models for AI tools; developing autonomous lab infrastructure, and supporting research into the impacts of AI on the scientific process.

Additionally, the National Data Library will support the foundations for AI-enabled research by improving access to high-quality public sector data, alongside recently published guidance to help public bodies make datasets AI-ready.

Question to the Department for Science, Innovation & Technology:

To ask His Majesty's Government what assessment they have made of the impact of AI tools on the UK’s outsourcing and contact-centre sector, including the use of AI-driven customer-service systems; and what implications this may have for employment patterns and skills demand in the sector.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The Government recognises that AI is transforming workplaces, demanding new skills and augmenting existing roles. We have launched the AI and the Future of Work Unit - a cross‑government function dedicated to ensuring AI delivers positive outcomes for the economy, jobs, and workers. We are preparing for a range of possible futures to ensure this transformation boosts productivity and opportunities and the Government launched an assessment of AI impacts on the labour markets in January 2026.

To build a digitally skilled workforce to support long-term economic growth, drive innovation and expand individual opportunity we are supporting AI Skills Boost to upskill 10 million workers in AI skills by 2030. We have already delivered more than 1 million AI training courses have been delivered to workers across the UK.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of the use of AI in the fashion industry to reduce unsold inventory and improve supply chain efficiency; and what support is available to retailers to adopt such technology to enhance productivity and sustainability.

Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)

The fashion industry is increasingly using AI to improve demand forecasting, reduce unsold stock and increase supply chain efficiency, thereby supporting productivity and sustainability. Businesses can access support to adopt AI through programmes such as Made Smarter and Innovate UK, alongside wider productivity, digital adoption and skills initiatives, helping businesses invest in technologies that improve efficiency while reducing waste and environmental impact.

The government supports responsible and ethical AI adoption across our world leading creative industries, enabling organisations and freelancers to improve productivity, reach new audiences and develop new products and services.