Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to ensure transparency and accountability where FCA-authorised firms fail and retail investors have losses.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA) assumed responsibility for the peer to peer lending sector in 2014. In 2016, the FCA launched a post-implementation review into the peer to peer and crowdfunding sector, leading to a consultation on updated rules for the sector in 2018, with a set of strengthened rules being published in 2019.
The FCA has supervisory and enforcement powers in relation to the sector, and has undertaken investigations into certain, individual firms, such as Lendy Ltd. Lendy was subject to an asset restriction and a court petition to appoint a liquidator prior to it being placed in administration. The FCA has received several complaints about its regulation of Lendy under its Complaints Scheme. We await the findings of the complaints investigation into the FCA’s actions under the Complaints Scheme.
The Government takes the accountability of the FCA very seriously. The FCA’s independence from Government does not mean it can act arbitrarily; rather, it must operate within the framework of statutory duties and powers agreed by Parliament. As well as being required to operate within this framework, the FCA is fully accountable to Parliament for how it discharges its statutory functions.
There are a number of ways in which the legal framework ensures direct accountability of the FCA to Parliament, such as a requirement for the FCA to produce annual reports and accounts, which are laid before Parliament by the Treasury. The FCA is also subject to scrutiny via departmental select committee hearings, including the Treasury Select Committee and the Lords Financial Services Regulation Committee.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the adequacy of the Financial Conduct Authority’s supervision and regulation of Lendy Ltd prior to its collapse.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA) assumed responsibility for the peer to peer lending sector in 2014. In 2016, the FCA launched a post-implementation review into the peer to peer and crowdfunding sector, leading to a consultation on updated rules for the sector in 2018, with a set of strengthened rules being published in 2019.
The FCA has supervisory and enforcement powers in relation to the sector, and has undertaken investigations into certain, individual firms, such as Lendy Ltd. Lendy was subject to an asset restriction and a court petition to appoint a liquidator prior to it being placed in administration. The FCA has received several complaints about its regulation of Lendy under its Complaints Scheme. We await the findings of the complaints investigation into the FCA’s actions under the Complaints Scheme.
The Government takes the accountability of the FCA very seriously. The FCA’s independence from Government does not mean it can act arbitrarily; rather, it must operate within the framework of statutory duties and powers agreed by Parliament. As well as being required to operate within this framework, the FCA is fully accountable to Parliament for how it discharges its statutory functions.
There are a number of ways in which the legal framework ensures direct accountability of the FCA to Parliament, such as a requirement for the FCA to produce annual reports and accounts, which are laid before Parliament by the Treasury. The FCA is also subject to scrutiny via departmental select committee hearings, including the Treasury Select Committee and the Lords Financial Services Regulation Committee.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is considering to address regional cost of living inequalities.
Answered by James Murray - Chief Secretary to the Treasury
There is excellence right across the country and this government is backing it: lifting living standards and putting more money in people’s pockets. The recent Budget announced that the government is taking around £150 on average off household energy bills, expanding the £150 Warm Home Discount to 6 million lower income households, freezing regulated rail fares and NHS prescription fees for one-year, and extending temporary 5p fuel duty cut until the end of August 2026.
These measures will help people across the country with the cost of living.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment her Department has made of the cost-of-living pressures facing working people in Greater Manchester.
Answered by James Murray - Chief Secretary to the Treasury
The government is prioritising cutting the cost of living and improving living standards across the UK, including for residents in Greater Manchester. The government recognises that people are still feeling the squeeze on their finances with essential areas such as energy, food and housing remaining too high. That is why we have announced that we are taking around £150 on average off household energy bills, expanding the £150 Warm Home Discount to 6 million lower income households, freezing regulated rail fares and NHS prescription fees for one-year, and extending temporary 5p fuel duty cut until the end of August 2026.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the disparity between wage growth and increases in living costs in Greater Manchester.
Answered by James Murray - Chief Secretary to the Treasury
Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament. The main route to higher living standards is through good, productive jobs, stable employment, and a thriving business environment.
The government is taking action to cut the cost of living and bring down inflation. At the Budget 2025, the government announced that it would deliver a set of measures to remove an average of £150 from household energy bills from April 2026 and would implement a one-year freeze on regulated train fares and prescription charges.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the (a) volume and (b) value of goods imported to the UK from Israeli settlements in the Occupied Palestinian Territories in the last 12 months.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The Government’s position is that Israeli settlements in Palestine (formerly referred to as the Occupied Palestinian Territories) are illegal under international law. For trade statistics purposes Palestine consists of the West Bank (including East Jerusalem) and the Gaza Strip.
HM Revenue & Customs (HMRC) is responsible for the collection and publication of data on imports and exports of goods to and from the UK. HMRC releases this information monthly, as an accredited official statistic called the Overseas Trade in Goods Statistics (OTS), which is available via their dedicated website (https://www.uktradeinfo.com/).
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has made an assessment of the potential impact of business rates on (a) private, (b) voluntary and (c) independent nurseries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In April 2025, the Government removed eligibility of private schools in England for business rates charitable rate relief. Schools that satisfy the definition of a private school have lost entitlement to charitable rate relief entirely. This definition may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools.
Standalone nursery schools, where they have their own business rates assessments, were excluded from the legislation and, where applicable, have retained their charitable rate relief. This approach best ensures consistency with the underlying policy intent.
Analysis on the expected impact of this policy can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of business rates on (a) private, (b) voluntary and (c) independent nurseries.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
In April 2025, the Government removed eligibility of private schools in England for business rates charitable rate relief. Schools that satisfy the definition of a private school have lost entitlement to charitable rate relief entirely. This definition may include private schools with some nursery classes, which, despite the presence of some nursery provision will still be, by their nature, private schools.
Standalone nursery schools, where they have their own business rates assessments, were excluded from the legislation and, where applicable, have retained their charitable rate relief. This approach best ensures consistency with the underlying policy intent.
Analysis on the expected impact of this policy can be found online here: https://www.gov.uk/government/publications/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief/removal-of-eligibility-of-private-schools-for-business-rates-charitable-relief
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will instruct the Financial Conduct Authority to investigate pricing in the insurance market.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
Insurers make commercial decisions about the price and terms of cover they offer based on their assessment of the relevant risks.
However, the Government is determined that insurers should treat customers fairly and firms are required to do so under Financial Conduct Authority (FCA) rules. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive).
The FCA monitors firms to ensure they provide products that offer fair value and has robust powers to act against firms that fail to comply with its rules.
Asked by: Afzal Khan (Labour - Manchester Rusholme)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of classifying thermal storage heaters as energy saving materials.
Answered by James Murray - Chief Secretary to the Treasury
The Government is committed to improving the quality and sustainability of our housing stock. Installations of qualifying energy-saving materials (ESMs) in residential accommodation and buildings used solely for a charitable purpose benefit from a temporary VAT zero rate until March 2027, after which they will revert to the reduced rate of VAT at five per cent.
The Government assesses whether to add ESMs to this relief by evaluating them against the following principles: the primary purpose of the technology must be to improve energy efficiency and reduce carbon emissions, and relieving the technology of VAT must be cost effective and align with broader VAT principles.