Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has provided guidance to UK banks on their ability to provide services to overseas territories.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The provision of UK banking services overseas is a commercial decision for firms based on a variety of factors, including the local law and regulation of individual countries, an assessment of profitability or other commercial drivers. The Government does not intervene in these commercial decisions.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many cases have been referred to the Financial Ombudsman Service's independent assessor in the last (a) six months, (b) five years and (c) 20 years; and if he will make an assessment of the adequacy of the service provided by the Financial Ombudsman Service.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
As an independent body, the Financial Ombudsman Service (FOS) is governed by the framework of duties set out in legislation by Parliament. However, the Government believes it is vitally important that the FOS should be accountable for its performance and the quality of its work and will continue to hold it to account. The FOS answers to a board of directors, appointed by the Financial Conduct Authority, and must make a report each year on the discharge of its functions which is required to be laid before Parliament. This ensures Parliament is able to scrutinise the efficiency, effectiveness and economy with which the FOS carries out its functions. Treasury officials also regularly meet with FOS officials to discuss relevant emerging issues.
The FOS commissioned an Independent Review of its service in 2021, which found that the FOS is widely respected and viewed as reaching fair and impartial outcomes in the majority of cases but identified some key areas for improvement. In response to the Independent Review, the FOS published its ‘Action Plan’ which sets out how it will improve its operational effectiveness and its readiness to deal with current and future challenges in the context of a rapidly evolving financial services industry. This includes improvements to its digital capabilities and financial sustainability. The FOS provides regular public updates against its progress to deliver the Action Plan which provide regular opportunities for scrutiny.
In its most recent Annual Report, published in November 2022, the FOS reported that it had reduced its unallocated case backlog from 90,000 to just over 37,000 over financial year 2021-22. The Treasury will continue to monitor the FOS’s delivery of its Action Plan.
The FOS Independent Assessor (IA) is a person appointed by the FOS Board who provides an important opportunity for consumers to bring complaints about the FOS’s conduct or capability. The Independent Assessor is required to take an impartial approach and can make recommendations to the FOS about operational issues such as communication and timeliness.
The IA also provides important scrutiny of the FOS through their annual report which makes broader recommendations to the FOS about how it can improve its service: https://www.financial-ombudsman.org.uk/who-we-are/governance-funding/annual-reports-accounts
The IA’s annual reports provide data on complaint numbers. The reports show that in the past 5 years, the IA reviewed around 2887 complaints. In each of these past 5 years, the number of cases reviewed by the IA represents fewer than 0.4% of all complaints brought to the FOS. Due to reporting system changes, data is not available going back 20 years.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with the Financial Ombudsman Service on levels of customer satisfaction with its service.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
As an independent body, the Financial Ombudsman Service (FOS) is governed by the framework of duties set out in legislation by Parliament. However, the Government believes it is vitally important that the FOS should be accountable for its performance and the quality of its work and will continue to hold it to account. The FOS answers to a board of directors, appointed by the Financial Conduct Authority, and must make a report each year on the discharge of its functions which is required to be laid before Parliament. This ensures Parliament is able to scrutinise the efficiency, effectiveness and economy with which the FOS carries out its functions. Treasury officials also regularly meet with FOS officials to discuss relevant emerging issues.
The FOS commissioned an Independent Review of its service in 2021, which found that the FOS is widely respected and viewed as reaching fair and impartial outcomes in the majority of cases but identified some key areas for improvement. In response to the Independent Review, the FOS published its ‘Action Plan’ which sets out how it will improve its operational effectiveness and its readiness to deal with current and future challenges in the context of a rapidly evolving financial services industry. This includes improvements to its digital capabilities and financial sustainability. The FOS provides regular public updates against its progress to deliver the Action Plan which provide regular opportunities for scrutiny.
In its most recent Annual Report, published in November 2022, the FOS reported that it had reduced its unallocated case backlog from 90,000 to just over 37,000 over financial year 2021-22. The Treasury will continue to monitor the FOS’s delivery of its Action Plan.
The FOS Independent Assessor (IA) is a person appointed by the FOS Board who provides an important opportunity for consumers to bring complaints about the FOS’s conduct or capability. The Independent Assessor is required to take an impartial approach and can make recommendations to the FOS about operational issues such as communication and timeliness.
The IA also provides important scrutiny of the FOS through their annual report which makes broader recommendations to the FOS about how it can improve its service: https://www.financial-ombudsman.org.uk/who-we-are/governance-funding/annual-reports-accounts
The IA’s annual reports provide data on complaint numbers. The reports show that in the past 5 years, the IA reviewed around 2887 complaints. In each of these past 5 years, the number of cases reviewed by the IA represents fewer than 0.4% of all complaints brought to the FOS. Due to reporting system changes, data is not available going back 20 years.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will take steps to commission a survey into public trust in the Financial Ombudsman Service.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
As an independent body, the Financial Ombudsman Service (FOS) is governed by the framework of duties set out in legislation by Parliament. However, the Government believes it is vitally important that the FOS should be accountable for its performance and the quality of its work and will continue to hold it to account. The FOS answers to a board of directors, appointed by the Financial Conduct Authority, and must make a report each year on the discharge of its functions which is required to be laid before Parliament. This ensures Parliament is able to scrutinise the efficiency, effectiveness and economy with which the FOS carries out its functions. Treasury officials also regularly meet with FOS officials to discuss relevant emerging issues.
The FOS commissioned an Independent Review of its service in 2021, which found that the FOS is widely respected and viewed as reaching fair and impartial outcomes in the majority of cases but identified some key areas for improvement. In response to the Independent Review, the FOS published its ‘Action Plan’ which sets out how it will improve its operational effectiveness and its readiness to deal with current and future challenges in the context of a rapidly evolving financial services industry. This includes improvements to its digital capabilities and financial sustainability. The FOS provides regular public updates against its progress to deliver the Action Plan which provide regular opportunities for scrutiny.
In its most recent Annual Report, published in November 2022, the FOS reported that it had reduced its unallocated case backlog from 90,000 to just over 37,000 over financial year 2021-22. The Treasury will continue to monitor the FOS’s delivery of its Action Plan.
The FOS Independent Assessor (IA) is a person appointed by the FOS Board who provides an important opportunity for consumers to bring complaints about the FOS’s conduct or capability. The Independent Assessor is required to take an impartial approach and can make recommendations to the FOS about operational issues such as communication and timeliness.
The IA also provides important scrutiny of the FOS through their annual report which makes broader recommendations to the FOS about how it can improve its service: https://www.financial-ombudsman.org.uk/who-we-are/governance-funding/annual-reports-accounts
The IA’s annual reports provide data on complaint numbers. The reports show that in the past 5 years, the IA reviewed around 2887 complaints. In each of these past 5 years, the number of cases reviewed by the IA represents fewer than 0.4% of all complaints brought to the FOS. Due to reporting system changes, data is not available going back 20 years.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made with Cabinet colleagues of the impact of energy price increases on the hospitality sector; and if he will make an assessment of the potential merits of reducing VAT on that sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The new Energy Bills Discount Scheme (EBDS) provides all eligible businesses and other non-domestic energy users including hospitality, with a discount on high energy bills for 12 months from 1 April 2023 until 31 March 2024.
Wholesale gas prices have now fallen to levels before Putin’s invasion. The new EBDS therefore strikes a balance between supporting businesses for a further 12 months, from April 2023 to March 2024, and limiting taxpayer’s exposure to volatile energy markets. This provides long-term certainty for businesses and reflects how the scale of the challenge has changed since September last year.
Businesses in the retail, hospitality and leisure sectors will also receive a tax cut worth over £2 billion in 2023-2024. Eligible properties will receive 75 per cent off their business rates bill, up to a cap of £110,000 per business with 80 per cent of retail, hospitality and leisure properties seeing their bills falling or staying the same from April 2023.
The Government has been clear that the reduced rate of VAT for tourism and hospitality was a temporary measure designed to support the cash flow and viability of sectors that were severely affected by COVID-19.
The previous VAT relief cost over £8 billion. Reintroducing it would come at a significant further cost, reducing the money available to help fund key spending priorities, including important public services, such as the NHS, education and defence.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the adequacy of the level at which (a) business rates and (b) VAT are set for (i) micro businesses and (ii) small and medium sized enterprises in the hospitality sector.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The recent revaluation of business rates, which came into effect on 1 April 2023, ensures rateable values, and therefore bills, more accurately reflect current market values.
The Government has announced a package worth £13.6 billion over the next five years to support businesses with the revaluation. This includes an increased 75 per cent relief for retail, hospitality and leisure properties, up to a cash cap of £100,000 per business for 2023-2024. This is a tax cut worth over £2 billion for around 230,000 RHL businesses, to support the high street and protect small shops.
Regarding small and microbusinesses in particular, the Government has continued its generous Small Business Rate Relief scheme which means properties with a rateable value below £12,000 (over a third of properties, 720,000) pay no business rates at all, with an additional 76,000 in the taper, with a rateable value below £15,000, benefitting from reduced bills.
The Government recognises that accounting for VAT can be a burden on small businesses. This is why, at £85,000, the UK has a higher VAT registration threshold than any EU Member State and the second highest in the OECD. This keeps the majority of UK businesses out of VAT altogether (3.1 of 5.6 million). Of the 2.5 million businesses that are registered, 1.2 million exceed the threshold, and roughly 1.3 million are registered voluntarily.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the adequacy of the Financial Conduct Authority's regulation of the funeral care plan sector.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. This has ensured that 1.6 million funeral plan customers are, for the first time, protected by compulsory and robust regulation.
The FCA is an operationally independent regulator. As such it must operate within the framework of statutory duties and powers agreed by Parliament and is therefore accountable to Parliament for how it discharges its statutory functions.
There are also a number of mechanisms in the UK’s domestic framework which allow the Treasury to hold the regulators to account. In addition, Ministers and officials meet regularly with the regulators to discuss policy issues and areas of joint work or interest, while recognising the regulators’ operational independence.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Financial Conduct Authority on regulation of the funeral plans sector.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
In January 2021, the government legislated to bring all pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA) from 29 July 2022. This has ensured that 1.6 million funeral plan customers are, for the first time, protected by compulsory and robust regulation.
Throughout this process, the government has worked very closely with the FCA to ensure that the regulation of the sector is proportionate and effective. The government and the FCA continue to engage regularly as we monitor the implementation of regulation in this sector.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the implications for his policies of the report of the all-party parliamentary group on environmental, social, and governance on the UK Green Taxonomy, published in December 2022.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The government is committed to implementing a green taxonomy as part of its sustainable finance agenda.
However, the government is clear that the value of a taxonomy rests on its credibility as a practical and useful tool for investors, companies, consumers and regulators in supporting access to sustainable finance.
The government has been engaging closely with the independent Green Technical Advisory Group and is considering the recommendations which they have recently published. The government has noted the publication of the UK Green Taxonomy report by the APPG on Environmental, Social, and Governance and will consider the views of a variety of stakeholders as it prepares to set out its next steps in the Green Finance Strategy in the coming months.
Asked by: Alexander Stafford (Conservative - Rother Valley)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department will publish the UK's Green Taxonomy.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government is committed to implementing a green taxonomy as part of its sustainable finance agenda.
However, the Government is clear that the value of a taxonomy rests on its credibility as a practical and useful tool for investors, companies, consumers, and regulators in supporting access to sustainable finance.
These are long term matters, and it is important to proceed carefully. Having received advice from the Green Technical Advisory Group, and following stakeholder engagement, the Government believes that there is benefit in reviewing its approach to taxonomy development to maximise the effectiveness of our sustainable finance agenda.
We’ll be setting out next steps in the Green Finance Strategy in the coming months.