Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that (a) people with mental health difficulties, (b) caring responsibilities, (c) financial hardship and (d) other vulnerable consumers are not disproportionately affected during the motor finance redress process.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. We want to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.
The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.
Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of (a) incomplete and (b) missing lender records dating back to 2007 on the ability of consumers to be (i) identified and (ii) compensated under the car finance redress scheme.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. We want to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.
The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.
Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what sanctions are currently available to the Financial Conduct Authority if lenders fail to meet their obligations under the motor finance redress scheme; and whether the Treasury plans to review the adequacy of those sanctions.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. We want to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.
The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.
Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential challenges of a motor finance redress scheme which does not fully reflect consumers’ actual financial losses.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
It is vital that consumers have access to motor finance to enable them to spread the cost of a vehicle in a way that is manageable and affordable. We want to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.
The Financial Conduct Authority (FCA), as independent regulator, has set out its proposals for a motor finance redress scheme. In its consultation, the FCA has set out how it expects consumers to be appropriately redressed. The FCA also sets out proposals on how firms should support vulnerable consumers, and address any gaps in their records, and what controls should be in place to ensure they operate the scheme in a fair and transparent way.
Throughout the consultation period which closed on December 12, the government has encouraged all stakeholders to fully engage with the process so that their views can be considered by the FCA. The FCA has indicated it will finalise the rules of the scheme in February or March 2026.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans she has to facilitate discussions between Post Office and the major banks on expanding in-person banking services at post offices.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Government recognises the importance of access to cash and banking services for businesses and individuals, including those who may be in vulnerable groups or require assistance and is supportive of industry initiatives that improve access to these vital services.
The Post Office plays a key role in supporting access to banking services. Under the Banking Framework, a commercial agreement between the Post Office and 30 banking firms, personal and business customers can withdraw and deposit cash, check their balance, pay bills and cash cheques at 11,500 Post Office branches across the UK. The specific services provided under the Framework are subject to commercial negotiations between individual banks and the Post Office, and the Government has no role in deciding what these arrangements are.
The Government would welcome continued collaboration between Post Office and the banking sector, on a commercial basis and will look to host joint discussions with Post Office and the banking sector in the coming months.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the effectiveness of HMRC in enforcing the agency regulations when collecting PAYE tax from agencies.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
Agencies must deduct Income Tax and National Insurance Contributions (NICs) at source from payments of earnings to agency workers. HMRC’s processes for collecting any Income Tax and NICs due from agencies under Pay As You Earn (PAYE) are the same as those for other employers.
Where HMRC finds that a UK agency has failed to account for Income Tax and NICs in circumstances where the agency rules apply to them, it will usually seek to recover unpaid amounts due from them. Whether the agency rules apply in a particular case is dependent on the facts of that case.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of business rates on small businesses.
Answered by Jesse Norman - Shadow Leader of the House of Commons
Business rates are an important source of funding for key local services such as adult social care and children’s services.
Small businesses may be eligible for Small Business Rate Relief (SBRR). Properties with a rateable value of £12,000 or less will pay no business rates under SBRR. For properties with a rateable value above £12,000 and less than £15,000, the SBRR will taper from 100% relief to 0%. Under SBRR, over 700,000 businesses pay no business rates.
Small businesses in the retail, hospitality and leisure sector may also be eligible for the three month extension to the business rates holiday provided at Budget 2020.
The fundamental review of business rates is considering all parts of the business rates system, including support for small businesses.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many businesses HMRC has taken action against for not passing on Coronavirus Job Retention Scheme support to employees.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The Coronavirus Job Retention Scheme (CJRS) is a grant paid to employers so they can pay employees while they are furloughed.
HMRC have over 6,000 employers under investigation, for a range of reasons, including not paying employees, making inflated claims, or making claims even though employees are still working. Within a single case there is often a number of reasons why HMRC are taking action.
However, apart from the enforcement of National Minimum Wage, HMRC do not have a role in regulating the relationship between employers and employees. If the CJRS grant has not been passed on to employees, HMRC have no legal authority to enforce payment but take action to recover the grant for which the employer is not eligible.
Employees can contact ACAS if they have concerns that they have not been able to resolve with their employer. Since February, HMRC have been publishing details of employers who have claimed a CJRS grant and have been informing employees of that claim via their personal tax account.
Employees who have concerns that they have been furloughed but have not been paid (or have been asked to work) can contact HMRC. Details can be found on GOV.UK.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect of the removal of business rates relief on independent retailers.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The unprecedented full business rates holiday for eligible retail, hospitality and leisure properties for the financial year is worth about £10 billion to business in 2020-21. The Government will continue to look at how to adjust its support in a way that ensures people can get back to work, protecting both the UK economy and the livelihoods of people across the country. The Government is considering options for reliefs for 2021-22 and will outline the next round of COVID-19 support measures at Budget.
Asked by: Bambos Charalambous (Labour - Southgate and Wood Green)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the stamp duty deadline in response to delays in completions resulting from the covid-19 outbreak.
Answered by Jesse Norman - Shadow Leader of the House of Commons
The temporary SDLT relief was designed to stimulate immediate momentum in a property market where property transactions fell by as much as 50 per cent during the COVID-19 lockdown in March. This will also support the jobs of people whose employment relies on custom from the property industry, such as retailers and tradespeople.
The Government will continue to monitor the market. However, as the relief was designed to provide an immediate stimulus to the property market, the Government does not plan to extend this relief.