Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what discussions they have had with the Northern Ireland Executive on the impact of the Barnett formula on the cost of living in Northern Ireland.
Answered by Lord Agnew of Oulton
The Chief Secretary to the Treasury has regular engagement with the Northern Ireland Executive Finance Minister, most recently on the day of the Autumn Budget and Spending Review 2021.
The Barnett formula is a key part of the arrangements for pooling and sharing risks and resources across the UK. It means that a downturn in one area can be supported by other areas, rather than being dependent on local economic conditions – and a windfall can be shared with other areas.
As a result of SR21, the Northern Ireland Executive will receive an average of £1.6bn per year additional funding on top of an annual baseline of £13.4bn. These are the largest annual block grants, in real terms, of any spending review settlement since the devolution Acts in 1998.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they have taken to tackle the debt crises in low-income countries.
Answered by Lord Agnew of Oulton
The UK recognises the significant debt vulnerabilities faced by many low-income countries, exacerbated by the Covid-19 pandemic. Support for low-income countries, including on debt, has been a key priority of the UK’s G7 Presidency this year and something we have worked closely on with our international partners in the G20.
At the onset of the pandemic the UK, along with the G20 and Paris Club members, agreed the Debt Service Suspension Initiative (DSSI). Under the DSSI, 73 low-income countries are eligible for temporary suspension of debt-service payments to bilateral creditors. The initiative has so far suspended over $10 billion in debt service repayments for over 40 low-income countries. The suspension period, initially agreed until December 2020 has been extended until December 2021.
We have also agreed with our G20 and Paris Club partners a new “Common Framework” for debt treatments. This brings together, for the first time, G20 and Paris Club creditors to coordinate and cooperate in debt treatments for DSSI eligible countries. Under the Common Framework, private creditors will be required to implement debt restructurings on at least as favourable terms as bilateral creditors.
The UK is also at the forefront of G7 initiatives on debt transparency, which is key to ensuring long-term debt sustainability. The UK secured G7 commitments to follow the UK in publishing their creditor portfolios “on a loan-by-loan basis for future direct lending by the end of 2021”. The G7 also urged all other G20 members to do the same.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of changes in the level of house prices on the UK’s economic recovery.
Answered by Lord Agnew of Oulton
HM Treasury does not prepare formal forecasts for house prices or the outlook on the UK economy, which are the responsibility of the independent Office for Budget Responsibility (OBR). In its March forecast, the OBR expects that GDP will grow by 4% in 2021 and return to its pre-Covid peak in 2022. The OBR also forecasts annual house price growth of 5% in 2021.
Further details can be found in the OBR’s latest Economic and Fiscal Outlook published in March 2021: https://obr.uk/download/march-2021-economic-and-fiscal-outlook-executive-summary/
The OBR will publish an updated forecast on 27 October 2021.
The Office for National Statistics (ONS) also publish estimates of house prices in the UK. The latest available data shows that UK average house prices reached £266,000 in June 2021
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what meetings they have had with the British Venture Capital Association on private equity.
Answered by Lord Agnew of Oulton
Ministers and Government officials routinely meet with representatives of various institutions and organisations as part of ongoing policy development and stakeholder engagement. This engagement has included the British Venture Capital Association, amongst others.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made of the impact of the UK–EU Trade and Cooperation Agreement on (1) the value of financial assets, and (2) the number of financial services sector jobs in the UK.
Answered by Lord Agnew of Oulton
The UK-EU Trade and Cooperation Agreement gives legal certainty for financial services firms to the extent set out in both sides’ market access offers and generally in the services chapter and financial services sub-section. The Agreement will benefit financial services firms’ clients and the wider economy in which they operate.
In January, the Governor of the Bank of England stated that between 5,000 and 7,000 jobs had moved due to Brexit. Over a million people are employed in UK financial services. ONS data shows that jobs in financial and insurance activities have increased from 1.27 million in June 2016 at the time of the referendum to 1.45 million in June 2021. We continue to work closely with the Bank of England and Financial Conduct Authority to monitor any relocation of financial services activity from the UK to the EU.
In his Mansion House speech on 1 July, the Chancellor set out the government’s plans to make the UK the world’s most advanced and exciting financial services hub, to create prosperity at home and help the UK project its values on the global stage.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what recent discussions they have had with the Financial Conduct Authority on free access to the UK cash network.
Answered by Lord Agnew of Oulton
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
The Government remains closely engaged with the Financial Conduct Authority (FCA) in developing its cash access proposals, including through the Joint Authorities Cash Strategy Group, which provides a forum for the public bodies to formally co-ordinate respective approaches to access to cash. The Group is chaired by HM Treasury and attended by the Bank of England, Payments Systems Regulator (PSR), and the FCA.
The Government has published a consultation on proposals for protecting access to cash for the long term. The Government proposes that the FCA becomes the lead regulator for oversight of the retail cash system with responsibility for monitoring and enforcing cash access requirements. Under the proposals, the FCA would be responsible for ensuring that facilities provide reasonable access in order to qualify for meeting geographic requirements. The FCA would be expected to take into account factors that reflect existing standards of cash access, including the appropriateness of facilities for vulnerable users, such as costs for end users, security, hours of availability and accessibility.
The consultation is open until 23 September 2021 and is available on the gov.uk website.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of implementing a requirement for banks to regularly publish data on the reimbursement rates of bank transfer scam victims.
Answered by Lord Agnew of Oulton
The Government is committed to tackling fraud and ensuring that victims of Authorised Push Payment (APP) scams are protected.
The Government recognises the work industry has undertaken to date, including the introduction of a voluntary reimbursement Code, which has demonstrably had a beneficial impact. However, the Code, whilst improving matters, comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well is its lack of comprehensive cover across providers.
The Government therefore welcomed the publication of the Payment Systems Regulator’s (PSR) call for views on APP scams in February 2021, which set out various potential measures for reducing APP scams and improving customer outcomes, including new requirements on payment service providers to reimburse APP scam victims and publishing APP scam data. The Government is of the view that the introduction of Faster Payments Service rules setting reimbursement requirements on all scheme participants is the best possible solution to the issue of APP scams; this will ensure the rules underpinning Faster Payments are fit for purpose.
The PSR’s call for views has now closed and the Government is engaging with the PSR and industry on next steps, including considering what further actions may be necessary to make progress on this issue.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what discussions they have had with the finance industry regarding the adoption of the voluntary Contingent Reimbursement Model Code; and what steps they are taking to persuade retail banks to sign up to the Contingent Reimbursement Model Code.
Answered by Lord Agnew of Oulton
The Government is committed to tackling fraud and ensuring that victims of Authorised Push Payment (APP) scams are protected.
The Government recognises the work industry has undertaken to date, including the introduction of a voluntary reimbursement Code, which has demonstrably had a beneficial impact. However, the Code, whilst improving matters, comes with limitations, including disparity in how different payment service providers are interpreting their obligations under it, as well is its lack of comprehensive cover across providers.
The Government therefore welcomed the publication of the Payment Systems Regulator’s (PSR) call for views on APP scams in February 2021, which set out various potential measures for reducing APP scams and improving customer outcomes, including new requirements on payment service providers to reimburse APP scam victims and publishing APP scam data. The Government is of the view that the introduction of Faster Payments Service rules setting reimbursement requirements on all scheme participants is the best possible solution to the issue of APP scams; this will ensure the rules underpinning Faster Payments are fit for purpose.
The PSR’s call for views has now closed and the Government is engaging with the PSR and industry on next steps, including considering what further actions may be necessary to make progress on this issue.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to implement the recommendations made by the Financial Conduct Authority in The Woolard Review - A review of change and innovation in the unsecured credit market, published on 2 February.
Answered by Lord Agnew of Oulton
The Government has welcomed The Woolard Review – A review of change and innovation in the unsecured credit market. The review will contribute to the evidence base to inform the Government’s future decisions in relation to this market.
The review made recommendations to the Financial Conduct Authority (FCA), including many calling for the FCA to work closely with government. The FCA has stated that it supports the recommendations directed to the FCA and will build these recommendations into their forthcoming Business Plan, as one driver of their priorities for 2021-22.
While many of the recommendations are for the FCA and are, as the review acknowledges, longer-term recommendations there was one recommendation relating to Buy-Now-Pay-Later which required urgent Government action.
We have already responded to this recommendation. On 2 February the Government announced it would legislate to regulate interest-free Buy-Now-Pay-Later agreements, and these agreements will be regulated by the FCA. On 17 March, the Government tabled an amendment to the Financial Services Bill to provide the Government with the powers to ensure a proportionate approach to this regulation. The Government will bring forward secondary legislation to bring currently unregulated Buy-Now-Pay-Later products into regulation when Parliamentary time allows. The final approach to regulation will be determined following public consultation.
Asked by: Baroness Ritchie of Downpatrick (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what steps they are taking to ensure the equitable distribution of schemes designed to support businesses during the COVID-19 pandemic.
Answered by Lord Agnew of Oulton
The Government has provided £25 billion in cash grants for businesses. The Department for Business, Energy, and Industrial Strategy has been working closely with local authorities to ensure that these grants are delivered as swiftly as possible and directed towards the businesses that have been most impacted by the pandemic.
This includes the £5 billion of funding allocated at the March Budget for Restart Grants and the discretionary Additional Restrictions Grant fund.
Local authorities received their allocation for the new Restart Grants on 6th April, and we encourage local authorities to pay eligible businesses as soon as possible.
To access the Additional Restrictions Grant top-up, local authorities will have to spend their existing allocation by the end of June. Those which have already done so will receive their top-up payment in the coming weeks.