Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 11 July 2023 to Question 192919 on NHS: Wales, how much of the £2.4 billion in funding for the NHS Long Term Workforce Plan will be allocated to the (a) 2024-25, b) 2025-26, (c) 2026-27, d) 2027-28 and e) 2028-29 financial years.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In line with normal processes, further detail on the funding being provided by the UK Government in relation to the NHS Long Term Workforce Plan will be confirmed at the next fiscal event.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much his Department allocated for public sector pay increases in the Spending Review 2021 for the next three financial years; and how much has been allocated to the Welsh Government in Barnett formula consequential funding in the same period.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Autumn Budget and Spending Review 2021 (SR21) set departmental budgets up to 2024-25 and confirmed that total departmental spending will increase by £150 billion in cash terms over the course of this Parliament. Since then, targeted additional funding was provided to support key public services continue to deliver – including £14 billion for health and social care and £4.6 billion for schools across the next two years. This means that total departmental spending will grow in real terms at 4% a year on average over this Spending Review period.
It is for individual departments to weigh up their priorities and consider the affordability of these recommendations against other priorities.
The Government confirmed on 13 July that it will be accepting the headline pay recommendations of the independent Pay Review Bodies in full for 2023/24. This will be funded from within existing department budgets through a combination of greater efficiency and reprioritisation. This will not mean any cuts in frontline services.
It is for the Welsh Government to decide how to allocate their funding in devolved areas. SR21 set the largest annual block grants, in real terms, of any spending review settlement since the devolution Acts. This provided £18 billion per year for the Welsh Government. That settlement is still growing in real terms over the three-year spending review period, despite inflation being higher than expected.
A full breakdown of changes to devolved administrations’ block grants, including Barnett consequentials, is set out in the published Block Grant Transparency document. An updated version of Block Grant Transparency will be published on 20 July.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether any costs will be associated with accessing the proposed Central Bank Digital Currency; and if he will make a statement.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury and the Bank of England judge that a UK central bank digital currency (CBDC), the “digital pound”, is likely to be needed in the future. However, a final decision on its introduction has not yet been made and will be informed by public consultation and future work.
On 7 February 2023, HM Treasury and the Bank of England published a joint consultation paper setting out analysis on the case for the digital pound and consulting on the key features of a potential model. The consultation closed on 30 June, and we are now assessing the responses. We are committed to being transparent about the views and issues raised by respondents and we will publish a consultation response publication in due course.
As we enter the design phase of work following the closure of the consultation, HM Treasury and the Bank of England will continue to engage with a wide range of stakeholders across the United Kingdom, including with civil society groups and consumer representatives, on the digital pound proposal and as part of our efforts to have an open and national conversation about the future of our money.
The CBDC Engagement Forum consists of senior stakeholders from industry, civil society including consumer groups, and academia to gather strategic input on policy considerations and functional requirements pertaining to the digital pound. The Forum will continue to play an important role in the design phase, helping the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a digital pound. The Technology Forum engages stakeholders and gathers input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives. The Forum helps the Bank to understand the technological challenges of designing, implementing and operating a digital pound. The membership of these Forums is available on the Bank of England website.
The digital pound would sit alongside cash, not replace cash, and would be subject to rigorous standards of privacy and data protection. UK authorities remain committed to protecting access to cash. In recognition that cash continues to be relied on and used by many people, including vulnerable groups and the elderly, the Government has legislated to protect access to cash across the UK as part of the Financial Services and Markets Act 2023. The Act establishes the Financial Conduct Authority as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
Regarding costs associated with the digital pound, further work will be undertaken through the design phase to evaluate the commercial proposition. The digital pound would be widely accessible to the public, and exist alongside and be easily exchangeable with cash and bank deposits. We would therefore expect there to be no additional costs to consumers accessing a digital pound compared to existing payment methods.
Financial inclusion will continue to be an important consideration for HM Treasury and the Bank as the next phase of work on the digital pound begins. We have consulted and will continue to engage with a wide range of organisations, including those representing vulnerable groups, in order to get their feedback on the proposal. We understand that not everyone has access to a stable internet connection or smartphone, or that some people may find smartphones difficult to use. We are therefore looking at how the digital pound could be delivered through options such as physical cards, in a way that would help to support financial inclusion and accessibility. We will also continue to explore options for offline payments.
The Government’s ambition is to connect at least 85% of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030. Project Gigabit is the government’s £5bn programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. The Government is also ensuring that very hard to reach areas will have access to improved broadband, even where gigabit is not possible, with an £8m fund for new satellite connectivity connecting 35,000 of the most remote premises.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to help ensure that the (a) the Welsh Government and (b) stakeholders representing those who rely on access to cash are engaged through the (i) Central Bank Digital Taskforce, (ii) the Central Bank Digital Currency Engagement Forum and (iii) The Central Bank Digital Currency technology forum on issues relating to a Central Bank Digital Currency.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury and the Bank of England judge that a UK central bank digital currency (CBDC), the “digital pound”, is likely to be needed in the future. However, a final decision on its introduction has not yet been made and will be informed by public consultation and future work.
On 7 February 2023, HM Treasury and the Bank of England published a joint consultation paper setting out analysis on the case for the digital pound and consulting on the key features of a potential model. The consultation closed on 30 June, and we are now assessing the responses. We are committed to being transparent about the views and issues raised by respondents and we will publish a consultation response publication in due course.
As we enter the design phase of work following the closure of the consultation, HM Treasury and the Bank of England will continue to engage with a wide range of stakeholders across the United Kingdom, including with civil society groups and consumer representatives, on the digital pound proposal and as part of our efforts to have an open and national conversation about the future of our money.
The CBDC Engagement Forum consists of senior stakeholders from industry, civil society including consumer groups, and academia to gather strategic input on policy considerations and functional requirements pertaining to the digital pound. The Forum will continue to play an important role in the design phase, helping the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a digital pound. The Technology Forum engages stakeholders and gathers input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives. The Forum helps the Bank to understand the technological challenges of designing, implementing and operating a digital pound. The membership of these Forums is available on the Bank of England website.
The digital pound would sit alongside cash, not replace cash, and would be subject to rigorous standards of privacy and data protection. UK authorities remain committed to protecting access to cash. In recognition that cash continues to be relied on and used by many people, including vulnerable groups and the elderly, the Government has legislated to protect access to cash across the UK as part of the Financial Services and Markets Act 2023. The Act establishes the Financial Conduct Authority as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
Regarding costs associated with the digital pound, further work will be undertaken through the design phase to evaluate the commercial proposition. The digital pound would be widely accessible to the public, and exist alongside and be easily exchangeable with cash and bank deposits. We would therefore expect there to be no additional costs to consumers accessing a digital pound compared to existing payment methods.
Financial inclusion will continue to be an important consideration for HM Treasury and the Bank as the next phase of work on the digital pound begins. We have consulted and will continue to engage with a wide range of organisations, including those representing vulnerable groups, in order to get their feedback on the proposal. We understand that not everyone has access to a stable internet connection or smartphone, or that some people may find smartphones difficult to use. We are therefore looking at how the digital pound could be delivered through options such as physical cards, in a way that would help to support financial inclusion and accessibility. We will also continue to explore options for offline payments.
The Government’s ambition is to connect at least 85% of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030. Project Gigabit is the government’s £5bn programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. The Government is also ensuring that very hard to reach areas will have access to improved broadband, even where gigabit is not possible, with an £8m fund for new satellite connectivity connecting 35,000 of the most remote premises.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with his counterparts in the Welsh Government on the potential implications of a Central Bank Digital Currency on Welsh citizens in the context of (a) areas with poor digital connectivity and (b) Wales’ age demographics.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury and the Bank of England judge that a UK central bank digital currency (CBDC), the “digital pound”, is likely to be needed in the future. However, a final decision on its introduction has not yet been made and will be informed by public consultation and future work.
On 7 February 2023, HM Treasury and the Bank of England published a joint consultation paper setting out analysis on the case for the digital pound and consulting on the key features of a potential model. The consultation closed on 30 June, and we are now assessing the responses. We are committed to being transparent about the views and issues raised by respondents and we will publish a consultation response publication in due course.
As we enter the design phase of work following the closure of the consultation, HM Treasury and the Bank of England will continue to engage with a wide range of stakeholders across the United Kingdom, including with civil society groups and consumer representatives, on the digital pound proposal and as part of our efforts to have an open and national conversation about the future of our money.
The CBDC Engagement Forum consists of senior stakeholders from industry, civil society including consumer groups, and academia to gather strategic input on policy considerations and functional requirements pertaining to the digital pound. The Forum will continue to play an important role in the design phase, helping the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a digital pound. The Technology Forum engages stakeholders and gathers input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives. The Forum helps the Bank to understand the technological challenges of designing, implementing and operating a digital pound. The membership of these Forums is available on the Bank of England website.
The digital pound would sit alongside cash, not replace cash, and would be subject to rigorous standards of privacy and data protection. UK authorities remain committed to protecting access to cash. In recognition that cash continues to be relied on and used by many people, including vulnerable groups and the elderly, the Government has legislated to protect access to cash across the UK as part of the Financial Services and Markets Act 2023. The Act establishes the Financial Conduct Authority as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
Regarding costs associated with the digital pound, further work will be undertaken through the design phase to evaluate the commercial proposition. The digital pound would be widely accessible to the public, and exist alongside and be easily exchangeable with cash and bank deposits. We would therefore expect there to be no additional costs to consumers accessing a digital pound compared to existing payment methods.
Financial inclusion will continue to be an important consideration for HM Treasury and the Bank as the next phase of work on the digital pound begins. We have consulted and will continue to engage with a wide range of organisations, including those representing vulnerable groups, in order to get their feedback on the proposal. We understand that not everyone has access to a stable internet connection or smartphone, or that some people may find smartphones difficult to use. We are therefore looking at how the digital pound could be delivered through options such as physical cards, in a way that would help to support financial inclusion and accessibility. We will also continue to explore options for offline payments.
The Government’s ambition is to connect at least 85% of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030. Project Gigabit is the government’s £5bn programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. The Government is also ensuring that very hard to reach areas will have access to improved broadband, even where gigabit is not possible, with an £8m fund for new satellite connectivity connecting 35,000 of the most remote premises.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy that a Central Bank Digital Currency will not be rolled out until all (a) households and (b) businesses in Wales have the ability to access a stable internet connection.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury and the Bank of England judge that a UK central bank digital currency (CBDC), the “digital pound”, is likely to be needed in the future. However, a final decision on its introduction has not yet been made and will be informed by public consultation and future work.
On 7 February 2023, HM Treasury and the Bank of England published a joint consultation paper setting out analysis on the case for the digital pound and consulting on the key features of a potential model. The consultation closed on 30 June, and we are now assessing the responses. We are committed to being transparent about the views and issues raised by respondents and we will publish a consultation response publication in due course.
As we enter the design phase of work following the closure of the consultation, HM Treasury and the Bank of England will continue to engage with a wide range of stakeholders across the United Kingdom, including with civil society groups and consumer representatives, on the digital pound proposal and as part of our efforts to have an open and national conversation about the future of our money.
The CBDC Engagement Forum consists of senior stakeholders from industry, civil society including consumer groups, and academia to gather strategic input on policy considerations and functional requirements pertaining to the digital pound. The Forum will continue to play an important role in the design phase, helping the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a digital pound. The Technology Forum engages stakeholders and gathers input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives. The Forum helps the Bank to understand the technological challenges of designing, implementing and operating a digital pound. The membership of these Forums is available on the Bank of England website.
The digital pound would sit alongside cash, not replace cash, and would be subject to rigorous standards of privacy and data protection. UK authorities remain committed to protecting access to cash. In recognition that cash continues to be relied on and used by many people, including vulnerable groups and the elderly, the Government has legislated to protect access to cash across the UK as part of the Financial Services and Markets Act 2023. The Act establishes the Financial Conduct Authority as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
Regarding costs associated with the digital pound, further work will be undertaken through the design phase to evaluate the commercial proposition. The digital pound would be widely accessible to the public, and exist alongside and be easily exchangeable with cash and bank deposits. We would therefore expect there to be no additional costs to consumers accessing a digital pound compared to existing payment methods.
Financial inclusion will continue to be an important consideration for HM Treasury and the Bank as the next phase of work on the digital pound begins. We have consulted and will continue to engage with a wide range of organisations, including those representing vulnerable groups, in order to get their feedback on the proposal. We understand that not everyone has access to a stable internet connection or smartphone, or that some people may find smartphones difficult to use. We are therefore looking at how the digital pound could be delivered through options such as physical cards, in a way that would help to support financial inclusion and accessibility. We will also continue to explore options for offline payments.
The Government’s ambition is to connect at least 85% of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030. Project Gigabit is the government’s £5bn programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. The Government is also ensuring that very hard to reach areas will have access to improved broadband, even where gigabit is not possible, with an £8m fund for new satellite connectivity connecting 35,000 of the most remote premises.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking ensure that stakeholders who (a) rely on cash and (b) choose to use cash are engaged in the next steps following the publication of the Government’s response to the consultation on the digital pound.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury and the Bank of England judge that a UK central bank digital currency (CBDC), the “digital pound”, is likely to be needed in the future. However, a final decision on its introduction has not yet been made and will be informed by public consultation and future work.
On 7 February 2023, HM Treasury and the Bank of England published a joint consultation paper setting out analysis on the case for the digital pound and consulting on the key features of a potential model. The consultation closed on 30 June, and we are now assessing the responses. We are committed to being transparent about the views and issues raised by respondents and we will publish a consultation response publication in due course.
As we enter the design phase of work following the closure of the consultation, HM Treasury and the Bank of England will continue to engage with a wide range of stakeholders across the United Kingdom, including with civil society groups and consumer representatives, on the digital pound proposal and as part of our efforts to have an open and national conversation about the future of our money.
The CBDC Engagement Forum consists of senior stakeholders from industry, civil society including consumer groups, and academia to gather strategic input on policy considerations and functional requirements pertaining to the digital pound. The Forum will continue to play an important role in the design phase, helping the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a digital pound. The Technology Forum engages stakeholders and gathers input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives. The Forum helps the Bank to understand the technological challenges of designing, implementing and operating a digital pound. The membership of these Forums is available on the Bank of England website.
The digital pound would sit alongside cash, not replace cash, and would be subject to rigorous standards of privacy and data protection. UK authorities remain committed to protecting access to cash. In recognition that cash continues to be relied on and used by many people, including vulnerable groups and the elderly, the Government has legislated to protect access to cash across the UK as part of the Financial Services and Markets Act 2023. The Act establishes the Financial Conduct Authority as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
Regarding costs associated with the digital pound, further work will be undertaken through the design phase to evaluate the commercial proposition. The digital pound would be widely accessible to the public, and exist alongside and be easily exchangeable with cash and bank deposits. We would therefore expect there to be no additional costs to consumers accessing a digital pound compared to existing payment methods.
Financial inclusion will continue to be an important consideration for HM Treasury and the Bank as the next phase of work on the digital pound begins. We have consulted and will continue to engage with a wide range of organisations, including those representing vulnerable groups, in order to get their feedback on the proposal. We understand that not everyone has access to a stable internet connection or smartphone, or that some people may find smartphones difficult to use. We are therefore looking at how the digital pound could be delivered through options such as physical cards, in a way that would help to support financial inclusion and accessibility. We will also continue to explore options for offline payments.
The Government’s ambition is to connect at least 85% of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030. Project Gigabit is the government’s £5bn programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. The Government is also ensuring that very hard to reach areas will have access to improved broadband, even where gigabit is not possible, with an £8m fund for new satellite connectivity connecting 35,000 of the most remote premises.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure the introduction of a Central Bank Digital Currency will be complementary to the cash infrastructure.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury and the Bank of England judge that a UK central bank digital currency (CBDC), the “digital pound”, is likely to be needed in the future. However, a final decision on its introduction has not yet been made and will be informed by public consultation and future work.
On 7 February 2023, HM Treasury and the Bank of England published a joint consultation paper setting out analysis on the case for the digital pound and consulting on the key features of a potential model. The consultation closed on 30 June, and we are now assessing the responses. We are committed to being transparent about the views and issues raised by respondents and we will publish a consultation response publication in due course.
As we enter the design phase of work following the closure of the consultation, HM Treasury and the Bank of England will continue to engage with a wide range of stakeholders across the United Kingdom, including with civil society groups and consumer representatives, on the digital pound proposal and as part of our efforts to have an open and national conversation about the future of our money.
The CBDC Engagement Forum consists of senior stakeholders from industry, civil society including consumer groups, and academia to gather strategic input on policy considerations and functional requirements pertaining to the digital pound. The Forum will continue to play an important role in the design phase, helping the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a digital pound. The Technology Forum engages stakeholders and gathers input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives. The Forum helps the Bank to understand the technological challenges of designing, implementing and operating a digital pound. The membership of these Forums is available on the Bank of England website.
The digital pound would sit alongside cash, not replace cash, and would be subject to rigorous standards of privacy and data protection. UK authorities remain committed to protecting access to cash. In recognition that cash continues to be relied on and used by many people, including vulnerable groups and the elderly, the Government has legislated to protect access to cash across the UK as part of the Financial Services and Markets Act 2023. The Act establishes the Financial Conduct Authority as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
Regarding costs associated with the digital pound, further work will be undertaken through the design phase to evaluate the commercial proposition. The digital pound would be widely accessible to the public, and exist alongside and be easily exchangeable with cash and bank deposits. We would therefore expect there to be no additional costs to consumers accessing a digital pound compared to existing payment methods.
Financial inclusion will continue to be an important consideration for HM Treasury and the Bank as the next phase of work on the digital pound begins. We have consulted and will continue to engage with a wide range of organisations, including those representing vulnerable groups, in order to get their feedback on the proposal. We understand that not everyone has access to a stable internet connection or smartphone, or that some people may find smartphones difficult to use. We are therefore looking at how the digital pound could be delivered through options such as physical cards, in a way that would help to support financial inclusion and accessibility. We will also continue to explore options for offline payments.
The Government’s ambition is to connect at least 85% of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030. Project Gigabit is the government’s £5bn programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. The Government is also ensuring that very hard to reach areas will have access to improved broadband, even where gigabit is not possible, with an £8m fund for new satellite connectivity connecting 35,000 of the most remote premises.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when he expects to publish the findings of the consultation on the digital pound.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
HM Treasury and the Bank of England judge that a UK central bank digital currency (CBDC), the “digital pound”, is likely to be needed in the future. However, a final decision on its introduction has not yet been made and will be informed by public consultation and future work.
On 7 February 2023, HM Treasury and the Bank of England published a joint consultation paper setting out analysis on the case for the digital pound and consulting on the key features of a potential model. The consultation closed on 30 June, and we are now assessing the responses. We are committed to being transparent about the views and issues raised by respondents and we will publish a consultation response publication in due course.
As we enter the design phase of work following the closure of the consultation, HM Treasury and the Bank of England will continue to engage with a wide range of stakeholders across the United Kingdom, including with civil society groups and consumer representatives, on the digital pound proposal and as part of our efforts to have an open and national conversation about the future of our money.
The CBDC Engagement Forum consists of senior stakeholders from industry, civil society including consumer groups, and academia to gather strategic input on policy considerations and functional requirements pertaining to the digital pound. The Forum will continue to play an important role in the design phase, helping the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a digital pound. The Technology Forum engages stakeholders and gathers input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives. The Forum helps the Bank to understand the technological challenges of designing, implementing and operating a digital pound. The membership of these Forums is available on the Bank of England website.
The digital pound would sit alongside cash, not replace cash, and would be subject to rigorous standards of privacy and data protection. UK authorities remain committed to protecting access to cash. In recognition that cash continues to be relied on and used by many people, including vulnerable groups and the elderly, the Government has legislated to protect access to cash across the UK as part of the Financial Services and Markets Act 2023. The Act establishes the Financial Conduct Authority as the lead regulator for access to cash with responsibility and powers to seek to ensure reasonable provision of withdrawal and deposit facilities.
Regarding costs associated with the digital pound, further work will be undertaken through the design phase to evaluate the commercial proposition. The digital pound would be widely accessible to the public, and exist alongside and be easily exchangeable with cash and bank deposits. We would therefore expect there to be no additional costs to consumers accessing a digital pound compared to existing payment methods.
Financial inclusion will continue to be an important consideration for HM Treasury and the Bank as the next phase of work on the digital pound begins. We have consulted and will continue to engage with a wide range of organisations, including those representing vulnerable groups, in order to get their feedback on the proposal. We understand that not everyone has access to a stable internet connection or smartphone, or that some people may find smartphones difficult to use. We are therefore looking at how the digital pound could be delivered through options such as physical cards, in a way that would help to support financial inclusion and accessibility. We will also continue to explore options for offline payments.
The Government’s ambition is to connect at least 85% of UK premises to gigabit-capable broadband by 2025, and for nationwide connectivity (at least 99%) to be realised by 2030. Project Gigabit is the government’s £5bn programme that will ensure the whole of the UK benefits from gigabit connectivity by providing subsidy to deliver gigabit-capable connectivity to uncommercial premises, which are typically in rural or remote locations. The Government is also ensuring that very hard to reach areas will have access to improved broadband, even where gigabit is not possible, with an £8m fund for new satellite connectivity connecting 35,000 of the most remote premises.
Asked by: Ben Lake (Plaid Cymru - Ceredigion)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to uprate the Welsh government’s overall capital borrowing cap in line with inflation.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Welsh Government is well-funded to deliver its devolved responsibilities via the Block Grant, receiving a funding premium of around 20% more per person than equivalent UK Government spending in England.
In addition to its Block Grant funding, the Welsh Government already has access to generous borrowing powers to enhance their capital investment and there remains significant headroom within their overall capital borrowing limit of £1 billion.
These capital borrowing powers sit within a wider Fiscal Framework agreed with the Welsh Government. A review of this framework is triggered if the Welsh Government’s funding premium falls to 15%.