Oral Answers to Questions

Esther McVey Excerpts

Tuesday 20th May 2025 Commons Chamber

[Emma Reynolds]

As we announced in the spring statement, we are looking for options for ISA reform to ensure that we get the balance right between cash and equities. I can reassure my hon. Friend that we understand that cash savings are a vital tool for people and act as a financial buffer for a rainy day.

[Esther McVey (Tatton) (Con)]

I am sure that the Chancellor subscribes to the basic principle that if the cost of something is put up, we will see less of it. That is why Governments have, over many years, put taxes on things like smoking. Does she accept that the principle also applies to employing people—that the more expensive the Government make employing people, with their jobs tax increasing NICs for employers, the less we will see of that?

[Rachel Reeves]

The Conservative party is a good example of that. The cost of the Conservative party went up, and its number of MPs shrank.

High Street Bank Closures

Esther McVey Excerpts

Wednesday 26th February 2025 Westminster Hall

[Esther McVey (Tatton) (Con)]

The hon. Gentleman is making a powerful speech. We all understand that when a business is struggling, it has to cut costs, but these banks are closing branches despite making billions of pounds of profit. By pulling out of towns and the high street, those banks no longer provide a service for their customers—for the elderly, the disabled and local businesses. Knowing that banks need a licence to operate, does he agree that, to solve this growing problem, there needs to be a condition that, to get that licence, banks need to serve all of their customers and actually remain on the high streets?

[Ian Lavery]

That is absolutely reasonable, is it not?

The decision by Link or the Financial Conduct Authority is basically transactional. It does not really look at the community factors—it looks at a lot of different factors, but those do not count as points toward the overall result or announcement that there will be the go-ahead for additional services. That must change. It must embrace everything that is happening; it cannot be because the banks are leaving, which they have been on pace because of the profit margins. We have to start looking after communities and vulnerable people—the frail, the elderly and the disabled—in places like that and we need to change the regulations.

Family Businesses

Esther McVey Excerpts

Wednesday 26th February 2025 Commons Chamber

[Esther McVey (Tatton) (Con)]

I must say, I am disappointed—as will be business owners up and down the country—that the Chancellor could not find her way into the Chamber today. If she had done, she might have learned a thing or two.

In Tatton, there are family businesses that go back four or five generations. Before the Budget, some were planning to get ready for the next generation—but not now. Some, founded in the 1800s, have told me that their businesses survived two world wars, the Spanish flu, the high tax and economic lunacy of the 1970s, and even the recent covid lockdowns, but the Chancellor’s Budget will be the death of them. They have told me that on their family business gravestone will be written: “RIP. 1830-2026. Reeves’ budget the fatal blow.” Here we have a Chancellor who wanted her legacy to be that she was the first female Chancellor; in fact, her legacy will be as the grim Reeves reaper who fatally killed off family businesses and destroyed enterprise in the UK.

The Labour Government show no sign of understanding business, let alone family businesses that employ 14 million people and add £575 billion to the economy. The family business is a living entity; it needs to be nurtured, and if it is, it will grow and last hundreds of years, to be passed on to the next generation. It has a unique place in the business ecosystem—it serves a special purpose. Even previous Labour Governments knew that. That is why they introduced the business property relief; they knew that it was required. But not this Labour Government—oh no! Now, the death of a family member could spell the death of the family business, too.

The CBI and Family Business UK have warned that the changes to property business relief alone could lead to 125,000 job losses and reduce economic output by £9.4 billion. Businesses must think about how much money they will put aside for those tax changes. With every £1 put into tax, they can invest £1 less in their business, which will stifle the growth of the company. This Labour Government talk about growth, but these measures will only kill it off. The impact is not just from inheritance tax: we have the family farm tax, the increase to employer national insurance contributions and the minimum wage changes. Every single one of those will add a final nail in the coffins of many of our businesses.

[Rebecca Smith]

Does my right hon. Friend agree that the myriad Labour attacks on family businesses will have a huge impact on businesses like Vospers vehicle franchise in my constituency? Founded in 1946, it employs 600 people but faces a £1.4 million increase in national insurance contributions and a future business property relief levy on the next generation, in an industry that has seen a 20% reduction in sales in January alone, following the Government’s so-called growth Budget.

[Esther McVey]

My hon. Friend speaks knowledgably and passionately about the business in her constituency, and she is right. A family business I spoke to said, “We are already working on small profit margins. We do not know how we will cope. The enormity of the changes will change the way we look at our business. What are we going to do? We might have to carve up the business or cut it down. We might end up selling up or we might look for foreign investment, whether we seek that out or they seek us out”. They say that their business will not survive and thrive, and there is no doubt that it will shrink or end.

Another essential point, which other hon. Members have mentioned, is that family businesses are the breeding ground of entrepreneurs. Family members will work of a weekend, be trained up and go into the family business. People talk about love and passion—all those things—but it is that entrepreneurial spirit that this Government will kill, along with jobs in local communities, because family businesses have a special place in the heart of communities.

This Chancellor said that the changes would only impact the wealthiest of businesses—have we not heard that before? The Government said that the farm tax would impact only the wealthiest of farms, that the removal of the winter fuel payment would impact only the wealthiest of pensioners, and that VAT on schools would impact only the wealthiest of people: that is utter nonsense. The Labour party is removed from reality, ideologically driven and blinded by jealousy.

Labour’s raid on family businesses, worth about £500 million by 2030—that is the Treasury’s forecast—will actually lose billions of pounds more. These tax changes are ideologically driven and the Chancellor is killing the geese that lay the golden eggs. There is a vacuum of business know-how and business knowledge among those on the Government Benches. What they are doing to our country is an utter disgrace.

Inheritance Tax Relief: Farms

Esther McVey Excerpts

Monday 10th February 2025 Westminster Hall

[David Mundell]

What will be unacceptable is if the Minister stands up at the end of this debate and gives the same response that he has given in previous debates, having heard the points that his own colleagues have put forward about how damaging and ill thought through this policy proposal has been. I am looking for a change in tone not just from Government Back Benchers, but from the Minister.

[Esther McVey (Tatton) (Con)]

Does my right hon. Friend agree that the Labour leadership is in serious jeopardy of stubbornly painting itself into a corner, when what is needed is pragmatism and for the Labour leadership to listen to the farmers, the public and its own Back Benchers? For today’s debate to mean anything, for Labour Back Benchers to mean anything and for their words not to be cheap, it is time for the leadership to actually listen and find a way to graciously stop this farm food tax.

[David Mundell]

I absolutely agree. Labour MPs have listened to their constituents—that is being reflected back to us today—and now we need the Minister to listen to Labour MPs.

The other point that I want to get on the record is the point made by the right hon. Member for Orkney and Shetland (Mr Carmichael), the Chairman of the Environment, Food and Rural Affairs Committee, about the specific issue of tenanted farming holdings in Scotland. For tenanted farmers to raise the funds required, they would have to give up their whole holding. They might not even be able to. That has clearly not been thought through as part of this exercise.

What people outside want is a debate that changes policy. They want a debate that shows that the Government are listening, have heard what they have to say and will do something about it. I hope that that will be evident in the Minister’s contribution at the end.

Low-income Countries: Debt Cancellation

Esther McVey Excerpts

Thursday 6th February 2025 Westminster Hall

[Bambos Charalambous]

Again, my hon. Friend makes an excellent point. The lack of investment as a result of debt servicing leads to people seeking opportunities that are not available in their own country, so I totally agree with my hon. Friend on that point.

Before I conclude, I thank CAFOD, Christian Aid, Debt Justice, UNICEF and Save the Children for their excellent briefings ahead of this debate, and for their support in relation to debt cancellation. I conclude with these questions for the Minister. Will the Government support my ten-minute rule Bill to prevent private creditors from being able to sue for enforcement in the UK courts for more than has been agreed in relation to debt relief with bilateral and multilateral lenders? Does the Minister agree that there should be comparable treatment for all creditors? Also, do the Government support a public global debt register for transparency? Does the Minister support the reform of the governance of the institutions, such as the IMF, that set the terms and conditions of bail-outs?

The UK has a unique position in being able to use its global reputation to bring about change on the international stage in relation to debt cancellation, as it did 25 years ago. We led the way then, and it is time to do so again. We cannot afford not to. The global south is looking to us for action, and it is time for us to act.

[Esther McVey (in the Chair)]

I remind Members that they should bob if they wish to be called.

--- Later in debate ---

[Bell Ribeiro-Addy]

This is not necessarily a divisive issue. When we ask those who are suffering the most from these matters, we find that they believe that it is difficult to move forward because of some of the wrongs that have been done to them in the past. It is simply about recognition and looking at ways to tackle this issue, and at how we can deliver recompense for the wrong that we have done. It is not about being divisive; it is just about accepting what went wrong and understanding that we have a duty to make it right.

[Esther McVey (in the Chair)]

Order. I remind hon. Members that this debate is about debt cancellation for low-income countries.

[Andrew Rosindell]

I respect the hon. Member’s point, but she did say that we should pay what we owe. All kinds of arguments can be put forward about what we owe, but it is a matter of opinion. Today we should bring unity and look for solutions, rather than making this a political issue. We can achieve more for developing countries if we work together, rather than looking at where things have gone wrong or right in history and at who may owe what, depending on what is going on in the world today. I do not think that will get us very far, so we should move on from that and focus on how we restructure the repayment of debt, and how we can develop a better system globally to deal with this issue, rather than looking too far back into history.

It has been clear to me, right from when I stood for Parliament for the first time, that this issue needs to be addressed. That has been confirmed by the passion that hon. Members have shown in today’s debate. Debt relief deserves serious consideration, and the Opposition recognise that. Unsustainable debt burdens can be huge and significant impediments to economic development and growth, trapping nations in a cycle of poverty. However, I believe that we must approach this matter in a responsible way, with both caution and pragmatism.

If pursued, debt relief must be conditional and tied to a strong policy of fiscal responsibility measures, so I hope the Minister will provide assurances that any recipient countries would be expected to implement sound economic policies, tackle corruption and take steps to prevent future over-borrowing. I do not think the Minister can disagree that without those safeguards, we risk creating a system in which there is financial mismanagement in perpetuity. We should focus on rewarding the expense of responsible governance. Making the hard-pressed British taxpayer foot the bill is not acceptable to most of our constituents, and we need solutions. We need to solve these problems and not see this as a one-way street.

If the United Kingdom taxpayer’s money is involved, I want the Government to tell us how they will ensure that such relief also serves the interests of the British people. During these difficult economic times, we must justify every single penny spent by the Government and always be mindful that it is our constituents’ money, not the Government’s. Debt relief must become not an open-ended commitment, but a strategic tool that strengthens bilateral ties and ensures geopolitical stability.

I hope the Minister can tell us how the Government intend to prioritise sustainable development, and what mechanisms are in place to monitor that. I also hope she will agree that the focus should be not on perpetual aid or blanket debt forgiveness, but on fostering economic self-sufficiency. That is the only sustainable way forward. We must also consider how the United Kingdom can play a meaningful part in helping low-income countries to develop their domestic industries, improve resource management and reduce their reliance on foreign debt. Without those structural changes, would debt relief simply serve as a temporary fix, or would she prefer to have a system that offers a sustainable solution? That is what the Opposition want.

Agricultural and Business Property Relief

Esther McVey Excerpts

Tuesday 14th January 2025 Westminster Hall

[Graham Stuart]

The hon. Lady is absolutely right: that is exactly what they will do. I am sure that it is not the Government’s intent to bolster the big international corporations and hurt the small player who is an embedded part of the community.

So many people I speak to genuinely try and run their farms to be supportive of nature and of local business. Once major corporations are involved, these will not care where they get their supplies from. They will not be focused on that.

[Esther McVey (Tatton) (Con)]

Does my right hon. Friend agree that this brutal change to inheritance tax—let us call it what it is, a family farm tax—will destroy family farms and farming in the UK as we know it? Does it not make nonsense of Labour’s claim to believe in food security for the UK? We need a U-turn straightaway.

The question I am now being asked by my farmers is: did this policy come about because the Government did not know what they were doing and through a lack of knowledge by the Labour party of the farming community? Or will we look back at this and see it for what it is: theft by the state of land from private owners?

[Graham Stuart]

I will come to that point later in my speech.

When that farmland is gone, it will take with it the livelihoods of families who have devoted generations to feeding our nation and will have a permanent negative impact on the nation’s food security.

UK-China Economic and Financial Dialogue

Esther McVey Excerpts

Tuesday 14th January 2025 Commons Chamber

[Rachel Reeves]

My hon. Friend is absolutely right. There have been movements in international markets in the past week or so, and they have been global in nature. In the UK, we must do what we can, which is why I have reiterated today my commitment to the fiscal rules that I set out in the Budget in October. I reiterate that growth is the No. 1 mission of this Government: growth built on stability, which will come through securing the public finances; through investment, including through the national wealth fund and GB Energy; and through reform—of our planning system to make it easier to build in Britain, getting people back to work, and of our pension system. This Government are cracking on after 14 years of failure from the Conservative party.

[Esther McVey (Tatton) (Con)]

Did the Communist party of China tell the Chancellor that she was doing a good job or a bad job of running the UK economy when she was there?

[Rachel Reeves]

I was not seeking assurance from any foreign Government on the performance of this Government. What I was seeking—I achieved this in China—were tangible outputs for British businesses trading overseas, helping to create more good jobs that pay decent wages here in Britain. The Conservative party absolutely failed to do that in 14 years.

Farming and Inheritance Tax

Esther McVey Excerpts

Wednesday 4th December 2024 Commons Chamber

[Esther McVey (Tatton) (Con)]

I rise to join Conservative colleagues in calling on the Labour Government to stop this farm tax. It is a pleasure to follow the hon. Member for Penrith and Solway (Markus Campbell-Savours) and to have heard what he said about those false promises before the general election. Perhaps he, too, wants his Government to think again about what they are doing.

The other week, thousands of farmers took the extraordinary step of coming to Westminster to protest against this misguided policy. Unfortunately, the Government have put their head in the sand and are pursuing this policy. I hope this debate will make them think again and make them listen. I give the Exchequer Secretary 10 out of 10 for appearing in the Chamber today, even though he is a junior Minister at the Treasury—he certainly pulled the short straw by being put on the Front Bench today. I ask Ministers not just to come here, but to listen to what is being said and to really listen to the needs of our farming community.

We have heard a lot today about what British farmers do—they are stewards of the land, guardians of our food security and the backbone of the rural economy—yet the Government show a fundamental lack of understanding of how their policy will affect the industry. They are pushing ahead with it, even though it jeopardises not just farmers’ livelihoods but the very future of our countryside.

The numbers speak for themselves. While the Government claim that only 27% of farms will be affected, the National Farmers Union has warned that 75% of family farms will be affected. If I were in government and I saw the discrepancy between those numbers, I would go back to the drawing board, check the figures and ask why those discrepancies are there, not dig in deeper. I think the curse of this Labour Government and what they will be remembered for is their distinct lack of grasp of detail and of how the economy works, rural and otherwise. [Interruption.] Yes, this Budget has been a disaster of a Budget.

[Dame Caroline Dinenage (Gosport) (Con)]

My right hon. Friend is making excellent points. Does she agree that there is not only a lack of grasp of detail, but an astounding sense of arrogance—an inability to listen to those who know what they are doing, the farmers, and who have the experience and the expertise? There is just a blank inexplicable unwillingness by this Government to listen to the voices of expertise and of experience.

[Esther McVey]

I thank my hon. Friend for bringing that point to the House. This debate allows those on the Labour Benches to say, “Actually, let’s go back to the drawing board. Let’s look at this discrepancy in the numbers.” For all their talk of growth—I return to the Budget—this Government’s policies are delivering the exact opposite of growth, with the change to employer national insurance contributions and the change to rights from day one. They are talking down the economy and crushing growth in the economy, with the forecast being revised to be lower than it was.

Even if the Government do not want to hear this from me, and even if they do not want to hear it from the farmers, I want them to hear it from a Labour-supporting tax expert, Dan Neidle. He has eventually come to the conclusion that Labour’s farm tax is a dog’s dinner of a policy. Originally, Dan had criticised what he saw as “over-the-top coverage” of the impact these tax changes would have, but he says that on closer inspection he has reversed his decision, remarking that these Budget changes would hit

“farmers too hard and tax avoiders too lightly.”

He argues that the policy needs to change. Dan Neidle has said that the Treasury should raise the inheritance tax cap dramatically to around £20 million so

“only the largest and most sophisticated farm businesses become subject to IHT”.

Those on the Labour Benches might not want to listen to me, but I hope they will listen to one of their own tax experts.

[Sam Rushworth]

A moment ago, we heard talk from the Liberal Democrat Benches of a family farm tax and land taxes. It now seems that the right hon. Lady is suggesting we take up Dan Neidle’s suggestion. Will she confirm whether that is the case?

[Esther McVey]

It would be good if Members listened to what I said. I said it is not too late for Labour to reverse this policy; even their own tax advisers are saying, on closer inspection, it needs to be reversed. That is what I am asking those on the Government Benches to do.

We have heard today that farmers are asset-rich, but in reality they are cash poor, and that is the crux of the matter before us today. In the time I have left, I will mention a couple of farmers from my constituency. A seventh-generation farmer told me she was hoping to pass her farm on to the eighth generation, but that now does not seem possible because if they have to sell a proportion of the land, which they will, that will make the whole farm is unviable.

Another farmer of mine, Richard Shepherd, a few years ago built a state-of-the-art cow cubicle shed for their dairy herd, a piece of modern technology he believed would prepare the farm for the challenges of the 21st century, investing in methods to produce high-quality, affordable and nutritious food—the type of innovation this country will come to rely on for food security in the future. However, now, with this change from the Labour Government, he will owe between £600,000 and over £1 million in inheritance tax. He has said that, “Like any other business, we need confidence to invest in our farms. That’s what we wanted to do: we wanted to grow our farm, invest in it, and this will destroy this.”

Richard Barnett, an accountant who works with many farmers in my constituency, has warned of two immediate consequences of these proposed changes. First, there will be an increase in the number of individuals seeking to acquire farmland up to £1 million to mitigate inheritance tax, resulting in a reduction in the amount of tax that the Treasury can expect to generate from this policy, as well as an increase in land prices. Secondly, he expects a consequence of these changes to be that the financial industry will enter the land market with individuals investing up to £1 million in farmland, acquiring it and then we will see farmland being lost—

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I call Callum Anderson.

Oral Answers to Questions

Esther McVey Excerpts

Tuesday 5th September 2023 Commons Chamber

[John Glen]

Yes, I am content with that. I recognise those changes in patterns of behaviour when it comes to the use of public transport, but we also face cost of living challenges. That is why we are working so closely with the Department for Transport to, for example, continue investment in buses over the next two years, and continue to spend £200 million on capping fares to £2 outside London. We must bear in mind, however, that continued investment in transport infrastructure is key to greater connectivity across the United Kingdom and dealing with the economic growth imperative.

[Esther McVey (Tatton) (Con)]

It has been reported over the last couple of days that accommodating HS2 will mean fewer trains between the north and London. One station affected is Wilmslow in my constituency. Does the Minister agree that were that to happen, HS2 would no longer be value for money or good for the north? It would certainly take longer and cost my constituents more.

[John Glen]

HS2 is going to happen. The question is what additional investments across other parts of the rail infrastructure might benefit my right hon. Friend’s constituents additionally and more directly. I set out with the integrated rail plan the £96 billion package to improve rail connections, and many elements of that will have a direct impact on her constituents in Cheshire.

Cryptocurrency Regulation

Esther McVey Excerpts

Wednesday 25th January 2023 Westminster Hall

[Esther McVey (in the Chair)]

I will call Dr Lisa Cameron to move the motion and then call the Minister to respond. As is the convention in 30-minute debates, there will not be an opportunity for the Member in charge to wind up,.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I beg to move,

That this House has considered regulation of cryptocurrency.

It is a pleasure to serve under your chairship today, Ms McVey. As Chair of the crypto and digital assets all-party parliamentary group, I am delighted to be able to raise this important sector of innovation. I thank the Minister for taking the time to respond today.

This is not the first time that cryptoassets have been debated in the House of Commons. Over the last 12 months, there has rightly been increased interest in the growth of the sector from the media and from colleagues in all parties across this House and the House of Lords. I am pleased by the increased interest, particularly in the work that we have been doing to bring ourselves up to speed with the sector. We have found that millions of people in the United Kingdom already own some form of cryptocurrency, yet there has not been as much discussion about it as was needed, particularly in terms of regulation.

Regulators around the world are now racing to develop their own frameworks for crypto. Recently, the European Union developed its markets in cryptoassets regulation—MiCA—and I look forward to hearing more about that with the all-party parliamentary group in the months to come. Whether people voted for Brexit and agree with it or not, it is where we are, and the UK has an opportunity to create its own bespoke regulatory framework for cryptocurrency.

Recent events, such as the collapse of the crypto exchange FTX, have focused minds and highlighted the importance of ensuring that consumer protection is at the heart of everything that we do. My own journey into this space started when a constituent said to me, “Who do I contact in Parliament? I have been following a scam online linked with cryptocurrency.” When I looked into what was happening at that point, there was no all-party parliamentary group on the subject and I was not sure where to direct my constituent, so, leading on from constituents’ concerns, we set one up. It is vital, given what has happened this year, that regulation and a framework are taken forward at pace.

The UK already has a rich legacy and strong track record as a leader in financial services and fintech, so there is huge potential here for economic growth, jobs and skills from the sector. As the mum of a 14-year-old who is choosing her subjects at school, I have been looking at reports on jobs for the future. She thought that, given our family’s history in medicine and pharmacy and so on, I would encourage her to become a doctor, but I said, “Coding is the way ahead for you.” She was shocked by that. Young people are already doing a lot of this in school—it comes very naturally to younger generations.

I have researched the subject and think that the jobs of the future will be placed firmly in science, technology, engineering and maths activity, and in the finance sector, too. In future, digital, health and tech will be across all sectors, and I am enthused by that. It would be good if the Minister and Cabinet colleagues identified the centres of excellence at college and university levels so that young people know where to go, and where the gaps are. That would ensure that we level up opportunities right across the United Kingdom for people who want to have a future in development and innovation in the sector.

We already have some fantastic examples of innovative companies in the UK, not just in London but in Scotland and elsewhere, creating jobs and development opportunities. In terms of international practice, I had the privilege to speak with Alex Bornyakov, Ukraine’s Deputy Minister of Digital Transformation, who told me that cryptocurrency had been essential to Ukraine’s ability to respond to the Russian invasion. It is right that we place consumer protection, regulation and robust regulatory frameworks at the heart of everything that we do, but we should also look to the sector’s potential to solve some of the issues that countries will face and some of the difficulties across the world just now.

It has been almost a year since the Government set out their landmark vision to make the UK a global hub for crypto investment. The Minister will be aware that I have been very supportive of the Government’s vision, and I am keen to work constructively with him to ensure that it becomes a reality. The Government’s announcement is welcome for business, because good actors want regulation. I was not sure about that when I started looking into the sector with the all-party parliamentary group. From media and things I had read, I thought it was very much a wild west, where people did not want structure or regulatory frameworks; but there are many good actors who do want those things, and investors need regulatory frameworks to take forward their work in the sector with confidence. Business certainty supports a fair and transparent market. There must never be a race to the bottom in the UK, and I urge the Government to take forward the regulatory framework at pace, because we need to protect consumers first and foremost in all that we do. Regulatory clarity and business certainty are at the core of that work.

Over the past year members of the all-party parliamentary group have very much been educating ourselves, and I include myself in that. One has to do a lot of reading about the sector to understand acronyms and so on. We spent a lot of time even understanding that, when people spoke about fiat, they were speaking not about a type of car but about money. We have upskilled ourselves, which is a great first step. When I spoke with Members of the Swiss Parliament, they said that they had been on a similar journey; upskilling across their chambers meant that they could engage much more effectively on “what works” legislation.

Over the past year, industry has raised with me a number of barriers, which I will set out to help the Minister and support the work he is taking forward. First, significant delays are still being reported by business operators seeking registration with the Financial Conduct Authority. Will the Minister update us on progress in that area, and on the number of firms that have been granted licences in the UK since the creation of the licensing regime for crypto firms?

We have also heard real frustration about lack of communication. Some companies are not certain about what is required of them; they are being left for months on end with no response to tell them whether anything further is needed, whether their application is in process, or whether they need to take additional steps. I have met with the FCA on a few occasions and learned of their CryptoSprint event last year, which brought together industry and regulators to look at a number of areas, including how to protect consumers and markets while supporting innovation. I felt that that was a real step in the right direction, but could more be done to take this work forward?

Will the Minister update the House on the average FCA processing times for crypto registrations? I fully understand if he is unable to do so today, but it would be helpful if he wrote to me with that information. The FCA reassured me that it was employing more people to work in its department dealing with this specific sector, given the public interest in and engagement with cryptocurrency. It needs that expertise and wants to move forward at a greater pace.

It would also be helpful to know what more the FCA has planned to foster sustained and meaningful engagement with the sector. I have spoken to businesses that have such a bond with the UK—businesses that have been here and that want to set up here, and whose representatives have been to university here and feel that the UK is the place to be. Regrettably, because of the delays and lack of engagement, some have gone to Paris, while others have gone to Zug in Switzerland and elsewhere. That is a great shame if they are good actors and want to support the United Kingdom economy.

The all-party parliamentary group is undertaking an inquiry. We have heard about opportunities for the sector from businesses and regulators, and from those in overseas territories. I have noticed the importance of engagement between Government, regulators and the sector to ensure that the policy developed is practical and fit for purpose. Members of Parliament in Switzerland told us about the value of thinking about the different pillars of the sector—not just finance but research, university development and innovation hubs—and about bringing them all together with companies, regulators and Government to ensure that there are opportunities and a robust framework.

When we talk about the future of cryptocurrency regulation and what it might look like, it is imperative that everybody works together in the same direction to get it right. That has to be the case for consumer protection, which is the reason I became interested in this area in the first place and is at the core of everything that we are trying to do. At times, there has appeared to be a disconnect between the Government’s vision and some of the statements made by the banking industry and so on. How is the Minister pulling that together so that everyone is moving ahead in tandem? Yes, concerns are being raised and addressed as we go, but we need to ensure that people are moving in the same direction, rather than pulling in different directions away from the vision of the UK cryptocurrency hub set out so meaningfully by the Prime Minister.

We need a proportionate approach to regulation that balances risk and ensures high levels of consumer protection, but does not unnecessarily restrict growth or innovation for our future. That should be built on a strong evidence base to ensure that sound decisions are made. I recently heard from a number of economic crime experts at Elliptic, Chainalysis and the Royal United Services Institute; they indicated to our inquiry that crypto-related crime still accounts for quite a small percentage of overall crypto transactions, and that economic crime remains a challenge for financial services as a whole. Cryptocurrency is a part of that, but the focus is not just on that sector.

I have written to the FCA and the Bank of England to get further information. In recent statements, the incoming chair of the FCA has said that crypto platforms are “deliberately evasive”, facilitate money laundering on a large scale and create “massively untoward risk”. The Governor of the Bank of England said that cryptocurrencies are the new frontline in criminal scams and have created an

“opportunity for the downright criminal”.

Of course, these issues must be addressed, but that has to be balanced with the evidence to ensure proportionality. That is why it is even more important that Government regulators and industry come together to move things forward in a way that is meaningful and that everyone can agree on.

Another potential barrier is the recent announcements by leading banks to limit or block cryptocurrency transactions. I have written to them to tease out a little more information. Nationwide, Starling Bank, Santander and Virgin Money are among a number of banks that have announced limits and restrictions on transactions. Starling Bank has claimed that crypto exchanges are

“high risk, and heavily used for criminal purposes”,

which is a real concern. Other banks, such as Revolut and Monzo, are said to be open to crypto and largely positive towards cryptocurrency transactions. Again, the divergence of views within the sector should be grounded in evidence and be addressed in a way that protects consumers and puts them at the heart of what we do.

On the timeline for the Government’s plans, I have been speaking with many members of other Parliaments and businesses that operate internationally, because this is an international issue and hopefully there will be guidance internationally that we can come together on. If we want to harness the UK’s position at the forefront of this industry, we need to move at pace while ensuring that the work we do is robust.

I reassure the Minister that the all-party parliamentary group will continue to advocate for the UK cryptocurrency hub set out in the vision, and work in conjunction with his office. We will be extremely pleased if he updates the House on timescales for the year ahead and how he sees this playing out, so that we can continue to work constructively to support everything he is doing to protect consumers, while harnessing the innovation of cryptocurrency for the future in the United Kingdom.