Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential impact of proposed changes to EU customs arrangements on UK businesses.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
On 17 May 2023, the European Commission proposed a revision of the Union Customs Code. The proposal is still subject to EU internal procedures; therefore, we cannot comment on the final proposal. However, we are following these suggested reforms closely, and continue to engage with the EU and business, particularly on potential impacts for UK businesses
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many complaints the a) Financial Ombudsman Service, b) Financial Conduct Authority and c) Prudential Regulation Authority received about i) the cost of loans to SMEs, ii) debt recovery behaviour by those offering to lend to SMEs and iii) fees charged by lenders when lending to SMEs in each of the last three years for which data is available.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
I refer my honourable friend to the answers I provided on the topic of SME lending on 23 October.
Complaints are the remit of the Financial Ombudsman Service (FOS), which publishes regular data on complaint trends. In its latest quarterly report, it noted that complaints about unaffordable lending had halved, though this figure does not distinguish between household and business credit, and complaint patterns can fluctuate each quarter. Over the past five years, credit card complaints have consistently ranked among the top five issues, while business lending has generated relatively few FOS disputes compared to personal and household credit.
The Bank of England’s ‘Bankstats’ data tracks business and household credit, including average interest rates for SMEs. As of 31 August 2025, the average rate for new SME loans from UK banks is 6.35%, reflecting a decline in line with base rate reductions.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had discussions with the Secretary of State for Business and Trade on the cost of business loans offered by IWOCA.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
I refer my honourable friend to the answers I provided on the topic of SME lending on 23 October, and more recently in relation to the rate of short-term lending to small and medium sized businesses in the UK.
Interest rates, including those offered by individual providers, are a commercial matter decided by the lender concerned, reflecting the base rate, the risk of the applicant, and a margin to make the loan commercially viable given the cost of underwriting and broader funding costs. The Government does not intervene in commercial decisions, and SMEs should should shop around to find the product that best suits their needs when choosing finance, which in turn helps drives competition, improves choice, and may support pricing.
More widely, case complaints are a matter for the Financial Ombudsman Service rather than the Government, where the Treasury receives correspondence across a wide variety of subjects including financial services. While we are not able to measure the number of complaints the department receives in relation to high-cost credit for business loans (or in relation to an individual provider), the volume of correspondence on the cost of credit in relation to business loans, is generally low.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many complaints her Department has received on the cost of loans offered by IWOCA to small and medium sized businesses.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
I refer my honourable friend to the answers I provided on the topic of SME lending on 23 October, and more recently in relation to the rate of short-term lending to small and medium sized businesses in the UK.
Interest rates, including those offered by individual providers, are a commercial matter decided by the lender concerned, reflecting the base rate, the risk of the applicant, and a margin to make the loan commercially viable given the cost of underwriting and broader funding costs. The Government does not intervene in commercial decisions, and SMEs should should shop around to find the product that best suits their needs when choosing finance, which in turn helps drives competition, improves choice, and may support pricing.
More widely, case complaints are a matter for the Financial Ombudsman Service rather than the Government, where the Treasury receives correspondence across a wide variety of subjects including financial services. While we are not able to measure the number of complaints the department receives in relation to high-cost credit for business loans (or in relation to an individual provider), the volume of correspondence on the cost of credit in relation to business loans, is generally low.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will meet with representatives of the UK chemical industry to discuss an estimate of the potential cost of being out of the Single Market.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Government Ministers regularly meet with businesses and business representation organisations from a range of sectors, including the chemical sector. They remain open to further engagement with the sector including on ways to bolster growth, trade and investment.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information her Department holds on the highest rate of short-term lending to small and medium sized businesses in the UK.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Interest rates are a commercial matter decided by lenders, reflecting the base rate, the risk of the applicant, and a margin to make the loan commercially viable given the cost of underwriting and broader funding costs. Rates vary across the market and even significantly within the SME sector – dependent on the trading history, credit position, security, and other factors of the individual business applicant.
The UK also benefits from a broad lending market, enabling a diverse range of finance providers to facilitate access to finance for a wide range of SMEs. SMEs should shop around to find the product that best suits their needs when choosing finance.
The Bank of England’s ‘bankstats’ data provides insights into business and household credit, including the effective interest rates for SMEs on new and outstanding loans. The monthly average of UK resident banks’ sterling weighted loans for new advances to SMEs now stands at 6.35%, as of 31st August 2025, a figure that has tracked down as the base rate has fallen.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to update (a) the Consumer Insurance (Disclosure and Representations) Act 2012 and (b) the Insurance Act 2015 to strengthen statutory consumer protections in the insurance market.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
On 23 September 2025 Which? made a supercomplaint to the Financial Conduct Authority (FCA) that makes recommendations on relevant matters, including that the FCA and Government should review consumer protection legislation in insurance. The FCA and the Government are considering the issues raised. The FCA will respond to the supercomplaint in due course.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she will conduct a post-legislative review of (a) the Consumer Insurance (Disclosure and Representations) Act 2012 and (b) the Insurance Act 2015.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
On 23 September 2025 Which? made a supercomplaint to the Financial Conduct Authority (FCA) that makes recommendations on relevant matters, including that the FCA and Government should review consumer protection legislation in insurance. The FCA and the Government are considering the issues raised. The FCA will respond to the supercomplaint in due course.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to extend eligibility to Help to Save to people of pension age and in receipt of (a) carers allowance, (b) pension credit and (c) housing benefit after 2027.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Help to Save scheme supports financial resilience for working people on low incomes by encouraging consistent, long-term saving and helping them build a financial buffer to plan and prepare for the future.
In April 2025, the government widened the eligibility criteria for the Help to Save scheme to all Universal Credit claimants in work, rather than only those earning above a specified threshold. This expansion means around 550,000 additional people can benefit from the scheme, increasing the eligible population to approximately 3 million.
The government recognises that further groups may also benefit from Help to Save. Any future changes would need to be carefully assessed to ensure the scheme continues to be well targeted and deliverable.
The government has recently consulted on reforms to the delivery of Help to Save after 2027 and we continue to engage with a range of third-party financial institutions, including credit unions, as part of this process.
Asked by: Gareth Thomas (Labour (Co-op) - Harrow West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether credit unions will be allowed to offer Help to Save accounts from 2027.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
The Help to Save scheme supports financial resilience for working people on low incomes by encouraging consistent, long-term saving and helping them build a financial buffer to plan and prepare for the future.
In April 2025, the government widened the eligibility criteria for the Help to Save scheme to all Universal Credit claimants in work, rather than only those earning above a specified threshold. This expansion means around 550,000 additional people can benefit from the scheme, increasing the eligible population to approximately 3 million.
The government recognises that further groups may also benefit from Help to Save. Any future changes would need to be carefully assessed to ensure the scheme continues to be well targeted and deliverable.
The government has recently consulted on reforms to the delivery of Help to Save after 2027 and we continue to engage with a range of third-party financial institutions, including credit unions, as part of this process.