Financial Services Bill

Debate between Iain Duncan Smith and John Glen

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Wednesday 13th January 2021 Commons Chamber

[John Glen]

It is easy to point to headline differences in rates of fines, but it is quite different to intervene with a new piece of legislation that is fit for purpose. That is why I am absolutely clear that the call for evidence this year will gather that evidence—I am sure that my hon. Friend will be keen to submit his evidence to that—and, in due course, we will look at it and examine what the implications are. However, I am not suggesting from the Dispatch Box that everything is perfect with respect to regulation, and of course, there are regulatory failures from time to time and criminal activity. The question is what the most appropriate legislative response is.

I turn to new clause 14, which would add a requirement for the Government to report on the effect of clause 31 on tax revenues. This does not reflect the effect of the provision that we have included in the Bill. The Bill provision merely ensures the continuation of, and the ability to vary in future, the original powers assigned to Her Majesty’s Revenue and Customs with respect to registration of overseas trusts. It does not make any change to taxes.

Similarly, it is not necessary to introduce a report on the impact on money laundering of clause 31, as proposed by new clause 19. Existing legislation already requires the Treasury to carry out a review of its existing provisions within money-laundering regulations and publish a report setting out the conclusions of its review by June 2022. This wider review will provide a more meaningful evaluation than the one envisaged in the amendment.

Amendment 7 raises a very important issue. This amendment would require the FCA to “have regard” to the promotion of ethical investments with reference to findings of genocide by the High Court and the International Court of Justice when making rules for the investment firm prudential regime. While I am extremely sympathetic to the issue raised by Members on both sides of the House, including the hon. Member for Bethnal Green and Bow (Rushanara Ali) and my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), this Bill is not the right place to address the issue. This amendment would require the FCA to make political choices about whether to associate itself and its rules with countries that are guilty of genocide or ethnic cleansing. These important decisions on UK foreign policy are for Government to take and not an independent financial services regulator.

I will now address a number of amendments that seek to bring new activities—

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

Will the Minister give way?

[John Glen]

I am very happy to—I thought I might provoke an intervention from my right hon. Friend.

[Sir Iain Duncan Smith]

I am glad he gave me time to get this awful mask off.

I understand fully my hon. Friend’s arguments, and I will come to that in a second when I have an opportunity to catch Madam Deputy Speaker’s eye, but on the point he is making, I simply ask him this question: can he conceive that any UK Government would ever authorise trade arrangements on a special basis with any country guilty of genocide?

[John Glen]

My right hon. Friend has raised this matter in the context of his raising it in a number of other regards with respect to the Trade Bill, and it would obviously be appropriate for my ministerial colleagues in that Department to address it in that context. Today, it is my responsibility to deal with it in the context of financial services regulation, as I think I have done, but I do not want to deny the grave significance of the matter that he is raising, and indeed, my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell) has raised it with me, too. Obviously, these are complex matters on which others will respond in due course.

I will now address a number of amendments that seek to bring new activities into FCA regulation. New clause 7 relates to “buy now, pay later” products and would require the Treasury to bring those products and other interest-free credit products into the scope of financial services regulation. Those products can play an important role by providing a lower-cost alternative for people making purchases, especially larger items. As an interest-free credit product, “buy now, pay later” is inherently lower-risk than other forms of borrowing, and can be a useful part of the toolkit for managing personal finances and tackling financial exclusion.

Coronavirus: Employment Support

Debate between Iain Duncan Smith and John Glen

Thursday 19th March 2020 Commons Chamber

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I commend my hon. Friend and I agree with him—that is something that the Government should be moving on now, but there is something else the Government could do literally today. Universal credit has three basic levers that can all be pulled now enormously to help people who are in work. First, the taper could be lowered dramatically at this stage, which would push the floor right up underneath people in work at the moment, allowing them to fall back on that if employers cannot deal with them. Secondly, Ministers could change benefit rates, allowing a greater expanse of money to flow to claimants: that could be done today. The third area where my hon. Friend could act is to look at the waiting time and reduce that almost immediately. Those three things were always built into the system for flexibility and they can be done today. They can be delivered within days by a Department that already has the ability to do that while he gets on with the other facilities.

[John Glen]

I am grateful to my right hon. Friend, who has unrivalled experience in this area. He makes some very reasonable points, and we are looking very carefully at all the options. As I said earlier, when we have decided—very imminently—the Chancellor will make announcements to this House first.

Oral Answers to Questions

Debate between Iain Duncan Smith and John Glen

Monday 14th March 2016 Commons Chamber

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

Our family stability review found that family instability is one of the main drivers of poverty, with unstable families more likely to have low incomes. That is why support for families is firmly at the heart of what we are doing in Government, such as doubling the funding for relationship support and doubling the amount of free childcare.

[John Glen]

I welcome the Government’s determination to tackle the root causes of poverty. With respect to the doubling of funding for the relationship support scheme, what steps is the Secretary of State taking to ensure that the scheme can be accessed across the country by those who find it hardest to reach Government support and those who most need it?

[Mr Duncan Smith]

My hon. Friend is absolutely right, and I pay tribute to the huge amount of work he has done in backing this up and supporting it, and to the work he is doing at present to make sure it gets across to everybody. We are clear that any new or extended support that we provide—and we do—will need to be accessible and effective for all families, no matter where they are, with additional, complex needs, and more will be said on that when we bring forward the life chances strategy, to be published this summer. However, I can guarantee to him that it is the No. 1 priority to make sure everybody who needs support gets it.

Child Poverty

Debate between Iain Duncan Smith and John Glen

Thursday 25th June 2015 Commons Chamber

[Mr Duncan Smith]

I welcome the hon. Gentleman to his post. May I say that the latest figures from Scotland show a fall of 40,000 in the number in relative poverty between 2012-13 and 2013-14? Our position is to help the worst-off, to support pensioners through the triple lock and to get all of them into a sustained life of good income.

[John Glen (Salisbury) (Con)]

This week, I attended the launch of Scope’s Extra Costs Commission, which is looking at the barriers faced by disabled people in entering the workplace. May I urge my right hon. Friend to do all he can to continue the Government’s strategy to ensure that more disabled people are able to enter the workplace?

[Mr Duncan Smith]

My hon. Friend makes a powerful point. It is worth reminding hon. Members that, through our Disability Confident programme and the support we are putting in to get more people with disabilities back into work, there are now more people with disabilities in work than ever before. That is still not good enough—the line is still too far below the line for others in work. We want to halve that gap by the end of this Parliament.

Oral Answers to Questions

Debate between Iain Duncan Smith and John Glen

Monday 22nd June 2015 Commons Chamber

[Mr Duncan Smith]

We are already talking to many social landlords, who have agreed with us that the improvements we have made are dramatic and helpful, but I am very happy to meet anybody the hon. Lady wants to bring to me.

[John Glen (Salisbury) (Con)]

Will the Minister explain the Government’s commitment to training in jobcentres? One concern is that there is inconsistency in decisions made. What commitment will be given during the next five years to the training budget for jobcentre staff?

[Mr Duncan Smith]

I am not altogether certain that I quite understand what my hon. Friend is referring to. If he is referring to the Flexible Support Fund, that is allocated deliberately so that jobcentres can make local decisions about the kind of training that they need to give. If he has a particular problem, I am more than happy for him to write to me or come and see me.

Universal Credit

Debate between Iain Duncan Smith and John Glen

Tuesday 25th November 2014 Commons Chamber

[Mr Duncan Smith]

Actually, we are working very hard to bring down fraud and error. Of course, universal credit will bring down fraud and error. That is one of the driving reasons that it is important to implement universal credit, which is why we are delivering it safely and securely. We all want fraud and error to come down. Of course, we always hear about the mix-up between error and fraud. There is a tendency to think that everyone is defrauding the system, but that is not the case; sometimes, official errors get into the system. Universal credit gets rid of that by simplifying the process, which should make it better. The hon. Gentleman is right to say that we have more to do on fraud and error. We need to keep bearing down on it, which is what any Government would want to do, and universal credit will help enormously.

[John Glen (Salisbury) (Con)]

The working-age welfare budget increased by 40% in real terms between 1996 and 2009, while long-term unemployment doubled. In 2009, a quarter of the unemployed had been on in-work benefits for nine of the previous 10 years. That was the legacy of the previous Government. What does the Secretary of State think the legacy of his Government’s careful roll-out of the very well organised and researched universal credit will be once his period in office ends a long time in the future?

[Mr Duncan Smith]

That is exactly the point. On the first part of my hon. Friend’s question, the Opposition are in a kind of amnesia: they seem to forget that they crashed the economy in the biggest disaster it has ever had, with a fall of some 7% in GDP, and that many people lost their jobs. We have managed to get more people back to work and now have more people in work than ever before, with unemployment falling dramatically, youth unemployment falling and even more people with disabilities now going back to work. As it is rolled out, universal credit will deliver even more to those people—a better income, better support and a much simpler process that they can understand, rather than the chaotic system of tax credits that we have at the moment.

Oral Answers to Questions

Debate between Iain Duncan Smith and John Glen

Monday 10th January 2011 Commons Chamber

[Mr Duncan Smith]

We stand by the OBR forecast that unemployment will rise slightly in the coming year and, thereafter, will fall year on year.

[John Glen (Salisbury) (Con)]

T5. My constituent William Pender approached me to say that the removal of the mobility component of disability living allowance from his son, who resides in a state-funded care home, will leave his son more isolated, because the care home can provide only limited trips out. I invite the Minister to confirm that the full and true nature of my constituent’s mobility needs will be properly catered for under the new system after the reforms.

Oral Answers to Questions

Debate between Iain Duncan Smith and John Glen

Monday 19th July 2010 Commons Chamber

[Mr Duncan Smith]

As the hon. Gentleman knows, the issue of early intervention is specifically lodged with another Department, but I take an interest in it, and guarantee that I will continue to do so. I can say without fear or favour that I think it has the greatest potential to change many of the lives that we talk about—lives of worklessness and poverty, including child poverty. It is arguably one of the most significant issues in the medium to long term, and I will do my level best to ensure that it is pursued.

[John Glen (Salisbury) (Con)]

18. What steps he is taking together with ministerial colleagues to tackle poverty.