Oral Answers to Questions

John Glen Excerpts

Tuesday 17th May 2022 Commons Chamber

[Giles Watling (Clacton) (Con)]

3. What steps he is taking to encourage cryptocurrency companies to operate in the UK.

[The Economic Secretary to the Treasury (John Glen)]

At Fintech Week on 4 April, I set out our firm ambition to make Britain a global hub for cryptoasset technology, and I announced a number of actions that will support that. That includes committing to consult on a future regulatory regime for cryptoassets later this year; legislating to bring stablecoins into payments regulation; and exploring ways of enhancing the competitiveness of the UK tax system to encourage further development in this sphere.

[Giles Watling]

I thank my hon. Friend for his answer. Will he commit to working with the cryptocurrency sector and the UK Cryptoasset Business Council to make sure that the UK’s future regulatory parameter can instil a global advantage, ensuring that our economy remains ahead of the curve?

[John Glen]

Yes, absolutely, and my officials are meeting the Cryptoasset Business Council later this week. We want to take a dynamic approach to industry engagement. Lots of similar organisations have spawned over the last few months, and I and my officials will work very closely with them as we lead this global leadership aspiration.

[Mr Gregory Campbell (East Londonderry) (DUP)]

The cryptocurrency market is expanding rapidly, but what are the Government doing to ensure that the wider public are aware of the wild swings that exist in the market? Yes, profits can be made, but so can significant losses, as the past few months have demonstrated.

[John Glen]

We watch these things very carefully. That is why, in January this year, we announced that certain cryptoassets will be brought within the scope of financial promotions regulation. I am very aware of the Financial Conduct Authority’s advice, which shows that only one in 10 cryptoholders are aware that they can lose all their money. We need to get that number up.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

4. What steps his Department is taking to tackle economic crime.

[The Economic Secretary to the Treasury (John Glen)]

Money obtained through corruption or criminality is not welcome in the UK. The Government are taking concerted action to combat that threat by investing £400 million over this spending review period, with the kleptocracy cell in the National Crime Agency targeting sanctions evasion and corrupt Russian assets hidden in the UK. The Government have taken far-reaching steps to improve corporate transparency, including through recent and forthcoming primary legislation announced in the Queen’s Speech last week.

[Kevin Hollinrake]

I thank the Minister for that answer. NatWest and HSBC have been hit with big fines for facilitating money laundering, and Danske Bank will probably see a fine of £2 billion for £200 billion of money laundering. This is seen not as a deterrent, but as a cost of doing business for these big banks. Does he agree that the only way that we will tackle this is through criminal prosecutions both at a corporate level and of senior managers? Does he support the calls to that effect in the economic crime manifesto by the all-party groups on fair business banking and on anti-corruption and responsible tax, and will he support such measures in the economic crime Bill?

[John Glen]

I thank my hon. Friend for his question. I think he is the House’s foremost observer of banks’ behaviour, but he also knows that this is an extremely complex area of law. The Government have asked the Law Commission to undertake an in-depth review of laws around corporate criminal liability for economic crime and to make recommendations. My understanding is that the Law Commission will make an announcement on this subject imminently, and we will look at that very carefully.

[Chris Elmore (Ogmore) (Lab)]

One of the key complaints from any of my constituents who are victims of economic crime is about the inability to reach out to Action Fraud, and if they do, they get no response. I urge the Minister—plead with him, in fact—to reform the work of Action Fraud and perhaps even bring about a new body in any new legislation to ensure that constituents get some sort of answer and, importantly, some form of support from the authorities of the UK state.

[John Glen]

This is a criticism that I hear. I am very happy to meet the hon. Gentleman to discuss it further, examine the experience of his constituents and look at what we can do constructively to move things further in the right direction.

[Kelly Tolhurst (Rochester and Strood) (Con)]

Following clarity from my hon. Friend to UK Finance on how banks should interpret the money laundering regulations, a number of banks continue to close existing pooled client accounts of long-established, reputable boat-broking businesses. That is now stopping those businesses trading. What further assurance can he give to banks regarding these low-risk businesses?

[John Glen]

I thank my hon. Friend for her question. As she will know from the letter that I sent her this morning and from our conversation with industry representatives together a few months ago, this is quite a challenging issue to resolve. I cannot direct the banks to open, and keep open, these accounts, but I will continue to engage with her and with UK Finance to see whether more progress can be made in the coming weeks.

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

The Government have lost £4.3 billion of taxpayers’ money through fraudulent covid schemes. Now we learn that a large chunk of that money is going into the hands of terrorists, organised crime gangs and drug dealers. Will the Minister reassure me that he is taking the reports seriously and update the House on the total number of investigations the Government are undertaking that relate to covid fraud?

[John Glen]

I can absolutely reassure the hon. Lady that the Government take the issue very seriously. That is why at previous fiscal events the Chancellor has invested £100 million in a taskforce to deal with it. When we designed a number of the interventions, protecting taxpayers was a real consideration. It is also the case that we needed to act swiftly to assist those businesses and if we had not made some of those interventions at the time, many businesses would have gone under. We continue to engage carefully on the matter.

[Alison Thewliss (Glasgow Central) (SNP)]

We on the SNP Benches welcome the economic crime and corporate transparency Bill, and given the scale of the problem that the Tories have presided over, it is long overdue. What discussions has the Minister had with colleagues in the Department for Business, Energy and Industrial Strategy about making Companies House an anti-money-laundering supervisor in its own right finally to lock out the fraudsters, the kleptocrats and their dirty money from Companies House once and for all?

[John Glen]

The hon. Lady is absolutely right to highlight Companies House reform as a major area that we are working on. The Government forwarded more than £60 million to start that work, which has now been accelerated. Alongside the register of overseas entities and beneficial ownership, the increased transparency of those assets will be very welcome.

[John Penrose (Weston-super-Mare) (Con)]

5. What assessment he has made of the effects of high marginal deduction rates on work incentives for people who are (a) key workers, (b) on below average incomes and (c) on above average incomes.

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[Margaret Ferrier (Rutherglen and Hamilton West) (Ind)]

8. What recent steps he has taken to progress the Government’s access to cash strategy.

[The Economic Secretary to the Treasury (John Glen)]

The Government recognise the importance of access to cash in the daily lives of millions of people across the UK. In the Queen’s Speech, the Government announced that we will legislate to protect access to cash in the financial services and markets Bill, which will be brought forward soon, when parliamentary time allows. We consulted on legislative approaches last year and will publish a summary of responses to the consultation this week.

[Margaret Ferrier]

If we look at the demographic of people who are most likely to be reliant on access to cash, we see that in large part it is those who are vulnerable or on low incomes. If someone is down to their last £10, they cannot afford a withdrawal fee at an ATM. Will the Government look to make all ATMs free to use for the customer by working with banks and ATM providers to reform the interchange fee, so that the system accounts for varying demographics, geography and demand in a way that it currently does not?

[John Glen]

As I said, the Government’s response will be revealed in the legislation. When I visited the hon. Member’s constituency not so long ago, I saw that the use of hubs—banks working together to provide access to cash—is key. There are 72,000 cash access points and 430,000 cashback locations across the UK. A coherent response that addresses the hon. Member’s points will be made in the legislation.

[Anna Firth (Southend West) (Con)]

9. What fiscal steps he has taken to support investment in UK infrastructure.

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[Stephen Hammond (Wimbledon) (Con)]

There was widespread welcome for last week’s announcement that the Government will introduce a financial services and markets Bill. Can my right hon. Friend confirm that the intention of that Bill will be to ensure that future regulation is proportionate, that the regulator is publicly accountable and that we intend to maintain the international competitiveness of this great industry?

[The Economic Secretary to the Treasury (John Glen)]

Absolutely I can. I note the observations of some economists yesterday; we will have an obligation on regulators to take account of competitiveness and of where we are in the global context.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

T5. Compared with April 2020, our energy bills are now 75% more expensive and petrol is 50% more expensive. If the Chancellor thought an extra £20 a week was needed for universal credit two years ago, surely he agrees it must be reinstated as a matter of urgency?

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[Stella Creasy (Walthamstow) (Lab/Co-op)]

One group of companies doing well out of the cost of living crisis is the buy now, pay later lenders, with Klarna now valued higher than Barclays or Lloyds. One in 12 of their customers are using buy now, pay later credit to pay for toiletries and basic food products. Will the Chancellor, who was boasting about our consumer credit profile earlier, name the date when our constituents can finally make good on the promise that was made in this House over 18 months ago to give people protection from these legal loan sharks and access to the Financial Ombudsman Service?

[John Glen]

I cannot give the date, but it will be very soon.

[Dan Jarvis (Barnsley Central) (Lab)]

My experience over the past four years or so has proved without doubt that truly levelling up South Yorkshire and the wider north will require transformative levels of investment. Does the Chief Secretary agree, and if so, does he truly believe that the investment is there to meet the huge challenge that we undoubtedly face?