Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with LINK on its criteria for assessing applications for (a) access to cash services and (b) banking hubs in rural areas.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups or face challenges using alternative payment methods. The Government is committed to maintaining the viability of cash as a payment method for those who choose to use it. The Government also understands the importance of face-to-face banking to communities and high streets across the UK, including those in rural communities, and is committed to championing sufficient access for all as a priority.
In September 2024, The Financial Conduct Authority (FCA) introduced regulatory rules for access to cash. Its rules require the reasonable provision of free cash withdrawal and deposit facilities for personal current accounts.
Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs, and will recommend appropriate solutions where it considers that a community requires additional cash services. Any decisions on changes to LINK’s independent assessment criteria are a matter for LINK, the financial services sector, and for the FCA, which oversees the access to cash regime.
Under the framework provided by this regime, the Government is working closely with industry to roll out 350 banking hubs across the UK which will provide individuals up and down the country with critical cash and banking services. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 135 are already open.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she will make an assessment of the potential merits of reviewing the criteria used by LINK to asses applications for banking hubs to help meet the needs of rural communities.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups or face challenges using alternative payment methods. The Government is committed to maintaining the viability of cash as a payment method for those who choose to use it. The Government also understands the importance of face-to-face banking to communities and high streets across the UK, including those in rural communities, and is committed to championing sufficient access for all as a priority.
In September 2024, The Financial Conduct Authority (FCA) introduced regulatory rules for access to cash. Its rules require the reasonable provision of free cash withdrawal and deposit facilities for personal current accounts.
Where a branch closure is announced or a community has submitted a cash access assessment request, LINK, the independent industry coordinating body responsible for making access to cash assessments, assesses a community’s access to cash needs, and will recommend appropriate solutions where it considers that a community requires additional cash services. Any decisions on changes to LINK’s independent assessment criteria are a matter for LINK, the financial services sector, and for the FCA, which oversees the access to cash regime.
Under the framework provided by this regime, the Government is working closely with industry to roll out 350 banking hubs across the UK which will provide individuals up and down the country with critical cash and banking services. The UK banking sector has committed to deliver these hubs by the end of this Parliament. Over 220 hubs have been announced so far, and over 135 are already open.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she hold discussions with Cabinet colleagues on the potential impact of lead exposure on trends in the level of gross domestic product.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Treasury works closely with other government departments to manage risks to the UK economy and support economic stability, an essential foundation for long-run economic growth. This includes collaboration with colleagues from the Cabinet Office Civil Contingencies Secretariat and the UK Health Security Agency.
The UK Health Security Agency supports partners in identifying the pathway and source of lead exposure and implements public health interventions to reduce associated risks. By continuing to address lead exposure through source identification, remediation, and public awareness, efforts are being made to reduce the potential long-term economic impacts, improving public health outcomes and mitigating associated healthcare costs and productivity losses.
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to apply VAT to small private schools offering Montessori education where pre-school age children are in the same classes as older children.
Answered by James Murray - Exchequer Secretary (HM Treasury)
From 1 January 2025, the 20% standard rate of VAT will apply to all education services, vocational training, and boarding services provided by private schools for a charge. This will apply to any fees charged after 29 July 2024 for terms starting after 1 January 2025.
The government has listened to feedback regarding the definition of “nursery class” used in the draft legislation. To ensure the legislation achieves the policy intent of keeping nursery education exempt from VAT across the UK, the definition of a nursery class has been amended to: “a class that is composed wholly (or almost wholly) of children who are under compulsory school age or, in Scotland, school age, and would not be expected to attain that age while in that class”. Therefore, providing the majority of children in the nursery class are under compulsory school age and aren’t expected to turn compulsory school age that year, the whole nursery class will remain exempt from VAT. Nursery schools not attached to a private school will remain exempt from VAT, regardless of the age of their pupils.
Further detail can be found in the government’s summary of responses published here: Government_Response_to_the_Technical_Note_on_Applying_VAT_to_Private_School_Fees_and_Removing_the_Business_Rates_Charitable_Rate_Relief.pdf
Asked by: Julian Smith (Conservative - Skipton and Ripon)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent fiscal steps he has taken to support small businesses.
Answered by David Gauke
The Government's long-term economic plan is backing small businesses as they set up and grow. As part of this plan we are cutting taxes and reducing red tape to help businesses.
In particular, the employment allowance was introduced in April 2014, and allows businesses and charities throughout the UK to deduct up to £2,000 off their employer national insurance contributions (NICs) bill each year.
In addition, autumn statement 2013 announced the extension of the doubling of small business rate relief until April 2015, taking 350,000 small businesses out of business rates.