Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of introducing mandatory disclosure of commission rates for currency exchange brokers.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Payment Services Regulations 2017 outline requirements on UK payment service providers regarding disclosure of fees and charges to the payer where currency conversion is provided as part of a payment transaction. Provisions under the Cross Border Payments Regulation also contribute to price transparency, with further requirements regarding how foreign exchange costs are communicated before a payment is made.
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers. These regulations, amongst other things, are intended to enable consumers to make informed decisions when making use of payment services, including where currency conversion is offered as part of a payment transaction.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of updating regulations on currency exchange brokers.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Payment Services Regulations 2017 outline requirements on UK payment service providers regarding disclosure of fees and charges to the payer where currency conversion is provided as part of a payment transaction. Provisions under the Cross Border Payments Regulation also contribute to price transparency, with further requirements regarding how foreign exchange costs are communicated before a payment is made.
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers. These regulations, amongst other things, are intended to enable consumers to make informed decisions when making use of payment services, including where currency conversion is offered as part of a payment transaction.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to require currency exchange services for consumers to display the (a) live exchange rates and (b) commission charged to consumers.
Answered by Emma Reynolds - Economic Secretary (HM Treasury)
The Payment Services Regulations 2017 outline requirements on UK payment service providers regarding disclosure of fees and charges to the payer where currency conversion is provided as part of a payment transaction. Provisions under the Cross Border Payments Regulation also contribute to price transparency, with further requirements regarding how foreign exchange costs are communicated before a payment is made.
The Government recognises the importance of transparency of fees and charges in ensuring effective competition between payment service providers. These regulations, amongst other things, are intended to enable consumers to make informed decisions when making use of payment services, including where currency conversion is offered as part of a payment transaction.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with her G20 counterparts on a global agreement to tax the world’s richest individuals.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The UK was pleased to support the Rio de Janeiro G20 Ministerial Declaration on International Tax Cooperation, including the commitment to cooperate to ensure that ultra-high-net-worth individuals are effectively taxed.
The Government is committed to making sure that the richest in our society pay their fair share on their wealth and assets. That is why the Chancellor announced a series of reforms at the Budget on 30 October to make the tax system fairer and more sustainable.
The G20 can play an important role in helping countries implement progressive tax systems by sharing best practice, building capacity on tackling avoidance and evasion, and supporting international cooperation to increase tax transparency.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his Department's policies of the proposed UN framework on international tax cooperation.
Answered by Nigel Huddleston
The UK strongly supports developing countries' efforts to scale-up domestic resource mobilisation to finance sustainable development.
The UK engaged constructively in the negotiations on the UN tax resolution. However, the UK, alongside many other countries, is concerned that proceeding with a UN convention on international tax at this time would not be the most effective way to achieve these goals. An Explanation of Vote was published on GOV.UK on 22nd November. [LINK]
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish his Department's guidance to Ministers in 2021 on issuing special licenses to persons or organisations for activities otherwise prohibited by sanctions.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The Office of Financial Sanctions Implementation, part of HM Treasury, has an established framework for the circumstances in which decisions relating to licensing applications can be delegated to Officials. Following the Treasury’s Written Ministerial Statements of 30 March 2023, the Treasury laid the current framework in the Libraries of the House of Commons and House of Lords. We will now do the same with the version in operation in 2021.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish his Department's guidance to Ministers on issuing special licenses to persons or organisations for activities otherwise prohibited by sanctions.
Answered by Gareth Davies - Shadow Financial Secretary (Treasury)
The Office of Financial Sanctions Implementation, part of HM Treasury, has an established framework for the circumstances in which decisions relating to licensing applications can be delegated to Officials. Following the Treasury’s Written Ministerial Statements of 30 March 2023, the Treasury laid the current framework in the Libraries of the House of Commons and House of Lords. We will now do the same with the version in operation in 2021.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to publish the conclusions of the review into the special licenses granted to the law firm undertaking work on behalf of Yevgeny Prigozhin.
Answered by James Cartlidge - Shadow Secretary of State for Defence
HM Treasury does not comment on specific licensing cases.
HM Treasury’s Office for Financial Sanctions Implementation (OFSI) takes operational decisions relating to the implementation of financial sanctions in line with the relevant regulations. However, OFSI has not considered it appropriate for the Treasury to effectively decide on whether a case has sufficient merit to be permitted to proceed by deciding whether to license legal fees. Rather, OFSI's position has been that the merits should be decided by the appropriate court. OFSI assesses cases on a costs-basis only, ensuring that the fees requested are reasonable in accordance with the derogations available under the sanctions regimes.
We need to carefully balance the right to legal representation - which is a fundamental one - with wider issues, including the aim and purpose of the sanctions. It is right therefore that HM Treasury are examining whether there are any changes that can be made to this policy. We will update the House in due course.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to compensate local authorities for tax revenue lost due to Investment Zones.
Answered by John Glen
The government will compensate local authorities for the reduction in retained business rates related to the implementation of business rates reliefs in Investment Zones.
Asked by: Kate Osamor (Labour (Co-op) - Edmonton and Winchmore Hill)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make it his policy to review the VAT regime for electricity, in order to support electric vehicle uptake.
Answered by Lucy Frazer
The Government is committed to supporting electric vehicle uptake. Since the Spending Review 2020, we have committed £2.5 billion to vehicle grants and charging infrastructure to accelerate the country's transition to electric vehicles. However, we have no plans to review the VAT regime for electricity.
Although the supply of electricity is normally subject to the standard rate of VAT (20 per cent), in order to keep costs down for families, the supply of electricity for domestic use, including charging electric vehicles at home, attracts the reduced rate of VAT (5 per cent).
Expanding the existing relief would come at a cost. VAT makes a significant contribution towards the public finances, raising around £130 billion in 2019-20, and helps fund the Government's priorities including the NHS, schools, and defence. Any loss in tax revenue would have to be balanced by a reduction in public spending, increased borrowing, or increased taxation elsewhere.