Business Banking Resolution Service

Debate between Kirsten Oswald and Andrew Griffith

Tuesday 11th July 2023 Westminster Hall

[The Economic Secretary to the Treasury (Andrew Griffith)]

It is a pleasure to serve with you in the Chair, Mr Pritchard. I congratulate my hon. Friend the Member for Hazel Grove (Mr Wragg) on securing the debate on his behalf and that of the all-party parliamentary group on fair business banking. In my short time in this role, I have seen that the APPG does a significant job and gives a voice to our all-important small businesses.

We are a nation of small businesses. They employ a vast number of people in the economy and make a huge contribution and, as other speakers have said, it is vital that they secure access to the finance and capital that they need to grow, expand and do the wonderful things they do to help the UK economy. As part of that, it is critical when things go wrong—regrettably, they sometimes do—and businesses face issues with their bank, they can access efficient and unbiased dispute resolution. We all aspire to a quick, efficient and affordable process in that regard, which allows for unbiased outcomes for those businesses. Those are the higher-order objectives that we seek.

For context, it is not my role today to defend the BBRS. It is an independent body and is not a part of Government or the Treasury. I will share the same context about it being set up following a number of interventions by Parliament. We will not truthfully know whether the deficiency was in the overestimate of the number of cases or the effectiveness of the BBRS system. Given that we know that the BBRS is effectively headed for the exit in all circumstances, that is moot, although the question of how individuals and businesses get redress is not. That, I absolutely accept, is a responsibility of the Treasury; it is how we can ensure good order on this.

The more generous in spirit among us might accept that the BBRS was set up with good intentions, but as we have heard from Members here today, that has not perhaps been the experience. I understand that and have listened very closely to today’s debate, and perhaps my hon. Friend the Member for Hazel Grove would care to meet me to share his own particular constituent experience. I understand that is a long-standing piece of casework, and sometimes such specific examples illustrate the more general point that we have heard from Members today given that there are clearly a number of cases.

[Kirsten Oswald]

The Minister has offered to meet the hon. Member for Hazel Grove (Mr Wragg), who secured the debate, which I am sure is very welcome, but might he feel able to extend that offer to others of us who have long-standing cases in this field that are difficult to resolve?

[Andrew Griffith]

I want to be a listening Minister and am of course very happy to do that, but in so doing I do not want to hold out a false expectation. These matters are not directly the subject of ministerial interventions, so while I am very happy to meet the hon. Lady, and, again, use those examples to inform the wider policy area, in fairness it is important for people in the Public Gallery or who might be following the debate that I do not raise false expectations, because some of these matters have involved great trauma to individuals and have been going on for a long period of time. I would be grateful if the hon. Lady could frame things in that important context, but of course I would be happy to meet her and, lest I receive more interventions, that is a general point for Members of this House. It is right that I approach my responsibility diligently as we try to formulate policy.

As we go forward, whatever past decisions have been made in this respect, I am very keen to understand—the hon. Member for Hampstead and Kilburn (Tulip Siddiq) talked about this—the role of the Financial Ombudsman Service, which successfully deals with tens of thousands of complaints each year now, including SMEs up to the threshold of £6.5 million. The Financial Conduct Authority—whose decision it must be, but with the support of Ministers—has looked to extend that upper threshold, and it is consulting; perhaps Members have responded, like the APPG has.

I spoke to the chief executive of the FCA and gave him great encouragement that, the consultation having been closed in April of this year, we will shortly hear the response. I hope the House will await that, because it is my belief that one should look again at the merits of this versus a statutory tribunal, which I believe still has some of the disadvantages that the hon. Member for Hampstead and Kilburn outlined, particularly in terms of the need for primary legislation but also the non-material differences between an ombudsman service which exists, is seen to work generally in practice—although I am always open to representations—versus yet another novel intervention in the form of a new statutory tribunal.

Oral Answers to Questions

Debate between Kirsten Oswald and Andrew Griffith

Tuesday 9th May 2023 Commons Chamber

[Andrew Griffith]

My right hon. Friend is absolutely right. Resilience is a strong word, and thanks to the actions that this Government have taken over the past six months, the Office for Budget Responsibility has confirmed that the UK is now expected to avoid a recession this year.

[Kirsten Oswald (East Renfrewshire) (SNP)]

12. What recent assessment his Department has made of the potential impact of the UK’s withdrawal from the EU on the economy.

Oral Answers to Questions

Debate between Kirsten Oswald and Andrew Griffith

Tuesday 11th October 2022 Commons Chamber

[Kirsten Oswald (East Renfrewshire) (SNP)]

T2. Push payment fraud losses increased by 71% in the first half of 2021, surpassing card fraud losses for the first time. What steps is the Chancellor taking to tackle this huge surge in fraud, and importantly, to ensure that victims, including my constituents, are reimbursed for their losses, instead of being unfairly penalised for falling victim to these increasingly sophisticated scams?

[The Financial Secretary to the Treasury (Andrew Griffith)]

Push payment fraud is a growing problem, which the Government take very seriously. That is why we will be taking powers in the Financial Services and Markets Bill that will mandate reimbursement to consumers.