Oral Answers to Questions

Debate between Kirstene Hair and John Glen

Tuesday 2nd July 2019 Commons Chamber

[Kirstene Hair (Angus) (Con)]

9. What steps he is taking to maintain access to cash.

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

I welcome the benefits that electronic payments are bringing to people and businesses across the UK. However, the Government recognise the importance of cash to many, particularly the most vulnerable members of society. That is why we have committed to safeguarding access to cash for those who need it. In the light of changing payment trends, the Government have created the Joint Authorities Cash Strategy Group. That Treasury-led group will seek to bring together the regulators and the Bank of England to inform and co-ordinate members’ activities related to cash and safeguard access for those who need it.

[Kirstene Hair]

I recently sent a survey about access to cash to thousands of my constituents. There was an overwhelming response, because they are terrified that we are going far too fast into a cashless society. The next time the Minister meets banks, will he raise with them the impact that rural banking hubs could have on our local communities, just as the pilot business hub has had in Birmingham?

[John Glen]

I recognise my hon. Friend’s excellent campaigning on this matter, which we have had meetings to discuss. The Government have no direct role in the matter, but we recognise the role that banking hubs have played for businesses across six trial sites. We are looking at that carefully, and I will be very happy to raise it with the banks when I meet them next.

2019 Loan Charge

Debate between Kirstene Hair and John Glen

Tuesday 20th November 2018 Westminster Hall

[John Glen]

The Government that my right hon. Friend was part of and, I believe, a Minister in at the time the legislation was passed. [Interruption.] Let me make some progress.

Although the measure subjects the loans to a tax charge, that 2019 charge applies only to current loan balances and does not arise until April 2019. Recipients of loans can still repay outstanding balances in full or settle with HMRC. The legislation is not retrospective because it sets out Parliament’s intention: payments subject to the loan charge should always have been, and will be, subject to tax. The announcement in the 2016 spring Budget by the former Member for Tatton provided scheme users with a three-year period in which to repay disguised remuneration loans or agree a settlement with HMRC to avoid the charge.

[Kirstene Hair (Angus) (Con)]

Nearly 50% of those who are liable for the loan charge have not had any communication with HMRC since June 2016. Some of them are my constituents. Does the Minister agree that HMRC must accelerate its communications, to take that cloud of uncertainty away from those who are affected?

[John Glen]

I thank my hon. Friend for that point. There have been 24,000 contacts with HMRC. The number of telephone calls has increased from 2,000 to 4,000 a week and extra resources have been made available by HMRC, but I am happy to take up any individual cases that my hon. Friend may wish to bring to me.

In the view of the Government and of HMRC, the payments were always taxable as income, and the new legislation reiterates and formalises that stance.

RBS Closures (Argyll and Bute)

Debate between Kirstene Hair and John Glen

Wednesday 24th January 2018 Westminster Hall

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

It is a pleasure to serve under your chairmanship, Sir Henry.

I warmly commend the hon. Member for Argyll and Bute (Brendan O’Hara) on securing this debate and speaking with such passion and determination. Let my first words be that the Government recognise how often banks are seen as an intrinsic part of the community fabric. That point has been made by several Members this afternoon, and the hon. Gentleman has reaffirmed it eloquently.

We have heard a lot about the closure of physical branches. I believe that this is the fourth time that the hon. Gentleman has raised the issue in the House since RBS’s announcement last December. I want to make clear my sincere sympathy for the concerns that he raised on behalf of his constituents and that hon. Members raised during the debate.

I reassure the Chamber that one of my key priorities as Economic Secretary is to promote and support financial services that deliver for their customers, making those services as accessible as possible. However, the hon. Gentleman must appreciate that the way we bank is going through a period of unprecedented change. Online and mobile technologies mean that customers—perhaps some of us in this Chamber—are reducing our use of high street branches quite drastically.

[Kirstene Hair]

Will the Minister give way?

[John Glen]

I will give way but I will be very sparing in giving way, because I do not want to run out of time to say what I need to say.

[Kirstene Hair]

I thank the Minister for giving way. On accessibility, my constituents in Montrose have been told that they will have to travel to Arbroath, but RBS will give no confirmation that Arbroath will remain open for the foreseeable future. I agree that accessibility is of the utmost importance, but it is understandable that constituents are concerned—they do not know what the future holds for the next nearest branch.

[John Glen]

I will come on to a number of practical steps that I think can challenge the banks’ logic and help hon. Members across the House.

We have to acknowledge the change in the way that we use banks, and the fact that banks will adapt to reflect the shift in consumer patterns. That means making tough decisions, such as modernising their services to maintain profitability. I go back to what I said two weeks ago on this spot: the decision is not for the Government, and it is important that I explain why. I acknowledge the point that has been made about Stephen Hester, but there is a material difference between the Government, as the largest shareholder, being consulted on who the chief executive is, and the day-to-day operational decisions made branch by branch. There is a reasonable difference in the level of involvement. Each bank’s branch strategy, including whether to open or close individual branches, is for the management of that bank to determine. The Government rightly do not intervene in those commercial decisions in this bank or in any other bank.

Oral Answers to Questions

Debate between Kirstene Hair and John Glen

Thursday 21st December 2017 Commons Chamber

[John Glen]

I assure the hon. Gentleman that all my colleagues in the Department are working very hard to make sure that all funding is protected, as far as possible, beyond the changes following Brexit.

[Kirstene Hair (Angus) (Con)]

As the Secretary of State is aware, Dundee city has put together a transformative bid to be the European city of culture. I desperately want Dundee—its bid will have clear benefits for all of Tayside—and the other cities to have a chance to test their bids. May I urge my right hon. Friend to find an alternative way of taking forward this contest so that all the time, money and, most importantly, vision for Dundee is not put to waste?