Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the credit insurance cover available to the supply chain of product-based businesses.
Answered by Lord Young of Cookham
Government monitors the credit insurance landscape and credit insurers’ pricing practices, through liaison with providers, businesses, and industry bodies. We will continue to study the market and closely monitor trends.
Government has been made aware of restrictions in credit insurance cover some small and medium-sized product-based businesses are facing in the current trading climate. Difficult trading conditions, market trends, and uncertainty have led some credit insurance providers to reassess the level of cover they are willing to offer in certain sectors. This varies by industry and firm, and is a commercial decision for insurers.
Other financial services products are also available to support businesses in lieu of credit insurance, for example from banks.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to regulate the credit insurance market to ensure that insurance cover adequately protects the supply chain of product-based businesses.
Answered by Lord Young of Cookham
The underwriting of insurance risk, including credit risks, is a commercial decision, and Government does not prescribe the terms and conditions insurance companies set when offering insurance. This is important to the proper functioning of the economy. Many of the underlying causes of providers restricting credit insurance cover, wider economic uncertainty and sectoral trends, are outside Government control.
Government is clear that it wants all businesses to thrive now and in the future, and will continue close monitoring of the market and affected sectors. Government is determined to make the UK one of the best places in the world to start and grow a business, and has announced multiple measures to support enterprise. Following the Patient Capital Review, we set out a £20 billion action plan at Budget 2017 to finance firms’ growth.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the likely impact on the viability of high streets in the UK of credit insurers reducing their cover for some high street retailers.
Answered by Lord Bates
Government actively monitors the economy, and is aware of problems and consequent difficulty some retailers are facing in accessing credit insurance. Insurers base the level of cover they provide on their assessment of the credit risk, which is often dependent on the specific dynamics of certain sectors. Market trends in the retail sector, and challenging market conditions facing the retailers, have led some insurers to reduce their exposure.
The underwriting of insurance risks – including credit risks – is a commercial decision, and Government does not prescribe the terms and conditions insurance companies set when offering insurance. This is important to the proper functioning of the economy.
However, Government is clear that it wants all types of retail to thrive now and in the future, and wants to support the sector as it responds to change. A package of measures to support the high street was announced at Budget 2018. The Government has regular engagement with financial services providers, including on their plans to support business customers.
Other financial services products are also available to support businesses in lieu of credit insurance, for example from banks.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact on the UK supply chain to high street retailers of the lack of credit insurance cover available for such retailers.
Answered by Lord Bates
Government actively monitors the economy, and is aware of problems and consequent difficulty some retailers are facing in accessing credit insurance. Insurers base the level of cover they provide on their assessment of the credit risk, which is often dependent on the specific dynamics of certain sectors. Market trends in the retail sector, and challenging market conditions facing the retailers, have led some insurers to reduce their exposure.
The underwriting of insurance risks – including credit risks – is a commercial decision, and Government does not prescribe the terms and conditions insurance companies set when offering insurance. This is important to the proper functioning of the economy.
However, Government is clear that it wants all types of retail to thrive now and in the future, and wants to support the sector as it responds to change. A package of measures to support the high street was announced at Budget 2018. The Government has regular engagement with financial services providers, including on their plans to support business customers.
Other financial services products are also available to support businesses in lieu of credit insurance, for example from banks.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the credit insurance market in the UK; and what steps they plan to take to improve the level of cover available for suppliers to the retail sector.
Answered by Lord Bates
Government actively monitors the economy, and is aware of problems and consequent difficulty some retailers are facing in accessing credit insurance. Insurers base the level of cover they provide on their assessment of the credit risk, which is often dependent on the specific dynamics of certain sectors. Market trends in the retail sector, and challenging market conditions facing the retailers, have led some insurers to reduce their exposure.
The underwriting of insurance risks – including credit risks – is a commercial decision, and Government does not prescribe the terms and conditions insurance companies set when offering insurance. This is important to the proper functioning of the economy.
However, Government is clear that it wants all types of retail to thrive now and in the future, and wants to support the sector as it responds to change. A package of measures to support the high street was announced at Budget 2018. The Government has regular engagement with financial services providers, including on their plans to support business customers.
Other financial services products are also available to support businesses in lieu of credit insurance, for example from banks.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to provide support to suppliers who may suffer losses as a result of being unable to obtain credit insurance cover.
Answered by Lord Bates
Government actively monitors the economy, and is aware of problems and consequent difficulty some retailers are facing in accessing credit insurance. Insurers base the level of cover they provide on their assessment of the credit risk, which is often dependent on the specific dynamics of certain sectors. Market trends in the retail sector, and challenging market conditions facing the retailers, have led some insurers to reduce their exposure.
The underwriting of insurance risks – including credit risks – is a commercial decision, and Government does not prescribe the terms and conditions insurance companies set when offering insurance. This is important to the proper functioning of the economy.
However, Government is clear that it wants all types of retail to thrive now and in the future, and wants to support the sector as it responds to change. A package of measures to support the high street was announced at Budget 2018. The Government has regular engagement with financial services providers, including on their plans to support business customers.
Other financial services products are also available to support businesses in lieu of credit insurance, for example from banks.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have to review the business rates system; and when they expect to make any resulting changes to the system of business rates in England.
Answered by Lord Bates
The government concluded a fundamental review of business rates at Budget 2016 and decided that business rates should remain as a property tax. Respondents to the review agreed that property based taxes were easy to collect, difficult to avoid, relatively stable compared to other taxes and had a clear link with local authority spending. They also raise revenue in a way that is less distortionary than some other taxes. There was no consensus on an alternative tax base. Following the review, the government introduced reforms and reductions worth over £10bn by 2023 to cut the burden of business rates.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the impact of leaving the EU VAT area on British companies, including small and micro businesses.
Answered by Lord Bates
It is the Government’s intention that the administration of the VAT regime following EU exit will remain largely as it currently is, as far as is desirable and practicable. Further information can be found in the Impact Assessment that accompanied the Taxation (Cross Border Trade) Bill, published on 20/11/2017.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government how many proposals they have received from prospective fund managers in response to the Infrastructure and Projects Authority competition for a commercial partner for its proposed Broadband Investment Fund, and when they plan to announce the successful bidder.
Answered by Lord O'Neill of Gatley
The Infrastructure and Projects Authority has received seven proposals from prospective commercial partners for the proposed Broadband Investment Fund. Officials are currently evaluating the proposals and carrying out due diligence. The government will announce a decision in due course.
Asked by: Lord Allen of Kensington (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty’s Government when they plan to bring forward legislation to provide a statutory basis for the independent National Infrastructure Commission.
Answered by Lord O'Neill of Gatley
The National Infrastructure Commission has a crucial role to play in setting out the country’s infrastructure priorities. Since being set up, it has produced three challenging and authoritative reports on smart power, London transport and a long-term strategy for transport in the North, and has recently consulted on its approach to the first National Infrastructure Assessment.
The government remains fully committed to the Commission and we are considering how it can best support the government’s new industrial strategy.