Financial Services and Markets Bill

Lord Bishop of St Albans Excerpts

2nd reading
Tuesday 10th January 2023 Lords Chamber

[The Lord Bishop of St Albans]

My Lords, theologians sometimes discuss the personal and social ethics in the teaching of Christ under the three headings of money, sex and power, those three areas which can be the most extraordinary gift and blessing when used rightly and for the common good but which, when they are an end in themselves, can become extraordinarily disruptive. Of these three areas, Christ had most to say about money, as its use reveals our values as individuals and as a society, often in a very stark way. A close reading of this Bill reveals a set of cultural assumptions and values about what is considered important and valuable. There are four areas that I want to highlight and which we need to consider if a growing and vibrant financial sector will work for the common good.

First, on crypto asset regulation, as others have said, we need to act fast both to protect our citizens and so that we do not fall behind the rest of the world. The problem at the moment is that the almost complete lack of regulation means that, for many people, crypto- currencies are just another form of gambling. The recent collapse of FTX has demonstrated the volatility of this market and its vulnerability to fraud. Some have made a fortune, while others have lost their life savings and will now be looking to the state to provide for them. Just as we need a sensible and balanced approach to the regulation of online gambling, so we need sensible, balanced regulation of crypto- currencies. The provision in this Bill to ensure that crypto is treated as a regulated activity and giving the FCA and the PSR the power and, as others have noted, the resources to do their work and to protect customers, is welcome.

Secondly, His Majesty’s Government’s laudable levelling-up agenda needs to ensure access to cash. Here I declare my interest as president of the Rural Coalition. Over 8 million people across the UK rely on cash, primarily the elderly or those who live in rural areas or not-spots, where you cannot get online. Poorer areas are being dominated by pay-to-use cash machines, which hit poorest people the hardest. Research indicates that the most deprived areas are dominated by private operators charging those most affected by the cost of living crisis to withdraw cash. This is the poverty premium, where the poorest are forced to pay more for essential services. When the Minister sums up, can she tell us whether the FCA is under the same obligation as government departments to rural-proof the regulations that it makes about access to cash? If not, will this requirement be introduced?

Thirdly, I welcome the proposal for credit unions and urge His Majesty’s Government to explore ways in which we can encourage their growth. The Church of England has been involved in a very large project using the insights of credit unions in our secondary schools to teach financial literacy, and to teach young people how to handle cash and their money and how to plan responsibly. We need to build on this work urgently.

Fourthly, on green and zero carbon, it is more urgent than ever that we introduce mandatory net-zero transition plans, so that large companies report on how they will manage the transition to net zero. We are told that the Bill will update

“the objectives of the financial services regulators to ensure a greater focus on long-term growth and international competitiveness.”

However, if we are to fulfil our COP 26 commitments, it will also need a secondary statutory objective to protect and restore nature and deliver a net-zero economy. There is much to be welcomed here, but there is a great deal more work to be done.

Financial Services and Markets Bill

Lord Bishop of St Albans Excerpts

Committee stage
Tuesday 7th March 2023 Grand Committee

[The Lord Bishop of St Albans]

My Lords, I will not detain the Committee for very long but perhaps I could say one or two things. Briefly, I come at this by thinking about rural sustainability and rural business. I declare my interest as president of the Rural Coalition.

Before I say anything on that, a month ago I had my wallet stolen on my way into Parliament and I learned a lesson: do not keep all your cards in your wallet but have some different ones. I was, to use a theological term, absolutely stuffed that morning. Fortunately, I had a member of staff at home. I went back and cancelled the cards then phoned up my bank, which said, “Yes, come up—we can give you some cash”. When I got up there, I was told, “No, the system’s got it wrong and we aren’t able to give you cash here”. I then had to get someone to take me six miles to get some cash. When I eventually got into London for some meetings, I went to four places before I could find somewhere to buy lunch because I had only cash. This is actually quite a complex thing.

Actually, I agree with the noble Baroness, Lady Noakes: there is a huge change going on—of course there is. But how are we to work with that, not least if we are going to think about levelling up? In my diocese, for example, if I go into Citizens Advice in poor areas in Stevenage, they tell me that people sometimes positively get rid of their credit and debit cards because they do not know how to control money. There are some real issues here about financial literacy and discipline to help people with saving and so on.

Going back to the rural issue, much of this stuff depends on rural businesses having broadband. Large rural areas of our country are not-spots, where there is no access. Some places do not even have good access on a direct phone line, certainly to do some forms of banking. I therefore think that we are in a transition period. We certainly need protections in place for the foreseeable future as we try to work out how this goes and how we take it forward.

I was recently in the small rural town of Ampthill in my diocese in Bedfordshire. A whole group of people talked to me afterwards; they got on to this subject and said how it really affects small start-up businesses at the moment. I hear that we have to think about how we should take this forward but, over the coming years, we need some sort of provision to guarantee some basic levels of service so that we can help rural sustainability, rural businesses and individuals who live in those areas.