Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the change in UK GDP since December 2019; and what assessment they have made of how this compares to (1) the US, (2) France, and (3) Canada, in the same period.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
According to data from the independent Office for National Statistics (ONS), the change in real GDP from the three months to December 2019 to the three months to December 2021 (the latest available quarterly data) was -0.4%. This leaves the UK in the middle of the pack compared to other G7. The below table depicts this using publicly available data in the same period for real GDP in the rest of the G7.
3m to Dec 2021 relative to 3m to Dec 2019 | Real GDP change (%) |
US | 3.2 |
France | 0.9 |
Canada | 0.1 |
Italy | -0.3 |
UK | -0.4 |
Japan | -0.4 |
Germany | -1.1 |
However, the ONS has also advised that it is difficult to compare real GDP during the pandemic, due to differences in measurement of output in health and education. The ONS has noted that estimates of nominal GDP are more comparable. In nominal GDP terms, for the same period the UK is ranked 3rd compared to others in the G7 (see the below table).
3m to Dec 2021 relative to 3m to Dec 2019 | Nominal GDP change (%) |
US | 10.7 |
Canada | 10.7 |
UK | 4.9 |
France | 4.3 |
Germany | 4.3 |
Italy | 0.9 |
Japan | -1.7 |
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether UK GDP was lower at the end of 2021 than at the end of December 2019.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The independent Office for National Statistics (ONS) is responsible for measuring UK GDP. In the three months to December 2021 UK real GDP was 0.4% below its level in the three months to December 2019, where the economy was affected by restrictions necessitated by the Omicron wave at the end of the year. The ONS also produce monthly GDP figures, which show that in January 2022 real GDP was 0.8% above the level prior to the pandemic in February 2020.
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the UK's total GDP in December 2021 compared to February 2020, relative to the other G7 nations.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
Her Majesty’s government regularly looks at UK economic growth in the context of growth in other advanced economies, including those in the G7. The Office for National Statistics publishes UK figures monthly, quarterly, and annually.
There are different metrics by which international GDP growth rates can be compared, varying by the time and reference period used. In the case of our G7 peers, as well as the UK, only Canada produces monthly GDP data. Monthly comparisons are therefore not possible for all members of the G7. International comparisons of economic growth are possible for all G7 members at both quarterly and yearly frequencies. This information is presented below.
Real GDP growth | Monthly | Quarterly | Quarterly | Quarterly | Annually |
Country | February 2020 to November 2021 | Q3 2021 Quarter on Year % growth | Q4 2021 Quarter on Year % growth | Q4 2019 to Q4 2021 | 2021 |
Canada | 0.2% | 4.0% | 3.4% | 0.2% | 4.7% |
France | N/A | 3.5% | 5.4% | 0.9% | 7.0% |
Germany | N/A | 2.9% | 1.4% | -1.5% | 2.8% |
Italy | N/A | 4.0% | 6.4% | -0.5% | 6.4% |
Japan | N/A | 1.2% | 0.7% | -1.9% | 1.7% |
UK | 0.2% | 7.0% | 6.5% | -0.5% | 7.5% |
US | N/A | 4.9% | 5.5% | 3.1% | 5.7% |
Source: Refinitv DataStream, HMT Calculations
Comparing monthly to the latest data available in both countries, November, the ratio of monthly real (seasonally adjusted) GDP between February 2020 and December 2021 was 0.2, in both the UK and Canada. Canada is yet to release December monthly data.
The UK’s 2021 Q3 quarter-on-year growth rate was 7.0%, compared to the US (4.9%), Italy and Canada (both 4%), France (3.5%), Germany (2.9%) and Japan (1.1%).
The ratio of real GDP from Q4 2019 to Q4 2021 in the UK was -0.5%, compared to the US (3.1%), France (0.9%), Canada (0.2%), Italy (-0.5%), Germany (-1.5%) and Japan (-1.9%).
Annually, the UK’s growth rate in 2021 was 7.5%, compared to France (7.0%), Italy (6.4%), the US (5.7%), Canada (4.7%), Germany (2.8%) and Japan (1.7%).
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the report by Sky News on 8 November 2021 that found an increase in the sale of super yachts between 2019 and 2021; and what assessment they have made of the link, if any, between the purchase of such yachts and the payment of furlough money.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
We have not made any such assessment. The objective of the CJRS was to support businesses to preserve employer-employee matches by providing a mechanism to pay the wages of furloughed employees. Through easing the financial burden, the CJRS aimed to support jobs, reduce the risk of permanent business closures, and reduce the risk of large losses in incomes, through wage support to furloughed employees.
The scheme succeeded in supporting 11.7 million jobs across the UK, and the Office for National Statistics has found that of all workers who had ever been furloughed, more than nine in ten were still in work in the three months up to June 2021. As per Government guidance, the employer must have paid the full amount they claimed for their employee’s wages to their employee. They also had to pay the associated employee tax, pension, and National Insurance Contributions to HMRC. If they were not able to do that, the employer had to repay the money to HMRC.
The Government put robust measures in place to control error and fraud in our key pandemic support schemes, such as investing over £100 million in a Taxpayer Protection Taskforce at the Spring Budget 2021.
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what estimate they have made, if any, of the increase in billionaires resident in the UK by (1) number, and (2) percentage, between (a) 2019–20, and (b) 2020–21; and what assessment have they made of the link, if any, between this increase and the payment of furlough money.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The Government has made no such assessment. The Office for National Statistics publishes statistics on the wealth of British households where individuals have a tax obligation and report to HMRC: https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/totalwealthingreatbritain/april2018tomarch2020
HMRC also publishes statistics on personal incomes: https://www.gov.uk/government/statistics/personal-incomes-tables-312-to-315a-for-the-tax-year-2018-to-2019
The Wealthy unit, which is part of Customer Compliance in HMRC, does not hold the number of billionaires resident in the UK. Additionally, the 2020-21 income details have been filed in January 2022, and so it is too early to complete a comparison to 2019-20 for 2020-21.
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the analysis by the Boat Group, which found that UK (1) new, and (2) used, boat sales grew by 9 per cent in 2020; and what assessment they have made of the link, if any, between the purchase of such yachts and the payment of furlough money.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The objective of the Coronavirus Job Retention Scheme (CJRS) was to support businesses to preserve employer-employee matches by providing a mechanism to pay the wages of furloughed employees. Through easing the financial burden, the CJRS aimed to support jobs, reduce the risk of permanent business closures (supporting those that had temporarily ceased or reduced trading), and reduce the risk of large losses in incomes, through wage support to furloughed employees. In doing these things, the CJRS sought to reduce the risk of long-term labour market scarring, maintain the UK economy’s productive capacity through the crisis, and facilitate and support a smoother economic recovery.
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the answer by Lord Bates on 19 October (HL Deb, col 665) and Lord Hain's letter to the Minister of 25 September, whether they intend to discuss allegations that the Bank of Boroda, HSBC, and Standard Chartered Bank have been conduits for money laundering from South Africa with authorities in Hong Kong and Dubai.
Answered by Lord Bates
The Chancellor of the Exchequer and HM Treasury pass information they receive on specific allegations to the Financial Conduct Authority (FCA), Serious Fraud Office and National Crime Agency as appropriate. This includes information received by the Chancellor from Lord Hain linking HSBC and Standard Chartered to possible money laundering by individuals connected to the Government of South Africa and subsequent allegations in the House of Lords linking the Bank of Baroda. However, these agencies are operationally independent and HM Treasury has no power to direct them in relation to any individual cases.
The European Commission has no direct jurisdiction over allegations of money laundering, so any potential investigations would be taken forward by national competent authorities. The FCA and other agencies have extensive cooperation networks in the EU and internationally. These agencies will be best placed to determine whether they are in possession of information which could usefully be shared with authorities in other states. As a matter of course, they do not comment on discussions with specific firms or regulators.
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government further to the answer by Lord Bates on 19 October (HL Deb, col 665) and Lord Hain's letter to the Minister of 25 September, what discussions they have had with the President of the European Commission in relation to allegations that banks falling under EU jurisdiction have been conduits for money laundering from South Africa; and whether they will make the outcome of those discussions public.
Answered by Lord Bates
The Chancellor of the Exchequer and HM Treasury pass information they receive on specific allegations to the Financial Conduct Authority (FCA), Serious Fraud Office and National Crime Agency as appropriate. This includes information received by the Chancellor from Lord Hain linking HSBC and Standard Chartered to possible money laundering by individuals connected to the Government of South Africa and subsequent allegations in the House of Lords linking the Bank of Baroda. However, these agencies are operationally independent and HM Treasury has no power to direct them in relation to any individual cases.
The European Commission has no direct jurisdiction over allegations of money laundering, so any potential investigations would be taken forward by national competent authorities. The FCA and other agencies have extensive cooperation networks in the EU and internationally. These agencies will be best placed to determine whether they are in possession of information which could usefully be shared with authorities in other states. As a matter of course, they do not comment on discussions with specific firms or regulators.
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the answer by Lord Bates on 19 October (HL Deb, col 665) and Lord Hain's letter to the Minister of 25 September, what engagement they have had with the President of the European Commission in relation to allegations that the Bank of Baroda, HSBC, and Standard Chartered Bank have been conduits for money laundering from South Africa.
Answered by Lord Bates
The Chancellor of the Exchequer and HM Treasury pass information they receive on specific allegations to the Financial Conduct Authority (FCA), Serious Fraud Office and National Crime Agency as appropriate. This includes information received by the Chancellor from Lord Hain linking HSBC and Standard Chartered to possible money laundering by individuals connected to the Government of South Africa and subsequent allegations in the House of Lords linking the Bank of Baroda. However, these agencies are operationally independent and HM Treasury has no power to direct them in relation to any individual cases.
The European Commission has no direct jurisdiction over allegations of money laundering, so any potential investigations would be taken forward by national competent authorities. The FCA and other agencies have extensive cooperation networks in the EU and internationally. These agencies will be best placed to determine whether they are in possession of information which could usefully be shared with authorities in other states. As a matter of course, they do not comment on discussions with specific firms or regulators.
Asked by: Lord Hain (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to the answer by Lord Bates on 19 October (HL Deb, col 665), which banks falling under UK jurisdiction have been referred to (1) the Serious Fraud Office, (2) the Financial Conduct Authority, and (3) the National Crime Agency, in connection with allegations of money laundering from South Africa.
Answered by Lord Bates
The Chancellor of the Exchequer and HM Treasury pass information they receive on specific allegations to the Financial Conduct Authority (FCA), Serious Fraud Office and National Crime Agency as appropriate. This includes information received by the Chancellor from Lord Hain linking HSBC and Standard Chartered to possible money laundering by individuals connected to the Government of South Africa and subsequent allegations in the House of Lords linking the Bank of Baroda. However, these agencies are operationally independent and HM Treasury has no power to direct them in relation to any individual cases.
The European Commission has no direct jurisdiction over allegations of money laundering, so any potential investigations would be taken forward by national competent authorities. The FCA and other agencies have extensive cooperation networks in the EU and internationally. These agencies will be best placed to determine whether they are in possession of information which could usefully be shared with authorities in other states. As a matter of course, they do not comment on discussions with specific firms or regulators.