Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take legislative steps to (a) increase competition and (b) reduce monopolies in the consumer insurance market.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Government is committed to ensuring that the insurance industry operates on a fair and competitive basis.
The Financial Conduct Authority (FCA), as the independent regulator, has a primary objective to ensure relevant markets are functioning well and a secondary objective to promote effective competition in the interests of consumers.
The FCA has robust powers to tackle anti-competitive practices, working with the Competition and Markets Authority where required. The Government is confident that both regulators are effective in their oversight of the insurance market.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to support farm owners to (a) diversify their businesses and (b) improve their financial security by providing accommodation for furnished holiday lettings on their farms.
Answered by James Murray - Exchequer Secretary (HM Treasury)
The Government is supporting farmers and land managers to adapt their business models and access tailored support to do so through the agricultural transition, including through diversification. For example, farmers can access free business advice through the Farming Resilience Fund.
The Government recognises that many farmers may choose to let out part of their estates as furnished holiday lettings (FHLs). Nevertheless, while the government recognises the important role that FHLs have, including those located on farms, in the visitor economy, tax rules currently privilege short-term lets over long-term rentals. The Government will therefore abolish the FHL tax regime from April 2025,which will equalise the tax treatment of landlords’ property income and gains.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will hold discussions with the Financial Conduct Authority on the additional costs to consumers of paying (a) vehicle and (b) household insurance in monthly instalments; and if he will make an assessment of the potential impact of such costs on people on lower incomes.
Answered by Bim Afolami
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors, including the financial services regulators, on an ongoing basis.
The Government does not prescribe the terms, conditions or price that insurance companies set when offering insurance. Insurers make commercial decisions about the pricing of insurance following their assessment of the relevant risks. The Government does not intervene in these decisions as this could damage competition in the market.
The Financial Conduct Authority (FCA) is the independent regulator responsible for supervising the insurance industry. The FCA requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will launch a consumer review of the car insurance market for the purposes of understanding the (a) adequacy of levels of competition and (b) comparative pricing structures between companies.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The motor insurance market has many providers offering a variety of insurance products to suit the needs of customers. The Financial Conduct Authority (FCA), as the independent regulator for financial services, has a statutory objective to promote competition in the interests of consumers, and, working closely with the Competition and Markets Authority, can enforce against breaches of competition law. The FCA have also introduced several reforms, including the Consumer Duty rules, to ensure consumers are treated fairly in regard to pricing.
Insurers make commercial decisions about the terms, conditions or price that they set when offering insurance, including motor insurance. The Government does not intervene in these commercial decisions by insurers as this could damage competition in the market.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to amend the Vehicle Excise Duty rules so that it is based on the fuel type and level of CO2 emissions of a motorcycle rather than its engine size.
Answered by James Cartlidge - Shadow Secretary of State for Defence
VED for motorcycles is currently based on engine size. The current rates range from £20 to £101 for those with the largest engines, which in part aims to reflect the environmental benefits of using smaller engines.
The Chancellor announced in his 2022 Autumn Statement that electric motorcycles will begin to pay VED from April 2025.
While there are no current plans to further reform the VED system for motorcycles, as with all taxes, VED remains under review and any changes are considered and announced by the Chancellor.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will have discussions with the retail banking sector on improving customer service standards and reducing social and banking exclusion for customers with learning disabilities and special educational needs.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The Government is committed to improving access to financial services, especially for those with a characteristic of vulnerability, and regularly engages with the retail banking sector on this important agenda.
As part of this, the Government recognises that access to a transactional bank account is key to enabling people to manage their money on a day-to-day basis effectively, securely and confidently. That is why the nine largest personal current account providers in the UK are legally required to offer basic bank accounts to customers who do not have a bank account or who are not eligible for a bank's standard current account. Basic bank accounts must be fee-free and do not have an overdraft facility or cheque book, but otherwise offer the same services as a standard personal current account.
UK banks’ and building societies’ treatment of their customers is governed by the Financial Conduct Authority (FCA) in its Principles for Businesses. This includes a general requirement for firms to provide a prompt, efficient and fair service to all of their customers.
The FCA’s Vulnerability Guidance outlines the expectations for firms on the fair treatment of vulnerable customers, such as those with learning disabilities and special educational needs, setting out a number of best practices. The FCA expects that firms treat these customers fairly and support them to continue to interact with financial services in a way that best works for them.
In addition, like all service providers, banks and building societies are bound under the Equality Act 2010 to make reasonable adjustments, where necessary, in the way they deliver their services.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to establish a Sovereign Wealth Fund.
Answered by John Glen - Shadow Paymaster General
The immediate focus for the UK Government’s economic and fiscal strategy is on ensuring that it continues to support workers and businesses as the UK recovers from the COVID-19 pandemic. Although both borrowing and debt will rise this year, the costs of servicing this debt are affordable and sustainable. The Government will set out further details on its plans for a sustainable and balanced fiscal policy as the economic and fiscal outlook becomes clearer.
In relation to establishing a sovereign wealth fund, the Government remains open to the introduction of new financing instruments but would need to be satisfied that they would meet value-for-money criteria and would be consistent with wider fiscal objectives. The Government continues to monitor the case for new financing instruments and will keep this under review.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to establish a crypto currency reserve bank in the UK.
Answered by John Glen - Shadow Paymaster General
The government has no plans to establish a crypto currency reserve bank.
The Treasury and the Bank of England are continuing analytical work to evaluate the possible opportunities and risks associated with a UK central bank digital currency, and of central bank digital currency initiatives being undertaken elsewhere. The Bank of England published a discussion paper on a possible UK central bank digital currency alongside the Budget in March 2020, which closed for responses on 12 June. The Treasury and Bank of England are considering next steps.
The government is also considering how it can support innovation and mitigate risks posed by cryptoassets. The Treasury recently launched a consultation looking at the broader regulatory approach to cryptoassets, including new challenges from so-called ‘stablecoins’. It closes for responses on 21 March.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to reduce the number of cash only proprietors in the retail sector in order to increase revenues for the public purse.
Answered by John Glen - Shadow Paymaster General
The Government’s view is that it remains the choice of individual retailers as to whether to accept any form of payment method, including cash, card or other digital payments.
The Government recognises the importance of cash to the daily lives of millions of people across the UK. That is why Government committed at March Budget 2020 to bring forward legislation to protect access to cash for those who need it. To inform the development of this legislation, the Government published a Call for Evidence on 15 October seeking views on the key considerations associated with cash access, including deposit and withdrawal facilities, cash acceptance, and regulatory oversight of the cash system.
Asked by: Mark Pritchard (Conservative - The Wrekin)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an economic assessment of the potential merits of establishing a UK digital currency reserve bank.
Answered by John Glen - Shadow Paymaster General
The government set out at Budget that the UK will continue to take a leading role in exploring central bank digital currencies (CBDCs), and the wide-ranging opportunities and challenges they could bring.
The Bank of England’s discussion paper on a possible UK central bank digital currency was published at the time of the Budget and closed for responses on 12 June.
HM Treasury and the Bank of England are now working together to consider next steps.