Asked by: Maureen Burke (Labour - Glasgow North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps her Department is taking to (a) help increase the number of banking hubs and (b) protect access to free-to-use cash machines in high-deprivation areas in Glasgow.
Answered by Rachel Blake
The way people across the UK use retail banking services has changed significantly, with many customers now choosing to bank online. In response, banks and building societies have reshaped their branch networks, reflecting changing customer preferences.
However, the Government understands the importance of banking services to communities and high streets and is committed to supporting the financial services industry’s roll-out of 350 banking hubs by the end of this Parliament. Banking hubs are a voluntary service which were developed by the financial services sector in the context of legislation to protect access to cash under the Financial Services and Markets Act 2023.
Over 275 hubs have been announced so far, and more than 235 are already open. The Government continues to engage with industry on ways to improve the consistency and level of services provided through banking hubs.
On 14 May the Government commissioned an independent Review into Access to Banking Services to assess whether changes in access to in-person banking services are causing consumer detriment, the scale of any detriment, and who it affects.
The evidence collected by the Review will inform future decisions on whether further action is needed. Alongside the Review, the Financial Services and Markets Bill includes a power to allow the Government to take action in future to protect access to banking services, should this be necessary. This power ensures the Government can act swiftly and proportionately, including through future regulation, if the evidence from the Review supports intervention.
The Government also recognises that cash continues to be used by millions of people across the UK, including those in vulnerable groups, and is committed to protecting access to cash for individuals and businesses.
Under the Financial Services and Markets Act 2023, the Financial Conduct Authority (FCA) has responsibility and powers to protect access to cash, including free facilities for personal current account holders. The FCA’s most recent data shows that 99.2% of the urban population live within 1 mile of a free to use cash access point offering withdrawals. In rural areas, 98.5% of people live within 3 miles of a free to use cash access point offering withdrawals.
HMT launched the Access to Banking Services Review Call for Evidence on 8 June and will run for 6 weeks, closing on 20 July, inviting input from consumers, businesses, charities, community groups, local authorities and industry across the UK. The evidence will inform recommendations, with findings due in October. Responses can be submitted here: https://www.gov.uk/government/consultations/access-to-banking-services-review-call-for-evidence.
Asked by: Maureen Burke (Labour - Glasgow North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure individuals with large liabilities under the Loan Charge are given adequate support, particularly in cases involving financial and personal distress.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
The Government recognised that concerns continued to be raised about the loan charge and that some felt strongly that it had not been handled appropriately. The Government therefore commissioned an independent review of the loan charge to bring the matter to a close for those who had not settled and paid their loan charge liabilities.
The Government accepted all but one of the independent review’s recommendations and in some cases is going further. The Government’s decision to write off £5,000 from everyone’s liability will mean that around a third will have their liabilities written off entirely. Most people will see reductions in their liabilities of at least 50%.
HMRC will continue to work with taxpayers to resolve their cases in line with existing legislation and case law. HMRC is committed to working sensitively and pragmatically with taxpayers to reach settlement. This includes offering flexible payment terms where people need more time to pay their liabilities.
The Government takes the wellbeing of all taxpayers very seriously. Vulnerable customers can make use of HMRC’s well-established Extra Support Service.
Asked by: Maureen Burke (Labour - Glasgow North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will confirm that ticket sales for prize draws offering both paid and free entry routes – as set out by the voluntary Code of Conduct published by the Department for Culture, Media and Sport – are subject to VAT under the Value Added Tax Act 1994.
Answered by Dan Tomlinson - Exchequer Secretary (Cabinet Office) (Jointly with HM Treasury)
HMRC confirm that prize draws offering both paid and free entry routes are not eligible for VAT exemption and paid entries will be subject to VAT at the standard rate of 20%.
Asked by: Maureen Burke (Labour - Glasgow North East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of providing funding from the Growth Mission fund to Springburn Winter Gardens.
Answered by Darren Jones
In her recent Spending Review speech, the Chancellor announced that the Government would be establishing a Growth Mission Fund to expedite local projects that are important for growth.
Whilst we cannot confirm funding allocations yet, our £240 million Growth Mission Fund should support transformative projects that give local leaders real investment to deliver real change.
Details regarding funding criteria will be set out in due course.