Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with stakeholders on access to cash; and which stakeholders he has met on that issue in the last six months.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure people have access to banks and cash withdrawals during the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In response to Covid-19, banks, building societies, credit unions and Post Offices are working with the Treasury and the financial regulators to maintain access to their services, including access to cash, while balancing the needs of their customers with the safety and welfare of staff. The vast majority of branches are open, though many are open for reduced hours. The Financial Conduct Authority has issued guidance to regulated firms, including on provision to allow a trusted third party to make payments on behalf of vulnerable customers who may be shielding or self-isolating.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance HMRC has issued to businesses on placing employees on temporary contracts for services on the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
Guidance has been issued for employers with employees on temporary contracts and was most recently updated on 1 July 2020. The guidance can be found at: https://www.gov.uk/guidance/check-which-employees-you-can-put-on-furlough-to-use-the-coronavirus-job-retention-scheme.
Further guidance has been provided for employers to calculate an employee’s usual hours, including those who are paid by reference to services performed. This can be found under the ‘work out your employee’s usual hours if they are paid per task or piece of work done’ section of the following guidance which was most recently updated on 1 July 2020: https://www.gov.uk/guidance/steps-to-take-before-calculating-your-claim-using-the-coronavirus-job-retention-scheme.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the covid-19 outbreak on the UK’s cash infrastructure.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that widespread access to cash is extremely important to the daily lives of millions of people across the UK. The Government is engaging with the financial regulators, including through the Joint Authorities Cash Strategy Group, to monitor the impact of COVID-19 on the UK’s cash infrastructure and remains committed to protecting access to cash for those who need it, while supporting digital payments.
At the March 2020 Budget, the Chancellor announced that the Government will bring forward legislation to protect access to cash. This will ensure that those who continue to rely on cash can continue to do so in the long-term.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with the (a) Financial Conduct Authority and (b) Payment Systems Regulator on a minimum service guarantee for cash; and what the planned timescale is for the introduction of new legislation protecting access to cash announced in Budget 2020.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains extremely important to the daily lives of millions of people across the UK. The Government remains closely engaged with the financial regulators to monitor and assess risks around cash access and acceptance resulting from COVID-19. This includes working closely with industry to ensure access to cash.
At the March 2020 Budget, the Chancellor announced that the Government will bring forward legislation to protect access to cash in the longer-term. The Government is engaging with regulators – the Payment Systems Regulator, Financial Conduct Authority and Bank of England – and stakeholders across industry while designing legislation, to ensure the needs of cash users continue to be met. Further details on timing for legislation will be set out in due course.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support his Department is providing to people who require access to offline or face-to-face banking during the covid-19 outbreak.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Banks, building societies, the Post Office and credit unions are working closely with the Treasury and the financial regulators to maintain branch access for essential services while balancing the needs of their customers with the safety and welfare of staff. The vast majority of branches are open, though many are open for reduced hours.
Banks, building societies and credit unions are keeping their websites up to date and we would encourage customers, wherever possible, to use online services for their banking. If customers are not able to use online forms of banking, they may choose to use telephone banking rather than using a branch. The Government advises any customer who has questions or concerns about their banking to contact their provider.
Bank customers can also use the Post Office for essential banking services as an alternative to their branch and can continue to use ATMs or cash machines as normal for cash withdrawals and balance enquiries. Furthermore, several retail banks have in place solutions for vulnerable customers who may be self-isolating, including making payments through a trusted person.
Furthermore, several retail banks have in place solutions for vulnerable customers who may be self-isolating, including making payments through a trusted person.Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of retailers refusing cash as a result of the covid-19 outbreak; and what progress has been made on bringing forward legislative proposals to protect consumer access to cash.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that cash remains extremely important to the daily lives of millions of people across the UK. The Government remains closely engaged with the financial regulators to monitor and assess risks around cash access and acceptance resulting from COVID-19. This includes working closely with industry to ensure access to cash.
At the March 2020 Budget, the Chancellor announced that the Government will bring forward legislation to protect access to cash in the longer-term. The Government is engaging with regulators – the Payment Systems Regulator, Financial Conduct Authority and Bank of England – and stakeholders across industry while designing legislation, to ensure the needs of cash users continue to be met. Further details on timing for legislation will be set out in due course.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with (a) businesses and (b) trade unions on (i) the Coronavirus Job Retention Scheme and (ii) reports of businesses re-hiring former employees and then placing those employees on furlough; and if he will make a statement.
Answered by Jesse Norman
The Treasury has discussions with a range of stakeholders, including business groups, trade union representatives, and more widely.
The Government values the diversity of views that these groups provide in the policy development process, including that of the Coronavirus Job Retention Scheme.
Rehired employees may be furloughed in certain circumstances. More information, including eligibility criteria, is available in the GOV.UK guidance.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure businesses who do not bank with a high street provider are able to apply for a Bounce Bank Loan.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
Under the new Bounce Back Loan Scheme (BBLS), launched on 4 May, businesses can apply for a loan from £2,000 up to £50,000, capped at 25% of a firm’s turnover. The Government will cover the first 12 months of interest payments charged to the business by the lender, and no repayments are due by the business during this period. The interest rate after the first 12-month period has been agreed between the Government and lenders at 2.5%, ensuring that the smallest businesses can access the finance they need in a matter of days.
There are 16 lenders that are offering loans under the scheme. More details on participating lenders can be found here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/current-accredited-lenders-and-partners/
Any lender that wishes to become accredited to offer Bounce Back Loans should contact the British Business Bank, who administer the scheme.
Asked by: Ronnie Cowan (Scottish National Party - Inverclyde)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions officials in his Department have had with (a) stakeholders and (b) representatives from the Financial Conduct Authority on the review of the calculation of the Financial Services Compensation Scheme levy.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Financial Services Compensation Scheme (FSCS) is an independent non-governmental body. The FSCS carries out its compensation function within rules set by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), who are also independent from government.
The FSCS levy is set annually by the FSCS within the limits set by the FCA and PRA. It is for the FCA and PRA to consider the impact of the levies on the firms they regulate, acting in line with their statutory duties. The Government has no role in setting the levy.