Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of the decline of free to use ATMs in Rotherham on residents.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The government recognises that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups.
The government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities. Importantly, in relation to personal current accounts the FCA is required to seek to ensure reasonable provision of free cash access services.
The FCA is currently holding a consultation on its proposed regulatory approach ahead of this coming into effect by Q3 2024: FCA Access to Cash Consultation
LINK (the scheme that runs the UK's largest ATM network) has commitments to protect the broad geographic spread of free-to-use ATMs and is held to account against these commitments by the Payment Systems Regulator. LINK has committed to protect free-to-use ATMs more than one kilometre away from the next nearest free ATM or Post Office, and free access to cash on high streets (where there is a cluster of five or more retailers) that do not have a free-to-use ATM or a Post Office counter within one kilometre.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Government response to the Eighth Report of the International Development Committee, Debt relief in low-income countries, HC 1393, published on 8 June 2023, what the evidential basis is for the conclusion that a legislative approach to debt relief could have unintended consequences in terms of access to finance for developing countries.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government’s policy position on private sector participation in debt relief initiatives, including a legislative approach, has been informed by extensive engagement with a diverse range of stakeholders with an interest in sovereign debt. These included representatives from the private sector, international governments, civil society organisations and academics. The Government has also previously consulted extensively on this issue.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made a recent assessment of the potential merits of linking the UK carbon border adjustment mechanism to the EU carbon border adjustment mechanism.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The government has recently consulted on potential future measures to mitigate carbon leakage risks, including the potential for a UK Carbon Border Adjustment Mechanism (CBAM). The consultation closed on 22 June 2023, and the government will respond to the consultation in due course.
In May 2023, the EU formally adopted their EU CBAM Regulation, which will start with a transitional (reporting) phase from 1 October 2023. The EU CBAM charge will not come in until 1 January 2026.
Full details of the EU CBAM will be known when the EU adopt the required implementing and delegated acts. UK officials are continuing to closely monitor this process and are waiting to see these before building a full understanding of potential impacts on UK businesses and any interactions with domestic policy
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of removing VAT on pet food for 12 months to help support pet owners who are adversely affected by the rise in inflation.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
VAT has been designed as a broad-based tax on consumption, and the twenty per cent standard rate applies to the majority of goods and services. Pet food attracts the standard rate of VAT.
Introducing any new VAT reliefs would come at a cost to the Exchequer and any changes should be seen in the context of over £50 billion worth of requests for relief from VAT received since the EU referendum. Given this, there are no plans to change the current VAT treatment of pet food. Nevertheless, the Government keeps all taxes under constant review.
More widely, the Government understands that people are worried about the cost of living challenges ahead. That’s why decisive action has been taken to support households across the UK whilst remaining fiscally responsible. The Government has announced further support for next year designed to target the most vulnerable households. This cost of living support is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what targeted support his Department provides to ensure blind and partially sighted people can meet the rising cost of living.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government recognises that the rising cost of living has presented additional financial challenges to many people, and especially to the most vulnerable members of society, such as blind or partially sighted people. That is why the Government is taking decisive action to get households through this winter, while ensuring we act in a fiscally responsible way.
People who are blind or partially sighted and in receipt of extra-costs disability benefits such as Personal Independence Payment (PIP) or Disability Living Allowance (DLA) will receive a one-off Disability Cost of Living Payment of £150 from 20th September, to help with the rising cost of living. The DWP has already processed around 6 million such payments. This payment can be received in addition to the other £650 Cost of Living Payment for households on means-tested benefits that was announced as part of the same package. Individuals who have limited or no ability to work because of their disability or health condition, and are in receipt of means-tested benefits such as income-related Employment and Support Allowance or the Universal Credit Health top up, are eligible for this support.
People who are blind or partially sighted will also benefit from other forms of non-means-tested support which the Government is providing to assist with household energy bills. We have taken decisive action to support millions of households with rising energy costs this winter through the Energy Price Guarantee, which limits the price suppliers can charge customers for units of gas and electricity. In addition to the Energy Price Guarantee, millions of the most vulnerable households will receive further support this year through the £400 Energy Bills Support Scheme. The £150 Council Tax rebate will also mean that all households in Council Tax bands A-D will receive a rebate, and 99% of eligible households have already received this. Lastly, to support households who need further help or who are not eligible for elements of the wider package of support, the Government is also providing an extra £500 million of local support to help with the cost of essentials until the end of March 2023, via the Household Support Fund.
This cost of living support is in addition to the existing specific financial support to help blind or partially sighted people. The Government provides the Blind Person's Allowance (BPA), an extra amount of tax-free allowance that can be added to an individual’s Personal Allowance, to those who are blind or severely sight impaired. In 2022-23, the allowance is £2,600 and therefore worth £520 given the basic rate of 20%. If the recipient does not pay tax or earn enough to use their full BPA, the remainder of the allowance can be transferred to a spouse or civil partner.
We are continuing to keep the situation under review and are focusing support on the most vulnerable whilst ensuring we act in a fiscally responsible way.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to paragraph 4.46 of the Autumn Budget and Spending Review 2021, on the settlement for the Conflict, Stability and Security Fund, what estimate he has made of (a) how much and what proportion of the settlement for that Fund will be (i) Official Development Assistance (ODA) and (ii) non-Official Development Assistance, (b) how much of the settlement for that Fund will be allocated to tackle the increased threat posed by the deterioration of the security in Afghanistan and (c) how much and what proportion of that Fund’s ODA settlement will be spent on (A) discretionary and (B) non-discretionary activities.
Answered by Simon Clarke
The Conflict, Stability and Security Fund will receive £355.2m ODA in 2022-23; £360.7m in 2023-24; and £366.3m in 2024-25. ODA makes up 40% of the Fund’s 2022-23 settlement and 41% in future years. £82.0m (c. 23%) of the Fund’s ODA is allocated for non-discretionary pressures in each year. The Fund will also receive £522.3m non-ODA in 2022-23; £522.7m in 2023-24; and £523.0m in 2024-25. Non-ODA makes up 60% of the Fund’s settlement in 2022-23 and 59% in later years.
Portfolio allocations, including for tackling increased threats from the deterioration of the situation in Afghanistan, will be decided by the National Security Council and its sub-committees.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the International Capital Markets Association Green Bonds Principles including nuclear energy, and the Government’s Green Financing Framework excluding nuclear energy, if he will reconsider the exclusion of nuclear energy from the Green Financing Framework.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The government recognises that reaching net zero emissions by 2050 will require power to be generated from low carbon sources. As set out in the Government’s Energy White Paper last autumn, nuclear power will play an important role in achieving net zero. The UK Government Green Financing Framework explicitly states that nuclear power is, and will continue to be, a key part of the UK’s low-carbon energy mix.
Some energy sources have been excluded from the UK Government Green Financing Framework, including nuclear energy. This is in line with current international market standards for sovereign green bonds. The Green Bond Principles published by the International Capital Market Association do not address the question of nuclear energy. All other major sovereigns have explicitly excluded nuclear energy in their green bond frameworks.
The UK Government Green Financing Framework does not represent an assessment of what the government considers ‘green’ or affect an expenditure’s eligibility for traditional financing instruments. We will review the framework on a regular basis with the aim of adhering to best practices in the market.
The Government is developing a UK green taxonomy, which will create a shared understanding of which economic activities count as environmentally sustainable and will establish an Energy Working Group to provide expert advice on the treatment of energy in the taxonomy, including nuclear power.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions he has had with private creditors on bringing them to the negotiating table to ensure that the Common Framework delivers adequate debt restructuring for countries such as Zambia with high levels of private debt.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In November 2020, the UK and other G20 Finance Ministers and the Paris Club agreed a new Common Framework for Future Debt Treatments. This applies to 73 of the poorest countries in the world and, for the first time, brings together Paris Club and major non-Paris Club creditors to provide joined up debt treatments where required.
The Common framework is an internationally agreed initiative and does not impact the rights of private creditors under UK law. However, under the Framework, debtors will be required to secure a debt treatment from their private creditors on at least as favourable terms as from their official sector creditors.
As G7 president, the UK will push to ensure the full implementation of the Common Framework. I strongly expect all private creditors to provide the debt relief needed to ensure debt sustainability for those countries who request a debt treatment, and we will engage regularly with the private sector to ensure their appropriate participation in restructurings.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the (a) adequacy of the Common Framework for debt relief in preventing private creditors using UK law to sue for unpaid debts and (b) implications for his policy on debt relief of 90 per cent of African debt being held under UK law.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In November 2020, the UK and other G20 Finance Ministers and the Paris Club agreed a new Common Framework for Future Debt Treatments. This applies to 73 of the poorest countries in the world and, for the first time, brings together Paris Club and major non-Paris Club creditors to provide joined up debt treatments where required.
The Common framework is an internationally agreed initiative and does not impact the rights of private creditors under UK law. However, under the Framework, debtors will be required to secure a debt treatment from their private creditors on at least as favourable terms as from their official sector creditors.
As G7 president, the UK will push to ensure the full implementation of the Common Framework. I strongly expect all private creditors to provide the debt relief needed to ensure debt sustainability for those countries who request a debt treatment, and we will engage regularly with the private sector to ensure their appropriate participation in restructurings.
Asked by: Sarah Champion (Labour - Rotherham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what proportion of debt owed by countries eligible for G20 Common Framework on Debt Treatments applies to (a) non-official creditors owed to entities resident in the UK and (b) private creditors governed by English law as at 7 December 2020.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The UK strongly supports the Common Framework for future debt treatments which will facilitate quicker and simpler restructurings where required. A total of 77 of the least developed countries are eligible for treatment under the Common Framework.
Under the Common Framework, private sector creditors will be required to implement debt restructurings that are at least equivalent to those agreed by official creditors.
We do not hold a breakdown of the proportion of these countries’ debt that is owed to private creditors governed by English law or entities resident in the UK. However, in 2019 the IMF assessed that 45% of the total outstanding stock of international sovereign bonds by nominal principal amount are governed under English law.