Financial Services: Mansion House Speech

Debate between Stella Creasy and Tulip Siddiq

Monday 18th November 2024 Commons Chamber

[Tulip Siddiq]

I thank the hon. Lady for her comments. I will pass them on to the Financial Secretary to the Treasury, who will look into the matter. I am worried to hear what she says about SMEs; she is absolutely right that they are the heart and soul of our economy—we should be looking into that. I will ensure that he writes to her, but if she needs a further meeting, I am sure he will meet her.

[Ms Stella Creasy (Walthamstow) (Lab/Co-op)]

Members from across the House have long called for financial regulation of “buy now, pay later” companies. Because of the delay in regulating those companies, a third of people seeking debt advice do so because of them. The Woolard report in 2021 identified the urgency of the FCA regulating the industry as soon as possible. I welcome the Government’s commitment to regulating them, but I am bemused, as many are, as to why it will take until 2026 for the regulations to take effect and for our constituents to be protected. Everybody knows that regulation needs to happen, and what the regulations are, and the FCA has been waiting since 2021 to do it—so why are we giving these legal loan sharks two Christmases-worth of presents, and allowing them to exploit our vulnerable constituents in this cost of living crisis?

[Tulip Siddiq]

I thank my hon. Friend for her question. She has done an enormous amount of work in this area, and I applaud her for that. She was instrumental in the Government taking our initial steps to regulate the “buy now, pay later” sector. There is a need for “buy now, pay later” during a cost of living crisis, and people will access those companies’ products, but I have brought this under FCA control so far, and have regulated to ensure that it is safer, and that people do not store up a huge amount of debt that they cannot pay back. The consultation is open until 29 November, and I ask her to urge others to feed into it to ensure that we get this policy right; that was not done by the previous Government. I will bring forward legislation as quickly as possible, but I thought it was important to hear what people and the industry had to say, because we want to regulate properly. She is being patient, and I ask her to be a bit more patient; our intention is to make the sector as well regulated as possible under the FCA.