Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment his Department has made of the impact of buy now, pay later products on the UK’s retail industry.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Woolard Review into the unsecured credit market found several potential risks of consumer detriment from interest-free Buy-Now Pay-Later (BNPL) products. The Government recognises those risks, but also notes that as an interest-free product, BNPL can often be lower-risk than other forms of borrowing and a useful tool to help consumers manage their finances. That is why on 2 February 2021 the Government announced its intention to regulate BNPL products in a proportionate manner.
The Government published a consultation on policy proposals for the regulation of BNPL on 21 October 2021, which closed on 6 January. The consultation sought stakeholder views on how to define the scope of regulation and how to draw boundaries in legislation between different types of credit agreements that make use of the exemption from consumer credit regulation that is currently used by BNPL products.
The Government is now reviewing responses to this consultation and considering next steps and intends to publish a consultation response in the spring.
HMT does not hold information regarding the savings to consumers resulting from the use of BNPL products in 2021, or the impact of BNPL on the UK’s retail industry. Instead, HMT draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate his Department has made of the savings to consumers resulting from the use of buy now, pay later low interest credit schemes in 2021.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Woolard Review into the unsecured credit market found several potential risks of consumer detriment from interest-free Buy-Now Pay-Later (BNPL) products. The Government recognises those risks, but also notes that as an interest-free product, BNPL can often be lower-risk than other forms of borrowing and a useful tool to help consumers manage their finances. That is why on 2 February 2021 the Government announced its intention to regulate BNPL products in a proportionate manner.
The Government published a consultation on policy proposals for the regulation of BNPL on 21 October 2021, which closed on 6 January. The consultation sought stakeholder views on how to define the scope of regulation and how to draw boundaries in legislation between different types of credit agreements that make use of the exemption from consumer credit regulation that is currently used by BNPL products.
The Government is now reviewing responses to this consultation and considering next steps and intends to publish a consultation response in the spring.
HMT does not hold information regarding the savings to consumers resulting from the use of BNPL products in 2021, or the impact of BNPL on the UK’s retail industry. Instead, HMT draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans his Department has to create a definition of buy now, pay later in statute; and whether he has made an assessment of the potential impact of establishing that definition.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Woolard Review into the unsecured credit market found several potential risks of consumer detriment from interest-free Buy-Now Pay-Later (BNPL) products. The Government recognises those risks, but also notes that as an interest-free product, BNPL can often be lower-risk than other forms of borrowing and a useful tool to help consumers manage their finances. That is why on 2 February 2021 the Government announced its intention to regulate BNPL products in a proportionate manner.
The Government published a consultation on policy proposals for the regulation of BNPL on 21 October 2021, which closed on 6 January. The consultation sought stakeholder views on how to define the scope of regulation and how to draw boundaries in legislation between different types of credit agreements that make use of the exemption from consumer credit regulation that is currently used by BNPL products.
The Government is now reviewing responses to this consultation and considering next steps and intends to publish a consultation response in the spring.
HMT does not hold information regarding the savings to consumers resulting from the use of BNPL products in 2021, or the impact of BNPL on the UK’s retail industry. Instead, HMT draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to regulate buy now, pay later products.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Woolard Review into the unsecured credit market found several potential risks of consumer detriment from interest-free Buy-Now Pay-Later (BNPL) products. The Government recognises those risks, but also notes that as an interest-free product, BNPL can often be lower-risk than other forms of borrowing and a useful tool to help consumers manage their finances. That is why on 2 February 2021 the Government announced its intention to regulate BNPL products in a proportionate manner.
The Government published a consultation on policy proposals for the regulation of BNPL on 21 October 2021, which closed on 6 January. The consultation sought stakeholder views on how to define the scope of regulation and how to draw boundaries in legislation between different types of credit agreements that make use of the exemption from consumer credit regulation that is currently used by BNPL products.
The Government is now reviewing responses to this consultation and considering next steps and intends to publish a consultation response in the spring.
HMT does not hold information regarding the savings to consumers resulting from the use of BNPL products in 2021, or the impact of BNPL on the UK’s retail industry. Instead, HMT draws on the research of various stakeholders, including consumer groups and the wider financial services industry, to inform policy development.
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has taken steps to review the corpus of retained EU law, other UK regulations and potential new financial services regulations, for the purposes of improving UK competitiveness; and what steps he is taking to ensure that any such new regulations and legislative changes are introduced in a timely manner.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In his Mansion House statement last July, the Chancellor set out the Government’s vision for an open, competitive, green, and technologically advanced financial services sector. A sweeping set of reforms to sharpen the UK’s competitive advantage in financial services is already underway.
In November, the Government published the second consultation in its Future Regulatory Framework (FRF) Review. This provides a once-in-a-generation opportunity to ensure that, having left the EU, the UK establishes a coherent, agile, and internationally respected approach to financial services regulation that is right for the UK. This includes proposals to repeal a significant volume of retained EU law relating to financial services, so that the financial services regulators can take responsibility for making the appropriate rules in these areas.
As set out in the recent publication, The Benefits of Brexit: How the UK is taking advantage of leaving the EU, the Government is actively seeking out opportunities to tailor the regulation of our financial services sector, within the new framework the FRF Review will deliver, through measures including:
Asked by: Steve Baker (Conservative - Wycombe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent financial provisions he has made, following the implementation of covid-19 Plan B, for businesses within the live events sector.
Answered by Simon Clarke
For businesses within the live events sector, the Live Events Reinsurance Scheme supports events that the general public are able to purchase tickets to - such as music festivals, sporting and business events - that are at risk of being halted or delayed due to an inability to obtain COVID-19 cancellation insurance. Over £800 million in cover will be available to purchase alongside standard commercial events insurance for an additional premium. Cover is being bought by events across the UK. This intervention supports the UK’s economic recovery from the COVID-19 crisis by giving events across the country the confidence they need to plan for the future.
This is a world-leading insurance scheme, backed by a number of prominent insurers in the Lloyd’s market, including Arch, Beazley, Dale, Hiscox and Munich Re, with few countries offering this kind of cover. It builds on our existing offering of support to the industry, including the £500 million Film and TV Production Restart scheme.
The government announced last month that it is making available an additional £30m through the nearly £2 billion Culture Recovery Fund (CRF) to increase the Emergency Resource Support currently available for cultural organisations to apply for. So far more than £1.5 billion has been allocated to around 5,000 individual organisations and sites through the CRF including theatres, orchestras, dance and music venues, supporting live events and performance.