Asked by: Tim Roca (Labour - Macclesfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what her policy is on (a) access to cash, (b) businesses being required to use cash and (c) helping vulnerable people reliant on cash infrastructure adapt to a cashless society.
Answered by Tulip Siddiq - 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 Financial Conduct Authority has recently assumed regulatory responsibility for protecting access to cash, and its new rules went live on 18 September. The rules require the UK’s largest banks and building societies to assess the impact of a closure of a relevant cash withdrawal or deposit facility and put in place a new service if necessary.
It is for each business to decide on the forms of payment it chooses to accept, based on a variety of factors, including cost and customer preferences. Research published by the Financial Conduct Authority found that 98 per cent of small businesses surveyed would never turn customers away if they needed to pay in cash. The new rules by the Financial Conduct Authority will also support businesses to accept cash by ensuring they have reasonable access to deposit facilities.
The Government also recognises that promoting digital inclusion is essential to building the skills and confidence people need to participate in a modern digital economy and the Department for Science, Innovation and Technology, as the lead department, is considering barriers to this.
Asked by: Tim Roca (Labour - Macclesfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the recommendations of the International Monetary Fund in its report entitled New Perspectives on Quantitative Easing and Central Bank Capital Policies, published on 17 May 2024, whether she plans to review the treatment of QE/QT profits and losses.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Asset Purchase Facility (APF) is indemnified by HM Treasury so that all profits and losses accrued in the APF are owed to, or borne by, HM Treasury. This is in line with its financial relationship with the Bank and supports the Bank’s operational independence by allowing the MPC to make decisions on asset purchases without being constrained by the financial risk of the operations.
The advantages of HM Treasury’s indemnity arrangements were outlined in the Autumn Statement 2023 in Box 1.E, and are in line with best practice as set out in a recent IMF working paper.
https://www.gov.uk/government/publications/autumn-statement-2023
Excess cash from asset purchases between 2009 and 2012 initially accrued in the APF. When it became clear that asset purchases under QE were being held for longer and at a larger scale than initially envisaged, the government decided to normalise the cash management arrangements such that any excess cash would be transferred to the Treasury on a quarterly basis. The cash transfers from the APF to the Treasury that took place until 2022 helped reduce the government’s cash requirement and the amount of gilts that would need to be issued by the DMO, therefore reducing the government’s future debt interest costs and supporting the overall position of the public finances. Cashflows were always expected to reverse as quantitative easing is unwound and gilts are sold back into the market.
Asked by: Tim Roca (Labour - Macclesfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to introduce VAT on school fees for vocational music and dance schools where the funding is provided by the Music and Dance Scheme.
Answered by James Murray - Exchequer Secretary (HM Treasury)
On 29 July, the Government announced that, as of 1 January 2025, all education services and vocational training provided by a private school in the UK for a charge will be subject to VAT at the standard rate of 20 per cent. This includes vocational music and dance schools where funding is provided by the Music and Dance Scheme.
Where parents or families are paying fees for their child to attend a private music or dance school, they will pay VAT on those fees following this change. The right time to consider any changes to schemes like the Music and Dance Scheme is at the Spending Review.
Asked by: Tim Roca (Labour - Macclesfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what her planned timetable is for rolling out banking hubs in communities affected by branch closures.
Answered by Tulip Siddiq - Economic Secretary (HM Treasury)
The Government recognises the importance of banking to communities and high streets and has committed to work closely with banks to roll out at least 350 banking hubs over the next five years.
147 banking hubs have already been recommended and Cash Access UK, the industry body responsible for banking hub deployment, expects 100 banking hubs to be open before the end of the year. These will provide individuals and businesses up and down the country with critical cash and banking services.
While not the same as a bank branch, alternative options to access everyday banking services can also include telephone banking, through digital means such as mobile or online banking, and via one of the UK’s 11,500 Post Office branches.