Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential economic impact on Scottish communities of the estimated £551 million shortfall between the Financial Conduct Authority's proposed motor finance redress scheme pay outs and potential court awards as outlined in the APPG on Fair Banking Report on Car Finance redress published in November 2025.

The Government wants to see this issue resolved in an efficient and orderly way that provides certainty for consumers and firms.

The Financial Conduct Authority (FCA), as the independent regulator, has consulted on proposals for a motor finance consumer redress scheme. The FCA has announced that it will set out its final approach to motor finance redress on 30 March: https://www.fca.org.uk/news/statements/timing-fca-motor-finance-announcement.