Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that (a) banks and (b) other payment service providers do not terminate contracts on the grounds of clients having expressed a view that is within the scope of lawful free speech.

On 21 July, the Government confirmed that it would strengthen regulations overseeing banks and payment service providers to increase the minimum notice period in cases of provider-initiated contract terminations from 2 months to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement bank. Providers will also be required to spell out to the affected customer why they are terminating their contract – increasing transparency and aiding customers’ ability to appeal decisions. This requirement will be subject to limited exceptions where firms need to comply with existing legal obligations, for example, under financial crime law.

As set out in its follow-up statement on 2 October, the Government continues to work with the regulators, law enforcement and industry to support the implementation of these changes, and will publish draft secondary legislation to enact these changes to statute by the end of the year.