Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the risks to the economy posed by the growth of personal contract purchase finance deals for new car sales.

The government established an independent Financial Policy Committee (FPC), giving the FPC a primary objective to identify, monitor and take action to remove or reduce systemic risks with a view to protecting and enhancing financial stability. Following its most recent policy meeting on 21 June, the FPC published the Financial Stability Report (FSR). The FSR assessed recent trends in the consumer credit market including dealership car finance. The FSR noted that consumer credit and dealership car finance has been growing rapidly, but that loss rates on consumer credit lending are low at present.