Asked by: Matt Hancock (Independent - West Suffolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many businesses the Financial Conduct Authority regulated (a) as of 20 May 2024 and (b) in 2016.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Financial Services and Markets Act 2000 establishes the framework for financial services regulation. It provides for the Treasury and Parliament, through legislation, to determine which activities, products and markets are regulated and fall within the remit of the Financial Conduct Authority (FCA). The FCA is responsible for regulating and supervising the financial services industry, including authorising businesses.
The question of how many businesses the FCA regulated is a matter for the FCA, which is operationally independent from Government. The FCA will respond to the Honourable Member by letter on this matter, and a copy of the letter will be placed in the Library of the House of Commons.
Asked by: John Hayes (Conservative - South Holland and The Deepings)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, how much the Competition and Markets Authority has spent on external consultancies in each of the last five years.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
For each of the last five audited financial years, the Competition and Markets Authority has spent the following amount on external consultancies.
Year Amount
2018/19 £239,900.46
2019/20 £541,058.36
2020/21 £585,389.23
2021/22 £733,361.96
2022/23 £786,795.35
Figures for 2023/24 have not been finalised and will be published in the CMA annual report in July 2024 once audited.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he plans to take to support small businesses with cash banking, in the context of closures of physical banks.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
In recognition that cash continues to be used by millions of people across the UK, including those in vulnerable circumstances, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this legislation, the government published a Cash Access Policy Statement. This set out that the vast majority of people should be no further than 1 mile from access to cash deposit and withdrawal services in predominately urban areas, and no further than 3 miles in predominately rural areas. The FCA is required to have regard to this statement when exercising its access to cash powers.
The government considers that this legislation will support businesses to continue accepting cash by ensuring they have reasonable access to deposit facilities.
The FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to take legislative steps to help ensure public access to cash.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
In recognition that cash continues to be used by millions of people across the UK, including those in vulnerable circumstances, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities.
Following this legislation, the government published a Cash Access Policy Statement. This set out that the vast majority of people should be no further than 1 mile from access to cash deposit and withdrawal services in predominately urban areas, and no further than 3 miles in predominately rural areas. The FCA is required to have regard to this statement when exercising its access to cash powers.
The government considers that this legislation will support businesses to continue accepting cash by ensuring they have reasonable access to deposit facilities.
The FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to bring forward legislative proposals to reinforce the status of cash as legal tender.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The forms of payment that are accepted should remain the choice of individual businesses , based on their consideration of factors such as customer preference and cost.
Nevertheless, the Government recognises that cash continues to be used by millions of people across the UK. The Financial Services and Markets Act 2023 established a new legislative framework to protect access to cash for consumers and businesses.
Asked by: Lord Tyrie (Non-affiliated - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government in each of the past three years how many times (1) OFCOM, (2) OFGEM, (3) the Competition and Markets Authority, and (4) the Financial Reporting Council, have exercised the power to disclose the identity of persons under investigation.
Answered by Lord Johnson of Lainston - Minister of State (Department for Business and Trade)
The subject of OFCOM’s investigations are services rather than individual persons. The details of these investigations are published on OFCOM’s website.
OFGEM also publishes details of its investigations on its website.
The Competition and Markets Authority exercised the power to identify persons under investigation in seven cases in 2021; ten cases in 2022; and in five cases in 2023. In some of these cases multiple parties have been identified.
The Financial Reporting Council has not exercised the power in any of the past three years.
Asked by: Duncan Baker (Conservative - North Norfolk)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential impact of trends in the number of ATM closures on (a) access to and (b) the depositing of cash.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Currently, LINK (the scheme that runs the UK's largest ATM network) has commitments to protect the broad geographic spread of free-to-use ATMs and is held to account against these commitments by the Payment Systems Regulator. LINK has committed to protect free-to-use ATMs more than one kilometre away from the next nearest free ATM or Post Office, and free access to cash on high streets (where there is a cluster of five or more retailers) that do not have a free-to-use ATM or a Post Office counter within one kilometre.
LINK publishes monthly statistics on its ATM network on its website https://www.link.co.uk/initiatives/financial-inclusion-monthly-report/#:~:text=LINK%20has%20also%20committed%20to,commitment%20can%20be%20found%20here.
However, in recognition that cash continues to be used by millions of people across the UK, including those who may be in vulnerable groups, the government legislated through the Financial Services and Markets Act 2023 to establish a new legislative framework to protect access to cash. This establishes the Financial Conduct Authority (FCA) as the lead regulator for access to cash and provides it with responsibility and powers to seek to ensure reasonable provision of cash withdrawal and deposit facilities. The FCA recently held a consultation on its proposed regulatory approach: FCA Access to Cash Consultation. The FCA is currently considering feedback and expects to publish its final rules in the third quarter of this year.
Asked by: Justin Madders (Labour - Ellesmere Port and Neston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of the reduction in numbers of credit unions.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government is a strong supporter of credit unions, recognising the vital role they play in local communities throughout the country.
Through the Financial Services and Markets Act 2023, the Government allowed credit unions in Great Britain to offer a wider range of products and services, diversifying their income streams and enhancing their role in financial inclusion.
According to the latest data from the PRA, credit union membership in Great Britain has increased for the fifth consecutive quarter, reaching a record level of over 1.5 million. Their total assets have also increased to over £2.67 billion.
The Government continues to engage with the credit union sector to assess how they can best be supported moving forward.
Asked by: Rachel Maclean (Conservative - Redditch)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of the potential impact of capping existing ground rents (a) to a peppercorn, (b) to £250 per annum and (c) in another way on the operation of (i) pension funds and (ii) financial markets.
Answered by Lee Rowley - Minister of State (Minister for Housing)
The Government’s consultation on restricting ground rents for existing leases ran from 8 December to 17 January.
Whilst we will publish a full response shortly, we can confirm that the general response to the consultation has confirmed that ground rents represent, at most, a small percentage of total UK pension assets. In addition, no substantive evidence has been provided within the consultation that suggests that there is a systemic risk to the operation of pension funds or the financial markets. Even the sector itself, in its so-called “option 6” alternative, has recognised the necessity of reform in this policy area.
Having concluded the consultation and reviewed the responses provided, we intend to set out the future proposed approach in this policy area shortly.
Asked by: Rachel Maclean (Conservative - Redditch)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what estimate he has made of the potential impact of capping ground rent to (a) a peppercorn and (b) £250 on the returns of UK pension funds.
Answered by Lee Rowley - Minister of State (Minister for Housing)
The Government’s consultation on restricting ground rents for existing leases ran from 8 December to 17 January.
Whilst we will publish a full response shortly, we can confirm that the general response to the consultation has confirmed that ground rents represent, at most, a small percentage of total UK pension assets. In addition, no substantive evidence has been provided within the consultation that suggests that there is a systemic risk to the operation of pension funds or the financial markets. Even the sector itself, in its so-called “option 6” alternative, has recognised the necessity of reform in this policy area.
Having concluded the consultation and reviewed the responses provided, we intend to set out the future proposed approach in this policy area shortly.