Asked by: Sally-Ann Hart (Conservative - Hastings and Rye)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what protection beyond saltmarsh and seagrass is in place for blue carbon habitats; and whether he is taking steps to encourage private sector investment in (a) ocean-based regenerative farming and (b) other initiatives to support those ecosystems.
Answered by Rebecca Pow - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
The Government recognises the important role that blue carbon habitats can play in climate change mitigation, adaptation and resilience. These richly biodiverse habitats also provide a crucial buffer from coastal flooding, benefit fish stocks and improve local water quality.
The UK is a global leader in ocean protection and we have taken a number of steps to support blue carbon habitats. 40% of UK waters are in Marine Protected Areas (MPAs) which cover the majority of our saltmarsh and seagrass habitats. Our focus is now on ensuring that these MPAs are effectively protected. The first three Highly Protected Marine Area designations in English waters recently came into force, two of which include further blue carbon habitats such as sub-littoral biogenic reefs and sub-littoral mud.
The Environment Agency’s Restoring Meadow, Marsh and Reef initiative is working to restore native oyster reef, as well as seagrass meadows and saltmarsh. Working in partnership with environmental non-government organisations, industry, community groups and academia, the initiative aims to identify innovative funding opportunities, streamline regulatory processes, build capacity and share knowledge with partners to facilitate a larger programme of restoration.
Defra has set up the UK Blue Carbon Evidence Partnership in partnership with the Devolved Administrations to address evidence gaps that currently prevent the inclusion of blue carbon habitats in the UK Greenhouse Gas Inventory (GHGI). Inclusion of these habitats in the GHGI will allow blue carbon to be marketed and traded as a carbon offset, leveraging private investment into these vital natural carbon stores.
Increased private sector investment into nature-based solutions will be crucial to protect 30% of the worlds ocean by 2030 and limit global warming to 1.5 degrees. Our Green Finance Strategy sets out how the Government will mobilise public and private financial flows to meet climate and environmental targets and our Nature Markets Framework sets out the Government’s aim to raise at least £500 million in private finance to support nature’s recovery every year by 2027 in England, rising to more than £1 billion per year by 2030.
The UK is also leading the way in developing Marine Net Gain in English waters, which will require developers to leave the environment in a better state than before new development, targeting biodiversity decline while securing potential blue carbon benefits.
Asked by: Olivia Blake (Labour - Sheffield, Hallam)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the Bank of England’s progress on integrating (a) climate and (b) nature considerations into its operations.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The financial regulators’ primary focus must be to ensure the safety, soundness and integrity of the markets they regulate. While the government expects that the Bank will play a crucial role in supporting the achievement of the government’s net zero target, it is not their primary responsibility given many of the levers for change sit outside of financial services regulation.
However, the Financial Services and Markets Act 2023 introduced a new regulatory principle for the Financial Conduct Authority, Bank of England and Payment Systems Regulator to consider in their work. To further strengthen the UK’s regulatory regime relating to climate and the environment, the government has embedded the consideration of the UK’s climate and environmental targets across the full breadth of the regulators’ general functions on a statutory basis.
This regulatory principle seeks to cement the government’s long-term commitment to transform the economy in line with its target to reach net zero by 2050, and to make progress towards the government’s long-term environmental goals, by ensuring the regulators must have regard to the government’s commitment to achieve these targets when discharging their functions.
This principle does not create any specific requirements on firms. Rather, they are expected to inform the future work of the regulators.
Asked by: Grahame Morris (Labour - Easington)
Question to the Home Office:
To ask the Secretary of State for the Home Department, if he will bring forward legislative proposals to require banks to compensate victims of fraud in circumstances in which anti-fraud banking protocols have not been followed.
Answered by Tom Tugendhat - Minister of State (Home Office) (Security)
To protect victims against authorised push payment (APP) scams, ten of the UK’s largest banks are currently signed up to the voluntary Contingent Reimbursement Model (CRM) Code. In 2022, £248m of losses to APP scams were reimbursed to victims under the commitments of this code.
Further, through the Financial Services and Markets Act 2023, the government legislated to require the Payment Systems Regulator (PSR) to introduce mandatory reimbursement for APP scams within the Faster Payment System, where 98% of APP fraud takes place. The PSR has confirmed that mandatory reimbursement will come into force in October 2024.
Asked by: Anneliese Dodds (Labour (Co-op) - Oxford East)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what recent assessment her Department has made of the equality impact of the increase in the angel investment annual income threshold.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government is aware of the recent increase in the threshold level for High Net Worth individuals as defined under the Financial Services and Markets Act 2000. Self-certification under this exemption is one of several ways in which individual investors can make angel investments. Other options include self-certifying as a sophisticated investor through membership of an angel group or syndicate for at least six months, or accessing investments through a firm authorised by the Financial Conduct Authority.
HM Treasury sponsors the relevant legislation and hence the Department for Business and Trade has not sought to assess the equality impact of this change.
Asked by: Anneliese Dodds (Labour (Co-op) - Oxford East)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what discussions his Department has had with stakeholders on the decision to increase the angel investment annual income threshold to £170,000.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Department for Business and Trade has received several representations about the recent increase in the threshold level for angel investors wishing to self-certify as High Net Worth individuals under the Financial Services and Markets Act 2000. These representations have been referred to HM Treasury which is the sponsor of this legislation.
Asked by: Anneliese Dodds (Labour (Co-op) - Oxford East)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what consideration he gave to the potential impact on equalities of increasing to £170,000 the annual income threshold for eligibility for the high net worth individual exemption in the Financial Services and Markets Act 2000 (Financial Promotion) (Amendment) (No. 2) Order 2023; and whether he had discussions with the Minister for Women and Equalities on the potential impact on equalities of the order.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022.
However, the Government recognises the concerns that have been raised recently about these changes. I met recently with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.
In line with the practice of successive administrations, details of internal discussions are not usually disclosed.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking with (a) banks and (b) other financial institutions to improve the financial sustainability of those organisations.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government is committed to retaining the UK’s position as one of the most innovative and competitive financial centres in the world. The Chancellor recently set out an ambitious reform programme at Mansion House, building on the success of the Edinburgh Reforms, which will help to deliver the Government’s vision for a financial sector that is open, sustainable, technologically innovative, and globally competitive. Additionally, the Financial Services and Markets Act 2023 introduced new secondary objectives for both the Financial Conduct Authority and Prudential Regulatory Authority to facilitate the international competitiveness of the UK economy (including the financial services sector), and its growth in the medium to long term.
Financial stability is a pre-requisite for economic growth and is crucial for the competitiveness of the financial services sector. The government, working closely with the financial regulators, has made major improvements to the resilience of the banking system since the financial crisis with capital requirements for banks now three times higher. The government has also considered it a priority to build resilience in the non-bank system and has been working closely with the regulators and international bodies to achieve this.
The Bank of England also undertakes regular stress tests on the UK’s major banks to test their resilience to severe economic scenarios and for the first time will be undertaking a system wide exploratory scenario which aims to improve the understanding of how banks and non-banks behave during stress and how these behaviours might interact to amplify shocks.
Asked by: Peter Aldous (Conservative - Waveney)
Question to the Home Office:
To ask the Secretary of State for the Home Department, what estimate he has made of the number of authorised push payment scam cases that have originated online in the last five years.
Answered by Tom Tugendhat - Minister of State (Home Office) (Security)
UK Finance analysis of nearly seven thousand authorised push payment (APP) scam cases shows that 70 per cent of scams originated on an online platform - highlighting the internet's significant role in enabling fraud. This includes data from UK Finance members only, for the whole of the UK. More details on this can be found here: https://www.ukfinance.org.uk/press/press-releases/over-two-thirds-of-all-app-scams-start-online-new-uk-finance-analysis
To protect victims against APP scams, ten of the UK’s largest banks are currently signed up to the voluntary Contingent Reimbursement Model (CRM) Code. In 2022, £248m of losses to APP scams were reimbursed to victims under the commitments of this code.
Recognising that more needed to be done to protect people from this devastating crime, through the Financial Services and Markets Act 2023, the government legislated to require the Payment Systems Regulator (PSR) to introduce mandatory reimbursement for APP scams within the Faster Payment System, where 98% of APP fraud takes place. This will come into force in October 2024.
The retail banking sector’s primary fraud concern was the rise of Authorised Push Payment (APP) fraud (where someone is tricked into sending money to a criminal). The sector therefore committed to the following key deliverables in the charter:
o Better utilise technology to share data to detect potential frauds.
o Capture and analyse data reported to them from victims of APP fraud.
o Provide customers with greater control over account features
The Online Safety Act (OSA) will mean that companies are held to account by an independent regulator if they fail to remove illegal content on their platforms.
Alongside the OSA, the Government has created the Online Fraud Charter: a voluntary agreement bringing together the largest companies in the tech sector, who have committed to a series of actions aimed at reducing fraud on their platforms and services. The Charter was signed on 30th November and will deliver a much quicker and more targeted response than regulation.
The OSA is an ambitious and forward-looking piece of legislation that will tackle online harms including fraud and fraudulent advertising.
Asked by: Stephen Doughty (Labour (Co-op) - Cardiff South and Penarth)
Question to the Foreign, Commonwealth & Development Office:
To ask the Minister of State, Foreign, Commonwealth and Development Office, what assessment he has made of the involvement of UK-based (a) insurers, (b) insurance markets and (c) shipping companies in the provision of services for the (i) export of goods to and (ii) import of goods from Russia.
Answered by Anne-Marie Trevelyan - Minister of State (Foreign, Commonwealth and Development Office)
The UK has introduced a comprehensive set of import and export restrictions on Russia. This has led to a 94 per cent fall in Russian imports into the UK and a 74 per cent fall in UK exports to Russia. Over £20 billion of UK-Russia bilateral trade (from 2021 figures) is now under full or partial sanction.
As well as banning the import and export of goods and technology, UK nationals and companies are prohibited from providing ancillary services which enable their trade, including financial services and funds which includes insurance, brokering and technical assistance.
The UK, alongside the G7 and Australia, has also banned the import of Russian oil and oil products. This substantially reduces the size of the global market for Russian oil and oil product exports.
Importantly, we have also created the Oil Price Cap which operates globally by prohibiting UK and G7+ firms from providing services such as shipping, insurance, and finance to facilitate the maritime transport of Russian oil and oil products to third countries, unless the oil was purchased from Russia at or below the cap. By limiting the price of Russian oil and oil products exported to third countries rather than restricting maritime services altogether, we restrict the revenues flowing to the Russian state and undermine Putin's ability to fund his illegal war in Ukraine, while still enabling oil to flow in a tight market and ensuring that third countries can continue to secure affordable oil.
Asked by: Lord Roberts of Llandudno (Liberal Democrat - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government what plans they have to assist with rebuilding destroyed or damaged areas in Ukraine when the conflict there ends; and what assistance the UK will provide in training citizens in that country to enable them to lead in all work of reconstruction.
Answered by Lord Ahmad of Wimbledon - Minister of State (Foreign, Commonwealth and Development Office)
The UK is committed to helping Ukraine recover from Russia's illegal invasion. The UK and Ukraine co-hosted the Ukraine Recovery Conference in London in June 2023, raising over $60 billion towards Ukraine's recovery and reconstruction. We are helping to build Ukraine's capacity to deliver recovery and reconstruction projects at an unprecedented scale. The UK's Infrastructure Projects Authority is providing strategic advice to State Agency for Restoration. We are also working to mobilise private sector investment for reconstruction through initiatives on reforms and good governance, financial markets and insurance, business expertise, infrastructure and energy.