Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of the easing grocery price inflation on (1) consumer spending habits, and (2) household budgets.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Inflation reduces real incomes, creates uncertainty, and threatens our growth outlook so it’s essential that the government continues with its efforts to keep inflation down. The government remains steadfast in our support for the Monetary Policy Committee of the Bank of England.
Food inflation has fallen from a peak of 19.6% in March 2023 to 5.0% in February 2024.
The latest data suggests real household disposable income per capita was 1.4% higher in Q4 2023 than in Q4 2022.
ONS retail sales remained unchanged on the month in February. This followed an increase in retail sales volumes of 3.6% on the month in January, fully offsetting the decline in December. Food store sales were 2.8% higher in February than in December.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the factors contributing to the recent decline in consumer prices inflation.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Monetary Policy Committee (MPC) has raised interest rates, which is helping to bring inflation down and return to the 2% target sustainably. The Government's responsible approach to borrowing has helped support the MPC as it brings inflation down.
The Office for Budget Responsibility expects CPI inflation to fall to the 2% target in the second quarter of 2024, a year earlier than they expected in November.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, following reports that public expectations for inflation have fallen to the lowest level in over two years, what assessment they have made of the impact of falling expectations on (1) wage growth trends, and (2) employment dynamics; and what steps they are taking to address any potential challenges in sustaining wage growth while maintaining price stability.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Inflation has more than halved, falling from its peak of 11.1% in October 2022 to 3.4% in February 2024 and nominal whole economy total pay has fallen from a peak of 8.9% in the three months to June to 5.6% in the three months to January 2024.
In the three months to January 2024 the unemployment rate was 3.9%, up by 0.1ppt on the year but low by historical standards. The OBR forecast that there will be a moderate rise in unemployment to a peak of 4.5% in Q4 2024 before declining to 4.1% by 2028.
Whilst inflation has fallen it still remains above the 2% target. The Monetary Policy Committee (MPC) continues to have the government’s full support as it takes action to sustainably return it to target.
Asked by: Lord Sharkey (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what, if any, statutory powers the Bank of England has to issue binding directions to (1) the Prudential Regulation Authority, (2) the Financial Conduct Authority, and (3) the Payment Systems Regulator; and on how many occasions in each year since 2007 they have been exercised.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Treasury has statutory powers to issue directions to the Bank of England, which can only be used under specific conditions or circumstances. None of the powers outlined below have ever been used.
The Bank of England also has powers to direct the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR).
Asked by: Lord Sharkey (Liberal Democrat - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what, if any, statutory powers they have to issue binding directions to the Bank of England; and on how many occasions in each year since 2007 they have been exercised.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Treasury has statutory powers to issue directions to the Bank of England, which can only be used under specific conditions or circumstances. None of the powers outlined below have ever been used.
The Bank of England also has powers to direct the Prudential Regulation Authority (PRA), Financial Conduct Authority (FCA) and Payment Systems Regulator (PSR).
Asked by: Baroness Drake (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government when they anticipate the Bank of England will publish the results of its second climate biennial exploratory scenarios, the first having been published in May 2022.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Government welcomes the results of the Bank’s Climate Biennial Exploratory Scenario (CBES), which has been an important milestone in assessing UK system-wide exposures and boosting firms’ capabilities to assess climate-related risk.
Following publication of the CBES results in 2022[1], a Prudential Regulation Authority letter to CEOs[2] set out feedback on how to enhance scenario analysis and further embed supervisory expectations. In recognition that this feedback will take time to embed, the Bank has publicly stated that it will not launch a concurrent exercise in the near-term that further explores climate risks.
The Bank also affirmed in its 2023 report on climate-related risks and the regulatory capital frameworks[3] that it will further develop its capabilities to test the resilience of the financial system to climate risks- including how scenario exercises and stress tests can help the Bank and firms understand the exposure of the financial system to risks and progress work to understand material regime gaps in the capital frameworks. Further, the Bank continues to support the development of climate scenarios as a member of the NGFS’s dedicated “Scenario Design and Analysis” Workstream.
The Bank of England has statutory responsibilities for monetary policy and financial stability, and operational independence from the Government to carry out those objectives.
[1] CBES results
[2] Prudential Regulation Authority letter to CEOs
[3] 2023 report on climate-related risks and the regulatory capital frameworks
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of the recent strengthening in sterling on inflation in the UK; and what assessment they have made of the effect this may have on the timing and magnitude of monetary policy adjustments made by the Bank of England.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The Office for Budget Responsibility (OBR) is the government’s official forecaster. They published their latest assessment of the economic and fiscal outlook (EFO) on 6th March. The OBR noted that the trade weighted sterling effective exchange rate had strengthened by around 2 per cent since their November 2023 forecast. Inflation has halved since its peak in October 2022 and was 4.0% in January 2024. In the March EFO, the OBR note that inflation has fallen more sharply than they expected in November, and now expect inflation to fall below 2% in Q2 2024 – a year earlier than previously expected.
Monetary Policy is the responsibility of the independent Monetary Policy Committee of the Bank of England. Therefore, it is right the Government does not comment on the conduct of monetary policy.
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to reduce inflation.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Responsible decisions to support the Bank mean the UK has now turned a corner on inflation, but the government remains committed to ensuring inflation returns sustainably to its 2% target. There are four key things the government is doing to further reduce inflation whilst supporting growth:
The OBR has concluded that measures in the Spring Budget – primarily freezes to fuel and alcohol duty – will reduce CPI inflation by 0.2% in 2024-25.
Asked by: Lord Lancaster of Kimbolton (Conservative - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government what are the (1) actual, and (2) projected, aid contributions to individual countries in South Asia, broken down by category of project.
Answered by Lord Benyon - Minister of State (Foreign, Commonwealth and Development Office)
We do not have a breakdown by project category of future spend. Programme allocations are continually reviewed to respond to changing global needs, including humanitarian crises, fluctuations in GNI and other ODA allocation decisions.
We do have information on project category spend for previous calendar years which is published in the statistics on international development. This data is based on calendar year not financial year and covers the whole of HMG. Please see below data based on 2022, the last available calendar year.
2022 | 2022 Total | ||||||||
Row Labels | Afghanistan | Bangladesh | Bhutan | India | Maldives | Nepal | Pakistan | Sri Lanka | |
Administrative costs (non-sector allocable) | £273,832 | £0 | £0 | £0 | £0 | £0 | £150,105 | £0 | £423,938 |
Advanced technical and managerial training | £0 | £0 | £0 | -£54,390 | £0 | -£2,535 | £0 | £0 | -£56,924 |
Agricultural development | £1,292,411 | £0 | £0 | £47,020 | £0 | £0 | -£1,361,746 | £0 | -£22,316 |
Agricultural policy and administrative management | £0 | £2,809 | £0 | -£152 | £0 | £0 | £0 | -£253,566 | -£250,909 |
Agricultural research | £0 | £0 | £0 | £240,948 | £0 | £0 | £7,715 | £0 | £248,663 |
Agricultural services | £0 | £0 | £0 | -£2,274,286 | £0 | £0 | £0 | £0 | -£2,274,286 |
Anti-corruption organisations and institutions | £2,518,313 | £576,402 | £0 | £0 | £0 | £175,805 | £144,143 | £0 | £3,414,663 |
Basic drinking water supply | £0 | £350,000 | £0 | £0 | £0 | £219,574 | £0 | £0 | £569,574 |
Basic drinking water supply and basic sanitation | £0 | £0 | £0 | £0 | £0 | £639,497 | -£1,361,746 | £0 | -£722,250 |
Basic health care | £707,157 | £250,000 | £0 | £0 | £0 | £2,994,645 | £387,457 | £0 | £4,339,258 |
Basic life skills for adults | £0 | £0 | £0 | £0 | £0 | £258,611 | £0 | £0 | £258,611 |
Basic nutrition | £0 | £712,997 | £0 | £0 | £0 | £14,770 | £0 | £0 | £727,767 |
Basic sanitation | £0 | £350,000 | £0 | £0 | £0 | £37,522 | -£2,723,493 | £0 | -£2,335,971 |
Biodiversity | £0 | £22,328 | £0 | £165,389 | £74,068 | £961,707 | £37,573 | £67,842 | £1,328,907 |
Business development services | £0 | £0 | £0 | £96,736 | £0 | £0 | £0 | £0 | £96,736 |
Business policy and administration | £0 | £0 | £0 | £565,783 | £0 | £0 | £437,513 | £0 | £1,003,296 |
Civilian peace-building, conflict prevention and resolution | £4,130,547 | £1,981,030 | £0 | £0 | £0 | £4,399 | £2,225,242 | £1,355,856 | £9,697,073 |
Communications policy and administrative management | £0 | £0 | £0 | £0 | £127,531 | £0 | £44,422 | £0 | £171,953 |
COVID-19 control | £0 | £23,407 | £0 | £802,602 | £0 | £0 | £5,949 | £0 | £831,958 |
Culture | £0 | £0 | £0 | £0 | £0 | £0 | £61,341 | £0 | £61,341 |
Culture and recreation | £0 | £0 | £0 | -£22,408 | £0 | £0 | £85,158 | £0 | £62,750 |
Decentralisation and support to subnational government | £0 | £0 | £0 | £0 | £138,288 | £2,475,959 | £0 | £0 | £2,614,248 |
Democratic participation and civil society | £250,000 | £1,394,795 | £0 | £0 | £57,419 | £973,571 | £443,327 | £0 | £3,119,111 |
Domestic revenue mobilisation | £0 | -£728,536 | £0 | £193,016 | £0 | £117,203 | £1,059,571 | £0 | £641,254 |
Education and training in water supply and sanitation | £0 | £0 | £0 | £0 | £0 | £12,737 | £0 | £0 | £12,737 |
Education facilities and training | £0 | £115,830 | £0 | £0 | £0 | £0 | £1,464,741 | £0 | £1,580,571 |
Education policy and administrative management | £0 | £577,278 | £0 | £97,983 | £0 | £0 | £3,077,249 | £0 | £3,752,510 |
Educational research | £0 | £361,000 | £0 | -£266,036 | £0 | £188,423 | £594,639 | £0 | £878,026 |
Elections | £0 | £12,027 | £0 | £0 | £0 | £0 | £900 | £0 | £12,927 |
Electric mobility infrastructures | £0 | £0 | £0 | £70,000 | £0 | £0 | £0 | £0 | £70,000 |
Electric power transmission and distribution (centralised grids) | £0 | £0 | £0 | £68,700 | £0 | £173,312 | £0 | £0 | £242,012 |
Emergency food assistance | £128,041,086 | £8,635,594 | £0 | £0 | £0 | £0 | £0 | £0 | £136,676,679 |
Employment creation | £0 | £0 | £0 | £0 | £0 | -£255,005 | £0 | £0 | -£255,005 |
Ending violence against women and girls | £21,461,697 | £1,009,135 | £0 | £0 | £0 | £728,846 | £3,068,578 | £0 | £26,268,255 |
Energy generation, renewable sources - multiple technologies | £0 | £0 | £0 | -£889,376 | £0 | £1,200,806 | £0 | £0 | £311,430 |
Energy policy and administrative management | £0 | £50,553 | £0 | £158,146 | £0 | £368,287 | £0 | £0 | £576,985 |
Energy research | £0 | £0 | £0 | £23,688 | £0 | £147,098 | £0 | £0 | £170,786 |
Energy sector policy, planning and administration | £0 | £0 | £0 | £1,479,122 | £0 | £0 | £0 | £0 | £1,479,122 |
Environmental education/training | £0 | £0 | £48,668 | £0 | £0 | £0 | £0 | £0 | £48,668 |
Environmental policy and administrative management | £635,676 | £6,904,699 | £0 | £24,064,426 | £0 | £4,380,855 | £5,812,804 | £0 | £41,798,459 |
Environmental research | £0 | £120,723 | £0 | £3,082,518 | £0 | £863,732 | £0 | £0 | £4,066,974 |
Facilitation of orderly, safe, regular and responsible migration and mobility | £0 | £102,902 | £0 | £0 | £0 | £234,377 | £0 | £0 | £337,279 |
Family planning | £265,080 | £565,862 | £0 | £0 | £0 | £102,500 | £3,660,244 | £0 | £4,593,686 |
Financial policy and administrative management | £0 | £0 | £0 | £507,690 | £0 | £0 | £301,387 | £0 | £809,077 |
Formal sector financial intermediaries | £0 | £0 | £0 | £49,665 | £0 | £0 | £0 | £0 | £49,665 |
Health education | £338,898 | £0 | £0 | £0 | £0 | £219,770 | £0 | £0 | £558,668 |
Health personnel development | £0 | £273,503 | £0 | £0 | £0 | £0 | £0 | £0 | £273,503 |
Health policy and administrative management | £0 | £1,760,392 | £0 | £3,122,660 | £0 | £2,298,530 | £343,452 | £0 | £7,525,034 |
Higher education | £911,301 | £649,203 | £172,288 | £2,693,479 | £214,955 | £434,329 | £1,992,063 | £395,690 | £7,463,308 |
Human rights | £0 | £1,775,384 | £0 | £0 | £183,646 | £0 | £0 | £0 | £1,959,030 |
Immediate post-emergency reconstruction and rehabilitation | £4,081,072 | £2,602,056 | £0 | £0 | £0 | £1,382,031 | £12 | £0 | £8,065,171 |
Industrial development | £0 | £0 | £0 | £0 | £0 | £317,516 | £0 | £0 | £317,516 |
Industrial policy and administrative management | £0 | £0 | £0 | £0 | £0 | £1,102,394 | £0 | £0 | £1,102,394 |
Infectious disease control | £0 | £344,911 | £0 | £106,589 | £0 | £721,591 | £3,657 | £0 | £1,176,748 |
Informal/semi-formal financial intermediaries | £1,133,493 | £0 | £0 | £65,012 | £0 | £129,305 | £0 | £0 | £1,327,810 |
Information and communication technology (ICT) | £0 | £277,978 | £0 | £0 | £0 | £0 | £0 | £0 | £277,978 |
Legal and judicial development | £0 | £562,328 | £0 | £0 | £207,433 | £219,762 | £1,059,545 | £23,435 | £2,072,502 |
Legislatures and political parties | £0 | £0 | £0 | £0 | £86,128 | £28,936 | £0 | £0 | £115,064 |
Livestock | £1,133,493 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £1,133,493 |
Low-cost housing | £0 | £0 | £0 | £7,590 | £0 | £0 | £0 | £0 | £7,590 |
Material relief assistance and services | £133,863,525 | £7,210,063 | £0 | £0 | £0 | £367,000 | £13,753,266 | £1,840,000 | £157,033,854 |
Media and free flow of information | £0 | £27,380 | £0 | £0 | £85,021 | £201,771 | £0 | £0 | £314,172 |
Medical research | £0 | £349,577 | £0 | £3,227,794 | £0 | £153,028 | £1,625,422 | £0 | £5,355,821 |
Medical services | £0 | £0 | £0 | £19,694 | £0 | £0 | £0 | £0 | £19,694 |
Monetary institutions | £0 | £0 | £0 | -£4,122,509 | £0 | £367,746 | £0 | £0 | -£3,754,763 |
Multi-hazard response preparedness | £0 | £3,119,353 | £0 | £0 | £0 | £2,296,059 | -£346,074 | £0 | £5,069,339 |
Multisector aid | £10,000,000 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £10,000,000 |
Multisector education/training | £179,070 | £2,964,257 | £0 | £10,757,244 | £0 | £1,082,590 | £5,089,541 | £1,148,813 | £21,221,516 |
Participation in international peacekeeping operations | -£26,486,939 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | -£26,486,939 |
Personnel development for population and reproductive health | £0 | £628,071 | £0 | £0 | £0 | £0 | £0 | £0 | £628,071 |
Population policy and administrative management | £0 | £63,206 | £0 | £0 | £0 | £49,325 | £159,552 | £0 | £272,083 |
Primary education | £677,795 | £1,749,487 | £0 | £96,754 | £0 | £0 | £1,368,615 | £0 | £3,892,652 |
Privatisation | £4,424 | £0 | £0 | £62,081 | £0 | £0 | £0 | £0 | £66,505 |
Public finance management (PFM) | £0 | -£4,128,373 | £0 | £0 | £0 | £820,701 | £1,854,023 | £0 | -£1,453,650 |
Public sector policy and administrative management | £34,999 | £576,042 | £0 | £859,780 | £0 | £789,046 | £91,270 | £0 | £2,351,137 |
Relief co-ordination and support services | £59,853,084 | £2,072,828 | £0 | £0 | £0 | £0 | £6,022,939 | £0 | £67,948,851 |
Removal of land mines and explosive remnants of war | £5,000,000 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £5,000,000 |
Reproductive health care | £1,369,857 | £1,435,386 | £0 | £52,362 | £0 | £490,359 | £1,851,776 | £0 | £5,199,740 |
Research/scientific institutions | £378,625 | £1,287,873 | -£72,577 | £740,328 | £0 | £1,049,080 | £908,916 | £2,760 | £4,295,005 |
Road transport | £0 | £0 | £0 | -£1,137,143 | £0 | £2,256,726 | £1,800 | £0 | £1,121,383 |
Rural development | £0 | £0 | £0 | £0 | £0 | £202,165 | £0 | £0 | £202,165 |
Security system management and reform | £0 | £43,536 | £0 | £0 | £458,799 | £69,946 | £0 | £0 | £572,281 |
Site preservation | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 | £0 |
Small and medium-sized enterprises (SME) development | £5,530 | £0 | £0 | £1,245,753 | £0 | £0 | £0 | £0 | £1,251,283 |
Social Protection | £0 | £1,351,346 | £0 | £39,879 | £0 | -£345,949 | £226,615 | £0 | £1,271,891 |
Solar energy for centralised grids | £0 | £0 | £0 | £117,792 | £0 | £648,694 | £0 | £0 | £766,486 |
Statistical capacity building | £0 | £0 | £0 | £0 | £0 | £353,100 | £0 | £0 | £353,100 |
Teacher training | £0 | £508,061 | £0 | £0 | £0 | £0 | £663,698 | £0 | £1,171,759 |
Trade facilitation | £5,530 | £0 | £0 | £0 | £0 | £0 | £133,722 | £0 | £139,252 |
Trade policy and administrative management | £6,637 | £0 | £0 | £0 | £0 | £0 | £203,275 | £0 | £209,912 |
Transport policy and administrative management | £0 | £0 | £0 | £69,054 | £0 | £128,892 | £1,200 | £0 | £199,146 |
Tuberculosis control | £0 | £29,991 | £0 | £0 | £0 | £0 | £0 | £0 | £29,991 |
Upper Secondary Education (modified and includes data from 11322) | £338,898 | £897,000 | £0 | £0 | £0 | £0 | £985,293 | £0 | £2,221,190 |
Urban development | £0 | £0 | £0 | £542,146 | £0 | £0 | £0 | £0 | £542,146 |
Urban development and management | £0 | £1,050,000 | £0 | £78,000 | £0 | £695,269 | £781,523 | £0 | £2,604,792 |
Vocational training | £0 | £0 | £0 | £0 | £0 | £646,527 | £0 | £0 | £646,527 |
Waste management/disposal | £0 | £0 | £0 | £14,424 | £0 | £0 | £0 | £0 | £14,424 |
Water resources conservation (including data collection) | £0 | £0 | £0 | £0 | £0 | £219,574 | £0 | £0 | £219,574 |
Water sector policy and administrative management | £0 | £0 | £0 | £0 | £0 | £31,842 | £0 | £0 | £31,842 |
Water supply - large systems | £0 | £0 | £0 | £0 | £0 | £737,655 | £0 | £0 | £737,655 |
Water supply and sanitation - large systems | £0 | £0 | £0 | -£1,137,143 | £0 | £0 | £0 | £0 | -£1,137,143 |
Women's rights organisations and movements, and government institutions | £0 | £1,800,998 | £0 | £0 | £0 | £59,406 | £1,444,631 | £0 | £3,305,036 |
Grand Total | £352,405,092 | £54,672,670 | £148,379 | £45,728,404 | £1,633,288 | £37,241,408 | £57,842,803 | £4,580,830 | £554,252,874 |
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 potential merits of the Bank of England introducing a dual interest rate policy with a lower rate for lending to green projects.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Chancellor most recently reaffirmed the Monetary Policy Committee’s (MPC) remit at the Autumn Statement on 22 November 2023.
The Government recognises the importance of not overly expanding the MPC’s remit to allow the MPC to focus on its primary objective of price stability, as it rightly has. It is for the MPC to judge how it can best support the Government’s economic objectives using its monetary policy tools, subject to achieving its primary objective of price stability.
The Government has taken world-leading action to green the financial system, and we remain fully committed to that work.