Asked by: Thangam Debbonaire (Labour - Bristol West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 28 February 2024 to Question 15211 on Mortgages: Misrepresentation, what redress is available to people missold shared appreciation mortgages not covered by Financial Ombudsman Service rules.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Financial Conduct Authority (FCA), which is operationally independent of Government, has responsibility for the conduct regulation of shared appreciation mortgages. The FCA sets the rules regarding the information that must be disclosed before, during and after sale of mortgages and, in addition, the jurisdiction of the Financial Ombudsman Service (FOS).
Products like shared appreciation mortgages have been regulated since 2004 when wider mortgage regulations were first introduced, however a consumer’s right to pursue redress through legal channels is unaffected by the jurisdiction of the FOS. Anyone considering this option should consider seeking independent legal advice.
Asked by: Giles Watling (Conservative - Clacton)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to include nuclear (a) power generation and (b) fuel manufacture as sustainable activities within the UK Green Taxonomy.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government has stated its intention to include nuclear in the UK Green Taxonomy, subject to consultation. This will incentivise private investment in this important technology alongside renewables and other sectors that are key to reaching our Net Zero goal. The Government expects to publish the consultation on the UK Green Taxonomy shortly.
Asked by: Layla Moran (Liberal Democrat - Oxford West and Abingdon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will have discussions with the Association of British Insurers on reducing insurance premiums for households.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
Treasury Ministers and officials have regular meetings with a wide variety of organisations in the public and private sectors on an ongoing basis.
Insurers make decisions about the terms on which they will offer cover following an assessment of the relevant risks. The Government does not intend to intervene in these commercial decisions as this could damage competition in the market.
However, the Government is determined that insurers should treat customers fairly. The Financial Conduct Authority requires firms to ensure their products offer fair value (i.e. if the price a consumer pays for a product or service is reasonable compared to the overall benefits they can expect to receive). The FCA has been clear that it will be monitoring firms to ensure they are providing products that are fair value, and, where necessary, it will take action.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, when his Department plans to respond to the consultation entitled Stamp Taxes on Shares modernisation, published on 27 April 2023.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
HM Revenue and Customs issued the consultation in question and is currently working on the summary of responses, which will be published in due course.
Asked by: Siobhain McDonagh (Labour - Mitcham and Morden)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to increase the Lifetime ISA cap.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The Government keeps all aspects of the savings tax regime, including the merits of increasing the LISA property value limit, under review.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of artificial intelligence on banking.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
The adoption and deployment of AI is increasingly prevalent in the financial sector and has the potential to significantly improve productivity, both for individual banks and at an aggregate level. The government is committed to supporting the digital sector and has invested more than £3.5 billion in AI since 2014.
The government’s response to the AI White Paper consultation sets out how we are encouraging the safe use of AI across the economy by strengthening our global AI leadership (including by hosting the world’s first AI Safety Summit) and supporting the UK’s regulators to deliver on our pro-innovation framework.
Asked by: Tom Randall (Conservative - Gedling)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential long-term financial implications of implementing the full compensation scheme for infected blood victims.
Answered by Laura Trott - Chief Secretary to the Treasury
This was an appalling tragedy and my thoughts remain with all those affected. We understand the strength of feeling on this and the need for action and that is why the Government has accepted the moral case for compensation and acknowledged that justice needs to be delivered for the victims.
The Government is working as quickly as possible to consider all the Infected Blood Inquiry’s recommendations with the thoroughness merited by this terrible injustice, to ensure that we are best placed to respond to the Inquiry’s final report once it is published in May.
Asked by: Geoffrey Cox (Conservative - Torridge and West Devon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will publish guidance on the tax regime for furnished holiday lets after April 2025.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government will publish draft legislation, explanatory notes, and a tax information and impacts note in due course. These will set out how the announced changes will apply in practice.
Asked by: Patrick Grady (Scottish National Party - Glasgow North)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential impact of removing VAT on defibrillators on their (a) affordability and (b) accessibility.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The Government maintains VAT reliefs to aid the purchase of Automated External Defibrillators (AEDs), including VAT relief on purchases made by local authorities and those made through voluntary contributions, where the AED is donated to eligible charities or the NHS. Otherwise, they attract the standard rate of VAT.
The Government is currently inviting community organisations to bid for funding as part of a £1 million grant scheme that expands access to AEDs, particularly in public places where they are most needed. In addition, last year the Government committed to supplying state-funded schools in England with defibrillators to make sure there is a device in device in every school, with deliveries completed in June 2023. This means that every state-funded school in England, over 21,500 schools, now has access to an AED.
The Government keeps all taxes under review.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps HM Revenue and Customs has taken to improve tax compliance yield.
Answered by Nigel Huddleston - Financial Secretary (HM Treasury)
The UK tax gap is currently low and stable, falling from 7.5 per cent in 2005 to 2006 to 4.8 per cent in 2021 to 2022.
In 2022 to 2023, compliance action from HMRC secured and protected £34 billion for public services that would otherwise have gone unpaid. 2023 to 2024 compliance yield figures indicate that they are on track to exceed last year’s performance.
HMRC is making it easier for customers to get it right first time and hard to get wrong by investing in digital systems, simplifying policies and processes, and improving guidance and support to improve compliance.
Since 2010, the Government has also introduced over 200 new measures to tackle many different forms of non-compliance. Most recently, at Spring Budget 2024, the government announced a new package of measures to tackle the tax gap, which will raise over £4.5 billion over the next five years.