HM Treasury

In the Resources and Waste Strategy 2018, the government set out that incineration currently plays a significant role in waste management in the UK, and that the government expects this to continue. However, in the long term the government wants to maximise the amount of waste sent to recycling instead of incineration and landfill. As set out at Budget 2018, should wider policies not deliver the government’s waste ambitions in the future, it will consider the introduction of a tax on the incineration of waste, operating in conjunction with landfill tax, taking account of the possible impacts on local authorities. All tax policy is kept under review. The government also maintains and develops tax policies to support effective waste management, including the existing Landfill Tax and the world leading Plastic Packaging Tax which will be introduced from April 2022.

The government is committed to the improving of waste management and set out the Waste Management Plan for England 2021 earlier this year. Further detail available at: https://www.gov.uk/government/publications/waste-management-plan-for-england-2021

The Government has always been clear that the £20 per week increase to Universal Credit was a temporary measure to support households whose incomes and earnings were affected by the economic shock of Covid-19. Now that the economy has reopened, the Government is focusing on supporting people to move into and progress in work

The Government is committed to supporting low-income families with the cost of living including with their energy bills through the Warm Home Discount, Winter Fuel Payments and Cold Weather Payments. The Energy Price Cap is also in place to protect millions of customers from the sudden increases in global gas prices this winter. Despite the rising costs of wholesale energy, the cap still saves 15 million households up to £100 a year.

The Government has also recently announced the £500 million Household Support Fund which will support vulnerable households with essentials over winter as we enter the final stages of recovery from the pandemic.

The government is committed to providing better rail connectivity between London, the Midlands and the North. The Treasury works closely with the Department for Transport to understand local leaders’ views on the Integrated Rail Plan, which will soon set out how best to scope, sequence and integrate Northern Powerhouse Rail, HS2 Phase 2b and other major Network Rail programmes.

The West Midlands will benefit significantly from Phase One of High Speed 2, which will cut journey times between Birmingham and London to less than 50 minutes. Budget 2021 also included £50m to develop proposals for transport improvements around the HS2 Interchange station to help support local regeneration.

The Government has made no recent assessment in relation to the effect of increasing the probate limit. In most circumstances the provision of a bank’s services, including the administration around bereavement, are a commercial decision for the bank. The Government does not intervene in these decisions.

The treatment of customers by UK banks and building societies which are regulated by the Financial Conduct Authority (FCA) is governed by its Principles of Business. This includes a general requirement for firms to provide a prompt, efficient and fair service to all their customers, including those who have recently suffered a bereavement. The FCA does not have specific rules or guidance regarding probate in its rules. However, all firms regulated by the FCA are bound by its Principles which apply to the way banks and building societies conduct themselves. This includes how they handle probate.

The main current account providers also publish information about the additional services they offer consumers, including information on the bereavement services they offer. More information can be found on the FCA website: https://www.fca.org.uk/data/mandated-voluntary-information-current-account-services/providers-links#voluntary

The Government remains supportive of previous industry efforts to improve handling of these sensitive cases, including the implementation of the British Bankers’ Association’s (now known as UK Finance) Bereavement Principles. These Principles include a commitment from firms to provide support to meet individuals’ needs throughout the bereavement process and to work to resolve everything as quickly and simply as possible.

This is an operational matter for the Financial Conduct Authority (FCA), who are operationally independent from Government.

On 2 February, the Government announced its intention to regulate Buy-Now-Pay-Later products. On 17 March, the Government tabled an amendment to the Financial Services Bill (now Act) to allow the Government to bring Buy-Now-Pay-Later products into the scope of FCA regulation in a proportionate way. The Government is now working to publish a consultation document soon.

The 2019 data will be published this Autumn. A data collection was not undertaken in 2020. The 2021 data collection will commence shortly and be published in early 2022.

The Coronavirus Job Retention Scheme was designed as a temporary, economy-wide measure to support businesses while widespread restrictions were in place. Closing the scheme at the end of September strikes the right balance between supporting the economy as it opens up, continuing to provide support and protect incomes, and ensuring incentives are in place to get people back to work as demand returns. As set out in the Plan for Jobs Progress Update published on 13 September 2021, this approach has worked. The OBR have estimated that without the short-term fiscal easing announced in the Budget, and in particular the CJRS extension, unemployment would have otherwise been around 300,000 higher in the fourth quarter of this year than the 2.2 million in the central forecast.

The Government has shown throughout the pandemic that it is prepared to adapt support if the path of the virus changes. We continue to engage closely with sectors across the economy to understand their recovery horizons as the vaccine is rolled out and restrictions ease.

It is right that, as the economy rebounds, those best able to contribute share in the task of restoring the public finances to a sustainable footing.

That is why, at Budget, the Chancellor announced an increase in the Corporation Tax (CT) rate from 19 per cent to 25 per cent from 2023 onwards. This will, by definition, only apply to companies that are making profits, and profitable businesses have continued to pay CT throughout the pandemic.

Public service pensions are a crucial part of the total remuneration package for public sector workers, this includes the current OBR estimate of a £1.9 bn Exchequer top-up payment for 2020-21 and £1.89 tn in liabilities. The Government pays close attention to the cost of public service pensions to the taxpayer, forecasts of which are regularly published by the OBR on a cashflow basis in its Economic and Fiscal Outlook^[1] and Fiscal Sustainability Report^[2]. Information on long-term public service pension liabilities can be found in the Whole of Government Accounts^[3].

[1] https://obr.uk/efo/economic-and-fiscal-outlook-march-2021/

[2] https://obr.uk/fsr/fiscal-sustainability-report-july-2018/

[3] https://www.gov.uk/government/publications/whole-of-government-accounts-2018-2019

Following the Financial Conduct Authority's (FCA) Mortgage Market Study, an industry voluntary agreement was enacted to help borrowers on reversion rates who are up to date with payments but don't meet the affordability criteria required to switch to a new deal. This means that participating lenders will offer eligible borrowers the ability to switch to an alternative product.

The Government has also undertaken significant work to understand the circumstances of borrowers whose mortgages are held by inactive firms (which are not able to offer alternative products) and don’t meet the affordability requirements or risk appetite to switch to a new lender. The Government has worked with the FCA to create additional options for these borrowers, including through the introduction of a Modified Affordability Assessment which allows mortgage lenders to waive the normal affordability checks for borrowers with inactive firms who meet certain criteria, such as not wishing to borrow more.

The FCA is reviewing its data to provide further detail on the characteristics of borrowers who have mortgages with inactive firms and are unable to switch, despite being up to date with payments. The FCA is also reviewing the effect of its interventions to remove regulatory barriers to switching and will report on this by the end of November. The Treasury will use the results of this review to establish whether there are any further practical and proportionate solutions that can be found for affected borrowers.

The Government is committed to ensuring financial services consumers are appropriately protected.

In accordance with the requirements set out in the Financial Services Act 2021, the Financial Conduct Authority (FCA) published a consultation on 14 May 2021 proposing a new ‘Consumer Duty’. The Consumer Duty seeks to clarify and raise expectations for the standard of care that should be provided by financial services firms to consumers. This aims to ensure consumers benefit from a higher level of care from financial services firms.

The Government is committed to ensuring financial services consumers are appropriately protected.

In accordance with the requirements set out in the Financial Services Act 2021, the Financial Conduct Authority (FCA) published a consultation on 14 May 2021 proposing a new ‘Consumer Duty’. The Consumer Duty seeks to clarify and raise expectations for the standard of care that should be provided by financial services firms to consumers. This aims to ensure consumers benefit from a higher level of care from financial services firms.

The Government recognises that cash remains important to millions of people across the UK.

On 1 July, the Government published the Access to Cash Consultation, seeking views on legislative proposals to protect cash access for the long term. The Government’s proposals include making the Financial Conduct Authority the lead regulator for oversight of the retail cash system. The FCA responsibilities would extend to monitoring and enforcing cash access requirements, assessing cash access needs and demands over time, and monitoring the geographic spread of cash access points across the UK.

This builds on legislative changes made by Government as part of the Financial Services Act 2021 to support the widespread offering of cashback without a purchase by shops and other businesses. The financial services industry is already seeking to take advantage of these changes to the benefit of cash users; working with retailers to get this service rolled out to local communities.

In July, the FCA published updated evidence on cash access. This included research on cash acceptance by small and medium-sized enterprises (SMEs), which found that the primary motivation for accepting cash is to provide customers with choice. Nearly all (98%) of surveyed businesses stated they would never turn away a customer if they needed to pay by cash.

This information is not held in the form requested as HM Revenue and Customs does not record Alcohol Warehouse Registration Scheme (AWRS) data by ‘nation’.

AWRS Data showing the number of applications received and numbers approved up to April 2019 was published on 10^th June 2021 and is available at: https://www.gov.uk/government/publications/tackling-alcohol-smuggling-outputs/tackling-alcohol-smuggling-outputs-april-2016-to-april-2019.

Data up to April 2021 will be published in the normal way in October 2021.

Please note the numbers for approved and revoked applications do not total the number of applications received. The reason for this is because withdrawals, deregistrations and stock on hand have not been included.

For Scotland:

Applications received 1343

Applications approved 980 (73%)

Applications revoked 24 (2%)

For the UK:

Applications received 15410

Applications approved 10880 (71%)

Applications revoked 546 (4%)

The Government’s private finance objective for the upcoming COP26 climate change forum is to ensure that every professional financial decision takes climate change into account. The recovery from COVID-19 will determine the mitigation and adaptation pathways for decades to come.

The finance campaign will provide the conditions for a future that is genuinely greener, more resilient and more sustainable than the past. Action on finance underpins all the other COP campaigns: adaptation and resilience, energy transition, nature and zero-emission vehicles. Without the right levels of finance, the rest is not possible.

The Government has already taken action to ensure the UK is the world-leading centre for green finance including through announcing an intention to make disclosures aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) fully mandatory across the economy by 2025, making the UK the first country to do so.

Additionally, the Government has committed to the implementation of a green taxonomy.  This will allow us to accelerate our work towards a greener financial sector, by providing a common definition for environmentally sustainable economy activities.

The Cryptoasset Taskforce, comprising HM Treasury, the Financial Conduct Authority, and the Bank of England, considers the impact of cryptoassets and assesses what, if any, regulation is required in response. The Government has been monitoring developments within the cryptoasset industry, including rising energy usage.

The Government is committed to upholding its pledge relating to the Paris Climate Agreement and have enacted a legally binding target to reach net zero greenhouse gas emissions by 2050. Between 1990 and 2018, the UK reduced its emissions by 43% while growing the economy by 75% – the best performance in the G7 on a per person basis and will continually assess any emerging environmental threats.

The Government’s private finance objective for the upcoming COP26 climate change forum is to ensure that every professional financial decision takes climate change into account. The recovery from COVID-19 will determine the mitigation and adaptation pathways for decades to come.

The finance campaign will provide the conditions for a future that is genuinely greener, more resilient and more sustainable than the past. Action on finance underpins all the other COP campaigns: adaptation and resilience, energy transition, nature and zero-emission vehicles. Without the right levels of finance, the rest is not possible.

The Government has already taken action to ensure the UK is the world-leading centre for green finance including through announcing an intention to make disclosures aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) fully mandatory across the economy by 2025, making the UK the first country to do so.

Additionally, the Government has committed to the implementation of a green taxonomy.  This will allow us to accelerate our work towards a greener financial sector, by providing a common definition for environmentally sustainable economy activities.

The Cryptoasset Taskforce, comprising HM Treasury, the Financial Conduct Authority, and the Bank of England, considers the impact of cryptoassets and assesses what, if any, regulation is required in response. The Government has been monitoring developments within the cryptoasset industry, including rising energy usage.

The Government is committed to upholding its pledge relating to the Paris Climate Agreement and have enacted a legally binding target to reach net zero greenhouse gas emissions by 2050. Between 1990 and 2018, the UK reduced its emissions by 43% while growing the economy by 75% – the best performance in the G7 on a per person basis and will continually assess any emerging environmental threats.

We will publish our response to the technical consultation in due course. This will contain information on those who responded to the consultation.

The Government wants to see a prudential regulatory regime for insurers that provides a sound foundation for insurance firms to provide long-term capital to the economy, including investment in long-term productive assets. In July 2021 the Government published its response to the Call for Evidence on Solvency II which set out the process by which this will be achieved.

In addition, the Government will shortly introduce new rules to eliminate unnecessary barriers to pension fund investment in long-term assets. This includes: the calculation of the default fund charge cap for automatic enrolment schemes; consolidation measures to be taken by schemes with less than £100m assets under management; and the publication of net returns.

The Treasury, the Bank of England and the Financial Conduct Authority have also convened the Productive Finance Working Group. This industry group has focused on facilitating pension fund investment in long-term assets. This has included work on the creation of the Long-Term Asset Fund structure, the rules for which will soon be finalised by the Financial Conduct Authority.

The Government has been monitoring developments within the cryptoasset industry, including rising energy usage.

The Cryptoasset Taskforce, comprising HM Treasury, the Financial Conduct Authority, and the Bank of England, considers the impact of cryptoassets and assesses what, if any, regulation is required in response. The Government stands ready to respond to emerging risks or changes in the market and will continue to monitor developments in cryptoassets.

In November 2020, the Chancellor announced that the UK will implement a green taxonomy – a common framework for determining which activities can be defined as environmentally sustainable – which will improve understanding of the impact of firms’ activities and investments on the environment and support our transition to a sustainable economy. More details on the green taxonomy will be announced in due course.

The Government has already taken action to ensure the UK is the world-leading centre for green finance including through announcing an intention to make disclosures aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) fully mandatory across the economy by 2025, making the UK the first country to do so.

The Government is committed to upholding its pledge relating to the Paris Climate Agreement and have enacted a legally binding target to reach net zero greenhouse gas emissions by 2050. Between 1990 and 2018, the UK reduced its emissions by 43% while growing the economy by 75% – the best performance in the G7 on a per person basis and will continually assess any emerging environmental threats.

The Government has been monitoring developments within the cryptoasset industry, including rising energy usage.

The Cryptoasset Taskforce, comprising HM Treasury, the Financial Conduct Authority, and the Bank of England, considers the impact of cryptoassets and assesses what, if any, regulation is required in response. The Government stands ready to respond to emerging risks or changes in the market and will continue to monitor developments in cryptoassets.

In November 2020, the Chancellor announced that the UK will implement a green taxonomy – a common framework for determining which activities can be defined as environmentally sustainable – which will improve understanding of the impact of firms’ activities and investments on the environment and support our transition to a sustainable economy. More details on the green taxonomy will be announced in due course.

The Government has already taken action to ensure the UK is the world-leading centre for green finance including through announcing an intention to make disclosures aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) fully mandatory across the economy by 2025, making the UK the first country to do so.

The Government is committed to upholding its pledge relating to the Paris Climate Agreement and have enacted a legally binding target to reach net zero greenhouse gas emissions by 2050. Between 1990 and 2018, the UK reduced its emissions by 43% while growing the economy by 75% – the best performance in the G7 on a per person basis and will continually assess any emerging environmental threats.

The Government has been monitoring developments within the cryptoasset industry, including rising energy usage.

The Cryptoasset Taskforce, comprising HM Treasury, the Financial Conduct Authority, and the Bank of England, considers the impact of cryptoassets and assesses what, if any, regulation is required in response. The Government stands ready to respond to emerging risks or changes in the market and will continue to monitor developments in cryptoassets.

In November 2020, the Chancellor announced that the UK will implement a green taxonomy – a common framework for determining which activities can be defined as environmentally sustainable – which will improve understanding of the impact of firms’ activities and investments on the environment and support our transition to a sustainable economy. More details on the green taxonomy will be announced in due course.

The Government has already taken action to ensure the UK is the world-leading centre for green finance including through announcing an intention to make disclosures aligned with the Taskforce on Climate-related Financial Disclosures (TCFD) fully mandatory across the economy by 2025, making the UK the first country to do so.

The Government is committed to upholding its pledge relating to the Paris Climate Agreement and have enacted a legally binding target to reach net zero greenhouse gas emissions by 2050. Between 1990 and 2018, the UK reduced its emissions by 43% while growing the economy by 75% – the best performance in the G7 on a per person basis and will continually assess any emerging environmental threats.

The NHS is a key spending priority for the government and that is why it committed in 2018 to a historic settlement that provides a cash increase of £33.9 billion a year by 2023-24. The announcement was clear that “some of the extra funding will come from the money the government will no longer spend on the annual membership subscription to the European Union after Britain has left”

Since then, we have gone even further, and announced a new Health and Social Care Levy which will provide a further £15.7bn to the NHS over the next 3 years.

Alongside the announcement of the Health and Social Care Levy, the government has published a number of documents that set out the impact of the policy, including distributional analysis and a Tax Information and Impact Note.

The Government recognises that the community-led housing sector offers significant potential for helping to meet housing need across the country. Discussions on the upcoming Spending Review will cover a range of important issues.

All Union flags purchased by the Treasury since January 2019 were manufactured in the UK.

All Union flags purchased by the Treasury since January 2019 were manufactured in the UK.

No estimate has been made of the information requested. HM Revenue and Customs (HMRC) cannot identify individuals registered as overseas electors within tax data.

No estimate has been made of the information requested. HM Revenue and Customs (HMRC) cannot identify individuals registered as overseas electors within tax data.

Ordinarily only traders or their agents who are authorised to use the simplified customs declaration process (SCDP), which allows them to make the declaration in their own records, can delay making a customs declaration to HMRC (and then only until the fourth working day of the following month). However, until 31 December 2021 most importers of non-controlled goods from the EU can choose to delay the submission of their customs declarations to HMRC for up to 175 days after import as part of the staged approach to customs controls (SCC).

HMRC’s understanding to date is that overall use of delayed declarations (whether under SCDP or as part of SCC) in 2021 so far has been high.

HMRC is receiving broadly the volume of declarations expected, and where declarations are being delayed, they are typically being submitted well within the 175-day window permitted by staged customs controls.

HMRC continues to monitor declarations closely, as well as supporting traders to prepare for the ending of staged customs controls delayed declarations on 1 January.

Throughout the pandemic, the Government has sought to protect people’s jobs and livelihoods while also supporting businesses and public services across the UK.

To do this the Government has put in place an economic package of support totalling over £350 billion, including through the Coronavirus Job Retention Scheme, the Self-Employment Income Support Scheme, and a wide range of other support, such as loan schemes, business grants, business rates relief, VAT relief, mortgage holidays, and increased welfare support.

The Health and Social Care Levy Bill recently passed through the Commons. The Bill introduces a new, UK-wide 1.25 per cent ringfenced Health and Social Care Levy based on National Insurance Contributions (NICs) and paid by employers, employees and the self-employed. The Levy will be introduced from April 2022.

This Levy together with the equivalent increase in dividend tax rates will make available an additional £12 billion a year for the NHS and social care.

The government currently has no plans to review the introduction of the Health and Social Care Levy.

The Government is considering the merits of extending small producer reliefs to other categories as part of its alcohol duty review. Further updates will be provided in our response to the alcohol duty review call for evidence in due course.

The Office for Budget Responsibility (OBR) published its fuel duties forecast up to and including 2025-26, as part of its Economic and fiscal outlook in March 2021. This set out that fuel duties are estimated to reach £26.0bn in 2021-22, £29.2bn in 2022-23, £30.1bn in 2023-24, £30.6bn in 2024-25 and £31.2bn in 2025-26.

An updated forecast is expected to be published by the OBR on Wednesday 27 October.

HMRC is responsible for registering pension schemes where they wish to benefit from the tax reliefs available to pensions.

As a result of pension tax simplification, pension scheme registration was moved to a new online digital system in 2006.

As part of a wider government response to concerns surrounding pension scams, in 2014 legislation was introduced to enable HMRC to refuse registration where the scheme administrators were not considered to be fit and proper.

CPI inflation in August was 3.2% having risen from low levels last year. The Bank of England expects the increase in inflation to be temporary, with inflation returning to its 2% target level through 2022 and 2023.

Since the operationally independent Bank of England took on responsibility for inflation, it has averaged around the 2% target. The Government remains committed to price stability.

We understand that higher prices increase the costs of living, and that is why this Government has taken direct action to help people manage the cost of living by increasing the National Living Wage, taken action on the cost of fuel and energy bills and increasing the Local Housing Allowance.

The Government recognises the value of co-operatives. It is clear they offer a different way of running a business, supporting the needs of their members and their local communities.

HMT does not hold any data regarding the amount spent by local authorities in England on helping to set up new business co-operatives. Local authorities in England have significant freedoms to choose what investments to make and how to finance them.

When moving goods temporarily into or out of the UK, an ATA Carnet provides an option which can help simplify customs formalities by allowing a single document to be used for clearing goods through customs in the countries that are part of ATA Carnet system. The use of a carnet is optional and is a commercial decision depending on an individual or business’s specific circumstances. In the UK, ATA Carnets are administered by the London Chamber of Commerce and Industry (LCCI).

International travel has been severely affected by the COVID-19 pandemic and the number of goods movements using ATA Carnets has dropped. At the moment it is difficult to project numbers with any certainty. Numbers are likely to increase owing to the UK’s withdrawal from the EU and the gradual lifting of travel restrictions throughout the world. HMRC, in conjunction with the LCCI and Border Force, monitor ATA Carnet usage on a regular basis.

An alternative option to an ATA Carnet is the use of the Temporary Admission procedure in conjunction with Returned Goods Relief. Temporary Admission is a customs special procedure that may be used to temporarily import goods into the UK without payment of duties subject to relevant conditions being met.

Businesses and individuals returning goods to the UK, having temporarily imported them to another customs territory, can claim relief from import VAT and any customs duty under Returned Goods Relief providing specific conditions are met. Returned Goods Relief applies to goods exported from the UK and re-imported in an unaltered state.

The EU operates similar procedures therefore, for goods moving temporarily to the EU, the EU’s Temporary Admission procedure may be applicable, and the EU’s Returned Goods Relief may apply where goods are returned to the EU having been temporarily imported into the UK. The management of EU import and export procedures is the responsibility of the customs authorities of the EU Member States.

HMT offices have remained open throughout the pandemic with access to staff for business and wellbeing reasons and our building health and safety assessment has been reviewed and updated during this period. Staff working from home have been supported through a number of measures, including homeworking Display Screen Equipment assessments to support their health and safety. HMT has been able to deliver its full agenda throughout this period.

HMT applies central Civil Service policy in relation to working from other countries.

As set out in ‘Build Back Better: Our Plan for Health and Social Care’, the net revenue from the Health and Social Care Levy will be around £11.4 billion a year, from 2022-23. A full costing of the policy will be certified by the independent Office for Budget Responsibility at the Budget.

In my role as Economic Secretary, I have been a champion of the mutuals sector. It is clear to me that mutuals bring something different to other forms of running a business, with their clear focus on delivering the services their members and communities need.

The Government has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit Societies Act 2014 helped cut through the legal complexity involved in running a co-operative, improving their competitiveness. The ability of co-operatives to raise £100,000 of withdrawable share capital per member, increased from £20,000 in 2014, has also ensured that co-operatives have the necessary flexibility to raise funding and compete more effectively with companies.

Furthermore, following the interest rate cap rise from 2% to 3% in 2014, credit unions have been able to expand into higher-risk markets and provide an important alternative to high-cost lenders. The prize-linked savings scheme, which was offered through credit unions, has also helped increase individuals’ financial resilience and raise awareness of credit unions. Building societies and credit unions have also played a key role in supporting consumers through the COVID-19 pandemic by keeping their branches open, which I thanked them for in a letter in April 2020.

Mutuals have benefitted from financial support provided by the Government to businesses during the pandemic, including the Coronavirus Job Retention Scheme. Mutuals also benefitted from the Corporate Insolvency and Governance Act 2020, which provided significant flexibility for mutuals in holding their annual general meetings, as well as improved the insolvency regime for co-operatives. Credit unions have also benefited from the distribution of dormant asset funding by Fair4All Finance, including their £5m COVID resilience fund.

As we build back better from the pandemic, the Government is looking to support the growth of the mutuals sector. The Chancellor announced at Budget 2020 that the Government intends to bring forward changes to the Credit Unions Act to allow credit unions to offer a wider range of products and services. Officials have been engaging with credit unions to ensure changes meet the needs of members and credit unions. This measure will be brought forward when parliamentary time allows.

At Budget 2021, the Government also announced the £150m Community Ownership Fund. This will allow community groups to bid for up to £250,000 matched-funding to help them buy or take over local community assets at risk of being lost and run them as community-owned businesses, supporting co-operative entrepreneurship. First round bids are currently being assessed and funding decisions will be announced in due course.

I meet with the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) on a regular basis to discuss various matters. Officials also engage regularly with the FCA and PRA to discuss how best to support the growth and stability of the mutuals sector. However, the regulators are independent of Government and the Government cannot direct them to consider specific issues.

In my role as Economic Secretary, I have been a champion of the mutuals sector. It is clear to me that mutuals bring something different to other forms of running a business, with their clear focus on delivering the services their members and communities need.

The Government has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit Societies Act 2014 helped cut through the legal complexity involved in running a co-operative, improving their competitiveness. The ability of co-operatives to raise £100,000 of withdrawable share capital per member, increased from £20,000 in 2014, has also ensured that co-operatives have the necessary flexibility to raise funding and compete more effectively with companies.

Furthermore, following the interest rate cap rise from 2% to 3% in 2014, credit unions have been able to expand into higher-risk markets and provide an important alternative to high-cost lenders. The prize-linked savings scheme, which was offered through credit unions, has also helped increase individuals’ financial resilience and raise awareness of credit unions. Building societies and credit unions have also played a key role in supporting consumers through the COVID-19 pandemic by keeping their branches open, which I thanked them for in a letter in April 2020.

Mutuals have benefitted from financial support provided by the Government to businesses during the pandemic, including the Coronavirus Job Retention Scheme. Mutuals also benefitted from the Corporate Insolvency and Governance Act 2020, which provided significant flexibility for mutuals in holding their annual general meetings, as well as improved the insolvency regime for co-operatives. Credit unions have also benefited from the distribution of dormant asset funding by Fair4All Finance, including their £5m COVID resilience fund.

As we build back better from the pandemic, the Government is looking to support the growth of the mutuals sector. The Chancellor announced at Budget 2020 that the Government intends to bring forward changes to the Credit Unions Act to allow credit unions to offer a wider range of products and services. Officials have been engaging with credit unions to ensure changes meet the needs of members and credit unions. This measure will be brought forward when parliamentary time allows.

At Budget 2021, the Government also announced the £150m Community Ownership Fund. This will allow community groups to bid for up to £250,000 matched-funding to help them buy or take over local community assets at risk of being lost and run them as community-owned businesses, supporting co-operative entrepreneurship. First round bids are currently being assessed and funding decisions will be announced in due course.

I meet with the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) on a regular basis to discuss various matters. Officials also engage regularly with the FCA and PRA to discuss how best to support the growth and stability of the mutuals sector. However, the regulators are independent of Government and the Government cannot direct them to consider specific issues.

In my role as Economic Secretary, I have been a champion of the mutuals sector. It is clear to me that mutuals bring something different to other forms of running a business, with their clear focus on delivering the services their members and communities need.

The Government has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit Societies Act 2014 helped cut through the legal complexity involved in running a co-operative, improving their competitiveness. The ability of co-operatives to raise £100,000 of withdrawable share capital per member, increased from £20,000 in 2014, has also ensured that co-operatives have the necessary flexibility to raise funding and compete more effectively with companies.

Furthermore, following the interest rate cap rise from 2% to 3% in 2014, credit unions have been able to expand into higher-risk markets and provide an important alternative to high-cost lenders. The prize-linked savings scheme, which was offered through credit unions, has also helped increase individuals’ financial resilience and raise awareness of credit unions. Building societies and credit unions have also played a key role in supporting consumers through the COVID-19 pandemic by keeping their branches open, which I thanked them for in a letter in April 2020.

Mutuals have benefitted from financial support provided by the Government to businesses during the pandemic, including the Coronavirus Job Retention Scheme. Mutuals also benefitted from the Corporate Insolvency and Governance Act 2020, which provided significant flexibility for mutuals in holding their annual general meetings, as well as improved the insolvency regime for co-operatives. Credit unions have also benefited from the distribution of dormant asset funding by Fair4All Finance, including their £5m COVID resilience fund.

As we build back better from the pandemic, the Government is looking to support the growth of the mutuals sector. The Chancellor announced at Budget 2020 that the Government intends to bring forward changes to the Credit Unions Act to allow credit unions to offer a wider range of products and services. Officials have been engaging with credit unions to ensure changes meet the needs of members and credit unions. This measure will be brought forward when parliamentary time allows.

At Budget 2021, the Government also announced the £150m Community Ownership Fund. This will allow community groups to bid for up to £250,000 matched-funding to help them buy or take over local community assets at risk of being lost and run them as community-owned businesses, supporting co-operative entrepreneurship. First round bids are currently being assessed and funding decisions will be announced in due course.

I meet with the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) on a regular basis to discuss various matters. Officials also engage regularly with the FCA and PRA to discuss how best to support the growth and stability of the mutuals sector. However, the regulators are independent of Government and the Government cannot direct them to consider specific issues.

In my role as Economic Secretary, I have been a champion of the mutuals sector. It is clear to me that mutuals bring something different to other forms of running a business, with their clear focus on delivering the services their members and communities need.

The Government has sought to improve the business environment for co-operatives and mutuals. The Co-operative and Community Benefit Societies Act 2014 helped cut through the legal complexity involved in running a co-operative, improving their competitiveness. The ability of co-operatives to raise £100,000 of withdrawable share capital per member, increased from £20,000 in 2014, has also ensured that co-operatives have the necessary flexibility to raise funding and compete more effectively with companies.

Furthermore, following the interest rate cap rise from 2% to 3% in 2014, credit unions have been able to expand into higher-risk markets and provide an important alternative to high-cost lenders. The prize-linked savings scheme, which was offered through credit unions, has also helped increase individuals’ financial resilience and raise awareness of credit unions. Building societies and credit unions have also played a key role in supporting consumers through the COVID-19 pandemic by keeping their branches open, which I thanked them for in a letter in April 2020.

Mutuals have benefitted from financial support provided by the Government to businesses during the pandemic, including the Coronavirus Job Retention Scheme. Mutuals also benefitted from the Corporate Insolvency and Governance Act 2020, which provided significant flexibility for mutuals in holding their annual general meetings, as well as improved the insolvency regime for co-operatives. Credit unions have also benefited from the distribution of dormant asset funding by Fair4All Finance, including their £5m COVID resilience fund.

As we build back better from the pandemic, the Government is looking to support the growth of the mutuals sector. The Chancellor announced at Budget 2020 that the Government intends to bring forward changes to the Credit Unions Act to allow credit unions to offer a wider range of products and services. Officials have been engaging with credit unions to ensure changes meet the needs of members and credit unions. This measure will be brought forward when parliamentary time allows.

At Budget 2021, the Government also announced the £150m Community Ownership Fund. This will allow community groups to bid for up to £250,000 matched-funding to help them buy or take over local community assets at risk of being lost and run them as community-owned businesses, supporting co-operative entrepreneurship. First round bids are currently being assessed and funding decisions will be announced in due course.

I meet with the Financial Conduct Authority (FCA) and the Prudential Regulatory Authority (PRA) on a regular basis to discuss various matters. Officials also engage regularly with the FCA and PRA to discuss how best to support the growth and stability of the mutuals sector. However, the regulators are independent of Government and the Government cannot direct them to consider specific issues.