Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the benefits to the UK's economy over the next 10 years of the UK leaving the EU.
Answered by John Glen
Agreeing the Withdrawal Agreement is self-evidently in our economic interest. It would bring an end to the damaging uncertainty and delay of the past years, and allow businesses to get on with taking decisions, including around recruitment and investment.
Approving the Withdrawal Agreement would also allow us to get on with the process of agreeing a mutually beneficial new trading relationship with our European friends - a comprehensive and ambitious free trade agreement (FTA). Leaving the Customs Union and Single Market allows the UK to pursue an ambitious FTA with the EU as sovereign equals, as well as striking trade deals with other international partners.
The specifics of our own agreement will be the subject of the next phase of negotiations. We will keep Parliament updated throughout those discussions and provide analysis at appropriate points.
The OBR will, of course, continue to take Government policy – including the UK’s future relationship with the EU – as the basis for its economic and fiscal forecasts, and will provide its usual comprehensive analysis as part of these.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effectiveness of the regulation in the cryptocurrencies in the UK; and if he will make a statement.
Answered by John Glen
The Cryptoassets Taskforce, consisting of HM Treasury, the Bank of England and the Financial Conduct Authority (FCA), published its report in October 2018. It concluded that strong action should be taken to address the risks associated with cryptoassets that fall within existing regulatory frameworks, and that further consultation and international coordination is required for those cryptoassets that pose new challenges to traditional forms of financial regulation, and fall outside the existing regulatory framework.
Since the report, the FCA has consulted and issued final guidance on the regulatory perimeter in relation to cryptoassets, and HMT has consulted on the transposition of the 5th Anti-Money Laundering Directive (5AMLD), which will bring cryptoasset exchanges and custodian wallet providers within the scope of anti-money laundering and counter-terrorist financing regulation.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential effect on (a) financial services and (b) the wider service economy of the UK leaving the EU without an agreement.
Answered by John Glen
As a responsible Government, we have been preparing for a range of potential EU exit outcomes for over two years, including the possibility of no deal.
In November 2018 the Government published a detailed set of economic analyses on the long-term impacts of EU exit on the UK economy, its sectors, nations and regions, and the public finances.
The analysis shows that the spectrum of outcomes for the future UK-EU relationship would deliver significantly higher economic output than the no deal scenario. Every sector, nation and region would be better-off than in a no deal scenario.
The complete analysis can be found in the “EU Exit: Long-Term Economic Analysis” paper, available on the Gov.uk website in Exiting the European Union: Publications section.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect on the (a) UK and (b) global economy of a US-China trade war.
Answered by John Glen
HM Government continuously monitors the global economy, and the Office for Budget Responsibility (OBR) produces the Government’s official economic forecasts. The OBR’s most recent forecast was published in March 2019 and can be accessed at https://obr.uk/efo/economic-fiscal-outlook-march-2019/. The UK economy remains resilient, growing for the ninth consecutive year in 2018. The employment rate is currently at a record high, unemployment is currently at its lowest rate since 1974, and real wages are rising.
In October 2018 the IMF estimated the impact of a trade tensions escalation. They estimated the impact would be global real GDP 0.2% lower in 2019 and 0.21% lower in the long term. The analysis also highlighted that the near term negative impact could be exacerbated by a decline in confidence and market reaction.
The UK has consistently stressed the importance of de-escalating trade tensions, which are in no one’s interest.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what representations he has made to the (a) US Administration and (b) Government of China on the potential effect on the UK economy of a US-China trade war.
Answered by John Glen
The Chancellor engages regularly with international counterparts on issues relating to the global economy. The UK has consistently stressed the importance of de-escalating trade tensions, which are in no one’s interest. We have been clear in our opposition to escalating tariffs which could result in fundamental disruption to global trade flows. This would clearly have a negative effect on the global economy. We will continue to work with our partners to support the rules-based international trading system.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance his Department has issued to the Listing Authorities on the suitability of Russian-controlled companies that apply to be listed on the London Stock Exchange.
Answered by John Glen
The Financial Conduct Authority (FCA) is the competent authority for listings and operates independently of Government. For listed companies, the UK Listing Authority (a division of the FCA) monitors and enforces compliance with the Listing Rules. The decision to approve an application for listing rests with the FCA and for admission to trading with the London Stock Exchange.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effect of recent increases in the National Living Wage and the personal allowance on the personal incomes of Mid Sussex constituents.
Answered by Mel Stride - Shadow Chancellor of the Exchequer
The government is committed to supporting working families and ensuring they retain more of what they earn. Following increases to the personal allowance threshold and National Living Wage that will come into effect across the UK from April, a full-time worker earning the National Living Wage in Mid Sussex will be taking home over £3,800 more per year after tax compared to a full-time minimum wage worker in 2010.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will grant councils the freedom to invest in local infrastructure in new housing developments.
Answered by Elizabeth Truss
Local authorities are free to borrow and invest in infrastructure for the benefit of local people without prior government consent, subject to assuring themselves that their borrowing costs are affordable.
Local authorities can secure contributions from developers to fund infrastructure through the Community Infrastructure Levy (CIL) and section 106 planning obligations. CIL is a flat rate charge on new development that local authorities can use to address the cumulative impact of development in their area. Section 106 planning obligations are negotiated agreements between local planning authorities and developers, and can be used to build infrastructure that will make a development acceptable in planning terms.
The government recognises the importance of infrastructure that supports housing. This is why the Autumn Budget 2017 announced a further £2.7bn for the Housing Infrastructure Fund, which supports infrastructure that unlocks housing, taking total investment in the fund to £5bn.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what progress his Department has made on improving the quality of statistics available to quantify levels of e-commerce.
Answered by John Glen
The government commissioned Professor Sir Charles Bean to carry out an Independent Review of UK Economic Statistics, which reported in March 2016. Since then, the government has invested over £10m to enable the Office for National Statistics to develop world-leading analytical and digital capabilities in economic measurement in line with the review’s recommendations.
For example, with the proportion of retail sales occurring online increasing to over one in six, from under one in twenty in 2008, it is crucial that economic statistics keep track of such a large and growing marketplace. The ONS is working closely with the OECD and Eurostat to explore new ways to capture trade via e-commerce. The evolving market place for goods and services requires improved international understanding of how these trades are carried out, whilst at the same time keeping the burden on business to a minimum.
Asked by: Lord Soames of Fletching (Conservative - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the ability of the financial service industry to continue to service cross-border clients after 2019 in the event that a transition period has not been agreed with the EU; and if he will make a statement.
Answered by Steve Barclay
Since the referendum last year, the Government has undertaken an extensive programme of engagement with financial services firms, in order to listen to concerns from across the sector and to understand how the UK’s exit from the EU could impact firms and their customers in a range of different scenarios. We have been clear that we are aiming for a deep relationship with our EU partners which will maintain as much of the current cross-border arrangements as possible.