Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Environment, Food and Rural Affairs:
To ask His Majesty's Government, following concerns raised by farmers regarding changes to the standard of food imports, what steps they are taking to address the impact of post-Brexit trade deals on British farmers.
Answered by Lord Douglas-Miller - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)
All food and drink products imported into the UK, including those from countries we have trade agreements with, must comply with the UK’s import requirements and standards. The independent Trade and Agriculture Commission concluded that our Free Trade Agreements with Australia, New Zealand and CPTPP are consistent with the maintenance of UK statutory protections in relation to animal and plant health, animal welfare and the environment.
Supporting UK food and agriculture is an integral part of the UK’s trade strategy. The Prime Minister made this clear at the Farm to Fork Summit in May 2023 and in his open letter to farmers. This letter, alongside the 2022 National Food Strategy, sets out the principles that guide our approach to agriculture and trade. We are putting farmers at the heart of British trade by delivering new export opportunities, protecting our sensitive sectors and our high food safety standards, upholding UK production standards and removing market access barriers.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Levelling Up, Housing & Communities:
To ask His Majesty's Government, following recent findings by the Resolution Foundation regarding the affordability and quality of housing, what steps they are taking to (1) address, and (2) mitigate, those challenges.
Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
Full details of the Government’s long-term plan for housing are available on gov.uk. This includes measures to increase the overall supply and availability of safe, warm and affordable homes. Boosting housing supply is key to affordability: we are on track to deliver our commitment to build one million homes this Parliament, are investing significant funding in affordable housing programmes through the £11.5 billion Affordable Homes Programme and £6 billion Affordable Homes Guarantee Scheme, and we have helped over 876,000 households purchase a home since spring 2010 through Government backed schemes.
Housing quality is also central to this plan. We have seen a strong decrease in the number of non-decent homes since 2010. This government has introduced the Social Housing (Regulation) Act 2023, including Awaab’s Law, and is applying the Decent Homes Standard to the private rented sector for the first time through the Renters (Reform) Bill, to ensure that all tenants benefit from homes that are safe and decent
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to (1) ensure that stabilising mortgage rates contribute to sustained growth in the housing market, and (2) address challenges faced by homebuyers concerning the increased cost of living.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The path to lower interest rates is through low inflation, and the Government is fully committed to supporting the Bank of England get inflation back down to the 2% target, including by keeping borrowing under control.
While the pricing of mortgages is ultimately a commercial decision for lenders in which the Government does not intervene, our plan is working, and the average offered mortgage rates on 2-year and 5-year fixed rates are now lower compared to their peak in Summer 2023.
The Government is committed to making the aspiration of homeownership a reality for as many households as possible and consequently operates a range of schemes that aim to increase the supply of low-deposit mortgages for credit-worthy households, including first-time buyers, increase the availability of new housing, and stimulate economic growth. These include the Mortgage Guarantee Scheme, which is open until the end of June 2025. We also help first-time buyers to save for a deposit through the Lifetime ISA and Help to Buy: ISA.
Over 876,000 households have been helped to purchase a home since spring 2010 through government-backed schemes.
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 Department for Energy Security & Net Zero:
To ask His Majesty's Government what support they intend to provide to households to adapt to changes in energy prices.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Energy prices have fallen significantly since winter 2022-23, and the Quarter 2 2024 price cap of £1,690 has fallen by nearly 60% since the Quarter 1 2023 price cap peak. Despite this, the Government has committed to supporting households in 2024-25, with a further cut to National Insurance contributions down to 8%, an increase to benefits of 6.7%, and the largest increase to the National Living Wage.
The Warm Home Discount continues to provide a £150 rebate off energy bills for eligible low-income households until 2025-26.
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 recent trends in consumer spending; and what assessment they have made of the impact of this on (1) the retail sector, and (2) the wider economy.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Consumer confidence has strengthened considerably over the past year. The March 2024 release of the GfK index indicated that consumer confidence was 15 points stronger than in March 2023.
Government continues to back consumers and retailers. With the economy beginning to turn a corner, we are now able to make responsible tax cuts to boost growth while meeting the fiscal rules to ensure sustainable public finances. These include cutting the employee main rate of National Insurance to 8%, which will make an average worker on £35,400 over £900 a year better off than before.
At Autumn Statement 2023 we extended Retail, Hospitality and Leisure relief for 2024-5, a tax cut worth £2.4 billion, and froze the small business multiplier for a fourth consecutive year. At Spring Budget 2024, the government went further still by supporting small retailers by increasing the VAT registration threshold to £90,000 and extending the Recovery Loan Scheme, now the Growth Guarantee Scheme.
Consumer confidence is intrinsically linked to inflation, household finances and the broader economic outlook. To sustain consumer confidence, consumers need to feel assured that their government is taking the long-term decisions necessary to strengthen the economy and build a brighter future.
Combined, recent policy measures will place more money in people’s pockets, helping boost consumer confidence, and strengthen the UK’s retail sector.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, following the revision to the UK's sovereign credit outlook by global ratings agency Fitch from negative to stable, what assessment they have made of the impact of this on the UK's standing in (1) global trade, and (2) investment markets.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
On the 22nd of March 2024 Fitch returned the UK’s rating to AA- with a stable outlook, meaning all three major credit ratings agencies now indicate that the UK has a stable outlook.
This is further evidence that the economy is turning a corner. Inflation has fallen from over 11% to 3.4% and is forecast to fall back to target in a few months’ time. The economy has grown so far this year, with growth forecast to pick up both this year and next. Debt is falling in the final year of the forecast, meeting our fiscal rules.
Underlying demand for the UK’s sovereign debt remains strong and is supported by a generally well-diversified investor base. This reflects the UK’s central position in global trade and investment markets.
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.