Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what steps they are taking to address challenges faced by small businesses and importers due to the introduction of new border checks and paperwork requirements post-Brexit.

Answered by Lord Douglas-Miller - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

The Border Target Operating Model (BTOM) sets out our new global regime of border controls that makes better use of technology and data to reduce friction and the cost of border controls for businesses and consumers when compared to the proposed July 2022 regime. It will create a radically simpler yet secure experience for traders moving goods across the UK border.

After engaging with stakeholders and considering the implementation challenges they raised, alongside the need to manage biosecurity risks, we have adapted the timeline we originally published in the draft version of the BTOM to give businesses and their supply-chains more time to prepare. Many goods, including more than 60% of animal product consignments, are now deemed low risk and either not controlled at all or only subject to pre-notification, and medium risk goods are subject to fewer physical checks than the EU’s regime.

Defra has also introduced several facilitations for groupage movements, as well as developing our Certification Logistics Pilot. Those facilitations include: relaxed official sealing requirements for animal products; greater flexibility in transporting groupage loads; elimination of 'Either/Or' sections in health certificates; the use of schedules allowing greater number of similar animal products under a single export health certificate, and greater flexibilities in the pre-notification and import declaration processes.

All businesses will also benefit from the Single Trade Window, a simple service gateway that serves as a single point of interaction between businesses and UK border processes, submitting information to the Government only once and in only one place ensuring administration costs are kept to a minimum.

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 6^th 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.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to mitigate any risks associated with trading crypto-backed exchange traded notes by professional investors, particularly in relation to market manipulation and investor protection.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of recent fluctuations in the exchange rate of the pound sterling on the price of imports and exports.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

Many factors have been relevant in driving movements in aggregate trade prices.

While movements in the exchange rate would likely have influenced these changes in trade prices, movements in broader global prices (such as energy and other tradable commodities) have been a far bigger factor in driving movements in aggregate trade prices.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to accelerate progress towards gender equality in the financial services industry.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

The Government has a wide programme of work aimed at tackling gender inequality and supporting women in the workplace.

Since 2017, organisations with 250 or more employees have been required to publish specific data on their gender pay gaps annually, ensuring they are aware of their gender pay gaps and are taking steps to improve gender equality in their organisation.

The Government has taken action to ensure that working parents can balance work and care by expanding childcare entitlements, making flexible working simpler to access, and introducing carer's leave.

Regarding the financial services industry specifically, the Government has taken action to ensure the sector remains world-class, and as productive, innovative and competitive as it can be. In 2016, the Government launched the Women in Finance Charter, which aims to ensure that the right talent is being attracted to the sector and that the best and brightest can continue to rise to the top, regardless of their gender.

The Charter’s Annual Reviews have consistently shown that the Charter has stimulated positive progress across the sector. Participation in the Charter is voluntary, and the first wave of signatories to the Charter started out with an average level of senior female representation of 27%. The signatory base has grown since then and average representation now stands at 35%.

The Treasury Committee’s Sexism in the City inquiry recently made a number of recommendations to the industry, the regulators and Government to consider in order to accelerate progress. The Government will respond to the report and its recommendations in due course.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the impact of slowing wage growth on household finances and consumer spending; and what steps they are taking to mitigate any negative impact.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

Real wages have increased for seven consecutive months and are 1.1% above their pre-pandemic level.

ONS retail sales volumes increased by 3.4% on the month in January, representing a full recovery of the decline seen in December 2023.

Question to the HM Treasury:

To ask His Majesty's Government, following the publication of the draft Payment Services (Amendment) Regulations 2024, what steps they are taking to introduce legal safeguards to protect consumer rights and ensure transparency in the process of delaying payments for further investigation.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

The government takes the issue of fraud very seriously and is dedicated to protecting the public from this devastating crime.

The government has published draft legislation that allows the sending of payments to be delayed where there are reasonable grounds to suspect fraud or dishonesty, and more time is needed to contact the customer or relevant third parties.

Subject to some exceptions to ensure Payment Service Providers (PSPs) meet other legal obligations, for example around tackling financial crime, PSPs will be obliged to inform the customer, set out the reasoning behind a delay, and what information or actions are needed to enable the PSP to decide whether to execute the payment.

The government intends to introduce this legislation in summer 2024 and, subject to Parliamentary approval, for it to come into force on 7 October 2024.

Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the potential (1) costs, and (2) benefits, of reintroducing tax-free shopping for international visitors, including the impact on (a) retail sales, (b) employment levels, and (c) economic recovery.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

As set out at Spring Budget 2024, the government is considering the findings of the OBR’s review of the original costing of the withdrawal of tax-free shopping, published in the Economic and Fiscal Outlook on 6 March, alongside industry representations and broader data. The government welcomes further submissions in response to the OBR’s findings.

Question to the Cabinet Office:

To ask His Majesty's Government, in the light of the recommendations of the Independent Review of the UK Statistics Authority on the separation of functions and reporting arrangements, what steps they are taking to ensure greater transparency in the governance and enhancements of the statistical system.

Answered by Baroness Neville-Rolfe - Minister of State (Cabinet Office)

The independent review of the UK Statistics Authority and the Government’s response to the recommendations were published on 12 March 2024. They can be found here: https://www.gov.uk/government/publications/independent-review-of-the-uk-statistics-authority-uksa-2023

The review made 19 separate recommendations to the UK Statistics Authority and Cabinet Office including amending the statistical legislation (Statistical and Registration Services Act 2007) to better reflect the governance arrangements in place and reflect the practical operation of the UKSA.

The Government agrees in principle with this recommendation but noted that - given that the report concluded the current arrangements were working in practice - this is not a current priority for legislation and will be a matter for the next Parliament to consider. However, in our response we said that the UKSA leadership in the meantime should take active steps to better communicate the current working arrangements to assure users and stakeholders that robust systems are in place to regulate the Office for National Statistics and the wider Government Statistical Service.

The Government also welcomed wider recommendations regarding transparency, such as establishing a triennial statistical assembly which will allow users and the Authority to discuss priorities in an open and constructive way.

Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government, following reports of stabilisation and growth in the housing market, what steps they are taking to ensure that this translates into an increased housing supply, particularly in areas facing housing shortages.

Answered by Baroness Swinburne - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

Housebuilding is a priority for this Government, and we are on track to meet our manifesto commitment to deliver one million homes over this Parliament. In December, the revised National Planning Policy Framework was published, making clear that a core purpose of the planning system is planning for the homes and other development that our communities need. With both the Levelling Up and Regeneration Act and the new Framework now in place, alongside the additional resources for planning departments the Government has recently announced, our planning reforms will accelerate the delivery of new homes.

We are spending billions to support housebuilding, including through our £1 billion Brownfield Infrastructure and Land Fund and our £1.5 billion Levelling Up Homebuilding Fund (LUHBF). We have scaled up the delivery of affordable housing by investing £11.5 billion through the Affordable Homes Programme, which will provide thousands of new homes for rent and sale across the country.

In February, we announced that we are consulting on a range of new measures to boost housebuilding while protecting the Green Belt, through strengthening planning support for brownfield housing development. Legislation was also laid to extend current permitted development rights to support the conversion of commercial buildings of any size into new homes, and we announced an expansion of the ENABLE Build scheme to increase availability of SME finance to the sector.

Question to the Department for Transport:

To ask His Majesty's Government what steps they are taking to implement contingency plans to manage the impact of the upcoming train strikes in April across multiple rail companies.

Answered by Lord Davies of Gower - Parliamentary Under-Secretary (Department for Transport)

On 20 March, ASLEF announced a further rolling programme of one-day strikes and action short of strike on the National Rail network. The rail industry is working on contingency planning and will do all it can to minimise the impacts for passengers. During periods of strike action, rail operators deploy measures such as implementing amended timetables to ensure services can be delivered reliably and safely. To minimise impacts and keep passengers informed during periods of strike action, the rail industry uses widespread passenger messaging to publicise disruption and the latest travel information in stations, through websites, and on social media channels.

The government has also put in place legislation to enable train operators to plan for a 40% minimum level of service during strikes. It is a decision for individual employers whether to use this new tool to mitigate the impact of strikes, but we expect operators to be ready and able to do so, and to make that decision in the best interests of passengers.

The Rail Delivery Group has presented a fair and reasonable offer to ASLEF which it rejected without allowing its members to vote on their future. We continue to urge ASLEF to put the offer to their members in the train companies to give them a say on their future.

Question to the Department for Digital, Culture, Media & Sport:

To ask His Majesty's Government what assessment they have made of the impact of the Football Governance Bill and independent football regulator on the governance structures and processes in football clubs and leagues.

Answered by Lord Parkinson of Whitley Bay - Parliamentary Under Secretary of State (Department for Culture, Media and Sport)

The Football Governance Bill, introduced to the House of Commons on 19 March, will establish an Independent Football Regulator. In consultation with interested parties and experts, the new regulator will publish a ‘Football Club Corporate Governance Code’. Clubs will be required to report on corporate governance, setting out how they apply the Code in their individual circumstances. This approach has been designed to be proportionate, and to increase transparency, scrutiny and accountability with regard to how football clubs are run.

Question to the HM Treasury:

To ask His Majesty's Government, further to the announcement by the Chancellor of the Exchequer on 2 March concerning the requirement by 2027 for pension funds to disclose how much they invest in British businesses, what steps they are taking to assess the potential consequences on overall competitiveness and attractiveness of the UK as an investment destination.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

The Chancellor announced at Spring Budget that the government will introduce new requirements for Defined Contribution pension funds to disclose publicly their level of UK equity investments, working closely with the Financial Conduct Authority (the FCA) who share responsibility for setting requirements for the market. The FCA will consult in the Spring. The government will introduce equivalent requirements for Local Government Pension Scheme funds in England & Wales. The government will review what further action should be taken if the data does not demonstrate that UK equity allocations are increasing.

This complements the wider reforms that the Government and regulators are already undertaking to boost UK markets.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are considering to mitigate the potential inflationary effects of the increase in the National Living Wage and the National Minimum Wage.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

In March 2020 the Office for Budget Responsibility estimated that meeting the National Living Wage target of 2/3rds of median earnings by 2024 would increase the level of consumer price inflation by less than 0.1 per cent across that period. Evidence shows employers respond to minimum wage increases in a variety of ways, most commonly by absorbing the additional cost and accepting lower profits.

Inflation reduces real incomes, creates uncertainty, and slows economic growth. It’s essential that the government continues with its efforts to keep inflation down. Inflation has more than halved, falling from its peak of 11.1% in October 2022 to 3.4% in February. The OBR forecasts that inflation will return to the 2% target in the second quarter of this year, a year earlier than forecast in November.

Question to the HM Treasury:

To ask His Majesty's Government, following reports that the economy returned to growth in January after entering a recession in the second half of 2023, what steps they are taking to (1) support, and (2) sustain positive momentum in, sectors of the economy which have shown signs of growth in 2024.

Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)

The government is pursuing an ambitious policy agenda to increase growth and productivity across the economy. This includes making full expensing permanent, a tax cut to companies of over £10 billion a year, to ensure the UK has one of the most generous capital allowances regimes in the world and backing the UK’s priority growth sectors. At Spring Budget 2024, the government set out the next steps in delivering a £4.5 billion funding package for strategic manufacturing sectors over the five years to 2030 and announced over £1 billion of new tax reliefs for creative industries.

The IMF forecasts that the UK will have the third fastest cumulative growth in the G7 over the 2024-2028 period and the OBR expects that policies announced in the previous three fiscal events will increase the size of the economy by 0.7% by 2028-29.

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.

Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government, following reports that mortgages in arrears hit a seven-year high in the final quarter of 2023, what assessment they have made of the impact on (1) housing stability, and (2) homelessness rates.

Answered by Baroness Scott of Bybrook - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

The Government is closely monitoring levels of arrears and repossessions, which remain low by historic standards. Affordability assessment and stress testing of mortgage applications is helping ensure households do not move into arrears.

Lenders representing over 90% of the market have agreed to our Mortgage Charter, which includes new flexibilities to help customers manage their repayments over a short period. This is helping to support vulnerable households.

Financial Conduct Authority (FCA) rules require lenders to engage individually with their customers who are struggling or who are worried about their payments in order to provide tailored support.

The Government has also put in place measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans, protection in the courts through the Pre-Action Protocol, and the Housing Loss Prevention Advice Service (HLPAS).

Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government, following reports that water companies plan to raise customer bills by up to 70 per cent over the next five years, what assessment they have made of the impact of those rises on (1) household budgets, (2) consumer spending, and (3) overall economic stability; and what steps they are taking to mitigate any such challenges.

Answered by Lord Douglas-Miller - Parliamentary Under-Secretary (Department for Environment, Food and Rural Affairs)

The public have made it clear clean and plentiful water supply and environmental protection is a priority. New infrastructure will need to be paid for, and while water companies can attract private investment, this will also need to come from customer bills. There is a balance to be struck in terms of priorities – ensuring there is prioritised spending on infrastructure to reduce environmental harm and secure supplies for the future without unduly hitting billpayers with a big rise.

All water companies submitted their proposed business plans for Price Review 2024 to Ofwat in October 2023, which set out planned investment and proposed bill increases for 2025-2030. These are now undergoing scrutiny by the independent regulator Ofwat to ensure they meet the targets for environmental improvements and other obligations, whilst also offering value for money for consumers. As such, current reports of increases to bills over the next five years are not yet confirmed. Increases will be confirmed after Ofwat’s final determinations are published later this year, and new price controls will then come into force from 1st April 2025.

We are committed to a water sector that delivers for customers, the environment and wider society, and recognise that some households may struggle to pay their water bill in full. All water companies offer reduced bills for eligible customers via the WaterSure scheme and social tariffs as well as a range of other financial support measures. We are continuing to work with industry to explore options to improve existing social tariff arrangements.

Question to the Department for Transport:

To ask His Majesty's Government what assessment they have made of the role of hydrogen technology in reducing aviation carbon emissions to net zero by 2050, and what steps they are taking to accelerate the adoption of hydrogen-powered aircraft.

Answered by Lord Davies of Gower - Parliamentary Under-Secretary (Department for Transport)

The Government’s Jet Zero Strategy, published in July 2022, set out our approach to achieving net zero UK aviation by 2050 through multiple different measures. The use of hydrogen is considered in the Zero Emission Flight chapter of the Strategy.

The Strategy anticipates that hydrogen will be first deployed in short haul aviation with recognised uncertainty on the potential for and timing of its scaling up for use in long haul. As with all measures in the Jet Zero Strategy the Government keeps the evidence base under regular review and any changes will be reflected in future updates to the Strategy.

Between 2013 and 2030, industry and government will invest over £5 billion to develop transformational aircraft technology through the Aerospace Technology Institute Programme. This includes co-investment in industry led projects to develop hydrogen aircraft in the UK.

In 2022 a Delivery Group of the government and industry forum the Jet Zero Council was established to accelerate the adoption of zero emission flight.

Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government what assessment they have made of regional disparities in rental prices across the UK; and what steps they are taking to address affordability challenges for tenants.

Answered by Baroness Swinburne - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

The ONS publishes a number of regional datasets regarding the cost of private rented sector lettings, such as the monthly (attached) Price Index of Private Rents and an annual (attached) Housing affordability report, and DLUHC publishes its own annual (attached) English Housing Survey.

Individuals who need help to make their rent payments may be eligible for a range of support through the welfare system. From April 2024, the Government will raise Local Housing Allowance rates to the 30th percentile of local market rents. This significant investment of £1.2 billion means 1.6 million low-income households will gain, on average, nearly £800 per year in additional help towards their rental costs in 2024/25. For those who face a shortfall in meeting their housing costs and need more support, Discretionary Housing Payments and Household Support Fund grants are also available from local authorities.

Question to the Department for Business and Trade:

To ask His Majesty's Government what assessment they have made of reports that the number of company insolvencies last month were 17 per cent higher than one year earlier; and what steps they are taking to support struggling businesses.

Answered by Lord Offord of Garvel - Parliamentary Under Secretary of State (Department for Business and Trade)

Company insolvencies in 2023 were 14% higher than in 2022. However, the liquidation rate of 53.7 insolvencies per 10,000 active companies was lower than the recessionary peak of 94.7 per 10,000 in 2009. The average number of quarterly company insolvencies in the past 3 years (2021-2023) was 5,112. This is 28% higher than 2017 to 2019, when the quarterly average was 3,982.

The Government continues to support businesses, through Help to Grow: Management, Business Support Helpline, and Growth Hubs. Businesses can also access government-backed financial support from the British Business Bank. Additionally, the Help to Grow campaign and website has been refreshed, creating a one-stop shop for SMEs to find the information they need to grow and scale up.

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.

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.

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.

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.

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.

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.

Question to the Department for Work and Pensions:

To ask His Majesty's Government, following the release of data showing that the number of children living in absolute poverty has risen by the highest rate in 30 years, what steps they are taking to address the increase in child poverty rates.

Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)

These statistics cover 2022/23, a year when war in Ukraine and global supply chain challenges led to unexpected and high rates on inflation, averaging 10% over the year. These factors are reflected in the statistics. In response to these pressures, the Government provided an unprecedented cost of living support package which helped to shield households from the impact of inflation. Analysis shows that the Government’s cost of living support prevented 1.3 million people from falling into absolute poverty after housing costs in 2022/23. That includes 300,000 children, 600,000 working-age adults and 400,000 pensioners.

Since the period covered by these statistics, the Government has taken firm action to support families on the lowest incomes. The Government has spent around £276bn through the welfare system in 2023/24, including around £125bn on people of working age and children. We took action to support those on the lowest incomes by uprating benefits and State Pensions by 10.1% from April 2023. We are continuing to support people in 2024/25 by uprating working age benefits by 6.7% and raising the Local Housing Allowance rates to the 30^th percentile of local market rents, benefiting 1.6 million low-income households.

With over 900,000 vacancies across the UK, our focus remains firmly on supporting parents to move into and progress in work, an approach which is based on clear evidence about the importance of parental employment - particularly where it is full-time - in substantially reducing the risk of child poverty. The latest statistics show that in 2022/23, children living in workless households were over 6 times more likely to be in absolute poverty (after housing costs) than those where all adults work.

Question to the Department for Levelling Up, Housing & Communities:

To ask His Majesty's Government what steps they are taking to improve the effectiveness and efficiency of programmes funded under (1) the Levelling Up Fund, (2) the Towns Fund, and (3) the UK Shared Prosperity Fund, in addressing regional socio-economic divides across the UK.

Answered by Baroness Swinburne - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

The UK Government is committed to levelling up across the whole of the United Kingdom. As part of a wide range of policies and interventions, we are investing over £15 billion in a suite of complementary Levelling Up projects across the UK to help grow the economy, create jobs, redevelop local amenities, improve transport, provide skills training, and support local businesses.

The department plans to complete process, impact, and value for money evaluations on these funds. These evaluations will help improve effectiveness and efficiency of local growth funding.

271 bids have been awarded funding from our multi-billion-pound Levelling Up Fund, investing in infrastructure that improves everyday life for local residents across the UK. The published (attached) Levelling Up Fund Impact Evaluation Scoping Report sets out how the impact of the Fund will be estimated at the programme and project levels and at different geographies.

The UK Shared Prosperity Fund, worth £2.5 billion, is focused on overcoming deep-seated geographical inequalities, with investment in communities building pride in place, supporting high quality skills training, employment and productivity growth, and increasing life chances. Details of the UKSPF Evaluation Strategy (attached) are set out here: UK Shared Prosperity Fund: evaluation - GOV.UK (www.gov.uk).

The department has also committed £2.35 billion worth of Town Deals and £830 million of Future High Streets Funding across 170 high streets, town centres and local communities in England via the Towns Fund. Projects are now in delivery, and the funding has already provided a much-needed boost for town centres and local high streets. Details of the Towns Fund Monitoring and Evaluation Strategy (attached) are set out here: Towns Fund monitoring and evaluation strategy.

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.

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