Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what steps they are taking to ensure that all workplaces in the United Kingdom use of generative AI tools, including chatbots and content-generation systems, is limited to technologies which are compliant with cybersecurity and data protection regulations.
Answered by Baroness Lloyd of Effra - Baroness in Waiting (HM Household) (Whip)
DSIT supports the use of AI tools in UK workplaces and has established voluntary baseline cyber security requirements for all AI systems and models. The Government’s Code of Practice for the Cyber Security of AI, published in 2025, identifies requirements for securing AI systems with an implementation guide to support adoption. DSIT officials are working with AI companies, and sectors adopting AI, to raise awareness and uptake of the Code. The ICO has issued employment practices and guidance on AI and data protection regulations to employers and has the authority to investigate and impose penalties for non-compliance.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Cabinet Office:
To ask His Majesty's Government what steps they are taking to enhance data accuracy and accountability in the Office for National Statistics.
Answered by Baroness Anderson of Stoke-on-Trent - Baroness in Waiting (HM Household) (Whip)
Access to accurate and impartial statistics and data is fundamental to a thriving democracy. Earlier this year, the Cabinet Office and the UK Statistics Authority commissioned a review on the performance and culture of the Office of National Statistics (ONS) after concerns were raised about the quality of our economic statistics.
The Devereux Review, the Cabinet Office and UKSA Board's official response to the Devereux Review, and the ONS’ plan for improving their economic statistics were published in June and are available on both the Cabinet Office and UK Statistics Authority websites.
Cabinet Office and HM Treasury are now working closely with ONS to progress the recommendations of the Devereux Review to enhance the quality of our data.
A new post of Permanent Secretary of the ONS has been created and filled, and a new Director General overseeing economic statistics has been appointed. The ONS is undergoing a prioritisation exercise which is focusing its resources on its core remit of producing economic, population and migration statistics. Progress is being tracked through regular meetings between Cabinet Office and the ONS.
The Cabinet Office is also clarifying the accountability and oversight arrangements of the UK Statistics Authority and ONS. The impartiality and operational autonomy of the UK Statistics Authority and ONS is essential for public trust and confidence in our official statistics, but the department must be accountable to both HM Government and Parliament for their performance and the quality of the data they produce. This relationship will be set out in a new Framework Document which will be published soon.
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 implications of the Bank of England’s updated remuneration rules on financial regulation and market stability.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Prudential Regulation Authority (PRA), which is part of the Bank of England, is responsible for setting banks’ and building societies’ remuneration rules, alongside the Financial Conduct Authority (FCA).
The PRA’s new requirements introduce greater flexibility around senior banker pay and strengthen the link between bonus awards and responsible risk-taking. In response to industry feedback, the final rules go further than the original proposals announced last year and apply retroactively to any awards not yet fully paid. The new requirements came into force on 16 October 2025.
The PRA assessed the impact of its updated remuneration rules against its statutory objectives, set by Parliament: a primary objective of promoting the safety and soundness of firms to avoid adverse effects on financial stability and secondary objectives of ensuring effective competition, and enhancing the growth and global competitiveness of the UK economy.
The PRA concluded that the new framework aligns with these objectives. The government supports the PRA’s assessment and decision which reflects our commitment to reinforcing the UK’s position as a competitive global financial sector, while maintaining the resilience and integrity of the financial system.
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 enable the adoption of tokenised funds using public blockchains while safeguarding against financial crime and systemic risk.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Financial Services Growth and Competitiveness Strategy set out a comprehensive ten-year plan to deliver growth and attract investment. Championing innovation is a key priority within this strategy, and the Government is working closely with industry stakeholders and regulators to remove barriers and unlock opportunities presented by new technologies.
Using distributed ledger technology to tokenise funds could support financial market efficiency by enabling more efficient, real-time data sharing which could lower operational costs and enhance resilience.
The Government has published its Wholesale Financial Markets Digital Strategy, which sets out the key steps the UK has to take to digitalise its financial markets, including through the tokenisation of assets. The Government is taking forward various measures in this space, in particular the Digital Securities Sandbox. The DSS provides a bespoke regulatory framework that enables firms to test, scale and roll out the tokenisation of securities. The Financial Conduct Authority (FCA) also recently launched a consultation for a new Direct2Fund model, allowing investors to engage directly with investment funds through blockchain technology.
To manage financial crime risks, fund managers and UK cryptoasset firms continue to be subject to the Money Laundering and Terrorist Financing Regulations, requiring strict supervision, customer checks and suspicious activity reporting.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department of Health and Social Care:
To ask His Majesty's Government what assessment they have made of the long-term fiscal implications of the updated NHS commercial framework for new medicines.
Answered by Baroness Merron - Parliamentary Under-Secretary (Department of Health and Social Care)
The update to the NHS Commercial Framework for New Medicines, published in 2025, provided greater detail about the options for enhanced commercial flexibilities for new medicines, and when such flexibilities can be offered. The update did not seek to expand or change the use of these mechanisms but was a technical update to provide improved clarity and to formalise existing arrangements. As such, NHS England does not consider that the update itself would be cost-inflationary for the National Health Service’s medicines budget. NHS England would expect increased costs if these updates help facilitate patient access to a larger number of medicines, but these costs would be incurred from improving patient health. Any additional costs as a result of better patient access will depend on the drugs brought forward for NHS use in the future.
However, the update also included confirmation of an increase to the Budget Impact Test threshold in England, from £20 million to £40 million. The intention to consult on the move to a £40 million threshold formed part of the 2024 voluntary scheme for branded medicines pricing, access and growth (VPAG). The cost of making this threshold increase was considered as part of the overall VPAG package.
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 strengthen the United Kingdom’s regulatory framework for crypto assets to address risks arising from inconsistent international regulation.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government intends to bring forward legislation this year to create a comprehensive financial services regulatory regime for cryptoassets in the UK.
The UK also continues to engage with key international partners to respond to the global challenges and opportunities presented by digital asset innovation, including through fora such as the Financial Stability Board.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government, following the UK-India investment agreements announced on 9 October, what cybersecurity policies are in place to protect cross-border digital financial transactions and financial technology cooperation between the UK and India.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Cyber security is a top priority for the Government, and HM Treasury works with the financial authorities, industry and with international partners to strengthen the financial sector’s resilience to threats and hazards of all origins, including cyber risks.
Cross-border transactions are an essential part of the global financial system, and Financial Market Infrastructure (FMI) plays a crucial role in enabling financial institutions and their customers to make payments, both in the UK and internationally.
Financial authorities deploy a range of tools to ensure FMI firms are resilient to the wide range of risks that they could face and that transactions are secure. This includes threat-led penetration testing and sector-wide cyber stress testing, alongside technical advice provided by the National Cyber Security Centre and the National Protective Security Authority.
The UK supports efforts to enhance cross border payments and is committed to achieving the aims of the G20 Roadmap, which seeks to make cross border payments faster, cheaper, more transparent and accessible.
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 ensure that financial technology regulatory reforms, including access for non-bank payment providers to payment infrastructure, maintain consumer protection and market transparency.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government is committed to making the UK the best place for Fintechs, including payment providers, to start, scale and list.
The National Payments Vision, published in November 2024, set out the Government's ambitions for the UK’s payments sector to deliver world-leading payments. It established three key pillars to guide future activity: innovation, competition and security. To implement this, the Payments Vision Delivery Committee, chaired by HM Treasury, is overseeing work to renew the UK’s retail payments infrastructure, including looking at access for non-bank payment providers.
Building on this, the Financial Services Growth and Competitiveness Strategy, published in July, delivers on the Government’s mission to shape a regulatory environment for financial services that is proportionate, predictable and internationally competitive, embracing innovation and leveraging the UK’s leadership in Fintech.
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 update financial technology regulations.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government is committed to making the UK the best place for Fintechs, including payment providers, to start, scale and list.
The National Payments Vision, published in November 2024, set out the Government's ambitions for the UK’s payments sector to deliver world-leading payments. It established three key pillars to guide future activity: innovation, competition and security. To implement this, the Payments Vision Delivery Committee, chaired by HM Treasury, is overseeing work to renew the UK’s retail payments infrastructure, including looking at access for non-bank payment providers.
Building on this, the Financial Services Growth and Competitiveness Strategy, published in July, delivers on the Government’s mission to shape a regulatory environment for financial services that is proportionate, predictable and internationally competitive, embracing innovation and leveraging the UK’s leadership in Fintech.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the Department for Transport:
To ask His Majesty's Government what regulatory oversight they are developing for autonomous vehicle AI, in the light of Waymo’s plan to launch driverless taxis in London next year.
Answered by Lord Hendy of Richmond Hill - Minister of State (Department for Transport)
The Automated Vehicles Act 2024 is delivering one of the most comprehensive legal frameworks of its kind anywhere in the world for self-driving vehicles, with safety at its core. This government announced in June 2025 that we are accelerating delivery of the Automated Passenger Services (APS) statutory instrument to Spring 2026.
The APS permitting scheme will regulate deployments of automated taxi-, private-hire -and bus-like vehicles. Where required, stringent safety assessments with be conducted by the Vehicle Certification Agency, and permits will be subject to consent by the relevant Local Authority.
Our consultation on the permitting scheme and draft statutory instrument closed on 28 September and responses are now being analysed. We aim to publish the government response in early 2026. We aim to implement the remainder of the AV Act in the second half of 2027.