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.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
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 30th 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.
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 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.
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 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.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
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.
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 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.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
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.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
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.