Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the EU has agreed to implement (a) temporary equivalence and recognition for UK central counterparties and central securities depositories, (b) the European Securities and Markets Authority’s decision to approve Memoranda of Understanding on allowing cross-border delegation of portfolio management between the UK and the EEA and (c) the European Insurance and Occupational Pensions Authority's recommendations on relevant member state regulators to minimise detriment to insurance policyholders in the in the event the UK leaves the EU without an agreement.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
I refer the Hon. Member to the answer that I gave on 24 July 2019 under UIN 279465.
We welcome the steps taken by the EU and some individual member states to help mitigate cliff-edge risks to financial services. This includes:
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Guidance on how to prepare for Brexit if there's no deal, published by the Department for Exiting the European Union, what parts of the plan for banking, insurance and other financial services in the event that the UK leaves the EU without a deal have been implemented.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has done the necessary work to make sure that we continue to have a stable and functioning financial services regime at the point of leaving the EU in a no deal scenario.
The Government has delivered a programme of legislation under the EU Withdrawal Act in order to provide continuity for UK citizens and businesses and to ensure the UK regulatory regime can function effectively outside of the EU.
This legislation includes temporary permissions for EEA firms currently passporting into the EU, and temporary permissions to allow UK firms to continue using Central Counterparties (CCPs) and Central Securities Depositories (CSDs) in the EEA. It also includes a transitional power for regulators to phase in post-exit regulatory requirements for firms where they have changed as a result of the UK leaving the EU.
Following the six-month Article 50 extension, new EU financial services legislation will become applicable between now and 31 October 2019 and will therefore form part of UK law on exit day. We are laying further Statutory Instruments under the EU Withdrawal Act to ensure this new legislation is workable in the UK at exit.
However, it should be noted that the UK authorities are not able through unilateral action to fully address all the risks. For example, the risks to EEA customers of UK firms currently providing services into the EEA using the financial services passport also require action from the EU or individual member states.
We therefore welcome the steps taken by the EU and some individual member states to mitigate some of the risks. This includes: the EU’s temporary equivalence and recognition for UK CCPs and CSDs; ESMA’s decision to approve Memoranda of Understanding (MoUs) that include provisions to allow cross-border delegation of portfolio management between the UK and the EEA; and EIOPA recommendations which call on relevant member state regulators to put in place measures which aim to minimise detriment to insurance policyholders.
As a result of all these actions, the Bank of England’s Financial Policy Committee said in its Financial Stability Report (July 2019): ‘Most risks to UK financial stability from disruption to cross-border financial services in a no-deal Brexit have been mitigated.’ But they also note that ‘in the absence of further action by EU authorities, some disruption to cross-border financial services is possible.’
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many (a) businesses and (b) companies (i) have an Economic Operator Registration and Identification (EORI) number, (ii) require an EORI number but do not have one and (iii) have applied for an EORI number and not received one.
Answered by Jesse Norman
Approximately 479,000 traders hold a live Economic Operator Registration and Identification (EORI) number issued by HM Revenue and Customs (HMRC). It is not possible to provide a breakdown of this data.
Data on the number of traders that would need a UK EORI number is not readily available.
HMRC have issued UK EORI numbers to all traders who registered for a number and did not already possess one at the time of their registration.
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Guidance on how to prepare for Brexit if there's no deal, published by the Department for Exiting the European Union, what parts of the plan for VAT for businesses in the event that the UK leaves the EU without a deal have been implemented.
Answered by Jesse Norman
As a responsible government, the Government has been preparing plans to minimise any disruption in the event of no deal for nearly three years.
HM Revenue and Customs and HM Treasury are aware of the VAT policies that need to be delivered for exit day and the Government remains confident that all required SIs will be brought forward in good time.
In light of the extension that has now been agreed, departments continue to advance their ‘no deal’ preparations and are making sensible adjustments on the timing and pace at which certain work is progressing, so that the Government is ready to implement necessary work in the lead-up to 31 October if needed.
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of two-factor payment authentication on (a) consumers and (b) businesses.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The implementation of Strong Customer Authentication, which mandates two-factor authentication for some online payments, will introduce more secure payments for individuals and businesses.
This was introduced by the second Payment Services Directive. HM Treasury published an impact assessment on the implementation of this EU directive in 2017.
In an Opinion published on 21 June, the European Banking Authority acknowledged the complexity of payments markets and the practical challenges arising from the changes that are required by Strong Customer Authentication across the EU, which may lead to some actors in the payments chain not being ready by 14 September 2019.
The FCA is therefore working closely with industry to develop a migration plan to implement Strong Customer Authentication in a timely and effective manner.
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to ring-fence funding for mental health services.
Answered by Elizabeth Truss
Funding for mental health services will grow as a share of the overall NHS budget over the next five years, and the NHS long-term plan states that this will form “a new ringfenced local investment fund worth at least £2.3 billion a year by 2023/24.” This investment will enable further service expansion, for example new mental health crisis services for people of all ages and more mental health support in schools.
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the effect of the use of Blockchain technology on tackling the illegal traffic of goods across the border between (a) Northern Ireland and the Republic of Ireland and (b) Northern Ireland and the rest of the UK after the UK leaves the EU.
Answered by Mel Stride - Secretary of State for Work and Pensions
The Government has been resolute in its commitments to Northern Ireland. This includes protecting the Belfast (Good Friday) Agreement in all its parts and ensuring there will be no hard border between Northern Ireland and Ireland, or between Northern Ireland and the rest of the UK.
The Government will continue to consider the potential applications of technology, including Distributed Ledger (Blockchain), and other emerging technologies, to streamline customs processes.
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 19 December 2018 to Question 203920 on Customs, what completion dates have been set for the contracts for the (a) development and (b) upgrade of IT systems in relation to customs declarations at British ports.
Answered by Mel Stride - Secretary of State for Work and Pensions
The primary customs declaration platforms in place when the UK leaves the EU will be a combination of CHIEF, which is the existing declaration system; and the new Customs Declaration Service (CDS). The development of the new CDS service, and the upgrade of the existing CHIEF service, are being delivered through a combination of in-house technical expertise within HMRC and contracts with commercial partners. The changes required for a no deal scenario will be delivered in March 2019.
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 29 October 2018 to Question 185078 on Revenue and Customs: Blockchain, what assessment he has made of the (a) time and (b) cost resources required to be allocated by HMRC to produce blockchain solutions to facilitate (a) Authorised Economic Operator status, (b) Rules of Origin certification, (c) the Single Administrative Document and (d) standard import and export declarations.
Answered by Mel Stride - Secretary of State for Work and Pensions
Further work on the application of Blockchain to ‘Authorised Economic Operator’ status is deferred until after the UK leaves the EU when timescales and cost will be revisited.
There has been no specific assessment of Rules of Origin certification, Single Administrative Documents or standard Import and Export Declarations.
Asked by: Chuka Umunna (Liberal Democrat - Streatham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will publish the analyses the Government has undertaken on the effect of leaving the Customs Union on various sectors of the UK economy.
Answered by Mel Stride - Secretary of State for Work and Pensions
The government is undertaking a comprehensive programme of analytical work to assess, across a range of scenarios on a sector by sector basis, the economic impacts of exiting the European Union. However, this analysis is sensitive in the context of negotiations with the European Union. We have committed to being as transparent as we can throughout the process of leaving the EU, but as Parliament has agreed, it would not be appropriate to publish any such information that could damage our negotiating position.