Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the potential merits of bringing forward legislative proposals to introduce a cap on the total repayable cost to the consumer of rent-to-own goods.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government transferred the regulation of consumer credit, including rent-to-own, to the Financial Conduct Authority (FCA) in 2014 and has given the FCA strong powers to protect consumers. This was demonstrated by the FCA announcement in October 2017 that BrightHouse, a rent-to-own firm, would pay over £14.8 million in redress to 249,000 customers in respect of agreements which may not have been affordable, and payments which should have been refunded.
The Government has also given the FCA the power to cap all forms of credit, and the FCA can do so if it thinks it is necessary to protect consumers.
The FCA’s review of the high-cost credit sector has identified concerns about the high costs of rent-to-own borrowing for what is a particularly vulnerable consumer group, and the consequences of that borrowing. The Government welcomes the FCA’s ongoing work to review the high-cost credit market, including the rent-to-own sector. The FCA aims to consult on proposed remedies in spring 2018.
The FCA has consulted on proposed rules and guidance on staff incentives, remuneration and performance management in consumer credit firms, and published final rules on 27 March 2018. The rules will require firms to identify and manage risks arising from remuneration and performance management practices, and will come into force on 1 October.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of sales incentives for staff working in the rent-to-own and doorstep-lending industries on outcomes for financial vulnerable customers.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government transferred the regulation of consumer credit, including rent-to-own, to the Financial Conduct Authority (FCA) in 2014 and has given the FCA strong powers to protect consumers. This was demonstrated by the FCA announcement in October 2017 that BrightHouse, a rent-to-own firm, would pay over £14.8 million in redress to 249,000 customers in respect of agreements which may not have been affordable, and payments which should have been refunded.
The Government has also given the FCA the power to cap all forms of credit, and the FCA can do so if it thinks it is necessary to protect consumers.
The FCA’s review of the high-cost credit sector has identified concerns about the high costs of rent-to-own borrowing for what is a particularly vulnerable consumer group, and the consequences of that borrowing. The Government welcomes the FCA’s ongoing work to review the high-cost credit market, including the rent-to-own sector. The FCA aims to consult on proposed remedies in spring 2018.
The FCA has consulted on proposed rules and guidance on staff incentives, remuneration and performance management in consumer credit firms, and published final rules on 27 March 2018. The rules will require firms to identify and manage risks arising from remuneration and performance management practices, and will come into force on 1 October.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of the rent-to-own market on the financial vulnerability of households on low incomes.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government transferred the regulation of consumer credit, including rent-to-own, to the Financial Conduct Authority (FCA) in 2014 and has given the FCA strong powers to protect consumers. This was demonstrated by the FCA announcement in October 2017 that BrightHouse, a rent-to-own firm, would pay over £14.8 million in redress to 249,000 customers in respect of agreements which may not have been affordable, and payments which should have been refunded.
The Government has also given the FCA the power to cap all forms of credit, and the FCA can do so if it thinks it is necessary to protect consumers.
The FCA’s review of the high-cost credit sector has identified concerns about the high costs of rent-to-own borrowing for what is a particularly vulnerable consumer group, and the consequences of that borrowing. The Government welcomes the FCA’s ongoing work to review the high-cost credit market, including the rent-to-own sector. The FCA aims to consult on proposed remedies in spring 2018.
The FCA has consulted on proposed rules and guidance on staff incentives, remuneration and performance management in consumer credit firms, and published final rules on 27 March 2018. The rules will require firms to identify and manage risks arising from remuneration and performance management practices, and will come into force on 1 October.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many households received (a) Working Tax Credit, (b) Child Tax Credit and (c) both Working and Child Tax Credit in 2015-16.
Answered by Elizabeth Truss
The number of households that received Working Tax Credit, Child Tax Credit and a combination of both Working Tax Credit and Child Tax Credit are published on the gov.uk website at:
The latest figures available are for 2015-16.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the potential monies that would accrue to the public purse of the introduction of revenue-based taxes on multinational companies.
Answered by Mel Stride - Secretary of State for Work and Pensions
The UK applies value-added tax to businesses’ supplies of goods and services to UK consumers. Corporation tax is imposed on a business’s profits relating to value generated through UK activities. The government continues to support the principle that a multinational group’s profits should be taxed in the countries in which it generates value. It does not, for example, believe that the profits of a business that undertakes all of its activities in the UK should be taxed in overseas markets in which the business's goods and services might be sold.
The Government has set out its receptiveness to exploring interim measures with like-minded countries, like a tax on revenues, to tax certain digital businesses which generate value from UK users. That would be designed to compensate for unrecognised user-created value pending wider reform of the international corporate tax system. The yield from such a tax would depend on its scope, rate and detailed design.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department has a carer's policy for its employees; and what other steps his Department has taken to support employees with caring responsibilities.
Answered by Robert Jenrick
The Treasury has a Carer’s Passport policy and process to support employees with caring responsibilities. Treasury policies on flexible working and special leave also provide support for employees with caring responsibilities.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has made an assessment of the potential merits of transferring funds from the Financial Services fines pool to bring the value of Junior ISAs up to the value of Child Trust Funds.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
A Child Trust Fund account was opened for each child born between 1 September 2002 and 2 January 2011, with a Government contribution deposited into the account. The total government contribution to each account differed dependent on a variety of factors, such as family income, disability and age. Junior ISAs are voluntary, tax-free savings accounts and therefore not all children hold a Junior ISA. For these reasons, it is not appropriate to compare the balances of these two types of account.
All FCA fine income, after enforcement costs, is passed to HM Treasury and forms part of the governments total revenues to be used for the benefit of the tax paying public.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he will take steps to require multinational companies to set out in their annual report how much tax they would owe the Exchequer if they were to subtract costs incurred solely in the UK from their revenues generated solely in the UK.
Answered by Mel Stride - Secretary of State for Work and Pensions
Along with most major economies in the world, the UK levies corporation tax on the basis of the profits generated by economic activity and assets held here.
The Government introduced country-by-country reporting which requires multinationals to provide HMRC with comprehensive information about global activities, profits and taxes. This enables HMRC to better assess where risks lie and where their efforts to counter aggressive tax planning and tax avoidance should be focused.
The UK is committed to a multilateral model of public country-by-country reporting and we will continue to engage with our international partners on this issue.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans he has to check the legality of the tax schemes detailed in the Paradise Papers.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC takes all reports of potential tax underpayment seriously, and thoroughly analyse and investigate any information that they receive. Where there is suspected potential tax fraud, HMRC will not hesitate to work with their prosecuting partners to bring cases before the courts.
Since 2010, HMRC has generated more than £160 billion of additional yield from tackling tax avoidance, evasion and non-compliance.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether he has plans to requiring Scottish Limited Partnerships with offshore partners to file tax returns with Her Majesty's Revenue and Customs.
Answered by Mel Stride - Secretary of State for Work and Pensions
HMRC are already able to require a partnership carrying on a trade, profession or business to make a tax return. HMRC would require a partnership (including a Scottish Limited Partnership) to make a return where there is partnership income that is taxable in the UK in the hands of one or more of the partners. A return must include a statement of the amount of income or loss for that period, together with the allocation of the income or loss between the partners, including those overseas.