Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the viability of using more FinTech platforms to distribute Government-backed financial loans and support packages alongside established high-street banks and lenders.
Answered by John Glen
The UK is home to a world-leading Fintech sector and an impressive amount of talent and expertise in this area. The government knows that Fintech firms play an important role in the lending market, especially for smaller businesses.
I am grateful for the way the sector has responded to the current crisis by identifying opportunities where technology may support the Government’s response.
The British Business Bank (BBB) has so far accredited 28 Bounce Back Loan Scheme (BBLS) lenders, including several non-banks and alternative lenders. In addition, the BBB has in excess of 100 accredited lenders for the Coronavirus Business Interruption Loan Scheme (CBILS) and this includes several UK Fintechs.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether businesses who have started trading since the start of the covid-19 outbreak are eligible for financial support made available by the Government in response to the covid-19 outbreak.
Answered by Kemi Badenoch - Leader of HM Official Opposition
The Winter Economy Plan set out a package of targeted measures in response to the current economic context, which will enable businesses, including new businesses, to protect jobs, and manage their finances in the face of reduced or uncertain demand. This includes the extension of the temporary VAT reduced rate for hospitality and tourism, extending the application window of the access to finance schemes, and further support for employees and the self-employed, through the Coronavirus Job Retentions Scheme (CJRS) and the Self-Employment Income Support Scheme (SEISS) Grant Extension. Although it has not been possible to include those who have started trading since the start of the COVID outbreak in the SEISS, the SEISS is just one element of a comprehensive package of support for individuals and businesses. This package includes Bounce Back loans, tax deferrals, rental support, mortgage holidays, and other business support grants. On 8 July, the Government also introduced the new Plan for Jobs which will make available up to £30 billion to assist in creating, supporting and protecting jobs.
More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress he has made on creating an economic environment in which digital currencies can be developed.
Answered by John Glen
The UK’s approach to cryptoassets was outlined in the 2018 Cryptoassets Taskforce report, and in July last year the FCA set out its position in relation to the regulatory perimeter in this space. The government and regulators have since taken steps to continue encouraging responsible innovation in this area, while also mitigating risks to consumers and markets.
For instance, this January the Treasury transposed the cryptoasset provisions set out in the EU Fifth Anti-Money Laundering Directive (5MLD). This will combat the risk of cryptoassets being used for illicit activity, in support of the government’s aims for the sector.
More broadly, the government is committed to creating an environment where tech businesses can thrive by investing in areas such as talent, cutting-edge research and growth finance. Venture capital investment in the UK tech sector grew by 44 per cent in 2019, from £7.1bn to £10.1bn. This was a faster growth rate than both the US and China.
The financial regulators continue to provide a platform that facilitates innovation in this space. For example, the Financial Conduct Authority has accepted a significant number of DLT-based projects into its Regulatory Sandbox to help enable the adoption of this technology to deliver better financial services with appropriate consumer safeguards.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans the Government has to increase the uptake of electric cars by removing VAT on the purchase of zero emission vehicles.
Answered by Simon Clarke
The Government has set an ambitious, legally binding target to reach net-zero greenhouse gas emissions from the UK by 2050.
Although there are no plans at present to reduce the VAT charge on electric vehicles, the Government keeps all taxes under review and assesses them against a range of fiscal and environmental considerations. The Government already makes available an incentive for the public to purchase electric vehicles over conventional vehicles: the Plug-in Car Grant (PiCG) provides grants of up to £3,500 for the purchase of a new battery electric vehicle. PiCG was launched in 2011 and has supported the purchase of around 170,000 Ultra Low Emission Vehicles.
Asked by: Adam Afriyie (Conservative - Windsor)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much the UK FinTech industry paid the Exchequer in tax revenue in (a) 2017-18 and (b) 2016-17 financial years.
Answered by Jesse Norman - Shadow Leader of the House of Commons
HM Revenue and Customs (HMRC) publishes annual statistics relating to income tax, VAT and corporation tax by industry (including the Financial and Insurance Activities Sector). However, HMRC cannot identify receipts from the UK FinTech industry specifically.
For other taxes, industry-level information is not available.
For business rates, the Ministry of Housing, Communities & Local Government collects data only at local authority level and is unable to provide a breakdown by industry.