Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress he has made on developing regulations for cryptocurrency.
Answered by John Glen
The government has taken forward a series of regulatory measures to protect consumers, manage market integrity risks and support innovation. Since 2020 the FCA has been the anti-money laundering supervisor for cryptoasset firms. In January 2022 the government confirmed the intention to bring certain cryptoassets into the scope of the Financial Promotion Order to ensure that cryptoasset promotions are fair, clear, and not misleading.
Further, the government considers that some cryptoassets may already fall within the relevant UK legal frameworks. However, this also depends on the structure of the token and nature of the activities concerned.
At Fintech Week, the government set out the firm ambition to make Britain a global hub for cryptoasset technology and investment. We want to ensure firms can invest, innovate and scale up in this country. And we have announced a number of reforms which will see the regulation and aspects of tax treatment of cryptoassets evolve.
These include committing to consult on future regulation of a broader set of cryptoasset activities later this year; legislating to bring stablecoins into payments regulation; setting up a ministerial-chaired Cryptoasset Engagement Group, bringing together key figures in industry; working with the Royal Mint to create a Non-Fungible Token; and exploring ways of enhancing the competitiveness of the UK tax system to encourage further development of the cryptoasset market in the UK.
These commitments are in line with our objectives to create a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people can use new technologies both reliably and safely.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress he has made on implementing the recommendations in The Kalifa Review of UK FinTech.
Answered by John Glen
The Government responded to the Kalifa Review of UK Fintech on 26 April 2021, setting out actions alongside regulators to ensure the UK remains at the global cutting edge of technology and innovation in financial services.
These actions include improved regulatory support for new and growing fintechs; initiatives to supercharge commercial support for UK fintechs seeking to expand internationally; and a new visa ‘scale up’ stream to attract global talent and boost the fintech workforce.
The Government’s full response is available at: https://questions-statements.parliament.uk/written-statements/detail/2021-04-26/hcws938.
On 29 October the Government announced £5 million of seed funding for a new Centre for Finance, Innovation and Technology (CFIT) as part for Spending Review 2021. CFIT was a central recommendation of the Kalifa Review, and it will focus on creating the right conditions for firms to scale, encouraging the mainstream adoption of fintech solutions, and fostering collaboration between growing regional fintech hubs. In March 2022 the CFIT Steering Committee, chaired by Ron Kalifa began an intensive programme of work on proposals for CFIT’s priorities, objectives, and operational requirements.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has plans to review the Consumer Credit Act 1974.
Answered by John Glen
The Government is committed to ensuring consumer credit regulation provides high-standards of consumer protection but also fit-for-purpose and proportionate. We recognise that the current regulatory framework for consumer credit is built around a dated model of regulation, established by the Consumer Credit Act 1974 (CCA). The government therefore continues to keep the case for changes to improve the effectiveness of consumer credit regulation under close review.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reviewing the rate per mileage allowance for for persons using their own vehicle for business use.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The government sets the Approved Mileage Allowance Payments (AMAPs) rates to minimise administrative burdens. AMAPs aim to reflect running costs including fuel, servicing and depreciation. Depreciation is estimated to constitute the most significant proportion of the AMAPs.
Employers are not required to use the AMAPs. Instead, they can agree to reimburse the actual cost incurred, where individuals can provide evidence of the expenditure, without an Income Tax or National Insurance charge arising.
Alternatively, they can choose to pay a different mileage rate that better reflects their employees’ circumstances. However, if the payment exceeds the amount due under AMAPs, and this results in a profit for the individual, they will be liable to pay Income Tax and National Insurance contributions on the difference.
The government keeps this policy under review.
Asked by: Alun Cairns (Conservative - Vale of Glamorgan)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what the status is of the Shared Outcomes Fund; whether that fund is (a) reserved or (b) devolved; and how much the Welsh Government has received for that fund as a result of the Barnett consequential.
Answered by Simon Clarke
The Shared Outcomes Fund is a UK government fund testing innovative ways of working across the public sector with an emphasis on thorough evaluation. Where funding is given for a Shared Outcomes Fund project in a devolved area, the Barnett formula will apply in the normal way.
HM Treasury’s Block Grant Transparency publication sets out the breakdown of changes in the devolved administrations’ block grants, including all Barnett consequentials related to the Shared Outcomes Fund, since the 2015 Spending Review. This is available on the gov.uk website here:
https://www.gov.uk/government/publications/block-grant-transparency-december-2021