Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking with (a) banks and (b) other financial institutions to improve the financial sustainability of those organisations.
Answered by Bim Afolami
The Government is committed to retaining the UK’s position as one of the most innovative and competitive financial centres in the world. The Chancellor recently set out an ambitious reform programme at Mansion House, building on the success of the Edinburgh Reforms, which will help to deliver the Government’s vision for a financial sector that is open, sustainable, technologically innovative, and globally competitive. Additionally, the Financial Services and Markets Act 2023 introduced new secondary objectives for both the Financial Conduct Authority and Prudential Regulatory Authority to facilitate the international competitiveness of the UK economy (including the financial services sector), and its growth in the medium to long term.
Financial stability is a pre-requisite for economic growth and is crucial for the competitiveness of the financial services sector. The government, working closely with the financial regulators, has made major improvements to the resilience of the banking system since the financial crisis with capital requirements for banks now three times higher. The government has also considered it a priority to build resilience in the non-bank system and has been working closely with the regulators and international bodies to achieve this.
The Bank of England also undertakes regular stress tests on the UK’s major banks to test their resilience to severe economic scenarios and for the first time will be undertaking a system wide exploratory scenario which aims to improve the understanding of how banks and non-banks behave during stress and how these behaviours might interact to amplify shocks.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he is taking steps to encourage (a) banks and (b) other financial institutions to engage in corporate social responsibility.
Answered by Bim Afolami
Corporate social responsibility, where such actions go beyond what is required in regulation, is a matter for banks and financial institutions to make individual decisions on.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to update the Hydrocarbon Oil Duty Act 1979 to categorise hydrotreated vegetable oil as a biodiesel.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
Hydrotreated vegetable oil (HVO) is treated as diesel for the purposes of fuel duty. HVO benefits from the rebated duty rate of 10.18 pence per litre (ppl) when used for an allowed purpose, and 52.95 ppl for road use.
The Government encourages the use of HVO through the Renewable Transport Fuel Obligation (RTFO), which incentivises the use of low carbon fuels and reduces emissions from fuel supplied for use in transport and non-road mobile machinery. The RTFO has been highly successful in supporting a market for renewable fuel since its introduction in 2008. Renewable fuels supplied under the RTFO currently contribute a third of the savings required for the UK’s transport carbon budget.
The Government’s Biomass Strategy which was published on 10 August reviews the amount of sustainable biomass available to the UK, including liquid biofuels such as HVO. It is important to ensure that biomass is prioritised within the economy where it offers the greatest opportunity to reduce greenhouse gas emissions in ‘hard to abate’ sectors where there are fewer options to decarbonise through alternative low carbon technologies.
As with all taxes, the Government keeps the tax treatment of HVO under review.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential merits of reducing fuel duty on hydrotreated vegetable oil fuel.
Answered by Gareth Davies - Shadow Minister (Business and Trade)
Hydrotreated vegetable oil (HVO) is treated as diesel for the purposes of fuel duty. HVO benefits from the rebated duty rate of 10.18 pence per litre (ppl) when used for an allowed purpose, and 52.95 ppl for road use.
The Government encourages the use of HVO through the Renewable Transport Fuel Obligation (RTFO), which incentivises the use of low carbon fuels and reduces emissions from fuel supplied for use in transport and non-road mobile machinery. The RTFO has been highly successful in supporting a market for renewable fuel since its introduction in 2008. Renewable fuels supplied under the RTFO currently contribute a third of the savings required for the UK’s transport carbon budget.
The Government’s Biomass Strategy which was published on 10 August reviews the amount of sustainable biomass available to the UK, including liquid biofuels such as HVO. It is important to ensure that biomass is prioritised within the economy where it offers the greatest opportunity to reduce greenhouse gas emissions in ‘hard to abate’ sectors where there are fewer options to decarbonise through alternative low carbon technologies.
As with all taxes, the Government keeps the tax treatment of HVO under review.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made a recent assessment of the potential merits of increasing the level of the overseas aid budget to 0.7 per cent of GDP.
Answered by John Glen
I refer the hon. Member to the answer I gave on 13 June 2023 to Question 188649. [https://questions-statements.parliament.uk/written-questions/detail/2023-06-08/188649].
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had recent discussions with banks on taking steps to support small businesses, social enterprises and charities to open bank accounts.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
I and senior officials engage regularly with banks on a range of issues, including access to bank accounts for small businesses, social enterprises and charities.
In relation to social enterprises and charities specifically, the Treasury recognises the challenges they have faced accessing and managing banking services. That’s why the previous Economic Secretary hosted a roundtable event last year, bringing together lenders and representatives from bodies representing charities and community organisations to discuss this important issue. Lenders heard firsthand the problems many charities and community groups have experienced, and also used this opportunity to set out the products they offer, and the diverse range of factors charities and community groups need to consider in relation to banking requirements.
Banking and finance industry group UK Finance is now working with banks and sector representatives to identify any changes banks can make to simplify processes like changing signatories on accounts, and to produce guidance aimed at helping charities and community groups access and understand banking.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an estimate of the revenue expected to accrue to the Exchequer from the bank surcharge in each of the next four financial quarters.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
The latest estimate of the revenue expected to accrue to the Exchequer from the Bank Surcharge for the next 4 quarters (financial year 2023-24) is provided in Table A.5 in Appendix A of the OBR’s Economic and Fiscal Outlook, which was published on 15 March 2023.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the potential merits of introducing a reformed business rate for pubs that is equitable to other small businesses.
Answered by Victoria Atkins - Shadow Secretary of State for Environment, Food and Rural Affairs
The Valuation Office Agency determines the rateable value of public houses using the Fair Maintainable Turnover (FMT) basis, as agreed with representative trade bodies.
At Autumn Statement 2022, the government announced a package of support worth £13.6 billion to businesses over the next five years. This includes an extended and increased 75 per cent relief for retail, hospitality, and leisure properties, up to a cash cap of £110,000 per business for 2023-24. This is a tax cut worth over £2 billion for around 230,000 businesses, which will support the businesses that make our high streets and town centres successful.
This support builds on the previous temporary 50 per cent retail, hospitality and leisure scheme announced at Autumn Budget 2021, as well as the unprecedented £16 billion of business rates relief provided to the retail, hospitality and leisure sectors throughout the pandemic.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had discussions with representatives of charities operating in Huddersfield on the impact of the cost of living crisis on residents of that town in the last 12 months.
Answered by James Cartlidge - Shadow Secretary of State for Defence
Treasury Ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.
Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at:
https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel
The government has announced further support in the Autumn Statement for next year designed to target the most vulnerable households. This cost of living support is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and people with disabilities.
This support for 2023-24 is in addition to the generous support already in place to support households this winter.
Asked by: Barry Sheerman (Labour (Co-op) - Huddersfield)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of reducing (a) beer duty and (b) other alcohol duties for pubs.
Answered by James Cartlidge - Shadow Secretary of State for Defence
The Government keeps the duty rates under review during its yearly budget process and aims to balance the impact on businesses with its public health objectives.
The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties will be considered in due course.