Oral Answers to Questions

Debate between Bob Blackman and Bim Afolami

Tuesday 6th February 2024 Commons Chamber

[Bob Blackman (Harrow East) (Con)]

14. What steps his Department is taking to support growth in the financial services sector.

[The Economic Secretary to the Treasury (Bim Afolami)]

The Government are taking ambitious steps to grow the UK’s world-leading financial services sector, with widespread industry support. To take one example, reforms to Solvency II will help to spur a vibrant, innovative and internationally competitive insurance sector. The reforms will unlock £100 billion-worth of productive investment to grow the economy in every constituency over the next 10 years.

[Bob Blackman]

I thank my hon. Friend for his answer but, clearly, to grow the financial services industry, investors must have confidence that their money is safe. I have written to him about the Woodford equity scandal, of which there are many thousands of victims across the country. The Financial Conduct Authority refused to intervene, so will he now intervene and take action to ensure that the investors get at least a large part of their money back?

[Bim Afolami]

I thank my hon. Friend for his question, for writing to me and for standing up for the rights of his constituents. It is important the House knows that over 90% of investors voted to accept the scheme of arrangement. It is now up to the court to decide whether to approve it, and I therefore will not comment on it any further. I am happy to be in constant dialogue with him on this matter, as on many others.

--- Later in debate ---

[Bob Blackman (Harrow East) (Con)]

T4.   In 2011, the Government quite rightly set up the fund to compensate victims of the Equitable Life scandal. Notwithstanding the fact that the Government did not give them enough money, we know that the fund will not be fully spent on the people being compensated. Will my right hon. Friend ensure the fund is used for the benefit of the people who suffered in the scandal, rather than being returned to the Treasury?

[The Economic Secretary to the Treasury (Bim Afolami)]

I thank my hon. Friend for his question and I will write to him with the specifics of the answer.