Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has made a recent assessment of the potential merits of introducing further regulations for (a) cryptocurrency exchanges and (b) other aspects of cryptocurrency markets.
Answered by John Glen
The UK is committed to creating a regulatory environment in which firms can innovate, while crucially maintaining financial stability and regulatory standards so that people and businesses can use new technologies both reliably and safely.
The Financial Services and Markets Bill will bring stablecoins within the regulatory perimeter where they are used as a form of payment. This legislation will ensure that the UK’s regulatory framework is equipped to harness benefits of stablecoins, supporting the adoption of cutting-edge technologies, while mitigating the potential risks.
HM Treasury will consult on an approach to regulating a wider set of cryptoasset activities in the coming weeks.
The Financial Services and Markets Bill also ensures that cryptoassets may be regulated within the existing financial services regulatory framework.
In addition to this, in January 2022 the government published a response to a consultation on a proposal to bring certain cryptoassets into the scope of financial promotions regulation. The forthcoming legislation, and supporting FCA rules, will regulate in-scope cryptoasset financial promotions, requiring them to be fair, clear and not misleading.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to increase defence spending in the context of the increased risks to security on the European continent.
Answered by Chris Philp - Shadow Home Secretary
In March 2021 the government published the Integrated Review of Security, Defence, Development and Foreign Policy. The IR recognised that Russia remained the most acute threat to our security; and that NATO will remain the foundation of collective security in the Euro-Atlantic.
These assessments have certainly been borne out by the current crisis in Ukraine. We funded these threats by awarding MOD the largest sustained spending increase since the end of the Cold War, with a £24bn uplift in cash terms over the Spending Review 2020 period.
However, our number one priority is to keep the nation safe. That is why, as the Prime Minister announced in her speech to the UN on Wednesday, the UK will spend 3% of GDP on defence by 2030, maintaining our position as the leading security actor in Europe.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the implications for his policies of the approach taken by BlackRock to Zambian debt.
Answered by Andrew Griffith - Shadow Secretary of State for Business and Trade
Zambia is one of three countries to have requested a debt treatment under the Common Framework. The Common Framework was agreed in November 2020 by the UK, along with the G20 and Paris Club, to help deliver a long-term, sustainable approach for supporting low-income countries to tackle their debt vulnerabilities.
Private sector participation in the Common Framework is critical. Under the terms of the Common Framework, a debtor country that signs an MoU with participating official creditors will be required to seek from all private creditors a treatment at least as favourable. Accordingly, once Zambia signs an MoU for its case it will need to engage its private creditors to ensure their participation on comparable terms.
The Government routinely engages private sector creditors on international debt issues in a number of fora and will work closely with its international partners to ensure private creditors fully play their part in Zambia’s restructuring.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Government’s response to the Science and Technology Committee’s report on e-cigarettes, published in December 2018, whether it continues to be the Government’s policy that taxation on smoking-related products should directly correspond to the health risks presented to encourage less harmful consumption.
Answered by Felicity Buchan
The Government believes that e-cigarettes are an effective way of encouraging smokers to switch to less harmful alternatives.
Non-tobacco nicotine and vaping products, such as e-cigarettes, are currently taxed as a consumer product with the VAT rate being 20%. They are not subject to excise duty. Medicinally regulated products are subject to the reduced rate of VAT at 5%.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to help ensure that illicit cigarettes do not make their way into the UK.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
HM Revenue and Customs (HMRC) and Border Force have a comprehensive joint strategy, Tackling illicit tobacco: From leaf to light, to tackle illicit cigarettes. This has been highly effective in reducing the illicit cigarette trade from 22% in 2000-01 to 9% in 2020-21. Between 2015-16 and 2020-21, HMRC and Border Force have seized around 7.8 billion cigarettes destined for the UK. The UK is also a signatory to the World Health Organization Framework Convention on Tobacco Control and works with overseas partners to tackle the supply of illicit cigarettes upstream.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to introduce regulation on (a) cryptocurrencies and (b) other decentralised financial assets in the UK.
Answered by John Glen
The UK is committed to creating 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.
The Government has already 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.
On April 4 the Government published its response to its 2021 consultation on the UK’s regulatory approach to stablecoins. It also included a call for evidence on the use of Distributed Ledger Technology (DLT) in financial markets. The legislation to bring stablecoins, where used as a means of payment, within the regulatory perimeter is expected to be part of the forthcoming Financial Services and Markets Bill announced in the Queen’s Speech on 10 May. The Bill will be introduced later in the session when parliamentary time allows.
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 2022, the Government announced its commitment to consult on a world-leading regime for a broader set of cryptoasset activities this year.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to ensure that small pubs, bars, and restaurants are not required to close as a result of rising utility bills.
Answered by Helen Whately - Shadow Secretary of State for Work and Pensions
The Government recognises that a number of businesses are facing cost pressures driven by global factors, including high energy and commodity prices and supply chain disruption.
Unfortunately, it is not possible to fully shield everyone from the global challenges we face. Unlike households, businesses can absorb or pass on some of these costs. The government’s immediate priority is taking action that will support families to navigate the months ahead.
Over the past two years, government has taken unprecedented action to protect millions of businesses. We have also brought forward a number of measures to support businesses this year including:
We are in regular contact with business groups about the challenges businesses are facing and we will continue to keep the situation under review.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether his Department has to provide further support to the victims of the Equitable Life scandal.
Answered by John Glen
The Equitable Life Payment Scheme closed to claims in 2015. There are no plans to reopen the Payment Scheme or review the £1.5 billion funding allocation previously made to it. Further guidance on the status of the Payment Scheme after closure is available at https://www.gov.uk/guidance/equitable-life-payment-scheme#closure-of-the-scheme.
Asked by: Damien Moore (Conservative - Southport)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to reduce HMRC's backlog of travel expense repayments.
Answered by Lucy Frazer
HMRC make payments for two types of travel expense payments.
Travel and Subsistence claims, which are costs incurred buying food, drink, and parking, are claimed via HMRC’s Online HR system and payments for these expenses are currently up to date.
Moves Adjustment Payments are made when employees incur costs when HMRC have asked them to move permanently and work from another location. Reimbursement is provided as there are additional costs because of this move.
HR policy has recently changed for these types of expenses which has led to an increase in enquiries and claims.
To mitigate the backlog, HMRC has updated their HR Guidance to make it easier for people to understand what they are entitled to. This will avoid questions being raised with HR before a formal claim is made. A new calculator and a Help Card have also been introduced to provide staff with additional support.
Increased resource has also been deployed to clear the backlog. Initially all claims were being checked; this reduced to 30 per cent on 8 March and plans are in place for this to drop to 20 per cent once assurance levels are reached.