Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect on local communities of the bank branch closures in Scotland recently announced by Royal Bank of Scotland and Lloyds Banking Group.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
I discussed RBS Group’s recent branch closure announcement with the Scottish Minister for Business, Innovation and Energy on 4 December.
The Government is committed to improving access to financial services. While the decision to close a branch remains a commercial judgement for banks, the impact on communities must be understood, considered and mitigated where possible.
The industry’s Access to Banking Standard, launched in May 2017, commits banks to ensure personal and business customers are better informed about branch closures and the reasons for them closing, along with the options they have locally to continue to access banking services, including specialist assistance for customers who need more help. The Access to Banking Standard is monitored and enforced by the independent Lending Standards Board.
99% of banks’ personal and 95% of banks’ business customers are now able to withdraw cash, deposit cash and cheques, and make balance enquiries at a Post Office counter via its network of 11,600 branches. At Autumn Budget 2017, I wrote to the Post Office and UK Finance to ask them to raise public awareness of the banking services available at the Post Office for individuals and SMEs. Government will have provided nearly £2 billion during the period 2011 to 2018 to maintain and modernise the Post Office network.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether it is his policy to introduce legislative proposals to establish a guaranteed minimum level of service by high-street banks in rural areas.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
I discussed RBS Group’s recent branch closure announcement with the Scottish Minister for Business, Innovation and Energy on 4 December.
The Government is committed to improving access to financial services. While the decision to close a branch remains a commercial judgement for banks, the impact on communities must be understood, considered and mitigated where possible.
The industry’s Access to Banking Standard, launched in May 2017, commits banks to ensure personal and business customers are better informed about branch closures and the reasons for them closing, along with the options they have locally to continue to access banking services, including specialist assistance for customers who need more help. The Access to Banking Standard is monitored and enforced by the independent Lending Standards Board.
99% of banks’ personal and 95% of banks’ business customers are now able to withdraw cash, deposit cash and cheques, and make balance enquiries at a Post Office counter via its network of 11,600 branches. At Autumn Budget 2017, I wrote to the Post Office and UK Finance to ask them to raise public awareness of the banking services available at the Post Office for individuals and SMEs. Government will have provided nearly £2 billion during the period 2011 to 2018 to maintain and modernise the Post Office network.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the inter-relationship between monetary and fiscal policy.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The separation of fiscal and monetary policy is an important feature of the UK’s macroeconomic framework. Monetary policy is the responsibility of the independent Monetary Policy Committee (MPC) of the Bank of England, whereas the Treasury has responsibility for fiscal policy. The MPC has the primary objective, set out in law, of maintaining price stability, currently defined as an inflation target of 2 per cent, as measured by the 12 month increase in the Consumer Prices Index (CPI).
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the effects of the Bank of England's Quantitive easing programme.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The UK’s monetary policy framework, set out in the Bank of England Act 1998 gives operational responsibility for monetary policy to the independent Monetary Policy Committee (MPC). Decisions on the use of monetary policy tools, including quantitative easing, are for the judgement of the MPC.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made on the effect on the financial stability of the UK of the Financial Policy Committee's decision of 21 June 2017 to oversee contingency planning to mitigate risk as the UK leaves the EU.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The assessment of the effect of the decisions made by the Financial Policy Committee (FPC) on the financial stability of the UK is a matter for the FPC. The government established the independent FPC in 2013, giving the FPC a primary objective to identify, monitor and take action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC comprises thirteen members including the Governor and a non-voting member from HM Treasury (currently the Second Permanent Secretary).
Following its recent policy meeting on 21 June, the FPC published the Financial Stability Report (FSR) on 27 June. The FSR set out the FPC’s latest assessment of the outlook for financial stability in the UK, as well as the actions that the FPC has deemed necessary to meet its objectives.
The Chancellor of the Exchequer is legally required to meet the Governor to discuss the FSR and other matters relating to UK financial stability as appropriate, as soon as possible after the publication of the FSR. HM Treasury will publish a record of this meeting within 6 weeks of the meeting taking place.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made on the effect on the financial stability of the UK of the Financial Policy Committee's decision of 21 June 2017 to set the minimum leverage requirements at 3.25 per cent of non-reserve exposures.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The assessment of the effect of the decisions made by the Financial Policy Committee (FPC) on the financial stability of the UK is a matter for the FPC. The government established the independent FPC in 2013, giving the FPC a primary objective to identify, monitor and take action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC comprises thirteen members including the Governor and a non-voting member from HM Treasury (currently the Second Permanent Secretary).
Following its recent policy meeting on 21 June, the FPC published the Financial Stability Report (FSR) on 27 June. The FSR set out the FPC’s latest assessment of the outlook for financial stability in the UK, as well as the actions that the FPC has deemed necessary to meet its objectives.
The Chancellor of the Exchequer is legally required to meet the Governor to discuss the FSR and other matters relating to UK financial stability as appropriate, as soon as possible after the publication of the FSR. HM Treasury will publish a record of this meeting within 6 weeks of the meeting taking place.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made on the effect on the financial stability of the UK of the Financial Policy Committee's decision of 21 June 2017 to raise the UK's Countercyclical Capital Buffer rates from 0 per cent to 0.5 per cent.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The assessment of the effect of the decisions made by the Financial Policy Committee (FPC) on the financial stability of the UK is a matter for the FPC. The government established the independent FPC in 2013, giving the FPC a primary objective to identify, monitor and take action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC comprises thirteen members including the Governor and a non-voting member from HM Treasury (currently the Second Permanent Secretary).
Following its recent policy meeting on 21 June, the FPC published the Financial Stability Report (FSR) on 27 June. The FSR set out the FPC’s latest assessment of the outlook for financial stability in the UK, as well as the actions that the FPC has deemed necessary to meet its objectives.
The Chancellor of the Exchequer is legally required to meet the Governor to discuss the FSR and other matters relating to UK financial stability as appropriate, as soon as possible after the publication of the FSR. HM Treasury will publish a record of this meeting within 6 weeks of the meeting taking place.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made on the effect on the financial stability of the UK of the Financial Policy Committee's decision of 21 June 2017 to bring forward the assessment of stressed losses on consumer credit lending in the Bank of England's 2017 annual stress test.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The assessment of the effect of the decisions made by the Financial Policy Committee (FPC) on the financial stability of the UK is a matter for the FPC. The government established the independent FPC in 2013, giving the FPC a primary objective to identify, monitor and take action to remove or reduce systemic risks with a view to protecting and enhancing the resilience of the UK financial system. The FPC comprises thirteen members including the Governor and a non-voting member from HM Treasury (currently the Second Permanent Secretary).
Following its recent policy meeting on 21 June, the FPC published the Financial Stability Report (FSR) on 27 June. The FSR set out the FPC’s latest assessment of the outlook for financial stability in the UK, as well as the actions that the FPC has deemed necessary to meet its objectives.
The Chancellor of the Exchequer is legally required to meet the Governor to discuss the FSR and other matters relating to UK financial stability as appropriate, as soon as possible after the publication of the FSR. HM Treasury will publish a record of this meeting within 6 weeks of the meeting taking place.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effectiveness of the Bank of England’s trial to update the Real-Time Gross Settlement system by use of an interledger programme to synchronise payments.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
As the Bank of England explained in their article ‘FinTech Accelerator Proof of Concept’, the Bank of England’s trial found that the Interledger Protocol was able to support synchronisation of payments between two Real Time Gross Settlement (RTGS) ledgers. The trial highlighted the importance of ensuring that the Bank’s High Value Payments System is able to support multicurrency transactions and cross-border payments, and of ensuring that the Bank’s new RTGS system is compatible with the growing use of new technologies.
Asked by: Ian Blackford (Scottish National Party - Ross, Skye and Lochaber)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the effect of inflation and wage growth on household incomes between January and March 2017.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government is taking action to support incomes. This includes increasing the National Living Wage, raising the personal allowance and freezing fuel duty. According to the Office for National Statistics, total real wage growth was positive between January and March 2017.
The Office for Budget Responsibility (OBR) expect nominal wage growth to increase in each year of their forecast, with growth over 3.5% by 2021. They expect these increases to occur alongside CPI falling back towards 2%. The OBR also forecast real household disposable income per head to reach a new record high in 2020.