Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of a UK central bank digital currency on financial exclusion.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government is committed to promoting financial inclusion, meaning that individuals, regardless of their background or income, have access to useful and affordable financial products and services. These include banking, payment services, credit, insurance, and the use of financial technology.
The consultation on the digital pound closed on 30 June, and we are now assessing the responses. We will publish a consultation response publication in due course. A digital pound could help financial exclusion. Financial inclusion and the needs of vulnerable people will be considered by HM Treasury and the Bank of England at every stage.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what information the Office of Financial Sanctions Implementation holds on whether oil tankers registered under the St. Kitts and Nevis international ship registry have transported refined oil products from Russia to third countries.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
The UK, alongside G7 partners, has introduced unprecedented and wide-ranging sanctions on Russian oil and oil products, and the revenues they generate. The government has moved swiftly to ensure we have the right tools and structures in place to rigorously enforce those sanctions. Alongside our partners, we continue to monitor our oil-related measures and reserve the right to take further action to ensure their effectiveness. UK law requires breaches of sanctions to be reported to HM Treasury, however we do not require reporting from non-UK entities or where the service is outside the scope of the relevant sanctions.
While flagging and registration services are not in scope of the ban on maritime services for the transport of Russian oil and associated oil price cap, the UK government can make use of a process of applying sanctions and deregistration in the event of any circumvention or breach of the maritime services prohibition by UK-flagged ships.
Any UK-flagged vessel which the Secretary of State has reasonable grounds to suspect is, has been, or is likely to be, involved in circumventing or breaching the Maritime Services Ban could could be deregistered from the UK shipping register.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many applications (a) crown servants, (b) contractors and (c) their family members have submitted to the Office of Financial Sanctions Implementation under Regulation 64 of the Russia (Sanctions) (EU Exit) Regulations 2019 since 1 August 2022; and how many times that Office has granted an application under General Licence INT-2022-1845976 in that period.
Answered by Gareth Davies - Exchequer Secretary (HM Treasury)
In the period between the 1 August 2022 – 19 August 2022, OFSI did not receive any applications from crown servants, contractors, and their family members under the Russia Regulations.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions he has had with the Governor of the Bank of England on (a) the provision of liquidity to the UK banking sector and (b) swap lines between central banks.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Chancellor of the Exchequer and Governor of the Bank of England meet regularly to discuss a range of issues including conditions in the UK and global financial markets.
Swap lines are a routine lending facility amongst central banks and form a part of the global financial architecture. Changes to bilateral swap line operations are a matter for the Bank of England.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will pause the passage of the Financial Services and Markets Bill in response to the instability in the global financial system.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The government has no plans to pause the passage of the Financial Services and Markets Bill. The Bill will establish a coherent, agile and internationally-respected approach to financial services regulation that maintains high regulatory standards and can adapt to the specifics of UK markets.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he will take to ensure that banks pass on interest rate rises to savers, as well as to debtors.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The pricing of financial products, including savings accounts and mortgages, is a commercial decision for firms and the Government does not seek to intervene in such decisions. The Bank of England’s independent Monetary Policy Committee (MPC) sets the base rate of interest, which is known as the Bank Rate, to achieve its primary objective of maintaining price stability. MPC decisions over Bank Rate guide commercial banks’ decisions over the retail interest rates they charge on loans and pay on deposits.
More broadly, the Government is committed to ensuring people are supported to save, and that they can access a wide range of competitive savings products. The retail savings market currently offers a range of competitive options to savers, who can now access the highest rates in recent years on a variety of instant access and fixed-term products. I would encourage savers to explore the full range of products available in the market to find the best rates.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people who will benefit from the removal of the pensions lifetime allowance in 2023-24.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Information on the abolition of the lifetime allowance can be found in the Pension Tax Limits Policy paper Pension Tax Limits - GOV.UK (www.gov.uk)
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to replicate in the 2023 Energy Bills Support Scheme the £400 non-repayable discount administered by energy suppliers and paid to consumers.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
This winter, the Government is spending £55 billion to directly help households and businesses with their energy bills - amongst the largest support plans in Europe. This includes the £400 Energy Bills Support Scheme. Energy suppliers are delivering this support to households in Great Britain with a domestic electricity meter over the 6 months from October 2022 to March 2023. It also includes the Energy Price Guarantee (EPG) which caps the unit price households pay for electricity and gas, saving the typical household around £900 this winter.
The Government has reviewed the energy support available from April 2023 to design a new approach that is expected to cost the taxpayer less while targeting support on those most in need. At Autumn Statement the
Government announced that the EPG will be adjusted so that the typical household pays £3000 per annum from April 2023 until April 2024 on energy, saving the average household £500. At the same time, the Government has announced further support designed to target the most vulnerable households across the UK through next winter via additional Cost of Living Payments. UK households on means-tested benefits will receive a further £900 Cost of Living payment; pensioner households will receive an additional £300 Cost of Living payment and people on non-means-tested disability benefits will receive a further £150 Disability Cost of Living payment, to help with the additional costs they face. The support in 2023-24 is in addition to the support already in place to protect households this winter, including the £400 Energy Bills Support Scheme, the £150 Council Tax rebate and the one-off £650 Cost of Living Payment for those on means-tested benefits, with additional support for pensioners and those claiming disability benefits.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what systems he has in place to monitor the rates of (a) landlord possession orders and (b) mortgage possession orders.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Arrears and repossession levels remain low: according to UK Finance data, 700 residential mortgaged properties and 390 buy-to-let mortgage properties were repossessed in Q3 2022. These were both lower than the 1,070 and 640 respectively in Q1 2020 (pre-pandemic).
The Government remains watchful of any emerging trends in this space and engages regularly with mortgage lenders and the Financial Conduct Authority (FCA) to monitor market developments. The Government also closely monitors a wide range of sources that measure levels of financial distress amongst consumers.
It is worth noting though that around 75% of residential mortgage borrowers, and 73% of buy-to-let mortgage borrowers, are on fixed-rate deals and therefore shielded from interest rate rises in the near term. If mortgage borrowers do fall into financial difficulty, FCA guidance requires firms to provide support through tailored forbearance options. The Government has also taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes clear that repossession must always be the last resort for lenders.
More broadly, the Government has taken decisive action to support households across the UK through the cost-of-living challenges ahead, whilst remaining fiscally responsible. In addition to the £37 billion of support for the cost of living already announced for 2022-23, the Government has announced further support 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. The Government is also continuing to provide support to all households through the Energy Price Guarantee, which will save the average UK household £500 in 2023-24.
Asked by: John McDonnell (Labour - Hayes and Harlington)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential relationship between the cost of shipping containers on international routes and domestic inflation rates.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Record energy prices and supply chain pressures (including shipping costs) have driven inflation up globally. Consumer Prices Index (CPI) inflation was at a near 40-year high of 9.9% in August. Price pressures have become more widespread since March, with a broader range of items in the CPI basket of goods and services seeing increases that exceed the headline 2% CPI inflation target.
Shipping cost increases have been caused by a combination of pressures from increased demand for goods and from logistical issues impeding shipping from adequately addressing elevated demand - such as port closures, congestion, and operational efficiency. These pressures and resulting elevated shipping prices continue to ease from their post pandemic peaks but remain elevated compared to historical averages.