Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will take steps to ensure consumers have access to redress where firms fail to comply with decisions of the Financial Ombudsman Service by (a) creating a compensation fund and (b) strengthening enforcement powers.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Businesses that are regulated by the Financial Conduct Authority (FCA) are required by its rules to co-operate with the Financial Ombudsman Service (FOS), including by complying with any determination that it may make, if that determination is accepted by the complainant. If a regulated firm fails to comply with a FOS determination, the FOS may refer the firm to the FCA. This may result in the FCA taking further action against firms who fail to comply with the FCA’s rules.
The Financial Services and Markets Act 2000 provides the FCA with a range of powers to ensure relevant firms comply with its rules, and to act where firms fail to comply. The government is content that this legislative framework is appropriate and that the FCA has the right tools available to enable it to take action when firms do not comply with regulations.
The FOS does not have powers to directly enforce its determinations through legal proceedings, as its role is to act as an alternative to the courts. However, once the FOS’s determination is accepted by the complainant, it becomes binding on the firm. If a firm fails to comply with a determination, a complainant can enforce it through the courts. This does not require the merits of the case to be considered again by the court.
In cases where a firm fails to comply with a decision due to it failing, affected complainants may be eligible to claim compensation through the Financial Services Compensation Scheme (FSCS).
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment she has made of the adequacy of the Financial Conduct Authority’s powers to sanction regulated firms that fail to comply with decisions of the Financial Ombudsman Service.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
Businesses that are regulated by the Financial Conduct Authority (FCA) are required by its rules to co-operate with the Financial Ombudsman Service (FOS), including by complying with any determination that it may make, if that determination is accepted by the complainant. If a regulated firm fails to comply with a FOS determination, the FOS may refer the firm to the FCA. This may result in the FCA taking further action against firms who fail to comply with the FCA’s rules.
The Financial Services and Markets Act 2000 provides the FCA with a range of powers to ensure relevant firms comply with its rules, and to act where firms fail to comply. The government is content that this legislative framework is appropriate and that the FCA has the right tools available to enable it to take action when firms do not comply with regulations.
The FOS does not have powers to directly enforce its determinations through legal proceedings, as its role is to act as an alternative to the courts. However, once the FOS’s determination is accepted by the complainant, it becomes binding on the firm. If a firm fails to comply with a determination, a complainant can enforce it through the courts. This does not require the merits of the case to be considered again by the court.
In cases where a firm fails to comply with a decision due to it failing, affected complainants may be eligible to claim compensation through the Financial Services Compensation Scheme (FSCS).
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether customer account closures made while complaints remain unresolved by the Financial Ombudsman Service must be reported to (a) the Financial Conduct Authority, (b) the Financial Ombudsman Service and (c) any other regulatory body.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
In June 2025, the Government legislated to introduce stronger protections for customers in cases of bank account closure.
The measures we have introduced extend the minimum notice period of termination from two months to 90 days and place a new requirement on banks and other providers to give a sufficiently detailed and specific explanation to the customer so they understand why their service is being terminated, subject to certain exceptions. Where providers give a notice of termination to a customer, they must advise the customer on how they can make a complaint and of any right they may have to complain to the Financial Ombudsman Service (FOS). These changes will take effect for relevant new contracts from 28 April 2026. Guidance on implementing requirements would be a matter for the relevant regulators.
The Financial Conduct Authority’s rules on how the FOS should handle complaints state that ‘The ombudsman will attempt to resolve complaints at the earliest possible stage’. A number of factors may affect the time it takes for the FOS to resolve complaints that are referred to it. In 2023-2024, the FOS resolved over half of its cases within three months.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what guidance her Department has issued for banks on reporting customer account closures while complaints remain unresolved by the Financial Ombudsman Service.
Answered by Lucy Rigby - Economic Secretary (HM Treasury)
In June 2025, the Government legislated to introduce stronger protections for customers in cases of bank account closure.
The measures we have introduced extend the minimum notice period of termination from two months to 90 days and place a new requirement on banks and other providers to give a sufficiently detailed and specific explanation to the customer so they understand why their service is being terminated, subject to certain exceptions. Where providers give a notice of termination to a customer, they must advise the customer on how they can make a complaint and of any right they may have to complain to the Financial Ombudsman Service (FOS). These changes will take effect for relevant new contracts from 28 April 2026. Guidance on implementing requirements would be a matter for the relevant regulators.
The Financial Conduct Authority’s rules on how the FOS should handle complaints state that ‘The ombudsman will attempt to resolve complaints at the earliest possible stage’. A number of factors may affect the time it takes for the FOS to resolve complaints that are referred to it. In 2023-2024, the FOS resolved over half of its cases within three months.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has had recent discussions with the Secretary of State for Education on budgets for the devolved adult skills fund.
Answered by Darren Jones - Minister for Intergovernmental Relations
The Chancellor of the Exchequer and Chief Secretary of the Treasury meet regularly with the Secretary of State for Education.
At the Spending Review on 30 October, the Department for Education received a settlement providing total DEL funding of £99.7 billion in 2025-26. The Department is responsible for determining their budgets, including for the Adult Skills Fund, through their Business Planning process. Budgets beyond 2025-26 will be determined at phase 2 of the Spending Review on 11 June.
Achieving growth and breaking down barriers to opportunity are key priorities for this Government. The Adult Skills Fund is a crucial component of both missions helping to provide a foundation for individuals to improve earnings and employment opportunities, and open doors to further learning. This Government is committed to seeing local government empowered and strengthened including through the devolution of adult skills.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of interest only mortgages on financial planning for borrowers.
Answered by Emma Reynolds - Secretary of State for Environment, Food and Rural Affairs
The Financial Conduct Authority (FCA) has responsibility for the day-to-day operation of the residential mortgage market, including the regulation of interest only mortgages.
Following research and analysis published in August 2023, the FCA is reviewing its existing guidance on the treatment of interest only borrowers.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to issue guidance on the tax treatment of payments received under the Biodiversity Net Gain scheme; and what progress the joint working group has made on that issue.
Answered by James Murray - Chief Secretary to the Treasury
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what progress her Department's joint working group with HMRC has made on clarifying the tax treatment of payments received under the Biodiversity Net Gain scheme.
Answered by James Murray - Chief Secretary to the Treasury
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department has plans to issue guidance on the tax treatment of payments received under the Biodiversity Net Gain scheme.
Answered by James Murray - Chief Secretary to the Treasury
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.
Asked by: Manuela Perteghella (Liberal Democrat - Stratford-on-Avon)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether her Department plans to provide interim guidance on the tax treatment of payments received under the Biodiversity Net Gain scheme.
Answered by James Murray - Chief Secretary to the Treasury
The Government has established the joint HMT/HMRC working group with industry representatives to identify solutions that provide clarity on the tax treatment of ecosystem service markets, including the Biodiversity Net Gain scheme. The work of the group is currently ongoing.