Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, whether his Department has made an assessment of the effect on the UK economy of a customs agreement with the EU that includes participation in the Common External Tariff and Common Commercial Policy.
Answered by Elizabeth Truss
The government has undertaken a significant amount of work to assess the economic impact of leaving the EU. This is part of our continued programme of rigorous and extensive analytical work on a range of scenarios on a sector by sector basis.
We want to conclude a deep and special partnership with the European Union. This includes pursuing a new customs agreement that allows for the freest possible trade in goods and services between the UK and EU member states.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the effect on the UK economy of the UK leaving the EU's Common Commercial Policy and Common External Tariff without a customs agreement between the UK and the EU.
Answered by Elizabeth Truss
The government has undertaken a significant amount of work to assess the economic impact of leaving the EU. This is part of our continued programme of rigorous and extensive analytical work on a range of scenarios on a sector by sector basis.
We want to conclude a deep and special partnership with the European Union. This includes pursuing a new customs agreement that allows for the freest possible trade in goods and services between the UK and EU member states.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, with reference to the Driver and Vehicle Licensing Agency's VED reform, due to commence on 1 April 2017, what estimate he has made of how many and what proportion of zero emission vehicles have a list price (a) of £40,000 and under and (b) over £40,000; and for what reasons the threshold was set by the Government at £40,000.
Answered by Jane Ellison
Data is not available about list prices for cars registered in the pre-2017 VED system. As a proxy, data can be used from the Government’s Plug-in Car Grant scheme, which provides a discount to purchasers of eligible ultra-low emission cars. The value of the grant varies according to factors including the vehicle’s zero emission mileage capability. In the year to November 2016, 23% of all grants of the highest category available (i.e. cars with below 50g/km of carbon dioxide (CO2) and a zero emission range of at least 70 miles) were in respect of cars priced over £40,000. Out of all grants made since the scheme began, 14% of grants in the highest category were in respect of cars priced over £40,000.
Ahead of the announcement of the VED reforms at Summer Budget 2015, Ministers reviewed data from 2014 that showed 95% of car sales were below £40k. Ministers considered that this was a fair threshold for an additional rate of VED which would apply to consumers who are able to afford a supplement.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans the Government has to implement a requirement for payment services lenders to clearly stipulate what the total cost of the loan will be for the entirety of the loan period.
Answered by Simon Kirby
The Financial Conduct Authority requires firms to provide adequate pre-contractual explanations to enable consumers to assess whether the proposed credit agreement is suited to their needs and financial situation.
The requirement to provide pre-contract information (including the “total charge for credit to be provided under the agreement”) is set out in the Consumer Credit (Disclosure of Information) Regulations 2010 (subsequently amended by Consumer Credit (Amendment) Regulations 2010.) These regulations are made under s.55 Consumer Credit Act 1974 and implemented the various provisions in the Consumer Credit Directive requiring creditors under certain types of agreement to disclose information before the agreement is made.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the earliest date by which the UK will be able to discharge the liabilities entered into during its time as an EU member state when exiting from the EU.
Answered by David Gauke
There are a whole range of issues and elements to our relationship with the European Union that will need to be addressed as we leave.
These issues affect both sides, the UK and the EU. The government will not be giving a running commentary on the details.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the cost of extracting the UK from EU shared contingent liabilities and loan guarantees once the UK exits the EU.
Answered by David Gauke
These are two of a whole range of issues and elements to our relationship with the European Union that will need to be addressed as we leave.
These issues affect both sides, the UK and the EU. The government will not be giving a running commentary on the details.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the cost of extracting the UK from EU shared payment liabilities once the UK exits the EU.
Answered by David Gauke
These are two of a whole range of issues and elements to our relationship with the European Union that will need to be addressed as we leave.
These issues affect both sides, the UK and the EU. The government will not be giving a running commentary on the details.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential benefits of replacing the Bank of England's two per cent inflation target with a two to three per cent inflation target averaged over the business cycle
Answered by Simon Kirby
A comprehensive Review of the Monetary Policy Framework was published in 2013, considering the benefits and costs of a number of different monetary policy frameworks. The current remit for the Monetary Policy Committee reflects the assessment set out in the Review, which includes retaining a flexible inflation targeting framework, with a 2 per cent symmetric inflation target, as measured by the 12 month change in the Consumer Prices Index. The remit also states that the MPC may allow inflation to deviate from this target temporarily in order not to cause undesirable volatility in output due to the short-term trade-offs involved.
Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the potential effect on the UK economy of the increase in corporate debt in China.
Answered by Damian Hinds - Minister of State (Education)
The Treasury continuously monitors global economic developments, including in China, and their impact on the UK as part of the normal process of policy development. As one of the most open trading economies in the world with a large financial sector, we have to recognise that the UK is not immune to the continued problems being experienced in the world economy. Nonetheless, the Bank of England’s 2015 stress tests modelled a severe slowdown in commodities and emerging markets. No banks were required to submit revised capital plans following the stress tests. These results indicate that the UK banking system would have the capacity to continue to lend to the real economy, even under such a severe adverse scenario.Asked by: Matthew Pennycook (Labour - Greenwich and Woolwich)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the accuracy of the methodology used to measure productivity in the UK.
Answered by Greg Hands - Minister of State (Department for Business and Trade)
The Independent Review of UK Economic Statistics, commissioned by the Chancellor and Minister for the Cabinet Office last summer, suggested that fuller measurement of the economy could add between one-third and two-thirds of a percent to the growth to UK GDP. Better measurement of the digital economy, intangible investment and the sharing economy could therefore improve measurement of output, and thus productivity. The Chancellor welcomed the report’s findings at Budget 2016 and committed to invest over £10m in a new hub for data science, and a centre for excellence for improving measurement of the modern economy.