Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the Office of Tax Simplification's publication of May 2018 entitled Savings income: routes to simplification, whether he has made a recent assessment of the potential merits of its recommendations on (a) reviewing guidance relating to pension withdrawals and (b) the use of the emergency take code for personal pension lump sum withdrawals.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government ensures that all savers have access to free, impartial guidance as they approach retirement age through MoneyHelper, provided by the Money and Pension Service (MaPS). MoneyHelper Pensions provides guidance on all areas of UK pensions to the public regardless of age. Information relating to the tax implications of pension withdrawals is available on the MoneyHelper website, and is covered in Pension Wise appointments.
The use of PAYE for those who access pensions flexibly operates as expected for many individuals. Where tax is overpaid tax because of an emergency tax code, individuals can contact HMRC and will be repaid within 30 days. Moreover, anyone who does not contact HMRC will be automatically repaid following the end of the tax year. This approach helps to minimise the number of unexpected tax bills for those who access their pension savings flexibly.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of (a) maintaining RPI beyond 2030 and (b) putting in place mitigating measures to ensure that defined benefits pensions are not reduced.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
On 25 November 2020, the Government and UK Statistics Authority (UKSA) published their response to the consultation on the timing of reform to the Retail Prices Index (RPI). Owing to shortcomings in its calculation, UKSA intends to bring the methods and data sources of the Consumer Prices Index including owner occupiers’ housing costs (CPIH) into RPI.
The Government and UKSA are mindful of the widespread use of RPI in the economy, and, as such, sought views in the consultation on the broader impacts of reform. The Government and UKSA received approximately 550 responses from members of defined benefit (DB) pension schemes whose benefits are linked to RPI.
It is apparent that some DB pension schemes members will be affected by UKSA’s reform. The effect of reform on the members of such schemes will depend on whether their benefits are linked to RPI under the trust deed and rules of the scheme.
The announcement in the response by the Chancellor and UKSA Chair means that reform will not be implemented before 2030. The Government keeps the occupational pensions system under review and will continue to do so.
For further information please see the consultation response at: https://www.gov.uk/government/consultations/a-consultation-on-the-reform-to-retail-prices-index-rpi-methodology.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the Financial Conduct Authority’s response to concerns raised in 2017 on the sales practices being used by Blackmore Bond plc and its representatives.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is aware of the failure of Blackmore Bond plc and the latest report submitted by the Joint Administrators in December. Blackmore Bond plc issued non-transferable debt securities (sometimes known as mini-bonds). It is not a regulated activity for firms to issue their own non-transferable debt securities. However, in the UK, responsibility for regulating the promotion and marketing of mini-bonds lies with the Financial Conduct Authority (FCA).
On 1 January 2021 the FCA made permanent rules banning the promotion of high risk ‘speculative illiquid securities’ (including some mini-bonds) to ordinary retail consumers. These rules were introduced in response to the failure of London Capital & Finance and concerns about the suitability of speculative illiquid securities for retail investors. This ban prevents future companies like Blackmore Bond plc marketing their products to retail investors. The Treasury is currently undertaking a review into the regulatory framework for mini-bonds and will launch a consultation later this year on the regulation of non-transferable debt securities.
In view of the FCA’s role as an independent non-governmental body it would not be appropriate for Government to comment on the FCA’s handling of Blackmore Bond plc. Investors who have concerns about the FCA’s handling of the failure of Blackmore Bond plc can make a complaint using the FCA Complaints Scheme.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government plans to take in response to the statutory report submitted by the Joint Administrators of Blackmore Bond plc.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is aware of the failure of Blackmore Bond plc and the latest report submitted by the Joint Administrators in December. Blackmore Bond plc issued non-transferable debt securities (sometimes known as mini-bonds). It is not a regulated activity for firms to issue their own non-transferable debt securities. However, in the UK, responsibility for regulating the promotion and marketing of mini-bonds lies with the Financial Conduct Authority (FCA).
On 1 January 2021 the FCA made permanent rules banning the promotion of high risk ‘speculative illiquid securities’ (including some mini-bonds) to ordinary retail consumers. These rules were introduced in response to the failure of London Capital & Finance and concerns about the suitability of speculative illiquid securities for retail investors. This ban prevents future companies like Blackmore Bond plc marketing their products to retail investors. The Treasury is currently undertaking a review into the regulatory framework for mini-bonds and will launch a consultation later this year on the regulation of non-transferable debt securities.
In view of the FCA’s role as an independent non-governmental body it would not be appropriate for Government to comment on the FCA’s handling of Blackmore Bond plc. Investors who have concerns about the FCA’s handling of the failure of Blackmore Bond plc can make a complaint using the FCA Complaints Scheme.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of protection for investors since the collapse of Blackmore Bond plc.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government is aware of the failure of Blackmore Bond plc and the latest report submitted by the Joint Administrators in December. Blackmore Bond plc issued non-transferable debt securities (sometimes known as mini-bonds). It is not a regulated activity for firms to issue their own non-transferable debt securities. However, in the UK, responsibility for regulating the promotion and marketing of mini-bonds lies with the Financial Conduct Authority (FCA).
On 1 January 2021 the FCA made permanent rules banning the promotion of high risk ‘speculative illiquid securities’ (including some mini-bonds) to ordinary retail consumers. These rules were introduced in response to the failure of London Capital & Finance and concerns about the suitability of speculative illiquid securities for retail investors. This ban prevents future companies like Blackmore Bond plc marketing their products to retail investors. The Treasury is currently undertaking a review into the regulatory framework for mini-bonds and will launch a consultation later this year on the regulation of non-transferable debt securities.
In view of the FCA’s role as an independent non-governmental body it would not be appropriate for Government to comment on the FCA’s handling of Blackmore Bond plc. Investors who have concerns about the FCA’s handling of the failure of Blackmore Bond plc can make a complaint using the FCA Complaints Scheme.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to support people experiencing bank transfer fraud.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government takes bank transfer fraud, often known as Authorised Push Payment (APP) scams, extremely seriously.
The Payment Systems Regulator, which was set up by the Government in 2015, established a steering group of financial institutions and consumer representatives to develop a voluntary industry Code of good practice to help protect consumers against these kinds of scam.
At the end of February 2019, the steering group published the Code, which sets out the agreed principles for greater protection of consumers and the circumstances in which they will be reimbursed, marking a significant step in delivering improved protections for customers.
The Code became effective on 28 May 2019 and customers of those payment service providers that are signatories are protected under the Code from this date.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what discussions has he had with the Secretary of State for Defence on the relative fiscal multiplier of the trident weapons programme compared to other (a) army (b) navy and (c) air force expenditure in Scotland.
Answered by Mel Stride - Secretary of State for Work and Pensions
I refer the Hon Member to the answer given for PQ 153307.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many representations has he received from (a) business organisations and (b) trade unions on changes to the Scottish Government block grant since 2010; and how many of those representations have been sent a response.
Answered by Elizabeth Truss
I refer the Hon. Member to the answer given on 18th June 2018 to PQ 153308.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how much his Department has spent on preparations for inter-governmental discussions on negotiations with the EU in 2018 to date.
Answered by Robert Jenrick
The information requested is not readily available and could be provided only at disproportionate cost.
Asked by: Peter Grant (Scottish National Party - Glenrothes)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, how many representations he has received from (a) business organisations and (b) trade unions on customs arrangements after the UK leaves the EU; and how many of those such representations have received a response from his Department.
Answered by Mel Stride - Secretary of State for Work and Pensions
The government speaks regularly to a range of stakeholders on customs and related matters. Since the referendum, ministers and officials have met with over 300 businesses and other organisations involved in international trade throughout the UK to discuss customs VAT and excise.
Businesses and representative bodies have an important role to play in the policy making process and the government will continue its engagement.