Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent assessment he has made of the main causes of the level of inflation.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
High inflation is the greatest immediate economic challenge that we must address. That is why the Government has made it a priority to halve inflation this year, and we will not hesitate in our resolve to support the Bank of England as it takes action to return inflation to the 2% target. We are on track to do this: the majority of major forecasters agree in forecasting inflation to halve by the end of the year and subsequently return to target.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has held recent discussions with the banking sector on corporate and social responsibilities.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not set mortgage or interest rates. The Bank Rate - which is one factor that lenders use to set mortgage and retail interest rates - is set by the Monetary Policy Committee (MPC) of the Bank of England, which is independent of Government. Commercial Banks and Building Societies also make other commercial judgements that influence the degree of pass‐through from changes in Bank Rate into mortgage and retail interest rates. The Government does not seek to intervene in these commercial decisions.
However, we recognise this will be a concerning time for mortgage holders, particularly those who are due to come to the end of their existing deal in the immediate future. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
The Chancellor and I have regular meetings with banks on a range of topics, including to discuss how banks are supporting people with the rising cost of living. On Friday 23 June the Chancellor met with mortgage lenders, UK Finance and the FCA to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from a first missed payment without their consent or unless in exceptional circumstances.
If you are concerned about making your mortgage repayment, you must speak to your lender as soon as possible. Contacting them will not affect your credit score.
The Government has also already taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
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: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has had any recent discussions with banks on (a) the financial support provided to banks in 2008 and (b) rates for (i) savings and (ii) loans being offered by banks, in the context of rises in the cost of living.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not set mortgage or interest rates. The Bank Rate - which is one factor that lenders use to set mortgage and retail interest rates - is set by the Monetary Policy Committee (MPC) of the Bank of England, which is independent of Government. Commercial Banks and Building Societies also make other commercial judgements that influence the degree of pass‐through from changes in Bank Rate into mortgage and retail interest rates. The Government does not seek to intervene in these commercial decisions.
However, we recognise this will be a concerning time for mortgage holders, particularly those who are due to come to the end of their existing deal in the immediate future. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
The Chancellor and I have regular meetings with banks on a range of topics, including to discuss how banks are supporting people with the rising cost of living. On Friday 23 June the Chancellor met with mortgage lenders, UK Finance and the FCA to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from a first missed payment without their consent or unless in exceptional circumstances.
If you are concerned about making your mortgage repayment, you must speak to your lender as soon as possible. Contacting them will not affect your credit score.
The Government has also already taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
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: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the impact of relative changes in banks rates on (a) mortgages and loans and (b) savings.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government does not set mortgage or interest rates. The Bank Rate - which is one factor that lenders use to set mortgage and retail interest rates - is set by the Monetary Policy Committee (MPC) of the Bank of England, which is independent of Government. Commercial Banks and Building Societies also make other commercial judgements that influence the degree of pass‐through from changes in Bank Rate into mortgage and retail interest rates. The Government does not seek to intervene in these commercial decisions.
However, we recognise this will be a concerning time for mortgage holders, particularly those who are due to come to the end of their existing deal in the immediate future. The Prime Minister has been clear, the best and most important way that we can keep costs and interest rates down for people is to halve inflation, and then return it to the 2% target.
The Chancellor and I have regular meetings with banks on a range of topics, including to discuss how banks are supporting people with the rising cost of living. On Friday 23 June the Chancellor met with mortgage lenders, UK Finance and the FCA to discuss a new package of support for those who encounter problems keeping up with their mortgage payments. These commitments include an agreement permitting customers to switch to an interest only mortgage, or extend their mortgage term, for 6 months, after which they can switch back without a new affordability check or it affecting their credit score. Lenders also agreed borrowers won’t have their home repossessed within 12 months from a first missed payment without their consent or unless in exceptional circumstances.
If you are concerned about making your mortgage repayment, you must speak to your lender as soon as possible. Contacting them will not affect your credit score.
The Government has also already taken a number of measures aimed at helping people to avoid repossession, including Support for Mortgage Interest (SMI) loans for those in receipt of an income-related benefit, and protection in the courts through the Pre-Action Protocol, which makes it clear that repossession must always be the last resort for lenders.
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: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has made an recent assessment of the adequacy of rate of taxation applicable to the banking sector.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The Government recognises the need for the tax system to maintain the balance between revenue and competitiveness for the UK banking sector.
The banking sector faces two additional taxes in the form of the bank levy and the bank corporation tax surcharge, in addition to restrictions that mean banks cannot claim tax relief for historic losses incurred during the financial crisis, and denying banks corporation tax relief for PPI compensation payments.
Taken together these measures are forecast to have raised more than £57 billion from the banking sector by 2028 since their introduction.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the impact of charging VAT on children's sportswear on (a) community sports clubs and (b) parents.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
Under the current VAT rules, all children’s clothing and footwear designed for young children who are less than 14 years of age, including sportswear, attract a zero-rate of VAT, meaning that no VAT is charged on the sale of these items.
There are no plans to make changes here. The Government keeps all taxes under review.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the implications for his policies of (a) the world economic outlook published by the IMF in April 2023 and (b) the projections for the UK economy included in that publication.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
The IMF growth forecast for the UK 2023 has been upgraded by more than any other G7 country. The IMF say we are on the right track for economic growth.
As well as increasing growth in the medium term, reforms in the Spring Budget also boost sustainable economic growth over the long term – the impact of which will not have been included within the IMF’s forecast horizon of 2024.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent discussions his Department has had with the Department for Education on funding available to repair or replace defective elements of the schools estate.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury Ministers regularly discuss public spending matters with other government departments, including on the condition of the school estate. The 2021 Spending Review confirmed £19.5 billion of capital funding to support the education sector between the financial years 2022-23 and 2024-25, including reaffirming our commitment to rebuild 500 schools over 10 years. In December, the Department for Education confirmed the latest tranche of 239 schools to be included in the programme.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how many (a) fossil fuel-, (b) electric- and (c) hybrid-powered road-legal vehicles their Department purchased in the last 24 months.
Answered by James Cartlidge - Minister of State (Ministry of Defence)
No vehicles have been purchased by HM Treasury in the last 24 months.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he has held recent discussions with the IMF on the UK's projected rate of economic growth.
Answered by Andrew Griffith - Minister of State (Department for Science, Innovation and Technology)
Treasury officials are in regular dialogue with the IMF, including through the UK Delegation to the IMF and bilateral engagement with IMF staff.
The IMF will conduct an Article IV Mission to the UK in due course.