Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential merits of (a) imposing fines on companies that do not register beneficial owners under the Economic Crime and Corporate Transparency Act 2023 and (b) hypothecating those revenues for local authorities.

The Economic Crime Acts 2022 and 2023 established and enhanced the Register of Overseas Entities. Financial penalties are used where entities fail to comply. Alongside restrictions on property transactions, this helps protect the integrity of the UK property market by enhancing transparency about who owns and controls overseas entities.

As with other fines, revenues are paid into the Consolidated Fund. Government does not generally support the hypothecation of fine revenue, as this can reduce flexibility in public finances and risk weakening the deterrent purpose of penalties. Core funding for local authorities is set through the Local Government Finance Settlement.