Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of recent trends in consumer spending; and what assessment they have made of the impact of this on (1) the retail sector, and (2) the wider economy.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Consumer confidence has strengthened considerably over the past year. The March 2024 release of the GfK index indicated that consumer confidence was 15 points stronger than in March 2023.
Government continues to back consumers and retailers. With the economy beginning to turn a corner, we are now able to make responsible tax cuts to boost growth while meeting the fiscal rules to ensure sustainable public finances. These include cutting the employee main rate of National Insurance to 8%, which will make an average worker on £35,400 over £900 a year better off than before.
At Autumn Statement 2023 we extended Retail, Hospitality and Leisure relief for 2024-5, a tax cut worth £2.4 billion, and froze the small business multiplier for a fourth consecutive year. At Spring Budget 2024, the government went further still by supporting small retailers by increasing the VAT registration threshold to £90,000 and extending the Recovery Loan Scheme, now the Growth Guarantee Scheme.
Consumer confidence is intrinsically linked to inflation, household finances and the broader economic outlook. To sustain consumer confidence, consumers need to feel assured that their government is taking the long-term decisions necessary to strengthen the economy and build a brighter future.
Combined, recent policy measures will place more money in people’s pockets, helping boost consumer confidence, and strengthen the UK’s retail sector.
Asked by: Tanmanjeet Singh Dhesi (Labour - Slough)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, if he will take steps to ensure that issues affecting the wholesale sector are considered in policy development across Government.
Answered by Mark Spencer - Minister of State (Department for Environment, Food and Rural Affairs)
This Government recognises the significance of the wholesale sector to communities across the UK whether through their vital role in supplying the retail or foodservice sectors or supplying public sector food providers. To uphold these critical supply chains, we will ensure the wholesale sector continues to be considered as part of future policy development.
Asked by: Justin Madders (Labour - Ellesmere Port and Neston)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, with reference to the press notice by her predecessor Department entitled BEIS in the Autumn Statement, published on 18 December 2022, what her planned timetable is for assessing the potential merits of (a) introducing social tariffs and (b) wider retail market reforms in the energy sector.
Answered by Amanda Solloway - Government Whip, Lord Commissioner of HM Treasury
A social tariff is fundamentally about supporting the most vulnerable with the cost of energy and this is what we have delivered. Between 2022-25 we are delivering a package of support worth £108 billion, or £3,800 per household on average, across 2022-25.
In 2023-24 we have supported millions of vulnerable households with up to £900 in further cost-of-living payments. Despite the Quarter 2 2024 Ofgem price cap falling nearly 60% since its 2023 peak, we have committed to supporting households past April, by cutting National Insurance, and increasing benefits and the National Living Wage.
We have also been working with Ofgem on their new involuntary prepayment meter rules and a long-term solution to end the prepayment meter premium. I met with suppliers at the end of last year to outline my expectation that they support vulnerable customers and improve their customer service.
The Government published a vision for a reformed retail energy market in July 2023 (https://www.gov.uk/government/publications/delivering-a-better-energy-retail-market/delivering-a-better-energy-retail-market-a-vision-for-the-future-and-package-of-targeted-reforms-html) and set out further reform measures in a package of publications on 23 February 2024 (https://www.gov.uk/government/news/new-package-of-measures-to-help-families-save-even-more-on-bills).
Asked by: Daniel Kawczynski (Conservative - Shrewsbury and Atcham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the number of financial advisers in relation to the demand for financial advice from consumers (a) now and (b) in the future.
Answered by Bim Afolami - Economic Secretary (HM Treasury)
HM Treasury works closely with the Financial Conduct Authority (FCA) to ensure that the market works well, competitively and fairly for both firms and consumers, and that the advice being provided is of high quality.
HM Treasury sets the legislative framework for financial services, including financial advice, and regulation of the sector is the responsibility of the independent FCA. Their rules require advice firms to understand the essential facts about their client’s investment objectives, risk tolerance, and ability to bear losses before making a recommendation. The FCA’s Consumer Duty also applies, which requires regulated firms to avoid foreseeable harm and support their customers to pursue their financial objectives.
In 2020, the FCA published an evaluation of the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR) – significant interventions to improve the quality of financial advice. This found that the reviews enhanced the offering available to consumers and increased trust in the investment industry. It also found a small increase in the number of advisers in the market from approximately 35,000 to 36,400 between 2012 and 2019.
The Government recognises continued concerns regarding the accessibility and cost of advice and has launched a review, alongside the FCA, of the regulatory boundary between financial guidance and financial advice. The review seeks to create a regulatory system where commercially viable, high-quality models of support can emerge for consumers at all life stages. HM Treasury and the FCA published a joint policy paper in December 2023 outlining initial proposals for reform and are currently considering the feedback provided by industry and consumer groups.
Asked by: John Redwood (Conservative - Wokingham)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, what steps she is taking to improve the profitability of the Post Office.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The Government is clear that the Post Office should be a valuable social and economic asset for communities and businesses for years to come. To ensure the Post Office is fit for the future, the Government is engaging with stakeholders regarding the challenges facing the post office network and postmasters, resulting from the changing retail landscape and increased costs.
We have provided over £2.5 billion in funding to support the Post Office network over the past decade and is providing a further £588 million for the Post Office between 2022 and 2025. This includes a £50 million annual subsidy to safeguard services in the uncommercial parts of the network.
The Government also recognises that there are concerns about central costs, and we have been clear that Post Office must do more to cut central costs where possible.
The Post Office network is a crucial component of the UK's long-term provision of cash and banking services. That is why we have encouraged Post Office to be ambitious in their negotiations with banks for the next iteration of the Banking Framework agreement to ensure that both Post Office and Postmasters receive proportionate remuneration for the vital services they are providing.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of recent data from the British Retail Consortium which found that food inflation in February was at its lowest rate in almost two years; and what assessment they have made of the impact this will have on consumer confidence.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
Consumer confidence has strengthened considerably over the past year. The February 2024 release indicated that consumer confidence was 17 points stronger than in February 2023.
Consumer confidence is intrinsically linked to inflation, household finances and the broader economic outlook. To sustain consumer confidence, consumers need to feel assured that their government is taking the long-term decisions necessary to strengthen the economy and build a brighter future.
The plan is working, headline inflation has fallen from 11.1% to 4.0%. The Government notes the recent data from the British Retail Consortium.
Asked by: Christian Wakeford (Labour - Bury South)
Question to the Department for Education:
To ask the Secretary of State for Education, what fiscal steps she is taking to support (a) training programmes, (b) apprenticeships and (c) other efforts to promote (i) job creation and (ii) skills development in Bury South constituency.
Answered by Robert Halfon
The government is committed to creating a world leading skills system which is employer-focused, high quality and fit for the future. The government’s reforms are strengthening higher education (HE) and further education (FE) to help more people get good jobs and upskill and retrain throughout their lives, as well as to improve national productivity and economic growth. The government’s reforms are backed with an additional investment of £3.8 billion over the course of this Parliament to strengthen HE and FE.
This additional funding will help providers such as those in Bury to deliver high quality education and training.
Bury College serves the Bury South constituency and received £25.3 million to deliver learning and skills training programmes in 2022/23 for 16 to18 year olds and apprentices for local employers. Bury College has also received capital investment of over £12 million since 2019.
Bury College offers a wide range of post-16 education and training from pre-entry level qualifications, A levels, T Levels, vocational courses at Levels 1 to 3, and apprenticeships in health and public services, business administration, engineering, retail and commercial enterprise, and education and training. It also has a University Centre and works in partnership with several local universities to deliver a range of HE courses at Higher National Diploma, Foundation Degree and Degree level to the local community. Bury College also receives funding for adult education programmes via Greater Manchester Combined Authority.
Bury College is a partner of the Greater Manchester Institute of Technology, led by The University of Salford, and has received £1.353 million of funding for refurbishments and specialist equipment in Heath Innovation, Science, Technology, Engineering and Mathematics, Enterprise and Sports provision. Bury College will account for 25% of all learners at the Institute of Technology. This equates to approximately 200 learners in 2023/24.
The area is also served by Holy Cross College, a Catholic sixth form college, which received £12.89 million to deliver learning programmes for 16 to18 year olds in 2022/23. It delivers a largely academic Level 3 programme and a small Level 2 cohort. Holy Cross College has a University Centre delivering HE both through a direct contract with Office for Students and in partnership with Liverpool Hope University.
The department is increasing investment in the apprenticeships system in England to £2.7 billion by 2024/25 to support employers of all sizes and in all areas of the country, including Bury South, to grow their businesses with the skilled apprentices they need. Since 2010, there have been 11,380 apprenticeship starts in Bury South.
The department has introduced the Free Courses for Jobs scheme which enables eligible adults to gain a qualification for free. Residents in Bury can access provision in a range of sector subject areas delivered through colleges and training providers in the area.
In addition, the department has also introduced Skills Bootcamps, which are free, flexible courses of up to 16 weeks, giving people the opportunity to build up sector-specific skills and fast track to an interview with an employer. In each of the 2023/24 and 2024/25 financial years, the department has allocated £7.5 million to Greater Manchester Combined Authority to deliver Skills Bootcamps in the Greater Manchester area, including in Bury South via grant funding.
T Levels will equip more young people with the skills, knowledge and experience to access skilled employment or further study. From September 2023, 18 T Levels will be available and will be delivered through nearly 300 providers across all regions of the country. Bury college is delivering T Levels in business administration, legal, financial, and accounting, education and childcare, and health and engineering in 2023/24. The college intends to introduce further T Levels in catering and hospitality, construction and the built environment, creative and digital, and hair and beauty in 2024/25.
Asked by: Karl McCartney (Conservative - Lincoln)
Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, what discussions she has had with the (a) National Federation of Retail Newsagents, (b) Association of Convenience Stores, (c) British Independent Retailers Association, (d) Scottish Grocers Federation and (e) Federation of Wholesale Distributors on the introduction of a generational ban on the purchase of tobacco.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
Smoking is the number one entirely preventable cause of ill-health, disability and death in this country. It is responsible for 80,000 yearly deaths in the United Kingdom and one in four of all UK cancer deaths. It costs our country £17 billion a year, £14 billion of which is through lost productivity alone. It puts huge pressure on the National Health Service and social care, costing over £3 billion a year.
This is why the Government is planning to create a smokefree generation by bringing forward legislation so that children turning 15 years old this year or younger, will never be legally sold tobacco products.
Since this announcement, officials have undertaken a series of discussions with retailers and most recently met with the British Independent Retailers Association, the Association of Convenience Stores, and other trade associations to discuss the smokefree generation and youth vaping policy. We will continue to engage with the retail sector and ensure they are supported to implement future legislation.
Asked by: Dehenna Davison (Conservative - Bishop Auckland)
Question to the Department for Levelling Up, Housing & Communities:
To ask the Secretary of State for Levelling Up, Housing and Communities, what steps his Department is taking to support the long-term viability of high streets.
Answered by Jacob Young - Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)
This Government is fully committed to supporting our high-street businesses and communities.
Thanks to my Hon friend’s hard work, provisions in the Levelling Up and Regeneration Act for High Street Rental Auctions (HSRA) give local authorities new powers to force landlords to rent out vacant units in high streets. HSRAs will be backed by £2 million funding announced as part of the Anti-Social Behaviour Action Plan, to help communities and local businesses take control of empty properties, covering the cost of refurbishing properties, the auction process and council fees.
The High Street Accelerator pilot programme will incentivise and empower local people to work together to develop ambitious plans to tackle vacancy and anti-social behaviour, and work on long-term regeneration plans to future proof their high streets.
The Government’s Long-Term Plan for Towns has identified 55 towns to develop the first wave of Town Partnerships, backed by £1.1 billion overall, to drive ambitious plans to regenerate local towns across the UK over the next decade.
Long-term investment also includes £2.35 billion of Town Deals and over £830 million of Future High Streets Funding across 170 high streets, town centres and local communities in England.
At the last autumn statement, the Chancellor announced a business rates support package worth £4.3 billion over the next five years, freezing the small business multiplier and extending the Retail, Hospitality and Leisure scheme.
I want to thank my Hon friend for her work, and I look forward to continuing to work with her on levelling up projects in Bishop Auckland and our Long-Term Plan for Towns in Spennymoor.
Asked by: Navendu Mishra (Labour - Stockport)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether her Department has an industrial strategy for the retail sector.
Answered by Kevin Hollinrake - Minister of State (Department for Business and Trade)
The industry led Retail Sector Council is the key forum to address significant sector issues and define a strategic future for the retail sector. It aims to accelerate positive change, increase productivity, and ensure it remains robust and sustainable, continuing to provide good jobs and a beneficial service to consumers, communities, the economy.
In July 2023 the Council published a discussion paper ‘Retail – The Great Enabler’ exploring the value of and pressures on the sector. The Council is developing a strategic approach for retail that embraces several key areas including sustainability, labour and retail careers, cost of living pressures and impact on supply chains and high street regeneration and investment.