John Glen
MP for Salisbury · Conservative · United Kingdom
“I welcome the Chief Secretary to her new position, but what words of comfort could she give the residents of Salisbury in Wiltshire, a unitary authority? We are not part of a combined authority and we do not have a metro mayor.”
“Sam Moody is my constituent. He is the chief executive of Rockhopper. During my time in this House, he has been absolutely scrupulous in following the laws of this country and respecting the Falkland Islanders.”
“I listened carefully to what the Minister said about the process, and I respect that. But most people who take a pretty level-headed, pragmatic view of the need for a transition over time still cannot get their heads around the short-term reality: when we have so much turmoil in the middle east, why would we extend the time that we are no…”
“It is 55 days till the Budget. Given the market’s reaction to the Prime Minister’s statement on Tuesday, and given that our gilt rates are higher than those of our peers in the G7, could we have a debate on the implications of higher taxes for growth?”
“Before the hon. Lady makes her statement on Thursday, will she, when reflecting on the arrangement in Wiltshire that would embrace Wessex—although we have been told that that is not the Government’s view—address the prevailing concern that the people of rural Wiltshire will be considerably worse off without having the opportunity to embra…”
“I recognise that the Minister wants to come to what the Government are going to do, but does he not accept that the decisions already made in the last two years—with respect to the price of employment and the national living wage, the cost of employment with regard to legislation, and business rates—have depressed the appetite of many sma…”
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“But I have been reassured that the regulators are undertaking rigorous processes, as evidenced by the number of meetings that they have had, to assess the viability of the transaction and the suitability of Bain to manage an insurance business. Importantly, the statutory objectives of the regulators put policyholders’ interests, as well as consideration of the impact of the transaction on the market, at the heart of their assessment. I greatly support the regulators in their roles, and trust that they will endeavour to secure the best outcome in the interests of members and policyholders. I recognise the points that have been raised about further demutualisations by the hon. Member for York Central (Rachael Maskell).”
“I am sure that that is going to lead to a very rigorous process, which I think he understands and I know is under way. Therefore, I do not think it is appropriate for me at this point to comment on the substance of that ongoing independent process, but what I can say is this. The approval process involves safeguards designed to ensure that members and policyholders are kept informed and that their interests are protected. I recognise that we are not at the end of that process yet, and the hon. Gentleman is somewhat anxious and perhaps, I may suggest, sceptical about what the final outcome will look like.”
“As he is aware, the sale of LV= to Bain Capital and the ultimate demutualisation of the firm is something that I have engaged with him on and discussed previously. I want to assure the House that this continues to be a priority for me. I am closely engaged on this matter, and I am in close communication with regulators and the firm itself. However, while I am very focused and aware of the views that the hon. Gentleman holds and the concerns that he raises, I cannot intervene directly in the sale or the demutualisation of a firm. The sale’s approval is a matter for the financial services regulators and the courts, both of which are independent of Government. The hon. Gentleman has done a lot of work to trace the interactions between the firm and the regulators, and I know that they are very aware of his interest in the matter.”
“That is why at the Budget we committed to amending the Credit Unions Act 1979 to allow credit unions to offer a wide range of products and services. Finally, we have ensured that mutuals have also received financial support throughout the covid crisis, recognising their vital contribution to communities up and down the country. Mutuals were able to benefit from the furlough scheme and other forms of Government financial help. In addition, the Corporate Insolvency and Governance Act 2020 introduced new insolvency support mechanisms for businesses, including many in that sector. I would now like to address the subject of this debate in more specific detail. The hon. Gentleman has set out in some detail a range of observations about what has happened over recent months.”
“The Government recognise those benefits, which is why, over the years, we have shown ourselves to be a supporter of the mutuals sector. That support has manifested itself in a wide variety of ways, including, first, in engagement. We think it is vital that we understand the sector’s needs, so two years ago the Treasury held a mutuals workshop dedicated to understanding the challenges facing the sector and how they can be overcome. We have tried to take on board the points raised in that workshop, and we continued the conversation. As a result, my officials have been working hard to raise awareness of the mutuals model across Government to ensure that other Departments are equally focused on supporting it. Secondly, we are helping the sector to be ready for the future.”
“I congratulate the hon. Member for Harrow West (Gareth Thomas) on securing the debate. He is a strong and sincere supporter of the mutuals sector, and he has regularly raised issues with me in the, I think, 44 months that I have been in post. I very much value his knowledge and insights on these matters and welcome the opportunity to discuss his concerns. During my time as Economic Secretary to the Treasury, I have seen the clear benefits of mutuals both for the economy and for society as a whole. In essence, these businesses focus on service, and their frequently innovative nature means that they provide a unique, distinct offer to both their customers and their communities as well as a much-valued degree of service.”
“Members who have spoken to this issue, their frustration with what has happened, the apparent unnecessary nature of this transaction, given the history and the apparent change in the direction of travel with little warning, but I am clear that the regulators are very aware of their obligations to safeguard the interests of members and I look forward to the judgments coming forth in the coming weeks and months. I hope that that gives the hon. Gentleman some satisfaction on the matters he has raised this evening. Question put and agreed to.”
“I am always ready to look at constructive suggestions and am happy to take this forward. I suspect there may be legal impediments to the publishing of some of that information, but I will certainly ask the questions and seek to relay to the hon. Gentleman the fullest answer that I am able to. I am frequently in my current role in between this place and independent regulators. It is right that our regulators are independent and I see the frustrations that exist within that, but I am happy to take forward a constructive dialogue as far as I can. I do not think I can add much more at this point. I recognise the sincere commitment of hon.”
“This update is an integral part of helping to protect our national security and the UK’s international reputation, businesses and financial systems from money launderers and terrorist financiers. I thank Members for examining this important measure that will update the UK’s high-risk third countries list. Businesses that fall under the scope of the money laundering regulations and that deal with such countries will be required to take extra security measures. This amendment will enable the money laundering regulations to continue to work as effectively as possible to protect the UK’s financial systems. It will allow the UK to continue to play its full part in the fight against economic crime and I hope that colleagues will join me in supporting it.”
“The Financial Action Task Force carries out periodic reviews and regularly updates its list. As a result, following the conclusion of a FATF plenary in June this year, it updated its public list of jurisdictions with strategic deficiencies to reflect changing risks and circumstances in these jurisdictions and in the global economy. This instrument will therefore amend the money laundering regulations to update the UK’s list of high-risk third countries to mirror the latest FATF public list, ensuring that the UK’s list is responsive to the latest threats emanating from high-risk countries with inadequate counter-illicit finance systems and that the UK remains at the forefront of global standards on money laundering and terrorist financing.”
“In addition, they require that financial institutions and other regulated businesses conduct additional checks or enhanced due diligence on business relationships and transactions involving high-risk third countries that have been identified as having strategic deficiencies in their anti-money laundering and counter-terrorism financing regimes and posing a significant threat to the UK’s financial system. The statutory instrument under discussion updates the list of countries that are specified as high risk in the money laundering regulations. At present, the UK’s list of high-risk third countries specified in the money laundering regulations mirrors that identified in February by the Financial Action Task Force, the global standard setter for anti-money laundering and counter-terrorist financing.”
“That is why the Government are focused on making the UK an inhospitable environment for illicit finance. We have taken significant action to tackle money laundering and terrorism financing and have strengthened the whole system response to economic crime. Underpinning those efforts are the money laundering regulations—a key part of our legislative framework—that set out a number of measures that certain businesses must take to combat money laundering and terrorist financing. They include the need for businesses to identify and verify the people and organisations with whom they have a business relationship or for whom they facilitate transactions.”
“I beg to move, That the Committee has considered the Money Laundering and Terrorist Financing (Amendment) (No. 2) (High-Risk Countries) Regulations 2021 (S.I. 2021, No. 827). May I say what a pleasure it is to serve under your chairmanship, Sir Graham? The Government recognise the threat that economic crime poses to the UK and are committed to combating money laundering and terrorist financing. Illicit finance causes significant social and economic cost through its links to serious and organised crime. It is a threat to our national security and risks damaging our international reputation as a fair and open rules-based economy. It also undermines the integrity and stability of our financial sector and can reduce opportunities for legitimate business in the UK.”
“The alert advised businesses to exercise caution given the changing environment and reminded them of the continued existing obligations to carry out customer due diligence and implement sanction screening. FATF will continue to analyse countries at risk and will likely look at those matters during its next plenary, which I believe is in October. The United Kingdom will play an active part in that conversation.”
“As anti-money laundering and counter-terrorism financing supervisors, the Financial Conduct Authority and HMRC reminded obliged firms in their recent alerts about potential financial crime risks from Afghanistan and about their obligations to ensure that they appropriately monitor and assess transactions with Afghanistan to mitigate the risk of their firms being exploited for money laundering or terrorist financing purposes and to implement sanctions screening. Similarly, the Office of Financial Sanctions Implementation, which sits within the Treasury, issued an alert reminding businesses that UN sanctions are already in place against individuals and entities associated with the Taliban.”
“Targeted sanctions impose an asset freeze, including making directly or indirectly available funds or economic resources to or for the benefit of designated individuals or entities. Under the UN’s existing Afghanistan sanctions regime, 135 designated individuals are linked to the Taliban or the Haqqani network—which as Members will know is a UK-designated and proscribed organisation closely linked to the Taliban—and four Afghan Hawala businesses. Several other designated groups and individuals with links or possible links to the Taliban are also designated under the UN al-Qaeda/Daesh regime, UNSCR 1267.”
“Afghanistan is not currently identified on any of FATF’s public lists, but it is important to note that the money laundering regulations require enhanced due diligence in a range of situations that present a high risk of money laundering or terrorist financing, not just where a transaction or business relationship involves a country that is listed as high risk. When assessing whether there is a high risk of money laundering or terrorist financing, the regulated sector must take a number of factors into consideration, including geographical risk where countries have been identified by credible sources and alerts from supervisory and regulatory bodies. There are at present various sanctions in place in relation to Afghanistan that include members of the Taliban.”
“The British Government receive extensive lobbying on these matters but we defer to the rigour of the process, no matter how uncomfortable it might be given the strong relationships we might otherwise have. Part of today’s upgrading following the June decisions goes ahead of where the EU is on a number of these issues, and I am pleased that we are applying the highest standards. The right hon. Member for Wolverhampton South East made a number of points about Afghanistan and the challenges that exist.”
“Member for Wolverhampton South East was absolutely right when he said that, because of the size and sophisticated nature of financial services in the United Kingdom, keeping to those high standards will always be an imperative for us. He asked me to comment on the listing of Malta and Afghanistan. At the June 2021 FATF plenary, FATF collectively agreed to include Malta on its list of jurisdictions under increased monitoring. As this is one of the FATF public lists that the UK list mirrors, Malta will be added to the UK’s list of high-risk third countries. The outstanding issues that Malta must address are outlined in FATF’s publicly available statement. The hon. Member for Glenrothes made a point about this country’s past. FATF’s rules and processes are searching, rigorous and extensive.”
“I am happy to address Members’ points. It is the Government’s view that the amendment will ensure that UK legislation remains up to date and continues to protect the financial system from the threat by jurisdictions with inadequate money laundering and terrorist financing. The amendment enables the UK to remain in line with international standards on money laundering and terrorist financing, allowing it to continue to play its full part in the fight against economic crime. I agree with the right hon. Member for Wolverhampton South East and the hon. Member for Glenrothes about the need to retain high standards in our financial services regulation—the consistent duty I have put on our regulators in conversations with them, week in, week out. The right hon.”
“The registration numbers thereof have diminished significantly recently, but as this is a BEIS competence I hope he will not mind my writing to him on it. I hope that satisfies the Committee. Question put and agreed to .”
“The purpose of this statutory instrument is to update according to the last assessment. We would not want, as a response to immediate events and without analysis or rigour, to add additional countries. I have explained at some length the considerable sanctions regime against proscribed individuals and the upgrading of the advice on its obligations to the regulated sector from HMRC and the FCA. Other jurisdictions such as the EU are not even upgraded to the list that I hope the Committee will agree to today. We do not rule anything out in the future, but we believe that FATF is rigorous. Indeed, the UK experienced rigorous analysis in 2018. We stand by the assessment and will see what it will do in October. The hon. Member for Glenrothes mentioned wider issues with Scottish limited partnerships.”
“I hope that that is a reasonable appraisal of and response to the issues that she rightly raised this morning. I am happy to continue correspondence with all Members, because I know that this is something that concerns our constituents. Question put and agreed to.”
“I have been in this role now for more than three and a half years, and I continue to work with banks, the Post Office and industry stakeholders to try to find practical solutions. We are working to ensure that all consumers, in both rural and urban areas, can access the services they need. We are committed to legislating to protect access to cash for those who need it, and to maintaining the sustainable cash infrastructure that the country needs. We are determined to help the whole country benefit from better broadband and mobile coverage, so that everyone who wishes to use digital and online services can do so. I will continue to work with colleagues across the House, and with my hon. Friend, on these important matters in the coming weeks and months.”
“However, while 4G coverage continues to improve in rural areas, admittedly it is not yet as good as in towns and cities—again, Members rightly raised that. As a result, the Government are providing £510 million for the shared rural network. Mobile operators will contribute an additional £532 million as part of this deal, which will extend high-quality 4G mobile coverage to 95% of the UK by 2025. We are also focused on removing the practical barriers that stand in the way of our broadband and mobile coverage targets, through our barrier busting task force. We are looking at the difficult challenges in some communities, many of which are in rural areas, to try to make a real difference on the ground. While technology is continually changing, the principles that guide the Government’s approach to banking services remain entirely consistent.”
“A final point, which has been raised, is that there is a need to improve mobile and broadband coverage in rural areas, to make the immense benefits and opportunities of online products open to all. That is why the Government remain committed to delivering UK-wide gigabit connectivity as soon as possible, with £5 billion to support roll-out in the hardest to reach areas. As the Prime Minister mentioned in his levelling-up speech last week, we have made great progress. By the end of this year, 60% of the country will have a gigabit connection. We are working with industry to target a minimum of 85% giga-capable coverage in just four years in 2025. We will seek to accelerate roll-out further to get as close to 100% as possible.”
“Rochford in Essex and Cambuslang in south Lanarkshire are benefiting from those shared branches. They are a significant innovation from the business hubs that were on offer a few years ago, and I am very pleased with the direction of travel in that area. The hubs will offer access to face-to-face community banking services provided by the banks with the most customers in each area. In addition, Hay-on-Wye’s post office is being refurbished to better support banking services, as part of the eight pilots. I look forward to learning lessons from the pilots and to the future industry models for supporting access to cash that they will help to inform.”
“Together, these measures will support the use of cash and help local businesses to continue accepting it by ensuring reasonable access to cash depositing facilities for small and medium-sized enterprises. The Post Office is also playing a key role; the Post Office banking framework allows 95% of businesses and 99% of personal banking customers to deposit cheques, check their balances and withdraw and deposit cash, across a network of 11,500 post office branches across the country. The Post Office is also required to ensure that 95% of the total UK rural population is within three miles of an outlet. I am pleased to tell hon. Members that the Post Office is trialling bank hubs as part of the eight community access to cash pilots around the country that I mentioned earlier.”
“Friend highlighted, cashback without a purchase has been trialled in Hay-on-Wye—clearly a community with a strong independent streak, from what she said—for some months under the community access to cash pilots. In addition, earlier this month we published a consultation outlining broader legislative proposals to protect access to cash. Those proposals seek to ensure that people need to travel only a reasonable distance to pay in or take out cash, and that the right regulatory oversight for cash access is in place for the future. My hon. Friend made a point about the rurality of her distinctive and distinguished constituency, with respect to its geographical size. This is obviously a matter that we must consider carefully as we move forward with these proposals.”
“Friend acknowledged, the Government are committed to legislating to protect access to cash for those who need it while ensuring that the UK’s cash infrastructure is sustainable. Clearly, the way it is funded and the way the wholesale system works has to evolve to reflect the changing usage pattern. That is why we brought new laws into effect at the end of June through the Financial Services Act 2021 to support the widespread offering of cashback without a purchase by shops and other businesses. That exciting development unlocks the potential for cashback without a purchase. It will provide a valuable facility for cash users and will play a major role in the UK’s cash infrastructure. As my hon.”
“On that last point, it is my understanding that within a short distance of the Llandrindod Wells Barclays, which my hon. Friend the Member for Brecon and Radnorshire mentioned, there are two post offices and two free ATMs. In addition, I note that Lloyds and NatWest provide fortnightly mobile bank branches throughout the constituency. My hon. Friend quite rightly highlighted the great significance of cash to constituents, and the Government recognise that we have to address that need and the ongoing importance of cash to millions of people, particularly those in vulnerable groups—often the elderly and the poorest. I am therefore glad that LINK has already said that it will protect the broad geographic spread of free-to-use ATMs. It is being held to account against those commitments by the Payment Systems Regulator. As my hon.”
“The operation of the standard is monitored and enforced by the independent Lending Standards Board, which holds banks that close branches accountable for their treatment of customers. That means monitoring to see whether they help individual customers to make the transfer to using the Post Office or other solutions. Last September, banks’ responsibilities around closures were further clarified by the Financial Conduct Authority when it published guidance setting out its expectations of firms that decide to reduce their physical branches or the number of free-to-use ATMs. Under that guidance, which seeks to ensure that customers are treated fairly, banks are expected to consider the impact of planned closures on customers’ everyday banking and cash access needs. In addition, banks should consider alternative access arrangements.”
“Indeed, one could argue that the UK’s financial services sector is among the most competitive and productive in the world precisely because it has the flexibility to respond to market changes. It is also crucial that the impact of branch closures is understood, considered and, where possible, mitigated so that all consumers across the country can continue to access over-the-counter banking services as they choose. As has been mentioned, since 2017 the major high street banks have been signed up to the access to banking standard, which commits banks to ensuring that customers are well informed about branch closures and the reasons behind them, and that customers have options for continued access to banking services, including specialist assistance for those who need more help. That is not some passive intervention.”
“Although cash represented almost a fifth of the total number of payments, this was a reduction from 56% a decade earlier in 2009, so while the longer-term impact of the pandemic on banking is not yet absolutely clear, the switch to those digital methods is likely to have been accelerated by coronavirus. Times are changing and have clearly changed, and digital technology is transforming banking just like ATMs did in the 1960s. None the less, as we have heard today, bank branches still matter a great deal to many people, and permanent branch closures can be a source of real dismay to communities across the country. Although closures can be upsetting, they are commercial matters and the Government cannot intervene.”
“From my first-hand experience growing up in rural Wiltshire, as part of a family running a very small business, I know the significance of bank branches and the central role that they have in the community. However, I also have to recognise that the world that we live in today is very different from the one of a few decades ago. Technological progress means that more consumers and businesses are opting for digital payments and banking, and last year’s figures from UK Finance show that around seven in 10 adults in this country used online banking and eight in 10 used contactless payments.”
“It is a pleasure to serve under your chairmanship this morning, Mr Gray, and I commend my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) on securing this debate and on the eloquent way in which she set out a whole range of issues concerning her constituents. I know that she has deep first-hand experience of rural affairs, given her prior role working for the National Farmers Union before she came to this place, and she spoke very clearly about the significance of bank branches for many in rural areas across Wales, England, and indeed Scotland too. I also listened very carefully to the three interventions from the hon. Members for Pontypridd (Alex Davies-Jones) and for Strangford (Jim Shannon) and my hon. Friend the Member for Aberconwy (Robin Millar), and I am keen to address those in my response.”
“I assure Members that the Treasury is working closely with the private sector—indeed, I had meetings just this morning—to ensure that we get that right, and that cash services are provided for people in an environment where the use of cash is diminishing significantly. I reiterate the acknowledgment that there is a real desire to provide urgent help to those who are dealing with significant debts. I share that strength of feeling, as I hope my track record in this role demonstrates. It is vital that these policies improve the lives of as many people as possible, so I welcome the range of speeches this afternoon and the constructive spirit that was relayed in many of them. I look forward to further collaboration to deepen and improve our interventions in this area.”
“First, it is true that buy-now, pay-later agreements can be a helpful way of managing finance, but we need to make sure that consumers are protected. As we indicated during the passage of the Financial Services Act 2021 earlier this year, we will bring buy-now, pay-later under regulation, as the Woolard review recommended. However, any future regulation must be proportionate so as not to fundamentally damage those products that are innovative and low cost. There is a distinction between smoothing lumpy expenditures and multiple, unsustainable deferred payments. We must get that right, but I recognise the urgency around it. I appreciate the positive words about our recent “access to cash” consultation.”
“Friend the Member for Barrow and Furness (Simon Fell) mentioned his involvement in a credit union. There are, I think, 411 credit unions across the country, of wide and varying expertise. We have worked closely with the Association of British Credit Unions Ltd, one of the significant trade bodies for credit unions, to develop that approach. While legislation will play an important part in widening access to affordable credit, innovation is also key, as some Members picked up on. That is why, in this year’s Budget, we announced a number of actions in response to the independent Ron Kalifa review into FinTech, including measures to make it easier for firms to attract staff and develop new concepts. I will make a final point on two other issues that I know are of real interest to contributors this afternoon.”
“We hope to follow that model and develop a scheme that is sustainable and properly supports vulnerable customers. I hear the urgency around that, and indeed I spoke to my officials just yesterday about securing an update on it in the coming days. Our next step is to appoint a delivery organisation with suitable expertise. Further details will be announced soon. My hon. Friend is also correct to point out that greater market diversity is critical if we are to achieve our goals in this area. That is why we have used a significant part of the £96 million dormant assets scheme—money that would otherwise have remained idle—to boost financial inclusion. We have also committed to legislate to enable credit unions in Great Britain to offer a wider range of products and services; my hon.”
“Income that could be spent on essential items, such as cookers or washing machines, or that could build savings, should not be swallowed up by sky-high interest rates. Fair and affordable credit should be available to all those who need it. I will turn to our work in this area. As has been highlighted, at the Budget we announced plans to provide up to £3.8 million to work on a pilot for no-interest loan schemes. I care passionately about this area, and I think it could make a real difference to many vulnerable people’s lives. I note my hon. Friend’s comments about a cut and paste from Australia. He is right that we can learn a lot from the equivalent Australian scheme, especially in terms of partnership. Their scheme has been so successful because hundreds of socially minded organisations have played their part alongside the Government.”
“However, we should also recognise that greater flexibility is built into the system for those experiencing mental health crises, reflecting the nature of the treatment and the challenges that might arise in supporting those clients. We will use a similar model of respite from bills and demands for our statutory debt repayment plan, which is currently being developed to work alongside the Breathing Space scheme. Under the plan, people struggling with problem debt will enter into formal agreements with creditors to repay their debts over a more manageable timeframe. Our aim is to lay legislation at the end of next year and introduce the scheme thereafter in 2024. As my hon. Friend the Member for Blackpool North and Cleveleys so aptly put it, debt should not mean destitution.”
“We will in due course launch a call for evidence to help us gain a deeper understanding of the situation. I want to talk about Breathing Space. The steps we have taken are significant, because we recognise that the barrage of letters, calls and bills can be overwhelming, leaving borrowers unable to tackle what they owe. We launched the Breathing Space scheme on 4 May, just two months ago, whereby lenders agree to hold off fees and payment requests for 60 days. That relieves the pressures on borrowers and gives them time to tackle their finances with the support of a qualified debt adviser. I will address the point, made by several Members, about whether 60 days is long enough. We believe that that period finds the right balance between debt advice, clients’ interests and their creditors’ rights. It has only been there for two months.”
“The Money and Pensions Service budget also includes funding for the administration of debt relief orders. A number of colleagues have raised that this afternoon. We know that DROs can be an important solution for some, which is why we worked closely with the Insolvency Service to raise the monetary eligibility limits for DROs from the end of last month, a step that will help more people take advantage of this valuable option. I recognise that some Members would like the Government to review the £90 DRO fee, as the Woolard review recommended earlier this year. I acknowledge those concerns but the Government believe that further changes to DROs should not be considered in isolation. A number of Members have made the point that we need joined-up solutions, so we will undertake a wider consultation on the personal insolvency framework.”
“As has been highlighted today, we are maintaining record levels of funding for free debt advice in England through the Money and Pensions Service this year, with a budget of £96.4 million. I recognise that there is still some uncertainty about the nature of that demand as people’s situations become clearer, but that includes funding for the Money Adviser Network pilots, which simplify access to debt advice. I am pleased to say that more than 40 different creditor organisations are now signed up, including HM Revenue and Customs. I recognise hon. Members’ concerns about the complexity of tax debts, but consumers referred via the network will first have a conversation with an HMRC adviser, which should minimise the risk of misunderstanding over what is owed.”
“With the furlough scheme, the self-employment income support schemes and substantial welfare support, including the £20 universal credit uplift, a suspension of the universal credit minimum floor and an increase to local housing allowance rates, the Government have sought to make a range of interventions across society. I believe that that plan is working. We also recognise that even when the economy bounces back, and there are very encouraging signs in that direction, there will still be people living in fear of a knock from a debt collector or another payment demand. That is why we have introduced the numerous policies that have been mentioned this afternoon. I would like to respond to Members’ points about the policies that we have introduced to help people escape debt.”
“Our thinking may diverge in some areas, but I believe that there is a great degree of commonality between us. We have a shared desire to tackle problem debt and a shared understanding that this complex issue cannot be wished away with quick fixes, much as we might like it to be. We also have a shared recognition that we must tackle this issue strategically. As a number of Members highlighted this afternoon, the covid-19 pandemic has meant that action in this area is required now more than ever before. The Government have responded to the crisis with one of the most comprehensive economic plans in the world. I reject the assertion that that somehow means that there is a degree of complacency: that is not the case.”
“It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate the hon. Member for Makerfield (Yvonne Fovargue) and my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard) on securing this debate. I know that both Members care a great deal about the question of how best to protect the personal finances of the most vulnerable. They have made many valuable contributions in Parliament on this matter, including through the hon. Lady’s role as chair of the all-party parliamentary group on debt and personal finance and my hon. Friend’s Local Welfare Assistance Provision (Review) Bill, which has been mentioned today. I thank all Members who have contributed this afternoon for their deeply thoughtful and considered speeches, especially my hon. Friend the Member for South West Bedfordshire (Andrew Selous).”
“For example, the FPC currently recommends that the PRA excludes central bank reserves from banks’ exposures for leverage purposes, to ensure that macro-prudential policy does not impede the smooth transition of monetary policy. Under this SI it would instead be able to direct the PRA to make such an exclusion. The Treasury has worked closely with the Bank of England to prepare this instrument. In accordance with our statutory obligations, officials have consulted the FPC, which agreed with the approach being taken. We have also engaged with the financial services industry on the contents of the SI. In conclusion, the SI is necessary to ensure that the FPC’s existing macro-prudential tools continue to operate effectively given changes that have been made to the wider prudential regime since they were first introduced.”
“In addition, the Government have stated their intention to move the detail of the leverage ratio framework exclusively into rules made by the PRA using powers introduced by the Financial Services Act 2021. The leverage ratio is intended to be a broadly risk-insensitive measure of a bank or investment firm’s level of leverage and seeks to provide an important complement to the risk-based capital regime. This instrument, therefore, amends the FPC’s powers of direction over the leverage ratio so that the method for measuring a bank’s exposures when calculating the leverage ratio is defined by reference to rules made by the PRA. This method will be subject to any specifications made by the FPC when it issues a direction in relation to leverage.”