Interest Rates
October 2023
Control over monetary policy, including decisions on interest rates, is the remit of the Bank of England. It is right that the Bank of England is independent, and I know that the Governor and his team will take decisive action to get inflation back on target and ensure that inflation expectations remain firmly anchored. I appreciate concerns about the Bank of England raising interest rates, which is clearly hard for mortgage borrowers. The Government remains committed to monetary policy independence and rightly does not comment on the conduct or effectiveness of monetary policy.
Triple Lock
September 2023
The Government is fully committed to ensuring that older people can live with the dignity and respect they deserve, and the State Pension is the foundation of state support for older people. As the Prime Minister said on the 13 September, this is the Government who introduced and remain committed to the Triple Lock.
As happens each year, the Secretary of State for Work and Pensions is required by law to undertake an annual review of benefits and the State Pension. The outcome of that review will be announced in the Autumn, following the publication of the relevant indices by the Office for National Statistics in October, and the new rates will take effect from April 2024.
In April, the State Pension saw its biggest ever rise, increasing by 10.1 per cent. The full yearly amount of the basic State Pension will be over £3,050 higher, in cash terms, than in 2010. That’s £790 more than if it had been uprated by Prices, and £945 more than if it had been uprated by earnings (since 2010). As a result of the Conservative triple lock, pensioner poverty in the UK has dropped dramatically.
The Government also provides additional support to older people, which includes the provision of free bus passes, free prescriptions, and Winter Fuel Payments, with Cold Weather Payments for those in receipt of Pension Credit.
Defence Spending
July 2023
The Government is committed to retaining strong defence. The UK has the second largest defence budget in NATO and the largest in the Europe. Additionally, the Multi-Year Settlement for defence, announced by the Prime Minister during his tenure as Chancellor in 2020 and totalling an extra £24.1 billion in cash terms over the subsequent four years, exceeds the UK’s NATO pledge and represents the biggest increase to UK defence spending since the Cold War. This investment is funding a generational modernisation of our Armed Forces, as prioritised in the Integrated Review.
Most recently, the Chancellor announced in the Spring Budget that this Government will invest an extra £5 billion in defence and national security over the next two years, improving our resilience and readiness of our defences. This will bring the total spend to £11 billion by 2028. In addition to this, the Government will be investing £3 billion across the defence nuclear enterprise, allowing us to grow our nuclear skills programme and support the delivery of AUKUS.
Evidenced in our record investment in 2020 and our unwavering support to Ukraine, the UK recognises the vital importance of defence. In line with this, the Spring Statement reconfirms the Government's commitment that defence spending will not fall below two per cent of GDP. In fact, the Chancellor confirmed in the Spring Statement that defence spending will rise to nearly 2.25 per cent of GDP by 2025. The UK has also committed to reinforce NATO’s New Force Model through our world-leading capabilities in land, air and sea, including almost all our maritime forces, extra Fighter and Bomber Air Squadrons and increasing the number of Land Brigade-sized units.
As well as keeping us safe, the UK’s defence budget creates and sustains 390,000 UK jobs, including through nearly £20 billion of investment in UK industries every year. Indeed, one in every 130 UK jobs are created by our defence budget, most of which are high-paying, skilled jobs with an average salary of £45,000. The UK's proud record on defence has also built a thriving export industry, which delivers an average of £3.75 billion worth of equipment around the world, helping to keep our allies safe. I am encouraged that the UK continues to have competitive, innovative and world-class defence and security industries, ensured by the Defence and Security Industry Strategy launched in 2021.
Fuel Poverty
July 2023
I appreciate the concerns you have raised, let me assure you that the Government is continuing to work tirelessly to support households with their energy bills and ensuring the UK’s transition to net zero. The Government recognises the concerns over consumer energy bills. Throughout the Winter the Government gave significant amounts of financial support to support households, with the Government paying half the energy bills of most British households.
Support included a £400 grant for energy bills for all which gave households a monthly discount on their electricity bills between October 2022 and March 2023. Further, a non-repayable £150 cash rebate was provided for homes in Council Tax bands A-D, equivalent to 80 per cent of all households and £144 million of discretionary funding for local authorities to support those not eligible for the council tax rebate. This means that hard working families received £550 with lower income families receiving even more help. This year the Government is providing three tranches of payments totalling £900 to each of 8 million households on means-tested benefits.
Furthermore, although energy prices are currently below the level at which Energy Price Guarantee (EPG) payments would be made, the EPG will remain in force until the end of March 2024 to protect households from price spikes, putting in place a safety net for households up and down the country.
However, the Government recognises there is still more to be done to support households and further support our transition to net-zero. Furthermore, UK levy funded support for renewable power since 2010 has totalled around £80 billion. In the Spring Budget, the Chancellor also announced an unprecedented £20 billion investment in the early development of Carbon Capture, Utilisation and Storage (CCUS), to help meet the Government’s climate commitments.
The Government does not give any subsidies to fossil fuels, and follows the approach of the International Energy Agency, which defines fossil fuel subsidies as measures that reduce the effective price of fossil fuels below world market prices. The Government has further committed to phasing out global fossil fuel subsidies, and to further changing the way oil and gas is licensed in the UK. The Powering Up Britain plan has further reaffirmed the Government’s commitment to phase out fossil fuels. It will reduce the reliance on imported fossil fuels, while boosting home grown renewable energy. To achieve this the Government will continue to support the energy sector to move away from expensive and dirty fossil fuels. However, I am sure you can understand that we cannot simply pull the plug on all fossil fuels overnight without this having a huge consequences all over Europe. However, the Government is going to make better use of the oil and gas in the UK by giving the energy fields of the North Sea a new lease of life. You may also welcome that between 1990 and 2019 the UK decarbonised faster than any other country in the G7.
To ensure that energy companies pay their fair share, the Chancellor increased the energy profits levy from 25 to 35 per cent in the Autumn Statement and will apply until 2028 even if energy prices fall. With over £39.9 billion raised from windfall taxes in the medium term. The Government believes that the current rate is balanced and fair and will not deter investment.
Ensuring that homes are heat efficient is vital. The Government is investing £6.6 billion over this Parliament on clean heat and improving energy efficiency in buildings, reducing our reliance on fossil fuel heating. In addition, £6 billion of new Government funding will be made available from 2025 to 2028.
Procurement Bill
July 2023
Following a review of security risks, the Government has already instructed departments to cease the deployment of surveillance equipment on sensitive sites, where it is produced by companies that are subject to the National Intelligence Law of the People’s Republic of China. Further details of this can be found in the Written Ministerial Statement laid last year by the Chancellor of the Duchy of Lancaster on 24 November 2022.
I understand your disappointment about the Government’s decision to not to include the requirement for a timetable to be set for the removal of Chinese-made security cameras with potential links. However, I have been assured that implementation of this instruction is already underway.
It is for this reason that I believe that this Bill sufficiently addresses your concerns and I, therefore, will not be supporting amendment New Clause 1. More broadly, you may be interested to know that the Procurement Bill contains a robust and comprehensive framework of exclusion grounds, including new grounds on both modern slavery and national security, together with ground-breaking provisions for a centralised debarment list. This will ensure that suppliers and subcontractors which are involved in forced labour, or which pose an unacceptable security risk, are prevented from competing for public contracts.
I hope this has reassured you that the Government is actively reviewing the use of surveillance equipment that is produced by companies subject to the National Intelligence Law of the People’s Republic of China, and is ready to take further steps if necessary.
Abolition of Leasehold
July 2023
Leasehold is essentially the relic of a feudal system, and should be phased out over time.
The Government has made clear its commitment to bring forward reforms to leasehold and to doing so within this Parliament. Please be assured that the Government remains determined in its promise to better protect and empower leaseholders to challenge unreasonable costs and make it easier and cheaper for them to extend their lease or buy their freehold. Last year, the Government passed the Leasehold Reform (Ground Rent) Act which limits the charging of ground rent in new leases. I have been assured the Government will press ahead with making it easier for leaseholders to take control of their building management by enhancing the Right to Manage. Ministers have also committed to end the sale of new leasehold houses, to reinvigorate commonhold so it can finally be a genuine alternative to leasehold.
I would like to assure you that the Government is committed to spreading the benefits of freehold ownership and establishing commonhold for owners of flats. Already, the Commonhold Council - a partnership of industry, leaseholders and Government – has been set up to help prepare consumers and the market for the widespread take-up of commonhold. The Government also asked the Law Commission to make recommendations on how to invigorate the legal framework for commonhold. I understand that the proposals made by the Law Commission are being reviewed in detail by the Government.
Inflation
July 2023
Inflation is a multifaceted phenomenon. There is not one single cause but a large unfunded increase in public sector wages would inevitably have an inflationary impact. The Government of the Bank of England was clear about this when I grilled him on it in the Treasury Select Committee.
Our economy was effectively shut down for nearly two years and the Government spent unprecedented amounts supporting people through the pandemic. The war in Ukraine compounded the situation. Ukraine is one of the world’s most fertile agricultural regions and any conflict there will have an inflationary impact upon the price of food globally. Indeed, the Earl of Aberdeen’s Government faced a remarkably similar demands at the time of the Crimean War in the 1850s. Similarly, the effective ejection of Russia from the European economy would inevitably drive up the price of energy.
Other supply side issues continue to impact globally. One of the key features of the post-cold war global economy was a relatively benign geopolitical atmosphere. In recent years we have seen greater political tension between large economies such as China and the USA which has had a direct and indirect impact on global trade particularly in the post-pandemic era. We have seen direct tariff wars and we have seen private companies engage in greater supply chain diversification – in some cases prioritising security rather than cost.
We do have some domestic issues that are contributing. Labour force participation is down. Although, given the high level of immigration in 2022, it is clear that a return to freedom of movement would not be a golden bullet to this problem. If anything, it shows that we should be more, not less, discerning about those coming to this country to ensure that we prioritise professions and industries that are in greatest need of additional workers.
The stimuli injected into the economy in response to the pandemic and high energy prices are driving demand. It is worth noting that this support was deemed insufficient by opposition parties. The Bank of England has perhaps been too slow in raising interest rates – but the BoE is independent of the Government and has been since 1997.
Whilst I have not had the time to study the source you cite in detail, the Prime Minister’s point was not that public sector pay rises across the board was the cause of inflation but that they would contribute to inflation. As I said, this is a view shared by the Governor of the Bank of England. The pay rises demanded by unions would necessitate greater borrowing and instigate more demand in the economy without addressing any of the supply side issues that are also contributing to inflation.
Banking Cancellation
June 2023
A bank account is essential to operate in modern society. It is also clearly unacceptable for a bank to close an account because of someone’s political opinions. Banks also need to do far more to communicate the reasons for closing an account to customers. Except in very specific circumstances, it is not acceptable for a bank to close an account down without explanation.
I have urged ministers and the banking industry to prevent politically motivated closures. The Treasury has asked the Financial Conduct Authority to do an urgent review into the matter, with a view to ensuring no bank can close an account because of someone’s opinions.
If banks attempt to operate as moral arbiters, then it will have a particularly negative impact on free speech in this country. The Government should establish conditions and protections for customers in these situations including long notice periods and the right of appeal.
Interest Rates
June 2023
Control over monetary policy, including decisions on interest rates, is the remit of the Bank of England. Since control of monetary policy was transferred from Government to the Bank of England 25 years ago, inflation has averaged precisely 2 per cent. It is right that the Bank of England is independent, and I know that the Governor and his team will take decisive action to get inflation back on target and ensure that inflation expectations remain firmly anchored.
At its meeting ending on 21 June 2023, the Monetary Policy Committee voted by a majority of 7–2 to increase Bank Rate by 0.5 percentage points, to 5 per cent. The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2 per cent inflation target, and in a way that helps to sustain growth and employment.
Whilst it is to be expected that retail interest rates rise when the Bank of England increases its rates, I am concerned about reports of interest rates rising to levels significantly higher than the bank rate. I have spoken with colleagues at the Treasury to convey the strength of feeling on this issue, and they have assured me that they are working with partners such as the Financial Conduct Authority to ensure consumers are properly protected.
New and Old State Pension
June 2023
It is not possible to make like-for-like comparisons between the new State Pension (NSP) and the old basic State Pension (BSP). Although the NSP is set at a higher rate than the BSP, this is because it incorporates both the BSP and additional State Pension.
Although the new and old systems are different, they both reflect the National Insurance contributions an individual has made. The State Pension reforms were designed to be cost-neutral, meaning that some people get slightly more than under the previous system but some slightly less.
Factors that could lead to a lower entitlement under the new system included the introduction of a minimum qualifying period and the ending of rules allowing individuals to derive entitlement based on a (former) spouse or civil partner’s contributions.
Factors that could lead to a higher entitlement included having built up a low entitlement to the additional State Pension under the old system (for example, if you had caring responsibilities before 2002 or were self-employed) or having been contracted out (if you are able to build up more qualifying years after April 2016).
Where people are gainers under the new system, their gains are relatively modest – around £8 per week (2014/15 earnings terms) for the 650,000 women reaching State Pension age in the ten years after the introduction of the NSP. Both the basic State Pension and new State Pension were increased by 10.1 per cent from April 2023, in line with inflation. This is the biggest cash increase in the State Pension ever.
Mortgage Tax Relief
June 2023
Landlords are able to claim tax relief on finance costs (including mortgage interest payments) for their rental property at the basic rate of income tax. Residential landlords also continue to be able to claim relief at their marginal rate of income tax on the day-to-day costs incurred in letting out a property, such as letting agent fees and replacing furniture.
The reforms mean that all landlords will now receive the same rate of relief. It also reduces the disparity in income tax treatment between homeowners and landlords. To make adjustments as smooth as possible, this change was announced almost two years before its implementation. The restriction, introduced in April 2017, was phased in over four years to give landlords time to adjust to the changes.
It has been estimated that only 1 in 10 landlords are affected by this change. The Private Rented Sector remains an important part of the housing market. I am always keen to hear the concerns of my constituents and I take note of the points you have raised with me about the impact of mortgage interest relief. I am not aware of any plans at present to review mortgage interest relief although I am assured that the Government keeps all taxes under review. I will ensure my colleagues at the Treasury are aware of the strength of feeling on this issue.
No Fault Evictions
June 2023
I am confident that the Renters (Reform) Bill will help create a fairer rental market in England. The legislation will see tenants protected from revenge evictions and rogue landlords, and landlords given greater powers to evict anti-social tenants. The Bill will abolish Section 21 'no fault' evictions, which I recognise can deter tenants from challenging poor practice or unfair rent increases in fear they will be forced out of their home. To do this, the legislation will create a fairer tenancy structure where all assured tenancies will become periodic. I believe that this will create more security for tenants, without compromising the flexibility which attracts many to the private rented sector. The Bill will also introduce more comprehensive possession grounds so landlords can still recover their property, including where they wish to sell their property or move in close family. The reforms will make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour and repeat rent arrears.
These changes come in addition to new powers to create a Privately Rented Sector Ombudsman which will provide fair, impartial and binding resolutions to many issues in the sector. I recognise that this will provide a quicker and cheaper alternative to the court system. The Government will also set up a Private Rented Property Portal. The portal will help landlords understand their legal obligations and demonstrate regulatory compliance, providing assurance to responsible landlords and helping them to attract prospective tenants. The portal will also help councils to target enforcement activity where it is needed most. I believe that these reforms will benefit both tenants and landlords, and I look forward to discussing this legislation in more detail as it makes its way through Parliament.
Rent Reforms
June 2023
Let me start by saying that I very much appreciate the role residential landlords play in providing homes to the in excess of four million households in the private rented sector. I also recognise the difficulties which can arise when tenants withhold rent. Through the Renters (Reform) Bill, the Government will introduce more comprehensive possession grounds to ensure landlords can recover their property where they have a valid cause, such as wishing to sell or wanting to move in close family. The reforms will also make it easier to repossess properties where tenants are at fault, for example in cases of anti-social behaviour and repeat rent arrears. The Bill expands the discretionary eviction ground for anti-social behaviour to clarify that any behaviour ‘capable’ of causing ‘nuisance or annoyance’ can lead to eviction.
Under new plans eviction would be mandatory where a tenant has been in at least two months’ rent arrears three times within the previous three years, regardless of the arrears balance at hearing. This proposal is designed to support landlords facing undue burdens, while ensuring that tenants are not evicted due to one-off financial shocks. More widely, under plans to reform the private rented sector, the court process would be reformed to address areas that hold up possession proceedings. I understand that this would include strengthening mediation services to help resolve disputes between landlords and renters and prevent avoidable evictions.
Landlords are able to claim tax relief on finance costs (including mortgage interest payments) for their rental property at the basic rate of income tax. Residential landlords also continue to be able to claim relief at their marginal rate of income tax on the day-to-day costs incurred in letting out a property, such as letting agent fees and replacing furniture. From 2017, the Government phased in a set of reforms to restrict finance cost relief to the equivalent of the basic rate of income tax. The stated aim was to ensure fairness in the income tax system, as previously higher rate taxpayers received a more generous tax relief than those on lower incomes. To make adjustments as smooth as possible, this change was announced almost two years before its implementation. The restriction, introduced in April 2017, was phased in over four years to give landlords time to adjust to the changes. The CGT Annual Exempt Amount will be reduced from £12,300 to £6,000 from April 2023 and to £3,000 from April 2024. The Chancellor has been clear that to tackle the economic challenge facing the UK, we need to take tough but fair decisions to restore economic stability and repair the public finances.
I do believe it is time to abolish stamp duty on residential property. Stamp duty quashes the housing market, and reduces labour mobility. It is a transaction tax and it inescapably reduces the number of transactions.
Proportional Property Tax
June 2023
Council tax is a local charge for the use of local services. The current banding system reflects that larger homes make slightly greater use of local services, but intentionally, it is not a poll tax nor a wealth tax.
For the past decade, the Government has ensured that local taxpayers are able to veto excessive council tax increases in a local referendum. In 2023-24, the Government has put in place a new one-off funding guarantee to ensure that all local authorities will see a minimum three per cent increase in their Core Spending Power before taking any local decisions on council tax levels. More widely, I realise that many people may be facing financial worries, which is why every council is required to have a council tax support scheme in place. The Government is providing local authorities with their share of a £100 million Council Tax Support Fund to allow them to deliver additional support to households in need.
I would note under the proposals by this lobbying group, many hard-working families and pensioners would see soaring bills, both within local authorities and across the country. In particular:
-
Asset rich but income poor people, such as pensioners whose homes have increased in value in recent decades, would be taxed out of their houses, or have to incur massive debts.
-
The existing single person discount would be abolished, hitting widows and widowers the hardest. Such a house price tax fails to take into account that single person homes make reduced use of local services.
-
Annual revaluations would mean home improvements would be taxed, punishing people for doing up their home. Under the council tax system, material improvements are only taken into account when the home is sold.
-
There would be no limit on the increase in taxes. When house prices rise, so would taxes, even if people’s incomes haven’t increased.
I have written various comment pieces explaining in depth why the campaign for the Proportionate Property Tax are misguided. I have not changed my mind.
Wealth Tax
June 2023
The UK does not have a comprehensive, single wealth tax, but it does have several taxes on assets and wealth, including capital gains tax and inheritance tax. These taxes operate across many different economic activities, including the acquisition, holding, transfer and disposal of assets, and income derived from assets. The UK’s taxes on wealth are broadly equivalent to those of other G7 countries.
The UK’s progressive income tax system means the top 1 per cent of income taxpayers are projected to have paid over 29 per cent of all Income Tax, and top 5 per cent are projected to have paid over 50 per cent, in 2019-20, the most recent year for which data is available. That has increased dramatically in recent decades, as increasingly tax is focussed on the wealthy. However, there are clearly limits to how far it is possible to go in that direction.
The Treasury Select Committee (on which I sit) investigated wealth taxes, and it was eye opening that pretty much every country that has introduced a wealth tax similar to the one you propose has ended up abandoning it because it just causes wealth to leave the country and does not raise that much money. As a result, the number of countries with wealth taxes is falling. Both Labour and Conservative members of the Committee recommended that we should not introduce a wealth tax in the UK.
For all these reasons, I do not support the introduction of a specific wealth tax.
Semiconductors
May 2023
The Government is committed to the semiconductor sector and the vital role it plays in the UK’s economy. The UK is world-leading in science and in the design of semiconductors and stands in good stead to become a dominant designer and manufacturer of compound semiconductor chips and technologies.
Semiconductors underpin almost every major industry of the 21st century and are critical to our economic and national security. I therefore welcome the fact that the UK is home to the world’s first compound semiconductor cluster, launched in 2015 and is based in Wales. The success of this ground-breaking initiative has been built through sustained, long-term investment. CSconnected firms are supporting local suppliers and household incomes within the UK, and over 90 per cent of sales in 2020 related to overseas exports, mostly destined for markets outside of the EU. I hope this can reassure you of the Government’s continuous capabilities in this sector after leaving the EU.
Moreover, the Government published its Digital Strategy in 2022 which seeks to stimulate innovation through research and development (R&D) while growing the UK’s expertise in technologies of the future, including artificial intelligence, semiconductors and quantum computing. I also understand a Semiconductor Strategy will also be published in due course which will look at our international and domestic approach to this important sector.
Long Live the Local
May 2023
I am a massive supporter of and frequent patron of local pubs which are often the cornerstones of their communities. When I grew up in the village of Fowlmere there were four pubs, but now there is only one survivor – a real travesty.
Duty rates of all alcoholic products produced in, or imported into, the UK will increase in line with RPI. However, Draught Relief will increase from 5 per cent to 9.2 per cent for beer and cider draught products and from 20 per cent to 23 per cent for wine, spirits based and other fermented draught products – the aim of this is to help local pubs. These changes will take effect from 1 August 2023. HMRC will also take forward plans to harmonise the approval, return and payment processes for domestic producers of alcoholic products. These changes are scheduled to take effect from late 2024 with the introduction of the new digital system.
I welcome the Government’s commitment to supporting pubs through increasing Draught Relief from 1 August as announced in the Budget. This will freeze the duty charged on a typical pint of beer in the pub and ensure this will always be lower than in the supermarket. From 1 April 2023, business rate bills in England will be updated to reflect changes in property values since the last revaluation in 2017. A package of targeted support worth £13.6 billion over the next five years will support businesses as they transition to their new bills, protect businesses from the full impact of inflation, and support our high streets. English Local Authorities will be fully compensated for the loss of income as a result of these business rates measures and will receive new burdens funding for administrative and IT costs.
The Government is publishing a summary of responses to the Business Rates Review technical consultation, which closed in February 2022. This reconfirms the Government’s commitment to the Non-Domestic Rating reform package and sets out further detail on how this will be delivered in response to stakeholder feedback. With regard to your suggestion on VAT, the Government keeps all taxes under review and careful consideration will be given to any proposed amendments to our tax regime. I do agree that pubs are an integral part of our local communities, and we need to do our utmost to ensure their success. I will certainly continue to press the importance of supporting our pubs to Government Ministers.
Strikes (Minimum Service Levels) Bill
May 2023
Trade union laws are designed to support an effective and collaborative approach to resolving industrial disputes. While the Government and I continue to support the right to strike, this should always be a last resort. The Government is consulting on the application of minimum service levels for rail, ambulance and fire services. It is seeking contributions of key stakeholders and experts during the consultation process. The Government will also engage with the devolved Administrations during the consultation process. The Government have been clear, however, that it may choose not to use the regulation-making powers in the Bill if adequate voluntary arrangements, where necessary, are already in place between employers in a relevant sector. The rights of some workers to strike must be balanced against the rights of the wider public to get on with their daily lives. Strikes can, and do, cause significant disruption. That is particularly the case when they take place in important public services such as transport or education. It cannot be right that trade unions can, as we saw in the case of the recent rail strikes, seek to hold the country to ransom if their demands are not met.
The Government also has a duty to the public to ensure their safety, protect their access to vital public services, and help them go about their daily lives. Therefore, it has introduced the Strikes (Minimum Service Levels) Bill for vital public services including health, education, fire and rescue, transport, nuclear decommissioning, and border security to maintain critical and in many cases life-saving services. Consultations are currently being held on Minimum Service Levels (MSLs) for ambulances, fire, and rail. While the Bill contains provisions for other parts of the NHS, education, nuclear decommissioning, and border security, it is hoped that voluntary agreements will continue to be sufficient.
This new legislation will allow the Government, NHS, the public and other services to plan properly for the running of services in times of strike – and ensure that striking workers are not inadvertently putting the public at risk. This package of measures will see the UK align with many countries across the world such as France and Spain that already have minimum service agreements in place, to prevent large swathes of their economies being ground to a halt by industrial action.
Business and Human Rights
April 2023
The IMF’s report also stated that Britain was the country in the OECD with the highest growth in 2022. In recent times, economic forecasts have been revised in light of Mr Hunt and Mr Sunak’s work on steadying the economy. I fully accept that we live in difficult times and that they are very challenging for people around the country. The Government recognises this also and that is why it has introduced specific policies to provide support for those struggling in the country. In total, it has given over £90bn of support for cost of living, averaging over £3000 per household. I am confident that Mr Hunt and Mr Sunak’s effective management of the economy will help us weather the aftershocks of Covid and the continued impact of Putin’s invasion of the economy.
A strong economy is the first necessity for successful public services. That is why the Government has to be sensible with public finances. Trade union laws are designed to support an effective and collaborative approach to resolving industrial disputes. While the Government and I continue to support the right to strike, this should always be a last resort. As you may be aware, the Government is not responsible for decisions on pay. A Well-established independent pay review process is the right way to set public sector pay – it provides independent, expert advice and is a neutral process in which all parties play a role. That said, the Government recognises the particular economic challenges the country faces this year. A balance must be struck between giving workers a fair and reasonable settlement and taking steps to continue to bring down inflation and protect households’ budgets. In this time of economic difficulties, inflation-matching pay awards that many of the unions are demanding will make the fight against inflation more challenging, risking interest rates, mortgage payments and bills rising for people as a result. This would erode the value of any pay increase for public sector workers and hurt households across the country.
Public Sector Pay
April 2023
The IMF’s report also stated that Britain was the country in the OECD with the highest growth in 2022. In recent times, economic forecasts have been revised in light of Mr Hunt and Mr Sunak’s work on steadying the economy. I fully accept that we live in difficult times and that they are very challenging for people around the country. The Government recognises this also and that is why it has introduced specific policies to provide support for those struggling in the country. In total, it has given over £90bn of support for cost of living, averaging over £3000 per household. I am confident that Mr Hunt and Mr Sunak’s effective management of the economy will help us weather the aftershocks of Covid and the continued impact of Putin’s invasion of the economy.
A strong economy is the first necessity for successful public services. That is why the Government has to be sensible with public finances. Trade union laws are designed to support an effective and collaborative approach to resolving industrial disputes. While the Government and I continue to support the right to strike, this should always be a last resort. As you may be aware, the Government is not responsible for decisions on pay. A Well-established independent pay review process is the right way to set public sector pay – it provides independent, expert advice and is a neutral process in which all parties play a role. That said, the Government recognises the particular economic challenges the country faces this year. A balance must be struck between giving workers a fair and reasonable settlement and taking steps to continue to bring down inflation and protect households’ budgets. In this time of economic difficulties, inflation-matching pay awards that many of the unions are demanding will make the fight against inflation more challenging, risking interest rates, mortgage payments and bills rising for people as a result. This would erode the value of any pay increase for public sector workers and hurt households across the country.
CPTPP
April 2023
The Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). includes major countries such as Japan, Canada, Australia, Singapore and New Zealand, as well as emerging markets such as Mexico, Malaysia and Vietnam. The UK’s membership of the CPTPP will add another like-minded partner and strong voice to this powerful alliance, taking the trade bloc’s GDP to £11 trillion. It will give UK businesses tariff-free access on over 99 per cent of goods to a market of around 500 million customers. The Partnership will also provide new opportunities for tech, data and the services sector supporting businesses and jobs across the UK. It is not just about GDP – but about us forming a stronger partnership with these growing economies.
Bank Savings and Loan Rates
April 2023
I share concerns about the discrepancy between the speed at which borrowing rates increase and the delay in corresponding increases in savings rates. That is why I pushed for the main bank CEOs to be summoned in front of the Treasury Select Committee and grilled on this exact issue – there was widespread media coverage. We have also pressed the FCA on the issue.
It is clearly unacceptable for banks to profiteer in this manner. An effective market in any industry relies on the ability of consumers to make informed choices as to the product that best suits them. Indeed, the economic difficulties that have seen interest rates rise naturally mean consumers are more cautious when making decisions about moving their money about that. The banking industry is also different to others in that it is much more difficult and time consuming to shop around.
I have long argued for a more competitive banking industry that better serves consumers and I have made the case to the FCA that more must be done to ensure customers get a fair deal in light of the increase in the base rate.
Data Protection and Digital Information Bill
March 2023
I note concerns about the Government’s plans to reform the UK’s regulatory landscape around data, especially with regards to privacy and Article 22 of the GDPR. I must, however, stress that the proposals will help ensure the UK is agile enough to take advantage of all the opportunities presented by data and emerging technologies, while maintaining strong protections for our personal data.
Now that the UK has left the EU, there is opportunity to simplify the clunky parts of our data protection laws and create a world class data rights framework that will allow us to realise the benefits of data use while maintaining high data protection standards. Data is fundamental to fuelling economic growth in all areas of society from unlocking medical breakthroughs to helping people travel, manage their finances and shop online. It is vital to the development and use of innovative technologies such as artificial intelligence.
The Government consulted on an ambitious package of reforms to create a new regime that is pro-growth and trusted for UK citizens and businesses. The Data Protection and Digital Information Bill was first introduced in 2022 but paused so Ministers could engage in a co-design process with business leaders and data experts – ensuring that the new regime built on the UK’s high standards for data protection and privacy, and seeks to ensure data adequacy while moving away from the ‘one-size-fits-all’ approach of European Union’s GDPR.
The new rules will give organisations more clarity about when they can process personal data without needing consent or weighing up their own interests in processing the data against an individual’s rights for certain public interest activities. This could include circumstances where there is a public interest in sharing personal data to prevent crime, safeguard national security or protect vulnerable individuals.
Alongside these new changes, the Bill will increase fines for nuisance calls and texts to be up to four per cent of global turnover or £17.5 million, whichever is greater, and aims to reduce the number of consent pop-ups people see online, which allow websites to collect data about an individual’s visit.
The Government's reforms are expected to unlock £4.7 billion in savings for the UK economy over the next 10 years and maintain the UK’s internationally renowned data protection standards so businesses can continue to trade freely with global partners, including the EU.
Support for Pubs
February 2023
On 19 December, the Government announced that Alcohol Duty rates will be frozen by a further six months from February, until August 2023. Any changes to the rates will be announced as part of the Chancellor's budget statement on 15 March 2023. If any changes are announced at the Budget, they will take take effect from 1 August 2023. This has been done to align any changes to duty rates with the implementation dates for the alcohol duty system. The simplification of the duty system, which will take effect from 1 August 2023, will reduce the number of main rates from 15 to 6, and tax products in proportion to their alcohol content.
From 1 April 2023, business rate bills in England will be updated to reflect changes in property values since the last revaluation in 2017. A package of targeted support worth £13.6 billion over the next five years will support businesses as they transition to their new bills, protect businesses from the full impact of inflation, and support our high streets.
Any decision to modify our tax regime is a matter for the Treasury and careful consideration will be given to any proposed amendments to current VAT rates. I understand that the Government keeps all taxes under review, including VAT. I shall be following any developments on this issue closely, and I will ensure my colleagues at the Treasury are aware of the strength of feeling on this issue.
Economic Performance
February 2023
Ultimately our economy does not exist in isolation from the rest of the world. There has been an unprecedented perfect storm of challenging economic circumstances in recent years. Covid was the first pandemic in almost a century. It was also the first pandemic since the inception of the NHS and the modern welfare state. The impact in our own country was sizeable and required extraordinary levels of borrowing. Such borrowing would simply not have been feasible without the careful economic management of the preceding decade. Secondly, countries around the world have emerged from the pandemic at different stages. China’s zero covid policy, for example, has had an enormous impact upon the global economy. China’s economy is roughly 18% of global GDP. China is the UK’s seventh largest trading partner. The impact of the Chinese economy being effectively shut down, until recently, for years has had a tremendous economic impact globally.
Similarly, there is no doubt that the broader geopolitical situation has changed fundamentally over the last half decade, and global supply chains have responded to that reality. Rather than simply pursuing the cheapest or most effective way of producing goods, multinational corporations are now taking steps to insure themselves against geopolitical upheaval. The consequence of such supply chain diversification is rising costs of production. Obviously, the key geopolitical upheaval is the Russian invasion of Ukraine and the consequential increase in wholesale energy prices as well as the transnational impact of the western sanction regime. This upheaval has happened against the backdrop of our adjustment to our new trading relationship with the European Union.
In a globalised world, the primary assessment should be how our leaders respond to challenges rather like how a pilot responds to turbulence or a ship’s captain reacts to a storm. I am assured by Mr Sunak and Mr Hunt’s economic leadership in recent months, and I am confident in Britain’s recovery. Indeed, the IMF recently reported that Britain recorded larger growth than any other G7 country in 2022.
WASPI Campaign
February 2023
The Parliamentary and Health Service Ombudsman (PHSO) has concluded stages one and two of its investigation into how the DWP communicated changes to women’s State Pension age. However, the PHSO investigation is a multi-staged process, and it would not be appropriate for me to comment while the investigation is ongoing. Section 7(2) of the Parliamentary Commissioner Act 1967 makes clear that Ombudsman investigations “shall be conducted in private”. I am afraid that the specific timetable for release of the report has not been made public.
More broadly, the Government decided over 25 years ago that it would make the State Pension age the same for men and women as a long-overdue move towards gender equality. The relevant legislation for equalisation includes the Pensions Acts of 1995, 2007 and 2011. The 2011 Act brought forward equalisation but capped the maximum increase at 18 months. This meant that the State Pension age for women would still reach 65 in November 2018 but the increase from 65 to 66 would happen by October 2020 rather than April 2020 – at a cost of £1.1 billion to the Exchequer.
Both the High Court and Court of Appeal have supported the actions of the Department for Work and Pensions (DWP), and the Supreme Court refused the claimants’ permission to appeal. Importantly, the case brought before the High Court was dismissed on all grounds, including notice, in October 2019. The Court also ruled that there had been no discrimination on grounds of age or sex. Moreover, the Pensions Acts of 1995, 2007 and 2011 were all subject to public consultation and debate in Parliament and were all widely reported in the media. The changes in the 1995 legislation were communicated in leaflets, advertising campaigns and individual letters. The up-to-date State Pension age was also provided to those who requested a Pension Statement. More than 37 million personal State Pension statements were provided between April 2000 and September 2020
Fixed Energy Tariffs
February 2023
I appreciate that over the coming months, with rising energy costs, millions of people across the United Kingdom will be adversely affected. I will continue to talk to ministerial colleagues about the different support options for the hardest hit and most vulnerable in our society. I do not think that a fixed, unmetered tariff is the best option. Such policies effectively amount to a blank cheque provided by the Government. I believe more targeted forms of assistance represent a more sensible and effective approach.
Following a Government announcement that energy prices would be capped, a typical UK household would pay no more than £2,500 a year on their energy bill for until April 2023, which started from the 1 October. Fixed tariff customers will have the same support where appropriate. Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers that currently have unit rates above the EPG.
A ‘floor’ unit price for gas averaging at 10.3p/kWh and for electricity averaging at 34p/kWh for direct debit customers will be introduced, because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the Energy Price Guarantee.
Windfall Tax on Banks
February 2023
I am not aware of any Government plans to introduce a windfall tax on banks. Banks, like other large corporations, pay corporation tax on their profits. The Corporation Tax rate will rise from 19 per cent to 25 per cent this year.
In addition, banks already face two further taxes. The Bank Corporation Tax Surcharge is an additional charge on banking profit above a set allowance, and the Bank Levy is charged on banks’ balance sheets with equity and liabilities over £20 billion. Since the introduction of the Bank Levy in 2011, these two taxes have raised over £33 billion in additional revenue from the banking sector.
The Government keeps all taxes under review and careful consideration is given to proposed amendments to the tax regime. Any changes to tax rates will be communicated in the budget in the usual way.
Gambling Review
February 2023
For many, gambling can be fun but I recognise that, for others, it can become a serious problem. While we all want a healthy gambling industry that makes an important economic contribution, we must also protect those that use it from harm. The Government recognises the unique contribution that horse racing makes to the UK's sporting culture and in particular to the rural economy.
I appreciate your concerns over the impact of the Gambling Commission’s consultation, specifically in regard to affordability checks. I want to stress that the proposals focused on more prescriptive requirements for operators to identify and intervene with customers who may be at risk of harm. This included a specific process for assessing affordability and particular consideration will be given to the spending/loss threshold at which it might be proportionate to require operators to complete affordability checks.
In response to evidence showing some gamblers may be at greater risk of harm during lockdown, the Commission published new guidance for online operators to help reduce the risk of harm in these unprecedented circumstances. You may also welcome that the Government committed to striking the right balance between freedom of choice and protection from harm while reviewing the Gambling Act 2005. I will be sure to scrutinise whether this commitment has been delivered on when the Government sets out its findings in due course, and I will pass on your concerns to ministers.
Channel 4
February 2023
The previous Culture Secretary, after public consultation, found that Government ownership was holding Channel 4 back from competing against streaming sites such as Netflix and Amazon. As such, the Government confirmed that a change of ownership would offer Channel 4 the freedom to continue its success as a public service broadcaster long into the future.
However, the new Culture Secretary has concluded her business case review and instead found that reforms should be implemented to help Channel 4 grow and better compete in the age of streaming giants. This follows discussions between the Government, Channel 4 and the independent productions sector.
I understand these plans include allowing Channel 4 the flexibility to make some of its own content and a new legal duty to promote long-term sustainability, whilst introducing protections to ensure they continue to be an incubator for the independent production sector. As part of this package, Channel 4 will now commit to doubling its planned number of new roles outside London and doubling its financial investment in skills.
Heritage Sector Pay
February 2023
The UK's heritage sector is hugely important both culturally and economically, and I'd like to pay tribute to all those working in the sector. In 2019, before the COVID-19 pandemic, the heritage sector provided over 206,000 jobs directly and supported a further 357,000 jobs through indirect and induced mechanisms in multiple sectors including the construction, tourism, public, creative industries and social services sectors.
I appreciate that the sector was one of the hardest hit during the pandemic and it has been encouraging to watch the sector recovery strongly.
I understand anxiety over rising prices and inflation. The Prime Minister has made a promise to halve inflation this year to ease the cost of living and give people financial security and I fully support these efforts. Inflation is one of the greatest economic challenges because it makes the whole country poorer.
Ultimately, this is a private matter between employers and employees. However, if you would like to read more about pay entitlements, the Advisory, Conciliation and Arbitration Service (Acas) has published guidance which can be found online at the following address: https://www.acas.org.uk/pay-and-wages
Fair Fashion
February 2023
The UK supports and wants to encourage sustainable fashion. The Government recognises the importance of buying practices which do not harm the planet. I agree that timely payments are imperative for the smooth functioning of a modern economy. It is unacceptable that small businesses routinely spend significant time and resources chasing late payments from businesses they supply which can lead to cash flow problems, putting their firms at risk and preventing them from growing. The majority of small businesses do not have large balance sheets and cannot accommodate long payment terms or delays to receiving payment within their cash flow cycle.
It has been made a legal requirement for the UK’s largest businesses to publish information on their payment practices, including the average amount of time taken to pay their suppliers. I have conveyed your comments to ministerial colleagues, so that they are aware of the strength of feeling on this issue. They acknowledge that late payment remains a significant problem for SMEs, and they are working to address it.
You will be reassured to know that the Business Secretary has recently announced an in-depth review into tackling late payments for small businesses, while urging large companies to pay their smaller suppliers promptly. The review will scrutinise existing payment practices and the measures in place to make sure small firms are not ripped off by their larger clients – with over £23.4 billion currently owed in outstanding invoices to UK businesses.
Fashion is the third-largest manufacturing industry in the world and, by some calculations, it produces up to ten per cent of the world's emissions. According to the Valuing Our Clothes report analysing the contents of British wardrobes by the Waste Resources Action Programme (WRAP), we purchased 1,130,000 tonnes of new clothing last year in the UK. Meanwhile, an estimated £30 billion worth of our clothing hangs about gathering dust because people simply don't have time to wear it all or don't really like what they are buying. Hence, since October 2020, a wide group of stakeholders, comprising retailers, manufacturers and non-profit organisations have been working with the Gangmasters and Labour Abuse Authority to address poor practice and working conditions.
The Government is clear that it expects all UK businesses, including the fashion industry, to respect human rights throughout their operations, in line with the UN Guiding Principles. Section 54 of the Modern Slavery Act places a requirement on businesses with a turnover of £36 million or more, to publish an annual modern slavery statement setting out the steps they have taken to prevent modern slavery in their supply chains. The "Work in Freedom" programme has supported 433,650 women and girls in the garment sector in South Asia, Lebanon and Jordan with training and access to services since 2018.
Royal Mail Customer Service Points
February 2023
As you may be aware, in November Royal Mail announced a review of their 1,200 Customer Service Points to determine the optimum number of locations following a 50 per cent drop in footfall since the pandemic. After completing the first stage of the review, and considering a range of options, Royal Mail has decided to maintain the current estate of Customer Service Points as they seek to further improve their first-time delivery rates.
Following successful trials, Royal Mail will additionally roll out automatic next-day redeliveries for missed parcels in the coming months. This is designed to make it even easier for customers to receive parcels at home, without the need to travel to a Customer Service Point. This initiative builds on the introduction of a range of alternative delivery options for greater convenience in recent years, including free redelivery, delivery to a neighbour, the option to leave parcels in a Safeplace and inflight redirections through the Royal Mail App.
As footfall continues to decrease, the next stage of this review will focus on ensuring that Customer Service Point opening hours match customer demand.
Pre-Payment Meters
February 2023
The Government is calling for suppliers to stop the practice of forced prepayment switching as the answer to households struggling to pay bills and make greater effort to help the most vulnerable. Further, it is requesting the release of supplier data on the number of warrant applications they have made to forcibly enter homes to install meters.
Additionally, a list of supplier redemption rates for the Energy Bills Support Scheme vouchers will be published urgently showing who is meeting their responsibilities and who needs to do more. The Government is launching of a public information campaign reminding and informing eligible consumers to redeem their Energy Bills Support Scheme vouchers and how to do so. This will be through both advertising and direct communication channels, targeting the most vulnerable and those most likely not to have redeemed vouchers. Finally, the Government will be coordinating with Ofgem to ensure they take a more robust approach to the protection of vulnerable customers and conduct a review to make sure suppliers are complying with rules.
As I understand it, Ofgem rules already require energy suppliers to offer a pre-payment service only when it is safe and reasonably practicable to do so, and that applies whether a meter is smart or traditional. There are clear obligations on energy suppliers regarding customers in payment difficulty, and a prescribed process for occasions on which a warrant is required.
There are clear expectations for suppliers in respect of the steps to be taken before they install a prepayment meter owing to debt, or switching a smart meter from credit to prepayment mode. Those steps include conversations to discuss debt repayment, budget management and energy efficiency measures, and referrals to debt advisers and charities. Before a prepayment meter is chosen as the debt repayment pathway, its safety must be assessed, as well as the customer’s ability to pay.
Minimum Service Levels
February 2023
The rights of some workers to strike must be balanced against the rights of the wider public to get on with their daily lives. Strikes can, and do, cause significant disruption. That is particularly the case when they take place in important public services such as transport or education. It cannot be right that trade unions can, as we saw in the case of the recent rail strikes, seek to hold the country to ransom if their demands are not met.
The Government also has a duty to the public to ensure their safety, protect their access to vital public services, and help them go about their daily lives. Therefore, the Government has introduced the Strikes (Minimum Service Levels) Bill for vital public services including health, education, fire and rescue, transport, nuclear decommissioning, and border security to maintain critical and in many cases life-saving services. Most other comparable countries have similar service guarantees – indeed many go far further, banning strikes in certain sectors altogether – and we are unusual in not having such public protections.
The Government will consult first on MSLs for ambulances, fire, and rail. While the Bill contains provisions for other parts of the NHS, education, nuclear decommissioning, and border security, we hope that voluntary agreements will continue to be sufficient. This new legislation will allow the Government, NHS, the public and other services to plan properly for the running of services in times of strike – and ensure that striking workers are not inadvertently putting the public at risk. This package of measures will see the UK align with many countries across the world such as France and Spain that already have minimum service agreements in place, to prevent large swathes of their economies being ground to a halt by industrial action.
Education Sector Strikes
February 2023
The Government also has a duty to the public to ensure their safety, protect their access to vital public services, and help them go about their daily lives. Therefore, the Government has introduced the Strikes (Minimum Service Levels) Bill for vital public services. The Minimum Service Levels do apply to the education sector. I do not believe a blanket ban on striking would be appropriate. While the Government and I continue to support the right to strike, this should always be a last resort. As you may be aware, the Government is not responsible for decisions on pay. Well-established independent pay review process is the right way to set public sector pay – it provides independent, expert advice and is a neutral process in which all parties play a role.
It is extremely disappointing that the National Education Union (NEU), one of the trade unions representing the teaching profession, announced its intention to strike. Not enough members of two other unions – NASUWT, which represents classroom teachers, and NAHT, which represents head teachers – voted in favour of taking industrial action. After two years of disrupted education due to the Covid-19 pandemic, every single day spent in school with experienced teachers who know their students makes a difference to a child’s development. The NEU’s decision to call strike action puts children’s education and wellbeing at risk at a time when teachers are working hard to support them in recovering from the pandemic.
I am deeply disappointed that the NEU has taken this step given that the Government announced a record funding increase for schools in the Autumn Statement. In the Autumn Statement, the Chancellor confirmed that schools in England will receive an additional £2 billion of funding next year and the year after. This will be the highest real terms spending on schools in history, totalling £58.8 billion by 2024/25. Of course, that does not mean that teachers are not facing pressure, but this is not a sector starved of investment.
The Secretary of State for Education and officials from the Department for Education (DfE) continue to meet the trades unions to try to prevent strike action. The Government’s priority will always be to keep schools open and to keep children in the classroom, and the DfE has issued guidance to school leaders to help with this process.
Strike Action
February 2023
are nuanced but I do think the Government is taking the right approach as things stand. A balance must be struck between giving workers a fair and reasonable settlement and taking steps to continue to bring down inflation and protect households’ budgets. Unfortunately, high levels of inflation make the whole country poorer. In this time of economic difficulties, inflation-matching pay awards that many of the unions are demanding will make the fight against inflation more challenging, risking interest rates, mortgage payments and bills rising for people as a result. This would erode the value of any pay increase for public sector workers and hurt households across the country. Nevertheless, the Government hugely respects and values the work of our public sector workers, and it is committed to avoid prolonged industrial action. We must resolve the strikes and deliver on the promise of halving inflation and reducing debt. Therefore, the Government is inviting trade unions to meet for honest, constructive conversations about what is fair and affordable in public sector pay settlements for 2023-24, and Secretaries of State are inviting unions to sit down and discuss the evidence that the Government will be submitting to the pay review bodies.
Windfall Tax
May 2022
On the substance, there are strong arguments for and against windfall taxes. The energy companies are indeed making exceptional profits as a result of high global energy prices. Clearly it would help raise money, although Labour’s tax would actually raise fairly small amounts by national standards (for example, not enough to fund the £150 per household council tax rebate the Government has already made). There is a risk that it would make the UK seem unreliable to businesses, and deter long term investment not just in energy but other industries. However, a Conservative government has introduced a windfall tax before – Margaret Thatcher introduced one on banks.
Oil and gas companies are currently seeing extraordinary windfall profits due to global spikes in commodity prices, driven in part by surging demand after the pandemic and Russia’s war. As a result of high energy prices, millions of households across the UK are struggling to make their incomes stretch to cover the rising cost of living. That is why the Government last week introduced its Energy Profits Levy (which others have called a windfall tax) which will be charged on profits of oil and gas companies at a rate of 25 per cent, on top of the existing 40 per cent headline rate of corporation tax, raising around £5 billion over the next year to support households. It will be temporary, and as the oil and gas price decreases to normal levels, the Levy will be automatically phased out.
The Government is sympathetic to the argument that such taxes should be designed in a way they do not deter investment, which is critical to growing our economy. This is why significant investment incentives will be built into the new Levy. A new Investment Allowance will double the overall investment relief for oil and gas companies, so companies will have a significant incentive to reinvest their profits. For every £1 an oil or gas company invests, they will pay 91 per cent less tax – so the more a company invests, the less tax they will pay. This relief will be available straight away, rather than waiting for profits which is normal for existing investment reliefs.
The Government will also examine the scale of large profits made by the electricity generation sector and consider the appropriate steps to take.
Channel 4
March 2022
Channel 4 is entirely commercially funded, but it has been publicly owned since it began broadcasting. The main reason it was set up as a publicly owned, commercially run station was to provide greater choice. Today though, audiences can now watch what they want, whenever they want, how they want, across a range of internet-enabled personal devices.
The independent production sector has also grown enormously so that it now supplies content to a wide range of broadcasters and streaming services. The Culture Secretary, after careful consideration and public consultation, has decided that Government ownership is holding Channel 4 back from competing against streaming sites such as Netflix and Amazon. I understand further details will be set out in a White Paper in due course and I look forward to reading them. The Culture Secretary has also been clear that she will seek to use the proceeds of the sale to level up the creative sector.
By investing money into independent production and creative skills in priority parts of the country, this will deliver a creative dividend for all. The UK made more films than Hollywood in the last quarter of 2021 and with many more studios opening in the UK, delivering funding will be key.
Access to Cash
March 2022
Cash remains an important part of daily life for millions of people across the UK, which is why the Government has committed to legislate for the protection of access to cash.
As of October 2021, LINK reported that there were around 41,000 free-to-use ATMs in the UK. More broadly, the Financial Conduct Authority reports that as of the second quarter of 2021, nearly 96 per cent of the UK population are within 2km of a free-to-use cash access point.
Following a detailed consultation, the Government intends to support the continued use of cash in people’s daily lives and help to enable local businesses to continue accepting cash by ensuring they can access deposit facilities. Having already facilitated the wide-spread adoption of cashback without a purchase through the Financial Services Act 2021, the Government will set out next steps in due course.
Although schemes such as Community Access to Cash have been very successful, I hope that future legislation will ensure the needs of cash users are understood and continue to be met by industry, including large and small retailers.
Beer Duty
January 2022
The Autumn Budget 2021 confirmed that duty rates on beer, cider, wine and spirits will be frozen for another year, a move which will save consumers £3 billion over the next five years, and provide further support to the hospitality industry and its suppliers as they recover from the pandemic. Duty rates on draught beer and cider will be cut by 5 per cent, taking 3p off a pint and further supporting pubs.
The response I am looking for is not here
We do endeavour to publish responses to campaign emails and national policy queries in good time, but sometimes a change in circumstance may cause a short delay. We also review our policy responses at the end of each month, so please do check back then for a further update.
If your query relates to a matter previously covered, please do check our 2020 archive here, our 2021 archive here, or use the links in the sidebar to the left.