Hansard - United Kingdom Parliament

79W
Written Answers
20 JUNE 2011
Written Answers
80W
Financial Services Authority
Government Procurement Card
Mr Love: To ask the Chancellor of the Exchequer
what objectives he has set for the working forum of
mutual trade bodies to input collectively into the policy
formulation process of the Financial Services
Authority; and if he will make a statement. [60217]
Mr Hoban: This is a matter for the Financial Services
Authority and the members of the forum. I understand
that the objectives for the forum will be agreed when it
meets for the first time later this year.
Financial Services: City of London
Jonathan Evans: To ask the Chancellor of the Exchequer
what steps he is taking to support the competitiveness
of the City of London as a financial centre. [60164]
Mr Hoban: The Government are committed to a
stable, predictable and competitive environment for financial
services and one favourable to business more generally.
The Government have taken immediate action to
restore tax competitiveness with a phased reduction in
the main rate of corporation tax from 28% to 23% over
the next four years. By 2014, and based on current
plans, the UK will have the 5th lowest main rate in the
G20 and will maintain its position as the lowest in the
G7.
There are many factors which attract business to the
UK—a robust and stable legal framework; high standards
of transparency and accounting; excellent infrastructure;
clustering benefits including associated business such as
professional services; a deep and highly skilled talent
pool; language; time zone; and quality of life.
Ensuring that London retains its position as the
preeminent international financial centre is of critical
importance to the UK economy. The UK is leading the
argument in the EU and internationally for robust,
internationally consistent regulatory standards that will
benefit the economy and make the financial sector more
stable. Strong regulation and effective supervision will
increase investor confidence, supporting the competitive
position of the city.
Financial Services: Taxation
Frank Dobson: To ask the Chancellor of the
Exchequer if he will estimate the amount of receipts
from a tax on all cost conversions from one currency
into another levied at (a) 0.005 per cent., (b) 0.05 per
cent., (c) 0.5 per cent. and (d) 5 per cent. [60066]
Mr Hoban: There are many issues that need to be
further explored around whether a currency transaction
tax model offers a stable and efficient mechanism to
raise revenue. These issues need to be resolved before
the potential revenue could be forecast.
The UK Government believe a financial transactions
tax would need to be applied globally to prevent the
relocation of financial services and are willing to engage
in further international discussions of such taxes.
Charlie Elphicke: To ask the Chancellor of the Exchequer
what the (a) date of purchase, (b) gross amount, (c)
level 3 line item detail and (d) supplier was in respect of
each transaction undertaken by the Valuation Office
Agency using the Government Procurement Card in (i)
2008-09 and (ii) 2009-10. [59213]
Mr Gauke: Tables have been placed in the Library
showing the spending by the Valuation Office Agency
(VOA) from the Government Procurement Cards (GPC)
in 2008-09 and 2009-10. The tables list the dates of
transactions, the amounts and the suppliers. VOA does
not on the whole transact with suppliers with Level 3
detail transactions and any incidence of such transactions
would be very small in relation to the overall number of
transactions and therefore this data is only available at
disproportionate cost.
The average annual spend is less than 0.05% of the
VOA’s overall spending.
Inflation
Ian Lavery: To ask the Chancellor of the Exchequer
what recent assessment he has made of the effect on the
economy of trends in the rate of inflation. [60518]
Justine Greening: The Government consider a range
of factors when making their assessment of the UK
economy. The Office for Budget Responsibility (OBR)
is responsible for producing independent economic and
fiscal forecasts. The OBR published a full analysis of
recent developments and the prospects for growth and
inflation in their forecast at Budget, which can be found
online at:
http://budgetresponsibility.independent.gov.uk/
Loans: Republic of Ireland
Frank Dobson: To ask the Chancellor of the
Exchequer from which UK-based banks he received
representations on financial assistance to Ireland.
[60425]
Mr Hoban: Treasury Ministers and officials have
discussions with a wide variety of organisations in the
public and private sectors as part of the process of
policy development and delivery.
Monetary Policy
Steve Baker: To ask the Chancellor of the Exchequer
what assessment he has made of the effects of
quantitative easing on the cost of borrowing for small
businesses and consumers. [48407]
Mr Hoban: The Monetary Policy Committee of the
Bank of England is operationally independent in setting
monetary policy to meet the inflation target, including
bank rate and the level of asset purchases under quantitative
easing (QE). The MPC takes all relevant factors, including
the cost of borrowing for businesses and consumers,
into account in its assessment of the balance of risks to
inflation in the medium term. The Bank’s May 2009
Inflation Report explains how asset purchases work to
stimulate nominal spending along various channels.