To ask the Secretary of State for the Home Department, if she will include a new offence of failing to prevent economic crime in the provisions of the Economic Crime and Corporate Transparency Bill announced in the Queen's Speech 2022.
Answered by: Kit Malthouse MP, Minister of State, Ministry of Justice and Home Office
23 June 2022Building on the recently enacted Economic Crime (Transparency and Enforcement) Act, the Economic Crime and Corporate Transparency Bill will bear down further on kleptocrats, criminals and terrorists who abuse our financial system, strengthening the UK's reputation as a place where legitimate business can thrive while driving dirty money out of the UK.
As set out in the Queen's Speech, the Bill will include reform of Companies House, reforms to prevent abuse of limited partnerships, additional powers to seize suspect cryptoassets more quickly and easily, and reforms to give businesses more confidence to share information in order to tackle money laundering and other economic crime.
The Government keeps UK law under regular review to ensure a robust legislative framework. In 2020, the Government commissioned the Law Commission to undertake a detailed review of how the legislative system could be improved to appropriately capture and punish criminal offences committed by corporations, with a particular focus on economic crime.
The Law Commission report was published on 10 June. The Government will carefully assess the options presented and will take forward the strongest options for reform.
To ask the Chancellor of the Exchequer, what support his Department plans to provide to community development finance institutions across the UK.
Answered by: John Glen MP Economic Secretary to the Treasury
9 November 2021The Treasury recognises the vital role that non-banks, including Community Development Financial institutions (CDFIs), play in the provision of credit to SMEs. It remains grateful for the way the sector has responded to the current crisis. The Government remains committed to promoting competition and widening the funding options available to UK businesses. Our position has always been that the Government does not provide capital to financial institutions, who must source their own funding. For those lenders accredited under the government-backed Recovery Loan Scheme, it is worth noting that they can benefit from the transfer and assignment of the guarantee. The government made this allowance in response to a request from alternative lenders support their ability to access funding.
To ask the Chancellor of the Exchequer, what plans his Department has to review the bank referral scheme and increase the (a) diversity of lending options and (b) availability of constructive support for rejected businesses.
Answered by: John Glen MP Economic Secretary to the Treasury
9 November 2021The Government published a statutory Post-Implementation Review of the Bank Referral Scheme in December 2020, which is available here. The Government remains committed to fostering a strong, diverse and competitive financial services sector to ensure that UK SMEs can benefit from high quality products and services at efficient prices. That said, I should be clear that after SMEs are referred to alternative lenders under the Bank Referral Scheme, the decision of whether to offer finance is at the discretion of each lender, subject to their commercial considerations. Furthermore, the Government recognises the vital role that alternative lenders have played in the provision of credit to SMEs and is grateful for the way the sector has responded to the current crisis. It remains committed to promoting competition, and widening the funding options available to UK businesses, and as such, we will continue to review our policies and work with the sector to achieve those outcomes.
To ask the Secretary of State for the Home Department, how many accredited financial investigators the National Crime Agency has employed in each of the last five years.
Answered by: Rt Hon Damian Hinds MP Minister for Security and Borders
4 November 2021The National Crime Agency (NCA) currently has 174* accredited financial investigators (FIs). Figures for previous years are not held. The number of FIs does not directly equate to the volume of financial investigative work undertaken by the NCA, as criminal investigators progress money laundering cases, with the support of the FI network where required. *These figures may include FIs who are on a career break, have recently left the agency, or have moved into a non-FI role (either temporarily or permanently).
To ask the Secretary of State for the Home Department, if she will publish the (a) budget, (b) headcount, and (c) the number of accreditations issued to financial investigators for each year in the last five years by the National Crime Agency's Proceeds of Crime Centre.
Answered by: Rt Hon Kit Malthouse MP Minister for Crime and Policing
2 November 2021(a) budget — The total spending of the Proceeds of Crime Centre (POCC) over each of the last five financial years is in the table below. This covers a range of costs, for example pay, overtime, travel, training delivery costs.
| Financial year | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 (YTD) |
| £ | 982,365 | 962,650 | 874,568 | 937,167 | 501,138 |
(b) headcount — The headcount of the POCC now, and at the end of the preceding four financial years, and the year to date is in the table below.
| March 2018 | March 2019 | March 2020 | March 2021 | October 2021 |
| Staff in post | 14 | 15 | 16 | 18 | 20 |
(c) number of accreditations — The number of new accreditations given to Financial Investigators (FIs) by the POCC is set out below.
| Financial year | 2017/18 | 2018/19 | 2019/20 | 2020/21 | 2021/22 (YTD) |
| Financial Investigators accredited | 201 | 241 | 151 | 119 | 140 |
| Confiscators accredited | 143 | 118 | 83 | 51 | 47 |
To ask the Secretary of State for the Home Department, how many and what total value of (a) fines have been imposed and (b) assets confiscated as a result of action taken by the National Crime Agency in relation to money laundering and other economic crime in each of the last five years.
Answered by: Rt Hon Damian Hinds MP Minister for Security and Borders
2 November 2021The National Crime Agency do not issue or collect court fines. For assets confiscated by the National Crime Agency see the Annual Asset Recovery Statistical Bulletin 2020/21 published in September, which contains data going back to 2016. This is available here.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to support SMEs operating in the UK to transition to net zero.
Answered by: The Rt Hon Greg Hands MP Minister of State at the Department for Business, Energy & Industrial Strategy
22 October 2021This Department is taking many steps to encourage SMEs to transition to Net Zero and to support SMEs through the barriers which prevent the transition. Information and engagement — Ahead of COP26, BEIS launched the Together for Our Planet Business Climate Leaders' campaign, which has encouraged over 1,900 small and micro businesses across the UK to join the Race to Zero by making the SME Climate Commitment. Addressing energy efficiency — In order to help SMEs overcome barriers to investing in energy efficiency we launched the Boosting Access for SMEs to Energy Efficiency innovation competition, offering up to £6m to fund the development of new, innovative market solutions. Access to Finance — I have recently given the British Business Bank a new mission to drive sustainable growth and prosperity across the UK, and to enable the transition to a net zero economy. Between 2014 and Q3 2020 a total of £160m has been invested into clean technology businesses by equity funds backed by the British Business Bank.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to identify potential failures in the insolvency industry; and whether his Department has made an assessment of the potential merits of introducing a single regulator and ombudsman to oversee that industry.
Answered by: Paul Scully MP Minister for Small Business, Consumers and Labour Markets
20 October 2021The Government welcomes the efforts to establish regional mutual banks in the UK. The Government is also committed to seeing a highly competitive banking sector, working in the interests of all consumers and businesses across the country, and recognises the potential of regional mutual banks in achieving this goal. HM Treasury officials have been engaging with prospective mutual banks over challenges to their establishment. The Government has the power to relax competition rules where there are exceptional and compelling reasons of public policy to do so. We will consider requests for public policy exclusion orders where the exceptional and compelling reasons of public policy have been demonstrated.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps his Department is taking to identify potential failures in the insolvency industry; and whether his Department has made an assessment of the potential merits of introducing a single regulator and ombudsman to oversee that industry.
Answered by: Paul Scully MP Minister for Small Business, Consumers and Labour Markets
20 October 2021The Government is currently reviewing the arrangements for regulation of the insolvency profession and will shortly publish proposals for consultation.
To ask the Chancellor of the Exchequer, whether he plans to mandate large bank investment through social lenders such as Community Development Finance Institutions.
Answered by: John Glen MP Economic Secretary to the Treasury
20 October 2021The Treasury recognises the vital role that non-banks, including Community Development Financial institutions (CDFIs), and challenger banks play in the provision of credit to SMEs. The Government recognises the vital role that CDFIs play in the provision of credit to SMEs and is grateful for the way the sector has responded to the current crisis. The Government remains committed to promoting competition and widening the funding options available to UK businesses. Whilst there are no plans at this time to mandate large bank investment through social lenders like CDFIs, all lenders accredited under the government-backed Recovery Loan Scheme can benefit from the transfer and assignment of the guarantee, which is something that alternative lenders requested to support their ability to access funding.
To ask the Chancellor of the Exchequer, whether the British Business Bank's Regional Angels programme will be extended through funding from his Department.
Answered by: Helen Whately MP Exchequer Secretary to the Treasury
20 October 2021The British Business Bank's Regional Angels Programme provides early-stage equity capital to smaller businesses with high growth potential across the UK. The British Business Bank's funding for the next three years will be set out at the Spending Review.
To ask the Chancellor of the Exchequer, what plans he has to extend the Term Funding Scheme to non-bank lenders to improve alternative financing options.
Answered by: John Glen MP Economic Secretary to the Treasury
15 October 2021The Term Funding Scheme (TFS) is a monetary policy tool of the independent Monetary Policy Committee (MPC) of the Bank of England. Therefore, it is not appropriate for the Government to comment on its conduct or effectiveness. The separation of fiscal and monetary policy is a key feature of the UK's economic framework, and essential for the effective delivery of monetary policy. We will continue to work with non-bank lenders to support their participation in the new Recovery Loan scheme following the closure of CBILS, CLBILS, and the Bounce Back Loan Scheme.
To ask the Secretary of State for Business, Energy and Industrial Strategy, when he plans to publish the Heat and Buildings Strategy.
Answered by: The Rt Hon Anne Marie Trevelyan MP Minister for Energy, Clean Growth and Climate Change
3 September 2021The Government is planning to publish a Heat and Buildings Strategy in due course. The strategy will set out the immediate actions we will take for reducing emissions from buildings, as well as our approach to the key strategic decisions needed to achieve a mass transition to low-carbon heat.
To ask the Secretary of State for the Home Department, how many full-time equivalent staff have been employed by the National Crime Agency to tackle economic crime in each of the last three years.
Answered by: The Rt Hon Kit Malthouse MP Minister for Crime and Policing
27 July 2021The Agency has a wide range of capabilities and functions that operate across different threat areas including economic crime. The following table contains the approximate number of full time equivalent (FTE) staff for the Economic Crime Command, UK Financial Intelligence Unit and NECC since 2018.
| ECC (NECC and UKFIU) FTE (approximate) |
| 2019 FY end | 240 |
| 2020 FY end | 300 |
| 2021 FY end | 350 |
The NCA's success in denying criminal assets over the same three years totals £646.5m, which could have derived from any serious and organised crime threat.
To ask the Secretary of State for the Home Department, how much and what proportion of the National Crime Agency's budget has been spent on tackling economic crime in each of the last three years.
Answered by: The Rt Hon Kit Malthouse MP Minister for Crime and Policing
19 July 2021The National Crime Agency (NCA)'s overall budget is distributed across the agency according to need and operational priority. As serious and organised crime threats change, the agency retains the ability to flex its resources to react. It is not possible to provide a breakdown of budget allocated to tackling economic crime as there are a number of agency-wide capabilities and functions that all commands have access to. The NCA Annual Report and Accounts provide the following Gross Expenditure over the past three years: 2018/19 — Gross expenditure for the Prosperity Command — £22.0m; 2019/20 — Gross expenditure for the NECC — £30.0m; 2020/21 — Gross expenditure for the NECC — £35.5m. The NCA's success in denying criminal assets over the same three years totals £646.5m.
To ask the Chancellor of the Exchequer, whether the new UK Infrastructure Bank will have a mandate to offer loan guarantees for at-scale retrofit projects.
Answered by: Kemi Badenoch MP Exchequer Secretary to the Treasury
14 June 2021As set out in the Budget, the UK Infrastructure Bank will have a broad mandate to offer support across different sectors. This includes being able to support retrofit projects that contribute to achieving net zero emissions, where the Bank's investment criteria are met. The Government will provide further guidance on the investment parameters for the Bank in the Framework document to be published at launch. The Bank will have a range of financing tools at its disposal including senior debt, equity, hybrid products and guarantees.
To ask the Chancellor of the Exchequer, what plans he has to establish mutual banks from dormant funds in banks.
Answered by: John Glen MP Economic Secretary to the Treasury
18 May 2021The Government welcomes the efforts to establish regional mutual banks and recognises the importance of diversity in the banking system. Officials have been engaging with prospective mutual banks over their efforts to raise capital and look forward to further discussions. Banking Competition Remedies Ltd (BCR) was established in 2018 as the independent body to implement and oversee the NatWest-funded Alternative Remedies Package, including the £425m Capability and Innovation Fund (CIF). The distribution of dormant accounts money is governed by the Dormant Bank and Building Society Accounts Act 2008. Following the government's commitment to expanding the Dormant Assets Scheme, the Dormant Assets Bill was introduced to the House of Lords on Wednesday 12 May.
To ask the Chancellor of the Exchequer, what plans he has to bring forward regulations for Mutual Deferred Shares under the Mutuals' Deferred Shares Act 2015.
Answered by: John Glen MP Economic Secretary to the Treasury
18 May 2021The Government has consulted widely with industry representatives in considering whether to lay secondary legislation to enable mutual insurers to raise equity by issuing Mutual Deferred Shares. Mutual insurers and their representatives made clear that Mutual Deferred Shares would only be issued if they both qualified as Tier 1 regulatory capital and would not alter the tax treatment of the issuing mutual. The Government's decision in 2018 not to lay secondary legislation was taken based on an assessment that it was not possible to design Mutual Deferred Shares to meet both these conditions. The Government is committed to supporting the mutuals sector, but continues to have no plans to bring forward such legislation.