Written questions by Anderson.

What steps her Department is taking to ensure that the UK's implementation of Pillar Two (a) remains compatible with the future side‑by‑side system agreed by G7 partners and (b) avoids creating additional compliance burdens for UK businesses.

The Chancellor, alongside her G7 counterparts, has reached an understanding on a proposed path forward for the global minimum tax, Pillar 2 of the G20/OECD Inclusive Framework project on Base Erosion and Profit Shifting (BEPS).The G7 published a statement on 28 June that set out our commitment to the core objectives of Pillar 2: tackling multinational tax avoidance and promoting a stable global tax environment that supports fair competition This understanding also included the removal of the retaliatory tax provision (Section 899) in the US’s legislative proposals, which would have imposed a significant additional tax burden on British firms and which was causing significant concern and uncertainty.Recent discussions informing this understanding have taken into account concerns raised by the US Treasury regarding the interaction of the Pillar 2 rules with the US minimum tax system, and have focused on developing a potential approach for the US and Pillar 2 system to sit ‘side-by-side’ The more than 140 members of the Inclusive Framework will now take forward the discussions on this potential side-by-side system, which will include ensuring that multinationals in scope of Pillar 2 and the US minimum tax systems are operating on a level playing field. Work to develop a side-by-side system will be undertaken alongside material simplifications being delivered to the overall Pillar 2 administration and compliance framework. The government is committed to driving forward progress, for example on a permanent safe harbour to help deliver this simplification.Where agreements are reached in the Inclusive Framework, the government will incorporate any updates into UK legislation. This is in line with the government’s commitment in the October 2024 Corporate Tax Roadmap to ensure that the UK reflects internationally agreed rules.

What assessment her Department has made of the potential impact of the discussions on transition credits at the 10th UK-Singapore Financial Dialogue with Strengthened Collaboration in Digital Finance & Innovation and Sustainable Finance, which took place on 2 July 2025, on the UK’s regulatory approach to voluntary carbon markets.

The UK-Singapore Financial Dialogue took place on 2 July 2025. Both the UK and Singapore recognised the importance of collaborating to promote high-integrity carbon markets. The use of transition credits to support emissions reductions in hard-to-abate sectors was discussed between both countries. As co-chair of the Powering Past Coal Alliance, the UK supports the work of the France-Indonesia co-led Coal Transition Commission that recognises the potential of transition credits to accelerate coal plant closures as part of a possible solution set. If designed and executed properly, transition credit methodologies could help bridge the financial gap that often hinders early retirement of coal plants in emerging markets and developing economies, while supporting a just transition for affected communities. A consultation on steps Government could take to raise integrity and scale in voluntary carbon markets closed on July 10. It sought views on how the UK’s Principles for Carbon and Nature Market Integrity, announced by the Chancellor last year, could be put into practice.

What assessment her Department has made of the impact of the G7 side‑by‑side approach on the (a) effective tax rate and (b) competitiveness of UK‑headed multinationals.

The Chancellor, alongside her G7 counterparts, has reached an understanding on a proposed path forward for the global minimum tax, Pillar 2 of the G20/OECD Inclusive Framework project on Base Erosion and Profit Shifting (BEPS).The G7 published a statement on 28 June that set out our commitment to the core objectives of Pillar 2: tackling multinational tax avoidance and promoting a stable global tax environment that supports fair competition.This understanding also included the removal of the retaliatory tax provision (Section 899) in the US’s legislative proposals, which would have imposed a significant additional tax burden on British firms, and which was causing significant concern and uncertainty.Recent discussions informing this understanding have taken into account concerns raised by the US Treasury regarding the interaction of the Pillar 2 rules with the US minimum tax system, and have focused on developing a potential approach for the US and Pillar 2 system to sit ‘side-by-side’ The more than 140 members of the Inclusive Framework will now take forward the discussions on this potential side-by-side system, which will include ensuring that multinationals in scope of Pillar 2 and the US minimum tax systems are operating on a level playing field. The UK has already implemented the Pillar 2 rules, including a domestic minimum tax that will ensure all in-scope groups are subject to a minimum 15% effective tax rate in the UK.

Whether she has established any formal mechanisms with her US counterpart on regulatory coordination for digital asset supervision following the meeting of the UK–US Financial Regulatory Working Group meeting in June 2025.

The Chancellor and US Treasury Secretary Bessent have now engaged on multiple occasions, and have stressed the importance of international collaboration in financial services. This includes continued UK-US engagement to support the use and responsible growth of digital assets. On 3 June, HM Treasury hosted the US Treasury and regulators for the UK-US Financial Regulatory Working Group. The Joint Statement outlines the discussions, including on digital assets, and can be found here. UK and US officials and regulators continue to engage via a range of mechanisms to support collaboration and coordination.

What assessment her Department has made of the potential impact of the discussions on non-bank financial intermediation during the UK–US Financial Regulatory Working Group discussions, in June 2025, on UK financial stability planning.

On 3 June, HM Treasury hosted the US Treasury and regulators for the UK-US Financial Regulatory Working Group. The Joint Statement outlines the discussions, including on non-bank financial intermediation, and can be found here. HM Treasury, the Bank of England and Financial Conduct Authority are working closely to monitor risks in and improve the resilience of the non-bank sector. Domestically, this work has included the Bank of England’s System Wide Exploratory Scenario which has improved our understanding of the behaviour of non-bank financial intermediaries during market stress, and the launch of the Contingent Non-Bank Repo Facility to provide liquidity to eligible non-banks in a stress. This is alongside a programme of policy work, including implementing a resolution regime for central counterparties and developing our UK money market fund reform programme. UK authorities also take an active role on this internationally, including working with international partners at the Financial Stability Board (FSB) to assess risks and develop policy to enhance the resilience of the non-bank sector.

What assessment she has made of the potential impact of the work of the London Coalition on Sustainable Sovereign Debt on the (a) accessibility and (b) resilience of sovereign borrowing frameworks in emerging markets.

The mission of the London Coalition on Sustainable Sovereign Debt is to work closely with the private sector to drive pragmatic, market-based solutions that support long-term, stable capital flows to emerging and developing economies (EMDEs) and improve outcomes in debt restructurings. By providing a formal platform for engagement with private creditors, across both bonded and non-bonded debt, the Coalition is advancing innovations in debt contracts, such as Natural Disaster Clauses (NDCs) and Majority Voting Provisions (MVPs), to promote transparency, orderly restructurings, and more resilient borrowing frameworks. Enhanced transparency, grounded in strong governance and comprehensive data reporting, strengthens creditworthiness, facilitating greater market access, and expedites restructurings, giving countries quicker access to fiscal space when needed. To further bolster resilience, the Coalition is advancing contractual innovations like NDCs, which allow for the temporary suspension of debt service repayments in response to exogenous shocks, supporting macroeconomic stability and fiscal flexibility. The UK’s approach to international sovereign debt extends beyond private sector engagement. The government is working through the G20 and the Global Sovereign Debt Roundtable to promote transparent and sustainable lending practices. This includes encouraging the publication of self-assessments under the G20 Operational Guidelines for Sustainable Financing and advocating for a more responsive and effective Common Framework, including pushing to expand its coverage to middle income countries. Promoting debt sustainability for EMDEs is good for developing countries, creditors global prosperity. Tackling unsustainable debt is a key development priority for this government and a fundamental part of the international development toolkit. The UK’s Trade Strategy, published in June 2025, underlines our commitment to supporting developing economies, simplifying access to the UK market, and deepening partnerships with the Global South to diversify supply chains and support development.

Whether she plans to incorporate the findings of the London Coalition on Sustainable Sovereign Debt into (a) future international development and (b) trade policy frameworks.

The mission of the London Coalition on Sustainable Sovereign Debt is to work closely with the private sector to drive pragmatic, market-based solutions that support long-term, stable capital flows to emerging and developing economies (EMDEs) and improve outcomes in debt restructurings. By providing a formal platform for engagement with private creditors, across both bonded and non-bonded debt, the Coalition is advancing innovations in debt contracts, such as Natural Disaster Clauses (NDCs) and Majority Voting Provisions (MVPs), to promote transparency, orderly restructurings, and more resilient borrowing frameworks. Enhanced transparency, grounded in strong governance and comprehensive data reporting, strengthens creditworthiness, facilitating greater market access, and expedites restructurings, giving countries quicker access to fiscal space when needed. To further bolster resilience, the Coalition is advancing contractual innovations like NDCs, which allow for the temporary suspension of debt service repayments in response to exogenous shocks, supporting macroeconomic stability and fiscal flexibility. The UK’s approach to international sovereign debt extends beyond private sector engagement. The government is working through the G20 and the Global Sovereign Debt Roundtable to promote transparent and sustainable lending practices. This includes encouraging the publication of self-assessments under the G20 Operational Guidelines for Sustainable Financing and advocating for a more responsive and effective Common Framework, including pushing to expand its coverage to middle income countries. Promoting debt sustainability for EMDEs is good for developing countries, creditors global prosperity. Tackling unsustainable debt is a key development priority for this government and a fundamental part of the international development toolkit. The UK’s Trade Strategy, published in June 2025, underlines our commitment to supporting developing economies, simplifying access to the UK market, and deepening partnerships with the Global South to diversify supply chains and support development.

What role the London Coalition on Sustainable Sovereign Debt will play in shaping the UK’s approach to sustainable debt financing in developing economies.

The mission of the London Coalition on Sustainable Sovereign Debt is to work closely with the private sector to drive pragmatic, market-based solutions that support long-term, stable capital flows to emerging and developing economies (EMDEs) and improve outcomes in debt restructurings. By providing a formal platform for engagement with private creditors, across both bonded and non-bonded debt, the Coalition is advancing innovations in debt contracts, such as Natural Disaster Clauses (NDCs) and Majority Voting Provisions (MVPs), to promote transparency, orderly restructurings, and more resilient borrowing frameworks. Enhanced transparency, grounded in strong governance and comprehensive data reporting, strengthens creditworthiness, facilitating greater market access, and expedites restructurings, giving countries quicker access to fiscal space when needed. To further bolster resilience, the Coalition is advancing contractual innovations like NDCs, which allow for the temporary suspension of debt service repayments in response to exogenous shocks, supporting macroeconomic stability and fiscal flexibility. The UK’s approach to international sovereign debt extends beyond private sector engagement. The government is working through the G20 and the Global Sovereign Debt Roundtable to promote transparent and sustainable lending practices. This includes encouraging the publication of self-assessments under the G20 Operational Guidelines for Sustainable Financing and advocating for a more responsive and effective Common Framework, including pushing to expand its coverage to middle income countries. Promoting debt sustainability for EMDEs is good for developing countries, creditors global prosperity. Tackling unsustainable debt is a key development priority for this government and a fundamental part of the international development toolkit. The UK’s Trade Strategy, published in June 2025, underlines our commitment to supporting developing economies, simplifying access to the UK market, and deepening partnerships with the Global South to diversify supply chains and support development.

Whether her Department has made an assessment of the potential impact of increasing the Public Works Loan Board lending cap on local authority investment strategies.

The government increased the aggregate limit for Public Works Loan Board (PWLB) lending to £135 billion in November 2024. The increase in the limit has ensured that local authorities (LA) can continue to access loans to support their investment strategies in line with the PWLB lending guidance and the Prudential Framework for local government capital finance.

What assessment her Department has made of the potential impact of levels of public equity market capitalisation on domestic economic growth.

The UK’s vibrant and dynamic capital markets play a key role in supporting growth as identified in the Financial Services Growth and Competitiveness Strategy Call for Evidence - and the Government committed to strengthening UK capital markets and taking forward an ambitious programme of reforms. The Government will publish the strategy in July. As part of these reforms, the government has also recently delivered legislation to establish the Private Intermittent Securities and Capital Exchange System Sandbox (PISCES) to respond to companies staying private for longer and at scale. It aims to make private secondary markets more efficient with a bespoke regulatory framework, while also providing a steppingstone to public markets.

What estimate her Department has made of the proportion of private capital funding in the UK provided by international sources.

The UK’s vibrant and dynamic capital markets play a key role in supporting growth as identified in the Financial Services Growth and Competitiveness Strategy Call for Evidence - and the Government committed to strengthening UK capital markets and taking forward an ambitious programme of reforms. The Government will publish the strategy in July. As part of these reforms, the government has also recently delivered legislation to establish the Private Intermittent Securities and Capital Exchange System Sandbox (PISCES) to respond to companies staying private for longer and at scale. It aims to make private secondary markets more efficient with a bespoke regulatory framework, while also providing a steppingstone to public markets.

What assessment her Department has made of the potential impact of private capital market growth on institutional investor behaviour in public markets.

The UK’s vibrant and dynamic capital markets play a key role in supporting growth as identified in the Financial Services Growth and Competitiveness Strategy Call for Evidence - and the Government committed to strengthening UK capital markets and taking forward an ambitious programme of reforms. The Government will publish the strategy in July. As part of these reforms, the government has also recently delivered legislation to establish the Private Intermittent Securities and Capital Exchange System Sandbox (PISCES) to respond to companies staying private for longer and at scale. It aims to make private secondary markets more efficient with a bespoke regulatory framework, while also providing a steppingstone to public markets.

What assessment her Department has made of the potential impact of UK companies remaining private for longer on the capital raising lifecycle.

The UK’s vibrant and dynamic capital markets play a key role in supporting growth as identified in the Financial Services Growth and Competitiveness Strategy Call for Evidence - and the Government committed to strengthening UK capital markets and taking forward an ambitious programme of reforms. The Government will publish the strategy in July. As part of these reforms, the government has also recently delivered legislation to establish the Private Intermittent Securities and Capital Exchange System Sandbox (PISCES) to respond to companies staying private for longer and at scale. It aims to make private secondary markets more efficient with a bespoke regulatory framework, while also providing a steppingstone to public markets.

What assessment her Department has made of the adequacy of the UK’s engagement in international financial institutions on debt relief for African countries facing debt distress.

The UK is committed to working with international financial institutions to address country debt vulnerabilities in a timely and coordinated way, providing swift debt treatments where required. We progress this work through international fora and mechanisms, including the G20, Paris Club, IMF and World Bank Boards, and the Global Sovereign Debt Roundtable (GSDR). Through the GSDR – jointly convened by the IMF, World Bank and G20 Presidency – we have engaged closely with newer official creditors, private creditors and debtor countries, and discussions have helped to strengthen collaboration and build greater common understanding on debt issues, including the G20 Common Framework. We fully support the World Bank and IMF’s ‘three pillars’ approach to countries facing liquidity (i.e. short-term payment) challenges. We are pushing the Bank and Fund to accelerate the roll-out in pilot countries and using our voice to encourage others to support We are also actively engaging in the review of the IMF and World Bank’s Debt Sustainability Framework, pushing for more detailed incorporation of longer-term climate and nature risks and investments.

What steps she takes to assess the resilience of the UK's international reserves to potential (a) geopolitical and (b) macroeconomic shocks.

The Exchange Equalisation Account (EEA) holds the UK government’s official reserves. HM Treasury appoints the Bank of England as its agent to carry out the day-to-day management of the reserves. The reserves are managed to ensure that the policy objectives, set out in the EEA Act 1979, can be met at all times. These objectives are: Checking undue fluctuations in the exchange value of sterling;Enabling government payments abroad; andCarrying out the UK’s obligations to the IMF A total of £72 billion of additional financing was provided for the reserves between 2008-09 and 2019-20. The size of the UK's reserves stands broadly in line with other comparable economies. HM Treasury manages the liquidity, credit and market risk of the reserves to ensure that they meet the policy objectives of the EEA.

What the criteria used to evaluate the economic risks associated with ending public ownership of NatWest Group were.

On 30 May 2025, the government sold its remaining shares in NatWest Group (formerly Royal Bank of Scotland, RBS), bringing to an end the public ownership of banks resulting from the 2007-2009 global financial crisis. It is not government policy to pursue state ownership of firms in the financial services sector. The government provided support to RBS, as part of a series of interventions in the financial sector, to protect ordinary savers and businesses from the collapse of a bank which was vital to the functioning of the UK economy and financial system. With the original policy objective - to preserve financial and economic stability at a time of crisis – achieved, returning NatWest to the private sector was the right choice for both taxpayers and the bank, helping to promote financial stability and a more competitive banking sector in the UK. Regarding the resilience of the sector, since the global financial crisis, the government has successfully implemented reforms to strengthen the ability to manage bank failures safely, and to do so in a way that protects the wider economy and minimises the need for taxpayer support. In addition, the development of a more robust regulatory framework since the financial crisis has helped strengthen the resilience and stability of both individual firms and the wider financial system.

What analysis was conducted on the potential impact of ending public ownership of NatWest Group on the resilience of the financial sector.

On 30 May 2025, the government sold its remaining shares in NatWest Group (formerly Royal Bank of Scotland, RBS), bringing to an end the public ownership of banks resulting from the 2007-2009 global financial crisis. It is not government policy to pursue state ownership of firms in the financial services sector. The government provided support to RBS, as part of a series of interventions in the financial sector, to protect ordinary savers and businesses from the collapse of a bank which was vital to the functioning of the UK economy and financial system. With the original policy objective - to preserve financial and economic stability at a time of crisis – achieved, returning NatWest to the private sector was the right choice for both taxpayers and the bank, helping to promote financial stability and a more competitive banking sector in the UK. Regarding the resilience of the sector, since the global financial crisis, the government has successfully implemented reforms to strengthen the ability to manage bank failures safely, and to do so in a way that protects the wider economy and minimises the need for taxpayer support. In addition, the development of a more robust regulatory framework since the financial crisis has helped strengthen the resilience and stability of both individual firms and the wider financial system.

Whether her Department plans to review its approach to state ownership of financial institutions.

On 30 May 2025, the government sold its remaining shares in NatWest Group (formerly Royal Bank of Scotland, RBS), bringing to an end the public ownership of banks resulting from the 2007-2009 global financial crisis. It is not government policy to pursue state ownership of firms in the financial services sector. The government provided support to RBS, as part of a series of interventions in the financial sector, to protect ordinary savers and businesses from the collapse of a bank which was vital to the functioning of the UK economy and financial system. With the original policy objective - to preserve financial and economic stability at a time of crisis – achieved, returning NatWest to the private sector was the right choice for both taxpayers and the bank, helping to promote financial stability and a more competitive banking sector in the UK. Regarding the resilience of the sector, since the global financial crisis, the government has successfully implemented reforms to strengthen the ability to manage bank failures safely, and to do so in a way that protects the wider economy and minimises the need for taxpayer support. In addition, the development of a more robust regulatory framework since the financial crisis has helped strengthen the resilience and stability of both individual firms and the wider financial system.

What steps her Department is taking to ensure investor protection is maintained alongside regulatory reform in capital markets.

The government is committed to reinvigorating our capital markets to deliver growth across the UK and is pursuing ambitious reforms to make our markets even more competitive. These reforms, including the FCA’s new UK Listings Rules and the government’s prospectus reforms, will benefit all firms including fintech firms. The government is committed to an approach to financial services regulation which strikes the right balance between driving UK economic growth and providing robust safeguards for investors. The FCA has a primary objective to protect consumers, and a secondary objective to facilitate international competitiveness and growth.

What assessment her Department has made of the potential impact of capital markets reform on fintech firms.

The government is committed to reinvigorating our capital markets to deliver growth across the UK and is pursuing ambitious reforms to make our markets even more competitive. These reforms, including the FCA’s new UK Listings Rules and the government’s prospectus reforms, will benefit all firms including fintech firms. The government is committed to an approach to financial services regulation which strikes the right balance between driving UK economic growth and providing robust safeguards for investors. The FCA has a primary objective to protect consumers, and a secondary objective to facilitate international competitiveness and growth.