Written questions by Anderson.

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.

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.

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 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 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 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 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.

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 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.

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.

What assessment her Department has made of the potential impact of the introduction of the Private Intermittent Securities and Capital Exchange System on SME listings on UK capital markets.

The Private Intermittent Securities and Capital Exchange System (PISCES) seeks to complement the government’s wide ranging and ongoing reforms to boost the UK as a listing destination. PISCES aims to make private secondary markets more transparent and efficient, while also supporting private companies prepare for an IPO in the UK.

What steps her Department is taking to help increase collaboration between UK and Qatari financial institutions in (a) capital markets, (b) sustainable finance and (c) financial technology, in the context of the Memorandum of Understanding on financial services.

The UK and Qatar share a strong trade and investment partnership, with a total trade volume of over £5.6 billion in 2024, contributing to economic growth, diversification, innovation and job creation. To reflect the important role that the financial services sector plays in achieving both the UK Government’s economic growth mission and Qatar’s National Vision 2030, the Chancellor and Qatar’s Finance Minister signed a Financial Services Memorandum of Understanding (MoU) between HM Treasury and the Qatar Ministry of Finance in December 2024. The MoU identifies capital markets, sustainable finance, and fintech as priority areas of interest. Work is underway to identify opportunities for collaboration within these subsectors, and the first annual UK-Qatar Financial Services Working Group will be held later this year.

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 steps her Department is taking to evaluate the long-term fiscal impacts of the UK-Japan partnership.

The Treasury does not produce official economic and fiscal forecasts. The independent Office for Budget Responsibility (OBR) is responsible for producing forecasts of the UK economy. The relationship has strengthened in recent years, following the 2020 Comprehensive Economic Partnership Agreement (CEPA) and the 2023 Hiroshima Accord, underlining the importance of the UK's relationship with Japan. These agreements have led to stronger economic ties, promoted trade and investment, and targeted mutual economic growth and resilience.

What assessment her Department has made of the UK’s fiscal resilience in the context of trade liberalisation with Indo-Pacific partners.

The Treasury does not produce official economic and fiscal forecasts. The independent Office for Budget Responsibility is responsible for producing forecasts of the UK economy. Growth is the central mission of the government and can support the stability of the public finances. Free Trade Agreements (FTAs) can help to deliver growth, by reducing the costs of trade between partner countries and driving a more efficient allocation of resources within sectors, as well as wide range of other macroeconomic gains. The UK recently agreed a comprehensive FTA with India and acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in December 2024. The UK also has FTAs with Australia and New Zealand. As the Business and Trade Secretary announced in a Written Ministerial Statement in July 2024, the government intends to agree a deal with the Republic of Korea as part of its FTA negotiations programme.

What the estimated administrative cost savings to HMRC are from tax simplification measures announced in Spring 2025.

The tax simplification measures announced will support economic growth by reducing burdens on businesses, employers and employees. The ongoing Spending Review will, once collectively agreed by Cabinet, set out HMRC’s settlement, including the administrative cost savings that HMRC will deliver through the simplification measures announced on 28 April. The Spending Review will be presented to Parliament in the usual way on 11 June.