Commons Sense

House of Commons · Ministers' Questions

Financial Services Reform

Tuesday 9 September 2025 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 1 Not answered 0

Key points

  • Oliver Ryan welcomed the Minister to her new role and discussed the importance of small businesses and manufacturers in Burnley.
  • John Glen welcomed the Economic Secretary and inquired about issues related to liquidity in the London Stock Exchange.
  • Mark Garnier congratulated the Minister and highlighted the importance of the UK banking sector to the economy.

Topics (select to filter)

Questions & Answers

Q1 Oliver Ryan Labour (Co-op) Burnley
Economy Business & Trade
Context

Small businesses and manufacturers in Burnley face challenges accessing finance, which is crucial for growth and job creation.

Question

I welcome my hon. Friend to her new role. Small businesses in Burnley, Padiham and Brierfield are the lifeblood of our community, providing jobs and livelihoods to our people. Growing manufacturers and exporters such as the brilliant Barnes Aerospace in Burnley are doing an excellent job at taking Britain across the world. Will the Economic Secretary set out what the Government are doing to support small and medium-sized business, particularly our manufacturers, with access to finance?

Answer from Lucy Rigby (Economic Secretary to the Treasury)

My hon. Friend raises an important issue, and it is very good to hear him championing businesses in his constituency. The Government published the small business strategy in July, which sets out how we will make the UK the best place to start and grow a business and puts SMEs at the heart of our growth mission. That includes tackling the barriers that SMEs face when accessing finance. That is why the Government are committed to increasing the total financial capacity of the British Business Bank to £25.6 billion and introducing a new business growth service, which will make it easier and quicker for businesses across the UK to get the help, support and advice they need to grow and thrive.

Answered
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Q2 John Glen Con Salisbury
Economy
Context

Concerns have been raised about liquidity and trading practices in the London Stock Exchange, with only 15% of share trades attracting stamp duty.

Question

I warmly welcome the new Economic Secretary to her role. Over the summer I looked at issues around liquidity in the London Stock Exchange and the deterioration that has happened. Given that only 15% of share trades attract stamp duty and much more trading is conducted in a dark environment, will the new Economic Secretary meet with me to hear my concerns and the concerns of those in the City so that we can move forward in a positive direction?

Answer from Lucy Rigby (Economic Secretary to the Treasury)

I pay tribute to the right hon. Member’s work in this area, and I would be more than happy to meet with him to discuss those concerns.

Answered
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Q3 Mark Garnier Con Wyre Forest
Economy Taxation
Context

The UK banking sector contributes significantly to the economy but faces higher effective tax rates compared to competitors in other financial hubs. Concerns have been raised about potential increases in bank taxes.

Question

I also congratulate the hon. Member on her elevation to Economic Secretary to the Treasury; I am sure she will do very well. The UK banking sector provides a valuable service to our economy, keeping money in circulation, funding business and mortgages and all the rest of it. The financial services sector is the UK’s biggest export sector. According to UK Finance, UK banks generate around £45 billion in tax every year, but because of things like the bank levy, UK banks now pay an effective rate of around 46%, which is higher than competitors in New York, Frankfurt, Dublin and Singapore. The Chancellor of the Exchequer has managed to dig her own £30 billion black hole in the economy, but can the Minister reassure the City of London and this House that there are no plans to increase taxes on our banking and wider financial services sector in the upcoming Budget in November?

Answer from Lucy Rigby (Economic Secretary to the Treasury)

I am grateful for the lecture, but I note that it was the Conservatives who introduced the bank levy. The Government are committed to responsibly promoting the growth and competitiveness of the sector, and of course we keep the bank tax regime under review.

Partly answered

Not addressed: No explicit reassurance about no plans for tax increases

How: Keep The Bank Tax Regime Under Review

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