HM Treasury are working with the Department for Business and Trade on the new long-term regulatory framework for Open Banking, which intends to use the Smart Data Clauses in the Data Protection and Digital Information Bill.

HM Treasury is also working closely with the relevant regulators through the Joint Regulatory Oversight Committee to develop the design of the future Open Banking entity. The Committee published its recommendations for the next phase of Open Banking in April 2023, which is available at: https://www.gov.uk/government/publications/recommendations-for-the-next-phase-of-open-banking-in-the-uk.

There is exciting potential to explore Smart Data in further sectors, beyond Open Banking. Government, regulators and industry experts are working together via the Smart Data Council to ensure that the UK continues to be at the forefront of developments in this space.

Before committing to utilise the provisions in Part 3 of the Data Protection and Digital Information (No2) Bill in any given sector, there is work to be done to understand how Smart Data can empower consumers and turbo charge competition.

The AI White Paper emphasised the importance of ensuring that UK regulators and public bodies have the capacity, expertise, and capabilities to implement government’s pro-innovation approach whilst recognising and understanding the risks. This is particularly true for those regulators for which AI falls squarely within their regulatory remit, but also applies to a much wider range of public and regulatory bodies considering the implications AI has across the economy, including the financial services regulators.

The Financial Conduct Authority, the Prudential Regulation Authority, the Bank of England in its regulation of certain financial market infrastructure, and the Payment Systems Regulator, are independent non-governmental bodies responsible for regulating and supervising the financial services industry. Although the Treasury sets the legal framework for the regulation of financial services, the regulators are responsible for developing and implementing rules, including relating to AI, and determining appropriate levels resourcing.

As part of the AI regulation White Paper consultation, the government is engaging closely with the regulators to understand the organisational capacity they need to regulate AI effectively, across technical, regulatory, and market-specific expertise.

I have asked the financial services regulators to respond to you directly on their resourcing for AI regulation.

The Treasury allocates resources based on the priorities of the department, and officials within the Financial Services Group of HM Treasury provide advice to ministers on issues related to the mutuals sector. Resourcing is kept under regular review to ensure priorities are delivered.

The government recognises the value that mutuals bring to the UK economy. That is why we are taking appropriate steps to ensure that the legislative framework in which mutuals operate under is both a modern and supportive business environment.

As part of the Financial Services and Markets Bill, the Government is amending existing legislation so that credit unions in Great Britain can offer a wider range of products and services. In due course the government will also bring forward legislation to amend the Building Societies Act 1986, which will give building societies further flexibility in raising funds and modernise corporate governance requirements.

In addition, the government is supporting Sir Mark Hendrick’s Private Member’s Bill which would allow co-operatives, mutual insurers, and friendly societies further flexibility in determining for themselves the best strategies for their business, relating to their surplus capital and restrictions on the use of these assets.

Furthermore, the government is in active discussions with the Law Commission on options to proceed with a review of both the Co-operative and Community Benefit Societies Act 2014 and the Friendly Societies Act 1992 with a view to launching the reviews in the next financial year.

HM Treasury is the government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.

HMT takes a flexible and dynamic approach to resourcing in order to meet this objective. As a result, there are a number of officials, across groups, working on macroeconomic policy and planning and total numbers of staff fluctuate within and across years.

The number of paid full time equivalent staff in the Treasury was as follows over the past 5 years.

HM Treasury can disclose it has not bought or held any digital assets in the UK government official reserves. The gross official reserves, held in the Exchange Equalisation Account (EEA), are comprised of foreign currency assets (cash, bonds, and notes), gold assets and net positions of International Monetary Fund (IMF) Special Drawing Rights (SDR).Under the EEA Act 1979, the EEA may invest in cash or securities denominated in the foreign currencies represented in the IMF SDR basket.

The Government announced in April 2022 that the Royal Mint intended to create and issue a non-fungible token. The Royal Mint operates as a commercial business, and a non-fungible token would be a collectable digital artwork marketed to consumers as an extension of its existing collectables range. No public funding has been allocated to purchase this product. An update on this work will be provided in due course.

HMT and HMRC hold a large body of Retained EU Law (REUL), primarily in relation to Financial Services and tax (including excise, customs and VAT). A number of officials from both HMT and HMRC work on REUL legislation. This work is carried out as part of officials’ normal business activities, and we do not record the amount of staff time spent specifically on this work.

Treasury ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel.

Treasury ministers and officials have meetings with a wide variety of organisations in the public and private sectors as part of the process of policy development and delivery.

Details of ministerial and permanent secretary meetings with external organisations on departmental business are published on a quarterly basis and are available at: https://www.gov.uk/government/collections/hmt-ministers-meetings-hospitality-gifts-and-overseas-travel.

We can confirm that HM Treasury does not hold information within the scope of your request.

HMT holds a large body of Retained EU Law (REUL), primarily in relation to Financial Services. A number of officials from across HMT work on REUL legislation. This work is carried out as part of officials’ normal business activities, and we do not record the amount of staff time spent specifically on this work.