Lord Pearson of Rannoch – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Lord Pearson of Rannoch on 2016-06-07.
To ask Her Majesty’s Government, further to the Written Answer by Lord Price on 1 June (HL107), (1) why HM Revenue and Customs collects data on the currency of invoicing for trade with non-EU countries but not for EU countries, and (2) how they and the Bank of England manage sterling interest and exchange rates in the absence of such data.
Lord O’Neill of Gatley
HM Revenue and Customs collects data on the currency of invoicing for trade with non-EU countries as a basis for calculating customs duty under customs and statistical law. It is published in the UK on a dedicated website (www.uktradeinfo.com) and available to all. This data is also used by the European Institutions (e.g. the European Central Bank) to monitor the share of the Euro in international trade. There is no legislative requirement for this information to be collected for trade with EU countries.
The UK’s monetary framework is clear, the independent Monetary Policy Committee of the Bank of England sets Bank Rate to target 2% inflation. The UK does not have an exchange rate target, the exchange rate is allowed to adjust flexibly, and movements in sterling are determined by market forces.
