Category: Press Releases

The press release issued by HM Treasury on 10 March 2003.

The Chief Secretary to the Treasury, Paul Boateng, today took part in the first ever quadrilateral meeting of UK Finance Ministers. At the meeting hosted in Cardiff by Welsh Assembly Government Finance Minister Edwina Hart, Mr Boateng also met with, the Scottish Executive Deputy Minister for Finance and Public Services, Peter Peacock, and Ian Pearson the Northern Ireland Office Finance Minister, together with Scotland Office Minister Anne McGuire and Wales Office Minister Don Touhig.

Welcoming the first in a series of regular quadrilateral meetings, Paul Boateng said:

“The finance ministers in Scotland, Wales and Northern Ireland and I share a common objective of improving public service delivery and strengthening economic development and productivity across the UK.

“I am therefore delighted that Edwina Hart is hosting this first meeting of the finance ministers in Cardiff today.

“The fact is that devolution is working and working well. Devolution means that there is more scope for policy innovation and for policies that reflect local priorities. The purpose of the meeting is to encourage an exchange of views and information so that we can all learn more about what is working best in our respective areas.”

“Our prudent management of the economy has delivered low inflation, low interest rates, low unemployment and large increases in public spending in Scotland, Wales and Northern Ireland. In the Pre Budget Report we announced a range of measures, which will promote fairness and economic prosperity in Scotland, Wales and Northern Ireland, including for example new Enterprise Areas which will encourage enterprise in the poorest parts of the UK.

“And we have just published a consultation document on the future of the European Structural Funds after enlargement, which sets out the Government’s vision of a strong and devolved regional policy.

“This meeting is a concrete example of the close partnership which exists between the Treasury and the devolved administrations.  I myself have recently visited Belfast, Swansea and Glasgow and seen at first hand vibrant examples of public sector projects and companies which are at the leading edge of providing services in the UK and indeed the world. I am delighted to have this opportunity to learn more from my colleagues in Scotland, Wales and Northern Ireland about devolution in action.”

Hosting the meeting, Welsh Finance Minister Edwina Hart said:

“I am delighted to have this chance to discuss the opportunities that devolution has offered in Wales and to explain how the Assembly Government has responded with its own innovative and distinct policy solutions. It is also very useful to maintain close working relationship with colleagues from Scotland and Northern Ireland as there is a good deal we can learn from each other.”

Scottish Executive Deputy Finance Minister Peter Peacock said:

“These meetings are a valuable opportunity for us to discuss issues of common concern, and to exchange ideas. They are part of the stable devolution framework that has been established since 1999. They demonstrate how the devolved administrations and the UK Government can work together to improve public services and aid economic growth.”

Wales Office Minister Don Touhig said:

“I am delighted that Wales was able to host the first of these meetings, which will provide a further strengthening of the devolution settlement.”

Scotland Office Minister Anne McGuire said:

“This meeting is an excellent opportunity for all administrations in the UK to discuss common interests. By sharing our experiences we can continue to ensure that we are doing the best for public services and economic development.”

The press release issued by HM Treasury on 26 March 2003.

A mould-breaking million-pound advertising campaign was launched today by Paymaster General Dawn Primarolo.

It explains how the new Child Tax Credit starts being paid direct to the main carer – usually the mother – instead of the main earner – usually the father.

And, with nine out of ten families with children eligible, it urges those still to apply to do so.

The campaign will include:

• Double-page spread ads in national newspapers – appearing from tomorrow – showing how the tax credits transfer from men to women.
• Smaller advertisements in specialist magazines explaining that the cash men are losing will instead go straight to their partner.
• advertisements in local newspapers.
• Billboards nationwide

The new campaign follows an opinion poll by ICM Research showing that two-thirds of people believe that all support for children should be paid to the mother, and only one per cent think it should be paid to the father. Even the vast majority of men believe all support for children should be paid to the mother – 64 per cent believed that it should be paid to the mother and only 1 per cent that it should go to the father.

70 per cent of all those polled said that the mother is most likely to ensure that the money goes to the needs of the children. And while 28 per cent said it made no difference which parent received the money, only two per cent said fathers would be most likely to ensure that the money goes to the needs of the children.

Launching the new advertising, Dawn Primarolo said:

“Women need to know that they will be getting the money direct and they need to know as well that if they haven’t already applied they should do so straight away.

Nine out of ten families are eligible and in a family with two kids the mum could receive up to £65 a week in Child Tax Credit alone. Some could get much more. It’s the biggest boost for mums since the introduction of Child Benefit. It’s vital that everyone knows about it and claims it.”

The press release issued by HM Treasury on 30 April 2003.

The Treasury, together with the Compact Working Group, today launched the consultation document on proposals for how to use the new £125 million futurebuilders fund which was announced as part of the 2002 Spending Review.

The futurebuilders fund will assist the voluntary and community sector to deliver public services, developing capacity to deliver in areas such as:

• health and social care;
• crime and social cohesion;
• education and learning;
• support for children and young people.

Representatives of the voluntary and community sector worked more closely with the Government than ever before in drawing up the proposals for the consultation. These include:

• a move from grant funding to longer term investment for the future. A key obstacle to the sector has been the lack of access to capital to invest for future development.
• offering a broader range of finance to include loans, loan guarantees, or a mix of these with grants. Loan finance would enable the fund to go further and have a longer term benefit.
• encouraging organisations to join with others to make the most of other funding streams. Where funding streams already exist, futurebuilders may be able to complement that funding to extend the service to a wider range of users.

Paul Boateng, Chief Secretary to the Treasury said:

“The role of voluntary and community organisations and social enterprises is central to this government’s commitment to delivering world class public services.  Over the last six years, real strides have been made to strengthen the partnership between government and the sector in achieving our shared vision.  But there is a lot more to do to ensure that this partnership works to the best effect.  This new futurebuilders fund will support strategic investment to enable the sector to realise its own ambitions in providing the best services to its users.”

Sir Michael Bichard, Chair of the Compact Working Group said:

“From the very outset, futurebuilders has been an innovative and unique undertaking.  The sector has been in the driving seat in designing the fund, working through the Compact Working Group.  The proposals in this consultation document are the results of the work of the group over recent months.  It is our joint assessment of what is needed and how the fund would work in practice.”

The press release issued by HM Treasury on 2 May 2003.

Chancellor Gordon Brown today instructed UK financial institutions to freeze accounts belonging to Asif Mohammed Hanif and Omar Khan Sharif. Israeli police are continuing to investigate the bombing which took place in Tel Aviv on Wednesday.

The Chancellor said:

“We must remain constantly vigilant in all areas in bearing down on terrorism and the sources that finance it.  We have taken immediate action today to ensure that no UK funds belonging to those suspected of being responsible for this atrocity can be used to support terrorism.”

The press release issued by HM Treasury on 29 May 2003.

Chancellor Gordon Brown today instructed UK financial institutions to freeze all assets belonging to Al-Aqsa Foundation following intelligence reports linking the organisation with terrorist activity. The action has been taken in conjunction with the United States and other international allies.

Gordon Brown said:

“Recent terrorist atrocities in Saudi Arabia and Morocco show that we must remain constantly vigilant and bear down strongly on terrorism and the people who fund it. Today’s action, taken in coordination with our international allies, will ensure that no UK funds belonging to the Al-Aqsa Foundation can be used to support terrorism.”

The press release issued by HM Treasury on 29 May 2003.

Britain, Europe and the US stand to gain substantially from transatlantic trade liberalisation, two studies published today show. The studies, commissioned jointly with the Dutch Ministry of Finance, suggest that the EU could gain over €100 billion per annum through liberalisation of the EU-US trade relationship. The gains for the US could be as much as $75 billion per year.

The studies also highlight the new challenges to transatlantic trade – in particular, arguing that the EU and US should consider strengthening regulatory dialogue and cooperation, to help prevent  ‘non-tariff’ barriers, such as domestic regulation, becoming an increasing source of trade disputes.

Commenting on the studies Chancellor Gordon Brown said:

“The new debate about Europe’s future is no longer – as it was in the 1980s – how a single trade bloc organises its internal markets, independent of the rest of the world, but how all of Europe, thinking globally, can be outward looking, meet global competition and reform to do so – and thus benefit from global change.

“In the last ten years, Europe’s trade with the rest of the world has increased faster than output. During that time European investment in America has increased 10-fold to around $250 billion. In recent years, more European capital has been invested annually in America than US capital in Europe.”
“The transatlantic economic relationship accounts for up to $2.5 trillion of commercial transactions each year, including $500 billions of foreign trade, and provides employment to over 12 million people.   We should not allow trade disputes to continue interfering with such vital parts of our economies.”

“Instead, Europe and America should patch up their trade differences, move beyond the day-to-day issues and make a greater effort to tackle the barriers to a fully open trading and investment relationship, strengthen joint arrangements to tackle competition issues and engage in dialogue about the approach to financial services regulation.”

“As a first step I believe the US administration and the EU Commission should work with the UK and other Member States to produce a detailed analysis of the benefits of greater trade and investment liberalisation.”

“But the scope for bilateral cooperation should be additional to, not a substitute for, multilateralism. I welcome the progress made by Commissioner Lamy.  Europe and the US must demonstrate the political will to make urgent progress in the Doha trade discussions.  In response to the challenges of globalisation, we must lead in the World Trade Organisation. A joint commitment to ensure the success of the multilateral trade agenda should be an integral element of progressively greater economic cooperation between the EU and the US.

“I call on the US administration, the European Commission and Greece, as holders of the EU Presidency, to use this summer’s EU-US summit to make a significant commitment to the success of this year’s WTO meeting in Cancun.

“The prize of being partners rather than fortress Europe versus fortress NAFTA is that each of us stand to gain much more from globalisation.

“The US-EU studies we are publishing today show it is not a choice between Europe and America, rather each needs the other for economic prosperity, and Britain will continue to work with others as leaders in Europe in securing the full benefits of globalisation. The more Europe and America work closely together the better it is for Britain, Europe and the world.“

Based on the recommendations of these studies, the UK believes that:

• There should be detailed analysis of the potential gains from liberalisation to provide a framework for bilateral efforts, identifying existing barriers to trade, and areas for priority action;
• There should be improved regulatory dialogue between the EU and US authorities on financial services to catch early those regulatory issues affecting each other’s jurisdictions;
• The EU and US should renew their commitment to the Transatlantic Business Dialogue –  to help move forward with liberalisation;
• There should be renewed commitment to the WTO multilateral trade agenda.

The EU-US bilateral summit in June provides an opportunity for Europe and the US to take these ideas forward.

The press release issued by HM Treasury on 9 June 2003.

Chancellor Gordon Brown today announced the appointment of Stuart Etherington, Sir Jeremy Beecham, Sir Graham Hall and David Harker to the Standing Committee on euro Preparations.

The Chancellor said:

“The new members all bring special areas of expertise – local government, the voluntary sector, the consumer sector and regional development – to the Committee. I am sure that they will all make a significant contribution to future planning  by the committee on euro preparations.”

The Committee leads planning on Euro preparations across the whole economy.

The press release issued by HM Treasury on 12 June 2003.

Professor Nicholas Stern is to be the new Second Permanent Secretary and Managing Director, Budget and Public Finance, the Treasury announced today.

Professor Stern will take over from Sir Robert Culpin, who is retiring in the autumn, and will also replace Gus O’Donnell, the Treasury’s Permanent Secretary, as head of the Government Economic Service.  The appointment will take effect from 29 September 2003.

Nick Stern, 57, has been Chief Economist and Senior Vice President at the World Bank, Washington D.C. since July 2000.  From 1994 until late 1999 he was Chief Economist and Special Counsellor to the President at the European Bank for Reconstruction and Development (EBRD).

Chancellor of the Exchequer, Gordon Brown said:

“I am delighted to welcome Nick Stern to the Treasury as Second Permanent Secretary.  Nick is a first class economist with a global reputation and enormous experience.  He will be a huge asset to the Treasury and Government economic policymaking”.

Gus O’Donnell, Permanent Secretary to the Treasury, said:

“Nick is one of the world’s leading economists.  He has an outstanding track record in both the academic world and in front line economic policymaking and delivery at the World Bank and the EBRD.  That someone of his calibre has chosen to come here is a tribute to the Treasury and its reputation.”

World Bank President Jim Wolfensohn commented:

“While we will miss Nick, we also recognize that this is a tremendous honour and opportunity for him. He has made an outstanding contribution to the work of the Bank over the last three years that we, and all our stakeholders, appreciate.

“Amongst other things, he has played a key role in helping us to develop the Bank’s strategic framework, and to maintain our focus on poverty in all its dimensions. He has also been an effective advocate on issues of economic growth and trade.”

Prior to 1994, Professor Stern’s career was mostly in academic life. After starting his teaching career at Oxford, he went on to hold chairs at the London School of Economics and Warwick (he is at present on leave from the LSE).  He has taught and researched at the Massachusetts Institute of Technology, and in France, India, China and Japan and at the International Monetary Fund.  His books include works on public finance, tax reform, the theory of economic growth, and the role of the state.

The press release issued by HM Treasury on 17 June 2003.

HM Treasury and the Office of the Deputy Prime Minister in conjunction with the Local Government Association have today issued guidance for local authorities on euro preparations. The guidance offers advice on high-level business and communications issues that local authorities need to consider in their preparations for the euro.

Chancellor Gordon Brown said;

“As major service providers, community leaders, employers and key communicators to citizens, local authorities would have a critical role to play during any changeover to the euro. The publication of this guidance and the third outline National Changeover Plan will lead to a period of information and discussion throughout the country. As part of wider public sector preparations, it is now important that local authorities consult local communities and develop their own changeover plans.”

The Deputy Prime Minister added;

“I welcome the issue of guidance to local authorities on euro preparations. This, along with the appointment of Sir Jeremy Beecham, Chair of the LGA, to the Chancellor’s Standing Committee on Euro Preparations, highlights the important role local government would play during any changeover and reaffirms our commitment to work in partnership with and consult local government on preparations for the euro.”