Category: Press Releases

The press release issued by HM Treasury on 19 November 2002.

Chancellor Gordon Brown today instructed UK financial institutions to freeze any accounts belonging to the Benevolence International Foundation.

Announcing the asset freeze, the Chancellor said:

“At home and abroad we continue to bear down on the funding of terrorism. Benevolence International Foundation (BIF) raises funds for Al Qa’ida and Usama bin Laden. BIF operates as an international organisation with offices around the world and is extensively involved in funding international terrorism.

“I have no doubt that in taking concerted international action today we are cutting off the finances of an extremely threatening fundraiser for terrorism.

“Here in the UK the police have acted swiftly against terrorist suspects, with significant seizures of terrorist funds”.

The press release issued by HM Treasury on 29 November 2002.

HM Treasury and the Attorney General’s office today named Mr Justice Butterfield as head of the review of current practices and procedures relating to disclosure, associated investigation techniques and case management in HM Customs and Excise’ criminal cases, announced by Economic Secretary John Healey on 26 November.

Mr Justice Butterfield will begin work in January 2003, though preparatory work has already begun. He is expected to report to the Economic Secretary and the Attorney in June 2003.

NOTES TO EDITORS

1. Announcement of the review followed the decision of the prosecution not to offer further evidence in a hearing in cases relating to London City Bond being heard at Liverpool Crown Court on Monday 25 November. Further details of the review, including the terms of reference, were announced in HM Treasury press release 123/02.

2. Mr Justice (Neil) Butterfield (60) was educated at Sidney Sussex College, Cambridge. He was called to the Bar by the Inner Temple in 1965 and was appointed Queen’s Counsel in 1985. His practice was in criminal law and he served as Leader of the Western Circuit from 1992 to 1995 when he was appointed a Justice of the High Court, assigned to the Queen’s Bench Division. He served as a Presiding Judge of the Western Circuit from 1997 to 2000.

The press release issued by HM Treasury on 2 December 2002.

Why do we need public services – How much should we spend on them – How do we pay for them – These are among the citizenship issues for young people addressed in a new schools initiative, including an interactive website, launched by Treasury Chief Secretary Paul Boateng today.

‘The Red Box’ teaching pack and website will help pupils to understand the role of public services and the priorities and choices involved, with the opportunity to set their own budgets and balance demands on public spending in an imaginative exercise in community services provision.

It will stimulate interest and discussion of what young people believe is important in their own communities while delivering components of the citizenship and personal and social education curriculum, and developing literacy and numeracy skills in a real life context.

Welcoming the initiative, Mr Boateng said:

“This is an excellent informative and entertaining package which will help young people understand the choices that we are required to make in order to provide schools, hospitals, roads and other public services.

“Understanding crucial public service issues and the decisions that have to be taken are central to democracy and citizenship.

“As adults, we all have to consider these questions and their impact on the quality of life for our families and communities. ‘The Red Box’ initiative will help young people prepare in the classroom to deal with the issues when they leave it.

“It is essential that we help our children to become informed, thoughtful and responsible members of society, aware of their duties as well as their rights. That is why citizenship is now being taught as part of the national curriculum. This pack is intended to give teachers another resource to help them teach it effectively.”

Named after the Chancellor’s famous Budget Box, ‘The Red Box’ initiative will help school pupils aged between 7 and 16 years to understand the importance of public services and the funding of public spending.

It comprises: an interactive website; a budget box pack containing: a 48-page pack for teachers; worksheets for classroom use; case studies and background information; classroom posters; and “Jack’s Guide To Life”, a video that looks at public services in a series of scenarios involving 15-year old Jack and his family.

The pack has been designed for educational use throughout the UK, primarily for teaching citizenship-related subjects, but it also supports the teaching of literacy and numeracy and information and communication technology.

‘The Red Box’ was developed jointly by the Treasury, Inland Revenue and Customs & Excise, working with educational consultants. During its development, Paul Boateng hosted a workshop at No 11 Downing Street where a class of primary school children from a North London school tested the materials and suggested their own ideas to make sure that ‘The Red Box’ reflects their classroom needs.

Inland Revenue Chairman Nick Montagu said :

“People pay taxes as their contribution to the UK’s needs. Taxpaying is a vital element in citizenship. So I am delighted that we are providing this pack for schools: I hope it will stimulate young people to think about the relationship between taxes and providing the public goods that a civilised society requires.”

Customs and Excise Chairman Richard Broadbent said :

“The schoolchildren of today are the citizens of tomorrow, and Customs and Excise are pleased to be part of this valuable initiative to improve understanding of vital citizenship issues. ‘The Red Box’ is an excellent opportunity for agencies at the forefront of the public sector to give pupils an insight into the workings of the sector in an informative, interactive and fun way.”

The press release issued by HM Treasury on 4 December 2002.

Proposals to forge a stronger and more active voluntary and community sector, including an innovative pilot scheme to support volunteering gap years for young people from disadvantaged communities, were outlined today by Chancellor Gordon Brown and Home Secretary David Blunkett.

Speaking at a ‘Giving Campaign’ business breakfast in 11 Downing Street to champion Payroll Giving, Mr Brown and Mr Blunkett launched ‘Next Steps on Volunteering and Giving in the UK’, a paper setting out the Government’s commitment to promote the culture of volunteering and giving in the UK, including:

A commitment to encourage further donations using the range of financial incentives that promote giving, including Payroll Giving – supported by a 10 per cent Government supplement extended for one further year, as announced in the Pre Budget Report, to make sure all charities are claiming what they are eligible for – if, for example, just 2 per cent more employees were encouraged to give through payroll schemes, charities could receive up to £100m extra income.

A ‘Corporate Challenge’ with the corporate and voluntary sectors to look at how to best to promote the current tax incentives and develop new initiatives on employee volunteering; and

Widening opportunities for volunteering and working within local communities through a pilot Gap Year Scheme for young people from disadvantaged communities.

Mr Brown said:

“The Government is committed to ensuring that voluntary and community groups are able to play their full part in our society of the future, by helping them grow, become stronger and more confident. Together we want to build a new, mutually-supportive partnership between individuals, communities, businesses and Government, that continues to promote a culture of giving and volunteering, widens the opportunities for all, and strengthens and empowers our communities to play their part in the forging of a modern Britain.”

The Home Secretary, David Blunkett, said:

“Active citizenship, volunteering and community activity are crucial to the renewal of civic society in this country. We have a rich tradition of mutuality which we can build upon today as we establish a new relationship between Government, individuals and community.”

“The paper the Chancellor and I are launching today sets out how we will further promote a culture of giving and volunteering. But we all – Government, businesses and the voluntary sector – need to play a part. We would like companies to work with us, to help build strong and active communities by encouraging employee volunteering and corporate and individual giving.”

Speaking to an audience of business leaders and voluntary sector representatives, Mr Brown and Mr Blunkett urged business leaders to get behind Payroll Giving and promote it to their employees.

Welcoming the new paper on volunteering and giving, Lord Joffe, chair of the Giving Campaign said:

“This paper is a timely boost for giving and I’m delighted this event was chosen to launch it. Business has a big part to play in supporting philanthropy, particularly through the active promotion of Payroll Giving. I want to see Britain’s biggest companies take inspiration from the Government’s commitment and get behind Payroll Giving.”

The press release issued by HM Treasury on 9 December 2002.

“The UK economy is performing well” and “the UK public finances appear in a better position than those of many other advanced economies” report the International Monetary Fund today in the concluding statement of their recent examination of the UK economy.

The report praises the “impressive results” of the UK’s monetary policy framework. In relation to fiscal policy, the IMF conclude that “the short-term widening of the overall deficit is not a source of concern” and the underlying fiscal position remains “sound”. But they warn of the “risk” to the economy of intensifying public sector wage demands.

The IMF also endorse many of the structural reforms to boost growth the Government has introduced, while acknowledging “the key challenge is to raise total factor productivity”.

Commenting on today’s report the Chancellor Gordon Brown said:

“I welcome this acknowledgement from the IMF that, because of the tough decisions we have taken in the past, the UK remains better placed than others to withstand the impact of increased global economic uncertainty. And it is because we are determined to continue to deliver economic stability and value for money in public services, that we should not put our hard won stability at risk by yielding to inflationary and unaffordable pay settlements that would put low inflation and low interest rates in jeopardy and damage the wider economy.”

The press release issued by HM Treasury on 12 December 2002.

The London School of Economics and Political Science (LSE) has today announced that Sir Howard Davies, currently Chairman of the Financial Services Authority, will become the LSE’s Director on 1st October 2003.

Commenting on Sir Howard’s appointment, the Chancellor, Gordon Brown said:

“I warmly congratulate Sir Howard on his appointment to be the next Director of the LSE. I would especially like to thank him for his outstanding leadership of the FSA over the past five years.  From nine constituent bodies, he has successfully established a single organisation responsible for regulating the UK’s deposit-taking, insurance and investment businesses.  That the FSA is now widely acknowledged as a world leader in its field is very largely thanks to Sir Howard’s drive and vision.”

Arrangements will now be put in place for the appointment of Sir Howard’s successor before October 2003.

The press release issued by HM Treasury on 17 December 2002.

Plans for investing in Britain’s infrastructure over the next three years are published today.

The Treasury has published a White Paper which sets out the Government’s overall investment strategy up to 2005-06. It also summarises the more detailed plans in the investment strategies produced by each department.

Over the next three years, an additional £12 billion of public money will be invested in our public services, including:

£3 billion for improved buildings and equipment for our schools;
£2.5 billion for the NHS to modernise our hospitals and health care facilities;
£2 billion to invest in transport infrastructure; and
£1 billion to improve our housing stock.
By 2006, net investment in our public services is projected to be almost five times higher than in 1997.

The Chief Secretary to the Treasury, Paul Boateng, said:

“Since 1997, the Government has been committed to reversing the legacy of under-investment in Britain’s infrastructure. Much has been achieved, but there is a lot still to do. That is why the 2002 Spending Review will continue this ambitious programme, by providing an additional £12 billion of extra public investment over the next three years. All that extra investment will be matched by reform, to ensure that we get the most for the new money.”

Each main department will shortly be publishing an investment strategy. The purpose of the strategies is to set out:

the public service outcomes that will be achieved with the new funding committed in the 2002 Spending Review;
the significant progress that has been achieved since the last strategies were published in 2000;
the improvements that departments have put in place to improve the management of the assets they own; and
the reforms of procedures and systems put in place to get best value for money from the extra spending.
The White Paper explains the wider reform framework that the Government has put in place, including:

the publication of the National Asset Register – an international landmark in transparency and accountability;
the introduction of full resource accounting and budgeting – making the UK one of the few countries in the world which has to report its financial information in the same way as private sector companies; and
publication of updated Departmental Investment Strategies, reporting on progress and setting out plans for the next three years.

The press release issued by HM Treasury on 17 December 2002.

As part of proposed reforms to reflect improved longevity, modern working patterns, and practice in most private sector pension schemes, future civil servants, teachers and NHS staff may need to work until 65 rather than 60 to get their full pension. The proposed changes would be made by 2006. Present public service employees’ pension rights already earned will be fully protected and existing staff will still be able to retire at 60 years if they wish.

The proposals, set out in the Green Paper “Simplicity, Security And Choice: Working And Saving For Retirement”, would raise the pension age in the civil service and other public service pension schemes from 60 to 65.

It is likely that individual schemes will wish to introduce the new pension age as part of a package of measures for their members, which may offer benefit improvements and can take advantage of new flexibilities and simplification proposed in the Green Paper.

Schemes will consult on how and when the higher pension age and any associated enhancement to benefits could be extended to existing employees, while protecting rights already built up before the change and ensuring that all existing members will be able to receive a pension from the age they currently expect.

The reviews of the public service schemes will be the subject of consultation with unions and staff representatives and are likely to take a few years to complete, but once introduced the higher pension ages would apply to all new entrants.

In many areas there is a demand from employees to work for longer, and it is appropriate to encourage and reward that accordingly. The change would help the financial sustainability of public service schemes.

The press release issued by HM Treasury on 28 February 2002.

A White Paper on European Economic Reform was published today by Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt.

Realising Europe’s Potential sets out a blueprint for economic reform in Europe over the next decade, ahead of the Barcelona European Council next month. It outlines a vision of the EU as a dynamic, job creating and socially inclusive economy and considers the challenging reforms of product, labour and capital markets needed to achieve this vision.

Key proposals include:

– Reforming Europe’s labour market policies to regain the conditions for full employment and tackle social exclusion
– Modernising competition policy and reforming state aid
– Creating a single financial services market and improving access to venture capital.
– Opening up EU energy markets
– Reform of the Common Agricultural Policy
– Boosting innovation by forging closer links between industry and academia

Gordon Brown said:

“Each continent must play its full part in restoring world growth. We can all do more. America by keeping markets open. Japan by radical banking reform. Europe by the reform of capital, labour and product markets we recommend today. These are vital to facing the challenges of global competition, EU enlargement and eight per cent EU unemployment.

“EU enlargement will happen – we welcome it. But we must ensure that it takes place in a way that increases trade, stability and prosperity within the EU, rather than slowing it down.

“At the European Summit in Barcelona next month we must make headway on the economic reform agenda – all member states must play their part.

“At the Lisbon summit two years ago Europe acknowledged that it was not living up to its potential. A ten year goal was set to become the most competitive and dynamic knowledge based economy in the world. Its foundations will be comprehensive reforms to product, capital and labour markets.

“Some progress has been made since Lisbon. Five million new jobs, agreement on a new regulatory framework for communications, rapid progress in increasing internet use liberalising of postal services and a start to reforming state aids.

“But we still have a long way to go. If the EU matched US productivity we would be better off by an average of £5000 per person.

“The White Paper we are publishing today underlines our vision of the EU as a dynamic, job-creating and socially inclusive economy. It sets out challenging reforms of product, labour and capital markets that we believe are needed to realise that goal.”

Patricia Hewitt added:

“A prosperous UK depends on a prosperous Europe. Driving forward the Lisbon agenda is the key to securing this and the EU’s ultimate goal of creating 20 million new jobs in Europe by 2010.

“Key to this ambitious job creation process is better regulation across Europe. This White Paper sets out our commitment to slashing red-tape. We are determined to encourage more intelligent regulation that stimulates enterprise amongst our own business community and attracts investment from across the globe.

“We have made substantial progress at home, but there is a great deal of work to be done across Europe. If we succeed in meeting the ambitious objectives we agreed at Lisbon, then every business stands to benefit financially.

“Today’s White Paper represents an action plan that will deliver huge rewards for our business community – rewards which will deliver every EU citizen a better quality of life.”