Category: Press Releases

The press release issued by HM Treasury on 19 May 2004.

HM Treasury, the Financial Services Authority and the Bank of England have today published two documents on the future of financial services in Europe.

The EU Financial Services Action Plan: Delivering the FSAP in the UK, outlines the steps being taken by the UK authorities to implement the large number of EU measures – over 20 – that are likely to affect the financial sector over the next three to four years.

The second document, After the Financial Services Action Plan: A new strategic approach, considers what can and should be done to further integrate the Single Market in financial services. It also highlights the success of the UK’s regulatory environment for financial business; recent successes in Europe in negotiating the Investment Services Directive the Transparency Directive and the decision to locate the Committee of European Banking Supervisors in London.

The Chancellor of the Exchequer, Gordon Brown, said:

“To be fully equipped for the global economy all of us must ensure that the new enlarged Europe must become more open, more outward looking, and more flexible, competitive and reforming – in product and capital markets, employment policy, our attitude to taxation, and in monetary and fiscal policy, and trade.

“The financial sector is a key part of the European economy and reform in financial services is essential to economic reform in Europe, to contribute to economic growth and employment.

“Today, we face the challenge of more competitive global markets, in finance especially.  Europe must respond to this challenge to become and remain competitive.  An efficient, competitive and integrated Single Market in Europe is a key element, but it must always recognise that financial markets are global.

“We will support the European Financial Services Action Plan as it improves recognition of financial services providers in insurance, banking and capital markets. “

The press release issued by HM Treasury on 21 May 2004.

Financial Secretary Ruth Kelly has today given the Financial Services Authority (FSA) leave under the Financial Services and Markets Act 2000 to recognise Eurex US as a recognised overseas investment exchange.

The decision was taken after the Treasury took advice from the Director General of Fair Trading, who concluded that the rules of Eurex US do not appear likely to restrict, distort or prevent competition to any significant extent.

Ruth Kelly said:

“Eurex US is a welcome addition to the list of UK recognised overseas investment exchanges and is further proof of London’s status as a leading international financial centre.”

The press release issued by HM Treasury on 26 May 2004.

The Chancellor of the Exchequer, the Rt Hon Gordon Brown MP, congratulated the UK’s automotive industry on the “vital contribution” it makes to the UK’s economy. The Chancellor paid tribute to the industry during a visit to the Sunday Times Motor Show Live at the NEC in Birmingham today.

The Chancellor said:

“I’m delighted to be visiting Motor Show Live to see at first hand what a great job the UK’s automotive sector is doing and pay tribute to the vital contribution it makes to our national economy.

“And I can tell you today that the ten year science and innovation plan we will announce in the next few weeks will be a major boost for manufacturing strength.  Building on the Manufacturing Advisory Service, capital allowances, corporation tax cuts and the Research and Development tax credit, we will seek to make Britain the best location for new investment and innovation.  And we will raise the level of science funding as a share of national income in the next spending review period.

“The motor industry has risen to the challenges of globalisation and international competition and not just survived, but thrived.

“The UK automotive manufacturing sector contributes some £8.5 billion to the UK economy and accounts for almost 10% of total UK exports of goods.

“Almost 250,000 people across the country are employed in the manufacture of vehicles and components in some 3,200 businesses. Another 544,000 work in the automotive retail sector.

“And the motor industry makes a major contribution not just to employment and exports, but to innovation in our economy – investing £1.2 billion a year in research and development – and to training and skills as well with over 20,000 thousand young apprenticeships.

“The motor industry has won for Britain huge amounts of inward investment with some of the world’s leading manufacturers choosing to locate new plants in the UK.  68% of the vehicles produced in the UK are exported.  And companies in the supply chain trade with customers and suppliers right around Europe.

“That is why our commitment as a Government is that we will make the case for our membership of the European Union – which accounts for 55 per cent of the UK’s trade – for the advantages it brings to Britain, and for Britain being a leader in an enlarged Europe.

“The issue is making the most of our membership in Britain’s interest against those who would, for dogmatic reasons, detach Britain from Europe and put at risk many of the three million jobs that arise from our trade with Europe.

“I am particularly pleased to be able to pay tribute to the contribution the automotive sector makes to our country here in the West Midlands.

“40% of the UK’s income generated by the motor industry is generated here in the West Midlands. The automotive sector provides jobs for around 65,000 employees in the region with many more jobs provided in the supply chain.

“And the successes we celebrate here have helped create 80,000 jobs in the West Midlands alone since 1997.”

The press release issued by HM Treasury on 18 June 2004.

HM Treasury and Financial Services Authority (FSA) today published a joint consultation document on proposals for UK implementation of the EU Market Abuse Directive .

The Directive sets out a common framework for tackling insider dealing and market manipulation in the EU.

Financial Secretary, Ruth Kelly said:

“The Treasury welcomes the Directive’s aim of protecting investors and promoting confidence in financial markets by establishing a framework for the prevention of market abuse.  However, the proposals are complex and it is therefore important that all parties engage in the consultation process.”

This joint consultation document seeks comments on the proposed  legislative and FSA Handbook changes to achieve implementation.  Comments on the proposals generally or any particular aspect of them would be welcomed.

The closing date for responses to the consultation is 10 September 2004.

The press release issued by HM Treasury on 22 June 2004.

The Chancellor of the Exchequer has today appointed the Right Honourable Terence Anthony Gordon Davis to be Steward and Bailiff of the Three Hundreds of Chiltern.

The press release issued by HM Treasury on 28 June 2004.

Sir Derek Morris today published a consultation document seeking views from all interested parties on his review of the actuarial profession.

Issues which Sir Derek intends to focus on include:

• the role of the appointed actuary
• standard setting and monitoring
• audit, peer review and scrutiny
• disciplinary procedures
• the role of the Government Actuary’s Department

Sir Derek Morris said:

“I hope that all interested parties will feed in their views on all aspects of the Review, and I look forward to discussing the issues with members of the actuarial profession, their customers and other interested parties.”

The closing date for responses to the consultation is 10 September 2004. Sir Derek Morris will publish an interim assessment in the autumn and will submit the final report, with recommendations for change, to the Government in Spring 2005.

The press release issued by HM Treasury on 4 July 2003.

A £1 billion boost for local government, backing enterprise for the regions, was launched today, as John Prescott and Gordon Brown launched a consultation paper on the new Local Authority Business Growth Scheme at the Local Government Association Conference in Harrogate.

The scheme, which will reward local authorities for encouraging business in their area, will allow councils to retain money from business rates where there is increased economic growth in their area.  It should start in April 2005.

The Deputy Prime Minister said:

“This scheme should give councils a real incentive to work together with business to create enterprising and thriving communities.  We want to create a win-win situation where flourishing businesses will benefit everyone in the community.”

The Chancellor said:

“For the first time, all of us in partnership can each secure financial benefits from creating new businesses. Based on historical data, we estimate that, as a result of this measure, local authorities could gain up to £1 billion over the next three years – showing that the next stage of our employment and growth strategy for Britain can only succeed with greater initiative and engagement by local areas. Further reforms in the Pre-Budget Report will reflect this.”

Responses to the Consultation Paper are invited by the end of October.

The press release issued by HM Treasury on 28 October 2003.

Detailed proposals for the Child Trust Fund (CTF) were published today.  As the Chancellor announced in Budget 2003, each child born on or after 1st September 2002 will receive an initial endowment of £250 rising to £500 for the poorest children – a reform which is progressive and universal, benefiting every child and with more to those who need help most.

Amongst the measures announced today are:

• The Government will make a further payment when children are seven years of age. The amount of this payment will be confirmed at a later date.
• Family and friends will be able to contribute up to £1200 a year between them to the fund.
• It will not be necessary to make a specific claim for the CTF – access will be through the child benefit system.
• Providers will be able to offer a variety of accounts. However all providers must offer a stakeholder account – a low cost risk-controlled equity account.
• All income and capital growth will be tax exempt.
• Special arrangements will be made for children in care.

The fund will help to build up a stock of assets for the young person to reinvest or use when they reach 18 years of age, giving them added security and opportunity in adulthood.  Financial education will also help individuals to make better financial choices throughout their lives.

Commenting on the proposals, Financial Secretary Ruth Kelly said:

“The Child Trust Fund will ensure that children will have assets of their own to help them get a better start to their adult life.  It is a leading example of the Government’s commitment to an active welfare strategy based on the principles of security, opportunity and responsibility for all.

“It will also give young people experience of savings and investment opportunities and help them to manage their finances better in later life.”

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

A major review of the organisations dealing with tax policy and administration was announced by Chancellor Gordon Brown today.

The review will report to Treasury Ministers and be chaired by Gus O’Donnell, Permanent Secretary to the Treasury working with the revenue departments and their Chairmen. It will examine the best organisational arrangements to achieve Government’s tax objectives both now and into the future.

Launching the Review, the Chancellor said:

“Since 1997, Inland Revenue and HM Customs & Excise have worked effectively with the Treasury to play a key role in support of this Government’s reforming agenda. Their record is one of success and a tribute to the staff of the revenue departments and to their Chairmen, Sir Nicholas and Sir Richard. The revenue departments do a first rate job and this review is intended to build on their success to ensure we make the best of the resources that we have.

“The primary focus of the review will be making public service delivery more effective and efficient. It will be conducted in discussion with unions and other stakeholders.”

Specific points the review will cover will include:

• ways to enhance service delivery to taxpayers and how these are most effectively ensured.  Inland Revenue and Customs & Excise together deliver some of the most important functions for the Government, for the public, and for the business community.  They have a very large number of customers in common.  The review will have a particular remit to examine whether, through closer working between the revenue departments or through organisational change, costs to honest taxpayers and compliance costs to businesses can be reduced;
• the coherence of administrative systems, including information and efficient use of resources across the broad area of tax administration taking into account future technological developments which will open new avenues for enhanced services;
• how best to ensure consistent and effective enforcement of the law against those who do not pay their fair share, particularly those who make a business out of cheating the tax system.  As part of this review we will examine work being done separately by the Government on the links between tax organisations and the law enforcement agencies;
• the most appropriate structure for delivering policy advice to Ministers.  Currently officials working on strategic tax policy questions are spread across three departments.  A more co-ordinated approach to fiscal policy advice is desirable, and the review will look at how we can best create a focus for tax policy work;
• a new framework for accountability for those working on tax, to set out more clearly the roles and responsibilities of all those involved.  Greater clarity will provide better certainty both for officials and Ministers.  The review currently being conducted by Gus O’Donnell which was announced in the Government’s response to the Fourth Report 2003 of the Treasury Select Committee will form part of this work.

The press release issued by HM Treasury on 7 July 2003.

A review looking into how Government can support regional and national  Museums more effectively was launched today by Chief Secretary to the Treasury Paul Boateng. The review aims to help museums and galleries acquire important works of art that might otherwise be sold abroad.

A consultation paper “Saving Art for the Nation” published today examines the existing taxation and funding arrangements which affect the ability of museums and galleries to acquire and display works of art and culture. The findings of the consultation will contribute to the review.

The Chief Secretary has asked Sir Nicholas Goodison who was until recently Chairman of the National Art Collections fund, to lead the review.

Paul Boateng said:

“The Government recognises the importance of ensuring that important works of art stay in the country so that we can all enjoy and learn from them. We already work closely with the arts world to ensure that where possible museums and galleries are able to display precious works of art. The review aims to ensure that the support on offer is practical, well-targeted and value for money.”

Estelle Morris, Minister for the Arts, supporting the review said:

“I welcome the launch of this review of support for acquisitions. DCMS is working to make progress and is looking forward to finding some practical solutions to prevent the loss of cultural objects that are important to this country.”

Sir Nicholas Goodison, said:

“Acquisitions refresh and enrich the public collections, which are a crucial part of our cultural life. I greatly welcome the Government’s wish to look at these subjects. I look forward to hearing everyone’s views.”