Category: Press Releases

The press release issued by HM Treasury on 26 June 2001.

The Chancellor of the Exchequer, Gordon Brown, has decided the following allocation of Ministerial responsibilities:

The Chief Secretary, The Rt Hon Andrew Smith MP

• Public expenditure planning and control (including local authorities and nationalised industries finance);
• Value for money in the public services, including Public Service Agreements (PSAs);
• Departmental Investment Strategies including Capital Modernisation Fund and Invest to Save budget;
• Public/Private Partnerships including Private Finance Initiative;
• Procurement policy;
• Public sector pay;
• Presentation of economic policy and economic briefing;
• Welfare reform;
• Devolution;
• Strategic oversight of banking, financial services and insurance; and
• Resource Accounting and Budgeting.

The Paymaster General, Dawn Primarolo MP

• Strategic oversight of taxation as a whole, including overall responsibility for the Finance Bill, closer working between Inland Revenue and Customs & Excise (including with other departments), and European and international tax issues;
• Departmental Minister for Inland Revenue and the Valuation Office;
• Personal taxation (except company car tax, savings and pensions), national insurance contributions and tax credits;
• Direct business taxation and tax aspects of the enterprise agenda, including: corporation tax, North Sea taxation, share schemes, small firms and venture capital;
• Capital Gains Tax;
• Inheritance Tax;
• Treasury interest in childcare issues;
• Regulatory Reform Minister for the Chancellor’s departments; and
• Welfare Reform Group (welfare fraud).

The Financial Secretary, The Rt Hon Paul Boateng MP

• Departmental Minister for Customs and Excise;
• Environmental issues, including tax and other economic instruments, urban regeneration and transport taxes, including climate change levy, aggregates levy, landfill tax, road fuel (and other mineral oil) duties, taxation of company cars, vehicle excise duty, air passenger duty;
• VAT; alcohol and tobacco duties; betting and gaming taxation;
• Support to the Paymaster General on the Finance Bill;
• Productivity and enterprise (working with PMG on tax issues);
• Competition and deregulation policy;
• Science, research and development;
• Export credit;
• Welfare to Work and social exclusion issues;
• Charities and charity taxation;
• Support to the Chancellor on international issues; and
• Support to the Chief Secretary on public spending issues (including Parliamentary financial business, Public Accounts Committee, National Audit Office and general accountancy issues).

The Economic Secretary, Ms Ruth Kelly MP

• Banking, financial services and insurance, and support to the Chief Secretary on the implementation of the Financial Services and Markets Act;
• Financial services tax issues, including ISAs, taxation of savings, Stamp Duty, Insurance Premium Tax and pensions;
• Foreign exchange reserves and debt management policy;
• Support to the Chancellor on EU issues;
• EMU business preparations;
• Economic reform in Europe;
• Responsibility for National Savings, the Debt Management Office, National Investment and Loans Office, Office for National Statistics, Royal Mint and the Government Actuary’s Department;
• Personal savings policy;
• Support to the Chief Secretary and Financial Secretary on public spending and productivity issues;
• Support to the Paymaster General on the Finance Bill;
• Womens’ issues; and
• Departmental Minister for HM Treasury.

The press release issued by HM Treasury on 28 December 2022.

As millions of people enjoyed Christmas festivities this year, for 3,275, Christmas Day was the perfect time to file their Self Assessment tax return, HM Revenue and Customs (HMRC) has revealed.

A total of 22,060 customers went online to submit their form for the 2021 to 2022 tax year between 24 and 26 December 2022, and 141 opted to file between 23:00 and 23:59 on Christmas Eve, meaning they could enjoy celebrations knowing their tax return was complete.

The breakdown of figures for those who opted to file during the festive period are:

• Christmas Eve: 8,474 tax returns were filed. The peak time for filing was between 11:00 and 11:59, when 888 returns were received.
• Christmas Day: 3,275 tax returns were filed. The peak time for filing was between 12:00 and 12:59, when 319 returns were received.
• Boxing Day: 10,311 tax returns were filed. The peak time for filing was between 12:00 and 12:59, when 953 returns were received.

The deadline to file and pay any tax owed for the 2021 to 2022 tax year is 31 January 2023, and HMRC is urging customers to submit their tax return on time or they may face a penalty.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

We are grateful to those customers who have already filed their tax returns. For anyone who is yet to make a start, help is available on GOV.UK, just search ‘Self Assessment’ to find out more.

The press release issued by HM Treasury on 25 June 2001.

The Government’s commitments to delivering high quality public services, making further inroads into tackling child poverty, and boosting productivity, were highlighted today by the Chief Secretary Andrew Smith as he set out the framework and cross cutting reviews that will make up the 2002 Spending Review. In answer to a written Parliamentary Question from Jackie Lawrence MP he announced seven initial cross cutting reviews covering:

• Children at risk
• the public sector labour market
• improving the public space
• health inequalities
• science and research
• services for small business; and
• the role of the voluntary sector

He has also written to Cabinet colleagues setting out the priorities for the 2002 Spending Review:

• Delivery of high quality, efficient and responsive public services;
• Raising productivity, in the public sector and outside, through improved skills, research and infrastructure;
• Spreading opportunity and prosperity more widely, and tackling child poverty and social exclusion;
• Improving the quality of life in both urban and rural areas; and
• Securing a modern international role for Britain through co-operation with our European and international partners.

Mr Smith said:

“Delivery of improved public services is the priority for this Government.  Gordon Brown’s spending committee PSX will be looking closely, in the coming months, at the evidence on the effectiveness of existing programmes and, in particular, at how Departments are delivering their current Public Service Agreement targets, alongside discussion of Department’s future strategic priorities. Where the evidence to date is of unsatisfactory performance, and a failure to stay on track to meet PSA targets, we will need a clear diagnosis of the problem and a clear path for reform and management change.

Where new spending is proposed, we will expect to see stretching targets and clear plans for effective delivery of results.”

PSX, supported by the Treasury and the new Delivery Unit in the Cabinet Office, will start a series of meetings in July to look at specific delivery issues. This process will run through the autumn when PSX will be discussing forward strategy with Departments alongside performance to date against PSA targets.

The Spending Review will take a thorough look at all programmes to ensure that the new plans fully reflect the Government’s priorities and the scope for greater efficiency and effectiveness in service delivery.

The press release issued by HM Treasury on 21 June 2001.

Today saw the publication of a consultation paper seeking to encourage innovation and strengthen further the UK’s science base by enhancing the supply of highly skilled scientists and engineers. The consultation paper, which seeks views on the key issues affecting the supply of scientists and engineers, is the first stage of an independent review led by Sir Gareth Roberts.

The aim of this review is to ensure that businesses, universities and the public sector can recruit and retain the highly skilled scientists and engineers necessary to underpin their research activities, and thereby enhance the UK’s already strong reputation for scientific and technical expertise.

Publishing the consultation document, “Review of the supply of scientists and engineers”, Sir Gareth Roberts said today:

“The science base and its continued development is key to UK economic growth and productivity in the 21st century. The consultation paper provides those in business and education with an opportunity to help shape the Government’s science and engineering education policy for the future. I hope that as many people as possible contribute their suggestions and ideas to the review.”

The consultation paper reflects issues identified in preliminary discussions with representatives of the business and education sectors. Key areas it identifies include:

• the range of skills acquired by top scientists and engineers at degree level and above;
• how these skills correlate to the needs of business;
• how effectively innovative businesses communicate their needs to higher education, and how well the education system is able to respond; and
• student motivation and incentives at all levels, including secondary school, undergraduate, and postgraduate.

The Chancellor of the Exchequer announced the independent review in Budget 2001 as part of the Government’s productivity strategy. The announcement reflected the Government’s belief that a strong connection between the scientific and business communities (and, in particular, a good supply of highly skilled scientists and engineers) is vital for research and development and innovation, and therefore important for the future productivity of the UK economy.

The preferred deadline for responses to the consultation paper is 31 July, although responses received after this point will still be welcomed. The final report will be submitted to the Chancellor, Secretary of State for Trade & Industry and the Secretary of State for Education and Skills by February 2002 – in time for its recommendations to feed into the 2002 Spending Review.

The press release issued by HM Treasury on 18 June 2001.

New measures to tackle the productivity gap with Britain’s major competitors were set out today by Chancellor Gordon Brown, Trade and Industry Secretary Patricia Hewitt, and Education and Skills Secretary Estelle Morris:

radical reform of the UK’s competition regime;
a Capital Gains Tax regime that is overall more favourable to enterprise than that of the USA;
modernisation of insolvency laws with abolition of Crown Preference;
better tax treatment for share options, extending Enterprise Management Incentives to larger companies;
a Green Paper, later this year, on reforming the planning system;
a review of the long-term retail savings industry led by Ron Sandler;
a major review of the role of enterprise and business in education led by Sir Howard Davies;
new measures to help small businesses grow including extension of the 10p corporation tax rate and help with VAT compliance;
a review of payroll services to small business;
an immediate review of DTI’s support to business, starting with industrial manufacturing;
targets for each of the English regional venture capital funds.

Speaking following a business breakfast held at No 11 Downing Street, the Chancellor said:

“Four years ago the Government began its mission to raise the economy’s sustainable rate of growth. In our first term this Government put stability in the macro-economy and work first. In our second term we must build on the platform of stability and employment. Today, we bring forward radical measures to tackle our productivity gap and create in Britain a true enterprise culture where the chance to start and succeed in business is genuinely open to all.”

Patricia Hewitt said:

“This Government will help UK firms get to the future first. Enterprise is key to our future prosperity. We must remove obstacles to innovation, and make competition work properly for the consumer, so that UK companies become the best at meeting consumer needs. We must back success and remove opportunities to break the rules.”

Estelle Morris said:

“It is vital for a healthy economy that young people understand the importance of enterprise and are given the support they need to succeed in their working lives. The Learning and Skills Council provides a very important link between the business community and young people. We are also making sure that schoolchildren get more chances to do work experience to help them prepare for the world of work. So I am pleased to announce today that, to encourage an enterprise culture, Sir Howard Davies has been commissioned to conduct a review of the role of enterprise and business in education.”

Today’s statement sets out a package of radical reforms to drive through improvements in the UK’s productivity performance.

These changes build on the reforms the Government made in its first term to improve competitive pressures in the economy, remove barriers to the effective operation of markets and ensure that our tax system properly incentivises enterprise and investment.

Measures include:

1. Reform of the competition regime. A White Paper will be published in July setting out proposals for early legislation:

modernising “complex monopoly” powers allowing the competition authorities independence to investigate sectoral markets under clear competition principles;
a strong legal basis for competition authorities to promote competition across the economy;
full independence backed by additional resources for the competition authorities; and
consultation on introduction of criminal penalties for those involved in cartels.

2. A new Capital Gains Tax regime that is overall more favourable to enterprise than that of the US. From April 2002 effective CGT rates for business assets will be reduced to 20 per cent after one year and 10 per cent after two and all subsequent years. The Government will also consider whether, during the lifetime of this Parliament, further changes to the non-business asset regime are necessary to improve incentives to invest and help businesses attract finance.

3. Major reforms to modernise UK insolvency laws to reduce the penalties for honest failure and to create a modern and fair commercial system. A White Paper in July will propose:

removing the Crown’s preferential right to recover unpaid taxes ahead of other creditors; and
ensuring collective procedures are used instead of administrative receivership, which allows just one creditor to have control. (Special arrangements will be considered for securitisation).

4. Improvements to the tax treatment of share options with a consultation on doubling the size of company that can qualify for Enterprise Management Incentives (EMI) to assets of £30 million.

5. Publication later this year of a Green Paper on Reform of the Planning System to set out proposals for significant improvements in the processes for determining planning applications, to ensure that the system strikes the right balance between economic and environmental considerations and is flexible and well-adapted for the diverse needs of the regions.

6. The appointment of Mr Ron Sandler, former CEO of Lloyd’s of London and Chief Operating Officer of Nat West, to conduct an independent review into the long-term retail savings industry including life-insurance. Working with the FSA, the review’s purpose will be to identify the competitive forces and incentives that drive the industries concerned, in particular in relation to their approaches to investment, and, where necessary, to suggest policy responses to ensure that consumers and the investment needs of the economy are well served.

7. A major review of the awareness of business, enterprise and the economy across schools and further education, led by Sir Howard Davies, chairman of the Financial Services Authority, to create a strong enterprise culture for the future. This will report to Gordon Brown, Estelle Morris and Patricia Hewitt in January 2002.

8. New measures to help small businesses start-up, grow and prosper:

The extension, in Budget 2002, of the 10 per cent corporation tax band to reduce the tax bills of more small businesses;
help for up to half a million businesses with the removal of automatic fines for late payment of VAT for firms with a turnover of less than £100,000. In future fines will only be levied after a written communication is first sent offering help and advice to sort out problems;
publication today of proposals for a flat rate VAT scheme which will mean hundreds of thousands of small companies paying less tax and facing lower compliance costs.

9. A review of payroll services for small firms, to make the system more effective and less costly. This will be led by Mr Patrick Carter, a member of the Public Services Productivity Panel. The review will focus on how payroll can be done more efficiently, with better support and use of technology. He has been asked to report by the end of September 2001.

10. A review of DTI’s business support, in consultation with stakeholders and customers. The review will start by examining support to industrial manufacturing, and its initial findings will be reported to the Secretary of State for Trade and Industry in September.

11. Announcement of progress on new Regional Venture Capital Funds for each English Region. Following the state-aids clearance the Government is announcing:

agreement in principle to invest up to £60 million by the European Investment Bank’s venture capital arm, the European Investment Fund;
seed funding by Government of up to £80 million;

indicative targets for each region:

£30 million for the North West

£20 million for the East of England

£30 million for the South East

£25 million for the South West

£25 million for Yorkshire and Humberside

£15 million for the North East

£20 million for the West Midlands

£20 million for the East Midlands

£50 million for London

12. As announced in Budget 2001, publication shortly of a consultation document to ensure that Britain has a corporate tax regime that helps create the best possible environment for long-term business investment, both in and from the UK.

13. A consultation paper “Radio Spectrum Management Review” published today by the Radiocommunications Agency is part of an independent review headed by Professor Martin Cave. The paper raises a number of areas for debate, including the best regulatory framework for the management of the spectrum; and pricing and auctions of the spectrum.

The press release issued by HM Treasury on 15 June 2001.

A new approach to the involvement of certain ancillary staff in PFI schemes in the NHS is to be trialled, Alan Milburn, Health Secretary, and Andrew Smith, Chief Secretary to the Treasury, announced today.

If successfully piloted, the new initiative would mean ancillary staff in areas such as catering, cleaning, laundry and portering staff remaining employees of the NHS but being managed by the private sector PFI partner, who would continue to assume responsibility for delivering such services to NHS/PFI hospitals. Where new ancillary staff are required for the delivery of facilities management services they would be recruited by the NHS under the same terms as existing staff.

Speaking about the initiative, Alan Milburn said:

“In line with the incoming Government’s manifesto, we are keen to ensure a new fairer deal for NHS staff so they can continue employment within the NHS.”

Andrew Smith commented:

“PFI and our wider PPP programmes are essential to revitalise the nation’s infrastructure. These pilots build on our reforms – increased transparency and consultation, improved treatment over staff transfers and a fair deal for staff over pensions – which go to the very heart of the public sector ethos that this Government has been keen to develop.

“We will continue to improve the standards of service for patients and all other citizens who rely on effective public services and take what further steps are required to guarantee fair treatment to staff.”

The pilots will be taken forward with hospital schemes that are sufficiently far advanced to allow early insight into its effectiveness. The results should be known before the end of the year. It is such building blocks that would underpin the projects and give us a high level of confidence in their viability.

This government has already put into place three initiatives for PFI/PPP deals including:

• transparency and consultations with staff allowing unions more access to procurement details;
• improvement in the treatment of staff rights under TUPE;
• a fair deal for pensions to protect staff pension rights.

This new approach is fully consistent with existing guidance that there is no requirement to transfer ancillary staff to the private sector where this is compatible with achieving value for money.

The press release issued by HM Treasury on 30 July 2001.

The Government welcomed the launch by the independent Sandler review of its consultation document, which was published today.

Gordon Brown MP, Chancellor of the Exchequer said:

“UK institutional investors control more than £1.5 trillion in assets, including half the quoted equity markets. Following on from Paul Myners’ review, the work that Ron Sandler is undertaking is the next important stage, in the process of reviewing the efficiency and flexibility of the savings and investment industries.

“Working closely with the FSA, Ron will be examining the forces and incentives which drive the retail savings industry and its approach to investment to see whether resources are being allocated efficiently and whether consumers are being well served.”

Alistair Darling MP, Secretary of State for Work and Pensions said:

“The vast bulk of this investment comes from pension schemes. We want to encourage more people to save for their retirement and to ensure that they receive value for money and a fair deal. Ron Sandler will be looking at ways in which customers can make more informed choices by having greater transparency and openness and as competitive a market as possible.  Ron Sandler’s wide-ranging review will complement the measures I have taken so far such as the 1% cap on stakeholder pension charges to get a better deal for the public.”

The press release issued by HM Treasury on 27 July 2001.

HM Treasury today set out proposals to bring clarity and accountability to the payment of broking services by pension funds and other investors.

The proposals are:

• The Government has set out objectives for how the market needs to change. Progress towards these will be reviewed in two years? time.
• Under amended Myners principles of investment, pension funds will have to understand and manage pension fund costs better, and soft commission arrangements will be tackled.
• Paul Myners will be asked to develop a set of questions to assist pension fund trustees in requiring better disclosure and clearer incentives for their managers and brokers.
• The FSA study of Best Execution will be widened to examine soft commission and the bundling of services provided by brokers.

Announcing the proposals today Ruth Kelly, Economic Secretary said:

“The challenge for the industry is to develop much clearer structures and incentives. The Government hopes this can continue to be achieved on a voluntary basis. But, if in two years time, there remain competition concerns, the Government will consider what further action is necessary to ensure that a sufficiently competitive environment exists.”

The Government will publish its final response to the Myners review in September, together with a revised set of principles of investment. This revised set will include the following amendment in place of the final sentence of principle 6:

Trustees, or those to whom they have delegated the task, should have a full understanding of the transaction-related costs they incur, including commissions.  They should understand all the options open to them in respect of these costs, and should have an active strategy – whether through direct financial incentives or otherwise – for ensuring that these costs are properly controlled without jeopardising the fund’s other objectives.

Pension funds should not without good reason permit ‘soft’ commissions to be paid in respect of their transactions.