Category: Press Releases

The press release issued by HM Treasury on 29 October 2001.

Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt today welcomed the four CBI and TUC reports into improving the UK’s productivity, and the proposal to create a permanent CBI-TUC Productivity Group.

Attached is the text of a letter from Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt to Director General of the CBI Digby Jones and General Secretary of the TUC John Monks.

Digby Jones                                                                                      29 October 2001

John Monks

We are writing to thank you for your letter of 26 October and the final reports of the four joint working groups on productivity.  We are delighted that the CBI and the TUC have been able to work so successfully together on these challenging and important issues.

The UK’s productivity gap with our major competitors remains substantial.  US productivity is 42 per cent higher than that of the UK.  Productivity in France and Germany is 14 and 7 per cent higher respectively.

The reports have identified a whole range of substantial areas for action for employers, employees and Government.  It is through joint action and shared responsibility that together we will make progress closing the productivity gap.

For Government, the next step is the Pre-Budget Report, which will have as a central theme our continuing drive to tackle the productivity gap and to open enterprise for all.  The Pre-Budget Report will take forward proposals in a number of important areas the groups have identified.

But as you have stressed, the challenge is not for Government alone.  Building on the success of the work so far, we welcome your proposal to create a new, permanent, CBI-TUC Productivity Group.  This would meet on a regular basis to:

• Monitor progress against the vision set out in the four working groups, as well as looking at further specific productivity issues, from time to time;
• Comprise a small number of senior representatives of your respective organizations – you intend to draw upon other groups and specialists for particular issues such as the Regional Development Agencies, representatives from higher and further education etc; and
• Meet us twice-yearly before the Budget and Pre-Budget Reports, jointly to review progress on the subjects under consideration by the Group, and to discuss a forward-looking agenda.
  We in turn would find it especially helpful to be able to use the Group as a sounding-board in consultation on policy development.

As we said in our joint statement in June, enterprise and productivity are central objectives for this Parliament.  Working together, we will be best placed to pursue our shared goals of high and stable levels of economic growth and prosperity for all.

The press release issued by HM Treasury on 22 October 2001.

The Treasury has today decided to renew the scheme, set up to fill the gap in the commercial insurance market, for a further 30 days. This will ensure that UK airlines can continue to fly in the wake of events in the United States last month.

Chief Secretary Andrew Smith said:

“The Government has decided to renew the insurance scheme to enable airlines to keep flying. There is still a gap in the commercial insurance market which the Government is filling to ensure the aviation industry has the cover it needs.

We have also decided to waive the premiums for airlines for a further 30 days, and are consulting the industry about the best basis for charging in the future.”

The scheme will be rolled forwards for a further thirty days, until midnight 24 November.  From 1 November airlines will be required to find commercial cover for the first $100m, and service providers for the first $50m, for third party war and terrorism liabilities. The Government scheme will provide the cover for liabilities above those minimum levels.  The Government will continue to waive the premium for the airlines.

The press release issued by HM Treasury on 22 October 2001.

Long-term care insurance (LTCI) is to be fully regulated to help prevent people from buying unsuitable policies, Ruth Kelly, Economic Secretary to the Treasury announced today.  The Financial Services Authority will have responsibility for regulating the selling and marketing of these products.

Insurance for the provision of care in old age or long-term illness is a relatively new product and its uptake is expected to grow, given the right conditions.  The Treasury believes it is important to give consumers adequate protection at an early stage of the development of the LTCI market.

Ruth Kelly said:

“As with pensions and ISAs, we want to help people to provide for their security whenever they can.

“Long-term care insurance can be expensive and tends to be sold to people at the same time as wider financial planning for the last few years of a person’s life.   We think consumers need protection when making critical decisions at this point in their lives.

“If someone eventually needs care, they don’t want to find that their insurance won’t pay out for the level of care they expected when they paid the premiums.  Regulation seeks to prevent this type of scenario”.

“By asking the Financial Services Authority to regulate the sale and marketing of long-term care insurance, we hope to protect consumers and allow the market to develop within that regulatory environment.”

The press release issued by HM Treasury on 16 October 2001.

Government suppliers, including up to 500,000 newly incorporated Small and Medium sized Enterprises (SMEs), will find bidding for government business easier, following the publication of important new financial assessment guidance, Andrew Smith, Chief Secretary to the Treasury, announced today.

In another move designed to make it easier to do business with government, he also announced improvements to liability guidance that will encourage more companies to deal with government

The specific improvements include:

•  Greater emphasis on cash flow in assessing financial stability
•  liability determined by specific contract requirement rather than “unlimited liability”

Andrew Smith, Chief Secretary to the Treasury, said:

“These improvements will bring out healthy competition in the marketplace and demonstrate this Government’s commitment to fair access for all suppliers, including SMEs. This is excellent news for business and ensures best value for money for the taxpayer.”

Nigel Griffiths, Minister for Small Business at the Department of Trade and Industry, commented:

“The removal of the need for three years worth of audited accounts, and the change from unlimited liability to a value for money liability determination will mean that thousands of small and medium enterprises will now be able to access public procurement contracts.”

These improvements have been drawn up by the Office of Government Commerce (OGC) in consultation with the Small Business Service.  OGC  Chief Executive, Peter Gershon, said:

“These improvements, together with the publication in June 2001 of guidance on ‘Tendering for Government Contracts’, are a direct result of OGC’s strategy to make this market more accessible to all potential suppliers including SMEs.”

David Irwin, Chief Executive of the Small Business Service said,

“I welcome this initiative as an important step in addressing some of the barriers that small firms face when trying to sell to the public sector.  The SBS has been working closely with the OGC, and will continue to do so, to ensure that we identify and remove any further obstacles in the way of small and medium enterprises.”

The appraisal of financial stability of potential suppliers and contractors to government was previously largely based on three years profit and loss statements. This often debarred younger companies.

Under the new guidance cash flow will be emphasised more strongly in a more flexible financial assessment. This reflects good commercial practice where risk is assessed according to the specific situation, not bureaucratic formulae.

This will particularly benefit new SMEs delivering goods and services, including, but certainly not limited to, IT and consultancy.

The second improvement means that contractors’ liability will be assessed on the basis of the value for money for the particular contract, where previously it was often assumed it should be unlimited.

This unlimited liability was a barrier to competition, because it led to high insurance costs for suppliers. Invariably this simply increased the final price for the government and the taxpayer.

The main benefits of this adjustment will be in the fields of IT, management consultancy, professional advice and construction.

This all reinforces the government’s approach to procure goods and services on a value for money basis and opens up the government market, so increasing competition and innovation, benefiting the taxpayer and the wider economy.

The press release issued by HM Treasury on 12 October 2001.

HM Treasury, in liaison with US Government, today instructed financial institutions to freeze the assets of a further 38 individuals and organisations. Those on today’s list are believed to have committed or pose a significant risk of committing or providing material support for acts of terrorism.

Chancellor of the Exchequer Gordon Brown said:

“If any of those named today hold assets in the UK they will be frozen immediately. Just as there can be no safe haven for terrorists we are taking decisive action to ensure there is no safe hiding place for their assets.

Today’s list is a result of intelligence sharing and coordination between UK and US. We will continue to work with our allies, and take a leading role internationally, to cut off the ready supply of finance which is the lifeblood of modern terrorism.

These measures are part of detailed proposals being formulated to expose, isolate and incapacitate funds being used for terrorist activities.”

The list of people and organisations whose assets should be frozen is:

Entities

AL-HAMATI SWEETS BAKERIES, Al-Mukallah, Hadhramawt Governorate, Yemen.

AL-NUR HONEY PRESS SHOPS (a.k.a. AL-NUR HONEY CENTER), Sanaa, Yemen.

AL-SHIFA? HONEY PRESS FOR INDUSTRY AND COMMERCE, PO Box 8089, Al-Hasabah, Sanaa, Yemen; By the Shrine Next to the Gas Station, Jamal Street, Ta?iz, Yemen; Al-Arudh Square, Khur Maksar, Aden, Yemen; Al-Nasr Street, Doha, Qatar.

JAISH-I-MOHAMMED (a.k.a. ARMY OF MOHAMMED), Pakistan.

JAM?YAH TA?AWUN AL-ISLAMIA (a.k.a. SOCIETY OF ISLAMIC COOPERATION)(a.k.a. JAM?IYAT AL TA?AWUN AL ISLAMIYYA)(a.k.a. JIT), Qandahar City, Afghanistan.

RABITA TRUST, Room 9A, 2nd Floor, Wahdat Road, Education Town, Lahore, Pakistan; Wares Colony, Lahore, Pakistan.

Individuals

AGHA, Haji Abdul Manan (a.k.a. SAIYID, Abd Al-Man?am); Pakistan.

AL-HAMATI, Muhammad (a.k.a. AL-AHDAL, Mohammad Hamdi Sadiq)(a.k.a. AL-MAKKI, Abu Asim),Yemen.

*AL-HAQ, Amin (a.k.a. AMIN, Muhammad; a.k.a AH HAQ, Dr Amin;
UL-HAQ, Dr Amin); DOB: 1960; POB: Nangahar Province, Afghanistan.

AL-QADI, Yasin (a.k.a. KADI, Shaykh Yassin Abdullah)(a.k.a. KAHDI, Yasin), Jeddah, Saudi Arabia.

*AL-JADAWI, Saqar; DOB:1965

*AL-KADR, Ahmad Sa?id (a.k.a AL-KANADI, Abu Abd Al-Rahman);
DOB: 01 March 1948; POB: Cairo, Egypt.

*AL-SHARIF, Sa?d; DOB: 1969; POB: Saudi Arabia

*BIN MARWAN, Bilal; DOB: 1947

BIN MUHAMMAD, Ayadi Chafiq (a.k.a. AYADI SHAFIQ, Ben Muhammad) (a.k.a. AYADI CHAFIK, Ben Muhammad) (a.k.a. AIADI, Ben Muhammad) (a.k.a. AIADY, Ben Muhammad), Helene Meyer Ring 10-1415-80809, Munich, Germany; 129 Park Road, London, NW8, London, England; 28 Chausse Di Lille, Moscron, Belgium; Darvingasse 1/2/58-60, Vienna, Austria; Tunisia; DOB: 21 January 1963; POB: Safais (Sfax), Tunisia.

DARKAZANLI, Mamoun, Uhlenhorster Weg 34, Hamburg, 22085, Germany; DOB: 4 August 1958; POB: Aleppo, Syria; Passport No: 1310636262 (Germany).

HUAZI, Riad (a.k.a. HUAZI, Raed M.) (a.k.a. AL-HAWEN, Abu-Ahmad) (a.k.a. AL-MAGHRIBI, Rashid [The Moroccan]) (a.k.a. AL-AMRIKI, Abu-Ahmad [The American]) (a.k.a. AL-SHAHID, Abu- Ahmad), Jordan; DOB: 1968; POB: California, USA; SSN: 548-91-5411.

LADEHYANOY, Mufti Rashid Ahmad (a.k.a. LUDHIANVI, Mufti Rashid Ahmad) (a.k.a. AHMAD, Mufti Rasheed) (a.k.a. WADEHYANOY, Mufti Rashid Ahmad); Karachi, Pakistan.

UTHMAN, Omar Mahmoud (a.k.a Othman, Omar Mahmoud) (a.k.a. AL-FILISTINI, Abu Qatada) (a.k.a. TAKFIRI, Abu ?Umr) (a.k.a. ABU UMAR, Abu Omar) (a.k.a. UTHMAN, Al-Samman) (a.k.a. UMAR, Abu Umar) (a.k.a. UTHMAN, Umar) ( a.k.a. ABU ISMAIL), London, England; DOB: 30 December 1960 or 22 December 1960 or 13 December 1960. National Insurance Number PW581303D.

YULDASHEV, Tohir (a.k.a. YULDASHEV, Takhir), Uzbekistan.

ZIA, Mohammad (a.k.a. ZIA, Ahmad); c/o Ahmed Shah s/o Painda Mohammad
al-Karim Set, Peshawar, Pakistan; c/o Alam General Store Shop 17, Awami Market, Peshawar, Pakistan; c/o Zahir Shah s/o Murad Khan Ander Sher, Peshawar, Pakistan.

YASIN, Abdul Rahman

MOHAMMED, Khalid Shaikh

AL MUGHASSIL, Ahmed

AL-HOURI, Ali

AL-YACOUB, Ibrahim

AL NASSER, Abdel Karim

MOHAMMED, Fazul Abdullah

FADHIL, Mustafa Mohamed

GHAILANI, Ahmed Khalfan

MSALAM, Fahid Mohammed Ally

SWEDAN,  Sheikh Ahmed Salim

ABDULLAH, Abdullah Ahmed

ALI, Ahmed Mohammed Hamed

ATWAH, Mushin Musa Matwalli

MUGNIYAH, Imad

IZZ-AL- DIN,  Hassan

ATWA, Ali

The press release issued by HM Treasury on 12 October 2001.

Better communication and cooperation between central and local government agencies and the voluntary and community sector has a key role to play in improving public service delivery, Financial Secretary Paul Boateng said today.

Announcing the terms of reference (see link below) of a cross cutting review of the role of the voluntary sector in public service delivery, Mr Boateng said:

“The voluntary and community sector already makes a significant and extremely valuable contribution to the delivery of high quality public services. We now need to explore further ways in which central and local Government can work more effectively with the voluntary sector on public service delivery to ensure that, together, we are delivering high quality services.

The cross cutting review is an important part of that process. I very much hope that the widest possible range of individuals and organisations working in this area and benefiting from the work being done will let us know their views on how this initiative can be taken forward to develop new and better ways to work together.”

The terms of reference for the review, which Mr Boateng will chair, are:

“To examine the relationship between the voluntary sector and the Government in public service delivery, taking account of the key role that the sector can play in strengthening civil society and building capacity in local communities. The review will do this by:

i.  Mapping the extent and the variety of means by which the voluntary sector is already involved in overseeing and delivering public services;

ii. Examining best practice in effective partnership between the voluntary sector and the public sector, suggesting practical ways in which the principles in the Compact can be applied in the delivery of public services;

iii.Drawing common lessons to guide the public sector in working in partnership with the voluntary sector;

iv.Establishing whether and how barriers to voluntary sector involvement, and lack of capacity, might be overcome to promote successful partnership with the public sector and how the Government might be able to assist to that end.”

The cross cutting review, one of seven announced by Chief Secretary Andrew Smith on 25 June, is an important initial phase of the wider Spending Review 2002 and aims to report early next year.

There are important links between this cross cutting review and work in other Government Departments:

• the Performance and Innovation Unit (PIU) review: Modernising the Legal and Regulatory Framework for Charities and the Voluntary Sector;
• the Regional Co-ordination Unit Review of Regeneration Funding for Voluntary Sector and Community Groups
• ongoing work within the Active Communities Unit, including the current consultation on the funding of Community Groups.

The cross cutting review will build further on the principles set out in the Compact on relations between Government and the voluntary and community sector, including the continued independence of the sector.

Organisations and individuals wishing to register an interest in the review should email using the link below.

The press release issued by HM Treasury on 10 October 2001.

An innovative interagency scheme on Teesside to help prisoners return to the community with a reduced likelihood of reoffending is the overall winner of the first Invest To Save Budget (ISB) ‘Progress In Partnership’ awards, Chief Secretary Andrew Smith announced today.

The “Prisoners? Passport” project is one of four winning initiatives which show how closer joint working can underpin smarter, better services in diverse areas of the public sector. It offers advice on jobs, housing, health and benefits to inmates due for release in two prisons on Teesside. In its first year, the reconviction rate among 375 prisoners involved in the scheme was around 5%, compared to around 40% nationally. This was achieved with an investment from the ISB scheme of £18,000 to fund a full-time adviser to the project.

Mr Smith said :

“This project is a striking and valuable example of what can be achieved by public sector agencies coming together and pooling resources to deliver better services across the country. It cuts crime by helping prisoners go straight, to the benefit of their families and communities, as well as addressing the financial and social consequences of criminal behaviour.

“Other winning ISB projects support bereaved families in Wolverhampton, help young people into adult life in West Lothian and offer one-stop access to national databases for local authorities and local delivery agencies across the country.

“What all these projects have in common is that they deliver important and innovative public services at local level, directly to citizens and communities. The integrated approach they have used so successfully in these projects is one that all agencies can learn from and adapt to improve their own service delivery.

“These first success stories under the Invest to Save Budget initiative show how a relatively modest investment in drawing agencies together can generate new and better public services. The real winners are those who benefit from these imaginative schemes.”

The Prisoners’ Passport project works with prisoners preparing for release in Holmehouse and Kirklevington prisons. As well as reducing the likelihood of reoffending, the initiative helps offenders, their families and their communities generally by increasing the chances of their finding work and accommodation, improving skills and opportunities and helping to keep families together.

The awards were presented at “Joining Forces”, the second Invest to Save Budget Conference, held at the Queen Elizabeth II Conference Centre in Westminster.

The press release issued by HM Treasury on 5 October 2001.

Tax-free betting in the UK will come into effect from tomorrow, allowing punters to keep all their winnings for the first time in thirty five years.

Financial Secretary to the Treasury, Paul Boateng, said:

“Today sees the start of a new era for betting in Britain. Tax-free betting is great news for punters, but the benefits go much wider than that. These reforms will allow Britain’s betting industry to become a world-leader in the international betting market. And as the bookmakers? turnover increases, racing and Government revenues will share in the benefits.”

The Chancellor announced in the 2001 Budget that the current tax on betting stakes would be replaced with a tax on bookmakers? gross profits. The implementation of the reforms has been brought forward by three months because of a positive and rapid response by the betting industry.

As a result of these reforms, the largest bookmakers have re-located their offshore sites to the UK, and will remove the 9 per cent deduction previously charged on punters’ stakes. Hundreds of new jobs have also been created, as bookmakers gear up for the rapid increase in demand expected in their high-street shops and through their telephone and on-line betting services.

The Government has also announced changes to accounting arrangements under the new system, which will cut compliance costs and improve cash-flow for the smaller bookmakers who make up more than half of all UK betting firms.

­­­­­­­Bob Scott, Chief Executive of Coral Eurobet, plc, said:

The expected significant growth in turnover will be matched by a sizeable increase in job opportunities across the industry. This is without doubt the most important day in the history of betting. The Government has made a huge investment in the betting industry, one we will demonstrate has not been misplaced. This is a win, win situation for customers, bookmakers, the racing industry and Government.

David Harding, Chief Executive of William Hill, commented:

“The abolition of betting duty and the introduction of zero deduction betting will herald a new era for punters and the UK betting industry.  William Hill is committed to establishing the UK as the centre of excellence in the global betting market.  If projected business levels are achieved, William Hill anticipates creating up to 1,000 new jobs across its betting platforms.  We are confident that the Government’s willingness to support our industry will be richly rewarded.”

Chris Bell, Chief Executive of Ladbrokes Worldwide said:

“The betting duty reforms will be great for customers, great for bookmakers and ultimately great for the Government.  We have been preparing for this since April.  We have increased our workforce by 10%  and we are ready to do our bit in retail betting, telephone betting and internet betting to ensure that that the UK becomes the world centre of betting excellence.”

The press release issued by HM Treasury on 2 October 2001.

The Government today issued a revised set of principles of investment for pension funds, following consultation. It also issued its official response to the Myners review of institutional investment, which gives some updates on how the Government and other organisations are taking forward the recommendations of the review.

The principles of investment were proposed by the Myners review of institutional investment. There are two short codes of principles, one for defined benefit pension schemes and one for defined contribution schemes. Pension funds will be encouraged both to adopt the principles as best practice, and to explain where an alternative approach has been taken.

In order to comply with the principles, a fund would need to take measures such as:

• Set an overall investment objective linked to the fund’s liabilities;
• Ensure that those taking investment decisions have the skill and information to do so;
• Agree clear mandates with their fund managers, including a timescale over which managers’ performance will be measured.

The principles have also been revised to take account of the Government’s proposals on transaction costs published in July.

Economic Secretary Ruth Kelly MP said. “It is clear that the pensions industry needs to change the way it deals with investment issues. But the best way for this to happen is for the industry itself to take action voluntarily. The principles of investment are intended to be a short common-sense guide to this process of change.”

The response to the Myners review confirms the Government’s intention to legislate on two issues:

• to raise the standard of care required of trustees and;
• making intervention in investee companies, when in shareholders’ and beneficiaries’ interests, a duty for trustees and fund managers.

The response also gives some further details of the assessment of progress that will be carried out in March 2003. This is to determine how successful the principles of investment and other measures proposed by the Myners review have been in driving change in the pensions industry.

Minister for Pensions Ian McCartney said “The Government is very grateful to Paul Myners for his work on the review. We feel that it contributes significantly to the debate in encouraging diversity in investment approaches, particularly in how he sees the future role of trustees. In addition we see the principles of investment as important tools in providing transparency for scheme beneficiaries. We have already said that we will take forward all of the review’s conclusions. We and other organisations are making good progress in this task”

As announced by the Government on July 27th, Paul Myners is also issuing today a set of ten questions which pension fund trustees can use to help them understand the issue of transaction costs.

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

In the latest Pre-Budget Report, the Chancellor announced a double boost for community sport.  He launched a consultation document seeking views on the best way to support community amateur sports clubs (CASCs) which make a positive contribution to their local communities.  This coincides with the Charity Commission’s decision that CASCs may now apply for charitable status.  In addition, a deal with the football pools companies has been made to provide additional funding to grass-roots sport.

Welcoming the Pre-Budget announcements on community sport, Financial Secretary to the Treasury, Paul Boateng said today:

“These announcements will be a valuable boost to the sporting activities of many local communities, helping to sustain sport in the community for its myriad benefits including health, community building and crime reduction.  The Charity Commission’s proposal to extend charitable status to sports clubs is most welcome.  It will recognise and strengthen the valuable work sports clubs up and down the country are doing.  The Government is listening to the concerns of sports clubs and demonstrating its commitment to supporting the hugely important contribution they make to society.

“In addition, following the success of our radical reforms to betting taxation, we will now go further by modernising the tax treatment of pools betting. The big football pools companies have a long history of supporting good causes and I am very pleased that – as a result of these reforms – they have decided to extend their funding of the Football Foundation and the Foundation for Sports and the Arts for a further two years.”

COMMUNITY AMATEUR SPORTS CLUBS

Today’s consultation document – “Promoting Sport in the Community” – outlines the current tax status of sports clubs and the case for supporting CASCs.  In the past, many CASCs have argued that they deserve charitable status in recognition of the important role they play in the community and that in the absence of charitable status, they should at least enjoy similar tax relief.  Following the Charity Commission’s decision to grant CACSs charitable status, they will now be able to enjoy the full range of benefits that this status confers – not only tax relief, but also mandatory business rate relief, greater funding opportunities and public recognition.  The Government is keen to hear views from interested parties on the way forward and in particular whether there is still a strong case for proceeding with a separate Inland Revenue scheme (details of which are attached), or whether the Charity Commission package would appear to provide better prospects.

The Minister for Sport Richard Caborn said:

“These measures demonstrate the importance this Government attaches to sport and, in particular, the vital role that volunteers in the community play in sustaining sport at the neighbourhood level.

“I welcome Littlewoods and Vernons agreement to continue funding for the Foundation for Sport and the Arts and Football Foundation for a further two years.”

FUNDING AGREEMENT WITH FOOTBALL POOLS COMPANIES

As the Government announced in the Pre-Budget Report, the current 17.5 per cent pools betting duty will be abolished in the next Budget and replaced by a 15 per cent tax on pools companies’ gross profits.

As a result, the leading football pools companies have agreed to extend their current funding of the Football Foundation and the Foundation for Sports and the Arts for a further two years until March 2004. This will help these Foundations to continue their vital work in supporting grass-roots sports clubs and community arts projects.

Colin McGill, Managing Director of Littlewoods Leisure, said:

“The very welcome tax reform announced by the Government is great news for sports clubs and other good causes across Britain who will benefit from Littlewoods’ continued support. Over the last ten years, our Pools business has given back over £400m to football, other sports and the arts. We are therefore delighted to be able to commit to further funding of these good causes over the next two years.”

Steve Roberts, Managing Director of Vernons, added:

“Vernons are proud of their long association with the good causes, which have helped benefit many local sporting activities throughout the country. The betting taxation reforms announced today are warmly welcomed and will help Vernons to continue their funding of the Foundations to help encourage sport in local communities.”