Category: Press Releases

  • PRESS RELEASE : Scottish Budget protects rural and island economy [December 2022]

    PRESS RELEASE : Scottish Budget protects rural and island economy [December 2022]

    The press release issued by the Scottish Government on 20 December 2022.

    Payments to farmers made early to mitigate cost of living crisis.

    A total of £964 million has been allocated to the Rural Affairs and Islands portfolio in the Scottish budget.

    More than £620 million will provide ongoing agricultural support ensuring stability to farmers, crofters and land managers in 2023-24.

    It comes as the first tranche of the Less Favoured Area Support Scheme payments are set to arrive in bank accounts ahead of schedule before Christmas.

    The National Test Programme, which is helping farmers and crofters achieve statutory emissions targets, will see year two funded with £20 million.

    Less Favoured Area Support Scheme payments are being made a month ahead of previous years and total £55.8 million.

    Rural Affairs Secretary Mairi Gougeon said: “Our farmers and crofters are vital to Scotland’s economy and the Scottish Budget 2023-24 reflects that.

    “Despite the difficult financial circumstances we, like governments all over the world, are faced with, the Scottish Government has sought to protect financial support for our farmers – to provide cash flow certainty amid these extremely challenging times.

    “In addition, £405.5  million of Basic Payment Scheme and Greening payments have already been made to 17,001 farmers and crofters.”

    “Within the latest budget, those working the land in the most remote and fragile areas will continue to receive support through the Less Favoured Areas Scheme, which has been allocated £65 million.”

    “Our ambition to make Scotland a global leader in sustainable and regenerative agriculture is underlined by £44 million of funding.”

  • PRESS RELEASE : Fuel Insecurity Fund extended to help fuel poor households [December 2022]

    PRESS RELEASE : Fuel Insecurity Fund extended to help fuel poor households [December 2022]

    The press release issued by the Scottish Government on 19 December 2022.

    £20 million referendum funding will support people struggling with their energy bills.

    Thousands of vulnerable households will be supported by the continuation of the Scottish Government’s uprated £20 million Fuel Insecurity Fund.

    Announced as part of last week’s Scottish Budget 2023-24, the investment will enable third sector partners to continue to provide support to households who are at risk of self-disconnection or self-rationing their energy use. While the Scottish Government remains committed to engaging with the UK Government to deliver a referendum on Scottish Independence, funding that was originally earmarked for a referendum in 2023 will now be used to help tackle fuel poverty.

    Last week’s Scottish Budget included additional steps to address inequality while tackling the climate emergency including increased investment of over £366 million next year to support the delivery of the Heat in Buildings Strategy. It forms part of a package of measures introduced by the Scottish Government to protect the most vulnerable households from the impact of the current cost of living crisis.

    The decisions taken through the Emergency Budget Review in November enabled the Scottish Government to provide additional immediate support to people most impacted by the cost of living crisis, specifically rising energy prices, by doubling the Fuel Insecurity Fund to £20 million this year. The Scottish Budget is now protecting that investment into 2023-24.

    First Minister Nicola Sturgeon and Minister for Zero Carbon Buildings Patrick Harvie met with people on the frontline of tackling fuel poverty, while visiting the Wise Group in Glasgow, a social enterprise working to lift people out of poverty by providing mentoring support to help with employment and life skills and offering energy advice.

    First Minister Nicola Sturgeon said:

    “People across our country are paying a steep price for the economic mismanagement of the UK Government, with the cost of living forcing many to choose between heating their home or eating – the Fuel Insecurity Fund aims to stop that happening.

    “The Scottish Government has, and always will, use its currently limited powers to the maximum extent in order to meet the challenges being faced by the people of Scotland right now. Powers relating to energy markets are reserved to the UK Government, so I am renewing my call for further and more urgent action, to support the most vulnerable households.

    “With this intervention – as with many others the Scottish Government has set out – we are having to divert funding into policies that aim to minimise the impact on people as a direct result of UK Government policy.

    “The full powers of independence would enable us to make different choices and help people facing the devastating consequences of the cost of living crisis.”

    Minister for Zero Carbon Buildings and Tenants’ Rights Patrick Harvie said:

    “Everyone needs a safe, warm and affordable place to call home and yet despite this we know that many people are struggling under the weight of their energy bills and wider cost of living pressures. Last week, the Scottish Budget confirmed £366m for insulating homes and buildings and tackling fuel poverty as part of our £1.8 billion commitment to Heat in Buildings over this Parliament.

    “That is essential work to make sure that Scotland has warmer homes which are cheaper to heat for decades ahead.  We also need the full range of powers on matters like energy pricing, consumer protection and energy supply to make the biggest possible difference. But right now, the Fuel Insecurity Fund is a lifeline to many people struggling most with fuel poverty which is why we have made the commitment for next year.”

  • PRESS RELEASE : Scottish Budget prioritises £3.4 billion for justice [December 2022]

    PRESS RELEASE : Scottish Budget prioritises £3.4 billion for justice [December 2022]

    The press release issued by the Scottish Government on 19 December 2022.

    Almost £3.4 billion will be invested across the justice system in 2023-24 to fund vital front-line services, provide continued support for victims and witnesses, and to tackle the causes of offending.

    Underlining the Scottish Budget’s priority to support sustainable public services despite the cost-of-living crisis, the funding represents an increase of £165 million or a 5.8% increase on this year’s justice resource budget.

    Recognising the crucial role Police Scotland officers and staff play keeping our communities safe, the service will receive substantial additional resource funding of £80 million in the next financial year, a 6.3% increase. Police capital funding has been maintained at £45.5 million for investment in assets including the estate, fleet and technology. This brings the policing budget to £1.45 billion for 2023-24.

    Equal access to justice for all is a key priority for the Scottish Government, with an additional £3 million allocated in the budget to safeguard Legal Aid, and £3 million to strengthen access to Justice, to benefit deprived communities and vulnerable groups.

    Funding of more than £42 million will be maintained to continue to reduce the backlog of court cases built up during the COVID-19 period and for community justice services, including alternatives to remand. The Scottish Fire and Rescue Service will receive a £10 million increase to support service delivery and the Scottish Prison Service gets an additional £29 million to support a modern and safe prison system.

    Justice Secretary Keith Brown said:

    “This Budget will support vital front-line services, provide support for victims and witnesses, and allow us to tackle the underlying drivers of offending.

    “Our investment in policing has helped deliver historically low recorded crime rates, we have more police officers per head of population than England and Wales and new officers here start on significantly higher salaries that those in the rest of the UK.

    “The further increase of £80 million to police budgets next year builds on this solid track record to keep our communities safe.

    “In this difficult financial landscape it is prudent we bring absolute focus to our key priorities which is why this Budget also continues essential funding to provide emotional and practical support for victims, while safeguarding Legal Aid and equal access to justice both now and into the future.

    “Across the whole justice sector, this Budget will support delivery of our transformative reforms in a low crime environment where people feel safe.”

  • PRESS RELEASE : Record 91% of Scottish college leavers in positive destinations [December 2022]

    PRESS RELEASE : Record 91% of Scottish college leavers in positive destinations [December 2022]

    The press release issued by the Scottish Government on 16 December 2022.

    Minister welcomes figures showing more students are finding work.

    Higher Education and Further Education Minister Jamie Hepburn has welcomed figures showing the proportion of college leavers going on to positive destinations is at a record high.

    Figures from the Scottish Funding Council show that 91% of those completing college courses and leaving the college sector in 2020-2021 were in positive destinations, including further study, training, or employment, within three to six months.

    That is an increase of 6.6 percentage points on the previous year.

    Of those leaving the college sector, almost half (49.3%) gained employment within three to six months, with over two-fifths (41.7%) going on to further study at university.

    The proportion who were unemployed or unavailable to work fell to a record low of 9%, down from 15.6% in 2019-2020.

    Higher Education and Further Education Minister Jamie Hepburn said:

    “It is fantastic that nine out of 10 full-time college leavers are going on to positive destinations.

    “These figures clearly show the crucial contribution that Scotland’s colleges make to equipping their students with the skills and training they need to take their next steps.

    “The growth in the proportion of college-leavers securing employment, as the job market continues to recover following the pandemic, is an important sign of progress in strengthening Scotland’s economic prosperity.”

  • PRESS RELEASE : Record £19 billion for Health and Social Care in Scotland [December 2022]

    PRESS RELEASE : Record £19 billion for Health and Social Care in Scotland [December 2022]

    The press release issued by the Scottish Government on 16 December 2022.

    Supporting fair pay and sustainable services

    Health and Social Care services will receive the highest ever budget settlement over the next year, paving the way for sustainable public services in Scotland.

    The £19 billion package will help tackle the immediate pressures caused by the pandemic and a tough winter, while supporting the delivery of health and care services that are fit for the future.

    The Scottish Government has surpassed its commitment to ensure every extra penny it receives from the UK Government is spent on health and social care. This means an extra £1 billion will be available to improve front line services and help fund the NHS pay deal for 2022/23.

    Health Boards across Scotland will receive a 6% boost in funding as part of the Budget – bringing their total budget to £13.7 billion, which includes over £9 billion to give staff a fair wage.

    Social care and integration will also benefit from £1.7 billion in funding over the next year. This will help deliver vital reforms of social care, continue work towards creating the country’s first National Care Service, and improving conditions for care workers – by funding a £10.90 Real Living Wage for adult social care workers in commissioned services.

    This Budget continues to support prevention and early intervention, as well as the provision of quality community care, providing:

    More than £1.2 billion for mental health services to provide record staff numbers that provide more varied support and services to more people than ever.

    Over £2 billion to deliver and improve primary health care services in the community, enabling dental reform and supporting crucial GP services through investment in multi-disciplinary teams and targeted assistance to support system

    £160 million to address the public health emergencies and reduce the avoidable harms associated with drugs and alcohol.

    Fully restoring the budget for life-saving procedures such as thrombectomies – which remove blood clots – despite the need to make a short term reduction to tackle the inflationary pressures faced by the whole UK.

    Health Secretary, Humza Yousaf, said:

    “Frontline workers are the foundation of our health and care services and I am extremely grateful for them for getting us through the pandemic and facing-down one of the toughest winters in NHS history.

    “This historic settlement took some difficult decisions, but we are steadfast in efforts to address the immediate pressures on health and social care services, and support fair work and pay.

    “I want health and care services that are fit for the future – a future where Scotland continues to be the best place for health and care workers and where everyone gets the care that they need, where and when they need it.”

    John Watson, Associate Director of the Stroke Association in Scotland said:

    “The stroke community in Scotland was united in alarm over recent cuts to the thrombectomy programme and we therefore welcome this renewed funding of a life-saving, and cost-saving service. The Cabinet Secretary has now given us his assurance that the commitment to a national round-the-clock thrombectomy service remains.

    “We look forward to continuing this positive discussion, with the aim of a clear timetable for delivering one of the most effective and cost-saving procedures available to us.”

    Chest Heart and Stroke Scotland Chief Executive Jane-Claire Judson said:

    “We welcome that the Scottish Government has listened to stroke survivors, charities and health professionals and restored funding for developing a national thrombectomy service. This cost-effective and life-changing procedure can make a huge difference to stroke survivors ensuring many more are able to walk again, talk again and live their lives to the full.

    “We now need to see work on setting up a 24/7 national service restart as a matter of urgency and a timetable for delivery so that every stroke patient who needs it gets the best chance of living life to the full.”

  • PRESS RELEASE : Tax changes to support Scotland’s vital public services [December 2022]

    PRESS RELEASE : Tax changes to support Scotland’s vital public services [December 2022]

    The press release issued by the Scottish Government on 15 December 2022.

    Revenue to deliver £1 billion uplift in NHS funding.

    Proposed changes to a number of devolved taxes will raise additional revenue to support Scotland’s NHS and other public services, Deputy First Minster John Swinney has announced.

    On Income Tax, he set out plans to add 1 pence to the Higher and Top tax rates, maintaining the Starter and Basic Rate bands at their current level, and reduce the threshold at which people pay the Top Rate, from £150,000 to £125,140. According to the Scottish Fiscal Commission (SFC), this will raise £129 million.

    In addition, the Higher Rate Threshold will be maintained at its current level, increasing revenue by a further £390 million when compared to inflation according to Scottish Government estimates.

    The Scottish Fiscal Commission estimates that the tax decisions made in Scotland since income tax powers were devolved could raise around £1 billion more in 2023-24 compared to the income tax policy decisions made by the UK Government.

    A further £34 million is expected to be raised by increasing the Additional Dwelling Supplement from 4% to 6% from 16 December 2022, which is paid as part of Land and Buildings Transaction Tax (LBTT) on additional properties.

    During his Budget statement to Parliament, the Deputy First Minister also set out plans to:

    • freeze the non-domestic rates poundage and offer transitional relief for businesses seeing the most significant increases in their rateable values following the 1 April 2023 revaluation
    • maintain the residential and non-residential rates and bands of LBTT
    • increase the standard and lower rates of Scottish Landfill Tax, which will prevent cross-border movement of waste and support ambitions for the circular economy

    Mr Swinney said:

    “These tax decisions seek to strike a balance between ensuring there is enough money for public spending and acknowledging the challenging economic conditions facing households and businesses.

    “The Income Tax proposals I have put forward will enhance the Scottish Government’s progressive approach to tax. Using the additional revenue raised through our tax changes will allow us to make a £1 billion uplift to the NHS budget, above and beyond the frontline health consequentials we have received from the UK Government. At the same time, the majority of people in Scotland will still be paying less in taxation than if they lived in the rest of the UK.

    “On non-domestic rates, we have listened to businesses and by freezing the poundage we will deliver the lowest poundage in the UK for the fifth year in a row. This will ensure over 95% of non-domestic properties continue to be liable for a lower property tax rate than anywhere else in the UK.

    “Increasing the tax due on the purchase of additional dwellings such as second homes maintains our commitment to protect housing opportunities for first-time buyers in Scotland, while also raising vital extra revenue.”

  • PRESS RELEASE : Scottish Budget 2023-24 [December 2022]

    PRESS RELEASE : Scottish Budget 2023-24 [December 2022]

    The press release issued by the Scottish Government on 15 December 2022.

    Strengthening the social contract with Scotland’s people.

    Deputy First Minister John Swinney laid out “a different, more progressive path for Scotland” as he presented the Scottish Budget 2023-24.

    He promised to strengthen the social contract with the people of Scotland and pledged to do everything possible to shield families from the welfare cuts and austerity policies of the UK Government.

    Supporting sustainable public services through the cost of living crisis is a priority – including more than £13.7 billion for NHS boards and £2 billion to establish and improve primary healthcare services in communities, as well as £1.7 billion for social care and integration, paving the way for the National Care Service. This record investment goes well beyond any previous commitment to pass on all consequentials to health and social care, and delivers a £1 billion uplift to the health budget.

    Having already increased the unique Scottish Child Payment to £25 per week as part of a drive to eradicate child poverty, the Budget invests £428 million to uprate all other devolved benefits in April 2023 by September’s Consumer Price Index inflation level of 10.1%. It commits £20 million to extend the Fuel Insecurity Fund to provide a lifeline for households, including the most vulnerable, against rising energy prices.

    Scotland’s transition to net zero is boosted with increased investment to over £366 million in delivering the Heat in Buildings Strategy in 2023-24. This will help tackle fuel poverty as part of a £1.8 billion commitment over this Parliament to improve energy efficiency and decarbonise more than a million Scottish homes by 2030.

    The Budget commits £50 million to the Just Transition Fund for the North East and Moray – more than double the 2022-23 allocation – to diversify the regional economy away from carbon-intensive industries and capitalise on the opportunities presented by new, green industries.

    Strengthened by the agreement between the Scottish Government and the Scottish Green Party, the 2023-24 Scottish Budget also includes:

    • around £1 billion investment in high quality early learning and childcare provision, with a further £22 million invested in holiday food provision and expanding support for school-age childcare
    • £50 million for the Whole Family Wellbeing programme for preventative co-ordinated family support and a further £30 million to keep The Promise to care experienced children and young people
    • £80 million capital funding to support the expansion of free school meals
    • going beyond existing commitments with more than £550 million additional funding to Local Government
    • £165 million additional funding for frontline justice services and to continue with transformational reforms
    • a £46 million increase in resource funding to universities and colleges to ensure a highly qualified and highly skilled workforce for Scotland

    Mr Swinney said:

    “The Scottish Government, like governments all over the world, is faced with a difficult set of choices. Through this Budget we are facing up to our responsibilities while being honest with the people of Scotland about the challenges which lie ahead.

    “To govern is to choose and the Scottish Government has made its choice.

    “Within the powers available to us, we will choose a different path. A path which sees the Scottish Government commit substantial resources to protect the most vulnerable people of Scotland from the impact of decisions and policies made by the UK Government. We choose to stand firmly behind the Scottish people, investing in our public services and doing everything possible to ensure that no one is left behind.

    “This Budget strengthens the social contract between the Scottish Government and every citizen of Scotland for the wider benefit of society. This social contract means that people in Scotland continue to enjoy many benefits not available throughout the UK – including free prescriptions, free access to higher education and the Scottish Child Payment.

    “Because we know this progressive model works, we choose the path where people are asked to pay their fair share, in the knowledge that in so doing they help to create the fairer society in which we all want to live.”

  • PRESS RELEASE : A Budget for a fair Scotland [December 2022]

    PRESS RELEASE : A Budget for a fair Scotland [December 2022]

    The press release issued by the Scottish Government on 15 December 2022.

    Spending plan will protect families and public services.

    The 2023-24 Scottish Budget will take a distinctive approach to creating a fairer, more equal Scotland, Deputy First Minister John Swinney said.

    He stressed the three Budget priorities of eradicating child poverty, strengthening public services and moving towards a net zero economy were strongly linked and would give more people the opportunity to flourish.

    Ahead of delivering the Budget to Parliament today, Mr Swinney visited a scheme, delivered by City of Edinburgh Council and part-funded by the Scottish Government, installing insulation for households at risk of fuel poverty.

    He said:

    “I was encouraged to see the vital work being carried out to improve energy efficiency and make homes warmer for families facing significantly higher bills this winter. This scheme highlights how tackling the increased cost of living can assist our drive towards net zero, and is an example of the importance of effective public services.

    “Our Budget goals are mutually beneficial and represent a distinctive approach to the economic challenges we face. The Scottish Budget will take further steps to address inequality and eradicate child poverty. It will encourage a just transition to net zero, creating wealth and opportunity across the country. And it will be the catalyst for reforms necessary to ensure our first-class public services remain sustainable in the face of the challenges to come.

    “I would like to go even further but the cost of living crisis has also laid bare the fiscal constraints of devolution, as we cannot borrow to support day to day expenditure when times are hard to assist us through these difficult days. It is clear that businesses and households are paying a steep price for the economic mismanagement of the UK Government.

    “The cost of living crisis requires decisive action. In setting this Budget, the Scottish Government will use its limited powers to the maximum extent that is responsible, to meet the challenges faced by the people of Scotland.”

    Background

     The Scottish Budget 2023-24 will be presented to the Scottish Parliament on Thursday 15 December.

    The Scottish Government has provided more than £550 million since 2013 to councils across Scotland to provide insulation in hard-to-treat homes, helping 104,000 fuel poor households make their homes warmer and more energy efficient.

  • HISTORIC PRESS RELEASE : Chancellor announces new appointment, Stephen Nickell, to the Monetary Policy Committee [February 2000]

    HISTORIC PRESS RELEASE : Chancellor announces new appointment, Stephen Nickell, to the Monetary Policy Committee [February 2000]

    The press release issued by HM Treasury on 11 February 2000.

    Professor Stephen Nickell has been appointed to the Bank of England’s Monetary Policy Committee (MPC), the Chancellor Gordon Brown announced today.

    Professor Nickell is currently School Professor of Economics at the London School of Economics (LSE). Professor Nickell will take up his membership of the MPC on 1 June. He will replace Professor Willem Buiter whose three-year term as a member of the MPC expires on 31 May. Professor Buiter has been appointed Chief Economist of the European Bank for Reconstruction and Development.

    Gordon Brown said:

    “I am delighted that Stephen Nickell has agreed to join the Monetary Policy Committee. He has had a long and distinguished academic career, and his expertise in such areas as the labour market and productivity growth will be of invaluable assistance to the work of the Committee.

    “I am very grateful to Willem Buiter for his excellent contribution to the Committee’s work in the first three years of its existence, and wish him well in his new post.”

    CURRICULUM VITAE

    Name: STEPHEN JOHN NICKELL

    Date of Birth: 25 April 1944

    Nationality: British

    UNIVERSITY EDUCATION

    1. 1962-65 BSc Mathematics
    Pembroke College, Cambridge University

    2. 1968-1970 MSc Mathematical Economics and Econometrics (distinction)
    London School of Economics
    Ely Devons Prize

    EMPLOYMENT

    1. 1998 – Date School Professor of Economics, London School of Economics

    2. 1984 – 1998 Professor of Economics and Director of the Institute of Economics and Statistics, University of Oxford. Professorial Fellow of Nuffield College.

    3. 1979-84 Professor of Economics, London School of Economics.

    4. 1979 Visiting Research Associate, University of Princeton (Industrial Relations Section).

    5. 1977-79 Reader in Economics, London School of Economics

    6. 1974-75 Visiting Research Fellow, Ecole Nationale de la Statistique et de l’Administration Economique, Paris.

    7. 1970-77 Lecturer in Economics, London School of Economics

    8. 1965-68 Mathematics Teacher, Hendon County School, London.

    OTHER ACTIVITIES

    General Academic Activities:

    1973-87 Editorial Board, Review of Economic Studies

    1974-75 Assistant Editor, Review of Economic Studies

    1975-78 Joint Managing Editor, Review of Economic Studies

    1977-79, Programme Committee, Econometric Society
    1981-83 European Meetings

    1980-85 Programme Committee, Econometric Society World Congress

    1981-89 Treasury Academic Panel

    1981- Associate Editor, Economic Journal

    1983-87 Associate Editor, International Journal of Industrial Organization

    1983- Fellow, Centre for Economic Policy Research

    1984-98 Editor, Oxford Bulletin of Economics and Statistics

    1984-94 Council, Royal Economic Society

    1984-87 Economic Affairs Committee, ESRC (vice-chairman 1985-87)

    1985-88 Founding Council Member, European Economic Association

    1985 N&g Lecture, Austrian Economic Association

    1987-93 Council, Econometric Society

    1987-90 Research Grants Board, ESRC; Industry, Economics and Environment Research Development Group, ESRC

    1987 President’s Lecture, Scottish Economic Association

    1988-94 Scientific Council of the Center for Economic Research, University of Tilberg, Holland

    1990-94 Chairman, Research Grants Board, ESRC;
    Member of Council, ESRC

    1990- Advisory Board of the Institute for International Economic Studies, University of Stockholm, Sweden

    1990- Governor of the National Institute of Social and Economic Research

    1992 Mitsui lectures, University of Birmingham

    1994- International Board of Advisers of the Tinbergen Institute, Amsterdam

    1996- Labour Markets Panel, H.M. Treasury

    1998 Adam Smith Lecture, European Association of Labour Economists

    1999- Council, European Economic Association.

    Academic Consulting:

    H.M. Treasury; Manpower Services Commission; Department of Employment; Department of Health and Social Security; Economic and Social Research Council; Morgan Grenfell; Reserve Bank of New Zealand; OECD.

    Academic Honours:

    1980 Fellow of the Econometric Society

    1993 Fellow of the British Academy

    1997 Foreign Honorary Member of the American Economic Association


    LETTER TO: THE RT HON GORDON BROWN MP FROM PROFESSOR WILLEM BUITER

    I believe you have been informed by the Governor that I will not be a candidate for a second term as external member of the MPC. I am writing to you to explain the reason for this decision.

    It was a singular honour to be appointed a member of the MPC. My period on the Committee has been the high point of my professional career. Membership of the MPC is the most rewarding responsibility a monetary economist can aspire to.

    Your decision to grant operational independence over the conduct of monetary policy to the Bank of England was a bold and imaginative move. So was your insistence that the sole criteria for membership of the MPC would be professional competence and independence. The division of labour between the elected political authority which sets the target of monetary policy, and the appointed MPC charged with the pursuit of this target, without political interference of any kind, is a model of how a monetary authority should be designed. Even those who were sceptical at first must now be convinced of the wisdom of its design and implementation: the clear, numerical and symmetric inflation target, the existence of the ‘open letter procedure’, the transparency and openness of the arrangements and the accountability of those who participate in it. There is now a widely-based constituency for low inflation. There is growing awareness of the sometimes uncomfortable truth, that it is through the uncompromising pursuit of macroeconomic stability for the country as a whole, that we best serve the long-term interests of all its citizens and of its diverse regions, sectors and industries.

    With the end of my term approaching, I have given considerable thought to whether I should be a candidate for re-appointment. I have come to the conclusion that both the appearance and the substance of independence of the external members of the MPC are best served by restricting their membership to a single term – three years as envisaged in the Bank of England Act 1998. Come May 2000, I will have served for three years, one year under the interim arrangement in effect between June 1997 and the coming into force of the new Bank of England Act, and the two-year term I was appointed to in June 1998, as part of the procedure for staggering the appointments of the external members.

    Having reached the conclusion that, as a matter of principle, external members should be appointed for a single term only, I cannot in good faith claim special circumstances for myself, much as I feel tempted to do so. The past 2_ years have exceeded all my expectations. The new arrangements have worked and the UK’s model of central banking compares favourably with best practice elsewhere. I will look back with gratitude and a measure of pride on my term as a member.

    I hope that, in the years to come, I will be able to support in some other capacity, the process of progressive, radical reform of policies and institutions in this country, which is now my home. I want to thank you personally for having given me the opportunity to be part of the process of embedding macroeconomic stability in the UK in a set of rules and institutions that will stand the test of time.


    REPLY TO: PROFESSOR WILLEM BUITER FROM THE CHANCELLOR

    Thank you for your letter of 18 January.

    I would like to thank you very sincerely for the excellent work you have done on the Monetary Policy Committee. You have played a significant role in helping to establish the credibility of the new institutional framework.

    I am delighted you enjoyed your time on the Committee and I wish you every success for the future.

  • HISTORIC PRESS RELEASE : Equipping Britain for the Future [February 2000]

    HISTORIC PRESS RELEASE : Equipping Britain for the Future [February 2000]

    The press release issued by HM Treasury on 11 February 2000.

    The Chancellor Gordon Brown today spelt out the benefits of devolution and how working together the whole of Britain could rise to the challenge of e-commerce.

    Chairing the first Joint Ministerial Committee on the Knowledge Economy, and also the first to be held outside London the Chancellor said:

    “Today we are agreeing measures which will help us rise to challenge of e-commerce.

    “By 2002 every school to be linked to the Internet. 1,000 computer learning centres throughout the country. 200,000 computers loaned to families who need them. New incentives for small businesses to join the e-commerce revolution.

    “Amid the day to day news about devolution, it is important not to lose sight of the longer view.

    “The case for devolution starts from the over-centralised, remote and insensitive machinery of government that we inherited in 1997.

    “The old uniform and rigid state – with everything directed from London – denied expression to our regions and nations. So devolution does not create new identities within Britain but simply gives democratic expression to existing identities.

    “And centralisation did not make for good government, nor does a centralised state reflect lasting and shared British values .

    “So there is no question of a dangerous meddling with British traditions and the constitutional reforms we made were not invented in a laboratory. They responded to the strong sense that our constitution should be updated to reflect enduring and shared British values – not least that government should always be close to the people.

    “The new democratic constitutional architecture not only rights past wrongs but better equips Britain for the future. The new devolved institutions allow for innovation in policy making.

    “The proposed Drugs Enforcement Agency in Scotland may, once up and running, lead the way for the whole country. The Welsh Assembly has introduced new services for the elderly, leading, not least, in concessionary travel. And added to that is the innovative work of regional development agencies in England tackling skill shortages and the investment shortfall in their areas.

    “It is good for Britain that new centres of initiative are already developing. Because in the new devolved framework, the whole of Britain can learn and benefit from the distinctive initiatives and energies of each of its parts. In a very real sense the new Britain can draw both from our democracy and our diversity.

    “Those who assume that the next stage will be dominated by messy arguments about dividing up the spoils or simply by confrontation are also guilty of being backward looking – still looking only to Whitehall to solve their problems, arguing over who the centre will favour.

    “Instead of people looking upwards to Whitehall for their solutions, from region to region, locality to locality, more and more people will themselves take more charge of the decisions that affect their lives. So the next stage will be further devolution and, through, for example, elected mayors, the democratic strengthening of local government.

    “This does not threaten Britain – and its democracy – but strengthens it, applying lasting British values to new conditions. So British values and British institutions, until recently increasingly at odds with each other, are now coming together.”