Category: Press Releases

The press release issued by HM Treasury on 20 January 1999.

John Kingman, currently head of the Treasury’s Productivity Team, has been appointed as head of Communications and Strategy. His responsibilities will cover management of the Treasury’s existing Communications Team. He will also have a new responsibility for helping to manage the interaction of policy and presentation work. He will attend policy discussions of the Treasury’s Management Board.

John succeeds Peter Curwen who, after nearly three years as Head and formerly Deputy Head of Communications, has decided to return to the policy side of the Treasury to set up a new team in the Budget and Public Finances Directorate on EU and international taxation issues.

In due course a new special adviser will be appointed, who will have a range of policy and political responsibilities.

Notes for Editors

1.  John Kingman rejoined the Treasury last year after a spell in the private sector, first on the Financial Times “Lex” Column and then in Sir John Browne’s office at BP. His civil service posts have included working on transport policy and public sector pay, as well as being Private Secretary to the Rt Hon Stephen Dorrell MP, both when he was Financial Secretary to the Treasury and when he was Secretary of State for National Heritage. Since returning to the Treasury, John has been Head of the Productivity Team.

2.   As now, each Treasury Minister will have a press officer dealing with the issues for which they are responsible and for their day-to-day relations with the press. Steve Bird, who will remain as Deputy Head of the Team, will continue as press officer for the Chief Secretary. Treasury press officer Fiona Hamilton will fulfil this role for the Chancellor; Helen Etheridge for the Paymaster General; Malcolm Graves for the Financial Secretary; and Charles Keseru for the Economic Secretary.

The press release issued by HM Treasury on 19 January 1999.

New measures to ensure that the new financial services regulatory regime is open and accountable have been announced today by the Economic Secretary, Patricia Hewitt.

The measures follow responses to the consultation on the draft Financial Services and Markets Bill which will establish the Financial Services Authority (the FSA) as the single financial regulator. They are:

• the Treasury will have the power to commission an independent report, at periodic intervals, into the efficiency and economy of the FSA’s operations;
• the bill will require a majority of the FSA Board members to be non-executives;
• the FSA will be required to maintain consumer and practitioner panels. The panels will have a role in assessing the performance of the FSA against its statutory objectives;
• the FSA will be required to hold an annual public meeting to discuss its annual report. The Treasury will also be discussing with the FSA an agreed list, to be published in due course, of contents of the annual report; and
• the FSA will be required to consult upon its arrangements for independent investigation of complaints made against it. As well as being able to report publicly on his investigations, the investigator will also have the power to publish the FSA’s responses to his recommendations.

There will also be new safeguards in the bill covering the FSA’s rule-making processes. These will mean:

• the FSA will have to include an explanatory memorandum when proposing new rules or changes to existing rules setting out the purpose of the proposals and their compatibility with the regulatory objectives;
• when the final rule change is published the FSA will be required to publish a statement of any alterations from the original proposal and to issue a revised version of the cost-benefit analysis.

Announcing the measures Ms Hewitt said:

“There is widespread support for our determination to ensure that the FSA continues to operate in a fair, open and accountable manner.

“These measures will build on the accountability framework in the draft Bill. The framework will ensure that the FSA is properly accountable to Ministers and Parliament, and to practitioners and consumers.”

The press release issued by HM Treasury on 14 January 1999.

Over 350,000 people, who suffered a loss because of  personal pensions mis-selling, have now accepted offers of compensation. This telling response to the Government’s support for the priority pensions review was today reported by the Economic Secretary Patricia Hewitt.

Welcoming the latest figures for firms monitored by the Treasury, Ms Hewitt said:

“It is good news that I can today report significant progress in the review of priority cases. When we took office, more than two years after the review began, the firms with most cases had completed only 15%. The latest figures show them reaching 94%.

“Firms have now recognised that this Government is committed to seeing pensions mis-selling sorted out and the victims of mis-selling receiving the redress they are entitled to.”

Of the 21 firms whose results are published today:

• one has still to resolve 75 per cent of its cases; and
• 17 firms have now resolved over 90 per cent of their cases.

The time limit for completion of the priority review, set by the Personal Investment Authority (PIA), has now expired for 19 more firms. By 31 December 1998 all firms should have completed their priority reviews. Consistent with the treatment of the 20 firms already removed from the Treasury’s monthly list, the Minister said that the others will be removed if, in the PIA’s assessment, they have met their targets.

The Minister warned firms that she would be closely monitoring progress in phase 2 of the review.  She added:

“Firms have eventually learned the lessons of phase 1 of the review. I expect the whole industry to carry forward recent progress into phase 2. The Government and the  regulators will no longer tolerate delay. Firms must adhere to the regulators’ timetable for completion of  phase 2. Only then will customers be able to regain confidence in the financial services industry.”

As the regulators’ advertising campaign for phase 2 of the pension review gets underway, Ms Hewitt encouraged younger people to take the opportunity of finding out whether they might be due redress for mis-selling.

Up to 1.8 million people may need to have their cases reviewed in phase 2. FSA has instructed firms to write to all customers who might have been mis-sold a pension by the end of April. The Minister urged anyone who receives a letter from their pension firm to read it carefully and complete the form. She said:

“Consumers have their part to play in the review. If you receive a mailing from your firm with ‘R U Owed?’ on the envelope, read it carefully. If you think you are affected, send the requested information back to the firm.

“Investors who were badly advised and lost out as a result could be owed as much as 4,000 Pounds or more. That is worth the time to sit down and work out whether your case should be reviewed. As the adverts say – ‘Mis-sold a pension? – They O U’.”

The press release issued by HM Treasury on 13 January 1999.

Decent childcare at an affordable price for those families who wish to work should be a right, not a privilege, said the new Paymaster General Dawn Primarolo today, as she outlined the Government’s balanced approach to helping families in home and at work.

The Paymaster was discussing the childcare tax credit – part of the new Working Families Tax Credit (WFTC) and Disabled Person’s Tax Credit (DPTC) – which will help with childcare Costs for children up to ages of 15 and 16.

“The WFTC is very good news for about one and a quarter million families on low to middle incomes who are likely to qualify for it.  A major obstacle faced by many parents with young children who want to return to work – whether they are lone parents or a couple – is the cost of childcare.  A radical  new feature of the WFTC – the childcare tax credit – is designed to help remove this obstacle.  Choosing to stay at home with children is of course a right that many parents enjoy, and those with a working partner can also get support with WFTC.

“The childcare tax credit will also help families with older children. In line with our National Childcare Strategy, parents will be able to get help with childcare costs up to the September following the child’s 15th birthday. For disabled children the childcare tax credit can be claimed until the child’s 16th birthday.

“The childcare tax credit is more generous than the childcare disregard in Family Credit, which the childcare tax credit replaces – it means that working parents will be able to get up to 105 Pounds per week towards their childcare costs. And,  unlike the disregard, it will benefit working families across a wide range of incomes, including those on the lowest incomes.

“Of course we have also to make sure that the help that we give supports our commitment in the National Childcare Strategy to promoting quality childcare.  The current benefit rules for eligible childcare – upon which we are building – already enable families to use registered childminders and registered nurseries.  But the world has  moved on and we recognise that childcare like this may not appropriately fill the needs of all the children of working families who can receive tax credits.

“So the Government is looking at all the types of childcare provided currently, their quality assurance and whether the types of eligible childcare for the childcare tax credit could be extended.  We are looking particularly at care provided for children between 11 and 14 – who are beyond the age covered by most of the current regulatory arrangements – and at care provided for disabled children where there may be special care needs.”

The press release issued by HM Treasury on 13 January 1999.

Gift Aid 2000, a major campaign to encourage regular donations – particularly by young givers – to charitable organisations working on education and anti-poverty projects in the world’s poorest countries, was announced by Economic Secretary Patricia Hewitt today.

Gift Aid 2000 will raise public awareness of the tax relief available under the Millennium Gift Aid (MGA) tax relief scheme, announced by the Chancellor in the March 1998 Budget, and provide a central contact point for donors wishing to give to eligible projects.

Gift Aid 2000 will achieve a high public profile through a 4 million Pounds advertising campaign to be launched in the spring. Mrs Hewitt also announced today that the Rainey Kelly Campbell Roalfe (RKCR) advertising agency has been appointed to handle the campaign.

Announcing Gift Aid 2000, Mrs Hewitt said :

“Gift Aid 2000 marks a major step forward in delivering the benefits of Millennium Gift Aid to projects designed to help improve education and tackle poverty in eighty of the  world’s poorest countries.

“It will ensure that the additional money provided by the Government to these projects through tax relief on donations of 100 Pounds or more made by the end of the year 2000 can be directed effectively to the charities doing so much to help to improve the quality of life and the prospects for development in these countries.”

Gift Aid 2000 will provide a central identity for the campaign to encourage donations to designated charitable projects, particularly among 18 to 34 year old potential donors, through a striking logo which will brand the Inland Revenue advertising campaign and which charities can use on their own messages to potential donors.

It will also provide a telephone contact point which will enable donors responding to the Inland Revenue campaign to make their donations and, where necessary, help them to identify particular projects or countries which they wish their donations to assist.

The campaign will begin in the spring, timed to enable givers wishing to give an affordable 5 Pounds per month donation to reach the MGA qualifying figure of 100 Pounds by the end of the qualifying period, 31 December 2000. It will include TV advertisements and national press inserts designed to appeal primarily to younger donors, but raising awareness of the MGA tax relief provisions among all potential donors.

Three advertising agencies (RKCR, DMB&B and Lowe Howard Spink) were invited to present their ideas in a pitch arranged for the Inland Revenue by the Central Office of Information (COI).

Alternative creative ideas from RKCR and DMB&B were put into research before the winning approach developed by RKCR was chosen after receiving the most positive responses. The three competing agencies were selected following advice from the Advisory Committee on Advertising (ACA).

The press release issued by HM Treasury on 12 January 1999.

People and organisations on Merseyside had the opportunity to tell Patricia Hewitt, the Economic Secretary to the Treasury, about the problems of lack of access to financial services and possible remedies to the problem.

The discussion, hosted by Speke Community Credit Union, is part of a series around the country organised by the Treasury. They have been organised to help inform the work of the Treasury’s two policy action teams which are looking at the problems of financial exclusion – one on lack of access to personal financial services e.g. bank accounts and the other on finance and support for small firms.

The aim of the discussions is to draw on the experience of local people on Merseyside, encourage discussion of financial services problems of people in deprived neighbourhoods and explore possible solutions.

Speaking at the forum in Liverpool the Minister said:

“This Government’s aim is to create a modern and decent society where there are no forgotten people. That is why tackling social exclusion is a top priority.

“Financial exclusion is both a symptom and cause of that social exclusion. People in our most deprived neighbourhoods get locked into a cash economy and, too often, financial services mean cheque cashing shops, the pawnshop and illegal loan sharks. This Government is not prepared to accept a society where economic opportunity is restricted in this fashion.

“And we also want to encourage enterprise in deprived neighbourhoods – this means better access to capital for small firms, including those starting up. Just because a  neighbourhood may be poor in its physical and economic standing does not mean that it cannot be rich in people with ideas and initiative to start up and run their own business.

“The seminar today is an opportunity for the people on Merseyside to tell the Government about the problems on the ground and how we can increase access to financial services.”

The main issues for discussion will be:

• small firm finance;
• small firm support and mentoring;
• financial education;
• access to bank accounts and other personal financial
  services; and
• credit union development.

The press release issued by HM Treasury on 21 December 2022.

The press release issued by HM Treasury on 8 January 1999.

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

CHIEF SECRETARY, ALAN MILBURN MP

• Public expenditure planning and control (including local authorities and nationalised industries finance).
• Value for money in the public services, including Public Service Agreements.
• Departmental Investment Strategies including Capital
  Modernisation Fund and Invest to Save budget.
• Public/Private Partnerships including Private Finance
  Initiative.
• Procurement policy.
• Public sector pay, including parliamentary pay, allowances and superannuation.
• Presentation of economic policy and economic briefing.
• Welfare reform.
• Devolution.
• Strategic oversight of banking, financial services and
  insurance.
• PSX (Public services and expenditure), QFL (Forward Legislation), GL (local government), HS (home and social affairs), and EA (economic affairs) committees.
• Resource Accounting and Budgeting.

PAYMASTER GENERAL, DAWN PRIMAROLO MP

• Minister responsible for Inland Revenue, Customs and Excise and the Treasury and with overall responsibility for tax and the Finance Bill.
• Personal taxation, NI contributions, tax credits.
• Business taxation, including corporation tax.
• Capital gains tax.
• Inheritance tax.
• VAT.
• European and International tax issues.

FINANCIAL SECRETARY, BARBARA ROCHE MP

• Growth, with responsibility for the growth unit and
  productivity agenda.
• Small firms and venture capital.
• Science, Research and Development.
• Welfare to Work issues.
• Competition and deregulation policy.
• Export Credit.
• Customs and Excise taxes, except VAT and road fuel duties.
• North Sea Taxation.
• Support to the Paymaster General on the Finance Bill.
• Parliamentary financial business, PAC, NAO.
•  LEG Committee (Current Legislation).
• Support to the Chief Secretary on the Financial Services & Markets Bill.

ECONOMIC SECRETARY, PATRICIA HEWITT MP

• Banking, financial services and insurance and support to the Chief Secretary on the Financial Services & Markets Bill.
• Foreign exchange reserves and debt management policy.
• Support to the Chancellor on EU and International issues.
• Responsibility for National Savings, the Debt Management Office, National Investment and Loans Office, Office of National Statistics, Royal Mint and the Government Actuary’s Department.
• Environmental issues, including ‘green’ taxes and other environmental economic instruments.
• Taxation of company cars and road fuel; Vehicle Excise Duty.
• Financial services tax issues (eg ISAs, stamp duty,
  pensions).
• Support to the Paymaster General on the Finance Bill.
• ESOPs.
• Treasury interest in general accountancy issues.
• Support to the Chief Secretary on Resource Accounting and Budgeting.
• Charities and charity taxation.
• Women’s issues.

MINISTER OF STATE, LORD SIMON

• EMU business preparations.
• Economic reform in Europe.
• Chairman of the Inter-departmental taskforce on
  competitiveness in Europe.
• Member of the (E)DOP Ministerial Sub Committee on European Issues.

The press release issued by HM Treasury on 8 January 1999.

Possible new tax measures to encourage corporate venturing and more business investment in R&D form part of a package set out today by the new Paymaster General Dawn Primarolo, to tackle the UK’s productivity gap.

Speaking at the fourth joint Treasury/DTI Productivity Challenge Roadshow at the Nissan car plant in Sunderland, the Paymaster said:

“The Government has shown its determination to tackle the UK’s productivity challenge using all the levers at its disposal, including the tax system.  But to do so effectively, it needs the help of business to inform the debate and design effective policies.”

“Last autumn we set out our diagnosis of the UK’s productivity gap, and our emerging ideas for policies across the four key areas of innovation and enterprise, investment, competition and skills.  Today, I am taking the debate forward on business innovation and enterprise – two of the key driving forces in improving productivity.”

The Paymaster invited business to take part in consultation with Government on:

• specific proposals, to be announced later this month, on making existing tax incentives for R&D investment more user-friendly by clarifying the definition of R&D;
• further ideas, to be announced in the next few months, for a possible new tax measure to encourage small and medium sized enterprises to invest in R&D;
• how best to stimulate corporate venturing in the UK (whereby large companies invest in and form partnerships with smaller enterprises) and what scope there could be for a measure of tax relief to kick start this activity.

These measures form part of a wider productivity agenda, announced in November’s Pre-Budget Report, which include:

• a wide ranging review of the banking sector to examine current levels of innovation, competition and efficiency;
• a review of policies on employee share ownership, to encourage more employees to take a stake in their companies;
• a coordinated look at the impact Government departments have on productivity in the wider economy by a new Productivity and Competitiveness Cabinet Committee;
• examining how best to encourage sustained entrepreneurial investment; and
•  how to encourage business innovation through simplification of the tax treatment of intellectual property.

The Government will be bringing forward further specific proposals on this agenda over the coming months.

The Paymaster said:

“On all these tax issues, we will clearly need to weigh up the cost effectiveness of specific measures. But to do so, we first need a level-headed assessment of their impact on business innovation and enterprise. That means business and Government working together throughout the policy debate.”

Trade and Industry Minister Lord Simon, who hosted the roadshow, said:

“This roadshow is a unique opportunity for Government and business to exchange ideas and discuss solutions to close the productivity gap. Holding the roadshow here in  Sunderland at the Nissan plant is ideal, as Nissan are leaders in their industry in terms of productivity.”