Category: Press Releases

The press release issued by HM Treasury on 12 August 1998.

Commenting on today’s Inflation Report from the Bank of England and today’s Labour Market Statistics, Stephen Byers, Chief Secretary to the Treasury, said:

“I welcome today’s good news on the economy showing more jobs, falling unemployment and a welcome reduction in earnings growth.

“At a time of instability in the international economy, especially in the Far East, it is vital that we build a stable economy capable of sustained and steady growth, in contrast to  the cycle of boom-bust that has plagued our economy in the past.

“Today’s Inflation Report from the Bank of England shows that following the Government’s tough action to get the economy back on-track, growth is set to strengthen through next year with inflation falling to its 2 1/2% target.

“The projections take full account of the Government’s prudent spending plans which lock in the fiscal tightening already achieved. The Bank confirm that borrowing is set to fall by 3 1/2% of national income, exactly as set out in the March Budget.

“Today’s news shows that we are on course to achieve economic stability.”

The press release by HM Treasury on 11 August 1998.

The total remuneration of major privatised utility company boards has increased by around 18 per cent over the last year, Treasury analysis of a Utility Week survey showed today.

The survey, which showed total utility boardroom remuneration growth of 15 per cent, shows a rise of  around 18 per cent for major privatised utility companies. The figures also show some individual chief executives receiving pay increases of over 40 per cent.

Chief Secretary Stephen Byers said today:

“The Government has said time and time again that pay responsibility must be shown from the boardroom down to the shop floor.

” People must recognise that today’s excessive pay increase could be tomorrow’s interest rate rise or mortgage increase. That is why the Government warned, in response to the consultation on the Utility Green Paper, that it would consider taking action to increase shareholder control over directors’ pay unless there is a more positive approach by all companies. For the price regulated utilities, we  believe that regulators should write an open letter to the remuneration committee setting out how well service standards have been achieved.

“Today’s figures give cause for concern. Where performance has not been outstanding, it should not be rewarded. The Government wants to see boardroom pay linked to the achievement of rigorous, long-term performance standards. Consumers expect and deserve high standards of service, and the Government has set out steps to develop a clearer link between the setting of boardroom pay and the achievement of demanding service standards. There is a particular concern where consumers do not have an effective choice of supplier. The interests of customers should be set firmly on the boardroom agenda; these figures suggest this is not the case.”

The press release issued by HM Treasury on 19 December 2022.

• Alcohol duty freeze extended six months from 1 February to 1 August 2023.
• Part of government’s responsible management of UK economy, plan aims to reassure and provide certainty to pubs, breweries and distilleries facing tough challenges ahead.
• End date aligns with new simpler alcohol tax system taking effect, with Chancellor reserving decision on future duty rates for Spring Budget 2023.

In a statement to the House of Commons, Exchequer Secretary to the Treasury James Cartlidge laid out a plan designed to provide certainty and reassure pubs, distilleries, and breweries as they face a challenging period ahead.

While new duty rates usually come in on the 1 February each year, Mr Cartlidge set out that this year the duty rates decision will be held until the Chancellor Jeremy Hunt delivers his Spring Budget on the 15 March 2023.

Further, the Minister made clear that if any changes to duty are announced then, they will not take effect until 1 August 2023. This is to align with the date historic reforms for the alcohol duty system come in, and amounts to an effective six month extension to the current duty freeze.

As part of the government’s commitment to responsible management of the UK economy, these changes will provide pubs, breweries, distilleries and other alcohol-related businesses with increased certainty to plan and make investment decisions more effectively.

Exchequer Secretary to the Treasury James Cartlidge said:

“Today’s announcement reflects this government’s commitment to responsible management of the UK economy and supporting hospitality through a challenging winter.

“The alcohol sector is vital to our country’s social fabric and supports thousands of jobs – we have listened to pubs, breweries and industry reps concerned about their future as they get ready for the new, simpler, alcohol tax system taking effect from August.

“That’s why we have acted now to give maximum certainty to industry and confirmed there will be just one set of industry-wide changes next summer.”

The current alcohol duty freeze was announced at Autumn Budget 2021, saving consumers over £3 billion over five years. It was expected to come to an end on 1 February 2023, following the Chancellor’s reversal of most of September’s Growth Plan to restore trust in the economy and strengthen public finances.

At Autumn Budget 2021 the government announced the biggest reforms to alcohol duty in 140 years. The changes overhaul the UK’s outdates rules following exiting the EU by radically simplifying the entire system and slashing red-tape. To give industry more time to prepare, September’s Growth Plan set out that the reforms would take effect from 1 August 2023.

The new alcohol tax system will adopt a common-sense approach, where the higher a drink’s strength the higher the duty, whilst new reliefs will be made available to help pubs and small producers thrive.

New Draught Relief will be worth £100 million a year and will ensure smaller craft producers can benefit, the threshold for qualifying containers will be 20 litres.

Small Brewers Relief will be renamed Small Producer Relief, reformed and expanded. Until the revamp, a cliff-edge existed when relief is withdrawn for brewers who make more than 5,000 hectolitres a year. This will be addressed, there will instead be a gradual taper to the removal of relief, which will empower small breweries to grow, after they had made clear through consultation that the current design was acting as a barrier. Further, the expansion of the relief means that all producers that make drinks below 8.5% – mostly craft brewers and cidermakers – will be able to get relief on their products.

The alcohol duty reforms will help create a simpler, fairer and healthier duty system. Higher rate for sparkling wines will come to an end, meaning they will pay the same rate as still wine. Liqueurs will be put on the same footing as fortified wine, meaning a sherry and Irish Cream will now pay the same duty, and super-strength ‘white cider’ will rise to address public health concerns.

The wine industry will also be supported as they adapt to the new system. All wine between 11.5-14.5% alcohol by volume (ABV) to calculate duty as if it were 12.5% ABV for 18 months from the implementation of the new system.

The press release issued by HM Treasury on 24 September 1998.

“Our reforms of the financial services regulatory regime will enhance our reputation as a clean and attractive place to do business, and increase the public’s confidence in the industry,” said Chief Secretary Stephen Byers today. He was speaking to a Financial Services Authority (FSA) conference in London where he also gave examples of the type of behaviour which will be covered by a new code of conduct.

He also emphasised the importance of having a robust regulatory structure in place to maintain London’s pre-eminence in the financial services area at a time of global economic turmoil elsewhere;

“Recent events in Japan and elsewhere have shown that highly developed economies require highly developed and transparent systems for supervising financial services. Where supervision is ineffective and fails to command confidence the health and growth prospects of the whole economy can be threatened. London and the UK generally has an excellent reputation. The creation of the FSA is an opportunity to enhance that reputation further.

One area which will contribute to enhanced confidence is our new measures to deal with market abuse. These fill a gap that currently exists. A new code of market conduct will underpin this regime. It will detail the type of abuses which we are seeking to deter and set out safe harbours. Examples of the kind of behaviour include:

• artificial transactions which give the market the wrong impression as to the real supply and demand for an investment;
• abusive squeezes whereby the position of one player in the market, who has temporary control over the supply of a product, results in arbitrary prices; and
• misuse of privileged information which is not available to the rest of the market.

These measures, linked to our proposals to deliver greater consumer protection, are all aimed at making sure that the UK has a fair and balanced regime fit for the future.”

The press release issued by HM Treasury on 22 September 1998.

“Improving skill levels is critical to improving UK productivity and therefore to growth and higher living standards for all.” This was the message from the seventh in the series of seminars aimed at boosting UK productivity.

The seminar was hosted by the Chancellor Gordon Brown, the Secretary of State for Education and Employment, David Blunkett, and Secretary of State for Trade and Industry, Peter Mandelson.

It was addressed by Larry Katz, the distinguished US economist and former chief economist to the US Department of Labor and looked at how the generation and utilisation of skills affects UK productivity performance.

Commenting, the Chancellor said:

“Improving skill levels is critical to improving UK productivity. To keep pace with the rapidly advancing needs of technology we need more and better skilled people. This means that we need training that is flexible, innovative and responsive to the needs of business and employees. Public and private sectors must work together to ensure that we have an education and training system that delivers.”

Mr Blunkett said:

“Raising the skill levels of the workforce is one of the government’s central economic objectives. Skills are the key to our future economic prosperity, bringing better jobs and higher living standards. We have made a good start in raising standards in our schools and in developing lifelong learning. But I want us to continue to improve, working with employers and employees. The Skills Task Force, which produced its first report this month, will help us identify where the main skills gaps are and how they can be bridged.”

Mr Mandelson said:

“Peoples’ knowledge and the ability to share and exploit it will become increasingly important, as we move towards a knowledge driven economy. To meet the demands that this will place on both the workforce of today and of tomorrow, we have to place a higher value on skills and the acquisition of knowledge than we currently do. It is only by building on and using people’s skills that we will be able to compete effectively.”

The press release issued by HM Treasury on 21 September 1998.

There has been further progress in dealing with priority cases among the firms, involved in personal pensions mis-selling, monitored by the Treasury, Economic Secretary Patricia Hewitt said today.

Of the 29 firms, whose results to the end of August are published today, only seven have resolved less than 75 per cent of their priority cases. Four of the those seven are networks of independent financial advisers. In March only 7 of the firms monitored by the Treasury had resolved over 75 per cent of their cases.

Ms Hewitt said:

“These results show what can be accomplished when real effort is put in by the firms. Every one of these firms must now focus on the deadline of the end of the year for completing their priority reviews. I want all these firms to demonstrate to their customers, in the most practical way possible, that they are putting things right.”

The Treasury’s published figures mainly relate to cases involving older investors, including those who have retired. In August the Financial Services Authority (FSA) published guidelines on how firms should review cases of younger investors.

Commenting on the FSA’s initiative, the Minister said:

“It is now time for firms to start gearing up for the second phase of work on remedying mis-selling of personal pensions. I want to see all firms prepared and ready to go at the start of next year. There must be no return to the foot dragging which accompanied the start of the phase I review.

“And frankly I am appalled at the attitude of some independent financial advisers to the task ahead. Their campaign to stop the phase 2 review shows a total disregard for their customers’ welfare and does them no credit.”