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  • HISTORIC PRESS RELEASE : New Ambitions for Britain – The Government´s Second Finance Bill [July 1998]

    HISTORIC PRESS RELEASE : New Ambitions for Britain – The Government´s Second Finance Bill [July 1998]

    The press release issued by HM Treasury on 31 July 1998.

    Measures to promote a successful economy and a fairer society were enacted today when the Finance (No. 2) Bill received Royal Assent.

    Financial Secretary Dawn Primarolo said today:

    “This Act promotes fairness for all – business, employment, the family – and ensures that everyone has a fair chance to realise their ambitions. It is an Act for opportunity and stability.”

    The Finance Act implements many of the measures of the March Budget, including:

    • a Code for Fiscal Stability with a statutory basis to ensure fiscal policy is open, transparent, accountable and set in Britain’s long term interests;
    • reducing rate of corporation tax to 30 per cent (and to 20 per cent for small companies) – the lowest rates ever;
    • major reforms of capital gains tax, including a new long-term effective rate of 10 per cent on business assets, that will encourage long-term investment and growth of dynamic firms;
    •  measures to protect the environment;
    •  measures to ensure everyone pays their fair share of tax.

    Together with:

    • extending the New Deal to new groups excluded from the labour market;
    • a major programme of tax and benefit reform to make work pay, including the new Working Families Tax Credit and restructuring National Insurance
      Contributions;
    • new help for the costs of childcare and a significant boost to child benefit;
    • as well as £1 billion of extra spending for health, education and transport for this year.
  • HISTORIC PRESS RELEASE : Whole of Government Accounts [December 1998]

    HISTORIC PRESS RELEASE : Whole of Government Accounts [December 1998]

    The press release issued by HM Treasury on 30 July 1998.

    The Chancellor of the Exchequer, Gordon Brown, announced today the results of a joint study by the Treasury and the National Audit Office into the development of Whole of Government Accounts (WGA) for the UK.

    Commenting on the Treasury’s report, the Chancellor said:

    “Developing Whole of Government Accounts covering the whole public sector will be a major step in underpinning the new fiscal framework outlined in the Economic and Fiscal Strategy Report published in June.  It will put the UK amongst the forerunners in the field of countries who are developing financial reporting which supports a new enhanced fiscal framework. The new accounts will help to deliver the Government’s commitment to more transparent fiscal reporting, using best practice accounting methods, set out in the Code for Fiscal Stability published alongside the Budget in March.

    “I look forward to seeing the results of the further research into developing Whole of Government Accounts once the next phase of the work outlined in the report has been completed.”

    The main conclusions of the Treasury’s report are that:

    • the Government should proceed with work on the development of Whole of Government Accounts;
    • the ultimate aim should be a full set of audited accounts based on UK GAAP for the whole public sector alongside improved but unaudited national accounts   based on statistical principles;
    • practical considerations suggest a dual approach to developing GAAP-based Whole of Government Accounts, with work being undertaken on a consolidation of the accounts of central government into a Central Government Account (CGA) alongside work in parallel to establish a basis for consolidating other parts of the public sector into a Whole of Government Account;
    • a decision on whether to produce a Central Government Account for 2001-02 would be taken in 2000.  If this were not possible, an alternative would be to move straight to Whole of Government Accounts, with the first set of GAAP-based accounts produced for 2003-04, if the decision to proceed was justified once a full cost/benefit analysis had been completed;
    • the next step will be for a project team to be set up and a detailed project plan drawn up to cover the forward programme of action outlined in the report.
  • PRESS RELEASE : Village Halls to see major revamp as Platinum Jubilee fund opens [December 2022]

    PRESS RELEASE : Village Halls to see major revamp as Platinum Jubilee fund opens [December 2022]

    The press release issued by the Department for Environment, Food and Rural Affairs on 20 December 2022.

    £3 million capital fund opens for applications. Village halls in England will now be able to apply for grants to renovate vital community assets.

    Village halls across England can now apply for grants to improve and modernise their facilities, as the Platinum Jubilee Village Hall Fund opens for applications today (20 December).

    Launched to mark the occasion of Her Late Majesty Queen Elizabeth II’s Platinum Jubilee in June 2022, the fund recognises the important role that village halls play in supporting rural communities.

    Village halls are key cornerstones in the fabric of rural life, providing essential services and bringing people together through social and recreational activities.

    They are vital resources for those unable to travel great distances and are key drivers of community cohesion which positively contribute to the health and wellbeing of rural communities. But many are in poor repair and in need of modernisation to better serve the communities that they represent.

    The fund is managed by the charity Action with Communities in Rural England (ACRE). It is anticipated that the fund will support around 125 village halls over a three-year period creating bigger, better and brighter village halls for communities to enjoy.

    Lord Benyon, Minister for Rural Affairs, said:

    The Platinum Jubilee Village Halls Fund will create a national network of legacy projects to benefit rural communities.

    This will be a lasting tribute to the long, exceptional service of Her Late Majesty the Queen and will support village halls, many of which were built in commemoration of Her Majesty’s predecessors, Queen Victoria and King George V. Today, village halls remain a key community asset and efforts to modernise these spaces will ensure that they are used by generations to come.

    James Blake, Chair at Action with Communities in Rural England said:

    We are delighted to be administering this grant fund. Village halls are the beating heart of rural communities across England. They provide warm, welcoming spaces that bring people together, combat loneliness and support countless livelihoods which is especially important at a time when the cost-of-living crisis is bearing down on many.

    This investment, combined with the specialist support and advice of ACRE members will help modernise many of these important buildings so they can continue serving local communities.

    The Platinum Jubilee Village Hall Fund will be open to applications from projects aiming to deliver a positive impact on the local environment, reduce rural loneliness, support the rural economy and contribute to community life.

    Village halls interested in applying can request grants from £7,500 to £75,000, and up to a maximum of 20 per cent of eligible project costs. Capital grants will be allocated to support infrastructure improvements, the refurbishment of facilities, such as kitchens and toilets, and measures to improve energy efficiency.

    The application window will close on 20 January 2023, with successful applicants being able to draw on the funding from April 2023.

    For further information, including how to apply for the fund visit: https://acre.org.uk/platinum-jubilee-village-halls-fund/.

  • PRESS RELEASE : UK – Gulf Cooperation Council trade negotiations update [December 2022]

    PRESS RELEASE : UK – Gulf Cooperation Council trade negotiations update [December 2022]

    The press release issued by the Department for International Trade on 20 December 2022.

    Round two of negotiations for a free trade agreement between the United Kingdom and the Gulf Cooperation Council.

    The second round of negotiations for an Free Trade Agreement (FTA) between the UK and the GCC took place between 5 and 9 December.

    The second round was hosted in London and held in a hybrid fashion. More than 100 GCC officials travelled to London for in-person discussions, with others attending virtually. Technical discussions were held across 29 policy areas over 36 sessions. In total, more than 100 UK negotiators from across Government took part in this round of negotiations.

    During the round, the UK set out its policy positions having exchanged draft chapter text with the GCC across most policy areas before the round. A key objective at this stage was to continue to build a firm understanding of the GCC’s policy positions and priorities. Both negotiation teams took actions to further consider each other’s positions and identify opportunities to move closer together ahead of round three.

    Both sides remain committed to securing an ambitious, comprehensive and modern agreement fit for the 21st century.

    An FTA will be a substantial economic opportunity, and a significant moment in the UK-GCC relationship. Government analysis shows that, in the long-run, a deal with the GCC is expected to increase trade by at least 16%, add at least £1.6 billion a year to the UK economy and contribute an additional £600 million or more to UK workers’ annual wages.

    We expect the third round of negotiations to take place in Riyadh next year.

    His Majesty’s Government remains clear that any deal we sign will be in the best interests of the British people and the United Kingdom economy. We will not compromise on our high environmental, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations, the National Health Service and the services it provides is not on the table.

  • Ed Vaizey – 2022 Parliamentary Question on Tax-Free Shopping [Baron Vaizey of Didcot]

    Ed Vaizey – 2022 Parliamentary Question on Tax-Free Shopping [Baron Vaizey of Didcot]

    The question asked by Ed Vaizey, Baron Vaizey of Didcot, in the House of Lords on 15 December 2022.

    Lord Vaizey of Didcot

    To ask His Majesty’s Government what is their assessment of the impact on the United Kingdom economy of the abolition of tax-free shopping.

    Viscount Younger of Leckie (Con)

    My Lords, as part of the reversal of almost all the tax measures set out in the growth plan, the Government are not proceeding with plans to introduce a new VAT-free shopping scheme. The Office for Budget Responsibility’s assessment of the withdrawal of the previous VAT-free shopping schemes showed that this would raise a significant amount of revenue and have a small and limited behavioural effect on tourists’ decisions to visit the UK.

    Lord Vaizey of Didcot (Con)

    My Lords, is my noble friend the Minister aware that, far from costing the Treasury £2 billion a year, reintroducing tax-free shopping would net the Treasury some £350 million a year? Tax-free shopping supports many important industries in our country, such as Harris tweed—as so brilliantly sported by my noble friend Lord Pickles in support of my Question. The introduction of tax-free shopping is supported by the left-wing Mayor of London and the left-wing SNP. In this country we are lucky to have numerous new Governments; whether it is levelling up, growth or economic stability, tax-free shopping supports all three. Will the Minister reconsider the Treasury’s nonsensical decision to abolish it?

    Viscount Younger of Leckie (Con)

    Well, what I can say is that, on 28 November, HMRC and HMT officials held a round table with industry stakeholders to collate feedback on the Chancellor’s decision to withdraw the introduction. As I indicated in my initial Answer, evidence from VisitBritain continues to show that the key motivators for tourists visiting the UK are our rich history and heritage and vibrant towns and cities, and less so shopping.

    The Earl of Clancarty (CB)

    My Lords, international tourists used to make up half of Mulberry’s trade in London; now it is almost none. Does not that immediately tell the Government something about the significant effect this is now having on the tourist trade? European cities will be the winners and we will be the losers unless the Government change their mind.

    Viscount Younger of Leckie (Con)

    I do not agree with the noble Earl. Introducing VAT-free shopping would come at a significant fiscal cost because it would subsidise a large amount of tourist spending that already occurs without any relief in place. This is supported by OBR estimates which found that the withdrawal of the previous schemes would reduce visitor numbers by only 0.07%.

    Lord Watts (Lab)

    My Lords, do the Government understand that it may not affect the number of tourists who come to the UK, but they will stop spending in the shops and that will be lost revenue? Will the Minister not reconsider this matter?

    Viscount Younger of Leckie (Con)

    Well, it has been considered—as I say, we had a round table in November—and the benefit is pretty marginal. As far as I can tell from walking around London, the visitors are still flooding into Britain. We also need to look to next year, when we have the Coronation, and remember that we must look after the visitors who come here. But, as I pointed out, the actual benefits are marginal.

    Baroness Kramer (LD)

    My Lords, will the Government consider doing a proper cost-benefit analysis of this, which they have never done? Small shops are very much reporting that the actual spend has dropped very significantly. At a time when retail is under so much pressure, that additional loss will drive people out of business.

    Viscount Younger of Leckie (Con)

    We do not have any plans to analyse this further. As I have said before, fewer than one in 10 non-EU visitors used the previous VAT-free shopping scheme, indicating that it is really not a pull factor for tourists. Canada and New Zealand also do not offer this type of tax-free shopping on the high street, and the USA does not have a countrywide system, yet all these countries are popular tourist destinations.

    Lord Hannan of Kingsclere (Con)

    My Lords, the Treasury has a long history of downplaying the secondary effects of tax reductions. It has done it on corporation tax and the IR35. Oxford Economics tells us that 1.6 million visitors are attracted by VAT-free shopping. All those queues of people from China outside Harvey Nicks, Bicester Village and so on are bringing much-needed revenue to our economy. Will my noble friend the Minister ask his friends in the Treasury to reconsider the dynamic effects of this and other tax cuts?

    Viscount Younger of Leckie (Con)

    We have no plans to reconsider this. I know that about 80% of the effect of this is on retailers—for whom I have some sympathy, I should say—in London, and 10% in Bicester Village. It is very much focused on those areas and we do not have any plans to rethink it.

    Baroness Meyer (Con)

    My Lords, is it not sending quite an unwelcoming message to our European and American friends if, when they come here, they do not get VAT back, but when we shop in America or any country in the European Union we get their VAT back?

    Viscount Younger of Leckie (Con)

    Yes, but it comes back to the initial analysis by the OBR, which is very clear. As my noble friend will be aware, there was a judicial review in May 2021 and the judge ruled very much in the Government’s favour. There was also a very clear vote in Parliament on the matter, so I too am very clear on it.

    Lord Foulkes of Cumnock (Lab Co-op)

    Can the Minister tell us whether the effective devaluation of the pound against the euro and the dollar is a subtle way of attracting tourists?

    Viscount Younger of Leckie (Con)

    The noble Lord is ingenious in what he brings up. It is fair to say that the value of the pound has helped in bringing tourists to London. I say again that London right now is full of people from abroad walking around—and also from the domestic side, despite the fact that the cost of living crisis is hitting the most vulnerable and we are very aware of that.

    Lord Cormack (Con)

    My Lords, why does my noble friend not exercise a little imagination? He referred to the Coronation; people will flock to this country. Let us have a Coronation bonus period to see whether this really works. I am sure he will then be converted.

    Viscount Younger of Leckie (Con)

    I take note of what my noble friend says but, as I say, we have no plans to change this policy.

    Lord Forsyth of Drumlean (Con)

    My Lords, is my noble friend not immensely encouraged by the enthusiasm for tax cuts on the Opposition Benches?

    Viscount Younger of Leckie (Con)

    My noble friend makes an excellent point.

    Lord Londesborough (CB)

    My Lords, the arguments for tax-free shopping range from a £2 billion cost to the Treasury to a £4 billion benefit to the wider economy; I cite the recent survey from Oxford Economics. Whatever the truth, given the dire need for economic growth, surely it falls on the Treasury to at least review these important numbers.

    Viscount Younger of Leckie (Con)

    I can go this far, which the House will take at face value: of course, all taxes remain under review. The estimated cost of introducing a new scheme was around £2 billion per year. Although this would have stimulated additional retail spending, which HMRC estimated to be around £2 billion to £2.5 billion, it is a substantial cost to UK taxpayers and the relief would subsidise a significant number of purchases that occur without any relief in place, as I mentioned earlier.

    Lord Tunnicliffe (Lab)

    My Lords, while it might not have been the primary driver of tourism into the UK, tax-free shopping certainly incentivised extra spending during people’s stays. It was right to scrap the chaotic mini-Budget, but can the Minister understand the frustration of retailers who have argued for years for the scheme’s return, only to have their reward taken away because the Conservative Party crashed the economy?

    Viscount Younger of Leckie (Con)

    As I said earlier, on a serious note I have some sympathy for retailers—we admit that they will see some falling off of business—but I have made it quite clear that this is very much focused on London and Bicester Village. Having said all that, I live near Bicester Village and the queues going in on Sunday were enormous. Evidence from VisitBritain continues to show that the key motivators are still not to do with shopping and much to do with coming to see our excellent sights around the country.

    Baroness Browning (Con)

    In my noble friend’s Answer to our noble friend Lord Vaizey, he said this had been decided at a round-table meeting in the Treasury. Could we know who the people around this table are? Are they shoppers? For the record—please do not take offence at this—I would like to know the gender of this circular table.

    Viscount Younger of Leckie (Con)

    Hopefully, I made it clear that the round table was for industry stakeholders to collate feedback on the Chancellor’s decision. There were three main concerns, which I am not going to go through. It was really to show that the Government remain in listening mode and taxes remain under review—which is true—but we do not have any plans to change this policy.

    Baroness Jones of Moulsecoomb (GP)

    Perhaps I can come in and defend the Minister for a moment. We should actually be thinking about shopping less. I am so sorry to say this to a bunch of such dedicated shoppers, but we should make do with less and understand that the climate crisis means we should perhaps want to possess less as well.

    Viscount Younger of Leckie (Con)

    I am almost tempted to agree with the noble Baroness—but, no, we want to encourage people to shop. On the matter of tourism itself, I am pleased to say that inbound tourism bookings were at about 70% of 2019 levels for the first half of the year. Although I admit our recovery is slower than that of a number of our close international competitors, there is a bit of a nuanced picture because, as I alluded to earlier, domestic tourism has seen a better recovery trajectory than inbound tourism levels. So watch this space; as I said, it is a slightly better picture than has been made out from certain quarters.

  • HISTORIC PRESS RELEASE : Working Towards a Single Financial Regulator [July 1998]

    HISTORIC PRESS RELEASE : Working Towards a Single Financial Regulator [July 1998]

    The press release issued by HM Treasury on 30 July 1998.

    Further steps towards the full integration of financial services were announced today by the Chief Secretary, Stephen Byers.

    From January 1999 the Financial Services Authority (FSA) will take responsibility for supporting the Building Societies Commission (BSC), the Friendly Societies Commission (FSC) and, in relation to credit unions, the Chief Registrar of Friendly Societies, and for acting on behalf of the Treasury in the conduct of insurance supervision under the Insurance Companies Act.

    The regulators are already working closely together with the FSA developing the new regulatory structure and contributing to the draft Financial Services and Markets Bill published today.

    Chief Secretary, Stephen Byers said:

    “This transfer will promote early integration of financial regulation and help achieve the benefit of a single regulatory culture ahead of the legislation. This transfer in no way affects the consultation we have started today on the draft Bill.”

    A Contracting Out Order under the Deregulation and Contracting Out Act 1994 will pass the functions of the Insurance Directorate to the FSA. Treasury Ministers will still remain accountable to Parliament for insurance functions.

  • HISTORIC PRESS RELEASE : Plans to Modernise Financial Regulation – Financial Services and Markets Bill Published [July 1998]

    HISTORIC PRESS RELEASE : Plans to Modernise Financial Regulation – Financial Services and Markets Bill Published [July 1998]

    The press release issued by HM Treasury on 30 July 1998.

    Proposals to modernise and simplify the structure of the UK’s financial regulatory structure were published today by the Chief Secretary, Stephen Byers.

    Under the draft Financial Services and Markets Bill the Financial Services Authority (FSA) will become the single regulator for the UK’s financial services industry, backed by law.

    Publishing the Bill, Mr Byers said:

    “This bill will allow the creation of a financial regulatory system that is independent, flexible and accountable to those regulated by it and to the consumers that it protects.

    “A single regulator will remove the scope for duplication, gaps and inconsistency that affects the current system.

    “In the light of the personal pension mis-selling scandal we also want to see an improvement in standards so that customers are better protected and better informed about the products  they buy.

    “Financial services is an important and internationally competitive sector of the economy. These reforms are the opportunity to apply best practice across the board and to  shape a financial regulator that will maintain confidence in UK markets at home and abroad, setting an example for  financial regulation around the world.

    “We have consulted widely in putting this draft bill together and we are now delivering on our commitment to publish it in  the summer.  There will now be a further period of public consultation on the detail of the draft Bill.  I also  anticipate – and welcome – the involvement of the Treasury  Select Committee in the consultation process.  This  consultation is an important part of the process to ensure that the new system is efficient and effective. We want to lay the  foundations of a regulatory system that will last well into  the 21st century.”

    The main features of the Bill include:

    • new statutory objectives for the FSA to improve transparency and accountability. The FSA will be required to report annually on its achievements against the objectives of market confidence, public awareness, the protection of consumers and the reduction of financial crime.
    • a single set of powers for the FSA. This will allow the regulator to authorise all those kinds of financial services business requiring regulation. It will have flexible powers to make rules governing regulated activities, subject to consultation and cost-benefit analysis. It will have full powers, where necessary, to investigate and intervene in authorised firms’ activities and to discipline, including the power to fine.
    • powers for the Treasury to change the scope of what is regulated. For example, the Council of Mortgage Lenders’ code of practice is to be reviewed in 1999. If required, it would be possible to make mortgages subject to regulation under the Bill.
    •  a new independent appeals tribunal. This will come under the Lord Chancellor’s Department and will give and effective right of appeal for those affected by the FSA’s decision.
    • single ombudsman and compensation schemes to ensure improved access for consumers by providing single points of entry and improved public profile. This will reduce the scope for confusion about the roles and responsibilities of different schemes.
    •  a new regime to regulate financial promotion. The draft Bill includes a single framework to cover existing activities such as issuing advertisements and making unsolicited ‘cold calls’, taking account of changes in technology.
    • new civil fines for market abuse which will fill a gap in the current framework and will complement, not replace, the criminal regime.
    • the recognition of investment exchanges and clearing houses. TheFSA will continue to be able to recognise the status of such bodies.
    • statutory oversight of Lloyd’s. New FSA powers will provide, for the first time in many areas, a major element of external regulatory accountability.
  • HISTORIC PRESS RELEASE : World Class Management – The Key to Improving UK Productivity [July 1998]

    HISTORIC PRESS RELEASE : World Class Management – The Key to Improving UK Productivity [July 1998]

    The press release issued by HM Treasury on 28 July 1998.

    “Britain needs more world-class management.” This was the message from the fifth in the series of seminars aimed at boosting UK productivity hosted by the Chancellor, Gordon Brown, and the Secretary of State for Trade and Industry, Peter Mandelson. The seminar was addressed by CK Chow and Sir Christopher Hogg.

    Setting out the agenda for today’s meeting, Gordon Brown said :

    “Improving the quality, drive, and ambition of British management lies at the heart of meeting the national challenge we have set ourselves – to raise the productivity of the British economy. Without outstanding management at every level and in every sector of the economy then we will struggle to invest, we will struggle to innovate, and we will struggle to compete internationally.

    “Too many of our brightest and best choose to avoid management as a career. We need to ask ourselves why industry fails to attract them.

    “British industry has recognised the challenge. Throughout this series of high-level seminars their representatives have consistently highlighted the critical role of management. Today’s seminar therefore addresses the subject directly and represents a first step towards taking up the challenge.”

    Mr Mandelson said:

    “Management has a vital role to play in raising Britain’s competitiveness. Spreading best practice is a challenge for large and small firms, and is a key element of my Department’s work. Together with partners such as the CBI, TEC/Business Links and the Management and Enterprise NTO, we shall continue to seek to improve practices and business performance.

    “But we must also look to the managers of tomorrow. Schools and business have a responsibility to foster the spirit of enterprise in our young people. They hold the key to building the world class management this country needs.

  • Gordon Brown – 1998 Speech at Lambeth Palace on Reducing Debt in Poor Countries

    Gordon Brown – 1998 Speech at Lambeth Palace on Reducing Debt in Poor Countries

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, at Lambeth Palace, London, on 29 July 1998.

    I am grateful to have, at your invitation, Archbishop, an opportunity to be a part of this Lambeth Conference, with its historic theme, the theme chosen by all nine provinces in the Anglican communion worldwide, our duty to help countries burdened and immiserated by debt.

    We are constantly reminded of the economic links that now bind countries and markets together in the increasingly globalised economy.

    But for far longer, indeed for centuries, the Church, with its worldwide mission, has avowed and demonstrated the moral links that bind us together, all of us, citizens and nations, rich and poor, in one moral universe.

    Martin Luther King spoke of how we are caught in an inescapable network of mutuality, tied in a single garment of destiny, part of one moral universe.

    And it is because of our shared responsibilities, our common concerns, our linked destinies ,our dependence each upon another that our teaching tells us that an injustice anywhere is a threat to justice everywhere.

    To quote the experience of only one country, Niger, where life expectancy does not remotely approach the biblical three score years and ten and where a majority are dead by 50; four fifths of adults are illiterate; two thirds live on less than 1 dollar a day. It is a country which spends nearly four times more of its resources servicing its debts than it does on looking after the health of the people.

    Part of a region in which 200 million can barely move their bodies because of hunger, part of a world where 30,000 children die every day from preventable diseases and where 1.3 billions, two thirds of them women, are in poverty.

    John F Kennedy said that if a free society cannot help the many who are poor, it cannot save the few who are rich.

    Because money spent on servicing debts is needed far more for health and for education, debt relief is a matter not just of dispensing charity but ensuring justice prevails.

    But debt relief is also an economic issue, because a mountain of inherited and hitherto immovable debt stands in the way of the economic development which would break the cycle of poverty disease and illiteracy.

    And it is to move this mountain of debt that, in response to the arguments and pleas of the churches, I believe our inescapable duty is to try to ensure by the year 2000 all highly indebted poor countries are embarked on a systematic process of debt reduction.

    Last year only one country had entered the process. Now there are six, most recently including Mozambique, with £3 billion of debt relief pledged.

    For the fourteen others with still with no place at the table – it is urgent that following the G7 we step up on our actions to systematically remove the barriers between them and the debt reduction measures that will help them. And I look to you to use your moral authority with governments all over the world to support the necessary action.

    First, for countries like Rwanda, Liberia, Democratic Congo weighed down by the double burden of debt and the economic consequences of war, and who without special help will never recover, we have an urgent duty to help them move from crisis to development by:

    – taking into consideration performance under the post-conflict assistance programmes in assessing a debtors track record;

    – tackling the problem of debt arrears; and

    – ensuring ,with help from bilateral donors, that IMF and World Bank funding is concessional

    Second, for all other countries, we must find faster and easier ways to secure the debt relief they need and so in the run up to the IMF and World Bank meetings in October, Britain will offer highly indebted poor countries, all the technical assistance and back up they need to enter and make the most of debt reduction programmes.

    And at the IMF meetings in October we will ask that all possible means of financing debt reduction be considered.

    Third, each country must be asked to do more.

    I want every creditor country to follow our unilateral action in targeting export credits for the poorest countries solely on peaceful and productive expenditure.

    And I want all donor countries to write off their aid loans to the poorest countries, something that the UK government has already done in its loans with over thirty of the world’s poorest countries, a policy now extended to those poorer Commonwealth countries committed to poverty eradication.

    Fourth, we must help our citizens do more.

    Clare Short will tell you how as an individual government we are both increasing aid – by 28 per cent in real terms or 1.6 billions over the next three years – and redirecting aid to health, education and anti poverty programmes. Our goal as a government is to halve the proportion of the world’s population living in absolute poverty by 2015.

    But we also want British people to be part of a giving society.

    And I can tell you that we have also set aside 60 millions as a tax supplement for individual donors giving Millennium Gift Aid to education, health and anti poverty programmes in the poorest countries. The 60 million we have set aside from government could produce an additional 250 million for work of the charities and organisations in Africa and the poorest countries.

    Finally, we must now redouble our efforts to find long term solutions that create a virtuous circle of debt relief, poverty reduction, and economic development,

    Last year, the 48 least developed countries received, between them, less than 1% of foreign commercial investment in all the developing nations.

    And if countries are to draw on secure flows of commercial finance in a world disciplined by the realities of an inescapable and endlessly judgmental global market in capital, then it is to their advantage not just to tackle corruption, secrecy and wasteful military expenditure but also to follow internationally agreed and publicly recognised standards or codes of monetary and fiscal policy, corporate behaviour and there must be freedom from corruption.

    These international codes of good practice -the rules by which nations and people live – operational rules for fiscal transparency, monetary and financial good practice, good governance and good social practice – codes that will be applied to all countries by international agreement, rather than be imposed by the rich on the poor, and signed by rich and poor countries alike, would, in my view, provide a new framework for world economic development that would give new hope to the poorest and the most vulnerable countries.

    And in my views these new codes of good practice that can bring both stability and international investor confidence need not be oppressive: indeed they can be liberating because they offer the poorest countries a chance to break the power of lack of governmental accountability, secrecy, and corruption which have held them back by denying them international credibility and confidence.

    And let me make one further suggestion: if international institutions can agree on codes of practice that set minimum standards in economic management, they can also go on to explore the possibility of a new international code of good social practice. Perhaps based on minimum social standards, core labour standards and decent provision in health and education.

    Harold Macmillan once famously spoke of the wind of change blowing across Africa, changing the politics of that great continent.

    What inspires your vision is something more fundamental. Your vision is of a new climate of justice across the world, a new climate of justice that will eventually liberate nations from debt, people from poverty, and millions of individuals from unfulfilled lives, bringing our global economy and our moral universe into harmony for the benefit of all, transforming not just the politics on one continent but economics society and politics the world over.

    One that recognises that by the strong helping the weak it makes us all stronger.

    I was taught in church to believe that an injustice anywhere is a threat to justice everywhere.

    So today, let us resolve from here in London today, within 15 months of a new century, to work together, churches, political leaders, the peoples of the world to :

    – tackle debt
    – tackle poverty directly
    – tackle the causes of poverty and the causes of underdevelopment.

    So to end the long night of injustice and make the Millennium a new dawn of hope for Africa and the poorest of the developing world.

  • HISTORIC PRESS RELEASE : Taskforce to look at how Banks can help Credit Unions [July 1998]

    HISTORIC PRESS RELEASE : Taskforce to look at how Banks can help Credit Unions [July 1998]

    The press release issued by HM Treasury on 28 July 1998.

    Helping more people on low incomes gain access to financial services is the main aim of a Taskforce established today by the Economic Secretary, Helen Liddell.

    The Taskforce, chaired by Fred Goodwin, Deputy Group Chief Executive of the Royal Bank of Scotland, will look at ways banks can help credit unions. Its remit will be to:

    • explore ways in which banks and building societies can work more closely with credit unions to increase their effectiveness;
    • look at ways to widen the range of services that are provided to credit union customers; and
    • encourage the continued expansion of the movement.

    Its role will be to identify best practice in these areas and how this can be promoted more widely as well as proposing new areas for co-operation.

    Helen Liddell said:

    “Credit unions have an important role as a place for savings and source of low cost credit for the less well-off. They can also provide a first rung on the ladder of financial services for young people.

    “We want to build on that. If banks and credit unions work together we could see more people having access to bank accounts and credit who do not presently do so.”

    The Taskforce membership will be made up of senior representatives from banks, building societies and the credit union movement. The Treasury will provide the secretariat.

    The first meeting will be held around September. The Taskforce will be asked to produce a first report by the turn of the year and a final report by the middle of next year.