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The press release issued by HM Treasury on 9 April 1998.

The Government Task Force on the industrial use of energy, chaired by Sir Colin Marshall, held its first meeting on 6 April.

Sir Colin Marshall was appointed by the Chancellor, Gordon Brown, as announced in the recent Budget, to examine the use of economic instruments to improve the industrial and commercial use of energy, and to help reduce greenhouse gas emissions.  The Government Task Force will assist him in carrying forward this important exercise.

The UK has taken a strong lead internationally on the issue of climate change.  Later this year, a legally binding commitment will be agreed as part of the EU’s undertaking at Kyoto to reduce greenhouse gas emissions.  All sectors of society will need to play their part in meeting this.

Within industry, the Government believes that economic instruments may offer the potential to achieve greenhouse gas reductions most cost-effectively.  The Chancellor has asked Sir Colin Marshall to consider whether and, if so, how best to use economic instruments – such as an industrial energy tax and/or other market mechanisms – to improve the industrial and commercial use of energy and to help reduce industrial emissions of greenhouse gases.

Sir Colin Marshall and the Task Force intend to consult widely throughout industry and with other interested parties in the preparation of the report, which the Chancellor has asked for by the start of November 1998.

A consultation paper will be issued shortly, seeking responses as to whether, and if so, how best, economic instruments – such as an industrial energy tax and/or other market mechanisms – could be used to improve the industrial and commercial use of energy, and to help reduce emissions of greenhouse gases. All interested parties are invited to contribute their views at that stage.

Sir Colin Marshall said:

“I am looking forward to the work that lies ahead for myself and the Task Force.  These are truly vital issues. I want to give an opportunity to everyone who has an interest to feed in views, and hope that as many people as possible will take time to respond to the consultation paper.”

The press release issued by HM Treasury on 8 April 1998.

The latest monthly figures from firms show steady progress in clearing up pensions mis-selling, Economic Secretary, Helen Liddell announced today.

The end-March figures for the 41 companies she is monitoring show:

• reviews of about 69 per cent of priority cases are nowcompleted;
• 7 firms have yet to complete half their cases, and
• 14 firms have now completed over 75 per cent of their cases.

Publishing the figures, Mrs Liddell said:

“Most of the 41 firms have continued to make steady progress but this must be sustained.At the same time firms must also look to the next phase of the review, and build on the consultation launched by the regulators last month.”

Mrs Liddell said she appreciated the constructive reaction of the Association of British Insurers (ABI) to the regulators’ initiative on the second phase of the review, and hoped it would continue over the months ahead.

The Minister also welcomed the ABI’s plans to assist and encourage Independent Financial Advisers to carry out their pension reviews.She said :

“These proposals give welcome recognition to the fact that each and every firm’s good name is dependent on the reputation of the industry as a whole.  Firms must work together to clean up the industry’s image. “

The press release issued by HM Treasury on 7 April 1998.

Measures to ensure customers receive adequate protection when they take out a mortgage were announced today by the Economic Secretary, Helen Liddell.

The Treasury will have the power to extend the Financial Services Authority’s (FSA) regulatory responsibilities to include mortgages as part of the proposed regulatory reform bill. It could, if necessary, be used if the Code fails to give sufficient protection. The Council for Mortgage Lenders (CML) voluntary Code will be kept under regular review to ensure it is providing adequate protection for customers.

The Code will be reviewed against a number of factors,including:

the extent to which the Code secures good quality advice for prospective borrowers; how well the Code provides remedies for borrowers’ legitimate grievances.

There will be a formal review in 1999 and,depending on the outcome, an interim one in 2000 and further formal reviews every two years after that. The review will also include regular reports from the CML, independent intelligence and, an on-going consultation process with CML about how the Code is working.

Announcing the measure, Helen Liddell said:

“Taking out a mortgage is probably the most significant transaction most ordinary people undertake in their lifetime. I want to ensure that they receive the protection they are entitled to expect.

“I am aware that the CML and its members are making a serious investment in the success of the Mortgage Code and we will allow the Code a fair trial. However, if the Code fails to provide adequate protection for consumers we will not hesitate to use the reserve power in the regulatory reform bill and give the Financial Services Authority statutory power to regulate mortgages.”

The Minister also announced that it would be possible for the Treasury to extend the scope of regulation to retail banking and non-life insurance (this includes a wide range of products from motor insurance to health insurance). These areas, too, will be kept under review. However, regulation would not be extended without consultation, including an appraisal of the costs and benefits.

Mrs Liddell said:

“We have no plans at present to extend the scope of regulation into these areas but standards of conduct in these markets and the risks faced by consumers will be kept under review.

“As we are now in the process of setting up a regulatory framework which will see us well into the next century, we want to ensure that we have relevant powers available to us if action is required.”

The Minister also took the opportunity of welcoming the FSA’s consultation document on the design of their handbook. She said:

“The FSA’s main aim is to ensure that their handbook is accessible and easy to use by managers and advisors in the financial services industry. Self discipline is the key to good regulation. This consultation gives the industry the opportunity to shape the way regulation will work in future. It is in the industry’s hands to get involved in the process.”

Mrs Liddell announced that the proposed legislation would give the FSA a flexible rule-making power to impose requirements anywhere along the spectrum from broad principles to detailed rules. These must be consistent with the imperative for different approaches to wholesale and retail business.

The Minister said:

“Of course we have to distinguish between the retail and wholesale ends of the markets. At the retail end, where businesses have better information, customers must have proper protection. But at the wholesale end we must ensure the regulatory regime is light and flexible enough to give the industry the opportunity to develop and innovate and compete in global markets.”

A consultation document on the future of the Insurance Brokers Registration Council (IBRC) was also issued today. The Government is reviewing the system of registration and professional governance of insurance brokers, and wishes to consult with the industry and others concerned whether it would be advisable to remove its present statutory basis. Such a change would involve repealing the Insurance Brokers

(Registration) Act 1977 as part of the regulatory reform bill. Insurance intermediaries who arrange life insurance business, whether described as ‘insurance brokers’ or by any other title, will be subject to authorisation by the FSA.

Mrs Liddell said:

“We have not yet adopted a final view on the way ahead and welcome views of brokers, insurers and consumer representatives.

“We will continue to look to this sector to provide competitive and high quality services for clients.We are also looking wider, to the insurance industry as a whole, to work with its customers in maintaining confidence in the ways non-life insurance is distributed.”

The press release issued by HM Treasury on 18 December 2022.

• Five leading industry experts appointed to accelerate development and deployment of emerging tech in the UK, as Chancellor sets out vision to create the Silicon Valleys of the 21st century.
• Experts will work hand-in-hand with industry and Sir Patrick Vallance to advise on new rules that use the UK’s regulatory freedom to promote innovation.
• Second in a series of big growth announcements, following the Edinburgh Reforms of financial service regulation announced last week.

The Chancellor and Business Secretary have laid out plans for a series of exciting growth announcements across 2023 in five high potential sectors – digital technology, green industries, life sciences, advanced manufacturing and the creative industries – using the UK’s regulatory freedom outside the EU to pursue an ambitious vision to create the 21st century’s Silicon Valleys in the UK.

As set out at the Autumn Statement, the Government Chief Scientific Adviser and National Technology Adviser, Sir Patrick Vallance, will review existing rules and help develop a pro-innovation regulatory approach that allows the UK to fulfil its ambition to become a science superpower and world leader in key growth sectors such as digital technology and life sciences.

The UK is one of the best places in the world to invest, with over £10 billion committed to projects in 2021. However, with other countries also rapidly reforming their rules, anticipating how the landscape for emerging technologies will change is becoming an increasingly important source of competitive advantage in the global economy and could help drive up living standards, such as breakthroughs in medical research that put the UK at the front of the queue for new treatments.

The aim of the review is to establish the UK as the best regulated economy in the world in key growth sectors, ensuring that industry and investors have the certainty then need to drive innovation, investment and growth through anticipating new developments in emerging technologies. Quantum technologies for example, though in early stages of development, have the potential to improve vaccine and drug discovery and development, advanced navigation technologies, and enhanced sensors helping us to deliver better and more targeted services in the UK.

Five leading experts have been appointed to support Sir Patrick Vallance, working hand-in-hand with industry to identify any barriers to innovation and getting emerging technologies to market.

Matt Clifford, Chair of the new Advanced Research and Invention Agency (ARIA), and Priya Lakhani OBE, a member of the AI Council, have been appointed to support work to harness new digital technology such as artificial intelligence.

Sir John Bell, who is on Genomics England’s board of directors, and Camilla Fleetcroft, Eclevar UK’s Vice-President of Clinical and Regulatory Affairs, will work on cultivating the life sciences sector and help drive the next generation of discoveries, such as delivering genomics-enabled clinical trials.

Jane Toogood, Chief Executive of Catalyst Technologies at Johnson Matthey, will take forward work on building green industries like hydrogen and battery development in the UK.

Chancellor of the Exchequer Jeremy Hunt said:

“I want British firms to lead the world in turning fantastic science into new products and services – and we need to make sure government is doing everything we can to encourage innovation and competition.

“We have already set out how we will back our formidable financial services sector to unlock private investment in new industries, and we will show the same ambition in other high-growth sectors to ensure that future Silicon Valleys are based here in the UK.

“The countries that secure leadership in new technologies will lead the world, enjoying unparalleled growth, security and prosperity for decades to come – and it is our job to ensure the UK is able to fully reap the rewards.

“Sir Patrick and his team will be critical as we harness every tool at our disposal to create the industries and jobs of the future, which will deliver long-lasting benefits for local communities across the UK.”

The Chancellor has already set out plans to repeal and replace hundreds of pages of burdensome EU retained laws through the ‘Edinburgh Reforms’, which will establish a less costly and more responsive regulatory framework for the financial services sector. This includes a commitment to make substantial legislative progress over the course of 2023 on repealing and replacing EU-era Solvency II – the rules governing insurers balance sheets which is expected to unlock over £100 billion of private investment for productive assets such as UK infrastructure.

Business Secretary Grant Shapps added:

“Economic growth and raising productivity is critical if we are to improve the standards of living for all Brits. One of the most sure-fire ways to deliver both is betting big on innovation, which is exactly what we intend to do.

“Backed by this fierce new team of advisers, Sir Patrick Vallance will lead the charge alongside industry to supercharge growth in some of the world’s most exciting growing technologies, turning the UK’s natural strengths into pillars for long-term growth.”

By creating markets and promoting and protecting competition, regulation plays an important role in enabling new entry and disruption and fostering incentives for innovation. For example, thanks to the government’s Contracts for Difference scheme, the UK is bringing forward over 26GW of new renewable energy, while driving competition and innovation which has pushed down the cost of offshore wind by 70% in seven years.