Tag: 2003

The press release issued by HM Treasury on 2 May 2003.

Chancellor Gordon Brown today instructed UK financial institutions to freeze accounts belonging to Asif Mohammed Hanif and Omar Khan Sharif. Israeli police are continuing to investigate the bombing which took place in Tel Aviv on Wednesday.

The Chancellor said:

“We must remain constantly vigilant in all areas in bearing down on terrorism and the sources that finance it.  We have taken immediate action today to ensure that no UK funds belonging to those suspected of being responsible for this atrocity can be used to support terrorism.”

The press release issued by HM Treasury on 29 May 2003.

Chancellor Gordon Brown today instructed UK financial institutions to freeze all assets belonging to Al-Aqsa Foundation following intelligence reports linking the organisation with terrorist activity. The action has been taken in conjunction with the United States and other international allies.

Gordon Brown said:

“Recent terrorist atrocities in Saudi Arabia and Morocco show that we must remain constantly vigilant and bear down strongly on terrorism and the people who fund it. Today’s action, taken in coordination with our international allies, will ensure that no UK funds belonging to the Al-Aqsa Foundation can be used to support terrorism.”

The press release issued by HM Treasury on 29 May 2003.

Britain, Europe and the US stand to gain substantially from transatlantic trade liberalisation, two studies published today show. The studies, commissioned jointly with the Dutch Ministry of Finance, suggest that the EU could gain over €100 billion per annum through liberalisation of the EU-US trade relationship. The gains for the US could be as much as $75 billion per year.

The studies also highlight the new challenges to transatlantic trade – in particular, arguing that the EU and US should consider strengthening regulatory dialogue and cooperation, to help prevent  ‘non-tariff’ barriers, such as domestic regulation, becoming an increasing source of trade disputes.

Commenting on the studies Chancellor Gordon Brown said:

“The new debate about Europe’s future is no longer – as it was in the 1980s – how a single trade bloc organises its internal markets, independent of the rest of the world, but how all of Europe, thinking globally, can be outward looking, meet global competition and reform to do so – and thus benefit from global change.

“In the last ten years, Europe’s trade with the rest of the world has increased faster than output. During that time European investment in America has increased 10-fold to around $250 billion. In recent years, more European capital has been invested annually in America than US capital in Europe.”
“The transatlantic economic relationship accounts for up to $2.5 trillion of commercial transactions each year, including $500 billions of foreign trade, and provides employment to over 12 million people.   We should not allow trade disputes to continue interfering with such vital parts of our economies.”

“Instead, Europe and America should patch up their trade differences, move beyond the day-to-day issues and make a greater effort to tackle the barriers to a fully open trading and investment relationship, strengthen joint arrangements to tackle competition issues and engage in dialogue about the approach to financial services regulation.”

“As a first step I believe the US administration and the EU Commission should work with the UK and other Member States to produce a detailed analysis of the benefits of greater trade and investment liberalisation.”

“But the scope for bilateral cooperation should be additional to, not a substitute for, multilateralism. I welcome the progress made by Commissioner Lamy.  Europe and the US must demonstrate the political will to make urgent progress in the Doha trade discussions.  In response to the challenges of globalisation, we must lead in the World Trade Organisation. A joint commitment to ensure the success of the multilateral trade agenda should be an integral element of progressively greater economic cooperation between the EU and the US.

“I call on the US administration, the European Commission and Greece, as holders of the EU Presidency, to use this summer’s EU-US summit to make a significant commitment to the success of this year’s WTO meeting in Cancun.

“The prize of being partners rather than fortress Europe versus fortress NAFTA is that each of us stand to gain much more from globalisation.

“The US-EU studies we are publishing today show it is not a choice between Europe and America, rather each needs the other for economic prosperity, and Britain will continue to work with others as leaders in Europe in securing the full benefits of globalisation. The more Europe and America work closely together the better it is for Britain, Europe and the world.“

Based on the recommendations of these studies, the UK believes that:

• There should be detailed analysis of the potential gains from liberalisation to provide a framework for bilateral efforts, identifying existing barriers to trade, and areas for priority action;
• There should be improved regulatory dialogue between the EU and US authorities on financial services to catch early those regulatory issues affecting each other’s jurisdictions;
• The EU and US should renew their commitment to the Transatlantic Business Dialogue –  to help move forward with liberalisation;
• There should be renewed commitment to the WTO multilateral trade agenda.

The EU-US bilateral summit in June provides an opportunity for Europe and the US to take these ideas forward.

The press release issued by HM Treasury on 9 June 2003.

Chancellor Gordon Brown today announced the appointment of Stuart Etherington, Sir Jeremy Beecham, Sir Graham Hall and David Harker to the Standing Committee on euro Preparations.

The Chancellor said:

“The new members all bring special areas of expertise – local government, the voluntary sector, the consumer sector and regional development – to the Committee. I am sure that they will all make a significant contribution to future planning  by the committee on euro preparations.”

The Committee leads planning on Euro preparations across the whole economy.

The press release issued by HM Treasury on 12 June 2003.

Professor Nicholas Stern is to be the new Second Permanent Secretary and Managing Director, Budget and Public Finance, the Treasury announced today.

Professor Stern will take over from Sir Robert Culpin, who is retiring in the autumn, and will also replace Gus O’Donnell, the Treasury’s Permanent Secretary, as head of the Government Economic Service.  The appointment will take effect from 29 September 2003.

Nick Stern, 57, has been Chief Economist and Senior Vice President at the World Bank, Washington D.C. since July 2000.  From 1994 until late 1999 he was Chief Economist and Special Counsellor to the President at the European Bank for Reconstruction and Development (EBRD).

Chancellor of the Exchequer, Gordon Brown said:

“I am delighted to welcome Nick Stern to the Treasury as Second Permanent Secretary.  Nick is a first class economist with a global reputation and enormous experience.  He will be a huge asset to the Treasury and Government economic policymaking”.

Gus O’Donnell, Permanent Secretary to the Treasury, said:

“Nick is one of the world’s leading economists.  He has an outstanding track record in both the academic world and in front line economic policymaking and delivery at the World Bank and the EBRD.  That someone of his calibre has chosen to come here is a tribute to the Treasury and its reputation.”

World Bank President Jim Wolfensohn commented:

“While we will miss Nick, we also recognize that this is a tremendous honour and opportunity for him. He has made an outstanding contribution to the work of the Bank over the last three years that we, and all our stakeholders, appreciate.

“Amongst other things, he has played a key role in helping us to develop the Bank’s strategic framework, and to maintain our focus on poverty in all its dimensions. He has also been an effective advocate on issues of economic growth and trade.”

Prior to 1994, Professor Stern’s career was mostly in academic life. After starting his teaching career at Oxford, he went on to hold chairs at the London School of Economics and Warwick (he is at present on leave from the LSE).  He has taught and researched at the Massachusetts Institute of Technology, and in France, India, China and Japan and at the International Monetary Fund.  His books include works on public finance, tax reform, the theory of economic growth, and the role of the state.

The press release issued by HM Treasury on 17 June 2003.

HM Treasury and the Office of the Deputy Prime Minister in conjunction with the Local Government Association have today issued guidance for local authorities on euro preparations. The guidance offers advice on high-level business and communications issues that local authorities need to consider in their preparations for the euro.

Chancellor Gordon Brown said;

“As major service providers, community leaders, employers and key communicators to citizens, local authorities would have a critical role to play during any changeover to the euro. The publication of this guidance and the third outline National Changeover Plan will lead to a period of information and discussion throughout the country. As part of wider public sector preparations, it is now important that local authorities consult local communities and develop their own changeover plans.”

The Deputy Prime Minister added;

“I welcome the issue of guidance to local authorities on euro preparations. This, along with the appointment of Sir Jeremy Beecham, Chair of the LGA, to the Chancellor’s Standing Committee on Euro Preparations, highlights the important role local government would play during any changeover and reaffirms our commitment to work in partnership with and consult local government on preparations for the euro.”

The press release issued by HM Treasury on 18 June 2003.

The Department for Transport and HM Treasure today jointly published a consultation document on road fuel gases. Transport Minister David Jamieson and the Economic Secretary to the Treasury John Healey invited stakeholders’ and users’ views on how Government can best ensure that future support for LPG and natural gas continues to reflect environmental and other policy objectives.

In Budget 2003, the Chancellor announced that the Government would consult on future support, with a view to announcing decisions on future duty rates and other forms of support in the 2003 Pre-Budget Report.  The 13 week consultation begins today.

Inviting views, David Jamieson said:

“We have come a long way with LPG. Due to Government support we have tens of thousands of LPG cars on the road and the fuel is now available right across the country.  Eight car and van manufacturers now produce LPG models as a showroom option, and conversions are available for many more cars.  There is increasing use of natural gas for heavy vehicles.  This represents major progress in the UK’s use of alternative fuelled vehicles.  However, it is important that Government support for new technologies is targeted to ensure the best environmental benefits and this is what the consultation aims to ensure.”

John Healey said:

“Tax has played a powerful part in encouraging more use of green fuels. We plan to build on this progress. In Budget 2001 we cut duty on road fuel gases and announced a freeze in real terms for three years.  Since then, the environmental performance of both road fuel gases and conventionally-fuelled vehicles has improved.  We now need to set out a clear strategy from 2004 which ensures that support for road fuel gases continues to reflect our environmental and other policy objectives.  We will listen carefully to others about the nature and design of these forms of support”.

The press release issued by HM Treasury on 18 June 2003.

The Government is today amending the Finance Bill to reduce the tax on bingo by a further £10 million per year, enabling the industry to increase prize money for the UK’s three million bingo players, on top of the £25 milllion announced by the Chancellor in his Budget.

The amendment to the Finance Bill tabled by Economic Secretary to the Treasury, John Healey, is building on reforms set out by the Chancellor in the Budget and give a total tax cut of £35 million for bingo.

When introducing this change, John Healey MP said:

“Bingo is a popular pastime, and one which spans the generations. We want to ensure that it is fairly and proportionately taxed. With this amendment, we have further simplified and reduced the taxation facing the bingo industry – with a total tax break of £35 million.

“We believe this provides a good basis for the industry to increase their prizes and attract new players into Britain’s bingo clubs. We will continue to work closely with the industry to see what further progress can be made.”

The Government is tabling this amendment after extensive consultation with the Bingo Association, Gala and Mecca, all of which support this measure. The Government is bolstering its reforms to the taxation of bingo, delivering a further simplification to the regime.

The press release issued by HM Treasury on 19 June 2003.

A consultation about the scope for relocating certain public sector activities from London and the South East to other parts of the UK has been launched today.

In Budget 2003 the Chancellor, Gordon Brown, announced that he and Deputy Prime Minister, John Prescott, were commissioning Sir Michael Lyons to undertake an independent review into the scope for relocating some civil service and public sector jobs.

Sir Michael’s review will look at ways of modernising Government and improving delivery of public services while, at the same time, securing good value for money and quality outcomes for the taxpayer.

Sir Michael will be seeking the views of interested parties on the advantages and disadvantages of decentralisation and of relocation of public sector jobs.  He is particularly interested to:

• learn of previous and current relocations of activity, both in the private and public sectors;
• discover how businesses take advantage of advances in modern technology and electronic communications to allow people to be based away from the operational centre;
• learn about the strengths of locations outside London and the South East;
• hear views about the likely economic impact on the regions of moving public sector activities from London and the South East;
• receive views on how policy development and service delivery would be affected if further decentralised.

Commenting on the consultation, the Chancellor said:

“I attach the greatest importance to Sir Michael’s independent study.  It is essential that, in our determination to improve the quality of public services and secure a good deal for the taxpayer, we also look at alternative ways in which public services might be delivered including relocation to the regions and nations of the United Kingdom.   I hope that many individuals and organisations will contribute to Sir Michael’s review and look forward to studying his report and recommendations.”

The Deputy Prime Minister also commented:

“I welcome the opportunity for businesses and people to contribute their views and experiences to Sir Michael on relocating public sector jobs from London and the South East to the regions.  As well as ensuring better quality public services and value for money for the taxpayer, we need to improve the regional balance of economic activity.  This review will help us to do that.”

Sir Michael Lyons added:

“It is essential that we hear the views of as many people and organisations as possible.   Learning from past relocations, understanding the strengths of possible new locations, bottoming out the economic impact on the regions and visualising how government might look and perform as a result of further decentralisation will be key to the outcome of my review.  I would therefore urge those who can contribute to my study to do so – their contributions will be gratefully received.”

The press release issued by HM Treasury on 27 June 2003.

Chief Secretary Paul Boateng has today given the Financial Services Authority (FSA) leave under the Financial Services and Markets Act 2000 to recognise EDX London Limited as a recognised investment exchange.

The decision was taken after the Treasury received advice from the Director-General of Fair Trading which concluded that the rules of EDX London do not appear likely to restrict, distort or prevent competition to any significant extent.

Paul Boateng said

“EDX London is a welcome addition to the list of UK Recognised Investment Exchanges. It is further proof of the strength of the UK’s financial regulatory system and of London being one of the best places in the world to do business.”