Tag: 2004

  • HISTORIC PRESS RELEASE : Treasury minister hails success of Redhill Sure Start Centre [August 2004]

    HISTORIC PRESS RELEASE : Treasury minister hails success of Redhill Sure Start Centre [August 2004]

    The press release issued by HM Treasury on 11 August 2004.

    Treasury Minister Dawn Primarolo praised the success of the Redhill Sure Start Centre in Stockton on Tees today as she met staff and parents during a visit to the centre.

    Speaking at the Redhill Centre, which provides family support, parent outreach services and child and family health services to local families, Dawn Primarolo said:

    “I am delighted to be meeting the staff and parents at the Redhill Sure Start Centre which is providing vital support for families in Stockton on Tees. The Sure Start initiative is an important part of the Government’s drive to abolish child poverty and improve opportunities for all parents.

    “The wide range of services the Redhill Centre provides to families, including 50 childcare places, help local parents with bringing up children as well as developing their full potential in the workplace. These will be improved even further when it becomes one of the 2,500 new children’s centres, which bring together in one location a variety of services currently offered to young children, parents and carers.

    “I am also pleased that many of the parents here are able to take advantage of support for childcare from new tax credits. Over 17,500 families in Stockton on Tees receive tax credits, with 28,700 children already benefiting. I would urge all parents who think they might be eligible to contact the Inland Revenue to ensure they claim their full entitlement.”

  • HISTORIC PRESS RELEASE : Treasury Minister Praises Hemsworth´s Role in Creating Entrepreneurs of the Future [October 2004]

    HISTORIC PRESS RELEASE : Treasury Minister Praises Hemsworth´s Role in Creating Entrepreneurs of the Future [October 2004]

    The press release issued by HM Treasury on 21 October 2004.

    Treasury Minister John Healey praised the ongoing achievements of the Yorkshire and Humber Enterprise Adviser Service when he met with members of the team at Hemsworth Arts and Community College today.

    Following the recommendations of Sir Howard Davies’ Review of “enterprise and the economy in education”, the Chancellor announced a pilot programme of Enterprise Adviser schemes in Budget 2003 to work with 1,000 secondary schools throughout the country.

    The Yorkshire and Humber Enterprise Adviser Service’s 14 Enterprise advisers have been working in 114 schools throughout the Region since early 2004. They use enterprise education and activities in schools to develop the skills and confidence that young people need in employment.

    The scheme is receiving over £2 million of funding over two years from the Learning and Skills Council.

    Speaking in Hemsworth, John Healey said:

    “To create a dynamic business culture in this country we need to start within the education system, showing young people the importance of entrepreneurship and the many opportunities available to them. By enthusing the adults of tomorrow in business and enterprise we will help to ensure that all parts of Britain enjoy the economic prosperity that comes from a skilled, diverse and entrepreneurial workforce.

    “The Yorkshire and Humber Enterprise Adviser Service is doing excellent work in establishing links between the school and the business community and in promoting the enterprise agenda. I have been impressed by the commitment and innovation of the advisers, teachers and students participating in this scheme at Hemsworth College today. I wish the Service continuing success in the future.”

    Eddie Rodgers, chief executive of the West Yorkshire Enterprise Partnership, who manage and deliver the Enterprise Adviser Service Programme in the Yorkshire and Humber region said:

    “This project is about giving school leavers a better idea of different career options and the confidence to go into the workplace. Young people need to have the self-belief to be able to make decisions about their future and, if necessary, take some risks. Working closely with schools, our enterprise advisers are bringing entrepreneurial skills into the classroom so that young people are not only prepared for work but can also consider the possibility of running their own business.”

  • HISTORIC PRESS RELEASE : Paymaster General welcomes £500,000 grant to tackle unemployment in St Helens [November 2004]

    HISTORIC PRESS RELEASE : Paymaster General welcomes £500,000 grant to tackle unemployment in St Helens [November 2004]

    The press release issued by HM Treasury on 4 November 2004.

    New financial backing for an initiative to get thousands of unemployed St Helens residents back to work was welcomed today by Paymaster General Dawn Primarolo on a visit to the town.

    St Helens’ Chamber has secured a £524,000 grant from the Merseyside Objective One programme to continue its Starting Point initiative, which aims to provide 3,500 unemployed local people with personalised training, support and back to work plans.

    The Chamber will work with local employers and companies looking to relocate to St Helens to offer support with recruitment, including screening applicants, tailoring training for new recruits and supporting new workers in the first months of their new jobs. Starting Point was set up in 2001, and the new funding will enable the service to continue until at least 2007.

    Dawn Primarolo today visited St Helens as part of a fact-finding tour on the impact that Objective One funding is making on Merseyside. She said:

    “Objective One funding has, along with domestic funding and support, given Merseyside an enviable opportunity to build a new era of prosperity for local people. The bedrock of this transformation must include effective action to tackle the spectre of unemployment that has lingered for so long over some local communities.

    “This investment in St Helens will provide vital help and training for people looking for work. It is to be welcomed as an important step towards restoring not just personal pride but also the economic fortunes of the entire borough.”

    Starting Point provides a one-stop-shop for employers and jobseekers in St Helens town centre, on Hardshaw Street, where those looking for work can get personalised training, support and advice to pursue the jobs they are best suited to.

    Employers will get practical assistance with recruitment, vocational training and developing the skills of their workforce.

    Specialised support will be provided for local people and hard-to-reach groups such as the long-term unemployed.

    Other funding for the £1 million initiative will come from the single regeneration budget and neighbourhood renewal funds managed by the St Helens local strategic partnership.

    Dawn Primarolo today saw other projects in St Helens that have benefited from Objective One funding, including a £1.7 million facelift to the Theatre Royal, the ongoing £1 million refurbishment of the George Street Quarter and the Bold Miners Centre, which was re-opened as a community centre and training facility following a £1.4 million refit.

  • HISTORIC PRESS RELEASE : John Healey Promotes Enterprise and Skills in Birmingham [December 2004]

    HISTORIC PRESS RELEASE : John Healey Promotes Enterprise and Skills in Birmingham [December 2004]

    The press release issued by HM Treasury on 13 December 2004.

    Enterprise and high skilled jobs are now the key to long-term prosperity in Britain, the Economic Secretary to the Treasury – John Healey MP – outlined today when he visited the West Midlands. He pointed to the Government’s commitment to take tough decisions to achieve American levels of business creation and ensure that, at every level, Britain has the best educated and most flexible workforce in the world.

    While there are 300,000 more businesses in the UK than in 1997, if the UK had a business start up rate equivalent to the US 1.8 million more businesses would be in place. And if the West Midlands had a start up rate equivalent to the most enterprising areas in the UK, it would have an extra 16,670 businesses.

    John Healey today led a round table discussion with a group of small businesses, chambers of commerce and Advantage West Midlands (the Regional Development Agency). His speech outlined the importance of small business start-ups, building an enterprise culture, and securing workforce development. He will also point to the recent Pre-Budget Report, which included:

    • the publication of Philip Hampton’s interim report on rationalising inspection and enforcement regimes;
    • the extension of Common Commencement Dates to other areas of legislation;
    • deregulation in the financial services industry;
    • new rules guiding the implementation of European Union regulations;
    • significant reductions in compliance burdens for small businesses through the integration of HM Customs & Excise and the Inland Revenue;
    • measures to improve support for small businesses by challenging the RDAs to use their new devolved powers to go beyond the one-size-fits-all business advice of the past and provide focused, tailored mentoring and support for small firms;
    • accepting in full the Graham Review recommendations to increase the effectiveness of the Small Firms Loan Guarantee scheme, deregulating Business Angel investors in small firms, and making tax changes to facilitate university spin-outs;
    • roll out by 2007-08 of the National Employer Training Programme following successful pilots in areas including Birmingham and Solihull, Shropshire, and the Black Country; and
    • the establishment of the Leitch Review of Skills.

    The business consultation visit – the first in a national series – is a chance for local West Midlands firms and agencies to contribute their views to preparations for next year’s Budget.

    John Healey said:

    “In any modern and vibrant economy the presence of high-growth businesses is vital. Small businesses make a disproportionately important contribution to our economic prosperity. That is why the Government is determined to rise to the challenge of securing an enterprise culture and skilled workforce to ensure American levels of business start up.”

  • HISTORIC PRESS RELEASE : Resignation of Chief Economic Adviser to the Treasury – Ed Balls [July 2004]

    HISTORIC PRESS RELEASE : Resignation of Chief Economic Adviser to the Treasury – Ed Balls [July 2004]

    The press release issued by HM Treasury on 1 July 2004.

    Following his selection as the Labour Party’s Prospective Parliamentary Candidate for Normanton last night, Ed Balls, Chief Economic Adviser to the Treasury, this morning submitted his resignation from the Treasury.

    Commenting on Ed Balls’ resignation, the Chancellor said:

    “Ed has been a close colleague of mine for the last ten years and I want to thank him for the great contribution he has made to the Treasury’s work over the last seven, first as economic adviser and for the last five years as Chief Economic Adviser. He has played a central and decisive role in developing and implementing policies to achieve economic stability and record levels of employment, to increase funding for public services and to tackle poverty in Britain and abroad. I know he has a great contribution to make in the future.”

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

    “I would like to thank Ed for his outstanding contribution to the Treasury over the past seven years. He has had an enormous and positive impact on the department and its thinking which will continue to influence us in the future. He has also been a great colleague to work with and will be missed throughout the Treasury.”

    Mr Balls said:

    “It has been a privilege to serve this government and this Chancellor of the Exchequer at the Treasury since 1997. I would like to thank Gordon Brown, Gus O’Donnell and all my colleagues for everything they have done over that time. I have been constantly in awe of the professionalism, talent and dedication to public service of the Treasury civil servants and political team that I have worked with in the important work the Treasury has done over these years.”

    Gus O’Donnell has today appointed Michael Ellam to the new post of Director of Policy and Planning. Mr Ellam will have responsibility for short to medium-term coordination of policy, working closely with Ed Miliband who, as Chairman of the Council of Economic Advisers will have responsibility for the coordination of long-term policy.

  • Gordon Brown – 2004 Speech at the British Council Annual Lecture

    Gordon Brown – 2004 Speech at the British Council Annual Lecture

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 7 July 2004.

    Can I say what a pleasure it is to have the privilege to deliver the annual British Council Lecture.

    To celebrate this year an exceptionally successful seventy years of an institution which has played and continues to play such an important part in British society and in Britain’s relationship with the rest of the world.

    Now last month in a speech at the Mansion House, I argued how in the last half of the last century post imperial Britain came to be defined to the world by perceptions of national economic decline.

    And I said that in the first years of this new century we can begin to identify how:

    • a once stop go British economy is now stable;
    • a once corporatist British business and industrial culture is seen now as more enterprising and more flexible;
    • a country once characterised by high unemployment now enjoys record employment;
    • a country which can now, on a rising tide of confidence, aspire to become one of the great success stories of the new global economy.

    But if we are to fully realise the economic potential of Britain my view is that we need something more.  For the twelve years I have been Shadow Chancellor or Chancellor, I have felt that our country would be better able to meet and master the challenges of ever more intense global competition if we could build a shared sense of national economic purpose. Indeed, over half a century, Britain has been damaged by the absence of agreement on economic purpose or direction: lurching for narrow political reasons from one short term economic panacea to another, often public sector fighting private, management versus worker, state versus market in a sterile battle for territory, that deprived British businesses and British workforces of confidence about the long term and held our country back. So when in 1997 I made the Bank of England independent my aim was to build a consensus across all sections of society about the priority we all attached to economic stability.  A shared purpose not just across macroeconomic policy but across the whole range of economic questions is, I believe, even more essential now not just to face up to global competition from Asia as well as Europe and America but if we are to have the strength as a country to make the hard choices on priorities that will determine our success.

    Creating a shared national purpose also reflects a deeper need: to rediscover a clear and confident sense of who we are as a country.

    I believe that just about every central question about our national future – from the constitution to our role in Europe, from citizenship to the challenges of multiculturalism – even the question of how and why we deliver public services in the manner we do – can only be fully answered if we are clear about what we value about being British and what gives us purpose and direction as a country.

    Take the vexed question of Europe. I believe it has been a lack of confidence about what Britain stands for that has made it difficult for us to feel confident about our relationship with, and our potential role in, Europe.  And as a result led many to believe – wrongly – that the only choice for Britain is between splendid isolation and total absorption. As with the debate over all international questions, the debate over Europe is, at root, about how the British national interest is defined and what we should stand for as a country.

    Take our constitution and all the great and continuing debates about the nature of the second chamber, the relationship of the legislative to the executive, the future of local and central government.  Our approach to resolving each of these questions is governed by what sort of country we think we are and what sort of country we think we should become.

    Take devolution and nationalism. While the United Kingdom has always been a country of different nations and thus of plural identities – a Welshman can be Welsh and British just as a Cornishman or woman is Cornish, English and British – and may be Muslim, Pakistani or Afro Caribbean, Cornish, English and British – the issue is whether we retreat into more exclusive identities rooted in 19th century conceptions of blood, race and territory, or whether we are still able to celebrate a British identity which is bigger than the sum of its parts and a Union that is strong because of the values we share and because of the way these values are expressed through our history and our institutions.

    And take the most recent illustration of what challenges us to be more explicit about these issues:  the debate about asylum and immigration – and the debate about multiculturalism. Here the question is essentially whether our national identity is defined by race and ethnicity – a definition that would leave our country at risk of relapsing into making a misleading ‘cricket test’ or, worse, colour the determination of what it is to be British.  Or whether there are values which shape our national identity and which all citizens can share – thus separating citizenship from race – and which can find explicit expression so that they become a unifying and strengthening force.

    And this is important not just for tackling these questions – central as they are – but for an even larger reason.

    In a growingly more insecure world people feel a need to be rooted and they draw strength from shared purpose.

    Indeed if people are to cope successfully with often bewildering change then a sense of belonging is vital.  And that, in turn, depends on a clear shared vision of national identity.

    And I want to suggest that our success as Great Britain – our ability to meet and master not just the challenges of a global marketplace but also the international, demographic, constitutional and social challenges ahead – and even the security challenges facing a terrorist threat that has never been more challenging and demands upon those charged with our security never greater – depends upon us rediscovering from our history the shared values that bind us together and on us becoming more explicit about what we stand for as a nation.

    But if these issues around national identity are so important, my starting question must be: why over decades have we as a country singularly failed to address them and yet we see – as Jonathan Freedland has so eloquently described – other countries, principally America, successfully defining themselves by values that their citizens share in common?  The real answer, I believe, lies in our post war history – in a loss of self confidence and direction, even a resignation to national decline, a loss of self confidence that is itself now becoming part of our history.

    I was born in mid century in what you might now call middle Scotland – 1951. And while much was changing around us, Britain was still a country of fixed certainties that – echoing Orwell’s ‘Lion and the Unicorn’ – were well understood, virtually unquestioned and barely stated.

    The early 1950s was the world of Sir Winston Churchill, a coronation that was reported with almost religious enthusiasm, an unquestionably United Kingdom, and around us symbols of an imperial Britain.  I grew up in the fifties and sixties on maps of the world with a quarter of it pink and on British books and comics and then films which glorified the Blitz, the spitfires, Sir Douglas Bader and endless reruns of the Guns of Navarone.

    This was, of course, a Britain whose confidence was built – unlike the USA – not on aspirations about the future but on real achievements of the past:

    • the Britain that could legitimately make claim to be the first country in the world to reject the arbitrary rule of monarchy;
    • the Britain that was first to make a virtue of tolerance and liberty;
    • the Britain that was first in the industrial revolution;
    • the Britain that was centre to the world’s largest empire – the global economy of its day;
    • the Britain that unlike continental Europe was never subject to revolution;
    • the Britain that had the imperial mission which made us a world power and then a ‘defence of the West’ mission which appeared to justify a continuing sense of ourselves as a world power;
    • the Britain that – unlike America which as a country of immigrants had to define itself by its belief in liberty and opportunity for all – did not feel its exceptionalism called for any mission statement, or defining goals, or explicit national ethos. Indeed we made a virtue of understatement or no statement at all.

    This is a long way from the image of Britain of recent decades  – what now goes for ‘post war Britain’ – that long half century of uncertainty:

    • the Britain of managed decline – at home and abroad
    • of failing corporatism
    • of sterile self defeating struggles between public and private sectors, management and unions, state and market.  (In the fifties it was said we had managed decline, in the sixties mismanaged decline, and in the seventies we declined to manage).
    • the Britain
      • of doubts and hesitations about Europe
      • of the growth of secessionist movements in Scotland and Wales
      • of, as immigration rose, a retreat by some into defining Britishness through race and ethnicity, what was called the ‘cricket test’
      • and then, as the sun set on the empire, the failed attempts to root our post 1945 identity simply in the longevity of our institutions alone – indeed in the idea of unchanging institutions.

    It was almost as if we looked backward with nostalgia because we could not look forward with hope.  And so as the gap between imperial myth and reality grew, so too the view grew that Britain was not, in fact, underpinned by any strong sense of Britishness at all.  And it led to a questioning of the very existence of Britain, right across mainstream opinion. Indeed Andrew Marr now the political editor of the BBC choose to entitle his ‘state of the nation’ book ‘The Day That Britain Died’, writing ‘I have a profound belief in the likelihood of a British union dissolving within a decade.’

    For Neil Ascherson from the liberal left all that remains of Britishness is ‘a state, a flag and armed forces recruited from every part… just institutions…not social reality’.   And with a similar eloquence his fellow Scottish writer Tom Nairn has argued that because there was little that is British left to underpin Britain, what he called ‘The Break Up of Britain’ was inevitable.

    Professor Linda Colley whose ground breaking historical research had demonstrated that the ‘United Kingdom’ was founded on great but ultimately transient historical forces – the strength of anti French feeling, the bonds of empire and Protestantism  – concludes:

    ‘The factors that provided for the forging of the British nation in the past have largely ceased to operate.  Protestantism, that once vital cement, has now a limited influence on British culture, as indeed has Christianity itself. Recurrent wars with the states of continental Europe have in all likelihood come to an end, so different kinds of Briton no longer feel the same compulsion to remain united in the face of the enemy from without. And crucially both commercial supremacy and imperial hegemony have gone. And no more can Britons reassure themselves of their distinct and privileged identity by contrasting themselves with the impoverished Europeans or by exercising authority over manifestly alien people.  God has ceased to be British and providence no longer smiles’.

    And the historian Norman Davies, even lists 18 British institutions which according to him have defined Britishness and which he now suggests have lost their authority, putting the existence of Britain in doubt.

    And this view of decline and decay – and then a profound sense we have lost our way as a country – is, if anything, held more forcibly today by writers and thinkers from the right – Roger Scruton (whose highly challenging study of Englishness is entitled ‘An Elegy’) Simon Heffer, Ferdinand Mount.   For them the final nails in the coffin of Great Britain are not just devolution but Britain succumbing to multiculturalism and to Europe. For Mount, quoting Orwell that ‘England is perhaps the only great country whose intellectuals are ashamed of their own nationality’, our nation could become  ‘one giant cultural mall in which we would all wander, free to chose from a variety of equally valuable lifestyles, to take back and exchange purchases when not given satisfaction or simply to window shop’.   And Melanie Phillips concludes ‘the big political divide in the country is now clear…it is over nothing less than the protection of liberal democracy and the defence of the nation itself’.

    Yet as I read these writers and thinkers I detect that beyond the battleground on individual issues – our relationship with Europe, devolution and the constitution, asylum and immigration – some common ground does exist: it is the recognition of the importance of and the need to celebrate and entrench a Britishness defined by shared values strong enough to overcome discordant claims of separatism and disintegration.

    Take David Goodhart’s recent contribution to the multiculturalism debate. In questioning whether there is an inherent conflict between the need for social cohesion and diversity he argues that he wanted to emphasise that what we need is ‘a core set of social norms…who are we does matter’.

    And while Melanie Phillips argues that a culture war is raging she has a remedy rooted in shared values of Britishness. There is hope, she says, because ‘if citizenship is to mean anything at all Ministers must sign up to an overarching set of British values’.

    Interestingly while Sir Herman Ousley, former Chairman of the Commission for Racial Equality, directly assails her views and indeed those of David Goodhart, he too returns to that same starting point – that there are British values all can share. Echoing Orwell’s ‘England My England’ his biographer Sir Bernard Crick argues British ‘people should have a sense of allegiance, loyalty, law and order and political tolerance’. Even Tom Nairn writes of Britishness that ‘there is a residual and yet still quite comfortable non-smallness about the term’.

    But when we ask what are the core values of Britishness, can we find in them a muscularity and robustness that neither dilutes Britishness and British values to the point they become amorphous nor leaves them so narrowly focused that many patriotic British men and women will feel excluded? Of course, a strong sense of national identity derives from the particular, the special things we cherish. But I think we would all agree that we do not love our country simply because we occupy a plot of land or hold a UK passport but also because that place is home and because that represents values and qualities – and bonds of sentiment and familiarity – we hold dear.

    And it is my belief that out of tidal flows of British history – 2000 years of successive waves of invasion, immigration, assimilation and trading partnerships that have created a uniquely rich and diverse culture – certain forces emerge again and again which make up a characteristically British set of values and qualities which, taken together, mean that there is indeed a strong and vibrant Britishness that underpins Britain.

    I believe that because these islands – and our maritime and trading traditions – have made us remarkably outward looking and open, this country has fostered a vigorously adaptable society and has given rise to a culture both creative and inventive.  But an open and adapting society also needs to be rooted and Britain’s roots are on the most solid foundation of all a passion for liberty anchored in a sense of duty and an intrinsic commitment to tolerance and fair play.

    The values and qualities I describe are of course to be found in many other cultures and countries. But when taken together, and as they shape the institutions of our country these values and qualities – being creative, adaptable and outward looking, our belief in liberty, duty and fair play – add up to a distinctive Britishness that has been manifest throughout our history, and shaped it. ‘When people discard, ignore or mock the ideals which formed our national character then they no longer exist as a people but only as a crowd’, writes Roger Scruton. And I agree with him.

    For there is indeed is a golden thread which runs through British history of the individual standing firm for freedom and liberty against tyranny and the arbitrary use of power.  It runs from that long ago day in Runnymede in 1215 to the Bill of Rights in 1689 to not just one but four Great Reform Acts within less than a hundred years. And the great tradition of British liberty has, first and foremost, been rooted in the protection of the individual against the arbitrary power of first the monarch and then the state.

    But it is a golden thread which has also has twined through it a story of common endeavour in villages, towns and cities – men and women with shared needs and common purposes, united as neighbours and citizens by a strong sense of duty and of fair play.

    And their efforts – and that sense of duty and fair play – together produced uniquely British settlements that, from generation to generation, have balanced the rights and responsibilities of individuals, communities and state and led to a deeply engrained British tradition of public service.

    First, liberty. It was Montesquieu who wrote in the 18th century that ours was ‘the freest country in the world’.  I would suggest that it is because different ethnic groups came to live together in one small island that we first made a virtue of tolerance, welcoming and included successive waves of settlers  – from Saxons and Normans to Huguenots and Jews and Asians and Afro-Caribbean’s, and recognising plural identities. Today 85 per cent believe a strong sense of tolerance is important to our country’s success. And I would suggest that out of that toleration came a belief in religious and political freedom – illustrated best by Adam Nicholson’s story of the creation of the King James Bible: different denominations coming together in committee to create what was called ‘irenicon’, which means a symbol of unity for the whole nation.

    Liberty meant not just tolerance for minorities but a deeply rooted belief – illustrated early in our history by trial by jury – in the freedom of the individual under the law and in the liberty of the common people rooted in constantly evolving English common law.  When Henry Grattan – the 18th century Irish politician  – attempted to sum up our unique characteristics, he said that you can get a Parliament from anywhere but you can only get liberty from England. Indeed so powerful were the ideas continued in the 1689 Bill of Rights which led to liberty associations all over Britain that both sides in the American War of Independence fought ‘in the name of British liberty’ and before America took the word to be its own, liberty was, in fact, identified with Britain.

    Of course liberty is, in Matthew Arnold’s words, ‘a very good horse to ride, but to ride somewhere’. And history is strewn with examples of how we failed to live up to our ideals. But the idea of liberty did mean, in practice, that for half a century it was Britain that led the worldwide anti slavery movement with engraved on the badge of the anti slavery society a figure of a black man and the quote, ‘Am I not a man and a brother’.  Indeed at home no slave was ever permitted and abroad the Royal Navy searched the world to eradicate slavery.

    And this view of liberty not only produced the Bill of Rights and the anti slavery movement but caused Britain to lead the way in restricting the arbitrary power of Monarchs and then onward to the far reaching democratic reforms of the nineteenth and twentieth centuries.

    And at every point this British belief in liberty has been matched by a British idea of duty as the virtue that reinforces neighbourliness and enshrines the idea of a public realm and public service.  A belief in the duty of one to another is an essential element of nationhood in every country but whether it arose from religious belief, from a ‘nobless oblige’, or from a sense of solidarity, duty in Britain – for most of the time an unwritten code of behaviour rather than a set of legal requirements – has been, to most people, the foundation of rights rather than their consequence.

    And the call to civic duty and to public service – often impelled by religious convictions – led to the mushrooming of local and national endeavour, of associations and clubs, a rich tradition of voluntary organisations, local democracy and civic life.

    From the guilds, the charities, the clubs and associations – which bred amongst other things the City of London’s unique structure  – and from the churches, to the municipal provision of public amenities like libraries and parks and then to the mutual insurance societies, trades unions and non governmental organisations, the British way is to recognise and enhance local initiative and mutual responsibility in civil affairs and to encourage and enhance the status of voluntary and community organisations – Burke’s ‘little platoons’ – in the service of their neighbourhoods.

    Alongside that a passionate commitment to duty, Britishness has also meant a tradition of fair play. We may think today of British fair play as something applied on the sports field, but in fact most of the time it has been a very widely accepted foundation of social order:  treating people fairly, rewarding hard work, encouraging self improvement through education and being inclusive.  In his last speech to Parliament in March 1955 – the speech that urged the British people to ‘never flinch, never weary, never despair’ – Churchill described the essential qualities of the British people and at the forefront was fair play. For other nations, he said, ‘the day may dawn when fair play, love for one’s fellow men, respect for justice and freedom, will enable tormented generations to march forth triumphant from the hideous epoch in which we have to dwell’.

    And this commitment to fair play – captured in Orwell’s word ‘decency’ – has animated British political thought on both left and right over the centuries, right through to the passion for social improvement of the Victorian middle classes and the Christian socialists and trade unions who struggled for a new welfare settlement in the 20th century.  It was a settlement – making opportunity available to all, supporting the most vulnerable in society, inclusive, and ensuring what we would today call social justice  – which over nearly half a century brought forth agreement across party and across social classes.

    So the British way has always been more than self-interested individualism.  Even in the heyday of free market philosophy society was always thought to rest on something greater than harsh organised selfishness. In his Theory of Moral Sentiments Adam Smith described the ‘helping hand’ that matched the ‘invisible hand’ of his ‘wealth of nations’. And he believed that the drive for economic success should be combined with traditions of social obligation, public service and a broad moral commitment to civic improvement. And this has brought forth tens of thousands of local neighbourhood civic associations, unions, charities, voluntary organisations – the space between state and markets in a Britain that has always rejected absolutism and crude selfish individualism – that together embody that very British idea – civic society – that was discovered in Britain long before ‘social capital’ ever entered our dictionary.  And it is an idea that Chief Rabbi Jonathan Sacks captures eloquently for our times when he talks of British society and citizenship not in terms of a contract between people that, in legalistic ways, defines our rights narrowly on the basis of self interest but a British ‘covenant’ of rights and responsibilities born out of shared values which can inspire us to neighbourliness and service to others.

    So while we talk in economics of the Anglo Saxon model – the pursuit of economic individualism through free markets – Britishness has always been more than just the ‘freedom from’ restraint but also stands for civic duty and fairness  And these two qualities of British life – the notion of civic duty binding people to one another and the sense of fair play which underpins the idea of a proper social order – come together in the ethic of public service. And this gave rise to great British public institutions admired throughout the world  — from the National Health Service and our army, navy and air forces to our universities, including the Open University, and the expression of civic purpose and social inclusion in culture and arts – our great national and municipal art galleries, museums and the BBC – not least the BBC World Service and the British Council.

    Alongside these values have been found what I regard as essentially British qualities: an ability to adapt, and an openness to new ideas and new influences which have made us, as a country, both creative and internationalist in our outlook.

    To have managed change for three hundred years without violent revolution is unique.  I find it extraordinary that some appear to believe that it is somehow British to defend the idea of a constitution that never changes.  It is precisely our ability to evolve our constitution that characterises the British way. So stability in our society does not come from rigidity:  it comes from the ability to accommodate and master change.  ‘A state without the means of some change’ Edmund Burke famously declared ‘is without the means of its conservation’. ‘Change is inevitable’ Benjamin Disraeli said in 1867, ‘in a progressive society change is constant’. And a willingness and ability to adapt enabled Britain to embrace the opportunities of the industrial revolution with unprecedented vigour and success and, more than a century later, to mobilise from peace to war to survive and triumph in two world conflicts.

    And our very openness to new ideas and influences also means that at the heart of British qualities are a creativity and inventiveness – from the first agricultural revolution to the pioneering work of Babbage and Turing that made possible the computer and information revolution; in science discoveries from DNA to cloning; in engineering the work of Brunel and the inventions from the steam engine to the TV; and in medicine from penicillin to interferon – an inventiveness that has ranged right across medicine and science to the arts and music.  And so it is not surprising that as we rediscover these qualities, British dynamism is leading the world in some of the most modern and creative industries – communications, fashion, film, popular music, art, architecture, and many areas of science and the environmental technologies.

    And out of that same openness to new ideas and influences, an outward looking internationalism that made us not just the workshop of the world but as a country of merchant adventurers, explorers and missionaries the greatest trading nation the world has ever seen. Many people have made much of the fact that Britain was a set of islands.  But unlike some other island nations British history has never been marked by insularity.  We are an island that has always looked outwards, been engaged in worldwide trade and been open to new influences – our British qualities that made us see, in David Cannadine’s words, the Channel not as a moat but as a highway.  An island position that has made us internationalist and outward looking and not – as other islands have become – isolationist and inward looking.

    Of course all nations lay claim to uniqueness and exceptionalism and many would choose or emphasise the qualities of the British people in a different way from me. And in highlighting this view of British history – one which places what I regard as intrinsically British values and qualities at its centre  – I do not want to claim moral superiority for Britain nor romanticise the past. And I do not gloss over abuses which also characterised our past. Nor do I claim the values and qualities I have described are not to be found in other nations. But I believe that they have shaped our institutions and together they have been responsible for the best of our past — creating a distinctive British identity that should make us proud, and not reticent nor apologetic, about our history. But most of all these values and qualities should inform any discussion of the central questions affecting our future.

    In fact the two ideologies that have characterised the histories of other countries have never taken root here.  On the one hand an ideology of state power – which choked individual freedom making the individual slave to some arbitrarily defined collective interest – has found little or no favour in Britain. On the other hand an ideology of crude individualism – which leaves the individual isolated, stranded, on his own, detached from society around him – has no resonance for a Britain which has a strong sense of fair play and an even stronger sense of duty and a rich tradition of voluntary organisations, local democracy and civic life.

    And this is my idea of Britain today.  Not the individual on his or her own living in isolation sufficient unto himself but a Britain of creativity and enterprise which is also a Britain of civic duty and public service.  And in this vision of society there is a sense of belonging that expands outwards as we grow from family to friends and neighbourhood; a sense of belonging that then ripples outwards again from work, school, church and community and eventually outwards to far beyond our home town and region to define our nation and country as a society.

    And we should not only be explicit about our British values but express them fully in way we organise our institutions. Let me suggest the agenda that flows from this.

    First, start with Burke’s ‘little platoons’ which reflect both a British desire for liberty and a strong sense of civic duty and fair play.

    If the British way is to encourage and enhance the status of voluntary and community organisations in the service of their neighbourhoods then we should recognise that aspects of post war centralisation fell short of our vision of empowered individuals and vibrant communities. The man in Whitehall never knew best; the woman in the WRVS and local community service usually knew much more. And so the question is how from the foundation of British values we refashion the settlement between individual, community and government.

    Today in Britain, there are more than 160,000 registered charities, more than 200,000 non-charitable voluntary and community organisations, around 400,000 in total, one for every hundred of the adult population – defining Britain as such a thing as society: an estimated 16 million people who do some kind of voluntary work – and nearly two adults in every five who give of their time to help others at least once in the year – and we best reflect our British traditions of civic duty and public service by strengthening our community organisations and making them more relevant to the challenges of today.  Take community service by young people. If America has its Peace Corps and now its Ameircorps, South Africa its National Youth Service, France its ‘Unis-Cite’, the Netherlands its ‘Groundbreakers Initiative’, Canada its Katimavik programme, should not Britain – with far greater and deeper traditions of voluntary and community service – be building on those traditions to engage a new generation of young people in service to their communities?  And should we not be doing far more to provide nationally and locally the means by which young people find it easy to participate?

    I am sure that following the Russell Commission on young people, we will wish to consider establishing a national youth community service; to ensure that poverty should not be a barrier to a gap year option for a young person; to promote a range of opportunities nationally and internationally that back up the marvellous work already done by volunteering organisations; and to secure a business engagement in this that can translate the widespread social concern that exists among employers and employees alike into effective action for the common good.  And I am sure we will also want to do more to translate community values into meeting new needs through new means like the internet and community television and so carry on the British tradition of voluntary service into the next generation. Take mentoring – underdeveloped in Britain – where I can envisage a new initiative for the future of Britain where through the internet, TV, local organisations and personal contact, we could establish a new network of mentors to befriend, advise, support and link those who need help and advice to those who can help.  And because sporting activity as so important to defining our country’s view of itself I believe we should also look in detail at the proposal to revive and expand participant sports in our country for a new National Sports Foundation.

    It follows secondly that if the British way is to restore and enhance local initiative and mutual responsibility in civic affairs we should be doing far more to strengthen not just voluntary organisations but local institutions of government. Rather than asking people to look upwards to Whitehall to solve all their problems, the British way is surely to encourage more and more people, from their own localities, to take more charge of the decisions that affect their lives.  Today with devolution, elected mayors and new local energy and enthusiasm, many cities in England, Scotland, Wales and Northern Ireland are undergoing a renaissance and as they become centres of initiative influencing our whole country, the whole of Britain can learn and draw from the energy of each of its parts.  And a reinvigorated local democracy can, I believe, emerge to empower people in their own neighbourhoods to deal with the challenges they face:

    • anti social behaviour where the engagement of the whole community is paramount;
    • schooling, where the participation of parents and the local community is vital;
    • the health service where the direct involvement of patients and prospective patients matters.

    Third, a Britishness that thrives on a strong sense of duty and fair play and a commitment to public service means taking citizenship seriously. And like David Blunkett who will also focus on these issues in a speech today, I would welcome a national debate on what the responsibilities and rights of British citizenship means in practice in the modern world. I believe strongly in the case for citizenship lessons in our schools but for citizenship to matter more, these changes to the curriculum must be part of a far more extensive debate  – a debate that, like the wide ranging debate we see in America about what it is to be an American and what America stands for, includes our culture and history as well as our constitution and laws. And I believe we would be stronger as a country if there was, through new literature, new institutes, new seminars, new cross party debate about our Britishness and what it means.

    And what of the institutions and symbols that best reflect citizenship and thus give importance to national identity? These must be symbols that speak to all our citizens so I believe that we should respond to the undermining of an inclusive citizenship by the British National Party by not only fighting their racism but by asserting at every opportunity that the union flag does not belong to a vicious minority, but is a flag for all Britain – symbolising inclusion, tolerance and unity; and that England, Scotland and Wales – whose celebration of national identity is to be welcomed and encouraged – should also honour not just their own flags but the union flag for the shared values it symbolises.

    There is also a more substantive issue about the importance of integration set against respect for diversity. Of course we live in a multiethnic as well as multinational state but because a multiethnic Britain should never ever have justified a crude multiculturalism where all values became relative, surely the common values that we all share should be reflected in practical measures such as those David Blunkett is outlining today to avoid religious hatred and to encourage – and in some cases require – the use of the English language.  Take an economic example.  Because many cannot find work because of language difficulties it is surely right to pilot mandatory language training for those jobseekers whose language needs are preventing them from getting jobs.

    Upholding British values summons us to do far more to tackle discrimination and promote inclusion. And I believe that there should now be greater focus on driving up the educational attainment of pupils from ethnic minorities and a more comprehensive New Deal effort to tackle unacceptably high unemployment in areas of high ethnic minority populations.

    If I am right, the British way is to develop a strong cohesive society in which in return for responsibility there is opportunity for all. And our British belief in fairness and our commitment to public service makes the NHS founded on health care based on need not ability to pay one of the greatest British institutions – an NHS that both reflects the values of the British people and is being modernised for our times in accordance with these very values. And we should never lose sight of the importance of the NHS not just to our view of Britishness but to the worlds view of Britain. If, in the twenty first century, we cannot make the NHS work in Britain we must ask what hope there is for millions in developing countries struggling with ill-health and disease who cannot afford private health care. But if we can show that the NHS, health care based on need not ability to pay, is indeed the best insurance policy in the world then we give to the developing countries a model of modern health care – and hope.

    Rediscovering the roots of our identity in our shared beliefs also allows us to address complex questions about our relationship with the rest of the world.

    This is not a subject for today – not least because it will be discussed endlessly for many months to come – but a far more detailed speech. But two observations follow from my remarks today. The first is that globalisation is fundamentally changing the nature of Europe. In the past European integration was built on the idea of a European trade bloc dominated by European flows of capital, European wide companies and European brands. Today we are in a completely different world of global movements of capital, global companies and global brands. As a result, the old integrationist project – the single market and single currency followed by tax harmonisation, federal fiscal policies and a quasi federal state – the vision of a trade bloc Europe – is fatally undermined. For to succeed economically Europe must move from the old model – the trade bloc or fortress Europe – to a new globally oriented Europe that champions economic liberalisation, a reformed social dimension and a more open rather than protectionist approach to trade with the rest of the world.

    The second observation is that while we must continue to learn from successes in other European countries, British values and qualities -particularly our outward looking internationalism that led us to pioneer free trade – have a great deal to offer in building the Europe of this new global era.  Indeed British qualities and values can play a leading part in shaping a Europe that must reform, be flexible, be competitive, be outward looking and build better trading and commercial relationships with the USA. So being fully engaged in Europe need not threaten Britain with subjugation inside an inward looking trade bloc but can mean Britain and British values playing a full part in leading a global Europe.

    A Britain that thinks globally not only builds from our traditions of openness and outward looking internationalism but builds upon huge British assets and strengths – the British Council itself, the BBC, the World Service, our universities and our long felt sense of obligation to the world’s poor.  And in addition to our well known proposals for international development  – including debt relief and the International Finance Facility for development – that represent a new deal between the richest and the poorest countries, I believe with you that we should build on the great success of the British Council internationally and do more to put one of our greatest assets – the English language, now the language of the internet and business – at the service of the world. 1.5 billion people now speak English. Our aim should be that that no one in any continent is prevented by poverty, exclusion or educational disadvantage from learning the English language.

    Thinking globally in an insecure world – and more important in the world since September 11th – requires us of course to take necessary steps to discharge a British government’s first duty – the defence of its citizens, the people of Britain.  And as we look forward to next week’s spending review, I will make available the resources needed to strengthen security at home and take action to counter the terrorist threat at home and abroad.  Those who wish to cut in real terms the budget even for security will need to answer to the British people.  We will spend what it takes on security to safeguard the British people.

    I started this lecture by asserting that the British way is to embrace not fear reform and the challenge of the 21st century is not just to express our Britishness in the evolutionary reform of individual institutions but to continue to evolve towards a constitutional settlement that recognises both our rights and aspirations as individuals and our needs and shared values as a community. But as we discuss how our evolving British constitution can best reflect our British values, what is very clear to me is that even if a significant section of the Conservative Party has ceased to see itself as the Conservative and Unionist Party, our Labour Party must stand resolute as the party of the Union. And indeed all decent minded people should, I believe, stand for and champion a Union that embodies the very values I have been discussing: a Union that, because it reflects shared values, has achieved – and will in future achieve – far more by us working together than we could ever achieve separate and split apart.

    So, in conclusion, there are good economic reasons for a new and rising confidence about the future of Britain.

    There are social and cultural reasons too for a new British optimism, a rising British confidence.

    We should think of Britain as a Britain discovering anew that its identity was never rooted just in imperial success or simply the authority of its institutions, nor in race or ethnicity.

    We should think of a Britain rediscovering the shared values that bind us together. Indeed the ties that today bind us are the same values and qualities that are at the core of our history…the values that should shape our institutions as they adapt, change and modernise to meet and master future challenges.

    So standing up for Britain means speaking up for British values and qualities that can inspire, strengthen and unify our country. And we can stop thinking about a post war Britain of decline – the Britain that was – and start thinking about the Britain that we can become: Britain, a great place to grow up in.

    A Britain believing in itself;

    A new era of British self confidence;

    Not just a Britain that is a beacon for economic progress but a Britain proud that because of its values and qualities, progress and justice can advance together, to the benefit of all.

  • Gordon Brown – 2004 Speech at the Joseph Rowntree Lecture

    Gordon Brown – 2004 Speech at the Joseph Rowntree Lecture

    The speech made by Gordon Brown, the then Chancellor of the Exchequer, on 8 July 2004.

    Our Children Are Our Future – Joseph Rowntree Lecture

    It is a privilege to be here today to deliver the Joseph Rowntree Foundation Centenary Lecture and let me begin by paying tribute to one hundred years of service to our community by the Rowntree Foundation.

    Born out of Joseph Rowntree’s concern and Christian outrage about poverty and deprivation.

    Built by the dedicated commitment of people who had a vision of the world not as it was but as it could be.

    And today widely acknowledged to be at the heart of what I can call the nationwide crusade for justice for the poor, with not just an established and well deserved reputation for authoritative research that consistently shines a spotlight on the needs of our country’s families but a path-breaking role in finding practical solutions – that started with pioneering developments in housing and community regeneration and now extends into not just housing and community regeneration but innovative forms of care for the young, the  elderly and the disabled.

    So in a century of service, the Rowntree Foundation, always rooted in values of public service, always driven forward by ideas and often painstaking research, always a tangible national expression of compassion in action – taking its rightful place as one of the great British national institutions.

    So I want today at the outset to congratulate all of you – board, staff, supporters, campaigners – on your years of progress and achievement.  And I hope you can be proud that your concern – poverty; your mission – to shock the nation into action against poverty; and your driving ambition – the eradication of poverty — for far too many years a call for justice unheard in a political wilderness, is the ambition now not just of your organisation but now the ambition of this country’s Government.

    And let me also say today that I am humbled not just to deliver this lecture to this Foundation but to address a gathering of so many people who have served our communities and country with such distinction, men and women here today in this audience so distinguished in their own spheres of service  – charity workers, social workers, community activists, academics, researchers, NGO leaders.

    You have not only worked year after year to tackle social evils but have worked tirelessly in some of the most difficult circumstances, keeping the flame of compassion alive often in some of the least propitious times and in some of the darkest and most challenging corners of our community. So especially for those who have toiled at the front line – often with few resources and little support — let me place on record my appreciation of the service so many of you give – of the work you do, the contribution you make, the dedication you show and the real difference you make.

    Let us think back to the conditions Joseph Rowntree surveyed one hundred years ago. The first building blocks of the modern welfare state yet to be established, the Lloyd George People’s Budget still a few years away, but Victorian and Edwardian society starting to discover the full scale of poverty in their midst. And Winston Churchill – who went on to introduce the first minimum wage – appalled by the huge gap between what he called the excesses of accumulated privilege and the gaping sorrows of the left out millions.

    And about Joseph Rowntree we could have no doubt: an idealist not a dreamer; an enthusiastic reformer not a reluctant donor; and in his lifetime and through the foundation he created we can genuinely say that he led the way in four areas vital to the development of our social services and the fabric of our community life.

    First, his plea – and I quote – that we ‘search out the underlying causes of weakness or evil in the community rather than remedying their more superficial manifestations’.  You might call it tough love: his rightful insistence that we tackle the sources of poverty and not just their consequences, that we should focus on the eradication of the evil of social injustice and not just compensate people for its existence.

    Second, Rowntree’s insistence on an evidence based approach. Indeed his Foundation is a monument to one man’s conviction that the lives of countless fellow citizens can be improved by the intelligent application of knowledge and then policy to one of the greatest social evils and one of the greatest moral challenges of the day.

    And that led thirdly to an understanding of the multiple causes of poverty, and the multidimensional nature, of poverty. And although there have been many changes in the last 100 years – for when he began there was no sickness benefit, no state pensions, no unemployment benefit and no National Health Service – I am struck by the fact that the multiple challenges that Rowntree identified in his ‘Founders Memorandum’ still remain relevant today – the challenge of poverty itself, of bad housing, poor education, neighbourhood renewal.  And you could say that he understood what was meant by multiple deprivation long before the term was even invented.

    And finally it led him – and the Foundation – to pioneer an understanding of the life cycle of poverty.

    In 1904, Rowntree described that tragic life cycle – of poverty during childhood, poverty for parents when they had children and poverty during old age. A lifecycle of poverty broken only by the short periods where you were an adult before your children were born or an adult whose children had grown up and left home.

    And the striking truth about what we found in 1997 was how firmly and how widely this ‘life cycle of poverty’ had returned.

    And I believe that Rowntree would agree that addressing the multiple causes of poverty and the life cycle of poverty in our times, demands we be far bolder than the philanthropists of 1904.

    Let us recall that in 1942 – nearly 40 years after the Rowntree Foundation was set up and in response to some of its pioneering work – Sir William Beveridge identified five evils – want, idleness, ignorance, squalor and disease – which a new welfare state had to confront.

    But because we are interested in the potential of every person, our goal today – inspired by Rowntree – must be even more ambitious than the one Beveridge set us in 1942 when he listed his five evils:

    • Instead of simply attacking idleness and unemployment, our goal is the genuinely challenging goal of full and fulfilling employment;
    • Instead of simply attacking ignorance, our goal is the more ambitious goal of lifelong education for all;
    • Instead of simply attacking squalor, our goal is high quality affordable, housing for all and not just houses but strong and sustainable communities;
    • Instead of simply tackling disease, our goal is not just an NHS there when you need it but health and social policies that can prevent as well as cure disease and
    • promote good health;
    • Instead of just securing freedom from want – which meant sufficiency and minimum standards – our goal is the development of the potential of all to secure prosperity for all.

    And in addressing these great challenges, our objective must be to ensure not only dignity for the elderly in retirement and the chance for all adults to realise their potential but that every child has the best possible start in life.

    And it is on the needs of children and the challenges ahead that I want to concentrate my remarks on policy today.

    Equality of opportunity

    Our starting point – the same starting point as Rowntree – is a profound belief in the equal worth of every human being and our duty to help each and everyone – all children and all adults – develop their potential to the full —- to help individuals bridge the gap between what they are and what they have it in themselves to become.  It is that belief that for the Rowntree Foundation is a summons to act and a call to duty.

    And if in our generation we are to ensure each person has the chance to develop their potential, it is clear that as a society we must develop a more generous view of opportunity than the old idea of a single chance to get your foot on a narrow ladder – one opportunity at school till 16 – followed by an opportunity for a minority to go on to Higher Education — which for millions of people in Britain meant rejection by 16, that if you had missed that chance it was gone forever.

    It is simply a denial of any belief in equality of opportunity if we assume that there is one type of intelligence, one means of assessing it, only one time when it should be assessed and only one chance of succeeding. It is because neither potential nor intelligence can be reduced to a single number in an IQ test – and because ability should never be seen as fixed – that no individual should be written off at 7, 11 or 16 – or indeed at any time in their life.  Justifying a far richer and more expansive view of equality of opportunity and fairness of outcome: to recognise that people have a breadth and diversity of potential; that their talents take many forms – not just analytical intelligence but skills in communication, language, and working with other people; that these talents can develop and be nurtured not just at school but over a lifetime; and that it is our duty – our unceasing duty – to ensure that throughout the life cycle there are – in education, employment, our culture and our economy and society – not only real opportunities for men and women to develop their potential but that there is, the core of Rowntree’s philosophy, a special duty to ensure no one is left behind.  And what has always been right on ethical grounds can now, today, be seen as good for the economy too.

    In our information-age economy, the most important resource of a firm or a country is not its raw materials, or a favourable geographical location, but the skills, and the potential of the whole workforce. Indeed what matters most in the new economy is not what a company has as assets on its balance sheet, its physical capital, but what assets it has in the talent in its workforce. Its human capital.

    In the industrial age, the denial of opportunity offended many people.  Today, in an economy where skills are the essential means of production, the denial of opportunity has become an unacceptable inefficiency and brake on prosperity.

    Full prosperity for a company or country can only be delivered — and Britain properly equipped for the future – if we get the best out of all people. And that cannot happen without opportunity that taps the widest pool of talent.  In the modern world therefore policies for the good economy and the good society go together.  So even if we could not persuade some of our fellow citizens to support action against poverty out of a concern for social justice, these same people should be driven to support action against poverty as a means to ensuring economic prosperity.

    And once we take this view that what matters on both ethical and economic grounds is opportunity to realise potential, we are challenged not only to break down all barriers of race, sex, class, and other discriminations but to actively promote changes that will deliver opportunities in practice.

    And our ambition to eradicate child poverty is the most tangible expression of the bigger moral and economic purpose I have described – to eliminate poverty so that we can ensure that every child has the chance to realise their potential.

    Child poverty

    Yet the return in the last three decades of the life cycle of poverty – indeed the great and unacceptable concentration of poverty amongst households with young children – is the greatest indictment of  our country in this generation and the greatest challenge of all.

    The facts are that in the two decades before 1997 the number of children growing up in workless households – households where no one had a job – rose to almost 20 per cent. One in every five children did not have a parent earning any income from work.

    The numbers of children in low income households more than doubled to over 4 million.

    And you must never forget that the UK – one of the richest countries of the industrial world – suffered worse levels of child poverty than nearly all other industrialised nations.

    Indeed, anyone reading reports on the condition of Britain will be shocked by one straightforward but disgraceful fact.

    When we came into Government one in every three babies born in Britain were being born into low income households. Born not into opportunity but into poverty.

    This is the ‘Condition of Britain’ question we had to confront one hundred years after the Joseph Rowntree Foundation was set up.

    And it is the ‘Condition of Britain’ question still with us fifty years after Beveridge and the creation of the welfare state.

    Not only was child poverty endemic by 1997 but social mobility had slowed – in some respects, gone into reverse.  And while more room existed at the top, a child from the lowest social class was a quarter as likely to make it to that place at the top as the child from the highest social class.

    But during these years when child poverty grew so too did our understanding of all that we had to do to tackle child poverty – and in particular just how crucial the first months and certainly the first years of a child’s life are in determining life chances.

    Indeed recent research suggests that much of children’s future prospects can be predicted within 24 months of them being born.  Leon Feinstein has shown how psychological and behavioural differences varying strongly by social class can be seen in children as young as 22 months and continue to have a systematic – and increasingly significant – effect on employment and earnings patterns right through to later life. Research undertaken in the US shows that pre-school experiences in language and literacy are strong predictors of later development in language and literacy.  And the Effective Provision of Pre School Education (EPPE) project in the UK found that children who participated in some sort of early learning made significantly more progress than those who didn’t. Abigail McKnight concludes that individuals who experience childhood poverty tend to suffer a penalty in labour market earnings in adult life, and that the size of this penalty has grown over time.

    For we now also know from your research that an infant who then grows up in a poor family is less likely to stay on at school, or even attend school regularly, less likely to get qualifications and go to college, more likely to be trapped in the worst job or no job at all, more likely to be trapped in a cycle of deprivation that is life long…less likely to reach his or her full potential, a young child’s chances crippled even before their life’s journey has barely begun.

    I believe that action to eradicate child poverty is the obligation this generation owes to the next.

    Children may not have votes – or the loudest voices…or at least their voices are not often heard in our politics – but our obligation is, if anything, greater because of this.

    And we also need to understand that these children are not just someone else’s children and someone else’s problem.  For if we do not find it within ourselves to pay attention to them as young children today, they may force us to pay attention to them as troubled adults tomorrow.

    So in 1999 determined to ensure that each child has the chance to realise his or her potential the government set an ambitious long term goal to halve child poverty by 2010 and eradicate it by 2020.

    Tackling child poverty is, for us, the critical first step in ensuring that each child has the chance to develop their potential to the full.

    And as a first step, we have sought to reduce the number of children in low income households by April 2005 at least a quarter.

    So far, measured by absolute low income, 2 million children have been lifted out of poverty; so far too, measured by relative low income, half a million children have been lifted out. And I think there is general agreement that having allocated resources to raise our child tax credits for the poorest families, we are on track to meet our target of reducing child poverty by a quarter by April next year.

    But we are not complacent in any way nor will we relax our efforts or allow them to be stalled.

    The next step – our goal of, by 2010, reducing child poverty by half – is even more challenging and how we reach this goal is the subject of the remaining observations I want to share with you.

    I can tell you today that in the spending review next week we will set out the detail of the target for 2010 – to halve the number of children in households in relative low income compared to 1998.

    As many of you have proposed to us, next Monday we will also set out an additional target to halve the numbers of children suffering from material deprivation – children lacking basic necessities the rest of us take for granted.  And because we know from your research that the quality of housing is critical in tackling poverty, we will – as part of this new material deprivation measure – be monitoring the quality of a child’s housing conditions.  Acting, I believe, in the spirit of Rowntree.

    And so let me point you to the policy changes that I believe are now necessary if we are to meet this anti poverty target, the means by which we seek to develop the potential of millions of British children.

    Financial support

    First, you would expect me as Chancellor to talk about hard cash and I am happy to do that.

    We can make progress towards halving child poverty because between 1997 and this year, for the family with one child, child benefit has already risen from £11.05 to £16.50 – a 25 per cent rise above inflation.

    But while universal child benefit is the foundation, it is the introduction of the child tax credit – now benefiting six million families and 10 million children, and led in Government by Dawn Primarolo – that allows us, while giving more to every child, to give most to those who need it most –— and is thus the front line of our attack on child poverty.

    So with the addition of the child tax credit the nine out of ten families who would in 1997 have received just £11  in child benefits now receives more than twice as much – £27 a week.

    For the poorest families tax credits go even further: with one child under 11, financial support which was £28 in 1997 is now £58.22 – a near doubling in real terms.  And a family with two children under 11 can now receive in children’s benefits over £100 a week.

    Indeed, progress is being made to meeting our child poverty target because the poorest 20 per cent of families have received not 20 per cent of all additional money but over 40 per cent.

    And, as a result, while all families with children are on average £1350 a year better off now than they were in 1997, the poorest 20 per cent of families are £3000 a year better off.

    For the rest of this Parliament we will continue to uprate the child element of the child tax credit in line with earnings —- and I can tell you today that in future Pre Budget Reports and Budgets we will assess progress towards our 2010 goal.

    As a Government we have also come to realise that if we are to meet our child poverty goals and ensure that there is equality in opportunity but also fairness in outcome, assets matter as well as income. So to each child born after September 2002 an initial contribution to their own individual child trust fund of  £250, with twice as much – £500 – for the poorest third of children; and then again a contribution at seven and then perhaps at later ages to enable all young people to have more of the choices that were once available only to some.

    With the new child trust fund worth twice as much for the poorest child; with the child tax credit worth four times as much for the poorest child; and with five times as much for the poorest infant – our anti-poverty commitment is based on a progressive principle that I believe that all decent minded people can and should support: more for every child, even more help for those who need it most and at the time they need it most, equality of opportunity and fairness of outcome applied in new times and with tax credits the principal new means.

    And as we develop our policies on financial support over the coming years, I recognise from your research and policy proposals that we have not done enough in a number of important ways and that there are major issues which now need to be addressed including:

    • First the costs faced by larger families and the consequences for benefits and tax credits
    • And second the housing costs faced by the low-paid, and this requires us also to evaluate the way housing benefit interacts with the tax and benefit system and the impact of the pilots for paying flat rate housing benefit.

    Employment

    So looking ahead we will continue to address the issue of children’s benefits but we have also always been clear about the importance of the contribution of family employment to meeting our child poverty targets.   And of course we must get the balance right between supporting mothers to stay at home, particularly in the early years, and creating opportunities for employment.

    Again it is because of tax credits – which create a new tax system whose rates start at 40 per cent at the top but go to as low as minus 200 per cent for the lowest income earners – that a lone parent with one child working 35 hours at the minimum wage is now £73 a week better off in work than on benefit.  And a couple with one child and one parent working 35 hours at the minimum wage is now around £38 a week better off in work than on benefit.

    Because the starting wage for the unemployed man or woman returning to work is typically only two thirds of the average hourly rate, the child and working tax credits have been designed not just to help people into work but to help people in work move up the jobs ladder and into higher incomes. Under the old system of family credit, 740,000 households faced marginal tax and benefit withdrawal rates of over 70 per cent, now the new credits have cut this figure by nearly two thirds, helping people keep more of every extra pound they earn.

    In total, 1.8 million more people are in jobs now than in 1997, with unemployment reduced to its lowest level in 30 years. But if we are to meet our child poverty targets we must advance further and faster to full employment in every community and we must make it a priority to reach the still large number of households with children — where no adult works.

    And of crucial importance in meeting our child poverty target for 2010 will be employment opportunity for lone parents.

    It is a striking fact that lone parent households contain a quarter of all children but account for nearly half of those in poverty.

    As a result one and a half million of the country’s poorest children are today living on benefit in lone parent families where no one has a job.

    Since 1997 250,000 more lone parents have gone into work.

    Because of the new deal the minimum wage, the working tax credit and other initiatives, the lone parent rate of employment in the UK has increased to 53 per cent.

    But in the US lone parent employment is more than 60 per cent, in Sweden above 70 per cent and in France in excess of 80 per cent.

    Our target is 70 per cent lone parent employment by 2010. And let me explain the significance of this ambition.

    If we meet our target to raise lone parent employment, this one success alone could reduce the number of British children living in poverty by around 300,000. And if we went even further to French levels we could reduce the number of children in poverty by a total of approaching half a million.

    Now research shows most lone parents would like to combine paid work with the vital job of being a parent. But they face real barriers to doing so.  And those who work with lone parents – and lone parents themselves – have rightly called on us to do more to help them get the skills they need for work and to ease the transition between income support and paid work.

    So while all lone parents are now invited in for work-focused interviews.  We are also piloting new lone parent ‘work discovery weeks’ – run by employers in London, Glasgow, Liverpool, Manchester, Leeds and Birmingham – that are providing introductory and preparatory courses for work in some of our best known retail stores, hotels and companies —– and backed up by help with childcare.

    Where local employers identify a demand for skills lone parents in these six cities also have access to free NVQ level 3 training – and funds to buy work clothes or equipment.

    And because we recognise that the time of transition from benefits to employment can be difficult, from October lone parents will benefit from a new job grant of £250 when they move into work and they will enjoy a four week extension of housing benefit.

    So what does the success of our recent measures mean in practise for tackling child poverty? It means that with the new help with housing benefit, lone parents on a typical rent of £50 a week and working part time will receive at least £217 a week for around 16 hours work a week.

    The effective hourly rate is not the minimum wage of £4.50 but £13.50 an hour – making them far better off working part time than not working at all.

    And so we have come to recognise that central to tackling child poverty – as well as to the importance of helping families balance work and family life – is the provision of adequate child care.  And while we have since 1997 created over a million more child care places, the greatest help for low income families has been the third element of tax credits that we have introduced — the tax credit for covering the costs of child care – up to £95 each week for families with one child in qualifying childcare and up to £140 for those with two or more children.

    When we started in 1997 it was claimed by just 47,000 families, it is now benefiting 320,000, with maximum help given to lone parents.

    And while we ensure that by 2008 nearly 2.5 million children a year will have access to good quality childcare, again for poor families the next stage in the extension of the child care tax credit is of greatest importance – from April 2005 extended to a wider range of eligible childcare including, in some cases, at home.   And the tax credit will be supported by a new incentive for employers — to give their employees up to £50 a week, free of income tax and national insurance, to help with childcare costs.

    Public services

    So tax credits have been and will continue to be the key to tackling child poverty. But as a government we also have a duty and role to play in encouraging the development of the potential of Britain’s children through the provision of high quality public services – and Bruce Katz has this morning shown why one of our priorities must be to drive up the performance of public services in our most deprived neighbourhoods and thus break long established cycles of deprivation.  And I do not underestimate the critical role that new investment in housing can play.

    Of all the services that contribute to the development of potential a good education – the subject of the government’s five year plan today – is clearly the most fundamental. So as I announced in the budget we are investing over 3 years an additional £8.5 billion in education; raising average spending per pupil from the £2500 a year we inherited to £5500 by 2008 —- and, as a sign of our commitment to tackling disadvantage, by even more in the 1400 schools that benefit from our extra support for leadership and excellence to combat deprivation.

    We have, indeed, a long way to go in ensuing for today’s poor children a decent start in life but it is important to record that the greatest improvement so far in reading, writing and maths has been in the primary schools of the poorest areas.  And I can tell you that the next stage is to help at an early stage the very pupils most in danger of falling behind — and with extra money for their books, and their classrooms equipment and staffing drive up their literacy and numeracy.

    I can also inform you that secondary schools with more than 35 per cent of their 14 year olds eligible for free meals are now making the biggest gains in maths and science results at key stage 3.  Indeed the number of secondary schools with less than 25 per cent of their pupils achieving 5 or more good GCSEs has fallen from over 600 in 1997 to 224.  And today’s five year plan sets out our next steps – with the very pupils most in need offered more personalised learning including new vocational options and greater access to IT.

    I can tell you also that in the spending review, there will be new, more challenging floor targets for the poorest areas. And as part of the review of the local formulae used to distribute schools funding – due to take place later this year – I would like to identify even more effective ways to target resources at tackling deprivation: measures to help children in the bottom income quintile catch up, particularly in primary school, and measures to enable schools to meet the higher costs of educating children from poorer backgrounds who may have lower levels of early educational attainment and who may have far less parental support.

    Tragically Britain has, for decades, had one of the poorest staying on rates of the industrialised world. In Britain more young people leave school early, more leave without qualifications and more never reappear in the world of education.

    So again to tackle both poverty and lack of opportunity – and to seek to tackle perhaps an even greater challenge, the poverty of aspiration amongst children and young people and their parents – we have reformed the careers service, introduced summer schools, encouraged better links between schools and universities and colleges.  And we have piloted an education maintenance allowance:  up to £1500 a year on top of child benefit and the child tax credit for those young people who need financial help to stay on in education and get the qualifications they need. And so successful has the allowance been in raising staying on rates that from September this year it will be available nation wide.   And as it goes nationwide be made available not just for school and further education courses but for training too – once again helping all young people, but doing more for those who need help most so that no child is left behind.

    Services for under fives

    I said at the outset that while we are committed to social security from the cradle to the grave, too many children have already lost out within months of being born – condemned to poverty because not enough has been done to help them from the cradle to the nursery school.

    Indeed for fifty years while there was undoubtedly much innovation in the voluntary and charitable sector, welfare state support for the country’s youngest children consisted of maternity services, vaccinations and a requirement to appear at school at age 5.

    Yet while the provision remained inadequate the evidence grew that the first four years of a child’s life are critical to their personal development; that children who went to nursery or other early education before they attended school were likely to have significantly improved social, emotional and cognitive development; that the longer children attend pre-school – and the higher the quality of the service – the greater the positive influence; and that such intervention was particularly beneficial for the poorest children.

    And so it is clear that a strategy of counteracting disadvantage must begin right from the start of a child’s life and that the earliest years – once the lowest priority — are now rightly becoming among the highest priority: not just the biggest gap in provision and next frontier for us to cross, but one of the single most important investments the welfare state can make.

    The sure start maternity grant – once just £100 – has been raised to £500, a five fold rise in five years.

    Reversing a long standing policy that more child benefits went to older rather than younger children, we doubled the child tax credit for the first year of a child’s life.

    To help parents stay at home with their children, maternity leave and pay has been substantially extended and paternity pay now exists for the first time.

    And earlier than planned nursery education is now available for all 3 year olds as well as all four year olds.

    Now in the past to identify a problem – the need to expand provision for infants from birth to three   – would probably have led simply to the creation of a new state service.  But I believe that what today is happening in the area of under five provision shows how what we do – in the spirit of Rowntree – is based upon evidence; how the best approach is multi-dimensional – across the services – and the range of provision mixed; and how, instead of a narrow focus on what central government can do, voluntary and community organisations, and parents, and government, local and national, through not just one service but a range of services – child health services, social services, and early learning –  are now all part of the solution.

    I often say that sure start – led by Charles Clarke, David Blunkett and Margaret Hodge – is today one of the best kept secrets of government, but it is also one of the unsung successes of the voluntary and community sector.

    And there are now over 500 sure start or children’s centres providing services for 400,000 children across the country, including a third of all children under four living in poverty.  And you have only to visit local sure start projects – as I did in Bristol a few weeks ago and then in Birmingham last week – to capture a very real sense of the difference they are making: and already evidence from individual projects in some of Britain’s most deprived areas shows that sure start is having a notable effect on children’s language development and social skills, and on the interaction of parents and their children.

    What is then exciting about sure start and the approach it represents ?

    I believe that what is exciting is what Rowntree himself would have approved of – and what Rowntree Foundation research has pointed towards.

    First, a co-ordinated approach to services for families with young children, tackling the multi-dimensional causes of poverty – physical, intellectual, emotional and social – by adopting an integrated approach with childcare, early education and play, health services and family support at the core of sure start.

    It reflects a growing recognition that housing, health, transport social services, youth and many other services are vital in tackling child poverty and developing young people’s potential.  And the new public service agreements we will be publishing alongside our commitment to new investment for these services will reflect this.

    Second, the emphasis within this approach on health and inequality highlighted by today’s report of the health care commission.  And later this year there will be a new Public Health White Paper – refocusing our attention on preventive health – which will emphasise once more the importance of tackling the unacceptable health inequalities – including infant life chances – which distort our country.

    Third, sure start is emphasising the central role of parents in tackling child poverty – and that is why parents are enlisted in the very running of the sure start projects.

    We must never forget that it is parents who bring children up, not governments, and our emphasis is on the opportunities now available to parents and the responsibilities they must discharge.

    So we are not only increasing the financial support available to parents – and exploring options for future further increases in maternity and paternity pay – but making available wider support for parents, including expanding parenting classes and providing access to practical parenting advice in a wider range of locations.

    Fourth, the central role of voluntary community and charitable organisations from mothers and toddlers groups to the playgroup and child care movement to vast and impressive range of specialist organisations throughout our country. It is a humble recognition of the limits of government – that child poverty cannot be removed by the action of government alone but by government, working with parents, voluntary charitable and community organisations – and a celebration of the vital role of the voluntary and community sector in every city and town of our country. And let us not forget that alongside traditional voluntary organisations – like the churches and uniformed organisations for young people – that have been declining in numbers, there has been a mushrooming of young mothers groups, playgroups, and groups and clubs associated with children locally and nationally.

    And let us be clear about the radicalism of our approach.   For sure start also enacts an important new principle into action – that services for the under-fives not only involve voluntary and charitable action at a local level – even more so than we have done in the past – but either in partnership or in sole control, the very running of these local groups can be and is being passed to community control.

    And it is a recognition that, we must all accept our responsibilities as parents, neighbours, citizens and community leaders, in the battle against child poverty.

    And of course there is a fifth innovation:  the far greater emphasis on early learning – so early that it can start with the local school contacting the mother not in the months before the child’s fifth birthday but just a few weeks after the child is born – backed up by innovations like Bookstart offering children the books they might not otherwise have, to start in their first months to learn to read.

    And we can see now how combined with the improved income support for the under fives that I have described, the additional cash resources for early learning and the support for the specialist groups – many represented here – that deal with disability, special needs and other challenges, a new more comprehensive approach not just to tackling child poverty but to developing the potential of every child is taking shape.

    And as we approach the spending review next week and advance to the pre budget report, I can tell you that what I have described this morning can only be the start of what we have yet to do.

    Building on sure start, the next stage is to fund the creation of new children’s centres across the country – again providing a combination of good quality childcare, early years education, family support and health services.  By 2006 650,000 children will be covered by sure start or children’s centres. And there will be new funding – despite our other representations – to ensure 1700 children’s centres by 2008 – one in each of the 20 per cent most deprived wards in England, as we advance towards our goal of a children’s centre for every community.

    But sure start – and related services – point the way for a new agenda for services for young children:

    • Greater encouragement for local initiatives and community action in the war against child poverty;
    • Offering government money to back non-government initiatives to tackle disadvantage;
    • Partnership with both the biggest voluntary and community organisations and the smallest;
    • The emphasis on prevention not simply coping with failure;
    • Greater parental involvement in the running of services.

    And anyone who like me has attended a sure start conference – and seen the dynamism, energy and determination of parents, volunteers and carers in action – can begin to understand the transformative power that organisations from the playgroup movement to the child care campaigns can have. And I look forward to the little platoons in our communities becoming veritable armies demanding we do more.

    So new finance, like tax credits

    New initiatives, like the new deal for lone parents

    New dimensions, like support for child care

    New services, like sure start

    New approaches, whole services  managed by the voluntary sector

    New directions, engaging parents in the running of programmes.

    All weapons in the war against child poverty

    All evidence that parents, voluntary organisations and government can acting together make a real difference

    All evidence also that informed by knowledge, working with the best of caring organisations, public action can transform young lives.

    Go to a sure start programme, as I did a few days ago – and see the bright new investments that are starting to change the face of some of the most deprived areas of our country.

    Listen to a mother, once feeling trapped in her home, telling you how sure start has introduced her to other mothers with similar stories to tell.

    Hear the views of children of lone parents – telling of their pride that their mother now has a job.

    And hear the responses of parents on the child and working tax credits – describing how what they can spend on their children has been raised by £50 a week.

    And so I tell you. After seven years of government I am not less idealistic but more idealistic about what we can achieve working together.

    Because we now have evidence of what can be done by sure start in some areas of the country, we want to apply the lessons to all parts of the country. And because we have evidence of the good that is done for some children, then we want to extend these opportunities to all children.

    And what started, for us, seven years ago as an article of faith about what might be achieved is now a conviction based on clear evidence about what can and must be done.

    Because what has been done shows us what more can be done, because the evidence of small successes shows what even larger successes are possible, it must make us more even more ambitious to do more.

    So my experience of Government has not diminished my desire to tackle child poverty but made me more determined to do more.

    For what has happened so far does not begin to speak to the limits of our aspirations for developing the potential of Britain’s children, but challenges us to learn from the changes now being made and strive in future years to do even more.

    So on Monday I will be able to announce the next stage in our policies for tackling child poverty and for helping the development of the potential of every child – and I believe as a country we are ready to do more to tackle old injustices, meet new needs and solve new challenges.

    But what we can achieve depends upon the growth of a nationwide sentiment of opinion – indeed, a shared and concerted demand across communities, across social classes, across parties, across all decent minded people – that the eradication of child poverty is a cause that demands the priority, the resources, and the national attention it deserves.

    It is not usual for government to welcome the growth of pressure groups that will lobby, demonstrate, embarrass, expose and then push them to action. But I welcome the new alliance for children — the broad coalition of community organisations, voluntary and charitable sector determined to push further to end child poverty.

    For the emerging evidence – and the growth in a nationwide public opinion – emboldens me to believe it can indeed be this generation of campaigners, charity workers, child carers, sure start organisers, working together, that will right the social wrongs that impelled Joseph Rowntree to action and ensure every child has a fair start in life.

    So let us continue to follow the lead given by the pioneers who brought the Rowntree Foundation into being.

    And inspired by a generation of reformers like Rowntree who had a vision; driven forward – as the Rowntree Foundation has always been – by the evidence of what is happening around us; never loosing sight of the vision that inspired a whole generation; our eyes fixed firmly on the goal that if every child has the best start in life we can build a better Britain.

  • HISTORIC PRESS RELEASE : Thalidomide payments made tax free [July 2004]

    HISTORIC PRESS RELEASE : Thalidomide payments made tax free [July 2004]

    The press release issued by HM Treasury on 15 July 2004.

    Paymaster General Dawn Primarolo today laid new legislation to make payments from the Thalidomide Trust to victims of Thalidomide tax-free, a move which will be worth £1 million per year in lower tax and increased tax credits for recipients of the payments.

    Since 1974, the Thalidomide Trust has been subject to the same rules that govern payments from all ‘discretionary trusts’.  Up until now some payments from the Trust have counted towards the victims’ ‘taxable income’, increasing their tax bills and also reducing their level of entitlement to tax credits.

    Following consultation with the Inland Revenue the Trust will change the way it makes its payments to victims so that they can be classified as “periodical” and fall within the scope of legislation governing “structured settlements”. This allows the Treasury to make use of a hitherto-unused provision of the Income and Corporation Taxes Act 1988 to designate the “periodical payments” to Thalidomide victims as exempt from income tax.

    The new legislation will take effect from 5th August 2004, after which payments from the Trust to victims will be discounted as “income” for the purposes of calculating the victims’ income tax liabilities and their entitlement to tax credits.

    The total value of the change to Thalidomide victims in terms of lower income tax and additional tax credits will be around £1 million per year. For individual victims, it could be worth up to £60 a week, £240 a month, or £3,120 per year.

    Commenting on the changes, Dawn Primarolo said:

    “I am delighted that, working closely with Thalidomide Trust, we have been able to find this solution, which will bring real financial benefits to those affected by the Thalidomide disaster. Today’s announcement demonstrates our continued commitment to helping the most vulnerable in society, and acting where we can to ensure a fair tax system. The hundreds of individuals who have campaigned for this change and worked hard to achieve it deserve our praise and thanks today.”

    Details:

    The Thalidomide Trust was set up in 1973 to support the victims of Thalidomide. The initial trust funds were provided by way of a donation from Distillers (later Guinness, now Diageo) who made the Thalidomide Drug.

    Donations to the trust by Distillers/Guinness/Diageo have been made as follows:

    • Under a 1974 agreement, Distillers agreed to pay out £14m under deed of covenant at £2m per year for 7 years, later adjusted to £19m in 1978 when more victims came to light;
    • In May 1995, Guinness agreed to enter into a further ‘entirely voluntary and charitable’ covenant to pay an additional £2.5m per year for a period of 14 years (the Trust was running out of funds at this time); and
    • In June 2000, Diageo agreed to extend the additional contributions until 2022 and index link them from April 2000.

    The beneficiaries are taxed on the payments at their marginal rate of tax with credit given for the 40 per cent tax deducted by the trustees. So if the beneficiary is a higher rate taxpayer they have no further tax to pay. However if, as is more usual, they are a non-taxpayer or basic / standard rate taxpayer they can reclaim some or all of the tax deducted.

    Since the 1970s, successive governments have given a total of £12.8 million to the Thalidomide Trust. £5.8 million was given in 1974 and 1978 (around the time the Trust was created) to offset the tax due on payments to beneficiaries.

    In 1996, £7m was paid as a “one-off” and “final” contribution in recognition of what the government of the day called “the unique and tragic circumstances which surround the Thalidomide disaster”.

  • HISTORIC PRESS RELEASE : Manor of Northstead – Peter Mandelson [September 2004]

    HISTORIC PRESS RELEASE : Manor of Northstead – Peter Mandelson [September 2004]

    The press release issued by HM Treasury on 8 September 2004.

    The Chancellor of the Exchequer has this day appointed the Right Honourable Peter Benjamin Mandelson to be Steward and Bailiff of the Manor of Northstead.

  • HISTORIC PRESS RELEASE : Flexibility the route to Full Employment [September 2004]

    HISTORIC PRESS RELEASE : Flexibility the route to Full Employment [September 2004]

    The press release issued by HM Treasury on 10 September 2004.

    Europe needs even more radical reform if it is to tackle high unemployment and achieve sustained growth, the Chancellor, Gordon Brown, will say in a report to EU Finance Ministers today.

    Gordon Brown tells Finance Ministers:

    “Europe must create 21 million new jobs to meet the target for 2010 – and yet unemployment is still rising. So I will tell colleagues today that there is no security without change and that greater flexibility is an essential route to greater employment”.

    Presenting a report to today’s meeting of European Finance Ministers on the progress of the Lisbon Agenda, the Chancellor outlined four urgent priorities to break down barriers to economic growth and employment:

    • break down regulatory barriers for business with the Four Presidencies initiative insisting on a new competitiveness test for all new regulation;
    • achieve greater flexibility in labour market employment policies so that we equip Europe’s peoples with the jobs and skills to compete in the new global economy;
    • set a new and more urgent timetable for concrete and credible reforms to complete the Single Market with specific deadlines; and
    • break down the barriers to better trading relationships with the United States and the rest of the world.

    Gordon Brown said:

    “Starting today, Europe must commit itself to radical new reforms, becoming more flexible and outward-looking, creating the jobs, growth and prosperity our citizens deserve and expect.

    And in Britain, we will be coming forward in the Pre Budget Report with the measures needed to boost enterprise, raise productivity and make our economy more flexible.”

    Details

    European Finance Ministers will today debate Wim Kok’s mid-term review of Europe’s progress against the Lisbon agenda. The Treasury’s submission to Wim Kok’s review highlights the key steps needed to give renewed stimulus to growth and reform in Europe, including:

    • action to refocus reform on jobs and productivity, by streamlining  the existing 102 Lisbon benchmarks and focusing on core headline targets;
    • annual Lisbon scorecards and commitments ranking Member States’ progress with economic reform and setting out European leaders plans for reforms in the year ahead;
    • further regulatory reform, building on the January 2004 Four Presidency Initiative (Ireland, Netherlands, United Kingdom and Luxembourg), to reduce the burden of new and existing legislation on enterprising and innovative businesses;
    • reform of state aid, ending the use of aid to create national champions and protect declining industries from competition, and further flexibility for Member States to promote enterprise and innovation;
    • urgent reform of labour markets, with all Member States implementing the detailed recommendations of the November 2003 European Employment Taskforce report;
    • further steps to create a dynamic and competitive Single Market, through liberalisation in services and a more effective competition policy that ensures real gains for businesses and consumers;
    • taking action to promote innovation and enterprise; and
    • trade and investment liberalisation, with strong EU leadership in multilateral trade negotiations and further action to build a stronger transatlantic economic relationship.