Tag: Press Release

The press release issued by HM Treasury on 6 August 2003.

HM Treasury, the Financial Services Authority and the Bank of England today jointly published a guide to the EU Financial Services Action Plan (FSAP). The FSAP consists of a set of measures intended to achieve a Single Market in financial services across the EU by 2005.

John Healey, Economic Secretary to the Treasury, commented:

“With the Financial Services Action Plan nearing completion, it is essential that all stakeholders should be consulted on, and fully understand, the measures. Together with the Financial Services Authority and the Bank of England, we have prepared this guide so that all those involved are aware of the impact of new measures and the competitive opportunities of further EU financial integration .”

The guide is intended for financial institutions, companies and consumer groups in the UK that are not yet sufficiently familiar with the FSAP’s potential impact.

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

New proposals to take forward the Government’s reform of corporation tax aimed at supporting business competitiveness, productivity and growth, while ensuring fairness for all, were launched today.

Announcing the consultation, Corporation tax reform, Paymaster General Dawn Primarolo said:

“Sustainable growth and economic stability are built on the platform of a thriving business sector. For that we need a tax system that underpins business competitiveness, and ensures fairness across all sectors of the UK economy. Today’s consultation document marks the next stage in the Government’s strategy to achieve that objective through the reform of corporation tax. ”

”In 2002 the UK accounted for almost 30% of total EU inward investment. Today’s publication builds on the UK’s enviable position as an attractive location in which and from which to do business and further develops the wide-ranging proposals discussed in the August 2002 consultation document. I would urge businesses and all those with an interest in corporate tax to read and respond to the consultation.”

The consultation seeks views on proposals for taking forward reform in the three main areas set out in the August 2002 consultation document:

• Rationalisation of the way in which the schedular system taxes different types of corporate income to provide more flexibility in the way in which losses from one activity can be set off against profits arising from another;
• Changes to the tax treatment of trading and investment companies to remove outdated restrictions and facilitate group restructuring; and
• Changes to the tax treatment of capital assets to reduce distortions in the tax system.

It also addresses the reform of corporation tax in its wider international context, recognising the influences of a competitive business environment, of international agreements and of legal developments.

The press release issued by HM Treasury on 4 September 2003.

New figures published today show that take-up of the new tax credits has been a huge success with 5.8 million families benefiting after just four months, a massive 95 per cent of those expected to receive tax credits in the first year, said Paymaster General Dawn Primarolo today.

Speaking to the Child Poverty Action Group (CPAG) in London, Ms Primarolo said:

“New tax credits are the biggest step forward in tackling child poverty, making work pay, supporting hard working families, and getting more financial support to families ever introduced by this or any other Government.

“I can announce today that already, 5.8 million families are benefiting. We had expected that by next April, after a full year, six million families would be benefiting. So, after just four months, we have reached 95 per cent of those we expected to reach over a year– a massive success by anyone’s standards.

“Tax credits play a crucial role in support for mums who want to go back to work; help for families coping with the costs of a new baby; help for hard working families.”

The press release issued by HM Treasury on 8 September 2003.

In order to make it easier for funders of the voluntary and community sector to understand the implications of Government accounting rules the Treasury today published ‘Guidance to Funders’.

The guidance is a direct response to recommendations of the 2002 Cross Cutting Review of the Role of the Voluntary and Community Sector in Service Delivery. It makes a significant contribution to the Government’s commitment to creating a framework in which the voluntary and community sector can flourish, be strong and independent.

The Rt Hon Paul Boateng MP, Chief Secretary to the Treasury, said:

“If we are to reap the rewards of the voluntary and community sector’s role in service delivery, we must improve the funding relationship between Government and the sector.  This guidance to funders is designed to make it clearer and therefore easier for funding bodies to distribute money to the voluntary and community sector. I am very pleased that today’s announcement means we have now fully responded to all our commitments under the Cross-Cutting Review within one year of its publication.”

The cross cutting review identified the need for clear and consistent guidance around funding relationships between the voluntary and community sector and the government.  The Guidance to Funders document clarifies what practices are and are not allowed under Government Accounting standards.

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

The interim report of the Independent Review of Public Sector Relocation published today by Sir Michael Lyons said that it should be possible to relocate 20,000 or more public sector jobs out of London and the South East.

Potential benefits of public sector relocation include:

cost savings to Departments through improved recruitment and retention and lower labour and accommodation costs;
better service delivery to customers: and improved quality of life to employees due to lower house prices and commute times which are often half those of staff based in central London.

Sir Michael has also recommended that government departments should consult the Treasury on proposals to renew or take on new property leases in London and the South East. This is a practical common sense step intended to prevent actions taken now from influencing the final outcomes of Sir Michael’s review. The Chancellor has accepted this recommendation.

Sir Michael Lyons said:

“I am conscious I have set departments a demanding task in developing relocation proposals. I hope they will think hard both about the costs of operating in London and the South East, and the broader benefits of relocation discussed in my interim report. I have already seen some exciting proposals and am sure that others can come up with creative and robust proposals in response to my Review.”

Welcoming Sir Michael’s interim report, Chancellor Gordon Brown said:

“I am grateful to Sir Michael for his interim report into the scope for relocating public service activities away from London and the South East. I will study his report with particular interest and the final report due later this year. I am convinced that further decentralisation of public sector activities can lead to improved service delivery as well as provide a good deal for the taxpayer. Following Sir Michael’s review, I would expect relocation will more and more be employed for the efficient and effective management of the public sector.”

The Deputy Prime Minister, John Prescott, also commented:

“I will carefully study Sir Michael’s interim report and look forward to seeing the final report in November. Sir Michael’s review provides a good opportunity for departments to consider the regional balance of their activities across the United Kingdom while, at the same time, continuing to improve the quality and effectiveness of services to the public.”

The press release issued by HM Treasury on 11 September 2003.

Details of the £125m futurebuilders investment fund to assist the voluntary and community sector to deliver public services were announced today. The fund will be used to provide access to finance for voluntary and community organisations and social enterprises to deliver public services in five key service areas.

The fund will be used and distributed in different ways tailored to suit the varied needs of the voluntary and community sector. This will include grants and various types of loans. Loans will primarily be given to organisations that cannot raise finance on the commercial market. There will be flexibility to use a mixture of types of finance for individual schemes, as well as the ability to phase in the finance over time.

The fund will be managed outside Government by institutions tuned in to the needs of the sector. An open competition will be held to appoint the fund manager(s) who will determine which organisations are eligible to receive the fund based on the principles published today.

Paul Boateng, Chief Secretary to the Treasury, said:

“The Government wants to make it easier for the voluntary and community sector to contribute to public service delivery. futurebuilders will fund the best ideas in order to create exemplars that inspire and lead in voluntary and community sector delivery of public services. The fund will showcase what the sector can do when enabled to function at its best. I am confident that the unique design of the fund will help the money reach those in the sector who will make best use of it.”

The fund’s design is based on a joint assessment by Government and the sector of what is needed and what will work most effectively for the sector.

Sir Michael Bichard, Chair of the Compact Working Group, said:

“futurebuilders marks a new way of working between the voluntary and community sector and government. It underlines the value of the Compact as a vehicle for strengthening the partnership between us. This is demonstrated by the fact that today’s report is a joint publication by Government and the sector.”

The press release issued by HM Treasury on 25 September 2003.

Following the Budget announcement that the annual revalorisation of fuel duties would be deferred for six months until 1 October due to international uncertainties, with the military conflict in Iraq and the volatility of oil prices, the Treasury today confirmed that, as planned, fuel duties will increase in line with inflation on 1 October by 1.28 pence per litre.

The legislation for this change was passed by Parliament in the Finance Act on 10 July 2003.  Since the Budget, the uncertainty for other regional oil-producing nations has lessened. The volatility of oil prices at the time of the Budget has now diminished and oil prices have become more stable.

Since 2001, fuel duty has been reduced by 13 per cent in real terms.

Notes to editors

1. The Chancellor said in his Budget speech in April: “Owing to the recent high and volatile level of oil prices as a result of military conflict in Iraq, I have decided to defer the 1.28 pence a litre annual revalorisation of fuel duties until six months from now – 1 October – and will legislate to this effect.  And if the current international uncertainties and volatility remain I will not proceed with the change at all.”

2. Yesterday’s OPEC meeting in Vienna agreed a small cut in output in response to the fall in prices expected to follow normalisation of Iraqi production, but OPEC expects prices to remain near the middle of the $22-$28 price band into 2004 and stresses the importance of “maintaining price and market stability in 2004 and thereafter”.  In its World Economic Outlook for 2004, the International Monetary Fund said: “Markets expect prices to be sustained through 2003.  By late next year, however, many analysts believe prices could fall sharply – to levels significantly lower than suggested by current futures”. The communiqué issued after Saturday’s meeting of the G7 countries in Dubai also stated that “Oil prices are expected to remain stable”.

3. Since March 1999, the duty rates on the main types of petrol and diesel have not risen in real terms. Duty rates rose in line with inflation in March 2000, were cut by 2 pence and 3 pence per litre in March 2001 and have been frozen since then, representing a cost to the Exchequer of £1.8 billion or a reduction in real terms of 13 per cent, while the switch to Ultra Low Sulphur Petrol during this period has helped progress towards environmental goals.

4. In the month before the Budget oil prices fluctuated within a range of $24 to $33 a barrel.  The price per barrel has remained more stable in the range $25 to $29 in the past month.

The press release issued by HM Treasury on 5 November 2003.

Following the statement of 24 October by the Office for National Statistics, the Treasury confirms that the premature publication by Reuters of the September retail sales figures arose because the information was obtained improperly by a Reuters trainee journalist from a junior Treasury official, without the knowledge of that official.

Reuters accepts that information improperly obtained should not have been published and have apologised for doing so.  For its part, the Treasury views this incident extremely seriously and is rigorously examining all its procedures to ensure that any repetition is avoided.  The Treasury’s Permanent Secretary has emphasised this point in discussions and correspondence with the National Statistician.

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

Professor Sir Andrew Likierman, Head of the Government Accountancy Service and Managing Director of the Treasury Financial Management, Reporting and Audit Directorate, will retire in the New Year after ten years in post.

Paying tribute to Sir Andrew, Chancellor Gordon Brown said:

“Andrew Likierman has made an outstanding contribution to improving financial management in Government over the course of a decade.”

Announcing Sir Andrew’s retirement, Treasury Permanent Secretary Gus O’Donnell said:

“Sir Andrew Likierman has been an outstanding public servant and a wonderful colleague.

“He has led successfully the development and implementation of the best practice accounting standards in Government through the resource accounting and budgeting project. This marked the most extensive modernisation of the public finances in more than a century.

“The improvement in financial management within Government over the last decade is due in no small part to Sir Andrew’s drive and determination. I wish him every success as he pursues his distinguished academic career in the future.”

Sir Andrew’s successor will be selected by open competition. Details of the vacancy for the renamed post of Head Of Financial Management In Government are currently being advertised.

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

New measures enabling local authorities to promote economic development, create jobs and support business were set out by the Treasury today.

Economic Secretary to the Treasury John Healey and Chief Economic Adviser Ed Balls set out the new measures designed to extend the role of local government in economic development and give local authorities greater incentives to promote enterprise at the opening of the Local Government Associations’ 2003 Annual Economic Regeneration Conference in Manchester.

Following an overwhelmingly positive response to an earlier consultation, John Healey and Ed Balls said that the Treasury will be announcing plans to proceed with the Local Authority Business Growth scheme in the Pre-Budget Report on 10 December with a view to publishing the full details in Budget 2004 and introducing the scheme in 2005.

The scheme, which could mean an additional £1 billion for local authorities across the country, including a possible £130m for the North West alone, will allow local authorities to retain a proportion of the growth in business rate income to spend on local priorities.  By giving local authorities a direct financial incentive in business creation the aim is to encourage them to work more closely with businesses and other partners, including the Regional Development Agencies, to boost business growth.

Speaking at the Local Government Association’s annual conference on economic regeneration John Healey said:

“Local authorities have a crucial role to play in our society, acting as community leaders, delivering services, and working with partners to promote economic development at the local level.  The Government is committed to doing more to give local authorities the resources and freedoms they need to tackle barriers to enterprise, employment and growth.  Here in Manchester, the City Council has shown the way, successfully reversing population decline in the city centre and strengthening the economic and social fabric of the city.  The Local Authority Business Growth scheme will ensure that in the future success in this role is recognised and rewarded. ”

Ed Balls added:

“Local authorities across the country stand to gain up to £1bn from Local Authority Growth Incentives which will provide a powerful incentive for authorities to promote local enterprise and growth. Councils here in the North West alone could gain £130 million, and Manchester itself could get an extra £25 million over three years. The response to the consultation has been excellent and has shown that both local authorities and businesses would welcome the additional resources and the freedom to spend them on local priorities. Here in Manchester, the Local Authority Business Growth scheme could mean an additional £25m over three years.”

A new Government prospectus on Enterprise Areas – the 2,000 most deprived areas in the UK – was also published today.  The prospectus highlights the toolkit of policy measures available to promote regeneration in the UK’s most deprived communities, including stamp duty exemptions on local property transactions and Community Investment Tax Relief to improve access to small business finance.  The Government is asking for feedback from those communities on how this toolkit can be further developed.

The Pre-Budget Report will also consider what more can be done to promote enterprise in these areas, including measures aimed at streamlining the planning process and encouraging the release of derelict land for the creation of new businesses.