Tag: Press Release

The press release issued by HM Treasury on 3 March 2000.

“The performance of the UK economy continues to be impressive” and macroeconomic prospects “remain good” according to the latest assessment by experts from the International Monetary Fund.

At a discussion in Washington on 1 March, the IMF’s Board of Directors concluded that the Government was on course to deliver its central economic objective of high and stable levels of growth and employment. The IMF assessment says that “real growth has been strong…and both unemployment and inflation have declined steadily”.

The Directors’ assessment was that “the authorities’ policy frameworks and their track record of skilful policy management would be conducive to a continuation of sustained growth and low inflation”

Commenting on the IMF’s report, the Chancellor, Gordon Brown, said:

“I welcome the IMF’s report on the UK economy. It clearly supports the Government’s new framework for economic policy, and our prudent and cautious approach to managing the public finances, and the efforts we are making to promote enterprise and fairness in this country.”

The UK has been championing transparency and openness in the IMF’s scrutiny of countries’ economic policies and performance. This transparency is a key element in avoiding future international crises. Today’s publication marks a further step forward by the UK. We are publishing for the first time the IMF’s report on the UK in full, along with the record of the IMF Board discussion of the report, and the UK’s statement in response to the report. The Chancellor welcomed these new publications, saying;

“The publication of the IMF’s report on the UK economy clearly demonstrates our commitment to open up the IMF’s scrutiny process. Today marks an important step forward by the UK in economic policy making, by making available clear independent information on policy that is an essential part of the new international financial architecture.”

Other points the IMF Directors have made include:

• praise for the “effectiveness of the inflation targeting framework in the United Kingdom”, and in particular “the forward-looking, transparent and pre-emptive approach.” They added that “the transparency of the UK monetary framework is already among the highest internationally”.
• a welcome for “the efficiency gains and improved public resource allocation arising from the strengthened fiscal framework”.
• They “praised the authorities for focussing long term policies toward achieving greater equity and strengthening productivity.”
• praise for the Government’s policies to move people off welfare and into work, and to make work pay. They note the Government’s welfare and labour market reforms “were aimed at strengthening incentives to work, particularly among jobless households.”

The press release issued by HM Treasury on 6 March 2000.

Proposals to revolutionise Government services for small business through use of the Internet were set out today by the Chancellor Gordon Brown.

The Chancellor was in Sunderland talking to local business people on the second leg of his Pre-Budget tour. He was accompanied by David Irwin, Head of the Small Business Service, in his first day in post and Lord Trotman, the former Chairman and Chief Executive of the Ford Motor Company, who has been reviewing the small business measures already introduced.

The Chancellor said that he was determined that:

“Britain will lead in the next stage of the Internet revolution. Our target is that within three years we want to become the world’s best environment for electronic commerce.”

As a pledge to delivering these aims the Chancellor has already allocated £10 million to the Small Business Service from the Invest to Save Budget to develop a user-friendly electronic gateway between business and government.

To further help small business, the Chancellor said he was considering two bids for funds from the Capital Modernisation Fund. These projects are:

• for the Small Business Service to provide information and advice via the Internet and through a call centre. It will create a cutting edge service to business through link-ups the speed of service; and
• for the Inland Revenue/Customs & Excise to create the ‘e-tax adviser.’ An electronic gateway would allow businesses to register as a company with Inland Revenue and Customs and Excise and register for VAT. It will be easier for business to find and follow regulations, provide a two-way service so business can access data as well as submitting forms and the service will be available anytime and anywhere.

The Treasury is now working with these Departments on the details of their bids to ensure the most effective service will be provided to small businesses.

The press release issued by HM Treasury on 9 March 2000.

New measures to help people move from the hidden economy into legitimate work – and tough new powers to detect and punish offenders who refuse to do so – are the main recommendations of Lord Grabiner QC’s report on the informal economy published today.

The report suggests that every year billions of pounds have been lost to the informal economy. The report estimates that 120,000 are working while ‘signing on’ at a cost of nearly half a billion pounds to the taxpayer.

Chancellor Gordon Brown welcomed the report saying:

“Lord Grabiner’s report suggests that for years billions of pounds have been lost to the informal economy every year, leaving honest, hard working taxpayers, who play by the rules, footing the bill for those who either don’t pay the taxes they owe or claim benefit while they are working.

“His clear and comprehensive strategy, based on opportunities tied to new obligations is designed to tackle the informal economy with a package of new rights and new responsibilities. It proposes incentives to encourage people into legitimate work – and tough new penalties for those who fail to do so and continue to defraud the rest of us.

“The government is delivering more opportunities than ever before to work. Vacancies are at record levels and step by step we are removing the barriers to employment. But just as there are more opportunities, so too we believe new obligations.

“Defrauding the benefit system, means defrauding the poor and preventing us getting the resources to those in need. We would be failing in our obligation to those who need the benefits system if we allowed people to defraud it.

“I welcome Lord Grabiner’s report and in the Budget will announce in detail how we will implement his recommendations.”

The report, “The Informal Economy”, proposes new measures to tackle the hidden economy whilst at the same time making clear that some people get trapped in the informal economy because they are not aware of the legitimate opportunities that are available.

Lord Grabiner concludes that the Government should introduce new ways to tackle for those who persist in the hidden economy: including:

• new legislation to introduce a new statutory offence of fraudulently evading income tax, to be tried in the magistrates’ court;
• subjecting people, suspected of working while signing on, to additional requirements by requiring them to sign on more frequently and at unpredictable times;
• as in the USA, a ‘two strikes and you are out’ approach – for the first time, removing people’s right to claim benefit for a specified time if they have been convicted twice; and
• giving investigators the power to trace suspects by making routine ‘reverse searches’ of the telephone directory.

Among his other 17 recommendations, Lord Grabiner proposes incentives to encourage people into legitimate work including recommendations to:

•  set up an anonymous, confidential telephone line to advise those in the hidden economy about how they can put their affairs in order, and how the tax and benefit rules apply to them;
• build on the help that is given to people who start out in self-employment and extend recent changes to make it easier for people claiming means-tested benefits to leave benefit and take up legitimate jobs; and
• launch a new advertising drive to publicise the incentives available for people to join the legitimate economy, including the Working Families Tax Credit, and the punishment they will face if they stay in the informal economy.

The press release issued by HM Treasury on 8 March 2000.

Financial Secretary to the Treasury Stephen Timms today opened Westminster’s first annual ethnic minority business exhibition.

Mr Timms was visiting the Exhibition in London as part of pre-budget tour being carried out by Gordon Brown and his Treasury Ministers to take advice on the shape of the Government’s employment and enterprise initiatives for the years to come.

Speaking at the Exhibition Mr Timms said:

“We want to see not only the work ethic reinvigorated in every community of Britain but a dynamic business culture which encourages enterprise open to all. That is the message we want to spread – enterprise expanded to people and places too often forgotten in the past.

“We know that more than one third of all unemployed people in London come from ethnic minorities. But we also know ethnic minority businesses already play a leading role in everyday business life across the country. Businesses from the ethnic minority communities contribute well over £8 billion each and every year to the British economy.

“I have seen in other parts of London and across the country during my regional tours the contribution ethnic minority businesses are making. We know, for example, that the rate of business start-ups per head is higher in the ethnic minority communities than in the wider community. With more people in work today then ever before we now have a great opportunity to make sure the benefits of enterprise and rising prosperity and spread wider. That’s why this business exhibition is so important for Westminster.”

The press release issued by HM Treasury on 15 March 2000.

A new Treasury paper published today by Chief Secretary Andrew Smith projects a £20 billion expansion of the Government’s Public Private Partnership (PPP) programme over the next three years.

Mr Smith was launching “Public Private Partnerships : The Government’s Approach” – the Government’s strategy to increase investment in the public sector to provide better services and better value for money – during a visit to Lewisham Docklands Light Railway station in South East London.

The paper sets out how the Government plans an expanded PPP programme which will add to the £12 billion deals already signed or re-structured deals by this Government, by securing:

£8 billion to modernise the tube;
an estimated £1 billion to modernise UK’s Air traffic control infrastructure;
more than 60 new education projects nationally;
25 new health projects nationally; and
12 other new transport projects nationally;

The document “Public Private Partnerships : The Government’s Approach” also sets out for the first time the Government’s objectives for PPPs and the underlying principles which are central to the way in which Government goes about developing new partnerships with the private sector.

It shows how the Government has modernised the PPP system by eliminating the obstacles it inherited to deliver an expanded programme, better value for money for the taxpayer and a better deal for staff in the public sector.

Mr Smith said that this capital investment would focus on the Government’s priority areas of health, education and transport and hailed it as a cornerstone of the Government’s modernisation programme.

He said:

“Public private partnerships are making a major contribution to the renewal and modernisation of Britain’s public services with better schools and hospitals, and huge investment in public transport.

“Between 1992 and 1997 no PFI hospital deals were signed. Yet in this Government’s first two years we have signed 35 major hospital projects and, including deals in the pipeline there are a total of 100 health projects in the programme. This represents the largest investment in new hospital facilities since the NHS was established.

“On average, privately financed projects are delivering savings of 17 per cent compared to public sector alternatives – this represents savings of £2 billion on a £12 billion programme.

“That is why we want to build on our achievements to date. Over the next three years we expect to sign contracts for projects with an estimated capital value of a further £20 billion. That will bring to £32 billion the level of capital investment this Government has earmarked for PPPs since May 1997.

“In launching this document today I am looking to the future and outlining a prospectus for partnerships. This will be seen as a blueprint to the opportunities and challenges associated with different types of partnership arrangements. Above all it demonstrates how PPPs will deliver real improvements to public services, for the benefit of customers, local communities and the country as a whole.”

Deputy Prime Minister John Prescott said :

“PPPs can harness the best of the private and the public sectors to modernise Britain – and ensure real improvements to our public services and infrastructure. This has been clear to me for many years.

“With PPPs, we can build new hospitals and new schools and improve our transport system, ensuring the private sector achieves best value for the taxpayer. At the same time, they can safeguard the public interest and protect staff – providing better quality services and giving modern Britain the infrastructure it needs.”

Public private partnerships help deliver the quality public services. By harnessing the disciplines, incentives, skills and expertise which private sector firms have developed in the course of their normal everyday business, they allow Government to deliver more services, to a higher standard, and more quickly than would be possible with the public sector alone.

The press release issued by HM Treasury on 28 March 2000.

A platform for spreading best practice amongst Public Private Partnership (PPP) practitioners involved in drawing up IT contracts was announced today by Chief Secretary Andrew Smith and Cabinet Office Minister Ian McCartney.

This platform takes the form of new guidance for IT PPP deals which builds on the development and success of previous Treasury Taskforce standard contract guidance across all public services. The guidance is expected to further improve deal flow, reduce the costs of tendering and avoid the pitfalls of the past when poorly drafted contracts led to the demise of some IT projects. The guidance sets out recommendations not only for contract drafting, but also for improving the project management of IT PPP deals.

Launching the guidance, Andrew Smith said:

“This is an important step forward in ensuring that project and risk management for IT contracts is undertaken rigorously. The document emphasises the need for strong risk handling strategies and formalises the pre-contract risk review process which has been carried out to date by the Treasury Taskforce on significant projects.

“I expect the adoption of the standard approach set out in the guidance to produce substantial savings and result in greater value for money for the public sector.”

The publication of this specific guidance document for the IT Public Private Partnership sector is just one of the initiatives that the Government is currently undertaking to improve the strength of Government IT projects generally.

Ian McCartney, Minister of State at the Cabinet Office who is sponsor for the Government’s current review of the handling of major IT projects, said of the guidance:

“This Government is determined that our IT systems deliver first-class services and good value for money. Suppliers share responsibility for ensuring that projects deliver the promised service benefits and come in on time. A successful procurement process is fundamental to the success of these complex but vital projects. The guidance we are announcing today is just one part of a comprehensive package of measures to ensure that we implement systems successfully and maximise the benefits of IT to the public.”

The Taskforce IT guidance has also received the full backing of the National Audit Office (NAO), the Government spending watchdog. Assistant Auditor General, Jeremy Colman, of the National Audit Office, said:

“The new guidance perceptively reflects the key lessons learned from the first generation of PFI projects in the IT sector, many of which have been identified in our own reports. The onus is now on government departments and the IT industry to implement the guidance and improve the prospects of delivering projects to time, cost and functionality.”

The guidance sets out how to manage the procurement and contract stages of IT deals and gives advice on the handling of risk. The guidance also gives recommendations for approaching major software developments. It has been prepared after an extensive consultation process with public and private sector managers of IT projects, as well as financiers.

It is expected that the publication of the guidance will encourage more financiers to support IT PPP deals, as the document provides answers to some of the bankability problems posed to date in this sector.

The press release issued by HM Treasury on 30 March 2000.

A new shareholder panel of private sector managers and analysts, and the appointment of two new non-executive directors will bring greater private sector expertise into the running of the Royal Mint, Economic Secretary, Melanie Johnson, said today.

Welcoming the announcement, Miss Johnson said:

“These appointments are a key element in our programme of reform for the Royal Mint.

“The new shareholder panel will inject greater private sector expertise into the Mint and provide a more rigorous shareholder discipline. The appointment of two new non-executive directors will enhance the commercial expertise on the Mint’s Board.

“I am delighted to announce that John Dean, Hugh Beevor and Stephen Dawson have all agreed to become members of the new Royal Mint shareholder panel, and that Jan Smith and David Stark have agreed to become Royal Mint non-executive directors.

“We are very fortunate that five such high quality individuals have agreed to work with us in taking forward our programme of reform at the Royal Mint.

“The shareholder panel is an important innovation in the Government’s approach to managing public sector assets. We will be reviewing its operation after two years in part to see what lessons can be learned for other bodies in the public sector.”

Shareholder Panel

John Dean of Warburg Dillon Read – an investment analyst experienced in the smaller engineering companies sector. He was again ranked first in the 1999 Reuters survey of UK smaller engineering companies analysts. As part of his experience in the City, Mr Dean has considerable regional experience having worked as an engineering firms analyst in the traditional manufacturing areas of the North East and the West Midlands.

Hugh Beevor, formerly of Blue Circle Industries PLC has extensive experience of managing the relationship between a parent company and its subsidiaries. He was a main board director at Blue Circle with responsibility for 12 building materials companies. He is currently a governor of the Institute of Development Studies.

Stephen Dawson of ECI Ventures Ltd is managing director of a successful venture capital company, with over 20 years experience of investing in growth companies and turnarounds.

Non-Executive Directors

Jan Smith, formerly of the RAC, First Direct and Mazda Cars (UK) Ltd, now with her own consultancy has extensive business experience and a particular expertise in marketing. Her track record includes responsibility for the marketing launch of First Direct and the rebranding of the RAC where she was a member of the executive operating committee.

David Stark – formerly of Tomkins PLC and now of Chairman of Glentay Ltd served on the Board of Tomkins for 11 years. He is a qualified engineer and at Tomkins was responsible for 29 of the group’s companies, including all their European engineering companies and associated worldwide distribution companies. He is a member of the Competition Commission.

The press release issued by HM Treasury on 4 April 2000.

Proposals to ensure that progress is made in getting debt relief to the world’s poorest countries were outlined today by the Chancellor Gordon Brown and International Development Secretary Clare Short.

At a seminar at Downing Street this morning, UK Ministers told representatives of NGOs and religious faiths that they had written to the International Monetary Fund (IMF) and the World Bank suggesting that a Heavily Indebted Poor Countries – HIPC Review and Implementation Group is established.

It is proposed that the Group be a joint World Bank/IMF body that provides co- ordinated focus to the initiative, ensures HIPC is implemented consistently, identifies and deals with any reasons for delay and provides a single point of contact for shareholders, aid donors and NGOs.

The Chancellor said:

“We want to see faster progress on getting debt relief to the poorest countries. We place great emphasis on countries coming forward at the earliest possible opportunity to receive interim debt relief because this is the money they need to spend on improving primary health care, providing primary education and basic sanitation.

“We believe that the speedy, effective implementation of HIPC will be an acid test of the international financial institutions’ ability to help the poorest countries.”

Clare Short said:

“The agreement that debt relief and IMF programmes were focused on poverty was an enormous gain. We must find a way to ensure that this is driven forward.”

The press release issued by HM Treasury on 20 April 2000.

Lord Colin Sharman has been appointed to lead a review into the arrangements for audit and accountability for central government, Chief Secretary to the Treasury Andrew Smith MP, announced today.

The review will cover the modernising Government agenda, audit/valuation of performance measures, the implications of devolution, the wider European context, with particular reference to European Directives affecting audit arrangements, possible models from other countries, and the relationship with other audit and regulatory bodies.

Andrew Smith confirmed the appointment in response to a written Parliamentary Question from Barbara Follett MP today. Commenting he said:

“I am pleased to confirm therefore that Lord Sharman, a former senior partner at KPMG International, has been appointed to lead the review.

“This is a great opportunity for Parliament and Government to work together to make sure transparency and accountability go hand in hand with the modernising Government agenda.

“I look forward to seeing the results of the review later this year.”

The press release issued by HM Treasury on 27 April 2000.

Work on the design of the new working age agency is to be led by Richard Lapthorne, the chairman of Nycomed Amersham and former vice chairman of British Aerospace, the Government announced today.

The new agency, which will draw together the Employment Service and the parts of the Benefits Agency which support people of working age, will deliver a single, integrated service to benefit claimants of working age and to employers. It will be established as soon as possible in 2001.

Chief Secretary to the Treasury, Andrew Smith said:

“I am delighted that Richard will lead this work. His track record of managing complex organisational change in the private sector will be invaluable in getting the agency off to a good start.”

Secretary of State for Education and Employment, David Blunkett said:

“I welcome the appointment of Richard Lapthorne. He will be a key player in the success of the new agency and in ensuring that it has a clear work focus, both helping people to find jobs and in providing a responsive service to employers.”

Secretary of State for Social Security, Alistair Darling said:

“We’re building a brand new agency that will be more than the sum parts of the benefits Agency and the Employment Service. It will draw on the best experience of both the public and private sectors to provide a far more focussed service to its customers.”

Richard Lapthorne will head the project team which will design and develop the agency. Based in the Treasury, the team will include civil servants from the Department of Social Security and the Department for Education and Employment.

Its work will be overseen by a project board which will include Andrew Smith, the Chief Secretary to the Treasury, David Blunkett, Secretary of State for Education and Employment and Alistair Darling, Secretary of State for Social Security.

The Chief Executive of the new agency will be recruited by open competition later in this year.