The press release issued by HM Treasury on 12 June 1997.

Geoffrey Robinson, Paymaster General, today took the first step in creating a Treasury Enterprise and Growth Unit by  announcing the appointment of Harry Bush, a senior Treasury official, to head the team which will be working with the Paymaster and business on the development of policies to help promote growth and innovation.

Notes to Editors

1.   Increasing the sustainable rate of long-term growth is central to the Government`s economic policy.

2.   In his speech to the CBI the Chancellor announced that the Paymaster General will head a new Enterprise and Growth Unit within the Treasury.

3.   Growth is already a central part of the work of a number of  Treasury teams.  The  new Enterprise and Growth Unit will complement this and ensure that the whole Treasury puts promoting growth at the top of its agenda.  A biography of Mr Bush is
attached.

Biography

Harry Bush, age 43, was educated at Quintin Kynaston School (north London) and Merton and Nuffield Colleges (Oxford).  He joined the Treasury in 1979.  Since then he has worked in a number of areas including export credit policy, press office, defence expenditure control and nationalised industries.  Most recently he has been working with other departments, industries, the City and overseas governments on privatisation issues.  Mr Bush will be taking up his new post immediately on promotion to Deputy Director (Grade 3).

The press release issued by HM Treasury on 5 June 1997.

Chancellor Gordon Brown, Chair of the Welfare to Work Committee, today appointed Sir Peter Davis to Chair the Advisory Task Force on the New Deal for Young People and the Long-Term Unemployed.  Sir Peter is Group Chief Executive of the Prudential and Chairman of Business in the Community.

The Task Force will be a powerful tool in helping to deliver the Government`s commitment to help 250,000 young unemployed people move from welfare to work and to provide new opportunities to the long-term unemployed.

Making the announcement Mr Brown said:

“This government is determined not to continue down the road of a permanent have-not class, unemployed and disaffected from society.  Our Welfare to Work
programme, funded from the proceeds of the Windfall Levy, will break this cycle of despair and give hope and opportunity to a whole section of our society. The best form of welfare for people of working age is work.

“For the programme to be a success, it is vital that there is an enthusiastic response from employers and the voluntary sector.  Sir Peter, who was knighted
this year for services to training and industry, has the perfect blend of experience and skills to turn our ambitious plans into reality.  He and his Task Force will be bringing his considerable energy and business skills to bear on this priority task.  Sir Peter will get British business working to get the British back to work.”

Looking forward to his challenge, Sir Peter said:

“My work with both the Basic Skills Agency and Business in the Community has demonstrated to me the vital importance of getting unemployed people into work or proper training schemes.

“I was pleased to accept this position but in order to make time available, I am giving up certain outside commitments.  I have therefore today told David Blunkett that I must stand down after eight years as Chairman of the Basic Skills Agency.”

The press release issued by HM Treasury on 5 June 1997.

A call to city business to second their brightest staff to the proposed new Securities and Investment Board was issued today by Helen Liddell, Economic Secretary.

Speaking at the Institute of Economic Affairs seminar, Mrs Liddell said that secondments of this sort were routine in the US and they must start to happen here.

Mrs Liddell said:

“Who can you second to this new purposeful regulator? It will need people who are knowledgable and streetwise. This will be no soft option. SIB can use your smartest and strongest.

“Men and women of this calibre face a challenging environment with a unique opportunity to help shape the nature of regulation in the future. And when they return to you, … what a powerful resource you will have to help build your own business.”

The Minister went on to set out the broad framework for reform of financial services regulation and how she wanted to see the City of London being a centre of excellence in this area. She said:

“The UK financial services industry needs a regulator which is a world leader. We must seize the opportunity now to develop a modern regulatory structure to see us through well into the next century.

“The enhanced SIB … will be a pace setting, world leading regulator, overseeing and helping generate an environment where business prospers and is able to compete at home and overseas, meeting the challenges ahead is essential for a world beating industry.”

Mrs Liddell emphasised the Government’s commitment to openness and called on businesses to put forward their views in the future structure of regulation.

The Minister said:

“We recognise that we need to take the advice of those who do know how the industry works. If the industry ignores this opportunity to help shape the new regulatory regime, then they will have no one else to blame but themselves.

“Together we have the opportunity to put in place the sort of regulation that will meet the industry and consumers’ needs. We have flagged up our intention now in order to take people with us. We are not in the business of developing an overbearing bureaucracy. What we want is a regulator that is appropriate, responsive and flexible, a regulator that recognises the varying levels of sophistication of the investing community”

The press release issued by HM Treasury on 4 June 1997.

CHANCELLOR LAUNCHES UK ACTION PLAN TO CREATE LASTING JOBS IN EUROPE

A new UK initiative to cut unemployment across Europe was launched today by Chancellor Gordon Brown.  Mr Brown has sent his proposed Action Plan to his Finance Minister colleagues in the EU.  He will raise it at the Economic and Finance Council in Luxembourg on Monday.

Mr Brown commented: “Europe needs to create real and lasting jobs for all of its people.  We must act now to complete the single market and ensure that for those countries that join, EMU works on the basis of sustainable convergence.

“As I said last week in describing the G8 jobs initiative, employability is the key to a cohesive  society which offers opportunity to all its citizens.  Better education and higher skills, combined with reduced burdens on business, are the way to guarantee the high and stable levels of growth and employment which are the core goals of our economic policy.

“This is the new economic agenda.  It enables us to benefit from flexible labour markets, while ensuring that everyone can share in the rewards of a more dynamic economy.

“We intend to make this a key theme of our Presidency of the G8 and of the European Union.

“This approach is just as essential in Europe.  Something must be done urgently to increase the job creating potential of the European Union’s economies.  A new focus on creating lasting jobs is needed.  We need to increase the flexibility of Europe’s work force, look at how to combine an efficient welfare state with a dynamic job creating economy and remove the bureaucratic barriers keeping people from jobs.

“My action plan for Europe involves the ECOFIN Council focusing on how to use best practice to cut unemployment across the community; seeks to extend and complete the single market so that its job creating force can be renewed, and focuses on how the small business sector can create more jobs in the context of the single market and EMU.

“I intend to discuss these priorities with my ECOFIN colleagues in Luxembourg on Monday.

“These are practical proposals.  We will be looking for concrete results by the end of the British Presidency of the European Union in a year’s time.”

The historic press release issued by HM Treasury on 31 July 1997.

Key measures to improve the long-term performance of the UK economy became law today as the Finance (No2) Act 1997 received Royal Assent, reflecting the Government’s pledge to put its Manifesto promises into action.

Commenting on the completion of the legislation required to implement the Summer Budget’s measures, Financial Secretary Dawn Primarolo said:

” We said we would introduce measures for long-term stability – and we have, with a 5 year deficit reduction plan.

We said we would introduce measures to encourage investment – and we have.

We said we would introduce a windfall tax to fund a comprehensive scheme to get people off welfare and into work – and we have.

We said we would reduce VAT on fuel to 5% – and we have.

And we have done so much more, including providing extra money for our priority areas of schools and the health service.

This is a Government which keeps its promises. We are determined to equip the country properly for the future by putting in place the long-term framework for stability, investment and employment that it needs.”

NOTES TO EDITORS

The Summer Budget was on the 2 July 1997. The Finance Bill was published in draft on Friday 4 July. The Finance Bill was published on Tuesday 8 July. 2nd Reading of the Bill was on Thursday 10 July. Committee of the Whole House took place on 15-16 July. Standing Committee was from 17-23 July in 9 sittings.Report stage and Third Reading was on 28-29 July. The Bill went to the Lords on 31 July and was also enacted on that day.

The press release issued by HM Treasury on 31 July 1997.

A blueprint for the new single financial regulator, submitted by the Securities and Investment Board (SIB), was welcomed today by the Chancellor Gordon Brown.

Writing to Sir Andrew Large, the outgoing Chairman of the SIB, the Chancellor said:

“I have been especially impressed by the positive contribution which has been made by all the regulatory bodies. This spirit of co-operation and common purpose will stand us in excellent stead as the plans for the single regulator are implemented.”

The Chancellor said that the plan set out a sound basis for implementation by the new Chairman, Howard Davies. He also underlined the importance of maintaining the regulatory standards during the transition to the new arrangements.

In the letter he also took the opportunity to thank Sir Andrew Large for his five years of service as the Chairman of the SIB. The Chancellor said that, since the announcement on 20 May of the creation of the SIB, enormous progress had already been made.

The Chancellor reiterated his aim of publishing a draft financial services bill for consultation next Summer.

The press release issued by HM Treasury on 31 July 1997.

Paymaster General Geoffrey Robinson today announced that negotiations with Exchequer Partnership plc over the refurbishment of the Treasury building have been terminated. Following a review of options, Ministers will now decide what work on the building is needed and how it should be taken forward.

In a written answer to a Parliamentary Question by Stephen Timms MP (East Ham), Mr Robinson said:

“At a time when all Departments are undertaking comprehensive spending reviews and are subject to extremely tight expenditure controls, my Rt Hon Friend the Chancellor of the Exchequer was unwilling to embark on a major construction project of this scale, which would have involved substantial expenditure and significant financial risks for the other Government occupants of the building in terms of the disposal of property elsewhere.  The plans to refurbish the main Treasury building under the Private Finance Initiative represented good value for money in their own terms, but Ministers judged they had to have regard for wider considerations.

“My Rt Hon Friend the Chancellor has therefore decided to terminate negotiations with our private sector partner, Exchequer Partnership plc”.

The press release issued by HM Treasury on 28 July 1997.

Paymaster General Geoffrey Robinson today welcomed a new Step-by-Step Guide to PFI.  The guidance is the first to be published since the recent review of the Private Finance Initiative by Malcolm Bates and a swift response to his recommendation that such a guide needed early publication.

Mr Robinson said;

“The hardest part of any project is knowing where to start.  For anyone from the public or private sector setting out on a PFI project, this guide provides answers to the basic questions.  It will save time and effort by helping make sure that projects are properly thought out from the start.

“The guide will prove to be a useful tool.  It describes each stage of the process, indicates what appraisal needs to be done and what decisions need to be taken.  A sound project requires a robust business analysis.  The business case will develop with the project but to smooth out and speed up the process it is important to know what to do at each stage.

“With the review,  we laid the foundations on which the public and private sectors can build long-term relationships. The publication of this guide is evidence of our commitment to seeing the recommendations through and build value for money partnerships with the private sector which will benefit us all.”

The press release issued by HM Treasury on 24 July 1997.

ALISTAIR DARLING DETAILS COMPREHENSIVE SPENDING REVIEW

The terms of reference for the departmental and cross departmental reviews that comprise  the Comprehensive Spending Review have been announced today by the Chief Secretary, Alistair Darling, in answer to a Parliamentary Question.  The terms of reference of the individual reviews have been placed in the Library of the House of Commons.  Copies are available from individual departments.  The terms of reference for the strategic defence review, which will be the Ministry of Defence’s contribution to the Review, have already been announced to Parliament.

Mr Darling commented that:

“The Comprehensive Spending Review aims to allow the Government to bring public spending  programmes into line with its priorities and objectives.  It will be truly comprehensive, embracing all items of public expenditure. It will also be focussed on the long term, looking at the shape of public spending to the end of the century and beyond.

Ministers have agreed that they will examine each and every item in his or her department, to consider whether it meets the public interest, whether it contributes to the achievement of the Government’s objectives, whether it is the most effective way of achieving those objectives, and whether there is scope for improving efficiency and effectiveness. This will include a thorough look at whether the best use is being made of public assets, with a view to disposing of those which are surplus and which could be used more productively elsewhere and making more use of public/private partnerships.

The Review will be thorough.  As well as looking at departments’ spending it will also address issues that stretch across departmental boundaries.  There will be several self-standing cross departmental reviews, including reviews of the criminal justice system, the local government finance system, the countryside and rural policy and housing.  In addition, each department will examine jointly with other departments those areas where important issues cut across departmental boundaries, such as aid and trade provision, science and simplifying government.

This will be a far-reaching look at what the Government spends peoples money on.  It will ensure that public spending promotes opportunity and employment, investment and fairness. Its conclusions will be the basis for spending plans for the future that  reflect our priorities and meet the country’s needs.”

The press release issued by HM Treasury on 24 July 1997.

“In or out, British businesses will be affected”

The single currency will have far-reaching effects whether or not the United Kingdom joins and Chancellor Gordon Brown today urged businesses in towns and cities across the country to examine how, in or out, a single currency will affect them.
Publishing a new Treasury guide – “EMU, Practical Information for Business” – the Chancellor also announced he was setting up an advisory group of private sector representatives to provide a two-way exchange between Government and business about the practical effects of Economic and Monetary Union (EMU).

Urging local businesses to get informed by picking up a free copy of the new guide from local outlets, Mr Brown said:

“Local businesses in towns and cities all over Britain need to realise that the single currency is not something that will affect only big business or high-flying London financiers.  Whether or not the United Kingdom joins, it will affect us all. This new Treasury booklet is the first step in telling local businesses how it will affect them.

“It describes what the single currency will mean for financial systems and accounts, computer systems and cash-handling procedures and warns businesses to think about the effects of the single currency on their strategies for pricing, marketing, relations with other firms and raising finance.

“Many businesses, including small and medium-sized companies and retailers, will need to think about these issues so we are making free copies of the booklet easily available over the summer to businesses locally through trade associations, government offices and libraries.  The booklet is exactly the sort of thing that businesses have been asking for and will be followed by detailed factsheets on specific issues.

“I have also written to the heads of about twenty organisations representing different sectors of the economy. They will be asked to nominate an individual to join an advisory group to discuss the practical implications of the single currency.

“The group will allow the Government to provide information to businesses more easily and for businesses to tell the Government how they would like to see practical issues handled.  It will help the Government represent British business interests more effectively in negotiations with other countries about technical aspects of the single currency.

“The Government`s position on EMU has not changed.  While nothing has been ruled out, there are formidable obstacles to the United Kingdom joining on 1 January 1999.  Our aim is to help British companies make the most of opportunities in Europe.  This means being ready for the single currency whether or not we join.  That is what the new guide, the factsheets and the advisory group will be helping them do”.