Tag: Treasury

The press release issued by HM Treasury on 30 September 2024.

Government sends remit letters to independent Pay Review Bodies, launching 2025/26 pay award process.

In writing to the independent Pay Award Bodies, the Government has today formally launched the 25/26 pay process for the Armed Forces, NHS workers, teachers, police officers, prison service staff, the NCA and senior public sector staff.

These bodies, made up of experts from across these areas, will now go on to collect evidence to inform their independent pay award recommendations. These will then be submitted for the Government to formally respond to.

By bringing forward the pay round this year, the Government plans to fully reset the timeline by the 2026/27 round.

The Government has now sent remit letters to the below independent Pay Review Bodies, which is the standard method for launching the 2025/26 pay award process:

Armed Forces’ Pay Review Body (AFPRB)
National Crime Agency Remuneration Review Body (NCARRB)
NHS Pay Review Body (NHSPRB)
Police Remuneration Review Body (PRRB)
Prison Service Pay Review Body (PSPRB)
Review Body on Doctors’ and Dentists’ Remuneration (DDRB)
Review Body on Senior Salaries (SSRB)
School Teachers’ Review Body (STRB)

The press release issued by HM Treasury on 30 September 2024.

HM Treasury has announced today that Nina Hingorani-Crain has been reappointed as a Non-Executive Director to the Board of NS&I (National Savings and Investments), as of 1 November 2024. The reappointment will be for a term of three years.

Non-Executive Directors on NS&I’s Board ensure a sound strategy is in place to meet the organisation’s remit of raising cost-effective debt financing for the government. They also act as an external source of advice, have oversight of risk control, and ensure NS&I’s links with its outsourcing partners remain open and transparent.

NS&I is one of the largest savings organisations in the UK, offering a range of savings and investments. All products offer 100% capital security because NS&I is backed by HM Treasury.

Nina was first appointed as a Non-Executive Director in November 2021. She has held a number of high-profile executive and non-executive roles, including as Chief of Staff and Principal Private Secretary to the Chair of the Financial Services Authority (FSA) during the global financial crisis and as Chief of Staff leading the transition of the FSA into the Financial Conduct Authority, the current financial services regulator. She is currently on the Board of Nest (the workplace pension scheme set up by the UK government), a London mental health and community health NHS Foundation Trust, and the Institute of Chartered Accountants in England and Wales (ICAEW). She has previously served on the Board of the Charity Commission for England & Wales, and the Boards of several other national and regional organisations.

Further information:

The reappointment has been made in accordance with the Code of Practice published by the Commissioner for Public Appointments.

All appointments are made on merit and political activity plays no part in the selection process. However, in accordance with the original Nolan recommendations, there is a requirement for appointees’ political activity (if any declared) to be made public. Nina Hingorani-Crain has confirmed that she has not engaged in any political activity in the last five years.

The press release issued by HM Treasury on 27 September 2024.

OFSI announces monetary penalty for breaches of UK financial sanctions imposed on Russia linked to its illegal invasion of Ukraine.

The Office of Financial Sanctions Implementation (OFSI) has issued a monetary penalty to Integral Concierge Services (ICSL) for breaches of the financial sanctions regime imposed on Russia in response to its illegal invasion of Ukraine in 2022.

The monetary penalty relates to the property management service ICSL provided to a designated person subject to an asset freeze. Between 2022 and 2023, ICSL made or received 26 payments in connection with the services they were providing to the designated person, despite knowing or having reasonable cause to suspect these were in breach of financial sanctions in the UK.

As a result of these breaches, ICSL was given a penalty of £15,000. ICSL did not challenge the penalty and paid in full.

This penalty demonstrates OFSI’s clear commitment to pursuing financial sanctions breaches wherever they occur. From the largest institutions to the smallest, everyone has an obligation to comply with the UK’s financial sanctions regime. OFSI is prepared to utilise the full extent of its legislative powers to pursue those who commit serious breaches of financial sanctions.

This case was not reported to OFSI by the subject of the penalty, resulting instead from a proactive investigation.

FCDO Sanctions Minister Doughty said:

We are firmly committed to enforcing the UK’s financial sanctions regime. We promised this government would act – and we are putting those involved in breaches on notice. Let this be a strong warning to those who fail to comply.

The UK is continuously working to proactively identify breaches and strengthen our enforcement powers. We will continue to close loopholes, come down hard on sanctions evaders, and crack down on sanctions circumvention to ensure the effectiveness of sanctions against Putin’s Russia, and in the case of other sanctions regimes.

The monetary penalty highlights key lessons for industry, particularly firms involved in the property management sector. This case demonstrates the importance of understanding and taking appropriate action to address financial sanctions risks arising from your business model and client base, particularly if they present heightened sanctions risks. Firms should seek professional advice on their sanctions obligations wherever necessary.

Russia is desperate to get around our sanctions and we will not hesitate to take action against those involved in supplying and funding Putin’s war machine. The government is committed to significantly strengthening our sanctions enforcement, and will continue to prioritise sanctions enforcement at every turn. This includes both public actions, such as monetary penalties, and actions which are not made public, such as warning letters and referrals to regulators. Following the introduction of strict civil liability for financial sanctions breaches in June 2022, OFSI is now also able to take action regardless of whether a person knew or had reasonable cause to suspect they would be in breach.

The press release issued by HM Treasury on 24 September 2024.

Thousands of young people could have £2,200 sitting unclaimed in their Child Trust Fund account.

• Young people urged to claim their Child Trust Fund
• £2,200 on average waiting in unclaimed accounts

More than 670,000 18-22 year olds yet to claim their Child Trust Fund are reminded to cash in their stash as HM Revenue and Customs (HMRC) reveals the average savings pot is worth £2,212.

Child Trust Funds are long term, tax-free savings accounts which were set up, with the government depositing £250, for every child born between 1 September 2002 and 2 January 2011. Young people can take control of their Child Trust Fund at 16 and withdraw funds when they turn 18 and the account matures.

The savings are not held by government but are held in banks, building societies or other saving providers. The money stays in the account until it’s withdrawn or re-invested.

If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. If they do not know where their account is, they can use the online tool on GOV.UK to find out their Child Trust Fund provider. Young people will need their National Insurance number – which can be found easily using the HMRC app –  and their date of birth to access the information.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

Thousands of Child Trust Fund accounts are sitting unclaimed – we want to reunite young people with their money and we’re making the process as simple as possible.

You don’t need to pay anyone to find your Child Trust Fund for you, locate yours today by searching ‘find your Child Trust Fund’ on GOV.UK.

Third-party agents are advertising their services offering to search for Child Trust Funds and agents will always charge – with one charging up to £350 or 25% of the value of the savings account.

Using an agent can significantly reduce the amount received, is likely to take longer and customers still need to supply them with the same information they need to do the search themselves.

Gavin Oldham, The Share Foundation, said:

If you are 18-21 years old, the government would have put money aside for you shortly after birth. This investment would have grown quite a bit and it’s in your name. The Share Foundation has linked over 65,000 young people to their Child Trust Fund accounts. It’s easy and free to find out where your money is. Go to  findCTF.sharefound.org or GOV.UK to locate it today.

In the last year more than 450,000 customers, with just their National Insurance number and date of birth, used the free GOV.UK tool to locate their Child Trust Fund.

More information on Child Trust Funds and how to access your savings can be found on GOV.UK.

Further Information

Latest figures for Child Trust Funds included in the Annual Savings Statistics  were released on 19 September 2024 and include figures up to April 2024.

The Child Trust Fund scheme closed in January 2011 and was replaced with Junior Individual Savings Accounts (ISA).

If a parent or guardian was not able to set up an account for their child, the government opened a savings account on the child’s behalf.

The press release issued by HM Treasury on 23 September 2024.

The Chancellor has today unveiled a package of measures to deliver on the agenda of the new government.

The Chancellor has today unveiled a package of measures to deliver on the agenda of the new government including a breakfast club pilot for 750 schools with primary aged pupils, new powers for the Covid Corruption Commissioner, e-invoicing to support business and the next steps on the government’s industrial strategy.

School Breakfast Club Pilot

The Chancellor announced that up to 750 schools with primary aged pupils will be invited to take part in a £7 million breakfast club pilot. The funding will allow these schools to run free breakfast clubs for their pupils in the summer term (April-July 2025).

The Department for Education will work with the schools selected as part of the pilot to understand how breakfast clubs can be delivered to meet the needs of schools, parents and pupils when the programme is rolled out nationally.

This will help reduce the number of students at schools with primary aged pupils starting the school day hungry and ensure children come to school ready to learn. It will also support the government’s aim to tackle child poverty by addressing rising food insecurity among children.

Covid Corruption Commissioner

Reeves also announced a block on any Covid-era PPE contract being abandoned or waived until it has been assessed by the new Covid Corruption Commissioner, whom will be appointed in October.

The decision will affect £647 million of Covid PPE contracts where contract recovery was previously earmarked to be waived.

It follows action already in motion to cut government waste and curb unnecessary spending. In her statement to Parliament in July, the Chancellor pledged to halve government consultancy spend from 2025-26, with savings targets of £550 million this financial year and a further £680 million in the next already announced.

Excessive use of ministerial travel by aeroplane and helicopter is also being cutdown, with confirmation that a military contract for a helicopter also used for VIP trips, is not being renewed at the end of the year as previously announced.

Industrial Strategy

The Chancellor also today announced that the Industrial Strategy will be at the heart of the government’s mission to grow the economy, unlock investment and make every part of the country better off. It will focus on delivering long-term change to the economy by making Britain a clean energy superpower and accelerating to net zero, breaking down barriers to regional growth, and building a secure and resilient economy.

A green paper will be published around Budget in October outlining the long-term sectoral growth and priority industries of the government, ahead of the final strategy published in the spring of 2025 following a consultation with business.

HMRC package

Chancellor Reeves also outlined a package of reforms to improve the UK’s tax system to help fix the foundations of the UK economy.

As part of the package, HMRC will soon launch a consultation on electronic invoicing (e-invoicing) to promote its wider use across UK businesses and government departments.

The introduction of e-invoicing can significantly reduce administrative tasks, improve cash flow, boost productivity, introduce automation, and reduce errors in tax returns – all helping to close the tax gap. The consultation will gather input from businesses on how HMRC can support investment in and encourage e-invoicing uptake.

The Chancellor also announced that Exchequer Secretary to the Treasury James Murray, the minister responsible for the UK’s tax system, has become the Chair of the HMRC Board. This is to help oversee the implementation of his three strategic priorities for HMRC; closing the tax gap, modernising and reforming, and improving customer service.

It was also announced that a new Digital Transformation Roadmap, aimed to be published in Spring 2025, will set out HMRC’s vision to be a digital first organisation underpinned by customer insight. The Roadmap will include measures to ensure digital inclusion and support for customers who cannot yet interact digitally.

There was a further update that new staff are expected to join HMRC’s training programme in November as 200 additional offer letters have been issued as part of the 450 letters already sent. This is part of HMRC’s plans to recruit an additional 5,000 compliance staff to help close the tax gap.

The press release issued by HM Treasury on 18 September 2024.

Rachel Reeves leads government backing of the Invest in Women Taskforce, which aims to create one of the world’s largest investment funding pools aimed solely at female founders.

Female business founders to get the Chancellor’s backing as Rachel Reeves puts her weight behind the Invest in Women Taskforce – which aims to create one of the world’s largest investment funding pools for female founders – as she pushes forwards the government’s mission to grow the economy.

The Invest in Women Taskforce is the successor to the Rose Review, an independent review of female entrepreneurship which found that a £250 billion boost could be added to the UK economy if women started and scaled their businesses at the same rate as men.

Support for women and their contribution to the economy is a personal priority for Reeves as Britain’s first female Chancellor. The core aim of the Taskforce is to establish a funding pool of more than £250 million for female-founded businesses through private capital, making it one of the world’s largest investment funding pools aimed solely at female founders. As well as backing the Invest in Women Taskforce, the Chancellor will take an active role in steering its priorities and objectives as well as attending Taskforce meetings and events.

To mark this and celebrate the key role played by female business leaders in all parts of the economy, on International Equal Pay Day, the Chancellor – in partnership with women’s rights charity the Fawcett Society – is hosting a reception in No.11 Downing Street this evening.

At the evening reception, Chancellor Reeves will convene a group of female business leaders from across Britain’s foremost growth industries, such as financial services and technology as well as the creative sector.

She will set out their importance to the government’s number one priority mission for growth and champion their part in its delivery. She also will set out her agenda for women in the economy, vowing to improve the economic opportunities available to women and close the gender pay gap once and for all. That includes strengthening rights at work and investing in childcare.

Rachel Reeves, Chancellor of the Exchequer, said:

It is a huge responsibility to sit in the Treasury as the first female Chancellor of the Exchequer and be able to use my position to improve life for women across the UK – one that I don’t take lightly.

That includes ending the gender pay gap, strengthening rights at work and investing in childcare. And by backing the Invest in Women Taskforce we can establish one of the world’s largest dedicated investment funding pools for female-powered businesses, helping grow our economy.

This event gathers together some very powerful women but the truth is, everyone can do something for women’s equality – whether that’s supporting the women and girls in their lives with their ambitions or making their workplace a fairer playing field.

With 5.5 million businesses driving the UK economy, entrepreneurship is the lifeblood of the UK’s economic growth. While women make up over 50% of the population, they represent only 21% of business owners, with less than 6% of active equity backed companies founded by women. The Invest in Women Taskforce, alongside other government initiatives including the Women in Finance Charter which encourages female representation in financial services, aims to change this.

The event comes ahead of the International Investment Summit next month, at which the Chancellor is working to ensure there is strong female representation both in terms of agenda and attendance.

The Department for Business and Trade has also published its annual Investing in Women Code report today, which finds that venture capital fund managers who have signed up to the Code are more likely to invest in female founders.

The report also shows that the 250 signatories of the Code are leading the way in addressing the finance gap between male and female entrepreneurs. 32% of all venture capital deals made by Investing in Women Code signatories were in female-founded companies last year, compared to the market average of 28%, revealed in the latest report published today. This is the fourth year in a row that Code signatories have outperformed the wider market.

The Investing in Women Code was founded in 2019 as a landmark government-led initiative in response to the Rose Review’s findings that a lack of funding was one of the most significant barriers to women seeking to effectively scale a business. It is a commitment from finance providers to female founders, with signatories now including the British Business Bank, British Private Equity & Venture Capital Association (BVCA), UK Business Angels Association (UKBAA), UK Finance, and Responsible Finance. Investing in Women Code signatories account for 40% of UK Business Angels Association angel investment groups and 47% of venture capital deals.

The press release issued by HM Treasury on 12 September 2024.

New rules for banks and building societies announced today will ensure the UK financial system is resilient, competitive and promotes investment in the UK economy.

The Basel 3.1 reforms are the final part of the internationally agreed Basel 3 framework. Today’s proposals, announced by the Prudential Regulation Authority (PRA), mark the end of the post-2008 crisis capital reforms and give the certainty industry will need to invest for growth.

Chancellor of the Exchequer Rachel Reeves welcomed the reforms, saying they would deliver certainty for the banking sector to “finance investment and growth in the UK” ahead of a joint meeting with the Bank of England Governor to discuss them with CEOs of the UK’s largest banks and building societies in No11 Downing Street.

Chancellor of the Exchequer Rachel Reeves said:  

Today marks the end of a long road after the 2008 financial crisis.

Britain’s banks have a vital role to play in helping businesses to grow, getting infrastructure built and supporting ordinary peoples’ finances.

These reforms will strengthen the resilience of our banking system and deliver the certainty banks need to finance investment and growth in the UK.”

Economic Secretary to the Treasury Tulip Siddiq said: 

These new rules bring the UK in line with international standards while supporting the dynamism of the UK economy.

This is a balanced package that promotes the competitiveness of the UK banking system as well as economic growth.”

The PRA’s new rules, including those already announced in December 2023, have both financial resilience and growth at their core, reflecting an increased focus on growth and competitiveness.

Banks and building societies will have to maintain sufficient capital against risks, such as loans not being repaid, to protect people and businesses from the fallout from a 2008-style financial crash.

The PRA’s near-final rules also include a number of changes from its initial proposals that will support economic growth and competitiveness. The key changes made by the PRA will:

• Lower its proposed capital requirements for lending to small and medium-sized businesses (SMEs). This will mean lending to SMEs continues to be supported, helping to deliver the government’s ambition to make the UK the best place in the world to start and grow a business.
• Lower its proposed capital requirements for infrastructure projects, ensuring no increase on current requirements and supporting the UK’s transition to net zero.
• Streamline the approach banks can take to mortgage lending, by simplifying the approach to valuing residential property.

The PRA’s new rules will come into force on 1 January 2026, providing the banking sector with the certainty it needs to prepare for the new requirements. The Treasury will repeal the legislation required for the PRA to move forward with the Basel 3.1 package.

The PRA published proposals for a simpler regime for smaller firms alongside its near-final Basel 3.1 rules. This regime will make it easier for smaller banks and building societies to lend by minimising the number of calculations they are required to make and introducing a single capital buffer.

The press release issued by HM Treasury on 11 September 2024.

Chancellor Rachel Reeves secures a planned £8 billion investment from Amazon Web Services which is estimated to support around 14,000 jobs per year across the UK.

• The Chancellor will welcome the announcement as part of the Government’s mission to boost growth, unlock investment and make every part of Britain better off
• Reeves will say the Government’s mission to ‘fix the foundations of our economy has only just begun’

The Chancellor Rachel Reeves has today [11 September] confirmed an £8 billion investment from Amazon Web Services which is estimated to support thousands of jobs across the UK.

The Chancellor secured the planned five-year investment last week at a meeting with Amazon Web Services. The investment is estimated to support around 14,000 jobs per year at local businesses, including those across the company’s data centre supply chain such as construction, facility maintenance, engineering and telecommunications, as well as well as other jobs within the broader local economy. AWS estimates that these investments in the UK will contribute £14 billion to the UK’s total Gross Domestic Product (GDP) from 2024 to 2028.

Rachel Reeves will welcome the announcement as part of the government’s long-term mission to boost growth, unlock investment and make every part of Britain better off.

Speaking from a University Technical College in Silverstone today, which works with Amazon Web Services to introduce students to the skills required to enter the digital infrastructure industry, the Chancellor will warn that ‘change cannot happen overnight’ and ‘two quarters of positive economic growth will not make up for fourteen years of stagnation under the previous government.’

Chancellor of the Exchequer, Rachel Reeves said: 

I am under no illusion to the scale of the challenge facing our economy and I will be honest with the British people that change will not happen overnight. Two quarters of positive economic growth does not make up for fourteen years of stagnation under the previous government.

However, this £8 billion investment marks the start of the economic revival and shows Britain is a place to do business. I am determined to go further so we can deliver on our mandate to create jobs, unlock investment and make every part of Britain better off. The hard work to fix the foundations of our economy has only just begun.

Amazon Web Services Vice President and Managing Director, Europe, Middle East & Africa (EMEA), Tanuja Randery said:

The next few years could be among the most pivotal for the UK’s digital and economic future, as organisations of all sizes across the country increasingly embrace technologies like cloud computing and AI to help them accelerate innovation, increase productivity, and compete on the global stage.

AWS is proud to announce our plans to invest £8 billion in digital and AI infrastructure over the next five years to help meet the growing needs of our customers and partners, and support the transformation of the UK’s digital economy.

The investment announcement comes ahead of this year’s UK International Investment Summit on 14 October, where the UK will bring together the world’s most important companies and investors, demonstrating how the UK’s offer is the best in the world, with political and economic stability, a strategic government partnering with businesses, a proper trade strategy, and policies designed to enable growth.

Today [11 September] the Organisation for Economic Co-operation and Development (OECD) published their biennial surveillance of the UK economy, which provides analysis and insight of the state of the UK economy and policy challenges. HM Treasury have worked closely and collaboratively on the Economic Survey with the OECD.

The Survey recognises the UK’s weak growth and poor productivity growth over the past decade. This is partly the result of low investment, particularly since the UK voted to leave the EU in 2016. It highlights the importance of stability and certainty for business investment, as well as reforming the planning system.

The government welcomes the OECD’s analysis and recommendations. The government’s number one priority is to deliver a sustainable increase in growth, based on stability, investment and reform, as part of a decade of renewal. The government has already announced plans to reform the planning system and unlock further investment, including through a new National Wealth Fund.

The press release issued by HM Treasury on 4 September 2024.

The Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) scheme have now been extended by ten years to 5 April 2035.

• Government extends two leading investment schemes 10 years from April 2025 to April 2035 as part of its relentless pursuit of growth.
• Extensions will support start-ups and entrepreneurs to help them grow and rebuild Britain.
• The change will build on over £41 billion of investment generated over 30 years.

Thousands of entrepreneurs and start-ups are set to benefit from the extension of two leading government investment schemes to help them grow the economy and rebuild Britain.

The Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) scheme were both set to end on 6 April 2025 and have now been extended by ten years to 5 April 2035.

The schemes are designed to encourage investment into new or young companies through tax-relief incentives, encouraging innovation, creating jobs and stimulating economic growth.

The government is fully focused on restoring economic stability, taking the tough decisions to fix the foundations of our economy, rebuild Britain and make every part of our country better off.

Exchequer Secretary to the Treasury, James Murray, said:

“Startups and entrepreneurs are a driving force for greater investment, more jobs, and economic growth in the UK. By extending these schemes for 10 years, we are providing the stability and support they need to help us make every part of Britain better off.”

The extension, announced via a Written Ministerial Statement today in the House of Commons, will provide the confidence to continue investment into high-risk, early-stage businesses in the UK, supporting long-term growth and the development of their trades.

Industry leaders have praised the announcement.

BVCA Chief Executive Michael Moore said:

“It is excellent news that the government is moving so quickly. This means that investors can now focus on what they do best, investing, safe in the knowledge that these schemes now have the long-term security needed to drive investor confidence.

“The BVCA has long advocated for this move as these schemes play a vital role in supporting early-stage companies that have the highest growth potential and crowding in further investment through the growth cycle.

“As the third largest VC market in the world, the UK has proven the success of EIS and VCT, and with many jurisdictions now following our lead, it is vital that the UK retains its competitive edge in a competitive world and this move is a very positive step in that direction.”

Richard Stone, Chief Executive of the Association of Investment Companies, said:

“VCTs invest in the UK’s most exciting early-stage companies. They help entrepreneurs transform their businesses. Extending the VCT scheme until 2035 will allow the sector to raise further capital and invest with confidence. This will ensure VCTs can help the government secure its ambitions to grow the economy, support innovation and create jobs.”

Both schemes offer incentives to investors of up to 30% upfront income tax relief and an exemption from capital gains tax on any profits made after the sale of shares.

The EIS, introduced in 1994, offers tax relief to individuals that invest in new shares in qualifying companies with investors able to invest up to £1 million, or £2 million if the shares are in knowledge-intensive companies, which focus on research and development.

The government recognises the risk that investment in early-stage companies carries, so investors are offered loss relief through the EIS as long as shares are held for at least two years.

First introduced in 1995, VCTs are companies listed on the UK’s stock exchange that invest in early-stage trading companies on behalf of people, enabling individuals to invest up to £200,000 per year in new VCT shares. Dividends received from VCT’s are also tax-free.

Both schemes have already seen significant success with over £41 billion raised through the schemes since the EIS was launched in 1994. The schemes continue to generate vast amounts of investment, with £2.9 billion of funds raised across the schemes in 2022-23 and 1,280 companies using the EIS for the first time over this period.

The Treasury has made regulations to bring this into effect which have come into force.

The press release issued by HM Treasury on 30 August 2024.

Ian Corfield has been appointed as an unpaid International Investment Summit Adviser by the Chancellor of the Exchequer.

In this role, Ian Corfield will work with the Chancellor, her political advisers and officials in the Treasury, as well as relevant teams across Government, to advise and help on delivering the International Investment Summit on 14 October 2024.

The summit itself is intended to advance opportunities for growth and investment across the country; make clear that the UK is open for business to trading partners around the globe; create a pro-business environment that supports innovation and high-quality jobs in the UK; and allow global business leaders to hear directly from the Prime Minister and Cabinet ministers on how the government will drive future investment.

Ian Corfield will advise on delivering these objectives in relation to the agenda, engagement of key businesses, and the investment pipeline generated from the event.

Ian Corfield will be in post until 31 October 2024. Declarations of interests have been made in the usual way.