Tag: Treasury

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

Today’s action brings the world’s two largest metal exchanges into the scope of existing bans.

• Russian metal producers blocked from profits from the London Metal Exchange and the Chicago Mercantile Exchange, reducing a crucial source of revenue for the Kremlin.
• Joint UK and U.S. action builds on ban of metal imports, targeting $40 billion of Russian exports of aluminium, copper and nickel.

The UK and the U.S. have together announced joint action to clamp down harder on prohibited Russian metal exports, by today bringing the world’s two largest metal exchanges into the scope of the existing bans.

The London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME) will no longer trade new aluminium, copper and nickel produced by Russia. Metals are Russia’s largest export commodity after energy, though their value has been decreasing since Russia’s invasion of Ukraine. In 2022 they were $25 billion, dropping to $15 billion in 2023 due to the efforts of the G7 and allies to curtail the market. Today’s action will go further to constrain Russia’s ability to make money from its shrinking metals exports, dealing another blow to President Vladimir Putin’s funding for his illegal war in Ukraine.

Jeremy Hunt, Chancellor of the Exchequer, said:

Disabling Putin’s capacity to wage his illegal war in Ukraine is better achieved when we act alongside our allies. Thanks to Britain’s leadership in this area, our decisive action with the U.S. to jointly ban Russian metals from the two largest exchanges will prevent the Kremlin funnelling more cash into its war machine.

Janet L. Yellen, U.S. Secretary of the Treasury, said:

Our new prohibitions on key metals, in coordination with our partners in the United Kingdom, will continue to target the revenue Russia can earn to continue its brutal war against Ukraine.

By taking this action in a targeted and responsible manner, we will reduce Russia’s earnings while protecting our partners and allies from unwanted spillover effects.

The Prime Minister first announced the intention to act on banning Russian metals in May 2023. UK legislation to directly ban imports of Russian metals, including aluminium, copper and nickel was introduced in December. Separately, the U.S. put in place tariffs on various Russian metal imports.

Together, the UK and the U.S. have today gone one step further and brought both metal exchanges into the scope of these measures – reinforcing a shared commitment to constrain Russia and support Ukraine. This follows a dialogue between the two countries to maximise the impact of the policy, which is a technically complex measure requiring time to work through the details to ensure its effectiveness and minimise the risk of market disruption.

Metal exchanges provide a central role in facilitating the trading of industrial metals around the globe. The London Metal Exchange and Chicago Mercantile Exchange both have warehouses all over the world. Together, they are the world’s two largest metal exchanges and set global benchmark prices for the trade of base metals.

Both the UK and U.S. measures will exempt the existing stock of Russian metal on these global exchanges so they can still be traded and withdrawn. This is to minimise the risk to market stability.

Today’s announcement to strengthen the UK’s existing ban on Russian metals builds on ongoing work to support Ukraine. Since Putin’s full-scale invasion of Ukraine, the UK has introduced the largest and most severe package of sanctions ever imposed on any major economy. Over 2,000 individuals and entities have now been sanctioned, and it is estimated that without sanctions, Russia would have over $400 billion more to fund its war – which could be enough to do so for an additional four years. The UK has also provided almost £12 billion in military, humanitarian and economic support to Ukraine and has often been the first mover on vital lethal aid.

Sanctions Minister Anne-Marie Trevelyan said:

Today’s action ratches up economic pressure on Putin, further depriving him of the key resources and revenue streams he needs to fund his illegal war in Ukraine.

We have now imposed extensive trade sanctions on Russian-origin oil, gas, gold, diamonds, iron, steel, and base metals, dealing a heavy blow to Putin’s war economy. But we must continue to work with our allies to further tighten the screws on the Kremlin.

Minister for Trade Policy Greg Hands said:

The UK has already imposed the most severe package of bans that we’ve ever seen on a major economy, including on Russian metals which is Russia’s largest export commodity after oil and gas.

Now, we’re going even further. By strengthening our sanctions on Russian metals, alongside the U.S., we will reduce Russian revenue which it uses to fund Putin’s war machine.

Further information

• There are no restrictions on acquiring existing stockpiles of Russian metals already on exchange, in order to prevent disruption to markets.
• This action does not cover titanium or platinum group metals, such as platinum and palladium, which were not included in the UK’s prohibition in December due to supply chain sensitivities.

The press release issued by HM Treasury on 6 March 2024.

‘Budget for Long Term Growth’ sticks to the plan by delivering lower taxes, better public services and more investment, while increasing size of economy by 0.2% in 2028-29 and meeting fiscal rules – taking the long-term decisions needed to build a brighter future.

• Economy turning a corner, with inflation expected to fall to target next quarter, wages consistently rising faster than prices and better growth than European neighbours.
• Chancellor capitalises on progress with ‘Budget for Long Term Growth’, sticking to the plan by putting over £900 a year back into the average worker’s pocket thanks to changes at Autumn Statement and a second Employee National Insurance tax cut from 10% to 8% in April for 27 million working people.
• 2 million self-employed also get a second tax cut through a further 2p reduction in the NICs main rate from 8% to 6% – saving the average self-employed worker £650 when combined with cuts at Autumn Statement.
• Personal tax cuts since Autumn are worth £20 billion, slashes the effective personal tax rate for an average earner to its lowest level since 1975, and will lead to equivalent of 200,000 more full time workers joining the labour market.
• High Income Child Benefit Charge to be assessed on a household-basis by April 2026, and immediate support for working families by increasing the threshold to £60,000 and halving the rate at which Child Benefit is repaid – representing a £1,260 boost on average for around half a million working families.
• The NHS in England will receive a £2.5 billion day-to-day funding boost for 2024/25 and £3.4 billion in capital investment over the forecast period to help unlock £35 billion in productivity savings over the next Parliament by harnessing new technology like AI and cutting admin workloads – part of landmark Public Sector Productivity Plan to deliver better public services.
• The average car driver will save £50 this year as the 5p cut and freeze to fuel duty is maintained until March 2025, while pubs, breweries and distilleries will benefit from a further freeze to alcohol duty until February 2025 – which will also save consumers money on their favourite tipple.
• New tax reliefs and investments will help establish the UK as a world leader in high-growth industries such as the creative sector, advanced manufacturing and life sciences, while 28,000 SMEs will be taken out of VAT registration altogether – encouraging them to invest and grow.
• ‘Budget for Long Term Growth’ sticks to the plan by delivering lower taxes, better public services and more investment, while increasing size of economy by 0.2% in 2028-29 and meeting fiscal rules – taking the long-term decisions needed to build a brighter future.

More tax cuts for working people, more investment and a plan for better public services headlined Chancellor Jeremy Hunt’s ‘Budget for Long Term Growth’ today, Wednesday 6 March.

With the independent Office for Budget Responsibility (OBR) confirming inflation is set to fall to target a year earlier than previously expected, wages rising consistently and the economy outperforming European neighbours, the Chancellor said he would stick to the plan to improve living standards by rewarding work and growing the economy.

Building on the 2 percentage point cut to Employee National Insurance at Autumn Statement, Mr Hunt announced a second 2p cut from 10% to 8% from April. Taken together with the cut to Employee National Insurance at Autumn Statement, this slashes the main rate of Employee NICs by a third and means the average worker earning £35,400 a year will be over £900 better off this year.

The Chancellor also went further with tax cuts for the self-employed, having reduced Class 4 NICs from 9% to 8% and abolished the requirement to pay Class 2 NICs at Autumn Statement. Today he announced a further 2p cut to Class 4 NICs for the self-employed to 6%, meaning the average worker earning £28,000 will be £650 better off compared with last year.

Combined with changes at Autumn Statement, today’s announcements deliver personal tax cuts worth £20 billion and reduce the effective personal tax rate for a median earner to its lowest level since 1975. The OBR says these reductions will lead to the equivalent of around 200,000 extra full-time workers by 2028/29, as people increase their working hours and move into work. This boost is why the Chancellor has prioritised NICs cuts in his ‘Budget for Long Term Growth’ and why he will continue to do so when fiscally responsible. He set out that his long-term ambition is to end the unfairness of double taxation of work.

Mr Hunt also announced that the High Income Child Benefit Charge will be assessed on a household basis by April 2026, with a consultation to come on achieving this.

To ensure working families benefit from increasing their earnings before this change is made, the threshold to start paying back Child Benefit will increase in April from £50,000 to £60,000 – a 20% increase which will take 170,000 families out of paying the charge this year – while Child Benefit will no longer need to be repaid in full until earnings exceed £80,000. This represents a £1,260 boost on average for around half a million working families, rising to nearly £5,000 for some families when combined with tax cuts since Autumn Statement. This will put an end to the current unfairness, where two parents earning £49,000 a year receive the full Child Benefit while a household with a single earner on over £50,000 does not. The OBR says the immediate changes to the HICBC will lead to an increase in hours worked equivalent to around 10,000 more people entering the workforce on a full-time basis.

The Chancellor also announced a landmark Public Sector Productivity Plan which marks the first step towards returning public sector productivity back to pre-pandemic levels and will ensure taxpayers’ money is spent as efficiently as possible. OBR analysis suggests that raising public sector productivity by just 5% would deliver up to £20 billion of benefits a year.

Backed by £4.2 billion in funding, the plan will allow public services to invest in new technologies like AI, replace outdated IT systems, free up frontline workers from time-consuming admin tasks and take action to reduce costs down the line. The NHS will receive £3.4 billion as part of this over the forecast period – doubling investment in digital transformation, significantly reducing the 13 million hours lost by doctors every year because of old IT and delivering test results faster for 130,000 patients a year thanks to AI-fitted MRI scanners that help doctors read results more quickly and accurately. This investment, which comes alongside an extra £2.5 billion cash injection for 2024/25 to support the NHS improve performance and reduce waiting times, means the NHS can commit to delivering £35 billion in productivity savings over the next Parliament, while the £800 million to boost productivity across other public services will deliver an extra £1.8 billion in productivity benefits by 2029.

New tax breaks and investments will help to establish the UK as a world-leader in high-growth industries. The UK’s creative industries will be backed by over £1 billion, including higher tax reliefs to lower the cost of producing visual effects in high-end TV and film, a 40% relief on gross business rates until 2034 will be introduced for eligible film studios, and a new tax credit for independent British films with a budget of less than £15 million. Orchestras, museums, galleries and theatres will also benefit from a permanent 45% tax relief for touring productions and 40% relief for non-touring productions, while £26 million will fund maintenance and repairs at the National Theatre.

A £360 million package will support innovative R&D and manufacturing projects across the life sciences, automotive and aerospace sectors – with a further £45 million funding to accelerate medical research into common diseases like cancer, dementia and epilepsy – while the Green Industries Growth Accelerator will be allocated an extra £120 million to build supply chains for offshore wind and carbon capture and storage.

Opportunity will be spread across the country with hundreds of millions in funding to extend the Long Term Plans for Towns to 20 new places and a swathe of cultural projects, while local leaders will also be empowered to improve their communities through more devolved powers and a new North-East trailblazer devolution deal which comes with a funding package potentially worth over £100 million to support the region’s growth ambitions.

The Chancellor also took steps to make the tax system simpler and fairer. The ‘non-dom’ tax regime will be abolished and replaced with a fairer system from April 2025 where new arrivals to the UK pay the same tax as everyone else after four years – raising £2.7 billion a year by 2028/29. As the oil and gas sector’s windfall profits from higher prices are expected to last longer, the sunset clause on the Energy Profits Levy will be extended by a year to March 2029, raising £1.5 billion while encouraging investment in the UK’s energy security by promising to legislate for its abolition should market prices fall to their historic norm sooner than expected.

Accompanying forecasts by the OBR confirm that the combined impact of decisions taken at Spring Budget and the preceding two fiscal events will increase the size of the economy by 0.7% and increase total hours worked by the equivalent of 300,000 full-time workers by 2028-29  – with the combined impact of government policy since Autumn Statement 2022 reducing the tax burden in the final year of the forecast by 0.6%. Today’s announcements will reduce inflation in 2024/25, bring the equivalent of over 100,000 people into the workforce by 2028-29 and permanently grow the economy by 0.2% – with borrowing falling in every year of the forecast.

Lower taxes 

With the economy turning a corner and debt on track to fall as a share of GDP, the Chancellor delivered further tax cuts for working people – rewarding work, boosting growth and helping families with the cost of living.

• Following a 2 percentage point cut in the Autumn Statement, the main rate of Employee National Insurance will be cut again by a further 2 percentage points from 10% to 8% in April – a one third reduction in the main rate of National Insurance which means the average worker on £35,400 will receive a tax cut of over £900 compared to last year.
• Following a 1 percentage point cut in the Autumn Statement, the main rate of Class 4 NICs for the self-employed will be cut by a further 2 percentage points from 8% to 6% from April – saving the average self-employed person on £28,000 over £650 compared to last year when combined with scrapping the requirement to pay Class 2 NICs announced at Autumn Statement.
• Personal tax cuts worth £20 billion delivered since Autumn, which reduces the effective personal tax rate for a median earner to its lowest level since 1975.
• High Income Child Benefit Charge (HICBC) will be administered on a household rather than an individual basis by April 2026, with a consultation in due course, while around half a million working families will benefit from an increase in the threshold from £50,000 to £60,000 and raising the level at which Child Benefit is fully repaid to £80,000 – worth £1260 per family on average.
• OBR says combined changes to NICs will lead to the equivalent of around 200,000 new full-time workers joining the labour market by 2028-29 as people increase working hours and move into work, while confirmed changes to the HICBC will bring in the equivalent of an additional 10,000 full-time workers.
• The main rates of fuel duty will be frozen again until March 2025 with the temporary 5p cut also extended, saving car drivers around £50 this year and £250 since the 5p cut was introduced – a £5 billion tax cut.
• The six-month alcohol duty freeze announced at Autumn Statement will be extended until 1 February 2025, saving consumers 2p on a pint of beer, 1p on a pint of cider, 10p on a bottle of wine and 33p on a bottle of spirit compared to if the planned rise had gone ahead. This will benefit 38,000 pubs across the UK, while reducing inflation this year.
• The higher rate of Capital Gains Tax (CGT) on property will be cut from 28% to 24% from April 2024 – firing up the residential property market and supporting thousands of jobs that rely on it.
• Building on the single biggest investment in childcare in English history, nurseries and preschools will be protected from rising costs through a guarantee that future funding will rise with a combination of inflation, earnings and the National Living Wage – certainty the sector needs to expand and deliver the rollout, which will save some parents using the full 30 hours up to £6,500 a year.
• The most vulnerable families will receive targeted support through a £500 million extension to the Household Support Fund for an extra 6 months to September 2024, helping local authorities to support people with the cost of essentials, as well as abolishing the £90 fee for Debt Relief Orders so households struggling with problem debts can get the help they need, and extending the maximum period for Universal Credit budgeting advances from 12 to 24 months.

Better public services 

While growth is key to delivering high-quality public services, the Chancellor backed the NHS with more funding and outlined the first steps towards getting public sector productivity back to pre-pandemic levels.

• Day-to-day public spending will increase by 1% higher than inflation on average over the next parliament, as Chancellor confirms spending levels will not be cut.
• The Public Sector Productivity Plan announced today with a £4.2 billion investment will improve public service delivery and get better value for taxpayers’ money through better tech, freeing frontline workers from time-consuming admin and making earlier interventions to reduce costs later down the line.
• The NHS will receive an additional £3.4 billion as part of this to invest in new tech and digital transformation, including making the NHS app a single front door for patients, piloting new AI to halve form-filling times for doctors, rolling out universal electronic patient records, and over one hundred upgraded AI-fitted scanners so doctors can read MRI scans more accurately and quickly. This improves patient care and helps unlock £35 billion in productivity savings by 2030.
• This means the NHS can commit to raising productivity in the NHS to 2% on average by 2028-29, at the upper end of the 1.5-2% ambition in the Long Term Workforce Plan – delivering a health service fit for the future. The NHS also gets a £2.5 billion funding boost for 2024/25.
• £800 million will be invested to boost productivity across other public services, including £230 million for drones and new technology like facial recognition which will free up police officers’ time for more frontline work and £75 million to roll out the highly successful Violence Reduction Unit model across England and Wales.
• This investment in non-NHS public services will help deliver up to £1.8 billion of benefits by 2029, with further measures including digitising jury bundles to free up 55,000 working hours spent on admin, creating 200 new children’s social care place to tackle overspends, and expanding the use of AI across government to make it easier to spot and catch those who try to defraud the public purse.
• Defence spending is expected to hit 2.3% of GDP next year after £11 billion investment announced at Spring Budget 2023.

More investment 

Building on recent investments in the UK by Google, Nissan and Microsoft, Mr Hunt announced exciting new investments in key growth sectors and set out plans to support businesses of all sizes to grow.

• Significant package of support to establish the UK as a world leader in fast-growing industries over the next five years, including over £1 billion in new tax reliefs for creative industries, £270 million in automotive and aerospace R&D projects focusing, and a £120 million top up for the Green Industries Growth Accelerator to help build supply chains for offshore wind and carbon capture and storage.
• £45 million will fund medical research to develop new medicines for diseases like cancer, dementia and epilepsy, and the UK’s ability to manufacture them will be boosted by plans for a £650 million AstraZeneca investment to build a new vaccine manufacturing hub in Liverpool and expand their footprint in Cambridge – thanks to government support for the life sciences sector.
• Opportunity will be spread across the country with hundreds of millions in funding to extend the Long Term Plans for Towns to 20 new places, over £240 million to build nearly 8,000 homes in Barking Riverside and Canary Wharf alongside a new life sciences hub, and a new £160 million deal to acquire two site to develop nuclear for our energy security.
• Local leaders will be empowered, with a new North-East trailblazer devolution deal which comes with a funding package potentially worth over £100 million in support for the region, and powers devolved to Buckinghamshire, Warwickshire and Surrey.
• Draft legislation will be published within weeks to extend full expensing – a £10 billion tax cut for business every year to help them invest for less – to leased assets when affordable to do so, strengthening one of the most attractive capital allowance regimes of any major country.
• SMEs will be supported to invest and grow through a £200 million extension of the Growth Guarantee Fund, helping 11,000 small businesses to access the finance they need, and an increase in the VAT registration threshold from £85,000 to £90,000 which will take around 28,000 small businesses out of paying VAT altogether.
• Pensions and savings reforms, including the introduction of a new UK ISA allowing an additional £5,000 annual investment in UK equities tax-free and new British Savings Bonds offering savers a guaranteed rate for 3 years, will deliver better returns for savers.

Sustainable public finances 

The ‘Budget for Long Term Growth’ delivers lower taxes, better public services and more investment in a responsible way, the OBR confirming the Chancellor’s fiscal rules are on track to be met.

• Underlying debt will fall as a share of the economy to 92.9% in 2028/29 – meeting the debt rule with £8.9 billion headroom. Headline debt will fall as a percentage of GDP every year from 2024/25.
• Public sector borrowing falls in every year of the forecast. The deficit will be 2.7% of GDP in 2025-26 – meeting the second fiscal rule to get borrowing below 3% of GDP three years early – and by 2028-29 it falls to 1.2% of GDP, which is the lowest level since 2001-02.
• Measures to tackle the tax gap will bring in an additional £4.5 billion a year by 2028/29, saving nearly £10 billion for the public purse when combined with policies announced at Autumn Statement.
• The ‘non-dom’ regime will be replaced by a simpler system where arrivals have access to a more generous scheme for their first four years of tax residency before paying tax in the same way as everyone else, raising £2.7 billion a year by 2028/29 without deterring investment.
• The Energy Profits Levy sunset clause will be extended from March 2028 to March 2029 to raise £1.5 billion a year, but legislation in the Finance Bill will abolish the Levy if market prices fall to their historic norm sooner than expected – maintaining investment in our energy security.
• A duty on vapes will be introduced from October 2026 to protect young people and children from the harm of vaping, alongside a one-off increase in tobacco duty to recognise the role vapes play in helping people to quit smoking. This will raise a combined £1.3 billion by 2028/29.
• Multiple Dwellings Relief will be abolished from June after showing no evidence of promoting investment in the private rented sector – raising £385 million a year – and the Furnished Holiday Lettings tax regime will be abolished from April 2025, raising £245 million a year while making it easier for local people to find a home in their community.

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

Australia’s biggest pension fund to invest more than £18 billion in UK by 2030.

• Set to unleash billions in productive finance for innovative businesses in the high-growth sectors of the future like clean energy and digital infrastructure.
• Chancellor hails investment as part of vision to make the UK the global capital for capital.

A fresh £8 billion investment from Australia’s biggest pension fund, AustralianSuper, will take its total investment in the UK to over £18 billion by the end of the decade.

It comes after Chancellor Jeremy Hunt met with CEO Paul Schroder, alongside some of the Board, this afternoon and rounds off a day of significant investment announcements, including the government announcing over £360 million of funding for advanced manufacturing.

The Prime Minister attended the ground-breaking of a development site in Swindon today owned by Panattoni, Europe’s largest developer of new build industrial and logistics facilities, which has the potential to create 7,000 jobs for local people and add £1.2 billion to the economy, and the Chancellor visited Siemens Mobility, which revealed a £100 million investment for a manufacturing and research and development centre in Chippenham.

Growing the economy is one of the Prime Minister’s priorities, and is part of the plan to improve economic security and opportunity for everyone. The UK has secured investment from major corporations over the past year, and according to PWC, around 4,000 CEOs see the UK as a top-three priority country for investment, alongside the US and China.

It also follows the announcement of a series of pension fund reforms to back British business and increase returns and transparency for savers, including a new Value for Money (VFM) framework aimed at improving the performance of defined contribution pensions – a market growing rapidly, fuelled by the success of Automatic Enrolment in increasing pension savings by over £26 billion between 2012 and 2022.

Prime Minister Rishi Sunak said:

The raft of investment announcements we have seen today show that the UK remains one of the most attractive places to invest in the world.

But because of the difficult, long term decisions the government has taken the economy is now turning a corner, and we must stick to the plan – driving investment and growth to deliver long-term change and a brighter future everyone.

Chancellor Jeremy Hunt said:

This major investment from AustralianSuper will promote growth and strengthen the UK’s position as a leading financial centre, creating wealth and helping to fund public services.

Britain continues to be Europe’s leading hub for investment, and it is through commitments like this that we will funnel billions into our brightest, burgeoning businesses to scale up and grow.

The Australian pension fund industry is the fastest growing in the developed world with assets under management doubling every five years, and the Chancellor has previously referred to the success of the pensions model in Australia, which has pioneered a similar set of reforms to VFM.

AustralianSuper has had a presence in the UK since 2016, with approximately £8 billion currently invested in the UK and holding over £2.5 billion in UK listed equities. It is on track to deploy more than £8 billion of new capital by 2030 into large-scale, long-term investment opportunities in some of the fastest growing sectors in which Britain excels in comparison to its European peers, such as the energy transition and digital infrastructure.

Mr Schroder has praised the UK’s investment opportunities for enabling high-quality, long-term returns for members. In future the company stated it expects £7 of every new £10 invested to be deployed outside Australia, as it pursues the best global investment opportunities and long-term returns for members.

The United Kingdom has the largest pension market in Europe, worth over £2.5 trillion. Last year the Chancellor set out his ‘Mansion House Reforms’ to capitalise upon this, with the possibility to unlock an additional £75 billion for high growth businesses – supporting the Prime Minister’s priority of growing the economy and delivering tangible benefits to pensions savers. These include the ‘Mansion House compact’ which encourages pension funds to invest at least 5% of their assets in unlisted equity, which is in line with the Australian model.

Minister for Investment Lord Johnston said:

Foreign investment is not just about numbers on a spreadsheet. It creates jobs, nurtures skills and unleashes our nation’s innovative spirit. That’s why the UK’s recent trade deal with Australia prioritised boosting investment flows.

AustralianSuper’s ongoing commitment shows the strong relationship we have built as they create a global centre of excellence in London. We are a top choice for major investments like this, and the government is committed to promoting the opportunities available to global investors so they choose the UK.

The UK-Australia free trade agreement, which came into force on 31 May 2023, includes comprehensive provisions on investment, which has made the UK a more attractive place to do business.

Notes to Editors  

More information on the Value for Money framework and other pension fund reforms announced by the Chancellor this past weekend.

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

The Chancellor has today (4 March) announced a significant investment package in the UK’s life sciences and manufacturing sectors.

• Chancellor to announce significant funding package for R&D and manufacturing projects across the life sciences, automotive and aerospace sectors.
• £92 million joint government and industry investment to expand facilities to manufacture life-saving medicines and diagnostics products.
• £200 million joint investment in zero-carbon aircraft technology to develop a more sustainable aviation sector and almost £73 million in automotive technology.
• Follows the Advanced Manufacturing Plan to give the industry the long-term certainty to grow and invest in the UK, backed by £4.5 billion of targeted support announced at Autumn Statement to boost the British manufacturing sector.

Ahead of the Spring Budget this week, the Chancellor Jeremy Hunt has today (Monday 4 March) announced a significant investment package in the UK’s life sciences and manufacturing sectors, as part of the government’s plan to grow the economy, boost health resilience and support jobs across the UK.

The funding will go towards several companies and projects who are making cutting edge technology in sectors key to economic growth and part of wider government support to ensure the UK is the best place to start, grow and invest in manufacturing.

This includes £7.5 million to support two pharmaceutical companies who are investing a combined £84 million to expand their manufacturing plants in the UK. Almac, a pharmaceutical company in Northern Ireland produces drugs to treat diseases such as cancer, heart disease and depression, while Ortho Clinical diagnostics in Pencoed, Wales, is expanding its facilities producing testing products used to identify a variety of diseases and conditions.

These new life sciences investments are the latest step in the government’s plan to grow our economy, encourage innovation and support levelling up with nearly 300 supported jobs across the UK.

The Chancellor is also confirming that companies will soon be able to apply for a share of the £520 million funding for life sciences manufacturing announced at Autumn Statement, with competitions for large scale investments opening for expressions of interest this summer and medium and smaller sized companies in the autumn. The fund is designed to build resilience for future health emergencies such as influenza pandemics and capitalise on the UK’s world-leading research and development.

On top of this, the government has announced almost £73 million in combined government and industry investment for cutting-edge automotive R&D projects to support the development of electric vehicle technology, delivering highly skilled jobs and cementing the UK’s position as a global hub for EV manufacturing.

Supported by more than £36 million of government funding awarded through Advanced Propulsion Centre UK (APC) competitions, this includes four projects which are developing technologies for the next generation of battery electric vehicles, making them more efficient and competitive, led by companies including automotive manufacturers YASA and Empel Systems.

This funding is also supporting a project led by Integrals Power, developing and scaling up high-performance battery systems ahead of testing their mass-commercialisation, enhancing safety, power density, and cost-efficiency.

These projects build on the record of the government’s established automotive initiatives. The Autumn Statement provided future certainty, announcing over £2 billion across five years from 2025 to unlock investment in the manufacturing and development of zero emission vehicles, their batteries and supply chain. The government will ensure a seamless transition to the new Auto2030 programme which will deliver support in future, and investors are still able to apply to the current schemes.

The government has already spent over £2 billion to accelerate the uptake of zero emission vehicles, including reducing the upfront cost of electric vehicles and supporting the roll-out of charging infrastructure. The UK’s first ever Battery Strategy published last year outlines our plan for the UK to attract investment and achieve a globally competitive battery supply chain by 2030, with the battery sector alone expected to create 100,000 highly paid and skilled jobs in the UK.

The significant funding package for R&D and manufacturing projects announced today is targeted to support sectors where the UK is or could be world-leading and is designed to unlock investment from the private sector by providing certainty to investors – supporting the government’s priority to grow our economy by protecting existing and creating new jobs, so we can deliver the long-term change our country needs to deliver a brighter future.

Chancellor of the Exchequer Jeremy Hunt said:

“We’re sticking with our plan by backing the industries of the future with millions of pounds of investment to make the UK a world leader in manufacturing, securing the highly-skilled jobs of the future and delivering the long-term change our country needs to deliver a brighter future for Britain”.

Business and Trade Secretary Kemi Badenoch said:

“Today’s announcement builds on the success of our Advanced Manufacturing plan announced last year, and will ensure we continue to grow the economy, help create jobs and secure the future of great British manufacturing.

“Our plan for the British economy is working – which is why firms like Airbus and BMW are continuing to bet on Britain.”

Science Secretary, Michelle Donelan, said:

“The UK’s £108 billion life sciences sector is driven by the pioneering contributions of over 300,000 highly-skilled individuals who transform lives through groundbreaking advancements in drug discovery and diagnostics.

“We fuel this progress by fostering a dynamic environment where cutting-edge technologies like AI and genomics meet world-class research to create the next generation of healthcare solutions, including in our NHS. By investing in advanced manufacturing facilities, we are protecting our communities by ensuring we can rapidly respond to future health emergencies and deliver life-saving innovations when they are needed most.”

Further measures include:

• As part of the investments announced today, almost £200 million of joint government and industry funding is also going to aerospace R&D projects, supporting the development of energy efficient and zero-carbon aircraft technology and accelerating the transition to net zero aviation.
• This includes £40 million which is going towards a project developing zero-carbon aircraft engine technology – led by Cambridge-based Marshall Group – and around £96 million is being invested in Airbus-led projects. Airbus, which manufactures almost all its aircraft wings in the UK bringing in jobs and investment to the UK economy – is developing more efficient wing designs and increasing carbon fibre production rates for wing components, reducing CO2 emissions and fuel burn.
• Funding for these projects will be delivered through the Aerospace Technology Institute (ATI) programme. It was also confirmed today that the £975 million in aerospace funding over five years from 2025, announced at Autumn Statement, will be allocated to the ATI programme. The programme has facilitated over £3.6 billion of joint government and industry R&D investment to date – providing industry with continued confidence and security to invest in the UK for the long term – and includes R&D support for small businesses through the ATI SME competition.
• The Chancellor is also announcing up to £120 million increase to the Green Industries Growth Accelerator (GIGA) to further support expansion of low carbon manufacturing supply chains across the UK, lowering costs and accelerating the transition. The government is also confirming today that the total fund, which has now increased to almost £1.1 billion, will be split between the clean energy sectors, with around £390 million earmarked to expand UK-based supply chains for electricity networks and offshore wind sectors, and around £390 million for carbon capture, utilisation and storage and hydrogen sectors.
• The remaining £300 million has been previously announced for UK production of the fuel required to power high-tech new nuclear reactors, known as HALEU.
• The GIGA funding will enable the UK to seize growth opportunities through the transition to net zero, building on our world-leading decarbonisation track record and forms part of the government’s priority to grow the economy focusing on making the right long-term decisions for a brighter future by creating better-paid jobs and opportunity right across the country.

Energy Security Secretary Claire Coutinho said:

“We are backing our green industries with extra cash for the Green Industries Growth Accelerator – taking the total to more than £1 billion. We have long been energy pioneers in advanced manufacturing and this will allow us to carry on that great British tradition. While we have attracted £300bn in low carbon investment since 2010, with £24bn since September alone, this will help to unlock even more.”

• Alongside this, the Chancellor has today set out further details of the two-year £50 million apprenticeship growth sector pilot announced at Autumn Statement.
• Following engagement with the sector, from April eligible apprenticeship providers of apprenticeship standards including pipe welder, nuclear technician and laboratory technician will now benefit from targeted payments worth £3k for every start of an apprentice.
• It is intended the funding will be used to support providers in making capital investment that will unlock their ability to grow and deliver the standards in scope of the pilot, such as purchasing course specific equipment, tools, and machinery that will last beyond delivery of a single apprenticeship.
• This will explore ways to stimulate training and break down barriers to high-quality training in advanced manufacturing and engineering, green industries, and life sciences apprenticeships. Further detail will be set out in upcoming guidance later this month.

Today’s announcements follow £4.5 billion announced at Autumn Statement to increase investment in strategic manufacturing sectors – auto, aero, life sciences and clean energy – across the UK for five years from 2025.

Katherine Bennett, CEO of the High Value Manufacturing Catapult said:

“Today’s funding announcements from the Chancellor for R&D and manufacturing projects are welcome news for our domestic life sciences, automotive and aerospace sectors and will support the growth of cross-sector low carbon supply chains across the UK.

“From developing technology for lower-carbon aircraft wings, to supporting the expansion of UK-based supply chains in offshore wind, hydrogen and electrification our network of innovation centres is helping drive industrial transformation across the UK”

Stephen Phipson, Chief Executive of Make UK, said:

“Industry will welcome this announcement as yet another boost for key sectors that will put advanced manufacturing at the heart of the UK’s economic future. These industries will be key to addressing many of the societal challenges we face in a competitive world and highlight what can be achieved with a constructive dialogue between Government and business. Taken together they are another piece in the jigsaw of a modern industrial strategy to make the UK a world leader in key sectors of the future.”

APC Chief Executive Officer Ian Constance said:

“We’re committed to building the electric vehicle supply chain in the UK. By investing in the capability and expertise in this country we will grow businesses and take decisive action towards creating zero tailpipe emission technology. Our latest R&D funding does just that.”

Today’s announcements come alongside wider progress across government’s commitments set out in the Advanced Manufacturing Plan including:

• The industry co-chaired Made Smarter Commission met earlier this year to advise on delivery of the Autumn Statement commitment to expand the Made Smarter Adoption programme. The Made Smarter Adoption programme supports manufacturing SMEs to use advanced digital technologies. As part of the 2023 Autumn Statement and Advanced Manufacturing Plan, government committed to expanding the programme from 2025-26.
• This month the government will hold the first meeting of the Hydrogen Propulsion Manufacturing Taskforce involving leading manufacturers across auto, aero, rail and marine. This taskforce will make recommendations to government and industry to maximise investments in the UK manufacture of hydrogen propulsion systems.
• In the coming weeks, Minister for Industry Nusrat Ghani and Brian Holliday of Siemens will convene the new Industry Innovation Accelerator with leading digital companies and manufacturing businesses to identify how to speed up and widen the adoption of transformative AI solutions across manufacturing. The work of this group will complement the wider work of the AI Opportunity Forum, announced by the PM late last year.
• The renewed Battery Strategy Taskforce will meet quarterly to identify knowledge gaps requiring further research and consider potential risks to UK battery supply chains.

A full breakdown of the auto and aero winning projects is included below:

Advanced Propulsion Centre Collaborative R&D projects led by:

• Nissan Technical Centre Europe: Building the UK R&D electric vehicle capability and enhancing the knowledge base in the UK EV battery industry as a whole.
• JLR: Developing a next generation EDU ‘toolkit’; a modular family of electric machines, inverters and transmissions for future vehicle platforms.
• YASA: Developing a dual inverter for regenerative braking in BEVs, enabling new vehicle designs with EV specific, optimised electronics and safety systems.
• EMPEL Systems: Developing a UK-designed and sourced innovative silicon carbide power module for use in high efficiency automotive inverters and DC-DC converters.

Advanced Propulsion Centre Scale-up Readiness Validation (SuRV2) competition funded by the Automotive Transformation Fund:

• Integrals Power: The scale up of high-performance, low-cost Lithium Iron Phosphate (LFP) battery chemistry, that offers superior performance including high discharge rate, improved capacity retention and rate recovery, specifically in extreme temperatures.

9 Aerospace Technology Institute Programme projects led by:

• Marshall Group: Developing and testing a smart, connected liquid hydrogen (LH2) fuel system for the next generation of zero emission aircraft.
• Airbus and National Composites Centre: Developing technology which increases the production rate of carbon fibre upper covers for aircraft wings.
• Airbus: Developing ultra-efficient technologies to cut fuel burn and weight, independent of the fuel choice.
• Airbus: Developing wing design and manufacturing technologies for lighter, more efficient aircraft.
• Spirit AeroSystems: Developing technologies for the storage and integration of liquid hydrogen on large aircraft.
• Goodrich: Developing a power-dense electric propulsion motor drive system aimed at hybrid and electric aircraft including helicopters and potentially next generation single aisle planes.
• TT Electronics: Developing technology to support electrical power conversion and electric machines for future more electric and all electric aircraft operating at higher voltages.
• Safran Landing Systems: Developing new designs, methodologies, and technologies to accelerate and catalyse benefits for current and next generation landing gears.
• Phoenix Scientific Industries: Transforming the production of titanium powder via ‘cold-crucible’ gas atomisation to enable high volume production.

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

Siemens Mobility to invest £100 million in a brand-new manufacturing and R&D centre in Chippenham.

• Over 800 skilled workers will build the next generation of rail signalling and control systems for Britain, keeping the rail and transport network on track.
• Chancellor champions growth opportunities of innovation in technology on same day that over £360 million of investment into advanced manufacturing is announced.

Siemens has announced it is to invest £100 million in a centre of manufacturing excellence in Wiltshire.

The new cutting-edge facility will replace the company’s current Chippenham factory, from which generations of British workers have designed, manufactured and delivered signalling and control systems for the Elizabeth Line, North Wales Coast, Birmingham New Street and many others across the world since the 19th Century.

The new centre is expected to be operational by 2026, with around 800 skilled manufacturing, research, engineering and reporting roles transitioning to the new site and no interruption in production.

Chancellor of the Exchequer Jeremy Hunt said:

This new commitment from Siemens is a big boost for Britain’s world-class manufacturing sector and shows our plan for the UK to be the best place to invest and grow a business is working.

This digital technology will improve the safety, reliability and connectivity of our railways and drive sustainable opportunities in higher-paid jobs and exports – as part of our plan to grow our economy.

Joint CEO of Siemens Mobility UK & Ireland, Rob Morris, said:

This €115 million investment is a strong commitment to Chippenham and our country. Siemens Mobility’s Chippenham site, along with our 30 sites across the country, has been transforming rail, travel, and transport in Britain – and it will continue to do so with cloud-based rail technology connecting the real and the digital worlds, digitalizing rail.

We are very excited to soon start construction of one of the most sophisticated rail factories, digital engineering and R&D sites in the UK, supporting local jobs and skills for the future. There’s a piece of Britain in everything we build.

Siemens’ investment comes on the advent of one of the most significant modernisation programmes in two centuries of Britain’s railways, with digital rail systems set to better connect communities and make it easier for people to access a wider range of job opportunities.

The plans are also expected to be a boost for the local economy in Chippenham and the wider Wiltshire region, with Siemens Mobility working closely with local small and medium enterprises across the supply chain. As part of today’s investment, Siemens Mobility will continue to develop and code the digital signalling systems to transform rail travel on the East Coast Main Line.

British manufacturing is of great strategic importance for the country on the global stage. The sector makes up over 40% of all UK exports, employs around 2.6 million people and overtook France for output in 2021. To capitalise on this success, the government published its Advanced Manufacturing Plan last year to ensure the UK continues to lead in the development and deployment of digital manufacturing technologies.

This was published shortly after the Chancellor announced £4.5 billion of funding for strategic manufacturing sectors in the UK as part of his Autumn Statement, including £960 million earmarked for a Green Industries Growth Accelerator to support clean energy. It was announced today this is to be boosted by an up to further £120 million increase. This funding will be available from next year for five years, providing industry with longer term certainty about their investments in line with Prime Minister’s focus on making long-term decisions to grow the economy.

Mr Hunt also announced Full Expensing to support manufacturers in investing for less. As the biggest British business tax cut in history – made possible by the progress the government has made on the people’s economic priorities – this represents an effective corporate tax cut of £55 billion over the next five years and will help manufacturers invest in plant and machinery technologies. The Chancellor outlined at a Make UK event last week how this will benefit hard-working Brits and help to close the productivity gap with the likes of France and Germany – two economies which the UK has grown faster than since 2010.

Business and Trade Secretary Kemi Badenoch said:

Our plan for attracting more inward investment into the UK is working. From the measures in our advanced manufacturing plan that offer certainty to investors, to promoting the UK at our Global Investment Summit, the Government is making sure that investors, like Siemens, choose the UK.

Transport Secretary Mark Harper said:

This vital investment will help futureproof our rail network as part of our plan to deliver more reliable journeys for millions of passengers across the country through important upgrades.

Rail manufacturing plays an important role in our economy, supporting thousands of skilled jobs, with this new facility supporting hundreds more.

Siemens’ investment comes on the same day that the government announced over £360 million will be invested in advanced manufacturing and the life sciences, securing thousands of jobs and building a stronger economy including through the further investment it will help to leverage over the long-term through the private sector. The UK has attracted more new investment since 1997 than any other European nation, and last year’s Global Investment Summit confirmed over £29.5 billion of additional investment in Britain.

The press release issued by HM Treasury on 2 March 2024.

The Chancellor has today (2 March) announced the reforms as a further step in the government’s plan to boost business and increase returns for savers.

• Pension funds to publicly disclose how much they invest in UK businesses compared to those overseas.
• Schemes performing poorly for savers will not be allowed to take on new business from employers.
• Changes are part of the government’s plan to improve outcomes for savers and consolidate the pensions market.

The Chancellor has today (2 March) announced pension fund reforms as a further step in the government’s plan to boost British business and increase returns for savers. This includes requirements for Defined Contribution (DC) pension funds to publicly disclosure their level of investment in the UK.

The government’s auto enrolment rollout has driven a huge growth in the amount of investment entering UK pension funds, from less than £90 billion in 2012 to around £116 billion in 2022. However, the disclosure requirements for DC pension funds are currently inconsistent across the market and do not require a breakdown of UK investments, sometimes making it difficult for policymakers and savers to understand where this money is invested.

By ensuring pension funds publicly disclose where they invest and the returns they offer, it will make it possible for employers and savers to compare schemes and make informed choices. The government is embarking on Value for Money (VFM) pension fund reforms to improve outcomes for savers and consolidate the DC pensions market. The reforms will ensure that pension managers are focused on securing good returns for savers.

Under the plans:

• By 2027 DC pension funds across the market will disclose their levels of investment in British businesses, as well as their costs and net investment returns.
• Pension funds will be required to publicly compare their performance data against competitor schemes, including at least two schemes managing at least £10 billion in assets.
• Schemes performing poorly for savers won’t be allowed to take on new business from employers, with The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) having a full range of intervention powers.

The plans are subject to a consultation by the Financial Conduct Authority and build on the Government’s Mansion House compact, that encouraged pension funds to invest at least 5% of their assets in unlisted equity.

Chancellor Jeremy Hunt said:

“We have already started on a path to drive growth, unlock capital for our most promising companies and improve outcomes for savers – and these new rules mean employers and savers can see how their money is invested and how the returns compare to other schemes.

“British pension funds appear to contribute less to the UK economy than international counterparts do as they invest less in our domestic businesses. These requirements will help focus minds on how to improve overall returns and outcomes for savers.”

Secretary of State for Work and Pensions, Mel Stride MP, said:

“The incredible success of automatic enrolment has opened up a huge opportunity to grow the economy, boost British businesses and fuel our futures. It has helped us transform the pensions landscape over the last decade.

“And our Value for Money framework will take this one step further, focusing pension managers on their number one priority – securing the best possible returns for savers – as well as providing a boost to the wider economy.”

Julia Hoggett, CEO of London Stock Exchange plc and Chair of the Capital Markets Industry Taskforce, said:

“Pension holders should know how much is being invested in equities in their home market. Investing in UK companies ultimately benefits those companies and the returns they are delivering, which supports the economy and the country in which pension holders live, to everyone’s benefit and in everyone’s interest.”

James Ashton, Quoted Companies Alliance chief executive, said:

“There is huge upside to aligning the UK’s financial assets with innovative homegrown ventures that could be tomorrow’s world beaters. We welcome these new disclosures and hope they are the first step to many UK pension funds discovering the numerous high-potential companies whose shares are traded on their doorstep.”

Chris Hayward, Policy Chairman of the City of London Corporation, said:

“The Mansion House Compact aims to channel long-term capital from pension funds into growth companies. It will support high-growth companies to start, scale and stay in the UK. We welcome the Government’s action to support this objective which will turn the dial to drive investment into UK businesses. It is vital that the pension ecosystem focusses on value for money and long-term returns for savers.”

The press release issued by HM Treasury on 2 March 2024.

New plans for public sector productivity will deliver up to £1.8 billion worth of benefits by 2029.

• New plans for public sector productivity will deliver up to £1.8 billion worth of benefits by 2029.
• Marks first step in plan to boost productivity. OBR say a return to pre pandemic levels would save the equivalent of £20bn.
• Plan will free up thousands of police officer hours spent on admin, to instead help tackle crime, and expand the violence reduction unit model, stopping tens of thousands of violent offences

The Chancellor has today outlined plans to deliver up to £1.8 billion worth of benefits by 2029 by improving public sector productivity, including releasing police time for more frontline work.

The Chancellor is promoting public sector productivity as an alternative to accepting an ever-increasing bill for public services as the government sticks to its plan to move on from the high spending and high tax approach that was necessary to get the UK through the shocks of Covid and Russia’s invasion of Ukraine. A new focus is needed on the long-term decisions required to strengthen the economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.

Covering frontline services, the plan is designed to help public servants get back to doing what is most important: teaching our children, keeping us safe and treating us when we’re sick.

Chancellor of the Exchequer Jeremy Hunt said:

We shouldn’t fall into the trap of thinking more spending buys us better public services. There is too much waste in the system and we want public servants to get back to doing what matters most: teaching our children, keeping us safe and treating us when we’re sick.

That’s why our plan is about reaping the rewards of productivity, from faster access to MRIs for patients to hundreds of thousands of police hours freed up to attend burglaries or incidents of domestic abuse.

According to the Office for Budget Responsibility, returning to levels of productivity pre-pandemic could save £20 billion a year. This will help manage the size of the state in the long term, whilst maintaining public service quality and delivering savings for taxpayers.

Today’s announcement marks the first step towards delivering these savings. Over 130,000 patients a year, including those waiting for cancer results, will receive their test results sooner as a result of over one hundred MRI scanners in England being upgraded with Artificial Intelligence designed to recognise patterns in scans through machine learning which will cut scan times by over a third.

The government also plans to repeat the success of Violence Reduction Units which together with the Grip hot spot policing programme are estimated to have prevented 3,220 hospital admissions from violent injury and stopped 136,000 violent offences since 2019. We are committing £75 million over 3-years to expand the Violence Reduction Unit model across England and Wales, supporting a prevention first approach to serious violence.

Plans are also underway to deliver on the Police Productivity Review which found that up to 38 million hours of officer time could be saved every year. If just a fraction of this time, 500,000 officer hours, was saved then police officers in England could attend an additional 250,000 incidents of domestic abuse or over 300,000 burglaries.

To help get these police officers back to these frontline tasks, over £230 million will fund the rollout of time-saving technology including funding automated redaction of personal information such as name badges in shoplifting incidents, irrelevant faces from body worn cameras and number plates from video evidence.

Interviewing witnesses and victims via video call to improve speed of service; piloting the use of drones as first responders in some police incidents like traffic accidents, to feed information back to first responders on the seriousness of the incident and the resource required; and using AI to triage 101 calls to get members of the public the right support faster.

Today’s plan represents a total £800 million investment by 2029 to deliver £1.8 billion worth of productivity benefits.

This includes:

• Saving up to 55,000 hours a year of administrative time in the justice system through digitising jury bundles, new software to streamline probation decisions and provide probation officers with more robust data on whether offenders are safe to release. £170 million will be invested into the justice system to support this.
• Reducing Local Authority overspends on children’s social care places across England by making 200 additional child social care places available and reducing local government reliance on costly emergency places for children. £165m of funding will be used to create the additional places to help tackle last year’s overspend of £670 million.
• Saving £100m for the public purse by reducing fraud thanks to expanding the use of AI across government to make it easier to spot and catch fraudsters, funded by £34m.
• Accelerating delivery of DWP’s existing programme to modernise DWP services and move away from paper-based communications. This will be funded through a £17m commitment.
• Cutting the time it takes for planning officers to process applications by 30% through a new AI pilot.
• Ensuring more children with additional needs get the support they need to thrive through a £105m to fund an additional wave of 15 special free schools.

Further information:

• In the OBR’s November 2023 Economic and Fiscal Outlook they said: ‘Raising public sector productivity by 5 per cent would be the equivalent of around £20 billion extra in funding.’
• VRU’s enable local public services such as health boards, schools and police leaders to coordinate their joint strategy to tackle serious violence among young people.
• Allocations for 20 VRUs in 2023/24 can be found here: Serious violence: funding allocations – GOV.UK (www.gov.uk)
• The most recent evaluation of VRUs can be found here: Violence Reduction Units 2022 to 2023 – GOV.UK (www.gov.uk)
• We saw productivity growth of 9.1% in 2021, and 2.9% in 2022. We expect to see the public sector return, and then exceed, levels of productivity pre pandemic. This would save £20 billion, helping us manage the size of the state in the long term, whilst maintaining public service quality.
• The government will provide £45 million match funding to local authorities to build an additional 200 open children’s home placements, and invest £120 million to fund the maintenance of the existing secure children’s home estate and rebuild Atkinson Secure Children’s Home and Swanwick Secure Children’s Home.

The press release issued by HM Treasury on 29 February 2024.

The Chancellor has announced that Clare Lombardelli will succeed Ben Broadbent as the next Deputy Governor for Monetary Policy (DGMP) at the Bank of England.

His Majesty The King has approved the appointment.

Clare will take up her role at the Bank on 1 July 2024 for a term lasting five years.

As the new Deputy Governor for Monetary Policy, Clare will be responsible for overseeing the formulation and implementation of UK monetary policy and will lead the Bank’s research, data and analytics.  Clare will be a member of the Monetary Policy Committee, the Financial Policy Committee, the Court of the Bank of England, and will be part of the Executive Team charged with running the Bank to deliver its statutory objectives.

Clare will lead the actions in response to Ben Bernanke’s review of the Bank’s forecasting process, commissioned by the Bank’s Court of Directors. She will also be responsible for the Bank’s research agenda; will drive forward, jointly with the Bank’s Chief Operating Officer, an ambitious new data and analytics strategy; and will lead the Centre for Central Banking Studies that works closely with other parts of the UK Government to provide technical assistance to overseas central banks. Clare will represent the Bank on a number of national and international bodies.

Clare will succeed Ben Broadbent, who has served since 2014.

Jeremy Hunt, Chancellor of the Exchequer, said:

“I am delighted to appoint Clare Lombardelli as the next Deputy Governor for Monetary Policy at the Bank of England. Clare brings significant experience to the role tackling financial and economic issues both domestically and internationally.

“I would like to thank Ben for his decade of service as Deputy Governor of Monetary Policy at the Bank of England. Ben has played a vital role in helping the Bank maintain monetary and financial stability and I wish him the best in the next stage of his career.”

Andrew Bailey, Governor of the Bank of England, said:

“I’m really pleased to welcome Clare Lombardelli back to the Bank as Deputy Governor for Monetary Policy. Clare’s impressive career means she brings a huge amount of relevant experience and expertise to the Monetary Policy Committee, and the Bank more broadly, at a time of great importance for the UK economy.

“I would also like to thank Ben Broadbent for his service. He will be missed, and all at the Bank wish him the very best for the future.”

About the appointment

The Bank of England is the central bank of the UK. It is governed by the board of directors known as the Court. Further information can be found at the Bank of England website.

The Deputy Governor for Monetary Policy is appointed by His Majesty the King, on the recommendation of the Prime Minister and the Chancellor of the Exchequer.

The role is subject to pre-commencement scrutiny by the Treasury Select Committee.

Public appointments are made on merit following a fair and open competition process.

About Clare Lombardelli

Clare is the Chief Economist of the OECD where she is responsible for economic research and forecasting, analysis of OECD member and partner countries and represents the organisation at the G20, G7 and other international bodies.  Prior to this, Clare was the Chief Economic Advisor to the Treasury and joint head of the Government Economic Service.  Clare started her career at the Bank of England and has also worked at the International Monetary Fund.

The press release issued by HM Treasury on 28 February 2024.

The takeaway owner applied for a Bounce Back Loan and did not use the funds as declared in his application.

• Zaman Shaa fraudulently secured a £30,000 Covid Bounce Back Loan during the pandemic
• He illegally applied to dissolve his business and failed to inform creditors of his actions
• Shaa was handed a suspended sentence, banned as a company director for two years, and ordered to pay costs of £6,000

An Indian takeaway owner who used the funds from a Covid Bounce Back Loan for his own personal gain and ignored company law has been sentenced.

Zaman Shaa was sentenced to 36 weeks in prison, suspended for 18 months, when he appeared at Winchester Crown Court on Friday 23 February.

He was ordered to pay £6,000 in costs, at a rate of £250 per month, at the same hearing.

The 53-year-old was also disqualified as a company director for two years.

Pete Fulham, Chief Investigator at the Insolvency Service, said:

Zaman Shaa exploited a scheme intended to help businesses during a national emergency for his own personal gain.

His actions cannot simply be dismissed as something he did in the spur of the moment. They required a degree of planning and sophistication over a number of weeks to execute.

The sentence and disqualification order for Shaa demonstrate we will not hesitate to take action against directors who have abused Covid financial support in such a manner.

Shaa, of Woodside Road, Salisbury, applied for a £30,000 Bounce Back Loan in August 2020 when he was the director of Shaa Ventures Ltd.

His company used to manage the Chutneys Indian takeaway on Estcourt Road, Salisbury.

Shaa broke company law before securing the loan by applying to dissolve his business, even though it had been trading in the previous three months.

He also failed to fulfil his legal requirement to inform creditors that he had applied to dissolve the company.

Insolvency Service analysis of Shaa’s transactions indicated he transferred the funds into his personal accounts, sent some of the money abroad using a remittance service, and withdrew significant amounts in cash.

The disqualification order prevents Shaa from becoming involved in the promotion, formation or management of a company, without the permission of the court before February 2026.

Shaa no longer has any involvement at the takeaway.

Further information

• Zaman Shaa is of Woodside Road, Salisbury. His date of birth is 1 July 1970
• Sentenced for: Unlawful application for voluntary strike off, contrary to section 1004 of the Companies Act 2006; Failure to inform a creditor of striking off application, contrary to section 1007 of the Companies Act 2006; Fraud by false representation, contrary to section 2 of the Fraud Act 2006
• Shaa Ventures Ltd (11320134)

The press release issued by HM Treasury on 19 February 2024.

Six ground-breaking projects including an investigation looking at how endometriosis impacts women in the workplace have been awarded £12.4 million, the government has announced today, Tuesday 12 September.

• £12.4 million awarded to six innovative new projects to understand barriers to getting into work
• projects include investigating the impact of endometriosis on women’s work choices and how programmes to reduce obesity and type 2 diabetes can improve workforce participation
• funding will help overcome barriers facing those who need the most support getting into work

The projects comprise the first round of the Labour Market Evaluation and Pilots Fund, and take place over the next two years. The results will help to transform the government’s approach to the jobs market and drive forward research into best practice in employment.

While the UK’s employment rate is higher than a number of other advanced economies, the government is committed to ensure that those who most need help getting into the workplace are supported.

The Chancellor announced a range of interventions to address this at Spring Budget 2023 – including a significant expansion of childcare support, making 30 hours of free childcare a week available to parents from children aged 9 months. The Labour Market Evaluation and Pilots Fund is part of that and will be used to test new approaches and generate better evidence to help specific groups back into work or to work longer hours.

Financial Secretary to the Treasury, Victoria Atkins, said:

“Our jobs record is incredibly strong, with high employment that means millions of people are benefiting from work. But for some, that’s not happening.

“We need to look for solutions that are tailored to help people thrive in the jobs market. This analysis is the first step towards that – looking at specific health conditions or living arrangements to find out what works to help people work.”

Minister for Social Mobility, Youth and Progression Mims Davies MP said:

“The vital opportunities and confidence employment gives, helps to transform lives. This is why we are determined to support all those who want to progress to do so, while also driving down inactivity and importantly growing the economy.

“This key new funding for our pilots will enable us to support even more people to move forward in work, including vitally those in supported accommodation and more disadvantaged communities, to help people to break down any barriers to work, so more people can fulfil their employment potential.”

National Statistician, Sir Ian Diamond, said:

“The ONS welcomes the opportunity to shine light on this important area with these projects. This new analysis will provide crucial insight for decision makers in helping to understand how health conditions impact on people’s working lives and what interventions can help people stay in work.”

Minister for the Women’s Health Strategy Maria Caulfield said:

“Endometriosis can be a debilitating condition that stops women and girls from living their lives to their fullest potential.

“Through the Women’s Health Strategy we have set an ambition for all women and girls with severe endometriosis to experience better care, with reduced waiting times for diagnosis and providing funding for key research into the condition.

“The support doesn’t stop at health, and today’s announcement demonstrates how we’re taking a cross-government approach to help women with endometriosis get back to living their best lives.”

One of the projects includes a first-of-its-kind Office for National Statistics (ONS) evaluation which will investigate the impact of endometriosis on women’s participation and progression in the workforce. Endometriosis can affect around 1 in 10 women, with symptoms including chronic pain and fatigue which can disrupt daily routines, fertility and mental health and time off work may be needed for coping with symptoms. Previous work has shown that women with the condition often take this into consideration when making career choices, including the likelihood they will need to take significantly more sick leave. This project will improve understanding and help inform government plans to support women with the condition in their careers.

A second project by the ONS will evaluate whether programmes to reduce the risk of developing type two diabetes and obesity improve people’s ability to join the labour market. Around 3.8 million people in the UK have type 2 diabetes and 2.4 million are at high risk of developing the disease which can have a strong effect on quality of life, including the ability to work. The evaluation will include reviewing the impact of the Healthier You NHS Diabetes Prevention Programme (DPP), a large scale nine-month, evidence-based lifestyle change programme aimed at people at risk of developing type 2 diabetes.

There will also be a new pilot to address barriers to work faced by those aged 18-24 living in supported housing, which is accommodation provided alongside care, support or supervision to help people live as independently as possible in the community and can act as a pathway to transitioning into work.

To support young people in making that transition, DWP and the West Midlands Combined Authority (WMCA) have developed a Proof of Concept that will test financial support and simplification of the benefits system for 18-24 year olds living in supported housing who move into work or increase their working hours. This will help them to build their employment prospects further, work towards becoming financially independent and progress into move on accommodation in a planned way.

Funding will also be allocated to two HMRC projects to evaluate the impact of Tax-Free Childcare on parents’ work choices and women’s return to work after maternity leave. In addition, funding will be provided to DWP to trial employment support and rent incentives to move people out of work or on low earnings into work or onto higher earnings.

Further information

• At Spring Budget, the government announced a comprehensive employment package designed to remove the barriers preventing people from working and support them into the UK’s labour market, to boost economic growth, unlock the UK’s productive potential, and raise living standards. It is estimated to move 110,000 more individuals into the labour market by 2027-28, the largest supply-side policy adjustment the OBR have made to their forecast since 2010.
• Bids for the first round of the Labour Market Evaluation and Pilots Fund were assessed collaboratively by the joint HMT and Cabinet Office Evaluation Task Force.
• Further rounds of funding will be allocated in due course to evaluate new and existing labour market measures, move people into work and increase productivity. The results of these projects will inform future labour market policy.
• The Rent Simplification and Support Proof of Concept scheme is led by the Department for Work and Pensions and would mean young people in supported housing, who start work or increase their hours, would only have to pay up to a capped amount towards their rent (e.g. Local Housing Allowance equivalent rent amount) as opposed to the full rent liability.
• Jobs Plus is an innovative model that combines wrap-around support, intensive employment support and financial incentives in the heart of the community; reaching the most disadvantaged people whose access to employment and wider support is limited and disjointed.
• DWP will be testing Jobs Plus in England. The pilot assigns a key role for social housing providers to contribute to improving support and outcomes in some of our most socially and economically deprived communities. Delivered in a community hub setting, it is open to all residents; adopting a community-led approach which encourages residents to volunteer, champion, and drive engagement amongst their peers. Through the use of financial incentives, the pilot aims to not only support entry into employment but also aid in participant’s transition to wages to foster long-term positive and sustainable outcomes.
• For further information on government action to improve healthcare quality and access for women, please see the Women’s Health Strategy for England, and what we’ve achieved so far over the first year of the strategy.