Tag: Treasury

The press release issued by HM Treasury on 1 January 2024.

Women will save up to £2 on a £12 pair of period pants as the government scraps VAT on the underwear.

• Women to save up to £2 on period pants worth £12 as government scraps VAT today.
• Retailers, including M&S, Primark and Tesco, have committed to pass on the savings, worth 16%.
• Move follows scrapping of tampon tax in 2021, removing VAT from sanitary products, following the UK’s decision to leave the EU.

From today, 1 January 2024, women will save up to £2 on a £12 pair of period pants – up to 16% – as the government scraps VAT on the underwear.

The pledge to scrap the tax was made by the Chancellor Jeremy Hunt at the Autumn Statement 2023 and follows the end of the tampon tax in January 2021.

Around 80 MPs, charities and retailers called on the government to scrap the VAT in August 2023.

With Marks & Spencer spearheading the campaign, other retailers including Primark and Tesco have committed to pass the tax cut straight to the consumer.

Financial Secretary to the Treasury, Nigel Huddleston, said:

This is a victory for women across the UK and for the campaigners who’ve helped raise awareness of the growing importance of period pants.

It’s only right that women and girls can find more affordable options for what has become an essential and environmentally friendly product.

Since reforming the ‘tampon tax’, the market for period underwear has expanded and they are now a mainstream choice for many women. The scrapping of the current VAT will ensure that period underwear is treated the same as traditional period products.

Having left the European Union, the UK is no longer legally bound by EU laws which saw sanitary products subject to five different rates of VAT between 1973 and 2021.

The move comes after the ‘Say Pants to the Tax’ campaign, led by retailers such as Marks & Spencer, women’s groups and environmentalists, called to scrap the tax.

Victoria McKenzie-Gould, Corporate Affairs Director at Marks & Spencer, said:

Paying tax on period pants was a bum deal for women everywhere so we’re thrilled that the Treasury has done the right thing by axing the tax and levelling the playing field on period products for good.

Nearly 25% of women cite cost as a barrier to using period pants so we know the new legislation that comes into effect from today will make a big difference to women’s budgets across the UK.

A big thank you to WUKA, the tens of thousands of individuals, politicians, brand and retailers, who threw their weight behind our campaign – Say Pants to the Tax – and of course a big thank you to the Chancellor and HM Treasury team who made the change we were campaigning for a reality.

Women with sensory issues who find conventional period products difficult to use will also benefit from period pants becoming more affordable.

The savings for women are subject to the VAT cut being passed on, with the army of retailers behind the campaign pledging themselves to play their part to pass on the 20% VAT cut.

Laura Coryton, tampon tax campaigner and founder of social enterprise Sex Ed Matters, said:

Ending the tax on period underwear will make a huge difference, particularly given skyrocketing levels of period poverty across the UK. It will also help to tackle the stigma associated with periods, which stops at least 10% of girls going to school every month.

Now, it is important for retailers to pass savings on to consumers, not only in relation to period underwear, but all period products.

Further information

• Women’s Sanitary Products have been subject to five different tax rates since 1973. The UK first introduced VAT in 1973 with a standard rate of 10% applied to sanitary products. In 1974, standard VAT was cut to 8%, before rising to 15% in 1979 and 17.5% in 1991. The government moved sanitary products to a reduced rate of 5% in January 2001 following a campaign and debates in Parliament.
• Read the 50 retailers’ letter to the Financial Secretary to the Treasury from August 2023.

The press release issued by HM Treasury on 27 December 2023.

Thousands of customers filed their Self Assessment tax return on Christmas Day.

There were 4,757 customers who filed their Self Assessment tax return on Christmas Day, HM Revenue and Customs (HMRC) has revealed.

A day traditionally dominated by eating, drinking, and exchanging gifts saw a perhaps surprising number of customers also find time to go online and complete the essential job of filing their tax return for the 2022 to 2023 tax year, ahead of the 31 January 2024 deadline.

Over the three-day festive period, 25,769 customers submitted their tax return, an increase compared to the same period last year, with 8,876 filing on Christmas Eve and 12,136 on Boxing Day. The peak time was between 12:00 and 12:59 on Boxing Day, when 1,121 returns were received by HMRC.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

Our Christmas Day filers proved that there is no time like the present to get started on Self Assessment, and with our online tool it can be a simple task that’s easy to fit around other festive commitments. There’s no need to delay, getting it done ahead of the 31 January deadline means less stress and longer to work out payment options. Get started today by searching ‘Self Assessment’ on GOV.UK.

Customers can submit their tax return online, but they do not have to pay until 31 January 2024. However, those who file before 30 December may have the option of paying any tax owed through their PAYE tax code.

HMRC has a wide range of resources online including a series of video tutorials on YouTube, help and support on GOV.UK, to support customers in completing their tax return.

They can pay through the free and secure HMRC app. For a full list of ways to pay any tax owed, visit GOV.UK.

If customers cannot pay in full by the deadline, they may be able to set up a Time to Pay arrangement online if the amount owed is less than £30,000. There is a new affordability assessment for customers to enter their income and spending to calculate disposable income and set up an affordable payment plan.

Customers need to be aware of the risk of falling victim to scams and should never share their HMRC login details with anyone – even a tax agent, if they have one. HMRC scams advice is available on GOV.UK.

Further information

More information about Self Assessment.

The breakdown of figures for those who opted to file during the festive period are:

• Christmas Eve: 8,876 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 850 returns were received
• Christmas Day: 4,757 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 402 returns were received
• Boxing Day: 12,136 tax returns were filed – the peak time for filing was between 12:00 and 12:59, when 1,121 returns were received

During December and January, the HMRC helpline is supporting customers who have queries about Self Assessment payments, refunds and who need help completing their tax return.  For all other queries go online where you’ll find guidance, videos and tools that will help you. Go to GOV.UK and search ‘Self Assessment’.

HMRC has lots of information and support available online which includes:

• HMRC’s digital assistant – the assistant will help you find information, and if you can’t find what you’re looking for you can ask to speak to an adviser. You can also access the digital assistant via the HMRC app
• guidance notes and help sheets and YouTube videos provide a wealth of information if you’re stuck or confused
• live webinars where you can ask questions or if you can’t join, you can watch recorded webinars on demand
• technical support for HMRC online services for help signing into online services
• email updates – sign up to HMRC email updates so you don’t miss out on the latest information on Self Assessment
• social media updates – follow HMRC X (formerly Twitter) @HMRCcustomers to get the latest updates on Self Assessment services and useful reminders
• if you need extra support to help your with Self Assessment you can contact a voluntary or community sector organisation who can provide you with help and advice, or you can get support directly from HMRC

The small minority of customers who require extra support or struggle to engage with us digitally can still speak to an adviser.

Customers are reminded to include their bank account details on their tax return so they can get any repayment due quickly and securely.

It is important that customers let HMRC know of any changes to their circumstances. Customers can use the HMRC app to update their details including a new address or name. Customers also need to let us know if they’ve stopped being self-employed or need to change their business details. This can be done online at GOV.UK.

The press release issued by HM Treasury on 27 December 2023.

The Chancellor Jeremy Hunt has commissioned the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to Parliament alongside his Spring Budget on 6 March 2024.

The press release issued by HM Treasury on 21 December 2023.

• Chancellor Jeremy Hunt signs the Berne Financial Services Agreement – a ground-breaking pact on financial services cooperation

• UK businesses to provide financial services to the Swiss domestic market, and vice versa, more easily

• Berne Financial Services Agreement provides access to the Swiss market that no other country will have, while also providing certainty for businesses and upholding high standards of regulation

Chancellor Jeremy Hunt has today (21 December) signed the Berne Financial Services Agreement, a first of its kind pact on financial services cooperation, with his Swiss counterpart Karin Keller-Sutter.

The agreement sets sectors where the UK and Switzerland will mutually recognise each other’s domestic laws and regulations on financial services, making it easier for corporate and high net worth clients in the two markets to do business with each other.

The Berne Financial Services Agreement enables the frictionless, cross-border provision of financial services between the UK and Switzerland across areas such as asset management, banking, and investment services. For certain sectors it means that a firm based in the UK will be able to serve clients in Switzerland while largely following UK rules, and vice versa.

The agreement also secures unique access for British insurance brokers to the Swiss market. From the start of 2024, Switzerland will require any non-Swiss firms to establish a base in the country before serving Swiss clients. The UK will be the only country in the world not required to do this, putting British brokerage firms at a significant advantage to international competitors as they can continue to do business as they always have done.

Jeremy Hunt, Chancellor of the Exchequer, said:

“The Berne Financial Services Agreement is a global first and builds on the UK and Switzerland’s strengths as two of the world’s largest financial centres.

“It cements open access for financial services between our two nations for decades to come, helping us grow the economy and serving as a blueprint for future agreements with other key trading partners.”

The Berne Financial Services Agreement will make open access in financial services legally binding between the UK and Switzerland for decades to come, all while maintaining high standards of regulation, market fairness and investor protection. Both countries will also have the freedom to revise or introduce new domestic regulation as they see fit.

The agreement provides an opportunity for the UK and Switzerland to work together to strengthen international financial standards. It will also help level the playing field for some smaller firms, who will no longer have to invest time and money in navigating unfamiliar Swiss rules.

Financial advisors will also benefit. British financial advisers to high-net-worth individuals will no longer need to be registered by Swiss registration bodies to serve Swiss clients. This will remove requirements to sit Swiss examinations or provide documentation evidencing suitability, cutting red tape for the UK’s financial advisory industry.

The Berne Financial Services Agreement is only possible due to new freedoms granted to the UK following its exit from the European Union. The agreement will enhance the UK and Switzerland’s already thriving financial services relationship. Between 2016 and 2022, UK trade in financial and insurance services with Switzerland grew by 53% – reaching £3.28 billion in 2022.

The UK financial services sector is a significant contributor to the domestic economy and was valued at approximately £254 billion in the four quarters to Q2 2023. In 2020, around 40% of financial services to Switzerland were exported from UK regions outside of London and the South East, and two out of three jobs in financial services are based outside of London. This means that the benefits of the Berne Financial Services Agreement will be felt across the UK, bolstering jobs and growing the UK economy.

Separate to the Berne Financial Services Agreement, the UK is also currently negotiating an enhanced Free Trade Agreement with Switzerland that will boost ties and cover the full range of trade between the two countries.

Business and Trade Secretary Kemi Badenoch said:

“This is just the latest deal we have struck with Switzerland to help our world-leading UK financial services companies access this lucrative market and grow UK-Swiss trade in services.

“This deal complements the work we’re doing with Switzerland to agree a new, modernised free trade agreement and will help the UK reach our goal to export a trillion pounds of goods and services a year by 2030.”

Miles Celic, chief executive officer, TheCityUK, said:

“The Berne Financial Services Agreement marks a significant milestone for two of the world’s leading international financial centres. This innovative framework not only simplifies engagement in financial services, reduces barriers, and enhances efficiency, but it also strengthens market confidence and fosters innovation.

“It establishes a new and ambitious benchmark for how major financial centres can collaborate to establish gold-standard agreements, contributing to a more resilient, competitive, and interconnected global financial landscape.

“We look forward to continued collaboration with businesses and governments in both countries to ensure this agreement is effectively implemented across our industry.”

Joe Cassidy, partner, financial services, KPMG; chair, TheCityUK Switzerland Market Advisory Group, said:

“The Berne Financial Services Agreement is a historic deal shaped by collaboration between governments, regulators, and industry leaders in both countries. It also paves the way for enhanced cooperation between other major global markets.

“As an industry, our immediate focus is on its full and effective implementation, alongside negotiating an innovative and complementary UK-Swiss Free Trade Agreement. An FTA with provisions for mobility, mutual recognition of professional qualifications and digital services will significantly enhance the MRA and set the standard for the second-country model in financial services regulatory cooperation.”

David Postings, chief executive, UK Finance, said:

“The UK-Switzerland Mutual Recognition Agreement is a landmark agreement. Given it’s been drafted specifically for the financial services sector, the market access provisions and measures aimed at removing regulatory barriers go much further than those normally included in trade deals. The innovative agreement sets an ambitious precedent and we hope it will serve as the new standard for future deals with other financial centres around the world.”

Denis Vangelatos, regulatory risk and international trade sanctions director – EMEA, Aon, said:

“The Berne Financial Services Agreement represents a fantastic opportunity for the UK and Swiss insurance sectors to continue to cooperate and flourish using a dynamic and forward-looking outcomes based approach to regulation.

“This new approach not seen in other trade agreements will foster innovation, increase market access, reduce cross border friction and, through mutual recognition, create a deep and trusted partnership for two of the world’s leading financial centres.”

Chris Hayward, policy chairman of the City of London Corporation, said:

“This is a great day for the UK’s and Switzerland’s financial services sectors. The Mutual Recognition Agreement will deliver huge benefits for firms in terms of increased market access and stability enhancing commitments. This will help to boost cross-border investment, jobs, growth and competitiveness in both our countries.

“We hope the MRA sets a template for the UK’s future trading relationships, helping contribute to setting new rules and standards in the vital industries of the future including tech, creative industries and digital trade in the 21st century.”

For more information, read the full text of the agreement and explanatory material.

The press release issued by HM Treasury on 20 December 2023.

New interactive tool launched today (20 December 2023) to help businesses and charities spot and tackle domestic economic abuse.

• UK government launches interactive tool to help businesses and charities spot and tackle domestic economic abuse
• Victims of domestic abuse are at an increased risk around Christmas with reports to police forces in England and Wales rising by 25%
• Launch delivers on government pledge in summer to transform HMRC internal guide into a public facing resource, and coincides with £12 million of support at Autumn Statement for tackling domestic abuse

The UK government has today [Wednesday 20 December 2023] launched a free interactive guide to help businesses spot and tackle domestic economic abuse.

Survivors of domestic abuse are at an increased risk around Christmas and, on average, it is reported that police forces in England and Wales receive over 100 calls relating to domestic abuse every hour, and around 95% of domestic abuse victims experience economic abuse. During the Christmas period, the number of calls can rise by 25%.

The new tool, available on GOV.UK, aims to help call handlers at businesses and charities recognise abuse when speaking to customers and clients. Specialist charities such as Surviving Economic Abuse will be on standby to offer training to interested organisations.

Financial Secretary to the Treasury, Nigel Huddleston, said:

We’ve made economic abuse punishable by law, but it’s just as important that we provide the support needed to help victims escape dangerous situations.

That’s what today’s toolkit is about – the more organisations that use it, the faster we can help bring an end to abuse at home.

In summer this year, the government announced there would be a new interactive tool to help trained advisers in businesses and charities spot and tackle economic abuse. Since then, HMRC has worked closely with Surviving Economic Abuse holding workshops with charities and financial services firms to develop the tool and help get this right.

Based on a caller’s response, a trained call handler will navigate through the interactive tool to help identify potential victims. This will support the handler to decide what help the organisation might be able to offer the customer as well as provide details of relevant charities and support networks.

The launch coincides with £12 million of support for charities working with victims of domestic abuse, announced last month by the Chancellor at the Autumn Statement, helping to tackle abuse at home and help survivors rebuild their lives.

Dr Nicola Sharp-Jeffs OBE, CEO and founder of Surviving Economic Abuse, said:

Economic abuse, where an abuser controls money and the things money can buy, is a devastating form of domestic abuse. It makes it harder for victim-survivors and their children to leave and rebuild their lives safely. Reporting abuse can be intimidating, so it’s important that whoever a victim-survivor reaches out to for help – the police, a bank manager, supermarket cashier or call handler – they can give a supportive response.

We’re pleased the Treasury has launched this toolkit to support businesses to play their role in bringing economic abuse out from behind closed doors and supporting survivors to take safe steps to freedom. It’s vital that employers are properly trained in spotting the signs of economic abuse and confidently signposting to specialist support. The right response will be life changing.

Economic abuse, which Surviving Economic Abuse estimates one in five women in the UK have experienced in the last 12 months, is when an individual’s ability to acquire, use and maintain economic resources are taken away by someone else in a coercive or controlling way.

Surviving Economic Abuse research found seven in ten front-line professionals reported the number of survivors of economic abuse coming to their organisation for help had increased since the start of the pandemic. By the end of the first Covid-19 lockdown, the charity found one in five women were planning to seek help around welfare benefits.

Tackling domestic abuse is a government priority and improving the response to economic abuse is integral to this. For the first time in history, economic abuse is now recognised in law as part of the statutory definition of domestic abuse included in the Domestic Abuse Act 2021. This is in recognition of the devastating impact it can have on victims’ lives.

Further information

• If you would like to find out more about the interactive tool, please visit Public Sector Toolkits – GOV.UK.
• Today’s tool, and HMRC’s internal guidance, builds on the government’s Economic Abuse Toolkit which launched in January 2023 aimed at the public sector.
• If you are worried you might be experiencing economic abuse or a family member or friend might be, visit the Surviving Economic Abuse website for further information on accessing support.

The press release issued by HM Treasury on 19 December 2023.

The UK is to implement a new import carbon pricing mechanism by 2027 to support the decarbonisation drive.

• imports of iron, steel, aluminium, ceramics and cement from overseas will face a comparable carbon price to those goods produced in the UK
• reduces the risk of ‘carbon leakage’, avoiding emissions being displaced to other countries because they have a lower or no carbon price

Goods imported into the UK from countries with a lower or no carbon price will have to pay a levy by 2027, ensuring products from overseas face a comparable carbon price to those produced in the UK.

The UK has a track record to be proud of on decarbonisation. We were the first major economy to legislate for net zero and we are reducing our emissions faster than any other G7 country.

Decarbonising UK industry forms an important part of delivering the energy transformation needed to achieve net zero. But these efforts will not succeed if decarbonisation in the UK simply leads to higher emissions abroad.

The carbon border adjustment mechanism (CBAM) will ensure highly traded, carbon intensive products from overseas in the iron, steel, aluminium, fertiliser, hydrogen, ceramics, glass and cement sectors face a comparable carbon price to those produced here.

The new rules will tackle ‘carbon leakage’, reducing the risk of production and associated emissions being displaced to other countries because they have a lower or no carbon price. Carbon leakage undermines the country’s efforts to decarbonise as the world transitions to net zero.

The charge applied by the CBAM will depend on the amount of carbon emitted in the production of the imported good, and the gap between the carbon price applied in the country of origin – if any – and the carbon price faced by UK producers.

Taking this action will ensure the environmental integrity of our decarbonisation policies and will give industry in the UK the confidence to continue to invest in decarbonisation, with the knowledge that it will result in a true net reduction in global emissions.

Chancellor of the Exchequer Jeremy Hunt said:

This levy will make sure carbon intensive products from overseas – like steel and ceramics – face a comparable carbon price to those produced in the UK, so that our decarbonisation efforts translate into reductions in global emissions.

This should give UK industry the confidence to invest in decarbonisation as the world transitions to net zero.

Today’s news comes as the government publishes its response to a consultation on a range of domestic carbon leakage mitigation measures – which found 85% of respondents said that carbon leakage is a current or future risk to their decarbonisation efforts. This is because not all jurisdictions are moving at the same pace with the risk that UK emissions reductions do not translate into global emissions reductions, but rather that UK emissions get displaced to other less climate ambitious countries. The action announced today will help address that risk.

The design and delivery of the CBAM will be subject to further consultation in 2024, including the precise list of products in scope. The government will also engage with trade partners, including developing countries, and affected businesses and organisations, to minimise the impact on trade and the necessary compliance steps.

Alongside a CBAM, the government is also announcing its intention to work with industry to establish voluntary product standards that businesses could choose to adopt to help promote their low carbon products to customers; and to develop a framework which measures the carbon content of goods, that could support other decarbonisation policies in future.

And today, in addition to the government announcing a UK CBAM, stakeholders including power, aviation and industrial sectors have been invited to offer their views on proposed changes to the UK Emissions Trading Scheme, that will ensure it continues to support the UK’s progress to net zero.

A CBAM will work alongside the UK Emissions Trading Scheme to mitigate the risk of carbon leakage. The ETS Authority is consulting how to better target free allocations of carbon allowances for industries most at risk of carbon leakage, under the ETS. The Authority will also review whether free allocation should be adjusted to reflect any changes to carbon leakage risk for given sectors.

It is also setting out plans to ensure the ETS market continues to offer an effective financial incentive that drives its participants to decarbonise, following a call for evidence last year, with industries being asked for their view a range of potential measures – including on the design of a new Supply Adjustment Mechanism.

The government remains committed to supporting industry to decarbonise including with the Industrial Energy Transformation Fund, the Net Zero Innovation Portfolio and £20 billion investment in development of carbon capture and storage.

Stakeholder reaction

Ruth Herbert, Chief Executive, The Carbon Capture & Storage Association said:

“Fantastic to see today’s commitment to a Carbon Border Adjustment Mechanism, which is a good starting point for tackling carbon leakage on the most carbon intensive products.

“This will help some UK manufacturers to invest in low carbon technologies such as Carbon Capture, Utilisation and Storage (CCUS), to develop new low carbon products, without fear of being undercut by producers elsewhere.

“This is a smart move, given the UK’s geological assets and technical capabilities, which mean it has a clear advantage in the transition to a global net zero economy.  The details of this policy will need to ensure that exports are not disadvantaged, and that other sectors, such as refining or electricity production can benefit, as many are ideally situated in industrial clusters where they can deploy CCUS.

Combined with the UK government’s recent announcement at COP28, alongside Canada, Germany and the US, to use public procurement to buy low carbon steel, cement and concrete, this is very welcome news to those who are trying to develop the low carbon industries of the future.

“It is also an important step for the long-term development of the UK CCUS industry, alongside further deployment measures, which we hope to see in the government’s ‘CCUS vision to 2035’ later this week.”

William Bain, Head of Trade Policy, the British Chambers of Commerce, said:

“News of a carbon border adjustment mechanism (CBAM) for the UK is very much welcome. It is a logical and key enforcement element of lowering carbon emissions in the UK economy and tackling greenhouse gas releases elsewhere in the world.

“Today’s decision will provide certainty for investors and aid future growth and investment in low carbon sectors. We are keen to work closely with government and industry on the arrangements for phasing in the UK CBAM by 2027.

“A key issue will be the linkage of the UK and EU Emissions Trading Schemes (ETS), so that we avoid unnecessary trade and fiscal barriers for UK goods exports.”

Clare Jackson, Chief Executive Officer, Hydrogen UK:

“Hydrogen UK supports the introduction of this Carbon Border Adjustment Mechanism (CBAM). Carbon Pricing is one of the key tools available to accelerate decarbonisation and ensure polluters pay the price of their emissions. Historically, implementing an effective carbon price has been challenging due to the risk of industries relocating to regions without strong climate policy.

“The CBAM will reduce this carbon leakage risk and ensure the UK can charge a strong price for emissions, incentivising the switch to low carbon energy such as hydrogen, while protecting UK industry from cheap imports.”

John Egan, Peak Cluster Project Director said:

“Peak Cluster will decarbonise 40% of the UK’s cement and lime production by 2030.  An environmental and economic imperative, the project is essential for a sustainable construction sector in this country.

“We welcome the decision to implement a CBAM as a very positive step in encouraging investment into essential industrial decarbonisation.”

Stephen Phipson, Chief Executive of Make UK, said:

“This is welcome news for Energy Intensive Industries and a key recognition of the need to secure the competitiveness of key foundation industries. However, it is now essential this scheme is implemented as soon as possible to align with EU timescales and ensure a level playing field to prevent potential carbon price discrepancies.

“The Government should also look to adopt a flexible approach to its application as each sector and, material, has specific circumstances relating to their respective markets.

“Government must now engage with all stakeholders in manufacturing, including the supply chain, to ensure a comprehensive approach towards achieving environmental goals without imposing a pre-determined solution.

“Mitigating carbon leakage should provide clarity and long-term certainty to businesses, enabling them to invest and grow.”

The press release issued by HM Treasury on 14 December 2023.

HM Treasury has confirmed the appointments today.

HM Treasury has today (14 December) confirmed that Chris Grigg CBE has been reappointed as chair of the UK Infrastructure Bank (UKIB) for a further 3 years from 3 May 2024 and Muriel Dube has been appointed to the Board at UKIB as non-executive director for 4 years from 14 December 2023. Ms Dube will also take over as chair of the Remuneration Committee in due course following a handover period. The current interim chair, Tania Songini, will continue in the role on an interim basis until Ms Dube takes on the role.

The bank is a vital part of the government’s commitment to supporting private investment in UK infrastructure. High quality infrastructure is crucial for economic growth, achieving net zero and levelling up regions across the UK. Private investment in infrastructure is critical to these goals, and the bank’s remit of crowding-in private finance is an important tool to help secure that investment.

Chris Grigg CBE was the chief executive officer of British Land, a real estate development and investment company, for 11 years until November 2020. Previously, Mr Grigg was chief executive of Barclays Commercial Bank and a partner at Goldman Sachs. He has served on the Board of BAE Systems since 2013 – where he is currently the senior independent director – and is on the corporate board of Cancer Research UK.

As chair since 2021, Mr Grigg has overseen the scale-up of the bank through a critical stage in its lifetime. Mr Grigg’s experience and stewardship as chair continues to be vital in supporting it to become a mature and established organisation.

Muriel Dube is a former investment banker at Investec Plc and has over two decades executive and non-executive director experience. Before this, she served as a director in the Department of Environmental Affairs and Tourism (South Africa), as chief negotiator for the South African Government in major international climate negotiations and as the Africa representative on the United Nations Expert Group on Technology Transfer. Alongside serving on the board at UKIB, Ms Dube also currently serves as a director on the boards at Control Risks, Sasol Group Ltd, PG Group and Bravo Group.

Gareth Davies MP, Exchequer Secretary to the Treasury said:

“I congratulate Chris Grigg CBE and Muriel Dube on their appointments to the board of the UK Infrastructure Bank. The government-owned bank plays a critical role in the government’s commitment to support private investment in the country’s infrastructure and deliver our ambitions for net zero and economic growth across all parts of the UK. An effective board is critical to the success of the bank and I am confident that Chris and Muriel will support the continued success of the bank.”

Chris Grigg CBE said:

“I am delighted to be reappointed chair of the UK Infrastructure Bank. The bank has made remarkable progress since it was set up, in its mission to boost regional and local economic growth and to help tackle climate change. We have become an organisation which can both commit capital and help provide solutions to the big challenges ahead. Of course, much remains to be done. I look forward to helping deliver on the bank’s mission at a critical time for the UK.

“I am likewise very pleased to see the appointment of Muriel Dube to the UKIB board. Muriel brings a wealth of global experience and a new perspective. Her support for the bank will be invaluable as it seeks to deliver against its mission.”

Muriel Dube said:

“It is a huge privilege to accept this role with the UK Infrastructure Bank. The bank’s mission to deliver economic growth across the UK and tackle climate change is vital and compelling, and I am excited to take this opportunity to support the bank to deliver.”

About the Appointment Process:

Chris Grigg CBE has been reappointed for a further 3-year term following the provisions of his original appointment, having met required performance standards and with the agreement of ministers. The chair role is a non-executive part-time position.

Mr Grigg has confirmed that he has not undertaken any political activity within the previous five years including donating to, or canvassing on behalf of, any political party.

Muriel Dube was appointed following a fair and open competition after the role was advertised on the Cabinet Office Public Appointments website between 25 April and 18 May. An advisory assessment panel chaired by Chris Grigg (Chair, UKIB) and also consisting of Tim Jarvis (Director of Companies and Economic Security, HM Treasury) and Robin Lawther (multiple non-executive director positions, independent panel member) interviewed a number of candidates and made recommendations to the Economic Secretary to the Treasury, which informed the selection decision.

Ms Dube has confirmed that she has not undertaken any political activity within the previous five years including donating to, or canvassing on behalf of, any political party.

The press release issued by HM Treasury on 8 December 2023.

Economic Secretary to the Treasury Bim Afolami is today announcing further changes to financial services as he marks the anniversary of the Edinburgh Reforms.

• Proposals to help provide support to consumers with their financial decision-making to be the next step in Edinburgh reforms, as Economic Secretary Bim Afolami visits the city to mark a year since their launch.
• Building on the progress made this marks the delivery of the 22nd of the 31 reforms, with plans in place to deliver on the last nine reforms.
• The inaugural Scottish-London Financial Services Forum takes place as Minister also meets with Morgan Stanley in Glasgow.

Economic Secretary to the Treasury Bim Afolami is today (8th December) announcing further changes to financial services as he marks the anniversary of the Edinburgh Reforms with a two-day trip to Scotland.

In the year since the launch of the Edinburgh reforms, the government has already delivered 22 of the 31 reforms including legislation which will overhaul the UK’s regulation of prospectuses, the information available to investors when a firm raises capital and bringing forward secondary legislation to take advantage of the UK’s newfound regulatory freedoms since leaving the EU through the implementation of the Wholesale Markets Review reforms. These changes mean the government is taking forward its ambition for the UK to be the world’s most innovative and competitive global financial centre.

Building on the reforms, the government and Financial Conduct Authority (FCA) has today published a policy paper as part of the joint Advice Guidance Boundary Review, outlining initial proposals for reform to help improve consumer access to support with financial decision making. Currently, there is an ‘advice gap’ between holistic financial advice that is unaffordable for many, and guidance that is free to access but not personal to the consumer. This excludes people with modest investments, leaving them without the tools necessary to reap the significant benefits offered by our world-leading financial services sector.

The government has also today published its response to the Call for Proposals, which sought views on the additional metrics that the FCA and the Prudential Regulation Authority should report against, as part of work to embed their new growth and competitiveness objectives. The regulators have agreed to publish a series of new metrics, which will support scrutiny of their work.

Economic Secretary to the Treasury, Bim Afolami today said:

“My number one priority in this role is to deliver on The Edinburgh Reforms. The reforms have shown the UK’s dedication to fostering a sensible, innovative and robust financial landscape – over the past year we’ve made significant strides towards creating an environment that supports economic growth, openness, and the well-being of savers.

“Already companies worldwide are taking note of the UK’s approach, and we will continue to deliver on our reforms as we make the UK the best place in the world to create and grow a business.”

Miles Celic, Chief Executive Officer, TheCityUK, said:

“The Edinburgh Reforms – and the subsequent Mansion House Reforms – were a positive signal of the government’s commitment to maintaining the UK’s competitiveness as a leading international financial centre. As we progress this important reform agenda, it is critical that government, industry and regulators work together to drive forward the implementation of the reforms and to deliver nationwide economic growth by bolstering the attractiveness of the UK as a place to list, invest, innovate and scale.”

The Minister also held a series of roundtables on asset management and fintech in Edinburgh and visited Morgan Stanley offices in Glasgow. Since 2000 Morgan Stanley’s office has grown from just six people to now employing more than 1,400 people. Edinburgh is currently the largest financial services hub in the UK outside of London, worth more than £14 billion to the UK economy and employing around 136,000 people.

Today is also the first Scottish-London FS forum – chaired by the Economic Secretary in Edinburgh – emphasising the government’s commitment to economic growth and the importance of the Scottish financial sector in supporting this.

At the recent Autumn Statement, the Chancellor announced further advancements in delivering on the Edinburgh Reforms and Mansion House commitments including ambitious steps to increase the flow of capital to promising growth companies while simultaneously improving outcomes for savers and measures to enhance the UK’s financial services regulatory environment.

The trip is the Economic Secretary’s first trip to Scotland since his appointment, he said:

“Edinburgh is a key part of our financial services landscape, and it was really important to me to come and see some of the great work being done here within the first month of my appointment. Scotland is known for its innovation and ingenuity and I’m sure this will be the first of many such visits.”

Sandy Begbie CBE FRSE, Chief Executive, Scottish Financial Enterprise, said:

“We are delighted to welcome the Economic Secretary to the Treasury to Edinburgh for the launch our new UK Government forum – another important recognition of the vital contribution of Scotland’s financial services industry to the UK economy.

“The forum will be an opportunity to discuss our new sector growth strategy, which aims to harness our global leadership in areas like asset management, fintech, and green and sustainable finance, build on our strong foundations in banking, life and pensions and wealth, and unlock our expertise in data, AI and emerging technologies.

“It is also an opportunity to share our insights on the Edinburgh Reforms, a year since they were announced here. The reforms aim to build on the government’s vision for UK financial services to be an open, sustainable, and technologically advanced global centre that delivers for all parts of the UK and its communities.

“Our sector growth strategy is very much aligned with this vision and recognises the UK’s globally respected regulatory environment as an asset we must leverage to attract more investment and jobs to Scotland.”

The press release issued by HM Treasury on 5 December 2023.

Self-employed builder from Hounslow overstated income to claim £50,000 Bounce Back Loan then lost it in scam crypto investment scheme.

Lukasz Nowak, 43, a self-employed builder from Hounslow, West London, was sentenced to 20 months imprisonment, suspended for two years, at Lincoln Crown Court on 27 November 2023. He was also ordered to pay £12,000 compensation to the bank from which he borrowed the money.

Nowak applied for a £50,000 Bounce Back Loan in October 2020. He received the maximum £50,000 loan after stating on the loan application that his business had a turnover of £205,000 for the previous tax year.

But the court heard that Nowak had overstated his income, which was approximately £20,000 for the relevant period, in order to claim the money.

Under the rules of the scheme businesses could claim up to £50,000, depending on their previous year’s turnover, and the money had to be used for the financial support of the business. However Nowak used the loan money to invest in cryptocurrency through an online broker.

But the crypto broker was also committing fraud and stole the full amount of the Bounce Back Loan money that Nowak had believed he was investing. Nowak was later declared bankrupt in July 2021.

Nowak admitted his actions in November 2022, during an investigation by the Insolvency Service and pleaded guilty at a first hearing at Boston Magistrates’ Court on 9 October 2023.

Julie Barnes, Chief Investigator at the Insolvency Service, said:

Lukasz Nowak took advantage of a scheme designed to help those in financial need, without thought for anyone else.

Nowak’s reckless actions, driven by intention to make a personal gain, resulted in loss to the public purse.

His sentence shows that the Insolvency Service will not tolerate abuse of taxpayers’ money.

Her Honour Judge Sjölin Knight also included 200 hours unpaid work and 15 Rehabilitation Activity Requirement days  – a measure which helps to address offending behaviour –  as part of his sentence.

Background

• Lukasz Nowak is of Hounslow. His date of birth is May 1980
• Sentenced for Fraud by False Representation, Section 2, Fraud Act 2006
• Further information about the work of the Insolvency Service, and how to complain about financial misconduct.

The press release issued by HM Treasury on 4 December 2023.

Over £480 million as part of £1.6 billion of climate aid announced by the Prime Minister to help developing countries access climate finance and mobilise private investment.

• innovative mechanism to launch next year with potential to raise £7.5 billion over the next decade and billions more in co-financing for green projects
• two new deals with Senegal and Guyana will support their economic resilience by allowing deferral of debt payments in the wake of climate crises like hurricanes and floods
• UK endorses new Global Climate Finance Framework at COP28 – championing reform of international financial institutions to make them bigger, better and fairer

Billions in climate finance will be mobilised for the global Net Zero transition over the next decade following an initiative from the UK and World Bank at COP28 today, 4 December.

The plans that will unlock private sector investment for innovative projects that tackle climate challenges head on were championed by Treasury Minister Baroness Vere in her speech in UAE to mark Finance Day at COP28.

The launch of Climate Investment Funds (CIF) Capital Market Mechanism next year will see bonds generate up to $750 million per year in new climate finance – $7.5 billion over the next decade – which could in turn attract well over $50 billion in co-financing for climate projects in emerging and developing economies. The intention to launch the mechanism was first announced by Prime Minister Rishi Sunak, then Chancellor, under the UK’s COP26 presidency.

The UK’s finance ambitions at COP28 builds on its COP26 legacy – including a commitment to have the world’s first net zero aligned financial centre to help mobilise finance and tap the power of markets – and its own domestic agenda, with long-term decisions to cut emissions and attract investment reducing a burden that has been historically shouldered by working families.

At COP26 the UK launched the Glasgow Financial Alliance for Net Zero (GFANZ), encouraging firms to set a goal of reaching net zero by 2050, and established the Transition Plan Taskforce to develop best practice guidance on private sector transition planning – a remit it has since delivered upon, with the government shortly to consult on the best way firms can disclose their transition plans in the UK.

Treasury Minister Baroness Vere said:

As a world leader in green finance the UK has a responsibility to lead by example in the climate transition – a responsibility to deliver on our international commitments and help in both greening the international financial system and supporting developing countries in their own transition.

Mobilising billions in climate finance alongside direct investment in – and partnerships with – emerging economies shows that we take this responsibility seriously, and that we will take the long-term decisions necessary to keep 1.5 alive.

In a separate speech at COP28 today, UK Minister for Development and Africa Andrew Mitchell will note the significant finance developing countries need for the climate transition, particularly to adapt to climate impacts.

At the summit, he will bring together financial institutions to agree priorities to mobilise private finance into adaptation and resilience, and announce an up to £484 million portfolio of UK investments. These investments will work with the financial sector to help developing countries access climate finance and mobilise private investment into sustainable development, climate adaptation and resilience, and energy transitions.

This includes:

• £391 million investment in the Private Infrastructure Development Group, who get infrastructure finance moving by developing pipelines of bankable projects in low-carbon, climate-resilient infrastructure
• £44 million of new investments by British International Investment to support the clean energy transition and build climate resilience in Africa and Asia
• £32 million investment, subject to final documentation, in the Green Guarantee Company – the world’s first global hard currency guarantor for climate bonds and loans in developing countries, lowering the cost of financing climate projects in those countries

Collectively these are enabling private and institutional investors to finance the transition – bridging the gap between developing countries’ climate finance needs and public finance available.

A UK-hosted event at COP28 saw some of the world’s biggest creditors come together to offer Climate Resilient Debt Clauses (CRDCs). The UK’s export credit agency UK Export Finance (UKEF) has reached agreement on add CRDCs to its new and existing loan agreements with Senegal and Guyana. A further ten countries are considering the offer. This follows the UK’s announcement at COP27 that UKEF would become the first export credit agency globally to offer CRDCs in its direct lending to low-income countries and small island developing states.

Canada announced that they are to follow in the UK’s footsteps in offering CRDCs – which allow governments to delay their debt repayments and free up resources to fund disaster response and recovery – with France expanding their offer and the World Bank extending their pilot to existing loans. Managing Director of the IMF Kristalina Georgieva also praised the UK at COP28 for shaking up the world in how it deals with the countries and projects hit by natural disasters.

Minister Mitchell together with Prime Minister Mottley of Barbados reiterated the call for all creditors to offer CRDCs by 2025. A further 66 countries joined that call, meaning that 73 nations are now calling for action.

Minister for Development and Africa, Andrew Mitchell, said:

Climate-vulnerable countries urgently need investment at scale to adapt and become resilient to the devastating effects of climate change. The UK is mobilising private finance to support them, including £391 million of new funding for the Private Infrastructure Development Group to develop low-carbon, climate-resilient projects that will attract private investment. And by delivering new Climate Resilient Debt Clauses in Senegal and Guyana, the UK is also allowing affected communities to temporarily pause debt repayments in the wake of a climate disaster, giving them breathing space to recover.

President of Senegal, Macky Sall, said:

Like many other African countries, Senegal is already suffering from the effects of climate change. By including a climate resilient debt clause in our loan from UK Export Finance, Senegal will be able to pause payments when a climate disaster strikes, releasing much needed finance when we need it most to focus on resilience and boosting our economy instead. We call on other creditors to offer climate resilient debt clauses by the end of 2025.

A new partnership will promote greater action from export credit agencies and banks in achieving net zero emissions by 2050. UK Export Finance rallied together export credit agencies from around the world to launch the Net Zero Export Credit Agencies Alliance, which is supported by the UN and will collaborate with GFANZ. This news comes as UKEF unveils over £600 million in transactions supporting climate adaptation and sustainability across Africa and the Middle East.

Tim Reid, CEO of UK Export Finance, said:

I am proud that UK Export Finance has secured agreement from Guyana and Senegal to be the first countries to adopt CRDCs in their direct loans with us. We hope the CRDCs never need to be used, but should Guyana or Senegal experience a severe environmental shock or health crisis, they will have more to spend on what will be most important: protecting their citizens’ lives and livelihoods.

Export credit agencies also play a crucial role in helping businesses to transition towards net zero and shifting finance flows towards climate-friendly projects and investments. The Net Zero ECA alliance announced today mobilises export finance in support of a common goal: achieving global net zero by 2050 and limiting global warming to 1.5 degrees. I look forward to working with UKEF’s counterparts around the world to support this journey.

Through its COP26 Presidency, the UK also supported establishment of global integrity initiatives to develop standards and ensure integrity in voluntary carbon markets, aimed at unlocking this innovative source of finance to accelerate the net zero transition.

In a separate speech, Baroness Vere set out that the government’s forthcoming consultation on voluntary carbon and nature markets will include its intention to endorse the outputs of these initiatives and consider how these could be reflected in UK policy, regulation and guidance. We will also test demand for a new labelling scheme for UK credits, in addition to existing work with the British Standards Institution to develop Nature Investment Standards.

The 2023 Green Finance Strategy outlines how government is increasing flows of finance for climate and nature in the UK and globally. Early next year the government will deliver on a commitment within that strategy, by launching a Transition Finance Market Review to assess how the UK as a financial centre can mobilise transition finance at scale, including to emerging and developing economies.