Tag: Treasury

The press release issued by HM Treasury on 2 October 2023.

Grisha Valchev, 43, of Enfield, has been ordered to repay £43,570 after abusing the Bounce Back Loan scheme. In addition to the compensation order, the judge also disqualified Valchev as a director for nine years.

Valchev was a director of Healthy & Tasty Ltd, a north London-based gift company selling fruit baskets, chocolates, hampers and flowers.

Healthy & Tasty Ltd went into liquidation in July 2021, triggering an investigation by the Insolvency Service which uncovered the abuse of the loan scheme.

On 6 September 2023, District Judge Geddes at the High Court of Justice Business and Property Courts in Leeds imposed the order and disqualified Valchev, after hearing that the director had given false information to claim the maximum Bounce Back Loan amount of £50,000 in May 2020.

The company’s actual turnover on which the loan should have been based was around £35,400, which meant Healthy & Tasty Ltd had been entitled to less than £9,000, and had ultimately received more than five times that amount.

Valchev argued in court that he was unable to repay the money, but the Judge rejected this, and ordered him to repay £43,570, which included the excess amount that he had falsely claimed, plus interest.

Rob Clarke, Chief Investigator of Insolvent Investigations North at the Insolvency Service, said:

Grisha Valchev abused taxpayers’ money to give his company an unfair advantage over other businesses impacted by Covid-19.

This is the first Compensation Order handed out to a director who challenged our case in court. It is a significant result for the Insolvency Service and shows that abuse of the public purse will not be tolerated.

Where there have been similar cases of abuse by a company director, we will be seeking further Compensation Orders and disqualifications.

Valchev’s ban began on 27 September 2023 and lasts for 9 years. His disqualification prevents him from becoming involved in the promotion, formation or management of a company, without the permission of the court.

The press release issued by HM Treasury on 2 October 2023.

The Chancellor has today, 2 October 2023, announced an immediate cap on civil servant headcount across Whitehall to stop any further expansion, increase efficiencies and boost productivity.

• Chancellor announces Civil Service Numbers Cap, capping headcount at current level, which could save up to £1 billion, with focus on a leaner and more effective workforce
• government departments to submit long-term productivity plans that modernise the Civil Service and reduce the size of the state – delivering high-quality public services at a lower cost
• equality, diversity and inclusion (EDI) spending in the Civil Service to be reviewed to ensure it represents value for money for the taxpayer

The Civil Service workforce has grown year on year since 2016, with headcount as of June 2023 around 488,000. While this has enabled an effective response to the challenges of the Covid-19 pandemic, further unabated growth would not be fair to taxpayers or promote the efficiency they expect.

A cap on headcount at its current level will be introduced with immediate effect – a decision that will help cut the cost of government and could save up to £1 billion by March 2025 compared to the current trajectory.

The cap – which will be in place for the duration of the current Spending Review period – does not equate to a recruitment freeze, and current recruitment campaigns will remain ongoing.

To go further after the current Spending Review period, government departments will be asked to produce plans on driving down headcount over the long-term to pre-pandemic levels, as part of the Public Sector Productivity Programme being carried out by the Chief Secretary to the Treasury.

A first-time value for money audit of EDI spending in the Civil Service will also separately inform the productivity review, with the findings and actions to be announced by the Chancellor in the Autumn.

Through tackling unnecessary bureaucracy and improved use of technology, it is expected that the Civil Service will become more productive and act as a lean, agile, and cost-effective organisation, in line with the people’s priorities.

Departmental plans are expected to include detail on how departments will utilise modern technology to drive efficiencies and deliver better services for the public at lower costs – across both the Civil Service and the wider public sector. This process will also prioritise the protection of critical frontline services.

Further information

• Estimated savings are based on the latest available headcount for full-time employee numbers (457,000 as of June 2023) from the ONS (excluding devolved administrations), as well as a projection of 490,000 in March 2025 based on the current trend in headcount growth since 2016.
• The figure is based on a median wage of £32k reported in the latest Civil Service Statistics and additional non-wage costs of £13k per FTE. The figure is subject to change based on departmental negotiations and a later retrospective update to headcount data.
• The cap will apply to all government departments and their arm’s length bodies. Public servants and crown servants will also be included where they are normally in scope of the Civil Service Pay Remit.
• The Civil Service Fast Stream will continue as planned in recognition of the importance of the talent pipeline.
• The Cabinet Office has written to over 100 organisations in the Civil Service, including government departments and executive agencies, to confirm how many staff work on EDI and how that work supports government priorities.
• The Chancellor, Minister for the Cabinet Office and Minister for Women and Equalities will jointly scrutinise whether EDI spending offers taxpayers value for money.

The press release issued by HM Treasury on 2 October 2023.

Changes to the rules which determine whether a bank can operate – known as Threshold Conditions – will ensure banks are upholding their current legal duties to protect freedom of speech.

• Chancellor spells out new rules for banks to protect free speech
• banks forced to show exactly how they are protecting customers’ freedom of speech under a shakeup of the rules
• banks must take existing obligations not to discriminate seriously

This action will give regulators the green light to take firm action if any bank is found to undermine or fails to protect the rights of their customers.

A public consultation will be launched shortly to consider how these changes are best delivered, before legislating next year, as part of the government’s aim to put an end to de-banking for freedom of speech reasons.

This follows concerning reports that highlighted situations where banks may have been closing the bank accounts of customers based on their political views.

The Chancellor was quick to act – confirming new rules will force banks to delay and explain account closures and asking the FCA to conduct a deep dive into this issue.

The notice period for payment service framework contract terminations is to increase from two months to 90 days, and banks will be required to give customers clear and tailored explanations for why they had closed an account – unless in limited cases such as where this would be unlawful.

The press release issued by HM Treasury on 2 October 2023.

The National Living Wage will rise to two-thirds of average earnings, the Chancellor announced today (Monday 2 October).

The press release issued by HM Treasury on 29 September 2023.

The Trader Support Service has been extended until December 2024.

Support for businesses moving goods between Great Britain and Northern Ireland will remain in place as further trade improvements under the Windsor Framework are introduced.

The Trader Support Service, which helps businesses of all sizes successfully navigate changes to the way goods move under the Windsor Framework, has been extended until December 2024. The government remains committed to long-term support for traders moving goods within the UK between Great Britain and Northern Ireland. This follows the agreement reached earlier this year by the UK and EU to introduce the Windsor Framework.

Thousands of businesses have now registered with the free-to-use platform since its launch in 2020, providing end-to-end support for traders moving goods between Great Britain and Northern Ireland.

The Trader Support Service also provides guidance and training to help businesses understand what the Windsor Framework means for them, and avoids traders having to use specialist software, saving time and money.

Businesses moving goods between Great Britain and Northern Ireland can sign up to the Trader Support Service and access free online courses and training materials.

The press release issued by HM Treasury on 29 September 2023.

The Financial Secretary, Victoria Atkins MP, visited NETPark on 29 September to see how businesses are using full-expensing and R&D tax relief to help them grow.

• Treasury minister visits Kromek in NETPark Sedgefield to meet with science and technology companies spearheading drive for local growth
• firms benefit from government schemes including R&D tax relief and full-expensing
• stats published today reveal 11% increase in R&D tax relief claims last year

The minister met with representatives of Durham County Council and business leaders at NETPark, one of the UK’s leading science and technology parks, who support hundreds of jobs and over 40 companies and institutions, including leading innovators across health, cyber and space.

Minister Atkins stopped off at Kromek, who produce high performance radiation detection technologies. Kromek CEO Dr Arnab Basu took the Minister on a tour of the factory floor where they saw from start to finish how radiation detectors used in the global effort to tackle radiological and biological threats are manufactured.

R&D tax reliefs enable companies like Kromek and others in NETPark to claim back on their investments, helping to drive further growth and innovation.

This is in addition to full expensing, introduced at Spring Budget 2023, an effective £27 billion corporate tax cut that lets taxpayers deduct 100% of the cost of certain plant and machinery from their profits before tax.

Financial Secretary to the Treasury, Victoria Atkins, said:

“NETPark and the companies operating here, such as Kromek, are a fantastic example of what can be achieved through hard work, innovation and targeted support, and I leave feeling truly inspired.

“Growing the economy remains one of the Prime Minister’s top priorities, and I am determined that leading companies have our backing to thrive and help level up the UK.”

The visit coincides with the release of statistics this morning which show that SMEs are increasingly using the government’s R&D schemes to help them grow. There was an 11% increase in R&D tax relief support claimed in 2021-22, bringing the total relief provided to £7.6 billion covering £44 billion worth of R&D expenditure.

The press release issued by HM Treasury on 15 September 2023.

The UK Government and Tata Steel agree on joint investment package to secure a sustainable future for steelmaking in Port Talbot.

The UK Government and Tata Steel have today (15 September) agreed on a proposed joint investment package which will secure a sustainable future for steelmaking in Port Talbot, modernise production of greener steel and protect skilled jobs, subject to consultation and regulatory approvals.

Tata Steel is expected to invest £1.25 billion, including a UK Government grant worth up to £500 million – one of the largest government support packages in history – in a new Electric Arc Furnace for greener steel production at Port Talbot, which is currently the UK’s largest single carbon emitter.

This would replace the existing coal-powered blast furnaces – which are nearing the end of their effective life – and reduce the UK’s entire carbon emissions by around 1.5 percent as a result.

Tata Steel UK employs over 8,000 people, including at Port Talbot, which would otherwise be under serious threat without substantial investment to guarantee its future. Tata Steel also supports around 12,500 further jobs in the upstream supply chain.

Thanks to UK Government intervention, it is expected that the proposal announced today – which remains subject to information and consultation processes led by Tata Steel – has the potential to safeguard over 5,000 jobs across the UK.

The UK Government would also ensure a broad range of support for any staff who are affected by the transition, working with the Welsh Government and Tata Steel to establish a dedicated transition board to support both affected employees and the local economy, with up to £100m funding.

Business and Trade Secretary Kemi Badenoch said:

The UK Government is backing our steel sector, and this proposal will secure a sustainable future for Welsh steel and is expected to save thousands of jobs in the long term.

This is an historic package of support from the UK Government and will not only protect skilled jobs in Wales but also grow the UK economy, boost growth and help ensure a successful UK steel industry.

Chancellor of the Exchequer Jeremy Hunt said:

This proposal is a landmark moment for maintaining ongoing UK steel production – supporting sustainable economic growth, cutting emissions, and creating green jobs.

It is right that we are ready to step in to protect this world class manufacturing industry and to support a green growth hub in South Wales.

The landmark proposal announced today builds on other major investments in UK green technology by Tata Group, including the July announcement of a £4 billion battery gigafactory creating 4,000 direct jobs, and represents a major vote of confidence in the UK.

Alongside the UK Government’s proposal for the Celtic Freeport – expected to create 16,000 jobs – and the land at Port Talbot which Tata expects to release for transfer or sale following the transition from blast furnaces, the investment could help unlock thousands of new local jobs and boost both the South Wales and wider UK economy.

Subject to Tata Steel consultation processes, the UK Government estimates that the support package will also protect thousands of jobs in the wider UK steel supply chain.

Welsh Secretary David TC Davies said:

Steelmaking remains a vital part of the Welsh economy and this huge support package from the UK Government ensures that the industry now has a bright future to match its long and proud history in South Wales.

We are investing in our steel industry as it makes the necessary transition to greener methods of production and are also putting support in place for the local workers affected by the changes.

Tata Group Chairman N Chandrasekaran said:

The agreement with the UK Government is a defining moment for the future of the Steel Industry and indeed the industrial value chain in the UK.  It has been an absolute pleasure to work with the His Majesty’s Government and the Prime Minister Rishi Sunak in developing the proposed transition pathway for the future for sustainable steelmaking in the UK.

The proposed investment will preserve significant employment and presents a great opportunity for the development of a green technology-based industrial ecosystem in South Wales. We look forward to working with our stakeholders on these proposals in a responsible manner.

The transition to sustainable steelmaking at Port Talbot is also expected to reduce the UK’s entire business and industry carbon emissions by 7 percent, Wales’s overall emissions by 22 percent and the Port Talbot site’s emissions by 85 percent.

The press release issued by HM Treasury on 12 September 2023.

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.

The press release issued by HM Treasury on 11 September 2023.

Indian firms could soon list in London, it has been announced as part of a package of plans unveiled today by the Chancellor Jeremy Hunt alongside Indian Finance Minister Nirmala Sitharaman, as they met in Delhi for face-to-face talks.

The press release issued by HM Treasury on 11 September 2023.

In this role Jonathan will also become the Chair of the Court’s Audit and Risk Committee and will take up the role later this Autumn.

The Chancellor has announced that Jonathan Bewes has been appointed as a new Non-Executive Director of the Court of the Bank of England, and will become the Chair of the Court’s Audit and Risk Committee. His Majesty The King has approved the appointment.

Jonathan will take up his role in Autumn 2023 for a term lasting four years.

The Bank’s Court acts as the governing body responsible for setting the organisation’s strategy, budget and taking key decisions on resourcing and appointments. The Audit and Risk Committee assists Court in meeting its responsibilities for an effective system of risk management, internal control and financial reporting, among other duties.

David Roberts, the Chair of the Bank’s Court, said:

“I am delighted to welcome Jonathan Bewes to the Bank of England’s Court of Directors. Jonathan will Chair the Bank’s Audit and Risk Committee, a sub-Committee of Court. Jonathan’s extensive experience, expertise and skills will provide both Committees and the Bank with key insights and challenge.”

About the appointments

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

All members of Court are appointed by His Majesty the King, on the recommendation of the Prime Minister and the Chancellor of the Exchequer.

Public appointments are made on merit following a fair and open competition process. In accordance with the original Nolan recommendations, there is a requirement for appointees’ political activity (if any is declared) to be made public. Jonathan has confirmed he has not engaged in any political activity in the last five years

This appointment is regulated by the Commissioner for Public Appointments, who provides independent assurance that appointments are made in accordance with the Government’s Principles of Public Appointments and Governance Code.

About Jonathan Bewes

Since qualifying as a Chartered Accountant with KPMG, Jonathan has spent over 30 years in the Banking Industry. The majority of this time was spent with Robert Fleming, UBS and Bank of America Merrill Lynch acting as an Investment Banking adviser to the Boards of large, predominantly U.K. public companies on a wide range of financial, strategic and governance issues. From 2017 until earlier this year, he served as Vice Chairman, Corporate and Institutional Banking at Standard Chartered Bank. Jonathan also sits on the Board of Next plc, where he is the Senior Independent Director and chairs the Audit Committee and on the Board of Sage Group plc, where he chairs the Audit and Risk Committee