Tag: Treasury

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

Chancellor of the Exchequer, Jeremy Hunt, today (14 August) announces his nomination of Tom Josephs for appointment as a member of the Budget Responsibility Committee (BRC) at the Office for Budget Responsibility (OBR), replacing Andy King who will step down on 31 August 2023.

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

Stephen Oleksewycz acted as director of an events promotion business whilst an undischarged bankrupt, and also committed fraud offences.

Stephen Oleksewycz, 39, from Halifax, was sentenced to 27 months imprisonment, at Leeds Crown Court on 3 August 2023, for fraud offences and acting as a company director while an undischarged bankrupt. He was also required to pay compensation within three months to the two creditors he defrauded.

Oleksewycz started in the events promotion industry following his retirement as a professional footballer due to injury. He established his company, ‘An Exp With Ltd’, in February 2016 with himself as sole director but he was made bankrupt later that year due to an outstanding debt of over £16,000.

Individuals who have gone bankrupt are subject to certain restrictions, in particular it is a criminal offence for a bankrupt to act as a company director, or to manage or promote a company, without express permission obtained at court.

Oleksewycz did not have permission, however he continued to act as a director of An Exp With Ltd, which he used to deliver ‘An Experience With’ event in February 2017 involving Conor McGregor, the mixed-martial arts fighter.

The fraud offences related to this event, where Oleksewycz sent fake documents to the venue company, EventCity, and the company streaming the event, Groovy Gecko.

When both companies contacted Oleksewycz to advise they had not received their fees to run the event, Oleksewycz sent them doctored bank documents purporting to show the payments had been made, as a stalling tactic in the days leading up to the event. This succeeded, and both companies felt they had to proceed in the hope the lack of payments were due an honest mistake and would be addressed, or risk the event collapsing.

However, after the event took place Groovy Gecko did not receive any payment and was owed over £15,000. EventCity was paid just £5,000 of the outstanding total, which was nearly £80,000. Both companies were then informed that An Exp With Ltd had gone into liquidation.

Glenn Wicks, Chief Investigator at the Insolvency Service, said:

Acting as a company director while being an undischarged bankrupt is a serious offence, and to compound this Stephen Oleksewycz deliberately defrauded two businesses who gave him the benefit of the doubt to run an event despite their concerns about his behaviour.

Oleksewycz had initially pleaded not guilty when the case was first heard at Leeds Magistrates’ Court on 23 February 2021. However when the case eventually came to trial at Leeds Crown Court in June 2022, he entered a guilty plea for these offences while other charges against him were dropped.

Background

• Stephen Oleksewycz is of Halifax. His date of birth is February 1983.
• An Exp With Ltd (company number 09988094)
• Oleksewycz pleaded guilty to the following specific offences:

1. Company Directors Disqualification Act 1986 section 11 – acting as a director whilst an undischarged bankrupt – 13 months
2. Fraud Act 2006 section 11 – obtaining services dishonestly – 27 months
3. Fraud Act 2006 section 11 – obtaining services dishonestly – 27 months
4. Insolvency Act 1986 section 206 – fraud during the course of winding up – 16 months
5. Insolvency Act 1986 section 206 – fraud during the course of winding up – 16 months

All to be served concurrently making overall sentence of 27 months.

The press release issued by HM Treasury on 9 August 2023.

UK-backed price cap on Russian oil and oil products is successfully undermining Putin’s ability to fund his illegal war in Ukraine, according to official data collated six months on from implementation.

• The oil price cap is significantly impacting Russia’s ability to use oil to finance its illegal war.
• 45% plunge in Russian Finance Ministry energy revenues.
• UK continues to monitor effectiveness of the cap alongside its Coalition partners amid expected market price fluctuations.

UK-backed price cap on Russian oil and oil products is successfully undermining Putin’s ability to fund his illegal war in Ukraine, according to official data collated six months on from implementation.

Russian government income declined by over 20% between January and March 2023 compared to a year ago. The Russian Ministry of Finance posted a 45% plunge in government energy revenues in the same period.

According to the International Energy Agency’s Oil Market Report for July 2023, Russian oil export revenues were down by $1.5 billion month-on-month in June to $11.8 billion (down $9.9 billion year-on-year).

Independent research by the Centre for Research on Energy and Clean Air has estimated that the price cap on crude oil is costing Russia around €160 million per day.

Treasury Lords Minister Baroness Penn said:

The oil price cap is succeeding in its dual objectives – bearing down on Putin’s most lucrative source of revenues that could otherwise be used to fund his illegal war, while ensuring that vulnerable countries can continue to secure affordable oil.

The oil price cap forms a critical part of the largest and most severe package of sanctions ever imposed on a major economy. We will continue to keep the pressure on Russia alongside our international partners.

The G7 and Australia (G7+), who collectively constitute the Price Cap Coalition, agreed to cap the price of Russian seaborne oil and refined oil products in September 2022 as a way to undermine Putin’s ability to fund his illegal war in Ukraine through inflated global oil prices, while ensuring that third countries can continue to secure affordable oil. The crude oil price cap and high- and low-value refined oil price caps (collectively referred to as the G7+ oil price cap) were introduced on 5 December 2022 and 5 February 2023 respectively.

UK guidance has been periodically updated to assist market participants with implementation of, and compliance with, the cap, and OFSI will continue to engage collaboratively with industry partners to ensure as much clarity is provided as possible.

Recent routine fluctuations in oil prices have seen the average price of Urals rise above the G7+ cap level. For any above-cap trades, Russia will face significant headwinds in securing alternative service providers, with data from market intelligence provider Argus indicating that the cost to Russia of moving its product is considerable. This added burden on Russia will continue to contribute to depressed revenues.

The Price Cap Coalition continues to monitor the effectiveness of the price cap and is prepared to review and adjust the measure as appropriate to ensure that it continues to meet its twin goals.

The cap sits alongside an extensive range of measures the UK has taken against Russia. The UK has sanctioned over 1600 individuals and entities involved in Russia’s invasion and sanctioned over £20 billion of UK-Russia goods trade compared to 2021.

Further Information

• The price cap was legislated for in the “The Russia (Sanctions) (EU Exit) (Amendment) (No. 16) Regulations 2022” laid on 3 November 2022. The crude oil price cap was introduced on 5th December 2022, with the high-value and low value refined oil products price caps following on 5th February 2023.
• The UK has banned the import of Russian oil and oil products into our markets. As such the oil price cap mechanism only applies to UK persons that transport or provide associated services that facilitate the transportation of Russian oil and oil products to and between third countries.
• Alongside this update OFSI is publishing updated compliance forms, and instructions for using them, for the maritime services ban and Oil Price Cap to assist industry in complying with their obligations and monitoring implementation (see Russian Oil Services ban)

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

The UK and Scottish governments have agreed on an updated Fiscal Framework, enabling the Scottish Government to invest further in key infrastructure.

• UK Government will continue to top-up the Scottish Government’s tax revenues, worth £1.4 billion last year, as a benefit of strength and scale of the UK.
• Boost to borrowing powers and backing of Barnett formula will build a better future for Scotland and help to grow the economy.
• Chief Secretary to the Treasury John Glen hails a fair and responsible deal in line with the Prime Minister’s economic priorities.

The UK and Scottish Governments have today, 2 August, reached an agreement on an updated Fiscal Framework.

Holyrood’s capital borrowing powers will rise in line with inflation, enabling the Scottish Government to invest further in schools, hospitals, roads and other key infrastructure that will help to create better paid jobs and opportunity in Scotland.

The new deal maintains the Barnett formula, through which the Scottish Government receives over £8 billion more funding each year than if it received the levels of UK Government spending per person elsewhere in the UK. It also updates funding arrangements in relation to court revenues and the Crown Estate.

Chief Secretary to the Treasury, John Glen, said:

“This is a fair and responsible deal that has been arrived at following a serious and proactive offer from the UK Government.

“We have kept what works and listened to the Scottish Government’s calls for greater certainty and flexibility to deliver for Scotland.

“The Scottish Government can now use this for greater investment in public services to help the people of Scotland prosper. These are the clear benefits of a United Kingdom that is stronger as a union.”

The generous funding arrangements for tax will be continued, with the Scottish Government continuing to keep every penny of devolved Scottish taxes while also receiving an additional contribution from the rest of the UK.

Under the previous Fiscal Framework, the Scottish Government could borrow £450 million per year within a £3 billion cap, as well as receiving a Barnett-based share of UK Government borrowing. Going forward these amounts will instead rise in line with inflation, which supports additional investment across Scotland and lays the foundations for economic growth.

The UK Government has listened to calls from the Scottish Government for greater certainty and flexibility to help them manage their Budget and agreed a permanent doubling of the resource borrowing annual limit from £300 million to £600 million. Limits on how much can be withdrawn from the Scotland Reserve to spend in future years will also be removed. This will boost spending through borrowing by £90 million in 2024/25. All future limits will increase in line with inflation.

Scottish Secretary Alister Jack said: “The renewed Fiscal Framework shows what can be achieved when there is a collaborative focus on delivering economic opportunity and why we are stronger and more prosperous as one United Kingdom.

“The deal – worth billions of pounds to Scotland over the coming years – builds upon work to support economic growth, provide more high skill jobs, investment and future opportunities for local people, such as the establishment of Investment Zones and Freeports in Scotland.

“The UK Government knows that high prices are still a huge worry for families. That’s why we’re sticking to our plan to halve inflation, reduce debt and grow the economy.  As well as providing targeted cost of living support, we are directly investing more than £2.4 billion in hundreds of projects across Scotland as we help level up the country.”

As both governments continue to work together to tackle challenges like the cost of living, an updated Fiscal Framework equips the Scottish Government with the instruments for growth while protecting the wider public finances.

The press release issued by HM Treasury on 1 August 2023.

Sarah will take up her role at the Bank on 1 November 2023, after the appointment was approved by His Majesty The King.

The Chancellor has announced that Sarah Breeden will succeed Sir Jon Cunliffe as the next Deputy Governor for Financial Stability (DGFS) at the Bank of England.

His Majesty The King has approved the appointment.

Sarah will take up her role at the Bank on 1 November 2023 for a term lasting five years.

The new Deputy Governor for Financial Stability will lead the Bank of England’s work on financial stability, will sit on the Financial Policy Committee (and chair it in the Governor’s absence) the Monetary Policy Committee and the Prudential Regulation Committee and play a key role in providing a link between financial stability and monetary policy.

Sarah will also be a member of the Court of the Bank of England, Chair the Financial Market Infrastructure Board, and represent the Bank of England on a number of national and international bodies.

Sarah will succeed Sir Jon Cunliffe, who has served since 2013.

Jeremy Hunt, Chancellor of the Exchequer, said:

“I am pleased to appoint Sarah Breeden as the next Deputy Governor of the Bank of England who brings extensive experience to the role including from her work as a member of the FPC and across monetary, economic and financial matters.

“I want to thank Sir Jon Cunliffe for his decade of service as Deputy Governor of the Bank of England. Over the last 10 years, he has led the Bank’s work on delivering financial stability and has played a key role in ensuring Britain’s financial services are well placed to thrive in the future.”

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

“I am delighted that Sarah has been appointed as DGFS. She will bring a wealth of financial and economic policy knowledge to the role, both domestically and internationally.”

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.

The Deputy Governor for Financial Stability 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 Sarah Breeden

Sarah is currently at the Bank of England, serving as Executive Director for Financial Stability Strategy and Risk and a member of the Financial Policy Committee (FPC). Prior to her current role, Sarah was the Executive Director responsible for supervising UK Deposit Takers, and before that was responsible for the supervision of the International banks. Sarah is also a trustee of the Education Endowment Foundation.

Footnotes

Following the principles in the Governance Code, there is a requirement for appointees’ political activity (if any is declared) to be made public. Sarah has confirmed she has not engaged in any political activity in the last five years.

The press release issued by HM Treasury on 1 August 2023.

Over 38,000 UK pubs and bars have seen a tax cut on the pints they pull from today (1 August 2023) as the government’s historic alcohol duty changes take effect.

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

HM Treasury and Monetary Authority of Singapore joint statement on the eighth meeting of the UK-Singapore Financial Dialogue.

London, 27 July 2023… The United Kingdom (UK) and Singapore held the 8th UK-Singapore Financial Dialogue in London yesterday. The Dialogue facilitated a useful exchange of views, and identified opportunities for further collaboration on joint projects, in priority areas such as sustainable finance and FinTech and innovation.

Sustainable Finance

Both countries agreed on the urgent need to develop approaches that facilitate and scale financing to support the transition of economies to net zero.

A. Transition Finance:

The UK and Singapore agreed that globally comparable and transparent transition plans that include credible forward-looking information can help reduce fragmentation, scale transition finance, and support sustainability in finance more generally. Both countries recognised the value of increased cooperation on transition plans to mobilise real economy emission reductions. The Monetary Authority of Singapore (MAS) provided updates on Singapore’s focus on scaling blended finance and addressing energy transition needs in Asia, MAS’ Finance for Net Zero Action Plan (FiNZ Action Plan) and initiatives to mobilise green and transition financing to catalyse Asia’s net zero transition. The UK provided updates on the Transition Plan Taskforce’s (TPT) work to finalise its disclosure framework and the TPT’s international engagement with governments and regulators on the international applicability of the framework alongside the International Sustainability Standards Board’s (ISSB) final standards.

B. International standards:

The UK and Singapore re-affirmed their continued support for a global framework of sustainability disclosures based on the ISSB final standards for general reporting on sustainability and for climate-related disclosures. Both countries are committed to implementing globally interoperable sustainability disclosures. Both sides also welcomed the International Organization of Securities Commissions’ (IOSCO) endorsement of the ISSB’s standards. It was recognised that a global framework for transition and sustainability disclosure standards is necessary to promote a simple, consistent, and effective regulatory environment for firms, regulators, and financial authorities. Both the UK and Singapore agreed to support the ISSB in implementing the standards and reaching its goal of achieving globally interoperable disclosure standards by, for example, supporting capacity building efforts and sharing experiences. Both countries also exchanged views on their respective Environmental, Social, and Governance (ESG) data and ratings codes of conduct which have been published for consultation[1]. The UK and Singapore agreed to explore how to deepen bilateral cooperation and promote global coordination and common expectations.

C. Nature and Biodiversity:

The UK and Singapore re-affirmed the need to deepen the understanding of nature and biodiversity loss and its impact on the financial sector. Both countries welcomed an upcoming joint research project on nature-related financial risks in Southeast Asia involving the University of Cambridge Institute for Sustainability Leadership (CISL) and the Singapore Green Finance Centre, which is co-managed by Imperial College Business School and Singapore Management University (SMU). The UK shared its efforts to quantify UK’s financial and economic risks from exposure to nature degradation through the work by the UK’s Green Finance Institute with support of the Bank of England (BoE) and Department for Environment, Food & Rural Affairs (DEFRA). The UK provided an update on the latest developments from the Taskforce on Nature-related Financial Disclosures (TNFD), ahead of the final publication of the TNFD framework in September 2023.

FinTech and Innovation

The UK and Singapore exchanged views on the latest developments on their respective work in the digital space.

A. Crypto and Digital Assets:

The UK and Singapore agreed to contribute to efforts to develop global regulatory standards for crypto and digital assets as part of international standard setting bodies such as IOSCO, and working groups under the Financial Stability Board (FSB), and welcomed the FSB recommendations on crypto-assets including stablecoins. The UK provided an update on its approach and industry feedback on the Future Financial Services Regulatory Regime for Crypto-assets consultation[2], and the regulatory rules for marketing crypto-assets[3]. Singapore shared its perspectives on regulatory developments on stablecoins and consumer protection measures for Digital Payment Token Services[4].

B. Central Bank Digital Currency (CBDC):

The UK and Singapore held a productive discussion on their respective approaches towards CBDC, with the UK updating on the “Digital Pound” consultation and plans for the current design phase. Singapore shared its approach towards exploring use cases for a digital Singapore Dollar, and efforts that are being undertaken to foster interoperability[5]. Singapore also provided an update on its exploration of wholesale CBDC[6] for cross-border foreign exchange settlement. Both countries will continue discussions and share insights and experiences.

C. Project Guardian:

Singapore shared the latest developments on its private-public sector collaborative initiative to test the potential and feasibility of asset tokenisation. Both countries agreed to consider future collaboration opportunities in this area.

D. E-Wallets:

The UK welcomed the outcome of MAS’ review of e-wallet caps, including the increase to the relevant limits imposed on e-wallets[7].

Cross-border Arrangement for selected Trading Venues

The UK provided an update on the cross-border arrangements between the UK and Singapore for exchanging information in relation to derivatives trading venues, which concerns (i) the UK’s and Singapore’s derivatives trading obligations; and (ii) the classification of regulated markets for the purpose of Exchange Traded Derivatives trading. Both countries acknowledged the value of continued cooperation to support the G20 OTC derivatives reforms.

The UK and Singapore renewed their commitment to engagement beyond the Dialogue through a series of roadmap engagements. Further cooperation was agreed on Sustainable Finance and FinTech and Innovation ahead of the next Financial Dialogue due to be held in Singapore in 2024.

An industry-led UK-Singapore business roundtable on sustainable finance took place on 25 July 2023. Industry participants discussed the financing opportunities and challenges in meeting net zero targets, and how the financial industry could help to address these.

The Dialogue was jointly chaired by Deputy Managing Director (Markets and Development) of MAS, Mr Leong Sing Chiong, and Director General (Financial Services) of HM Treasury (HMT), Ms Gwyneth Nurse. The Dialogue was attended by senior officials from MAS, HMT, BoE, Financial Conduct Authority, the High Commission of the Republic of Singapore in London, and the British High Commission in Singapore.

About the Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors and financial market infrastructures. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructures, adoption of technology, and upgrading of skills in the financial industry.

About HM Treasury

HM Treasury is the UK government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.

The department is responsible for:

• public spending: including departmental spending, public sector pay and pension, annually managed expenditure (AME) and welfare policy, and capital investment;
• financial services policy: including banking and financial services regulation, financial stability, and ensuring competitiveness in the City;
• strategic oversight of the UK tax system: including direct, indirect, business, property, personal tax, and corporation tax;
• the delivery of infrastructure projects across the public sector and facilitating private sector investment into UK infrastructure; and
• ensuring the economy is growing sustainably

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

New rules give consumers greater confidence to challenge decisions.

• New requirements on banks will protect freedom of expression
• New rules will give consumers greater confidence to challenge account closures
• Changes available because of Brexit and recent government legislation

Banks will be forced to explain and delay any decision to close an account under new rules, protecting freedom of expression.

The government has stepped in to address fears that banks are terminating accounts because they disagree with someone’s political beliefs.

The changes will increase the notice period to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement bank.

Banks will also be required to spell out why they are terminating a bank account – boosting transparency for customers and aiding their efforts to overturn decisions.

The changes announced today (20 July) can only be made due to new powers in the Financial Services and Markets Act 2023, which give Britain control of its financial rulebook following Brexit.

Economic Secretary to the Treasury, Andrew Griffith, said:

“Freedom of speech is a cornerstone of our democracy, and it must be respected by all institutions.

“Banks occupy a privileged place in society, and it is right that we fairly balance the rights of banks to act in their commercial interest, with the right for everyone to express themselves freely.

“These changes will boost the rights of customers – providing real transparency, time to appeal and making it a much fairer playing field.”

The proposed changes follow a call for evidence launched in January, following PayPal’s temporary suspension of several accounts last year. It found that changes were needed to ensure the right balance is being struck between protecting customers, and providers’ rights to manage commercial risk.

They require secondary legislation, which will be delivered through the powers granted in the Financial Services and Markets Act 2023, as part of the government’s programme in building a Smarter Regulatory Framework for UK financial services.

This runs alongside separate plans to clarify in legislation the requirements for Politically Exposed Persons (PEPs), and a review into whether these are being applied proportionately by financial institutions.  These steps were commissioned by Parliament last month as part of the Financial Services and Markets Act 2023; and the FCA will set out how they intend to conduct the review by the end of September.

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

The Royal Trustees have today (20 July) published their review of the Sovereign Grant which sets the proportion of The Crown Estate’s net profits used to calculate the amount of government funding to support His Majesty The King.

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

New sanctions come into effect for those found selling illicit tobacco products.

More than 27 million illicit cigarettes and 7,500kg of hand-rolling tobacco were seized under Operation CeCe in its first 2 years, HM Revenue and Customs (HMRC) and National Trading Standards have revealed.

This comes as new powers come into force from today, 20 July, which could see penalties of up to £10,000 for any businesses and individuals who sell illicit tobacco products. The sanctions will bolster the government’s efforts to tackle the illicit tobacco market and reduce tobacco duty fraud.

The new powers will also see Local Authority Trading Standards given the ability to refer cases to HMRC for further investigation. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced.

Operation CeCe is a joint HMRC-National Trading Standards operation which has been working to seize illicit tobacco since January 2021.

Nis Bandara, HMRC’s Deputy Director for Excise and Environmental Taxes, said:

Trade in illicit tobacco costs the Exchequer more than £2 billion in lost tax revenue each year. It also damages legitimate businesses, undermines public health and facilitates the supply of tobacco to young people.

These sanctions build on HMRC’s enforcement of illicit tobacco controls, will strengthen our response against those involved in street level distribution, and act as a deterrent to anyone thinking that they can make a quick and easy sale and undercut their competition.

Kate Pike, Lead Officer for the Chartered Trading Standards Institute, said:

Trading Standards Officers across the country work with colleagues in Public Health to reduce the harm from smoking and with enforcement partners to disrupt criminality in our communities.

We welcome this addition to our toolkit of measures to tackle illegal tobacco, ensuring that those who seek to profit from supplying these products face substantial penalties for doing so, and their ability to continue to trade is severely impacted.

Lord Michael Bichard, Chair of National Trading Standards, said:

The illegal tobacco trade harms local communities and affects honest businesses. Through Operation CeCe, we have removed 27 million illegal cigarettes and 7,500kg of hand-rolling tobacco from the supply chain and we welcome these new measures to clamp down further on the illicit tobacco trade.

HMRC will launch a new illicit tobacco strategy later in the year which will replace ‘From Leaf to Light’, which has been the guiding strategy for tackling the illicit tobacco market since 2015.