Tag: Treasury

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

John Glen spoke to experts in artificial intelligence to discuss the technology’s potential.

The press release issued by HM Treasury on 10 October 2023.

The Chancellor Jeremy Hunt has appointed Michèle Dix CBE – a former managing director of Crossrail 2 and director of planning at Transport for London – to the National Infrastructure Commission (NIC).

The NIC provides impartial, expert advice to government on major long-term economic infrastructure challenges and Michele Dix will bring years of experience in transport, engineering, and planning.

Chancellor of the Exchequer Jeremy Hunt said:

“We need high quality infrastructure to deliver growth and boost productivity. Michèle will help ensure that the National Infrastructure Commission has the right skills and talent to help deliver the infrastructure we need.”

Sir John Armitt, Chair of the National Infrastructure Commission, said:

“Michèle brings a wealth of knowledge of the transport and planning spheres, and she joins us at an important time just as we publish the second National Infrastructure Assessment.

“Michèle’s experience in developing world class public transport systems will help inform the Commission’s ongoing work advising government on how best to promote economic growth across all regions.”

Michèle Dix BSc, PhD, CEng, FICE, FCILT, FCIHT, CBE is currently Non-Executive Director of Crossrail International, Non-Executive Director of the Major Projects Association, and visiting professor at Bartlett School of Planning at University College London.

At Transport for London, Michèle had been Managing Director of Crossrail 2 until October 2021 and had previously been Managing Director of Planning. Michèle started her career at the Greater London Council after completing her PhD in transport and land use planning.

Dr Dix has confirmed she has not engaged in any political activity in the last five years.

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

Scammer was due a large financial compensation award but Official Receiver worked with partners to ensure funds were used to repay his victims.

John Gerard Metcalfe, from Essex, was declared bankrupt in 2013 following legal action after he defrauded several individuals and at least one company as part of an investment scam he had run, which saw the victims lose over £2 million.

Metcalfe was subsequently convicted of fraud offences in 2017 and the Crown Prosecution Service (CPS) obtained a compensation order, meaning that he was required to pay as much as he had funds for at the time. It also meant that if Metcalfe came into money at a future date, the CPS could order additional money to be distributed, ensuring that the victims and creditors could receive full compensation.

However, in 2023, the Official Receiver, responsible for overseeing Metcalfe’s bankruptcy, became aware that Metcalfe had received a £3.75 million pay-out from the Foskett Panel, an independent committee set up in 2020 following a banking scandal involving a billion-pound fraud at the Reading branch of HBOS between 2003 and 2007.

Although Metcalfe had been discharged – as normal – from bankruptcy after one year in 2014, the fraud which led to the compensation award had happened prior to the Bankruptcy Order and the pay-out was therefore an asset in his bankruptcy, with payments due to his creditors and victims.

The Official Receiver was also contacted by the Eastern Region Special Operations Unit and the CPS, who had learnt of the pay-out from Metcalfe’s solicitor. The CPS, police and the Official Receiver worked together closely, resulting in Metcalfe agreeing to take part in the CPS Voluntary Reparation process, which provides for compensation to be paid to victims, and in place of a costly formal Proceeds of Crime Act 2002 (POCA) application to court.

It was agreed that the best approach was to pay his remaining victims as creditors in the bankruptcy. As a result, the compensation awarded by the Foskett Panel was paid to the Official Receiver, allowing over £2 million to be returned to the victims of his investment scam. In addition, other creditors have also been repaid and the taxpayer also received around £750,000 which was owed to HMRC.

Joe Sullivan, Official Receiver at the Insolvency Service, said:

Although this bankruptcy case dates back ten years, I am very happy both the victims and creditors are finally able to get their money back. That is testament to the hard work of the team, and I am especially pleased in this case that John Metcalfe’s victims have been repaid after his appalling scam.

Nick Bentley, Financial Investigation Manager at ERSOU’s Regional Organised Crime Unit, said:

Our unit works closely with police forces across eastern England – in this case Essex Police – to ensure that crime doesn’t pay, and individuals who have made money through illicit means are ordered to repay their ill-gotten gains.

We will continue to work with partner agencies and use POCA legislation to ensure, wherever possible, victims of economic crime are compensated.

Mark James-Dawson, Specialist Prosecutor of the CPS Proceeds of Crime Division, said:

This case shows that even when criminals have been convicted and sentenced, the CPS will continue to pursue them for their ill-gotten gains – even if they come into money years after committing their crimes.

Our Voluntary Reparation scheme is a mechanism by which we can secure compensation for victims after the criminal and confiscation proceedings have finished, when further assets come to light. Through joint working with the police and Insolvency Service, we were able to recover significant funds from Metcalfe which will be used to compensate victims of this crime, money which they thought they’d never see again.

Background

• John Metcalfe is of Essex. His date of birth is February 1958.

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.