Tag: Treasury

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

Millions of households will get more support with high energy bills to help ease the cost of living, the Chancellor has announced today ahead of the Spring Budget.

The press release issued by HM Treasury on 13 March 2023.

Silicon Valley Bank (UK) Ltd has today been sold to HSBC.  HSBC is headquartered in London, is the largest bank in Europe and is one of the world’s largest banking and financial services institutions, serving 39 million customers globally.  Customers of SVB UK will be able to access their deposits and banking services as normal from today.

This transaction has been facilitated by the Bank of England, in consultation with the Treasury, using powers granted by the Banking Act 2009.  No taxpayer money is involved, and customer deposits have been protected.

Making use of post-crisis banking reforms, which introduced powers to safely manage the failure of banks, this sale has protected both the customers of SVB UK and taxpayers.

The UK has a world leading tech sector, with a dynamic start-up and scale-up ecosystem and the government is pleased that a private sector purchaser has been found.

Chancellor Jeremy Hunt said:

“The UK’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs. I said yesterday that we would look after our tech sector, and we have worked urgently to deliver on that promise and find a solution that will provide SVB UK’s customers with confidence.

“Today the government and the Bank of England have facilitated a private sale of Silicon Valley Bank UK; this ensures customer deposits are protected and can bank as normal, with no taxpayer support. I am pleased we have reached a resolution in such short order.

“HSBC is Europe’s largest bank, and SVB UK customers should feel reassured by the strength, safety and security that brings them.”

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

The Bank of England announced on Friday that Silicon Valley Bank UK is set to enter insolvency, following action taken by its parent company in the United States. The Bank of England confirmed in its announcement that Silicon Valley Bank has a limited presence in the UK and does not perform functions critical to the financial system.

The government and the Bank understand the level of concern that this raises for customers of Silicon Valley Bank UK, and especially how it may impact on cashflow positions in the short term.

The UK has a world leading tech sector, with a dynamic start-up and scale-up ecosystem. The government recognises that, given the importance of Silicon Valley Bank to its customers, its failure could have a significant impact on the liquidity of the tech ecosystem.

The government is treating this issue as a high priority, with discussions between the Governor of the Bank of England, the Prime Minister and the Chancellor taking place over the weekend. The government is working at pace on a solution to avoid or minimise damage to some of our most promising companies in the UK and we will bring forward immediate plans to ensure the short term operational and cashflow needs of Silicon Valley Bank UK customers are able to be met.

The press release issued by 10 Downing Street on 10 March 2023.

Prime Minister Rishi Sunak and President Emmanuel Macron expected to agree new approaches to challenges including migration, energy security and the threat from Russia.

The Prime Minister, President Macron and British and French Cabinet ministers will gather in Paris today for the UK-France Summit. Talks will focus on fortifying our partnership to tackle shared challenges including stopping small boats, securing our domestic energy supplies and protecting our people against the threat from Russia and elsewhere.

At the first bilateral summit of British and French leaders since the coronavirus pandemic and Putin’s full-scale invasion of Ukraine, the Prime Minister and President Macron will discuss how to transform our deep and historic alliance so we are fully equipped to tackle the threats of the future.

Over the past decade the UK and France have routinely been NATO’s first and second biggest European contributors. We are the only European allies to be permanent members of the UN Security Council and the only nuclear powers in the region. The UK and France therefore have a responsibility to work together to guarantee Europe’s security.

Since 2010, the expansive defence partnership between the UK and France has been driven by the agreements made in the Lancaster House Treaties, treaties which established France as the UK’s closest defence and security partner other than the United States.

Under the Lancaster House treaties the UK and France established the Combined Joint Expeditionary Force (CJEF), which sees more than 10,000 British and French personnel ready to deploy together in response to a crisis. The CJEF sits alongside the UK’s other alliances in Europe, including the Joint Expeditionary Force of northern European nations and NATO – all tangible demonstrations of the UK’s commitment to uphold the continent’s security and prosperity.

The UK will further that commitment next year by hosting the fourth gathering of the European Political Community – a meeting of likeminded European leaders with shared values to coordinate on some of the most pressing geopolitical issues we face.

The Prime Minister said:

Our deep history, our proximity and our shared global outlook mean that a firm partnership between the UK and France is not just valuable, it is essential.

From tackling the scourge of illegal migration to driving investment in one another’s economies the work we do together improves the lives of each and every person in our countries. Beyond that, the UK and France also have a privileged role as defenders of European and global security.

As we face new and unprecedented threats, it is vital that we fortify the structures of our alliance so we are ready to take on the challenges of the future. That is what we will do at the UK-France Summit today.

Russia’s actions pose the biggest threat to European, and global, security. The Prime Minister and President Macron will hold discussions today on strengthening NATO to protect our people as well as bolstering Ukraine’s self-defence, both now and in the long-term.

As part of their talks, the Prime Minister and President Macron are expected to agree to further enhance UK-France military interoperability and industrial cooperation, including agreeing to scope the co-development of next-generation deep precision strike weaponry – the kind of long-range capability which NATO needs to protect against the growing threat from Russia.

To support Ukraine in their struggle for their sovereignty, the Prime Minister and President Macron are also expected to agree to further coordinate both the supply of weapons to Ukraine and the training of Ukrainian Marines. The UK has already trained 11,000 troops since last summer, and we recently expanded our training to include Ukrainian pilots. Bolstering these efforts through further joint UK and French training could see thousands more Ukrainians brought to battlefield readiness.

The Prime Minister and President Macron will also discuss the role that NATO members can play in providing Ukraine with the security assurances they need to defend themselves in the long-term.

Beyond our immediate neighbourhood, the UK and France are also the European nations with the largest presence in the Indo-Pacific – a region crucial for our protection and prosperity, whose security is indivisible from that of Europe.

The Prime Minister and President Macron will discuss how to combine our strengths in the area to ensure permanent presence of likeminded European partners. This includes establishing the backbone to a permanent European maritime presence in the Indo-Pacific through the sequencing of more persistent European carrier strike group presence – coordinating the deployment of France’s Charles de Gaulle aircraft carrier, and the UK’s Queen Elizabeth and Prince of Wales carriers.

Alongside discussions on deepening the defence partnership between our countries, the leaders will also look at ways to transform our cooperation on issues including tackling illegal migration. This will build on the agreements made in 2022 to make the small boat route across the Channel unviable, save lives and dismantle organised crime groups while preventing illegal migration further upstream.

Last year our partnership with the French stopped more than 30,500 illegal crossings – nearly twice as many as in 2022.

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

The UK has announced its support of Ajay Banga for World Bank Group President.

“The UK, a long-standing partner of the World Bank, has announced its support of Ajay Banga for World Bank Group President. Mr Banga brings decades of experience leading global organisations, and a strong track record in establishing private – public partnerships. He will bring energy to the World Bank Group as it steps up its effort to tackle global challenges from extreme poverty to climate change.

“The Development Minister Andrew Mitchell and Chancellor of the Exchequer Jeremy Hunt met Mr Banga to discuss UK priorities for the World Bank and mobilising more resources, including from the private sector.
“The UK has played a leading role in shaping the Bank since its inception, as the joint-fifth largest shareholder of the International Bank for Reconstruction and Development (IBRD) and the third largest contributor to the International Development Association (IDA). The Bank will be a close partner in delivering the three-pronged approach to international development set out by Andrew Mitchell.

“Reflecting on Mr Banga’s recent visits to Côte d’Ivoire and Kenya, both of whom have since endorsed his candidacy, as well as the recent support of India, Andrew Mitchell reiterated the importance of engaging with, listening to, and delivering for all the countries that borrow from the World Bank and for the world’s poorest people – something that has always been a key priority of the UK.

“With the publication of the UK’s Women and Girls Strategy, Minister Mitchell expressed his hope that Mr Banga will be a proud advocate for gender equality and the empowerment of all women and girls, helping secure sexual and reproductive health and rights in developing countries.”

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

James Ireri, 44, from Surrey, has been banned for seven years after abusing two different Covid loan schemes during the pandemic.

Ireri was the director of Safi Care Ltd, which traded as a recruitment business from Surrey, supplying staff to care homes, from its incorporation in February 2015 until it went into liquidation in August 2021. The company had first traded as Safi Services Ltd until March 2016.

In May 2020, Ireri applied for a £50,000 Bounce Back Loan – the maximum amount allowable – for the company.

Bounce Back Loans were a government scheme to support businesses during the COVID-19 pandemic, whereby companies could apply for loans of up to 25% of their 2019 turnover, up to a maximum of £50,000.

Yet in August 2020, Ireri applied for another loan of £100,000 on behalf of Safi Care Ltd, this time from a different lender, and through a different Covid support scheme, the Coronavirus Business Interruption Loan.

Under the rules of the Covid loan schemes, eligible businesses were able to apply for a single loan under one or the other of the schemes, but not both. However, a business could obtain a second loan if the money was used to repay the first in full.

But when Safi Care Ltd went into liquidation in August 2021, the company owed more than £231,500, including the full amount of both loans.

An investigation by the Insolvency Service was triggered, but Ireri failed to provide adequate company accounts and investigators were unable to determine whether Safi Care Ltd had ever been eligible to apply for the initial Bounce Back Loan, based on the company’s 2019 turnover.

The lack of company books also meant that Ireri was unable to prove that he had used the loan money for the economic support of the business – another condition of the scheme.

Investigators discovered that more than £491,300 had been withdrawn from the company bank account between May 2020, when the first loan was received, and July 2021, shortly before Safi Care went into liquidation, including more than £80,000 for personal spending and around £93,900 of transfers into Ireri’s personal bank accounts.

The Secretary of State accepted a disqualification undertaking from James Ireri after he did not dispute he had caused Safi Care Limited to breach the terms of two Covid Support loans by failing to repay the Bounce Back Loan after obtaining the Interruption Loan, and by failing to provide adequate evidence of the company’s turnover or how the loan funds were used.

His ban started on 8 December 2022, and lasts for seven years. The disqualification prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

Neil North, Deputy Head of Investigation at the Insolvency Service, said:

“Bounce Back Loans and Covid Business Interruption Loans were designed to provide vital support for viable businesses through the pandemic. James Ireri abused not one, but two of these schemes.

“His ban should serve as a warning to other directors who misuse financial support available to companies that the Insolvency Service is able to bring your actions to account and remove you from the corporate arena.”

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

Experts appointed to identify best practice in turning university research into commercial success.

• Professor Irene Tracey CBE and Dr Andrew Williamson appointed to lead review into turning university research into commercial success.
• The independent review will identify best practice in the field to promote innovation and grow businesses of the future, as part of the Chancellor’s vision to nurture the world’s next Silicon Valley.
• Both experts will work hand-in-hand with universities, investors, and founders to advise government on how to continue to capitalise on the UK’s world-leading university research.

Two leading university and investor experts have been appointed to identify best practice in turning university research into commercial success, in order to help the UK fulfil its ambition to become a Science and Technology Superpower.

Professor Irene Tracey CBE, Vice-Chancellor of the University of Oxford and member of the Medical Research Council of UK Research and Innovation, and Dr Andrew Williamson, Chair of the Venture Capital Committee at the British Private Equity & Venture Capital Association (BVCA), will consult with universities, investors, and founders to identify best practice in university spin-outs – companies born through university research.

The financing of innovative science and technology companies like these is a key tenet of the UK Science and Technology Framework, with a view to strengthening the pipeline of high-quality science and technology businesses and spin-outs that drive growth in the economy across this decade.

The review aims to evaluate performance across universities and identify best practice in spin-outs and licencing deals for university intellectual property to promote the continued growth of the sector, which upholds the UK’s role at the forefront in seeding and growing innovative businesses of the future.

The UK university sector is a world-leader, playing an integral role in supporting economic growth and fuelling innovation across the country. The commercialisation of its research has also been on an upward trajectory over the last decade – investment in UK university spin-outs has increased more than five-fold to £5 billion in 2021.

The review launched today will seek to build upon those strengths, harnessing them to boost global competitiveness with other leading spin-out regimes like the US.

Chancellor of the Exchequer Jeremy Hunt said:

“Our universities are among the world’s best and are crucial driving forces for innovation and economic growth.

“We want the UK to be the world’s next Silicon Valley and to get there the government must help spin-outs to thrive. The expertise of Professor Tracey and Dr Williamson will be invaluable in ensuring we have the right support in place.”

Secretary of State for Science, Innovation and Technology Michelle Donelan said:

“UK universities are long-established global leaders in research and it’s no accident that four of the world’s top ten universities call Britain home.

“However, our world-leading research apparatus hasn’t always translated into the raft of game-changing business giants you would expect. We can and will do more to support university spin-outs to become global business titans that generate highly-skilled jobs and rapid economic growth for the UK. This review will clearly set out the actions we can take to make sure the UK is the ultimate incubator for world class innovative business.”

Professor Irene Tracey CBE and Dr Andrew Williamson said:

“We are delighted to be involved with this timely and important review. We recognise the fundamental role that university spin-outs play in driving UK economic growth and in stimulating an entrepreneurial culture and ecosystem in Britain.

“Now is the time to review what the best processes are for both creating and structuring spin-outs so that we’re ready for this anticipated expansion in innovation clusters around the country. We look forward to partnering with stakeholders from the academic, entrepreneurship, and investment communities to identify opportunities to increase the impact of this important sector of our economy.”

Professor Tracey and Dr Williamson will report back to the Chancellor and the Secretary of State for Science, Innovation and Technology in the summer.

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

A new chair has been tasked to lead a wide-ranging review into the UK’s research and investment landscape – which helps attract some of the largest companies in the world.

• A new review into the UK’s research and investment landscape will formally kick off on Monday (13 March) – City Minister Andrew Griffith is expected to announce tomorrow in a speech at FIX trading
• Rachel Kent, senior partner in financial services at Hogan Lovells, has been announced as chair of the Review.
• Move comes just weeks before Financial Services and Markets Bill expected to receive Royal Assent – enabling us to deliver more of the Edinburgh Reforms

The review, which was first announced as part of the government’s Edinburgh Reforms, will formally kick off on Monday 13th March. It seeks to develop concrete steps the government can take to enhance London’s status as Europe’s leading listings destination, and only second globally.

Rachel Kent, an expert and senior financial services partner at leading global law firm Hogan Lovells, has been tasked by City Minister Andrew Griffith MP with leading the review, and has been asked to report within three months.

Speaking at the FIX trading conference, City Minister Andrew Griffith is expected to say:

Research matters – and the right depth and breadth of investment research is vital to ensure markets operate well and companies obtain the valuations they deserve.

I am therefore pleased to announce City expert, Hogan Lovells Partner Rachel Kent, will spearhead the Investment Research Review.

With her experience and knowledge of the sector, as well as the regulatory framework, I have every confidence Rachel will do a fantastic job at speedily convening the sector, looking at the evidence and finding solutions to improve the UK market for investment research.

I look forward to receiving her recommendations.

Investment research provides investors with information that allows them to understand a company’s business model, performance, and risks, and therefore to assess its value as an investment.

Concerns have been raised about the quality and quantity of investment research produced in the UK as compared to other jurisdictions – particularly for certain sectors like tech and life sciences – and that this could undermine valuations and therefore the attractiveness of the UK as a place to list and make it harder for companies to access private capital.

Through the review, the UK is seeking to identify and address some of these concerns, to ensure London maintains its unique attractiveness as a listing’s destination.

Attracting some of the largest companies in the world to list in the UK supports a broader ecosystem providing high-skill, and high-paying jobs for Brits up and down the country – widening opportunity and increasing revenues for the public purse.

Addressing these issues will help to deliver on the government’s plan to grow the economy and become a leading technology superpower.

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

Michael Andrew Higgins, 56, and Dean Emanuel Miller, 41, both from Sheffield, have been disqualified as company directors for a total of 17 years after separate Insolvency Service investigations found that through their respective companies they had each abused the covid loan support scheme.

Michael Higgins was sole director of Steel Rigging Ltd, which traded as a company providing driving services for vehicles on outside TV broadcasts, from its incorporation in March 2015 until it went into liquidation in December 2021.

In November 2020, Higgins applied for a £20,000 Bounce Back Loan to support his business through the Covid-19 pandemic, stating on the application that the company’s turnover for 2019 had been £80,000.

Bounce Back Loans were a government scheme to support businesses during the Covid-19 pandemic, in which companies could apply for loans of up to 25% of their 2019 turnover, to a maximum of £50,000.

Under the rules of the scheme, any loan money allocated was to be used for the economic benefit of the business, and not for personal purposes.

But Steel Rigging Ltd went into liquidation in December 2021, owing £23,900 – including the full amount of the Bounce Back Loan – and prompting an investigation by the Insolvency Service.

Investigators found that the company’s turnover had in fact been just under £40,000 in financial year ending 31 March 2019, and around £43,100 for the following financial year, meaning that the company had claimed at least £9,200 more in loan money than it was entitled to.

They also discovered that Higgins had transferred the £20,000 to his own bank account over a period of 3 weeks in January and February 2021, without any evidence to show that these funds were used for the benefit of Steel Rigging Ltd.

And in a separate case, Dean Miller, sole director of IBODYTALKS Ltd, an online health and fitness business also based in Sheffield, applied for a £42,000 Bounce Back Loan for his company in May 2020.

Miller stated in the application that the firm, which was incorporated in April 2019, had been dormant until April 2020, and used a predicted turnover of £168,000 to apply for the loan. Under the rules of the scheme, businesses incorporated after 1 January 2019 were asked to estimate their turnover.

But the company went into liquidation in October 2021 owing more than £40,000, triggering an Insolvency Service investigation.

Investigators discovered that IBODYTALKS Ltd had in fact been trading since December 2019, after finding that five deposits totalling £588 had been made into the company bank account between then and April 2020.

They calculated that IBODYTALK’s projected turnover for the year could only have been around £101,100, meaning that it had received more than £16,700 of loan money to which it had not been entitled.

Investigators also found that in June 2020, a month after the company received the loan, Miller transferred £41,000 to a connected company, and did not provide any evidence to show the money was used for the benefit of IBODYTALKS Ltd.

The Secretary of State for Business, Energy and Industrial Strategy accepted disqualification undertakings from the two directors, after both did not dispute that they had caused their companies to receive Bounce Back Loans to which they were not entitled, and failed to show that the money had been used for the economic benefit of their companies..

Michael Higgins’ disqualification lasts for 8 years and started on 3 January 2023. Dean Miller was banned for 9 years, beginning 1 February 2023. The disqualifications prevent them from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

Lawrence Zussman, Deputy Head of Company Investigations at the Insolvency Service, said:

Covid support schemes were a lifeline to businesses across the UK, protecting jobs and preserving businesses.

Michael Higgins and Dean Miller abused the scheme, and their lengthy bans should serve as a reminder to others that the Insolvency Service will not shirk from its responsibility in taking action in order to protect the public and the taxpayer.

The press release issued by HM Treasury on 6 March 2023.

Takeaway owner from Oldham and company director from Kings Langley in Hertfordshire falsely claimed Bounce Back Loans totalling around £69,000 before dissolving their companies.

Rukia Begum, 46, from Oldham, and Simon Grant Gorgin, 63, from Kings Langley, have been disqualified for a total of 22 years after each separately claimed tens of thousands of pounds in covid support loans to which their companies were not entitled.

Begum was the sole director of New Polash Oldham Ltd, which traded as a takeaway from its incorporation in September 2018 until the company was dissolved in October 2020.

In May 2020, Begum applied for a £35,000 Bounce Back Loan for New Polash, stating that the takeaway’s turnover for 2019 was £154,000.

Bounce Back Loans were a government scheme to support businesses during the Covid-19 pandemic, in which companies could apply for loans of up to 25% of their 2019 turnover, to a maximum of £50,000.

Under the rules of the scheme, companies had to have been trading by 1 March 2020, and be actively trading at the time of the application. Any loan money allocated was to be used for the economic benefit of the business.

Two months after receiving the Bounce Back Loan, Begum applied to dissolve the company. She signed the application form, despite this stating that a failure to notify any creditors was an offence. When the Insolvency Service began its investigation in July 2020, the company owed the full amount of the loan.

Investigators found that Begum had exaggerated the turnover of her company by around £110,400, and that New Polash Oldham Ltd was only entitled to a Bounce Back Loan of around £11,000 based on the takeaway’s actual turnover.

She had also allowed the takeaway to continue trading in the three months before her application to dissolve New Polash Oldham Ltd – a breach of the Companies Act 1986.

In a separate case, Simon Gorgin, applied for a £45,000 Bounce Back Loan for his company, P3 Estates Ltd, in May 2020. Gorgin was sole director of the company, from its incorporation in April 2010 until it was dissolved in December 2021.

Yet Gorgin stated on the loan application that P3 Estate’s turnover in 2019 had been £180,000. A loan of £45,000 arrived in the company’s bank account the following day.

But a month earlier, in April 2021 he had applied to dissolve the company and by July of the same year P3 Estates still owed the full amount of the loan, prompting an investigation by the Insolvency Service.

Investigators discovered that P3 Estate Ltd had never traded, and had not been trading at the time of the loan application and so had not been entitled to receive any money under the scheme.

They also found that three days after the loan arrived in the company’s account, Gorgin had further breached the rules of the scheme by transferring the full £45,000 to his own bank account.

And Gorgin failed to notify the bank from which he had borrowed the money that he had applied to strike off the company – breaching a legal obligation for directors to notify creditors when dissolving their business.

The Secretary of State for Business, Energy and Industrial Strategy accepted disqualification undertakings from the two directors, after both did not dispute that they had caused their companies to receive Bounce Back Loans to which they were not entitled.

Simon Gorgin also did not dispute he had failed to cause his company to falsely apply for a Bounce Back Loan when it was not actively trading, failed to ensure the money was used for the economic benefit of the business and failed to give the required notice to the bank of the dissolution of his business.

Rukia Begum’s disqualification lasts for 10 years and starts on 9 February 2023. Simon Gorgin was banned for 12 years, starting on 5 January 2023. The disqualifications prevent them from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

A compensation order is being recommended to recover the money from both directors.

Peter Smith, Deputy Head of Dissolved Company Investigations at the Insolvency Service, said:

Bounce Back Loans were designed to help businesses to survive the pandemic. Rukia Begum and Simon Gorgin abused the scheme and took taxpayers’ money at a time when many businesses were in genuine need.

Their lengthy bans should stand as a warning that we will take action against directors who abuse government support schemes.