Tag: Treasury

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

Jonathan Hall has been reappointed as an external member of the Financial Policy Committee (FPC), the Chancellor of the Exchequer, Jeremy Hunt has announced.

Jonathan was appointed to the FPC in June 2020 and started his role at the end of August 2020. His first term as an external member of the Financial Policy Committee ends on 31 August 2023. His second 3-year term will end on 31 August 2026.

He is a member of the Founders Circle of the Institute for the Future of Work (IFOW) and is in the process of completing a PhD in Philosophy of Mind.

Jonathan helped establish Eisler Capital where he was a Portfolio Manager. He has also worked as an Advisory Director at Goldman Sachs where he sat on the Board and Executive Committee of ISDA, the Board of Tradeweb, the Financial Stability Board Market Participants Group on reforming Interest Rate Benchmarks, and the Bank of England Working Group on Risk-Free Reference Rates.

Prior to this, Jonathan spent 10 years at Goldman Sachs in London and New York. He became a Managing Director in 2006 and Partner in 2008. Before that, Jonathan worked at Credit Suisse Financial Products in London, Tokyo, Sydney and Hong Kong.

The press release issued by HM Treasury on 28 February 2023.

A national hub for fintech excellence will formally launch at an event in Leeds today, seeking to boost the sector’s growth and helping it to achieve truly global scale.

• a new government-backed national hub for fintech will formally launch at an event in Leeds on Tuesday (28th), boosting growth and innovation in the UK
• the Centre for Finance, Innovation and Technology (CFIT) will champion the UK’s world-leading sector, helping firms to achieve truly global scale
• the UK Infrastructure Bank has today (28 February) also announced that it is expanding its presence at its Leeds office – as it gears up to create around 280 job

The Centre for Finance, Innovation and Technology (CFIT) is the first of its kind in the world and is backed by £5.5 million of Treasury and City of London Corporation funding.

This new body seeks to build on the dominance of the UK’s fintech sector – that supports around 2,500 firms, tens of thousands of jobs in the UK, and is second globally only to the US for fintech investment – powering ahead of economic behemoths such as China and India.

It will provide a much-needed boost to people and businesses up and down the country, enabling them to benefit from new waves of technological change and innovation – widening consumer choice, cutting costs, and increasing efficiency for firms.

Economic Secretary to the Treasury, Andrew Griffith said:

The UK is a world-leading location for fintech growth and investment – it’s a real British success story and one that’s spread across the whole UK. Today’s launch of the Centre for Finance, Innovation and Technology doubles down on this, boosting prosperity and investment in exciting cities for growth and innovation such as Leeds.

It’s also great to see the UK Infrastructure Bank delivering on its mission to invest in the clean energy revolution and on much needed infrastructure – using its £22 billion of taxpayers’ money to help communities across the UK.

Charlotte Crosswell OBE, Chair of CFIT, said:

The launch of CFIT today represents a significant moment for the UK’s fintech sector and our economy more widely. This organisation will enable us to come together as a sector to start breaking down barriers that the fintech sector is facing while creating a clear path for our homegrown fintech companies to achieve global scale, impact and success.

Today’s announcement marks an important first step in our work supporting the growth and development of the UK fintech sector by empowering its talented innovators and trailblazers in every corner of the country.

Ron Kalifa, Chairman of Network International and author of the Kalifa Review of UK Fintech, said:

I am thrilled to see the Centre for Finance, Innovation and Technology (CFIT) – one of the key recommendations of the 2021 Kalifa Review – launch in Leeds today.

The Centre will be instrumental in fostering collaboration between industry, academia and policymakers, promoting innovation, and turbo-charging the adoption of new technologies for businesses and consumers. I have no doubt that it will enable the UK’s fintech sector to become more competitive, and I look forward to seeing the impact it will have across the UK in the weeks, months and years to come.

The Centre has been established in response to Ron Kalifa’s Review into UK fintech. Since this report was published in 2021, government has been working across industry and regulators to deliver on the recommendations, including introducing a fast-track visa system for fintech scale ups, implementing an FCA scale box allowing innovators to trial new products, and reforming our listings regime to maintain the UK’s position as Europe’s dominant capital markets hotspot.

At launch event CFIT will announce new coalitions of experts from across finance, technology, academia and policy-making. They will focus on helping fintechs achieve truly global scale, building on the UK’s recent success which saw the UK grow from two ‘unicorn’ firms (over $1 billion valuation) in 2020, to today where we have more than 20 – almost half of all the fintech unicorns in Europe.

CFIT will announce the establishment of financial innovation hubs with comprehensive reach across the UK’s nations and regions – including in key growth centres such as Leeds. The city has seen enormous fintech growth since 2020, with its number of fintech firms more than doubling to 107, and valuation of firms doubling to reach £710 million – supporting over 7,500 jobs.

CFIT’s Chair Charlotte Crosswell will also announce a range of new partnerships she and her team have agreed to support CFIT’s growth ambitions. Further details on these new partnerships, and which areas will be established as innovation hubs will be set out at the event.

Ahead of the launch, the Economic Secretary, Andrew Griffith MP, will be visiting the UK Infrastructure Bank’s (UKIB) site in Leeds, where he will officially open expanded office space for UKIB staff, as they gear up to take on around 280 staff. The Bank currently has around 180 staff, with an increasing number of permanent employees.

Since its introduction 20 months ago, the bank has announced ten significant investments in sectors ranging from solar energy to fibre broadband, and has crowded in £4.6 billion of private finance in the process.

The City of London Corporation Policy Chairman, Chris Hayward, said:

The UK’s fintech sector is a true British success story. The launch of the Centre for Finance, Innovation and Technology (CFIT) today will help to maintain our dominant position globally. I look forward to continuing to work in partnership with CFIT to further unleash the potential of this sector.

UK Infrastructure Bank CEO, John Flint said:

The fact we are anchored in Leeds is a key part of our identity. It aligns with our mission to drive up regional and local economic growth. It also makes us part of a growing movement, with many other significant organisations – for example, Channel 4, the Financial Conduct Authority, and the National Infrastructure Commission – establishing or expanding bases here. I am grateful to the Minister for helping us to mark this milestone, as we expand our presence in the city.

Today’s announcements deliver on the Chancellor’s ambition for the UK to become a technology superpower, as set out recently in his Bloomberg speech. And they deliver on the Prime Minister’s five priorities, helping to grow the economy.

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

Jane Ridley and Hughie O’Donoghue have been reappointed to the Royal Mint Advisory Committee (RMAC) today (20th February).

Both are existing members of the RMAC, having served two terms between 1st January 2015 and 31st December 2022.

Their third term will now conclude on 31st December 2024.

Economic Secretary to the Treasury, Andrew Griffith said:

“I am delighted that Jane Ridley and Hughie O’Donoghue have agreed to serve a third term on the Royal Mint Advisory Committee.

“Their expertise and experience serving on the Committee for a number of years has, and will continue to provide effective input into the development of UK coin design.”

The Royal Mint Advisory Committee on the Design of Coins, Medals, Seals and Decorations was established in 1922 and advises the Chancellor on new designs for United Kingdom coins. It also advises government departments on new designs for official medals and seals. Its members are appointed by HM The King on the recommendation of the Prime Minister.

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

Director of haulage company fraudulently applied for a £50,000 Bounce Back Loan and then applied to dissolve the company.

Kulwinder Singh Sidhu, 58, from Stanwell, has been sentenced to 12 months imprisonment, after pleading guilty to offences under the Companies Act and the Fraud Act, having abused the Bounce Back Loan financial support scheme in 2020.

Sidhu was director of Wavylane Ltd, a haulage company based in Stanwell, and which had been trading since 2010.

On 9 June 2020 Sidhu applied for a £50,000 Bounce Back Loan from his bank on behalf of his business. Under the Bounce Back Loan scheme, genuine businesses impacted by the pandemic could take out interest-free taxpayer-backed loans of up to a maximum of £50,000.

The loan was paid into the company bank account and on 26 June 2020 Sidhu filed paperwork with Companies House to have the business dissolved, having transferred the funds to his personal bank account within two days of receipt.

The striking-off application to dissolve the company was explicit that interested parties and creditors, such as a bank with an outstanding loan, must be notified within seven days of making an application to dissolve a company. The form also highlighted that failure to notify interested parties is a criminal offence, however Sidhu did not follow these rules.

The company was dissolved in October 2020, and was subsequently identified as likely Bounce Back Loan fraud by the Insolvency Service and cross-government counter-fraud systems.

The Insolvency Service investigation found that Sidhu had fraudulently overstated the company turnover in the Bounce Back Loan application, and within two days of receiving the money he had transferred it to his personal account before dispersing the funds to his son and another company.

He pleaded guilty to charges under the Companies Act 2006 and Fraud Act 2006 at Guildford Crown Court on 19 December 2022. He was sentenced on 13 February 2023 at Guildford Crown Court.

The court imposed a confiscation order for £50,000, and Sidhu has paid this in full.

In addition to the custodial sentence, Sidhu was also disqualified as a director for six years.

Julie Barnes, Chief Investigator at the Insolvency Service said:

Our action has ensured repayment of the loan money and taxpayers have not been left out of pocket.

Any other company directors who might be tempted into dissolving their business to try to keep public money they are not entitled to, should be aware they are risking a lengthy prison term.

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

The latest Tax-Free Childcare statistics reveal more than 405,000 families used the scheme in December 2022.

More than 405,000 families saved on childcare costs in December thanks to Tax-Free Childcare and HM Revenue and Customs (HMRC) is urging those yet to sign up not to miss out.

The latest figures revealed by HMRC show £41.5 million in government top-up payments were made to working families across the UK in December 2022 and an increase of more than 77,500 families using the scheme compared to December 2021. Each family saved up to £2,000 a year per child or £4,000 if their child is disabled.

Tax-Free Childcare is a financial support for working families with children up to the age of 11, or 16 if their child has a disability. The government top up can be used to pay for any approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries.

Opening a Tax-Free Childcare account is quick and easy and can be done at any time of the year.

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

We want to help families get the most out of their finances and Tax-Free Childcare can help pay towards their childcare costs. Search ‘Tax-Free Childcare’ on GOV.UK to get started.

For every £8 paid into the Tax-Free Childcare account, families automatically receive an additional £2. Families can save up to £500 every three months (£2,000 a year) for each child or £1,000 (£4,000 a year) if their child is disabled.

More than one million families in the UK are entitled to some form of government childcare support and the government is encouraging those eligible not to miss out on their entitlements. Families can find out more about Tax-Free Childcare via the Childcare Choices website.

The government is offering help for households. Check GOV.UK to find out what cost of living support, including help with childcare costs.

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

Thomas Whyte claimed £50,000 Bounce Back Loan for dormant Scottish restructuring business, and withdrew cash before firm was wound up.

Thomas Whyte, 76, from Carluke, was the sole director and shareholder of Fortress Restructuring Ltd until it was wound up following an Insolvency Service investigation in February 2021.

In May 2020, Whyte applied for a £50,000 Bounce Back Loan for the company, stating on the application that its turnover was £250,000.

In October 2020 representatives of Fortress Restructuring Ltd advised the Insolvency Service that it had no trading address, had never traded and was not currently trading.

Following the liquidation, investigators discovered that up to the end of April 2019, accounts filed with Companies House showed that Fortress Restructuring Ltd was dormant, and the company’s only asset was £100 share capital.

On the day Whyte applied for the loan, the company in fact had just £203 in its bank account, and less than £1,000 had been received into it over the preceding year.

The Secretary of State for Business petitioned for the company to be wound up in the public interest, and the petition was presented at the Court of Session and issued publicly in the Gazette on 1 February 2021, with a copy emailed to Whyte four days later.

Thomas Whyte denied to the Insolvency Service that he had received the petition until late February, although he acknowledged receipt of the email on 5 February 2021, and between 5 and 16 February the balance on the company bank account reduced from £28,150 to a little over £1,590 with payments made to Whyte, the company accountant and others.

The Secretary of State accepted a disqualification undertaking from Thomas Whyte on 7 February 2023 after he did not dispute he had applied for a Bounce Back Loan for his company to which it was not entitled, and had disposed of substantial funds when he knew, or ought to have known, the company was being wound up.

His ban begins on 28 February 2023 and lasts for 10 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. The Insolvency Service investigation did not find evidence that warranted any disqualification action against any other individuals in relation to Fortress Restructuring Ltd.

The company’s liquidator has recovered £37,500 from Whyte towards the £50,000 owed.

Rob Clarke, Chief Investigator at the Insolvency Service, said:

Bounce Back Loans were for trading companies adversely affected by the pandemic and to be spent on legitimate business expenses.

The fact that Fortress had filed dormant accounts, and only £949 had passed through its bank account should have made it abundantly clear to Thomas Whyte that his company was not entitled to a £50,000 loan, yet he took it anyway and used the majority of that money for his own benefit.

We thank the liquidator for their efforts which have seen £37,500 recovered, and repeat that we will not hesitate to take action against directors who have abused Covid-19 financial support in this manner.

The press release issued by HM Treasury on 7 February 2023.

A digital pound is likely to be needed in the future according to a consultation paper published today by HM Treasury and the Bank of England.

• the Treasury and the Bank of England are consulting on a potential digital pound, or central bank digital currency (CBDC)
• a digital pound would be issued by the Bank of England and could be used by households and businesses for everyday payments in-store and online
• if introduced a digital pound would be interchangeable with cash and bank deposits, complementing cash
• no decision has been taken at this stage to introduce a digital currency

The Bank of England will now take forward further research and development work and the public are being invited to give their views on the scheme to be taken forward.

The consultation is being launched because both HM Treasury and the Bank want to ensure the public have access to safe money that is convenient to use as our everyday lives become more digital, while supporting private sector innovation, choice and efficiency in digital payments.

Chancellor of the Exchequer, Jeremy Hunt said:

While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that’s trusted, accessible and easy to use.

That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability.

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

As the world around us and the way we pay for things becomes more digitalised, the case for a digital pound in the future continues to grow. A digital pound would provide a new way to pay, help businesses, maintain trust in money and better protect financial stability.

However, there are a number of implications which our technical work will need to carefully consider. This consultation and the further work the Bank will now do will be the foundation for what would be a profound decision for the country on the way we use money.

What would a digital pound look like?

• It would replicate the role of cash in a digital world, so that it is risk-free, highly trusted and accessible
• £10 of a digital pound would always be worth the same as £10 of cash
• Issued by the Bank of England, widely available and convenient to use
• Subject to rigorous standards of privacy and data protection – neither Government nor the Bank would have access to personal data and holders would have the same level of privacy as a bank account
• Accessed through digital wallets offered to consumers by the private sector through smartphones or smartcards
• Intended for payments, online, in-store, and to friends and family, rather than savings, with no interest paid on holdings
• Initial restrictions on how much an individual or businesses could hold

Countries around the world are considering similar proposals including the Eurozone and the US and China.

Unlike cryptoassets and stablecoins, the digital pound would be issued by the Bank of England and not the private sector. We are separately already legislating to protect Access to Cash.

This means that it will have intrinsic value and not be volatile, unlike unbacked cryptoassets as there would be a central authority to back it.

The needs of vulnerable people are being considered in the digital pound design process ensuring that it would be simple and straightforward to use and understood and trusted by the public as a form of money.

A decision about whether to implement a digital pound will be taken around the middle of the decade and will largely be based on future developments in money and payments. The earliest stage at which the digital pound could be launched would be the second half of the decade.

The press release issued by HM Treasury on 3 February 2023.

The United Kingdom and international coalition partners have announced price caps on Russian oil products.

• The Price Cap Coalition of the G7, the European Union and Australia have set caps on the price of seaborne Russian oil products, effective from 05 February 2023.
• High-value Russian exports such as diesel and gasoline, will be capped at $100 while lower-value products such as fuel oil will be capped at $45.
• Chancellor Jeremy Hunt hails the efforts of the UK and its allies in throttling the revenues fuelling Vladimir Putin’s illegal war in Ukraine.

The UK and its coalition partners will only provide services facilitating the maritime transport of refined oil products originating in Russia if the goods are traded at or beneath the cap levels of $100 for high-value products like diesel and $45 for low-value products like fuel oil. These prices will be kept under review.

This follows the $60 price cap on Russian crude oil that came into force on 5 December last year. Initial signs suggest that the crude oil cap is successfully curtailing Putin’s ability to use revenues from oil sales to finance his illegal war while minimising disruption to global supply. Russia’s flagship crude oil is now selling around $40 lower than global benchmarks.

The UK government has already introduced an import ban on Russian oil products; therefore, the caps will not be used by the UK.

Chancellor of the Exchequer, Jeremy Hunt, said:

“Undermining Putin’s war machine through further sanctions on its funding streams will ensure the Russian government faces the full consequences of its unjustifiable actions.

“The UK has already banned the import of Russian oil products, and we stand shoulder to shoulder with our allies in continuing to pile the pressure on Putin’s revenues while standing in solidarity with the Ukrainian people.”

G7 finance ministers agreed to capping the price of Russian seaborne oil and refined oil products in September 2022 as a way of undermining 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 UK has been front footed in its engagement with international allies and has worked closely with industry and US partners to lead design of the caps. This collaboration has been key given the major role of UK services in facilitating maritime trade. For example, the UK is a global leader in the provision of protection and indemnity (P&I) insurance cover which relates to third-part liability claims – 60% of the global cover provided by the International Group of the P&I clubs is written in the UK.

Given the number of varied oil products on the market, two caps have been introduced to cover two categories of refined oil products. ‘Premium-to-crude’ products are those of high export value often used for transport and electricity generation, such as kerosene-based jet fuel and diesel, while ‘discount-to-crude’ pertains to products of a lesser value like naphtha. The two-cap approach has been introduced as this is the simplest to implement and most workable for industry.

To implement the price caps, the government has laid domestic legislation and published UK guidance to help industry prepare for and implement the requirements of each cap. The guidance will be periodically updated.

The press release issued by the HM Treasury on 1 February 2023.

HMRC has revealed that 11.7 million customers filed their tax return for the 2021 to 2022 tax year by 31 January.

A record 11.7 million customers submitted their tax returns on time, HM Revenue and Customs (HMRC) has revealed.

On 31 January, 861,085 customers filed online to meet the deadline, some with minutes to spare. There were 36,767 customers who filed in the last hour before the deadline, but the peak hour for filing on the day was 16:00 and 16:59, when 68,462 customers submitted their tax return.

More than 12 million customers were expected to file a Self Assessment tax return for the 2021 to 2022 tax year. HMRC is urging customers who missed the deadline to submit theirs as soon as possible or risk facing a penalty.

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

Thank you to the millions of customers and agents who got their tax returns in on time. Customers who have yet to file, and who are concerned that they will not be able to pay in full, may be able to spread the cost of what they owe with a payment plan.

Search ‘pay my Self Assessment’ on GOV.UK to find out more.

The Self Assessment payment deadline was also 31 January. If customers are yet to pay any outstanding tax, HMRC is urging them to do so as soon as possible. There are many ways for customers to pay, including online, using the HMRC app, by bank transfer, or at their bank. Payment options are listed at GOV.UK.

Customers can plan ahead for their 2022 to 2023 tax bill and set up a regular payment plan to help spread the cost. HMRC’s Budget Payment Plan enables customers who are up to date with previous payments to make regular weekly or monthly contributions towards their next tax bill.

A Budget Payment Plan is different from payments on account, which are usually due by midnight on 31 January and 31 July.

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

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

The plans will provide clarity to consumers and businesses.

• The government will set out ambitious plans to robustly regulate cryptoasset activities – providing confidence and clarity to consumers and businesses alike
• Consultation proposals include strengthening rules for crypto trading platforms and a robust world-first regime for crypto lending
• Announcement delivers on financial services roadmap by embracing technological change and innovation, delivering on the Prime Minister’s plan to grow the economy

Ambitious plans to protect consumers and grow the economy by robustly regulating cryptoasset activities have been announced by the government.

Cryptoassets – commonly known as ‘crypto’ – are a relatively new, diverse and constantly evolving class of assets that have a range of potential benefits, as well as posing risks to the consumer.

As is common in emerging technology markets, the crypto sector continues to experience high levels of volatility and a number of recent failures have exposed the structural vulnerability of some business models in the sector.

Our robust approach to regulation mitigates the most significant risks, while harnessing the advantages of crypto technologies. This enables a new and exciting sector to safely flourish and grow, boosting jobs and investment.

Economic Secretary to the Treasury, Andrew Griffith said:

“We remain steadfast in our commitment to grow the economy and enable technological change and innovation – and this includes cryptoasset technology.

“But we must also protect consumers who are embracing this new technology – ensuring robust, transparent, and fair standards.”

Under plans set out by the government today (1 February), it will seek to regulate a broad suite of cryptoasset activities, consistent with its approach to traditional finance.

These proposals will place responsibility on crypto trading venues for defining the detailed content requirements for admission and disclosure documents – ensuring crypto exchanges have fair and robust standards.

The proposals will also strengthen the rules around financial intermediaries and custodians – which have responsibility for facilitating transactions and safely storing customer assets. These steps will help to deliver a robust world-first regime strengthening rules around the lending of cryptoassets, whilst enhancing consumer protection and the operational resilience of firms. As part of this approach, the consultation will seek views on improving market integrity and consumer protection by setting out a proposed crypto market abuse regime.

In addition, to address industry concerns about the small number of Financial Conduct Authority (FCA) authorised cryptoasset firms who can issue their own promotions, HM Treasury is also introducing a time limited exemption. Cryptoasset businesses that are registered with the FCA for anti-money laundering purposes will be allowed to issue their own promotions, while the broader cryptoasset regulatory regime is being introduced.

This approach delivers on the original policy intention of the measure to promote innovation, enhance consumer protection and ensure that cryptoasset promotions can be held to equivalent standards as promotions of financial services products with similar risk profiles.

Further information

• Today’s consultation (published 1 February) will close on 30 April 2023, after which, the government will consider feedback and work to set out its consultation response. Once legislation is laid, the Financial Conduct Authority will consult on its detailed rules for the sector
• In April 2022, the then Economic Secretary, John Glen MP, set out ambitious plans for the UK to become a global hub for cryptoasset technology
• Today’s announcement delivers against these plans, positioning the UK as a safe jurisdiction for cryptoasset activity to take place, fostering innovation and providing firms clarity over the planned regulatory framework.
• The consultation builds on previous HM Treasury proposals, which focused on stablecoins and the financial promotion of cryptoassets
• Proposals are centred around a number of important cryptoasset activities – including exchange activities, custody activities and lending activities, which the government is intending to bring into the regulatory perimeter for financial services
• For each activity the consultation sets out key design features of the regime covering themes such as prudential requirements, data reporting, consumer protection, location policy and operational resilience
• The consultation paper also proposes regimes for a range of cross-cutting issues which apply across cryptoasset activities and business models, including market abuse and cryptoasset issuance and disclosures