Tag: Treasury

The press release issued by HM Treasury on 9 June 2003.

Chancellor Gordon Brown today announced the appointment of Stuart Etherington, Sir Jeremy Beecham, Sir Graham Hall and David Harker to the Standing Committee on euro Preparations.

The Chancellor said:

“The new members all bring special areas of expertise – local government, the voluntary sector, the consumer sector and regional development – to the Committee. I am sure that they will all make a significant contribution to future planning  by the committee on euro preparations.”

The Committee leads planning on Euro preparations across the whole economy.

The press release issued by HM Treasury on 12 June 2003.

Professor Nicholas Stern is to be the new Second Permanent Secretary and Managing Director, Budget and Public Finance, the Treasury announced today.

Professor Stern will take over from Sir Robert Culpin, who is retiring in the autumn, and will also replace Gus O’Donnell, the Treasury’s Permanent Secretary, as head of the Government Economic Service.  The appointment will take effect from 29 September 2003.

Nick Stern, 57, has been Chief Economist and Senior Vice President at the World Bank, Washington D.C. since July 2000.  From 1994 until late 1999 he was Chief Economist and Special Counsellor to the President at the European Bank for Reconstruction and Development (EBRD).

Chancellor of the Exchequer, Gordon Brown said:

“I am delighted to welcome Nick Stern to the Treasury as Second Permanent Secretary.  Nick is a first class economist with a global reputation and enormous experience.  He will be a huge asset to the Treasury and Government economic policymaking”.

Gus O’Donnell, Permanent Secretary to the Treasury, said:

“Nick is one of the world’s leading economists.  He has an outstanding track record in both the academic world and in front line economic policymaking and delivery at the World Bank and the EBRD.  That someone of his calibre has chosen to come here is a tribute to the Treasury and its reputation.”

World Bank President Jim Wolfensohn commented:

“While we will miss Nick, we also recognize that this is a tremendous honour and opportunity for him. He has made an outstanding contribution to the work of the Bank over the last three years that we, and all our stakeholders, appreciate.

“Amongst other things, he has played a key role in helping us to develop the Bank’s strategic framework, and to maintain our focus on poverty in all its dimensions. He has also been an effective advocate on issues of economic growth and trade.”

Prior to 1994, Professor Stern’s career was mostly in academic life. After starting his teaching career at Oxford, he went on to hold chairs at the London School of Economics and Warwick (he is at present on leave from the LSE).  He has taught and researched at the Massachusetts Institute of Technology, and in France, India, China and Japan and at the International Monetary Fund.  His books include works on public finance, tax reform, the theory of economic growth, and the role of the state.

The press release issued by HM Treasury on 17 June 2003.

HM Treasury and the Office of the Deputy Prime Minister in conjunction with the Local Government Association have today issued guidance for local authorities on euro preparations. The guidance offers advice on high-level business and communications issues that local authorities need to consider in their preparations for the euro.

Chancellor Gordon Brown said;

“As major service providers, community leaders, employers and key communicators to citizens, local authorities would have a critical role to play during any changeover to the euro. The publication of this guidance and the third outline National Changeover Plan will lead to a period of information and discussion throughout the country. As part of wider public sector preparations, it is now important that local authorities consult local communities and develop their own changeover plans.”

The Deputy Prime Minister added;

“I welcome the issue of guidance to local authorities on euro preparations. This, along with the appointment of Sir Jeremy Beecham, Chair of the LGA, to the Chancellor’s Standing Committee on Euro Preparations, highlights the important role local government would play during any changeover and reaffirms our commitment to work in partnership with and consult local government on preparations for the euro.”

The press release issued by HM Treasury on 18 June 2003.

The Department for Transport and HM Treasure today jointly published a consultation document on road fuel gases. Transport Minister David Jamieson and the Economic Secretary to the Treasury John Healey invited stakeholders’ and users’ views on how Government can best ensure that future support for LPG and natural gas continues to reflect environmental and other policy objectives.

In Budget 2003, the Chancellor announced that the Government would consult on future support, with a view to announcing decisions on future duty rates and other forms of support in the 2003 Pre-Budget Report.  The 13 week consultation begins today.

Inviting views, David Jamieson said:

“We have come a long way with LPG. Due to Government support we have tens of thousands of LPG cars on the road and the fuel is now available right across the country.  Eight car and van manufacturers now produce LPG models as a showroom option, and conversions are available for many more cars.  There is increasing use of natural gas for heavy vehicles.  This represents major progress in the UK’s use of alternative fuelled vehicles.  However, it is important that Government support for new technologies is targeted to ensure the best environmental benefits and this is what the consultation aims to ensure.”

John Healey said:

“Tax has played a powerful part in encouraging more use of green fuels. We plan to build on this progress. In Budget 2001 we cut duty on road fuel gases and announced a freeze in real terms for three years.  Since then, the environmental performance of both road fuel gases and conventionally-fuelled vehicles has improved.  We now need to set out a clear strategy from 2004 which ensures that support for road fuel gases continues to reflect our environmental and other policy objectives.  We will listen carefully to others about the nature and design of these forms of support”.

The press release issued by HM Treasury on 18 June 2003.

The Government is today amending the Finance Bill to reduce the tax on bingo by a further £10 million per year, enabling the industry to increase prize money for the UK’s three million bingo players, on top of the £25 milllion announced by the Chancellor in his Budget.

The amendment to the Finance Bill tabled by Economic Secretary to the Treasury, John Healey, is building on reforms set out by the Chancellor in the Budget and give a total tax cut of £35 million for bingo.

When introducing this change, John Healey MP said:

“Bingo is a popular pastime, and one which spans the generations. We want to ensure that it is fairly and proportionately taxed. With this amendment, we have further simplified and reduced the taxation facing the bingo industry – with a total tax break of £35 million.

“We believe this provides a good basis for the industry to increase their prizes and attract new players into Britain’s bingo clubs. We will continue to work closely with the industry to see what further progress can be made.”

The Government is tabling this amendment after extensive consultation with the Bingo Association, Gala and Mecca, all of which support this measure. The Government is bolstering its reforms to the taxation of bingo, delivering a further simplification to the regime.

The press release issued by HM Treasury on 19 June 2003.

A consultation about the scope for relocating certain public sector activities from London and the South East to other parts of the UK has been launched today.

In Budget 2003 the Chancellor, Gordon Brown, announced that he and Deputy Prime Minister, John Prescott, were commissioning Sir Michael Lyons to undertake an independent review into the scope for relocating some civil service and public sector jobs.

Sir Michael’s review will look at ways of modernising Government and improving delivery of public services while, at the same time, securing good value for money and quality outcomes for the taxpayer.

Sir Michael will be seeking the views of interested parties on the advantages and disadvantages of decentralisation and of relocation of public sector jobs.  He is particularly interested to:

• learn of previous and current relocations of activity, both in the private and public sectors;
• discover how businesses take advantage of advances in modern technology and electronic communications to allow people to be based away from the operational centre;
• learn about the strengths of locations outside London and the South East;
• hear views about the likely economic impact on the regions of moving public sector activities from London and the South East;
• receive views on how policy development and service delivery would be affected if further decentralised.

Commenting on the consultation, the Chancellor said:

“I attach the greatest importance to Sir Michael’s independent study.  It is essential that, in our determination to improve the quality of public services and secure a good deal for the taxpayer, we also look at alternative ways in which public services might be delivered including relocation to the regions and nations of the United Kingdom.   I hope that many individuals and organisations will contribute to Sir Michael’s review and look forward to studying his report and recommendations.”

The Deputy Prime Minister also commented:

“I welcome the opportunity for businesses and people to contribute their views and experiences to Sir Michael on relocating public sector jobs from London and the South East to the regions.  As well as ensuring better quality public services and value for money for the taxpayer, we need to improve the regional balance of economic activity.  This review will help us to do that.”

Sir Michael Lyons added:

“It is essential that we hear the views of as many people and organisations as possible.   Learning from past relocations, understanding the strengths of possible new locations, bottoming out the economic impact on the regions and visualising how government might look and perform as a result of further decentralisation will be key to the outcome of my review.  I would therefore urge those who can contribute to my study to do so – their contributions will be gratefully received.”

The press release issued by HM Treasury on 27 June 2003.

Chief Secretary Paul Boateng has today given the Financial Services Authority (FSA) leave under the Financial Services and Markets Act 2000 to recognise EDX London Limited as a recognised investment exchange.

The decision was taken after the Treasury received advice from the Director-General of Fair Trading which concluded that the rules of EDX London do not appear likely to restrict, distort or prevent competition to any significant extent.

Paul Boateng said

“EDX London is a welcome addition to the list of UK Recognised Investment Exchanges. It is further proof of the strength of the UK’s financial regulatory system and of London being one of the best places in the world to do business.”

The press release issued by HM Treasury on 2 July 2002.

Credit Union members will be given similar protection to bank customers under new regulatory measures that come into effect today.  The new arrangements will be overseen by the Financial Services Authority (FSA).

Ruth Kelly, Financial Secretary to the Treasury, said:

“Today’s announcement is a milestone for the credit union movement. For the first time credit union members will receive a similar level of protection to that afforded to bank and building society customers.

The Government believes that credit unions have an important role in tackling financial exclusion, encouraging saving and providing affordable credit. FSA regulation will allow credit unions to offer a wider range of services and compete more effectively for deposits.

The Government received strong support from across the credit union movement for regulation by the FSA. There has been a wide-ranging consultation to ensure that the new regime is proportionate.”

The press release issued by HM Treasury on 9 July 2002.

Ruth Kelly, Financial Secretary to the Treasury, today welcomed the publication of Ron Sandler’s review of the market for medium and long-term retail investment commissioned by Chancellor Gordon Brown.

Ruth Kelly said:

“This report sets out a vision of a simpler, more transparent and more competitive medium and long-term savings industry which the Government endorses.

Ron Sandler’s recommendations have the potential to benefit consumers, the retail investment industry and improve the workings of the market. They will bring greater competition, greater efficiency and more productive investment. If we can produce simpler, safer products that consumers can understand and that are economic for providers to sell, we will be able to boost the level of saving.”

Work and Pensions Secretary Andrew Smith welcomed the support Mr Sandler’s proposals give to the pensions agenda:

“Millions of people depend on the retail savings industry for their income in retirement. I welcome any proposals which can give them a better deal.”

Key recommendations of the Review include:

• a set of safer, good value, easy to understand ‘stakeholder? investment products. These would be able to be sold through a lighter touch regime for sales and advice of investment products;
• Reforms to with-profits policies to make their structure and management simpler and more transparent;
• Tax measures aimed at simplifying the current regime for retail savings products.

Ruth Kelly added:

“A set of ‘stakeholder products? would provide safer, good value products that ordinary people can understand. Greater focus on product design can clear the way for a streamlined sales process. This will make it profitable for providers and distributors to sell to a wider range of less well-off people. That will encourage people to save.

Building on Ron’s suggestions, we will be consulting consumers representatives, the industry and the FSA on these stakeholder products and their design. We will be working closely with the FSA who will separately want to consult on the regime for their sale.

The proposals also represent a real opportunity for the industry and others to think radically about the provision of financial advice. They offer the potential to extend access to low cost, good quality, generic advice to the mass market.

The Report tackles longstanding concerns about with profits policies. While at the same time recognising the value that many people give to being able to smooth out investment returns. And he has recognised that change in this market cannot come overnight. This balanced approach provides an opportunity to move to a new stable future for with profits.

Ron’s proposals on distribution, consumer education and investment will produce a more transparent, better-informed and hence more competitive market.

We will consider the proposals on tax as part of the Budget process in the usual way.”

The press release issued by HM Treasury on 12 July 2002.

The Government today published “Towards Full Employment in the European Union”. The paper sets out the challenges facing EU labour markets and the benefits of meeting the employment targets set at the Lisbon and Stockholm summits.

Ruth Kelly, Financial Secretary to the Treasury said:

“The Government firmly believes that through concerted and joined up action and the spreading of best practice Europe can create the quantity and quality of jobs necessary to deliver new levels of prosperity and social justice.

Employment matters.  It is key to prosperity and social inclusion.  It lies at the heart of our domestic policies.  And it is central to the vision of a dynamic, competitive and socially inclusive knowledge-based economy set out by European Union leaders at the Lisbon summit in 2000.”

Notes to editors

1.  The European Union contains 15 labour markets, with different cultures, traditions, frameworks and institutions. Yet we share a common goal – employment opportunity for all. The Government has set out its views on the challenges facing labour markets in the UK and other EU Member States in moving towards our long-term goal of full employment in the EU.

2. The EU has three employment targets for 2010 (70% total employment rate, 60% female employment rate and 50% older workers employment rate) and though the UK already has employment levels in each group, above the target rates, the EU as a whole must improve labour market performance and increase participation in order to meet these targets. There are real and tangible benefits to Member States and the EU as a whole in meeting these targets, not least to productivity and economic growth. Moreover, the paper shows the key importance of employment  policy in promoting social inclusion.

3. Since 1997, employment in the UK has increased by 1.5 million.  Long-term unemployment among young people has been virtually eradicated.  In Europe, 10 million net new jobs have been created in the five years since the launch of the European Employment Strategy or Luxembourg Process.

4. The successful labour market policy mix will vary according to a Member State’s needs structures and institutions.  But EU experience makes it possible to identify a number of key elements.  These include tax-benefit reform, active labour market policy, promoting equally opportunities, well designed and targeted employment protection legislation, education and encouraging entrepreneurship. The combination of different national circumstances, and different strengths and weaknesses, means that there is no single EU blueprint for labour market reform. To reach the Lisbon and Stockholm goals, Member States must identify and address their own problems in the light of their own circumstances and preferences.