Tag: Treasury

The press release issued by HM Treasury on 18 July 2002.

Chancellor Gordon Brown and Competition Minister Melanie Johnson today accepted undertakings from the four main clearing banks to pay interest on current accounts or provide free money transmission services to their SME customers in England and Wales.

Mr Brown said:

“The access to finance and the quality of service small businesses receive from banks are critically important to theirs, and the British economy’s, productivity and prosperity. I welcome the steps taken by the banks to take forward the Competition Commission’s proposed remedies to promote competition in this sector. Many of the 3.5 million small businesses in the UK have the potential to benefit from today’s announcement.”

Melanie Johnson added:

“I am pleased that the banks have addressed the interim remedies which we wanted to see in place by the end of the year. I now hope we can also make good progress on the long term remedies which are needed to make competition in this market as effective as possible.”

The banks concerned are the Royal Bank of Scotland Group, HSBC, Barclays and Lloyds TSB.  The rate of interest paid will be at least the Bank of England Base Rate less 2.5%.  Each bank has undertaken to implement the remedy no later than 1 January 2003.

The press release issued by HM Treasury on 19 July 2002.

Yorkshire business will benefit from the £375 million Spending Review boost for Regional Development Agencies (RDAs), Economic Secretary and Yorkshire MP John Healey told local business representatives in Leeds today.

Speaking to a 200-strong audience at the conference ‘Unleashing the Power of Yorkshire Business’, organized by Yorkshire Forward, Mr Healey said :

“RDAs are a cornerstone of the Government’s new regional economic policy.  This substantial extra money will further strengthen their role as catalysts for economic development in the regions.

It will boost RDAs? work on driving forward economic development and regeneration in the regions. RDAs are being given considerable new influence in areas with a direct bearing on regional economic performance.

For the first time they will be given responsibilities in the areas of transport, tourism, planning and housing. They will also work closely with the Small Business Service (SBS) and Learning and Skills Council (LSC) to pilot the regional management of services to small businesses and improvements to adult skills.

Yorkshire and Humberside is a dynamic and productive region. I am sure businesses here will see and seize the new opportunities with their traditional acumen. Local industries and inward investment in bio-technology, digital and creative industries, are powerful drivers of economic growth, creating employment opportunities and raising the standard of life for local people.

With extra resources and flexibility within the Single Pot funding framework, Yorkshire Forward, working with Local Learning and Skills Councils, Local Authorities, schools, colleges, and the business community, will be able to do even more to promote growth across the region.

The agencies that Government is now giving strategic leadership, substantial funds and increasing freedom to drive the regional economic opportunities, all have bases here in Yorkshire and are all strongly business-led: Yorkshire Forward, SBS and LSCs.

The challenge now for business is two-fold: to take advantage of new initiatives on skills, investment and ICT, but also to get involved with Yorkshire agencies to help lead and influence plans for the future.”

The press release issued by HM Treasury on 23 July 2002.

The Government today published its science, engineering and technology strategy, which sets out how the additional £1¼ billion investment in science and technology from the 2002 Spending Review will be used to boost the UK’s  economic performance and  raise levels of  innovation and growth. Building on the Spending Review commitment of additional resources, this strategy demonstrates how the Government is strengthening the science and technology research base and improving scientific and technical skills throughout the UK. This includes classroom to PhD training, school labs to national research facilities, world class research and development, and business innovation.

As part of this strategy, the Government is today setting out its full response to the review by Sir Gareth Roberts of the supply of skilled scientists and engineers into the economy. The Government is positively embracing the wide range of recommendations and investing new resources to implement them.

Launching the Government’s science, engineering and technology strategy at the Wellcome Trust, Paul Boateng, Chief Secretary to the Treasury, said:

“Our investment in science represents the largest sustained increase in science spending for more than a decade. We are taking forward Sir Gareth Roberts’ recommendations, which will ensure we have a strong supply of scientists and engineers in the UK. The investment we are making will allow science to be properly funded in the long term, and will fund the development of research in new areas.

We are determined to make sure that the UK remains at the forefront of scientific and technological progress, and that it converts this advantage to our economic gain.”

Patricia Hewitt, Secretary of State for Trade and Industry, said:

“Today’s announcement shows we’re delivering on the manufacturing strategy that I published in May. Our manufacturing strategy said that more needed to be done to stimulate innovation and close the productivity gap . Today we’re putting our money where our mouth is, with one and a quarter billion pounds to fund our science strategy. I am determined to drive a coach and horses through old-fashioned views on manufacturing. Our investment today will help companies innovate to produce the products that people want to buy tomorrow.”

Estelle Morris, Secretary of State for Education and Skills, said:

“This new investment will support scientists and budding scientists from school age through to post graduates and from schools through to cutting edge research. It will boost teaching skills, fund increases in pay in higher education and provide exciting new training opportunities.  The Government investment in science is a recognition of its importance both to the economy and to society.”

Hosting the launch, Dr Mike Dexter, Director of The Wellcome Trust said:

“The Wellcome Trust shares the government’s vision for improving science teaching in our schools, research infrastructure in our universities, stipends and salaries for our Ph Doctorates and researchers, and the translation of research into real benefits for society. We also applaud the government’s recognition of the role that charities play in driving forward these programmes. In recognition of this positive investment in science, the Wellcome Trust has announced a number of strategic partnerships with government.”

Responding to the Government’s commitment to strengthen science and technology skills, Sir Gareth Roberts, President of the Science Council and President of Wolfson College, Oxford, said:

“I am delighted that the Government is taking forward wholeheartedly the conclusions of my report on science and engineering skills alongside additional investment in scientific research. Through these measures I believe the Government can secure a strong future for science, engineering and innovation in the UK.”

The strategy, issued jointly by DfES, DTI and H M Treasury, ties together the major increases to science, engineering and technology spending across schools, universities and the research base, along with the Government’s actions to boost business innovation through wider economic reforms. It also sets out how the Government will improve the way it manages science within Government. The new spending plans will:

• move the research base onto a more sustainable long term footing, by providing a dedicated capital funding stream, increasing to £500 million a year by 2004-05 for universities’ science research infrastructure, and providing an additional £120 million a year from 2005-06 to the Research Councils to increase their contribution to the costs of research projects undertaken in universities;
• increase resources for science and engineering research programmes by £400 million a year by 2005-06 (compared to 2002-03), an average rise of 5 per cent per year in real terms;
• increase resources for knowledge transfer from the science base (including funding from OST and DfES), with £90m per year by 2005-06 for a newly enlarged Higher Education Innovation Fund. This will be complemented by rising resources (an extra £50m by 2005-06) for DTI’s programmes to stimulate business innovation; and
• provide for an additional investment by the Office of Science and Technology of £100 million a year by 2005-06 (in addition to significant extra resources for DfES) to ensure a strong future supply of skilled scientists and engineers by taking forward the recommendations of Sir Gareth Roberts’ Review.

To demonstrate the importance of a strong science base for British manufacturing industry, these announcements coincide with the laying before Parliament of a Command Paper on manufacturing policy.

In response to Sir Gareth Roberts’ review the Government will:

• bring forward measures to address difficulties in recruiting and retaining science and maths teachers , building on student loan write-offs and the flexibilities already available to schools;
• create a new national centre for excellence in science teaching (in partnership with the Wellcome Trust) to provide enhanced training opportunities;
• introduce a major programme to pay undergraduates and postgraduates (particularly in science, maths and technology) to go back into schools and support teachers and pupils;
• review the maths and science curricula to ensure they appeal to pupils whilst meeting the needs of employers and higher and further education;
• invest to modernise science and technology laboratories and equipment in universities and schools;
• increase the minimum stipend for Research Council students to £12,000 by 2005-06, with the average stipend for Research Council PhD students rising to over £13,000 over the same period;
• increase the pay of Research Council funded postdoctoral researchers by an average of over £4,000 by 2005-06;
• ensure that Research Council funded PhD students and postdoctoral researchers have access to significantly improved training opportunities to develop further the transferable skills important to employers;
• make further resources available for universities to recruit and retain key academic staff, including those in science and engineering; and
• work with employers to improve the employment prospects for scientists and engineers choosing to work in business research and development.

To complement the programme of resources and reform from the Government, the Wellcome Trust is committing an additional £280 million over the next 5 years for complementary funding across the range of shared priorities. This will support new programmes of science research and improved training for science teachers. This commitment follows the major contributions of the Wellcome Trust to research infrastructure funding in the previous two Spending Reviews.

There will also be a new strategic alliance with the Wellcome Trust to strengthen clinical veterinary teaching and research in universities. The Department for Environment Food and Rural Affairs (DEFRA) are announcing today that they will be investing £15 million between 2003-04 and 2005-06 into this area, in addition to an associated investment of £25 million over five years from the Wellcome Trust.

The press release issued by HM Treasury on 23 July 2002.

The Government today began a consultation examining ways in which greater disclosure of beneficial ownership of companies could help law enforcement agencies tackle financial crime.

Potential benefits of greater disclosure are:

• enhanced deterrence and prevention of financial crime
• reduced credit costs  for business
• higher recovery rates of criminal assets
• higher business confidence

In a joint statement, Ruth Kelly, Financial Secretary to the Treasury and Melanie Johnson, Parliamentary Under Secretary of State for Competition, Consumers and Markets, said:

“The Government is determined to ensure that the UK stays at the forefront of the international fight against organised crime and terrorist funding. The consultation will examine ways of further strangling the flow of funding for crime and terrorism and demonstrates the UK’s continuing commitment to the highest international standards in preventing money laundering and combating terrorist funding.

We need  to ensure that  UK companies  are not subject to disproportionate new burdens.  Any new regulations should be proportionate and careful attention will be paid to the impact of any potential changes, in particular on small companies.

We hope this Assessment will offer the opportunity for the key issues to be widely discussed and are keen to hear the views of industry, law enforcers and policy makers in this field.”

The press release issued by HM Treasury on 25 July 2002.

Community sport will benefit as tens of thousands of clubs gain from Government changes to help community amateur sports clubs (CASCs) ease their tax bills.

From today, many CASCs can be better off if they register with the Inland Revenue to claim tax reliefs, which mean:

• fundraising income up to £15,000 exempt from tax
• income from interest exempt from tax
• rental income up to £10,000 exempt from tax
• disposals assets exempt from capital gains tax
• gift aid on individual donations
• inheritance tax relief on gifts
• gifts of assets on no-gain, no-loss basis for capital gains
•  business relief on gifts of trading stock

Welcoming the new tax package for sport in the community, Treasury Minister John Healey said:

“We want to encourage as many people as possible – particularly young people – to take up sport. These measures will make it easier for local sports clubs to offer them the chance.

Sports clubs play an invaluable role in their communities.  Local people give their time willingly and voluntarily to make these clubs work.  Despite the improved Charity Commission guidance issued in April, not all-amateur sports clubs can apply for the tax benefits of charitable status. The new tax package rectifies this, offering clubs many of the benefits of charitable status.

I hope that as many clubs as possible will now register for the tax breaks – it is simple to do and could bring huge benefits.”

Sports Minister Richard Caborn said:

“This is great news for amateur sport. Building on the work done by DCMS, the Charity Commission and Sport England on improved guidance for sport, this package should ensure that no amateur club will miss out on a range of real financial benefits.”

Trevor Brooking CBE, Chairman of Sport England, welcomed the change:

“Combined with the Charity Commission’s extension of charitable status, which will also benefit many of these clubs, this tax relief change will benefit grass roots sport.  It will help clubs off the pitch so they can perform better on it.”

The Charity Commission announced in November 2001 that it would recognise as charitable “the promotion of community participation in healthy recreation by the provision of facilities for the playing of particular sports”. DCMS subsequently worked with the Commission on the improved guidance for sport which was published in April 2002. However, Treasury and DCMS consultation with CASCs and their representative bodies revealed that CASCs who could not, or did not want to, apply for charitable status needed an alternative system of support.

The tax relief package was designed to meet these concerns and ensure that community sport in the UK is put on the best possible basis to encourage and develop local talent.

For a great many clubs, charitable status remains appropriate and offers wider benefits, including:

• mandatory 80 per cent business rate relief
• tax exemption for trading income
• Payroll Giving, and tax reliefs for gifts of shares or land and buildings by individuals and companies

Charitable status can also open up new sources of funding (e.g. grants available from other charities such as community foundations).

The press release issued by HM Treasury on 4 September 2002.

Science and business in Manchester and the North West can provide a model of cooperation to share the drive for innovation and growth, Treasury Chief Secretary Paul Boateng said today.

Meeting key players from universities, business and local government in the region, Mr Boateng underlined the Government’s support for investment in innovation and the science base, and found out first hand how leading bodies in the region are successfully meeting the challenge of transferring knowledge to business and the community.

Mr Boateng said :

“The Government has made its strategic commitment to science, engineering and technology clear. Our recently announced extra £1.25 billion investment in science and technology in the 2002 Spending Review will foster UK economic growth through raising levels of innovation. This is the largest sustained increase in Government science spending for more than a decade and reflects the importance of science to the economy and to society. 

Making sure that good ideas and skills get out of the laboratory and thrive in the market place is an essential link in the innovation system. The North West is at the forefront of bringing together those at the cutting edge of business and science to develop new ways of harnessing technology as a driver of regional economic growth.

This shows the North West continuing to build on its successful industrial and commercial heritage, taking it forward into the 21st century with new ideas and new technologies.  Innovation harnessed in this way can deliver real benefits to industry, trade, jobs and the wider community.

The collaborative initiatives I have seen in Manchester today are not just good news for the region, but are a model for universities and businesses across the country to look to for the future.”

Mr Boateng visited organisations developing science-industry links and science base in the North West, including Manchester Materials Science Centre, Manchester Metropolitan University, and Manchester Science Park, and saw a presentation on the work of the North West Development Agency and the North West Science Council before ending the programme at the Museum of Science & Industry Manchester (MSIM).

At MSIM, Mr Boateng saw a new Interactives Gallery, set up with the help of a £250,000 grant from DCMS. This will enable MSIM to attract more visitors to exhibitions telling the history of the industry, science and people of the Manchester area.

Exhibits and archives covering Manchester’s development from the first industrial city to the present day are an important resource in encouraging interest and participation in links between business and science, drawing on examples of real successes, past and present. The number of visitors to MSIM increased by almost 60% following the introduction on 1 December 2001 of the Government policy of free access for all to Government sponsored museums and galleries. MSIM is particularly successful in welcoming a broad range of visitors through its doors.

The press release issued by HM Treasury on 13 September 2002.

The dynamism and productivity of the North West is highlighted by John Healey, Economic Secretary to the Treasury and Ed Balls, Chief Economic Adviser to the Treasury in speeches to the business community today. The speeches are part of a review of regional economic strategy led by the North West Development Agency at the De Vere Whites Hotel, Bolton.

“The north west is a dynamic and productive region, with some of the largest corporations in the world locating here,” said John Healey. “However levels of investment and skills are still too low. The North West Development Agency  plans are right to highlight these challenges.”

Latest figures show that 2700 new businesses started up in the region in 2001, and the region has the highest number of start-ups of any region outside London. John Healey continues, “We in government recognise the highly innovative and entrepreneurial spirit of the region, and we are introducing policy changes and investment to boost enterprise.”

“By cutting corporation tax to 10% and introducing the VAT flat rate scheme, we have benefited around 100,000 businesses in the north west. High productivity means high growth, high employment and increasing wages for the people of the region.”

Ed Balls commented, “This year’s Budget and Spending Review released substantial new resources to support investment, growth and jobs in the North West region.

“And in the forthcoming Pre-Budget Report the Chancellor will set-out further new measures to promote enterprise and small business creation, particularly in those parts of this region where unemployment is higher and business start-up rates below the national average. The challenge now for the North West Regional Development Agency is to use these new resources and greater flexibility to raise the rate of business creation.”

The government has many initiatives to support business in the north west:

• Regional venture capital funds designed to fill the equity gap for investments lower than £1/2 million for small businesses;
• Business planning zones allowing development to go ahead without planning permission, so long as they meet the required minimum criteria;
• Eight centres of vocational excellence;
• Two new technology institutes;
• Research and development tax credit (for the whole country).

The press release issued by HM Treasury on 16 September 2002.

A new campaign to encourage people to claim their share of an extra £2.7 billion a year for families and children was launched by Chancellor Gordon Brown, Secretary of State for Work and Pensions Andrew Smith and Paymaster General Dawn Primarolo today.

The new Child Tax Credit and Working Tax Credit will provide a simpler and more streamlined system to support families and to make work pay. Around 6 million families are expected to benefit from the new credits.

The multi-media campaign, which includes TV, Radio, Press and online advertising is aimed to ensure that these families and all others who might benefit make their claims in time to receive payments in April 2003 when the new credits will start.

Launching the campaign, Chancellor Gordon Brown said today:

“The Child Tax Credit and Working Tax Credit mark the biggest revolution to the tax and benefits system since Beveridge. They will modernise the existing systems, ensuring better support for children whether or not their parents are in work and making work pay for those without children as well. Six million families will be eligible for support.

Instead of a tax credit paid through the wage packet to the main earner, normally the father, we will pay the Child Tax Credit directly in cash or through a bank account to the carer, usually the mother. Up to £2 billion pounds will be transferred from fathers to mothers – providing them and their children with a secure and regular source of income”

Secretary of State for Work and Pensions Andrew Smith said:

“This Government introduced a work first approach because work gives people a stake, it builds their self-esteem and it is the best route out of poverty. Tax credits are at the heart of our strategy to make work pay. Making work pay gets more people into jobs and boosts family income.”

Paymaster General Dawn Primarolo said:

“Nine out of ten families with children will benefit from the new child tax credit so it is vital that everyone is aware of the changes and knows how to claim their entitlement.”

That is why we are publicising the new credits through Television, Radio and Press advertisements to reach as wide an audience as possible. We have made it as easy as possible for people to make a claim: they can find out more and make a claim on-line at

www.inlandrevenue.gov.uk/taxcredits. They can also visit one of the Inland Revenue Enquiry Centres or call the helpline on 0800 500 222

The Child Tax Credit brings together the various strands of support for families with children – the child elements in Income Support, Jobseeker’s Allowance, Working Families’ Tax Credit (WFTC), Disabled Person’s Tax Credit (DPTC) and the current Children’s Tax Credit – into one streamlined system. For the first time it will be paid direct to the main carer – usually the mother.

The Working Tax Credit will broadly replicate the adult support in WFTC and extend the principles of WFTC and DPTC to adults without children to create one transparent instrument to make work pay, paid through the wage packet. It will also include support with the costs of childcare, building on the success of the existing childcare component of WFTC and DPTC.

The communications campaign launches tonight and is intended to encourage take-up and inform people that tax credits for children will now be paid directly to the main carer.

The campaign clearly communicates how tax credits are changing and explains who is eligible, what they could be entitled to and how they can claim tax credits or get further information.

The campaign idea, ‘It’s Money With Your Name On It’, is intended to motivate people to claim their entitlement. In other words, they are entitled to this money in recognition of their contribution to the UK – through bringing up children, or working. So, the money is rightfully theirs and they should make sure they claim.

In the month following today’s launch in London, a number of events will be taking place across the country raising awareness of the changes and allowing representatives of local interest groups the opportunity to ask Treasury Ministers and Inland Revenue officials questions about the new system.

The press release issued by HM Treasury on 24 September 2002.

Chancellor Gordon Brown, and Governor of the Bank of England Sir Edward George, today announced the auction of low-numbered £5 banknotes, the proceeds of which will go towards the Commonwealth Education Fund’s work in supporting education programmes in Commonwealth countries.

Sir Edward and the Chancellor made the announcement at the Commonwealth Education Seminar held earlier in the day, prior to the formal opening of the Commonwealth Finance Ministers meeting in London. The seminar, which included speeches from the Chancellor and James Wolfensohn, the President of the World Bank, was designed to highlight the role that Finance Ministers can play in implementing Education Plans as part of their development strategies. Speakers from the Commonwealth Education Fund, of which Sir Edward George is the chair, also spoke about the Fund’s work alongside partner Governments in developing Commonwealth countries.

The Chancellor said, “We have spoken today about the importance of education in the fight against poverty, and the need to work together to fulfil our obligations to those children who are still without hope for a better future. I am very pleased that the proceeds from this auction will help provide strategic support to developing Commonwealth countries, both to improve the implementation of their education plans, and to strengthen accountability to parents and children. This is in addition to the Government’s commitment to help developing countries enrol an extra 20 million children into primary school by 2006”.

Speaking at the Education Seminar, the Chair of the CEF Sir Edward George said:

“I am delighted to be involved with the Commonwealth Education Fund (CEF). This is a tremendously exciting project, combining both public and private contributions to help provide universal access to primary education in the Commonwealth. Education is the foundation of economic progress for both individuals and for society as a whole, whether at the national or global level.

Improving education and access to education is a fundamental step in securing economic prosperity and business competitiveness in any economy. The Bank will itself be able to contribute to the CEF the net proceeds of an innovative auction of low-numbered £5 banknotes. The details will be announced later this year. We are also looking for private sector contributions to the CEF over the next three years. A number of very distinguished business leaders have joined me on the CEF Oversight Committee and we will shortly be approaching the business community for help and support.”

The Commonwealth Education Fund, a partnership between Government, business and non-governmental organisations, was set up earlier in the year by the Chancellor to provide strategic support to the UN goal of universal primary education by 2015. At present 75 million children in the Commonwealth go without any kind of formal schooling.

The Fund is jointly administered by ActionAid, Oxfam and Save the Children, and marks the year of Her Majesty the Queen’s Golden Jubilee as Head of the Commonwealth.

The UK is committed to the Millennium Development Goal of primary education for every child in the world by 2015. The Commonwealth Education Fund will work in 17 of the poorest Commonwealth Countries to help fund education and school infrastructure.

Since 1997 the Department for International Development, has committed over £700m to universal primary education.

The press release issued by HM Treasury on 18 October 2002.

The Cross Cutting Review of science and research has been published today on the Treasury website.  The review was conducted jointly by the Treasury, DTI and DfES and reported to Ministers in March 2002.  It considered how to maximise the benefits provided by public spending on science and research to the UK’s economy and quality of life over the long term.

The review looked at science funding by the Office for Science and Technology/Department of Trade and Industry and the Department for Education and Skills, and at research commissioned by all government departments. Its remit was:

• to review current funding mechanisms and levels, and to identify the priorities for resources across the funding streams held by the Office of Science and Technology and the Department for Education and Skills;
• to review current funding mechanisms for transferring the outputs of research from the science and engineering base to business and society more widely, and to identify priorities for future use of resources;
• to take stock of studies commissioned or reporting since the last Spending Review, and with potential implications for resources;
• to identify ways to improve the effectiveness and value for money of research commissioned by government departments, and to review how departments manage their research and put it to use more widely.

The Review’s conclusions were taken forward in some detail in the Government’s science strategy, ‘Investing in Innovation’, which was published on 23 July 2002.  The review is now being published to complete the full analytical picture behind the development of the science strategy.