Tag: Treasury

The press release issued by HM Treasury on 10 February 2003.

The Chancellor announced to Parliament today that the Treasury is advertising this week for a new Chairman of the Financial Services Authority to succeed Sir Howard Davies.  The post will be advertised in national newspapers and through the Treasury website.

The Treasury will be looking for an individual of the highest calibre to lead the FSA in delivering a strong and effective financial services regulatory regime.

As the single regulator for financial services in the UK, the FSA has one of the widest remits of any international financial services regulator. The scope of FSA regulation will increase further when the FSA takes on responsibility for conduct of business regulation for mortgages and general insurance in 2004/5.  In light of this, it has been decided that the Chairman should be supported by a separate Chief Executive.

NOTES TO EDITORS

1. The Chairman and Board of the FSA are appointed by the Treasury in accordance with the rules of the Office of the Commissioner for Public Appointments.
2. Board members are appointed in a personal capacity and do not serve as representatives of particular interests or associations.
3. Sir Howard Davies will continue as Chairman of the FSA until his successor is appointed and takes up his post. This will happen before October 2003 when Sir Howard will move to the LSE.
4. The FSA became the statutory single financial services regulator at midnight on 30 November 2001, when the Financial Services and Markets Act commenced.

The press release issued by HM Treasury on 13 February 2003.

Economic Secretary to the Treasury, John Healey, was in Kirklees, Yorkshire, today to see some of the ways waste is put into action in the region.

As Chair of the short-term Ministerial Group on Waste, an initiative announced in the Government’s Pre-Budget Report, Mr Healey was keen to see waste technologies in use on the ground.

Visiting two Huddersfield waste management sites, Mr Healey said:

“This is proving to be a useful first-hand experience. I have seen some novel approaches to waste management in practice and I have been struck by the commitment shown by all concerned.”

The Minister toured the materials recycling facility and the energy from waste plant on Diamond Street, Huddersfield, both operated by SITA Kirklees. The materials recycling facility deals with 12,000 tonnes of material collected from local homes each year. Similarly, the energy from waste plant can deal with 136,000 tonnes of household and commercial waste annually. Waste is incinerated and, using state of the art technology, the heat produced is used to raise steam to drive a turbine and produce electricity for the National Grid.

Accompanied by Cllr David Payne of Kirklees Council’s Environment and Transportation Cabinet, Mr Healey heard how the Council and SITA are also currently considering using some of the energy produced for district heating.

From high tech turbines the Minister then moved on to more basic technology with an award-winning Huddersfield project that turns waste cardboard into caviar using little more than worms, and at the same time gives local young people a chance to gain some specialised training and national vocational qualifications.

The ABLE project, which recently won a National Grid Community 21 Award, involves a partnership between the Green Business Network, East Wakefield PCT, and Turning Point. It involves a cyclical process in which waste cardboard is put to use as bedding at a local equestrian centre, before being composted in worm beds, and the excess worms fed to sturgeon fish that, long-term, will be sold as fish and caviar to local restaurants. Met by Project Leader Graham Wiles, Mr Healey was told how the scheme has just been given 34 acres of land by Yorkshire Water to roll the scheme out in the Wakefield district.

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

Increasing the momentum of economic reform in Europe at this time of global risk and uncertainty is the key theme of a new report issued by the Government.

Today’s report ‘Meeting the Challenge: Economic Reform in Europe’ evaluates the progress made on economic reform within the EU since the March 2000 Lisbon European Council, and identifies the priorities for future action.  It finds that while some progress has been made towards meeting the Lisbon Council objective of transforming the European economy into the most dynamic and competitive in the world, there is much more to do.

The key priorities for reform set out in the report, which should form the basis for discussion at the Brussels European Council under the Greek Presidency on 21st March, include:

• Policies to boost employment, skills and to make labour markets more flexible, with each country taking action domestically to tackle unemployment.
• Promotion of well-regulated, dynamic and flexible markets by dismantling regulatory barriers in order to simplify the burdens on business. In future, all new legislation must be thoroughly examined to ensure that it improves the climate for business and reflects the views of European firms.
• Measures to promote Research and Development and to tackle barriers to innovation, by both increasing R&D spending and improving the effectiveness and commercial use of research.
• A more strategic approach to competition policy, with competition authorities that look at markets as well as reacting to cases, with genuine liberalisation across the single market in goods and services, and a focus on results not just legislation.
• A modernised and streamlined state aids regime, to ensure the rules and their implementation support economic growth both at the national and regional level.

The Treasury’s main report is accompanied by ‘Structural Indicators of European Economic Reform: Measuring Europe’s Progress, February 2003’, which examines progress over a wide set of indicators.  Achieving the Lisbon goal requires economic reform based upon robust evidence and complemented by rigorous monitoring of outcomes.  A comprehensive set of structural indicators has been developed in recognition of this.  Indicators on key policy areas help to identify best practice, to monitor progress against targets and to highlight strengths and weaknesses.

Commenting on today’s report the Chancellor, Gordon Brown, said:

“At this challenging time for the world economy each continent has to play its part to maintain the conditions for stability and growth. In the US, alongside action on monetary and fiscal policy, steps are being taken to reform accounting and auditing standards. Japan is in the process of reform of its financial and banking sector. And in Europe we must do more to reform our product, labour and capital markets so as to make our economies more flexible.

“While some progress has been made, the collective challenge we face is immense. Levels of productivity, employment and growth have consistently underperformed those of the US in the past decade. If Europe is to fulfil its ambition to be a world economic leader, and not remain vulnerable to the ups and downs of the world economic cycle, then it is vital that we demonstrate our commitment at next month’s Brussels Council to implement the ambitious goals we have set for ourselves.”

“As we push ahead with these reforms we need a common understanding that in a world where businesses must respond quickly and people must adapt to change, flexibility in product, labour and capital markets is the means to achieve, not the enemy of, social justice. We should recognise that the right kind of flexibility in European product, labour and capital markets can advance both economic efficiency and social cohesion.”

The press release issued by HM Treasury on 21 February 2003.

Chief Secretary to the Treasury, Paul Boateng, will today meet representatives in Edinburgh of Scottish business and trade unions with Helen Liddell, Secretary of State for Scotland, to hear their views on the Treasury’s November 2002 Pre Budget Report. As part of his two day trip to Scotland ahead of the forthcoming Budget he will also see for himself the positive impact on Edinburgh and Glasgow of Private Finance initiative (PFI) projects and the Scottish Executive’s delivery on public services.

Welcoming the opportunity to consult with local groups Mr Boateng said:

“The Government is committed to working in partnership with the Scottish Executive to build a stronger Scottish economy and fairer Scottish society. The Pre Budget Report last November set out our proposals, which will help to raise productivity and promote enterprise and employment opportunities in Scotland, build a fairer society and tackle poverty in Scotland, and protect the Scottish environment.

“The policies followed by the Chancellor, Gordon Brown, have provided a stable and successful macroeconomic framework, delivering low inflation, low interest rates and low unemployment in Scotland.

“As a result of our prudent policies, the Government has been able to provide the Scottish Executive with the resources to deliver well funded devolved public services in accordance with the priorities of the people of Scotland.

“Scottish business and trade unions have a vital role to play in modernising the Scottish economy and I welcome the opportunity to discuss with them the proposals in the PBR ahead of the impending Budget.

“Through PFI, Scotland has seen £2 billion in investment in new schools and hospitals and over 65 separate projects – a massive investment in public services. It shows that a partnership approach between the public and private sectors delivers complex infrastructure projects on time and on budget.”

The press release issued by HM Treasury on 25 February 2003.

New improved tax and NICs incentives will enable employers to play their part in meeting the childcare needs of all their employees, Paymaster General Dawn Primarolo said today.

The proposals mark another step towards achieving the Government’s vision of every parent being to find affordable, good quality childcare.

Launching the consultation document, Dawn Primarolo said:

“The Government is determined to help parents to balance their work and family life. Employers have a very important role to play in helping their staff to achieve a balance and particularly in helping parents meet their childcare needs. We are committed to supporting them in this and today’s proposals will help to ensure that more parents than ever before have access to affordable, good quality childcare.”

Stephen Burke, Director of the Daycare Trust welcomed the consultation saying:

“We welcome this review of tax incentives for employer supported childcare. It’s an opportunity to encourage employers to do more for working parents, particularly those on lower and middle incomes. The current arrangements need to be enhanced so that more employees benefit from help with childcare provided by employers. Beyond that, the review can examine how best to enable employers to fulfil their corporate social responsibility. More help with childcare will mean a better work-life balance for parents and a better start in life for their children.”

The key proposals in the consultation paper are:

• expanding the workplace nurseries tax exemption to include all forms of registered childcare, including approved home childcare;
• simplifying the requirements for the tax exemption to make it easier for employers to qualify by removing the condition for the employer to have management responsibility of the provision;
• introducing a new tax exemption for childcare vouchers (that are currently only exempt from NICs);
• introducing a financial limit for the tax and NICs exemption on all formal childcare provision (other than workplace nurseries) and childcare vouchers; and
• ensuring that where schemes are offered, childcare support is available to the whole workforce.

Dawn Primarolo was speaking at the Royal London Hospital’s workplace nursery, a model example of how an NHS employer can help its employees with their childcare needs.  Rachel Elu, a nurse and mother of two young children who are cared for by the nursery, said:

“Having a nursery on site has been extremely helpful to me.  It has made working full time possible, given me peace of mind and with the help of Working Families Tax Credit, has made it financially possible.”

Another working mother, nurse Jane Latchford, said:

“Without Fee Direct childcare would be too expensive and I wouldn’t be able to return to work.”

Paul White, Chief Executive, Barts and the London NHS Trust said:

“We have made great efforts in this Trust to enable staff to balance family with work commitments.  We currently provide 64 nursery spaces at the Royal London Hospital and we are opening a new nursery at Barts next month for a further 43 children.  We offer more than many other employers do as we subsidise nursery places using the employers’ NICs savings we make to benefit parents on lower incomes.”

Praising what the Trust has done Dawn Primarolo said:

“This nursery is an excellent example of an employer helping staff meet their childcare needs and provides first-rate support to vital public sector workers.”

DETAIL

Currently employees are exempt from tax on the benefit of a place in a nursery provided by the employer.  If the nursery is not on the employer’s own premises the employer is required to be wholly or partly responsible for both the financing and management of the nursery.

Widening the workplace nurseries exemption to cover all forms of registered and approved home childcare would enable parents the choice of good quality childcare that best suits their needs, for example registered nurseries, childminders, after-school clubs and approved home childcare.  The extension could particularly help parents such as those who commute or work shifts, and parents of school-age children or disabled children.

Employer-provided childcare vouchers are free from employers’ and employees’ Class 1 NICs.  They can be used for any form of childcare and to any amount. A new matching tax exemption for childcare vouchers is proposed to provide consistent treatment of employer-support for childcare to help parents to choose the best form of good quality childcare that meets their needs without being influenced by differing tax treatment.

A financial limit of £50 per week is proposed for the extended tax exemptions on formal childcare provision (other than workplace nurseries) and childcare vouchers to ensure that they are affordable and fairly targeted.

The press release issued by HM Treasury on 3 March 2003.

At their discussion of the UK economy on 26 February, IMF Directors “commended the UK authorities for the pursuit of prudent and credible economic policies in the context of a sound medium-term policy framework” and noted the “strong performance of the UK economy” based on low inflation and sustained output and employment growth.

Based on a wide-ranging assessment of the UK economy prepared by IMF staff, Directors also considered the outlook for the UK economy including possible risks, the conduct of monetary and fiscal policy, measures to enhance productivity and employment, and plans for investment in public services.

Commenting on the IMF’s report, the Chancellor, Gordon Brown, said:

“As the IMF Directors accept, our tough action to restore the public finances to a sound footing and to keep inflation under control, means that we have been able to weather the global slowdown while keeping public debt to GDP low. But with continued uncertainties in the world economy, it is important that we maintain our discipline and stick to our long-term course. So there will be no relaxation of the fiscal rules, no quick fixes and, with the recent Public Sector Pay Review Body recommendations coming in at around 3 per cent, no relaxation of our discipline on public sector pay.

“The IMF Directors also recognise the need to respond to the demand for better public services and rightly highlight the importance of reform to increase the efficiency of public spending. While rejecting user charges where they would be at the expense of equity and efficiency, reform must enhance public sector productivity and decentralise control to where it can be exercised most effectively in the interests of the users of public services.”

As in the previous three years, at the request of the UK Government the IMF is today publishing its Article IV staff report on the UK economy in full, along with the record of the IMF board discussion, and the UK’s statement in the board meeting.

The press release issued by HM Treasury on 6 March 2003.

The Government today outlined its contribution to thinking on reform of European regional policy, prioritising the flexible and local delivery of regional policy and reinforcing EU Member States’ shared commitments to economic and social development.

The proposals, which will contribute to the EU debate on the future of Structural Funds:

• respond to European enlargement and the need for growth in all EU nations and regions;
• offer new freedoms and flexibilities to localities and regions, empowering them to build local economic strength;
• promise that if the Government’s proposals are accepted we will provide additional UK government funds for regional policy in the next spending review in place of EU receipts;
• modernise state aid rules to reflect real economic and market effect.

Announcing the proposals at a breakfast meeting with the TUC and CBI the Chancellor Gordon Brown said:

“With our plans to increase UK funding for regional policy, devolve decision-making power to the regions and return key regional policy responsibilities from the European Union back to Britain, the future control of regional economic policy is moving from Brussels to London and then from Westminster to the nations and regions themselves. Creating a new framework which, by enshrining the principle of subsidiarity, provides the flexibility for Member States to pursue the right regional policies to meet their differing needs.”

The Deputy Prime Minister John Prescott commented:

“This approach will support our commitment to a strong, domestic regional policy.  Devolved and decentralised decision-making are at the heart of the Government’s policies. This is true for economic development, as it is for sustainable communities.  The EU framework for Devolved Regional Policy is a further step toward the vision for devolution to the English regions that we set out in ‘Your Region, Your Choice’.”

Trade and Industry Secretary, Patricia Hewitt, said:

“By maintaining a strong European dimension to regional policy, the EU Framework offers benefits to all Member States, old and new. Targeting resources on the poorest countries, rather than spreading it thinly over rich and poor alike, will strengthen the single market and provide more trade opportunities for all UK companies.”

The press release issued by HM Treasury on 10 March 2003.

The Chief Secretary to the Treasury, Paul Boateng, today took part in the first ever quadrilateral meeting of UK Finance Ministers. At the meeting hosted in Cardiff by Welsh Assembly Government Finance Minister Edwina Hart, Mr Boateng also met with, the Scottish Executive Deputy Minister for Finance and Public Services, Peter Peacock, and Ian Pearson the Northern Ireland Office Finance Minister, together with Scotland Office Minister Anne McGuire and Wales Office Minister Don Touhig.

Welcoming the first in a series of regular quadrilateral meetings, Paul Boateng said:

“The finance ministers in Scotland, Wales and Northern Ireland and I share a common objective of improving public service delivery and strengthening economic development and productivity across the UK.

“I am therefore delighted that Edwina Hart is hosting this first meeting of the finance ministers in Cardiff today.

“The fact is that devolution is working and working well. Devolution means that there is more scope for policy innovation and for policies that reflect local priorities. The purpose of the meeting is to encourage an exchange of views and information so that we can all learn more about what is working best in our respective areas.”

“Our prudent management of the economy has delivered low inflation, low interest rates, low unemployment and large increases in public spending in Scotland, Wales and Northern Ireland. In the Pre Budget Report we announced a range of measures, which will promote fairness and economic prosperity in Scotland, Wales and Northern Ireland, including for example new Enterprise Areas which will encourage enterprise in the poorest parts of the UK.

“And we have just published a consultation document on the future of the European Structural Funds after enlargement, which sets out the Government’s vision of a strong and devolved regional policy.

“This meeting is a concrete example of the close partnership which exists between the Treasury and the devolved administrations.  I myself have recently visited Belfast, Swansea and Glasgow and seen at first hand vibrant examples of public sector projects and companies which are at the leading edge of providing services in the UK and indeed the world. I am delighted to have this opportunity to learn more from my colleagues in Scotland, Wales and Northern Ireland about devolution in action.”

Hosting the meeting, Welsh Finance Minister Edwina Hart said:

“I am delighted to have this chance to discuss the opportunities that devolution has offered in Wales and to explain how the Assembly Government has responded with its own innovative and distinct policy solutions. It is also very useful to maintain close working relationship with colleagues from Scotland and Northern Ireland as there is a good deal we can learn from each other.”

Scottish Executive Deputy Finance Minister Peter Peacock said:

“These meetings are a valuable opportunity for us to discuss issues of common concern, and to exchange ideas. They are part of the stable devolution framework that has been established since 1999. They demonstrate how the devolved administrations and the UK Government can work together to improve public services and aid economic growth.”

Wales Office Minister Don Touhig said:

“I am delighted that Wales was able to host the first of these meetings, which will provide a further strengthening of the devolution settlement.”

Scotland Office Minister Anne McGuire said:

“This meeting is an excellent opportunity for all administrations in the UK to discuss common interests. By sharing our experiences we can continue to ensure that we are doing the best for public services and economic development.”

The press release issued by HM Treasury on 26 March 2003.

A mould-breaking million-pound advertising campaign was launched today by Paymaster General Dawn Primarolo.

It explains how the new Child Tax Credit starts being paid direct to the main carer – usually the mother – instead of the main earner – usually the father.

And, with nine out of ten families with children eligible, it urges those still to apply to do so.

The campaign will include:

• Double-page spread ads in national newspapers – appearing from tomorrow – showing how the tax credits transfer from men to women.
• Smaller advertisements in specialist magazines explaining that the cash men are losing will instead go straight to their partner.
• advertisements in local newspapers.
• Billboards nationwide

The new campaign follows an opinion poll by ICM Research showing that two-thirds of people believe that all support for children should be paid to the mother, and only one per cent think it should be paid to the father. Even the vast majority of men believe all support for children should be paid to the mother – 64 per cent believed that it should be paid to the mother and only 1 per cent that it should go to the father.

70 per cent of all those polled said that the mother is most likely to ensure that the money goes to the needs of the children. And while 28 per cent said it made no difference which parent received the money, only two per cent said fathers would be most likely to ensure that the money goes to the needs of the children.

Launching the new advertising, Dawn Primarolo said:

“Women need to know that they will be getting the money direct and they need to know as well that if they haven’t already applied they should do so straight away.

Nine out of ten families are eligible and in a family with two kids the mum could receive up to £65 a week in Child Tax Credit alone. Some could get much more. It’s the biggest boost for mums since the introduction of Child Benefit. It’s vital that everyone knows about it and claims it.”

The press release issued by HM Treasury on 30 April 2003.

The Treasury, together with the Compact Working Group, today launched the consultation document on proposals for how to use the new £125 million futurebuilders fund which was announced as part of the 2002 Spending Review.

The futurebuilders fund will assist the voluntary and community sector to deliver public services, developing capacity to deliver in areas such as:

• health and social care;
• crime and social cohesion;
• education and learning;
• support for children and young people.

Representatives of the voluntary and community sector worked more closely with the Government than ever before in drawing up the proposals for the consultation. These include:

• a move from grant funding to longer term investment for the future. A key obstacle to the sector has been the lack of access to capital to invest for future development.
• offering a broader range of finance to include loans, loan guarantees, or a mix of these with grants. Loan finance would enable the fund to go further and have a longer term benefit.
• encouraging organisations to join with others to make the most of other funding streams. Where funding streams already exist, futurebuilders may be able to complement that funding to extend the service to a wider range of users.

Paul Boateng, Chief Secretary to the Treasury said:

“The role of voluntary and community organisations and social enterprises is central to this government’s commitment to delivering world class public services.  Over the last six years, real strides have been made to strengthen the partnership between government and the sector in achieving our shared vision.  But there is a lot more to do to ensure that this partnership works to the best effect.  This new futurebuilders fund will support strategic investment to enable the sector to realise its own ambitions in providing the best services to its users.”

Sir Michael Bichard, Chair of the Compact Working Group said:

“From the very outset, futurebuilders has been an innovative and unique undertaking.  The sector has been in the driving seat in designing the fund, working through the Compact Working Group.  The proposals in this consultation document are the results of the work of the group over recent months.  It is our joint assessment of what is needed and how the fund would work in practice.”