Tag: Treasury

The press release issued by HM Treasury on 21 October 2002.

The Government today welcomed publication by the Institutional Shareholders’ Committee of a new statement of principles setting out strengthened responsibilities of institutional shareholders and agents. This outlines best practice on the part of institutional investors to promote their members’ interests through more active engagement as shareholders.

Financial Secretary to the Treasury, Ruth Kelly, said:

“The Government has a clear objective to promote more active engagement by institutional shareholders in relation to companies in which they invest. Such engagement will build stronger companies and better returns for investors and members of pension funds.  The industry’s new principles are a major step, which we welcome. However, the key test will be the impact on industry behaviour.  We will monitor progress closely.”

Department of Work and Pensions Minister, Ian McCartney, said:

“I warmly welcome this statement from the Institutional Shareholders’ Committee. Pension scheme trustees and other clients of institutional shareholders need to be able to satisfy themselves that all is being done to act in their best financial interests, and intervention in investee companies is a crucial factor in achieving this aim. Trustees will benefit by gaining a keener insight into what is being done to enhance share value, and they will therefore be better placed to make important investment decisions.”

The Government has previously consulted on possible legislation to underpin institutions’ obligations to promote their beneficiaries’ interests through shareholder activism.  However, the Government welcomes the Committee’s proposal to seek to drive through an approach based on best practice, and to review the impact of the principles after two years. The Government will at that point review whether this non-legislative approach has been successful in delivering change.  The test will lie in the impact on behaviour.

The Government also welcomes the industry’s proposal that the new principles should be included in industry fund management contracts.  The Government will review the extent to which this has taken place as part of its forthcoming review of implementation of the Myners investment principles, due in March 2003.

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

HM Treasury today announces the appointment of Robert Stheeman as Chief Executive of the UK Debt Management Office (DMO) with effect from January 2003 in succession to Mike Williams. Mr Stheeman, 43, was previously Director of the Debt Capital Markets of Deutsche Bank AG in London.

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

“Mike Williams has done a tremendous job at the DMO over the past five years.  Under his leadership the DMO has established a strong reputation in the City for the competent and professional manner in which it manages the Government’s cash and debt operations. I am very pleased to welcome Robert Stheeman as his successor. He brings with him extensive experience and expertise in the sovereign debt markets.”

Notes to Editors

1. The Debt Management Office was created as an executive agency of the Treasury in April 1998 as part of the reforms to the monetary policy framework following the 1997 election. It is responsible for the Government’s debt and cash management operations.

2. Mike Williams was appointed in January 1998.

3. Robert Stheeman joined Deutsche Bank in 1986 and spent most of his career there working on debt market issues.  Prior to that he worked in the Correspondent Banking and International Lending division of Vereins-und Westbank in Hamburg. He is married with four children.

The press release issued by HM Treasury on 5 November 2002.

Figures issued by Chancellor Gordon Brown today show small business creation rates varying widely across the UK – both within and between regions of the country.

They show 175,455 new businesses (measured by VAT registrations) started up across the UK in 2001, equivalent to 37 businesses for every 10,000 adults. The rates ranged from 20 new vat registrations per 10,000 citizens in the North East to 44 per 10,000 citizens in the South East.

Start-up rates varied widely in districts right across the country. They were as high as 118 per 10,000 citizens in Camden in London and 65 in Sefton in the North West compared to 19 in Plymouth in the South West or 10 in Barrow-in-Furness.

And they differed significantly within regions as well, ranging from 33 businesses per 10,000 population in Teesdale to 10 in Wansbeck in the North East, and from 76 in Tunbridge Wells to 20 in Gosport in the South East, for example.

Start-ups per 10,000 population in the 20 most disadvantaged areas of England (outside London) are only half of start-ups in the 20 most affluent areas, and if the level of business in every region was at least as high as the national average, there would be 110,000 more businesses across the UK.

Speaking at the Inner City 100 Awards event for the fastest growing businesses in Britain’s most deprived inner cities, Chancellor Gordon Brown signalled new measures in the forthcoming Pre Budget Report to help tackle the challenges that businesses face, especially in disadvantaged areas.

The Chancellor, a patron of Inner City 100, said:

“I want British young people to see businessmen and women once again as role models in their communities. I want teachers willing to extol the virtues of enterprise and a career in commerce. I want our poorest communities to see an expansion of enterprise as the best solution to unemployment and deprivation. And I want an end to no-go areas for the enterprise economy in any part of Britain. Today’s figures show new businesses were established in every district and in every region of our country, but that the rates at which they were set up varies dramatically both within regions and between them.

“And they show the potential for each region, not just for the number of new businesses we can create, but for additional jobs as well. If the level of business in every region were the same as the national average, there would be 110,000 more businesses generating wealth and prosperity and creating jobs across the UK.

“That is why enterprise will be a central theme of our Pre Budget Report, with special incentives for enterprise in the poorest areas. We have already helped firms by cutting the cost of cleaning up contaminated land and will abolish stamp duty on commercial property transactions. Many of these areas will also be able to sweep aside business planning red tape.

“And as we promote the enterprise agenda in Britain, so we must do the same in Europe – this involves the opening up of financial services, utilities, energy telecommunications and the air transport industry. Our demand, that we abolish stamp duty entirely for commercial property purchases in depressed areas, is a test case for Europe’s willingness to reform.”

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

Chancellor Gordon Brown today instructed UK financial institutions to freeze any accounts belonging to the Benevolence International Foundation.

Announcing the asset freeze, the Chancellor said:

“At home and abroad we continue to bear down on the funding of terrorism. Benevolence International Foundation (BIF) raises funds for Al Qa’ida and Usama bin Laden. BIF operates as an international organisation with offices around the world and is extensively involved in funding international terrorism.

“I have no doubt that in taking concerted international action today we are cutting off the finances of an extremely threatening fundraiser for terrorism.

“Here in the UK the police have acted swiftly against terrorist suspects, with significant seizures of terrorist funds”.

The press release issued by HM Treasury on 29 November 2002.

HM Treasury and the Attorney General’s office today named Mr Justice Butterfield as head of the review of current practices and procedures relating to disclosure, associated investigation techniques and case management in HM Customs and Excise’ criminal cases, announced by Economic Secretary John Healey on 26 November.

Mr Justice Butterfield will begin work in January 2003, though preparatory work has already begun. He is expected to report to the Economic Secretary and the Attorney in June 2003.

NOTES TO EDITORS

1. Announcement of the review followed the decision of the prosecution not to offer further evidence in a hearing in cases relating to London City Bond being heard at Liverpool Crown Court on Monday 25 November. Further details of the review, including the terms of reference, were announced in HM Treasury press release 123/02.

2. Mr Justice (Neil) Butterfield (60) was educated at Sidney Sussex College, Cambridge. He was called to the Bar by the Inner Temple in 1965 and was appointed Queen’s Counsel in 1985. His practice was in criminal law and he served as Leader of the Western Circuit from 1992 to 1995 when he was appointed a Justice of the High Court, assigned to the Queen’s Bench Division. He served as a Presiding Judge of the Western Circuit from 1997 to 2000.

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

Why do we need public services – How much should we spend on them – How do we pay for them – These are among the citizenship issues for young people addressed in a new schools initiative, including an interactive website, launched by Treasury Chief Secretary Paul Boateng today.

‘The Red Box’ teaching pack and website will help pupils to understand the role of public services and the priorities and choices involved, with the opportunity to set their own budgets and balance demands on public spending in an imaginative exercise in community services provision.

It will stimulate interest and discussion of what young people believe is important in their own communities while delivering components of the citizenship and personal and social education curriculum, and developing literacy and numeracy skills in a real life context.

Welcoming the initiative, Mr Boateng said:

“This is an excellent informative and entertaining package which will help young people understand the choices that we are required to make in order to provide schools, hospitals, roads and other public services.

“Understanding crucial public service issues and the decisions that have to be taken are central to democracy and citizenship.

“As adults, we all have to consider these questions and their impact on the quality of life for our families and communities. ‘The Red Box’ initiative will help young people prepare in the classroom to deal with the issues when they leave it.

“It is essential that we help our children to become informed, thoughtful and responsible members of society, aware of their duties as well as their rights. That is why citizenship is now being taught as part of the national curriculum. This pack is intended to give teachers another resource to help them teach it effectively.”

Named after the Chancellor’s famous Budget Box, ‘The Red Box’ initiative will help school pupils aged between 7 and 16 years to understand the importance of public services and the funding of public spending.

It comprises: an interactive website; a budget box pack containing: a 48-page pack for teachers; worksheets for classroom use; case studies and background information; classroom posters; and “Jack’s Guide To Life”, a video that looks at public services in a series of scenarios involving 15-year old Jack and his family.

The pack has been designed for educational use throughout the UK, primarily for teaching citizenship-related subjects, but it also supports the teaching of literacy and numeracy and information and communication technology.

‘The Red Box’ was developed jointly by the Treasury, Inland Revenue and Customs & Excise, working with educational consultants. During its development, Paul Boateng hosted a workshop at No 11 Downing Street where a class of primary school children from a North London school tested the materials and suggested their own ideas to make sure that ‘The Red Box’ reflects their classroom needs.

Inland Revenue Chairman Nick Montagu said :

“People pay taxes as their contribution to the UK’s needs. Taxpaying is a vital element in citizenship. So I am delighted that we are providing this pack for schools: I hope it will stimulate young people to think about the relationship between taxes and providing the public goods that a civilised society requires.”

Customs and Excise Chairman Richard Broadbent said :

“The schoolchildren of today are the citizens of tomorrow, and Customs and Excise are pleased to be part of this valuable initiative to improve understanding of vital citizenship issues. ‘The Red Box’ is an excellent opportunity for agencies at the forefront of the public sector to give pupils an insight into the workings of the sector in an informative, interactive and fun way.”

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

Proposals to forge a stronger and more active voluntary and community sector, including an innovative pilot scheme to support volunteering gap years for young people from disadvantaged communities, were outlined today by Chancellor Gordon Brown and Home Secretary David Blunkett.

Speaking at a ‘Giving Campaign’ business breakfast in 11 Downing Street to champion Payroll Giving, Mr Brown and Mr Blunkett launched ‘Next Steps on Volunteering and Giving in the UK’, a paper setting out the Government’s commitment to promote the culture of volunteering and giving in the UK, including:

A commitment to encourage further donations using the range of financial incentives that promote giving, including Payroll Giving – supported by a 10 per cent Government supplement extended for one further year, as announced in the Pre Budget Report, to make sure all charities are claiming what they are eligible for – if, for example, just 2 per cent more employees were encouraged to give through payroll schemes, charities could receive up to £100m extra income.

A ‘Corporate Challenge’ with the corporate and voluntary sectors to look at how to best to promote the current tax incentives and develop new initiatives on employee volunteering; and

Widening opportunities for volunteering and working within local communities through a pilot Gap Year Scheme for young people from disadvantaged communities.

Mr Brown said:

“The Government is committed to ensuring that voluntary and community groups are able to play their full part in our society of the future, by helping them grow, become stronger and more confident. Together we want to build a new, mutually-supportive partnership between individuals, communities, businesses and Government, that continues to promote a culture of giving and volunteering, widens the opportunities for all, and strengthens and empowers our communities to play their part in the forging of a modern Britain.”

The Home Secretary, David Blunkett, said:

“Active citizenship, volunteering and community activity are crucial to the renewal of civic society in this country. We have a rich tradition of mutuality which we can build upon today as we establish a new relationship between Government, individuals and community.”

“The paper the Chancellor and I are launching today sets out how we will further promote a culture of giving and volunteering. But we all – Government, businesses and the voluntary sector – need to play a part. We would like companies to work with us, to help build strong and active communities by encouraging employee volunteering and corporate and individual giving.”

Speaking to an audience of business leaders and voluntary sector representatives, Mr Brown and Mr Blunkett urged business leaders to get behind Payroll Giving and promote it to their employees.

Welcoming the new paper on volunteering and giving, Lord Joffe, chair of the Giving Campaign said:

“This paper is a timely boost for giving and I’m delighted this event was chosen to launch it. Business has a big part to play in supporting philanthropy, particularly through the active promotion of Payroll Giving. I want to see Britain’s biggest companies take inspiration from the Government’s commitment and get behind Payroll Giving.”

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

“The UK economy is performing well” and “the UK public finances appear in a better position than those of many other advanced economies” report the International Monetary Fund today in the concluding statement of their recent examination of the UK economy.

The report praises the “impressive results” of the UK’s monetary policy framework. In relation to fiscal policy, the IMF conclude that “the short-term widening of the overall deficit is not a source of concern” and the underlying fiscal position remains “sound”. But they warn of the “risk” to the economy of intensifying public sector wage demands.

The IMF also endorse many of the structural reforms to boost growth the Government has introduced, while acknowledging “the key challenge is to raise total factor productivity”.

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

“I welcome this acknowledgement from the IMF that, because of the tough decisions we have taken in the past, the UK remains better placed than others to withstand the impact of increased global economic uncertainty. And it is because we are determined to continue to deliver economic stability and value for money in public services, that we should not put our hard won stability at risk by yielding to inflationary and unaffordable pay settlements that would put low inflation and low interest rates in jeopardy and damage the wider economy.”

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

The London School of Economics and Political Science (LSE) has today announced that Sir Howard Davies, currently Chairman of the Financial Services Authority, will become the LSE’s Director on 1st October 2003.

Commenting on Sir Howard’s appointment, the Chancellor, Gordon Brown said:

“I warmly congratulate Sir Howard on his appointment to be the next Director of the LSE. I would especially like to thank him for his outstanding leadership of the FSA over the past five years.  From nine constituent bodies, he has successfully established a single organisation responsible for regulating the UK’s deposit-taking, insurance and investment businesses.  That the FSA is now widely acknowledged as a world leader in its field is very largely thanks to Sir Howard’s drive and vision.”

Arrangements will now be put in place for the appointment of Sir Howard’s successor before October 2003.

The press release issued by HM Treasury on 17 December 2002.

Plans for investing in Britain’s infrastructure over the next three years are published today.

The Treasury has published a White Paper which sets out the Government’s overall investment strategy up to 2005-06. It also summarises the more detailed plans in the investment strategies produced by each department.

Over the next three years, an additional £12 billion of public money will be invested in our public services, including:

£3 billion for improved buildings and equipment for our schools;
£2.5 billion for the NHS to modernise our hospitals and health care facilities;
£2 billion to invest in transport infrastructure; and
£1 billion to improve our housing stock.
By 2006, net investment in our public services is projected to be almost five times higher than in 1997.

The Chief Secretary to the Treasury, Paul Boateng, said:

“Since 1997, the Government has been committed to reversing the legacy of under-investment in Britain’s infrastructure. Much has been achieved, but there is a lot still to do. That is why the 2002 Spending Review will continue this ambitious programme, by providing an additional £12 billion of extra public investment over the next three years. All that extra investment will be matched by reform, to ensure that we get the most for the new money.”

Each main department will shortly be publishing an investment strategy. The purpose of the strategies is to set out:

the public service outcomes that will be achieved with the new funding committed in the 2002 Spending Review;
the significant progress that has been achieved since the last strategies were published in 2000;
the improvements that departments have put in place to improve the management of the assets they own; and
the reforms of procedures and systems put in place to get best value for money from the extra spending.
The White Paper explains the wider reform framework that the Government has put in place, including:

the publication of the National Asset Register – an international landmark in transparency and accountability;
the introduction of full resource accounting and budgeting – making the UK one of the few countries in the world which has to report its financial information in the same way as private sector companies; and
publication of updated Departmental Investment Strategies, reporting on progress and setting out plans for the next three years.