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

As part of proposed reforms to reflect improved longevity, modern working patterns, and practice in most private sector pension schemes, future civil servants, teachers and NHS staff may need to work until 65 rather than 60 to get their full pension. The proposed changes would be made by 2006. Present public service employees’ pension rights already earned will be fully protected and existing staff will still be able to retire at 60 years if they wish.

The proposals, set out in the Green Paper “Simplicity, Security And Choice: Working And Saving For Retirement”, would raise the pension age in the civil service and other public service pension schemes from 60 to 65.

It is likely that individual schemes will wish to introduce the new pension age as part of a package of measures for their members, which may offer benefit improvements and can take advantage of new flexibilities and simplification proposed in the Green Paper.

Schemes will consult on how and when the higher pension age and any associated enhancement to benefits could be extended to existing employees, while protecting rights already built up before the change and ensuring that all existing members will be able to receive a pension from the age they currently expect.

The reviews of the public service schemes will be the subject of consultation with unions and staff representatives and are likely to take a few years to complete, but once introduced the higher pension ages would apply to all new entrants.

In many areas there is a demand from employees to work for longer, and it is appropriate to encourage and reward that accordingly. The change would help the financial sustainability of public service schemes.

The press release issued by HM Treasury on 28 February 2002.

A White Paper on European Economic Reform was published today by Chancellor Gordon Brown and Trade and Industry Secretary Patricia Hewitt.

Realising Europe’s Potential sets out a blueprint for economic reform in Europe over the next decade, ahead of the Barcelona European Council next month. It outlines a vision of the EU as a dynamic, job creating and socially inclusive economy and considers the challenging reforms of product, labour and capital markets needed to achieve this vision.

Key proposals include:

– Reforming Europe’s labour market policies to regain the conditions for full employment and tackle social exclusion
– Modernising competition policy and reforming state aid
– Creating a single financial services market and improving access to venture capital.
– Opening up EU energy markets
– Reform of the Common Agricultural Policy
– Boosting innovation by forging closer links between industry and academia

Gordon Brown said:

“Each continent must play its full part in restoring world growth. We can all do more. America by keeping markets open. Japan by radical banking reform. Europe by the reform of capital, labour and product markets we recommend today. These are vital to facing the challenges of global competition, EU enlargement and eight per cent EU unemployment.

“EU enlargement will happen – we welcome it. But we must ensure that it takes place in a way that increases trade, stability and prosperity within the EU, rather than slowing it down.

“At the European Summit in Barcelona next month we must make headway on the economic reform agenda – all member states must play their part.

“At the Lisbon summit two years ago Europe acknowledged that it was not living up to its potential. A ten year goal was set to become the most competitive and dynamic knowledge based economy in the world. Its foundations will be comprehensive reforms to product, capital and labour markets.

“Some progress has been made since Lisbon. Five million new jobs, agreement on a new regulatory framework for communications, rapid progress in increasing internet use liberalising of postal services and a start to reforming state aids.

“But we still have a long way to go. If the EU matched US productivity we would be better off by an average of £5000 per person.

“The White Paper we are publishing today underlines our vision of the EU as a dynamic, job-creating and socially inclusive economy. It sets out challenging reforms of product, labour and capital markets that we believe are needed to realise that goal.”

Patricia Hewitt added:

“A prosperous UK depends on a prosperous Europe. Driving forward the Lisbon agenda is the key to securing this and the EU’s ultimate goal of creating 20 million new jobs in Europe by 2010.

“Key to this ambitious job creation process is better regulation across Europe. This White Paper sets out our commitment to slashing red-tape. We are determined to encourage more intelligent regulation that stimulates enterprise amongst our own business community and attracts investment from across the globe.

“We have made substantial progress at home, but there is a great deal of work to be done across Europe. If we succeed in meeting the ambitious objectives we agreed at Lisbon, then every business stands to benefit financially.

“Today’s White Paper represents an action plan that will deliver huge rewards for our business community – rewards which will deliver every EU citizen a better quality of life.”

The press release issued by HM Treasury on 26 February 2002.

Maintaining the commitment of public services managers and staff will be central to delivering continuing improvement in public services, according to a Public Services Productivity Panel (PSPP) report published by the Treasury today.

The report ‘Making A Difference – Motivating People To Improve Performance’ looked at qualitative research carried out in eight high-performing organisations in both private and public sectors to identify factors behind their success in delivering recognized high-quality services to clients and customers.

The report highlights a number of effective techniques and practices that management and staff have used to raise levels of motivation within their own organisations. But it also warns that its central recommendations – that organisations regularly assess the motivation of their staff and the skills of their managers and act on both – are minimum requirements: to achieve a step change in the quality of public service delivery, managers need to take a co-ordinated and strategic approach to motivating their staff.

The report was prepared by Sir Andrew Foster (Controller, Audit Commission), Greg Parston (Office for Public Management) and John Smith (Finance Director, BBC) for the PSPP, reporting to Treasury Chief Secretary Andrew Smith.

Welcoming the report, Mr Smith said :

“Informed, valued and motivated staff are central to improving services in both the public and private sectors. The best organisations in both sectors recognise this and have developed positive, effective management strategies to attract and retain staff who can deliver to users the services they expect and deserve.

“The PSPP report looks at some of the best of these approaches, strategies that have shown results already. I want to see them studied and adopted by management across the public sector as an important part of the drive to improve public services”.

Sir Andrew Foster said:

“Some of the places we visited would appear on first sight to be as different as chalk and cheese – a trendy ad agency and a Northern council. In truth, the thing that stood out was the quality and motivation of their staff, their switched-on line management and the time, effort and focus top management gave to these issues.

“Good effective management is not a given, but needs to be worked at. For those organisations that do so, the future it seems is very bright”.

The report concluded that the three requirements for a highly motivated workforce are:

• A strategic framework that includes vision, transparent values, effective measures of performance, and HR functions that are central to the business.
• A supportive culture that allows delegation, recognition, communication and mutual respect.
• A strong emphasis on the inter-personal skills of line managers who are clearly connected to the organisation’s leadership and can translate these values for their staff.

The research found no significant differences between what motivates staff in the public and private sectors, and that so-called ‘soft’ management issues, such as good line management, setting clear objectives and inviting and recognizing staff contributions to success, are at least as important – if not more so – than pay and benefits. It also finds that motivated employees do not appear by chance, that active ‘interventionist’ personnel polices are required to develop and reward them, and that there are very real costs to any organisation which does not invest in this way.

Organisations involved in the qualitative research were: Clatterbridge NHS Trust; The Employment Service; Microsoft UK; Ministry of Defence Policy Unit; Stockton-on-Tees Borough Council; Suffolk County Council; Tesco; West Middlesex Hospital NHS Trust .

The press release issued by HM Treasury on 14 February 2002.

Howard Davies’ report on ‘Enterprise and the Economy in Education’ was published today at a press conference in No 11 Downing Street, and received strong support from business and industry leaders.

Sir Alan Sugar said:

“This Government, more than any other I can remember, continues to actually do something to promote the understanding of business enterprise in the school and lecture room. I tour schools and universities throughout the UK promoting the concept that starting your own business is not only possible, but also rewarding personally and fun. I have found a genuine interest and excitement among the students I have met. Today’s announcement underlines the Government’s commitment to foster and fund enterprise capability within the education sector and this is good news for young people and the country in general.”

George Cox, Director-General of the Institute of Directors, said:

“I am delighted with the proposals. I believe business will be more than ready to play its part in putting them into effect. The report answers a vital need, mapping out a clear agenda for Government, business and schools to help equip the workforce of tomorrow with the enterprising skills – and attitudes – that it needs”

“It is vital both to the individual and to the nation’s future prosperity that we develop a genuine “enterprise culture” in the UK, which means making young people aware of what enterprise really means. It’s a huge task. I am delighted that the report has got to grips with the real issues on the right scale. Many people are already active in this area: businesses, schools and voluntary bodies. The problem is matching the scale of their effort to the scale of the need. The proposals show the way this can be done.”

Digby Jones, Director-General of the CBI, said:

“The CBI welcomes the Review’s proposals as a step in the right direction. The proposals to give all young people enterprise experience should help ensure that young people gain a positive attitude towards work and the skills to enable them to fulfill their potential”

John Monks, General Secretary of the TUC said:

“The TUC supports the Davies Review’s aim to energise enterprise activity in schools, building on existing good practice. Teachers are key to this work and we very much welcome the Review’s recognition that continuous professional development of teachers and new teaching and learning materials are essential. We also very much support the Davies recommendations that businesses need to commit time and resources to enterprise activity in schools on a systematic basis.”

Sir Ken Jackson, General Secretary of Amicus-AEEU, said:

“British kids are full of imagination and potential. We need kids to be excited about industry and innovation from an early age if British business is going to lead the world.

“I’m glad the Government is encouraging all children to develop their business skills while still at school. Everyone should have the chance to find out what business is about.”

Kathy Heaps, Principal of John Kelly Girls Technology College, said:

“I think that all young people should have the opportunity to engage in real-life business experience while still at school. This is particularly true for young people from disadvantaged backgrounds. I therefore welcome the report’s proposal to offer all young people the chance to take part in enterprise activities.”

Larry Hirst, General Manager of IBM UK Ltd, said:

“This report is a very positive step. In IBM’s work with companies of all sizes throughout the UK, we see that entrepreneurship is key to business success. IBM believes that it is vital for the IT industry to support the DTI and the DfES, ensuring that school children have as many opportunities as possible to develop their entrepreneurial skills. For example, the courses IBM runs with Businessdynamics provide many children with first-hand experience of the business world. We look forward to supporting the Government in helping young people develop the best possible skills for the world of e-business.”

David Irwin, Chief Executive of the Small Business Service, was also firmly in favour of the proposals. He said:

“I warmly welcome this report, its recommendations and the constructive dialogue it has created about how our schools and colleges can help prepare young people to meet the challenges of working life and achieve their dreams. We are living increasingly in a society where people expect to have two, three or even more careers during their working life, and, if our young people are to play a full part in the enterprise society we want to create in the UK, it is essential that they have the opportunity to develop enterprise skills and capabilities. It’s not all about starting up your own business. It’s about showing young people how they can develop the skills needed to drive forward change and achieve results, whether in large organisations or small, in business or in the not-for-profit sector.”

Anthony Goldstone, President of the British Chambers of Commerce, said:

“The foundations of an enterprise economy are built early in life, when children are acquiring their perceptions about business as a future career. Therefore, applying children’s learning to the business world is vital to their development and the wider needs of our economy. This should not be a practice that is limited to the best schools and teachers, but should be available to all. We unequivocally support the attention the Government is giving to this issue and Howard Davies’ drive to develop a coherent national strategy.”

The press release issued by HM Treasury on 14 February 2002.

Proposals to train Britain’s next generation of entrepreneurs were welcomed by business leaders at a Downing Street press conference today.

“Enterprise and the Economy in Education”, an independent review into enterprise and education conducted by Howard Davies, chairman of the Financial Services Authority, found that, although links between schools and industry are good in areas, fewer than 30 per cent of young people gain any experience of enterprise.

The review recommends that every pupil spends five days gaining experience of enterprise, has the chance to set up and run their own mini-company and carries out specific projects in local companies with real experience of designing, marketing, pricing and selling products.

The report also recommends that the two-weeks work experience fifteen and sixteen year-olds currently undertake, provides more enterprise and business experience, and proposes that every school links up with local businesses, with business people spending time encouraging pupils to pursue careers in business.

Howard Davies’ recommendations include:

• An £56 million contribution from Government and £30 million contribution from business, with Government piloting a range of different approaches;
• Special emphasis should be given to young people in economically deprived areas where existing links with business may be less well developed; and
• New teaching materials should be developed for enterprise learning and personal finance education.

Chancellor Gordon Brown said:

“Budget 2002 will send a message to entrepreneurs in every part of the country that this Government wants to open up the opportunities of enterprise to all. If we are to have a deeper and wider entrepreneurial culture we must start in our schools and colleges.

“I want every young person to hear about business and enterprise in school; every college student to be made aware of the opportunities in business, even to start a business; and every teacher to be able to communicate the virtues of business and enterprise.

“Providing this opportunity for young people, and especially for those in disadvantaged areas, is critical if we are to build a Britain where every community celebrates and rewards enterprise and where the chance to start and succeed in business is genuinely open to all.

“I welcome the Davies report as an important step in making this happen and spreading the spirit of enterprise from the classroom to the boardroom.”

Howard Davies said:

“The time is right for a step change both in enterprise activities, and in the promotion of economic and financial literacy. The reorganisation of the 14-19 curriculum offers an opening to revisit the place of enterprise learning in schools.”

Estelle Morris said:

“This is an interesting, independent review which makes some valuable observations about the development of enterprise, knowledge and understanding of the economy in our education system. But we need to consider the recommendations within the broader outcomes of the current Spending Review, and our other priorities in the education system. The review reflects our approach, published this week in our 14-19 Green Paper, of delivering good quality vocational learning and supporting work-based learning for all our young people.”

Patricia Hewitt said:

“Entrepreneurs are the lifeblood of a rich, thriving economy and it is vital that we nurture the talent and business flair of all our students by getting enterprise on the education agenda. Britain already leads the way in Europe in supporting budding entrepreneurs. A recent Commission report singled Britain out for our low business start-up costs and speedy registration.

“Today’s proposals will instil in our students the self-belief and confidence to achieve their ambitions of becoming entrepreneurs of the future.”

Business leaders today gave the proposals strong support. Details of their comments can be found in the attached paper.

The Chancellor, Estelle Morris and Howard Davies this morning visited IBM offices in London, and met pupils from the Aylwin School, Southwark, who have been involved in an enterprise project organised by businessdynamics and IBM.

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

A new Government pledge of £10m to kick-start a Commonwealth Education Fund was announced by Chancellor Gordon Brown and International Development Secretary Clare Short today, as a new pamphlet on globalisation was published.

Speaking at a seminar in Downing Street attended by key NGO’s, the Chancellor and Ms Short gave details of the Commonwealth Education Fund, launched this year to mark the Golden Jubilee year, which will highlight the need to achieve universal primary education in the Commonwealth.

Alongside the £10 million, the Government will match contributions by business, pound for pound including tax relief. Money raised by this year’s Comic Relief ‘Sports Day’ earmarked for education in Commonwealth countries will also be matched pound for pound, including tax relief, by the Government.

Chancellor Gordon Brown said:

“It is a tragedy that 75 million children in the Commonwealth don’t complete their basic schooling. The Fund can help us support work with the most vulnerable and disadvantaged children – getting street children into schooling, or helping child soldiers start a new life with counselling and education, or supporting mobile schools for nomadic children. It can also help promote public participation in education planning and delivery in the Commonwealth.

“The Fund will ensure that more children in the Commonwealth get a decent start in life as we approach our target of primary education for all.”

Ms Short said:

“Clearly the education needs of developing countries are enormous, and that is why we and the international community have invested so heavily in this in recent years. This Fund will further stimulate this work and strengthen the voice of the poor to demand their right to a decent education.”

Save the Children said:

“Save the Children welcomes an innovative way of increasing resources to ensure that more girls and boys can enjoy their basic right to a decent education. We believe children in this country would support action that allows their contemporaries in Commonwealth countries to attend school.”

Kevin Cahill, CEO of Comic Relief, said:

“Sport Relief is a new fundraising campaign organised by Comic Relief and the BBC to help give vulnerable and disadvantaged children at home and across the world the chance of a brighter future. We are delighted that the Government is matching the international efforts of Sport Relief to give an education to some of the world’s poorest children who would otherwise simply be forgotten and missed out.”

The Chancellor also set out the four key proposals for action needed to ensure that all countries benefit from the new global economy. The pamphlet ‘Tackling Poverty: A Global New Deal’ launched today proposes:

Reform of economic government in developing countries, with agreed codes and standards for fiscal and monetary policy;

New corporate standards for business;

Opening of markets; and

Up to $50 billion a year in additional aid.

The Chancellor will put his proposals for a global new deal to tackle poverty to this weekend’s meeting of G7 finance ministers in Ottawa.

The press release issued by HM Treasury on 28 March 2002.

Chancellor Gordon Brown today took forward the Pre-Budget Report consultation on a series of measures to support small businesses in deprived areas and so create 2000 enterprise neighbourhoods in Britain.

The measures for consultation include:

A Community Investment Tax Credit (CITC), which will stimulate enterprise in disadvantaged communities through tax relief for investment in enterprises in disadvantaged areas. Draft legislation has been published today for consultation;

Improvements to the disadvantaged areas stamp duty relief, which will extend relief for commercial transactions to contracts incorporating 6 or more dwellings and commercial leases – this will encourage investment in residential property and support small businesses who are more likely to occupy leased premises;

Introduction of the VAT flat rate scheme to firms with a turnover of £100,000. 540,000 businesses will be eligible, significantly cutting compliance costs by up to £1000 a year.

Speaking at the TGWU ‘Manufacturing Matters’ conference in Leeds, the Chancellor said:

“The small firms of today are the big firms of tomorrow. I want people in disadvantaged communities to see that the enterprise culture too often restricted to the elite is open to them – not least in high unemployment communities where employment for too long has passed by.

The Government has a special responsibility to remove the barriers that hold small firms back and create a level playing field in which small firms have an equal opportunity to succeed and grow, so we are delivering a more favourable environment with special incentives, particularly in our high unemployment areas, to create 2000 enterprise neighbourhoods across Britain.

Genuine equality of opportunity means that no matter your background or area, no matter your wealth, you should have the chance if you have the talent and initiative to turn your ideas into a successful business – making Britain a more dynamic, vibrant, job-creating, wealth-creating economy.”

The press release issued by HM Treasury on 26 March 2002.

PRODUCTIVITY HIGH ON THE AGENDA FOR GOVERNMENT, BUSINESS AND UNIONS

“If you are starting up, growing a business, investing, taking people on, seeking new capital or working your way up in business – we are on your side” said Chancellor Gordon Brown today at a CBI/TUC productivity seminar at No 11 Downing Street.

Hosting the seminar alongside Trade and Industry Secretary Patricia Hewitt and Paymaster General Dawn Primarolo, the Chancellor confirmed the Government’s intention to go ahead with tax measures to support large companies, as set out in the Pre-Budget Report.

He said:

“In our first term we put stability and employment creation first.

In our second term, as we prepare for the sixth Budget we are able to build on this platform of stability and employment creation and our energies must now be directed to raising our country’s productivity.

Trade and Industry Secretary Patricia Hewitt and I want to create for the first time, a truly entrepreneurial culture that is not confined to the few but open to all: one where, in every community, people with ideas and initiative have the chance to start and succeed in business.

The new Britain of enterprise for all cannot be built on inadequate investment, low skills, boardroom complacency, workplace resistance to change, or on cartels or restrictive practices from whatever quarter they arise.

So Britain needs radical reform and modernisation of our product, capital and labour markets.

The Government is today publishing its Enterprise Bill which will open up competition, creating independent competition authorities and introducing criminal penalties for cartels.

In addition to opening up competition, we are today sending a message to the entrepreneurial, the innovative and dynamic: if you are starting up, growing a business, investing, taking people on, seeking new capital or working your way up in business – we are on your side.

A tax credit is already boosting research and development and encouraging innovation among smaller firms. And following extensive consultation with business, the Government is today publishing draft clauses for a new volume-based research and development tax credit for larger firms from 1 April. As supported overwhelmingly by business the credit will follow the simplest, most efficient design, based on a company’s total r&d spending – benefiting over £11 billion in expenditure carried out by the 1,500 large companies operating in the UK. Final details of the credit will be announced in the Budget.

And today I am publishing our proposals for large company tax reform: From 1 April capital gains and losses on substantial shareholdings will be exempt from corporation tax so that important business decisions on restructuring and reinvestment are made for commercial, rather than tax, reasons. In response to our consultation with business, I am today publishing draft legislation that extends the scope of our proposal to exempt even more shareholdings from tax – cutting tax for business by £150 million a year – benefiting some 5000 companies in the UK.

And today I am also announcing the introduction, from 1 April, of a tax relief for intellectual property, goodwill and other intangible assets to help business take advantage of new opportunities in the knowledge based economy. This relief will be worth £200 million a year to business rising to £350 million in the longer term – some 300,000 businesses are expected to benefit.

For large companies we have already cut corporation tax from 33p to 30p, the lowest rate of corporation tax in our history.

Our approach is one based on a broad base and low tax rates, that is stable and transparent, reflecting our belief in fair tax competition – and our opposition to harmful tax competition and niche regimes – so that companies make decisions to exploit real business opportunities, all reflecting our goal to make and keep the UK as the best place for international business.

And for entrepreneurs we have cut capital gains tax from 40p to 10p, overall a regime that is more favourable to enterprise than that of the US.

So the tax system promotes investment and helps business access the capital they need to thrive and grow, making the UK one of the most attractive locations for quality, long-term investment.

And together we are determined to enhance our productivity as a nation.”

The press release issued by HM Treasury on 26 March 2002.

Following detailed consultation the Government today confirmed its intention to go ahead with tax measures to support large companies from 1 April, as set out in the Pre Budget Report.

The Government also published draft clauses for a volume-based Research and Development tax credit for large companies, final details of which will be announced in the Budget.

The measures, which as the Pre Budget Report said would come into effect on 1 April, were announced in response to a PQ from Ian Stewart MP.

Commenting on the measures, the Chancellor said:

“In our first term we put stability and employment creation first. In our second term, as we prepare for the sixth Budget we are able to build on this platform of stability and employment creation and our energies must continue to be directed to promoting enterprise and investment and raising our country’s productivity.”

The package consists of:

• An exemption for gains and losses on substantial shareholdings to ensure that important business decisions on corporate restructuring and reinvestment are made for commercial, rather than tax, reasons. It will reduce the tax burden on business by £150m a year.
• A new regime for providing relief to companies for the costs of intellectual property, goodwill and other intangible assets to encourage business to take advantage of new opportunities in the emerging knowledge-based economy. It will be worth around £200million to UK businesses, rising to a maximum of £350 million in the longer-term
• A new tax credit to boost research and development among larger companies, benefiting over 1,500 large companies operating in the UK, spending over £11bn.

Reforming and modernising the corporate tax regime

The Government is committed to reforming and modernising the corporate tax regime to promote entrepreneurial spirit and boost the UK’s competitiveness in the global business environment.  Business has contributed significantly to the design of the new measures announced today through wide-ranging consultation. From 1 April 2002 there will be:

• A tax exemption for companies disposing of substantial shareholdings which will ensure that around 5,000 UK based companies and groups will be able to restructure quickly and flexibly to respond to emerging global opportunities
• The exemption will mean that capital gains on sales by trading companies and groups of most shareholdings of 10% or more in trading companies will not be taxable.   By removing this charge, groups wishing to restructure for commercial reasons will be able to do so without essential business decisions being constrained by the tax system.
• The reduction to 10% for a shareholding to be substantial is in response to representations made by business on the draft legislation published last November.
• Revised draft legislation, reflecting responses to the draft published in November 2001, will be available on the Inland Revenue website later today.
• A new relief for the cost of intangible assets (including intellectual property and goodwill) will encourage business to take advantage of new opportunities in the knowledge-based economy. Up to 30,000 businesses stand to benefit from the measure.
• The new regime modernises the corporate tax base and marks a further step in the Government’s programme of corporate tax reform.  It provides relief for the cost of acquiring intangible assets where none had previously been available.

Supporting innovation

Research and development (R&D) is one of the key drivers of innovation and is critical to closing the productivity gap with our competitors to deliver rising living standards for all. From 1 April 2002:

• A new tax credit to encourage R&D by large UK companies will apply to R&D spending. The credit, which will follow a simple volume approach based only on the total of R&D spending by a company, will help over 1500 large companies operating in the UK, spending over £11bn on R&D.
• This new measure complements a similar tax incentive for small and medium companies (SMEs) brought in by Budget 2000, which will continue. It extends a tax credit to all companies not previously included i.e. to all non SME companies. So all UK companies performing R&D will now have access to an R&D tax credit.
• Details of the draft legislation will be available on the Inland Revenue website.

Further details of how much the R&D tax credit will be worth will be announced in the Budget.

The press release issued by HM Treasury on 20 March 2002.

New projects to create safer schools and hospitals, help find missing persons, deal with abandoned vehicles, provide an electronic adviser for young people, and to deliver flood warnings by e-mail and text message are among 75 local and national partnership schemes awarded a total of £68 million under the Invest To Save Budget (ISB) initiative, Treasury Chief Secretary Andrew Smith announced today.

Announcing the awards, Mr Smith said :

“These projects offer exciting and innovative ways of working and delivering better public services directly to users at local level across the country. They offer benefits for young and old, individuals and businesses, and for whole communities. I am particularly pleased that voluntary and community sector bodies are leading projects in this year’s awards for the first time.

“In most cases these projects will initially deliver benefits locally, but we expect them to identify new and better ways of working which can be adopted and adapted in all communities.

“But ISB is about more than just investing now to help current service users. It is also about improved efficiency and effectiveness generating savings to help fund further improvements and keep costs down for the taxpayer in the future.”

Cabinet Office Minister Lord Macdonald said :

“I congratulate all these projects for taking the initiative to work with others to make a difference. Improving public service delivery is the priority for this Government and these projects offer considerable potential in terms of both better services to the public and more efficient management of public resources. They are innovative, but this innovation is placed alongside effective approaches to risk identification and management.”

ISB is a joint Treasury and Cabinet Office initiative that provides support for projects that involve two or more public bodies working together to deliver services that are innovative, locally responsive and more efficient. ISB will have provided about £380 million to such schemes by the end of 2003-2004.

The 75 projects receiving new funding this year include :

Showcase Hospitals and Schools : a project to reduce violent and property crime through an integrated approach to safety and security in at least four showcase schools and three showcase hospitals across England and Wales. It will make use of existing and emerging technologies to make hospitals and schools a safer and more secure environment for staff, patients and pupils, reduce the fear of crime, and improve the quality of service provided in ways which can be implemented in all schools and hospitals.

Missing persons project : a Home Office led project to develop and deliver a comprehensive and cohesive system and strategy for dealing with missing persons, including the integration and updating of information technology systems between police, local authorities and voluntary sector and community bodies across the country.

Abandoned vehicle project : proposed by Sussex Police, this project aims to help local authorities remove abandoned vehicles from streets and public places more swiftly, saving significant amounts of tax and community charge costs and tackling a root cause of social problems and blight in local communities.

“E-Pal” : a project to provide an on screen or text messaging electronic or virtual personal adviser to offer advice and guidance to young people, help with job applications, access work placements and identify suitable training opportunities. E-Pal, created by a leading edge professional games software house, will contain input from local employers, trainers and educators as well as being linked into national schemes such as Connexions Direct and Learn Direct.

Severe Weather Warnings, Informing the Public : a project linking the Environment Agency, the Meteorological Office and Redcar and Cleveland Borough Council to provide advance public warning and information systems for severe weather (including flooding) via multi-media communication including e-mail, internet, SMS text messaging, digital TV, mobile and fixed telephones and fax