Tag: Treasury

The press release issued by HM Treasury on 12 October 2001.

Better communication and cooperation between central and local government agencies and the voluntary and community sector has a key role to play in improving public service delivery, Financial Secretary Paul Boateng said today.

Announcing the terms of reference (see link below) of a cross cutting review of the role of the voluntary sector in public service delivery, Mr Boateng said:

“The voluntary and community sector already makes a significant and extremely valuable contribution to the delivery of high quality public services. We now need to explore further ways in which central and local Government can work more effectively with the voluntary sector on public service delivery to ensure that, together, we are delivering high quality services.

The cross cutting review is an important part of that process. I very much hope that the widest possible range of individuals and organisations working in this area and benefiting from the work being done will let us know their views on how this initiative can be taken forward to develop new and better ways to work together.”

The terms of reference for the review, which Mr Boateng will chair, are:

“To examine the relationship between the voluntary sector and the Government in public service delivery, taking account of the key role that the sector can play in strengthening civil society and building capacity in local communities. The review will do this by:

i.  Mapping the extent and the variety of means by which the voluntary sector is already involved in overseeing and delivering public services;

ii. Examining best practice in effective partnership between the voluntary sector and the public sector, suggesting practical ways in which the principles in the Compact can be applied in the delivery of public services;

iii.Drawing common lessons to guide the public sector in working in partnership with the voluntary sector;

iv.Establishing whether and how barriers to voluntary sector involvement, and lack of capacity, might be overcome to promote successful partnership with the public sector and how the Government might be able to assist to that end.”

The cross cutting review, one of seven announced by Chief Secretary Andrew Smith on 25 June, is an important initial phase of the wider Spending Review 2002 and aims to report early next year.

There are important links between this cross cutting review and work in other Government Departments:

• the Performance and Innovation Unit (PIU) review: Modernising the Legal and Regulatory Framework for Charities and the Voluntary Sector;
• the Regional Co-ordination Unit Review of Regeneration Funding for Voluntary Sector and Community Groups
• ongoing work within the Active Communities Unit, including the current consultation on the funding of Community Groups.

The cross cutting review will build further on the principles set out in the Compact on relations between Government and the voluntary and community sector, including the continued independence of the sector.

Organisations and individuals wishing to register an interest in the review should email using the link below.

The press release issued by HM Treasury on 10 October 2001.

An innovative interagency scheme on Teesside to help prisoners return to the community with a reduced likelihood of reoffending is the overall winner of the first Invest To Save Budget (ISB) ‘Progress In Partnership’ awards, Chief Secretary Andrew Smith announced today.

The “Prisoners? Passport” project is one of four winning initiatives which show how closer joint working can underpin smarter, better services in diverse areas of the public sector. It offers advice on jobs, housing, health and benefits to inmates due for release in two prisons on Teesside. In its first year, the reconviction rate among 375 prisoners involved in the scheme was around 5%, compared to around 40% nationally. This was achieved with an investment from the ISB scheme of £18,000 to fund a full-time adviser to the project.

Mr Smith said :

“This project is a striking and valuable example of what can be achieved by public sector agencies coming together and pooling resources to deliver better services across the country. It cuts crime by helping prisoners go straight, to the benefit of their families and communities, as well as addressing the financial and social consequences of criminal behaviour.

“Other winning ISB projects support bereaved families in Wolverhampton, help young people into adult life in West Lothian and offer one-stop access to national databases for local authorities and local delivery agencies across the country.

“What all these projects have in common is that they deliver important and innovative public services at local level, directly to citizens and communities. The integrated approach they have used so successfully in these projects is one that all agencies can learn from and adapt to improve their own service delivery.

“These first success stories under the Invest to Save Budget initiative show how a relatively modest investment in drawing agencies together can generate new and better public services. The real winners are those who benefit from these imaginative schemes.”

The Prisoners’ Passport project works with prisoners preparing for release in Holmehouse and Kirklevington prisons. As well as reducing the likelihood of reoffending, the initiative helps offenders, their families and their communities generally by increasing the chances of their finding work and accommodation, improving skills and opportunities and helping to keep families together.

The awards were presented at “Joining Forces”, the second Invest to Save Budget Conference, held at the Queen Elizabeth II Conference Centre in Westminster.

The press release issued by HM Treasury on 5 October 2001.

Tax-free betting in the UK will come into effect from tomorrow, allowing punters to keep all their winnings for the first time in thirty five years.

Financial Secretary to the Treasury, Paul Boateng, said:

“Today sees the start of a new era for betting in Britain. Tax-free betting is great news for punters, but the benefits go much wider than that. These reforms will allow Britain’s betting industry to become a world-leader in the international betting market. And as the bookmakers? turnover increases, racing and Government revenues will share in the benefits.”

The Chancellor announced in the 2001 Budget that the current tax on betting stakes would be replaced with a tax on bookmakers? gross profits. The implementation of the reforms has been brought forward by three months because of a positive and rapid response by the betting industry.

As a result of these reforms, the largest bookmakers have re-located their offshore sites to the UK, and will remove the 9 per cent deduction previously charged on punters’ stakes. Hundreds of new jobs have also been created, as bookmakers gear up for the rapid increase in demand expected in their high-street shops and through their telephone and on-line betting services.

The Government has also announced changes to accounting arrangements under the new system, which will cut compliance costs and improve cash-flow for the smaller bookmakers who make up more than half of all UK betting firms.

­­­­­­­Bob Scott, Chief Executive of Coral Eurobet, plc, said:

The expected significant growth in turnover will be matched by a sizeable increase in job opportunities across the industry. This is without doubt the most important day in the history of betting. The Government has made a huge investment in the betting industry, one we will demonstrate has not been misplaced. This is a win, win situation for customers, bookmakers, the racing industry and Government.

David Harding, Chief Executive of William Hill, commented:

“The abolition of betting duty and the introduction of zero deduction betting will herald a new era for punters and the UK betting industry.  William Hill is committed to establishing the UK as the centre of excellence in the global betting market.  If projected business levels are achieved, William Hill anticipates creating up to 1,000 new jobs across its betting platforms.  We are confident that the Government’s willingness to support our industry will be richly rewarded.”

Chris Bell, Chief Executive of Ladbrokes Worldwide said:

“The betting duty reforms will be great for customers, great for bookmakers and ultimately great for the Government.  We have been preparing for this since April.  We have increased our workforce by 10%  and we are ready to do our bit in retail betting, telephone betting and internet betting to ensure that that the UK becomes the world centre of betting excellence.”

The press release issued by HM Treasury on 2 October 2001.

The Government today issued a revised set of principles of investment for pension funds, following consultation. It also issued its official response to the Myners review of institutional investment, which gives some updates on how the Government and other organisations are taking forward the recommendations of the review.

The principles of investment were proposed by the Myners review of institutional investment. There are two short codes of principles, one for defined benefit pension schemes and one for defined contribution schemes. Pension funds will be encouraged both to adopt the principles as best practice, and to explain where an alternative approach has been taken.

In order to comply with the principles, a fund would need to take measures such as:

• Set an overall investment objective linked to the fund’s liabilities;
• Ensure that those taking investment decisions have the skill and information to do so;
• Agree clear mandates with their fund managers, including a timescale over which managers’ performance will be measured.

The principles have also been revised to take account of the Government’s proposals on transaction costs published in July.

Economic Secretary Ruth Kelly MP said. “It is clear that the pensions industry needs to change the way it deals with investment issues. But the best way for this to happen is for the industry itself to take action voluntarily. The principles of investment are intended to be a short common-sense guide to this process of change.”

The response to the Myners review confirms the Government’s intention to legislate on two issues:

• to raise the standard of care required of trustees and;
• making intervention in investee companies, when in shareholders’ and beneficiaries’ interests, a duty for trustees and fund managers.

The response also gives some further details of the assessment of progress that will be carried out in March 2003. This is to determine how successful the principles of investment and other measures proposed by the Myners review have been in driving change in the pensions industry.

Minister for Pensions Ian McCartney said “The Government is very grateful to Paul Myners for his work on the review. We feel that it contributes significantly to the debate in encouraging diversity in investment approaches, particularly in how he sees the future role of trustees. In addition we see the principles of investment as important tools in providing transparency for scheme beneficiaries. We have already said that we will take forward all of the review’s conclusions. We and other organisations are making good progress in this task”

As announced by the Government on July 27th, Paul Myners is also issuing today a set of ten questions which pension fund trustees can use to help them understand the issue of transaction costs.

The press release issued by HM Treasury on 30 November 2001.

In the latest Pre-Budget Report, the Chancellor announced a double boost for community sport.  He launched a consultation document seeking views on the best way to support community amateur sports clubs (CASCs) which make a positive contribution to their local communities.  This coincides with the Charity Commission’s decision that CASCs may now apply for charitable status.  In addition, a deal with the football pools companies has been made to provide additional funding to grass-roots sport.

Welcoming the Pre-Budget announcements on community sport, Financial Secretary to the Treasury, Paul Boateng said today:

“These announcements will be a valuable boost to the sporting activities of many local communities, helping to sustain sport in the community for its myriad benefits including health, community building and crime reduction.  The Charity Commission’s proposal to extend charitable status to sports clubs is most welcome.  It will recognise and strengthen the valuable work sports clubs up and down the country are doing.  The Government is listening to the concerns of sports clubs and demonstrating its commitment to supporting the hugely important contribution they make to society.

“In addition, following the success of our radical reforms to betting taxation, we will now go further by modernising the tax treatment of pools betting. The big football pools companies have a long history of supporting good causes and I am very pleased that – as a result of these reforms – they have decided to extend their funding of the Football Foundation and the Foundation for Sports and the Arts for a further two years.”

COMMUNITY AMATEUR SPORTS CLUBS

Today’s consultation document – “Promoting Sport in the Community” – outlines the current tax status of sports clubs and the case for supporting CASCs.  In the past, many CASCs have argued that they deserve charitable status in recognition of the important role they play in the community and that in the absence of charitable status, they should at least enjoy similar tax relief.  Following the Charity Commission’s decision to grant CACSs charitable status, they will now be able to enjoy the full range of benefits that this status confers – not only tax relief, but also mandatory business rate relief, greater funding opportunities and public recognition.  The Government is keen to hear views from interested parties on the way forward and in particular whether there is still a strong case for proceeding with a separate Inland Revenue scheme (details of which are attached), or whether the Charity Commission package would appear to provide better prospects.

The Minister for Sport Richard Caborn said:

“These measures demonstrate the importance this Government attaches to sport and, in particular, the vital role that volunteers in the community play in sustaining sport at the neighbourhood level.

“I welcome Littlewoods and Vernons agreement to continue funding for the Foundation for Sport and the Arts and Football Foundation for a further two years.”

FUNDING AGREEMENT WITH FOOTBALL POOLS COMPANIES

As the Government announced in the Pre-Budget Report, the current 17.5 per cent pools betting duty will be abolished in the next Budget and replaced by a 15 per cent tax on pools companies’ gross profits.

As a result, the leading football pools companies have agreed to extend their current funding of the Football Foundation and the Foundation for Sports and the Arts for a further two years until March 2004. This will help these Foundations to continue their vital work in supporting grass-roots sports clubs and community arts projects.

Colin McGill, Managing Director of Littlewoods Leisure, said:

“The very welcome tax reform announced by the Government is great news for sports clubs and other good causes across Britain who will benefit from Littlewoods’ continued support. Over the last ten years, our Pools business has given back over £400m to football, other sports and the arts. We are therefore delighted to be able to commit to further funding of these good causes over the next two years.”

Steve Roberts, Managing Director of Vernons, added:

“Vernons are proud of their long association with the good causes, which have helped benefit many local sporting activities throughout the country. The betting taxation reforms announced today are warmly welcomed and will help Vernons to continue their funding of the Foundations to help encourage sport in local communities.”

The press release issued by HM Treasury on 29 November 2001.

Details of two new tax credits to support work, help families with children and tackle poverty were announced today by Treasury Minister Dawn Primarolo. This is the next step in the Government’s major reform of the tax and benefits system.

A Bill to introduce the new tax credits was published today, setting out the legislative framework for the Child Tax Credit, for families with children, and the Working Tax Credit for low-income working households, including those where a worker has a disability. The credits are to be introduced from 2003.

The new tax credits will provide a simpler and more streamlined system.

Announcing the details, Ms Primarolo said:

“The Government is delivering on its promise to introduce a new streamlined system of tax credits to move forward on our commitments to eradicating child poverty and making work pay. Our tax and benefits reforms have helped ensure that more low-income families keep more of what they earn, and our reforms to improve work incentives are tackling the vicious unemployment and poverty traps. The new tax credits are key elements in achieving these aims.

“We are building on the success of the Working Families’ and Disabled Person’s Tax Credits, which benefit nearly 2.5 million children in 1.25 million families already, providing around £35 more a week compared to their predecessors. The new streamlined system will provide a secure stream of income for children, whether parents are in and out of work, helping people make the move into work and removing stigma from support for children.”

In the light of responses to a consultation exercise over the summer, a number of issues about the design of new tax credits have been confirmed:

•  the Child Tax Credit will be paid directly to the main carer, in line with Child Benefit;
• the principle of in-work support will be extended to those without children through the Working Tax Credit, which if based on the levels of the current systems of support, would benefit up to 400,000 low income working people without children;
• by creating a single, seamless system of support for families with children, the Child Tax Credit will extend support to around 100,000 families currently excluded from all but Child Benefit, including groups such as students and student nurses;
• the Child Tax Credit will support children up to the September following their 16th birthday. It will also support the families of young people up to the age of 19 who are in full time education;
• couples with children will be allowed to sum their hours together to qualify for the 30 hour credit;
• there will no capital limits for the new tax credits;
• the childcare element of Working Tax Credit will be paid direct to the main carer;
• payments of child maintenance will continue to be excluded from income for tax credits purposes;
• tax credit payments should be able to adjust in response to changes in income – but there will be further discussion about how this would work.

Other points in response to the consultation exercise are set out in the attached paper. The Government will continue discussions on the detail of the system as the regulations to support the Bill are drawn up.

The Bill also provides for the transfer of responsibility for Child Benefit and Guardian’s Allowance to the Revenue. The transfer, announced by the Prime Minister in June, will bring Government support for children within a single Department.

The press release issued by HM Treasury on 27 November 2001.

Derek Wanless today published for consultation “Securing Our Future Health: Taking A Long-Term View”, his interim report on the long-term trends that will affect the health service over the next two decades.

The report is the result of an initial phase of domestic and international consultation that has included a major conference, various workshops and international visits.

Announcing publication of the interim report, Derek Wanless said:

“This is the first time in the history of the NHS that the Government has commissioned a long-term assessment of the resources required to fund the health service.

In this, my interim report to the Chancellor, I have set out what I regard as the key drivers of health need and cost over the next 20 years.  Although I have been able to gather and analyse a large amount of information, I am aware that many other people will have valuable contributions to make. I want to take account of these views and assess the most robust evidence possible before coming to a conclusion about the long-term resource requirements for the health service”.

The interim report presents emerging views about the key factors that drive NHS costs: catching-up to world class standards in the quality of service provided; rising patient and public expectations, particularly of the elderly; technological advance; and the recruitment and retention of an appropriately skilled workforce.

The report concludes that the impact of an ageing population on costs is not as large as is often thought and that there is scope for productivity savings to offset some cost increases. The report also concludes that ?There is no evidence that any alternative financing method to the UK’s would deliver a given quality of health care at a lower cost to the economy. Indeed other systems seem likely to be more costly.?

The report sets out a number of specific questions for consultation.  Mr Wanless said:

“The quality of the health service affects us all, and I would welcome views on this interim report from as many people as possible. I will be holding consultation events in the English regions, Scotland, Wales and Northern Ireland to hear the views of experts, patient groups, and those working in the health service. I also intend to gather more evidence internationally before compiling my final report in time to inform the 2002 Spending Review”.

The press release issued by HM Treasury on 23 November 2001.

Better public services must start from a better understanding of users and their needs, expectations and behaviours. This applies at the outset of policy development as well as in front line service delivery, according to a Public Sector Productivity Panel (PSPP) report published today. The report builds on the growing understanding of what ‘customer focus’ means in practice for public sector management.

Welcoming the report, Chief Secretary Andrew Smith said:

“We remain committed to improving the quality of public services throughout the delivery chain and ensuring that the public get the best possible service at all stages. But improving delivery is a limited benefit if we are not delivering what people really need.

“This report makes it clear that improvement must be sought from the earliest stage of developing new policies or adapting and improving existing ones. It takes a new look at customer focus, in particular the need to shift radically the whole of an organisation – strategy, policy and front line delivery – towards service users.

“It lays out a path to a powerful transformation of public services, and I am pleased that the report has identified some clear successes that public service agencies should study carefully to see how they can keep consumers at the front of their thinking.”

Lynton Barker, PSPP author of the report said:

“In the private sector, companies have learnt that if they interpret customer focus as only about front line systems and processes, they will not achieve sustainable success. Only when they change their strategy, policy, behaviours and reward systems outward to ‘face the customer’ will they increase customer satisfaction.

“Customer-focused Government requires a similar fundamental shift in the way public services are conceived and managed. I think this is a real challenge to public sector organisations, but one which it is essential to meet successfully if the Government is to achieve its planned transformation of public services.”

Peter Wanless, Board level customer champion at the Department for Education and Skills (DfES), which will be piloting the approach set out in the report, said,

“I think this report provides an excellent grounding in what customer focus means in the context of public policy-making, as well as very practical advice in how to achieve it.”

The report sets out four key principles for public service providers to address :

• Understanding the customer : who they are, what they want and understanding how they act at present and how they could act in future.
• Building operations around the customer : how strategy, performance measures, systems, processes, organisation, values and behaviours support customer focus.
• Managing stakeholder relationships : making sure that all parties with an interest in better services – the wider public, business, voluntary sector and representative groups, as well as individual users and public sector bodies – understand and support each other and manage the potential risks of close relationships.
• Using customer understanding to deliver target outcomes : developing and implementing strategies to make best use of customer knowledge and relationships in order to improve performance.

The report finds that the quality of front-line public services such as health care or vehicle licensing are compared increasingly with other service experiences such as banking or shopping, and that there is an increased expectation of high quality public services that match those provided elsewhere.

The recommendations reflect findings that the public are more discriminating as customers and conscious of the impact of Government policy on their lives, their health, opportunities and business, than ever before and want higher levels of personalised service, wider choice, more information, and a greater voice.

The report looks at the lessons public service agencies can take from the success of a number of public sector exercises:

• DWP developed in parallel overarching delivery principles to protect and enhance the dignity and individuality of existing and imminent pensioners, and specific, targeted objectives for identifying the needs and concerns of future pensioners, including under 16s about to enter the world of work, savings and pensions, the self-employed and presently unemployed as well as those presently working for an employer.
• DfEE (now DfES) developed a targeted, flexible approach to ensure that effective delivery of the new National Literacy Strategy takes account of the full range of consumer interests at every level, from the individual child, teacher and school to regional and national agencies, including local education authorities, OFSTED and the Department itself.
• DfEE and South East Careers Service developed a ‘walking through what happens’ model from the perspective of six different stakeholders, including a disaffected young person, social services and the Youth Service, to assist effective delivery of the Connexions Service for young people in the area.
• The Office of the e-Envoy is planning two e-strategies focused on service delivery to pensioners and young people as customers across Government. Both groups are high priority for the Government but do not fall neatly within the jurisdiction of any single Department.

Preparation of the report included interviews with a wide range of external organisations including interest groups, industry bodies, non Departmental public bodies, other Government Departments and individual public sector staff.

The press release issued by HM Treasury on 22 November 2001.

The Treasury has today decided to renew the scheme, set up to fill the gap in the commercial insurance market, until 23 January 2002. This will ensure that UK airlines can continue to fly in the wake of the events of September 11.

Chief Secretary Andrew Smith said:

“The Government has decided to renew the insurance scheme to enable airlines to keep flying. The Government’s objective remains to withdraw from the market as soon as practicable.  However, there is still a gap in the commercial insurance market which the Government is filling to ensure the aviation industry has the cover it needs.”

The current scheme expires on 23 November.  The scheme will be rolled forwards until midnight on 22 January 2002.  As before airlines and service providers will be required to find commercial cover for the first $50m of third party war and terrorism liabilities. The Government backed Troika scheme will provide the cover for liabilities above those minimum levels.

Premiums will be payable by all airlines covered by the Troika scheme.   These will continue to be on the per passenger basis recommended in European Commission guidelines.  However, discussions will continue with the industry on whether this is the most appropriate basis.

The Government will also continue discussions with the industry with a view to more commercial cover being reintroduced into the market.

The press release issued by HM Treasury on 20 November 2001.

Andrew Smith, Chief Secretary to the Treasury, today launched the work of a joint government and industry group, aimed at delivering better IT projects and creating a government market place more accessible for suppliers.

It represents a significant breakthrough in the approach to IT enabled business change by both government and industry and joint determination to ensure that, over time, future IT projects are delivered IT effectively. It also seeks to put an end to the cost and time overruns associated with previous IT project failures.

The programme of work was carried out by the Senior IT Forum, jointly sponsored by the Office of Government Commerce (OGC) and Computing Services and Software Association under the chairmanship of OGC’s Chief Executive, Peter Gershon.

As part of the programme Andrew Smith also announced today that the Department of Health, the Met Office and the Charities Commission would test a new approach to project leadership in live IT procurement projects in their departments. This would enable a supplier role to be developed to strengthen working relationships with Government to deliver successful IT projects.

Speaking at a Computing Services and Software Association conference in London, Andrew Smith said:

“Successful implementation of IT projects is important for the Government’s delivery of improved public services. These practical proposals should make it easier for Government and Industry to deliver business change supported by IT solutions that stand the test of time and ensure effective use of taxpayer’s money.”

The new approach to procuring and delivering successful IT projects includes:

a new framework for the leadership of projects
high level value for money guidance
a partnering approach recommended for all complex IT projects
a joint education programme as part of OGC’s wider commercial skills framework
input to a wider supplier code of conduct

Peter Gershon, Chief Executive of OGC said:

“The OGC is at the heart of helping government become a more intelligent client in procuring and delivering goods and services. Set against the progress already made under the SPRITE programme, today’s announcement represents a real step forward in opening the door to a new era of leadership and effective ways of procuring IT projects which deliver value for money.”

John Higgins, Director General of the Computer Services Software Association said:

“The work of the Senior IT Forum has been directed at driving out the systemic problems in public sector IT procurement. These first tangible results represent a significant step towards these goals and reflect the continued commitment of both Industry and Government to deliver real improvement in this difficult area.”

The Senior IT Forum’s recommendations are all intended to ensure that behavioural patterns are addressed on both the government and industry side. This will be reinforced by the roles of the Government’s Senior Responsible Owner (SRO) and Industry Equivalent (IE).

The Government will shortly publish guidance explaining the way it evaluates value for money. This transparent approach will make the government market more accessible for suppliers wanting to enter it who, previously, may have been discouraged from bidding for the Government’s IT business.

The work of the Forum will help encourage partnering behaviours such as openness and trust. In time this will mean less disputes and reduce the time and costs involved in delivering IT projects. The OGC will shortly issue guidance to support effective partnering, including a standard approach to partnering in contracts.

The OGC will extend its training programme for government staff across civil central government by introducing a Wider Commercial Skills programme. The Senior IT Forum is working with OGC to identify areas suitable for joint training with government and industry to facilitate the developments of better relationships between them.

The Senior Forum will contribute to OGC’s work with the wider industry by introducing a supplier code of conduct for industry. The code will set out a standard of behaviour and conduct for supplier working with government. This will support the existing government ?Code of Good Customer Practice? which was launched in June 2001.

These changes will create a better understanding between government and industry at the very outset of a project. They complement the Government’s Gateway Review process for civil central government announced in February 2001 to ensure that projects have the capability to deliver sound business cases and long term effectiveness.