Tag: Treasury

The press release issued by HM Treasury on 11 December 2001.

The “remarkable performance” of the UK economy “owes much to the government’s strong policy framework”, report the International Monetary Fund today. Concluding their recent examination of the UK economy, the IMF say that “the symmetric inflation targeting framework has enabled the Monetary Policy Committee (MPC) to respond promptly to demand shocks, including the recent global slowdown”, while “fiscal policy should continue to meet the high standards of prudence and predictability that have characterised it over the last few years.”

Commenting on the projections in last month’s PBR, the IMF say that GDP growth at 2-2½% in 2002 “is only slightly above [the IMF’s] central forecast”.  Moreover, the “cyclically-adjusted overall deficits of about 1 percent of GDP over the medium term would not compromise the strong underlying fiscal position achieved in the late 1990s”.

The IMF conclude that “the budget and pre-budget reports, as well as the frequent consultations between the government and the public, in many respects set an international standard of best practice,” and support “the strengthening of the UK’s anti-money laundering rules, which are considered, in many respects, an international model.”

The IMF endorses many of the structural reforms the government has embarked on to raise growth in the UK, and describe the government’s strategy in this area as “appropriate”.  Overall they conclude that “the track record of sound policy design and implementation in recent years bodes well for continued success in a more uncertain world economy.”

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

“I welcome this confirmation from the IMF that our prudent approach to economic policy leaves us better placed to withstand the ups and downs of the world economy. According to the IMF, the UK will grow faster than any other G7 country this year.

I also welcome the IMF’s support for the structural reform agenda we are pursuing to raise long term economic growth in the UK and improve productivity, which will mean rising living standards for all.  As the IMF say, this agenda ‘should continue to be pursued vigorously.”

The press release issued by HM Treasury on 1 February 2001.

ANDREW SMITH ANNOUNCES A SCHEME TO FUND SUMMER PLACEMENTS IN WHITEHALL

A scheme to fund ten academic summer placements in Whitehall, starting in June 2001, was announced by the Chief Secretary, Andrew Smith today. The aim of the scheme is to strengthen the links between the academic research community and Government policy development.

Andrew Smith said:

“This Government has worked with the research community from the outset, but we are very keen to build on this with new channels of communication between us. The contacts provided by these placements should help strengthen these links further and underpin effective Departmental policy formation.

I am very pleased that 5 central Government Departments have agreed to take part in this scheme, which closely follows a tried and tested system in the United States.”

Applicants are being invited to submit research projects that are relevant to policy formulation, with proposals either identifying emerging policy issues or aiming to increase understanding of existing ones. As well as the Treasury, DSS, DETR, DFEE and MAFF have agreed to take part.

Each placement will carry a grant of £10,000. Successful applicants will be expected to carry out at least two months of research, of which at least four weeks must be spent within the relevant Department.

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

ALISTAIR DARLING OUTLINES NEW MEASURES FOR THE CHILD SUPPORT AGENCY

The Children’s Tax Credit – a family tax cut which will help 5 million families with children get up to £442 off tax bills – was launched today by Chancellor Gordon Brown, Social Security Secretary Alistair Darling and Paymaster General Dawn Primarolo.

A major £4.7 million national advertising campaign will encourage families to apply for the tax cut, helping them when they need it most – when children are growing up. A Helpline is available – 0845 300 1036 – for more information and help.

Gordon Brown said:

“All parents should have more support when they need it most – when children are growing up – and all, including absent parents, have a duty to fulfil their responsibilities. Our approach is firstly, to ensure the tax system acknowledges the costs of bringing up children – every family with children should have more support, improving family prosperity and reducing child poverty; second, we want to make it easier for parents to spend more time with their children by helping families balance work and home; and third, we want to ensure that all parents take seriously their responsibilities to their children, even where they are not living with them day-to-day.

Today, with the national advertising launch of the Children’s Tax Credit – our family tax cut – the tax system, which for years has ignored the very existence of children, is now recognising the very real costs of bringing up children. Building on the foundation of Child Benefit, paid to every one of 7 million mothers in the country, the new Children’s tax Credit is central to the new system of financial support for families.

The maximum amount of £442 a year is on top of Child Benefit – for a family on £30,000 a year, that’s the equivalent of nearly 2 pence off the basic rate of tax; for a family on average earnings of £25,000, it’s the equivalent of 2.5 pence; and for a family on £15,000, it’s equivalent to 5 pence off the basic rate. People should apply by the end of February to see the difference in their April pay packet.

But I want to do more to support families in the Budget, and to meet the needs of parents who wish to stay at home for longer after the birth of a child; getting people back into work with incentives such as WFTC and the 10p rate has been our priority, but now it is time to do more for mothers who want to stay at home, particularly in the first months and years of their young child’s life; I am confident that we will be able to take steps to improve arrangements for families facing additional costs and pressures where there are new born children.

Our approach, now and after the next Budget – rising Child Benefit for all, the family tax cut for millions, helping parents to balance work and family responsibilities, and ensuring all parents take responsibility for their children.”

Alistair Darling outlined the steps the Government has taken to ensure parents take responsibility for their children:

“Most parents are happy to meet their responsibilities, but a minority try to evade their duty, and by doing so deny children their right to a decent start in life. That is why our reform of child support is so important; over one million children will benefit when the new, simplified assessment system come into force at the CSA, getting more money, more quickly, to more children.

But we have to ensure those absent parents who evade their responsibilities do their best for their children. Our new powers, introduced this week, will ensure absent parents share in the care of their children. But in April, we will get tougher – courts will crack down on those who repeatedly avoid their responsibilities by removing driving licenses. A strong reminder that rights bring responsibilities, and a small price to pay to give children a better start in life.”

The press release issued by HM Treasury on 6 February 2001.

A committee including landscape designers, architects and art experts has been set up to advise on the most suitable location and preferred design for a fountain in memory of Diana, Princess of Wales, and to supervise the detailed process leading to its installation.

The Fountain Design Committee will be chaired by the Hon. Rosa Monckton, a member of the Diana, Princess of Wales Memorial Committee. It will advise the Memorial Committee on a suitable site for the fountain within one of London’s Royal Parks. The Memorial Committee will then announce its final choice of location.

The Memorial Committee believes that a fountain would be an appropriate additional memorial to complement the four commemorative projects already established. Once a suitable site has been chosen, the Fountain Design Committee will supervise a design competition for an appropriate fountain, taking account of landscape and other considerations particular to the selected site.

The most suitable designs will be submitted to the Memorial Committee for consideration before a final decision is taken and the installation process can begin.

It was also announced today that Lord Luce, the Lord Chamberlain to the Royal Household, will succeed Lord Camoys on the Diana, Princess of Wales Memorial Committee.

NOTES TO EDITORS

1. The terms of reference of the Fountain Design Committee are:

2. The Fountain Design Committee will advise the Memorial Committee on the choice of exact location and actual design of the fountain, and oversee the whole process from the preparation of the specification, the selection of the design team, consultation with interested parties, to the work to construct the fountain.

The members of the Fountain Design Committee are:

Hon Rosa Monckton (Chair)

Chair of ‘Kids’ charity for disabled children; close personal friend of Diana, Princess of Wales and member of the Diana, Princess of Wales Memorial Committee.

Richard Cork

Chief art critic, Times; former trustee Public Arts Development Trust; member advisory group on the Vacant Plinth in Trafalgar Square; exhibition organiser.

Edward Jones AADipl Hons RIBA

Architect in private practice: projects include Royal Opera House; buildings for Henry Moore Foundation, Leeds; National Portrait Gallery; and housing in New Delhi.

James Lingwood

Co-Director, Artangel Trust, which commissions and produces major new works by contemporary artists, eg Rachel Whiteread’s House.

Sandra Percival

Director, Public Art Development Trust, which promotes commissioning, restoration and preservation of art in public, and public education about art in public places.

David Sylvester CBE

Former Chairman, Arts Council of Great Britain; member of the South Bank Board; exhibitions curator, writer on art.

William Weston

New Chief Executive, Royal Parks Agency; previously Secretary to the Governors and General Manager of the Royal Shakespeare Company.

Kim Wilkie

Principal, Kim Wilkie Associates; landscape design expert; member of the Royal Parks Advisory Board.

Dr Giles Worsley PhD FSA

Architecture correspondent, Daily Telegraph; member of Somerset House Trust, Building Committee of the Trustees of the National Gallery; former member Royal Fine Art Commission.

The press release issued by HM Treasury on 6 February 2001.

A new design award the “Prime Minister’s Better Public Building Award” was announced by the Chief Secretary Andrew Smith today in a speech in London to the Better Public Buildings Conference. The award reflects the Government’s commitment to raising the standard of public building projects by identifying and rewarding high quality design and construction.

Andrew Smith said:

“The number of public buildings which are outstanding examples of design, construction, and delivery, is growing every year. These embody high quality at reasonable cost and represent best value to the procurers, the users and the public.

To recognise these achievements, and as another sign of our determination to improve design, I am very pleased to announce today the ?Prime Minister’s Better Public Building Award?.

This award reflects the Prime Minister’s personal interest in excellence in public buildings, and his commitment to raising the standard of public building projects. The award will be made to the most outstanding building, and will be announced at the British Construction Industry awards on 24 October.

The award will be sponsored by the Commission for Architecture and the Built Environment and the Office of Government Commerce on behalf of all of the Government, and it will be administered and judged under the aegis of the BCIA.”

The press release issued by HM Treasury on 8 February 2001.

The Caribbean Overseas Territories and Bermuda have now each provided a formal response to the recommendations made in KPMG’s review of financial regulation, which was published on 27 October 2000.

Noting the responses of the Overseas Territories, the Economic Secretary to the Treasury, Melanie Johnson, said:

“The Overseas Territories have now explained how they plan to respond to KPMG’s recommendations. I have made it clear that the establishment of independent regulatory authorities, of effective powers to assist investigations by overseas authorities, and of any necessary enhancements to the laws and systems which combat money laundering are essential elements in establishing properly regulated financial centres in the Overseas Territories.

“These overdue measures need to be in place by the end of September 2001. The Overseas Territories themselves agreed when the review was published that these three priorities should substantively be in place by then, and I expect full delivery of their promises.

“I also expect to see KPMG’s other recommendations implemented by the end of 2001. This is essential if the Overseas Territories are to satisfy the international community and standard-setting bodies that they conduct their financial business according to international requirements. The UK fully supports a number of international initiatives which make it clear that counter measures will be taken against persistently non-compliant offshore financial centres.”

Baroness Scotland, Parliamentary Under Secretary of State in the Foreign and Commonwealth Office responsible for the Overseas Territories, added:

“I welcome the high level commitments from the Caribbean Overseas Territories and Bermuda to address the KPMG recommendations. Financial services is a competitive sector, and the UK Government is keen that the Overseas Territories will attract quality business seeking a well-regulated environment, based on the prevailing rules, laws and good practice internationally.

“The UK Government will continue to provide advice and assistance to help the six Overseas Territories concerned to achieve full compliance with the principles and guidelines in the KPMG report. There will be a process of regular review and dialogue over the next twelve months to ensure the published implementation plans are substantially implemented by the end of 2001.”

The press release issued by HM Treasury on 13 February 2001.

The publication today of Lord Sharman’s review of audit and accountability in central Government was welcomed by the Chief Secretary, Andrew Smith.

He commented:

“I am grateful to Lord Sharman for his Review of this important and complex area, and for conducting it so speedily.

“The twin principles of accountability of the Executive to Parliament and independent scrutiny by the Comptroller and Auditor General are enormously important to good government. Present arrangements have evolved gradually over the past century and it is valuable to have the benefit of Lord Sharman’s views on how these arrangements should now be developed to best fit the 21st century.

“The Government will consider Lord Sharman’s recommendations very carefully with a view to improving the present system of accountability.

“It will be important to consult widely among departments, other bodies which might be affected and other key stakeholders, before issuing a formal response in due course.”

The press release issued by HM Treasury on 19 February 2001.

The results of an independent review into the efficiency of the Utility Regulators, Ofgem (electricity and gas), Oftel (telecommunications), Ofwat (water and sewerage), and ORR (rail), were published by the Chief Secretary, Andrew Smith today.

Welcoming the report, Andrew Smith commented:

“I am very grateful to WS Atkins for their thorough report, and the positive way in which the regulators have approached this review.  The purpose of this work was to give the Government, the regulators themselves and their stakeholders the reassurance that each organisation was efficiently run, to identify any shortcomings and encourage the spread of best practice. It was not the intention to question the policies being followed by the regulators.

“The Treasury and the four Regulators will now be looking at the report’s recommendations and considering how to take them forward, bearing in mind that some of the recommendations will apply to some of the Regulators but not all.”

The report concluded that the regulators are professionally run organisations and that there are many examples of good practice.  Whilst the costs of regulation have risen well in excess of inflation, the amounts involved are still very small in comparison to the turnover of the regulated industries and the benefits received by consumers.  But the report also identified areas for improvement.  Four of the main findings of the report are:

• More could be done to ensure that good practice in one organisation is shared by the others.
• Focus needs to be given to controlling further the proportion of costs spent on support services.
• The annual staff turnover of 20% (a lot higher in some specialist grades) needs to be addressed, particularly in Oftel and Ofgem. Market-related pay structures for senior and middle-ranking staff should be considered.
• More could be done to increase transparency in budget-setting and assessing the costs and benefits of individual projects at an early stage.

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

The taxpayer is to benefit from improved front line public services under a new procurement technique, designed to deliver value for money improvements and successful completion of major civil central government projects, Andrew Smith, Chief Secretary to the Treasury, announced today.

The Gateway process has identified potential savings from value for money improvements made in pilot projects which  could amount to up to £150 million.  This figure is expected to rise to £500 million annually once the full roll out of new projects take effect in 3-4 years time.

The ‘Gateway Review’, a technique introduced by the Office of Government Commerce, will be managed operated by them along private sector lines. Major, complex or novel government acquisition projects, including those involving Construction, IT and PFI will only pass through a series of  five ‘gates’ at key stages in their lifecycle, when given a green light to do so.

Speaking at the ‘Gateway’ launch in London at 12 Downing Street, Andrew Smith said:

“We have a duty of care to the taxpayer to eliminate poor procurement methods and to ensure value for money improvements.  For every pound saved in procurement is a pound more for front line public services like hospitals, education, fighting crime and investing in transport.

Through the Office of Government Commerce  we now have a commercially minded reliable management system  – the Gateway Process –  that can be applied to every major Government project.  Such projects will pass through each ?gate?,  only when rigorous tests have been met.

Failure in big projects doesn’t come cheap and is no longer a concept that the public is prepared to accept in the development and construction of major government projects.  Poor procurement leads to the waste of public finances. That is why the Gateway makes commercial common sense.”

‘Designed for success’ the Gateway Process comprises five major ?gates? through which projects must pass to test their procurement viability:

• Gate 1   –    justify business case
• Gate 2   –    approve procurement method
• Gate 3   –    approve award of contract
• Gate 4   –    test whether project is ready to go live
• Gate 5   –    identify if project has delivered planned benefits

The Gateway is a review of a project carried out at key decision points by an independent team of experienced experts sponsored by the OGC project team.   The reviews are timed to fit within existing project timescales that identify the key issues for success in major projects. They will minimise the risk of failure of major government  projects and, with it, remove the  huge waste of money that comes hand in hand with failure.

Peter Gershon, the OGC’s  Chief Executive said:

I am confident that the Gateway Process can make a huge difference to the way the public sector procures large government projects.  Historically there has been wide variability on the outcomes of major projects with too many being late, over budget and not generating the planned level of benefits.

The OGC Gateway Process is based on techniques that have been tried and tested in the private sector and provides senior managers in government with the powerful tool to help manage these projects better in future.

The introduction of five stages to the Gateway Process will ensure that projects that have not met our rigid criteria will fail to proceed.  This will enable appropriate corrective action to be taken.  The successful testing of pilot projects over the past nine months demonstrates that the Gateway represents a huge improvement in the government’s procurement capability.

Ian McCartney, the Minister responsible for e-Government said:

I welcome the launch of the OGC Gateway Review process.  It provides a clear and sensible process to assure project management and development and to secure ultimate success.

With the publication of ‘Successful IT : Modernising Government in Action’ and the progress report last year, Government is implementing one of the most comprehensive programmes ever to improve the delivery of government projects enabled by IT.

Initiatives to upskill civil servants, improve project management and measures to streamline the management of projects, have already been put into practice.  The Gateway Review Process takes the implementation of “Successful IT” one step further, asking the difficult questions at key stages of projects to support departments in delivering value for money in modernisation of government services. Gateway reviews have already been piloted using techniques proven in the private sector.  Running since May, the pilots have reached various stages of the five gates system.

Reviews are short and intensive aimed at identifying the key issues for success.  Each gate review will take approximate 4-5 days and fit within existing project timescales.

Pilots with project values amounting to some £3 billion are expected to achieve value added benefits in excess of 5%.

The Gateway Process will be fully operational this year though the full benefits will not be realised for 3-4 years.   That is when the full value of the Gateway will realise the most benefits.

Large, complex and novel projects are an important component of government procurement.  There are more than 200 organisations in government who spend billions of pounds on such projects each year.

The press release issued by HM Treasury on 21 February 2001.

Financial Secretary, Stephen Timms, today met the major oil companies and Independent retailers to discuss how the introduction of ULSP was going, after the meetings he said:

“The Chancellor of the Exchequer announced in the Pre-Budget Report in November that the Government would reduce duty on ultra-low sulphur petrol on Budget day this year, in recognition of its environmental benefits, subject to consultation and it being widely available.

The purpose of this statement is to provide an update of that process and of how the introduction of ULSP is proceeding and to set out the steps the Government is taking to ensure the smooth transition to nationwide use of this fuel.

Lord MacDonald and I have today met with the major oil companies to discuss this issue.  On the basis of that meeting, I am glad to say that we believe that the oil companies are on track to meet their target to supply ULSP nationwide at their retail sites by the end of March.

Lord MacDonald and I also asked representatives of independent petrol retailers to meet us today.  They operate over 5,000 retail sites across the country.  Many are small businesses, often playing a vital role supplying rural and urban communities.

Although some independents are already supplying up to 50% ULSP, their representatives indicated that they anticipate that it could take independent retailers longer to complete the nationwide transition to ULSP than for the major oil companies, because of constraints on the capacity of UK oil refineries.

The independent retailers could move faster by increasing imports, but this might cause uncertainty in the wholesale and retail markets and would not necessarily be to the benefit of motorists.

The Government’s objectives are to ensure that everyone should be able to share the environmental benefits of ULSP, and the benefits of the duty cut associated with it.  It is in the whole country’s interests that these objectives are achieved, and achieved as smoothly as possible.

Any decisions on actual duty rates will be taken and announced by the Chancellor in the Budget itself but, as a sensible measure that will be supported by independent petrol retailers, to guarantee that all motorists would benefit from a cut in duty on Budget day, I can announce that the Government intends to match any reduction in duty on ULSP that is announced in the Budget with a reduction in duty on unleaded petrol for a temporary period until 14 June 2001.

This will ensure that the introduction of ULSP across the country will happen in the smoothest way, and that car-drivers – especially in rural areas supplied by independent petrol retailers – will be able to benefit from any duty cut that is announced in the Budget for ULSP.   We want to match nationwide availability at the major oil companies with all motorists benefiting from any duty cut at independent stations too.

In this way we best achieve our aims set out in November – first, that the long-term benefits to the environment are achieved; second, that motorists would be able to benefit from a cut in petrol duty on Budget day; and third, that the benefit would go to all motorists in all areas.”