Tag: Treasury

The press release issued by HM Treasury on 15 March 2000.

A new Treasury paper published today by Chief Secretary Andrew Smith projects a £20 billion expansion of the Government’s Public Private Partnership (PPP) programme over the next three years.

Mr Smith was launching “Public Private Partnerships : The Government’s Approach” – the Government’s strategy to increase investment in the public sector to provide better services and better value for money – during a visit to Lewisham Docklands Light Railway station in South East London.

The paper sets out how the Government plans an expanded PPP programme which will add to the £12 billion deals already signed or re-structured deals by this Government, by securing:

£8 billion to modernise the tube;
an estimated £1 billion to modernise UK’s Air traffic control infrastructure;
more than 60 new education projects nationally;
25 new health projects nationally; and
12 other new transport projects nationally;

The document “Public Private Partnerships : The Government’s Approach” also sets out for the first time the Government’s objectives for PPPs and the underlying principles which are central to the way in which Government goes about developing new partnerships with the private sector.

It shows how the Government has modernised the PPP system by eliminating the obstacles it inherited to deliver an expanded programme, better value for money for the taxpayer and a better deal for staff in the public sector.

Mr Smith said that this capital investment would focus on the Government’s priority areas of health, education and transport and hailed it as a cornerstone of the Government’s modernisation programme.

He said:

“Public private partnerships are making a major contribution to the renewal and modernisation of Britain’s public services with better schools and hospitals, and huge investment in public transport.

“Between 1992 and 1997 no PFI hospital deals were signed. Yet in this Government’s first two years we have signed 35 major hospital projects and, including deals in the pipeline there are a total of 100 health projects in the programme. This represents the largest investment in new hospital facilities since the NHS was established.

“On average, privately financed projects are delivering savings of 17 per cent compared to public sector alternatives – this represents savings of £2 billion on a £12 billion programme.

“That is why we want to build on our achievements to date. Over the next three years we expect to sign contracts for projects with an estimated capital value of a further £20 billion. That will bring to £32 billion the level of capital investment this Government has earmarked for PPPs since May 1997.

“In launching this document today I am looking to the future and outlining a prospectus for partnerships. This will be seen as a blueprint to the opportunities and challenges associated with different types of partnership arrangements. Above all it demonstrates how PPPs will deliver real improvements to public services, for the benefit of customers, local communities and the country as a whole.”

Deputy Prime Minister John Prescott said :

“PPPs can harness the best of the private and the public sectors to modernise Britain – and ensure real improvements to our public services and infrastructure. This has been clear to me for many years.

“With PPPs, we can build new hospitals and new schools and improve our transport system, ensuring the private sector achieves best value for the taxpayer. At the same time, they can safeguard the public interest and protect staff – providing better quality services and giving modern Britain the infrastructure it needs.”

Public private partnerships help deliver the quality public services. By harnessing the disciplines, incentives, skills and expertise which private sector firms have developed in the course of their normal everyday business, they allow Government to deliver more services, to a higher standard, and more quickly than would be possible with the public sector alone.

The press release issued by HM Treasury on 28 March 2000.

A platform for spreading best practice amongst Public Private Partnership (PPP) practitioners involved in drawing up IT contracts was announced today by Chief Secretary Andrew Smith and Cabinet Office Minister Ian McCartney.

This platform takes the form of new guidance for IT PPP deals which builds on the development and success of previous Treasury Taskforce standard contract guidance across all public services. The guidance is expected to further improve deal flow, reduce the costs of tendering and avoid the pitfalls of the past when poorly drafted contracts led to the demise of some IT projects. The guidance sets out recommendations not only for contract drafting, but also for improving the project management of IT PPP deals.

Launching the guidance, Andrew Smith said:

“This is an important step forward in ensuring that project and risk management for IT contracts is undertaken rigorously. The document emphasises the need for strong risk handling strategies and formalises the pre-contract risk review process which has been carried out to date by the Treasury Taskforce on significant projects.

“I expect the adoption of the standard approach set out in the guidance to produce substantial savings and result in greater value for money for the public sector.”

The publication of this specific guidance document for the IT Public Private Partnership sector is just one of the initiatives that the Government is currently undertaking to improve the strength of Government IT projects generally.

Ian McCartney, Minister of State at the Cabinet Office who is sponsor for the Government’s current review of the handling of major IT projects, said of the guidance:

“This Government is determined that our IT systems deliver first-class services and good value for money. Suppliers share responsibility for ensuring that projects deliver the promised service benefits and come in on time. A successful procurement process is fundamental to the success of these complex but vital projects. The guidance we are announcing today is just one part of a comprehensive package of measures to ensure that we implement systems successfully and maximise the benefits of IT to the public.”

The Taskforce IT guidance has also received the full backing of the National Audit Office (NAO), the Government spending watchdog. Assistant Auditor General, Jeremy Colman, of the National Audit Office, said:

“The new guidance perceptively reflects the key lessons learned from the first generation of PFI projects in the IT sector, many of which have been identified in our own reports. The onus is now on government departments and the IT industry to implement the guidance and improve the prospects of delivering projects to time, cost and functionality.”

The guidance sets out how to manage the procurement and contract stages of IT deals and gives advice on the handling of risk. The guidance also gives recommendations for approaching major software developments. It has been prepared after an extensive consultation process with public and private sector managers of IT projects, as well as financiers.

It is expected that the publication of the guidance will encourage more financiers to support IT PPP deals, as the document provides answers to some of the bankability problems posed to date in this sector.

The press release issued by HM Treasury on 30 March 2000.

A new shareholder panel of private sector managers and analysts, and the appointment of two new non-executive directors will bring greater private sector expertise into the running of the Royal Mint, Economic Secretary, Melanie Johnson, said today.

Welcoming the announcement, Miss Johnson said:

“These appointments are a key element in our programme of reform for the Royal Mint.

“The new shareholder panel will inject greater private sector expertise into the Mint and provide a more rigorous shareholder discipline. The appointment of two new non-executive directors will enhance the commercial expertise on the Mint’s Board.

“I am delighted to announce that John Dean, Hugh Beevor and Stephen Dawson have all agreed to become members of the new Royal Mint shareholder panel, and that Jan Smith and David Stark have agreed to become Royal Mint non-executive directors.

“We are very fortunate that five such high quality individuals have agreed to work with us in taking forward our programme of reform at the Royal Mint.

“The shareholder panel is an important innovation in the Government’s approach to managing public sector assets. We will be reviewing its operation after two years in part to see what lessons can be learned for other bodies in the public sector.”

Shareholder Panel

John Dean of Warburg Dillon Read – an investment analyst experienced in the smaller engineering companies sector. He was again ranked first in the 1999 Reuters survey of UK smaller engineering companies analysts. As part of his experience in the City, Mr Dean has considerable regional experience having worked as an engineering firms analyst in the traditional manufacturing areas of the North East and the West Midlands.

Hugh Beevor, formerly of Blue Circle Industries PLC has extensive experience of managing the relationship between a parent company and its subsidiaries. He was a main board director at Blue Circle with responsibility for 12 building materials companies. He is currently a governor of the Institute of Development Studies.

Stephen Dawson of ECI Ventures Ltd is managing director of a successful venture capital company, with over 20 years experience of investing in growth companies and turnarounds.

Non-Executive Directors

Jan Smith, formerly of the RAC, First Direct and Mazda Cars (UK) Ltd, now with her own consultancy has extensive business experience and a particular expertise in marketing. Her track record includes responsibility for the marketing launch of First Direct and the rebranding of the RAC where she was a member of the executive operating committee.

David Stark – formerly of Tomkins PLC and now of Chairman of Glentay Ltd served on the Board of Tomkins for 11 years. He is a qualified engineer and at Tomkins was responsible for 29 of the group’s companies, including all their European engineering companies and associated worldwide distribution companies. He is a member of the Competition Commission.

The press release issued by HM Treasury on 4 April 2000.

Proposals to ensure that progress is made in getting debt relief to the world’s poorest countries were outlined today by the Chancellor Gordon Brown and International Development Secretary Clare Short.

At a seminar at Downing Street this morning, UK Ministers told representatives of NGOs and religious faiths that they had written to the International Monetary Fund (IMF) and the World Bank suggesting that a Heavily Indebted Poor Countries – HIPC Review and Implementation Group is established.

It is proposed that the Group be a joint World Bank/IMF body that provides co- ordinated focus to the initiative, ensures HIPC is implemented consistently, identifies and deals with any reasons for delay and provides a single point of contact for shareholders, aid donors and NGOs.

The Chancellor said:

“We want to see faster progress on getting debt relief to the poorest countries. We place great emphasis on countries coming forward at the earliest possible opportunity to receive interim debt relief because this is the money they need to spend on improving primary health care, providing primary education and basic sanitation.

“We believe that the speedy, effective implementation of HIPC will be an acid test of the international financial institutions’ ability to help the poorest countries.”

Clare Short said:

“The agreement that debt relief and IMF programmes were focused on poverty was an enormous gain. We must find a way to ensure that this is driven forward.”

The press release issued by HM Treasury on 20 April 2000.

Lord Colin Sharman has been appointed to lead a review into the arrangements for audit and accountability for central government, Chief Secretary to the Treasury Andrew Smith MP, announced today.

The review will cover the modernising Government agenda, audit/valuation of performance measures, the implications of devolution, the wider European context, with particular reference to European Directives affecting audit arrangements, possible models from other countries, and the relationship with other audit and regulatory bodies.

Andrew Smith confirmed the appointment in response to a written Parliamentary Question from Barbara Follett MP today. Commenting he said:

“I am pleased to confirm therefore that Lord Sharman, a former senior partner at KPMG International, has been appointed to lead the review.

“This is a great opportunity for Parliament and Government to work together to make sure transparency and accountability go hand in hand with the modernising Government agenda.

“I look forward to seeing the results of the review later this year.”

The press release issued by HM Treasury on 27 April 2000.

Work on the design of the new working age agency is to be led by Richard Lapthorne, the chairman of Nycomed Amersham and former vice chairman of British Aerospace, the Government announced today.

The new agency, which will draw together the Employment Service and the parts of the Benefits Agency which support people of working age, will deliver a single, integrated service to benefit claimants of working age and to employers. It will be established as soon as possible in 2001.

Chief Secretary to the Treasury, Andrew Smith said:

“I am delighted that Richard will lead this work. His track record of managing complex organisational change in the private sector will be invaluable in getting the agency off to a good start.”

Secretary of State for Education and Employment, David Blunkett said:

“I welcome the appointment of Richard Lapthorne. He will be a key player in the success of the new agency and in ensuring that it has a clear work focus, both helping people to find jobs and in providing a responsive service to employers.”

Secretary of State for Social Security, Alistair Darling said:

“We’re building a brand new agency that will be more than the sum parts of the benefits Agency and the Employment Service. It will draw on the best experience of both the public and private sectors to provide a far more focussed service to its customers.”

Richard Lapthorne will head the project team which will design and develop the agency. Based in the Treasury, the team will include civil servants from the Department of Social Security and the Department for Education and Employment.

Its work will be overseen by a project board which will include Andrew Smith, the Chief Secretary to the Treasury, David Blunkett, Secretary of State for Education and Employment and Alistair Darling, Secretary of State for Social Security.

The Chief Executive of the new agency will be recruited by open competition later in this year.

The press release issued by HM Treasury on 4 May 2000.

Christopher Allsopp has been appointed to the Bank of England’s Monetary Policy Committee (MPC), the Chancellor Gordon Brown announced today. He will take up his membership of the MPC on 1 June. Mr Allsopp will replace Professor Charles Goodhart whose three-year term as a member of the MPC expires on 31 May.

Mr Allsopp is currently a Reader in Economic Policy and Fellow in Economics at New College, Oxford. A specialist in international macroeconomics, Mr Allsopp’s previous experience includes work at the OECD in Paris and 3 years as Adviser at the Bank of England as well as consultancy appointments with overseas Governments and many other UK and international organisations.

Mr Allsopp is currently a member of the Bank’s Court of Directors. As required by the Bank of England Act 1998, he will resign his membership of the Court before taking up his position on the MPC.

Gordon Brown said:

“I am delighted that Christopher Allsopp has agreed to join the Monetary Policy Committee. His long and distinguished academic career will enable him to make an invaluable contribution to the work of the MPC.

“I am very grateful to Charles Goodhart for his outstanding contribution to the Committee’s work over the last three years, and wish him well.”

CURRICULUM VITAE

Christopher John Allsopp MA, B.Phil. (Econ)

Personal Details

Date of Birth: 6 April 1941.  Married with 3 children.

Address:   New College, Oxford, OX1 3BN.

Education

Exhibitioner, Balliol College, Oxford University, 1960-65.

Student of Nuffield College, Oxford, 1965-66.

BA/MA Natural Science (Physics), Oxford, 1963.

B.Phil. (Economics), Oxford 1966.

Present Positions

Fellow in Economics, New College, Oxford, 1967 –

Lecturer 1967 – , then Reader in Economic Policy, Oxford University.

Member of the Court of Directors, Bank of England, 1997 –

Director, Oxford Economic Forecasting

Editor, Oxford Review of Economic Policy, 1985 –

Main Previous Appointments/Activities

Full-time

HM Treasury, Economic Assistant, 1966-67.

Head of Economic Prospects Division, OECD, Economics and Statistics Department, Paris, 1973-1974 and Editor, OECD Economic Outlook (on leave from New College and Oxford University).

Adviser, Bank of England 1980-83.  (On leave from New College and Oxford University).

Part-time and Consultancy

Consultant, HM Treasury, 1967-70.

Consultant to the OECD, working on problems of price stability and employment in the medium term, 1975-77.  (Including background studies and drafting input for, McCracken et al.

?Towards Full Employment and Price Stability?.  OECD 1976 (The ?McCracken Report).

Chairman, St James? Group (Economist/EIU Economic Forecasting Group), 1977-81.

Founder member of group set up to launch the Oxford Review of Economic Policy, 1983 founding Editor. 1985 to present.

Consultant, World Bank and commission for the Restructuring of the Economic Systems, Beijing, China, January 1988.  (With Sir Alec Cairncross).

Independent Consultant for the Swedish International Development Agency and the Government of the Republic of Zambia, 1988-89.  (Working on Exchange Rate Policy and Stabilisation in Zambia).

Consultant, OECD, Manpower and Social Affairs Department, Paris, 1989-90.

Economic Adviser to the Minister of Planning, Government of Poland, 1990-91.  (Coordinator of project financed by the Joint Assistance Committee for Easter Europe of the UK Overseas Development Administration (the ?Know-how Fund?))

Ford Foundation: Member of research project on Financial Reform in China, 1991.

Delegate, International Symposium: Financial Reform in China, Hainan Island, China, Dec 1991.

(Conference sponsored by CRES/World Bank/UNDP).

Delegate, International Symposium on China’s Financial Reform and the banking System, Dalian, China, 1993 June.

Adviser on International Prospects and Strategy: HD International, 1988-94; Mercury Asset Management, 1995-96: Norwich Union Investment Management, 1996 – present.

|Publications

The following is a selective list of Mr Allsopp’s important recent work.

?Monetary and Fiscal Policy in the 1980s?, Oxford Review of Economic Policy, Vol 1, No.1, 1985.

?The International Debt Crisis (with V R Joshi), Oxford Review of Economic Policy, Vol 2, No.1, 1986.

?Exchange Rate Economics? (with A Crystal), Oxford Review of Economic Policy, Vol 5, No.3, 1989.

?UK Fiscal Policy: Responsible or Irresponsible??, John Deutsch Institute of Public Policy, Kingston, Ontario, 1990.

?The Balance of Payments and International Economic Integration (with T Jenkinson and T O?Shaughnessy), Oxford Review of Economic Policy, Vol 6 No.3, 1990.

?Monetary Policy and Monetary Reform in China?, International Conference on Macroeconomic Management, Dalian, China; published, World Bank, 1994.

?Macroeconomic Reform and Control in China?, Oxford Review of Economic Policy, 1995.

?Fiscal Policy and EMU? (with D Vines), National Institute Economic Review, 1996, 4.

?Monetary and Fiscal Stabilisation of Demand Shocks within Europe? (with G Davies, W McKibbon, D Vines).  In, C Deissenberg, R F Owen, D Ulph, (eds), European Economic Integration, Blackwells, special supplement to the Review of International Economics, 5(4), 55-56, 1997.

?Economics of Transition in East and Central Europe?.  (With H Kierskovsky).  Oxford Review of Economic Policy Vol 13.2, 1997.

?European Unemployment and EMU? Employment Policy Institute, 1997, Nov.

?Macroeconomic Policy after EMU? (with D Vines).  Oxford Review of Economic Policy, Vol 14, No.3, Autumn 1998 pp 1-23.

?Real Interest Rates?.  (With A Glyn) Oxford Review of Economic Policy, Vol 15, No.2.  Summer 1999 pp 1-16.

The press release issued by HM Treasury on 16 May 2000.

Paul Myners today launched his review of UK institutional investment with a consultation document setting out the main themes which the review will examine, and almost fifty issues for discussion. It invites comments on the current position and how this could be improved to remove unnecessary barriers to investment in growth and innovation in the UK economy.

A primary focus of the review will be to investigate whether there are factors distorting institutional investors’ decision-making, encouraging, for instance, excessive dependence on industry-standard investment patterns.

Paul Myners said:

“I have been concerned for some time that we are not making the best possible use of our capital markets.

“It is not appropriate for Government to second-guess institutions’ investment decisions. But if there are structural factors that are distorting rational decision-making, then there may be a role in helping to remove them. So when the Chancellor asked me to lead an inquiry into these issues, I was delighted to accept.”

The review will cover all types of institutional investment, including pension funds, insurance companies and unit trusts. It will consider issues such as the benchmarks against which investment performance is measured, the impact of public discussion of investment performance, and the regulatory environment in which decisions are made. The review will report to the Chancellor of the Exchequer in time for the next Budget.

Mr Myners added:

“I welcome views from as wide a range of organisations and individuals as possible. As well as the views of those in the investment industry itself, I would also like to hear the experiences and opinions of those who have looked, successfully or not, to institutional investors for funding to develop ideas and commercial opportunities.

“To get the best spread of views, the consultation document is available on the internet, and I very much look forward to receiving responses by e-mail if this is the most convenient way for contributors to contact me.”

The press release issued by HM Treasury on 25 May 2000.

Chancellor of the Exchequer Gordon Brown today formally renewed the Bank of England’s monetary policy remit, following an announcement in his Budget Speech on 21 March.

Answering a Parliamentary Question from Ms Jackie Lawrence (MP for Preseli Pembrokeshire), the Chancellor said:

In accordance with S.12 of the Bank of England Act 1998, I have today written to the Governor re-stating the MPC’s remit and how it will be held accountable for meeting the remit.My letter has been laid before Parliament and a copy has been sent to the Chairman of the Treasury Committee. Copies are also being deposited in the Libraries of both Houses….. The full text of the remit, and the Chancellor’s letter to the Governor of the Bank of England, is attached.

—–

Eddie George Esq
Governor
Bank of England
Threadneedle Street
LONDON
EC2R 8AH

25 May 2000

Dear Eddie

REMIT FOR THE MONETARY POLICY COMMITTEE

The Bank of England Act requires that I specify what price stability is taken to consist of and the Government’s economic policy objectives atleast once in every period of 12 months beginning on the anniversary of the day the Act came into force. I last wrote to you on this matter on 18 May last year.

As you know, I re-confirmed the target of 2.5 per cent for RPIX inflation in this year’s Budget. In accordance with the Act, I confirm that the MPC’s remit remains unchanged. I attach a copy of the remit, as first set out in 1998 (after the Act came into force), for ease of reference.

Yours sincerely

GORDON BROWN

—–

REMIT FOR THE MONETARY POLICY COMMITTEE

The Bank of England Act came into effect on 1 June 1998. The Act states that in relation to monetary policy, the objectives of the Bank of England shall be:

(a) to maintain price stability, and

(b) subject to that, to support the economic policy of Her Majesty’s Government, including its objectives for growth and employment.

In order to comply with the Act, this remit sets out what price stability shall be taken to consist of and what the economic policy of the Government shall be taken to be.

Price stability

I confirm that the operational target for monetary policy remains an underlying inflation rate (measured by the 12-month increase in the RPI excluding mortgage interest payments) of 2.5 per cent. The inflation target is 2.5 per cent at all times: that is the rate which the MPC is required to achieve and for which it is accountable.

My intention is to lock into our policy making system a commitment to consistently low inflation in the long term. The real stability that we need will be achieved not when we meet the inflation target one or two months in succession but when we can confidently expect inflation to remain low and stable for a long period of time.

The framework takes into account that any economy at some point can suffer from external events or temporary difficulties, often beyond its control. The framework is based on the recognition that the actual inflation rate will on occasions depart from its target as a result of shocks and disturbances. Attempts to keep inflation at the inflation target in these circumstances may cause undesirable volatility in output.

But if inflation moves away from the target by more than 1 percentage point in either direction I shall expect you to send an open letter to me, following the meeting of the Monetary Policy Committee and referring as necessary to the Bank’s Inflation Report, setting out:

the reasons why inflation has moved away from the target by more than 1 percentage point;
the policy action which you are taking to deal with it;
the period within which you expect inflation to return to the target;
how this approach meets the Government’s monetary policy objectives.

You would send a further letter after three months if inflation remained more than 1 percentage point above or below the target. In responding to your letter, I shall, of course, have regard to the circumstances prevailing at the time.

The thresholds do not define a target range. Their function is to define the points at which I shall expect an explanatory letter from you because the actual inflation rate is appreciably away from its target.

Government’s economic policy objectives

The Government’s central economic policy objective is to achieve high and stable levels of growth and employment. Price stability is a precondition for these high and stable levels of growth and employment, which will in turn help to create the conditions for price stability on a sustainable basis. In the recent past, instability has contributed to the UK’s poor growth performance, not least by holding back the long-term investment that is the foundation for a successful economy.

The monetary policy objectives of the Bank of England are to maintain price stability and subject to that, to support the Government’s economic policy, including its objectives for growth and employment.

Accountability

The Monetary Policy Committee is accountable to the Government for the remit set out in this letter. The Committee’s performance and procedures will be reviewed by the Court on an ongoing basis (with particular regard to ensuring the Bank is collecting proper regional and sectoral information). The Bank will be accountable to Parliament through regular reports and evidence given to the Treasury Select Committee. Finally, through the publication of the minutes of the Monetary Policy Committee meetings and the Inflation Report, the Bank will be accountable to the public at large.

Restatement of the Remit

The inflation target will be confirmed in each Budget. There is a value in continuity and I will have proper regard to that. But I will also need to consider the case for a revised target at these times on its merits. Any changes to this remit will be set out in the Budget. The Budget will also contain a statement of the Government’s economic policy objectives.

The press release issued by HM Treasury on 2 June 2000.

Three of the key areas covered by the Government’s Spending Review, social inclusion, productivity, and sustainability, will benefit from the first tranche of a new £4 million fund. The fund has been set up by the Treasury to ensure that the formulation of Government policy is adequately evidence based.

The ” Evidence-Based Policy Fund” aims to strengthen links between Universities or Research Institutes and Government, through the financing of applied research on some of the Government’s priority topics. A secondary aim is to improve channels of communication between researchers and Government, stimulating appraisals of Government policies and enabling Government priorities to influence research agendas.

The fund, to be administered by the Treasury, will operate in tranches. The first tranche will cover the following themes:

• reducing child poverty and local deprivation; the role of mainstream public services
• raising national productivity; the contribution of public services and other policies
• development in rural areas; reconciling welfare and environmental objectives

A second tranche with new themes will probably be launched in the Autumn.

The intention is that the research will be funded to complement Departments’ specific analytical strategies. Preference will be given to proposals that span conventional Departmental boundaries.