Tag: Treasury

The press release issued by HM Treasury on 18 June 2000.

5 million families in Britain are set to gain up to £442 a year off their tax bills next year, when the new Children’s Tax Credit comes into force.

A national press and radio advertising campaign launched today by Paymaster General Dawn Primarolo alerts parents to the new Credit, and encourages them to claim it.

Dawn Primarolo said:

The Government’s ambition is that every child should have the best possible start in life. The new Children’s Tax Credit, which comes into force in April 2001, aims to get help and support to those taxpaying families who need it most. It will provide families with up to £442 a year off their tax bills, a £1.7 billion boost for Britain’s families.

I would urge every parent – whether married or unmarried – with children under the age of 16 to look out for the information soon to be sent out by the Inland Revenue. There is also a Helpline – 0845 300 1036 – for anyone who has any queries.

Building on the package of Government help already available – such as the Working Families Tax Credit, the National Minimum Wage and the recently announced £4.5 million worth of start-up grants for childminders – the new Credit is an important step in delivering a fairer tax system for families with children. It is part of the Government’s commitment to making work pay and giving children the best possible start in life.

The press release issued by HM Treasury on 23 June 2000.

Enterprise for all in every region should be a reality, not a dream, said Chancellor Gordon Brown today, as he announced a new package of help for anyone in Britain wanting to start up in business.

Speaking in Birmingham, the Chancellor set out the next stage of reform to equip Britain with the skills and knowledge needed to compete successfully in the modern global market place. He announced that making enterprise open to all will be a priority for the Government’s spending review, with:

•  a major new package to make sure that anyone anywhere who seriously wants to start a business can get the advice and assistance they need; deprived areas will get extra help;
• a new initiative aimed at getting more private sector investment to tackle the problems of our poorest communities, with an initial fund target of £20 million, including a matched contribution by Government;
• a new drive to encourage enterprise in schools, with a call to all businesses to ‘Adopt a School’, particularly in disadvantaged areas.

Speaking as figures published today show a sharp difference in business creation between different areas around the country, the Chancellor said:

“Opportunity for all means a Britain where all have the opportunity not just to work, but to work their way up, to gain promotion, start a business, become self-employed, upgrade their skills, and rise as far as their talents and potential can take them; a Britain where there is not so much a narrow ladder of opportunity for the few, but a broad and expansive highway of opportunity for all.

“When the most important resource of a firm or country is not its raw materials or favourable location, but the skills, talents and potential of its workforce, we need to develop the talents of the best people and get the best out of people. Only 16% of people in the UK think there are good opportunities to start a business, compared to 57% in the US. And figures published today show dramatic variations in business creation around the country. It is clear that the denial of opportunity has become a barrier to prosperity.

“We cannot stress enough the importance of individuals making the most of their talents and contributing to their community around them. The Government’s aim is to help people help themselves.

“That is why I can announce that in the spending review, we will make it possible for anyone anywhere who seriously wants to start a business to get a free package of advice, information and access to mentoring through the Small Business Service, worth up to £500. And in the high unemployment areas of the country, we will support intensive programmes of help worth up to £2000 for each business start-up. Our priority in the spending review will be to extend enterprise to all and finance new measures in the poorest areas.”

The Chancellor outlined the barriers to getting private sector investment into deprived areas, and announced a new scheme to help overcome this: “I have asked the Social Investment Taskforce, led by Ronald Cohen of Apax Partners & Co, to plan a new social venturing initiative targeted at promoting investment in our low income areas. As a first step we have agreed to invest £10 million on a matching basis, making an initial target fund of £20 million.”

The Chancellor stressed the need for a culture change, starting in our schools:

“I want to see all schools encourage our young people to consider enterprise as a career, and we have begun to improve the national network that brings schools and businesses together. But I want to see more businesses get involved with their local schools, especially in disadvantaged areas. So today I urge all businesses throughout the country to ‘Adopt a School’ – by taking students on work experience and teachers on work placements, sending employees into schools to help run enterprise classes, or being business governors. By adopting a school, every business in the country will be helping to build the new enterprise culture that we all want to see.

“Our mission is to make a reality of enterprise for all.”

The Chancellor also announced that:

“We will fund the new Regional Development Agencies to work on pilot projects with experts from the USA – learning from hands on experience of developing entrepreneurship in inner cities as part of urban renewal.

“We will also sponsor – with the private sector – a survey of the 25 fastest growing firms in deprived areas, to show that there is real growth potential here. For too long, that has been neglected.”

A table of VAT registration figures around the country is attached. These show a sharp regional and local divergence in small business creation, with VAT registration up to six times higher in richer than poorer areas.

The press release issued by HM Treasury on 27 July 1999.

Patricia Hewitt, Economic Secretary to the Treasury, Environment Minister, Michael Meacher and Trade & Industry Minister, John Battle, met representatives of the energy intensive sectors to discuss the Climate Change Levy at the Treasury today.

Commenting afterwards, Patricia Hewitt said:

“My ministerial colleagues and I were delighted to meet representatives of the high intensive energy users today to discuss the climate change levy.

“We had very useful discussions about the levy. Today’s meeting formed another important milestone in the ongoing process of consultation and dialogue over how we can practically implement the levy.

“We want to work with industry and other interested parties to ensure we design the climate change levy in a way that maximizes its environmental effectiveness whilst safeguarding competitiveness.”

Following the meeting, the Economic Secretary announced a new proposal which would exclude electricity used in chemical reactions from the levy, in addition to coal and gas.

The decision was formally announced in response to a Parliamentary Question from Ivor Caplin MP.

Patricia Hewitt said:

“As indicated in the consultation document published by Customs and Excise on Budget day coal and gas used in chemical reactions will not be subject to the levy.

“Officials at Customs are having useful discussions with industry about how to apply the exemption to fuels used both for chemical reaction and for heating, such as in the steel industry.

“In the light of the representations received on the treatment of electrolysis, we propose to extend this to electricity. We propose that electricity used for electrolysis, either for the production of chloralkalis or the primary smelting of aluminium, will be exempt from the levy to the extent that it is used in chemical reactions.

“Again, Customs will discuss precisely how this will work with the industries involved with a view to the revised treatment being included in the draft clauses to be published in the Autumn.”

The press release issued by HM Treasury on 22 July 1999.

The Government is to create a new private sector-led body to help increase and improve investment in the UK’s public services from private sources.

Partnerships UK will employ City experts to help the public sector get the best deal from the Private Finance Initiative and other forms of public-private partnerships.

A new Office of Government Commerce is also being set up as part of a shake up in how Whitehall goes about managing its £13 billion a year procurement budget.

The changes, which are expected to produce savings to taxpayers of up to £1 billion over three years, follow recommendations made in two separate but interrelated reports – one from Sir Malcolm Bates, Chairman of Pearl, about improving the Private Finance Initiative and the other from Peter Gershon, Managing Director of Marconi Electronic Systems Ltd, about improving Whitehall procurement processes.

Launching the reforms, Chief Secretary to the Treasury, Alan Milburn, said that Partnerships UK would provide the public sector with the key commercial skills to forge more and better partnerships with the private sector on equal terms.

The Government’s reforms to the Private Finance Initiative have already produced £4 billion worth of signed deals in services such as hospitals, schools and transport but Ministers want to push the initiative forward to help deliver the Government’s modernisation programme for public services.

Ministers also want to avoid a repeat of some of the problems they have inherited in large PFI computer deals where a lack of expertise in the public sector has led to contracts being signed without a proper assessment of risk.

Partnerships UK will act as a project manager for PFI deals, providing public sector organisations – from Whitehall departments to local education authorities – with expert advisory and implementation skills.

The new organisation follows the recommendations made by Sir Malcolm Bates in his second report on the PFI.

His first report in June 1997 resulted in the creation inside the Treasury of a PFI Taskforce, drawn from the City, to help build up PFI expertise in government. The Taskforce’s two year life is now drawing to a close and Sir Malcolm has now recommended that a permanent organisation be formed to replace it.

The ground breaking Partnerships UK will itself be formed as a partnership, with the private sector taking a majority stake in a joint venture with central government and with a Board Chairman drawn from the private sector.

Public sector bodies thinking of entering into PFI deals will be able to use Partnerships UK on a voluntary basis. It will have no monopoly and will seek to win business on the strength of its expertise.

Partnerships UK will not operate as a bank. Instead, as recommended by Sir Malcolm Bates it will be able to provide development funding to get PFI deals off the ground, where existing forms of private finance are not available. In these cases it will, where necessary, provide a range of financial products, tailored to the needs of public sector bodies in the early stages of the procurement process, which enhance, rather than undermine, existing flows of private finance.

Partnerships UK will be one of two new organisations formed as a result of the Bates and Gershon reports.Mr Gershon recommended that a new Office of Government Commerce should also be formed to maximise the Government’s buying power.

The public sector is the largest buyer of goods and services in the country but Mr Gershon found that procurement activity was too fragmented with 180 departments and agencies having separate dealings often with the same supplier.

The new Office of Government Commerce will aim to maximise the Government’s buying power in the case of routine items while bringing scarce professional expertise to bear on major capital projects. It will deliver over £1 billion of efficiency savings over the next three years while cutting project delays and overruns. It will be overseen by the Chief Secretary to the Treasury.

Speaking today Alan Milburn said:

“Sir Malcolm Bates and Peter Gershon have done an excellent job. We are actioning all of their recommendations.

The changes we are announcing today will mean more value for money in Whitehall and more investment in front line services.

The Government is modernising how we do business to provide a better deal for taxpayers and public service users alike.

Partnerships UK will provide the public sector with the expertise of the private sector. It is the final piece of the jigsaw in the modernisation of PFI that we promised in our manifesto.

We have turned the PFI around. Ending universal testing, providing certainty through new accounting treatment, offering staff a fairer deal and standardising contracts have reformed the PFI. In place of public versus private we now have public and private in partnership.

The challenge now is to use the new PFI to help drive forward the Government’s modernisation programme of our public services. We want to expand the PFI especially in sectors where it has not worked before.

Partnerships UK will help deliver that. It will help get more PFI deals done more quickly. And by enlisting private sector skills it will get the public sector better value for money deals. It will have world class project management skills to help deliver world class public services.”

Cabinet Office Minister Peter Kilfoyle said:

“I very much welcome Peter Gershon’s report and the creation of a stronger centre through the Office of Government Commerce. This new body will enable Government commercial relations to contribute fully to the modernising agenda and to improve service delivery. I am pleased that the transfer of three Cabinet Office agencies to OGC – CCTA, PACE and TBA – will enable them to play a more significant role in Government commerce.”

The press release issued by HM Treasury on 16 July 1999.

Taxpayers stand to benefit from savings agreed in the European Union’s draft budget for 2000, Economic Secretary to the Treasury, Patricia Hewitt, said today.

EU Finance Ministers meeting to establish the draft EU budget for 2000 agreed to reduce commitments by 4.7 per cent on the 1999 budget and increase payments by 2.8 per cent.

Welcoming the decision, Patricia Hewitt, said:

“Today’s decision is good news for the UK taxpayer and good news for the EU as a whole – it sends a clear signal that the EU takes budget discipline seriously.

“We have long argued that European expenditure must not be exempt from the same rigorous approach we apply to national expenditure. That’s why we are pleased that the EU is demonstrating that when it sets spending plans it keeps to them. This is critical if we are to build on the discipline we have inserted in the budget in recent years and in the new financial perspective agreed at Berlin.”

The press release issued by HM Treasury on 16 July 1999.

The reconstruction effort for Kosovo was given a massive boost today by EU Finance Ministers, including UK Economic Secretary to the Treasury, Patricia Hewitt, at a meeting in Brussels today.

The Budget Council agreed to set aside 500 million euros in the draft 2000 EU budget from which the EU’s contribution to the reconstruction effort can be funded.

Welcoming the decisions, Patricia Hewitt said:

“We strongly support the important decision made today to set aside 500 million euros in order to finance measures that will help rebuild Kosovo.

“The international community rightly expects the EU to play an important role in the rebuilding process, and today we have taken a major step forward in ensuring this is possible.

“However, the prioritisation of Kosovo within the EU budget does not mean that the EU is reducing its commitment to other regions. We have long argued that the EU can and should use its existing resources more effectively. That’s why I particularly welcome today’s decision to set aside funding for Kosovo from within the EU’s budget ceilings.”

The draft budget will now be forwarded to the European Parliament for its first reading.

The press release issued by HM Treasury on 9 July 1999.

Greater commercial freedom for the Royal Mint, making best use of new opportunities to expand its business into new areas and developing partnerships with the private sector, were announced by Economic Secretary Patricia Hewitt today.

Ms Hewitt said:

“More commercial freedom, to win more business : that is what we promised for the Royal Mint and that is what we have delivered.

“This is a bold step forward in the Government’s approach to managing its agencies. These measures – including steps to bring corporate governance and financial reporting more closely into line with best commercial practice – will enable the Royal Mint to update the way it is run in today’s modern commercial and business world and make it fit for the twenty first century

“The new framework will make the Treasury a better shareholder and the Royal Mint a better enterprise. It will also ensure that the Royal Mint makes the best possible use of the opportunities it faces. That includes the ability to offer an extended range of goods and services and to make fuller use of its expertise and capacity.”

The new framework includes provision for :

• a new Treasury panel of top private sector analysts and managers to provide more rigorous shareholder discipline and inject greater private sector expertise into the Treasury’s oversight of the Royal Mint as shareholder;
• a better defined role for non-executive directors of the Royal Mint, who, like the directors of private companies, will in future have a clear responsibility to enhance the prosperity of the business over time;
• bringing the Royal Mint board more closely into line with best private sector practice, in particular by bringing the number of executives and non-executives into more even balance;
• financial reporting that is more closely aligned with that of private companies, making it more easily understood by customers, potential partners and analysts;
• the expertise of the panel to be used to improve and sharpen the incentives on the Royal Mint, with the aim of making its decision making more transparent, and more commercial.

These changes complement a relaxation of controls which have previously restricted the Royal Mint’s activities. At present, the Royal Mint can only make coins and medals. In future it will be free to exploit its technical skills and assets by offering a wider range of products, such as jewellery, and expanding into non-coinage business, where it is commercially viable. It will also be able to participate in a wider range of ventures with the private sector. These changes will enable the Royal Mint to reach its full potential, on its own or in partnership with private sector firms.

Ms Hewitt added :

“The package is essential to the running of a good, modern forward-looking business. The Royal Mint has a successful track record. In recent years it has delivered ever-improving efficiency to the benefit of UK taxpayers, and has seen its business grow internationally, making it a world leader we can all be proud of.

“Today we have taken a first important step in laying the foundations for the Royal Mint’s future prosperity to the benefit of all stakeholders which marks the start of an ongoing process of improvement and development. The world coinage market is increasingly competitive, marked by constant innovation. The Royal Mint must be ahead and stay ahead of the game if it is to thrive. We cannot stand still if we want to maintain its position at the forefront in the global marketplace.”

The announcement follows a detailed review of a range of possible options for developing the Royal Mint. The review was wide ranging with the aim of identifying the actions needed to position the Royal Mint for closer partnership with the private sector.

The press release issued by HM Treasury on 2 July 1999.

Lord Trotman to Review Measures to Help the Small Business Sector

A review of the measures to support SMEs and entrepreneurs and what further incentives could help a thriving small business sector in Britain has been announced today by the Chancellor Gordon Brown.

Lord Trotman, former Chairman and Chief Executive of the Ford Motor Company, will undertake the review. It will look at the measures taken so far to support small and medium sized enterprises (SMEs), covering both tax and public sending programmes.

The Chancellor said:

“The Government places great store by creating the right environment in which enterprises can invest, raise finance and grow. Supporting a thriving business sector which can compete and innovate is one important component of the Government’s drive to improve UK productivity.”

Lord Trotman has been asked to look at the impact of existing policies and what other measures could be developed. This will involve liaison with officials from HM Treasury, Department of Trade and Industry and Inland Revenue. He will report to the Chancellor with interim findings by the end of December 1999 to inform the March 2000 Budget.

The press release issued by HM Treasury on 27 August 1999.

Proposals for increasing the commercial exploitation of science conducted in Government laboratories are at the forefront of an independent report published today by the Government.

“Creating Knowledge, Creating Wealth” by John Baker of Medeva plc calls for commercial exploitation to be given a much higher profile in the Government’s research establishments, but points out that industry also needs to take a closer interest in the commercial opportunities in Government laboratories.

Its key recommendations include:

– overcoming the Whitehall risk avoidance culture that inhibits entrepreneurial behaviour;
– giving Government laboratories greater financial and management freedoms;
– reforming civil service conduct rules so as to reward scientists for exploiting their work.

Financial Secretary Stephen Timms said:

“It is vital that the money we spend in Government laboratories creates not only new knowledge but also jobs and prosperity for Britain.

“We need to foster a more entrepreneurial spirit, building on the excellent work that is already going on in some of the laboratories.

“A useful start has already been made with the financial incentives the Treasury has given to Departments in its ‘Wider Markets’ guidance, but there is more to be done. I am grateful to John Baker for pointing the way forward in his report.”

Science Minister Lord Sainsbury said:

“John Baker’s excellent report will add much to our efforts to maximise the value that this country gets from our science base. I believe that innovation has to be the bedrock for the modern UK economy and that the scientific research done in Government laboratories has a great deal to contribute. He has recognised the importance of the knowledge transfer task.

“This is not about making money for the government but about maximising the contribution to the nation’s jobs, prosperity and quality of life, without compromising the vital independent advice that these laboratories provide.

“These laboratories and the scientists who work in them are an important resource for Government. We recognise that to get the most out of this resource we have to be clear about our objectives and give appropriate incentives. These are all factors that we will take into account in considering our detailed response to this report.”

John Baker, producer of the report said:

“I am delighted to have helped the Government identify ways of increasing the exploitation of research carried out in its laboratories . I saw much good practice during my study, but more could be done. Above all, Government has to recognise that commercialising research is not a risk-free business.

“If it wants to see the successes in terms of greater prosperity and quality of life – it needs a more mature attitude to risk-taking which tolerates the inevitable failures. That means the rules have to be changed – and be seen to change – so that laboratories and their scientists can manage risks and also be allowed to reap the rewards.”

Public sector research establishments spend £2.2 billion a year on research for the Government, but the report says that they need to do more to turn their research discoveries into wealth creating products. It argues that fear of criticism by the National Audit Office and the Public Accounts committee inhibits commercialisation, and the civil service management code prevents many Government scientists from making money out of their inventions, even though society and the economy would benefit too.

The Government will publish a detailed response to the Baker report in the autumn.

The press release issued by HM Treasury on 18 August 1999.

Listening to views and concerns on the design of the climate change levy is high on Stephen Timms’ agenda in his new role as Financial Secretary to the Treasury.

At his first official meeting in his new role, Mr Timms met representatives from the Confederation of British Industry to listen to their views and concerns on the climate change levy, which is due to be introduced in 2001.

Commenting after today’s meeting, Mr Timms said:

“I was delighted to meet the CBI today and discuss the important issue of the climate change levy.

“There are a number of outstanding design issues relating to the levy, which is why I have been very keen to meet representatives of industry at the earliest possible opportunity.

“I am confident that, by working with industry, we can design the levy in a way that maximises its environmental effectiveness whilst protecting the competitiveness of British firms.

“I look forward to continuing this useful and constructive dialogue with business representatives.”