Tag: Treasury

The press release issued by HM Treasury on 25 January 1999.

Don Cruickshank today launched his review of UK banking services with a consultation paper setting out the approach the review will take. It asks a number of questions about the scope of the review on which he would welcome early views.

These will help focus the substantive work of the competition analysis of economic markets which forms the core of the review, alongside the views of the banking sector, consumer groups and other interested parties.

Announcing the consultation, Mr Cruickshank said:

“Customers are best served by competitive markets operating  in a strong, stable macroeconomic environment. The core of  the review will be a thorough competition analysis of the economic markets in which banks operate. This is underway.

“There are no predetermined answers, but there are a number of  issues of obvious interest which we shall be looking at. Some warrant investigation without waiting for the outcome of the analysis. These include credit for small businesses, money transmission systems and credit cards.

“The consultation document is quite technical. It may not appear at first sight as a rallying cry to address the things consumers have said they are concerned about: overcharging, poor service, and failure to understand the  needs of small businesses. But alleged failings like these can only be addressed by first understanding the competitive structure of the industry.

“I look forward to responses to the consultation document and a continuing dialogue as work progresses. To get the widest and fastest possible exchange of views, I am pleased to announce that we have set up an internet website where research results and the views of respondents, unless confidential or dealing with individual cases, can be seen and commented on as the review progresses. “

The terms of reference of the review are to:

• examine the banking sector in the UK, excluding investment banking;
• examine the levels of innovation, competition and efficiency in various sub-markets, including SMEs;
• look at how these levels compare with international standards;
• consider whether there are options for change which the industry or Government should consider.

The review proposes to focus on the services provided by the banking sector rather than the institutions or the specific products they offer. As well as banking services themselves, the review also proposes to consider the relationship between these and the economic cycle, and the potential impact of the single currency and the single market in financial services.

There are also issues being addressed elsewhere which lie outside the remit of the review, but which it will take into account and may in turn inform. These include consumer information and redress,  and financial aspects of social exclusion.

Don Cruickshank’s final report is expected to be available for the Government to consider towards the end of the year.

The press release issued by HM Treasury on 25 January 1999.

Modern apprenticeships in Wales are set to rise by fifty per cent to 14,000 over the next three years, creating a winning workforce for Wales, announced Chancellor Gordon Brown today.

Speaking in Bridgend at the seventh Productivity Challenge Roadshow with Secretary of State for Wales Alun Michael, the Chancellor said:

“The productivity challenge we face is not simply about working harder, but working better. We must recognise the importance of expanding and improving our skills base, and the crucial role education has to play. That is why modern traineeships and apprenticeships are vital to Britain winning the skills race of the future. Not only do they provide a first class vocational route, but they are popular with both employers and young people.

“That is why I am announcing today our planned expansion of modern apprenticeships in Wales, giving more young people choice and opportunity and providing employers with a pool of potential. We are keen to extend apprenticeships into small and medium sized businesses – and particularly anxious to see women as well as men benefit from the new apprenticeships. Wales will benefit this year from 9,000 apprenticeships, rising to 14,000 by 2002. In the UK this year, we will have 150,000 rising to 200,000 over the next four years.”

The Chancellor set out the proposals already in hand to tackle the productivity gap, and stressed the importance of encouraging entrepreneurship and enterprise.

“We all – Government and business – have a role to play in encouraging risk taking and high-growth business. I therefore want every Government department to be obliged to encourage enterprise and entrepreneurs. We will give support for a national campaign for enterprise, to be led by the British Chamber of Commerce. And we also want to look at ways of removing the stigma associated with business failure, improving the help given to start-ups, and changing our insolvency laws to give businesses in difficulties a better chance of turning around.

“But raising our productivity starts in the classroom, not the boardroom, and the additional 19 billion Pounds we are investing throughout the UK will help to radically improve standards in our schools. Already we have started to cut the numbers leaving school early without qualifications, and increased by 500,000 the places in colleges and universities.

“Taken together with my announcement today, Britain is on its way to winning the skills race for the future.”

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

The Government’s approach to tackling the productivity challenge was outlined today in Manchester by the new Chief Secretary Alan Milburn.

Speaking at the sixth in a series of joint national Productivity Roadshows, held at Manchester International Airport, he said:

“The Government is committed to seeing all the regions and nations of the UK sharing in sustainable economic prosperity. My presence here today is part of the Government’s commitment to consultation with businesses and local communities about how best we can achieve that.

The challenge we face as a country is serious. Our productivity is way behind that of our competitors. Success requires a long-term approach, a range of initiatives and policies to address the problems holding us back; – long-term economic stability – more and better investment – a skills revolution – a strong small business sector – investment in science, turning inventions into products and jobs – modern public services, with new standards, targets and disciplines The prize for us all is a Britain more equipped for the challenges ahead, ready to ensure greater employment opportunity and prosperity for our people in the years ahead.”

Mr Milburn was joined at the roadshow by Minister for Energy and Industry John Battle and Minister for the Regions Richard Caborn.

Mr Battle said: “One key issue facing Britain is how we rise to the challenge of global competition. The Competitiveness White Paper has set out this Government’s ambitious agenda. One that encourages enterprise, innovation, new ideas and processes. It is for business to create prosperity. The Government’s role is to create the right climate for business success. That is what we are doing.

To create a Britain fit to compete in the future it is vital that we make sure the voice of business is heard in Whitehall. That is why events like today are so important.”

Mr Caborn said:

“A key factor in increasing the nation’s productivity is to improve the competitiveness of the regions. That is the job of the eight new Regional Development Agencies (RDAs) in England that we have set up. They will be responsible for developing strategies for economic decision making at the regional level. They will be the building blocks of a prosperous economy.”

The press release issued by HM Treasury on 20 January 1999.

John Kingman, currently head of the Treasury’s Productivity Team, has been appointed as head of Communications and Strategy. His responsibilities will cover management of the Treasury’s existing Communications Team. He will also have a new responsibility for helping to manage the interaction of policy and presentation work. He will attend policy discussions of the Treasury’s Management Board.

John succeeds Peter Curwen who, after nearly three years as Head and formerly Deputy Head of Communications, has decided to return to the policy side of the Treasury to set up a new team in the Budget and Public Finances Directorate on EU and international taxation issues.

In due course a new special adviser will be appointed, who will have a range of policy and political responsibilities.

Notes for Editors

1.  John Kingman rejoined the Treasury last year after a spell in the private sector, first on the Financial Times “Lex” Column and then in Sir John Browne’s office at BP. His civil service posts have included working on transport policy and public sector pay, as well as being Private Secretary to the Rt Hon Stephen Dorrell MP, both when he was Financial Secretary to the Treasury and when he was Secretary of State for National Heritage. Since returning to the Treasury, John has been Head of the Productivity Team.

2.   As now, each Treasury Minister will have a press officer dealing with the issues for which they are responsible and for their day-to-day relations with the press. Steve Bird, who will remain as Deputy Head of the Team, will continue as press officer for the Chief Secretary. Treasury press officer Fiona Hamilton will fulfil this role for the Chancellor; Helen Etheridge for the Paymaster General; Malcolm Graves for the Financial Secretary; and Charles Keseru for the Economic Secretary.

The press release issued by HM Treasury on 19 January 1999.

New measures to ensure that the new financial services regulatory regime is open and accountable have been announced today by the Economic Secretary, Patricia Hewitt.

The measures follow responses to the consultation on the draft Financial Services and Markets Bill which will establish the Financial Services Authority (the FSA) as the single financial regulator. They are:

• the Treasury will have the power to commission an independent report, at periodic intervals, into the efficiency and economy of the FSA’s operations;
• the bill will require a majority of the FSA Board members to be non-executives;
• the FSA will be required to maintain consumer and practitioner panels. The panels will have a role in assessing the performance of the FSA against its statutory objectives;
• the FSA will be required to hold an annual public meeting to discuss its annual report. The Treasury will also be discussing with the FSA an agreed list, to be published in due course, of contents of the annual report; and
• the FSA will be required to consult upon its arrangements for independent investigation of complaints made against it. As well as being able to report publicly on his investigations, the investigator will also have the power to publish the FSA’s responses to his recommendations.

There will also be new safeguards in the bill covering the FSA’s rule-making processes. These will mean:

• the FSA will have to include an explanatory memorandum when proposing new rules or changes to existing rules setting out the purpose of the proposals and their compatibility with the regulatory objectives;
• when the final rule change is published the FSA will be required to publish a statement of any alterations from the original proposal and to issue a revised version of the cost-benefit analysis.

Announcing the measures Ms Hewitt said:

“There is widespread support for our determination to ensure that the FSA continues to operate in a fair, open and accountable manner.

“These measures will build on the accountability framework in the draft Bill. The framework will ensure that the FSA is properly accountable to Ministers and Parliament, and to practitioners and consumers.”

The press release issued by HM Treasury on 14 January 1999.

Over 350,000 people, who suffered a loss because of  personal pensions mis-selling, have now accepted offers of compensation. This telling response to the Government’s support for the priority pensions review was today reported by the Economic Secretary Patricia Hewitt.

Welcoming the latest figures for firms monitored by the Treasury, Ms Hewitt said:

“It is good news that I can today report significant progress in the review of priority cases. When we took office, more than two years after the review began, the firms with most cases had completed only 15%. The latest figures show them reaching 94%.

“Firms have now recognised that this Government is committed to seeing pensions mis-selling sorted out and the victims of mis-selling receiving the redress they are entitled to.”

Of the 21 firms whose results are published today:

• one has still to resolve 75 per cent of its cases; and
• 17 firms have now resolved over 90 per cent of their cases.

The time limit for completion of the priority review, set by the Personal Investment Authority (PIA), has now expired for 19 more firms. By 31 December 1998 all firms should have completed their priority reviews. Consistent with the treatment of the 20 firms already removed from the Treasury’s monthly list, the Minister said that the others will be removed if, in the PIA’s assessment, they have met their targets.

The Minister warned firms that she would be closely monitoring progress in phase 2 of the review.  She added:

“Firms have eventually learned the lessons of phase 1 of the review. I expect the whole industry to carry forward recent progress into phase 2. The Government and the  regulators will no longer tolerate delay. Firms must adhere to the regulators’ timetable for completion of  phase 2. Only then will customers be able to regain confidence in the financial services industry.”

As the regulators’ advertising campaign for phase 2 of the pension review gets underway, Ms Hewitt encouraged younger people to take the opportunity of finding out whether they might be due redress for mis-selling.

Up to 1.8 million people may need to have their cases reviewed in phase 2. FSA has instructed firms to write to all customers who might have been mis-sold a pension by the end of April. The Minister urged anyone who receives a letter from their pension firm to read it carefully and complete the form. She said:

“Consumers have their part to play in the review. If you receive a mailing from your firm with ‘R U Owed?’ on the envelope, read it carefully. If you think you are affected, send the requested information back to the firm.

“Investors who were badly advised and lost out as a result could be owed as much as 4,000 Pounds or more. That is worth the time to sit down and work out whether your case should be reviewed. As the adverts say – ‘Mis-sold a pension? – They O U’.”

The press release issued by HM Treasury on 13 January 1999.

Decent childcare at an affordable price for those families who wish to work should be a right, not a privilege, said the new Paymaster General Dawn Primarolo today, as she outlined the Government’s balanced approach to helping families in home and at work.

The Paymaster was discussing the childcare tax credit – part of the new Working Families Tax Credit (WFTC) and Disabled Person’s Tax Credit (DPTC) – which will help with childcare Costs for children up to ages of 15 and 16.

“The WFTC is very good news for about one and a quarter million families on low to middle incomes who are likely to qualify for it.  A major obstacle faced by many parents with young children who want to return to work – whether they are lone parents or a couple – is the cost of childcare.  A radical  new feature of the WFTC – the childcare tax credit – is designed to help remove this obstacle.  Choosing to stay at home with children is of course a right that many parents enjoy, and those with a working partner can also get support with WFTC.

“The childcare tax credit will also help families with older children. In line with our National Childcare Strategy, parents will be able to get help with childcare costs up to the September following the child’s 15th birthday. For disabled children the childcare tax credit can be claimed until the child’s 16th birthday.

“The childcare tax credit is more generous than the childcare disregard in Family Credit, which the childcare tax credit replaces – it means that working parents will be able to get up to 105 Pounds per week towards their childcare costs. And,  unlike the disregard, it will benefit working families across a wide range of incomes, including those on the lowest incomes.

“Of course we have also to make sure that the help that we give supports our commitment in the National Childcare Strategy to promoting quality childcare.  The current benefit rules for eligible childcare – upon which we are building – already enable families to use registered childminders and registered nurseries.  But the world has  moved on and we recognise that childcare like this may not appropriately fill the needs of all the children of working families who can receive tax credits.

“So the Government is looking at all the types of childcare provided currently, their quality assurance and whether the types of eligible childcare for the childcare tax credit could be extended.  We are looking particularly at care provided for children between 11 and 14 – who are beyond the age covered by most of the current regulatory arrangements – and at care provided for disabled children where there may be special care needs.”

The press release issued by HM Treasury on 13 January 1999.

Gift Aid 2000, a major campaign to encourage regular donations – particularly by young givers – to charitable organisations working on education and anti-poverty projects in the world’s poorest countries, was announced by Economic Secretary Patricia Hewitt today.

Gift Aid 2000 will raise public awareness of the tax relief available under the Millennium Gift Aid (MGA) tax relief scheme, announced by the Chancellor in the March 1998 Budget, and provide a central contact point for donors wishing to give to eligible projects.

Gift Aid 2000 will achieve a high public profile through a 4 million Pounds advertising campaign to be launched in the spring. Mrs Hewitt also announced today that the Rainey Kelly Campbell Roalfe (RKCR) advertising agency has been appointed to handle the campaign.

Announcing Gift Aid 2000, Mrs Hewitt said :

“Gift Aid 2000 marks a major step forward in delivering the benefits of Millennium Gift Aid to projects designed to help improve education and tackle poverty in eighty of the  world’s poorest countries.

“It will ensure that the additional money provided by the Government to these projects through tax relief on donations of 100 Pounds or more made by the end of the year 2000 can be directed effectively to the charities doing so much to help to improve the quality of life and the prospects for development in these countries.”

Gift Aid 2000 will provide a central identity for the campaign to encourage donations to designated charitable projects, particularly among 18 to 34 year old potential donors, through a striking logo which will brand the Inland Revenue advertising campaign and which charities can use on their own messages to potential donors.

It will also provide a telephone contact point which will enable donors responding to the Inland Revenue campaign to make their donations and, where necessary, help them to identify particular projects or countries which they wish their donations to assist.

The campaign will begin in the spring, timed to enable givers wishing to give an affordable 5 Pounds per month donation to reach the MGA qualifying figure of 100 Pounds by the end of the qualifying period, 31 December 2000. It will include TV advertisements and national press inserts designed to appeal primarily to younger donors, but raising awareness of the MGA tax relief provisions among all potential donors.

Three advertising agencies (RKCR, DMB&B and Lowe Howard Spink) were invited to present their ideas in a pitch arranged for the Inland Revenue by the Central Office of Information (COI).

Alternative creative ideas from RKCR and DMB&B were put into research before the winning approach developed by RKCR was chosen after receiving the most positive responses. The three competing agencies were selected following advice from the Advisory Committee on Advertising (ACA).

The press release issued by HM Treasury on 12 January 1999.

People and organisations on Merseyside had the opportunity to tell Patricia Hewitt, the Economic Secretary to the Treasury, about the problems of lack of access to financial services and possible remedies to the problem.

The discussion, hosted by Speke Community Credit Union, is part of a series around the country organised by the Treasury. They have been organised to help inform the work of the Treasury’s two policy action teams which are looking at the problems of financial exclusion – one on lack of access to personal financial services e.g. bank accounts and the other on finance and support for small firms.

The aim of the discussions is to draw on the experience of local people on Merseyside, encourage discussion of financial services problems of people in deprived neighbourhoods and explore possible solutions.

Speaking at the forum in Liverpool the Minister said:

“This Government’s aim is to create a modern and decent society where there are no forgotten people. That is why tackling social exclusion is a top priority.

“Financial exclusion is both a symptom and cause of that social exclusion. People in our most deprived neighbourhoods get locked into a cash economy and, too often, financial services mean cheque cashing shops, the pawnshop and illegal loan sharks. This Government is not prepared to accept a society where economic opportunity is restricted in this fashion.

“And we also want to encourage enterprise in deprived neighbourhoods – this means better access to capital for small firms, including those starting up. Just because a  neighbourhood may be poor in its physical and economic standing does not mean that it cannot be rich in people with ideas and initiative to start up and run their own business.

“The seminar today is an opportunity for the people on Merseyside to tell the Government about the problems on the ground and how we can increase access to financial services.”

The main issues for discussion will be:

• small firm finance;
• small firm support and mentoring;
• financial education;
• access to bank accounts and other personal financial
  services; and
• credit union development.

The press release issued by HM Treasury on 21 December 2022.