Tag: Treasury

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

A package of measures to help entrepreneurs succeed in deprived areas was set out today by the Chancellor Gordon Brown and the Financial Secretary Stephen Timms.

The package is designed to ensure that enterprise is opened up to everyone in the UK. However, it is clear that many entrepreneurs in deprived areas have been barred from access to finance, support and advice.

To ensure that entrepreneurs from deprived areas have access to the managerial and business training they need to succeed, Stephen Timms set out details of a new management scholarship. The details are:

• the scholarships will be aimed specifically at entrepreneurs from deprived areas;
• initially, up to 200 scholarships will be available;
• allow budding entrepreneurs access to top class business and management education to equip them with the skills needed to turn their ideas into thriving businesses;
• in partnership with business, the Government plans to offer up to £20,000 of start-up funding to the most promising scholars (the top 10-20) to get their businesses off to a flying start.

Commenting on the scholarships Mr Timms said:

“People in deprived areas have the ideas and business acumen to succeed but they are deprived of the opportunity to put them into practice. The Government wants to ensure enterprise is open to all.

“This will ensure that Britain benefits fully from the entrepreneurial potential of people and businesses whatever their background and wherever they are.”

This is only one of the measures announced in the Pre-Budget report that aim to open up enterprise to all.

Speaking later tonight at the Young Entrepreneur of the Year Awards Dinner, the Chancellor will say:

“We want to ensure that young people receive positive messages about enterprise throughout their education and acquire more entrepreneurial skills.”

Commenting on the scholarships scheme Richard Branson said:

“Entrepreneurs are the drivers of innovation and the providers of future wealth and employment. We must do all we can to support them, so I welcome these new scholarships. They will give the management and business training people need to turn their ideas into reality.”

Professor Andrew Lock – Chairman of the association of Business Schools and the Business Schools Small Firms Advisory Group, Pro-Vice Chancellor of Manchester Metropolitan University also welcomed the intention to establish these scholarships:

“The commitment to help entrepreneurs is essential if we are to support these individuals in achieving their business aims. I and other members of the Business Schools Small Firms Advisory group, look forward to working with the Government in developing these scholarships, which we feel will be a significant step in providing entrepreneurs with the skills they need to succeed.”

Other measures involve schools and businesses developing a new enterprise culture among young people. This includes a £10 million package of measures starting nest year which include:

• £5 million to improve the network which brings school and businesses together;
• £3 million to improve that quality of work experience for 14-15 year olds and the quality of teacher placements in business; and
• £2 million to help double the number of young people involved in enterprise programmes such as Young Enterprise and Understanding Industry to around 200,000 by summer 2001.

At the dinner the Chancellor also set out measures to encourage businesses from deprived areas to succeed. These will include a £30 million programme – the Phoenix Fund – which will promote better access to advice, support and finance for businesses in deprived areas. The Fund will involve:

• a new Development Fund to promote innovative ways of supporting enterprise in deprived areas such as business incubator units; and
• funding for local finance intermediaries to provide micro-finance for enterprises. These organisations act as intermediaries between mainstream finance and entrepreneurs in deprived areas.
• A national network of mentors is also to be established to give help, encouragement and face to face contact to entrepreneurs.

The Chancellor will also say:

“To encourage new businesses, it is essential we harness the talents of all our citizens. We are determined to ensure that there are more and new successful businesses in our least well-off communities.”

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

The UK’s continuing commitment to promoting economic reform in all areas of the economy and to ensuring the reforms benefit consumers through more choice, better quality and lower prices was set out today in a joint report from the Chancellor Gordon Brown and Minister for Energy and Competitiveness in Europe Helen Liddell.

The Progress Report on Product, Services and Capital Markets sets out four main aims for reform. These are:

• strengthening competition;
• encouraging enterprise and innovation;
• improving conditions for investment; and
• enhancing public sector productivity.

Gordon Brown said:

“The UK has a clear strategy to tackle the productivity gap with our main competitors and address long-standing weaknesses in the UK economy. The aim is to create a strong and productive economy with high and stable rates of growth and employment, both of which are vital for raising living standards.”

Helen Liddell said:

“This report shows the value of our economic reform agenda. The reforms to our product, service and capital markets are designed to promote more competitive, innovative, open and flexible markets which enable firms to grow and deliver a better deal for the consumer. It is about lower prices and better products and services.”

The report provides a further update on specific examples of UK policies where reform is in progress. These include:

• the new Competition Act – which will mean tougher action on firms engaging in anti-competitive practices so as to stimulate competitive markets and so bring benefits to consumers and businesses;
• the energy market – where liberalisation is delivering price cuts to consumers and businesses, and regulation is being reformed to focus on the needs of the consumer, to promote competition and to improve transparency and accountability;
• electronic commerce – where the Government aims to give everyone the chance to make the best use of the Internet;
• R&D – where the Government is introducing a new tax relief to encourage investment;
• financial services – where on-going reform will improve the regulatory system and protect investors whilst taking account of market developments and competitive concerns; and
• venture capital – where the Government is introducing a new Enterprise Fund.

The Progress Report, produced annually by Member States at the request of the Cardiff European Council, provides an update on action to reform product, services and capital markets to strengthen competition, encourage enterprise, innovation and investment, enhance public sector productivity, and to ensure reforms benefit consumers through more choice, better quality and lower prices. In line with the procedure agreed at Cardiff during the UK Presidency, it highlights areas of best practice as well as those areas where the UK can learn from others.

The press release issued by HM Treasury on 1 December 1999.

Joint action to tackle the problems of poverty and improve the economy were announced by the Chancellor Gordon Brown, Scotland’s First Minister Donald Dewar and Scottish Secretary John Reid.

Three Joint Action Committees (JAC) will be established under the Memorandum of Understanding, which provides for the establishment of a Joint Ministerial Committee (JMC) and Sub Committees.

The JMC was set up specifically to consider non-devolved matters which impinge on devolved matters and devolved matters which impinge on non-devolved responsibilities.

The mechanism is being triggered today to set up three JACs which will cover the areas of:

• pensioner poverty;
• child poverty; and
• the Knowledge economy.

The Chancellor said:

“The delivery of devolution has dealt with the democratic deficit. We must now turn to the real economic and social issues where the case for joint action is overwhelming.

“The only way we can tackle the problems of poverty and unemployment successfully is by joint action.”

The Secretary of State for Scotland has responsibility for ensuring effective working relations between the Government and the Scottish Executive and for promoting the devolution settlement.  He said:

“The devolution settlement was not just a Constitutional exercise, but was always intended to make real improvements to people’s lives. We are determined to attack poverty and promote the knowledge economy with every means at our disposal. This can only be achieved by the UK Government and Scottish Executive working in partnership to deliver the policies that will bring real benefits to the people of Scotland.”

The First Minister, Donald Dewar said:

“Only by working through this new constitutional framework can we best deliver for the people of Scotland. The Joint Action Committees will give the Scottish Executive and the Scottish Parliament greater responsibility for the allocation and coordination of resources and the delivery of services that are vital for the future of Scotland.”

The speech made by Gordon Brown, the then Chancellor of the Exchequer, at Davos, Switzerland, on 29 January 1999.

This morning I want to suggest that economic progress in 1999 and 2000 depends on us learning the right and not the wrong lessons from Mexico 1994, Asia 1997, Russia 1998 and Brazil 1999.

In other words there should be no retreat from global markets even as world growth has halved.

There should be no retreat into protectionism even under the provocation of trade balances worsening by $20 billion.

And there should be no repeat of the inadequate risk management, less than responsible lending and inefficient allocation of capital that gave us, even in countries pursuing good policies, emerging market spreads that swung to 1700 basis points from an equally unsustainable 200 basis points in a matter of days.

Economic progress depends therefore on first an unwavering commitment to open markets and world trade liberalisation, with an early start to the new world trade organisation talks.

Second, with America and now Europe as engines of growth, continuing the coordinated approach to growth-oriented policies begun among the leading countries in October 1998.

Third, making the macroeconomic measures work, both within firms and within economies, by proper systems of risk management and supervision and regulation.

And finally, because it should never be said of the world community, as it was said of a British politician, that “he never failed to miss a change to let slip an opportunity”, seize the opportunity to press ahead with implementing the programme of international economic reform agreed last year.

I believe we are agreed on four major changes:

First, that we should implement codes of conduct on monetary, fiscal and corporate standards as an entry requirement for the international financial system, and we should do so by April, when the IMF and world bank meetings take place; And this matters not only for Asia, exposed for lack of transparency; for Brazil, seeking a credible policy; even for Nigeria now starting again; and also for Europe with monetary and fiscal policy.

Second, recognising we have a global not just national financial system, that we should have a global framework for national and international regulators, to conduct regular surveillance of our world financial system and be its early warning system, and that we should have this in place by summer;

Third, we should develop new crisis prevention mechanisms, based on rights and responsibilities, with the private sector fully involved in country investor networks; and we should make the decision in principle by the summer and have intensive discussions to reach conclusions by the end of the year. Finally there should be a new strengthening of our international institutions and that should include the new social code of conduct that sets minimum standards for tackling unemployment, ill health, poor education, a necessary means to build trust and support for economic reform.

So in a world that has seen in the last year Russia default, Indonesia undergo revolution, Japan nationalise some of its banks and Hong Kong buy public stakes in private companies, we must not be so complacent or attempt to rebuild the present in the image of the past when the challenge is to map out a new future.

That future must involve burden-sharing – America with its strong economy embracing open markets; Europe with a stable euro sustaining growth and engaging in structural reform to tackle unemployment; Japan with its critical regional role reviving growth and reforming its banking system; and all of us playing our full part by proceeding with economic reform. 1998 was a year of challenge when we decided on economic reform. 1999 must be the year of implementation.

The press release issued by HM Treasury on 28 January 1999.

Economic Secretary Patricia Hewitt will visit India next week to promote business and financial links between the UK and India, and to discuss international financial developments. Accompanied by a team of UK business people, she will meet government representatives and leading figures from the business and financial community.

Looking forward to her visit, Ms Hewitt said :

“The economic, cultural and political connections between Britain and India go back hundreds of years. Today we are building a new partnership, made even closer by the increasingly successful Indian communities in Britain, which contribute so much to this country’s vibrant, multi-cultural society while retaining their ties of family, religion and trade with India.

“As a Member of Parliament in Leicester – where half of our young people are from the Asian and Afro-Caribbean communities – I am particularly pleased to play a role in developing ever closer ties between our Governments and our community, financial and business leaders.

“My visit to India will enable me to see first hand how businesses at the other end of this impressive global trading link are developing and thriving, particularly in financial services. I hope that, in joining Government and business representatives from the UK and India together in a constructive debate, I will help take this vital business agenda forward.” Speaking to the Confederation of Indian Business in New Delhi, Ms Hewitt will highlight the agenda for international financial reform that the UK government is pursuing with its international partners, and stress the importance of continued economic and financial reform at both a national and international level:

“Today’s global economy brings us great opportunities but also great challenges. No one country can be insulated from events in the rest of the world. National policy makers must set clear long-term policy objectives that build confidence and credibility.”

At a seminar on “London and the euro”, hosted by the British High Commission and the Indo-British Business Committee in Mumbai, Ms Hewitt will set out UK policy on the single currency and highlight the City of London’s continuing position as a major international financial centre:

“The City of London is a top world financial centre and remains the best place in the European time zone for doing business in euros. I am sure businesses in India and elsewhere in Asia recognise this, and will carrying on using the superb services it provides to our continuing mutual benefit.”

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

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

Speaking at the eighth in a series of joint national Productivity Roadshows, held at the Department of Mechanical Engineering, Leeds University, 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. We have made a start, as shown by the fact that there are now 76,000 more jobs and nearly 15,000 people on the New Deal in the Yorkshire and Humberside area since the election. However, the productivity 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. I want today to look particularly at education and skills. The values of innovation and scientific expertise are well established here at the School of Mechanical Engineering but if we are to improve our productivity overall we require a skills revolution throughout the country. The successful modern economy is one based on information and knowledge.

That is why the Government has made investment in education our number one priority. Over the next three years we will be investing an additional 19 billion Pounds in education to deliver major improvements in literacy, numeracy, teaching standards and qualifications. And we are expanding the number of students in higher and further education by more than 500,000 by 2002. We are also looking in the Budget to offer tax relief to finance staff secondments from private sector companies to educational establishments, since as we signalled in the Pre-Budget Report, we are looking to see what more can be done to move the worlds of business and education closer together.”

The press release issued by HM Treasury on 26 January 1999.

The new Working Families Tax Credit (WFTC) will guarantee the lowest paid families a full-time income of around 10,000 Pounds a year, announced Paymaster General Dawn Primarolo today, easing both the poverty and unemployment trap.

The WFTC, which replaces Family Credit from October this year, will:

– benefit 1.3 million families;

– guarantee a full-time income of more than 190 Pounds per week;

– ensure, with a new childcare tax credit, that no family is denied the opportunity to work by being unable to access affordable quality childcare;

– help parents – whether lone parents or couples – with up to 70% of their childcare costs, up to a maximum of 100 Pounds a week for one child, and costs of 150 Pounds for two or more in eligible childcare.

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.”