Tag: Treasury

The press release issued by HM Treasury on 30 October 1997.

Financial Secretary Dawn Primarolo today called on charities to offer their ideas, from the largest and most radical to the smallest and most detailed, to the current Government review into the way they are taxed.

Speaking to the Charities Aid Foundation (CAF) annual conference in London, Ms Primarolo encouraged delegates to make their voices heard before 1 December and influence their future.

“This review is a unique opportunity for Government and charities to work together and take a fresh look at the way charities are taxed. Instigated by the Government in response to complexities with the existing system, the review aims to find a clearer and simpler path to fair tax treatment.

“All suggestions are welcome, not only the creative and radical, but also smaller scale suggestions aimed at making the existing system work better. The responses we have had already range from letters from pensioners who work in their local charity shop concerning VAT zero rating, to detailed discussions and analysis of taxation from charity pressure groups.

“The review will enable charities to influence their own future to produce a more coherent and consistent tax system. I urge all charities to make their voices heard.”

The press release issued by HM Treasury on 28 October 1997.

The Bank of England Bill establishes a new framework which will promote economic stability and give a long-term focus to monetary policy the Chief Secretary, Alistair Darling said today on publication of the Bill.

The main provisions of the Bill are the establishment of the Monetary Policy Committee and the transfer of banking supervision to the Financial Services Authority (FSA).

On the monetary policy provisions, Mr Darling said:

“The Bill introduces important changes to the Bank to ensure that it can act effectively and efficiently in its new role, and to promote a stronger financial system. Its publication marks another milestone in our determination to modernise Britain’s economy and create a modern Bank that can meet the new challenges of the 21st century.

“The new framework will promote economic stability and will give a long-term focus to monetary policy in support of the Government’s objectives for growth and employment.

“Low inflation means greater certainty for investors and savers, reduced costs and improved competitiveness.

“In the long run, price stability is the main contribution monetary policy can make to achieving sustained high growth and employment.”

Mr Darling also said transparency and accountability were important features of the new framework. He said:

“The new framework maximises openness and transparency and ensures that the Bank is fully accountable and that its conduct of monetary policy meets the economic needs of the nation.

“The Bank will conduct policy in an open and transparent manner and will be accountable to Parliament especially through enhanced scrutiny by the Treasury Select Committee.”

On the transfer of banking supervision, the Chief Secretary said:

“This is the first stage of a complete overhaul and modernisation of the supervision and regulation of the financial services sector. It will mean more effective and efficient regulation of financial services.

“The changing market of the 1990s and beyond makes it essential to bring regulation of banking, securities and insurance under one roof. This move will modernise our regulatory structure – creating a new regulator that will command the respect of markets here and throughout the world.”

The press release issued by HM Treasury on 28 October 1997.

The Bill, which establishes the Bank of England Monetary Policy Committee and transfers banking supervision from the Bank of England to the Financial Services Authority was published today.

The Bank of England Bill, gives effect to the policy changes announced by the Chancellor, Gordon Brown on 6 May when he announced a new framework for monetary policy and 20 May when the transfer of banking supervision was announced.

The main provisions are:

• setting out the monetary policy objectives of the Bank: to maintain price stability and, subject to that, to support the Government’s economic policy, including its objectives for growth and employment;
• establishing the Monetary Policy Committee, which will have responsibility within the Bank for formulating monetary policy. The Committee will comprise the Governor, his two deputies and six other members. Two of those members will be the Bank officials responsible for monetary policy analysis and monetary policy operations respectively. The remaining four will be appointed by the Chancellor for their knowledge and experience;
• giving the Bank statutory operational responsibility for  monetary policy. The Treasury will still have reserve powers, in extreme economic circumstances, to direct the Bank with respect to monetary policy, if they are satisfied that this is required in the public interest;
• transferring to the Financial Services Authority the Bank’s functions in relation to the supervision of banks;
• setting in place a new accountability framework for the Bank, based on:
• • statutory duties of the Bank’s Court of Directors, and specific responsibilities for the non-executive Directors;
  • requirements for the Bank’s accounts; and
  • laying the Bank’s annual report before Parliament.
• greater transparency in the Bank’s operations:
• • the Monetary Policy Committee will publish its actions, minutes of its meetings and a quarterly report; and
  • the Court of Directors will review the Monetary Policy Committee’s procedures and make an annual report.
• placing on a statutory basis arrangements for banks, building societies and overseas institutions to place deposits with the Bank in order to fund its operations.

The Government’s intention is that the overall costs to financial institutions in aggregate, under the new arrangements, will be no greater than under the current arrangements, and preferably lower. The Financial Services Authority issued today a consultation document on its fee structure for banking supervision. The Treasury will be issuing soon a consultation document on the statutory cash ratio deposit scheme.

The Bill was given its First Reading in the House of Commons today.

The press release issued by HM Treasury on 28 October 1997.

New Financial Regulator to be called Financial Services Authority

The new financial regulator will be called the Financial Services Authority, Chancellor Gordon Brown announced today at the launch of the new organisation.

The new regulator will take over responsibility for banking supervision from the Bank of England, financial services regulation from the Self-Regulatory Organisations (SROs) and insurance.

Announcing the new name, the Chancellor said:

“The name encompasses what the new regulator is all about. It is clear, straightforward and easy to understand which is exactly the way we want to see the new regulator viewed.

“The Financial Services Authority will bring the regulatory structure closer into line with today’s increasingly integrated financial markets. It will bring more effective and more efficient supervision, giving both firms and customers more confidence in the system.

“It will improve the competitiveness of the financial services sector and create a regulatory regime to meet the challenges of the 21st century.”

The Chancellor announced that statutory objectives would be set as part of the accountability framework for the new regulator. The Chancellor said:

“One of my aims in setting up the new regulator is to improve the arrangements for accountability to Ministers and to Parliament. I believe that statutory objectives can play an important role in achieving this.

“The objectives we set will give the new regulator a clear sense of its priorities. And will provide a benchmark against which the performance of the regulator can be measured. They will form the basis of the regulator’s annual report to me”

The Memorandum of Understanding between HM Treasury, the Bank of England and the Financial Services Authority was also published today. This sets out the framework of cooperation between the three institutions.

Work is currently underway on drafting the legislation to bring the new regulator into being. The draft Bill will form the basis of consultation in the summer of 1998.

The press release issued by HM Treasury on 23 October 1997.

More than 60 million Pounds of taxpayers’ money could be saved every year using a new procurement card for Government Departments launched by Paymaster General Geoffrey Robinson today.

The first Government-wide charge card, arranged in partnership between the Treasury and Visa International and involving five major banks, will enable purchasers to order and pay for goods and services directly and without the need to raise an expensive series of orders and invoices, saving time and money.

Launching the Government Procurement Card (GPC), Geoffrey Robinson said:

“Buying essential small items has long been a cause of frustration and waste for Government.

“Because of the need to keep track of spending, these had to be ordered and paid for through a time consuming and expensive system of individual orders. This could cost 70 Pounds or more even though the goods involved might cost 100 Pounds or less – in one case identified by the National Audit Office only 98 pence!

“That is an unacceptable waste of public money when modern charge card technology offers a better deal, potentially more than halving the cost of buying low value items. When we consider that well over 100 million Pounds is spent merely on processing low value purchases, the potential savings – over 60 million Pounds – are obvious.

“Paying for goods on the spot with a Government Procurement Card will end much of that waste, as well as making sure that suppliers – often small businesses – get paid faster.

“Modernising the process will cut costs and improve cost tracking and control through a single monthly statement showing where and when every item was bought, just like the one private cardholders receive for their household purchases.

“This is another good example of Government learning from the private sector, where these ideas were developed, then working with business to deliver the goods more cheaply for the taxpayer and offering faster settlement for suppliers.”

Each Department and agency will vary its GPC arrangements to meet their own requirements, but each scheme will offer broadly the same elements. GPCs offer great flexibility . They can be coded to restrict purchases to certain types of suppliers or to nominated suppliers, or below a certain value. This gives effective, focussed control over the buying ability of individual purchasers, related to separate cost centres and purchasers.

As a GPC is a charge card, it is paid off in full each month by the purchasing department on receipt of a single, fully itemised statement. It is not a credit card designed to offer extended payment periods. The supplier of goods is paid directly by the bank, generally within four working days of the purchase, as for any High St retail purchase. It benefits suppliers as well as purchasers by avoiding the need to raise and send invoices and await payment under standard commercial terms.

The press release issued by HM Treasury on 14 October 1997.

The NHS will get an extra 300 million Pounds for patient care this winter as a result of a reordering of spending priorities, the Chancellor Gordon Brown announced today.  This extra funding comes on top of the 1.2 billion Pounds for the NHS next year announced in the Budget.

300 million Pounds has been made available for patient care by a reallocation of 270 million Pounds from other Departments on top of 30 million Pounds in new administrative savings identified within the NHS.  To further help NHS funding, the Government will introduce at the earliest available opportunity a Bill to improve collection of Road Traffic Act payments from insurance companies.

The 300 million Pounds for this winter will go in extra funds targeted to where they are most needed through the whole country, and come as part of a series of announcements about the use of NHS resources being made today by Frank Dobson, the Health Secretary.  Among the new measures are a new expert to tackle prescription fraud and  a best practice initiative involving the co-operation of senior NHS staff to improve performance. This is in addition to the proposed amalgamations of NHS Trusts already announced.  Once fully in place the Road Traffic Act reform is estimated to yield 100 million Pounds extra every year, to be devoted to patient care.

The measures arise from the “saving before spending” approach of the Chancellor and the Chief Secretary, based on a fine of 168 million Pounds on the Ministry of Defence for overspending, and 102 million Pounds of provision no longer needed by the public sector nuclear industry as a result of their improved performance.

Chancellor Gordon Brown said:

“This new money for NHS patient care will go to where it is needed most.

The Government’s approach is clear.

We will maintain the control totals we set and therefore achieve the public spending discipline needed for sustainable finances. Savings will be found from within existing resources.

And we will use money saved to fund our priorities, of which NHS patient care is one.

Indeed, we will continue to be relentless in our search for savings, where money can be redirected to priorities.

The new initiatives, including the appointment of best practice teams, will ensure better use of resources. We are satisfied that the money announced today will go to where it is needed most, for patient care during the winter months.”

The press release issued by HM Treasury on 13 October 1997.

The UK’s Employment Action Plan to tackle UK and European employment problems was launched today by the Chancellor, Gordon Brown.  He talked about a new European third way to get Europe back to work by combining economic efficiency with social inclusion.

The Chancellor said:

“With 18 million people out of work in the EU, no-one can be complacent about getting Europe back to work. We need to build on the best practice in Member States to make Europe’s labour markets the engines of high employment.

“We need to find a new third way between rampant free-market economics and stifling over regulation, combining economic efficiency and social inclusion.”

The Action Plan, part of the  Getting Europe Back to Work’ initiative the Chancellor launched in June, was discussed at the ECOFIN meeting in Luxembourg today. It calls on the EU to focus its efforts in five broad areas. Those areas are:

• promoting economic growth and stability;
• investing in human capital;
• helping people from welfare into work;
• improving the workings of markets; and
• through these and other actions, creating a fair and  inclusive society.

The Plan takes forward the remit from the Amsterdam European Council to exchange best practice on employment policy between Member States of the European Union.

It sets out the policies the UK Government sees as necessary to tackle unemployment and raise employment domestically, and which could form the basis of action in the European Union context. It considers which employment policies are working well in the UK and those which need changing.  The Plan notes:

“The Government is clear that we now need to set a new agenda for employability, growth, job creating flexibility and inclusion in Europe.  Employability means the development of skills and adaptable workforces in which all those capable of work are encouraged to develop the skills, knowledge, technology and adaptability to enable them to enter and remain in employment throughout their working lives.”

The press release issued by HM Treasury on 10 October 1997.

The Treasury has today published the responses from 17 pension firms which set out their strategies for speeding up the review of pension cases.

The responses were requested by the Economic Secretary, Helen Liddell when she met senior representatives of the firms on the 18 September.

The firms were: Albany Life, AXA Equity and Law, Berkeley, Burns Anderson, Canada Life, Commercial Union, Countrywide, DBS, Financial Options, Friends Provident, Godwins, Hill Samuel, IFA Network, M&E Network, Midland Bank, Standard Life, Wesleyan.

The press release issued on 10 October 1997.

The Chancellor of the Exchequer and the Governor of the Bank of England have today announced that they plan to appoint three new Executive Directors to the Securities and Investments Board (SIB) shortly. This will become the Board of the new financial regulator (NewRO) and the three proposed Executive Directors (all of whom have indicated that they are willing to serve on the Board) will become the three Managing Directors of NewRO.

Richard Farrant, currently Chief Executive of the Securities and Futures Authority (SFA) is to become Managing Director and Chief Operating Officer.

Michael Foot, currently executive Director of the Bank of England responsible for Banking Supervision, is to become Managing Director and Head of Financial Supervision.

Philip Thorpe, currently Chief Executive of the Investment Management Regulatory Organisation (IMRO) is to become Managing Director and Head of Authorisation, Enforcement and Consumer Relations.

These appointments are to be made before Royal Assent to the Bank of England Bill, which will be introduced into Parliament soon after it resumes.

The press release issued by HM Treasury on 8 October 1997.

The Government is developing a series of proposals aimed at clamping down on the money laundering activities of criminal gangs,  the Economic Secretary, Helen Liddell, announced today.

At the National Financial Investigators’ Conference in Wakefield the Minister set out a series of measures, following a review of the UK’s anti-money laundering regime, to tackle financial crime.

The proposals, currently being worked on, include:

• strengthening the role of the financial regulators in the fight against money laundering; stronger and more effective legal framework;
• increased attention to unregulated sectors, including company formation agents, money remitters and bureaux de change;
• strengthening the effectiveness of the National Criminal Intelligence Service (NCIS) at the heart of the system;
• more information for the public; and
• the removal of unnecessary obstacles to the exchange of confidential information between the police, the financial regulators and the Inland Revenue.

The Minister said that the UK already had one of the most effective and comprehensive anti money laundering regimes in the world, a fact recognised by the Financial Action Task Force.  But there is no room for complacency.  With the current reform of financial regulation, the criminal regime could not be ignored. She said:

“A City free of regulatory abuse but open to fraud, corruption and money laundering is not one that will survive and grow in the current international climate.”

She applauded the revolutionary approach the investigators were using in tracking down financial activity. The Minister said:

“This goes much wider than pure money laundering – it is about a new approach to crime fighting.

“Dismantling the financial strands of a criminal gang is one of the best ways of putting them out of business – hitting them where it hurts, in their pocket.”