Tag: Treasury

The press release issued by HM Treasury on 24 February 2025.

Dr. Swati Dhingra has been reappointed as an external member to the Monetary Policy Committee (MPC), the Chancellor of the Exchequer, Rachel Reeves, has announced.

Dr. Swati Dhingra is an Associate Professor of Economics at the London School of Economics (LSE), and an Associate of the Centre for Economic Performance at LSE. Her research has been funded by the Economic and Social Research Council; European Research Council; International Growth Centre; UK Research and Innovation; and she was awarded the Office for National Statistics’ Research Excellence People’s Choice Award 2019.

From 1 January 2023, Dr. Swati Dhingra has been Director of the Review of Economic Studies. She has also been a member of the UK’s Trade Modelling Review Expert Panel and the LSE’s Economic Diplomacy Commission.

About the reappointment process

Reappointments are not automatic, and each case is considered on its own merits. This reappointment was made by the Chancellor of the Exchequer, in line with the requirements of the Governance Code for Public Appointments.

About the Monetary Policy Committee

The independent MPC makes decisions about the operation of monetary policy. It comprises of the Governor of the Bank of England, three Deputy Governors, the Bank of England’s Chief Economist and four external members. External members, who are appointed by the Chancellor, may serve up to two three-year terms on the MPC.

The appointment of external members to the MPC is designed to ensure that the Committee benefits from thinking and expertise in addition to that gained inside the Bank. Each member of the MPC has expertise in the field of economics and monetary policy. They are independent and do not represent particular groups or areas.

The press release issued by HM Treasury on 20 February 2025.

Rachel Reeves urges financial industry leaders to seize growth opportunities in emerging markets, creating new business for British firms and boosting trade links with fast-growing economies, delivering on the government’s Plan for Change.

In Canary Wharf today (20 February) the Chancellor met with some of the UK’s biggest financial services firms such as Aviva, HSBC and Schroders and urged them to work with development institutions including the European Bank for Reconstruction and Development (EBRD) and British International Investment. To go further and faster in delivering the government’s Plan for Change and put more money in people’s pockets, the Chancellor encouraged firms to seize investment opportunities in emerging markets for Britain’s brightest and best companies.

Co-hosting a roundtable with Odile Renaud-Basso, president of the EBRD, the Chancellor launched the “London Coalition on Sustainable Sovereign Debt”. This will be co-chaired by the Economic Secretary to the Treasury, Emma Reynolds.

The Coalition will bring together government and private sector stakeholders to find innovative solutions to more sustainable sovereign debt financing in developing economies.

Promoting orderly and transparent debt restructuring and more resilient borrowing will mean that emerging economies can make progress meeting their climate and development targets. The Coalition capitalises on London’s financial services expertise and will help cement its position as a global leader in development finance, in turn supporting economic activity and financing investment across the country. Investing in emerging markets themselves can boost UK growth by creating new opportunities for British businesses in areas such as financial services, and boost trade ties with fast-growing economies amid an increasingly uncertain global environment.

Chancellor of the Exchequer, Rachel Reeves said:

Business and government must work together to seize opportunities in emerging markets and kickstart economic growth as part of our Plan for Change.

Today’s roundtable shows how the UK’s world-leading financial centre can help countries unlock new opportunities for our brightest and best British companies to create wealth and drive growth.

President of the European Bank for Reconstruction and Development Odile Renaud-Basso said:

Mobilising private capital is key to meeting global development needs. I’m delighted to co-host UK business leaders with the Chancellor to discuss how multilateral banks like the EBRD can help channel further financing to emerging markets. By joining forces, we aim to deliver the much-needed impact for developing countries while creating new opportunities for businesses from developed economies.

The Chancellor and Renaud-Basso also signed a Memorandum of Understanding setting out cooperation on the EBRD annual meeting and business forum in London, which will be held from 13 to 15 May this year.

The Chancellor will attend the bank’s first annual meeting in London since 2016 where it will see governors approve the bank’s next 5-year strategy and highlight opportunities for UK businesses to work with the EBRD in its key markets such as Ukraine, Poland and Turkey.

Reeves and Renaud-Basso discussed with business leaders how to create the right environment for investment. This is being done at home, for example through reforms to the pensions system which could unlock around £80 billion in productive investment and the launch of the Transition Finance Council led by Lord Alok Sharma. It is also key to work overseas, where British International Investment and UK-backed programmes including MOBILIST and the Private Infrastructure Development Group have unlocked billions in private investment for climate and development around the world. A new Institutional Investor Taskforce will advise government and institutional investors on how they can work together to open up even more of this much-needed investment and establish London as the world’s leading climate and development finance hub.

Reeves outlined the UK’s growth priorities, both at home and abroad, and highlighted the financing tools and instruments to help achieve this such as the National Wealth Fund, which is expected to mobilise over £70 billion in private investment into the high-growth industries of the future. Reeves also underscored the importance of multilateral development banks in helping to mobilise private capital, through working together more effectively as a system and with the private sector.

As the largest institutional investor in Ukraine, the EBRD has also been working with the UK government to support Ukraine’s resilience and recovery. In December, the UK confirmed its participation in a EUR 4bn capital increase which will unlock billions each year to support critical sectors of Ukraine’s economy. The EBRD and Aon also launched an innovative $110m war insurance facility with UK support in the same month to rebuild the country’s insurance market.

Elsewhere, the EBRD invests in 36 economies across three continents including in Central, Eastern and Southern Europe, Central Asia and North Africa. This year it will also begin operations in sub-Saharan Africa.

The roundtable comes ahead of the Chancellor’s visit to Cape Town, South Africa, next week to attend the G20 Finance Ministers and Central Bank Governors meeting. She will be advocating for the UK’s Growth Mission on the global stage and championing how private capital and the role of the City will kickstart economic growth and raise living standards around the world.

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Baroness Shriti Vadera, Chair of Prudential PLC and Co-Chair of the World Bank Private Sector Investment Lab, said:

It is critical for governments, international financial institutions, and the private sector to work together to mobilise, at scale and pace, greater levels of finance for climate and development where it is most needed – in emerging and developing markets. I particularly welcome the focus today on practical steps to develop and deploy risk-sharing and blended financial instruments.

Dame Elizabeth Corley, Chair of Schroders PLC, said:

I firmly believe asset managers play a key role in crowding in private capital and unlocking it at scale in emerging markets. Schroders, with its impact pioneer BlueOrchard, is eager to share our expertise in blended finance and impact investing to overcome barriers to private sector investment, redressing some of the world’s biggest challenges like climate change and inequality.

The press release issued by HM Treasury on 19 February 2025.

Financial markets will be modernised to drive capital market competitiveness and deliver growth – the priority of the government’s Plan for Change.

In a meeting with the country’s top bankers, the Chancellor set out a plan to speed up settlement of securities trades which will make the UK’s capital markets more competitive to drive economic growth through the Plan for Change and put more money into people’s pockets.

The top brass from JP Morgan, Blackrock, Abrdn, Morgan Stanley, Goldman Sachs, Citi, Fidelity, and Schroders were welcomed into No11 Downing Street for breakfast this morning, as part of ongoing engagement with industry to hone the Financial Services Growth and Competitiveness Strategy – one of the eight key growth sectors identified in the Modern Industrial Strategy.

Rachel Reeves spoke about the importance of going further and faster to drive growth and revealed that the Government had accepted all recommendations made by the Accelerated Settlement Technical Group – confirming that the UK will move to a ‘T+1’ standard for settling securities trades from 11 October 2027.

The change means that a typical securities trade, such as buying and selling shares, would be settled the day after it is agreed – instead of the current two-day standard. Faster settlement will support economic growth by putting the UK at the forefront of modernised, highly efficient and automated capital markets, bringing the UK into line with key international markets such as the US and reducing costs for investors by limiting risks when making trades.

Chancellor of the Exchequer, Rachel Reeves said:

I am determined to go further and faster to drive growth and put more money into people’s pockets through our Plan for Change. Speeding up the settlement of trades makes our financial markets more efficient and internationally competitive.

Chief Executive Officer of the Financial Conduct Authority, Nikhil Rathi said: 

We highlighted how the move to T+1 will make our markets more efficient and support growth in our recent letter to the Prime Minister. We will support industry as they move to T+1 and expect firms to engage and plan early.

Governor of the Bank of England, Andrew Bailey said: 

Shortening the UK securities settlement cycle to T+1 will bring important financial stability benefits from reduced counterparty credit risk in financial markets. It is important that firms and settlement infrastructures have robust plans for an orderly transition in October 2027. As part of this effort, the Bank looks forward to continuing dialogue with regulators in other markets which are pursuing similar changes.

The government has accepted all the recommendations made by the Accelerated Settlement Technical Group, which has created a detailed implementation plan to ensure a smooth transition to T+1, and confirmed that it will bring forward legislation to implement the change, including setting the date to move to the new standard.

Terms of Reference have been published for the next phase of the project, which will continue to be led by the industry taskforce with Andrew Douglas as chair and HMT, the FCA and the Bank as observers. Industry chairs from the EU and Switzerland have also been invited to observe the UK industry taskforce to encourage alignment across Europe.

The taskforce will oversee and manage implementation of the recommendations up until T+1 is successfully implemented, and for a short period afterwards to evaluate the short-term impacts.

The government, the Financial Conduct Authority and the Bank of England support the industry recommendation to move to T+1 settlement in UK markets by 11 October 2027 and call on the industry to engage with the recommendations and start their planning as soon as possible.

Notes to editors

Stakeholder commentary:

Tiina Lee, Chief Executive Officer of Citi UK said:

We welcome the move to a T+1 settlement cycle in UK markets and appreciate the hard work in achieving the alignment of timelines with the EU. Based on Citi’s experience with global investors, coordinated market reforms are critical to the growth and competitiveness of the UK. We look forward to working with other industry participants to ensure a smooth transition in October 2027.

Conor Hillery, Deputy CEO & Head of Investment Banking in EMEA, JP Morgan, said:

We welcome the Chancellor’s continued dialogue with UK financial services on its role in facilitating growth, which requires the right policy and regulatory framework. This move to a modern T+1 settlement cycle will contribute to keeping London as a competitive financial centre, so we support the government’s efforts to make it happen.

Clare Woodman, Head of EMEA and CEO of Morgan Stanley International said:

We welcome the UK Government’s commitment to move to a T+1 settlement cycle in October 2027. The shift to a shorter settlement cycle will generate market efficiencies supporting the competitiveness of UK markets.

The press release issued by HM Treasury on 16 February 2025.

From tomorrow (17 February), Local Authorities can begin rolling out local schemes for tax relief to help filmmakers produce the country’s next box office hits, rom-coms and cult classics.

Film studios are to receive business rates relief over the next nine years as the government rolls out a 40% reduction in business rates bills – to help drive growth and deliver the Plan for Change.

From tomorrow (17 February), Local Authorities can begin implementing local schemes and awarding the tax relief to help filmmakers kickstart their journeys to producing the country’s next box office hits, cult classics and major rom-coms.

The UK’s creative sector already employs over 2.4 million people and is worth over £120 billion to the economy. The start of the business rates relief for film studios rollout will help create the conditions to boost both of these.

In October, the government confirmed that it would proceed with Film Studio Business Rates Relief that will be available for eligible studios in England until 2034, and, where applicable, will be backdated to 1 April 2024.

Chancellor of the Exchequer, Rachel Reeves, said:

The UK leads the world in creating great film and TV and we should all be immensely proud of the impact we’ve had across the globe.

From the Avengers to Indiana Jones, the UK has drawn in some of cinema’s biggest names thanks to a combination of fantastic local talent and a world-leading creative sector as well as attractive tax incentives.

As part of the Plan for Change, we will continue to build the sector into a global beacon of home grown success, creating more jobs, more investment, and putting more money into working people’s pockets.

This comes on top of a package of wider previous announcements for the creative industries announced on 17 January that included investments for start-up video game studios, grassroots music venues and creative businesses.

The relief will maintain the UK’s status as a world leader in the creative industries and will help deliver the Plan for Change by going further and faster to kickstart economic growth so working people have more money in their pockets.

The creative industries sector employs 2.4 million people and is worth £124.6 billion to the UK economy. Business rates relief forms part of the government’s wider strategy to support this vital growth sector, and forms a key part of our modern Industrial Strategy.

The film and TV sector benefits from other generous tax reliefs. The Audio-Visual Expenditure Credit (AVEC) provides companies with a tax credit worth 34% of their UK production costs on a film or high-end TV programme, or 39% of their production costs on an animation or children’s TV programme.

In addition, from 1 April 2025, film and high-end TV companies may claim a credit of 39% on their UK visual effects costs; and eligible films with budgets of under £15 million will be able to claim an enhanced 53% rate, known as the Independent Film Tax Credit.

Today (16 February), the UK film and TV industry will attend the BAFTA Film Awards that celebrate the many achievements of the sector and the significant cultural impact of British film and TV around the world.

Culture Secretary Lisa Nandy said:

The UK’s film industry is truly world class, producing global box office hits like Wicked and indie classics like Aftersun.

The sector has huge potential for further economic growth and the government is ambitious for its future. Our new tax incentive, as well as other new measures like indie film tax reliefs and £25 million funding for a new film studio in Sunderland, will help ensure we can continue to create British content, international blockbusters and high quality jobs.

Adrian Wootton OBE, Chief Executive of the British Film Commission:

The British film and TV industry is a creative and economic powerhouse, and our film studios are a vital contributor to this success. Today’s confirmation of the Business Rates Relief for Film Studios in England is testament to Government’s recognition of this fact. The BFC is pleased that Government listened to the sector’s concerns and we are proud to have supported the development of this landmark intervention. We will continue to work with Government and stakeholders to secure the best possible long term solution for all parties.

Harriet Finney, Deputy CEO and Director of Corporate & Industry Affairs, BFI said:

2024 saw a massive £5.6 billion of production spend in the UK, further confirming that our film and TV industries continue to be a powerful and vital growth industry. Our state-of-the-art studio spaces are central to that growth, so we welcome today’s announcement and the Government’s recognition of their crucial role in ensuring we can continue to make world-renowned UK film and TV and attract outstanding international productions, driving investment and creating jobs across the UK.

Sara Putt, Chair, BAFTA said:

The UK is a world-leading centre for film and TV production – our studios provide world-class facilities and the craft and production skills here are second to none, as showcased by the British-made films nominated in this year’s EE BAFTA Film Awards.  For those freelancers and crews to continue doing what they do best, it is vital that the UK remains competitive as a prospect for inward investment and continues to support a healthy talent pipeline to grow our domestic film and TV industry, so more UK talent and stories are celebrated at home and around the world.

Simon Robinson, Chief Operating Officer of Warner Bros. Discovery Studios said:

We welcome the Treasury’s announcement confirming its commitment to providing vital relief to business rates.  It will create a stable environment for long-term investment, including securing the Warner Bros. Studios Leavesden expansion, which will create 4,000 direct and indirect jobs, and the opportunity for continued growth of the industry in the UK and U.S.

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More information

• The relief will be available on properties valued by the Valuation Office Agency (VOA) as film studios.
• The 40% reduction is inclusive of Transitional Relief. The value of any Transitional Relief a studio receives will be deducted from the value of the film studio relief. This means that eligible film studios’ final bills will be no more than 60% of their gross bill. Studios will remain eligible for Improvement Relief in addition to this relief, which will mean that no ratepayer will face higher business rates bills for 12 months as a result of qualifying improvements to a property they occupy.
• Film studios will not need to apply for the relief, as Local Authorities will award it to eligible properties. If in doubt, film studios should contact their local authority.

The press release issued by HM Treasury on 13 February 2025.

The government commits to a new, permanent, comprehensive mortgage guarantee scheme to increase homeownership.

Further plans to modernise home buying have been unveiled this week, helping more people to realise their ambitions of owning their own home as part of the government’s Plan for Change.

The government has committed to launching a new, permanent, comprehensive mortgage guarantee scheme that will open the door to homeownership for more young families and hardworking renters.

Alongside this the Economic Secretary to the Treasury has written to the Financial Conduct Authority (FCA) following their response to the government’s call for regulators to support growth, setting out the government’s support for their proposal to review mortgage rules. The government has made clear it wants the FCA’s review to be as ambitious and rapid as possible to help as many people as possible to achieve the dream of owning a place of their own.

It follows an announcement last week that the government is streamlining and digitising the process for buying and selling homes to help homebuyers save time and money, and reducing the number of house sales that fall through. Fall throughs impact one in three transactions and cost people around £400million a year in total and currently there are delays of almost five months in the system.

Millions of hardworking people have been locked out of home ownership – the number of first-time buyers fell to a 10 year low in 2023 and today’s under 30s are less than half as likely to be home owners than those at the same age in 1990.

The government’s Plan for Change has clear ambitions for delivering 1.5 million more homes and driving growth – cutting unnecessary red tape in order to be on the side of builders and working people who want to get on the property ladder.

City Minister Emma Reynolds said:

“For too long politicians have ducked and dodged the decisions needed to support homeownership.

“Simplifying responsible lending rules and putting in place a permanent mortgage guarantee scheme shows our commitment to making the dream of owning a home a reality. I will work closely with regulators and industry to get this done quickly and in a way that supports as many people as possible.”

Housing Minister Matthew Pennycook said:

“The affordability challenges facing first-time buyers mean that we now have a generation locked out of homeownership . This government is determined to change that, ensuring that young families and hardworking renters can buy a home of their own.”

New details on the new Mortgage Guarantee Scheme will be announced in due course and will replace the existing Mortgage Guarantee Scheme, which was due to expire this year. By making the Mortgage Guarantee Scheme permanent and comprehensive, banks and building societies will have long-term confidence to continue offering low-deposit mortgages.

Many working people continue to find it extremely difficult to secure a deposit, meaning for too many the dream of home ownership has depended on access to the ‘Bank of Mum and Dad’, leaving those without that option often trapped in a cycle of renting without a way out.

This commitment to a new Mortgage Guarantee Scheme means first-time buyers, including young families, will be able to take that crucial first step onto the property ladder, with only a small deposit, tackling one of the biggest barriers to homeownership and giving them the stability they need to plan for the future.

The press release issued by HM Treasury on 6 February 2025.

The Treasury has today announced the appointment of Chris Walton as Non-Executive Chair of The Royal Mint.

Chris Walton will be in position for an initial three-year term, succeeding Graham Love, who served as Chair since December 2018. Chris will oversee the Mint as it continues to diversify its portfolio into new business areas, and to produce UK circulating coins in line with demand.

Commenting on the appointment, Economic Secretary to the Treasury and City Minister, Emma Reynolds said:

I’m delighted to welcome Chris Walton to The Royal Mint as the new Chair. Chris brings a wealth of leadership experience to the role, and I look forward to working with him as he shapes the strategic vision of The Royal Mint in the years ahead.

I want to thank Graham Love for his leadership over the last six years. Graham has overseen a number of successes in his time as Chair and has set the foundations for The Royal Mint of the future.

Chris Walton added:

It is a privilege to join The Royal Mint during this fascinating period of transformation. With sustainability at its core, the Mint is evolving for the future, and I am eager to support its growth and build on a remarkable legacy.

The Royal Mint is one of the oldest companies in the world – supplying coins to the UK for over 1,100 years. It also produces commemorative coins, to mark events of national, historical and cultural significance, offers investment in precious metals, a jewellery collection and recycling precious metals from e-waste.

The Chair of The Royal Mint is responsible for providing strategic direction and works closely with the Board of Directors and Executive Team.

The press release issued by HM Treasury on 29 January 2025.

Charter for Budget Responsibility has been approved in the House of Commons, enshrining new fiscal rules into law.

Today (Wednesday 29 January) the House of Commons voted to enshrine the Charter for Budget Responsibility and the new fiscal rules into law.

These fiscal rules provide the stability which underpins the Plan for Change and the Government’s number one priority to kickstart economic growth.

There are two new non-negotiable fiscal rules. The first is the stability rule which ensures that day to day spending is matched by tax revenues, so the Government is only borrowing to invest.

The second is the investment rule which requires the government to reduce net financial debt as a share of the economy, keeping debt on a sustainable path while allowing much needed investment to grow the economy.

Chancellor of the Exchequer, Rachel Reeves said:

In our Plan for Change we were clear that our top priority is growth built on stability. Today I have announced how I will go further and faster on growth and our fiscal rules, which have been enshrined in law, are now non-negotiable and the bedrock of that stability.

Through the Charter, fiscal and economic stability will be enhanced by confirming the government’s intention to move to one major fiscal event per year, giving families and businesses certainty of tax and spending plans.

Stability is also reinforced by confirmation that the Treasury will conduct Spending Reviews every two years, setting spending plans for at least three, to ensure public services have certainty on their funding.

Fiscal transparency and accountability will also be strengthened as the Chancellor has accepted all of the recommendations of the OBR’s review of the March 2024 forecast for Departmental Expenditure Limits, including to improve the spending information that the Treasury shares with the OBR.

In addition, the Charter now requires the OBR to report on the long-term impacts of capital investment and other policies at fiscal events, showing how economic growth and the health of the public balance sheet is bolstered by good investment decisions.

The Charter also outlines the detail of the fiscal lock – the first legislation passed by this government – so that no government can announce fiscally-significant measures without being subject to an independent assessment by the OBR, ensuring they can never again be sidelined.

The press release issued by HM Treasury on 29 January 2025.

Chancellor unveils new plans to deliver the Oxford-Cambridge Growth Corridor that will boost the UK economy by up to £78 billion by 2035.

Chancellor Rachel Reeves will today vow to go “further and faster” to kick start the economy, as she unveils new plans to deliver the Oxford-Cambridge Growth Corridor that will boost the UK economy by up to £78 billion by 2035 according to industry experts.

In a speech in Oxfordshire, the Chancellor will tell regional and business leaders that economic growth is the number one mission of this government and its Plan for Change. She will declare that Britain’s economy has “huge potential” and is at the “forefront of some of the most exciting developments in the world like artificial intelligence and life sciences.”

She will back the redevelopment of Old Trafford and will review the Green Book – the government’s guidance on appraisal – in order to support decisions on public investment across the country, including outside London and the Southeast.

The speech comes after the Chancellor last week announced a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment and projects linked to regional growth priorities. This includes the NWF trialling Strategic Partnerships in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region and the OfI piloting an approach in the Liverpool City Region and the North East Combined Authority to connect their regions to central government and industry expertise in order to unlock private investment.

Reeves will say “low growth is not our destiny, but that economic growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.”

The Chancellor is expected to say:

Britain is a country of huge potential. A country of strong communities, with local businesses at their heart.

We are the forefront of some of the most exciting developments in the world like artificial intelligence and life sciences. We have great companies based here delivering jobs and investment in Britain.

And we have fundamental strengths – in our history, our language, and our legal system – to compete in a global economy.

But for too long, that potential has been held back. For too long, we have accepted low expectations, accepted stagnation and accepted the risk of decline. We can do so much better.

Low growth is not our destiny. But growth will not come without a fight. Without a government that is on the side of working people. Willing to take the right decisions now to change our country’s course for the better.

That’s what our Plan for Change is about. That is what drives me as Chancellor. And it is what I’m determined to deliver.

In her speech the Chancellor will announce:

• The Environment Agency has lifted its objections to a new development around Cambridge that could unlock 4,500 new homes and associated community spaces such as schools and leisure facilities as well as office and laboratory space in Cambridge City Centre. This was only possible as a result of the government working closely with councils and regulators to find creative solutions to unlock growth and address environmental pressures.
• That the government has agreed for water companies to unlock £7.9bn investment for the next 5 years to improve our water infrastructure and provide a foundation for growth. This includes nine new reservoirs, such as the new Fens Reservoir serving Cambridge and the Abingdon Reservoir near Oxford.
• Confirming funding towards better transport links in the region including funding for East-West Rail, with new services between Oxford and Milton Keynes this year and upgrading the A428 to reduce journey times between Milton Keynes and Cambridge.
• Prioritisation of a new Cambridge Cancer Research Hospital as part of the New Hospitals Programme bringing together Cambridge University, Addenbrookes Hospital and Cancer Research UK.
• Support for the development of new and expanded communities in the Oxford-Cambridge Growth Corridor and a new East Coast Mainline station in Tempsford, to expand the region’s economy.
• That she welcomes Cambridge University’s proposal for a new large scale innovation hub in the city centre. As the world’s leading science and tech cluster by intensity, Cambridge will play a crucial part in the government’s modern Industrial Strategy.
• A new Growth Commission for Oxford, inspired by the Cambridge model, to review how best we can unlock and accelerate nationally significant growth for the city and surrounding area.
• Appointment of Sir Patrick Vallance as Oxford-Cambridge Growth Corridor Champion to provide senior leadership to ensure the Government’s ambitions are delivered.

The Chancellor is expected to say:

Oxford and Cambridge offer huge economic potential for our nation’s growth prospects.

Just 66 miles apart these cities are home to two of the best universities in the world two of the most intensive innovation clusters in the world and the area is a hub for globally renowned science and technology firms in life sciences, manufacturing, and AI.

It has the potential to be Europe’s Silicon Valley. The home of British innovation.

To grow, these world-class companies need world-class talent who should be able to get to work quickly and find somewhere to live in the local area. But to get from Oxford to Cambridge by train takes two and a half hours.

There is no way to commute directly from places like Bedford and Milton Keynes to Cambridge by rail. And there is a lack of affordable housing across the region.

Oxford and Cambridge are two of the least affordable cities in the UK. In other words, the demand is there but there are far too many supply side constraints on economic growth in the region.

Designed to take advantage of the region’s unique strengths and potential, the announcements are further evidence of the government’s modern Industrial Strategy in action as it seeks to create the right conditions to increase investment in our leading growth sectors like life sciences, artificial intelligence and advanced manufacturing.

She will add:

Taken together, these announcements show that for the first time a government is providing real leadership to deliver this project with a clear strategy for the entire region backed by funding for the housing and infrastructure we so badly need.

The speech comes after the Chancellor last week announced a package of investment reforms to spur regional growth across the UK. Rachel Reeves set out a new approach for the National Wealth Fund (NWF) and the Office for Investment (OfI) to work with local leaders to build pipelines of incoming investment and projects linked to regional growth priorities. Putting local knowledge and leadership at the forefront, there will be tailored strategies for each region to ensure investment matches local needs and drives sustainable growth. Putting the government’s Plan for Change into action, the Chancellor set out that the goal is to harness growth everywhere to rebuild Britain and usher in a decade of national renewal. Measures included the NWF trialling Strategic Partnerships in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region and the OfI piloting an approach in the Liverpool City Region and the North East Combined Authority to connect their regions to central government and industry expertise in order to unlock private investment.

Science Minister, Lord Patrick Vallance said:

The UK has all the ingredients to replicate the success of Silicon Valley or the Boston Cluster but for too long has been constrained by short termism and a lack of direction.

This government’s Plan for Change will see an end to that defeatism. I look forward to working with local leaders to fulfil the Oxford-Cambridge corridor’s potential by building on its existing strengths in academia, life sciences, semiconductors, AI and green technology amongst others.

Together we will build the infrastructure and partnerships needed to join up this region’s academia, investors and business so that we can boost growth, deliver innovations and create new jobs that improve all our lives.

Transport Secretary, Heidi Alexander said:

Well connected communities are a cornerstone for growth. East West Rail will not only provide better links and lasting benefits to Oxford and Cambridge, but to all the surrounding areas.

I’m also delighted to announce a brand new station at Tempsford, which will be game changing for the region – allowing a new community and businesses to grow, unlocking faster and smoother access to opportunities, and delivering on the Government’s Plan for Change.

More details

• Yesterday, Moderna completed the build for their new vaccine production and R&D site in Harwell, Oxfordshire. They have committed to invest over £1 billion in R&D in the UK, strengthening our position as a global leader in biopharmaceutical innovation.
• £78 billion added to the UK economy. Source: Public First research for the Oxford-Cambridge Supercluster Board (2025).

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• Dr Andy Williams, Chair of the Oxford-Cambridge Supercluster Board said:

The announcements today are extremely positive for the region and for the country. As Chair of the OxCam Supercluster Board, which comprises 45 members across business, academia, and investors, we know that the region has the potential to deliver truly remarkable growth in the coming decade and beyond, as evidenced by the research published this week. Achieving £78 billion in cumulative economic value by 2035 requires us to work dynamically and pro-actively across government, the private sector, educational institutions, and the investment community, to fully harness OxCam’s strengths and address its weaknesses. With the experience and knowledge of Lord Patrick Vallance leading this effort, we are excited by the opportunity to co-design a policy prospectus that will allow the OxCam Growth Corridor to realise its potential as a global centre for science and innovation.

• Dipesh J. Shah OBE, Chair of the Oxford to Cambridge Partnership said:

I welcome the Chancellor’s drive to accelerate growth in the Oxford to Cambridge corridor and her support for strategic investments in enabling infrastructure. The region houses internationally acclaimed clusters of innovation in each of the growth sectors for the nation. Already one of the world’s great science powerhouses, the region’s full potential will rely on connecting its incredible ecosystems of businesses, places and communities. Investments announced today will spur more and will help local leaders to deliver on their ambitious plans for their communities.

• Professor Alistair Fitt, Chair of Arc Universities Group and Vice-Chancellor Oxford Brookes University said:

This region hosts a great diversity and scale of universities. Together we offer a wide range of key contributions: globally renowned research brilliance, the powerhouse of skills provision provided by cutting edge teaching, world class knowledge transfer and commercialisation. Our universities, working in close partnership, in alliance with others – particular the private sector – are organised into the Arc Universities Group.  We stand ready for the challenge. We welcome the oversight and experience that the leadership of Lord Patrick Vallance brings to the region, and we look forward to helping deliver the Chancellor’s aspirations for growth.

• Darius Hughes, UK General Manager for Moderna said:

We are proud to call Oxfordshire our home with the recent completion of construction of the Moderna Innovation and Technology Centre in Harwell. Today’s announcement demonstrates the government’s commitment to growth and innovation, and we look forward to delivering British-made vaccines to the UK public, advancing cutting-edge research, and strengthening partnerships in this globally significant region.

• Steve Bates, CEO of the UK Bioindustry Association said:

The UK is a global leader in biotech innovation and attracts the most venture capital in Europe. New figures we’ve published this week show that biotech is a vibrant growth sector of the UK economy with an exceptional ability to attract global investment. Delivering the infrastructure needed to support the growth at pace – especially in the Oxford Cambridge growth corridor- is key to the success of our sector.

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• The government is continuing to work with local partners to deliver sustainable growth in Cambridge, with the additional homes and infrastructure the city needs. Peter Freeman and the Cambridge Growth Company are building the evidence base for an infrastructure-first growth strategy to realise the full potential of Cambridge and improve lives for residents.
• The Chancellor today announced that delivery of a new East Coast Mainline station in Tempsford will be accelerated by 3-5 years. The station will link services directly to London, with services in under an hour. It will eventually also be an interchange with the East West Rail station.
• The A428 (Black Cat to Caxton Gibbet) scheme will improve journeys between Milton Keynes, Bedford and Cambridge. The scheme will see a new 10-mile dual carriageway delivered, as well as three grade separated junctions, three tier at Black Cat roundabout (A1/A421) and two tier at Cambridge Road (B1428) and Caxton Gibbet (A428/A1198) junctions, respectively. Main construction began in December 2023 and the road is expected to open in 2027.
• The Environment Agency have lifted their opposition to new development around Cambridge (Waterbeach and the Beehive centre). This unlocks the delivery of 4,500 new homes and associated community spaces such as schools and leisure facilities as well as office and laboratory space in Cambridge City Centre. This demonstrates how the government, councils, and regulators are working together to find solutions that unlock growth and address environmental pressures.
• The government has agreed water companies’ water resources management plans, including Cambridge Water’s, unlocking a now-confirmed £7.9bn investment in water resources in the next 5 years to provide a foundation for growth and improving our water infrastructure. These plans include nine new reservoirs, including the new Fens Reservoir serving Cambridge to South East Strategic Reservoir Option (Abingdon Reservoir) near Oxford.
• The Chancellor will announce a new Growth Commission for Oxford, similar to the Cambridge Growth Company to bring together key stakeholders across the city and review how best to tackle the barriers that are constraining development of new housing and infrastructure to accelerate growth in the city.
• AI Growth Zones, as recommended in the AI Action Plan launched by the PM earlier this month, are designated areas designed to fast-track the development of AI-focused data centres and supporting infrastructure. By concentrating government support on planning and energy, AIGZs aim to attract significant private investment, accelerate the build-out of critical AI infrastructure, and drive local economic regeneration. The first AI Growth Zone will be in Culham, Oxfordshire.
• On Monday 20th January the Health Secretary announced the Cambridge Cancer Research Hospital is being prioritised for investment as part of wave 1 of the New Hospital Programme. This scheme will improve cancer survival rates by centralising Cambridge University Hospital cancer services under one roof and will further improve the proposition for the life sciences sector in the region, with AstraZeneca and CRUK researchers co-located at the facility, integrating the clinical and research models of cancer services. In doing so it will help create three new research institutes to be integrated with NHS clinical care helping to provide 10 new clinical trials per year and foster increased collaboration between top scientists and clinicians.
• The Chancellor will welcome Cambridge University’s plans for a new largescale innovation hub in the heart of the city. The Global Innovation Index (GII) 2024 has ranked Cambridge as the world’s leading science and technological cluster by intensity for the third consecutive year.

The press release issued by HM Treasury on 20 January 2025.

Financial services sector set for key role in designing first-ever Financial Services Growth and Competitiveness Strategy.

The financial services sector is set to play a key role in designing the first ever Financial Services Growth and Competitiveness Strategy.

The Chancellor will host a series of Industry Forums with industry – covering the entire breadth of the financial services sector – to seek views about the best way to deliver long-term in the sector and across the country.

The Strategy, set to be published in the spring, aims to develop policies that foster growth in the financial services sector, as part of the Plan for Change to grow the economy and put more money in people’s pockets.

Recognising its importance, financial services has been identified as one of the eight key growth-driving sectors in the government’s Modern Industrial Strategy.

The Industry Forums, alongside extensive further engagement at official and ministerial levels, will ensure that industry and senior stakeholders are closely involved in the development of the upcoming Financial Services Growth and Competitiveness Strategy, so that it tackles the key issues that matter most to the industry.

This will ensure that policy is informed by financial services professionals who know first-hand what is needed to deliver growth in each of the significant areas of financial services.

Over the coming weeks, the Chancellor and the Economic Secretary will chair the first of these Industry Forums bringing in leaders from retail banking, wholesale and international banking, insurance and reinsurance, asset management, fintech, and the mutuals and co-operatives sector.

These sessions will build on the government’s Call for Evidence to inform the Strategy, which closed in December 2024.

The Chancellor of the Exchequer, Rachel Reeves said:

Growth is my number one mission. It’s the only way to put more money in people’s pockets and key to our Plan for Change.

The financial services sector is at the heart of this mission, supporting economic activity and financing investment across the country.

I am committed to working hand-in-hand with the industry to make sure that our plans are informed by those who both provide and utilise financial services, including those who know first-hand what is needed to unlock growth in, and drive prosperity through, our world-leading financial services sector.

The first meetings of the Industry Forums will run throughout January and February, reconvening ahead of the government’s publication of the Financial Services Growth and Competitiveness Strategy as part of the Industrial Strategy later this year.

The government will continue to work closely with industry following the publication of the Strategy, to ensure that it is implemented effectively.

The press release issued by HM Treasury on 15 January 2025.

The National Wealth Fund has fuelled 8,600 jobs in the last six months, unlocking almost £1.6 billion of private investment, driving growth across the UK.

The Chancellor began work just days into office to establish a new National Wealth Fund (NWF) that would invest in the new industries of the future to create good jobs and opportunity across every part of the country.

With £27.8 billion of firepower, the National Wealth Fund will help drive the government’s Plan for Change and turbocharge growth across the country to raise living standards in every part of the United Kingdom.

The jobs that have been created will support the digital and clean energy sectors, including 6,500 expected to be created in the retrofit sector across the UK, with the National Wealth Fund providing a financial guarantee that will see Lloyds and Barclays deliver £1 billion of funding to deliver improvements such as low carbon heating and insulation in social housing.

New figures reveal almost £1.6 billion of private investment has been leveraged into projects across the UK’s clean energy and growth sectors over the past six months. This includes to support faster broadband connections for thousands of businesses and households in Cornwall, Yorkshire, Lincolnshire and Cumbria, fuelling economic growth.

Millions of pounds have also been committed to help West Suffolk Council to decarbonise its buildings and transition its fleet to electric vehicles, alongside supporting the expansion of a successful rooftop solar scheme. This innovative investment model has the potential to be replicated by other local authorities and means more businesses can benefit from low cost, low carbon electricity, supporting local businesses and the growth of the clean energy sector.

It comes as today, the National Wealth Fund announces a loan of £92 million to support Denbighshire County Council’s crucial improvements to coastal flood defence barriers in Denbighshire, North Wales, protecting businesses and homes against the devastating impact of flooding, creating jobs and growth in the construction industry.

Chief Secretary to the Treasury, Darren Jones said:

Growth is our national mission, and the cornerstone of our Plan for Change that will improve living standards and put more money in people’s pockets.

And the National Wealth Fund is playing a vital part in delivering economic growth, securing over a billion of private investment since July in industries that turbocharge growth in our economy and create good quality jobs across the UK.

The Chancellor announced in October how the National Wealth Fund would drive long-term investment in Britain, working hand in hand with business to create new high skilled jobs right across the UK, helping make people better off.

To mobilise investment at pace, the NWF will expand on the UK Infrastructure Bank’s offer including additional financial instruments so it is more catalytic and will take on more risk to have a greater impact:

• The NWF has more capital with £27.8 billion – inheriting UK Infrastructure Bank’s £22 billion and having an additional £5.8 billion.
• It has a renewed focus to support the delivery of the wider industrial strategy and the Government’s clean energy and growth missions. At least £5.8 billion of the NWF’s capital will focus on the five sectors announced in the manifesto: green hydrogen, carbon capture, ports, gigafactories and green steel.
• The NWF will have increased resources and focus on conducting more outreach to identify expanded project pipelines and structure innovative transactions.
• It will have a strong regional mandate to unleash the full potential of our cities and regions.