Tag: Treasury

The press release issued by the Treasury on 3 December 1997.

“We want to encourage people to save and invest. We want to build the savings culture. That is good for individuals. It is good for businesses and it is therefore good for the country as a whole,” the Chief Secretary Alistair Darling said at the Proshare Annual Awards dinner in London tonight.

Highlighting the new Individual Savings Account he said:

“Everyone should have the opportunity to provide for themselves – whether they are saving for their future, for their retirement or simply for a rainy day.

ISAs are aimed at encouraging everyone to save. They will be simple, flexible and accessible – something everyone wants and will get.

Our objective is to develop a tax system for savings which benefits the many and not just the few. Half the adult population don’t save. So everyone should have the opportunity to save in a tax-favoured environment, however small the amounts they are able to put aside.

As we promised in our manifesto the ISA builds on the experience of PEPs and TESSAs. That is why investments in ISAs will be tax-free.

We spend 1.3 billion Pounds on tax relief under the present system – rising to 1.7 billion Pounds in 2001-02. Much of this goes to those who can already afford to save significant amounts and to tie their savings up for long periods of time. That isn’t an efficient use of public money. Our objective is to bring in new savers.

Far better and fairer to use the existing provision to bring the benefits of ISAs to a much wider population of savers – possibly encouraging 6 million new savers. That is right in principle and it is fair.”

On investment, he added:

“We must expand our economic capacity and create the right climate for high levels of investment. That is why we have reformed the corporation tax system, removing the distortions that hinder long term, high quality investment. In the last Budget we cut
corporation tax to the lowest level ever. And we intend to cut the main rate again when ACT is abolished in 1999. This further enhances our position as the country with the lowest rate of corporation tax of any major industrialised country and one of the lowest tax burdens on business.”

The press release issued by the Treasury on 3 December 1997.

The UK Government fully supports the programme of economic and financial reform announced today by Korea in agreement with the International Monetary Fund (IMF), Chancellor Gordon Brown said today.

The Chancellor said :

“The UK Government fully supports the IMF programme which has been agreed by  Korea. This programme will involve approximately $21 billion of IMF finance, along with financing from the World Bank and the Asian Development Bank.

“In addition, the UK, together with a number of other countries, has agreed to consider the provision of further financial support for Korea.  This will be made available only  if unanticipated circumstances create the need to supplement resources provided by the International Financial Institutions, while Korea remains in compliance with the IMF arrangements. The UK is willing to consider a contribution of up to $1.25 billion.

“Agreement with the IMF on Korea’s programme of reform marks an important step in restoring confidence in Asia, and in helping safeguard the stability of the world financial system.

“As a major IMF shareholder, the UK believes that acting with the support of the IMF is the right way for the Korean authorities to have handled their financial situation. And as a major World Bank shareholder we support its crucial role in restructuring the
financial sector of the Korean economy.

“As an open economy, the UK benefits from substantial trade and investment flows with Asia and the rest of the world. Global financial stability is crucial if we are to deliver sustained economic prosperity and job creation at home.

“We have a strong national interest in working with our international partners and the IMF to help Korea reform its economy and overcome its present financial difficulties. I welcome today’s announcement.”

The press release issued by the Treasury on 3 December 1997.

The membership and terms of reference of the committee which will consider possible memorials to Diana, Princess of Wales, was announced today by the Chancellor, Gordon Brown.

The Chancellor, who is to chair the Committee, said:

“Diana, Princess of Wales was greatly loved, and I consider it an honour to have been asked by the Prime Minister to chair this important committee. The  public have responded magnificently to my request for proposals for commemorating the work of the  Princess of Wales.  Every one of the 7,000 proposals so far has been carefully read and every one will be taken into account.”

NOTES FOR EDITORS

The Prime Minister asked the Chancellor to chair a committee To consider possible memorials to Diana, Princess of Wales.   The Chancellor’s new committee is to be made up of:

• the Lord Chamberlain, Lord Airlie, representing the
  Royal Household;
• Lady Sarah McCorquodale, representing Earl Spencer
  (who will also attend meetings when he is in the
  country) and the Princess’s family;
• Lord Attenborough;
• Mr Paul Burrell;
• Baroness Chalker;
• Diane Louise Jordan;
• Mr Anthony Julius;
• The Hon Rosa Monckton;
• Jane Tewson.

Its terms of reference are:

“To advise HM Government as to how the life of Diana, Princess of Wales, can best be commemorated, complementing the work of the Diana, Princess of Wales, Memorial  Fund. In taking forward this work, the Committee will take into account the views of   members of the public, and have regard to the charities and causes which the Princess supported.”

The press release issued by HM Treasury on 2 December 1997.

The first edition of a new quarterly report providing greater detail of the UK’s holdings of foreign currency and gold was published jointly today by the Treasury and the Bank of England.

The report shows for the first time the size of the UK’s forward foreign exchange position and the currency composition of the UK’s foreign currency assets.

On publication of the report the Economic Secretary, Helen Liddell said:

“This report is another key step in the Government’s drive towards greater transparency in economic policy making.

“Greater openness improves the quality of economic decisions, strengthens their legitimacy and credibility, and reduces the likelihood of unpredictable and counterproductive reactions in financial markets.”

The report shows that the level of the Government’s reserves, including the forward book was $42.3 billion at end-September, an underlying increase of $50 million on end-June. Net forward holdings of foreign currency were $1.24 billion at end-September.

The level of the Bank of England’s holdings of foreign currency and gold was $1.98 billion at end-September.

The press release issued by HM Treasury on 9 December 2022.

The Chancellor Jeremy Hunt heard directly from oil and gas companies in a Fiscal Forum meeting in Edinburgh this morning (9 December).

The press release issued by HM Treasury on 9 December 2022.

Chancellor of the Exchequer Jeremy Hunt today unveiled the “Edinburgh Reforms” of UK financial services – over 30 regulatory reforms to unlock investment and turbocharge growth in towns and cities across the UK.

• Chancellor of the Exchequer Jeremy Hunt unveils new “Edinburgh Reforms” of financial services, to help turbocharge growth and deliver a smarter and home-grown regulatory framework for the UK – that is both agile and proportionate.
• Speaking at an industry roundtable in Edinburgh today, the Chancellor will announce new plans to seize the benefits of Brexit by setting out a detailed timeline establishing the government’s approach to repealing burdensome pieces of retained EU law.
• Reforms deliver the next chapter of the government’s vision for UK financial services, set out at Mansion House 2021.

The Chancellor will set out plans to repeal, and replace, hundreds of pages of burdensome EU retained laws governing financial services. This will establish a smarter regulatory framework for the UK that, is agile, less costly and more responsive to emerging trends.

These plans included a commitment to make substantial legislative progress over the course of 2023 on repealing and replacing EU-era Solvency II – the rules governing insurers balance sheets which is expected to unlock over £100 billion of private investment for productive assets such as UK infrastructure.

The financial services sector is vital for Britain’s economic strength, contributing £216 billion a year to the UK economy. This includes £76 billion in tax revenue, enough to fund the entire police force and state school system, while employing over 2.3 million people – with 1.4 million outside London.

As announced in the Autumn Statement, the government will look to announce changes to EU regulations in four other high growth industries by the end of next year, including digital technology, life sciences, green industries and advanced manufacturing.

Chancellor of the Exchequer, Jeremy Hunt said:

We are committed to securing the UK’s status as one of the most open, dynamic and competitive financial services hubs in the world.

The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses.

And we will go further – delivering reform of burdensome EU laws that choke off growth in other industries such as digital technology and life sciences.

Economic Secretary to the Treasury, Andrew Griffith said:

The UK is a financial services superpower – and we have long benefited from, and are committed to, high quality regulatory standards.

Scotland’s role in maintaining our status as the global benchmark for regulation is crucial – with Edinburgh and Glasgow the two largest UK hubs outside of London.

Our reforms deliver smarter regulation of financial services that will unlock growth and opportunity in towns and cities across the UK.

The work to repeal, and where appropriate replace, retained EU law governing the sector has been guided by industry – and split into two initial tranches. These will focus on delivering reform to areas which provide the most significant boost to UK growth and competitiveness, and we will set out further detail on future tranches over time.

Today’s announcement delivers the next chapter in the roadmap for UK announced at Mansion House 2021 for a UK financial services sector that is open, sustainable, and technologically advanced – one that is globally competitive and acts in the interests of communities and citizens. This vision will create jobs, support businesses, and power growth across all four parts of the UK.

A competitive marketplace promoting the effective use of capital

The Edinburgh Reforms ensure that the UK’s financial markets are among the most open and attractive in the world. They deliver this by overhauling the UK prospectus regime to make it more attractive for firms to list and raise capital here; reforming the rules governing Real Estate Investment Trusts, to reduce friction and allow savers to more easily access higher returns; formally reviewing the provision of investment research in the UK, including the effects of the EU’s MiFID unbundling rules, which aren’t applied in leading markets such as the US; and working with the regulators and companies to trial a new class of wholesale market venue that operates on an intermittent basis – improving companies access to capital before they publicly list.

The government has also announced that the ring-fencing regime will be reformed in response to the recommendations of the Skeoch Review – including by freeing retail focussed banks from the regime – easing unnecessary regulatory burdens on firms while maintaining protections for depositors.

The Chancellor has also issued new remit letters to the Financial Conduct Authority and Prudential Regulation Authority emphasising the new secondary competitiveness objectives. Regulators will have a duty to facilitate, subject to aligning with relevant international standards, the international competitiveness of the UK economy and its growth in the medium to long term.

We are committed to seeing financial service firms deploy more capital in productive assets such as UK infrastructure and low carbon and clean energy. This will be facilitated by Long-Term Asset Funds – a new type of fund structure tailored to the UK market, replacing the EU’s ineffective European Long Term Investment Fund regime, which will be repealed from the UK rulebook. The LTAF regime has recently seen its first application from an issuer of this new type of fund.

Delivering for consumers

The government is committed to enabling consumers to access the benefits of new products and technologies, while ensuring they remain protected. To support this, the government is today publishing its first consultation on proposals to modernise the Consumer Credit Act – simplifying the regime to encourage innovation in the credit sector and cutting costs for consumers and businesses.

A sector at the forefront of innovation and technology

The reforms build on the UK’s desire to harness the benefits of emerging technologies, including committing to shortly publish a consultation on proposals to establish a UK Central Bank Digital Currency– which could one day see Brits using a digital pound, capturing the benefits of the underlying blockchain technologies. Other measures will see the Investment Management Exemption extended to cryptoassets, ensuring more overseas investment can flow into the sector – and the government has recommitted to establishing the Financial Markets Infrastructure Sandbox in 2023, allowing firms and regulators to safely test, adopt and scale new technologies that could transform financial markets.

A world leader in sustainable finance

The UK is working to become the world’s first net-zero aligned financial centre, and today’s measures will further deliver on this ambition, including by committing to publish a new green finance strategy in early 2023, and to consult on bringing Environmental, Social and Governance (ESG) ratings providers into the City Watchdog’s regulatory perimeter, to ensure these products are transparent and use consistent standards. Achieving this ambition will see more investment in sustainable energy supplies such as nuclear, hydrogen and offshore wind – delivering new opportunities and well-paying jobs.

More broadly, the government’s Financial Services and Markets Bill successfully completed its remaining stages in the Commons on Wednesday and is expected to receive Royal Assent by Spring 2023. This further delivers on the government’s vision for financial services, including by bringing certain types of stablecoins within the payments regulatory perimeter; protecting access to cash for millions of people that reply on it; and enabling the Payments Systems Regulator to force banks to reimburse the victims of Authorised Push Payment (APP) fraud.

The press release issued by the Treasury on 8 December 2022.

Exchequer Secretary James Cartlidge hails power of future green technologies in strengthening UK’s energy security.

Mega Amp Spherical Tokamak Upgrade (MAST-U) machine tackles further technical challenges for long-term viability of future fusion powerplants

Experiments test the integration of a high-performance core plasma with strong dissipation in the Super-X divertor configuration

A fusion energy machine vital for the delivery of the UK’s first prototype powerplant has started a crucial second round of experiments to help make ‘star power’ part of the world’s future energy mix.

The United Kingdom Atomic Energy Authority’s (UKAEA) Mega Amp Spherical Tokamak-Upgrade (MAST-U) will run the experiments until the end of January 2023.

Following a visit to UKAEA in Culham, Oxfordshire, earlier this week, Exchequer Secretary to the Treasury, James Cartlidge, said:

“It was an inspiring tour of UKAEA where I was able to see how the UK is developing fusion energy, the process that powers the sun, to generate carbon-free electricity.

“The visit reinforced our commitment to increasing public R&D spending to record levels of £20 billion a year by 2024/25, which includes funding for green tech of the future, like this.”

MAST-U resembles the shape of a cored apple, in contrast to the ring-shaped record-breaking JET (Joint European Torus). This configuration is currently the preferred design for the UK’s prototype fusion plant, STEP (Spherical Tokamak for Energy Production).

Fusion energy offers the potential of an abundant, inherently safe low-carbon electricity supply. It involves fusing hydrogen particles in a hot gas known as a ‘plasma’ to unlock large amounts of energy.

Operating fusion technologies requires a careful balancing act of controlling extreme heat, gas and magnetic fields, amongst other complex systems.

Last year, MAST-U’s novel exhaust system, Super-X, successfully demonstrated its effectiveness by generating a tenfold reduction in the energy fluxes of the plasma channelled out of the machine, which would allow components in future commercial tokamaks to last longer.

The current run of experiments will seek to investigate how the compact tokamak can combine the benefits from this exhaust using different parameters – higher temperature and pressure, and increased performance caused by operating within a stronger magnetic field – as well as improving shape control of the plasma within the machine.

The core plasma shape will be controlled in real-time and in collaboration with General Atomics.

MAST-U’s experiments will also support the study of detachment physics – reduction of pollution of the core plasma by impurities coming from the wall – for EUROfusion, a consortium of national research institutions located in the EU, Switzerland, UK and Ukraine.

The phased work will investigate how plasma confinement can be optimised for future powerplant conditions.

Commenting on the new experiments, Professor Fulvio Militello, Director of Tokamak Science, UKAEA, said:

“To create fusion in a powerplant, a plasma must be sustained inside a tokamak whilst optimising three conditions: temperature, density and confinement time.

“The new round of experiments conducted by MAST-U will test the integration of a high-performance core plasma with strong dissipation in the Super-X divertor configuration.”

Results from the experiments will contribute to the success of the government-funded STEP programme, which is aiming to demonstrate the feasibility of putting fusion energy on the grid, targeting operations by 2040.

MAST-U achieved its first plasma in 2020 after it was rebuilt to enable higher performance, including longer times plasmas are held in confinement, increased heating power and a stronger magnetic field, alongside its innovative plasma exhaust system.

“UKAEA is exploring pathways to compact and affordable fusion machines and believes the apple-core design holds real promise” continued Professor Militello.

As well as STEP, MAST-U will also aid preparations for ITER – the world’s largest science megaproject, now being built in the South of France, which intends to demonstrate the viability of fusion on an industrial scale.

The press release issued by HM Treasury on 8 December 2022.

John Gerard McGarvey, 37, from Rutherglen, has been disqualified as a director for 11 years after claiming two separate Bounce Back Loans totalling £100,000, and then using the money for personal benefit.

McGarvey was the sole director of CKO Civil Engineering and Surveying Limited, which was incorporated in October 2019 and ran as a surveyor’s firm based in Kirkinitlloch in Scotland until it went into liquidation in November 2021.

CKO applied for a Bounce Back Loan of £50,000 in July 2020, with McGarvey stating the company had a previous year’s turnover of £225,000.

Bounce Back Loans were government-backed loans introduced to support businesses through the pandemic. Under the rules of the scheme, companies could apply for loans of up to 25% of their 2019 turnover, allowing them to borrow from £2,000 to a maximum of £50,000, as long as the money was to be used for the economic benefit of the business.

Businesses were not allowed to apply for an additional loan unless they had originally borrowed less than the maximum amount.

But CKO applied for a second Bounce Back Loan of £50,000 just four weeks later, in August 2020. This time McGarvey applied to a different bank and stated that the business had a previous year’s turnover of £218,000.

The company struggled to survive post-Covid, and went into liquidation owing around £183,000, which triggered an Investigation by the Insolvency Service.

Investigators discovered that McGarvey had applied for two loans – which was against the rules of the scheme – and had exaggerated CKO’s turnover both times. The company’s most recent accounts showed a turnover of only around £46,400.

They also discovered that McGarvey had used the full £100,000 for his own gain, rather than to support his business.

The Secretary of State accepted a disqualification undertaking from John Gerard McGarvey after he did not dispute he caused CKO to receive two Bounce Back Loans totalling £100,000 to which the business wasn’t entitled, and then used money for his personal benefit, rather than for the economic benefit of the business.

His disqualification started on 28 October this year and lasts for 11 years.

The disqualification undertaking prevents McGarvey from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Steven McGinty, Investigation Manager, said:

“Not only did John McGarvey grossly exaggerate the company’s turnover to secure an initial loan, he also applied to a second bank for another loan his company wasn’t entitled to. To compound his actions, he used the money for his personal gain.

“His 11-year ban should serve as a warning that if you abuse government support, we will use our full powers to bring you to account.”

The press release issued by the Treasury on 7 December 2022.

Rising costs and interest rates across the economy are a cause of concern for consumers in many areas of their lives, but the government understands that mortgage borrowers may be particularly worried about increases to their monthly mortgage payment, which is likely to be their largest monthly outgoing payment.

Today, 7th December, the Chancellor met with leaders of the UK’s major mortgage lenders, the Chair of the Financial Conduct Authority (FCA), and Martin Lewis of Money Saving Expert. They discussed how lenders provide support for those who encounter problems paying their mortgage.

At the meeting, lenders committed to help all their customers by:

• enabling customers who are up to date with payments to switch to a new competitive, mortgage deal without another affordability test (see further information 1)
• providing well-timed information to help customers plan ahead should their current rate be due to end
• offering tailored support to those who start to struggle with payments which will vary by lender, but may include extending the term of the mortgage to make monthly payments lower, a short term reduction in monthly payments or accepting interest-only payments for a period where appropriate (see further information 2)
• ensuring highly trained and experienced staff are on hand to help where needed

The government confirmed:

• action to make Support for Mortgage Interest easier to access; if you are on Universal Credit you may be able to receive help with your mortgage interest payments after three months
• record levels of funding for the Money and Pensions Service to provide debt advice in England

The FCA announced:

• a consultation on draft guidance clarifying how lenders can support borrowers impacted by the rising cost of living
• information for borrowers on the options and support available if they are struggling with payment

Sound money and a stable economy are the best ways to deliver lower mortgage rates, more jobs and long-term growth. Economic stability relies on fiscal sustainability and the Autumn Statement delivered on 17th November puts the public finances onto a sustainable footing, with debt falling.

Mortgage lenders, the FCA and the government will continue working closely together to ensure that the mortgage market works well for all homeowners, in particular those facing financial difficulty. Discussions will continue to take place with lenders on what more they are able to do to inform and support their customers going forward. However, if you are worried about making your mortgage repayments, it is important to speak to your lender as soon as possible.

Martin Lewis, founder of MoneySavingExpert.com, said:

“The major concern for people’s mortgages – and the knock-on impact of mortgage increases on rents – is the situation in the spring, when we expect interest rates to be higher, energy prices to be rising, and other cost of living impacts.

“So the most important thing is that now the conversations have started about what flexibility and forbearance measures can be put in place to help those struggling. The commitments today set a good direction, and after helpful conversations I’m hopeful that further progress will be made. For those worried about making mortgage repayments, the sooner you communicate with your lender the better.”

Debbie Crosbie, CEO of Nationwide Building Society, said:

“We are a mutual and helping members buy and stay in their home is central to what we do. We’ve reduced rates for those reaching the end of their deals so they can access a fixed rate below 5%, regardless of LTV or tenure. For additional support, our options include term extensions and forbearance tailored to individual circumstances. We’ve also given an additional £1 million to debt charities and partners to support people in financial hardship.”

David Duffy, CEO of Virgin Money, said:

“We know that many of our customers will have to make difficult decisions in the current economic environment, and we are being proactive in offering our support to those in need. Today’s commitments represent an important step in ensuring that consumers are well supported in the coming period.”

Matt Hammerstein, CEO of Barclays UK, said:

“We are committed to helping every borrower manage their repayments while adjusting to the current environment. The announcements made by the Government and mortgage lenders today to ensure support is available for those who may or do encounter challenges making mortgage payments, both now and in the future, are a critical part of that.

“At Barclays, we always work with our customers to find any feasible way to keep them in their home, which is why we have a dedicated team who are trained to offer dedicated and tailored support to each individual borrower, using a wide range of support options. We also have a variety of tools and information available to help customers directly manage their finances and stay in control, as we know some prefer to do that on their own, including information on what steps to take if they are struggling. We also know some customers may be more comfortable speaking to an independent third party, so we also help customers be in touch with our debt advice partners, including Citizens Advice, StepChange and the National Debtline.”

Mike Regnier, CEO of Santander UK, said:

“We welcome HM Treasury’s involvement to support mortgage borrowers through the challenges posed by the increase in cost of living and are keen to continue to work collaboratively with the Government, supervisors, and the wider industry on this issue.

“We remain fully committed to supporting customers who may face additional pressures on their finances over the months ahead.”

Alison Rose, CEO of NatWest Group, said

“Through these incredibly difficult times it is our priority to support people, families and businesses throughout the country and help navigate them through this economic uncertainty. We encourage anyone who is experiencing financial difficulty or is just worried about the future to get in touch and talk to us. We have highly trained colleagues who are there to listen, understand and work with them to find a way forward.

“Support for our customers will be tailored to their individual needs, and could include such things as forbearance, breathing space, repayment plans, or if it’s right and affordable for the customer, extending a mortgage term to spread payments or a temporary switch to an interest only mortgage. We have proactively contacted customers 8 million times so far this year to help them to get more control over their finances, and we will continue to play an active role in supporting customers and communities across the country.”

Jasjyot Singh OBE, CEO of Consumer Lending, Lloyds Banking Group, said:

“We’re committed to making homeowners feel supported in the coming months. We want to talk to anyone who feel like they might be facing difficulty so that we can find appropriate, tailored solutions. The earlier we talk to someone who might be struggling, the more tools we have to help. We will continue to work closely with the Government and the FCA to ensure the best support for our mortgage customers.”

Ian Stuart, CEO of HSBC UK, said:

“HSBC UK has a programme in place for proactively reviewing where hardship might be on the horizon, and helping prevent customers from falling into financial difficulty. We also work closely with customers already experiencing financial difficulty to understand their individual circumstances and identify the right solution for them.

“For mortgage customers experiencing financial difficulty we stand ready to help and have a number of options available that are tailored to individual circumstances. We would strongly encourage people not to wait until they are in financial difficulty before seeking help. The earlier they can engage with their lender the better.”

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said:

“Most borrowers are able to keep up with their mortgage payments and should continue to do so. But if you’re struggling to pay your mortgage, or are worried you might, you don’t need to struggle alone. Your lender has a range of tools available to help, so you should contact them as soon as possible.”

Further information

1 – Applies to 97% of the mortgage market, where customers are up to date with payments and not seeking to borrow more or change their repayment type or term.

2 – For some customer solutions there may be an impact on the borrower’s credit rating.

The press release issued by HM Treasury on 6 December 2022.

Savio Gilbert Pereira, 46, and Sajid Anver Valimohammed, 37, have been disqualified as company directors for a total of 19 years following separate Insolvency Service investigations which uncovered financial misconduct.

Pereira, of Market Harborough was sole director of Himalayan Zest Takeaway Limited, which was incorporated in April 2018 and traded as Himalayan Zest on Market Street in Lutterworth until it went into liquidation in November 2021.

In June 2020, Pereira applied for a Bounce Back Loan on behalf of Himalayan Zest. Bounce Back Loans were government-backed loans designed to help businesses stay afloat during the Covid-19 pandemic.

Under the rules of the scheme, companies could apply for loans of between £2,000 and £50,000, up to a maximum of 25% of their turnover for 2019.

Pereira stated that Himalayan Zest’s turnover was around £207,500, which allowed the restaurant to receive the maximum £50,000 loan.

When the business went into liquidation the following year owing around £51,500, it triggered an investigation by the Insolvency Service which found that Pereira had exaggerated Himalayan Zest’s turnover in order to falsely claim the loan.

Investigators discovered that the company only had around £54,600 in its bank account following receipt of the Bounce Back Loan, and between June and August that year, Pereira had made a £10,000 payment to himself, £28,000 in various debit payments to an unknown recipient and had withdrawn a total of £16,800 in cash.

Pereira was unable to prove that these transactions were for the economic support of the restaurant.

A second director, Sajid Anver Valimohammed, of Leicester, was director of J Dee Designs Ltd, which was incorporated in July 2019 and traded as a fashionwear finisher from Upper Charnwood Street in Leicester until it went into liquidation in December 2020.

But Valimohammed had failed to keep business accounts and records – a legal requirement of company directors – and was unable to hand them over to the company’s liquidators, which led to an investigation by the Insolvency Service.

Investigators discovered that Valimohammed had withdrawn more than £286,000 from the company bank account through 199 separate transfers with the reference ‘Mrref Self FT’ during the time J Dee Design was in business.

They found that around £315,300 was withdrawn from J Dee Design’s bank account during the period – including £30,000 from a Bounce Back Loan that the company had applied for – but Valimohammed could not prove that the transactions were for legitimate trading activity, or whether the loan money had been used for the benefit of the company.

And due to his failure to keep company accounts, investigators were also unable to verify whether J Dee Designs had paid the correct amount of tax it owed, or to ascertain the true financial position of the company when it went into liquidation, including whether liquidators would be able to make any recovery of debts.

Valimohammed did not contest the disqualification order at court and was banned from being a director for 8 years on 9 November this year. His ban began on 30 November and the court also awarded full costs to the Insolvency Service.

Separately, the Secretary of State accepted a disqualification undertaking from Savio Pereira in October, after he did not dispute that he had caused his restaurant to falsely apply for a Bounce Back Loan of £50,000, and had failed to use the money for the economic benefit of the company.

Pereira’s disqualification started on 15 November this year and lasts for 11 years. The bans prevent the two directors from directly or indirectly becoming involved in the promotion, formation or management of a company, without the permission of the court.

Dave Elliott, Chief Examiner at The Insolvency Service, said,

“The Insolvency Service takes Bounce Back Loan abuse and the failure to keep, preserve and deliver up books and records very seriously.

“The length of these directors’ bans reflects the gravity of their misconduct, and should serve as a warning to others.”