Tag: Treasury

The press release issued by HM Treasury on 18 October 2022.

Lord Jitesh Gadhia, Sabine Chalmers and Tom Shropshire will take up their roles at the Bank’s Court in the coming months.

Her Late Majesty Queen Elizabeth the Second approved the appointment of three new non-executive directors (NEDs) of the Court of the Bank of England. These appointments will be made by the King.

The new NEDs will take up their roles at the Bank’s Court in the coming months for terms lasting four years.

The Bank’s Court acts as the governing body responsible for setting the organisation’s strategy, budget and taking key decisions on resourcing and appointments. The Court is not responsible for the matters reserved to the Bank’s main policy committees, the Monetary Policy Committee, the Financial Policy Committee and Prudential Regulation Committee.

Jeremy Hunt, the Chancellor of the Exchequer, said:

“I am delighted to be able to announce the appointment of Lord Jitesh Gadhia, Sabine Chalmers and Tom Shropshire. Each of them will bring immense skill and experience to the Bank’s Court.

“I look forward to continuing to work closely with the Bank’s leadership, and remain fully committed to its independence.”

Andrew Bailey, Governor of the Bank of England, said:

“I am very pleased to welcome Lord Jitesh Gadhia, Sabine Chalmers and Tom Shropshire as non-executive directors of Court. Their varied experiences make them invaluable additions to Court and the running of the Bank. I look forward to working with them all.”

David Roberts, incoming Chair of Court, said:

“I am delighted to welcome Jitesh, Tom and Sabine to the Bank’s Court of Directors. They will bring fresh insights, deep wisdom and wide experience to help Court fulfil its role of promoting the good of the people of the United Kingdom.”

About the appointments

The Bank of England is the central bank of the UK. It is governed by the board of directors known as the Court of Directors. Further information can be found at the Bank of England website.

All members of the Court are appointed by the Crown on the recommendation of the Prime Minister and the Chancellor of the Exchequer.

All appointments to the Court are made on merit and political activity plays no part in the selection process.

These appointments are regulated by the Commissioner for Public Appointments, who provides independent assurance that appointments are made in accordance with the Government’s Principles of Public Appointments and Governance Code.

About Lord Jitesh Gadhia

Lord Jitesh Gadhia has over 25 years of investment banking and financial services experience, having held senior positions at Blackstone, Barclays Capital, ABN AMRO and Baring Brothers. Lord Gadhia currently serves on the boards of Rolls-Royce Holdings plc, Taylor Wimpey plc and Compare The Market Limited. He previously served on the boards of UK Financial Investments Limited (UKFI) and UK Government Investments Limited (UKGI).

About Sabine Chalmers

Sabine Chalmers is general counsel, company secretary, and director of regulatory affairs at BT. Sabine was previously chief legal and corporate affairs officer and company secretary of Anheuser-Busch InBev. Sabine is currently a non-executive director at Anheuser-Busch InBev and has also served as a non-executive director at Coty.

About Tom Shropshire

Tom Shropshire is the general counsel and company secretary of Diageo plc. Prior to this, he was a partner at Linklaters LLP, where he was global head of the US Practice, founder and co-head of the Risk and Resilience Practice and a member of their executive committee.

Footnotes:

In accordance with the original Nolan principles, there is a requirement for appointees’ political activity (if any is declared) to be made public. Lord Jitesh Gadhia was appointed as a Conservative Peer in 2016 and he became a non-affiliated member of the House of Lords in February 2017. Sabine Chalmers and Tom Shropshire have confirmed they have not engaged in any political activity in the last five years.

The press release issued by HM Treasury on 18 October 2022.

Families could save up to £2,000 a year towards their childcare costs to help pay for October half-term holiday clubs and wraparound care during the school terms, reminds HM Revenue and Customs (HMRC).

More than 391,000 families saved money on their childcare costs in June 2022, worth a total of £41.6 million in top-up payments, and HMRC is urging thousands of other families to not miss the chance to save up to £500 every 3 months, or £1,000 if their child is disabled.

Families can sign up to Tax-Free Childcare to help pay for holiday clubs, before and after-school clubs, childminders and nurseries, and other approved childcare schemes. It is available to families with children up to the age of 11, or 17 if their child has a disability.

The government will pay 20% of childcare costs by topping up the money paid into a Tax-Free Childcare account. This means for every £8 paid into the online account, families will automatically receive an additional £2 in government top-up.

Families can find out more about Tax-Free Childcare via the Childcare Choices website.

Myrtle Lloyd, HMRC’s Director General for Customer Services, said:

Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs. It’s easy to register – search ‘Tax-Free Childcare’ on GOV.UK.

For thousands of families who use Tax-Free Childcare, the money they save each month on their childcare costs is money that goes back into their pockets. Accounts can be opened at any time of the year and can be used straight away, money can be deposited at any time and used when needed. Any unused money that is deposited can be simply withdrawn at any time.

More than one million families in the UK are entitled to some form of government childcare support and the government is encouraging those eligible to not miss out on their entitlements. Families can find out what childcare support is best for them via Childcare Choices.

The press release issued by HM Treasury on 17 October 2022.

The press release issued by the Treasury on 17 October 2022.

• The ‘Energy Markets Financing Scheme’ opens today to help support viable energy firms with major operations in the UK from the unprecedented volatility triggered by Russia’s illegal invasion of Ukraine.
• These firms will be able to apply for government-backed guarantees to secure commercial financing and meet large margin calls from energy price volatility.
• Following a rigorous approval process, a 100% guarantee will be issued to commercial banks on additional lending for approved firms. The Government will only be liable if a firm defaults on their repayment.

Russia’s brutal and illegal invasion of Ukraine has led to unprecedented volatility in wholesale energy markets. Over the past month, natural gas futures prices have been changing by more than 15% a day.

This backstop scheme will help firms facing temporary short-term financing problems.  The EMFS will allow commercial banks to provide larger credit lines to approved energy firms that are unable to meet extraordinary margin calls due to large moves in energy prices.

This vital intervention will help support wider confidence in the energy market and could help reduce the eventual cost of energy for businesses and consumers.

The scheme will be open to firms of good credit quality playing a significant role in UK energy markets, as generators, shippers or suppliers. They must currently operate in the UK energy market and must be, or have an entity which is, Ofgem-licensed. Firms will need to demonstrate they are facing large liquidity needs from margin calls when hedging their energy price risk. The EMFS is broadly similar to schemes launched in Germany, Finland and Sweden.

Chancellor of the Exchequer, Jeremy Hunt, said:

“A resilient energy market is vital as we all grapple with the consequences of Putin’s horrifying invasion of Ukraine and his decision to weaponise Russia’s energy reserves.

“Today we are continuing to act to ensure the market itself is secure, significantly reducing any risk of market failure.”

Governor of the Bank of England, Andrew Bailey, said:

“The volatility in energy markets we have seen in recent months, caused by Russia’s invasion of Ukraine, has resulted in a number of energy firms facing extraordinary liquidity requirements.

“This scheme will provide short-term financial support for these firms so they can weather this period, while also supporting the wider resilience of energy markets in the UK.”

From today, the Bank will screen initial applications for eligibility. HM Treasury will then robustly assess the credit risks and limits before giving final approval. The Bank will then issue a 100% guarantee to the energy firms’ existing commercial bank or banks they use for additional lending. Whilst using the scheme, energy firms will be required to comply with a set of policy conditions, such as restrictions on the use of funds, executive pay, and capital distributions.

Firms have three months to apply and once approved will be able to benefit from a guarantee for a further 12 months.

State owned firms and energy firms owned by financial institutions and commodity trading houses will not be eligible for the scheme.

The ‘Energy Markets Financing Scheme’ was announced on 8 September 2022 alongside the Energy Price Guarantee, with further details confirmed as part of the Government’s Growth Plan on 23 September 2022.

The press release issued by the Treasury on 17 October 2022.

The EMFS was announced by the Prime Minister on 8 September, and in The Growth Plan the then Chancellor confirmed that it will provide a 100% guarantee to commercial banks to provide additional lending to energy firms.

Delivered with the Bank of England, this scheme addresses the extraordinary liquidity requirements faced by energy firms operating in UK wholesale gas and electricity markets as a result of margin calls.

Energy prices have been high and volatile in recent months. As a result, large amounts of collateral are required to enter into contracts firms use to effectively insure themselves from price fluctuations, or otherwise firms must accept large credit exposures to their counterparties.

The details of the scheme are being announced today, and firms can start to apply via the Bank of England. Applications will be accepted for a period of three months.

The scheme is aimed at providing a backstop to support energy firms facing large and unexpected margin calls. Pricing and conditions will reflect this objective. The scheme will provide resilience to energy markets and therefore help to reduce the eventual cost for businesses and consumers.

Further details on the structure of the scheme can be found on the Bank of England’s website and the market notice published today. To apply to the scheme please contact EMFS-Applications@bankofengland.co.uk

Scheme Eligibility
As part of the application process, firms will need to demonstrate that they meet the eligibility criteria.

The EMFS is intended to support energy firms who are facing short term liquidity challenges but would be otherwise in sound financial health. Eligibility will be considered based on the following criteria:

Firms must demonstrate they are in sound financial health (firms must be otherwise solvent and solvency will be assessed through robust due diligence processes)
Firms must be Ofgem-licensed (or have an Ofgem-licensed entity), and have a pre-existing relationship with an approved commercial bank or banks;
In addition, firms must also demonstrate they are making a material contribution to UK energy markets through meeting one or more of the requirements outlined below:

They make material contribution to the UK electricity or gas markets and can demonstrate that they are likely exposed to large margin calls;

They are heavily inter-connected and the loss of activity would have a significant impact on markets or other energy firms.

Eligibility will be assessed by the Bank of England and an Advisory Committee convened by HMT, who will make a recommendation for the Chancellor to make a decision to approve or reject each application.

Eligible firms who wish to apply for a guarantee will be required to comply with a set of policy conditions, such as restrictions on executive pay and capital distributions. For the full list of conditions, please refer to the market notice.

Financial institutions, state owned enterprises or commodity trading houses are not eligible for this scheme. State owned enterprises should seek to access alternative support from their relevant governments before approaching the Government.

Application process
Firms can apply to the scheme for the next three months. Each loan facility agreement will last up to 12 months and will begin from when the guarantee is issued by the commercial lender.

Applications will be assessed initially by the Bank of England, and then by Advisory Committee, who will make a recommendation for the Chancellor to decide whether to approve or reject an application.

The press release issued by the Treasury on 17 October 2022.

The Chancellor will make a statement later today, bringing forward measures from the Medium-Term Fiscal Plan that will support fiscal sustainability.

He will also make a statement in the House of Commons this afternoon.

This follows the Prime Minister’s statement on Friday, and further conversations between the Prime Minister and the Chancellor over the weekend, to ensure sustainable public finances underpin economic growth.

The Chancellor will then deliver the full Medium-Term Fiscal Plan to be published alongside a forecast from the independent Office for Budget Responsibility on 31 October.

The Chancellor met with the Governor of the Bank of England and the Head of the Debt Management Office last night to brief them on these plans.

The press release issued by the Treasury on 17 October 2022.

The Chancellor of The Exchequer Jeremy Hunt has today, Monday 17 October, brought forward a number of measures from 31 October’s Medium-Term Fiscal Plan.

• Changes designed to ensure the UK’s economic stability and provide confidence in the government’s commitment to fiscal discipline
• Basic rate of income tax to remain at 20% until economic conditions allow for it to be cut, IR35 and dividend tax rate reforms no longer going ahead
• Treasury-led review of energy support after April 2023 launched

Following conversations with the Prime Minister, the Chancellor has taken these decisions to ensure the UK’s economic stability and to provide confidence in the government’s commitment to fiscal discipline. The Chancellor made clear in his statement that the UK’s public finances must be on a sustainable path into the medium term.

Today’s announcement represents another down payment following the reversal of the corporation tax cut announced on Friday 14 October by the Prime Minister. The Chancellor will publish the government’s fiscal rules alongside an OBR forecast, and further measures, on 31 October.

In his statement the Chancellor announced a reversal of almost all of the tax measures set out in the Growth Plan that have not been legislated for in parliament. The following tax policies will no longer be taken forward:

• Cutting the basic rate of income tax to 19% from April 2023. While the government aims to proceed with the cut in due course, this will only take place when economic conditions allow for it and a change is affordable. The basic rate of income tax will therefore remain at 20% indefinitely. This is worth around £6 billion a year.
• Cutting dividends tax by 1.25 percentage points from April 2023. The 1.25 percentage points increase, which took effect in April 2022, will now remain in place. This is valued at around £1 billion a year.
• Repealing the 2017 and 2021 reforms to the off-payroll working rules (also known as IR35) from April 2023. The reforms will now remain in place. This will cut the cost of the government’s Growth Plan by around £2 billion a year.
• Introducing a new VAT-free shopping scheme for non-UK visitors to Great Britain. Not proceeding with this scheme is worth around £2 billion a year.
• Freezing alcohol duty rates from 1 February 2023 for a year. Not proceeding with the freeze is worth approximately £600 million a year. The next steps of the Alcohol Duty Review announced in Growth Plan 2022 will continue as planned. The alcohol duty uprating decision and interactions with the wider reforms to alcohol duties under the Alcohol Duty Review will be considered in due course.

This follows on from the previously announced decisions not to proceed with the Growth Plan proposals to remove the additional rate of income tax and to cancel the planned increase in the corporation tax rate.

Taken together, these changes are estimated to be worth around £32 billion a year.

The government’s reversal of the National Insurance increase and the Health and Social Care Levy, and the cuts to Stamp Duty Land Tax, will remain benefitting millions of people and businesses. The £1 million Annual Investment Allowance, the Seed Enterprise Investment Scheme and the Company Share Options Plan will also continue to further support business investment.

Energy bills support review

The government has announced unprecedented support within its Growth Plan to protect households and businesses from high energy prices. The Energy Price Guarantee and the Energy Bill Relief Scheme are supporting millions of households and businesses with rising energy costs, and the Chancellor made clear they will continue to do so from now until April next year.

However, looking beyond April, the Prime Minister and the Chancellor have agreed that it would be irresponsible for the government to continue exposing the public finances to unlimited volatility in international gas prices. A Treasury-led review will therefore be launched to consider how to support households and businesses with energy bills after April 2023. The objective of the review is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need. The Chancellor also said in his statement that any support for businesses will be targeted to those most affected, and that the new approach will better incentivise energy efficiency.

The government is prepared to act decisively and at scale to regain the country’s confidence and trust. The Chancellor stated in his speech that there will be more difficult decisions to take on both tax and spending. This means doing what is needed to lower debt in the medium term and to ensure that taxpayers’ money is well spent, putting public finances on a sustainable footing.

In light of this, government departments will be asked to find efficiencies within their budgets. The Chancellor is expected to announce further changes to fiscal policy on 31 October to put the public finances on a sustainable footing.

The press release issued by the Treasury on 14 October 2022.

The government has today, Friday 14 October, announced that Corporation Tax will increase to 25% from April 2023 as already legislated for, raising around £18 billion a year and acting as a down payment on its full Medium-Term Fiscal Plan.

• The Prime Minister has set out that the way the government is delivering on its mission to achieve a low tax, high wage, high growth economy is to change.
• The legislated increase in the Corporation Tax rate from April 2023 will go ahead, with most small businesses benefitting from the new small profits rate.
• Chancellor Jeremy Hunt will deliver the Medium-Term Fiscal Plan on 31 October, detailing action to get debt falling as a percentage of GDP over the medium term.

The decision has been taken in recognition of the need to ensure the UK’s economic stability and reassure markets of its commitment to fiscal discipline, after elements of September’s Growth Plan went further and faster than markets were expecting.

The Prime Minister has set out that the government is prepared to do whatever is necessary to ensure debt is falling as a share of the economy in the medium term and to ensure that taxpayers’ money is well spent, putting public finances on a sustainable footing.

The previously announced small profits rate of Corporation Tax will be maintained. Smaller or less profitable businesses will not pay the full 25% rate, and companies with less than £50,000 of profit – the large majority – will not see any increase at all, continuing to pay Corporation Tax at 19%.

The UK’s corporate tax regime will remain competitive and supportive of growth at the 25% rate, continuing to be the lowest rate in the G7. As part of the forthcoming tax review, the government will look at how the tax system can go further to promote growth and investment.

The government is committed to growing the economy and taking forward supply-side reforms that will ignite strong and sustained growth that delivers prosperity for the UK.

Chancellor of the Exchequer Jeremy Hunt will set out the government’s Medium-Term Fiscal Plan on 31 October, alongside a full forecast from the independent Office for Budget Responsibility.

The press release issued by the Treasury on 10 October 2022.

The Cabinet Secretary, with the approval of the Prime Minister and in agreement with the Chancellor of the Exchequer, has appointed James Bowler as the new Permanent Secretary to the Treasury.

James is currently Permanent Secretary for the Department for International Trade and was previously Permanent Secretary in the Cabinet Office. James brings to the role a wealth of knowledge and experience of HM Treasury from over 20 years in the department, combined with experience working with business and representing Britain internationally from his time at DIT.

James will have overall responsibility for managing the department, will supervise Treasury policy development, and will be the principal adviser to the Chancellor and his Ministerial team.

The Cabinet Secretary and the Permanent Secretary have announced Cat Little and Beth Russell as Second Permanent Secretaries. Cat has worked as the Director General of Public Spending since March 2020 and previously worked at the Ministry of Justice, the Ministry of Defence and spent over a decade in the private sector. Beth has worked for the Treasury for more than 20 years, most recently as the Director General of Tax and Welfare; she also currently heads up the Darlington Economic Campus.

These appointments have been made by the Cabinet Secretary, with the approval of the Prime Minister and in agreement with the Chancellor of the Exchequer, The Rt. Hon. Kwasi Kwarteng MP.

Chancellor Kwasi Kwarteng said:

I’m delighted to welcome James back to the Treasury and Beth and Cat into their new roles as Second Permanent Secretaries. James joined the Civil Service over 20 years ago and has enormous experience delivering across a range of Government departments. Beth and Cat bring experience and continuity and it’s fantastic to have them as part of the Treasury’s top team.

James has a proven track record of delivery and strong leadership, both of which will be vital as we drive towards our mission of igniting growth and raising living standards for everyone across the UK.

Cabinet Secretary Simon Case, said:

James is one of our most expert and experienced economic policy makers, who has served many chancellors over the last two decades. I am delighted for James and congratulate him on his appointment.

I would like to thank Cat and Beth for their excellent leadership of the Treasury over recent weeks and congratulate them both on their substantive promotion to Second Permanent Secretaries. HMT is at the heart of the government’s plan for growth and I know James, supported by Cat and Beth, will bring dedicated leadership to deliver on this agenda for the government and the country.

James Bowler said:

I am delighted to be returning to HM Treasury. Having spent over 20 years at the Department, I know first-hand the excellence of its people. I plan to bring my wider experience back to the Department to help navigate the opportunities and challenges of the global economy that lie ahead. I look forward to working with the Chancellor as part of a strong team alongside the proven experience and talent of Beth Russell and Cat Little.

Beth Russell and Cat Little said:

Working for the Treasury and delivering for the public are privileges – we’re both honoured to be chosen and we look forward to working with the Chancellor, James and the whole ministerial and official team as we continue to deliver for the country.

Notes to Editors

James Bowler

James has over 20 years experience in the Treasury, including as head of tax and then spending policy. He has led multiple Spending Reviews and Budgets at Treasury and was also Principal Private Secretary in Number 10. He has worked in senior roles in Cabinet Office and the Ministry of Justice. James has also helped lead international trade deal negotiations including with India, Trans-Pacific and Australia. James has been a Permanent Secretary since September 2020, first in the Cabinet Office and then in his current role at DIT.

Cat Little

Cat spent over a decade in the private sector dedicated to government and public sector finance at professional services firm PwC. Since joining government in 2013, Cat has led finance, digital and commercial teams in MoJ and most recently as Director General Finance at the MoD. Cat has been Director General of Public Spending since March 2020 and led the comprehensive spending review in 2021. Cat also is head of the Government Finance Function, leading over 10,000 finance professionals across Government, and will continue in this role alongside her new position as second permanent secretary.

Beth Russell

Beth has worked for over 20 years in the Treasury, most recently as Director General Tax and Welfare, Director Personal Tax Welfare and Pensions, and Principal Private Secretary to the Chancellor. Over the last year, Beth has been heading up the new Darlington Economic Campus (DEC) and will continue to be based in Darlington in this new role. DEC will eventually have 1100 new roles across 8 government departments.

The process to recruit the First Permanent Secretary to HM Treasury ran over three weeks. Given the seniority of the job, the process was only open to existing Permanent Secretaries. Candidates were interviewed by a panel including the First Civil Service Commissioner, the Lead NED for HM Treasury and the Cabinet Secretary. Candidates also met with the Chancellor as part of the process. As with all Permanent Secretary appointments, the Prime Minister’s approval was required.

The process to recruit the Second Permanent Secretaries at HM Treasury ran over four months, following Charles Roxburgh’s departure. The competition was open to external candidates. Candidates were interviewed by a panel including the First Civil Service Commissioner, the Lead NED for HM Treasury and the Cabinet Secretary. As with all Permanent Secretary appointments, the Prime Minister’s approval was required.

The press release issued by the Treasury on 5 October 2022.

Tens of thousands of teenagers in the UK who have not yet claimed their matured Child Trust Funds savings could have thousands of pounds waiting for them, reminds HM Revenue and Customs (HMRC).

Child Trust Funds are long-term savings accounts set up for every child born between 1 September 2002 and 2 January 2011. To encourage future saving and start the account, the government provided an initial deposit of at least £250.

The savings accounts mature when the child turns 18 years old. Eligible teenagers, who are aged 18 or over and have yet to access their Child Trust Fund account, could have savings waiting for them worth an average of £2,100.

If teenagers or their parents and guardians already know who their Child Trust Fund provider is, they can contact them directly. This might be a bank, building society or other savings provider.

Many eligible teenagers who have yet to claim their savings might be starting university, apprenticeships or their first job. The lump-sum amount could offer a financial boost at a time when they need it most.

Angela MacDonald, HMRC’s Second Permanent Secretary and Deputy Chief Executive, said:

Teenagers could have a pot of money waiting for them worth thousands of pounds and not even realise it. We want to help you access your savings and the money you’re entitled to.

To find out more search ‘Child Trust Fund’ on GOV.UK.

An estimated 6.3 million Child Trust Fund accounts were set up throughout the duration of the scheme, containing about £9 billion. If a parent or guardian was not able to set up an account for their child, HMRC opened a savings account on the child’s behalf.

Teenagers aged 16 or over can take control of their own Child Trust Fund if they wish, although the funds can only be withdrawn once they turn 18 years old.

Where children have a Child Trust Fund, families can still pay in up to £9,000 a year tax-free. The account matures once the child turns 18 years old and no further money can be deposited. They can either withdraw the funds from the matured Child Trust Fund account or reinvest it into another savings account.

Until the child withdraws or transfers the money, it stays in an account that no-one else has access to.

The Child Trust Fund scheme closed in January 2011 and was replaced with Junior Individual Savings Accounts (ISA).