Tag: Treasury

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

From today the 1.25% point cut to National Insurance rates for employees and employers takes effect across the UK.

– The reversal of April’s rise in National Insurance takes effect across the UK from today

– Added to July’s increase in National Insurance thresholds, almost 30 million people will be £500 better off on average next year

– Most employees will start to receive this tax cut directly through payroll between November and February

The tax cut was announced by the government on 22 September, as part of the reversal of the Health and Social Care Levy.

Working people across the UK will begin receiving the tax cut in their payslips this month, with all expected to have started receiving it by February.

The move to reverse April National Insurance increase follows the rise in National Insurance thresholds in July. As a result of both measures, working people will be £500 better off, on average, next year.

Funding for health and social care services will be maintained at the same level as if the levy were in place.

It takes effect in all parts of the UK and means working people will keep more of the money they earn.

The press release issued by HM Treasury on 4 November 2022.

HM Treasury is supporting Sir Mark Hendrick’s Private Members’ Bill on Co-operatives, Mutuals, and Friendly Societies.

The Private Members Bill on Co-operatives, Mutuals and Friendly Societies grants HM Treasury the power to bring forward regulations to give those mutuals further flexibility in determining for themselves the best strategies for their business, relating to their surplus capital. This will provide additional safeguards against demutualisation for the societies that choose to adopt the so-called “asset lock”.

The Bill is therefore a valuable opportunity to support mutuals who wish to ensure that their underlying assets, in many cases built up over centuries by members pooling their resources together for the greater good, are protected and the mutual model preserved into the future.

By allowing for an iron-clad guarantee in legislation for mutuals that wish to adopt these restrictions, the Bill will make these asset locks harder to unpick. It will provide additional safeguards against demutualisation – where a mutual becomes a company with shareholders, a process which can, in some cases, aim to capture the asset value of the mutual as a windfall. It will ensure mutual capital is maintained for the purpose it is intended; to provide goods and services to those who need them now and for future generations.

Importantly, the Bill has been drafted to ensure the government has time to engage closely with the sector, regulators, and legal experts as the secondary legislation to give effect to the policy is developed.

This will allow the final design of the policy to take account of the existing rights and interests of consumers, particularly policyholders of financial mutuals, and to reflect the different types of business models in this diverse sector.

More broadly, the government aims to develop a modern and supportive business environment to set mutuals up for future growth and success and is currently exploring the options for reviewing key legislation underpinning the sector.

The press release issued by HM Treasury on 3 November 2022.

• Legislation laid today (3rd November) introduces a ban on UK ships and services facilitating the maritime transport of Russian crude oil from 5th December 2022
• This legislation will also pave the way for a cap on the price of seaborne Russian crude oil
• This follows commitment made by G7 Finance ministers in September

New legislation introduced today (3rd November) will prevent countries from using the UK’s services to transport Russian oil unless it is purchased at or below the Oil Price Cap set by the Price Cap Coalition of the G7 and Australia.

The move follows the decision made by the G7 Finance ministers in September who committed to the price cap as a way of undermining Putin’s ability to fund his war in Ukraine through inflated global oil prices, while ensuring that third countries can continue to secure affordable oil. The UK and its coalition partners will not make use of the cap, as they have introduced an import ban on Russian oil.

The ban on services, including insurance, brokerage and shipping, will be coupled with a General Licence, expected shortly, that lays the basis for an Oil Price Cap exception that will allow third countries to continue accessing services only if purchasing Russian oil at or below the cap. The level of the price cap will be set by the coalition in due course.

Insurance is one of the key services that enables the movement of oil by sea, particularly protection and indemnity (P&I) insurance which relates to third-party liability claims – the UK is a global leader in the provision of P&I cover, writing 60% of global cover.

Today’s legislation on crude oil will come into force on 5th December with further measures on refined oil products coming into force on the 5th February, to align with EU timelines for a parallel measure. To enforce the scheme the Treasury has set up a new team, based in the Office of Financial Sanctions Implementation. This team will set up the licensing and enforcement system for the Oil Price Cap; engage with industry to ensure readiness for the cap; and monitor the level and impact of the cap on an ongoing basis.

Chancellor of the Exchequer Jeremy Hunt said:

“We continue to stand by Ukraine in the face of Putin’s barbaric and illegal invasion. We’ve banned the import of Russian oil into the UK and are making good progress on phasing it out completely. This new measure continues to turn the screws on Putin’s war machine, making it even tougher for him to profiteer from his illegal war.”

The press release issued by HM Treasury on 2 November 2022.

Muhammad Rais, 42, from Leicester, has been disqualified for 9 years for exaggerating the turnover of his takeaway business to claim £31,000 of Bounce Back Loans to which the company was not entitled.

And Lee Mankelow, 42, of Arnold, Nottinghamshire has been disqualified as a director for 6 years, after claiming £50,000 from the loan scheme to support his timber supply business through the pandemic, before paying it all to a former director of the company.

The two directors received the money as part of a government scheme to support businesses that were facing hardship during the Covid outbreak.

Companies were entitled to claim Bounce Back Loans of up to 25% of their 2019 turnover, to a maximum of £50,000, for the economic support of their business.

Lee Mankelow was the director of Wolf Timber Ltd, which traded as a builders/providers of timber products. The company, however, entered into liquidation in December 2020 before Wolf Timber Ltd’s insolvency triggered an investigation by the Insolvency Service.

Investigators uncovered that Mankelow applied for a £50,000 Bounce Back Loan in June 2020, after the company had seen a rise in online business during Covid lockdowns.

Mankelow, however, transferred the full £50,000 the day after he received the loan to a former director of the company, breaching the terms of the loan which stated that the money must be used to support the business.

Investigators found no evidence to support Mankelow’s claims that the money was used to pay the wages, bonuses, dividends and expenses of the former director who had stayed on as an employee of the company.

And Muhammad Rais was the sole director of Lokma BBQ Ltd in Leicester until the company went into liquidation in January 2022.

The company came to the attention of the Insolvency Service following its liquidation before investigators uncovered that Rais applied for a £50,000 Bounce Back Loan, stating that the takeaway’s turnover the previous year had been £200,000.

However, Lokma BBQ’s actual turnover for 2019 had been around £74,000, resulting in the company receiving £31,000 of government-backed loans which it wasn’t entitled to.

Rais has agreed with the liquidator to re-pay £8,000 of the money owed through monthly installments.

The disqualifications prevent Mankelow and Rais from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Tom Phillips, Assistant Director of Investigation and Enforcement Services for the Insolvency Service, said:

“Bounce Back Loans were put in place to provide vital support to help viable businesses through the pandemic. Both Mankelow and Rais completely abused the government-backed loans to further their own interests, which was totally unacceptable.

“Mankelow and Rais’ bans should serve as a stark warning to other directors who may have misused financial support during the pandemic that we have the ability to bring your actions to account and remove you from the corporate arena.”

Notes to editors

Lee Mankelow is of Arnold, Nottinghamshire, and his date of birth is August 1980

Wolf Timber Ltd (Company number: 12174859)

Muhammad Rais is of Leicester and his date of birth is April 1980

Lokma BBQ Ltd (Company Reg no.11232141)

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

The press release issued by HM Treasury on 21 October 2022.

The Chancellor of the Exchequer has this day appointed Christian John Patrick Matheson to be Steward and Bailiff of the Three Hundreds of Chiltern.

The press release issued by HM Treasury on 20 October 2022.

More than one million claimant families receiving tax credits, and no other means-tested benefits, will get their second Cost of Living Payment from Wednesday 23 November 2022, HM Revenue and Customs (HMRC) has confirmed.

This £324 government payment will be paid automatically into most eligible tax credit-only customers’ bank accounts between 23 and 30 November 2022 across the United Kingdom.

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

This second Cost of Living Payment will provide further financial support to eligible tax credit-only claimants across the UK.

The £324 will be paid automatically into bank accounts, so people don’t need to do anything to receive this extra help.

The second payment will see more than 8 million households across the UK receive their £324 cost of living cash boost by 30 November and follows the first cost of living payments of £326, which eligible families received from Department for Work and Pensions (DWP) from July and HMRC from September.

The government recently announced that households receiving DWP benefits will get their second Cost of Living Payment from 8 November continuing through to 23 November. This includes tax credit claimants who also receive other income-related benefits from DWP.

HMRC is making payments shortly after DWP in order to avoid duplicate payments.

This latest payment comes on top of wider government support with the cost of living this autumn and winter, including:

• the £150 Disability Cost of Living Payment, already paid to around 6 million disabled people
• more than 8 million pensioner households who will receive an extra one-off £300 Winter Fuel Payment this year

This is in addition to an extension to the Household Support Fund, which is providing an extra £421 million for use between October 2022 and March 2023 to help vulnerable people with the essentials. A £150 Council Tax rebate was sent earlier this year to those in Council Tax bands A to D in England, creating at least £1,200 in direct support for millions of households.

A £400 reduction on energy bills is also being given to all domestic electricity customers over the coming months, and the Energy Price Guarantee is protecting households from significant rises in their energy bills this winter.

The government is offering help for households. Customers should check GOV.UK to find out what cost of living support they could be eligible for.

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

The sixth meeting of the Specialised Committee on Financial Provisions (SCFP) was held today, 18 October 2022. The meeting was co-chaired by officials from the UK Government and the European Commission. This Committee is assigned by the Withdrawal Agreement Joint Committee to undertake work related to the implementation of the financial provisions in Part V of the Withdrawal Agreement.

The UK and the EU exchanged updates on the tasks carried out under the remit of this Specialised Committee. Both parties noted the positive engagement on the annual reporting package required by the Withdrawal Agreement and the associated invoices. The fourth invoice was provided by the European Commission in September. The payment of these amounts will be made in eight monthly instalments, with the first due date set on 31 October 2022, in accordance with the terms of the Withdrawal Agreement. The European Commission will continue submitting these payment communications to the UK twice annually, in April and September, until outstanding net liabilities are extinguished.

The UK and EU sides reaffirmed their commitment to complying with their legal obligations under the Withdrawal Agreement.

The two sides appreciated the ongoing good cooperation in this field, and committed to continue working collaboratively on a range of implementation issues, in recognition of the mutual benefit of a smooth implementation of the financial provisions of the Withdrawal Agreement.

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.