Author : Great Britain: Parliament: House of Commons: Treasury Committee
Publisher : The Stationery Office
Page : 104 pages
File Size : 42,19 MB
Release : 2013-12-25
Category : Business & Economics
ISBN : 9780215062406
Written evidence is contained in Volume 2, available on the Committee website at www.parliament.uk/treascom
Author : Great Britain: Parliament: House of Commons: Treasury Committee
Publisher : The Stationery Office
Page : 126 pages
File Size : 21,92 MB
Release : 2013-12-03
Category : Business & Economics
ISBN : 9780215064738
The Money Advice Service is not currently fit for purpose. The Committee considered whether to recommend that the MAS be scrapped completely but given that the Treasury had already announced its intention to conduct a review of the MAS they granted a stay of execution. They asked the Government to expedite this review and recommended that it should be independent, rather than led by the Treasury. The review must assess whether the MAS should continue to exist and, if so, how it can overcome the serious problems discussed. The current management of the MAS should also explain how they are going to act on the concerns identified. The independent review should seek to answer the following questions: Should the Money Advice Service-or something like it-exist as a statutory organisation? If so, what should the role and strategy of such a body be? Should it be a co-ordinator, commissioner or direct provider of advice? What channels should it use? If not, should the FCA take responsibility for the objectives of the Service? Does the FCA need greater statutory powers to hold the Money Advice Service to account? What are the views of other bodies in this sector about the way in which the Money Advice Service is now engaging with them? To what extent does the work of the Money Advice Service unnecessarily duplicate existing provision? What should the role of the Service be in each of the areas in which it operates? Is the remuneration of the Service's senior staff set at an appropriate level?
Author : Great Britain: Parliament: House of Commons: Treasury Committee
Publisher : The Stationery Office
Page : 64 pages
File Size : 39,49 MB
Release : 2014-03-08
Category : Business & Economics
ISBN : 9780215069474
Around 43% of departmental expenditure limits are ring-fenced. As a consequence, public expenditure control - on the scale required to address the deficit - will be increasingly difficult. While ring-fencing reflects public priorities, those preferences are not equally strongly held for all ring-fenced areas. Support for the 33.5% cumulative real increase in aid over the course of this Parliament, for example, appears to be lower than for health and schools. The Committee also remains concerned about the impact of the Government's Help to Buy: Mortgage guarantee scheme. An abrupt end to the scheme could distort the market, as could announcements which radically alter people's expectations. Forecasts of additional revenue from many anti-avoidance measures are inherently extremely uncertain. The Committee warned in its report on the Autumn Statement 2012 that the forecast revenues from the UK-Swiss agreement - at £5.3 billion - were subject to uncertainty and that the proceeds may not meet expectations. These concerns appear to have been justified. Even after the event it is often very difficult to establish how much a particular measure has raised. The OBR should look again at how the Government accounts for projected revenues, based on previous experience. Even after the event it is often very difficult to establish how much a particular measure has raised. The more transparency about the yield, and therefore each proposal's effectiveness, the better
Author : Great Britain: Parliament: House of Commons: Treasury Committee
Publisher : The Stationery Office
Page : 16 pages
File Size : 14,16 MB
Release : 2013-10-18
Category : Political Science
ISBN : 9780215062819
Volume 2: Oral evidence. Written evidence can be found on the Committee's website at www.parliament.uk/treascom
Author : Great Britain. Parliament. House of Commons. Treasury Committee
Publisher : The Stationery Office
Page : 240 pages
File Size : 49,43 MB
Release : 2014
Category : Business & Economics
ISBN : 0215078454
One of the most significant consequences of Co-op Bank's near-collapse, from a public policy perspective, was the collapse of Lloyds Banking Group's planned divestment under Project Verde. Co-op Bank's withdrawal forced Lloyds to resort to its fallback option of an Initial Public Offering. The result is a new bank, TSB, which, not having an existing banking presence of its own, consists solely of the business divested by Lloyds. Accordingly, it has a personal current account market share not of 7 per cent, but of 4.2 per cent. There is a risk that a bank of this size might struggle to grow significantly and to act as a true challenger in the market. Had Co-op Bank's resulting capital shortfall been uncovered earlier, it is likely that the bank would not have progressed so far with Verde. As it was, the rapid and late emergence of the capital problem led to Co-op's withdrawal from the Verde process at a relatively late stage. The Committee recommends that the FRC investigation and the independent inquiry into the events at Co-op Bank consider the role of KPMG and the FSA in relation to the late emergence of loan impairment and IT losses. On the basis of these findings, the independent inquiry into the events at Co-op Bank should also form a view on whether Co-op's Verde bid could or should have been halted sooner. While it may not have been fully transparent from the start that Co-op Bank's bid was doomed to failure, it was beset by problems from an early stage. But it was not these problems that killed the deal-it was the capital shortfall that emerged only late in the day. It is important, from every angle to determine why the capital shortfall was not uncovered earlier.
Author : Great Britain. Parliament. House of Commons. Treasury Committee
Publisher : The Stationery Office
Page : 24 pages
File Size : 20,4 MB
Release : 2015
Category : Business & Economics
ISBN : 0215081714
On 17 October 2014, the European Commission informed HM Treasury that the UK would have to make an additional contribution to the EU budget of approximately 2.1 billion euro. This additional contribution had been prompted by revisions to EU Member States' historic Gross National Income (GNI) data, dating back to 1995. Member States make several annual contributions to the EU budget, by far the most significant being a levy on GNI. This levy is charged as a percentage rate on Member States' annual GNI, with the rate set at a level designed to cover exactly the portion of the EU Budget which remains unfunded once the other sources of income - namely Traditional Own Resources' and VAT-based resources - have been taken into account. The result is that an individual Member State contributes to this portion of the budget in proportion to its share of total GNI across all Member States. In 2013, GNI-based contributions amounted to 74 per cent of the EU's total budget. Emerging from the ECOFIN summit of 7 November 2014, the Chancellor claimed to have "halved the bill" of £1.7 billion demanded by the EU. He later described this as the result of "hard-fought negotiation" with the Commission to ensure that the consequential change to the UK's rebate would apply. The calculation of the rebate, and the circumstances in which it applies, are embedded in EU law. This is set out in detail in Council Decision 2007/436/EC and the supporting Council document on the UK correction. These documents establish the precise method for calculating the rebate. On the basis of the evidence the Committee has seen, it should have been unambiguously clear to the Treasury, well in advance of ECOFIN on 7 November 2014, that the UK was entitled to a rebate on any additional budget contributions that could arise from the GNI revisions.
Author : Great Britain: Parliament: House of Commons: Treasury Committee
Publisher : The Stationery Office
Page : 84 pages
File Size : 45,26 MB
Release : 2014-06-09
Category : Business & Economics
ISBN : 0215072901
Written evidence is contained in Volume 2, available on the Committee website at www.parliament.uk/treascom
Author : Great Britain. Parliament. House of Commons. Environmental Audit Committee
Publisher : The Stationery Office
Page : 56 pages
File Size : 25,90 MB
Release : 2014
Category : Business & Economics
ISBN : 0215070739
The Government needs to show real commitment to dealing with the impact that HS2 will have on our countryside and wildlife. It is imperative that an infrastructure project on such a large scale implements proper environmental safeguards and ensures that impacts are minimised. That won't happen if HS2 Ltd can avoid implementing safeguards if they consider them to be 'impracticable' or 'unreasonable'. There needs to be a separate ring-fenced budget for these safeguards and for compensation, separate from the rest of the HS2 budget, to prevent the environment being squeezed if HS2 costs grow. The Government's aim of 'no net biodiversity loss' on HS2 is not good enough - it should aim for environmental gains that the Government promised in its white paper on the Natural Environment. In any case, the Government can't demonstrate it will cause no net harm because it has still not surveyed 40% of the land to be used. Ancient woodland should be treated with particular care. HS2 will damage some woodlands, and where that happens, compensation measures should be much higher than the level indicated in the calculation that HS2 Ltd will use. The HS2 Hybrid Bill will be given its second reading on 28 April, after which it will be referred to a dedicated select committee to examine 'petitions' against it. The Committee criticises the procedure's failure to fully address the requirements of EU and national directives on environmental assessments, which it wants to be at least partly rectified in the forthcoming Parliamentary proceedings
Author : Great Britain. Parliament. House of Commons. Treasury Committee
Publisher : The Stationery Office
Page : 86 pages
File Size : 22,86 MB
Release : 2014
Category : Political Science
ISBN : 0215078810
Author : Great Britain. Parliament. House of Commons. Treasury Committee
Publisher : The Stationery Office
Page : 88 pages
File Size : 45,52 MB
Release : 2015
Category : Business & Economics
ISBN : 0215081536
The Treasury has again been unable to provide all the information needed by deadlines agreed with the OBR. The Government may, as the Chairman of the Office for Budget Responsibility suggested, have decided that for political reasons this was a "price worth paying." This would set an undesirable precedent. The work of the Office for Budget Responsibility depends on the Treasury meeting the agreed deadlines. The Committee welcomes the OBR's innovation of providing uncertainty ratings for policy costings. The Committee recommends in future that the OBR publish a breakdown of the uncertainty rating assessment against the three criteria for all announced measures at Autumn Statements and Budgets. The Committee also welcomes the Government's continued publication of the distributional analysis of the Government's policy changes and recommends that the next Government continue with this important aid to transparency. The current inflation target set by the Government is symmetrical, and is 2 per cent at all times. Several witnesses alluded to the risks of very low inflation and subsequent deflation, including the Chancellor. The Chancellor has publicly welcomed the current level of inflation. This is not likely to help anchor inflationary expectations. The Governor of the Bank of England is required to write to explain to the Chancellor why inflation has fallen below 1 per cent. It is important to avoid mixed messages on inflation targeting. The Bank of England should undertake research on the effect of net migration, and the potential for future net migration, on the supply of labour and wage growth as part of the work on meeting the MPC's remit. The Treasury should ensure that discussions within Government on immigration policy fully consider the requirements of the economy.
