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Author Archives: HM Government

News story: Bradford & Bingley asset sale to raise £11.8 billion for UK taxpayers

The loans will be sold to Prudential plc and to funds managed by Blackstone. There will be no changes to the terms and conditions of the loans sold. Borrowers do not need to take any action.

The price achieved reflects the strong credit quality of the portfolio and the outcome of a highly competitive sale process. It delivers value for money for the taxpayer and compares favourably with the ‘fair value’ of the B&B loan book disclosed in B&B’s accounts last year. The fair value of the B&B loan book is less than its book value, reflecting the low interest rates payable on the loans.

UK Asset Resolution (UKAR) manages Bradford & Bingley and NRAM’s closed loan books on behalf of the taxpayer. Allowing for today’s transaction, UKAR’s balance sheet now stands at £22 billion, down from £37 billion in September 2016 and from £116 billion in 2010.

Chancellor Philip Hammond said:

The sale of these Bradford & Bingley assets for £11.8 billion marks another major milestone in our plan to get taxpayers’ money back following the financial crisis.

We are determined to return the financial assets we own to the private sector and today’s sale is further proof of the confidence investors have in the UK economy.

At Budget 2016, the government announced that it would explore a programme of sales designed to raise sufficient proceeds for Bradford & Bingley (B&B) to repay the £15.65 billion debt to the Financial Services Compensation Scheme (FSCS) and, in turn, the corresponding loan from the Treasury. Today’s (31 March 2017) sale is the first in the programme.

The programme of sales is expected to conclude in full before the end of 2017-18. Any further sales will be subject to market conditions and ensuring value for money.

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Press release: Landmark day in devolution as powers pass to Welsh Assembly

Today marks an important milestone in implementing the Wales Act 2017 with powers coming into force that pave the way for the introduction of Welsh Rates of Income Tax, enable the Welsh Government to invest more in infrastructure and allow the National Assembly to decide what to call itself.

These important powers put more decisions into the hands of the Assembly and the Welsh Government and give them important new levers to grow the Welsh economy and to deliver better public services across Wales.

The provisions which come into force today:

  • Remove the requirement for a referendum before the Welsh Rates of Income Tax are introduced
  • Increase the amount that Welsh Ministers can borrow to fund capital expenditure from £500m to £1bn
  • Reaffirm the Assembly and Welsh Government as a permanent part of the UK’s constitutional arrangements
  • Enshrine the convention that Parliament will not normally legislate on devolved matters without the consent of the Assembly
  • Allow the Welsh Government and UK Government to agree a protocol for managing water resources that flow between the two nations

The changes also mark the end of the Secretary of State for Wales’ annual address to the Senedd on the Queen’s Speech and his entitlement to take part in Assembly proceedings.

Alun Cairns, Secretary of State for Wales, said:

Today marks the transfer of important new powers to the Assembly. These are powers which affect the lives of everyone living in Wales and are a major step towards the clearer, stronger and fairer devolution settlement that we are putting in place.

The Assembly and Welsh Government are, for the first time, formally recognised as permanent parts of the UK’s constitutional fabric. There is no longer a need for a referendum before the Welsh Rates of Income Tax come on stream and Welsh Ministers will be able to borrow up to £1bn to invest in renewing Wales’s infrastructure.

Devolution has developed significantly since 2010 and these powers mark the maturing of the Assembly into a fully fledged Parliament. From today, the Assembly can decide on a new title if that’s what Assembly Members want. I and my successors will no longer be entitled to a seat in the Assembly nor will we be required to give an annual address to the Assembly on the Queen’s Speech.

Together, these changes reflect the coming of age of the devolved institutions in Wales and mark the beginning of the transition to the new settlement that the Wales Act will put in place. I look forward to these powers being used to deliver for the people of Wales.

The measures come into force automatically two months after Royal Assent. The Wales Act 2017 gained Royal Assent on 31 January 2017.

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Press release: Home Secretary statement: meeting with Communication Service Providers

My starting point is pretty straightforward. I don’t think that people who want to do us harm should be able to use the internet or social media to do so. I want to make sure we are doing everything we can to stop this.

It was a useful discussion and I’m glad to see that progress has been made.

We focused on the issue of access to terrorist propaganda online and the very real and evolving threat it poses.

I said I wanted to see this tackled head-on and I welcome the commitment from the key players to set up a cross-industry forum that will help to do this.

In taking forward this work I’d like to see the industry to go further and faster in not only removing online terrorist content but stopping it going up in the first place. I’d also like to see more support for smaller and emerging platforms to do this as well, so they can no longer be seen as an alternative shop floor by those who want to do us harm.

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Speech: Value Valparaíso

First I would like to thank the many people in Chile, including the President, the Government of Chile, many of our business, military, and other contacts, and many members of the general public who have sent messages of condolence and support following the terrible attack in London. An attack on innocent people. An attack at the heart of our great global city. An attack on the heart of our society and our values of liberty, freedom and democracy. An attack which affected people of many nations – people from 11 countries were killed or injured, which reflects the nature of London as a global, multicultural hub, a welcoming place to all. The support from here in Chile and elsewhere around the world shows that we can come together and build a stronger community and a better world.

And in coming together here today, I hope that in a small way, we can contribute to building stronger links between our two countries. Thank you all for coming along today to talk about heritage and urban development. This is not about heritage for the sake of history. It is about how, if we value heritage, we can create value from it, and contribute to a better society, a better urban space, and a better quality of life for citizens.

I would like to thank some of the many people and organisations who have made this seminar happen and brought us together today including:

  • Consejo Nacional de la Cultura y las Artes
  • Ilustre Municipalidad de Valparaíso y su Alcalde Jorge Sharp
  • Comisión de Desarrollo Patrimonial a través del Concejal Daniel Morales
  • Fundación Piensa y Metropolítica
  • Armada de Chile y el Museo Marítimo
  • British Council
  • Colleagues from the British Embassy – Marianne Becker, Paula Orellana and Francisca Muñoz.

The idea for this seminar originated from another tragedy. The Great Fire of Valparaiso, in 2014. At that time the worst fire in the history of Chile – although sadly we have seen swathes of Chile devasted by fire in recent weeks.

I first came here to Valparaiso shortly after my arrival in 2014 to commemorate 200 years of the Battle of Valparaiso – a conflict about free trade. A topic as pertinent then as it is today. And just as then, about promoting economic links, with Valparaiso as a great port, and the potential to be a hub at the heart of globalisation. And I am glad to say London has been in the news here in Chile this week for different reasons to terrorism. The news that Chile Day will take place in London for the seventh year running, on 29/30 June, to promote Chile, free trade and investment, in London, as the best city in the world to do business.

In visiting Valparaiso I was surprised to find the striking British Arch, and so many other historic buildings in Valparaiso that once had links to the UK. The iconic arch was, of course donated by the British community to mark the centenary of Chile´s independence.

Soon after my first visit, the terrible fires took place and I returned to talk to the bomberos and the authorities here to try to understand more about what had happened. The overriding image of that very difficult time for the city, was one of community. Of people from many different sections of society coming together to help one another, at a time of adversity. People also told me of some of the difficulties and challenges of this city, of community tensions, of poverty, of housing, of a city with past glory. Of a city where there are many plans and projects, but where progress is needed to benefit people. It made me think of cities in the UK where we have also faced similar challenges.

I have come back here many times. Sometimes for meetings and events with the Armada de Chile, for whose help, including today, I am ever grateful. Sometimes to see the local authorities or universities. Sometimes just as a private individual, or with friends, to enjoy a very different place to Santiago. And I have brought many visitors here, including of course HRH Prince Harry in 2014, and more recently HRH Prince Edward. Yesterday and the day before, the British Council and British Embassy organised here in Valparaiso the Pacific Alliance seminar on innovation, bringing together experts from Chile, Colombia, Mexico, Peru and the UK to discuss ways to fuel innovation. This vibrant, diverse, individualistic city stimulates creativity, draws people here and makes them want to come back.

Last year the Embassy was awarded a small amount of extra money, in recognition of some of the work we had done to further links between the UK and Chile. For once, I had complete discretion over how the money should be spent. (Normally the limited funds that we do have, come with very tight rules on scope and criteria). I felt it was important to use these new funds for something outside Santiago, where we already had a number of projects. Also to do something that was beyond the normal range of Embassy work. I talked to people here and we came up with the idea of exchanging ideas and experiences about using heritage in urban development. Hence this seminar

That is not to say we have the answers in the UK. Quite the contrary. We have many experiences on how difficult this can be, and sometimes it has gone wrong. But there have been some successes. But always it is a work in progress. Because any city is about an evolving space. A changing environment to meet the needs of the people. Developing areas to bring greater economic benefits. And increasingly, the need to protect and make the most of the environment. But there is something more.

Something intangible. Something which speaks to the spirit, and relating to identity and self expression, and connecting to what is around you – about valuing what you have. Which in turn, can create value – to attract more businesses, generate more jobs, bring more money to a city, which in turn can improve housing, urban spaces, benefit people and also create a new urban environment in which creativity can flourish.

I am delighted to welcome to this seminar our two speakers from the UK – Duncan MacCullum and Philip Davies – who will share with you some ideas and experiences, drawing on some examples of British cities, including Liverpool, which has a long shared history with this city of Valparaiso. Both are great ports of the world.

I should also say that the UK team are here just as facilitators . We are not here to present or promote any particular project on Valparaiso. I know that there are a number of possible projects under consideration. There are strong views on what should happen. It is not for us to input one way or the other. Nor do we have funds for follow up work. This is a one off chance for such a seminar. So over to you on how you want to make best use of this opportunity.

The aim of today is to talk about examples of creating a ´Culture of Value´i.e . valuing the heritage around you, and sharing experiences of how preserving and rescuing heritage can help transform a city landscape: sharing examples of how heritage can be used to create a ´Value Offer´to bring economic benefits, through tourism, urban development and social development; and to talk about practical steps to ´Realise Value´ – how to turn a vision into change for a better city.

We are here to learn more about your experiences and offer up some examples of similar challenges in the UK. I hope that the presentations this morning stimulate dialogue and ideas on how best to ´Value Valparaiso´. So, most of all, welcome to you.

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