Posts tagged 'HM treasury'

On HM Treasury’s Brexit analysis…

A guest post by Peter Doyle, economist and former IMF staffer


I very much hope—and expect—that Brexit will be rejected.

But the 200-odd pages of HMT density on trade theory are intended to intimidate, not illuminate. They distract from the key issue; the impact of Brexit on the Euro. Read more

A mere £141bn

From the UK National Audit Office’s look at the Treasury’s accounts:

Much more here. It’s largely because of the withdrawal of the biggest crisis-era sovereign guarantees for banks: Read more

The pictorial Funding for Lending

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Will the last person to leave HM Treasury, etc

Selected quotes/charts from the ‘Review of HM Treasury’s management response to the financial crisis‘, which reveals that there was a significant lack of personnel in the finance ministry who knew about banking crises, on the eve of the UK’s biggest ever banking crisis…

After serious concerns were first raised about Northern Rock in mid-August, it took the Treasury about four weeks to appreciate that there might be systemic dimensions which would mean wider handling and greater Treasury input

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Mystery UK taxpayer du jour [Updated]

Fifteen banks are signatories to the UK’s Code of Practice on Taxation.


HMT, the Bank of England, and ELA

The Government agrees that a limited statutory power of direction for the Chancellor over the Bank in a time of financial crisis would be helpful in clarifying lines of responsibility and accountability…

Or — an interesting power-shift in the UK’s Financial Services bill, just published by the Treasury at pixel time. Read more

UK debt: £1,003,900,000,000

Blame whoever or whatever you want, but net British debt, “excluding the temporary effects of financial interventions,” topped a trillion pounds sterling in December.

That’s equivalent to 64.2 per cent of GDP. And it’s less than expected. Read more

UK economic policy: less plan B, more plan A+1

If you liked the Bank of England inflation fan charts, then you’ll love the OBR’s fan charts.

GDP: Read more

Liquidity support for the UK banks

Some good news for the battered UK banking sector?

HM Treasury is going to announce special liquidity measures to help Lloyds, Barclays and RBS  get through a funding hump in the first quarter of next year. Read more

It’s not the banks, it’s the bankers

By Neil Collins

It’s not the banks, it’s the bankers Read more

Robin Hood meets William Tell

This should make Davos a bit less tense; a win-win for the British and Swiss governments on Wednesday:

Aug 24 (Reuters) – Switzerland and Britain struck a deal on Wednesday to tax money kept by British residents in secret Swiss bank accounts, which will gift a windfall to the cash-strapped British government and helps the Alpine country’s banks come clean on untaxed accounts.

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UK inflation *non fail* shock

Cue sighs of relief at the Bank of England on Tuesday morning following news UK CPI had fallen to 4 per cent YEAR-ON-YEAR in March from 4.4 per cent YEAR-ON-YEAR in February.

Barclays – Too big for Britain

We’d assumed Diamond Bob and John Varley were bluffing when they said Barclays might quit Britain for the US.

Perhaps not. Read more

Did Her Majesty sign the OBR Act?

I am informed that the Treasury was on tenterhooks last night, waiting for confirmation that the Queen had given the royal assent to the bill which establishes the Office of Responsibility in its final official form. I believe that the Chancellor traditionally briefs the Queen about the contents of the Budget on the day before he makes his speech, but I do not know if he went to the Palace yesterday with the bill (and a biro) in his briefcase.

No matter. The OBR is expected to act as if the bill were already passed until the royal assent is attained. Read more

The 2011 Budget – a fine print primer

Ah, the Budget.

Taxes, benefits, sweeteners, dubious forecasts, the Gladstone box, drinking in the House (just the Chancellor, mind, if he so chooses), and Treasury civil servants staggering out of 1 Horse Guards Road to the nearest pub like students after a final exam. Read more

Snap news

Breaking pre-market news on Tuesday,

– HM Treasury raises bank levy target to £2.5bn — statementRead more

Britain’s big banks meet deadline on code of conduct

The biggest banks operating in Britain have met a Treasury deadline to sign up to a code of conduct designed to curb tax avoidance, reports the FT. The code, which will encourage banks to follow the spirit as well as the letter of the law, was first announced by Alistair Darling last year in an effort to defuse anger over banks’ tax planning schemes. George Osborne, chancellor, said on Tuesday: “Alongside the bank levy, this shows that the coalition government is taking action to ensure banks pay their fair share – unlike the previous government, which talked tough, but failed to deliver.” The announcement that the top 15 banks had signed was made in the Commons by Nick Clegg, deputy prime minister, whose party has been pushing hard for tougher regulation. The code had been criticised last year by Vince Cable, then Liberal Democrat Treasury spokesman, as a “terribly limp-wristed response to a serious abuse”.

Hand-waving, UK bank levying, etc.

The step-by-step guide to shaking down UK banks for £2.5bn, according to a draft law released on Thursday.

But there is a rather embarrassing omission (H/T Sam Jones): Read more

Gilt-free bloodshed

In public policy terms, this will probably be the most important day of this parliament, possibly of this decade…

George Osborne is polishing his scythe… The Chancellor must now try to kill the rapacious £155bn deficit by a thousand cuts…

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What’s going on inside the FSA?

Well, this is worrying. When even Britain’s Financial Services Authority acknowledges its own personnel problems, it must be serious.

From a memorandum the FSA recently sent to the Treasury Select Committee, on the subject of breaking it up into two new regulators: Read more

HMT’s very own synthetic CDO

Some highlights from Thursday’s first ever annual report from the UK’s Asset Protection Agency (APS) show interestingly that the whole thing seems to be accounted for as a derivative (as opposed to say, an insurance contract — something that was discussed by the APA), reports FT Alphaville. And as a derivative, the APS is valued at fair value. The Agency is even using a Gaussian Copula to determine that value — albeit one that has been slightly tweaked to take into account recent (crisis) events. Read more

George goes green

Continuing FT Alphaville’s traditional coverage of Budget Day neckwear:

What does the colour of Chancellor George Osborne’s tie mean? Read more

Coins of the UK (public spending) realm

Got a spare 10 minutes? Some technical expertise? Experience in handling large volumes of data?

Then you might be able to get some use from the just-released UK Coins data. That’s the Combined On-line Information System, used by the Treasury to collect financial data from the public sector. Read more

Exiting Lloyds and RBS

How do you square this circle? The government wants to sell its stakes in Lloyds Banking Group and RBS, but wants to do so in a way that maximises taxpayer value.

One way, according to an article in the Sunday Times, is through a new security – a convertible gilt. Read more

Barclays re-reconsidered

There’s a lot more to be gleaned from Tuesday’s annual results statement from Barclays.

But you have to go to Page 106 of the statement to find it. Emphasis FT Alphaville’s: Read more

It’s over

After six quarters the UK’s longest, and possibly deepest recession since the second world war has ended – but only JUST.

Q4 GDP rose 0.1 per cent quarter-on-quarter, well below forecasts. (A 0.4 per cent rise was expected). Read more

HM Treasury to benefit as bonus tax fails to stem payments

Alistair Darling’s attempt to stop banks making lavish bonus payments through the one-off 50 per cent “supertax” has failed, government officials admit, as many institutions plan to absorb the charge rather than reduce pay-outs. The chancellor’s allies admit the tax has not changed the behaviour of big financial institutions, but take comfort in the fact that the Treasury is set for a windfall of hundreds of millions of pounds just months before the election as a result.

MergerMarket’s M&A rankings

Investment banks like these things — and when the latest deal league tables show Goldman Sachs being knocked off the top spot by Morgan Stanley we can treat it as bona fide news.

From MergerMarket, an FT sister company… Read more

Bonus backlash

A copy of the letter sent by Joanthan Keeling, chief executive of Arden Partners, to the FT:

Dear Sir, Read more

A global banker tax? (updated with breaking news from France)

Might other countries follow the UK’s lead and hit the bankers where it really hurts?

That certainly is the impression one gets reading the letter penned by Gordon Brown and Nicolas Sarkozy in the Wall Street Journal on Thursday. Read more