The Budget sets out the Government's plans for taxation, public spending and economic growth for the coming year. Details announced include: an annual growth rate of 2.5 per cent for 2006-07 with a forecast of 2.75 to 3.25 per cent for 2007-08; an inflation rate of two per cent this year; and public sector borrowing on course for a 16 billion surplus over the economic cycle ending in 2010-11, with net borrowing set at 37 billion for this year and 36 billion next year, falling to 23 billion in the year to 2010-11.
Supply estimates are the means by which the Government seeks from Parliament sufficient funds and parliamentary authority for the bulk of departmental expenditure each year. In the course of the year the Government may need to ask Parliament for additional resources and/or cash. This volume contains 32 supplementary estimates and one new estimate.
Government response to the Committee's first report of session 2009-10, eleventh report of session 2009-10, report, together with written evidence and formal minutes
Government response to the Committee's first report of session 2009-10, eleventh report of session 2009-10, report, together with written evidence and formal minutes
This White Paper sets out proposals to tackle the effects of the recession and to get back to full employment. Its aims are to give young people a chance to a better start to their working lives and to help more people back to work and make sure they are better off in work, to keep them in work and to build a fair and family-friendly labour market
Royal assent, 17th July 2012. An Act to authorise the use of resources for the year ending with 31 March 2013; to authorise both the issue of sums out of the Consolidated Fund and the application of income for that year; and to appropriate the supply authorised for that year by this Act and by the Supply and Appropriation (Anticipation and Adjustments) Act 2012
This report scrutinises the Government's performance in supporting firms developing new products for the £3.4 trillion international low carbon good and environmental services sector - following up on a National Audit Office report that had been critical of the Department for Energy and Climate Change's (DECC) record in 2010. There has not been enough progress since then and the resources allocated by the Government to support companies do not match its level of policy ambition in this area. The Low Carbon Innovation Co-ordination Group (LCICG) Secretariat in DECC, for instance, is poorly resourced leaving the low carbon innovation sector without sufficient support necessary to bridge the so-called 'valley of death' and bring innovative new products to market. DECC has admitted that this lack of staff resource also prevents it from engaging fully on European issues that are of direct relevance to UK innovators. At a global level DECC and the LCICG could do more to help UK innovators benefit more from their intellectual property internationally, to help to build greater confidence for potential investors to support innovation in low carbon technologies. The Government is also not doing enough to influence the EU on product standards which can make or break the market for UK innovation exports.
The Committee calls for a wholesale review that goes beyond the administration of business rates to examine whether retail taxes should be based on sales rather than the rateable value of a property; whether retail needs its own system of business taxation; and how frequently revaluations should take place. In the interim, the Committee calls for a six months business rates amnesty for businesses occupying empty properties. This would go further than the 50% reduction announced in the Autumn Statement and would encourage new businesses to the High Street. The Committee also recommends that in the interim the Government review whether business rates are more appropriately linked to CPI or RPI and calls for annual increases to be linked to a 12 month average of either RPI or CPI, with a cap at 2%. This would replace the current link to a monthly snapshot of RPI. The Government should provide information on how and how much of the money allocated to the Portas Pilots is being spent. This follows concerns that much of the money allocated to the pilots has not been spent. The Government is also urged to outline the results of its latest STEM skills analysis and outline the action it will take to tackle any skills shortages. The retail sector also needs to encourage more staff to be trained at Apprenticeship Level 3 and above, and consider developing language skills to enhance the international consumers' experience
Motoring is being transformed by new materials, new fuels and information technology. However, the Government must act if people and businesses in the UK are to obtain the full benefit of this ongoing automotive revolution. The Committee found that the Department for Transport (DfT) is yet to set out a comprehensive strategy to link the introduction of new automotive technology to the achievement of its policy goals. It should develop a comprehensive vision to shape motoring of the future in partnership with other Government Departments and agencies. This strategy needs to set out a co-ordinated set of actions to: (i) reduce or eliminate fatalities and serious injuries on the roads; (ii) cut emissions from road transport; (iii) increase road capacity; (iv) facilitate social inclusion and accessibility of road transport; and (v) support economic growth.
The Science and Technology Committee warns that the UK's prominence in astronomy and particle physics, and its ability to attract and inspire the next generation of scientists in these areas, could be at risk if reduced budgets hit the UK's growth prospects, reputation and expertise. Although science did relatively well in the recent Spending Review, funding for astronomy sees a total reduction of 21% over the next four years compared with 2010-11. More starkly, comparing 2014/15 with 2005, spending in astronomy and particle physics will be around 50% lower than its level six years ago. This is worrying, particularly when set against the planned increased investment in science and innovation by the UK's international peers as part of long-term strategies to ensure economic growth. The Science and Technology Facilities Council (STFC) - the research council which funds research and facility development in astronomy, particle physics and nuclear physics - is risking the UK's ability to stay at the forefront of future developments by focusing its astronomy and particle physics programmes into fewer areas. A case in point is the UK's planned withdrawal from all Northern Hemisphere optical and ground based astronomical facilities, which could see UK leadership and competitive advantage being handed over to international peers. The Committee is also highly critical of past STFC strategies, especially its failure to incorporate into policy documents details of the planned withdrawals. The report also addresses the future of the National Schools Observatory and outreach, which is essential to inspire the next generation of scientists.
British Energy was the largest independent energy generator in the UK and owner of sites viewed by industry as the most suitable for new nuclear power stations. The Government sold its 36 per cent interest in the company to EDF Energy for £4.4 billion in January 2009. The final cash offer from EDF was 774 pence per share - 10 per cent higher than the valuation by the Shareholder Executive, the Government agency that managed the sale. Movement in energy prices after completion of the sale show that EDF put forward its offer when energy prices were at a peak. The Government's primary strategic objective for the sale was to ensure nuclear operators are able to build and operate new nuclear stations from the earliest date with no public subsidy. There was no binding commitment to build new nuclear power stations as a condition of the sale so it is too early to say whether the sale will enable the Government to achieve its strategic objective. But EDF's acquisition of British Energy has improved the prospect of investment in new nuclear power stations. While the Government no longer has a direct financial interest in British Energy, it remains responsible for funding any shortfall in the future cost of decommissioning British Energy's existing nuclear power stations. The Shareholder Executive did not carry out a formal assessment of the impact of the sale on the risks that taxpayers might have to bear if, for example, the new owner operated British Energy's power stations in a way that required earlier decommissioning.
The cost of cyber crime to the UK is currently estimated to be between £18 billion and £27 billion. Business, government and the public must therefore be constantly alert to the level of risk if they are to succeed in detecting and resisting the threat of cyber attack. The UK Cyber Security Strategy, published in November 2011, set out how the Government planned to deliver the National Cyber Security Programme through to 2015, committing £650 million of additional funding. Among progress reported so far, the Serious Organised Crime Agency repatriated more than 2.3 million items of compromised card payment details to the financial sector in the UK and internationally since 2011, preventing a potential economic loss of more than £500 million. In the past year, moreover, the public reported to Action Fraud over 46,000 reports of cyber crime, amounting to £292 million worth of attempted fraud. NAO identifies six key challenges faced by the Government in implanting its cyber security strategy in a rapidly changing environment. These are the need to influence industry to protect and promote itself and UK plc; to address the UK's current and future ICT and cyber security skills gap; to increase awareness so that people are not the weakest link; to tackle cyber crime and enforce the law; to get government to be more agile and joined-up; and to demonstrate value for money. The NAO recognizes, however, that there are some particular challenges in establishing the value for money
While strong Armed Forces remain the bedrock in safeguarding national interests new kinds of power projection are now required, both to make the use of force ('hard power') more effective and in some instances to replace it with the deployment of what has been labelled 'soft power'. Soft power involves getting what a country wants by influencing other countries to want the same thing, through attraction, persuasion and co-option. The information and digital revolution has transformed international relations and foreign policy, meaning that the UK must win over new and wider audiences to its point of view. The UK must change the way it interacts with other nations and communities, and is well-equipped to do so. Soft power methods of exercising international influence must now be combined with older approaches in order to secure and promote the UK's interests and purposes. To ensure that the exercise of soft power takes its place at the core of government policy-making, the Committee calls for the creation of a new strategic unit at the heart of Government. Its purpose would be to assist the Prime Minister in ensuring all Departments understand the importance of soft power and of upholding the UK's reputation, and in swiftly counteracting any potentially damaging policies or messages. While investing in soft power takes time to produce results, the Committee makes a number of recommendations including that BBC World Service's budget is not reduced any further in real terms and that the British Council is properly resourced to encourage the UK's creative industries
The pressure to be seen to be making cuts across the public sector is threatening to undermine both the Government's good record on investment in science and the economic recovery. Whilst the contribution of a strong domestic science base is widely acknowledged, methodological problems with quantifying its precise value to the economy mean that it is in danger of losing out in Whitehall negotiations. Scientists are under increasing pressure to demonstrate the impact of their work and there is concern that areas without immediate technology applications are being undervalued. The Committee believes the Government faced a strategic choice: invest in areas with the greatest potential to influence and improve other areas of spending, or make cuts of little significance now, but that will have a devastating effect upon British science and the economy in the years to come.
The Impact of Government Reforms on 14-19 Education, Seventh Report of Session 2012-13, Report, Together with Formal Minutes, Oral and Written Evidence
The Impact of Government Reforms on 14-19 Education, Seventh Report of Session 2012-13, Report, Together with Formal Minutes, Oral and Written Evidence
In the UK we teach young people to become computer users and consumers rather than programmers and software engineers. This is creating a chronic skills gap in ICT. We need around 82,000 engineers and technicians just to deal with retirements up to 2016 and 830,000 SET professionals by 2020. On the plus side, the Government's proposal to include computer science as a fourth science option to count towards the EBac is welcomed. The Committee also welcomes the EBac's focus on attainment of mathematics and science GCSEs but is concerned that subjects such as Design and Technology (D&T) might be marginalised. A Technical Baccalaureate (TechBac) is being designed but if it is to be a success, schools should be incentivised to focus on the TechBac by making it equivalent to the EBac. Reforms to vocational education following the Wolf Review meant that Level 2 of the Engineering Diploma, a qualification highly regarded, would count as equivalent to one GCSE despite requiring curriculum time and effort equivalent to several GCSEs. The Engineering Diploma, however, is currently being redesigned as four separate qualifications. The Committee also expressed concerns over the Department for Education's (DfE) lack of clarity on its research budget, and use of evidence in decision-making. The DfE needs to place greater focus on gathering evidence before changes to qualifications are made, and must leave sufficient time for evidence to be gathered on the effectiveness of policies before introducing further change. The possibility of gathering evidence from randomised controlled trials (RCTs) should be seriously considered
On cover and title page: House, committees of the whole House, general committees and select committees. On title page: Returns to orders of the House of Commons dated 14 May 2013 (the Chairman of Ways and Means)
Under the Customer First Programme, delivery of grants and loans to higher education students in England is being transferred from local authorities to the Student Loans Company (the Company), a non-departmental public body of the Department for Business, Innovation and Skills (the Department). In 2009 the Company began assessing applications from new students; by 2011 it will be responsible for applications from all students in England. Performance in processing applications and communicating with students in this first year was completely unacceptable. Many students waited weeks or months for their financial support. Fewer than half of all applications were fully processed by the start of term, and applications took on average a third longer to process than local authorities had achieved. The Company answered fewer than half the calls it received in 2009; in September 87% of calls went unanswered. Disabled students suffered disproportionately in 2009, as the Company devoted too few staff to processing their applications. The Company also demonstrated a number of IT failings in 2009: most importantly, it did not sufficiently test its crucial document scanning - the failure of which was the catalyst for the failure of the entire system. The Department underestimated the risks in centralising the service, the Programme Board lacked skills and experience, and there was poor communication between the Programme Board, the Company's Board, and the Department. There has been limited improvement in 2010 but uncertainties remain over the Company's ability to deliver and maintain a service that provides value for money.
This report, made by the Secretary of State for Communities and Local Government, sets out the determination for the financial year 2011/12 of the amount of Revenue Support Grant for that year, what amount of the grant he proposes to pay to receiving authorities and what amount of the grant he proposes to pay to the specified body. The report also sets out the basis on which the Secretary of State proposes to distribute among receiving authorities the amount which falls to be paid to such authorities for the year 2011/12 under Part V of the Local Government Finance Act 1988. It also sets out the specification of the amount arrived at under paragraph 9 of schedule 8 to the 1988 Act and, under paragraph 10 of that schedule, the basis on which the Secretary of State proposes to distribute among the receiving authorities the distributable amount for 2011/12
Businesses must have regard to human rights in several different contexts. Difficulties may arise if there are weaker governance mechanisms for protecting human rights overseas, or if firms take different approaches to the protection of certain human rights in the UK and elsewhere. This report considers a complex range of issues, starting from the position that the UK should play a leadership role to ensure that all firms respect human rights wherever they operate. The work of the UN Secretary General's Special Representative on Human Rights and Transnational Corporations is welcome but the Committee would support clearer guidance for meeting obligations. The OECD also has guidelines on multinational enterprises as monitored by National Contact Points. The UK National Contact Point, though much improved, still falls short of the necessary criteria and powers needed by an effective remedial body. The Committee argues that an international agreement on business and human rights should be the ultimate objective, although they accept that no such agreement is likely in the near future. There is considerable scope for joint working on a regional level and globally to agree a consistent approach to business and human rights and the Committee believes that the UK Government could do more to explain the responsibility on businesses to respect human rights and the standard of due diligence this entails
The Committee's report considers two key issues: the maintenance of a universal service and the continuation of a sustainable Post Office network across Scotland. The report welcomes assurances that Scotland would not be made exempt from the universal service obligation. Further clarification is needed on Ofcom's power to designate more than one universal service provider. Ofcom should be required to consult with consumers, small businesses and vulnerable users in remote, rural and island communities in Scotland before it recommends any changes to the existing USO. There are considerable advantages to a long, stable and robust relationship between Royal Mail Group and Post Office Ltd and the Committee recommends that a ten year Inter Business Agreement should be reached prior to any sale of Royal Mail. On the Post Office network, the Bill makes no provision for the number of Post Offices and does not set out criteria for access to the network, a matter of concern because the current criteria could be met by 7,500 branches rather than the existing 11,500 branches. This could lead to many closures in Scotland. The Committee recommends that the Government gives assurances to preserving the existing network of branches. Elements of Outreach Post Offices, which replaced 102 Post Office branches in rural and remote parts of Scotland, are not sufficiently robust or reliable to provide an adequate service, according to the Committee, and it fears the new Post Office Local risks downgrading the service further. Improvements should be delivered as a matter of urgency.
In its report into how priorities are set for publicly funded research, the Science and Technology Committee calls on the Government to make a clear and unambiguous statement setting out their research funding commitments and the periods of time over which those commitments apply.
Small and medium sized enterprises (SMEs) form a large part of the UK economy. According to official statistics, there were 5.243 million private sector businesses at the start of 2014. 5.236 million had 0-250 employees and are classed as SMEs, of which 5.204 million had fewer than 50 employees and are classed as small businesses. SMEs account for 60 per cent of all private sector employment, and registered an annual turnover of £1.6 trillion at the start of 2014-47 per cent of the private sector total. A large majority of SMEs are sole traders-76% of all businesses are non-employers. The Government believes that access to finance for SMEs is 'key to the recovery and long term growth of the economy'. Research by National Endowment for Science, Technology and the Arts (NESTA) in 2009 found that the '6 per cent of UK businesses generated half of the new jobs created by existing businesses between 2002 and 2008. This report offers a number conclusions and recommendations covering: the state of the SME lending market; RBS Global Restructuring Group (GRG); mis-sale of Hedging Products; and alternative finance
A Treasury led 'dash for gas' could make the UK's carbon targets under the Climate Change Act unachievable. The Committee is calling on the Government to restore investor confidence in the future direction of energy policy by setting a clear decarbonisation objective in the forthcoming Energy Bill to clean up the power sector by 2030. Ongoing policy uncertainty could mean that the UK loses out on millions of pounds of green investment. Global competition for green growth is fierce and the UK is competing with other countries to secure renewables investment. The Committee heard a variety of suggestions to boost take-up of energy efficiency measures in its inquiry on the Autumn Statement and received suggestions for new environmental taxes that could be implemented to help deliver the Coalition Agreement commitment to increase the proportion of tax revenues accounted for by environmental taxes
The Department for Business, Innovation and Skills works with the Skills Funding Agency (the Agency) and the National Apprenticeship Service (the Service), to deliver the Apprenticeship Programme. Adult apprentices represented 325,500, or 71%, of the 457,200 apprentices who started their apprenticeship in the 2010/11 academic year. During the 2010-11 financial year the Department spent £451 million on adult apprenticeships. The Programme has been a success more than quadrupling the number of adult apprenticeships in the four years to 2010/11 and the proportion of adult apprentices successfully completing their apprenticeship has also risen, from around a third in 2004/05 to over three-quarters in 2010/11. Further work, however, needs to be done to maximise its impacts. The Department should improve its understanding of which apprenticeships offer the biggest returns. The Service should give both employers and individuals better information about the benefits arising from different types of apprenticeship, as well as about the quality of the many training providers. The Service should do more to increase the number of employers offering apprenticeships, and to increase the proportion of advanced skill level apprenticeships achieved, moving England closer to the levels delivered in other European countries. Importantly, around one in five apprenticeships lasted for six months or less. The Service accepts concern that apprenticeships lasting for such a short period are of no proper benefit to either individuals or employers. The Service says it is tackling the problem but it needs to do more to guarantee the length and quality of training -especially the off-the-job training apprentices receive
The Select Committee report Waste Or Resource? Stimulating A Bioeconomy? (HL 141) advises that the UK could miss out on a massive opportunity to create a flourishing multibillion pound economy from waste. Although there are many kinds of waste generated from a variety of sources, the Lords inquiry looked specifically at waste which contains carbon. Around 100 million tons of carbon-containing-waste are available every year which could potentially be exploited as a resource. While preventing the creation of waste in the first place is a laudable policy goal, it is inevitable that there will always be waste, or unavoidable by-products such as orange peel, coffee grounds or waste gas from factories and power stations. Using cutting edge technologies, wastes such as these can be converted into valuable products such as fuels, flavors and fragrances, plastics, paint or pharmaceuticals. There are environmental benefits to be had from harnessing the was
This report finds that the UK has an excellent research base but is still failing to maximise its potential by translating research into wealth and health. The road to economic recovery will depend, in part, on exploitation of the UK's research base, which in turn requires efficient translation to generate returns on investments. Some areas of bioengineering, such as stem cells, have clearly benefited from strong Government leadership and support, backed up by generous levels of funding from both the public and private sectors. Others, such as genetically modified (GM) crops, are less well supported and funded. This is curious when GM crops are considered by the Government to be safe and offer potential benefits. GM crops are certainly the poor cousin in the bioengineering family, and we strongly urge the Government to signal its support for GM crops as well as improving the regulatory situation in Europe. Regulation of bioengineering is complex and researchers have found that regulations inhibit research and translation, either because of regulatory complexity (stem cells) or a flawed operation of the regulatory process (GM crops). There are good indications that the UK is learning from past experiences in bioengineering when handling new emerging technologies, such as synthetic biology. The Government and Research Councils have recognised the value of synthetic biology early, and are providing funding. The Committee is also concerned that while research is well funded there is not enough forethought about synthetic biology translation, for example developing DNA synthesis capability, which would provide the UK with an excellent opportunity to get ahead internationally. If this is not addressed, synthetic biology runs the risk of becoming yet another story of the UK failing to capitalise on a strong research base and falling behind internationally.
This report from the Business, Innovation and Skills Committee concludes that while the Government has proposed a number of interventions which have the potential to help promote economic growth, it does not add up to a comprehensive growth strategy. The report highlights the fact that in the absence of clear performance measurements the Department for Business, Innovation and Skills' strategy runs the risk that economic success could mask failures in policy while economic hardship could overshadow excellent strategies or interventions. The report argues that different sectors of the economy have different requirements when it comes to government support and that the Department will have to develop a strong awareness of the needs of individual sectors and have the flexibility to react to them if we are to build capability across all sectors of the economy. While the Government's growth strategy appears to move in this direction, evidence from three sectors has shown that much work needs to be done. The banks' role in providing finance to business is crucial to the success of the economy. The report believes that the agreement struck between Government and the banks (Project Merlin) is a step in the right direction but the agreement must be shown to deliver real benefits to industry. If the economic recovery is to be sustained then both Government and banks need to move quickly from rhetoric to meaningful of support to the private sector.
There exists the concept of a valley of death that prevents the progress of science from the laboratory bench to the point where it provides the basis of a commercially successful business or product. The future success of the UK economy has been linked to the success of translating a world class science base to generate new businesses with the consequent generation of UK jobs and wealth. A troubling feature of technology companies in the UK is how many are acquired by foreign owners where the subsequent jobs and wealth are generated outside the UK. It is key that the Government ensure that sufficient capital is available and recommended that the proposed bank for business, possibly in partnership with the Business Growth Fund, be used to promote a bond market for medium sized businesses, thus providing growing small businesses with an additional source of funding. It is also recommended that the Government investigate the potential to require funds to have a proportion of European SME equities. There needs to be a mechanism to support SME's who do disproportionately badly from the current R&D tax credit scheme. The Technology Strategy Board is becoming the focus for government innovation policy and Government should consider how they can resource the TSB to provide local level advice to technology businesses. The Small Business Research Initiative (SBRI) and the SMART Award scheme would appear to be successful initiatives but lack sufficient funds to meet the demand from companies
This report warns that the extraordinary success of the UK's creative industries may be jeopardised by any dilution of intellectual property rights and the failure to tackle online piracy. The Committee also strongly condemns the failure of Google in particular to tackle access of copyright infringing websites through its search engine. Such illegal piracy, combined with proposals arising from the Hargreaves review to introduce copyright exceptions, and a failure to strengthen copyright enforcement as envisaged by the Digital Economy Act 2010, together threaten the livelihoods of the individuals and industries that contribute over £36 billion annually to the UK economy. Also, the Olympics No Marketing Rights scheme is excessively restrictive and is preventing British creative companies from realising the benefits they deserve from the Olympic legacy. The Committee calls for: a central champion of Intellectual Property in Government to promote and protect the interests of UK intellectual property; the maximum penalty for serious online IP theft to be increased to 10 years imprisonment, in line with the punishment for such offences in the physical world; more evidence and scrutiny before any exceptions to copyright such as those suggested by Hargreaves are applied; redoubled efforts to ensure that the video games tax credit is approved by the European Commission and introduced as soon as possible; reforms to the income tax and tax reliefs systems to recognise adequately the freelance nature of much creative work; greater recognition of the importance of arts subjects in the curriculum.
The report Banking Reform: Towards The Right Structure (HL 126 & HC 1012) welcomes the Government's acceptance of the principle that its proposed framework for ring-fencing requires reinforcement. The Commission sees no merit in the proposition that the first reserve power will create uncertainty for banks or put at risk their attempts to raise funds for lending. That power will be a source of uncertainty only for those minded to take actions that conflict with the objectives of the ring-fence. It is important that the regulator's powers to break-up a bank should be used only afterwards, by an independent reviewer. The Government should make explicit provision in the Bill to enable the regulator to require a bank to divest itself of a specified division or set of activities, which would fall short of the requirements of the first reserve power. It is essential that the timetable for the progress of the current Bill allows adequate time not only f
A lack of strategic thinking at the heart of Government threatens the UK's national interests, the Public Administration Committee warns. The MPs note Whitehall's tendency to 'muddle through' and point to the UK's military engagements in Iraq and Afghanistan, as examples where there has been a lack of overarching strategy. The report says clear strategic leadership is indispensible to advance British interests in an increasingly fast changing world. But it raises serious concerns about Whitehall's capacity to support the Foreign Secretary's aspiration to extend the UK's 'global reach and influence' with the necessary strategic analysis and assessment. This applies particularly to the Government's Strategic Defence and Security Review and the MPs question how far this can actually be 'strategic'? The Committee calls for: ministers to invest more time and energy into strategic leadership; the creation of a 'community of strategic thinkers' across Whitehall, to provide ministers with the capacity for strategic analysis and assessment; the National Security Council's remit to encompass national strategy; greater emphasis to be placed on strategic studies and training both within Whitehall and in academia; Parliament's Joint Committee on National Security Strategy to extend its remit to include national strategy; a small central budget to be established to fund central coordination of departmental contributions to national strategy.
Since 2010, the government has made a number of changes to its procurement structures and processes. There have been signs of good progress in key areas: expenditure on common goods and services is more centralised; participation by small and medium enterprises (SMEs) has increased; and the Government Procurement Service is an improvement on its predecessor. The creation of a Chief Procurement Officer and associated positions has formed clearer lines of responsibility at the centre, and the Cabinet Office now has a firmer grip of procurement expenditure. Overall, the NAO expresses confidence in the Service's reported savings of £426 million in 2011-12 as a result of reductions in price owing to centralised procurement. Nevertheless, there have been problems in implementing the reforms, including ineffective governance structures, unrealistic targets, incomplete data and weaknesses in contract management. Government is not maximising the potential for savings through centralised procurement. There are some operational issues with GPS's management of the central contracts, with departments raising concerns about the inconsistency of contract management and the quality of customer service. And some weaknesses in implementation mean that the centralised approach is not releasing procurement resources in departments as originally expected. Roles and responsibilities for day-to-day contract management are unclear and there are inadequate mechanisms by which departments and the centre of government can hold each other to account. The Cabinet Office will have to lead a major cultural shift across government if the centralising of buying goods and services is to deliver the significant benefits on offer.
The Government's objective is to build a strong economy and a fair society, in which there is opportunity and security for all. The 2007 Pre-Budget Report and Comprehensive Spending Review, 'Meeting the aspirations of the British People' (Cm 7227), presents updated assessments and forecasts of the economy and public finances, describes reforms that the Government is making and sets out the Government's priorities and spending plans for the years 2008-09, 2009-10 and 2010-11, including: maintaining macroeconomic stability; investing in the future with total public spending rising from £589bn in 2007-08 to £678bn in 2010-11 including an additional £2bn for capital investment in public services; continuing the sustained investment in the NHS, with resources rising from £90bn in 2007-08 to £110bn by 2010-11 and with value for money savings of at least £8.2bn contributing to the funding of the conclusions of the Darzi Review 'Our NHS, our future'; further sustained increases in resources for education, science, transport, housing, child poverty, security and international poverty reduction and the 2012 Olympic and Paralympic Games; simplifying the tax system to make it fairer, simpler and more efficient; modernising the tax system through major reforms to inheritance tax and capital gains tax; steps to protect the environment, including reforms of the tax regime for aviation and a new Environmental Taxation Fund to support the demonstration and deployment of new energy and efficiency technologies. For related publications, see 9780102944556 (2007 Budget Statement), 9780101698429 (2006 Pre-Budget), and for the Darzi Review see (http://www.ournhs.nhs.uk/files/283411_OurNHS_v3acc.pdf)
The Committee urges the Government to make the future of the sector a priority in the face of emerging barriers for growth. This is a golden age of opportunity the Committee says for the industry and proper support for small companies accessing global audiences is vital, it is potentially a world leader for the UK. It warns that overseas government subsidies, cheaper labour markets and skills shortages have created an uneven international playing field and more encouragement for development and growth is needed. The possibility of a games industry tax relief should be kept under review and a comprehensive assessment of the benefits of a games tax relief should be carried out, along with an examination of countries whose industries flourish without such support. A shortage of adequately qualified graduates to sustain the industry is also a real concern, skills like maths and computer science being needed and the brain drain of graduates to countries offering better incentives. The creation and retention of intellectual property is seen as a priority issue for the UK video games industry and the Government's review of intellectual property taxation will be monitored. The failure of the creative industries Minister to lobby the Treasury directly on games tax relief is both surprising and disappointing and the Committee asks the Government to explain how the industry's voice will be heard properly in future.
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