The PBR includes plans to improve MBS, stimulate non-bank lending channels, commence a new regulatory framework for recognised inter-bank payments systems and promote financial education. It also covers bond markets.
HM Treasury has announced plans to improve the MBS, stimulate non-bank lending channels, commence anew regulatory framework for recognised inter-bank payments systems and promote financial education. It also covers bond markets.
A strong and thriving UK financial services sector supports UK growth and prosperity. In order for this positive contribution to be delivered, market participants and regulators need to ensure that the sector’s development is sustainable and supports long-term economic growth.
The Government attaches great importance to tackling the remuneration practices that contributed to excessive risk-taking by the banking industry. The 2009 Pre-Budget Report announces that:
• a temporary bank payroll tax of 50 per cent will apply to discretionary bonuses above £25,000 awarded in the period from Pre-Budget Report to 5 April 2010 for each individual employee.
The Government has taken decisive steps to maintain financial stability and promote the flow of credit to the economy. The success of these financial sector interventions is reflected in a downward assessment of their eventual net fiscal cost. Building on these interventions, the 2009 Pre-Budget Report announces that the Government will:
• explore ways of encouraging more sustainable, transparent and standardised mortgage-backed securities markets;
• consult on and promote the UK regulated covered bond market; and
• publish a discussion paper on developing non-bank lending channels.
The Government will shortly announce a package of measures to reduce the impact of any future failure of systemically important investment banks. It is also working at the national, EU and global level to shape the future development of the financial services sector. The 2009 Pre-Budget Report announces:
• the introduction of a Code of Practice on taxation for banks;
• a new advisory group on professional and financial services;
• measures to promote a level playing field for Islamic finance products;
• a specific Governance Code for Building Societies and other mutuals; and
• the commencement of a new regulatory framework for recognised inter-bank payments systems.
Competition and choice are central to responsive and well functioning markets. The Government is taking steps to promote competition in financial services, and to ensure that consumers are empowered to make informed choices, have access to the services they need, and are appropriately protected. The 2009 Pre-Budget Report announces:
• £20 million to fund the national rollout of the Money Guidance service in 2010-11, helping one million people to manage their money better; and
• £5 million to fund extended opening hours at Citizens Advice bureaux in 2010-11, helping an additional 300,000 people.
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