Government to establish expert Economic Advisory Council

News story

The Chancellor of the Exchequer Jeremy Hunt has today (Monday 17 October) announced that he will convene an expert panel of respected economists as part of a new Economic Advisory Council, as committed to by Prime Minister Liz Truss.

  • Group of leading and respected experts will meet regularly to discuss UK and international economies and financial markets
  • First Council members announced have decades of economic experience across the private and public sector
  • Announcement comes as Chancellor commits to do “whatever is necessary for economic stability”, which is a critical part of the government’s mission to go for growth

The Chancellor of the Exchequer Jeremy Hunt has today (Monday 17 October) announced that the government will convene an expert panel of respected economists as part of a new Economic Advisory Council, as committed to by Prime Minister Liz Truss.

The Council will act as a consultative forum for the government to be advised on UK and international economies and financial markets. The Council will consist of leading and respected economists and will be attended by the Chancellor and the Treasury’s Chief Economic Adviser.

The first Council members are announced today, with further members to be added in due course. All members will be attending in an independent capacity, and have been chosen for their personal knowledge and expertise, as relevant to advising the government on the UK economy

The Chancellor of the Exchequer Jeremy Hunt said:

I look forward to working with such an esteemed group of economic experts, whose advice will be invaluable.

In a period of global economic challenge and volatility, exacerbated by Putin’s illegal invasion of Ukraine, prioritising UK economic stability is vital and will underpin long-term growth.

Care will be taken to ensure Council members are not privy to any material non- public information, or market sensitive information.

Read the terms of reference for the government’s new Economic Advisory Council.

Initial list of Council members

  • Rupert Harrison, BlackRock
  • Gertjan Vlieghe, Element Capital
  • Sushil Wadhwani, PGIM Wadhwani
  • Karen Ward, J. P. Morgan Asset Management

Published 17 October 2022




Free legal advice expanded to help thousands more people at risk

Press release

Thousands of domestic abuse victims will be able to access free legal advice and representation under new changes to the legal aid system introduced today (17 October 2022).

Scales
  • domestic abuse victims to get expert legal advice through new protection orders and notices
  • additional £10 million for housing legal aid to help people at risk of losing their home
  • new legal support for parents and guardians to resolve family cases away from court

An extra £10 million a year will also be invested in housing legal aid, so that thousands more people can access legal advice when they fall into difficult times and face the risk of eviction.

The extra support for domestic abuse victims will kick in to support the use of new Domestic Abuse Protection Notices and Domestic Abuse Protection Orders, which the Government committed to introducing in the Domestic Abuse Act 2021.

Once in use, police will be able to issue Protection Notices to provide immediate protection for victims following an incident, for example by requiring a perpetrator to leave the victim’s home. Protection Orders will be handed out by the court to impose longer-term protection, including ordering the perpetrator to attend behaviour change programmes or wear an electronic tag.

Victims protected by these will now have access to free expert legal advice and representation in court.

Justice Minister Lord Bellamy KC said:

Legal advice should always be available to those who need it, especially victims of domestic abuse who often rely on lawyers to ensure they are protected from abusers.

By making it easier for victims to access legal aid, more people will be better supported through court proceedings and can start the process of moving on safely with their lives.

Reforms to the former Housing Possession Court Duty Scheme also mean that anyone facing eviction or repossession will receive free early legal advice on housing before appearing in court, as well as continuing to get advice and representation on the day of their hearing. By helping people facing the loss of their home at the earliest point, it will potentially avoid the need for court proceedings altogether. Individuals with a repossession notice can also receive early legal advice on debt and welfare benefit matters, to help with the wider issues they may face.

A further change will help domestic abuse victims by allowing doctors to submit letters of evidence for legal aid applications following video or telephone consultations.

Other legal aid changes that are being introduced today will:

  • ensure special guardians – family members or friends who take on parental responsibilities for a child – are eligible for legal aid in private court proceedings determining parental control over a child
  • standardise the means and merit testing requirements for birth parents involved in placement and adoption order proceedings where a local authority is authorised to place a child for adoption
  • ensure victims of domestic abuse applying for indefinite leave to remain in the UK, under the immigration rules, are eligible for legal aid

This is part of over £2.2 billion investment in civil and criminal legal aid over three years.

Notes to editors

Published 17 October 2022




Police dismissals to be reviewed

The internal review will be launched shortly and will help to ensure that the system is more effective in removing officers who are not fit to serve the public.

Baroness Casey’s interim report into the culture and standards at the Metropolitan Police Service, published today (Monday 17 October 2022) raises significant concerns, including that fewer officers are being dismissed, officers with multiple allegations made against them are still serving the public and police from ethnic minorities are disproportionately represented in the misconduct system.

The Home Office review is likely to consider:

  • the effectiveness of the existing system to dismiss those who fall seriously short of the standards expected by policing and the public
  • the impact of the introduction of changes to misconduct panels, including legally qualified chairs
  • whether forces are making use of their powers to discharge officers during their probationary period

Working with policing partners, it will also assess whether the regulatory framework for the police disciplinary system should be changed.

Home Secretary Suella Braverman said:

“The public rightly expects the highest standards of behaviour from police officers and the vast majority meet this expectation. But recently too many high-profile incidents and reports, especially in London, have damaged trust – which is unfair on the public and lets down other serving officers.

“This cannot continue. Culture and standards in the police must improve. And where an officer has fallen seriously short of these expectations, demonstrable, public action must be taken.

“I have been clear it is absolutely vital police act to restore trust, return to common-sense policing and treat the public and victims with the respect they deserve.

“I welcome the Metropolitan Police’s commitment to tackling the issues raised in the Baroness Casey report and hope this review will also help to address underlying concerns.”

The government has already overhauled the police discipline system over the last 7 years, making it more transparent, more proportionate and more accountable – for example introducing public misconduct hearings in 2015 and bringing in the Police Barred List in 2017, ensuring that officers and staff who are dismissed cannot re-join the police.

In addition, the 2-part Angiolini Inquiry is currently examining the issues raised by the conviction of then-serving officer Wayne Couzens for the murder of Sarah Everard last year. The second part is expected to scrutinise wider issues for policing and the safety of women.

Read more about the Home Office Statutory Guidance on Professional Standards, Performance and Integrity.




Pensions Dashboards – coming soon to a screen near you

Marking another important milestone in the Department for Work and Pensions’ (DWP) progress towards making Pensions Dashboards a reality, the regulations outline how pension schemes will connect to the dashboard ecosystem and what providers must do to become a qualified pensions dashboard service.

Pensions Dashboards will transform how savers access their pensions facts and figures, allowing people to see what they have in their various pensions – including their State Pension – in a single place online, at any time they choose.

DWP Minister for Pensions and Growth Alex Burghart said:

We want people across the UK to have the support and information they need to make informed choices about their financial futures.

Providing a convenient place for savers to access their pension information – at the touch of a button – will help people become better informed and more engaged savers, and support them to plan more effectively for retirement.

Chris Curry, Principal of the Pensions Dashboards Programme, said:

Pensions Dashboards will make a real difference to how people view their pensions savings, and how pension providers and schemes engage with their members and customers. There are now just over 6 months until the first window opens for pension providers and schemes to begin mandatory connection to the dashboards ecosystem. Dashboards will soon become a reality, and Government, the regulators and industry will work together to make them a success.

Taking onboard feedback from industry, the DWP also announced that the Dashboard Availability Point (DAP) will be announced 6 months in advance, giving time for industry to make final preparations for the public launch of the service.

The building and initial testing of the digital dashboards architecture is already well underway, with pension schemes being urged to ensure they are “data ready” for the launch of Pensions Dashboards.

2022 marks 10 years since the introduction of Automatic Enrolment, and with a record number of British people saving for retirement, and more people managing their finances online, the need for Pensions Dashboards is stronger than ever.

Further Information

Media enquiries for this press release – 0115 965 8781

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Chancellor Statement – 17 October

Mr Speaker,

The central responsibility of any government is to do what is necessary for economic stability.

Behind the decisions we take and the issues on which we vote are jobs families depend on, mortgages that have to be paid, savings for pensioners, and businesses investing for the future.

We are a country that funds our promises and pays our debts.

And when that is questioned, as it has been, this government will take the difficult decisions necessary to ensure there is trust and confidence in our national finances.

That means decisions of eye-watering difficulty.

But I give the House and the public this assurance: every single one of those decisions…

…whether reductions in spending or increases in tax, will prioritise the needs of the most vulnerable.

That is why I pay tribute to my predecessors for the Energy Price Guarantee, for the furlough scheme…

…and indeed for even earlier decisions to protect the NHS budget in a period when other budgets were being cut.

Mr Speaker, I want to be completely frank about the scale of the economic challenges we face.

We have had short term difficulties caused by the lack of an OBR forecast alongside the mini-budget…

…but there are also inflationary and interest pressures around the world.

Russia’s unforgivable invasion of Ukraine has caused energy and food prices to spike.

We cannot control what is happening in the rest of the world, but when the interests of economic stability mean the government needs to change course, we will do so – and that is what I have come to the House to announce today.

In my first few days in this job, I’ve held extensive discussions with the Prime Minister, Cabinet colleagues, the Governor of the Bank of England, the OBR, the head of the Debt Management Office, Treasury officials, and many others.

The conclusion I have drawn from those conversations is that we need to do more, more quickly, to give certainty to the markets about our fiscal plans.

And show through action, not just words, that the United Kingdom can and always will pay our way in the world.

We have therefore decided to make further changes to the mini budget immediately, rather than waiting until the Medium-Term Fiscal Plan in two weeks’ time, in order to reduce unhelpful speculation about those plans.

Mr Speaker I am very grateful for your agreement on the need to give the markets an early, brief summary this morning, but I welcome the opportunity to give the House details of the decisions now.

We have decided on the following changes to support confidence and stability.

Firstly, the Prime Minister and I agreed yesterday to reverse almost all the tax measures announced in the Growth Plan three weeks ago that have not been legislated for in Parliament.

So we will continue with the abolition of the Health and Social Care Levy, changes to Stamp Duty, the increase in the Annual Investment Allowance to £1 million, and the wider reforms to investment taxes.

But we will no longer be proceeding with:

The cut to dividend tax rates, saving around £1 billion a year.

The reversal of the off-payroll working reforms introduced in 2017 and 2021, saving around £2 billion a year.

The new VAT-free shopping scheme for non-UK visitors, saving a further £2 billion a year.

Or the freeze to alcohol duty rates, saving around £600 million a year.

I will provide further details on how those rates will be uprated, shortly.

Second, the Government is currently committed to cutting the basic rate of income tax to 19% in April of 2023.

This government believes that people should keep more of the money they earn, which is why we have continued with the abolition of the Health and Social Care Levy.

But at a time when markets are asking serious questions about our commitment to sound public finances, we cannot afford a permanent, discretionary increase in borrowing worth £6 billion a year.

So I have decided that the basic rate of income tax will remain at 20% – and it will do so indefinitely, until economic circumstances allow for it to be cut.

Taken together with the decision not to cut Corporation Tax, and restoring the top rate of income tax, the measures I’ve announced today will raise around £32 billion every year.

The third step I’m taking today, Mr Speaker, is to review the Energy Price Guarantee.

This was the biggest single expense in the Growth Plan and one of the most generous schemes in the world.

It is a landmark policy for which I pay tribute to my predecessor.

It will support millions of people through a difficult winter and will reduce inflation by up to 5%.

So I confirm today that the support we are providing between now and April next year will not change.

But beyond next April, the Prime Minister and I have agreed it would not be responsible to continue exposing the public finances to unlimited volatility in international gas prices.

So I am announcing today a Treasury-led review into how we support energy bills beyond April next year.

The review’s objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support for those in need.

Any support for businesses will be targeted to those most affected. And the new approach will better incentivise energy efficiency.

There remain many difficult decisions to be announced in the Medium-Term Fiscal Plan on October 31st…

…when I confirm that we will publish a credible, transparent, fully costed plan to get debt falling as a share of the economy over the medium term…

…based on the judgement and economic forecasts of the independent Office for Budget Responsibility.

I would like to thank the OBR, whose director Richard Hughes I met this morning, and the Bank of England whose Governor Andrew Bailey I have now met twice.

I fully support the vital, independent roles both institutions play, which give markets, the public, and the world confidence that our economic plans are credible, and rightly hold us to account for delivering them.

But I want some more independent, expert advice as I start my journey as Chancellor.

So I am announcing today the formation of a new Economic Advisory Council to do just that.

The Council will advise the government on economic policy with the first four names announced today:

  • Rupert Harrison, former Chief of Staff to the Chancellor of the Exchequer,

  • Gertjan Vlieghe, Element Capital

  • Sushil Wadhwani, Wadhwani Asset Management

  • Karen Ward, J. P. Morgan

Mr Speaker,

We remain completely committed to our mission to go for growth, but growth requires confidence and stability – which is why we are taking many difficult decisions, starting today.

But while we do need realism about the challenges ahead, we must never fall into the trap of pessimism.

Despite all the adversity and challenge we face, there is enormous potential in this country.

We have some of the most talented people in the world.

Three of the world’s top ten best universities.

The most tech unicorns in Europe.

One of the world’s great financial centres.

Incredible strengths in the creative industries…

…in science, research, engineering, manufacturing, and innovation.

All that gives me genuine optimism about our long-term prospects for growth.

But to achieve that, it’s vital that we act now to create the stability on which future generations can build.

The reason the United Kingdom has always succeeded is because at big and difficult moments we have taken tough and difficult decisions in the long-term interests of the country. That is what will we now do.

And I commend this statement to the House.