HM Treasury (HMT)
HM Treasury: our vision
Over the lifetime of the Parliament, the Treasury will aim to secure a rebalanced and resilient economy that will create the conditions for sustainable growth. The Treasury will focus on three priorities:
First, heading the Government’s drive to reduce the structural deficit in a fair and responsible way. The majority of the reduction will be achieved through savings in public spending announced in the Spending Review. The Treasury will support and challenge departments to ensure the spending settlement sticks and will lead directly on a number of measures. There will be greater transparency in forecasting and public spending. However, this alone will be insufficient to deliver the Coalition’s priorities. Departments’ business plans will set out how they will reform public services. The tax system will be also be reformed to ensure it remains sustainable, helping to put the public finances on a sounder footing.
Secondly, to create the conditions that secure an economy that is growing sustainably, is more resilient, and is more balanced between public and private sectors and between regions. Reducing the deficit will support these aims, allowing businesses and households to benefit from lower interest rates and reducing the public money diverted to paying interest on the debt. Capital investment will be protected to maintain and develop a national infrastructure that supports growth. Reforms to taxation will create a more competitive business environment, reducing and simplifying taxation of businesses, while protecting lower income households. Through investment and reforms, the Government will support a low carbon economy. The department will work with the Department for Business, Innovation and Skills (BIS) to explore how open and efficient markets can be enhanced and how smaller businesses can gain improved access to funding.
Thirdly, the Treasury will reform the regulatory framework for the financial sector to avoid future crises. The world economy has been through an unprecedented shock sparked by a crisis in the financial services sector. Within the UK, the Treasury will reform regulation of the financial sector to ensure it is sustainable and responsible - and able to support the wider economic recovery while remaining competitive. When the timing is right, the department will withdraw from the temporary support provided to sustain the sector. But action is also needed internationally to ensure strong, sustainable and balanced growth in the world economy. The Treasury will engage actively in the G20 and the EU to foster greater international cooperation to achieve this. The Treasury will also seek to expand opportunities for trade and promote the UK as a profitable environment for inward investment, including with major emerging markets.
George Osborne, Chancellor of the Exchequer
HM Treasury: our priorities
Reduce the structural deficit in a fair and responsible way
Take action to tackle the deficit in a fair and responsible way, ensure that taxpayers’ money is spent responsibly, and get the public finances back on track whilst protecting growth.
Secure an economy that is more resilient, and more balanced between public and private sectors and between regions
Take action to boost enterprise, support green growth and build a fairer and more balanced economy where we achieve a sustainable distribution of growth across the economy, in particular in regions and sectors.
Reform the regulatory framework for the financial sector to avoid future financial crises
The current system of financial regulation is replaced with a framework that promotes responsible and sustainable banking, where regulators have greater powers to curb unsustainable lending practices and we take action to promote more competition in the banking sector.
Other major responsibilities
Reduce the structural deficit in a fair and responsible way
Embed strong financial management and governance across government.
Secure an economy that is more resilient, and more balanced between public and private sectors and between regions
Undertake economic and fiscal analysis to ensure that policy decisions are informed by the best possible advice.
Fund the Government’s debt and manage its cash and reserves efficiently and effectively.
Pursue strong, sustainable and balanced growth in the EU and globally.
Reform the financial sector to avoid future financial crises
Work with international partners to counter illicit financing, including money laundering and terrorist financing.