HISTORIC PRESS RELEASE : Second UK Progress Report on Product Services and Capital Markets [December 1999]

The press release issued by HM Treasury on 2 December 1999.

The UK’s continuing commitment to promoting economic reform in all areas of the economy and to ensuring the reforms benefit consumers through more choice, better quality and lower prices was set out today in a joint report from the Chancellor Gordon Brown and Minister for Energy and Competitiveness in Europe Helen Liddell.

The Progress Report on Product, Services and Capital Markets sets out four main aims for reform. These are:

• strengthening competition;
• encouraging enterprise and innovation;
• improving conditions for investment; and
• enhancing public sector productivity.

Gordon Brown said:

“The UK has a clear strategy to tackle the productivity gap with our main competitors and address long-standing weaknesses in the UK economy. The aim is to create a strong and productive economy with high and stable rates of growth and employment, both of which are vital for raising living standards.”

Helen Liddell said:

“This report shows the value of our economic reform agenda. The reforms to our product, service and capital markets are designed to promote more competitive, innovative, open and flexible markets which enable firms to grow and deliver a better deal for the consumer. It is about lower prices and better products and services.”

The report provides a further update on specific examples of UK policies where reform is in progress. These include:

• the new Competition Act – which will mean tougher action on firms engaging in anti-competitive practices so as to stimulate competitive markets and so bring benefits to consumers and businesses;
• the energy market – where liberalisation is delivering price cuts to consumers and businesses, and regulation is being reformed to focus on the needs of the consumer, to promote competition and to improve transparency and accountability;
• electronic commerce – where the Government aims to give everyone the chance to make the best use of the Internet;
• R&D – where the Government is introducing a new tax relief to encourage investment;
• financial services – where on-going reform will improve the regulatory system and protect investors whilst taking account of market developments and competitive concerns; and
• venture capital – where the Government is introducing a new Enterprise Fund.

The Progress Report, produced annually by Member States at the request of the Cardiff European Council, provides an update on action to reform product, services and capital markets to strengthen competition, encourage enterprise, innovation and investment, enhance public sector productivity, and to ensure reforms benefit consumers through more choice, better quality and lower prices. In line with the procedure agreed at Cardiff during the UK Presidency, it highlights areas of best practice as well as those areas where the UK can learn from others.