Page 3: Government aims and objectives
Economic stability is essential for long-term growth and high levels of employment. The person responsible for running the nation’s economy to meet this objective is the Chancellor of the Exchequer. The UK Government Departments responsible for executing taxation and spending policies that come directly under the responsibility of the Chancellor are HM Treasury, Inland Revenue and Customs and Excise.
The Chancellor of the Exchequer sets the aim and objectives of HM Treasury:
Aim - To raise the rate of sustainable growth and achieve rising prosperity through creating economic opportunities for all.
- Maintaining a stable macroeconomic framework with low inflation
- Maintaining sound public finances in accordance with the Code for Fiscal Stability
- Improving the quality and cost effectiveness of public services
- Increasing the productivity of the economy and expanding economic and employment opportunities for all, through productive investment, competition, innovation, enterprise, better regulation and increased employability
- Promoting a fair and efficient tax and benefit system with incentives to work, save and invest maintaining an effective accounting and budgetary framework and promoting high standards of regularity, propriety and accountability
- Securing an efficient market in financial services and banking with fair and effective supervision
- Arranging for cost effective management of the government’s debt and foreign currency reserves and the supply of notes and coins
- Promoting international financial stability and the UK’s economic interests and ideas through international co-operation as a way of increasing global prosperity including seeking to protect the most vulnerable groups.
In the complex and interdependent world of Government, where a single decision may have widespread ramifications, HM Treasury’s work involves co-operation with a number of organisations and Government Departments that enables it to assist the Government in a variety of ways. These include:
- Government departments such as the Department of Trade and Industry (DTI), which carries out the Government’s policies on the industrial base of the nation in areas such as overseas trade and competition policy, promotion of new businesses and international competitiveness
- The Bank of England, the UK’s central bank works closely with HM Treasury and has responsibility for the issue of English bank-notes, as well as for implementing monetary policy, including interest rates
- Tax collecting bodies such as the Inland Revenue and Customs and Excise
- The Royal Mint, which manufactures and distributes all of the coins required to meet public demand
- Debt Management Office, which raises finance by issuing Government bonds in the wholesale market
- National Savings, which raises cost effective finance for the Government from the retail sector
- Office for National Statistics.