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* the takeover of general motors by the uks , the financial conduct authority, has established the british banking regulator as the largest non-bank financial services regulator in the world, one with the power to compel major banks to raise capital and to remove managers guilty of misconduct, according to the findings of the house of commons public accounts committee, published on 6 september. the committee, which examined the operation of the fca as a result of the much-publicised collapse of the bank lehman brothers during the global financial crisis, has exposed how the regulator has made major reform of the sector a top priority while still making preparations for a much-needed transition to the next stage of its reform and consolidation. the committee has warned that the regulator may need a bit more time to realise its ambition of leading the world in financial regulation, noting with concern that the uk is currently experiencing a second wave of bank failures and collapses that are slowing the completion of the fca reforms and creating uncertainty in financial markets.

the bank of england are reported to have committed to a deposit guarantee scheme, to provide protection for savers with deposits of up to £50,000, in a bid to prevent another bank collapse. the board advised the chancellor that it would take no action to start a scheme until the autumn budget, as set out in the budget response to the chancellor of the exchequer’s autumn statement of 26 november, 2017. on thursday, the chancellor wrote to the bank of england to announce that the bank will start a scheme at the beginning of next month.




the spending review has taken place against a backdrop of three years of austerity and of spending cuts leading to local public bodies struggling to service the debts and other commitments arising from government budgets, the cuts to tax credits, universal credit (allowing people to claim their benefits online) have made it ever harder to pay the bills and social care promises have been left in the lurch. there has also been a rise in the number of claimants deemed to be ‘really poor’ – daar in september 2020 – and a rise in emergency accommodation. a review in 2012–13 found that the public sector was well run in relation to spending and financial risk, by international standards. the government’s dpi strategy was adopted as the overarching framework for the revised public sector-wide financial management system – the new pspfms (21 october 2015). the underlying purpose of this is to provide focused, coherent, lawful and transparent governance, accountability and risk management; to give public organisations a financial framework, policies, processes and systems; and to standardise financial reporting and control throughout the public sector. the new policy regulation code will also deliver the end of the old-style approach where funding requests are rubber stamped in large quantities and the government relies on third parties to make sure that money is spent in line with the spending reviews. the government will work with the new independent accountable governance board to end the dominance of the bcr in decision making. from sr20, appraisals must give a comprehensive picture of cost and benefits, including impacts that are difficult to monetise. in particular, options will be assessed first and foremost based on whether they deliver relevant policy objectives. any option which fails to do so cannot be considered value for money and will not progress to shortlisting stage. the government is also changing the guidance so it will no longer be acceptable for proposals to be place blind. business cases will not only have to align with relevant local strategies but will have to set out how they will impact different places on a comply or explain basis. for the first time, business cases will have to set out how they will impact different places on a comply or explain basis. 5ec8ef588b


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