Category: Press Releases

  • PRESS RELEASE : The government unveils new “Energy Bills Discount Scheme” for businesses [January 2023]

    PRESS RELEASE : The government unveils new “Energy Bills Discount Scheme” for businesses [January 2023]

    The press release issued by HM Treasury on 9 January 2023.

    • Scheme will provide a discount on high energy costs to give businesses certainty while limiting taxpayers’ exposure to volatile energy markets
    • Businesses in sectors with particularly high levels of energy use and trade intensity will receive a higher level of support.

    A new energy scheme for businesses, charities, and the public sector has been confirmed today (9th January), ahead of the current scheme ending in March. The new scheme will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024.

    This will help businesses locked into contracts signed before recent substantial falls in the wholesale price manage their costs and provide others with reassurance against the risk of prices rising again.

    The government provided an unprecedented package of support for non-domestic users through this winter, worth £18 billion per the figures certified by the OBR at the Autumn Statement. This is equivalent to the cost of an increase of around three pence on people’s income tax.

    The government has been clear that such levels of this support, unprecedented in its nature and huge scale, were time-limited and intended as a bridge to allow businesses to adapt. The latest data shows wholesale gas prices have now fallen to levels just before Putin’s invasion of Ukraine and have almost halved since the current scheme was announced.

    The new scheme therefore strikes a balance between supporting businesses over the next 12 months and limiting taxpayer’s exposure to volatile energy markets, with a cap set at £5.5 billion. This provides long term certainty for businesses and reflects how the scale of the challenge has changed since September last year.

    The Chancellor of the Exchequer, Jeremy Hunt, said:

    My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.

    Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.

    Even though prices are falling, I am concerned this is not being passed on to businesses, so I’ve written to Ofgem asking for an update on whether further action is action is needed to make sure the market is working for businesses.

    From 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefitting from lower energy prices.

    A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries. A long standing category associated with higher energy usage; these firms are often less able to pass through cost to their customers due to international competition. Businesses in scope will receive a gas and electricity bill discount based on a supported price which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity.

    Energy Bill Discount Scheme summary

    For eligible non-domestic customers who have a contract with a licensed energy supplier, the government is announcing the following support:

    • From 1 April 2023 to 31 March 2024, all eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill.
    • This will be subject to a wholesale price threshold, set with reference to the support provided for domestic consumers, of £107/MWh for gas and £302/MWh for electricity. This means that businesses experiencing energy costs below this level will not receive support.
    • Customers do not need to apply for their discount. As with the current scheme, suppliers will automatically apply reductions to the bills of all eligible non-domestic customers.

    For eligible Energy and Trade Intensive Industries, the government is announcing:

    • These businesses will receive a discount reflecting the difference between a price threshold and the relevant wholesale price.
    • The price threshold for the scheme will be £99/MWh for gas and £185/MWh for electricity.
    • This discount will only apply to 70% of energy volumes and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity.

    The Chancellor has also today written to OFGEM, asking for an update in time for the Budget on the progress of their review into the non-domestic market. He has asked for their assessment of whether further action is action is needed to secure a well-functioning market for non-domestic customers following reports of challenges certain customers are facing, including in relation to the pricing and availability of tariffs, standing charges and renewal terms, and the ability of certain sectors to secure contracts.

    Businesses in England will also benefit from support with their business rates bills worth £13.6 billion over the next five years, a UK-wide £2.4 billion fuel duty cut, a six month extension to the alcohol duty freeze and businesses with profits below £250,000 will be protected from the full corporation rate rise, with those making less than £50,000 – the vast majority of UK companies – not facing any corporation tax increase at all.

  • PRESS RELEASE : Fund launched to protect domestic abuse victims through prevention [January 2023]

    PRESS RELEASE : Fund launched to protect domestic abuse victims through prevention [January 2023]

    The press release issued by the Home Office on 9 January 2023.

    A £36 million Domestic Abuse Perpetrator Intervention Fund and new guidance will tackle domestic abuse and stalking.

    The Home Office has committed up to £18 million per year over 2 years towards the next phase of the Domestic Abuse Perpetrator Intervention Fund, bringing the total fund to £36 million.

    Police and crime commissioners (PCCs) will be given funding to increase the availability of domestic abuse perpetrator intervention schemes in their areas, such as behaviour change programmes, that aim to improve victim safety and reduce the risk posed by abusers.

    Since 2020 the Home Office has awarded over £41 million to PCCs across England and Wales.

    Minister for Safeguarding Sarah Dines said:

    I am fully committed to tackling domestic abuse and protecting victims from suffering the lasting impacts of these horrific crimes.

    Our vital Domestic Abuse Perpetrator Intervention Fund allows police forces to intervene early, and work with perpetrators to change their behaviour and reduce the risk they pose, in order to protect victims.

    Previous iterations of the Domestic Abuse Perpetrator Intervention Fund have funded schemes such as the Drive Project, which works with high harm and serial perpetrators to prevent them from abusing again.

    Recent evaluation from the Drive Project has shown that participation from dangerous perpetrators resulted in a reduction in abuse and risk amongst users of the service, with 82% fewer perpetrators using physical abuse.

    Today (9 January 2023) the Home Office has also published 7 standards which provide commissioners with the guidance they need to commission effective interventions with perpetrators, whilst also ensuring that victims’ safety and welfare remains paramount. These have been created based on existing evidence of perpetrator interventions.

    The standards outline the need for interventions to be conducted at the right time and by highly skilled staff. They also outline the importance of holding the perpetrator accountable for their actions, and highlight that the priority outcomes for such interventions should be enhanced safety and freedom for victims and survivors.

    The publication of the standards and launch of the Domestic Abuse Perpetrator Intervention Fund is part of the government’s commitment to tackle domestic abuse, as laid out in the Tackling Domestic Abuse Plan.

    The plan signifies the government’s continuous efforts to tackle domestic abuse through prioritising prevention, supporting victims, pursuing perpetrators, and building a stronger system. In addition, the Domestic Abuse Act 2021 gave clearer guidance as to what constitutes domestic abuse and provides stronger protection for victims of domestic abuse.

  • PRESS RELEASE : For now, 4.1 million Syrians can breathe a sigh of relief knowing cross-border support will continue [January 2023]

    PRESS RELEASE : For now, 4.1 million Syrians can breathe a sigh of relief knowing cross-border support will continue [January 2023]

    The press release issued by the Foreign Office on 9 January 2023.

    Explanation of vote by Ambassador Barbara Woodward at the adoption of Security Council resolution on cross-border aid in Syria.

    Thank you, President. The UK welcomes the confirmation of the UN’s cross-border mandate, which will continue to provide lifesaving assistance to those in need in North West Syria.

    We also strongly welcome the unity of Council in their clear support for this humanitarian lifeline, and thank Switzerland, Brazil, Ireland and Norway for their leadership.

    4.1 million Syrians rely on the food, medical supplies and other humanitarian products that the mechanism provides. For now, they can breathe a sigh of relief – in the knowledge that this support will continue. But we must ensure that we provide more certainty to them – and to those UN and NGO workers who serve them.

    The humanitarian community consistently warns that shorter mandates result in a perpetual cycle of contingency planning, which limits the capacity to help those in need. The Secretary-General has been clear – the humanitarian imperative demands a 12 month mandate. Let that humanitarian call be the guiding principle of our future discussions..

    We are pleased that, today, the Council has played its role in supporting the Syrian people. But the people of Syria deserve more. A genuine political process, in line with Security Council Resolution 2254, is the only sustainable means of ending the suffering for the people of Syria.

  • PRESS RELEASE : Foreign Secretary summons Iranian diplomat following executions [January 2023]

    PRESS RELEASE : Foreign Secretary summons Iranian diplomat following executions [January 2023]

    The press release issued by the Foreign Office on 9 January 2023.

    Foreign Secretary James Cleverly has summoned Iran’s most senior diplomat after the regime executed two more protestors.

    Mohammad Mahdi Karami and Seyyed Mohammad Hosseini were executed by the Iranian authorities over the weekend, prompting widespread international condemnation. The UN responded to the executions by saying they followed ‘unfair trials based on forced confessions’.

    The UK has repeatedly called on the regime to end the use of the death penalty, both publicly and directly with Iranian officials.

    Foreign Secretary James Cleverly said:

    Today I have summoned the Iranian Chargé d’Affaires to condemn in the strongest possible terms the abhorrent executions we witnessed over the weekend.

    The Iranian regime must end its campaign of brutal repression and start listening to the concerns of its people.

    Stephen Hickey, Director Middle East and North Africa at the FCDO, held the meeting with Mehdi Hosseini Matin and underlined the UK’s opposition to the death penalty in all circumstances.

    Since the death of Mahsa Amini, the UK has imposed more than 40 human rights sanctions including on leading political, judicial and security officials in Iran, for their role in serious human rights violations.

  • PRESS RELEASE : Funding boost to support more young people to progress in education [January 2023]

    PRESS RELEASE : Funding boost to support more young people to progress in education [January 2023]

    The press release issued by the Department for Education on 9 January 2023.

    Increase in funding worth an additional £125 million for 16-19 education for school sixth forms, colleges and other providers next year.

    Young people to benefit from cash boost so they continue to have access to high-quality courses including T Levels, A levels and other technical and vocational qualifications.

    Targeted funding increases to support engineering, construction and digital subjects to help with the additional costs of teacher recruitment and retention for these key subjects.

    Part of the government’s drive to make sure more young people climb the ladder of opportunity and businesses can tap into the skilled workforce they need for the future.

    Young people aged 16-19 are set to benefit from a funding boost that will ensure they can continue to access high-quality education and go on to secure great jobs.

    The government has today (Monday 9 January) announced increased funding rates worth an additional £125 million for schools, colleges and other providers delivering education to 16- to 19-year-olds next year (2023 to 2024).

    The funding will mean young people, regardless of where they live or their background, will continue to have access to the courses and qualifications they need to build successful careers. These include T Levels and A levels and will also help meet the future skills needs of businesses and the economy.

    Minister for Skills, Apprenticeships and Higher Education Robert Halfon said:

    Our ambition is to transform young people’s life chances by giving them the chance to climb the education and skills ladder of opportunity.

    That is why we are investing in resources and skills qualifications that will offer more learning for students and access to high-quality qualifications including T Levels, A Levels and technical qualifications.

    The funding announced today will see:

    The national funding rate for students aged 16 and 17 and students aged 18 and over with high needs increased by 2.2% to £4,642. In addition, funding will continue to be provided for an extra 40 hours per student to support them catching up on time lost due to the pandemic.

    An increase in funding rates for engineering, construction, and digital subjects to help education providers with the additional costs of recruiting and retaining great teachers so young people benefit from excellent teaching.

    The funding is part of the £1.6 billion for further education announced at Spending Review in 2021. It is in addition to the extra £291m announced for 16 to 19 education in 2021 to 2022 and the £400m increase in funding that the government provided in 2020 to 2021.

  • PRESS RELEASE : Northern Ireland Protocol meeting, January 2023 – joint statement from the Foreign Secretary and Vice President Šefčovič [January 2023]

    PRESS RELEASE : Northern Ireland Protocol meeting, January 2023 – joint statement from the Foreign Secretary and Vice President Šefčovič [January 2023]

    The press release issued by the Foreign Office on 9 January 2023.

    Vice President Šefčovič met Foreign Secretary Cleverly and Northern Ireland Secretary Heaton-Harris in London on 9 January. They took stock of work to find joint solutions to the concerns raised by businesses and communities in Northern Ireland. The meeting was cordial and constructive.

    They underlined the EU and UK’s shared commitment to protect the Belfast (Good Friday) Agreement in all its parts, while protecting the integrity of both the EU Single Market and the UK internal market.

    They agreed that while a range of critical issues need to be resolved to find a way forward, an agreement was reached today on the way forward regarding the specific question of the EU’s access to UK IT systems.

    They noted this work was a critical prerequisite to building trust and providing assurance, and provided a new basis for EU-UK discussions.

    EU and UK technical teams will work rapidly to scope the potential for solutions in different areas on the basis of this renewed understanding, and the Foreign Secretary, the Northern Ireland Secretary and Vice President Šefčovič would take stock of progress on 16 January.

  • PRESS RELEASE : UK pledges extra support to help Pakistan rebuild after floods [January 2023]

    PRESS RELEASE : UK pledges extra support to help Pakistan rebuild after floods [January 2023]

    The press release issued by the Foreign Office on 9 January 2023.

    UK and international partners join a conference co-hosted by Pakistan and the UN in Geneva to help garner support for Pakistan’s flooding response and recovery.

    • Minister Andrew Mitchell will announce funding package at international conference in Geneva
    • British support will provide water, sanitation, cash, and shelter, on top of funding already pledged to boost climate resilience and adaptation
    • More than 17,000 households in Pakistan have already been helped with clean water and healthcare
    • The UK’s Disasters Emergency Committee (DEC) launched a Pakistan Appeal last September, which has had an amazing response from the British people with over £40 million raised, including £5m of UK Aid Match funding. This money will fund leading UK aid charities which are providing emergency relief on the ground

    The UK and its international partners will today (Monday 9 January) join forces to support Pakistan rebuild and recover from the unprecedented floods last summer that affected tens of thousands of people.

    Pakistan and the UN are jointly hosting a conference in Geneva to help raise support for the country’s recovery and reconstruction.

    Last year, Pakistan was on the front line of the impact of climate change when catastrophic flooding swept away homes and livelihoods, leaving 20 million in need of humanitarian assistance.

    It is estimated the country will need around $16 billion for the next three to five years to rebuild the devastation.

    The UK, one of the first countries to respond to the disaster, is today allocating over £9 million from its Pakistan budget to help tackle the impact of the flooding, bringing the total it has now committed to the humanitarian response to £36 million.

    This new allocation will help provide those most in need with essential services, and will also support the Government to plan for a climate resilient future. Support from the UK is providing water, sanitation, and hygiene to help prevent waterborne diseases, as well as nutrition to tackle malnutrition, cash support, shelter and protection services for women and girls.

    This funding is in addition to support the UK has already pledged for climate resilience and adaptation in Pakistan.

    Andrew Mitchell will speak at the conference, co-hosted by Pakistan’s Prime Minister Shehbaz Sharif and UN Secretary General António Guterres.

    Andrew Mitchell is expected to say:

    I visited Pakistan following the 2010 floods and saw the devastating impact on some of the world’s most vulnerable people. We stood by Pakistan then, as we do now.

    He will also say

    Looking to the future, it is crucial to build defences against weather-related disasters, as our changing climate puts us more and more at risk. This is why the UK will help Pakistan to adapt and mitigate the effects of climate change.

  • PRESS RELEASE : New biosecurity strategy to protect food security, trade and plant health [January 2023]

    PRESS RELEASE : New biosecurity strategy to protect food security, trade and plant health [January 2023]

    The press release issued by the Department for Environment, Food and Rural Affairs on 9 January 2023.

    A new action plan to protect plants from pests and diseases was published today (Monday 9 January) by Defra, in partnership with the Forestry Commission and the Scottish and Welsh Governments.

    The Plant Biosecurity Strategy for Great Britain sets out a five-year vision for plant health, consisting of an action plan to secure national biosecurity, protect native species and drive economic growth. It positions the UK as a global leader in plant biosecurity, setting out our vision to create a new biosecurity regime and bio-secure plant supply chain, which will safeguard food security and help mitigate the effects of climate change. It comes following updated figures which show that plants provide an annual value of £15.7 billion to the United Kingdom.

    Specific actions include expanding the Animal and Plant Health Agency’s Internet Trading Unit to step up monitoring of online retailers and social media sites for the trade of high-risk plant products, in order to stop potentially devastating pests and diseases from entering the country. Additionally, the strategy sets out how more than 30 signatories, including Defra, the Royal Horticultural Society, National Farmers Union and the Woodland Trust, will deliver an ambitious programme of behavioural change across society through the Public Engagement in Plant Health Accord. This one-of-a-kind collective commitment will kickstart a national conversation around biosecurity and promote the actions that the public can take to protect tree and plant health.

    Lord Benyon, Minister for Biosecurity, said:

    This landmark strategy sets out how we will protect Great Britain’s plants, with the government, industry and the public working together to tackle the risks posed by plant pests and diseases. In light of climate change, tackling these varied and mounting risks will be critical to maintaining our food security, as well as facilitating safe trade amidst a challenging economic backdrop.

    Today’s announcement demonstrates this Government’s ironclad commitment to protecting and restoring our natural environment for future generations, as we deliver on our tree planting targets and ambition to achieve net zero.

    Nicola Spence, UK Chief Plant Health Officer, said:

    Plant pests and diseases know no borders. As the global trade in plants and plant products continues to grow, our precious ecosystems, native species and biosecurity are at risk. The resultant threats posed to our treescapes, food security and the global economy are all too real.

    Therefore, I am proud to officially launch the Plant Biosecurity Strategy for Great Britain, which will deliver a step change in our plant health protections, actions and behaviours. This will position Great Britain as a global leader in plant biosecurity and set an example for the world to follow.

    Lesley Griffiths, the Welsh Government’s Minister for Rural Affairs, said:

    The Plant Biosecurity Strategy emphasises our commitment to protect the health of our plants. Plants are the foundation of our ecosystems and provide life to the whole food chain. The strategy outlines what we will do, working with others, to further protect this vital resource.

    Sara Lom, The Tree Council CEO, said:

    The Tree Council was created nearly 50 years ago in response to Dutch elm disease and now leads activity into the devastating impacts of ash dieback. From first-hand experience, we know that effective biosecurity is vital in defence of Britain’s trees and plants.

    We welcome the launch of the Plant Biosecurity Strategy for Great Britain and look forward to working with Defra and partners to protect our treescape.

    The Plant Biosecurity Strategy for Great Britain will also set out how enhancements to the UK Plant Health Risk Register, which currently lists 1,200 pests and diseases of potential threat to our biosecurity, will improve our understanding of complex and cumulative risks to plant health. As part of this, an array of new plant health IT systems will bolster our outbreak preparedness and emergency response.

    Incorporated into the strategy is a commitment to work with the UK Plant Health Alliance to develop a new five-year roadmap for the Plant Healthy certification scheme, which provides biosecurity certification to nurseries, businesses and charities operating in the horticultural sector. RHS Garden Harlow Carr in Yorkshire has become the first public garden in England to be certified as Plant Healthy, in recognition of its work to prevent the introduction and spread of plant pests, diseases and invasive species and promote good plant health.

    The strategy also emphasises the collective role and responsibilities we all have in upholding high standards of biosecurity — for example, the importance of not bringing home plants, trees, fruit and seeds from overseas, as doing so could inadvertently cause pests, diseases and invasive species to be introduced or to spread in new areas. This aligns with the UK Government’s long-running ‘Don’t Risk It!’ campaign, which featured on the Animal and Plant Health Agency’s Gold Medal-winning stand at the RHS Chelsea Flower Show 2022.

    The strategy builds on the work achieved under the previous 2014 strategy as well as the consultation launched in September 2021 by Defra, the Forestry Commission, the governments of Scotland and Wales, and our agencies and delivery partners. It follows the convening of the world’s first International Plant Health Conference in London last year, which brought together 500 policymakers, academics and experts from over 74 countries to address current and future plant health challenges.

    Today’s announcement comes ahead of the publication of the GB Invasive Non-Native Species (INNS) Strategy in early 2023. This will set out coordinated actions across society to prevent the arrival of new INNS and tackle the impacts of those established – securing our biosecurity and minimising their environmental and economic impacts.

    The Plant Biosecurity Strategy for Great Britain (2023 to 2028) is available here.

  • PRESS RELEASE : Reforms outlined for Britain’s capacity market to secure a clean energy future [January 2023]

    PRESS RELEASE : Reforms outlined for Britain’s capacity market to secure a clean energy future [January 2023]

    The press release issued by the Department for Business, Energy and Industrial Strategy on 9 January 2023.

    UK government outlines important proposals to reform Great Britain’s Capacity Market, ensuring it is fit for a net zero future while ensuring the security of our electricity supply.

    • Consultation launched to reform GB’s Capacity Market, the government’s main mechanism for ensuring security of electricity supply
    • proposals will improve the robustness of the energy supply and provide greater incentive for investment in low carbon technologies central to homegrown energy
    • this consultation is a step in the government’s long term plan to enhance energy security and deliver a net zero power system

    Improved energy security and a more secure transition to net zero are set to be delivered through the UK government’s significant proposals to reform Great Britain’s Capacity Market (CM).

    The Capacity Market is the scheme that sits at the heart of the government’s strategy for ensuring security of electricity supply in Great Britain, using competitive auctions to make sure there is enough reliable capacity to meet Great Britain’s peak electricity demands, safeguarding against the possibility of future blackouts.

    Since its introduction in 2014, the landscape in which the Capacity Market operates has shifted with renewable energy now making up a significant proportion of our electricity generation system. To ensure the Capacity Market is fit for the future, the government is today publishing action plans to ensure the scheme keeps pace with this transition to cleaner energy sources and technologies – often cheaper than fossil fuel counterparts – and can support the delivery of a decarbonised power system by 2035, without compromising security of supply.

    This includes consulting on new contracts for low carbon technologies to incentivise their participation in CM auctions, creating new timelines and requirements for oil and gas generators to reduce emissions from 2034, such as through implementing carbon capture and hydrogen to decarbonise and reducing running hours, and strengthening the scheme’s ability deliver security of supply in times of electricity system stress.

    Energy and Climate Minister, Graham Stuart, said:

    As we move towards cleaner and cheaper energy, it is essential that the UK provides secure and affordable energy for all.

    The plans set out today will deliver this reliable energy and ensure the scheme that sits at the heart of Britain’s energy security is fit for the future.

    Through competitive auctions between technologies such as batteries and gas-fired generators, the Capacity Market secures the capacity needed to cope with future demand peaks at least cost to consumers.

    Innovative technologies, such as batteries, are playing an increasingly important role in keeping the lights on across Great Britain. New technologies, such as Carbon Capture, Utilisation and Storage (CCUS) and hydrogen power and storage, are expected to come online over the coming decade, as the UK continues to lead the world in decarbonising.

    To accommodate this, the government is setting out today the following proposals to reform Great Britain’s Capacity Market.

    Incentivising greener, flexible technologies to compete in CM auctions by offering multi-year contracts for low carbon flexible capacity, such as smart ‘demand side response’ technologies and smaller-scale electricity storage, supporting the move towards delivering secure, clean and affordable British energy in the long term.

    Ensuring a clear pathway for carbon intensive forms of capacity as the UK transitions to net zero and the capacity mix of the CM diversifies, by sending a clear signal to oil and gas generators about the timelines and requirements for emissions reduction in the 2030s and seeking evidence on mitigating any barriers this capacity may face in decarbonising.

    Underpinning these efforts with a proposed new lower emissions limit in the Capacity Market which will kick in for new build plants from 1 October 2034, meaning all new oil and gas plants receiving long term agreements through the CM will be obliged to lower emissions, through decarbonising their capacity by introducing carbon capture, hydrogen and other low carbon methods into their generation and by reducing running hours.

    Taking steps to strengthen the scheme’s ability to deliver security of supply by reforming the CM’s approach to performance testing to ensure confidence as early as possible in the winter that capacity is available and strengthening the non-delivery penalty regime to send a clear signal that capacity must deliver in times of electricity system stress.

    Today’s announcement forms part of the government’s work to reduce the UK’s exposure to volatile global gas markets and energy costs for consumers in the long term as part of the Review of Electricity Market Arrangements (REMA). The government continues to seek views on a wide range of energy reform options, with an update on REMA expected early this year.

    RenewableUK’s Chief Executive Dan McGrail said:

    It’s vital that we decarbonise our electricity system completely by 2035, so this consultation represents an important step forward in that process. We need to incentivise more investment in new low carbon flexibility in our modern energy system based on renewable technologies including wind, solar, tidal stream and green hydrogen. This will strengthen the UK’s energy security, enabling us to move closer towards energy independence in the years ahead.

  • PRESS RELEASE : Procurement Bill to unleash opportunities for SMEs to be debated in Parliament [January 2023]

    PRESS RELEASE : Procurement Bill to unleash opportunities for SMEs to be debated in Parliament [January 2023]

    The press release issued by the Cabinet Office on 9 January 2023.

    • Procurement Bill, which will simplify four sets of laws into one, to have Second Reading today in House of Commons
    • The simpler, more flexible and less complicated rules will open up more government procurement for small businesses and voluntary and community groups
    • Bill takes advantage of post-Brexit opportunities, allowing the UK to shape its own procurement rules, while complying with international obligations

    Transformative new rules which rip up bureaucratic EU regulations will be debated in the House of Commons today.

    The Procurement Bill, which will have its Second Reading in the House of Commons, will make it easier for small businesses (SMEs) to win more of the £300billion of goods, services and works that the government buys each year.

    The Bill introduces new rules to help the government procure in emergency situations, such as during health pandemics, ensuring that contracting authorities can act quickly and transparently to buy vital goods.

    These simpler rules take advantage of freedoms now that Britain has left the EU, as well as strengthening the government’s ability to exclude suppliers who may have previously underperformed on government work. The rules will help exclude suppliers, both in the UK and overseas who are involved in modern slavery – further clamping down on this abhorrent practice.

    The Bill also confirms that value for money remains paramount during contracting, whilst also encouraging buyers to take into account other relevant wider social and environmental considerations the supplier may bring.

    Minister for the Cabinet Office Jeremy Quin said:

    We are making public sector procurement simpler, more transparent and easier to navigate.

    This Bill will seize the opportunity presented by Brexit to rip up outdated rules, increase opportunities for smaller companies and deliver better value for public money.

    We are determined to deliver the best possible results from the £300billion the public sector spends each year on procurement.

    That’s why by ending the complicated web of rules and regulations inherited from the EU to even bid for public sector work, we will ensure smaller companies are better able to bring their drive, ingenuity and innovation to Government.

    SMEs

    The new, more flexible rules will benefit SMEs in particular, through a number of provisions being written into the Bill to lift barriers for small businesses. These include:

    • Greater visibility of upcoming work, giving SMEs more time to gear up for bidding
    • A new central platform showing future work in each area. This means for example a new SME tech firm in Lancashire will be able to search for tech opportunities upcoming in their region
    • Creating one single website to register on, rather than the multiple and time consuming systems SMEs currently have to register on before bidding for work
    • Reducing unnecessary insurance costs before a supplier has even bid for a contract
    • A new Competitive Flexible procedure, which will allow contractors to design more innovation into the process, benefiting smaller tech startups
    • Strengthening prompt payment, so that businesses throughout the public sector supply chain receive payment within 30 days

    To further underline how the Bill will help SMEs, the Cabinet Office is today publishing a document outlining the benefits of the changes for prospective suppliers.

    Cabinet Office Minister Alex Burhart said:

    We know that complex rules have long been one of the major challenges for SMEs trying to win government work.

    And while government spending with small businesses is rising, we want to turbocharge this growth.

    This Bill will deliver on that, making it easier for SMEs, who make up 99% of UK businesses, to compete for and win government contracts, through smarter, simpler and more flexible regulations.

    Elizabeth Vega, Group CEO of Informed Solutions, said:

    SMEs are vital for growth in our economy and vibrant local communities. They are often the largest local employers, the most active members of our local communities, and amongst those businesses most willing to invest in their local communities, train and upskill their staff.

    So I am delighted that Government is strengthening the support for this sector in its proposed reforms. In particular, placing a specific requirement on public sector buyers to ensure a level playing field for small and medium sized suppliers by addressing the procurement barriers that these businesses often face in competing for public sector contract opportunities.

    Emergency procurement and transparency

    The Bill will make procurement more transparent and effective during times of emergency, for example a health pandemic, where government needs to act quickly to buy vital goods and services at speed.

    During the COVID pandemic, the UK, along with many other countries internationally, relied on direct awards to ensure that vital supplies, such as life-saving PPE, were bought quickly and to high standards.

    The new rules will bring more competition into this process, by encouraging more competitive buying in a quick time frame.

    The normal tendering process takes a minimum of 30 days, which is not practical in most emergency circumstances. The Bill will allow faster competition processes for emergency buying, reducing the reliance on direct awards while retaining and improving the government’s ability to act at pace in situations similar to the COVID pandemic. Clearer requirements on the identification and management of conflicts of interest for those involved in and responsible for procurement are also part of the Bill.

    Supplier exclusion

    The Bill will put in place a new exclusions framework that will make it easier for government to exclude suppliers who have underperformed on other contracts. It will also create a new ‘debarment register’, accessible to all public sector organisations, which will list companies who should be excluded from contracts. The Bill will also strengthen the government’s ability to exclude suppliers from bidding for work if there’s evidence of modern slavery in their supply chain, both in the UK or overseas.