Tag: 2021

Anneliese Dodds – 2021 Comments on Further Allegations About David Cameron

The comments made by Anneliese Dodds, the Shadow Chancellor of the Exchequer, on 27 April 2021.

For weeks the Chancellor has been dodging scrutiny about his texts, phone calls and secret meetings with David Cameron’s Greensill Capital.

Today I gave him a chance to set the record straight with a simple question: has he published details of all those communications? He didn’t answer.

The Chancellor said he’d level with the British public – his failure to do so just raises further questions about his role in the return of Conservative sleaze.

April 27, 2021
Angela Rayner – 2021 Letter to Simon Case on Allegra Stratton

The letter sent by Angela Rayner, the Deputy Leader of the Labour Party, to Simon Case, the Cabinet Secretary, on 27 April 2021.

Dear Cabinet Secretary,

I write following the revelation that refurbishments to the Prime Minister’s flat were funded via a loan from the Conservative Party.

The Prime Minister’s then Press Secretary, Allegra Stratton, is reported to have told lobby journalists during an official briefing on 8 March: “Conservative Party funds are not being used to pay for any refurbishment of the Downing Street estate.” When asked about the matter today, the Prime Minister’s official spokesman reportedly declined to correct the record and come clean about the donation.

As a Special Adviser, Allegra Stratton is bound by the Civil Service Code which sets out standards of integrity and honesty required from public officials. Therefore, I would urge you to build into your review an investigation into whether the former Press Secretary knowingly misled journalists and the public, or was misled herself by senior members of the government who seem intent on a cover up.

In order to maintain public trust, it is vital that the government publishes the long delayed List of Ministers’ Interests and the details of who paid for Boris Johnson’s flat.

Due to the public interest in this matter, I will be making this letter public.

Yours sincerely,

Angela Rayner
Deputy Leader of the Labour Party

April 27, 2021
Ben Wallace – 2021 Comments on UK Carrier Strike Group Sailing to Japan

The comments made by Ben Wallace, the Secretary of State for Defence, on 27 April 2021.

The Carrier Strike Group’s engagement with Japan will enhance the already deep defence partnership between our two countries.

The deployment is a symbol of ‘Global Britain’ in action and demonstrates our commitment to Japan, the Indo-Pacific region, and confronting threats to international order.

April 27, 2021
Kate Green – 2021 Comments on Children at Heart of National Recovery

The comments made by Kate Green, the Shadow Secretary of State for Education, in the House of Commons on 27 April 2021.

The Conservatives have treated children as an afterthought throughout the pandemic and the news that children’s language and social skills have fallen so far behind ought to be a wake up call.

Government ‘catch-up’ plans fall far short of what is needed for children to recover lost learning, including nothing on wellbeing or social development. In addition, their stealth cut to the pupil premium hinders schools’ ability to put their own plans in place.

Labour want children to be at the heart of our national recovery. Our plans for breakfast clubs would give all children extra time to socialise with friends, and targeted additional learning at the start of the day.

April 27, 2021
John Healey – 2021 Speech on the Carrier Strike Group Deployment

The speech made by John Healey, the Shadow Secretary for Defence, in the House of Commons on 26 April 2021.

I thank the Secretary of State for his statement and for the advance copy, and I add Labour’s condolences to the friends, family and comrades of the Indonesian submariners who tragically lost their lives in the service of their country this week.

We welcome this first major deployment of the Queen Elizabeth, and pay tribute to all those involved who have made this possible. The Secretary of State rightly says that the UK has a proud history as a carrier nation, but Britain has not had a carrier strike force since 2010, when the Conservative defence review scrapped all three of our aircraft carriers, along with 74 newly upgraded Harriers that flew from them. This deployment fills a big gap in Britain’s military capability over the past decade. It is a major achievement that, in the words of Sir Nick Houghton, vice-chief of the defence staff in 2011, is as complex as “staging the Olympics.”

The successful design and build of our two new aircraft carriers is a tribute to the UK’s shipbuilding industry and our UK steelmakers. Will the Secretary of State confirm how much UK-produced steel will be used in the new Type 26s, Type 31s, Astute, Dreadnought and Fleet Solid Support ships? This is a big opportunity to back British industry and jobs. If done well, it will strengthen the UK economy, and our sovereignty and self-reliance. The carrier strike group will sail east with the support of US and Dutch naval warships, and with US F-35 fighters on board.

It is good that the Queen Elizabeth sails with allies, but it is not good if she can sail only with allies. Despite state-based threats to the UK growing and diversifying, the Secretary of State will cut the number of Royal Navy frigates over the next two years. When, if ever, does he plan to have enough British warships to sail with our own British carriers? Will he confirm clearly that the majority of planes on the deck of the Queen Elizabeth will be US not British fighters? Despite the increasing military threats to the UK, he confirmed last month that Britain has ordered only 48 of the planned 138 F-35 fighters. When, if ever, does he plan to have enough British F-35s for our own British carriers?

There are serious concerns about the carrier’s long-delayed Crowsnest radar. Will the Secretary of State confirm that Crowsnest is now fully operational, and that the carrier strike group is fully combat ready? With the Royal Navy currently almost 1,600 under strength, and with the real cuts to the MOD’s resource budget through to 2024, will he confirm the full cost of this year’s deployment?

The Secretary of State has spoken of hard power and soft power, and across the House we hope that Britain will see significant diplomatic and trade benefits from that deployment. With covid security, however, how far will the diplomatic impact be reduced when a carrier cannot host guests or send people ashore? This deployment is important proof of our new British carrier strike capability, but let us not fall for the illusion that Britain is somehow able to project force everywhere in the world at once. Global Britain is a beguiling phrase, but this time-limited deployment will not significantly alter the balance of military power in the Indo-Pacific region. Surely we should focus our defence efforts on where the threats are, not on where the business opportunities might be. Can the Secretary of State confirm that, after the Queen Elizabeth’s gap-year tour of 40 countries, she will return to the military business of helping to protect Britain and patrol the north Atlantic, the High North and the Mediterranean—our NATO area, where Russia poses the greatest threats to our vital national interests?

As the Secretary of State rightly says, the Queen Elizabeth and the Prince of Wales are the most powerful surface ships ever constructed in Britain. They will strengthen our maritime forces for decades to come. This maiden mission for the Queen Elizabeth is a great achievement for the Royal Navy and a proud moment for our country. We wish her well.

April 27, 2021
Ben Wallace – 2021 Statement on the Carrier Strike Group Deployment

The statement made by Ben Wallace, the Secretary of State for Defence, in the House of Commons on 26 April 2021.

I would like to make a statement on the forthcoming deployment of the carrier strike group. Before I do, I wish to send my condolences to the Indonesian navy and the families of the ship’s company of KRI Nanggala following the tragic news that the submarine has been lost. I know the sorrow is felt particularly strongly within our own Royal Navy submarine community, who understand the risks faced by their friends all too well. The United Kingdom stands ready to help our Indonesian colleagues in any way we can going forward.

The UK has a long history of involvement in the Pacific. This year, we celebrate the 50th anniversary of our five power defence arrangements between the United Kingdom, Malaysia, Singapore, Australia and New Zealand. Few outside military circles are familiar with the relationship despite the fact that it is Asia’s most enduring military multilateral arrangement. It is a partnership that has grown in scope to cover everything from humanitarian assistance and disaster relief to counter-terrorism and maritime security. It is a partnership based on the common shared values of tolerance, justice and the rules-based order. But even as the Pacific’s importance to our future economy continues to rise, so the challenges to the freedom of navigation in that region continue to grow. Our trade with Asia depends on the shipping that sails through a range of Indo-Pacific choke points, yet they are increasingly at risk whether from hostile state actors or from piracy on the high seas.

We have to be clear to any who wish to challenge our international rules-based system that the laws must be upheld. But our partnership gives us strength. Friendship is the one thing that our adversaries lack and we deliver a powerful message of strength when we show our solidarity. That is why in recent years we have begun returning to the east. The UK now has a persistent presence in the region through British Forces Brunei, a regional and logistics hub in Oman and our maritime component command in Bahrain.

Our carrier strike group gives us something different. HMS Queen Elizabeth is a floating piece of sovereign territory that can sail over 70% of the world’s surface. It is probably the most guarded UK airfield to be found. It gives the Government unprecedented options to act independently against hostile forces on land or at sea for months without having to access bases ashore. It is a warship, a mothership, a surveillance reconnaissance ship, a convener of allies and partners, and a great projector of Britain’s soft and hard power.

The UK has a proud history of being a carrier nation. Those legendary second world war vessels HMS Courageous, Glorious, Illustrious, Ark Royal, Formidable and Indefatigable are synonymous with the unquenchable spirit of our people. Carriers have also continued to play a defining role in our nation’s history well into the modern era. Those who recall the Falklands war will not forget the fundamental role that HMS Hermes played in providing air cover for the vulnerable taskforce while 8,000 miles away from home. Our last carrier HMS Illustrious’s career spanned some 900,000 miles and took in service from Bosnia to the Gulf and Sierra Leone.

British ingenuity has long driven carrier innovation forward, from the angled flight deck to the ski jump developed for the Sea Harrier, but our newest carriers provides a true step change in capability. One can only appreciate the sheer enormity of each vessel when standing on its vast deck, as I did this morning. At 65,000 tonnes, HMS Queen Elizabeth and her sister ship, HMS Prince of Wales, are the most powerful surface ships ever constructed in Britain. Longer than Parliament and taller than Nelson’s column, she has a range of more than 10,000 nautical miles and can fly 72 fast jet sorties per day. This is British engineering at its best: a supreme example of a national endeavour, built by six dockyards—Appledore, Birkenhead, Govan, Portsmouth, Rosyth and Tyne. A cast of more than 10,000 took part in the construction. Some 8,000 apprentices helped complete the major construction in almost five years. Hundreds of small companies lent their niche capability, and 90% of those suppliers came from the United Kingdom.

The carrier does not operate alone, however. She will be surrounded by a ring of capability: Type 45 destroyers HMS Defender and HMS Diamond; Type 23 anti-submarine frigates HMS Kent and HMS Richmond; and, tanker and storage ships Fort Victoria and RFA Tidespring. We will also be accompanied by the Dutch frigate, HNLMS Evertsen, and the US Arleigh Burke destroyer, The Sullivans.

Our carrier’s cutting edge is located on the flight deck, with the renowned RAF 617 Squadron, the Dambusters, operating eight world-class, fifth-generation, F-35B Lightning II fast jets, partly made, I am proud to say, in Lancashire. While 815 Naval Air Squadron will pilot four Wildcat maritime attack helicopters, 820 Naval Air Squadron will fly seven Merlin Mk2 anti-submarine and airborne early warning helicopters, three of which will be fitted with the new Crowsnest, and 845 Naval Air Squadron will operate three Merlin Mk4 commando helicopters. Below deck, a company of 42 Commando Royal Marines will be embarked, while in the ocean depths, a Royal Navy Astute-class attack submarine will deploy in support.

Over the coming 28 weeks, from May to December 2021, we will see our carrier strike group travel over 26,000 nautical miles from the Mediterranean to the Red sea, from the Gulf of Aden to the Arabian sea and from the Indian ocean to the Philippine sea. Besides the full integration of units from the UK, US and the Netherlands, the carrier strike group will operate with air and maritime forces from a wide number of international partners including Australia, Canada, New Zealand, France, Japan, the United Arab Emirates, Denmark, Greece, Italy, Turkey, Israel, India, Oman and the Republic of Korea.

The deployment will see the units of the strike group visiting more than 40 countries and undertaking more than 70 engagements, visits, air exercises and operations. Critically, these events will provide excellent opportunities for the UK to develop new and existing trade and political links, particularly in the Indo-Pacific. Not only will we meet our commitment to UN-mandated operations in the region but, 50 years on from the creation of the five power defence arrangements, we will further augment our friendship by participating in Exercise Bersama Lima. Meanwhile, units from the strike group will visit Association of Southeast Asian Nations partners as part of our commitment to a more enduring regional defence and security presence. Four major stops on the Indo-Pacific leg of their journey will be Singapore, the Republic of Korea, Japan and India. It will help tighten our political ties in the region. In late summer, we will host our first Pacific future forum in Korea.

Meanwhile, China is increasingly assertive, building the world’s largest maritime surface and sub-surface fleets. However, we are not going to go to the other side of the world to be provocative. We will sail through the South China sea. We will be confident, but not confrontational. More often than not, the carrier group will be in the eastern Mediterranean or the Atlantic, carrying out our duties in support of NATO. As part of this deployment, our strike group will be in the middle east, conducting bilateral exercises and engagement with our long-standing defence and security partners, confirming our commitment to a lasting stability.

Critically, in Europe, our carrier strike group will demonstrate the UK’s enduring commitment to the NATO alliance—the cornerstone of our defence—by participating on this deployment in NATO-level exercises such as Exercise Steadfast Defender. Not only will there be a period of dual carrier operations with the French aircraft carrier Charles de Gaulle in the Mediterranean, but elements of the strike group will support NATO missions in the Black sea region, demonstrating that we do not go alone to deter a tier 1 power; we go as NATO.

The contribution of the United States to the rebirth of UK carrier strike has been immense, but our carrier strike group will take our integration with our US partners to a new level. We will have the Arleigh Burke-class destroyer USS The Sullivans providing the strike group with air defence and anti-submarine capabilities, not to mention a squadron of 10 US Marine Corps F-35B Lightnings—the Wake Island Avengers—flying side-by-side with their UK counterparts from the decks of the Queen Elizabeth. This is the largest air group of fifth generation fighters ever put to sea, as well as the greatest quantity of helicopters assigned to a single taskforce in a decade.

It has been a year since the last Royal Navy ship deployed to the Pacific. It has been more than seven years since the last carrier—HMS Illustrious—deployed there as well. It has been more than 20 years since the last carrier strike group deployed to that region. Our carrier strike intends to return us to that presence.

April 27, 2021
Lisa Nandy – 2021 Speech on Global Anti-Corruption Sanctions

The speech made by Lisa Nandy, the Shadow Foreign Secretary, in the House of Commons on 26 April 2021.

We warmly welcome today’s announcement. We agree that corruption is a global scourge. It costs the global economy billions every year, it sustains rotten Governments, it protects the dishonest and the criminal, it tilts the playing field against businesses that do the right thing and it denies people around the world money that belongs to them and that should be spent on our shared prosperity, our healthcare and our opportunities. As I told the Foreign Secretary last June, the absence of measures on corruption left a huge hole in the global human rights sanctions. If we want to crack down of human rights abusers, we have to follow the money, so we are really pleased to see the Government following the standard set by the USA and Canada in plugging this hole today, and we will study the regulations and the policy note carefully.

However, I hope the Foreign Secretary can assure the House today that there will be resources to support investigations and enforcement, because the current rate of prosecutions for economic crime is woefully low, as he knows. To put it bluntly, if he is serious about what he is saying today, he needs to put his money where his mouth is and ensure that agencies such as the National Crime Agency have the resources they need, allow Parliament to put forward names to be considered for designation and, as I pressed him to do last year, allow parliamentary scrutiny of who is and, crucially, who is not designated, to ensure that there is no prospect or suggestion that big money can corrupt our politics and influence the decisions that are taken. That last one really matters, because while I welcome his words today, the mass of revelations that have come to light in the last few days alone have shown a tangled network of financial interests and cosy relationships at the heart of Government that appear to send a green light to many of the very regimes that he has mentioned in his statement. We need to know that this announcement it is not just a gloss on the surface of a grubby system that underneath signals business as usual.

The right hon. Gentleman mentioned Saudi, but may I ask him what message it sends to the Saudi regime when he sanctions officials implicated in the murder of Jamal Khashoggi but we then find that all it takes is for the Crown Prince to WhatsApp the Prime Minister to tell him that relations will be damaged between our countries unless the path is cleared for him to buy a key economic asset in the UK, and that instead of standing up to it, he deploys his top aide to investigate? The Foreign Secretary mentioned sanctions against Chinese officials engaging in genocide in Xinjiang, but what message does it send to the Chinese Government when on Saturday we learned that a former Prime Minister could simply message the then Chancellor to ask for Chinese investment into the UK in areas of critical national infrastructure, such as energy, and could gain access, despite having been only 15 months out of office and despite this being in clear breach of the rules?

And for all the Foreign Secretary’s admirable words about Sergei Magnitsky, the UK still acts as a haven for the dark money that sustains the Putin regime, with more than £1 million in Russian-linked donations to the Tory party since the Russia report was handed to the Government, but not a single recommendation acted upon to safeguard our country in all that time. Surely the Foreign Secretary can see the problem. He signals an intent to crack down on corruption and human rights abuses by causing economic pain to those responsible, but just down the road those very same regimes can call up the Prime Minister to advance their own interests, even when those interests are at odds with the interests of the British people. The Foreign Secretary has used very strong words today, but while he is rightly pressing ahead with sanctions, he is either turning a blind eye to the real power relationships in Government or he is being played. We deserve to know which it is.

April 27, 2021
Dominic Raab – 2021 Statement on Global Anti-Corruption Sanctions

The statement made by Dominic Raab, the Foreign Secretary, in the House of Commons on 26 April 2021.

With permission, Madam Deputy Speaker, I should like to make a statement on our new global anti-corruption sanctions regulations.

Corruption has an immensely corrosive effect on the rule of law and trust in institutions. It slows development, drains the wealth of poorer nations and keeps their people trapped in poverty. It poisons the well of democracy around the world. Whistleblowers and those who seek to expose corruption are targeted, and some have paid the ultimate price with their lives, including, of course, Sergei Magnitsky himself, the inspiration for our human rights sanctions regime. But his courage was not in vain. The framework of sanctions that we are launching today, shared by some of our partners around the world, flows directly from his decision to take a brave stance against injustice, and that will not be forgotten.

This country has an important role to play in the fight against corruption. Our status as a global financial centre makes us an attractive location for investment, and we are proud of that and welcome it. But it also makes us a honey pot—a lightning rod—for corrupt actors who seek to launder their dirty money through British banks or British businesses. That is why we have already taken steps to become a global leader in tackling corruption and illicit finance. Our law enforcement agencies are recognised as some of the most effective in the world. The National Crime Agency’s international corruption unit and its predecessors have restrained, confiscated or returned well over £1 billion of assets stolen from developing countries since 2006. My Department continues to provide funding for this vital work.

The Bribery Act 2010 criminalises bribery and the failure of businesses to prevent bribery from happening in the first place. In April 2016, the UK was the first in the G20 to establish a public register of the beneficial owners of companies and similar legal entities. That was an important first step in tackling the use of anonymous shell companies to move corrupt money around the world. I can tell the House that more than 4.5 million companies are now listed on that register.

In 2017, we adopted the ambitious five-year anti-corruption strategy, bringing in measures such as unexplained wealth orders, account freezing orders and the like, and that year, we also established the International Anti-Corruption Co-ordination Centre in London, which has helped to freeze more than £300 million of suspected corrupt assets worldwide and led to dozens of arrests. According to Transparency International’s corruption perceptions index, those actions—our commitment to tackling corruption—have seen the UK rise from a global ranking of 20th in 2010 to 11th place in 2020, out of a total of 180 countries.

Against that backdrop, the new sanctions regime that I am announcing today will give us an additional powerful tool to hold the corrupt to account. It will prevent corrupt actors from using the UK as a haven for dirty money while combating corruption around the world. As hon. Members across the House will recall, this follows the launch of our global human rights sanctions regime, which I introduced to the House in July 2020. Since then, the UK has imposed human rights sanctions on 78 individuals and entities involved in serious human rights violations, including in Russia, Saudi Arabia, Venezuela, Pakistan, Myanmar, North Korea, Belarus, the Gambia, Ukraine and, most recently, in relation to Xinjiang in China. Now, we have an equally powerful weapon in the fight against corruption.

As with our global human rights sanctions approach, the anti-corruption sanctions are intended not to target whole countries or peoples but, rather, the individuals who are responsible, and should be held responsible, for graft, and the cronies who support or benefit from their corrupt actions. These regulations will enable us to impose asset freezes and travel bans on individuals and organisations who are involved in serious corruption. Our approach is grounded in and based on the UN convention against corruption and related instruments. It has a clear focus on bribery and misappropriation of property, and that includes embezzlement.

Bribery is well understood. It is defined in the regulations. It includes both giving a financial or other kind of advantage to a foreign public official, and a foreign public official receiving a financial or other advantage. Misappropriation of property occurs when a foreign public official improperly diverts property entrusted to them in their official role, and that may be intended to benefit them or a third party. For example, it could be, or include, siphoning off state funds to private bank accounts. It could include the improper granting of licences for the exploitation of natural resources, but whatever the particular circumstances, at the heart of this lies the same debilitating cycle of behaviour: corrupt officials ripping off their own people.

These powers will also enable us to target those who are either facilitating or profiting from such corrupt acts—those who conceal, those who transfer the proceeds of serious corruption and those who obstruct justice relating to serious corruption, and that will not be limited to state officials. For additional clarity in all this, we have published a policy note today that sets out how we will consider designations under these regulations. I know that, across the House, there is always interest in the legal criteria as well as the evidence base that we have to accumulate. It is right to say that we will also ensure due process and the rule of law, so that the rights of others are respected. Those designated will be able to request that a Minister reviews the decision, and they can also apply to challenge the decision in court, which is an important check in the system.

As well as introducing the legal basis for this regime, today, I can tell the House that we are also making the first designations under these new regulations, which include some of the most notorious cases of corruption in recent history. Each designation is underpinned by evidence and meets the test set out in the Sanctions and Anti-Money Laundering Act 2018 and the regulations. So today, I can tell the House that we are imposing sanctions on individuals who have been involved in serious corruption from six particular countries. First, we are imposing sanctions on 14 individuals involved in the $230 million tax fraud in Russia perpetrated by an organised crime group and uncovered by Sergei Magnitsky. Next, we are imposing sanctions on Ajay, Atul and Rajesh Gupta and their associate Salim Essa for their roles in serious corruption. Those individuals were at the heart of a persistent pattern of corruption in South Africa that caused significant damage to its economy and directly harmed the South African people.

We are also designating three individuals involved in serious corruption in Honduras, Nicaragua and Guatemala, including facilitating bribes to support a drug trafficking cartel. Finally, we are imposing sanctions on the Sudanese businessman Ashraf Seed Ahmed Hussein Ali, also known as Al-Cardinal, for the misappropriation of significant amounts of state assets in one of the very poorest countries in the world. That diversion of resources, in collusion with South Sudanese elites, caused serious damage to public finances in South Sudan and has also contributed to the ongoing instability and conflict there.

Let us be clear about this: corruption is not a victimless crime—far from it. By enriching themselves, these people have caused untold damage and hardship to their countries and communities, which they exploited for their own predatory greed. So today we send a clear message: those sanctioned today are not welcome in the UK. They will not be able to use British bank accounts or businesses to give their illicit action some veneer of respectability, because their assets will be frozen. I can tell the House that more designations will follow in due course, based on the policy note as well as on the legal criteria that we have set out, and assessed against the evidence.

As with all targeted sanctions, they are most effective when they are backed up by co-ordinated international action, and of course that is particularly important when it comes to corruption, given the fluid, complex and global nature of modern illegal corruption schemes. We will continue to work with our friends and partners, including the US and Canada, who are equipped with the legal framework to take similar action. Today, I hope that the whole House will unite and join me in standing up for the values of democracy, good governance and the rule of law as Britain sends out the clearest message to all those involved in serious corruption around the world: you cannot come here, and you cannot hide your money here. I commend this statement to the House.

April 27, 2021
Dominic Raab – 2021 Written Statement on Global Anti-Corruption Sanctions

The statement made by Dominic Raab, the Foreign Secretary, in the House of Commons on 26 April 2021.

I have today laid before Parliament, under the powers of the Sanctions and Anti-Money Laundering Act 2018, the Global Anti-Corruption Sanctions Regulations 2021.

The sanctions regime established by these regulations seeks to prevent and combat serious corruption around the world by allowing for asset freezes and travel bans to be imposed on individuals or organisations involved in serious corruption. It is a smart tool allowing the Government to target corrupt actors and their enablers. It will prevent those responsible from entering the UK or laundering their ill-gotten assets here. These sanctions will help to ensure that the UK is not a safe haven for those involved in serious corruption, including those who profit from it.

The global anti-corruption sanctions regime will stand alongside the global human rights sanctions regime and give the UK an additional, powerful device to prevent and combat serious corruption around the world.

Today, I will also give an oral statement to set out the new sanctions regime and publish the first persons to be designated under it.

April 27, 2021
Rishi Sunak – 2021 Statement on the Kalifa Review of UK FinTech

The statement made by Rishi Sunak, the Chancellor of the Exchequer, in the House of Commons on 26 April 2021.

Innovation is at the forefront of our vision for the future of UK financial services. The Government are committed to ensuring that the UK remains at the global cutting edge of technology and innovation in financial services. Creating the conditions needed for our FinTech businesses to grow and compete, both here and abroad, is central to delivering on this ambition. This is why, at Budget 2020, I asked Ron Kalifa OBE to carry out an independent review of the UK FinTech sector.

The Kalifa review of UK Fintech (the Review) [1] was published on 26 February 2021. It made a number of recommendations aimed at Government, regulators, and industry across five areas: policy and regulation, skills and talent, investment, international attractiveness and competitiveness, and national connectivity. At publication, HM Treasury welcomed the review and highlighted key recommendations including:

A Centre for Finance, Innovation and Technology to strengthen national co-ordination across the FinTech ecosystem to boost growth.

A regulatory “scale-box” to provide additional support to growth stage FinTech.

Amendments to UK listings rules to make the UK a more attractive location for initial public offerings (IPOs).

Improvements to tech visas to attract global talent and boost the FinTech workforce.

Here we have set out the actions that Government and regulators are taking in response to the review’s recommendations.

Centre for Finance, Innovation and Technology

The Government recognise the potential for a private sector-led Centre for Finance, Innovation and Technology (CFIT) as an accelerator for FinTech sector growth. It can achieve this through research, thought leadership, and working with regional FinTech hubs and national FinTech bodies to identify and address barriers to growth to the benefit of the sector across the whole of the UK. I have confirmed that the Government support the creation of this centre and will work closely with the FinTech community to make it a reality.

Regulatory scale-box

The Financial Conduct Authority (FCA) has also welcomed the Kalifa review and has set out steps it will be taking to deliver against the review’s idea for a “regulatory scale-box”, by enhancing its existing regulatory toolkit. These actions include:

Launching “Always Open” to make the regulatory sandbox available on a rolling basis.

Clarifying the scope of qualifying propositions for the regulatory sandbox to ensure as many firms as possible are able to access support.

Launching, in conjunction with the City of London Corporation, the second phase of the Digital Sandbox pilot, inviting applications to test proof of concepts to solve sustainability and climate change financial challenges.

Considering how to provide a “one-stop shop” for growth-stage firms to dock in and easily navigate what sources of FCA support are available to them.

Working with industry over coming months to identify further solutions for supporting firms manage the journey to scale.

The FCA has also announced plans to create a regulatory “nursery” for enhanced oversight of newly authorised firms, enabling an opportunity for additional support as firms become used to the requirements of regulatory compliance.

Listings regime

The Lord Hill Listings review, which was published at Budget 2021 and made recommendations to boost the UK as a destination for IPOs and optimise the capital raising process on UK markets, addresses a number of the Kalifa review’s recommendations for attracting more FinTech listings to the UK. The Government set out details of their response to Lord Hill’s review in a written ministerial statement on 19 April. In parallel, the FCA plans to consult on issues raised by the Kalifa review including reducing the minimum “free float” a company must have when it lists, and whether premium listed companies can have dual share class structures.

Scale-up visa

The Government demonstrated their support for attracting international talent to the UK at Budget 2021 by announcing creation of a “scale-up visa stream”. The new stream will be created within a new elite points-based route that will allow employees with a job offer at the required skills level from a recognised UK scale up, including FinTechs, to qualify for a fast-track visa, without the need for sponsorship or third-party endorsement. The Government will set out further details by July and the new route will be implemented by March 2022.

International competitiveness

The Department for International Trade (DIT) has announced it will create two new FinTech initiatives in response to the review. The first is a new FinTech cohort within DIT’s Export Academy initiative. This will provide bespoke, 1-2-1 advice to eligible UK FinTechs who are ready to scale into key markets such as North America, Hong Kong, and Singapore. Tailored advice will cover topics such as legal, tax, regulation, accounting, and market entry matters, all of which will support the international expansion ambitions of FinTechs on the programme. This is in addition to the wide range of existing DIT export support services currently available for UK businesses. DIT will also establish a FinTech champions scheme, comprising of leading UK FinTech advocates who are successfully exporting. DIT FinTech champions will fly the flag for UK FinTech overseas and support the next generation of UK FinTech in their growth journeys through mentoring and peer to peer learning. Both initiatives will enhance UK FinTech overseas, further elevating the UK’s status as a world leading FinTech hub.

Regulation for digital finance

The review also made recommendations more broadly for the Government to develop a regulatory framework for digitalisation and emerging technology in financial services. The Government are taking forward a number of initiatives in these areas:

Along with the Bank of England, HM Treasury has launched a Central Bank Digital Currency (CBDC) Taskforce to co-ordinate the exploration of a potential UK CBDC—the Government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK. A CBDC would be a new form of money that would exist alongside cash and bank deposits, rather than replacing them; the Government recognise that cash remains important to millions of people across the UK, and have committed to legislating to protect access to cash.

HM Treasury and the Bank of England are launching a CBDC Engagement Forum to gather strategic input on all non-technology aspects of CBDC.

The Bank of England is also launching a CBDC Technology Forum to gather input on all technology aspects of CBDC.

The Bank of England has launched a new account type that will allow access to central bank money by innovative financial market infrastructure providers to allow them to provide enhanced wholesale payment and settlement.

The Government have announced a financial market infrastructure (FMI) sandbox for firms exploring how to use technologies, such as distributed ledger technology (DLT), to innovate in the settlement of financial securities. This regime will aim to support firms, which are developing this new technology, with a more flexible and tailored approach to meeting requirements in current legislation, while appropriately balancing any risks to financial stability, market integrity and consumer protection. This new regime will be inspired by the FCA’s sandbox and HM Treasury will work together with the Bank of England and the FCA to deliver this.

In 2020 the Government committed to creating a framework of standards, governance, and legislation to enable a UK digital identity market. The Department for Digital, Culture, Media, and Sport (DCMS) published a draft trust framework for consultation in February this year which sets out the Government’s vision for the rules governing the future use of digital identities. A next iteration is expected to be published this summer.

The Department for Business, Energy, and Industrial Strategy is taking forward work on smart data and has committed to bringing forward legislation to better enable data sharing across sectors, including open finance. The FCA published a call for input on open finance in 2019 and published a feedback statement in March this year. This set out that the FCA will work closely with the Government as it takes forward the work on legislation as well as assessing the regulatory framework that would be needed to support open finance.

Tax

The review also highlighted the benefits of tax incentive schemes in supporting FinTech growth and at Budget 2021 the Government announced steps it is taking to ensure the schemes work as efficiently as possible, including:

A call for evidence on the enterprise management incentive scheme to seek views on whether the scheme is meeting its objectives, and examine whether more companies should be able to access the scheme.

A review of R&D tax reliefs which follows the consultation last year on expanding the qualifying expenditures to include cloud computing and data.

The Kalifa review also makes various recommendations that Government consider industry is best placed to take forward and I am grateful to Ron Kalifa for bringing these to my attention.

I would like to conclude by thanking Ron Kalifa and his team for their exceptional work in producing this seminal review. Ron has succeeded in producing insightful analysis, and garnering widespread support from industry for a suite of proposals that keep us on track for the continued success of UK FinTech.

I look forward to taking forward the steps I have outlined today.

April 27, 2021