Tag: 2022

Bill Wiggin – 2022 Speech Proposing the Ban of Sealed Bids for Property Purchases

The speech made by Sir Bill Wiggin, the Conservative MP for North Herefordshire, in the House of Commons on 11 October 2022.

I beg to move,

That leave be given to bring in a Bill to prohibit the sale of property by sealed bids; and for connected purposes.

The role of Government is to ensure that markets work and that deals are fair and as transparent as possible. We make rules to ensure that unfair exploitation does not occur. That is clearly more important in land and property transactions, as they are usually the largest deals that most of us will ever do with our own money.

The purpose of my Bill is therefore to enhance transparency, to reduce costs and opaque behaviour, and to ensure that both buyer and seller are treated fairly by the estate agent. Let me say that, despite the vast number of good agents, there are still some who think that using such opaque techniques to try to extort money is acceptable.

We know that when one buys a property, one does a search and survey before exchanging contracts. That is sensible and prudent. However, when one is asked to submit a best and final offer or a sealed bid, that is done to try to extract more money without any extra information being given. That is not in the interest of any party except the agent, who has made little or no effort to assist in the deal making, as a broker of any other transaction would expect to do.

A sealed bid or private treaty sale will be suggested to a seller when multiple potential buyers are interested in purchasing the same property. Prospective buyers are invited to submit bids for the property through a secret ballot or through an invitation to submit a best and final offer. All bids are then supposed to be considered at once. The owner of the property and the estate agent then decide behind closed doors, in an unclear and opaque process, who should be declared the winner.

Agents are not bound by any legislation setting out appropriate processes for how transparency following bids should be handled, nor is there any later declaration of the price or any other useful information that would help the market. In fact, there are no credible statistics available recording how many sales take place by sealed bid, which demonstrates the overly relaxed nature of the regulations surrounding property buying.

The system is therefore ripe for abuse and detrimental to the confidence of potential buyers. I hope that this Bill can generate real reform and encourage genuine transparency in the property market.

It is inefficient that with such a process of sealed bids the prospective buyer has no idea what their competitors have bid. To be eligible to submit a bid, one must go through the cost of searches and surveys—an expensive procedure. The average homebuyer pays between £1,000 and £1,500 for conveyancing before exchange of contract. There are also other tedious undertakings, such as letters from one’s bank or lengthy pieces on one’s suitability to own the property.

Bidders are required to do so much before even being considered for the property, but what do they get in return? Nothing but confusion, secrecy and unanswered questions. They often find themselves in frustrating and distressing circumstances: either they have not bid enough and are never told what the winner paid, or, if successful, they might be paying well over the asking price, and often far more than that which the agent thought the property was worth.

All that is great news for the seller and the estate agent —right up until the seller becomes a buyer, of course. It leaves an agent who did not know his market with a larger commission, having done less work. It is not surprising that they do not want more transparency and no wonder that this element to the market needs reform.

Once a bid is submitted, a buyer cannot really alter their offer. Estate agents will often tell buyers that their offer is legally binding before exchanging contracts. That may or may not be true, as a “subject to survey” clause is possible. Supporters of sealed bids claim that they speed up the buying process and discourage time wasters. However, in many cases, the seller or the buyer attempts to renegotiate after the sealed bid has been accepted, thereby prolonging the process. According to Quick Move Now, in quarter 4 of 2021, 39% of property sales fell through due to the buyer changing their mind or attempting to renegotiate the offer. When a property sale falls through, people lose not only the house or flat, but any money they have spent on applying for a mortgage, conveyancing or a property survey. Government figures suggest that consumers waste £270 million each year because transactions fall through. Failed transactions make moving house—already considered one of life’s most stressful experiences—more frustrating and less practical.

Research undertaken by the Department for Business, Energy and Industrial Strategy suggests that consumers are extremely concerned by the weakness of regulation for estate agents. Aggressive tactics that are employed to close a deal quickly include practices such as gazumping. A system of sealed bids only encourages such harmful practices, which waste time, wreck estate agents’ reputations and artificially inflate the housing market.

Often, estate agents use the sealed bids process to pressure inexperienced sellers into accepting the highest bid, with no regard to the circumstances of the buyer, while buyers are pressured into submitting their very highest offer. I must keep saying that estate agents are, by and large, good, honest people. However, the actions of a few can sully the industry. Processes such as sealed bids and best and final offers only add to that unfortunate perception. That is why reform is long overdue.

Sealed bids not only affect the housing market. In Herefordshire, the average price for prime arable land is £10,670 an acre. Agricultural land values in England have reached their highest level since 2016. During that time, the use of sealed bids for farmland has also increased. That is concerning, as the price per acre for farmland is being increased artificially, in turn putting pressure on the price of food.

Due to transport costs, the land next door is always more valuable to a local farmer than land further away, and it is more valuable to them than to someone who lives further away. That means that farmers are much more exploited and much more vulnerable than any other type of property buyer. This has to stop. How can we encourage new and aspiring young farmers to acquire land in such an opaque market environment?

This Parliament has the ability to do far more for prospective home and farm buyers. Now we must find the will. We were elected on a key manifesto commitment to rebalance the housing market towards more home ownership. Home ownership is a fundamental Conservative value. Sealed bids and best-and-final-offer messages do not rebalance the market; they seek to corrupt it. They are not the way to an open, transparent, competitive market; they seek to stifle competition and transparency. They artificially raise prices and hopes, meaning that thousands of pounds are wasted. Through this Bill, I wish to see better regulation of the housing and property market, fairness for all prospective buyers and sellers, and transparency for an industry that has for far too long operated in murky ways. That all starts with an end to the practice of sealed bids and best and final offers.

Question put and agreed to.

Ordered,

That Sir Bill Wiggin, Mr Ian Liddell-Grainger, James Grundy, Dr James Davies, Andrew Rosindell, Cherilyn Mackrory, Mr Mark Francois, Sally-Ann Hart and Sir Edward Leigh present the Bill.

Sir Bill Wiggin accordingly presented the Bill.

October 12, 2022
Luke Pollard – 2022 Speech on Nuclear Weapons and Vladimir Putin

The speech made by Luke Pollard, the Labour MP for Plymouth Sutton and Devonport, in the House of Commons on 11 October 2022.

I welcome the new Minister to his place. It is because Ukraine is winning that Putin’s behaviour is becoming so volatile. The sham referenda, the irresponsible nuclear sabre-rattling, the missile attacks on civilians—these are the hallmarks of a tyrant on the ropes and a tyrant who is losing.

Labour stands with our friends in Ukraine. With our unshakeable commitment to NATO, the Minister knows that he has our full support for the actions the Government are taking to help Ukraine win. Yesterday’s missile attacks on civilians are a significant escalation. The NATO Secretary-General was right to describe the attacks as “horrific and indiscriminate”.

Ministers have Labour’s full support in countering Putin’s aggression. In that spirit, I ask the Minister when he will set out a long-term strategy of support for Ukraine, so that we can make sure that Putin’s war ends in failure. Can he confirm that the NLAW—next generation light anti-tank weapon—replacement orders have finally been placed? When does he expect to replenish our depleted weapons stockpiles? What assessment has he made of the worrying statements by Lukashenko and the continued presence of Russian troops and armour in Belarus?

I would be grateful if the Minister addressed the concerning media reports of the withdrawal of almost 700 British troops currently deployed to our NATO ally Estonia, without any planned replacement. That risks sending the wrong message at the wrong time, and it has worried our international allies. We cannot walk away until the job is done. With that in mind, will he reassure the House that he will not withdraw any further UK troops from our allies, and that the UK will meet our NATO commitments?

Finally, as more bodies are unearthed at the sites of war crimes, we remember them and we remember those killed yesterday in Putin’s criminal missile strikes. Does the Minister agree that the best justice for those killed is victory for Ukraine, a free and sovereign nation, and war crime tribunals for those responsible?

Alec Shelbrooke

I am grateful to the hon. Gentleman for his kind comments and I look forward to working across the Dispatch Boxes on these vital issues.

On the hon. Gentleman’s comments about the horrific war crimes we have seen unfold every time there is a Russian retreat, I think that every decent human being is appalled. I am proud that the UK Government are funding the International Criminal Court, and we will do everything we can to support Ukraine in bringing the perpetrators of these horrific crimes to justice.

I hope the hon. Gentleman will forgive me if I come back to him with a written answer on the postures from Lukashenko.

On Estonia, the overall capability of our commitment there is far more important than the number of troops alone. We have committed to strengthening that capability over the forthcoming years. I was in Estonia, and indeed Latvia and Lithuania, in my previous role in the NATO Parliamentary Assembly. I have seen at first hand the work that takes place there. All our NATO allies can be reassured that we are committed to making sure that the NATO frontline is secure. We work with colleagues and there will be variation in how that is done.

With regard to support, the hon. Gentleman will have noticed that my right hon. Friend the Secretary of State for Defence has set up the international support fund. This country contributed £250 million to that, and I believe the total figure is now above €400 million. That is in place to help support Ukraine as this war moves forward and the conflict carries on, so that it can use that money not only in the conflict but to rebuild and, of course, ensure it has the ammunition supplies and things it needs.

With regard to NLAW and our weapons supply, we are working with industrial supply chains and are confident that we will have the ability to defend ourselves and to give support, but we do not comment on operational capability beyond that.

October 12, 2022
Alec Shelbrooke – 2022 Statement on Nuclear Weapons and Vladimir Putin

The statement made by Alec Shelbrooke, the Minister of State at the Ministry of Defence, in the House of Commons on 11 October 2022.

Russia’s continuing assault on Ukraine is an unprovoked and premeditated attack against a sovereign democratic state and it continues to threaten global security. This week, my right hon. Friend the Secretary of State for Defence is meeting with Defence Ministers in Brussels to discuss further support for Ukraine, and later today my right hon. Friend the Prime Minister will be speaking to members of the G7.

I can assure the House that the UK and our allies remain steadfast and united in our support for Ukraine. As previously set out to the House, Defence is playing a central role in the UK’s response to the Russian invasion, providing £2.3 billion-worth of military support and leading in the international response.

We were the first European country to provide lethal aid to Ukraine. To date, we have sent more than 10,000 anti-tank missiles, multiple-launch rocket systems, more than 200 armoured vehicles, more than 120 logistics vehicles, six Stormer vehicles fitted with Starstreak launchers and hundreds of missiles, as well as maritime Brimstone missiles. In addition, we have supplied almost 100,000 rounds of artillery ammunition, nearly 3 million rounds of small arms ammunition, 2,600 anti-structure munitions and 4.5 tonnes of plastic explosive.

Defence is also providing basic training to Ukrainian soldiers in the UK. To date, we have trained over 6,000 Ukrainian recruits in the UK, and we continually review and adjust the course to meet their requirements. Defence will continue to respond decisively to Ukraine’s requests and the equipment is playing a crucial role in stalling the Russian advance and supporting our Ukrainian friends.

President Putin’s comments on nuclear are irresponsible. No other country is talking about nuclear use. We do not see this as a nuclear crisis.

Mr Ellwood

Thanks to our support and that of allies, Ukrainian forces have done the unthinkable in pushing back Russian force. However, with Putin now on the back foot and the third largest military in the world humiliated, this conflict has entered a darker chapter and we cannot be bystanders. Putin cannot be seen to lose this war and, as his response to the Kerch bridge attack shows, he is stooping to ever more unconventional tactics. The threat of Putin’s turning to tactical low-yield nuclear weapons remains low, but it has increased, posing questions for Britain and the United States that must be addressed before, not after, that line is crossed.

Russian military doctrine allows first use of nuclear weapons in response to conventional attacks on Russian soil. That is why the sham referendums took place in the Donbas region—so that Putin could claim it was part of the motherland. In response, as things stand, our formal position is so-called strategic ambiguity: the promise of a response, but no public clarity on what that might be.

We gained a reputation for blinking when it came to Georgia, on chemical weapons use in Syria and when the Crimea was annexed. I believe we should state now what our conventional response would be to Putin’s either deploying nuclear weapons directly or targeting hazardous infrastructure such as chemical or indeed civil nuclear plants. Such clarity could be the very deterrent that helps to prevent such hostile actions from taking place, rather than the vague position we have now.

Our adversaries—not just Russia—must know and fear the military consequences of daring to resort to using nuclear weapons, even if they are low yield. This is not an operational decision but a political call. We have a duty to do all we can to deter Putin from going nuclear. Let us not leave it to chance. Let us exhibit the robust statecraft and engagement that this unpredictable war now requires.

Alec Shelbrooke

I am grateful for my right hon. Friend’s comments. I reiterate what I said at the start: President Putin’s comments are irresponsible. No other country is talking about nuclear use, and we do not see this as a nuclear crisis. President Putin should be clear that, for the UK and our allies, any use of nuclear weapons at all would break the taboo on nuclear use that has held since 1945 and lead to severe consequences for Russia.

President Putin has launched an illegal and unprovoked invasion of Ukraine. His forces continue to commit senseless atrocities. The people of Ukraine seek only to restore their sovereignty and territorial integrity, and we will continue to support Ukraine’s right to defend.

My right hon. Friend speaks of tactical nuclear missiles, but nuclear is nuclear. I reiterate what the Secretary-General of NATO said:

“President Putin’s nuclear rhetoric is dangerous. It is reckless. NATO is of course vigilant. We monitor closely what Russia does. Russia must understand that nuclear war can never be won and must never be fought. And it will have severe consequences for Russia if they use nuclear weapons. And this has been very clearly conveyed to Russia. So we will continue to support Ukraine. And we will continue to support them in their efforts to liberate even more territory, because they have the right to do so.”

It is not and never has been tactically smart to outline exactly what the response would be to any potential situation. We will continue on the lines that this Government and, indeed, the Secretary-General have outlined.

October 12, 2022
PRESS RELEASE : The Student Loans Company appoints new CEO [October 2022]

The press release issued by the Department for Education on 12 October 2022.

The Student Loans Company (SLC) has appointed Chris Larmer as its new Chief Executive. Currently Executive Director, Operations, he will replace Paula Sussex, who leaves the organisation at the end of the year.

SLC has undertaken a significant transformation programme to implement more modern, customer-focused processes and systems to better serve its eight million customers. This has improved the overall health of the organisation while navigating the Covid-19 pandemic, delivering student finance to record numbers of students. SLC will continue to deliver towards its vision of enabling opportunity and delivering an outstanding customer experience while also playing its critical role in the delivery of the UK Government’s education reforms, including the new Lifelong Loan Entitlement (LLE).

Chris has been instrumental in leading the Operations Directorate through the last 18 months, and his leadership and operational experience will be key for the organisation when he becomes CEO.

Peter Lauener, SLC Chair, said: “Chris joined our organisation in May 2021 and has played a central role in establishing new structures and leadership in our Operations Directorate, while successfully leading us through two challenging student finance applications cycles. Chris has a wealth of business and transformation experience, ensuring he is the right person to continue to deliver our strategy and build on our successes. He has a real commitment to putting customers and colleagues at the heart of SLC, which will be critical as we move forward.”

Chris has spent more than 30 years in the financial services sector. He joined SLC from the Co-operative Bank where he was Director of Customer and Strategy and previous to this, he was Director of Customer Experience at Barclays. Chris has also held senior roles with Virgin Money, Tesco Bank and the Royal Bank of Scotland.

Chris said: “I am honoured to have been appointed SLC’s next CEO and to be given the opportunity to lead such an important organisation. SLC has an inspiring vision and mission – we make a real difference to the lives of our customers and to the future prosperity of the UK economy.

“Paula has done an exceptional job in driving SLC forward in our transformation journey and we are a better organisation because of her leadership. I look forward to continuing this work as we strive to deliver an outstanding customer experience to our eight million customers.”

SLC underwent a competitive recruitment process which involved input from a colleague panel as well as receiving approval from the new Secretary of State for Education, Kit Malthouse. It’s the first time SLC has recruited from within the organisation to the post of Chief Executive.

Andrea Jenkyns, Minister for Skills, said: “Our world-class higher education system wouldn’t be possible without the work of the Student Loans Company, which provides a critical service to the UK’s students and graduates, enabling opportunity and supporting their education ambitions.

“Chris Larmer’s appointment as the new Chief Executive of the Student Loans Company is fantastic news – not only because of his impressive business accolades but for the leadership he has provided to the SLC in the past 18 months in the Operations Directorate. I cannot wait to start working with him for the benefit of students up and down the country.”

October 12, 2022
PRESS RELEASE : Putin is losing on the battlefield – UK statement to the OSCE [October 2022]

The press release issued by the Foreign Office on 12 October 2022.

Ian Stubbs (UK delegation to the OSCE) stresses that, when Putin is losing on the battlefield, he takes the war to the Ukrainian people instead.

Thank you Mr Chair.

On 8 October, an explosion damaged the Kerch Strait Bridge. A crucial logistics route for Russia’s militarisation of illegally annexed Crimea, the bridge also plays a key role in moving heavy military vehicles & equipment as well as fuels, oils and lubricants to the southern front of Putin’s illegal invasion of Ukraine. Accordingly, substantial damage to this bridge will almost certainly have a significant impact on Russia’s already strained ability to sustain its forces under pressure in southern Ukraine.

In an address to his Security Council on 10 October, President Putin stated that the intense barrage of missile attacks he had unleashed across Ukraine was in retaliation for the attack on the Kerch Strait Bridge. He also threatened a harsh response to any further attacks on Russian territory.

Mr Chair, I would like to be very clear on two points:

Opened in 2018 by Putin himself, the construction of the Kerch Strait Bridge was a violation of Ukraine’s sovereignty and territorial integrity. It is a bridge built by Russia on Ukraine’s territory.

Putin’s attempt to portray Monday’s barrage of missile strikes as a show of strength in retaliation of the Kerch Bridge incident fools no one. When Putin is losing on the battlefield, he takes the war to the Ukrainian people instead.

Mr Chair, the appalling wave of missiles strikes which took place on 10 October targeted civilian national infrastructure across Ukraine. It appears to have been the most extensive day of long-range strikes since the first days of Russia’s illegal invasion and the first time since June 2022 that the centre of Kyiv was targeted. Strikes on residential buildings, playgrounds, a pedestrian bridge and the National Philharmonic; as well as multiple power black outs and disruption to water supplies and communications remind us that once again Ukraine’s civilians are paying the terrible price for Russia’s barbaric actions.

President Putin claimed that the strikes were carried out with precision long-range ground, naval and air launched weapons. Such weapons in Russia’s arsenal include Iskander, Kalibr, and the Kh-101, all of which claim accuracies of under 50m and some as low as 2m. So, there are only a few possibilities as to why so much civilian infrastructure was struck, either: Russia severely overestimates its precision strike capability; Russian military planners were grossly incompetent in their targeting; or the Russian military deliberately conducted premeditated attacks targeting residential buildings, cultural sites and areas where children may have been present.

Russia took these actions in full knowledge of what would ensue: destruction, injuries and death. Such attacks on civilians and civilian infrastructure are not only abhorrent; they are war crimes and a blatant violation of international law.

Mr Chair, we and others have repeatedly called on Belarus to stop supporting Russian aggression, including allowing Russia to use Belarusian airspace to launch stand-off airstrikes and Iranian UAVs against Ukraine. Lukashenko’s announcement on Monday that a regional military group will deploy to Belarus’ borders in response to a contrived threat does nothing but further stoke instability in the region. Since 24 February, it has been overwhelmingly clear to the world from which side of the Belarusian/Ukrainian border the threat is emanating and it is not Ukraine.

Mr Chair, the announced deployment of Russian and Belarusian forces into a joint military task force is yet another manufactured distraction from Putin’s faltering invasion: more defeats in the east; more defeats in the south; more Generals sacked; more demoralised troops; more discontent amongst the Russian population; and more critique from Russia’s elites.

The miscalculations continue to mount. Putin and the Russian military leadership have consistently underestimated the will, determination and courage of the Ukrainian military and civilians to defend their homeland from a brutal and barbaric invader. They continue to fail to understand that every horrendous attack strengthens the Ukrainian resolve and that of its friends, like the UK, who remain steadfast in our support – for however long it takes – to ensure that the sovereignty, territorial integrity, and the independence of Ukraine is fully restored.

Thank you.

October 12, 2022
PRESS RELEASE : Appointment of Suffragan Bishop of Beverley [12 October 2022]

The press release issued by Downing Street on 12 October 2022.

Her Late Majesty The Queen approved the nomination of The Reverend Canon Stephen Race, Incumbent of the Benefice of Central Barnsley and Area Dean of Barnsley, in the Diocese of Leeds, to the Suffragan See of Beverley, in the Diocese of York, in succession to The Right Reverend Glyn Webster following his retirement.

Background

Stephen was educated at St Hild and St Bede College, Durham. He trained for ministry at St Stephen’s House, Oxford, and was ordained Priest in 2003.

Stephen served his title at St Mary’s Wigton, in the Diocese of Carlisle, and in 2005 he was appointed Vicar of St John the Baptist, Dodworth, in the Diocese of Wakefield. He was additionally appointed Diocesan Director of Ordinands (DDO) in 2008 for the Diocese of Wakefield (and subsequently the Diocese of Leeds), having served as Assistant DDO from 2005.

Stephen was appointed Priest-in-Charge of St Mary’s Barnsley in 2014, and additionally Priest-in-Charge of St Edward the Confessor Barnsley and St Thomas Gawber in 2017. Following this, he was licensed as Priest in Charge of St George’s Barnsley in 2018 and with the pastoral reorganisations completed, he was licensed as Incumbent of the Benefice of Central Barnsley in 2019. Stephen has served as Area Dean of Barnsley since 2009 and has been an Honorary Canon of Wakefield Cathedral since 2011.

October 12, 2022
PRESS RELEASE : Air and water quality advice now available to all farmers in England [October 2022]

The press release issued by the Department for Environment, Food and Rural Affairs on 12 October 2022.

Farmers across England are now able to benefit from the advice of Catchment Sensitive Farming (CSF) advisers following the expansion of the programme.

Local Catchment Sensitive Farming advisers provide confidential on-farm support and advice across the farming community to encourage uptake of new and existing agricultural schemes and help farmers comply with regulation to deliver environmental gains.

Since 2006, 24,000 farms have benefited from CSF advice, helping farmers take more than 80,000 positive actions to reduce pollution. Reductions in agricultural pollutants include nitrogen levels, which are down 4%, phosphorus levels, which have decreased by 8%, and a 12% reduction in sediment.

Jen Almond, Director of National Operations at Natural England, said:

We are rolling out Catchment Sensitive Farming advice to all farmers in England to help them produce food in a way that protects our water, air and soil whilst minimising losses and maximising efficiencies.

Our advisers provide valuable advice on agricultural transition schemes and grants, natural flood management, and how sustainable farming practices can deliver the greatest environmental gains across the whole country.

CSF is led by Natural England, in partnership with Defra and the Environment Agency. Advisers offer a range of support including signposting to relevant sources of advice, offering one-to-one tailored advice, including a visit from an agricultural specialist, or running group training and on-farm events.

Advice on rainwater harvesting is just one of the ways CSF advisers are supporting farmers. They can provide information on the grants available, potential cost savings and benefits to crop yields.

A survey of farmers who had contact with a CSF adviser early this year found that 83% of farmers who had contact with their CSF Adviser agreed they were a person whose advice they could trust.

CSF also works in partnership with a range of organisations including water companies, local authorities, trade bodies and environmental organisations. Their work has included part-funding advisers and tools to reach more farmers, enabling them to increase the resilience of their farm businesses whilst achieving the greatest environmental gains.

October 12, 2022
PRESS RELEASE : New National Science and Technology Council established [October 2022]

The press release issued by the Cabinet Office on 12 October 2022.

A new National Science and Technology Council (NSTC) has been established with responsibility for driving an ambitious UK science and technology strategy.

The NSTC will double down its efforts to create a UK science and technology system that will be a sustained engine for future economic growth, prosperity and security.

The NSTC will be chaired by the Chancellor of the Exchequer, with the Chancellor of the Duchy of Lancaster as deputy chair. It will deliver a plan to harness science and technology to support economic growth and the UK’s position on the geopolitical stage, sending a clear signal to the sector about the government’s priorities in this area.

October 12, 2022
PRESS RELEASE : Bank of England widens gilt purchase operations to include index-linked gilts [October 2022]

The press release issued by the Bank of England on 11 October 2022.

The Bank continues to monitor developments in financial markets very closely in light of the significant asset repricing of recent weeks. It has also been working with the UK authorities to address risks to the resilience of Liability Driven Investment (LDI) funds arising from volatility in the long-dated government bond (gilt) market.

On 28 September, the Bank announced that, in line with its financial stability objective, it would make temporary and targeted purchases of gilts to help restore market functioning and reduce any risks from contagion to credit conditions for UK households and businesses.

As previously announced, the Bank plans to end these operations and cease all gilt purchases on Friday 14 October.

On 10 October, the Bank announced additional measures to support market functioning and an orderly end to its gilt purchase scheme. These included the launch of a Temporary Expanded Collateral Repo Facility (TECRF) through which banks would be able to help to ease liquidity pressures facing their client LDI funds through liquidity insurance operations, and the expansion of the scale of its remaining gilt purchase auctions.

The purpose of these operations is to enable LDI funds to address risks to their resilience from volatility in the long-dated gilt market. LDI funds have made substantial progress in doing so over the past week. However, the beginning of this week has seen a further significant repricing of UK government debt, particularly index-linked gilts. Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability.

Therefore the Bank is announcing today that it will widen the scope of its daily gilt purchase operations also to include purchases of index-linked gilts. This enhancement to our operations will be in effect from 11 October 2022 until 14 October 2022 alongside the Bank’s existing daily conventional gilt purchase auctions.

These additional operations will act as a further backstop to restore orderly market conditions by temporarily absorbing selling of index-linked gilts in excess of market intermediation capacity. As with the conventional gilt purchase operations, these additional index-linked gilt purchases will be time-limited and fully indemnified by HM Treasury. The Bank has also consulted with the Debt Management Office.

As announced on 10 October, the Bank stands ready to purchase up to £10bn of gilts each day, of which up to £5bn will be allocated to long-dated conventional gilts and up to £5bn to index-linked gilts. The pricing of this additional operation will reflect its nature as a backstop and that this is not a monetary policy instrument. The total size of these auctions will be kept under review. All purchases will be unwound in a smooth and orderly fashion once risks to market functioning are judged to have subsided.

The Bank will temporarily pause its CBPS sales operations this week. Confirmation of these restarting will be included as part of the Bank’s regular operational announcements.

The Bank will publish a Market Notice confirming operational details of the Bank’s index-linked gilt purchases.

October 12, 2022
Advertising Standards Authority – 2022 Ruling on Department for Levelling Up, Housing and Communities

The ruling issued by the Advertising Standards Authority (ASA) on 12 October 2022.

Ad description

Seven newspaper advertorials for the Department of Levelling Up, Housing and Communities:

a. The first newspaper advertorial, seen on 13 March 2022, featured on the Grimsby Telegraph website, www.grimsbytelegraph.co.uk, and had the headline “Levelling Up! What is it and what does it mean for Grimsby?”. Underneath that, text stated, “By Millie Reeves Commercial Writer”. On the far right-hand side, a grey box with the word “ADVERTORIAL” was featured. Directly underneath that, “MOST READ” was stated and a number of links to other Grimsby Telegraph articles were included below that text.

At the bottom of the article, an infographic was featured which included the HM Government logo.

b. The second newspaper advertorial, seen 13 March 2022, featured on the Derby Telegraph website, www.derbytelegraph.co.uk, and had the headline “Levelling Up! What is it and what does it mean for Derby?”. The ad had the same layout as ad (a).

c. The third newspaper advertorial, seen 13 March 2022, featured on the Birmingham Mail website, www.birminghammail.co.uk, and had the headline “Levelling Up! What is it and what does it mean for the West Midlands?”. The ad had the same layout as ad (a).

d. The fourth newspaper advertorial, seen 13 March 2022, featured on the CornwallLive website, www.cornwalllive.com, and had the headline “Levelling Up! What is it and what does it mean for Cornwall and the Isles of Scilly?”. The ad had the same layout as ad (a).

e. The fifth newspaper advertorial, seen 13 March 2022, featured on the Leicestershire Mercury website, www.leicestermercury.co.uk, and had the headline “Levelling Up! What is it and what does it mean for Loughborough?”. The ad had the same layout as ad (a).

f. The sixth newspaper advertorial, seen 13 March 2022, featured on the Newcastle Chronicle website, www.chroniclelive.co.uk, and had the headline “Levelling Up! What is it and what does it mean for Newcastle?”. The ad had the same layout as ad (a).

g. The seventh newspaper advertorial, seen 13 March 2022, featured on the Wales Online website, www.walesonline.co.uk, and had the headline “Levelling Up! What is it and what does it mean for Wales?”. The ad had the same layout as ad (a).

Issue

Lisa Nandy MP and Alex Norris MP challenged whether the ads were obviously identifiable as marketing communications.

Response

The Department for Levelling Up, Housing and Communities said they believed the advertorial labelling was both visible and prominent. They explained that block capitals were used in the word “ADVERTORIAL” and that it was set within a frame.

They clarified that the labelling was in Reach Plc’s house style and common practice across all of their titles. They said publishers were responsible for ensuring content was correctly labelled and followed guidelines. They explained that the labelling differed across both print and digital and they believed publishers were best placed to understand what resonated best with their readers. They also highlighted that many of the articles featured an infographic which included the Levelling Up and HM Government logo.

Reach Plc said they considered all of the ads to be obviously identifiable as marketing communications for the Department for Levelling Up, Housing and Communities. They explained that all of the ads were shown in the “Partner Stories” section of the website. The ads featured a grey box with the label “ADVERTORIAL” prominently placed on the top right-hand side. They emphasised that the label travelled down as the reader scrolled down the page. However, they later confirmed that this technical feature was not in place at the time of the campaign, and therefore, would not have been seen by readers of the ads.

They re-iterated that all of the articles featured an infographic which included the HM Government logo, and that the final sentence stated, “To find out more about Levelling Up and how the plans will improve your area, as well as how you can get involved with decision making, please go to gov.uk/levellingup”. In addition, they said that the use of “Commercial Writer” in the by-line would make readers aware that the article was commercial content.

Reach said that, to view the ads, the reader would have had to follow one of three journeys, namely: via a Facebook ad which they believed was labelled in accordance with Facebook guidelines; a labelled Google Display Network ad; or from the homepage on the website in which the image for the article was labelled “ADVERTORIAL” in the top left-hand corner, in font which they believed to be commensurate with font used on the rest of the homepage. They said that meant the advertorials were obviously identifiable as marketing communications.

Assessment Upheld

The CAP Code stated that marketing communications must be obviously identifiable as such. Any visual or contextual signposts need to be sufficiently prominent and clear prior to engagement with the content.

The ASA understood that the ads would generally be accessed either via the homepage of the newspaper’s website or by readers who had interacted with a Facebook or Google ad, which included statements such as “What is Levelling Up? Find out where investments are being made in Derby and your local area”. Whilst those ads were labelled, we noted that the statements did not reference the Department for Levelling Up, Housing and Communities and it was not clear from the text that the subsequent article would also be an ad. We noted that on the homepage, the image for the ad was labelled “ADVERTORIAL” in the top-left corner. However, we considered that the font used for the label was small, particularly compared with other text used on the webpage, and as such it was not sufficiently clear that the linked article was an ad. Additionally, readers might arrive at the ad via another route. It was therefore necessary for the ads to be obviously identifiable as ads.

We considered the desktop versions of the ads, which were labelled with the text “ADVERTORIAL” placed within a grey tile, which we understood was the standard desktop format for all of Reach’s publications. We noted that the advertorial label was placed to the far right-hand side of each website above links to other articles from the newspaper, with a line dividing that part of the page from the advertorial.

Therefore, we considered, within the context of the full-page ads, that it was not clear that the heading related to the ads and that readers were likely to overlook this text. That was reinforced with the by-line that stated “By Millie Reeves Commercial Writer” which was placed directly underneath the headline. We also did not agree with Reach that the average reader would understand from the term “Commercial Writer” that the article was an ad. We considered readers would see this and understand that, in the absence of prominent ad labelling, the article was a piece of editorial content.

Whilst we recognised that Reach said the advertorial label remained visible as readers scrolled down the webpage, we did not see evidence of that when we viewed the ads, and they later confirmed that this feature was not available at the time when the ads were live. Nevertheless, if the label did move as the user scrolled, its position would remain far-right aligned, which we considered meant that it would continue to be overlooked by readers.

We acknowledged that the advertorials featured an infographic which included a HM Government logo. However, we considered that readers were likely to understand that the infographic itself was derived from a government source and used in the context of an editorial article, rather than draw the conclusion that its presence meant the article was an ad for the Department for Levelling Up, Housing and Communities.

We therefore concluded that the ads were not obviously identifiable as marketing communications. The ads breached CAP Code (Edition 12) rules and (Recognition of marketing communications).

Action

The ads must not appear again in their current form. We told the Department for Levelling Up, Housing and Communities, and Reach Plc to ensure that all future marketing communications were prominently and clearly identifiable as such.

October 12, 2022