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Tag: 2024

  • PRESS RELEASE : UK backs clean power innovation to speed up global energy transition [November 2024]

    PRESS RELEASE : UK backs clean power innovation to speed up global energy transition [November 2024]

    The press release issued by the Department for Energy Security and Net Zero on 15 November 2024.

    UK spearheads global efforts to combat climate change with a funding package to help developing countries transition to clean energy.

    • UK funding for developing countries to roll out clean energy and accelerate global transition away from fossil fuels
    • push for ambition at home and abroad to meet decarbonisation targets and give everyone access to clean power
    • package of support positions UK as leader on clean tech innovation while unlocking rewards of green economic growth

    The UK will be leading support for countries on the front line of the climate crisis to make their transition to clean energy, in a new package of support unveiled by Energy Secretary Ed Miliband at COP29.

    To tackle climate change at home and abroad, countries that are already suffering from its worst impacts need support to accelerate their transition to clean power, cut emissions and increase economic growth.

    The funding will help climate vulnerable countries, including African nations and small island states, to develop new low-carbon technologies, with innovations in energy storage, zero emission generators and clean transport. It will also support innovations such as material and system efficiencies, which will be instrumental in decarbonising steel, chemicals, cement and concrete industries.

    Delivering global action on climate change will help protect families and businesses in the UK and abroad, while accelerating global clean power to unlock the rewards of green economic growth.

    The funding comes after the UK announced an ambitious target to reduce its emissions by 81 per cent by 2035 – showing leadership in tackling climate change while harnessing a range of benefits for the UK, including better jobs, cheaper bills and higher growth.

    Energy Secretary Ed Miliband said:

    Climate change does not respect borders, and the UK has seen a year of record-breaking warmth. That’s why we are determined to lead from the front and drive global change, to protect future generations at home and abroad.

    This funding commitment from the UK is what we mean when we say we are back in the business of climate leadership, supporting the world’s most vulnerable and unlocking the global growth benefits of decarbonising economies.

    Climate Minister Kerry McCarthy said:

    Developing countries are often on the front line of the climate crisis, at higher risk of floods, heatwaves, and food insecurity, despite doing very little to cause it.

    This funding is part of a key priority for us at COP29. It will support the flow of finance to these countries so they can adapt to a changing climate, building resilience and accessing clean energy for their own transition.

    When the UK acts other countries follow, so we are leading by example to tackle the biggest challenge we face.

    Funding pledges announced at COP29 include:

    • £45 million of funding for the World Bank’s Energy Sector Management Assistance Programme (ESMAP) to support developing and emerging countries addressing energy challenges – making the UK the largest donor to a well-established World Bank Trust Fund.
    • £15 million of funding for Innovate UK to support clean energy innovation in developing countries.
    • £14 million of funding for United Nations Industrial Development Organisation (UNIDO) to support the development of innovation projects in industrial decarbonisation and clean hydrogen.
    • £5 million to help developing countries tackle methane emissions in their fossil fuel, supporting delivery of the Global Methane Pledge launched at COP26.

    The funding is part of the UK’s existing £11.6 billion International Climate Finance commitment between 2021/22 and 2025/26 which is allocated from the Official Development Assistance (ODA) budget – delivering on a global commitment of 0.5 per cent of Gross National Income for developing countries.

    At COP29 the UK has also set the direction of voluntary carbon markets, so they can channel more finance to developing countries. A new set of UK Integrity Principles will raise integrity in the generation, trade and use of carbon and nature credits, so that voluntary markets work better for people, nature and the planet.

    Notes to editors

    The funding announcement comes as the government has started the most significant investment programme in homegrown British energy through its clean power by 2030 mission – unlocking thousands of jobs and driving investment into UK communities. So far, the government has:

    • lifted the ban on onshore wind in England
    • delivered a record number of clean energy projects through its renewables auction, securing enough clean power to supply the equivalent of 11 million homes
    • approved unprecedented amounts of nationally significant solar – 2GW – more than the last 14 years combined
    • launched Great British Energy
    • fired the starting gun on the UK’s Carbon Capture and Storage industry, with funding agreed for two clusters in Teesside and Merseyside

    A total of £29 million of funding for Innovate UK and the United Nations Industrial Development Organisation (UNIDO) is an allocation from the UK’s £1bn Ayrton Fund which supports clean energy innovation and industrial decarbonisation.

  • PRESS RELEASE : Keir Starmer boosts UK aerospace industry with £975 million to drive growth and jobs [November 2024]

    PRESS RELEASE : Keir Starmer boosts UK aerospace industry with £975 million to drive growth and jobs [November 2024]

    The press release issued by 10 Downing Street on 14 November 2024.

    Thousands of highly skilled jobs will be supported across the UK as the Prime Minister throws his support behind the aerospace industry – with £975 million over the next 5 years for this key growth sector.

    In a boost for aerospace centres in places like Broughton, Filton and Derby, the Government has extended the Aerospace Technology Institute (ATI) Programme. The extension will speed up innovation, create job opportunities and support an industry that is a source of pride for communities across Britain.

    The Prime Minister will today (Friday 15 November) make his first visit to Wales since the Budget, which has one of the largest aerospace clusters in the world, employing over 20,000 people.

    Prime Minister Keir Starmer said:

    From modern aircraft engines to helicopters, the UK’s aerospace industry is truly world-class.

    The UK is at the forefront of cutting-edge aerospace industry, and by accelerating our investment we will unlock the tech of the future and take a crucial step forward in our mission to deliver growth and opportunity across our country.

    The government’s investment provides industry with long-term confidence in the UK as a place to in turn invest in cutting-edge aerospace technology and help extend the UK’s global lead in wings and engine manufacturing, whilst working to deliver zero-emission flights. Bidding for the funding will open in January, with projects expected to begin from the Autumn.

    Aerospace will also be at the heart of the government’s Industrial Strategy, while also having an important global role in achieving our Net Zero targets and defence, with the RAF and Royal Navy both relying on its technology.

    Business and Trade Secretary Jonathan Reynolds said:

    Our world-class aerospace sector added almost £40 billion to the economy last year, supporting high-skilled jobs in every part of the UK.

    Backing the sector with this funding will ensure the UK can continue to pioneer new technologies, all while delivering the economic growth that will be felt in communities across the country.

    Ahead of the visit, the Prime Minister has also confirmed £49 million worth of aerospace projects in Wales. When combined, the South West and Wales design and assemble around half of the world’s large civil aircraft wings.

    The Prime Minister added:

    Growth is the defining mission of this government, and our investment will drive forward the future of the aerospace industry in Wales. Working in partnership with the Welsh Government, backed by the largest ever Budget settlement, we are determined to deliver the jobs and opportunities that will make working people feel better off.

    First Minister Eluned Morgan said:

    Wales is a cornerstone of the UK’s Aerospace industry, with over 20,000 people employed here in high quality, skilled jobs in the Aerospace and Defence sectors.

    I welcome today’s news, another in a succession of job announcements for Wales this autumn.

    Airbus UK Chairman John Harrison said:

    The commitment of £975m for the aerospace sector over five years offers certainty for long-term sustainable aviation investment and highly skilled jobs, delivering on the UK’s R&D and growth plan and acknowledging Aerospace’s key role in the upcoming Industrial Strategy.

  • Rachel Reeves – 2024 Mansion House Speech

    Rachel Reeves – 2024 Mansion House Speech

    The speech made by Rachel Reeves, the Chancellor of the Exchequer, at the Mansion House in London on 14 November 2024.

    Lord Mayor, Governor, Ladies and Gentlemen.

    It’s an honour to be here with you this evening.

    Thank you to the City of London Corporation for hosting us.

    It is a privilege to follow the Lord Mayor’s address…

    … and to give my first Mansion House speech.

    As the Lord Mayor said, there are so many reasons to be optimistic about our country…

    … and I absolutely share his ambition for our potential.

    The potential of our financial services sector.

    The potential we have to make Britain more competitive.

    And critically, the potential that we have to grow our economy.

    That is why…

    … both in opposition and now in government…

    … improving economic growth has been at the very heart of everything that I am seeking to achieve.

    In my Mais lecture earlier this year…

    … I set out my view that we are in a moment of flux…

    … and a new approach was required to build secure and sustainable growth…

    … on the platform of stability, investment and reform.

    When I arrived at the Treasury just over four months ago…

    … I said on day one that economic growth was now our national mission…

    … as I set out plans to tackle some of the longstanding issues in the supply-side of our economy.

    And two weeks ago, I delivered my first budget as Chancellor of the Exchequer.

    It was a once in a parliament budget to wipe the slate clean.

    It was a budget that tackled two elements in our plan for economic growth.

    First, it provided economic stability…

    … by putting our public finances back on a firm footing.

    That required difficult choices.

    On spending, on welfare, and on tax.

    But by making those tough choices now…

    … we are providing stability for the long-term.

    Because instability in our public finances leads to instability in our financial markets.

    That is not good for investment.

    That is not good for growth.

    And it is not good for business.

    So by drawing a line under instability…

    … business can now plan for the future.

    And we have provided stability for our public services too…

    … which now deliver within the spending envelope that they have been set…

    … and through reform, they must live within their means.

    The second step that we took to improve economic growth at the budget…

    … was to change course on public investment.

    Public investment was set to fall by nearly 1% of GDP under the plans that I inherited.

    That would have held back our growth potential for many years to come.

    As the International Monetary Fund have set out…

    … low levels of public investment have been a major contributing factor to the UK’s weak growth performance…

    … not least, because it makes it harder to catalyse the private investment that we so badly need.

    Now, as a result of the measures that we have taken…

    … public investment will be £100bn higher over the next five years…

    … creating jobs…

    … and driving growth and opportunity across the United Kingdom.

    This will be delivered alongside a series of vital guardrails…

    … to ensure that spending delivers the very best value-for-money…

    … provides returns for taxpayers…

    … catalyses private investment…

    … and significantly boosts growth and productivity.

    Because of the steps that we took…

    … the Office of Budget Responsibility have set out that, in the long-term…

    … our policies would permanently increase the supply capacity of our economy.

    But that does not represent the height of my ambition.

    I know that we can do more…

    … to go further and faster in realising our growth potential.

    So that is why economic growth will continue to be the central mission in the weeks, months and years ahead.

    Having focused on economic stability and public investment in the budget…

    … tonight I will set out the steps that we are taking …

    …to drive growth across the other key areas that have long been my priority.

    Increasing private investment.

    And reforming our economy.

    Let me begin with our plans to increase investment.

    More investment is how we spur innovation and growth.

    It is how we boost the efficiency and the capacity of our economy.

    And it is how we create the new opportunities and high-skilled jobs in every part of our country.

    Today, I am focusing on how we continue to attract investment across the world.

    And how we increase private investment…

    … by working in partnership with business…

    … and specifically, with the financial services sector.

    Before entering politics, I worked as an economist at the Bank of England.

    And then in financial services.

    Before we came into government…

    … I was clear that financial services must play a central part in our economic vision…

    … and our plans for economic growth.

    Because I know that this sector is the crown jewel in our economy.

    It employs 1.2m people, from London to Edinburgh, and from Manchester to Belfast.

    It is one of the country’s largest and most productive sectors, accounting for 9% of our economic output.

    And it is a global success story, as the Lord Mayor has said: we are the second largest exporter of financial services in the G7.

    But we cannot take the UK’s status as a global financial centre for granted.

    In a highly competitive world…

    … we need to earn that status…

    … and we need to work to keep it.

    I have been determined to do just that since becoming Chancellor.

    Just one week into office, I welcomed the biggest changes to the UK’s listing regime in over three decades…

    … to reform our capital markets…

    … increasing the flexibility for firms and founders of British high growth companies…

    … so we have more British success stories…

    … like Raspberry PI and Applied Nutrition…

    … IPO right here in the UK.

    In our first month, we launched the landmark Pensions Review, and I will return to that later in my speech.

    And in September, we announced the final stage of our post-crisis reforms to banks’ capital requirements…

    … marking the end of the journey to ensure that banks are well-capitalised…

    … working side by side with the Governor…

    … strengthening the resilience of our banking system…

    … whilst protecting banks’ ability to lend to small and medium enterprises…

    … and also for infrastructure.

    Now, we must build on the steps we’ve already taken.

    In the Spring, we will publish the first ever Financial Services Growth and Competitiveness Strategy.

    This will give the financial services sector the confidence it needs to invest.

    Financial services is one of the eight growth sectors in our modern industrial strategy…

    … recognising that, just as in other parts of the economy…

    … we must constantly work to remove barriers to growth and investment.

    This approach will ensure that we promote our strengths across the world.

    And today, we are setting out the five, priority growth opportunities on which that strategy will focus…

    … Fintech…

    … sustainable finance…

    … asset management and wholesale services…

    … insurance and reinsurance…

    … and capital markets.

    And we will work in partnership with you…

    … on the development of the strategy…

    … ahead of its publication in the Spring…

    … driven forward by our City Minister, Tulip Siddiq

    By providing the basis of long-term stability for the sector…

    … we are laying the foundations for more private investment.

    The UK has the lowest levels of business investment in the G7 as a percentage of GDP.

    In the Budget, we confirmed our plans to capitalise the flagship impact investor, the National Wealth Fund…

    … to invest in the industries of the future…

    … and catalyse over £70bn of private investment.

    And in the last month alone, the National Wealth Fund has struck a number of deals…

    … including funding to deliver full fibre broadband across the UK…

    … and to support the building of new infrastructure in Wales.

    The PRA, the Treasury and the National Wealth Fund will work together to crowd in investment by insurers…

    … in productive assets…

    … taking full advantage of the new Solvency UK regulatory regime.

    That includes investment in clean energy projects.

    I want London to be the place where the billions needed to finance the energy transition are financed…

    … and we have already mobilised significant private capital through the International Investment Summit last month…

    … including £4bn for the East Anglia 2 wind farm…

    … and £2bn to build new solar farms in Essex, Yorkshire and Wiltshire.

    This week, the Prime Minister welcomed the launch of the Climate Investment Fund Capital Market Mechanism on the London Stock Exchange.

    Tonight we are building on these foundations to deliver a world-leading sustainable finance framework.

    This will be built in partnership with industry…

    … and we will be co-launching the Transition Finance Council alongside the City of London Corporation.

    This presents a huge opportunity for the UK financial services sector…

    … and I am determined that we win this race for global business.

    Alongside our National Wealth Fund…

    … we must ensure that there are a wide range of other vehicles to drive private investment.

    Tonight, I want to focus on our plans in one of those key areas: pension funds.

    Our pensions market is one of the largest in the world.

    There will be £800bn of assets in workplace Defined Contribution schemes…

    … and £500bn of assets in the local government pension scheme…

    … by the end of this decade.

    Pension funds will always play an important role in the gilt market…

    … but for too long, pensions capital has not been used to support the development of British start-ups, scale-ups or to meet our infrastructure needs.

    I have long been of the view that this hurts our economy…

    … because our highest-potential businesses cannot expand…

    … and savers are not seeing the returns on their investment which they deserve.

    So I was pleased when the previous government, led by my predecessor as Chancellor…

    … working with industry…

    … took steps through the Mansion House Compact…

    … to encourage more pension fund investment into productive assets.

    I welcomed those reforms and we will take them forward…

    … but now we need to go further.

    That is why one of my first steps as Chancellor was to announce the Pensions Investment Review…

    … led by our first ever joint Treasury and DWP Minister for Pensions, Emma Reynolds…

    … who has worked with many of you over recent months.

    Australian pension schemes invest around 3 times more in infrastructure investment compared to Defined Contribution schemes in the UK…

    … and 10 times more in private equity, including in high growth businesses, compared to the UK.

    One of the key reasons for this is the much larger size of their funds…

    … while our pensions landscape remains highly fragmented.

    That means many of our pension funds do not have the capacity to invest at the scale required.

    And more often than not, it is Canadian teachers and Australian professors…

    … reaping the rewards of investing in British productive assets through their pensions schemes…

    … rather than British savers.

    That’s not good enough…

    … and we need to change that.

    So tonight, we are publishing the interim report of the Pensions Investment Review.

    It sets out our plans to create Canadian and Australian style-“megafunds” to power growth in our economy…

    … and start the most significant set of changes to the pensions landscape since the Turner Review…

    … underpinned by a clear commitment to legislate for these changes for the first time…

    … in the Pension Scheme Bill next year.

    We will deliver a significant consolidation of the Defined Contribution market…

    … to enable schemes to deliver better saver outcomes…

    … while investing to support growth.

    And we will legislate on measures to consolidate the Local Government Pension Scheme…

    … one of the largest pension schemes in the world…

    … and require that the 86 Local Government Pension Scheme administering authorities consolidate all their assets into 8 pools.

    These reforms will deliver real change in our economy.

    Through consolidation of the DC market and Local Government Pension Schemes into megafunds…

    … previous domestic and international experience suggests…

    …that we could unlock around £80bn for investment in private equity, including exciting growth businesses…

    … and in vital infrastructure projects including transport, energy and housing projects here in the UK.

    We will take a more proactive approach to working with investors to ensure that capital is directed to the UK’s biggest growth opportunities.

    We are creating NISTA and we will publish a ten-year infrastructure strategy…

    … to ensure that there is a pipeline of projects to attract that investment.

    We have established a new pathfinder British Growth Partnership…

    … to crowd-in institutional investment into venture capital funds and innovative businesses here in the UK.

    This work is already making an impact.

    I can confirm this evening that Aegon UK…

    … will be a substantial cornerstone investor…

    … and Natwest Cushon…

    … and they have now agreed to work with the British Business Bank on the launch of the British Growth Partnership…

    … with a view to making an investment in the initial fund.

    The final area I want to focus on when it comes to investment is the importance of looking internationally.

    Last month, with the support of many people in this room – including the Lord Mayor and Barclays, HSBC, Lloyds, and M&G – we hosted an International Investment Summit in London…

    … where we saw £63bn of investment flow into the UK.

    That shows the potential that we have to attract funding from across the world into our country.

    But I want to be clear-eyed about the context in which the UK…

    … and its businesses…

    … will be operating under in the years ahead.

    We face geopolitical uncertainty.

    There are other countries who are looking for the very same economic opportunities as we are.

    And we face structural challenges too, including those which have come from Brexit.

    It will not be straightforward to navigate all of these headwinds.

    We should be honest about that.

    But as we navigate them…

    … I will be guided by a clear principle.

    I will always do what is in our national interest…

    … for our economy…

    … for our businesses…

    … and for the British people.

    That means free and open trade…

    … especially with our most economically important partners.

    That includes the United States…

    … our single most important destination for financial services trade…

    … and there is so much potential for us to deepen our economic relationship on areas such as emerging technologies.

    I look forward to working closely with President-Elect Trump, and his team, to strengthen our relationship in the years ahead.

    And of course our biggest trading partner is the European Union.

    We will not be reversing Brexit or re-entering the single market or customs union…

    … but we must reset our relationship.

    That will be my message when I attend the Eurogroup meeting of finance ministers in Brussels next month.

    We must recognise that our markets are highly inter-connected…

    … and ensure that on the economy and in financial services…

    … our approach supports growth and delivers investment.

    And where there are other important economic opportunities for the UK…

    … including by engaging with significant and fast-growing economies like India, China and the Gulf states…

    … we will look to realise those opportunities, too.

    Alongside economic stability…

    … and higher levels of investment…

    … we need reform.

    Supply-side reform has been a central part of our work in the last four months…

    … through changes to our planning system to unlock housing and new infrastructure…

    … policies to reduce economic inactivity, improve skills and bring people back into the workplace…

    … and a focus on place-based measures to deliver growth right across the UK.

    I know the Governor will have more to say on the topic of supply-side reform shortly.

    Tonight, I want to build on the work we have done…

    … which puts reform at the heart of this government’s agenda.

    First, I am clear that this must include reform of our public services.

    In the budget, I set out our future spending plans…

    … to ensure that our public services have the investment that they need for the years ahead.

    That additional investment comes with the clear expectation of better value for money…

    … and higher productivity.

    As the Secretary of State for Health said yesterday…

    … taxpayers welcome the additional investment we put it into the NHS…

    … but they worry it won’t be spent wisely.

    So reform will be a central focus of the second phase of the Spending Review right across government.

    We will use digital technology more effectively.

    We will focus on prevention, to manage pressures in the system.

    We will join-up services across government to increase efficiency and to bring costs down.

    And we will harness the knowledge and expertise of business leaders as we do so…

    … so that we can ensure that we bring the best ideas into government from beyond Whitehall, too.

    Alongside this …

    … we need economic reform to unlock the full potential growth potential of the British economy.

    Our approach to regulation is a critical part of that.

    As the Prime Minister has already set out, the key test for regulation is whether it will make our economy more dynamic and more competitive.

    So we will review the strategic guidance that we give to the CMA and to other major regulators…

    … to underline the importance of growth.

    That includes our financial service regulators.

    It was right that successive governments made regulatory changes after the Global Financial Crisis…

    … to ensure that regulation kept pace with the global economy of the time…

    … but it is important that we learn the lessons of the past.

    These changes have resulted in a system which sought to eliminate risk taking.

    That has gone too far…

    … and, in places, it has had unintended consequences that we must now address.

    Let me set out some examples.

    First, while the Senior Managers and Certification Regime has helped to improve standards and accountability…

    … some elements of it have become overly costly and administratively burdensome.

    So the Treasury, the FCA and the PRA will shortly publish the outcomes of our review…

    … including a commitment to consult on removing the current Certification Regime from legislation.

    Second, as the PRA have acknowledged…

    … post-crisis pay structures made the UK an international outlier on deferral arrangements…

    … so we will support their intention to consult on reducing the length of pay deferrals…

    … helping firms to attract and retain talent.

    Third, some of our regulatory requirements are duplicative, and they could be streamlined…

    … so I look forward to seeing the outcomes of the FCA’s Handbook Review…

    …which can free up resources for businesses to innovate and to grow.

    And finally, while regulation has been successful in improving the quality of financial advice being offered to consumers…

    … many people do not get the help with their finances that they want and need…

    … so the FCA will shortly consult on transformational changes to financial advice and guidance…

    … to ensure that people get the right support.

    As these examples show…

    …the UK has been regulating for risk, but not regulating for growth.

    So while maintaining important consumer protections…

    … upholding international standards of regulation…

    … and protecting the vital stability of our financial services system…

    … now is also the moment to rebalance our approach….

    … and take forward the next stage of reforms needed to drive growth, competitiveness and investment.

    The last government introduced legislation to make growth and competitiveness secondary objectives for our regulators…

    … which we supported in opposition.

    Tonight I can announce that we have issued new growth-focused remit letters to the Financial Conduct Authority…

    … Prudential Regulation Committee…

    … Monetary Policy Committee..

    … Financial Policy Committee…

    … and the Payment Systems Regulator.

    These make clear that I expect them to fully support this government’s ambitions on economic growth.

    I welcome the work that the FCA and PRA have already started…

    … and I look forward to seeing their next steps to deliver that growth and competitiveness.

    I have also heard from many of you that our approach to redress can cause uncertainty..

    … and be a drag on investment.

    The Financial Ombudsman Service plays a vital role for consumers to get redress when things have gone wrong, and that will not change.

    But reform is needed to create a surer climate for investment.

    So we have worked closely with the FCA and the Ombudsman to develop a new agreement between the two institutions…

    … with clearer expectations on how they cooperate…

    … including on historic market practice and mass redress events.

    And I strongly welcome their joint Call for Input, to be published tomorrow…

    … which seeks to significantly improve the rules governing how the Service operates.

    Alongside these measures…

    … we are tonight setting out a range of further steps…

    … to build a true partnership between government and the financial services sector…

    … and unlock its potential.

    Let me take you through them.

    Because reforming capital markets is a priority for this government…

    … we are today committing to legislate to establish PISCES…

    … an innovative new stock market…

    … by May 2025…

    … to support companies to scale and grow.

    We are supporting innovation in the financial services sector…

    … by launching a pilot to deliver a Digital Gilt Instrument…

    … referred to as DIGIT…

    … using distributed ledger technology.

    Insurance markets are also pivotal in supporting growth.

    So we are today publishing a consultation on captive insurance…

    … where a new approach could cement the UK’s position as a leading financial services centre.

    And alongside the regulators’ continued efforts, we will consider further steps to improve the UK’s Insurance Linked Securities offer.

    To protect the integrity of the financial services sector…

    … we are working with tech platforms and telco networks to reduce the scale of incidence and losses from fraud.

    To empower female entrepreneurs and support women in business…

    … we are backing the ambitious work of the Invest in Women taskforce, led by Debbie Wosskow and Hannah Bernard…

    … delivered alongside our Women in Finance Charter – led by Dame Amanda Blanc – which continues to go from strength to strength.

    To support the mutual sector…

    … we are launching our call for evidence on the credit union ‘common bond’…

    … and asking regulators to report on the mutuals landscape.

    And I welcome the work of Nationwide, Co-operative Group, Arla and Royal London to establish an industry-led Mutuals Council to drive growth in the sector.

    And finally, we are publishing our National Payments Vision…

    … including decisive action to progress Open Banking…

    … and support our fintech businesses.

    Lord Mayor, Governor, Ladies and Gentlemen.

    In the budget, two weeks ago…

    … we fixed the foundations…

    … and restored stability to our public finances.

    The precondition for a strong and successful economy.

    The changes that I have set out this evening will drive growth and competitiveness…

    … through investment and through reform.

    A long-term strategy to harness the strengths of our financial services sector.

    Making the UK a global leader in sustainable finance.

    Reducing uncertainty by developing the right approach to redress.

    Reinvigorating our capital markets by unlocking private investment through our pension funds.

    And reforming our approach to regulation to make it more dynamic and the sector more competitive.

    Taken together, these measures represent the most pro-growth financial services package since the financial crisis.

    Because we cannot rest on our laurels.

    Where we have strengths…

    … we must build on them.

    Where we have weaknesses…

    … we must address them.

    And in everything we do, we will work together…

    … with you …

    … in partnership.

    Because that is what our country needs to prosper and to grow.

    Thank you very much.

  • PRESS RELEASE : We must work together in these committees to protect our citizens and prevent the spread of terrorism – UK statement at the UN Security Council [November 2024]

    PRESS RELEASE : We must work together in these committees to protect our citizens and prevent the spread of terrorism – UK statement at the UN Security Council [November 2024]

    The press release issued by the Foreign Office on 14 November 2024.

    Statement by Ambassador James Kariuki, UK Deputy Permanent Representative to the UN, at the UN Security Council meeting on 1267/1989/2253 Committee, 1373 Committee and 1540 Committee.

    Earlier this year, the OPCW IIT released its report on the devastating chemical weapons attack in Marea, Syria in 2015, which held Da’esh responsible. This is just one demonstration of why coordination between these three committees remains so important.

    The threat from terrorists and non-state actors continues to adapt. Terrorist groups, including Al-Qaeda and Daesh affiliates, operate around the world.

    It is vital that we choose to work together in these committees to protect our citizens, to prevent the spread of terrorism, and to ensure the safe and secure development of chemical, nuclear and life-sciences industries globally. We thank the Chairs for notable achievements this year, which includes the following:

    First, the 1267 monitoring team’s analysis of the evolving threat and effectiveness of sanctions remains a crucial resource for member states. And the Ombudsperson’s office continues to offer a robust and independent process to challenge designations.

    We welcome the renewal of their mandate earlier this year, and applaud that this Council now recognises sexual and gender-based violence as tactics of terrorism and grounds for listing under the regime.

    Second, the 1540 Committee has secured progress on monitoring implementation, and the development of technical reference guides. Its 20th anniversary in April was an important milestone.

    And third, the participation of technical experts, civil society, and the private sector have made invaluable contributions to the Counterterrorism Committee’s work.

    Colleagues, these committees share a common goal: to tackle the persistent and significant threat to international peace and security posed by terrorist groups and non-state actors. Through the continued effective and coordinated implementation of their mandates, together we can tackle these threats.

  • PRESS RELEASE : Chancellor fires up financial services sector to drive growth [November 2024]

    PRESS RELEASE : Chancellor fires up financial services sector to drive growth [November 2024]

    The press release issued by HM Treasury on 14 November 2024.

    Chancellor to announce package of reforms to ensure the UK’s status as a global powerhouse for financial services in her first Mansion House speech.

    • Reeves to say regulatory changes post-financial crisis created a system which sought to eliminate risk taking ‘that has gone too far’ and led to unintended consequences.
    • Growth focused remit letters sent to regulators and first-ever Financial Services Growth and Competitiveness Strategy to be published.

    The Chancellor will announce a package of reforms to drive growth and competitiveness in financial services, as she argues that regulatory changes to eliminate risk after the financial crisis have ‘gone too far’ and led to unintended consequences.

    In her first Mansion House speech as Chancellor, Rachel Reeves will say that the UK’s status as a global financial centre cannot be taken for granted.

    She will argue that, while the UK will always uphold high standards, a system has been created which seeks to eliminate risk taking and holds back economic growth. “The UK has been regulating for risk, but not regulating for growth,” she will say.

    The Chancellor will outline a plan to rebalance the system, setting the financial services sector up to innovate, grow and seize the opportunities for investment in businesses, infrastructure and clean energy across Britain.

    This will include setting new growth-focused remits for financial service regulators, the publication next year of the first ever Financial Services Growth and Competitiveness Strategy and creating pension mega funds to boost investment so that ordinary people benefit from growth.

    Speaking in the City of London, the Chancellor of the Exchequer Rachel Reeves will say:

    Before we came into government, I was clear that the financial services sector must play a central part in our economic vision and our plan for economic growth.

    Because I know that this sector is the crown jewel in our economy. It employs 1.2m people, from London to Edinburgh, and from Manchester to Belfast. It is one of the country’s largest and most productive sectors, accounting for 9% of our economic output.

    And it is a global success story: we are the second largest exporter of financial services in the G7.

    But we cannot take the UK’s status as a global financial centre for granted. In a highly competitive world we need to earn that status and we need to work to keep it.

    She will add:

    While it was right that successive governments made regulatory changes after the Global Financial Crisis, to ensure that regulation kept pace with the global economy of the time, it is important that we learn the lessons of the past.

    These changes have resulted in a system which sought to eliminate risk taking. That has gone too far and, in places, it has had unintended consequences which we must now address.

    She will conclude by saying:

    The changes I have set out today will drive growth and competitiveness through investment and through reform.

    A long-term strategy to harness the strengths of the financial services sector: making the UK a global leader in sustainable finance, developing the right approach to redress to reduce uncertainty, reinvigorating our capital markets by unlocking private investment through our pension funds, and reforming our approach to regulation to make it more dynamic and more competitive.

    Taken together, these measures represent the most pro-growth financial services package since the financial crisis.

    Reform to unlock innovation and growth

    While the UK’s regulatory model for financial services is respected around the world, reform is needed to unlock innovation, drive more investment and deliver sustainable economic growth.

    High regulatory standards will be maintained but parts of the regulatory system will be rebalanced to drive economic growth and competitiveness. The Chancellor has written to the Financial Conduct Authority, Prudential Regulation Committee, Financial Policy Committee and Payment Systems Regulator to ensure a greater focus on supporting economic growth.

    The Financial Ombudsman Service framework will also be modernised so that it continues to play a vital role for consumers to get redress while giving clearer expectations around its decisions for consumers and for financial services firms.

    The government will also consult on replacing the current Certification Regime, which applies to staff below senior management level, with a more proportionate approach that reduces costs so that businesses are freed up to focus on growth.

    To combat the scourge of fraud that cost UK consumers almost £8.3 billion last year alone and steals money away from investment and lending by the financial services sector, a coordinated effort across sectors, law enforcement and government is needed. The Chancellor, Home Secretary and Secretary of State for Science, Innovation and Technology have therefore written to the tech and telecommunication sectors calling for them to go further and faster in reducing the scale of fraud taking place on their platforms and networks – with an update on progress requested by March 2025 ahead of an expanded fraud strategy.

    Further action is being taken to drive innovation in payments with the publication of a National Payments Vision, and reinvigorate the UK’s capital markets by committing to legislate to establish PISCES by May 2025 – a world-first regulated market for trading private company shares where transfers will be exempted from stamp duty taxes on shares.

    The government is launching a pilot to deliver a Digital Gilt Instrument, using distributed ledger technology (DLT), demonstrating the government’s commitment to innovation in the financial services sector.

    The government is also consulting on introducing a new framework for UK-based captive insurance companies to make the UK insurance market a more attractive hub for businesses seeking efficient risk solutions.

    Stability – confidence to invest

    Building on the Budget – which fixed the foundations of the economy by repairing the public finances and bolstered economic and fiscal stability – the Chancellor will set out a clear path for growth in the financial services sector.

    The government will publish the first ever Financial Services Growth and Competitiveness Strategy in the Spring to deliver long-term certainty and cement the sector’s place at the heart of the government’s 10-year modern Industrial Strategy.

    The government will propose focusing on five priority growth opportunities in financial services to take advantage of the UK’s existing strengths and maximise the potential for growth.

    These will be FinTech, sustainable finance, asset management and wholesale services, insurance and reinsurance, and capital markets. A Call for Evidence will be published alongside the announcement to ensure that industry voices are at the heart of designing the new Strategy.

    The Strategy will reflect the fact that the success of the financial services sector is built on strong ties with international partners. This means strengthening partnerships with established and fast-growing financial centres will be a cornerstone of the government’s approach to financial services: critical to attracting foreign investment and delivering economic benefits for the UK.

    Investment through financial services

    To deliver more investment in businesses, infrastructure and clean energy, the Chancellor will also announce bold reforms to the pension system and lay the foundations for a world-leading sustainable finance regulatory regime.

    Two consultations will be published ahead of the Pension Schemes Bill in the Spring to merge defined contribution pension schemes and the Local Government Pension Scheme in England and Wales into megafunds – mirroring the pensions landscape in Australia and Canada. This, along with reforms to ensure better value from these pension schemes, could unlock around £80 billion new investment in businesses and infrastructure, while boosting savers’ pension pots.

    The Chancellor will announce that the British Growth Partnership has secured the support of two UK pension funds for its future launch. Aegon UK – as a substantial cornerstone investor – and NatWest Cushon, who have combined assets worth over £219 billion, have both agreed to work with the British Business Bank with a view to investing in the UK growth companies of the future, subject to commercial and regulatory steps and, where appropriate, agreement from the Trustees. She is also expected to announce that, alongside Phoenix Group, the British Business Bank has completed its LIFTS investment in Schroders Capital, to create a new £500 million investment vehicle to invest in UK science and technology. The government expects 20% of the LIFTS capital to be invested into life sciences.

    The Chancellor will also set out plans to mobilise trillions of pounds of private capital to support clean energy and growth as part of the UK’s efforts to reclaims its position as a global leader in climate change. This follows action at the International Investment Summit and Budget to unlock investment, including £27.8 billion of capitalisation for the National Wealth Fund, which is expected to mobilise over £70 billion of private investment.

    To deliver a world-leading sustainable finance framework, the Treasury will publish draft legislation to boost investor confidence in sustainable companies by regulating ESG ratings providers, publish a consultation on the value case for a UK Green Taxonomy, commit to consult on economically significant companies disclosing information using future UK Sustainability Reporting Standards and launch a set of integrity principles for voluntary carbon and nature markets ahead of a consultation in the new year.

    To underpin continued UK leadership on transition finance, the government is delivering one of the key recommendations of the Transition Finance Market Review by co-launching the Transition Finance Council with the City of London Corporation. The government will also consult in the first half of next year on how best to take forward the manifesto commitment on transition plans in support of its ambition to become the global hub for transition finance –  ensuring the UK’s regulatory framework is growth-focused, internationally competitive and maintains the UK’s status as a global financial hub. It has also emphasised the transition to net zero in the government’s economic strategy within the remit of the Bank of England’s Monetary Policy Committee, and reinstated sustainable finance as an area the Financial Policy Committee should support as part of its secondary objective.

    These announcements come alongside COP29’s ‘Finance, Investment, and Trade Day’ currently underway in Baku, Azerbaijan. Representing HM Treasury at COP29, Growth Minister Lord Spencer Livermore laid out the UK’s commitment to making the UK the sustainable finance capital of the world, mobilise climate finance from a range of sources and reform the global financial system so it delivers better on climate change.

    The government recognises the invaluable role of the mutual and co-operative sector in driving inclusive growth across the UK. It is therefore announcing a package to help unlock the full potential of the sector. This includes publishing a call for evidence on reform to credit union common bonds in Great Britain, writing to the Financial Conduct Authority and Prudential Regulation Authority asking them to produce a report on the mutuals landscape in 2025, and welcoming the establishment of an industry-led Mutual and Co-operative Business Council.

    The government has already laid legislation to support modernisations to the Building Societies Act 1986 and continued funding the Law Commission to conduct reviews considering how the laws governing co-operatives, community benefit societies, mutual insurers, and friendly societies can be modernised.

    The Chancellor will also announce an upcoming Financial Conduct Authority consultation to help households make better-informed decisions about their finances, as part of the government and regulator’s joint Advice Guidance Boundary Review.

    Stakeholder reaction to the Chancellor’s Mansion House package

    David Postings, Chief Executive of UK Finance said:

    The Chancellor has set out a positive vision for financial services, which are a UK success story and vital to our economy. I strongly welcome her support for the sector, coupled with the fact that she is addressing how we can best balance risk and consumer protection to help support economic growth. Key to this is the regulatory environment, with the new remit letters rightly stressing the importance of growth and competitiveness in regulators’ work. The Chancellor has listened to industry and is delivering across a range of areas we have called for action on, including a digital gilt, tackling payment fraud, reforming the Financial Ombudsman Service, supporting green finance, and the National Payments Vision. I look forward to continuing to work closely with her and the government to ensure the UK retains a strong and globally competitive financial services sector.

    BVCA Chief Executive Michael Moore said:

    The private capital industry warmly welcomes the decisive action taken by government to reform our pensions system to boost investment and deliver growth to the UK economy.

    Creating greater opportunity for investment by pension funds into private capital could have a transformational impact on the UK’s most promising businesses whilst delivering strong returns for pension savers.

    Richard Oldfield, Group CEO Schroders said:

    We have all the building blocks we need to generate growth in the UK. We have great, innovative companies; we have the capital, and we have the expertise and a world class capital market to link the two. What we need now is an injection of optimism and a healthier attitude to taking risk in the pursuit of reward. It is great to see the government putting sensible risk taking back at the centre of our economy. Whether that’s on green finance, infrastructure, science or tech; firms like Schroders working in partnership with pension schemes, regulators and the government can unlock the potential of the UK for the benefit of all of us.

    James Alexander, CEO, UKSIF said:

    We welcome the new Chancellor’s prioritisation of sustainable finance in her first Mansion House speech. We are pleased to see this ambitious suite of measures including further progress on transition plans, harmonisation with international standards, and carbon market integrity. If delivered, these measures could position the UK as a world-leading centre for sustainable finance.

  • PRESS RELEASE : Citizens’ Rights Specialised Committee meeting [November 2024]

    PRESS RELEASE : Citizens’ Rights Specialised Committee meeting [November 2024]

    The press release issued by the Foreign Office on 14 November 2024.

    The UK government and European Commission gave a joint statement following the 15th meeting of the Specialised Committee on Citizens’ Rights.

    Joint statement from the UK government and European Commission following the 15th meeting of the Specialised Committee on Citizens’ Rights on 14 November 2024:

    The 15th meeting of the Specialised Committee on Citizens’ Rights was held on 14 November 2024 in London, co-chaired by officials from the UK Government and the European Commission. Representatives from EU Member States were also in attendance.

    The UK and the EU discussed the implementation and application of the Citizens’ Rights part of the Withdrawal Agreement, under the overall objective of ensuring the full and faithful implementation of the Agreement. In this context, the meeting allowed both sides to take stock of outstanding issues, as well as progress made and to intensify work with a view to ensuring that all citizens who are beneficiaries of the Withdrawal Agreement can fully enjoy their rights.

    The UK discussed the difficulties faced by some UK nationals and their family members to acquire permanent residence rights in Member States, as well as various other issues in the implementation of the Withdrawal Agreement’s citizens’ rights provisions including family reunification rights in some Member States. The UK also asked about the possible impact of the EU’s planned Entry/Exit System (EES) on Withdrawal Agreement beneficiaries who do not hold residence documents which would exempt them from registration in EES.

    The EU asked for updates on the implementation of the UK High Court’s ruling on the upgrade to settled status and on the legal clarity for EU citizens as to whether their rights are guaranteed by the Withdrawal Agreement or by domestic law. The EU also discussed NHS charges for those who submit a residence application after the June 2021 deadline, appeal rights, and travel on a Certificate of Application. The UK’s plans to digitalise all residence documents and its impact on Withdrawal Agreement beneficiaries were also discussed.

    Both parties underlined the importance of administrative preparedness and proper communication. They called on Withdrawal Agreement beneficiaries concerned to take in good time all necessary measures to facilitate their future travel.

    The European Commission and the UK’s Independent Monitoring Authority, established under Article 159(1) of the Withdrawal Agreement, presented their respective Annual Reports for 2023, adopted in accordance with Article 159(2) of the Withdrawal Agreement.

    Representatives from civil society organisations, representing UK nationals living in the EU and EU citizens living in the UK, attended the meeting and asked questions about the implementation and application of Part Two (Citizens’ Rights) of the Withdrawal Agreement in the EU and the UK, in conformity with the rules of procedure of the Specialised Committee.

    The UK and the EU underlined their ongoing commitment to the full implementation of Part Two of the Withdrawal Agreement. The co-chairs agreed to meet again in spring 2025.

  • PRESS RELEASE : Simon Thompson appointed as new Chair of the Met Office Board [November 2024]

    PRESS RELEASE : Simon Thompson appointed as new Chair of the Met Office Board [November 2024]

    The press release issued by the Department for Science, Innovation and Technology on 14 November 2024.

    Simon Thompson has been selected as the new Chair of the Met Office Board and will start his appointment on 1 December 2024.

    Simon takes over the position from Rob Woodward CBE who has served two full terms as Chair, having taken up the position in 2018.

    As Chair, Simon will work with the Met Office Board and wider executive team in continuing to grow the weather and climate services and global leadership that the Met Office delivers. These services help Government, the public, industry and international partners achieve their goals, enabling people to stay safe and thrive.

    Speaking of his appointment, Simon Thompson commented:

    “I look forward to working with the Board and the Executive at this exciting time, as the Met Office seeks to realise the full social and economic benefits of the recent investment in a new supercomputer.”

    Simon has held a number of senior leadership positions in the finance, natural resources and energy sectors, including serving as chairman of 3i Group and Rio Tinto and as a director of Anglo American. Committed to public good science and sustainability, Simon currently serves as a director of the British Geological Survey and is a Defra-appointed member of the Peak District National Park Authority.

    He is also a Senior Advisor to Rothschild & Co. and a member of the Energy Transition Commission. Simon’s academic credentials include a MA in geology from Oxford University, a PhD in history from King’s College London and an Honorary Professorship at the University of Exeter, Faculty of Environment, Science and Economics.

    Met Office Chief Executive, Prof Penny Endersby CBE, said:

    “I’m delighted to welcome Simon on board with his wealth of experience at a very exciting time for the Met Office, I would like to acknowledge the outstanding job Rob Woodward has done steering us through the last six years.”

    Science Minister, Lord Vallance, said:

    “My congratulations to Simon Thompson on his appointment as Chair of the Met Office Board and I welcome the extensive leadership experience and commitment to applying scientific knowledge that he will bring to the role.

    “The Met Office plays an important part in our daily lives and our safety through its weather and climate forecasts, for which it is recognised and valued globally.

    “It is vital we have a leader in post who can make the most of the valuable insights its talented team can offer to benefit the UK and our planet.”

    Simon will officially take over the role on 1 December 2024 but will attend a Met Office board meeting on 29 November as an observer.

    The appointment of the Chair of the Met Office Board is made by the Secretary of State for Science, Innovation and Technology.

  • PRESS RELEASE : UK confirms help for developing countries to tackle climate change and build greener future [November 2024]

    PRESS RELEASE : UK confirms help for developing countries to tackle climate change and build greener future [November 2024]

    The press release issued by the Foreign Office on 14 November 2024.

    UK delivers more support for vulnerable developing countries at the forefront of the climate crisis.

    • greater support for countries at forefront of climate and nature emergency
    • UK announces new partnerships to help tackle illegal deforestation and support indigenous people
    • part of UK’s commitment restoring its leadership in tackling climate change

    The Foreign Secretary was at COP29 in Baku (12 November) to push for global action to tackle the climate crisis and preserve the natural world.

    While at COP29, the Foreign Secretary held bilats and brush-bys with senior figures and leaders from countries including Colombia, Kuwait and the Democratic Republic of Congo. He also co-hosted a side event with the Prime Minister of Barbados, Mia Mottley and led another on advancing forest tenure rights for Indigenous Peoples and local communities as guardians of forests and nature.

    At COP29, he committed to a new initiative supporting forest tenure rights for indigenous and local communities across the Amazon Basin, who play a vital role in protecting forest areas. £9.1 million has also been made available to local scientists working to protect the Congo Basin, home to the world’s largest tropical peatlands to help protect vital natural CO2 storage areas.

    The Foreign Secretary underscored the UK’s commitment to halting and reversing deforestation, to protect areas which play a key role in absorbing CO2 emissions. This includes announcing partnerships aimed at improving forest management and a new 10-year investment to reduce illegal logging. The programme will build on long-running UK initiatives to improve the governance of forests, support the trade of sustainable forest products and crackdown on illegal ones.

    Public finance alone is not going to finance the global transition, and the mobilisation of private capital plays an important role to tackling the challenge. This is why £100 million of funding will also be given for British International Investment’s (BII) new Mobilisation Facility, which will drive up to £500 million of private capital into investments that support other countries in their transition towards net zero.

    The Foreign Secretary also announced a guarantee of $280 million (around £220 million) to the new IFCAP initiative, which the UK is a founding partner of together with the Asian Development Bank and the other financing partners. The UK’s guarantee contribution will unlock $1.2 billion of additional climate finance, at no upfront cost to the UK.

    The Foreign Secretary said:

    The climate and nature crisis is the defining challenge of our times, which is why we are working with other countries to tackle the issue at its root. Britain is back as a leader on the climate crisis because this is how we motivate global action to deliver security and clean growth at home, as well as protect our planet for future generations.

    That is why we are doubling down on our support to protect and restore forests, and the communities that depend upon them, around the world. We are also boosting funding to help countries most vulnerable to the impacts of climate change.

    The last government’s commitment to £11.6 billion of climate finance from 2021/2022 to 2025/2026 will continue to be honoured. This includes at least £3 billion on nature, from which £1.5 billion will be dedicated to protecting and restoring forests.

    Between April 2011 to March 2024 UK International Climate Finance has directly supported over 110 million people adapt to the effects of climate change, and help avoid over 105 million tonnes of greenhouse gas emissions.

    The announcements build on our ambitious pledge to build a Global Clean Power Alliance. This will see Britain working with partners around the world to accelerate country transitions to affordable and clean energy and help secure a liveable plant for future generations.

    Background

    • the Foreign Secretary confirmed the UK will meet its commitment to the current Indigenous Peoples and Local Communities Forest Tenure Pledge (IPLC). This is £163 million between 2021 to 2025
    • the UK is giving a further £10 million to the Global Environment Facility’s Special Climate Change Fund to provide adaptation finance to Small Island Developing States
    • the UK will provide £5.3 million to the Pacific Catastrophe Risk Insurance (PCRIC) to make sure more Pacific countries have the insurance they need in place before catastrophic weather events
  • PRESS RELEASE : 62nd Round of the Geneva International Discussions – UK statement to the OSCE [November 2024]

    PRESS RELEASE : 62nd Round of the Geneva International Discussions – UK statement to the OSCE [November 2024]

    The press release issued by the Foreign Office on 14 November 2024.

    Deputy Ambassador Brown thanks the Co-Chairs of the Geneva International Discussions for their work in the 62nd round of discussions held on 5-6 November.

    The United Kingdom continues to strongly support the Geneva International Discussions (GID). We thank the Co-Chairs for their work in the 62nd round of discussions held on 5-6 November, and welcome Magdalena Grono in co-chairing discussions for the first time as EU Special Representative for the South Caucasus and the Crisis in Georgia. As the only international forum that brings together all sides from the conflict, the GID plays a vital role in trying to achieve a lasting resolution and address the consequences of the conflict.

    The United Kingdom welcomes the continued discussion on core issues, in particular the implementation of the 2008 six-point agreement. We encourage further efforts to make tangible progress, and once again call on the Russian Federation to immediately fulfil its obligation under the ceasefire agreement to withdraw its forces to pre-conflict positions and cease all borderisation tactics.

    The United Kingdom also welcomes the constructive discussions on humanitarian issues, including freedom of movement, documentation, livelihoods, education and missing persons. We regret that important issues including of internally displaced persons and refugees were once again not discussed due to a walkout by Abkhaz, South Ossetian and Russian participants. It is vitally important that there is movement on these key issues through the GID, and walkouts undermine this process.

    We underline our continued support for the Incident Prevention and Response Mechanisms (IPRM), and urge the resumption of the Gali IPRM without further delay or pre-conditions.

    The United Kingdom reaffirms its full support for Georgia’s sovereignty and territorial integrity within its internationally recognised borders. We continue to call for immediate and unimpeded access to Georgia’s breakaway regions for international and regional human rights mechanisms to fully implement their mandates.

    We welcome the continuation of dialogue on challenging issues through the GID platform, and look forward to the next round of discussions in March 2025.

    Thank you, Madam Chair.

  • PRESS RELEASE : New coal mining licences will be banned [November 2024]

    PRESS RELEASE : New coal mining licences will be banned [November 2024]

    The press release issued by the Department for Energy Security and Net Zero on 14 November 2024.

    Legislation will be introduced to restrict licences for new coal mines as UK embraces clean energy future.

    • The UK is to become one of the first countries in the world to ban new coal mines.
    • government will bring in legislation to restrict licences for new coal mines in the UK
    • further evidence of the UK’s global climate leadership to tackle biggest global polluter

    Licensing of new coal mines is set to be restricted as the government commits to bringing in legislation which will prohibit new coal mining projects.

    The government today (14 November) confirmed it will introduce new legislation as soon as possible to restrict the future licensing of new coal mines.

    Coal power remains the largest source of energy-related CO2 emissions globally. Phasing it out is a crucial step to tackling climate change and limiting global temperature rises to 1.5C, while providing important health benefits through improved air quality.

    Britain became the first major economy to stop burning coal for power in October, with the closure of the country’s last coal-fired power station at Ratcliffe on Soar, following 50 years of service. It means coal has gone from generating around 40% of the UK’s electricity supply in 2012 to 0%.

    The Energy Minister has paid tribute to the coal miners who “powered our country”- saying that they leave a legacy that this country can be proud of.

    As the coal age ends, the clean energy age is ramping up, with the government committing to unprecedented investment in homegrown clean energy in the UK including carbon capture and hydrogen.

    As part of the government’s clean energy superpower mission, this continued transition away from fossil fuels will create hundreds of thousands of good new jobs across the UK and revitalise the country’s industrial heartlands.

    It comes after the independent National Energy System Operator (NESO) confirmed last week that achieving clean power by 2030 is achievable and can unlock cheaper, more secure electricity.

    Energy Minister Michael Shanks said:

    Coal mining powered this country for over 140 years and we owe a huge debt to workers who kept the lights on for homes and businesses across the country.

    Now the UK is in prime position to lead the way in phasing out coal power around the world, which remains the single largest contributor to global emissions.

    By consigning coal power to the past, we can pave the way for a clean, secure energy system that will protect billpayers and create a new generation of skilled workers.

    The UK has led the way in meeting global climate change targets to phase out coal-fired power. The government’s plan to prevent future coal mining is another step in its mission to make Britain a clean energy superpower, by transitioning away from fossil fuels to cleaner, homegrown energy sources.

    Since July, the government has accelerated Britain’s transition, by reversing the onshore wind ban in England, approving 2GW of new solar projects to power hundreds of thousands of homes, announcing the biggest ever investment in offshore wind, and launching Great British Energy that will own and invest in clean power projects across the UK.

    To support workers, the government has also set up the Office for Clean Energy Jobs to help the next generation of skilled workers to access UK-wide job opportunities that the government’s clean energy superpower mission will help create.

    Unions worked closely with Ratcliffe on Soar’s owner, Uniper, on a strong redundancy package including identifying opportunities for the plant’s staff such as internal transfers, roles with external companies and training courses.

    On top of this, the government recently confirmed £21.7 billion funding for carbon capture projects in the North West and North East of England, which is set to support up to 50,000 jobs, as well as £2.3 billion for the first round of electrolytic hydrogen production contracts.

    At the COP29 Summit this week in Baku, Azerbaijan, the Prime Minister announced the Clean Industry Bonus that will offer £27 million per Gigawatt to offshore wind developers who invest in the UK’s historic industrial heartlands, coastal areas and oil and gas communities.

    It follows confirmation that 120,000 former mineworkers will receive a 32% boost to their pensions, as £1.5 billion of money that was kept from their pensions is handed over to their schemes, ensuring those who powered the country for decades finally get the just rewards from their labour.

    Notes to editors

    Limited exceptions to the ban may be required for safety or restoration purposes. An exemption is also anticipated to protect the historic rights of freeminers to mine personal gales in the Forest of Dean.

    The government has laid a Written Ministerial Statement confirming that it will introduce legislation to restrict the future licensing of new coal mines, by amending the Coal Industry Act 1994, when Parliamentary time allows.