Tag: 2024

PRESS RELEASE : Keir Starmer meeting with President Lula da Silva of Brazil [September 2024]

The press release issued by 10 Downing Street on 26 September 2024.

The Prime Minister met President Luiz Inácio Lula da Silva at UNGA this afternoon.

They discussed their shared commitment to tackling global challenges, including the importance of global ambition on climate change and poverty.

The Prime Minister congratulated President Lula on his leadership on tackling both these challenges as President of the G20 and looked forward to the Summit in Rio.

The leaders shared their plans to accelerate the energy transition at home and internationally, and agreed to work closely on this agenda including for COP30.

The Prime Minister also confirmed strong support for President Lula’s G20 Global Alliance against Hunger and Poverty.

They also discussed the conflicts in Ukraine, Gaza, and Lebanon. The Prime Minister set out his steadfast support for Ukraine and upholding the UN Charter. On the Middle East, the Leaders underlined the importance of ceasefires in both Lebanon and in Gaza.

October 21, 2024
PRESS RELEASE : Secretary of State visits farm amidst bluetongue outbreaks [September 2024]

The press release issued by the Department for Environment, Food and Rural Affairs on 26 September 2024.

Secretary of State Steve Reed visited an Essex farm this week to hear from NFU representatives and a farmer who recently had animals tested for bluetongue serotype 3 (BTV-3).

The Secretary of State, accompanied by Animal Plant Health Agency staff, including APHA’s Veterinary Head of Outbreaks for England Sascha Van Helvoort, heard about the impact this disease has been having on the industry and the importance of reporting livestock suspected of having the disease.

Bluetongue virus is primarily transmitted by midge bites and affects cattle, goats, sheep, deer and camelids, with case numbers now increasing dramatically in northern Europe. Symptoms include fever, lethargy, ulcers or sores in the mouth or nose, and reduced milk yield.

Disease control zones were put in place to control the movement of potentially affected animals as soon as bluetongue serotype 3 (BTV-3) was detected. These zones have been under constant review and adjustment as the disease situation has developed, such as when evidence of local transmission of disease emerged. A single Restricted Zone is now in place covering the east of England from Lincolnshire to West Sussex.

Secretary of State for Environment, Food and Rural Affairs, Steve Reed, said:

I have heard first-hand the experiences of farmers battling this disease and we are working hard to prevent its spread into other areas of England and Great Britain.

We understand restrictions can have an impact but stress the importance of everyone adhering to these. We are committed to working with everyone affected and urge people to report livestock they suspect have the disease.

Sascha Van Helvoort, APHA Veterinary Head of Field Delivery and Veterinary Head of Outbreaks for England, said:

The increasing number of bluetongue virus (BTV-3) cases demonstrate the importance of vigilance from all livestock keepers and farmers.

We have field teams, vets and scientists across the country who are working hard to help tackle bluetongue virus and ensure farmers are being supported.

If you have any suspicions of disease, you must report this to the Animal Plant Health Agency immediately so we can provide assistance.

Defra has permitted use of the currently available unauthorised BTV-3 vaccines, subject to licence. We recommend animal keepers work with their veterinarians to decide if vaccination is right for their animals. To prioritise initial supplies, a general licence allows those in high-risk counties of England to use the vaccine. Specific licences can be applied for through APHA by animal keepers elsewhere in England who wish to use the vaccine

BTV is a notifiable disease. Suspicion of BTV in animals in England must be reported to the Animal and Plant Health Agency on 03000 200 301, 03003 038 268 in Wales or your local Field Services Office in Scotland.

October 21, 2024
PRESS RELEASE : First ever UK-hosted meeting of AUKUS Defence Ministers as UK-Australia set to commence defence treaty negotiations [September 2024]
The press release issued by the Ministry of Defence on 26 September 2024.

A landmark AUKUS meeting will be held in the UK today as the Defence Secretary John Healey hosts counterparts from the US and Australia in London.
- Landmark meeting as Defence Ministers from AUKUS partners meet outside the US for first time.
- Negotiations set to commence on UK-Australia treaty to define defence relationship for decades.
- Billions of pounds of UK exports expected to support Australian submarine build, with AUKUS to support over 21,000 UK jobs and helping to grow the economy.
The meeting will be the first trilateral Defence Ministers AUKUS meeting to be held outside of the United States. Healey will host US Secretary of Defense Lloyd James Austin III and Australian Deputy Prime Minister and Minister for Defence Richard Marles to discuss the importance of the AUKUS partnership.

It comes as the UK and Australia have agreed plans to commence negotiations on a bilateral AUKUS treaty between the UK and Australia. The treaty will establish the strategic and operational framework for bilateral cooperation under AUKUS with a focus on the core elements of the delivery of SSN-AUKUS.

Given the importance of accelerating the design, build and delivery of SSN-AUKUS, Australia and the UK agreed these negotiations should occur at pace and with high priority.

This first-of-its-kind treaty between the two countries could create a major UK trade boost – it is estimated that facilitating the SSN-AUKUS build in Australia will see billions of pounds of submarine components exported from the UK through our defence industry supply chains. The treaty will lay out the nations’ relationship on submarine co-operation, as work progresses on future conventionally-armed, nuclear-powered attack submarines for the UK and Australia.

The three-year anniversary of the landmark AUKUS partnership was marked this month, following shortly after a historic breakthrough in defence trade was reached between the UK, US, and Australia.

The significant reduction in red tape will cover up to £500 million of UK defence exports each year, and billions of dollars of trade across all three nations, helping boost UK economic growth.

In a further boost for the UK economy, it is estimated at its peak the future AUKUS attack submarine programme will have more than 21,000 people working on it at UK sites, with the work generating an additional 7,000 skilled roles.

UK Defence Secretary, John Healey said:

I’m proud to be the first UK Defence Secretary to host a meeting of AUKUS Defence Ministers in Britain.

As AUKUS partners, we stand shoulder-to-shoulder in an increasingly unstable world. This is a partnership that will boost jobs, growth and prosperity across our three nations, as well as strengthening our collective security.

I’m delighted that we will soon be commencing negotiations on a bilateral AUKUS treaty with Australia, which will help create a more secure and stable Indo-Pacific for decades to come.

The treaty work comes off the back of a UK-Australia Defence and Security Cooperation Agreement being signed earlier this year, helping make it easier for our Armed Forces to operate together in each other’s countries and facilitate UK submarine crews visiting Australia as part of the AUKUS partnership.

Since the AUKUS launch, nearly £10 billion of investment has been allocated towards UK nuclear work and infrastructure:
- £4 billion to progress SSN-AUKUS UK submarines through design, prototyping and initial purchases.
- £3 billion for new advanced manufacturing capabilities in Barrow-in-Furness and Derby.
- £2.4 billion over ten years from Australia to boost Rolls-Royce infrastructure and to share costs on SSN-AUKUS submarine design.
Through AUKUS Pillar 2, Australia, the UK and the US are pooling the talents of their defence sectors to develop at pace the delivery of advanced capabilities. Four UK companies have been selected by the UK’s Defence and Security Accelerator (DASA) to receive a share of £2 million of funding to develop solutions in electromagnetic targeting and protection.

The competition was run to find low cost, disposable, high volume and highly autonomous electromagnetic technology that can detect enemy actions or protect against them.
October 21, 2024
PRESS RELEASE : The UK is working with partners around the world to prevent global health threats like AMR – UK statement at the UN General Assembly [September 2024]

The press release issued by the Foreign Office on 26 September 2024.

Statement by the Foreign Secretary, David Lammy, at the UN General Assembly High-Level Meeting on antimicrobial resistance.

The world faces tremendous challenges, so many of which are connected. Connected challenges require of course connected solutions.

And the new UK government is determined to renew relationships with allies, especially in the Global South, and to modernise our approach to development, rooted in a spirit of genuine partnership.

We cannot hope to achieve any of our development goals without being able to prevent global health threats like AMR which, unless we act, will take almost 40 million lives by 2050.

That is what we learnt from COVID, and we’re determined to play our role in addressing the lessons of the last pandemic.

Central to that will be tackling the injustice of inequitable access.

New UK-funded data shows that 92 million lives – mainly of course in Global South countries – will be lost by 2050 due to a lack of access to both health care and to antibiotics.

This is intolerable and it must not continue.

This ambitious Political Declaration shows that we can achieve so much when we work together for the common good.

To those who say that the world is too divided to agree on anything meaningful – we have shown how wrong they are.

But this is only the beginning. We must now swiftly translate today’s commitments to strong collective action on the ground in the service of our fellow citizens

The UK is working with partners around the world, including through our existing Fleming Fund network in low- and middle-income countries.

And we are now working to improve access to antimicrobial drugs in Africa, to strengthen AMR capabilities in the Caribbean, and to support a new independent science panel that has the strongest possible buy-in from the countries of the Global South and which I hope will be located in the Global South.

So let us get to work. Let us, together, ensure that future generations, no matter where they are born, look back at this moment as the time we collectively resolved to secure this incredible life-saving gift for all humanity.

October 21, 2024
PRESS RELEASE : New support for semiconductor firms to grow, powering growth in £10 billion UK industry [September 2024]
The press release issued by the Department for Science, Innovation and Technology on 26 September 2024.

Support for semiconductor scale-ups announced as Lord Vallance kicks off a stakeholder forum ahead of the G7 Semiconductors Points of Contact group in Cambridge.
- Science Minister Lord Vallance unveils new support for UK semiconductor scale-ups to advance innovations, from phone screens to medical tech
- Support to help businesses grow unveiled as Minister welcomes leading tech nations to a stakeholder forum preceding the G7 Semiconductors Points of Contact group in Cambridge
- Comes as new report finds rapidly growing UK semiconductor industry valued at nearly £10 billion and expected to rise this decade
UK semiconductor firms producing vital technology from phone screens to surgical lasers are being backed in their efforts to scale up into large businesses and drive economic growth.

The science Minister Lord Patrick Vallance has announced the 16 projects that will win a share of a £11.5 million pot – provided by Innovate UK – that will help drive innovation, as he opened an industry conference of G7 nations today (Thursday 26 September).

Pioneering projects across the country will help take the UK’s thriving semiconductor industry to the next level as it further enhances everyday life – from more efficient medical devices to energy saving phone screens – and kickstart economic growth.

This comes shortly before the Government’s International Investment Summit which will showcase the UK as a place to do business. Today’s move is yet another reason for business to choose the UK as a place to invest – as it is backing the industries of the future.

A new report by Perspective Economics reveals the UK semiconductor sector, which includes over 200 companies in research, design, and manufacturing, is valued at almost £10 billion and could grow up to £17 billion by 2030.

Semiconductors are small chips at the core of everyday technology from smartphones to renewable energy systems and this support will help to scale up domestic manufacturing and strengthen supply chain resilience, so the UK is fit for the future in a global industry.

The funding comes as the G7 Semiconductors Point of Contact group kicks off with a stakeholder forum at major UK tech company Arm’s HQ in Cambridge, where member states, research organisations, and industry representatives are discussing key issues affecting the global semiconductor industry, like supporting early-stage innovation and sustainability.

Science Minister, Lord Vallance, said:

Semiconductors are an unseen but vital component in so many of the technologies we rely on in our lives and backing UK innovators offers a real opportunity to growth these firms into industry leaders, strengthening our £10 billion sector and ensuring it drives economic growth.

Our support in these projects will promote critical breakthroughs such as more efficient medical devices that could significantly lower costs and faster manufacturing processes to improve productivity.

Hosting the G7 semiconductors Points of Contact group is also a chance to showcase the UK’s competitive and growing sector and make clear our commitment to keeping the UK at the forefront of advancing technology.

Among the funded projects, receiving a share of £11.5 million, is Vector Photonics Limited in collaboration with the University of Glasgow, which aims to enhance the power and cost-effectiveness of blue light lasers in everyday technology by using gallium nitride, a high-performance material. Blue lasers are key in devices like medical equipment, quantum displays and car headlights.

Another project, led by Quantum Advanced Solutions Ltd with the University of Cambridge, is developing advanced shortwave infrared (SWIR) sensors which improve vision in critical sectors like defence, by supporting surveillance in challenging conditions in low-visibility environments, such as during adverse weather conditions or atmospheric disturbances. The project looks to simplify production using innovative quantum dot materials – tiny semiconductor particles that emit light at specific wavelengths – offering higher sensitivity and performance, cutting costs and making this advanced technology more accessible to multiple sectors including manufacturing and healthcare.

Andrew Tyrer, Deputy Director, Electronics, Sensors and Photonics, Innovate UK, said:

Innovate UK’s investment in this programme directly supports the National Semiconductor Strategy launched in 2023 and aims to ensure the UK’s place in the global landscape.

Iain Mauchline Innovation Lead – Electronics, Sensors, and Photonics at Innovate UK, added:

It has been recognised that semiconductors are key enablers for the UK ambitions across all critical technology areas. Funding these diverse projects highlights the strengths and depth of the UK’s semiconductor ecosystem.

The G7 Semiconductors Point of Contact Group, established under Italy’s G7 Presidency earlier this year, continues its mission to address issues impacting the semiconductor industry, including early-stage innovation, crisis coordination, sustainability, and the impact of government policies and practices.

Rene Haas, CEO, Arm said:

It is an honour to host the stakeholder forum ahead of the G7 Semiconductors Points of Contact group at Arm’s global headquarters in Cambridge to advance collective efforts from industry, research organizations, and governments to increase supply chain resilience, security, and energy efficiency. We look forward to continued partnership with the G7 representatives and the UK government as we work to enable innovation and realize the full potential of AI.

This meeting immediately follows the OECD Semiconductor Informal Exchange Network gathering, where countries and stakeholders shared strategies for strengthening global semiconductor supply chains and addressing shared challenges in the semiconductor industry.

The UK is playing a key role in the OECD’s efforts to unite government and industry in navigating the complexities of the global chip supply chain.

Charles Sturman, CEO of TechWorks said:

This report represents the first detailed economic study of the UK Semiconductor sector in many years. I am proud to have been part of this important work and pleased with the results. Key findings here show that the UK already sees significant revenue from the sector and, by building on strong innovation, we can see significant opportunity to increase this together with our ~2% share of global semiconductor revenues; ultimately creating much more than the 86,000 jobs currently in the wider economy. The industry is set to grow rapidly in the next decade and the right mix of scale-up support and industrial policy can secure future growth of the UK semiconductor sector.
October 21, 2024
PRESS RELEASE : UK constrains Russia’s future Liquified Natural Gas plans [September 2024]
The press release issued by the Foreign Office on 26 September 2024.
- the UK has sanctioned 5 ships and 2 entities involved in the Russian Liquified Natural Gas (LNG) sector
- this is the first time the UK is using its new ship specification power to target LNG vessels directly
- today’s action builds on efforts alongside allies to bear down on Russia’s attempts to bolster its future energy revenues – the most critical source of funding for Putin’s war in Ukraine
The UK has today, 26 September, taken decisive action to sanction 5 vessels and 2 associated entities involved in the shipping of Russian LNG, including from Russia’s flagship Arctic LNG 2 project.

LNG is an important source of funding for Putin’s illegal war in Ukraine. Russia has plans to expand its LNG revenues, aiming to grow their global LNG market share from 8% to 20%.

Earlier this year, the UK sanctioned Arctic LNG 2, alongside our allies in the US and EU. Since then, the project has been forced to slash production. Today’s action builds on this by targeting ships and entities involved in the Russian LNG sector, which engage with projects important to Russia’s future energy production.

The UK has now sanctioned 15 vessels and entities involved in the Russian LNG sector and we will continue to bear down on this important source of funding for Putin’s illegal war in Ukraine.

The vessels sanctioned today are:
- PIONEER (IMO 9256602)
- ASYA ENERGY (IMO 9216298)
- NOVA ENERGY (IMO 9324277)
- NORTH SKY (IMO 9953523)
- SCF LA PEROUSE (IMO 9849887)
We are also sanctioning the following entities associated with the vessels:
- OCEAN SPEEDSTAR SOLUTIONS OPC – The operator and manager of PIONEER and ASYA ENERGY.
- WHITE FOX SHIP MANAGEMENT – The operator and manager of NORTH SKY
October 21, 2024
PRESS RELEASE : Zombie-style knives banned [September 2024]

The press release issued by the Home Office on 25 September 2024.

Zombie-style knives and machetes have this week (24 September) been added to the list of prohibited weapons in the Criminal Justice Act 1988 as the government cracks down on dangerous weapons with no legitimate purpose.

‘Zombie-style’ is the street name given to weapons which are over 8 inches in length and often have a serrated edge, spikes or more than 2 sharp points. A full list of the features of these knives can be found in the guidance for surrender of ‘zombie-style’ knives and ‘zombie-style’ machetes.

NPCC lead for knife crime, Commander Stephen Clayman said:

Tackling knife crime requires all agencies and partners working together, approaching this from a number of different perspectives. Dealing with the accessibility of deadly and intimidating weapons is key and we are doing all we can to reduce how easily they can end up in the wrong hands. Many of these ‘zombie-style’ knives and machetes are clearly designed to intimidate and cause harm, rather than serve any practical purpose, so the ban will support us by significantly stopping their manufacture and overall availability.

Our fight to remove knife crime from our communities has been further strengthened with the government’s recent announcements and I look forward to leading an end-to-end review of online knife sales. This is just part of the ongoing work and we will continue to work in close partnership with the Home Office, retailers and the third sector to find ways we can bring meaningful, long-term change that will make our streets safer for everyone.

This is just one of a package of measures being introduced by the government to halve knife crime in a decade. Earlier this month, the government announced that legislation is underway to ban ninja swords and it has also commissioned the largest ever review into how knives are sold online to identify any gaps in legislation which will prevent these being sold illegally to under-18s.

The Coalition to Tackle Knife Crime has also been launched, bringing together campaign groups, families of people who have tragically lost their lives to knife crime, young people who have been impacted and community leaders, united in their mission to save lives and make Britain a safer place for the next generation.

From 24 September, anyone caught with a zombie-style knife or machete could face time behind bars.

The ban on zombie-style knives comes at the end of a Home Office run surrender scheme which allowed members of the public to hand in these types of weapons, and those who wished to do so were eligible for compensation. This scheme ended on 23 September and anyone still in possession of these weapons should safely hand them into their local police station or local surrender bin immediately.

October 21, 2024
PRESS RELEASE : Scottish Secretary reacts to GDP for July 2024 [September 2024]
The press release issued by the Scottish Office on 25 September 2024.

Ian Murray says difficult short-term decisions must be made for long-term gain.

The latest Scottish GDP stats are published here this morning for the month of July.

Scottish Secretary Ian Murray says that although the 0.3% growth for the month is encouraging, tough short-term decisions are still required for long-term improvement.

He said:

Economic growth is one of the key missions of the UK Government and Scotland is at the heart of that, as the Prime Minister underlined yesterday when he confirmed that GB Energy will be headquartered in Aberdeen. Backed by £8.3bn of UK Government investment, it will bring jobs and opportunity for all parts of the UK.

We inherited a dire fiscal situation from the previous government, as well as an industrial one, and that requires tough decisions that are hard in the short term, but the right thing for the country in the long term.

Right now, we are making work pay, ensuring the national minimum wage is a true living wage, and we’re ending exploitative zero-hours contracts so workers have increased job security. At next month’s International Investment Summit, we will forge stronger links with our global business partners, all to achieve the growth that’s vital for economic stability.

Background
- Scotland’s onshore GDP is estimated to have grown by 0.3% in July. This follows 0.0% change in June (revised up from -0.3%).
- In the three months to July GDP is estimated to have grown by 0.3%. This is a decrease compared to the Quarter 2 (April to June) growth rate of 0.6%.
October 21, 2024
PRESS RELEASE : The Kremlin could never have envisaged how war in Ukraine is developing – UK statement to the OSCE [September 2024]

The press release issued by the Foreign Office on 25 September 2024.

UK military advisor, Nicholas Aucott, says the military situation is markedly different to what many expected two and a half years ago and this is a testament to the bravery and fortitude of the Ukrainian people.

Thank you, Mr Chair. The present situation in the ongoing conflict between Russia and Ukraine is one that the Kremlin could hardly have envisaged when it embarked on its devastating war of aggression.

Russia boasted that Ukraine would be defeated in a three-day lightning war, yet today marks two years and 219 days of this conflict. Ukraine now controls Russian territory in the Kursk Oblast. This is the first time that Russian territory has been held since the Second World War. We should be clear: this is a direct consequence of Russia’s illegal invasion and entirely consistent with Ukraine’s right to self-defence. To try and tackle this situation of its own making, Russia has been launching 50% of its glide bombs at its own territory, and on the neighbouring Sumy region of Ukraine.

Since we met last week, on the evening of 17-18 September Ukraine conducted a successful attack on the Toropets strategic ammunition depot. Renovated in 2018, this was one of Russia’s largest strategic ammunition depots supporting Russia’s operation in Ukraine and housing ammunition of varying calibres, including ammunition procured from the DPRK.

The resulting explosion recorded 2.7 on the Richter scale, equivalent to a mild earthquake. It forced Russia to declare a state of emergency, with the resulting fires 6 km wide and detectable from space. This was followed on 21 September by additional successful strikes on depots again in Toropets, and in Tikhoretsk. These Ukrainian strikes mark significant strategic setbacks for the Kremlin. The level of losses accounts for months of Russian ammunition expenditure rates.

Moreover, Russia continues its attacks on Ukrainian civilian and energy infrastructure in an attempt to try and break the will of the Ukrainian people. Strikes in Ukraine’s central region of Poltava cut power to 20 settlements, whilst in Zaporizhzhia Oblast, an attack on Monday killed at least one person and injured seven, amongst them a 13 year old girl and a 15 year old boy.

The military situation is markedly different to what many expected two and a half years ago and this is a testament to the bravery and fortitude of the Ukrainian people. But it is also critical that Ukraine continues to receive the support of allies and partners, diplomatically and militarily. The Kremlin would like to portray such support as a western conspiracy. But the reality is that the Russian state isolated itself from the moment it instigated an unprovoked, premeditated and barbaric attack against a sovereign democratic state. Furthermore, Russia has contravened international law and misled this Forum completely.

The United Kingdom’s support to Ukraine is ironclad. To date the UK’s total military, economic and humanitarian support for Ukraine amounts to £12.8 billion, which includes £7.8 billion in military support. £3 billion in military aid has been pledged to Ukraine in 2024-25, a £700 million increase on 2023-24.

The gap between Russia’s expectation of a three-day operation and the 943-day reality continues to grow. The Russian state has a clear path to prevent this metric from diverging further. It must cease hostilities and withdraw from Ukraine’s internationally recognised borders. The United Kingdom, alongside its partners, will continue in its enduring support for Ukraine’s independence, sovereignty and territorial integrity. Thank you.

October 20, 2024
PRESS RELEASE : Crack down on late payments in major support package for small businesses [September 2024]
The press release issued by the Department for Business and Trade on 25 September 2024.

New package of measures aimed at tackling scourge of late payments.
- New Fair Payment Code and fresh rules on company reporting and major consultation unveiled as part of package to tackle late payments
- Scourge of late payments costs SMEs £22,000 a year with 56 million hours of lost productivity, according to Intuit Quickbooks, across the economy – acting as a major brake on growth
- Comes as Business Secretary set to visit food and drink businesses in Manchester struggling with late payments
The government has unveiled new measures today to support small businesses and the self-employed by tackling the scourge of late payments, which according to the Smart Data Foundry is costing SMEs £22,000 a year on average and according to FSB research, leads to 50,000 business closures a year.

The government will consult on tough new laws which will hold larger firms to account and get cash flowing back into businesses – helping deliver our mission to grow the economy.

In addition, new legislation being brought in the coming weeks will require all large businesses to include payment reporting in their annual reports – putting the onus on them to provide clarity in their annual reports about how they treat small firms. This will mean company boards and international investors will be able to see how firms are operating.

Enforcement will also be stepped up on the existing late payment performance reporting regulations which require large companies to report their payment performance twice yearly on GOV.UK.

Under current laws, responsible directors at non-compliant companies who don’t report their payment practices could face criminal prosecutions including potentially unlimited fines and criminal records.

The consultation which will be launched in the coming months, will also consider a range of further policy measures that could help address poor payment practices.

FSB research shows that every quarter in 2022, 52% of SMEs small firms in the UK suffer from late payments, meaning roughly 2.8 million small firms face this issue, with the Federation of Small Businesses describing it as one of the biggest problems facing SMEs.

Late payments are just one element of the problem, with some SMEs forced to wait months for contracts to be fulfilled and some are even forced to take out loans against their own homes to manage cash flow.

Cracking down on late payments will unlock growth for 5.5 million small firms by enabling them to invest their time hiring more employees, boosting wages, and exporting around the world, rather than chasing down late payments.

The Business Secretary will hold a joint call with the Federation of Small Businesses later today to outline to SME leaders the work the Department will undertake to put in place tough new laws to end bad payment culture. New proposals, subject to consultation, will be bought forward on audit and audit committees, in order to help rebuild small businesses’ trust that they will be paid on time and to deliver on Labour’s manifesto commitment to tackle late payments.

Prime Minister Keir Starmer said:

We’re determined to back small businesses by unlocking their barriers to growth, and stamping out late payments is at the heart of this.

We know how important it is for business owners to have the peace of mind and certainty around their cashflow to keep their businesses alive. Late payments cost businesses tens of thousands of pounds and is one of the biggest reasons businesses collapse.

After years of delay, we’re bringing forward measures that small businesses have long been calling for to tackle late payments once and for all.

Business Secretary Jonathan Reynolds said:

Late payments are simply unacceptable and this government is determined to level the playing field for small business. When the cashflow runs dry, small firms go under which is why we need to hold larger business to account with their payment practices and foster an environment that supports growth and jobs.

Slashing trade barriers, reforming business rates, getting more SMEs exporting – this government is committed to small firms. We know there’s a lot more to be done, but today we are calling time on late payers once and for all.

A new Fair Payment Code has also been announced today replacing the old Prompt Payment Code, and will be open to signatories this autumn. Businesses will need to prove they have met good payment standards before being awarded official code status.

This will be designed to push businesses to pay faster more often, to be awarded either gold, silver or bronze status. The Code will also shine a light on those responsible businesses doing the right thing by their suppliers and small firms.

It comes as part of our wider work to support SMEs to help go for growth with reform to business rates, getting more small firms exporting and our new industrial strategy. The Secretary of State and Small Business Minister Gareth Thomas will discuss the new measures with small businesses later today.

Small Business Minister Gareth Thomas said:

Small businesses deserve to be paid on time, it’s as simple as that. I’m optimistic that today’s first big step will help pave the way for real change that supports SMEs to thrive and help to grow our economy.

New research published by the Department for Business and Trade has found payment problems multiply the further down the supply chain you go. With delays to payments increasing with each business along a supply chain, this results in smaller businesses generally experiencing more issues with late invoices than larger firms.

These new findings underpin the need to move quickly to crack down on late payments. The research also found that there was a clear imbalance between big and small firms, and that administrative errors are a major factor in creating slow payments with 24% of firms saying that invoices being incorrectly handled added to delays.

The government will work closely with small and large businesses as well as groups such as FSB and Enterprise Nation to discuss what further measures can be considered to crack down on late payments while ensuring we strike the right balance and avoid excessive burdens on businesses.

Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said:

This is what real change looks like. Listening to small firms and prioritising action to tear down each and every barrier to growth.

The Business Secretary has clearly recognised the importance of eradicating bad payment culture, which so devastates the UK supplier base and holds back growth. This series of actions today – including the crucial steps being taken to deliver on Jonathan Reynolds’ commitment on audit committees – shows the Government is rightly focused on delivery and working in partnership with the business community.

There will be so many decisions the Government needs to get right, early – an actively pro-small business budget, a good industrial strategy and tackling late payment. Announcing this programme of work today is a huge confidence boost for the small business community and a clear signal the new Government intends to stand up for small firms.

The Small Business Commissioner, Liz Barclay, said:

I am delighted to announce a new Fair Payment Code will be launched this autumn. The new code will reward businesses that treat their suppliers fairly and pay them quickly. It will also include an ambitious new Gold Award which aims to make 30-day payments the new standard for which businesses can aim.

We need sustainable, resilient businesses at all levels of the supply chains, to achieve the growth the economy needs. That means paying everyone from the largest supplier to the sole trader quicker, so they have the confidence to invest, improve productivity and grow. Fair payment terms and on time payments are the key.

Steve Hare, CEO of Sage, said:

Late payments continue to challenge small and medium-sized businesses, affecting cash flow and growth. The UK Government’s new measures are all positive and show a strong commitment to addressing this issue. We must also focus on technological solutions. E-invoicing, for instance, already used in other countries, reduces late payments by 20% and processing times by 44%, saving small companies an average of £11,300 annually.

Oliver Lloyd-Taylor, Founder of Black Milk, which has a Manchester-based café and sells award-winning pistachio & hazelnut spreads, said:

As a company we have experienced firsthand the sequential impact of late payments to our daily cash flow – which has, at times, lead us to be late with payments ourselves. We welcome the steps that the Government is making today to help protect small businesses, especially safeguarding them from larger businesses being able to utilise smaller businesses as an overdraft facility.”

Kenny Goodman, co-founder of drinks company Hip Pop said:

Late payments can significantly impact small businesses like ours, especially when it comes to maintaining strong relationships with our suppliers. When we’re paid on time, we can ensure we do the same for those we work with, which is vital to keeping everything running smoothly.

Terry Corby, Founder & CEO of campaign group Good Business Pays said:

On the same day that Good Business Pays published our Autumn 2024 Watchlist of Late & Slow Paying companies, it’s encouraging to see these new late payment measures being announced.

Only reputational pressure from organisations like Good Business Pays, supported with appropriate legislation and enforcement from government, will force a change in late payment behaviour. These new measures announced today will go some way to help drive that culture change.
October 20, 2024