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  • Rachel Reeves – 2025 Spring Statement

    Rachel Reeves – 2025 Spring Statement

    The statement made by Rachel Reeves, the Chancellor of the Exchequer, in the House of Commons on 26 March 2025.

    This Labour Government were elected to bring change to our country, to provide security for working people and to deliver a decade of national renewal. That work began in July, and I am proud of what we have delivered in just nine months: restoring stability to our public finances, giving the Bank of England the foundation to cut interest rates three times since the general election, rebuilding our public services, with record investment in our NHS bringing waiting lists down for five months in a row, and increasing the national living wage to give 3 million people a pay rise from next week.

    Now our task is to secure Britain’s future in a world that is changing before our eyes. The threat facing our continent was transformed when Putin invaded Ukraine. It has since escalated further and continues to evolve rapidly. At the same time, the global economy has become more uncertain, bringing insecurity at home as trading patterns become more unstable and borrowing costs rise for many major economies. The job of a responsible Government is not simply to watch this change. This moment demands an active Government—a Government not stepping back but stepping up, a Government on the side of working people helping Britain reach its potential. We have the strengths to do just that as one of the world’s largest economies, an ally to trading partners across the globe, and a hub for global innovation. These strengths and the progress we have made so far mean that we can act quickly and decisively in a more uncertain world to secure Britain’s future and to deliver prosperity for working people.

    As I set out at the Budget last year, I am today returning to the House to provide an update on our public finances, supported by a new forecast from the independent Office for Budget Responsibility, ahead of a full spending review in June. I will then return to the House in the autumn to deliver a Budget in line with our commitment to deliver just one major fiscal event a year.

    Let me now turn to the OBR’s forecasts; I want to thank Richard Hughes and his team for their dedicated work. The increased global uncertainty has had two consequences: first on our public finances and secondly on our economy. I will take each in turn.

    In the autumn, I set out our new fiscal rules that would guide this Government. These fiscal rules are non-negotiable. They are the embodiment of this Government’s unwavering commitment to bring stability to our economy and to ensure security for working people, because the British people have seen what happens when a Government borrow beyond their means. The mini-Budget delivered by the Conservatives resulted in higher bills, higher rents and higher mortgages, and it was not the wealthy who suffered most when they crashed the economy; it was ordinary working people. They continue to feel the effects two and a half years later of the damage that the Conservatives did.

    Let me be clear: there is nothing progressive, there is nothing Labour, about working people paying the price for economic irresponsibility. The British people put their trust in this Labour Government because they knew that we—they knew that I—would never take risks with the public finances and would never do anything to put household finances in danger. We must earn that trust every single day.

    I set out two rules at the Budget. The first was our stability rule, which ensures that public spending is under control, balancing the current budget by 2029-30 so that day-to-day spending is met by tax receipts. The second was our investment rule to drive growth in the economy, ensuring that net financial debt falls by the end of the forecast period, while enabling us to invest alongside business.

    Turning first to the stability rule, the OBR’s forecast shows that before the steps that I will take in this statement, the current budget would have been in deficit by £4.1 billion in 2029-30, having been projected to be in surplus by £9.9 billion in the autumn, as the UK, alongside our international peers like France and Germany, has seen the cost of borrowing rise during this period of heightened uncertainty in global markets. As a result of the steps that I am taking today, I can confirm that I have restored in full our headroom against the stability rule, moving from a deficit of £36.1 billion in 2025-26 and £13.4 billion in 2026-27 to a surplus of £6 billion in 2027-28, £7.1 billion in 2028-29 and £9.9 billion in 2029-30. That compares with the headroom left by the previous Government of just £6.5 billion. That means that we are continuing to meet the stability rule two years early, building resilience to shocks in this, a more uncertain world.

    The OBR forecast that the investment rule would also be met two years early, with net financial debt of 82.9% of GDP in ’25-26 and 83.5% in ’26-27, before falling to 83.4% in ’27-28, to 83.2% in 2028-29 and then to 82.7% in 2029-30, providing headroom of £15.1 billion in the final year of the forecast, broadly unchanged from the autumn forecast.

    After the last Government doubled the national debt—[Interruption.] After they doubled the national debt, debt interest payments now stand at £105.2 billion this year. That is more than we allocate to defence, the Home Office and the Ministry of Justice combined. That is the legacy of the Conservative party. The responsible choice is to reduce our levels of debt and borrowing in the years ahead, so that we can spend more on the priorities of working people, and that is exactly what this Government will do. I said that our fiscal rules were non-negotiable and I meant it. I will always deliver economic stability and I will always put working people first. I said it at the election; I said it at the Budget; and I say it again today.

    Let me now set out the steps that the Government have taken. At the Budget we protected working people by keeping our promise not to raise their rates of national insurance, income tax or VAT. At the same time, we began to rebuild our public services after the Conservatives left a £22 billion black hole in our public finances. Ours were the right choices: the right choices for stability and the right choices for renewal, funded by the decisions that we took on tax.

    As I promised in the autumn, this statement does not contain any further tax increases, but when working people are paying their taxes while still struggling with the cost of living, it cannot be right that others are still evading what they rightly owe in tax. In the Budget, I delivered the most ambitious package of measures we have ever seen to cut down on tax evasion, raising £6.5 billion per year by the end of the forecast. Today I go further, continuing our investment in cutting-edge technology, investing in HMRC’s capacity to crack down on tax avoidance, and setting out plans to increase the number of tax fraudsters charged every year by 20%. These changes raise a further £1 billion, taking the total revenue raised from reducing tax evasion, under this Labour Government, to £7.5 billion. These figures are verified by the Office for Budget Responsibility and I to thank my hon. Friend the Exchequer Secretary for his continued work in this area.

    Last week, my right hon. Friend the Secretary of State for Work and Pensions set out this Government’s plans to reform the welfare system. The Labour party is the party of work: we believe that if you can work, you should work, but if you cannot work, you should be properly supported. This Government inherited a broken system: more than 1,000 people every day are qualifying for personal independence payments; one in eight young people are not in employment, education or training. If we do nothing, we are writing off an entire generation. That cannot be right and we will not stand for it. It is a waste of their potential and it is a waste of their futures, and we will change it.

    As my right hon. Friend said in her statement last week, the final costings will be subject to the OBR’s assessment. Today, the OBR has said that it estimates that the package will save £4.8 billion in the welfare budget, reflecting its judgments on behavioural effects and wider factors. This also reflects final adjustments to the overall package, consistent with the Secretary of State’s statement last week and the Government’s “Pathways to Work” Green Paper.

    The universal credit standard allowance will increase from £92 per week in 2025-26 to £106 per week by 2029-30, while the universal credit health element will be cut for new claimants by around 50% and then frozen.

    On top of that, we are investing £1 billion to provide guaranteed, personalised employment support to help people back into work, and £400 million to support the Department for Work and Pensions and our jobcentres to deliver these changes effectively and fairly, taking total savings from the package to £3.4 billion. While spending on disability and sickness benefits will continue to rise, these plans mean that welfare spending as a share of GDP will fall between 2026 and the end of the forecast period, which is very different from what we inherited from the Conservative party. We are reforming our welfare system, making it more sustainable, protecting the most vulnerable and, most importantly, supporting more people back into secure work and lifting them out of poverty.

    At the Budget, I fixed the foundations of our economy to deliver on the promise of change. That work has already begun. There are some 2 million extra appointments in our NHS; waiting lists are down; new breakfast clubs are opening across England; there have been the largest settlements in real terms for Scotland, Wales and Northern Ireland in the history of devolution; and asylum costs are falling—promises made, and promises kept, and every single one of them was opposed by Opposition parties.

    At the Budget, alongside providing an increase in funding for this year and next, I set the envelope for the spending review, which we will deliver in June, led by the Chief Secretary to the Treasury. That will set departmental budgets until 2028-29 for day-to-day spending, and until 2029-30 for capital spending.

    Today’s statement reflects two steps that we have taken on our spending plans. First, because we are living in an uncertain world, as the Prime Minister has set out, we will increase defence spending to 2.5% of GDP and reduce overseas aid to 0.3% of gross national income. That means that we save £2.6 billion in day-to-day spending in 2029-30 to fund our more capital-intensive defence commitments. Secondly, in recent months, we have begun to fundamentally reform the British state, driving efficiency and productivity across Government to deliver tangible savings and improve services across our country.

    Earlier this month, the Prime Minister set out our plans to abolish the arm’s length body NHS England, and to ensure that money goes directly to improving the service for patients. The Secretary of State for Health and Social Care is driving forward vital reforms to increase NHS productivity, and is bearing down on costly agency spend to save money so that we can improve patient care.

    The Chancellor of the Duchy of Lancaster is taking forward work to reduce the cost of running Government significantly—by 15%. That will be worth £2 billion by the end of the decade. This work shows that we can make our state leaner and more agile, and deliver more resources to the frontline, while ensuring that we control day-to-day spending to meet our fiscal rules.

    Today, I build on that work by bringing forward £3.25 billion of investment to deliver the reforms that our public services need through a new transformation fund. That is money brought forward now to bring down the cost of running Government by the end of the forecast period by making public services more efficient, more productive and more focused on the user. I can confirm today the first allocations from this fund, including funding for voluntary exit schemes to reduce the size of the civil service, and for pioneering artificial intelligence tools to modernise the state; investment in technology for the Ministry of Justice to deliver probation services more effectively; and up-front investment so that we can support more children in foster care, to give them the best possible start in life and reduce cost pressures in the future.

    Our work to make Government leaner, more productive and more efficient will help deliver a further £3.5 billion of day-to-day savings by 2029-30. Overall, day-to-day spending will be reduced by £6.1 billion by 2029-30, and it will now grow by an average of 1.2% a year above inflation; for comparison, in the autumn, that figure was 1.3%. I can confirm to the House that day-to-day spending will increase in real terms above inflation in every single year of the forecast. In the spending review, apart from the reductions in overseas aid, day-to-day spending across Government has been fully protected.

    I can also confirm our approach to capital investment. In the autumn Budget, I announced £100 billion of additional capital spending to crowd in investment from the private sector, in order to fix our crumbling infrastructure and create jobs in every corner of our country. Today, I am not cutting capital spending, as the Conservative party did time and again, because that choked off growth and left our school roofs literally crumbling. That was the wrong choice. It was the irresponsible choice. It was the Tory choice. Today, I am instead increasing capital spending by an average of £2 billion per year, compared with in the autumn, to drive growth in our economy and to deliver in full our vital commitments on defence. This Government will ensure that every pound we spend will deliver for the British people by increasing productivity, driving growth in our economy and improving our frontline public services.

    Let me turn to the impact of increased uncertainty on our economy. To deliver economic stability, we must work closely with the Bank of England, supporting the independent Monetary Policy Committee to meet the 2% inflation target. There have been three interest rate cuts since the general election, and today’s data shows that inflation fell in February, having peaked at 11% under the previous Government. The Office for Budget Responsibility forecasts that consumer prices index inflation will average 3.2% this year, before falling rapidly to 2.1% in 2026 and meeting the 2% target from 2027 onwards, giving families and businesses the security that they need, and providing our economy with the stable platform that it needs to grow.

    Earlier this month, the OECD downgraded this year’s growth forecast for every G7 economy, including the UK, and the OBR has today revised down our growth forecast for 2025 from 2% in the autumn to 1% today. I am not satisfied with these numbers. We Labour Members are serious about taking the action needed to grow our economy; we are backing the builders, not the blockers, with a third runway at Heathrow airport and through the Planning and Infrastructure Bill. We are increasing investment with reforms to our pension system and a new national wealth fund, and tearing down regulatory barriers in every sector of our economy. That is a serious plan for growth. That is a serious plan to improve living standards. That is a serious plan to renew our country.

    A changing world presents challenges, but also opportunities for new jobs and new contracts in our world-class defence industrial centres from Belfast to Deeside, and from Plymouth to Rosyth. In February, the Prime Minister set out our Government’s commitment to increasing spending on defence to 2.5% of GDP from April 2027—the biggest sustained increase in defence spending since the end of the cold war—and an ambition to spend 3% of GDP on defence in the next Parliament. That was the right decision in a more insecure world—we are putting an extra £6.4 billion into defence spending by 2027—but we have to move quickly in this changing world, and that starts with investment. Today, I can confirm that I will provide an additional £2.2 billion for the Ministry of Defence in the next financial year—a further down payment on our plan to deliver 2.5% of GDP by 2027. This additional investment is about increasing not just our national security, but our economic security.

    As defence spending rises, I want the whole country to feel its benefits, so I will now set out the immediate steps that we are taking to boost Britain’s defence industry, and to make the UK a defence industrial superpower. We will spend a minimum of 10% of the Ministry of Defence’s equipment budget on new, novel technologies, including drones and artificial intelligence-enabled technology, driving forward advanced manufacturing production in places like Glasgow, Derby and Newport, creating demand for highly skilled engineers and scientists, and delivering new business opportunities for UK tech firms and start-ups. We will establish a protected budget of £400 million in the Ministry of Defence—a budget that will rise over time—for UK defence innovation, and a clear mandate to bring innovative technology to the frontline at speed.

    We will reform our broken defence procurement system, making it quicker, more agile and more streamlined, and giving small businesses across the UK better access to Ministry of Defence contracts—something welcomed by the Federation of Small Businesses. We will take forward our plan for Barrow, a town at the heart of our nuclear security, working with my hon. Friend the Member for Barrow and Furness (Michelle Scrogham). We are providing £200 million to support the creation of thousands of jobs there. We will regenerate Portsmouth naval base, securing its future, as called for by my hon. Friend the Member for Portsmouth South (Stephen Morgan). We will secure better homes for thousands of military families—the homes that they deserve, which were denied to them by the previous Government—in the constituencies of my hon. Friends the Members for Plymouth Moor View (Fred Thomas), for Plymouth Sutton and Devonport (Luke Pollard) and for York Outer (Mr Charters) and in Aldershot. That is the difference that this Labour Government are making.

    Finally, we will provide £2 billion of increased capacity for UK Export Finance to provide loans for overseas buyers of UK defence goods and services. I want to do more with our defence budget, so that we can buy, make and sell things here in Britain. I want to give our world-leading defence companies and those who work in them further opportunities to grow, and to create jobs in Britain, as military spending rightly increases all across Europe. To oversee all this vital work, my right hon. Friend the Defence Secretary and I will establish a new defence growth board to maximise the benefits from every pound of taxpayers’ money that we spend, and we will put defence at the heart of our modern industrial strategy to drive innovation, which can deliver huge benefits for the British economy. That is how we make our country a defence industrial superpower, so that the skills, jobs and opportunities of the future can be found right here in the United Kingdom.

    As the previous Government learned to their detriment, there are no shortcuts to economic growth. It will take long-term decisions. It will take our putting in the hard yards. It will take time for the effect of the reforms that we are introducing to be felt in the everyday economy. It is right that the Office for Budget Responsibility should consider the evidence and look carefully at measures before recognising a growth impact in its forecast, but I can announce to the House that the OBR has considered and has scored one of the central planks of our plan for growth.

    In my first week as Chancellor, I announced that we were pursuing the most ambitious set of planning reforms in decades to get Britain building again, and in December we published changes to the national planning policy framework, driven forward tirelessly by my right hon. Friend the Deputy Prime Minister. We are reintroducing mandatory housing targets, and bringing grey-belt land into scope. The OBR has today concluded that these reforms will permanently increase the level of real GDP by 0.2% in ’29-30—an additional £6.8 billion for our economy—and by 0.4% of GDP within 10 years, which is an additional £15.1 billion in the British economy. That is the biggest positive growth impact that the OBR has ever reflected in its forecast, for a policy with no fiscal cost. Taken together with our plans to increase capital spending, which we set out in the Budget last year, this Government’s policies will increase the level of real GDP by 0.6% in the next 10 years. That is the difference that this Labour Government are making.

    Those are policies to grow our economy promised by a Labour Government, delivered by a Labour Government and opposed by the parties opposite.

    The planning system that we inherited was far too slow. The OBR has concluded that our reforms will lead to house building reaching a 40-year high, with 305,000 homes a year by the end of the forecast period. Changes to the national planning policy framework alone will help build over 1.3 million homes in the UK over the next five years, taking us within touching distance of delivering our manifesto promise to build 1.5 million homes in England in this Parliament. Those are homes promised by this Labour Government, homes built by this Labour Government and homes opposed by the parties opposite.

    The impact on our economy goes further still. I said at the election that we could not simply tax and spend our way to prosperity. We need economic growth, so I can today confirm that the effect of our growth policies, including our planning reforms, means an additional £3.4 billion to support our public finances and our public services by 2029-30. Those are the proceeds of growth, promised by this Labour Government, delivered by this Labour Government and opposed by the parties opposite.

    Earlier this week, we provided an additional £2 billion of investment in social and affordable homes next year, delivering up to 18,000 new homes, and allowing local areas to bid for new development across our country, including sites in Thanet, Sunderland and Swindon. That is more security for families across the country, promised by this Labour Government, delivered by this Labour Government and opposed by the parties opposite.

    To build these new homes, we need people with the right skills. Earlier this week, my right hon. Friend the Education Secretary announced more than £600 million to train up 60,000 more construction workers, including through 10 new technical excellence colleges across every region of the country, giving working people the chance to fulfil their potential. Those are new opportunities for our young people, promised by this Labour Government, delivered by this Labour Government and opposed by the parties opposite.

    All this is just the start. The Planning and Infrastructure Bill passed its Second Reading on Monday. That was no thanks to the parties opposite. Once that Bill completes its passage, it will help deliver the homes and infrastructure our country badly needs. I say to the parties opposite: the British people will be watching. If the parties opposite do not support these reforms, let us be clear about what that would mean: they are opposing economic growth, they are opposing more homes for families and they are opposing good jobs across our country. We on the Government Benches are clear about whose side we are on; the parties opposite must decide, too.

    This Labour Government are taking the right decisions now to secure Britain’s future. Today, I can confirm to the House that the OBR has upgraded its growth forecast next year and every single year thereafter, with GDP growth of 1.9% in 2026, 1.8% in 2027, 1.7% in 2028, and 1.8% in 2029. By the end of the forecast, our economy will be larger compared with the OBR’s forecast at the time of the Budget. That is the difference that this Labour Government are making.

    This is not just about lines on a graph; it is about improving people’s lives. Working people are still feeling the pinch after a cost of living crisis caused by the Conservatives that caused interest rates and inflation to go through the roof, so I am pleased that the OBR confirms today that real household disposable income will now grow this year at almost twice the rate expected in the autumn. Compared with the forecast in the final Budget delivered by the Conservatives, and after taking inflation into account, the OBR says today that households will be on average more than £500 a year better off under this Labour Government. That will mean more money in the pockets of working people and higher living standards—promised by this Labour Government, delivered by this Labour Government and opposed by the parties opposite.

    The world is changing. We can see that, and we can feel it. A changing world demands a Government who are on the side of working people, acting in their interest, acting in the national interest, not retreating from challenges, and not stepping back. It demands a Government with the courage to step up to secure Britain’s future and to seize the opportunities that are out there and before us. I am impatient for change. The British people are impatient for change after 14 years of failure, and we are beginning to see change happen. Our plan for change is working. Defence spending is rising. Waiting lists are falling. Wages are up and interest rates are cut. That is the difference that this Labour Government are making.

    Today, the OBR confirms that our plan to get Britain building will drive growth in our economy and put more money in people’s pockets. There are no quick fixes, but we have taken the right choices: returning stability to our economy after years of mismanagement by the party opposite, and delivering security for our country and security for working people. That is what drives this Government; that is what drives me as Chancellor; and, that is what drives the choices I have set out today. I commend this statement to the House.

  • Peter Kyle – 2025 Speech at Space Expo

    Peter Kyle – 2025 Speech at Space Expo

    The speech made by Peter Kyle, the Secretary of State for Science, Innovation and Technology, at the Excel in London on 11 March 2025.

    The British Space programme began in the same year that our late queen, Her Majesty Queen Elizabeth II, ascended to the throne.

    Sixty-three years ago, the launch of Ariel One, the first British-American satellite, made Britain only the 3rd country to launch into orbit.

    In little more than a decade, we went from a nation with space ambition to one of the few countries with a satellite operation.

    Then, as I was enjoying my first birthday, Prospero became the first British satellite to be launched by a British rocket.

    All those years ago, deciding to have a space programme, designing, building and launching a spacecraft, took decades of planning.

    Fast-forward to today:

    • When, somewhere around the world, there is a rocket launching every 34 hours.
    • When the UK’s space economy is outpacing the growth of our economy as a whole.
    • And when, just this month, the second-ever private spacecraft touched down successfully on the surface of the moon. Powered by British engines, engineered in Buckinghamshire.

    An international effort, with British expertise, contributing to a successful lunar mission.

    There is no mistaking the increasing pace of change.

    Or just how much the people in this room – and the businesses you lead – now contribute towards the growing the British economy.

    So, to begin with, it’s my job to say thank you to all of you.

    Britain’s space sector is not just safe in your hands. It is thriving under your stewardship.

    And with the British economy, it’s felt increasingly, and it’s felt day by day.

    This is a government that has economic growth as our number one mission.

    And for us, growth isn’t just a soundbite.

    It is our very purpose.

    Growth rates are more than an indicator of the state of the economy…

    …They are an indication of this government’s state of mind.

    We are:

    • ambitious for Britain
    • determined to build the wealthier, fairer nation for everyone.
    • And we are impatient for the increased wealth and opportunities that economic growth brings to communities, businesses and to people alike.

    With 16% of UK GDP depending on satellite services, there’s no doubt that the space sector is important to that.

    Because Britain has never had a space flight with our own crew on board, it is too easy for some ‘armchair astronauts’ to dismiss the UK space programme.

    I believe we are approaching a space tipping point. At which it becomes simply impossible for even the most determined science-cynic to ignore.

    From how we message family and friends or check the weather, to how our country protects itself from climate change and national security threats that we increasingly face – space technologies simply underpin our lives.

    From the everyday, right through to the extraordinary.

    As heavy launches into low orbit become less costly – 95% cheaper than 40 years ago – and the barriers to entry are more easily overcome, the space tipping point now brings with it new risks that we have to face up to:

    • Hundreds of millions of pieces of space junk that threaten the satellites that support almost every part of our interconnected world.
    • As that figure rises, so does the chance of an accidental collision of catastrophic consequences.
    • And at the same time, space is becoming more and more accessible to hostile actors as well, eventually, possibly seeking to do Britain harm.

    The severity of these risks cannot be overstated.

    But neither should we be blind to the extraordinary opportunities that space technologies offer to our country and to us.

    To embed innovation in every part of our economy…

    …and open the doors to a new era of high productivity and growth.

    To secure our nation for the century ahead…

    …and make discoveries that will transform citizens’ lives.

    We reach this tipping point, and we have a narrow window to secure our stake in space.

    We sometimes talk about scientific progress as if it were inevitable.

    But there is nothing inevitable about progress as every one of you knows well.

    If we and our allies stand still, whilst our competitors stride ahead – or hostile actors get a foot in the door – we will find ourselves locked out of the opportunities space can bring.

    And left exposed further to the risks.

    That’s why space is a strategic priority for this Labour government as we deliver our Plan for Change.

    That requires strategic partnerships with our allies in Europe and around the globe, and between the public and the private sectors.

    And it also means being clear about the roles and responsibilities of each.

    There are some activities – like national security – which only governments can and should do.

    Others, where the creativity, the ingenuity and the enterprise of the private sector will suffice.

    And then there is a third way, where the power of partnership of governments and enterprise is the route to discovery, prosperity and to greater growth as well.

    Since we took office in July, I’ve met many of the players behind Britain’s burgeoning space economy.

    Businesses like Astroscale and ClearSpace, designing new missions to remove dangerous space clutter from orbit.

    And Space Forge, who are finding ways to manufacture semiconductors in microgravity.

    The success of businesses like these depends on world-leading research and an ambitious, entrepreneurial mindset.

    The UK is well placed to lead in both.

    These businesses also need a government that understands and appreciates their potential, has their back, and gives them the foundations to keep pushing the frontiers forward.

    Since 2015, the UK has attracted more private investment in space than any other country outside of the United States.

    We cherish Britain as a beacon for innovation, investment, stability and the rule of law.

    And we are determined to keep that beacon burning brightly in the increasingly competitive and uncertain international environment.

    Space is one of the first 4 areas singled out for attention by the new Regulatory Innovation Office (RIO).

    That Office will cut the burden of bureaucracy, freeing up your time and your resources to invest and innovate further and faster.

    Government must, always must, continue to fulfil our side of the bargain, backing British space with the support the sector needs.

    That means grant funding for innovation; direct investment into strategically significant projects; and procuring from the UK firms from government contracts.

    Take our £20 million investment into Orbex, to fund the first British-made, British-launched rocket, set for orbit later this year.

    Prime is designed to take small satellites into the polar orbits, to improve our understanding of a region right at the frontline of climate change.

    The launch will transform the UK space industry.

    It will bring highly-paid jobs to the Shetland Islands, whilst boosting Europe’s ability to access space from our own continent.

    The UK space sector is further bolstered by Britain’s membership of the European Space Agency.

    Indeed, Britain does better because of that key partnership.

    From inspiring the nation with Tim Peake’s flight to the International Space Station, to our instrumental role in the James Webb Space Telescope, our partnership with the ESA means British firms winning in this unique global marketplace.

    In the last quarter of 2024, UK businesses’ net revenues from the ESA were £80 million higher than our contribution.

    That’s a record for any member state.

    And this success is a direct result of public and private sectors working closer together to make sure the UK sees the great return on our collective investment.

    The knock-on effects of these contract wins will add up to a £1 billion of boost across our economy.

    They’ll create 3,800 highly skilled jobs, from Stevenage right up to the Shetland Isles.

    And they will ensure that British businesses have the power and investment to continue making discoveries that will transform people’s lives:

    • Like Airbus, selected to build a spacecraft to help us weather violent solar storms.
    • Thales Alenia Space, which will propel crucial cargo and scientific instruments right up to the moon’s surface.
    • And Open Cosmos, granted contracts to study the magnetic field, and using what they learn to bolster our satellites and better fight climate change.

    The immense contribution British businesses make to our island’s space story shows ambition, integrity, and leadership.

    It is testament to these traits, alongside the determination and dedication of our people.

    As we stand in this space tipping point, the government’s commitment to economic growth demands that we support science and we invest in innovation.

    We also champion the critical technologies to maximise the power and potential of the British economy.

    Your contribution and the commitment to our economic growth mission is profoundly important.

    So, I want to finish exactly where I started:

    By acknowledging your efforts and extending our appreciation for them, as you help to make Britain more productive, more prosperous, and more pioneering.

    On this planet and beyond.

    Thank you very much.

  • PRESS RELEASE : Boost for side-hustlers as 300,000 people to be taken out of tax returns, government announces [March 2025]

    PRESS RELEASE : Boost for side-hustlers as 300,000 people to be taken out of tax returns, government announces [March 2025]

    The press release issued by HM Treasury on 11 March 2025.

    Tax admin changes to mean up to 300,000 taxpayers will no longer be required to file a tax return.

    • Easier access to tax relief on temporarily imported fine art and antiques often shown in galleries and exhibitions announced, boosting the sector’s international competitiveness.
    • UK’s tax minister expected to announce these alongside a raft of other measures to help HMRC deliver Plan for Change through securing tax revenue and creating the conditions for growth in speech later today (11 March).

    Up to 300,000 people, including those with side hustles, will no longer need to file a Self-Assessment tax return, tax minister James Murray is expected to announce in a speech later today.

    This includes people trading clothes online, dog-walking or gardening on the side, driving a taxi, or creating content online.

    As part of a bold new package to transform HMRC into a quicker, fairer and more modern body the minister is expected to announce plans to increase the Income Tax Self Assessment (ITSA) reporting threshold for trading income, from £1,000 to £3,000 gross within this parliament.

    This will help deliver the Plan for Change by freeing up time for taxpayers helping to create the conditions for economic growth.

    This will benefit around 300,000 taxpayers. An estimated 90,000 of them will have no tax to pay and no reason to report their trading income to HMRC in the future at all. Others will be able to pay any tax they owe through a new simple online service. The changes reflect the government’s commitment to driving forward efficiency reform, a key component of its Plan for Change.

    Mr Murray, the minister responsible for HMRC, will announce this reform to tax experts hosted by the Chartered Institute of Taxation and the Institute of Chartered Accountants in England and Wales in a speech to mark the 20th anniversary of HMRC.

    He will also detail future simplifications to the government’s Temporary Admission customs procedure, to make this relief for temporary imports easier for a range of sectors to use, including art and antiques, often showcased in exhibitions across the UK.

    A new digital pilot with the United States to test ways to speed up trade processes for U.S. and UK businesses is also expected to be announced. This pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and secure real-time data transfers. It will look to make it easier and quicker for businesses to request trade benefits from each country.

    Minister Murray will also update on the work HMRC is doing to tackle phoenixism – where company directors go insolvent to avoid tax – as well as announcing a new reward scheme to encourage informants to come forward to HMRC about tax fraud.

    Exchequer Secretary to the Treasury, James Murray said:

    From trading old games to creating content on social media, we are changing the way HMRC works to make it easier for Brits to make the very most of their entrepreneurial spirit.

    Taking hundreds of thousands of people out of filing tax returns means less time filling out forms and more time for them to grow their side-hustle.

    We are going further and faster to overhaul the way HMRC works to make sure it delivers the Plan for Change that will help put more money in people’s pockets.

    Improving HMRC customer services

    Since taking office, Murray has been taking teams of senior HMRC officials to meet firms including NatWest, Octopus Energy, Barclays, John Lewis, and Centrica to learn best practice and innovative approaches to modernising and digiting customer service from the private sector. This includes the use of generative AI and ‘test and learn’ approaches to improving customer service. HMRC is trialling the use of generative AI to point taxpayers to the advice they need on GOV.UK.

    In line with practice from banks and other private sector businesses, Murray will announce that HMRC has begun trialling a system where customers can use their voice as their password, to pass security checks faster and more securely. Following an evaluation of the trial, it is expected to be rolled out across HMRC over the rest of this year. Voice Biometrics strengthen security, safeguard customer data, and reduce call times. Customers’ voice recordings are converted into encrypted biometric data, a voice print, and stored securely in a data centre.

    As reforms got underway to automate and digitise its services, HMRC met its target of 85 per cent of calls handled between October and December 2024 and is expected to meet its customer service standards in 2025-26.

    As part of this government’s commitment to partner and learn from industry, HMRC will launch a new service to provide an escalation route for agents with Self Assessment and PAYE queries which are over 4 weeks old. A dedicated team of experienced technicians and advisers will adopt a ‘once and done’ approach, taking end-to-end ownership of cases and maintaining regular communication with agents.

    Closing the Tax Gap – phoenixism and informants

    Since becoming chair of HMRC’s board last year, Exchequer Secretary James Murray has steered the UK tax authority to go further and faster to close the tax gap, in order to raise the revenue required to fund public services and investment projects.

    Following the Autumn Budget’s announcement of future work to tackle phoenixism – where rogue directors avoid payment of company tax by going insolvent – Mr Murray will update on the work in his speech. He will lay out how HMRC and the Insolvency Service have agreed a joint plan, which includes an increase to the use of securities, where HMRC asks for upfront payment of tax from new companies, making more rogue directors personally liable for the taxes of their company.

    Murray will also announce a new reward scheme for informants to be launched later this year. This will look to target serious non-compliance in large corporates, wealthy individuals, offshore and avoidance schemes. The scheme will take inspiration from the successful US and Canadian ‘whistleblower’ models and will complement the existing HMRC rewards scheme.

    Informants could take home a significant amount of compensation. This will be equal to a proportion of the tax take, ensuring that the scheme raises more money that it costs. Work is ongoing within the government regarding what percentage this could be. Further details will be set out in due course.

    At the Budget in October, the Chancellor announced an injection of over £1.5bn in HMRC to recruit and fund an additional 5,000 new compliance caseworkers and 1,800 debt collection officers. Minister Murray will announce in his speech that an additional 600 new compliance staff will start work this month. Investment in AI is expected to improve the targeting of compliance work and help make HMRC staff more productive.

    This, alongside investment to modernise HMRC systems and legislation to tackle non-compliant tax avoidance and prevent non-compliance will raise £6.5bn per year by 2029/30.

    This will help deliver the Plan for Change by securing tax revenue to help fund investment projects to boost growth.

    Simplifying Tax Admin and Modernising HMRC

    A simple and modern tax and customs system is vital to create the conditions to grow the economy.

    Following the commitment in the Autumn to bring forward measures in the Spring to simplify the tax and customs system, the government will today go further to reduce the time businesses spend managing their tax, so they can focus on what matters most to them: growing and being productive.

    The minister will announce a future digital pilot with U.S. Customs and Border Protection to test ways to speed up trade processes for UK and U.S. businesses. In 2024, UK-U.S. goods trade was worth a combined £115bn.

    The aim is to make supply chains between UK and U.S. businesses more efficient through modernising how HMRC systems, international partners and businesses communicate with each other. The pilot will look to make the communications between HMRC, the U.S. and businesses more seamless through better use of digital credentials and real-time data.

    The pilot will include testing the ability to issue and share digital trusted trader credentials between UK and U.S. systems.  This would speed up processes for trusted U.S. and UK businesses trading with each other including by making it more easy and efficient to request trade benefits from each country.

    Susan S. Thomas, acting Executive Assistant Commissioner of the U.S. CBP’s Office of Trade said:

    Modernizing trade processes is essential if we are going to keep pace with today’s trading environment.

    We are taking our operations to the next level, bridging gaps between systems, creating a new era of supply chain transparency and data system flexibility.

    James Murray will announce changes to simplify the tax system. The ITSA trading income reporting threshold will increase from £1,000 to £3,000 gross within this parliament, aligning with the new reporting thresholds for property and “other taxable” income. This means, that up to 300,000 taxpayers, 98% of whom are self employed including the UK’s side hustlers, will not need to file a tax return. This ranges from people trading vintage clothes, dog-walking or gardening on the side, to driving a taxi or creating content online This will help cut waste, avoid unnecessary worry for customers and improve the conditions needed for them to grow.

    Murray will also highlight simplifications to the customs regime to reduce burdens for traders. These include improvements to the Temporary Admission procedure, which relieves import duties for eligible goods that are imported temporarily. For example, the usual time limit for fine art and antiques will increase from 2 to 4 years.

    Ellen Milner, Director of Public Policy, Chartered Institute of Taxation said:

    We welcome the government’s focus on simplifying the tax system and improving customer service – rightly two key priorities for HMRC as the tax authority heads into its third decade. A more straightforward, easy to navigate tax system could free up business owners and managers to focus on growing their businesses, rather than spending their days overcoming bureaucratic hurdles. We especially welcome the announcement of a new approach to dealing with slow-moving income tax queries from agents. Hopefully, in due course, this can be expanded to unrepresented taxpayers and to other taxes.

    Eve Williams, CEO of eBay UK, commented:

    This will be welcome news for thousands of UK sellers for whom eBay is a side hustle and a means of supplementing their household income during challenging times. By removing the paperwork associated with selling online, hopefully we will help these side hustles grow into fully fledged small businesses.

  • PRESS RELEASE : ‘Biggest building boom’ in a generation through planning reforms [March 2025]

    PRESS RELEASE : ‘Biggest building boom’ in a generation through planning reforms [March 2025]

    The press release issued by the Ministry of Housing, Communities and Local Government on 11 March 2025.

    Homes and key infrastructure will be built faster under Planning and Infrastructure Bill

    Homes and key infrastructure that hundreds of thousands of hard-working people and families need will be built quicker thanks to transformative reforms to get Britain building, tackle blockers and unleash billions in economic growth.

    The Planning and Infrastructure Bill, which will be introduced to Parliament today (11 March), will see significant measures introduced to speed up planning decisions to boost housebuilding and remove unnecessary blockers and challenges to the delivery of vital developments like roads, railway lines and windfarms. This will boost economic growth, connectivity and energy security whilst also delivering for the environment.

    By ensuring shovels can be put in the ground more quickly and projects are freed from unnecessary bureaucracy, these measures will help deliver a building boom that will deliver a major boost to the economy worth billions of pounds, and create tens of thousands more jobs as houses and infrastructure are built. It will make Britain a more attractive prospect for investment and development with a planning process that works for the builders, not blockers.

    This Bill comes alongside wider planning reforms including the new National Planning Policy Framework and is at the heart of our Plan for Change missions to deliver the 1.5 million homes this country needs alongside 150 major projects, ensure Britain can become a clean energy superpower through building the necessary infrastructure, and help to raise living standards by ensuring working people have more money in their pocket.

    People living near new electricity transmission infrastructure will also receive up to £2,500 over ten years off their energy bills, ensuring those hosting vital infrastructure benefit from supporting this nationally critical mission.

    Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said:

    We’re creating the biggest building boom in a generation – as a major step forward in getting Britain building again and unleashing economic growth in every corner of the country, by lifting the bureaucratic burden which has been holding back developments for too long.

    The Planning and Infrastructure Bill will unleash seismic reforms to help builders get shovels in the ground quicker to build more homes, and the vital infrastructure we need to improve transport links and make Britain a clean energy superpower to protect billpayers.

    It will help us to deliver the 1.5 million homes we have committed to so we can tackle the housing crisis we have inherited head on – not only for people desperate to buy a home, but for the families and young children stuck in temporary accommodation and in need of a safe, secure roof over their heads.

    These reforms are at the heart of our Plan for Change, ensuring we are backing the builders, taking on the blockers, and delivering the homes and infrastructure this country so badly needs.

    KEY MEASURES

    Planning Committees

    Housebuilding will be backed by streamlining planning decisions through the introduction of a national scheme of delegation that will set out which types of applications should be determined by officers and which should go to committee, have controls over the size of planning committees to ensure good debate is encouraged with large and unwieldy committees banned, and mandatory training for planning committee members. Councils will also be empowered to set their own planning fees to allow them to cover their costs – with the stretched system currently running at a deficit of £362 million in the recent year. This money will be reinvested back into the system to speed it up.

    Nature Restoration Fund

    A Nature Restoration Fund will be established to ensure there is a win-win for both the economy and nature by ensuring builders can meet their environmental obligations faster and at a greater scale by pooling contributions to fund larger environmental interventions. These changes will remove time intensive and costly processes, with payments into the fund allowing building to proceed while wider action is taken to secure the environmental improvements we need.

    Compulsory Purchase Reform

    Land needed to drive forward housing or major developments could also be bought more efficiently thanks to reforms to boost economic growth and drive forward local regeneration efforts. The compulsory purchase process – which allows land to be acquired for projects that are in the public interest – will be improved to ensure important developments delivering public benefits can progress. The reforms will ensure compensation paid to landowners is not excessive and the process of using directions to remove ‘hope value’ – the value attributed to the prospect of planning permission being granted for alternative development – where justified in the public interest is sped-up. Inspectors, councils or mayors where there are no objections, will take decisions instead of the Secretary of State.

    Development Corporations

    Development Corporations will be strengthened to make it easier to deliver large-scale development – like the government’s new towns – and build 1.5 million homes alongside the required infrastructure. They were used in the past to deliver the post-war new towns and play a vital role when the risk or scale of a development is too great for the private sector. Their enhanced powers will help deliver the vision for the next generation of new towns – a new programme of well-designed, beautiful communities with affordable housing, GP surgeries, schools and public transport where people will want to live.

    Strategic Planning

    The Bill will introduce a system of ‘strategic planning’ across England known as spatial development strategies, which will help to boost growth by looking across multiple local planning authorities for the most sustainable areas to build and ensuring there is a clear join-up between development needs and infrastructure requirements. These plans will be produced by mayors, or by local authorities in some cases, and will ensure the level of building across the country meets the country’s needs.

    National Significant Infrastructure Projects (NSIP)

    The Bill will ensure a faster NSIP regime that delivers infrastructure projects faster. It will make sure the consultation requirements for projects – such as windfarms, roads or railway lines – are streamlined, and ensure the national policies against which infrastructure applications are assessed are updated at least every five years so the government’s priorities are clear. Other changes will be made to the Highways Act and the Transport and Works Act to reduce bureaucracy so transport projects can progress quicker.

    The government will further overhaul the process by which government decisions on major infrastructure projects can be challenged. Meritless cases will only have one – rather than three – attempts at legal challenge. Data shows that over half – 58% – of all decisions on major infrastructure were taken to court, including windfarms in East Anglia which was delayed by over two years as a result of unsuccessful challenges.

    Clean Energy

    Further changes will make sure approved clean energy projects that help achieve clean power by 2030, including wind and solar power, are prioritised for grid connections. Some projects currently face waits of over 10 years. A ‘first ready, first connected’ system will replace the flawed ‘first come, first served’ approach to prioritise projects needed to deliver clean power, unlocking growth with £200 billion of investment and protecting households from the rollercoaster of fossil fuel markets, while reforming the grid queue will accelerate connections for industrial sites and data centres.

    Around twice as much new transmission network infrastructure will be needed by 2030 as has been built in the past decade and Britain’s electricity grid needs a 21st century overhaul to connect the right power in the right places.

    Bill Discounts

    People living within 500m of new pylons across Great Britain will get money off their electricity bills up to £2,500 over 10 years, under these plans. Alongside money off bills, separate new guidance will set out how developers should ensure communities hosting transmission infrastructure can benefit, by funding projects like sports clubs, educational programmes, or leisure facilities.   The new community funds guidance means communities could get £200,000 worth of funding per km of overhead electricity cable in their area, and £530,000 per substation.

    This would mean an upcoming project like SSEN Transmission’s power line between Tealing and Aberdeenshire could see local communities benefitting from funding worth over £23 million. Developers will closely consult with eligible communities on the funds and how best to spend them, to ensure a fair and consistent approach across Great Britain.

    Mark Reynolds, Executive Chair of Mace Group and Co-Chair of the Construction Leadership Council, said:

    For too long the UK’s planning systems have inhibited growth, with layer upon layer of checks and balances stifling productivity, confidence, investment and jobs.

    These proposed changes show this government is listening to industry and taking reform seriously; recognising that new homes and infrastructure are necessary to inject life into the economy.

    Our construction industry is ready to meet the challenge, and the measures highlight how mindful growth can support communities and our net-zero ambitions.

    Neil Jefferson, Chief Executive of the Home Builders Federation, said:

    The swift moves to address the failings in the planning system are a very welcome and positive step towards increasing housing supply. Removing blockages, speeding up the decision-making process and ensuring local planning departments have the capacity to process applications effectively will be essential to getting more sites up and running. If the other constraints currently preventing house builders delivering more homes can be tackled, the changes made to planning will really allow output to accelerate.

    Brian Berry, Chief Executive of the Federation of Master Builders, said:

    The new Planning and Infrastructure Bill is a crucial first step in getting Britain building again. In the 1980’s around 40% of new homes were built by SMEs, yet today that figure is around 10%. Small builders across the UK stand ready to play their part in delivering the homes we need, but time and time again we’ve seen barriers keeping them out of the market.

    We know from research carried out by the FMB that around three quarters of small builders view the planning system as the number one issue holding back the delivery of new homes, while lack of viable and available land are also major challenges. Supporting small builders through the planning system and reducing unnecessary bureaucracy will be key to opening up small sites, and today’s announcement will be welcomed by many across the industry.

    Kate Henderson, Chief Executive of the National Housing Federation, said:

    At a time when the housing crisis continues to blight lives across the country, it’s welcome to see the introduction of this bill. With more than 160,000 children in temporary accommodation, it’s never been more urgent to build the social homes we need.

    Planning reform is an essential part of solving the housing crisis, and a return to strategic planning is welcome. A focus on certainty and enabling local areas to work together to plan for the homes, jobs and infrastructure needed in communities will ensure every area benefits from growth. Measures to reform compulsory purchase orders in the bill are also welcome, and will support the delivery of affordable housing and other local infrastructure such as GPs and schools.

    David Thomas, Chief Executive of Barratt Redrow, said:

    It has been clear from day one that government is serious about tackling the housing crisis, and it continues to take strong action to unlock stalled projects and reshape the planning system to deliver the high-quality homes and sustainable places the country needs.

    We share government’s ambition to build more homes, to create good quality jobs and to drive economic growth. We look forward to supporting them on this mission and will respond positively to the bold reforms set out in the Planning and Infrastructure Bill.

    Other measures included in the Bill:

    • Streamlining the process to install EV charging infrastructure to help meet our net-zero ambitions
    • A new scheme to unlock billions of pounds of investment in long duration electricity storage (LDES) to store renewable power and deliver the first major projects in four decades.
    • Changes to the outdated planning rules for electricity infrastructure in Scotland that will streamline the consent process to enable decisions to be made faster.
    • An extension to the generator commissioning period from 18 to 27 months to reduce the number of offshore wind farms requiring exemptions when applying for licences to connect to onshore cables and substations.
    • Allowing forestry authorities in England and Wales, including the Forestry Commission, to bring forward development proposals, on the land they manage, relating to the generation of electricity from renewable sources– and to sell resulting electricity.

    The Bill builds on work the government has already carried out to get Britain building including overhauling the National Planning Policy Framework, including new and higher mandatory housebuilding targets for councils, a comprehensive modernisation of the Green Belt, and far greater support for growth-supporting development such as labs and datacentres.

  • PRESS RELEASE : Up to 170,000 homes to get energy saving upgrades [March 2025]

    PRESS RELEASE : Up to 170,000 homes to get energy saving upgrades [March 2025]

    The press release issued by the Department for Energy Security and Net Zero on 11 March 2025.

    Hundreds of thousands of homes in England to benefit from energy efficiency upgrades, helping families stay warm and cut bills.

    • New energy saving upgrades can help families save hundreds off their bills, as delivery of the Warm Homes Plan accelerates
    • Low-income households and tenants in social housing to benefit from measures such as insulation, double glazing, solar panels and heat pumps
    • Allocations to be made through the Warm Homes: Local Grant and Warm Homes: Social Housing Fund, as government puts more money in people’s pockets through the Plan for Change

    Up to 170,000 homes in England will benefit from energy efficiency upgrades as the rollout of the Warm Homes Plan gathers pace, helping more families lower their energy bills and improve their homes.

    £1.8 billion in government support will from today (Tuesday 11 March) be allocated to local authorities and social housing providers, in a new boost which will support them to deliver warmer, more energy efficient homes in local communities across England.

    This funding will be targeted towards low-income households and tenants living in social housing, with thousands of families set to receive energy performance and clean heating upgrades in the form of insulation, solar panels and heat pumps.

    At a time when many are experiencing high energy bills driven by the UK’s reliance on international gas markets, this funding through the Warm Homes: Local Grant and the Warm Homes: Social Housing Fund schemes could now help households save hundreds of pounds a year.

    This move will help deliver a milestone of higher living standards in every part of the UK by the end of Parliament by boosting people’s Real Household Disposable Income – a key part of our Plan for Change.

    Minister for Energy Consumers, Miatta Fahnbulleh, said:

    Living in a warm, comfortable home should not be a luxury. It is a right that has been out of reach for too many people for too long.

    By giving this funding to local authorities and social housing providers we are delivering on our promise to improve the homes of thousands of people across England.

    As part of our Plan for Change, we are powering on with our Warm Homes Plan, upgrading cold and draughty homes so they are warmer, cleaner, and cheaper to live in.

    The Warm Homes: Social Housing Fund will deliver up to £1.29 billion of funding to 144 projects across England with the Warm Homes: Local Grant allocating £500 million to 73 projects across 270 local authorities over the next 3 years.

    The West Midlands Combined Authority (WMCA) and the Greater Manchester Combined Authority (GMCA) will receive an allocation of this funding as part of the Warm Homes and Public Sector Decarbonisation Devolution Programme.

    This funding complements the government’s mission to make Britain a clean energy superpower, delivering energy security and bringing down bills for good.

    The expected rise in the price cap shows once again the cost of remaining reliant on the unstable global fossil fuel markets that are driving price increases.

    The funding allocations follows the recent announcement on the Warm Homes Discount with almost 3 million more households, including almost 1 million households with children, becoming eligible for £150 to pay their energy bills next winter, as the government consults on proposals to offer more support to consumers across the country.

    This comes after other government support to deliver warmer, more energy efficient homes and protect consumers, including:

    • consulting on plans to mandate private landlords in England and Wales to improve the energy performance of their properties by 2030, saving private renters £240 per year on average on their energy bills
    • setting out a £500 million Winter Package with Energy UK to help customers with their energy bills
    • extending the Household Support Fund to help vulnerable households with essential costs like food, energy, and water bills
    • helping more families get a heat pump by almost doubling the budget for the Boiler Upgrade Scheme in the next financial year to £295 million, along with allocating an extra £55 million for the rest of this financial year. And removing the rule requiring heat pumps to be installed at least one metre from a property’s boundary

    Kate Henderson, Chief Executive of the National Housing Federation, said:

    We welcome this funding allocation to help decarbonise England’s social homes; a crucial step towards the government’s commitment to tackle fuel poverty.

    With the fund oversubscribed, it is clear that there is both momentum and appetite among housing associations to upgrade their homes at scale and pace. The sector is working hard to ensure all their homes meet EPC C by 2030, in line with the government’s net zero target.

    Decarbonising our homes is a win win for residents, the government and our planet, creating warmer homes, saving residents money and tackling the climate emergency.

    Gavin Smart, Chief Executive of the Chartered Institute for Housing (CIH), said:

    We welcome this investment as another important step towards making homes warmer, healthier, and more affordable to run. Social landlords have worked hard to improve the energy efficiency of their homes, and this funding will help them to continue that work—supporting retrofit programmes that will reduce fuel poverty, lower carbon emissions, and bring down energy bills for tenants.

    The strong demand for this funding highlights how vital energy efficiency investment is for the social housing sector. CIH will continue to work with government and our members to support the effective rollout of this funding and advocate for the long-term investment needed to make all homes warmer and safer.

    Tracy Harrison, Chief Executive of the Northern Housing Consortium, said:

    The North has lots of older, colder homes – with 1 in 5 built before 1919 and almost a million households currently in fuel poverty – so this Warm Homes investment will make a big difference to people’s lives. NHC members, including housing associations, local authorities and combined authorities across the North, are working to tackle this by installing tens of thousands of energy efficiency measures from heat pumps to home insulation.

    This extra funding from government is very welcome and will boost these efforts, helping to cut carbon emissions, support jobs, cut fuel bills and tackle fuel poverty. We also welcome the move to devolve retrofit funding in the North through the allocation of funding to Greater Manchester Combined Authority’s Integrated Settlement.

    This will allow funding to better align with locally led plans for economic growth, training and skills provision, as well as support greater collaboration between housing providers in Greater Manchester. We know there is continuing appetite from our members to continue to make our homes more energy efficient.

    Derek Horrocks, Chairman of Sustainable Energy UL, said:

    With up to 170,000 households supported under today’s announcement, this will positively impact thousands of the most vulnerable in society through the creation of warmer, healthier, drier, and more affordable-to-heat homes.

    Building on the success of previous energy efficiency programmes, the initiative will also drive significant investment in training and skills development, strengthening the workforce needed for the UK’s transition to net zero. Alongside safeguarding existing jobs, the plan will also generate thousands of new roles in the growing green economy and enable the supply chain to continue to invest in the sector for the long term with confidence.

  • PRESS RELEASE : Science Secretary hails UK space sector for securing record-breaking contracts and propelling government’s mission forward [March 2025]

    PRESS RELEASE : Science Secretary hails UK space sector for securing record-breaking contracts and propelling government’s mission forward [March 2025]

    The press release issued by the Department for Science, Innovation and Technology on 11 March 2025.

    British space sector secures European Space Agency contracts worth £80 million more than government contributions in last quarter of 2024 – a record for any member state.

    • British space sector secures European Space Agency contracts worth £80 million more than government contributions in last quarter of 2024 – a record for any member state.
    • Recent increase in contract wins set to deliver wider benefits of more than £1 billion to the UK economy and support 3,800 highly skilled jobs.
    • New figures show UK companies and universities increasingly influential in global efforts to explore and benefit from space, supercharging government’s mission to grow the economy as part of Prime Minister’s Plan for Change.

    The Science Secretary Peter Kyle has hailed Britain’s space sector as a ‘launchpad for innovation and investment’, generating thousands of highly skilled jobs across the country and propelling the Prime Minister’s Plan for Change set to boost economic growth.

    From supporting last week’s commercial moon landings with innovative propulsion technologies, to securing record contract wins through the European Space Agency (ESA), the UK space sector is going from strength to strength.

    New figures released today (11th March) demonstrate an increase in the UK’s competitiveness for valuable contracts awarded by the European Space Agency. In the last quarter of 2024 alone, the UK space sector secured contracts worth £80 million more than government’s contributions to the European Space Agency. This is the most successful quarter on record, and increases the total value of contracts secured for the UK sector through the European Space Agency to £844 million since June 2022.

    A government-backed task force led by the UK Space Agency has driven efforts to extract maximum value from the UK’s contributions to the European Space Agency, by improving the rate of geographical return – the principle that contracts are awarded in proportion to a country’s investments. This initiative has improved the UK’s return rate from 93p back in contracts for every £1 invested in 2022 to 99p in contracts for every £1 invested today. The wider benefits of this funding and international collaboration deliver £9.80 for every £1 invested over time.

    The recent increase in contract wins will deliver wider benefits of more than £1 billion to the UK economy and support an additional 3,800 highly skilled jobs. These wins build on a UK space sector which currently employs 52,000 people and generates an income of £18.9 billion each year.

    This demonstrates the space sector’s role in turbocharging the government’s mission to grow the UK economy as part of the Prime Minister’s Plan for Change, and the value of strong international partnerships in science, innovation and technology.

    Science Secretary Peter Kyle said:

    These figures show not only the incredible results of a government working hand-in-glove with industry to get even more bang for our buck, but also send a clear message to the private sector across the globe: when it comes to space, science and tech, the UK is a launchpad for innovation and investment.

    We are on a mission to deliver sustained economic growth, and it is fantastic to see such a vital industry helping us propel our Plan for Change, ultimately raising living standards for everyone.”

    These figures come hot on the heels of the Science and Technology Secretary’s speech at the Tech UK Conference yesterday (10 March) on plans to drive a decade of innovation with our Industrial Strategy – laying out a vision for 2035 where technology, including space, is a force for good in improving people’s lives.

    The global space sector is an important driver of growth, forecasted to triple by 2035, reaching £1.4 trillion per year. A significant share of the UK economy (16% of UK GDP) depends on products and services provided by satellites, such as communications, navigation, timing and Earth observation.

    The recent European Space Agency contracts, funded through the UK Space Agency, are accelerating innovation in space missions and capabilities, spanning from the Airbus-led Vigil mission, which will provide space weather forecasts up to five days in advance, to Thales Alenia Space’s work on a next generation spacecraft to deliver instruments and cargo to the Moon’s surface.

    The UK government is also backing the UK’s growing launch sector, with a recent £20 million investment into Orbex, which is planning to launch satellites into space using its Prime rocket from the SaxaVord spaceport in the Shetland Islands later this year. The investment positions Britain as a leading international partner and cooperator in Europe’s space ambitions.

    Recent success in attracting private investment include an £8.2 million seed funding round by Magdrive announced last month (February) and a £10 million Series B round by SatVu announced in November 2024. More investment deals and contracts are expected to be announced in the coming months.

    Dr Paul Bate, CEO of the UK Space Agency, said:

    While the value to the UK economy of our membership of ESA is many times greater than the sums invested, it is important for us to demonstrate the UK’s competitiveness in securing industrial contracts.

    First and foremost, the reduction in the deficit is down to the efforts of the UK space sector, so I would like to congratulate all those working on the new contracts. I would also like to thank the teams in ESA and the UK Space Agency for their hard work in delivering this exceptional result.

    Josef Aschbacher, Director General of the European Space Agency, said:

    ESA and the UK Space Agency are working hand in hand to empower the UK’s space sector, including its adjacent industries and vibrant startup scene. The results of our collaboration stand for economic growth, technological and scientific autonomy, high-value jobs for Europe and the UK, but also for a shared European vision of space that is both ethical and sustainable.

    The new figures announced today reflect ESA’s longstanding commitment to help the UK in building one of the most attractive and innovative space economies in the world, whilst developing new scientific and industrial capacity and capabilities with partners across Europe.

    Colin Baldwin, UKspace Executive Director, said:

    The increasing number of ESA contracts being won by UK space companies reflects the work done by the UK Space Agency, ourselves and other stakeholders to give our members the tools and knowledge required to showcase their capabilities and expertise, and convert this into business-winning activities.

    I hope our 200+ members – from start-ups to corporations – along with the wider UK space sector, will continue to demonstrate their quality, win more contracts, and deliver continued value for ESA and the UK economy.

  • PRESS RELEASE : Minister West’s visit reinforces shared commitment to secure and resilient growth [March 2025]

    PRESS RELEASE : Minister West’s visit reinforces shared commitment to secure and resilient growth [March 2025]

    The press release issued by the Foreign Office on 11 March 2025.

    UK Foreign Office Minister for Indo-Pacific Catherine West is in Malaysia for a 2-day visit.

    The UK and Malaysia will step up co-operation to drive economic growth through trade and investment in key sectors.

    Kicking off her visit today (10 March), the UK Minister for the Indo-Pacific Catherine West MP will witness the signing of a Memorandum of Understanding for a semiconductor partnership between a British and Malaysian company, advancing an already strong relationship between the UK and Malaysia in the technology sector.

    Her visit comes 3 months after the UK joined Malaysia in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), making it the first UK-Malaysia free trade agreement. By cutting tariffs and reducing other market access barriers, this will boost an already strong trading relationship worth over £5.7 billion annually and reinforce 2-way flows of investment.

    During her 2-day visit to Malaysia, the Minister will hold bilateral talks with Deputy Foreign Minister Datuk Mohamad bin Haji Alamin. Alongside a strong message on mutual economic growth and the green transition, the Minister will reiterate the UK’s support for Malaysia’s chairmanship of ASEAN and our commitment together on shared challenges from global health to international peace and security.

    Minister for the Indo-Pacific, Catherine West said:

    Three months since the UK joined Malaysia in the CPTPP, eliminating tariffs and facilitating business partnerships, this is a moment of opportunity to deepen our economic links and advance our shared interest in sustainable and inclusive growth.

    Technology is one of the sectors we can and must develop together. I’m here in Malaysia to support that.

    To achieve economic growth we must have strong and stable foundations. That is why we will continue to work with Malaysia on our shared priorities around regional security issues, global health and the climate crisis.

    The UK will remain an active, committed Dialogue Partner to ASEAN – supporting ASEAN centrality and Malaysia’s chairmanship of ASEAN in 2025.

  • PRESS RELEASE : Record farmers in SFI schemes as government successfully allocates sustainable farming budget [March 2025]

    PRESS RELEASE : Record farmers in SFI schemes as government successfully allocates sustainable farming budget [March 2025]

    The press release issued by the Department for Environment, Food and Rural Affairs on 11 March 2025.

    More than 50,000 farm businesses are benefitting from farming schemes and more money is being spent through the Sustainable Farming Incentive (SFI) than ever.

    • SFI24 has reached its completion, and the Government is stopping accepting new SFI applications today
    • Every penny in every existing SFI agreement will be paid to farmers, and outstanding eligible applications will be taken forward

    With record numbers of farm businesses in farming schemes and the sustainable farming budget successfully allocated, the Government has today (Tuesday 11 March) stopped accepting new applications for the Sustainable Farming Incentive (SFI24).

    Every penny in all existing SFI agreements will be paid to farmers, and outstanding eligible applications that have been submitted will also be taken forward.

    This Government inherited farming schemes which were underspent, meaning millions of pounds were not going to farming businesses. At the budget, the Government proudly secured the largest budget for sustainable food production in our country’s history, with £5 billion was committed in the farming budget over a two-year period.

    As a result of the Government’s determination to get more farmers to participate, there is now a record 50,000 farm businesses and more than half of all farmed land is now managed under our schemes.

    The largest of these schemes, SFI, now has more than 37,000 multi-year live agreements and is not only delivering sustainable food production and nature’s recovery for today and the years ahead, but it is also putting money back into farmers pockets.

    However, this Government inherited an uncapped scheme, despite a finite farming budget. The highest ever level of participation in SFI means the maximum limit has now been reached. Therefore, as SFI has reached its completion the Government is stopping accepting new SFI applications today.

    Now is the right time for a reset: supporting farmers, delivering for nature and targeting public funds fairly and effectively towards our priorities for food, farming and nature.

    Minister for Food Security and Rural Affairs Daniel Zeichner said:

    This Government is proud to have set the biggest budget for sustainable food produce in history, to boost growth in rural communities and all across the UK, under our Plan for Change.

    More farmers are now in schemes and more money is being spent through them than ever before. That is true today and will remain true tomorrow.

    We have now successfully allocated the SFI24 budget as promised.

    Environmental Land Management scheme agreements will remain in place, including SFI, and there will be a new and improved SFI on offer with details to follow the Spending Review. This will be underpinned by the Government’s cast iron commitment to food security, focusing on food production, creating more resilient farm businesses alongside supporting nature recovery.

    The future SFI offer will build on what has made the current scheme effective. It will:

    • Deliver our vision of a sector with food production at its core, supporting less resilient farm businesses alongside nature recovery;
    • Ensure it delivers value for money for taxpayers alongside investing in sustainable food production and nature recovery;
    • Cap the budget and put in place strong budgetary controls so that SFI is affordable to the public purse;
    • Better target SFI, in a fair and orderly way, towards the priorities set out on food, farming and nature;
    • And, as the scheme is designed and evolving, listen to farmers feedback to ensure we learn and improve the scheme for the future.

    The improved SFI scheme will be another step in this government’s New Deal for farmers to support growth and return farm businesses to profitability.

    The Government recently announced a raft of new policies to help boost profits for farmers and will go further to ensure farming becomes more profitable for the future by backing British produce, protecting farmers in trade deals, improving supply chain fairness and reforming planning rules on farms to support food security.

    The Seasonal Worker Visa Scheme has also been extended for 5 years, the government have committed £110 million in farming grants to improve productivity, trial new technologies and drive innovation in the sector and announced plans to invest over £200 million in a new National Biosecurity Centre to protect livestock from diseases.

    As set out in the Plan for Change, the Government is focused on supporting our farmers, rural economic growth and boosting Britain’s food security and are going further to develop a 25-year farming roadmap to make the sector more profitable in the decades to come.

  • PRESS RELEASE : UK and Welsh Government unite in £1m fund to transform River Wye [March 2025]

    PRESS RELEASE : UK and Welsh Government unite in £1m fund to transform River Wye [March 2025]

    The press release issued by the Department for Environment, Food and Rural Affairs on 10 March 2025.

    UK and Welsh Government unite in £1 Million fund to transform River Wye

    • Water Minister Emma Hardy and Deputy First Minister of Wales hosts roundtable at River Wye to kickstart action to tackle local pollution
    • UK and Welsh Governments announce £1m research fund to tackle pollution in iconic river
    • River Wye is latest visit in Environment Secretary and Water Minister’s tour across UK to see how water investment underpins government’s Plan for Change

    The Welsh and UK Government have today announced a new £1 million joint research initiative to tackle water quality issues in the River Wye.

    The Welsh Deputy First Minister, Huw Irranca-Davies, and UK Government’s Water Minister, Emma Hardy, made the announcement during a roundtable meeting in Monmouth with key stakeholders from both sides of the border.

    The comprehensive cross-border research programme will:

    • Investigate the sources of the pollution and pressures affecting the river
    • Study the impacts of changing farming practices and land management
    • Develop and test new ways to improve water quality
    • Examine what’s driving wildlife decline and water flow – the movement and quantity of water which is crucial for habitats and species

    Local farmers, environmental groups, and citizen scientists will play a crucial role in gathering evidence and shaping the research priorities. The programme will work closely with established organisations including the Wye Catchment Partnership, the Nutrient Management Board, and farming organisations like Herefordshire Rural Hub and Farm Cymru.

    Following the visit to Monmouth, Water Minister Emma Hardy said:

    “For too long, the River Wye has suffered from extreme pollution, leading to devastating effects on wildlife and impacting all those who live along its banks.

    “That is why we’re resetting relationships on both sides of the border to share our knowledge and make sure this research translates into real action.

    “Our Water (Special Measures) Act has laid the foundations for cleaning up the water system. As part of the government’s Plan for Change to grow the economy and make Britain better off, over £100 billion of private sector money is being invested into the water sector to upgrade and build infrastructure.

    “But we must go further, and vital research like this gets us one step closer to cleaning up rivers like the Wye for good”

    Deputy First Minister of Wales Huw Irranca-Davies said:

    “This is an important step to protect the River Wye, and we are committed to continuing to work together to restore our rivers.

    “This research funding will support both nature recovery and sustainable farming practices to improve the local environment.

    “By bringing together expertise from both sides of the border and working closely with local groups, we can better understand the challenges facing the river and find the solutions that will make a difference.”

    The initiative builds on existing collaboration between the UK and Welsh governments, including an ongoing £20 million project addressing soil phosphorus levels through the Land Use for Net Zero, People and Nature programme.

    This new research will support wider government planning on water quality, nature recovery and farming regulation by identifying effective interventions that can be implemented at a landscape scale.

    Minister’s visit to Wales is the latest in a series of visits this week by the Environment Secretary and Water Minister Emma Hardy to iconic water sites across England and Wales as part of the ‘Things Can Only Get Cleaner’ tour, to see where investment in water infrastructure will underpin the building of new homes, create jobs and turbocharge local economies – a cornerstone of the government’s Plan for Change.

  • PRESS RELEASE : The UK unequivocally condemns the Taliban’s ban on girls’ education in Afghanistan – UK statement at the UN Security Council [March 2025]

    PRESS RELEASE : The UK unequivocally condemns the Taliban’s ban on girls’ education in Afghanistan – UK statement at the UN Security Council [March 2025]

    The press release issued by the Foreign Office on 10 March 2025.

    Statement by Ambassador James Kariuki, UK Deputy Permanent Representative to the UN, at the UN Security Council meeting on Afghanistan.

    Let me begin by commending UNAMA for their invaluable work supporting the people of Afghanistan.

    This is remains vital whilst Afghans – especially women and girls – continue to suffer under a series of oppressive restrictions.

    At the time, members of the Taliban claimed that the March 2022 ban on secondary education for girls was temporary.

    Almost three years on, girls in Afghanistan continue to be denied their right to education.

    On the opening day of the Commission on the Status of Women, the United Kingdom joins others in unequivocally condemning this ban and all others which restrict Afghan women and girls’ rights and fundamental freedoms.

    We strongly urge their immediate reversal, and we support greater accountability efforts, including the referral of Afghanistan to the International Court of Justice for violations of the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW).

    President, the Taliban face a choice – if they want to be integrated into the international community then they must adhere to their international obligations including on human rights, political inclusion, and counter terrorism.

    This is clearly laid out in the Special Coordinator’s Independent Assessment and Security Council resolution 2721 (2023).

    The UK, with other members of the international community, has engaged constructively with the UN-led process, including through the Doha meetings and working groups on counternarcotics and the private sector.

    But continued engagement is not guaranteed without reciprocity and commitment from the Taliban in return.

    We welcome the continued efforts of UNAMA and the UN’s good offices towards this end and encourage further dialogue between all relevant Afghan political actors and stakeholders, in line with relevant Security Council resolutions and in support of the people of Afghanistan, especially its women and girls.

    Thank you.