Tag: 2025

  • PRESS RELEASE : Chancellor delivers security and national renewal for Northern Ireland in new era of global change [March 2025]

    PRESS RELEASE : Chancellor delivers security and national renewal for Northern Ireland in new era of global change [March 2025]

    The press release issued by HM Treasury on 26 March 2025.

    The UK Chancellor delivered the Spring Statement today.

    • Chancellor vows to bring about “new era of security and national renewal” as she delivered a Spring Statement to kickstart economic growth, protect working people and keep Britain safe.
    • People across the UK to be on average £500 a year better off by the end of this parliament compared to under the previous government, putting more money in people’s pockets.
    • Growth at the heart of Plan for Change as £13 billion of additional capital spend allocated alongside £2.2 billion defence funding boost next year will get Britain building.

    People across the UK will be on average £500 better off from 2029, relative to OBR’s autumn forecast, helping to deliver the Plan for Change as the Chancellor today (Wednesday 26 March) announced a Spring Statement to grasp the opportunities in a changing world.

    The OBR also confirmed that the UK economy is expected to grow faster than expected from 2026 and will be larger by 2029 compared to its autumn forecast – up to 9.5% compared to 9.2%.

    The Chancellor also set out how the government is protecting national security and maximising the growth potential of the UK defence sector by confirming a £2.2 billion increase in the UK-wide defence budget in 2025-26.

    The Spring Statement delivers UK Government spending plans focused on its core objectives, bringing security and stability for working people across the UK.

    It follows the Budget in the autumn where the Chancellor announced that the Northern Ireland Executive will be provided with an £18.2 billion settlement in 2025/26 – the largest in real terms in the history of devolution. This includes an additional £1.5 billion through the Barnett formula, with £1.2 billion for day-to-day spending and £270 million for capital investment.

    The measures taken today top these Barnett consequentials up by a further £14 million in 2025/26. The Northern Ireland Executive are receiving over 24% more per person than equivalent UK Government spending in the rest of the UK, including the 2024 restoration financial package.

    The Northern Ireland Executive’s block grant funding from 2026-27 onwards will be confirmed at Phase 2 of the Spending Review, which concludes on 11 June 2025. The Chief Secretary to the Treasury will meet with his counterparts from the devolved governments to discuss their priorities ahead of its conclusion.

    Secretary of State for Northern Ireland Hilary Benn said:  

    I welcome the fact that Northern Ireland will receive a £14 million boost in Barnett consequentials as a result of today’s announcements, building on the record £18.2 billion settlement which was confirmed by the UK Government last Autumn.

    This also follows a  £235 million package to transform public services in Northern Ireland, which will support the transformation of key public services which make a real impact on people’s lives, including health, education, planning and justice.

    Importantly, today’s announcement reinforces the economic growth potential of the UK defence sector, and follows  the Prime Minister’s announcement of a £1.6bn deal to provide air defence missiles for Ukraine, which will create 200 jobs in Northern Ireland and demonstrates the strength of the local defence industry.

    From next week, working people across Northern Ireland and the UK will also benefit from an increase to the National Living Wage, putting more money into the pockets of hard-working people.

    And the UK Government continues to provide support  across Northern Ireland through City and Growth deal packages, having confirmed the Mid-South West and Causeway Coast and Glens City deal last year.

    Taken together, these measures will foster growth in Northern Ireland, creating jobs, supporting public services, and boosting the quality of life for local people.”

    Growth

    Kickstarting economic growth is the number one mission of this government, putting more money in people’s pockets.

    The UK Government has already made considerable progress on growth in Northern Ireland, including confirming the Mid-South West and Causeway Coast and Glens City deal. Earlier this month, the Prime Minister also announced a £1.6bn deal to provide air defence missiles for Ukraine, which will create 200 jobs in Northern Ireland. In February we launched Intertrade UK which will advise on how businesses can take advantage of the full opportunities of the UK internal market.

    The actions of this government across the Autumn Budget and Spring Statement, if sustained, lead to a 0.6% rise in the level of real GDP by 2034-25.

    The OBR concluded that the stability rule is met by £9.9 billion and the investment rule is met by £15.1 billion. Both rules are met two years early, meaning from 2027-28 the government is only borrowing for investment and net financial debt is falling.

    The government is not satisfied with short-term growth figures, and is going further and faster today to improve this.

    The Chancellor has announced a further £13 billion of capital investment over the Parliament to go further on growth, on top of the £100 billion uplift announced at Autumn Budget. This will deliver the projects needed to catalyse private investment, boost growth and drive forward the UK’s modern industrial strategy.

    Taken together, this greater capital investment more than offsets the modest savings on day-to-day spending and means the total departmental spending will increase over the next five years, when compared with plans in the Autumn.

    Defence

    The world is changing before our eyes, reshaped by global instability, including Russian aggression in Ukraine. Europe is facing a once-in-a-generation moment for its collective security, with conflicts overseas undermining security and prosperity at home.

    A month ago, the Prime Minister announced the biggest sustained increase in defence spending since the Cold War as a result of the changing global picture, now reaching 2.5% of GDP by April 2027, and with an ambition to reach 3% in the next Parliament subject to economic and fiscal conditions.

    We are going further and faster to protect our national security and maximise the economic growth potential of the UK defence sector.

    • Increasing the defence budget by £2.2 billion in 2025-26, taking additional spending on defence to over £5 billion since the Autumn Budget.
    • This raises spending on defence to 2.36% next year and will be invested in fitting Royal Navy ships with Directed Energy Weapons five years earlier than planned, providing better homes for military families and modernising His Majesty’s Naval Base Portsmouth.
    • Setting a minimum 10 percent ringfence for equipment spending on emerging technologies like drones and autonomous systems, dual-use technology, and AI-powered capabilities, so that British troops have the tools they need to fight and win in modern warfare.
    • Getting this new tech into the hands of our armed forces quicker by cutting away bureaucracy, with a new UK Defence Innovation unit within the Ministry of Defence spearheading efforts to identify promising technology and ensure these get to the frontline at speed, while also bolstering the UK tech sector and crowding in private investment.
    • Creating bespoke procurement processes for different types of military equipment, learning lessons from our rapid support for Ukraine to drive faster timescale targets for operationalising new tanks, aircraft and other essential tools for modern warfare.
    • This government is determined to transform the defence sector into an engine for growth by focusing this investment on where it boosts the productive capacity of the economy such as investment in innovation and novel technologies. As a result of the increase in defence spending to 2.5%, the government estimates this could lead to around 0.3% higher GDP in the long run, equivalent to around £11 billion of GDP in today’s money.
    • The government’s investment in defence will also support its number one mission to deliver economic growth. UK citizens will be protected from threats at home whilst creating a stable environment in which businesses can thrive, and supporting highly skilled jobs and apprenticeships across the whole of the UK.

    Reform

    The UK Government is determined to make the public sector more productive and to improve services for working people. But the changing world means we need to go further and faster to ensure we can deliver the public services that working people care most about.

    The government has shown its commitment to taking the difficult decisions required to drive efficiencies and reform the state – reducing bureaucratic inefficiencies and duplication; and driving out wasteful government spend through cancelling thousands of government credit cards.

    Getting more people into jobs is also central to the government’s growth mission. The broken welfare system is letting people down by asking them to prove what they can’t do, rather than focusing on what they could do with the right support – trapping people due to fear of trying work, lack of support and poor financial incentives.

    The Chancellor has confirmed the creation of a £3.25 billion Transformation Fund to support the fundamental reform of public services, seize the opportunities of digital technology and Artificial Intelligence (AI), and transform frontline delivery to release savings for taxpayers over the long-term.

    The UK Government provided £235 million to transform public services in Northern Ireland as part of the £3.3 billion restoration package for the Executive. This month we agreed to allocate £129 million of that funding to projects across several priority public services including health, education, planning and justice. The funding will see £61 million go towards expanding the multi-disciplinary teams in GP clinics across Northern Ireland, and support five other projects across justice, special education and infrastructure which represent key priorities in the Executive’s Programme for Government.

    Looking Forward

    This Spring Statement builds on the Autumn Budget and the decisions taken since required to deliver stability to the British economy and kickstart economic growth.

    The government will set out its plans for spending and key public sector reforms at the Spending Review which will conclude on 11 June 2025.

    Notes to editors

    • Government calculations for the long-run impacts of higher defence spending are based on estimates from Antolin-Diaz and Surico (2025), forthcoming in the American Economic Review (AER), of the GDP impact of higher defence spending on GDP. Their estimates of the GDP multiplier stabilise after ten years at around 1.6, which is assumed to reflect an appropriate long-run multiplier for potential output, as any demand-side effects are likely to have dissipated at the ten-year horizon.
    • Defence spending as a share of GDP is set to rise from 2.3% to 2.5%, an increase of 0.2 percentage points. Applying an elasticity of 1.6 to this change implies a long-run increase in the level of potential output of approximately 0.3%. A long-run increase to the level of potential output of 0.3% is equivalent to around £11 billion of GDP in the long run, in today’s prices.
  • PRESS RELEASE : We must have enduring peace in Ukraine, which ensures Ukraine’s future security and upholds the UN Charter – UK statement at the UN Security Council [March 2025]

    PRESS RELEASE : We must have enduring peace in Ukraine, which ensures Ukraine’s future security and upholds the UN Charter – UK statement at the UN Security Council [March 2025]

    The press release issued by the Foreign Office on 26 March 2025.

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

    I would like to start by thanking Assistant Secretary-General Joyce Msuya for the briefing today.

    Colleagues, last month marked three years since President Putin launched his illegal and unprovoked full-scale invasion of Ukraine.

    The invasion displaced over 10 million people. Today, 12.7 million remain in need of urgent humanitarian support.

    The suffering caused by Russian forces is well known to this Council: war crimes, torture of civilians and prisoners of war, mass killings, the forced deportation of thousands of children, the forced cleansing and Russification of areas under their illegal control.

    It is a shocking record for any state, let alone a Permanent Member of the Security Council.

    In recent weeks, Russian drone and missile attacks have intensified nationwide, with daily reports of damage to residential areas and civilian infrastructure across multiple Oblasts.

    According to the UN Human Rights Monitoring Mechanism of Ukraine, in one attack which took place on 7 March, two ballistic missiles hit a residential area in Donetsk Oblast killing 11 people and destroying homes.

    Emergency responders who arrived to treat the wounded were then targeted by further strikes.

    This has to stop.

    The UK is clear that we want to see an end to the fighting and to the killing. We must have enduring peace in Ukraine.

    Putin could bring about peace tomorrow by withdrawing his forces and ending his illegal invasion.

    President, we welcome US efforts towards just and lasting peace. And we welcome President Zelenskyy’s clear commitment to peace and readiness to move quickly towards a comprehensive and lasting settlement.

    In agreeing to a full, immediate and unconditional ceasefire, Ukraine has shown that it is the party of peace.

    Russia must now agree to this without further delay.

    Ukraine’s humanitarian needs are immense, and the UK will continue to do what we can in support.

    To date, we have committed £477 million in humanitarian support to Ukraine, providing its people with food, water, shelter, and medical care, alongside support to safeguard the rights, dignity, and well-being of civilians.

    We repeat our call on Russia to end its brutal war, withdraw from Ukrainian territory within its internationally recognised borders.

    Until that day comes, the UK will continue to work with Ukraine and our international partners to achieve a just and lasting peace, which ensures Ukraine’s future security and upholds the core principles of the United Nations Charter.

  • PRESS RELEASE : UK is absolutely committed to securing a just and lasting peace in Ukraine – UK Statement to the OSCE [March 2025]

    PRESS RELEASE : UK is absolutely committed to securing a just and lasting peace in Ukraine – UK Statement to the OSCE [March 2025]

    The press release issued by the Foreign Office on 26 March 2025.

    Politico-Military Counsellor, Ankur Narayan, commends Ukraine as the party of peace for proposing a full, immediate and unconditional ceasefire – and urges Russia to agree to this without further delay.

    Thank you, Mr Chair. Our Helsinki Final Act commitments include sovereignty, territorial integrity and the non-violability of borders. As per the first line of the Helsinki Final Act, these principles are designed to protect “true and lasting peace” in our region. This is why we remain unwavering in our support for Ukraine defending its territorial integrity, its right to exist, its sovereignty, and its independence.

    We welcome the progress President Trump has made towards a ceasefire in Ukraine and in negotiations with Russia and Ukraine. We are in close contact with US and Ukraine following the conclusion of talks in Riyadh yesterday. President Zelenskyy has already shown Ukraine is the party of peace by proposing a full, immediate and unconditional ceasefire.  We hope that President Putin will agree to this without further delay.

    Any lasting peace must ensure Ukraine’s sovereignty and security – in line with the Helsinki Final Act and the UN Charter. With robust security arrangements to ensure Russia is never able to invade again. The UK will play its full part – and is already taking a leading role, alongside France, to build a coalition of the willing to support Ukraine’s future security.

    Over the last week, Russia has continued to launch brutal attacks that cause daily suffering for innocent Ukrainians. The drone strike on Kyiv on March 23rd exemplifies another horrific assault, tragically killing a 5-year-old girl and severely injuring ten others. A Russian missile strike on Sumy in northeastern Ukraine injured 88 people, including 17 children. In Donetsk, Russian shelling over the past three days across the eastern Oblast province has resulted in the deaths of seven civilians. We must emphasise the need for accountability for these actions and renew our commitment to collaborating towards achieving enduring peace.

    Mr Chair, we are absolutely committed to securing a just and lasting peace in Ukraine and are engaging with key allies in support of this effort. A just and lasting peace is vital for Ukraine and for wider Euro-Atlantic and international security and prosperity.

  • Keir Starmer – 2025 Statement on Talks in Saudi Arabia

    Keir Starmer – 2025 Statement on Talks in Saudi Arabia

    The statement made by Keir Starmer, the Prime Minister, on 12 March 2025.

    I warmly welcome the agreement today in Jeddah and congratulate President Trump and President Zelenskyy for this remarkable breakthrough.

    This is an important moment for peace in Ukraine and we now all need to redouble our efforts to get to a lasting and secure peace as soon as possible.

    As both American and Ukrainian delegations have said, the ball is now in the Russian court. Russia must now agree to a ceasefire and an end to the fighting too.

    I will be convening leaders this Saturday to discuss next steps. We are ready to help bring an end to this war in a just and permanent way that allows Ukraine to enjoy its freedom.

  • PRESS RELEASE : Economic growth propelled by law tech funding boost [March 2025]

    PRESS RELEASE : Economic growth propelled by law tech funding boost [March 2025]

    The press release issued by the Ministry of Justice on 12 March 2025.

    Greater use of AI and technology in legal services will spur economic growth thanks to a new Government investment as part of the Plan for Change today (12 March 2025).

    • £1.5 million investment for LawtechUK to reinforce UK’s global advantage
    • Hundreds of businesses boosted thanks to Government’s Plan for Change
    • New funding to drive economic growth and create new jobs

    Greater use of AI and technology in legal services will spur economic growth thanks to a new Government investment as part of the Plan for Change today (12 March 2025).

    The £1.5m funding boost announced by Justice Minister Sarah Sackman will help further the UK’s leading position in the international legal services market.

    In a speech to legal professionals she announced the LawtechUK programme will receive a £1.5m investment which will help startups to attract further private investment.

    Since 2023, LawtechUK has directly supported over 176 startups to grow and the legal services sector is now estimated to provide over 300,000 jobs in the UK. Their activity connects businesses with investors, builds relationships between technology companies and law firms, and offers showcasing opportunities at key international and domestic events.

    One recent example is Lexverify which created an advanced AI tool that helps saves lawyers time and money by providing real-time risk prevention for legal, compliance, and cybersecurity issues.

    Courts and Legal Services Minister, Sarah Sackman KC MP, said:

    Britain is leading the world in Lawtech. We are innovating and making legal services faster, cheaper and more accessible. Our Lawtech sector is changing how we work, and opening up access to justice for working people, at lower costs.

    Lawtech is powering the future of the UK economy by helping people resolve disputes faster.

    Lawtech UK is a government-backed initiative to drive digital transformation in the legal services industry, which is already worth £37 billion to the UK economy every year.

    Since 2019, £6 million has been invested in the programme, supporting the lawtech sector’s rapid growth as it attracts record private investment of over £139 million and transforms how legal services are delivered. Another LawTechUK beneficiary, Office and Dragons, developed software that eliminates wasted time on repetitive legal tasks, achieving over 85%-time savings on administrative work.

    Over half of the participants in LawtechUK’s education programmes come from outside London and the South-East, ensuring the benefits of legal technology reach across the country.

    The Ministry of Justice also delivers the GREAT Legal Services campaign which promotes the strength of UK legal services and the UK as a legal centre to the global market.

    The campaign showcases UK lawtech companies internationally and helps build relationships with potential business partners. It has taken delegations of UK firms to take part in events in the US, Australia and Singapore, and will be returning to the US later this month for a programme of activity around the Legalweek conference in New York and Chicago.

    Since April 1, 2023, LawTechUK has been delivered by CodeBase and Legal Geek.

    Jon Hope, SVP at CodeBase, said:

    Building on the success of the past two years, we are excited to extend LawtechUK into its third year.

    Together with our delivery partners, Legal Geek, we remain committed to driving innovation and transformation in the legal industry.

    We are proud of the impact LawtechUK has already made and look forward to continuing to shape the future of the legal sector.

    Beth Fellner, Director at Legal Geek, said:

    Legal Geek and our delivery partner, CodeBase, have delivered a high impact programme of activity over the last two years.

    We are ready to build on this work during a third year and continue to drive digital transformation in the legal sector across the UK.

  • PRESS RELEASE : Australia’s WTO Trade Policy Review – UK Statement [March 2025]

    PRESS RELEASE : Australia’s WTO Trade Policy Review – UK Statement [March 2025]

    The press release issued by the Foreign Office on 12 March 2025.

    UK Statement at Australia’s World Trade Organization Trade Policy Review. Delivered by the UK’s Permanent Representative to the WTO and UN, Simon Manley.

    Thank you very much Chair. Let me join others in offering a very warm welcome to the Acting First Assistant Secretary and his team here in Geneva and Ambassador Baxter. We are very grateful to Australia and to the WTO Secretariat for their reports, and to you Chair and to the Discussant for your insights.

    Chair, it would have not escaped your notice that Australia is one of the closest allies and our relationship continues to go from strength to strength, underpinned by the strong security, trade and investment links, close personal ties – and of course our mutual passion for cricket, Kylie Minogue and indeed Neighbours. We are both members of the Commonwealth, the G20, the OECD, and, with thanks to Australia’s recent ratification of the UK’s accession, the CPTPP. We share a similar outlook, as reflected in the First Assistant Secretary’s comments this morning, driven by the pursuit of open, values-based democracy and a rules-based international system.

    Bilateral Trade

    We have a consistently strong economic relationship: bilateral trade worth £22 billion each year and mutual investment in excess of £800 billion. And our trade relations have been clearly furthered by the UK-Australia Free Trade Agreement, which was referred to this morning. That deal eliminates tariffs on the vast majority of bilateral trade, makes it easier to travel between our two countries and guarantees an equal footing for many of our investors and services providers. Our work together on that FTA resulted in, as we look upon, as a modern and comprehensive trade agreement between our countries, which provides, we hope, a strong basis for our trade and bilateral relationship with Australia, and also to the growth of our relations in the future.

    Chair, I would like to highlight the progress we have made through the Strategic Innovation Dialogue to highlight one of our successes, found in the world’s first Innovation Chapter in a Free Trade Agreement. Discussions focusing on key areas such as Future Health, Offshore Wind, Battery Manufacturing and the Interoperability of AI enabled goods, have been channelled through a joint-work programme, that brings together representatives from government, the private sector and academia to explore the impact of innovation on trade and trade policy.

    And our shared values include our joint recognition of animals as sentient beings and the connection between improved welfare of farmed animals and sustainable food production systems. Together, we established a world-leading precedent for a standalone animal welfare chapter in a Free Trade Agreement, which sets out our commitment to sharing expertise, to improve practices, through an Animal Welfare Working Group.

    And as part of that FTA, we have agreed to deepen cooperation to advance gender equality and the human rights of all women and girls, including through a strategic dialogue on gender equality. That marks, I believe, Australia’s first FTA to feature a dedicated chapter on gender equality, and that chapter complements provisions which advance gender equality throughout the Agreement in the chapters on Labour, SMEs, Digital and Financial Services.

    As a Co-Chair of the Informal Working Group on Trade and Gender, I would like to welcome and pay tribute to Australia’s role as a founding member of the IWG and their active engagement in that Group. And indeed Australia was amongst the five winners of our first International Prize on Gender Equality in Trade, with a programme which is having a transformative impact for advancing women’s economic empowerment across Southeast Asia. Thank you and congratulations for that.

    Economic Security

    Chair, our strong, allied collaboration extends to our shared priorities of upholding international rules and deterring hostile actions. We recently held a second UK-Australia Economic Security Dialogue, which champions our joint work on this matter, aiming to deepen our shared understanding of the current global economic security challenges and to share lessons on approaches and partnerships to strengthen our economic security and our bilateral partnership.

    For us, for both of us, a rules-based international order and open global economy are fundamental; fundamental to our economic and national security and to our customers, our workers and our businesses so they can continue to enjoy the benefits of the multilateral trading system. International trade plays a central role in both our economies, with trade activity supporting one in four trade jobs I believe in Australia, and we applaud Australia’s focus on building economic resilience and challenging unfair trading practices to support global growth.

    Climate Leadership

    Chair, Australia’s increased ambition on climate policy over the last three years extends well beyond this organisation. We are delighted to endorse Australia’s bid to host COP31 in partnership with other Pacific Nations. And we welcome the Australian government’s Net Zero Plan, including increased investment in renewables and the phasing out of coal-powered electricity generation, and we look forward to sharing our knowledge on emerging sectors like offshore wind or carbon capture and storage.

    Market Access Barriers

    Chair, our bilateral trade discussions also continue in FTA subcommittees including our Professional Services Working Group and Legal Services Regulatory Dialogue. So let me take the opportunity to celebrate recent bilateral agreements for architects and auditors. We also welcome Australia’s willingness to engage on mutual recognition of professional qualifications, to ensure successes such as these continue. Going forward, we would like to hear more from Australia on its ongoing priorities and approaches, including the efforts at State level.

    We also support Australia’s ongoing tax reforms which focus on prosperity, productivity and fairness, goals shared by my government. Regarding taxes, in the continued absence of a specific and satisfactory policy rationale, we would like to reiterate our concerns about domestic taxes which disproportionately affect imports, such as the Luxury Car Tax and Alcohol Excise Duty. We would like to hope Australians are able to treat themselves to Scotch Whisky and drive our luxury cars… but perhaps not at the same time.

    WTO

    Chair, the close ties between our two countries extend of course to this organisation where we work so closely alongside each other and share so many policy objectives. We work together, along with many developing and developed Members, to ensure the sustainability of fishing stocks and to enable the potential of trade in green goods and services.

    Australia has, as similarly many others have said this morning, demonstrated its commitment to this organisation and the system by consistently pushing forward concrete outcomes for businesses, for workers and consumers, as is evident in their enthusiastic leadership and participation in the WTO Joint Initiatives. Their efforts as co-convenors of the negotiations on the E-commerce Agreement highlight that and I think led to a large part of the successful stabilisation of that Agreement back in July last year.

    Australia’s strong ambitions on climate policy are showcased by the commitment to discussing Trade and Environment in this organisation. Their ambitions are underpinned by the efforts to foster dialogue on such issues in their co-coordinator role in the Dialogue on Plastics Pollution.

    As the Chair of the Cairns Group, Australia has been a loud, constructive voice in agriculture negotiations in this house, helping discussions progress, including through the Cairns and Africa Group informal discussions. While the UK and Australia don’t always agree on preferred outcomes in that area, our strong bond and shared focus on finding solutions brings us together when needed.

    Conclusion

    Chair, let me conclude by discussing how the relationship between Australia and the UK goes from strength to strength, and let me conclude on that same note. Our relationship has strengthened enormously in the past few years, and we admire Australia’s leadership in this organisation, its commitment to Net Zero, and its views on free and open trade. We continue to host a large, extraordinary number of each other’s citizens, enriching both our countries with vibrant exchanges, cherished memories, and of course Tim Tams and Penguins. And, as we look forward to the oldest and greatest rivalry in the sporting world, the Ashes, we can say, with utter confidence, let the best team win. Which of course will be England.

    Thank you, Chair.

  • PRESS RELEASE : New rules to prioritise recruiting care workers in England [March 2025]

    PRESS RELEASE : New rules to prioritise recruiting care workers in England [March 2025]

    The press release issued by the Home Office on 12 March 2025.

    Employers will be required to prioritise recruiting international care workers already in England before recruiting from overseas.

    The new rules were laid in Parliament today (12 March).

    From 9 April, care providers who want to recruit a new worker from overseas will have to first prove that they have attempted to recruit a worker from within England who needs new sponsorship. This ensures that those who came to the UK to pursue a career in adult social care can do so and will help end the reliance on overseas recruitment as we restore order to our immigration system through our Plan for Change.

    Significant work has been ongoing across government, in collaboration with the care sector, to ensure high standards across the immigration system, and to support care workers into alternative jobs when their sponsor has had their licence removed. Under our Plan for Change, we will set out a comprehensive plan to restore order to our broken immigration system, linking immigration, skills and visa systems to grow our domestic skills, end reliance on overseas labour and boost economic growth.

    As well as continuing to tackle exploitation, the government is also continuing its clampdown on abuse in the immigration system with changes to the Short-Term Student route.

    The visa is designed for those studying an English language course in the UK for between 6 and 11 months, however, there are rising concerns that the route is being abused by those without a genuine intention to study or to leave the UK at the end of their course. In light of this troubling trend, tough new rules will give expanded powers for caseworkers to refuse visa applications which are suspected of being non-genuine.

    Seema Malhotra, Minister for Migration and Citizenship, said:

    Those who have come to the UK to support our adult care sector should have the opportunity to do so, free from abuse and exploitation.

    We have already taken action to ensure employers are not able to flout the rules with little consequence or exploit international workers for costs they were always supposed to pay.

    We are now going further, requiring employers in England to prioritise recruiting international care workers who are already here and seeking new sponsorship, before recruiting from overseas.

    The new requirements continue government action announced in November to crack down on employers who abuse the visa system; barring those who repeatedly break immigration or employment laws from hiring overseas workers and will help support those workers into new jobs.

    The changes announced last year also ban companies from charging workers for the cost of their sponsorship, which has never been intended and led to exploitation, unfair treatment of staff and unsustainable levels of debt in the care sector.

    Between July 2022 and December 2024, the government has revoked more than 470 sponsor licences in the care sector to clamp down on abuse and exploitation. More than 39,000 workers have been associated with these sponsors since October 2020.

    Changes announced today will also see the minimum salary thresholds updated to reflect the latest data from the Office for National Statistics (ONS). This will ensure those working on the Skilled Worker visa, including care workers, are paid a minimum of £12.82 per hour.

    Health and education occupations, including doctors, nurses, allied health professionals and teachers, will also see their minimum rates increased to reflect the latest national pay scales.

    Stephen Kinnock, Minister of State for Care, said:

    International care workers play a vital role in our social care workforce. We value their contribution and work supporting vulnerable people across the country every day.

    As we crack down on shameful rogue operators exploiting overseas workers here in the UK, we must do all we can to get the victims back into rewarding careers in adult social care.

    Prioritising care workers who are already in the UK will get people back to work reducing our reliance on international recruitment, and make sure our social care sector has the care professionals it needs.

    The rules come as the government continues implementation of a series of measures to reduce the potential for abuse on the Student and Graduate visa routes.

    Further details of the government’s plan to reduce the staggeringly high levels of legal migration seen in recent years will be set out in the government’s forthcoming Immigration White Paper.

  • PRESS RELEASE : Regulator axed as red tape is slashed to boost growth [March 2025]

    PRESS RELEASE : Regulator axed as red tape is slashed to boost growth [March 2025]

    The press release issued by 10 Downing Street on 11 March 2025.

    Regulation will be cut back as the Prime Minister sets out his latest steps to drive economic growth that puts more money in working people’s pockets.

    • Unnecessary regulation will be cut to boost growth that puts more money in working people’s pockets
    • Payment Systems Regulator abolished as part of efficiency drive
    • PM to set out how the Government is securing our future through the Plan for Change

    Regulation will be cut back as the Prime Minister sets out his latest steps to drive economic growth that puts more money in working people’s pockets.

    The Payment Systems Regulator (PSR) will be abolished as the latest step in reducing the burdens on business.

    The Government will set out further steps to reduce red tape in the coming days.

    A strong economy is at the heart of the Government’s plan to deliver security and renewal through the Plan for Change.

    The PSR – which looks after payment systems like Faster Payments and Mastercard – will mainly be consolidated into the Financial Conduct Authority, making it easier for firms to deal with one port of call.

    It follows complaints from businesses that the regulatory environment was too complex – with payment system firms having to engage with three different regulators, costing them time, money and resource.

    This has a greater impact on smaller businesses that are trying to scale and grow – as the costs are disproportionately higher for them.

    The Prime Minister wants to make regulation work for the UK – and this is the latest step in his drive to create an environment that will kickstart economic growth.

    It is only by creating growth that people will see a genuine increase in their living standards – with higher wages and more money in their pocket at the end of the month.

    Prime Minister, Keir Starmer said:

    For too long, the previous Government hid behind regulators – deferring decisions and allowing regulations to bloat and block meaningful growth in this country.

    And it has been working people who pay the price of this stagnation.

    This is the latest step in our efforts to kickstart economic growth, which is the only way we can fundamentally drive-up living standards and get more money in people’s pockets.

    That’s why it is the priority in the Plan for Change, and it’s why I’m not letting anything get in its way.

    Chancellor, Rachel Reeves, said:

    The regulatory system has become burdensome to the point of choking off innovation, investment and growth. We will free businesses from that stranglehold, delivering on our Plan for Change to kickstart economic growth and put more money into working people’s pockets.

    This builds on the Government’s deregulatory agenda, which has already:

    • Lifted the onshore wind ban at the stroke of a pen
    • Introduced the Planning and Infrastructure Bill
    • Launched the root and branch review of the water sector
    • Set financial services regulators on a growth agenda
    • Set up a review of all environmental regulation

    Today’s announcement does not result in any immediate changes to the Payment Systems Regulator’s remit or ongoing programme of work. The regulator will continue to have access to its statutory powers until legislation is passed by Parliament to enact these changes.

    In the interim period, the Payment Systems Regulator and the Financial Conduct Authority will work closely to deliver a smooth transition of responsibilities to ensure the market remains competitive.

    The entire regulatory landscape will continue to be reviewed and finessed as part of a wider Government effort to kickstart economic growth and make regulators work for the country, rather than block progress.

    This is the latest in a line of work to make regulators work for the country. It follows:

    • A speech from the Prime Minister at the International Investment Summit where he called on the regulatory regime to fit the modern age.
    • A letter from the Prime Minister, the Chancellor and the Business Secretary – calling on regulators to come up with at least five reforms each that will boost economic growth.
    • The Chancellor hauling in regulators in January to have these proposals scrutinised.
  • PRESS RELEASE : Cooperation between the EU and UN is more important now than ever – UK statement at the UN Security Council [March 2025]

    PRESS RELEASE : Cooperation between the EU and UN is more important now than ever – UK statement at the UN Security Council [March 2025]

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

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

    The United Kingdom welcomes the EU’s ongoing commitment to championing multilateralism, tackling global challenges and assisting the Security Council’s work.

    With multiple global crises threatening the foundations of international peace and security, cooperation between the EU and UN is more important now than ever.

    Nowhere is this truer than in Ukraine.

    Three years on from Russia’s brutal invasion, the EU continues its critical role in supporting Ukraine and countering Russian aggression.

    This includes its enhanced level of economic, humanitarian and military support to Ukraine, and willingness to further contribute to security guarantees.

    The UK will continue to work closely with the EU to ensure a just and lasting peace in Ukraine that secures its sovereignty and security.

    In the Western Balkans, the EU-facilitated Belgrade-Pristina Dialogue plays a vital role in normalising relations between Serbia and Kosovo, and EUFOR ALTHEA continues to help provide stability and security in Bosnia and Herzegovina.

    The UK continues to support the region’s Euro-Atlantic aspirations as a driver for reform and economic growth.

    Beyond Europe, the UK welcomes the EU’s commitment to stabilisation in the Middle East, including its efforts toward securing a two-state solution, where Israelis and Palestinians can live side by side in peace.

    EUBAM Rafah is a vital third-party presence, allowing individuals to access urgent medical care.

    The EU is also helping support an inclusive political transition and economic recovery in Syria, and we welcome its recent sanctions suspensions to this end.

    The EU is a valued partner for UN efforts to alleviate the humanitarian crisis in Sudan. We are pleased it is among the co-hosts of April’s Foreign Minister-level discussions in London, which will foster consensus on ending the conflict and improving humanitarian access.

    We also welcome the EU’s commitment of €60 million in new humanitarian aid in response to the recent eruption of conflict in the Eastern Democratic Republic of Congo.

    President, the UK looks forward to continuing to build on the UN’s ambitious and cooperative relationship with the EU to promote responsible multilateralism and to act as a force for good in the world.

  • Torsten Bell – 2025 Speech at the Pension and Lifetime Savings Association Conference

    Torsten Bell – 2025 Speech at the Pension and Lifetime Savings Association Conference

    The speech made by Torsten Bell, the Minister for Pensions, in Edinburgh on 11 March 2025.

    Thank you to the PLSA for the invitation to speak…

    …and for bringing us all to Edinburgh…

    …the city my first boss in politics, Alistair Darling, represented and loved.

    It is always a pleasure to come…

    …well almost always.

    Because it can trigger traumatic flashbacks.

    One stands out.

    Of a pre-dawn drive across from Glasgow back in 2014…

    …to accompany Alistair to the Andrew Marr show on the Sunday just days before the referendum.

    It’s not a great distance, nor is the traffic bad at 5am…

    ….but it felt like an eternity given the weight of events.

    Events that could have had seismic repercussions for the whole UK…

    …and for this city’s pensions, and financial services, industry.

    Whenever I hear partisans of Manchester and Birmingham compete over which is the UK’s second city…

    …I gently remind them that, when it comes to productivity, there’s no contest: it’s Edinburgh.

    I was also here last August for a rather more light-hearted kind of trauma.

    I was due to speak at the brilliant book festival…

    …and had plenty of time spare ahead of a 7pm event.

    Or at least I would have done, if it actually had a 7pm start…

    I was ambling under the castle when my team rang.

    There had been a mix-up and the event started at 6.

    It was 5.45.

    This was an event on a big, serious, topic: the UK’s economic stagnation.

    But rather than pondering that I now had a rather more practical question…

    …how fast can a newly elected MP walk, or run, up the hills of this city while retaining a shred of dignity in transit and upon arrival.

    Quite fast it turns out is the answer…

    …although opinions differ on much dignity was retained.

    This is all a long way of saying particularly thank you to the PLSA for organising today…

    …and sparing us any short notice changes to the schedule.

    So we can give pensions the unflustered attention it deserves.

    Today I want to step back to focus on the big picture…

    …of where our priorities must be as our defined contribution saving landscape matures…

    …and defined benefit schemes see their funding positions changed materially.

    On the former my big argument is we have to pay more attention to returns for savers…

    …rather than just to costs, or savings rates – important as both those are.

    Celebrating the success of auto-enrolment can no longer be a substitute for answering the harder question:

    What does the best landscape for those savings to be managed in look like?

    Both to maximise returns for savers…

    …and to ensure those savers live in a country that is investing and growing again after a long decade of economic stagnation

    Now, our view is that scale does matter.

    We want fewer, bigger, better pension schemes.

    That is already the direction of travel – for a whole host of reasons.

    We are merely providing extra wind into the consolidation processes’ sails.

    Of course, some smaller schemes deliver great value for money.

    But for the market as a whole, and savers on average, consolidation is desirable.

    Larger schemes are better placed to invest in more productive asset classes.

    This is a diversification as important as that of geography, which rightly gets so much attention.

    Scale also helps reduce costs – and increases bargaining power.

    That both can help provide the headroom for building investment capability…

    …or just better returns for members.

    Around the world we also see that scale matters for the nature of ownership.

    Only large pension schemes can provide active, engaged ownership…

    … of the kind that presses management not just on short term returns today but on whether they can deliver over the long term.

    Now, scale of course is an enabler of change, and it is very far from a silver bullet.

    One part of interlocking reforms.

    Including reforms to focus more on value, and less narrowly on cost or price.

    I’m grateful for the support there has been for the proposed value for money framework.

    It will help focus minds.

    Employers including any in the room today will have no excuse for ignoring what matters most to their employees.

    But we also need to focus on value in debates and, to be frank, in sales pitches.

    Now why do I focus on enabling productive investment?

    Because we do so little of it.

    DC pension funds allocate 3% to infrastructure and 0.5% to private equity.

    That compares to an 11% infrastructure allocation in Canada, and 5% to private equity in Australia.

    Every percentage point counts, or part of a percentage point matter when this investment can deliver not only returns for savers…

    …but also contribute to economic growth.

    and if you want a simple summary of the government’s economic strategy this is it:

    It’s time for Britain to start investing in its future again.

    Again, this shift to investing in a wider range of assets is again one we are encouraging rather than instigating.

    Many of you have told me about changes you are already delivering…

    …building new capacities or partnering with others.

    I want to acknowledge the work going on across the industry to realise this shift.

    And from learning from parts of the industry that have been doing this for decades.

    I particularly want to welcome the ambition to go further through voluntary commitments.

    This work is ongoing, under the leadership of the PLSA, City of London and the ABI…

    I want to thank them all for it…

    … I look forward to seeing the results in the coming weeks…

    …and will weigh them heavily as we finalise the Investment Review that Zoe talked about.

    Now everyone in this room, given you’ve signed up and I suspect will be here for three days, loves talking about pensions.

    But we all know, higher investment is about far more than pension reform.

    That’s why we encourage you to focus on how the overall strategy, how the pensions reform sit within that wider argument.

    It also requires a supply of investable propositions, not just the existence of capital.

    Across the board we are working to grow that pipeline and to make it more visible.

    In June we will set out our 10-year infrastructure strategy.

    The British Growth Partnership is there to help bring VC investment opportunities to pension funds.

    Our work with local and regional government will highlight investable propositions right across geographies.

    Investment propositions will also need to be visible in another sense…

    …they actually need to get built.

    We have already got back in the habit of swiftly granting permissions for the likes of solar farms and reservoirs.

    Permissions which previously policy makers seem to have decided Britain could do without.

    And today we’ve introduced the Planning Bill to make sure we do get homes and infrastructure built.

    If we’re going to invest once again…

    …we have to make it possible to build it once again.

    Now in many ways, elements of our approach build on the success of the Local Government Pension Scheme.

    At £400bn it is not just one of the world’s largest schemes in the world…

    …but one of the fastest growing, projected to reach £1 trillion by 2040.

    Now given that, we must reflect on what is working well, and what more we can do.

    One clear objective is reducing fragmentation.

    Minimum standards for asset pooling are an important step…

    …and again there is lots of progress underway.

    Thank you to those who have prepared pool transition proposals, all of which we have now received.

    A great deal of time and energy has clearly gone into them.

    We put the onus on the LGPS to come forward with creative and collaborative plans.

    And we are now considering if the proposals have met that ask.

    You have all asked for clarity as quickly as possible and I’m delighted to be meeting each and every pool in the coming weeks.

    And because it is important that concrete progress is made…

    …I am today confirming that we will plan to stick to the timeline of March 2026.

    The pooling project began 10 years ago.

    By this time next year, our world class LGPS will be made up of large pools of professionally managed capital…

    …accountable to Authorities via robust governance structures…

    …and delivering for members and their communities.

    On the Investment Review more generally, it will be finalised in the coming weeks.

    The final report will be all the better for the consultation responses we have received.

    It – and the wider changes promised in the Kings Speech – will form the basis of the Pensions Bill…

    …which I aim to introduce before the summer recess.

    That Bill brings me to the £1.2 trillion in DB schemes and the incredibly important role these schemes have to play.

    We know that the market is already innovating.

    Hence our commitment to legislate for a permanent regime for Superfunds.

    Today’s £160bn of surplus is a good ‘problem’ to have.

    Infinitely preferable to the previous problem: perma-deficits.

    Surplus flexibilities will allow more well-funded DB schemes to release resources back to business and scheme members.

    Where it is safe to do so.

    And where trustees agree.

    They are best placed to determine, in consultation with employers, the appropriate use of any surplus in their scheme.

    As an aside, some may want to examine the position of members with non-indexed pre-1997 accruals when considering the use of any surplus.

    I look forward to sharing more details with you in the response to our Options for DB schemes consultation this Spring.

    And we are considering proposals to allow the Pension Protection Fund greater flexibility to reduce the levy it collects from pension schemes, when it is not required.

    I recognise this can all sound like…. a lot.

    Especially given wider changes – dashboards and the rest.

    There are limits on any organisations ability to deliver.

    I take those constraints very seriously.

    Not everything that could be legislated for will be legislated for in the forthcoming Bill for exactly that reason.

    And we owe it to you to provide a clear roadmap of how these changes fit together.

    Now I want to end on the big picture, before my talk of capacity constraints exhausts your capacity to feign interest.

    It’s helpful to consider how “the pension problem” has changed.

    Not over recent months which is too often the focus but recent decades.

    Now here’s an overly simplistic view, but still a useful one, is as follows.

    The 1990s pension problem was this:

    How do we run pension schemes, and regulate them, to cope with the danger that some employers go bust – leaving employees without the pensions they were promised?

    That is a problem regulation, and more recently a good dose of luck, helped answer.

    The problem of the 2000s was different:

    How do we deal with the disaster that swathes of people no longer build up any pension savings, never mind any firm pension promises?

    Again, policy provided an answer in the form of automatic enrolment.

    In both cases solutions were found and that should give us confidence for our own challenges today.

    But in both cases we took too long to find them.

    Innovation in face of a chronic problem, rather than a crisis is not easy….

    …for policy makers, or anyone else working in this area

    What is today’s problem?

    The consensus is just to say adequacy, due to insufficient savings.

    I agree, the levels of contribution is an issue but I’d put the problem slightly differently.

    Today’s problem is how do we deliver higher returns for savers, so they can have a decent standard of living in retirement without asking any more than is necessary of their standard of living in the here and now.

    Or asking them to become a pensions expert – which is your job.

    Getting absolutely the best value for savers is the priority to any wider debate on savings levels.

    That’s why phase 1 of the pensions review on the landscape, and the pensions Bill that will help reduce costs in the system and put decumulation on a firmer footing, must come before phase 2 on adequacy.

    The damage done by poor returns – including during decumulation – maybe feels less binary and catastrophic than the risk of Maxwell style broken promises…

    …but it’s a mistake to underestimate its impact on savers, which can in some cases be just as great.

    So that is today’s exam question.

    We are making good progress.

    And I look forward to answering it…

    …with all of you over the months and years to come.

    Thank you very much.