Tag: Business and Trade Department

The press release issued by the Department for Business and Trade on 17 June 2026.

Businesses to start preparations for historic UK-India trade deal worth £4.8bn to enter into force next month.

• Milestone trade deal with India to come into effect next month, marking quickest ever turnaround following signature
• Businesses encouraged to prepare for entry-into-force to feel the benefits of massive tariff cuts
• UK agreement will be the most comprehensive trade deal India has ever brought into force

The UK and India have today (Wednesday 17th June) announced their landmark trade deal will enter into force next month so working people and businesses can benefit.

Businesses, who now have 28 days to prepare for the entry-into-force, will be able to trade under its terms from July 15th, following strenuous efforts to prepare UK and Indian systems. 

The deal, which is the most comprehensive ever agreed by India, will boost UK GDP by £4.8bn, real wages by £2.2bn and bilateral trade by £25.5bn every year in the long run.

Industries across the United Kingdom will benefit, with whisky tariffs cut from 150% to 40%, automotives from 100% to 10% under a quota and cosmetics will see tariffs of up to 22% eliminated either from day one or after 10 years.

Business and Trade Secretary Peter Kyle said: 

“We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone. 

“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared to allow them to sell to India’s huge market in the years to come.

“This week our UK-India Roadshow will begin travelling across all four nations to promote the incredible new opportunities this deal offers.”

India has never implemented a deal of this size, meaning the UK will have an immediate competitive advantage over other markets.

The UK will cut tariffs on Indian goods coming into the country such as clothes, footwear, and some food products. Less cost for British businesses importing Indian products could mean cheaper prices and more choice for consumers across the country.

We have extended the benefit for UK nationals moving to India to work and continue to build entitlement to a UK State Pension from 36 months to 60 months. They will continue to pay National Insurance Contributions during that period, without also having to pay social security contributions in India.

This is reciprocal for both British and Indian professionals and will be applicable to highly skilled professionals on pre-existing visa routes. This is in line with our arrangements with other countries such as Korea, Japan, and Canada.

This will be achieved through the UK-India Double Contributions Convention Agreement, which will enter into force at the same time as the UK-India FTA.

To benefit from the tariff reductions, businesses must register with HMRC. We would now encourage businesses to use the next 28 days to register and ensure they are fully prepared to reap the benefits of this deal.

The press release issued by the Department for Business and Trade on 11 June 2026.

Ministers from the UK and New Zealand make joint statement on the New Zealand-United Kingdom Free Trade Agreement.

This Joint Statement follows the meeting of the Minister for Trade and Investment of New Zealand and Secretary of State for Business and Trade of the United Kingdom on 1 June 2026. 

At their meeting, the Ministers opened the third Joint Committee of the New Zealand-United Kingdom Free Trade Agreement (FTA) and reaffirmed the strength of the New Zealand–United Kingdom trade relationship which reached a record £4.0bn or NZ$7.4bn of trade in goods and services in 2025. 

They noted this reflects the strength of the FTA, which celebrated three years since its entry into force on 31 May 2023, and its continued delivery of tangible benefits to businesses and consumers. 

In 2025, £675.1m or NZ$1,529.6m of traded goods successfully used preferential tariffs; i.e. around 91.5% of goods traded between the UK and New Zealand made use of preferences where one was available. High utilisation of preferential tariffs shows businesses are taking full advantage of the benefits of the FTA – reducing costs, improving market competitiveness and supporting trade growth.  

Between Jan and Dec 2025: 

• 88.5% of goods imports into New Zealand from the UK used preferential tariffs. Had this trade occurred at standard Most Favoured Nation (MFN) tariff rates, it could have encountered an additional £7.9m or NZ$17.9m in duties. 
• 92.4% of goods imports into the UK from New Zealand used preferential tariffs. Had this trade occurred at standard MFN tariff rates, it could have encountered an additional £98.4m or NZ$222.9m in duties. 

Ministers noted continued progress under the FTA and ongoing cooperation across its breadth. 

They welcomed advancements on a tariff rate quota data sharing arrangement between the New Zealand Meat Board and HM Revenue and Customs and noted the Joint Understanding reached by the UK and New Zealand on improving the terms of trade for dealcoholised and partially dealcoholised wines and committing to make as much progress as possible towards a mutually satisfactory outcome over the next year. Ministers also welcomed significant progress on the review of the digital chapter and look forward to concluding discussions and agreeing an outcome that supports shared ambitions for digital trade growth.  

They agreed that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) strengthens connections between the UK, New Zealand, and other Parties to the Agreement. Ministers reaffirmed their commitment to the CPTPP’s expansion via the accession of economies able to meet the Agreement’s high standards, the upgrading of the Agreement to ensure it remains of a high quality, and expanding the reach of the Agreement through the CPTPP-EU and CPTPP-ASEAN Dialogues to facilitate trade and support the international trading system. 

In an increasingly uncertain global environment, the Ministers underscored that open and rules-based trade is central to prosperity and economic security, and reaffirmed their commitment to defend, strengthen, and modernise the rules-based multilateral trading system.  

They reaffirmed the importance of a strong and effective World Trade Organization, at the core of the multilateral trading system, and the need to work together with urgency to progress, an inclusive and transparent WTO Reform agenda. 

Ministers noted the importance of advancing gender equality through trade. The UK announced its intention to begin the formal process to join the Global Trade and Gender Arrangement (GTAGA), underscoring the UK’s commitment to ensuring that international trade works for everyone. 

They welcomed the signing of a new bilateral Double Tax Agreement to better promote cross border trade and investment between the UK and New Zealand, by eliminating double taxation and improving certainty for taxpayers. 

Ministers committed to continued engagement to progress opportunities under the FTA and identified environment, inclusive, digital and services trade as priorities for further cooperation in the year ahead. 

The press release issued by the Department for Business and Trade on 10 June 2026.

The Business Secretary Peter Kyle is pleased to announce the appointment of Parminder Kohli as new Chief Executive Officer of the Office for Investment (OFI).

Parminder brings nearly three decades of senior leadership experience, including more than 20 years at Shell, where he has held a range of global roles across strategy, operations and commercial business lines.

He currently serves as Chair of Shell UK Ltd and Executive Vice President for Sustainability and Carbon, leading efforts to support the transition to a low-carbon economy and drive sustainable business transformation.

He has a strong track record of building high-performing organisations, delivering operational excellence, and fostering inclusive, diverse teams. Parminder has also been recognised for his leadership and advocacy, including being named in INvolve’s global lists of senior role models, and was appointed as a Social Mobility Commissioner by the UK Government in 2022.

In his new role, Parminder will be responsible for setting the strategic direction of OFI, ensuring delivery against its key priorities, and strengthening its position as a leader in its field. He will also focus on enhancing collaboration across government and with investors to support the UK’s growth mission.

Minister for Investment Lord Stockwood said:

I am delighted that Parminder Kohli will take up the role of Chief Executive Officer of the Office for Investment.

Parminder brings a wealth of senior leadership experience at a pivotal moment for our growth mission. Securing investment is essential to driving innovation, supporting regional growth, and creating lasting opportunities across the United Kingdom. I am confident that his expertise will play a key role in advancing these priorities and adding strength to an already brilliant team.

I look forward to working closely with Parminder to harness insights from across government and the private sector, strengthening our ability to drive growth through investment. Together, we will continue to foster a culture that values creativity, encourages collaboration, and delivers meaningful outcomes with continuity.

I am very pleased to welcome him to the team.

Commenting on his appointment, Parminder Kohli said:

The UK has extraordinary strengths in innovation, talent and enterprise. I am delighted to be joining the Office for Investment and look forward to working with investors, businesses and partners across government to attract investment that drives growth, creates opportunity and delivers prosperity across the United Kingdom.

Office for Investment Director General Ceri Smith said:

After nearly five years of working to attract investment into the UK, and the past 15 months radically transforming the Office for Investment into a unified and even more effective unit we are entering a new phase that calls for a CEO with a strong private-sector background who can take on a highly visible public leadership profile.

I look forward to welcoming Parminder as the new CEO and to working with him as he takes up the reins.

Parminder will start on 1 October 2026.

The press release issued by the Department for Business and Trade on 2 June 2026.

Changes to end one-sided flexibility and uncertainty for workers through ban on exploitative zero hours contracts set out in consultation.

• Changes will end one-sided flexibility, help people plan their finances and daily lives, or enjoy benefits of a zero hours contract if they wish to keep one.
• This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work.
• Millions of workers who currently face uncertainty over their weekly hours and earnings will benefit from government reforms that will give them certainty and predictability over their income.

Ministers have today taken the next step to ending exploitative zero hours contracts by launching a consultation to help deliver reforms to benefit more than 18 million people, some of whom currently face uncertainty over their weekly hours and earnings. 

Nearly six in ten of workers who have variable hours currently receive less than a week’s notice of their shifts, according to the Living Wage Foundation. That means millions of working people struggling to plan their lives and budgets. In the worst cases it means shifts cancelled the night before or even while people are already on their way to work.  

This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work. 

While those who value the flexibility of a zero hours contract will still be able to choose one, exploitative arrangements, where employers take all the flexibility and workers bear all the risk, will be banned.  

Workers, who qualify, will also be entitled to receive reasonable notice of their shifts and a payment if their shifts are cancelled, moved, or curtailed at short notice. This will stop workers travelling into work for shifts or arranging care for children and relatives, only for a shift to be cancelled at the last minute without pay. 

This open consultation, which will close at the end of August, will ask employers and workers about a range of potential hours thresholds to help the Government to strike the right balance between protecting workers from insecure work and retaining flexibility for businesses and workers who benefit from it, while building a more resilient economy and guarding against unintended consequences from this major change to the Labour market. 

Employers who already provide this security and predictability for their workers will benefit from a level playing field. These measures will help drive up standards and eliminate undercutting. 

Business Secretary Peter Kyle said: 

It’s not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest paid workers hundreds of pounds. 

Banning exploitative zero hours contracts is totemic because this government believes that people should be treated with dignity and respect at work.  

We’re consulting because we need to get the detail right to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market.

Employment Rights Minister Kate Dearden said:  

Ending uncertainty over hours and pay is one of the best ways we can boost living standards for millions of people and families across the country. 

These reforms put workers in the driving seat, giving those who want guaranteed hours the certainty they deserve, whilst protecting others who prefer the flexibility a zero hours contract offers.

Businesses can reduce staff turnover, improve skills, and boost productivity by improving job quality and workforce wellbeing by giving workers more security. This in turn can provide a boost to growth in the economy. 

The government wants to hear from workers, employers and other organisations to help shape the final detail of these reforms and ensure they work in practice. 

Niall Mackenzie, Acas Chief Executive, said: 

These reforms aim to end irresponsible use of zero hours contracts, with guaranteed hours for workers to help give them financial stability and security. Some workers may value the flexibility of a zero hours contract if they are being used fairly and responsibly and this consultation aims to get this balance right. 

I would encourage employers and workers to respond with evidence on what would work best in practice, alongside any further guidance that would be useful. Acas currently has free advice for employers on how to use zero hours contracts responsibly, which will be updated once these new changes come into effect.” 

Notes to Editors 

• The consultation has been published here and will close on 25th August 2026:  Make Work Pay: ending one-sided flexibility – reforms of zero hours and similar contracts – GOV.UK
• Living Wage Foundation data on variable hours workers receiving less than a week’s notice of shifts: Almost one-third of working adults given less than a week’s notice of working hours
• Right to guaranteed hours – Employers will be required to offer qualifying workers guaranteed hours reflecting the number of hours they work over reference period, which will be further set out in regulations. The Government is consulting on the length of the initial reference period with a Government preference of 12 weeks.  Qualifying workers will be able to reject an offer of guaranteed hours and remain on a zero hours contract if they wish.
• Right to reasonable notice of shifts – Employers will be required to provide eligible workers with reasonable notice of shifts. If an employer schedules shifts with unreasonable notice, the worker can bring a tribunal claim. The tribunal will decide whether the worker was given reasonable notice of the shift. The Government will use regulations to state how much notice should be ‘presumed reasonable’. This will be the tribunals’ starting point. The Government will also set out the factors the tribunals should look at when determining whether the notice was reasonable or not as part of this consultation.
• Right to payment for shifts cancelled, curtailed, or moved at short notice – Employers will be required to make payments to eligible workers if they cancel, move or curtail a shift at short notice.
• Please find below some scenarios which explain the benefits of the policy and how it could affect the lives of everyday workers. These examples are fictional and purely to assist with understanding the policy:
• Jordan from Middlesbrough is 24 and works as a warehouse operative on a zero hours contract. Some weeks he gets 35 hours, other weeks he gets none. The new reforms could give Jordan an opportunity to qualify for the right to guaranteed hours – a right intended to improve stability and certainty in working hours.
• Priya from Leicester is 38 and works in a hotel as a housekeeper. She relies on her zero hours contract as her main source of income, but her employer regularly cancels her shifts with less than 24 hours’ notice — sometimes after she’s already arranged childcare for her two children. When that happens, she doesn’t get paid, but she still has to cover the childcare cost. Under the new reforms, Priya could be entitled to a payment when shifts are cancelled at short notice, meaning she’s not bearing the full cost of the flexibilities her employer wants or needs.
• Amara from Wolverhampton is 32 and works through an agency for a care home while studying part-time for a nursing qualification. She is given very little notice of her shifts, which makes it almost impossible to plan her classes or coursework around her work schedule. She’s had to turn down shifts she could have worked — and miss lectures she wanted to attend — because of last-minute changes. The new reforms could give Amara reasonable notice of her shifts, helping her manage both her career and her studies without having to choose between them.
• Marcus from Bristol is 58 and works in a local shop on a zero hours contract, which suits him perfectly. Having taken early retirement from a full-time teaching role, he enjoys being able to pick up work when it suits him and turn it down when he wants time to travel or spend with his grandchildren. He’s now worried that reforms might force him onto a contract with set hours that would take away the flexibility he’s built his lifestyle around. In reality, Marcus will be able to stay on a zero hours contract if he chooses.

The press release issued by the Department for Business and Trade on 20 May 2026.

Wages and GDP to see boost as UK and Gulf strike historic multi-billion-pound trade deal.

• Deal could boost the UK economy by an estimated £3.7 billion every year and increase wages by £1.9 billion annually in the long run.  
• UK becomes the first G7 country to agree trade deal with the GCC, bolstering our partnership with a strategically vital region and securing economic resilience at home.  
• Deal removes tariffs on food exports, medical equipment and advanced manufacturing, plus first-of-its-kind GCC commitments on free flow of data. 

The UK could see a boost to growth and higher wages for decades to come after becoming the first G7 country to secure a trade deal with the Gulf Cooperation Council (GCC) today – strengthening our economic partnership with the region, supporting jobs in the long term, and bolstering domestic resilience. 

The announcement reflects the UK’s solidarity and long-term cooperation with its Gulf partners – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE – and our shared commitment to open trade, mutual prosperity, and long-term economic success.  

This will remove an estimated £580m in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented, with £360 million worth of this to be removed on day one of the agreement entering into force – as well as renewed certainty for services firms, making it easier for UK companies to expand and partner in the Gulf, and supporting high quality jobs for years to come.  

Many sectors including the food and drink sector are set to benefit from the deal once it enters into force. UK exports of cereals, cheddar cheese, chocolate and butter are just a few of the goods expected to become tariff-free, supporting British industry to grow.   

Today’s agreement marks a fifth agreement following major deals with India, the US, the EU and South Korea, as this Government continues to deliver the certainty and stability that businesses need to grow in tough times. 

Prime Minister Keir Starmer said: 

Today’s agreement is a huge win for British business, and for working people who will feel the benefits in the years ahead through higher wages and more opportunities. 

This government has now secured five major trade deals with international partners, delivering on our commitment to drive growth, support jobs and strengthen the UK economy. 

The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment.

The deal is estimated to add £3.7 billion to the UK economy every year in the long run when compared to 2040 projections and £1.9 billion in real wages, delivering for businesses and working people.

Business and Trade Secretary Peter Kyle said: 

I’m proud that the UK is the first G7 country to secure a modern and ambitious trade deal with the GCC – an important and growing set of markets.  

For this Government to meet the challenges that our country faces, incremental change won’t cut it. That’s why major trade deals like this one, and that we secured with India, the US, South Korea and the EU, are vital for moving the dial towards long-term, sustainable economic growth with benefits people and businesses can see and feel. 

At a time of increased instability, today’s announcement sends a clear signal of confidence – giving UK exporters the certainty they need to plan ahead and reinforcing the strength and stability of the UK’s trading relationship with the Gulf at a critical moment.

The UK autos industry alongside high street names like Holland & Barrett stand to gain significantly from the deal, through tariff reductions, stronger Intellectual Property protections and simplified customs processes. By reducing the burdens that create barriers to trade, it will give UK businesses a competitive edge. 

Anthony Houghton, Group Chief Executive Officer of Holland & Barrett, said: 

We welcome this landmark agreement, which deepens economic ties between our markets. The Gulf is strategically important for us, as we continue our growth journey and expand our international presence. 

Fair, reliable and low-barrier trading is essential for businesses to compete and expand internationally with confidence. This agreement provides that stability, supporting companies like ours to grow and serve customers across the region.

Chancellor of the Exchequer Rachel Reeves said:  

This agreement is good for jobs, good for industry and ultimately good for consumers, opening up a world of economic opportunity with a strategically important region.  

Our fifth trade deal since taking office, it’s proof we are backing British firms to compete and win globally, delivering growth, security and jobs, and that we have the right economic plan. 

UK services – which account for around 80% of the British economy and around half of the UK exports to GCC – will gain guaranteed market access under this deal. 

In 2024, there were over 400,000 business visits made from the UK to the Middle East so this deal will help British professionals including lawyers, engineers and consultants to travel more easily and stay longer in the region.  

Georges Elhedery, Group CEO, HSBC, said:

The GCC is a region of growing strategic importance and long-term opportunity, and one where HSBC’s heritage runs deep. The UK is one of our home markets and we have a presence in all six GCC states. We see first-hand the opportunity this agreement can unlock and stand ready to help deepen economic ties and support businesses to connect, invest and grow.

Anna Anthony, EY Regional Managing Partner UK and Ireland, said: 

The UK exported more than £17 billion in services to GCC countries last year, and this agreement should create even greater opportunities for UK professional services businesses in these high-growth markets. 

The agreement’s visa transparency and digital trade provisions will make it easier for UK professionals to deliver in-person and cross-border services, providing businesses with the clarity and confidence to compete in these markets. 

Delivering on key business asks, the deal will: 

• eliminate duties worth an estimated £580 million a year on UK goods exported to the GCC based on existing trade once fully implemented, giving consumers access to high-quality UK products.  
• remove an estimated £360 million duties on day one of the agreement entering into force, reducing costs for UK businesses and supporting supply chains. 
• create opportunities for companies producing iconic UK products – from butter and cheddar cheese to biscuits and chocolate – as the GCC imports over 80% of its food. 
• include the most ambitious commitments on customs procedures the GCC has ever signed up to, with customs cleared within 48 hours and shipments including perishable goods released in under 6 hours once all requirements are met. 
• lock in clarity and certainty for our services exporters, cementing their access to key markets. 
• cut red tape for business mobility, ensuring visa processes are fair, efficient, easier to navigate and increasingly digital. 
• enable UK companies to store and process data outside the region for the first time ever, which will save businesses money on setting up costly data centres in the Gulf. 
• unleash the power of international investment and ensure investments disputes are resolved fairly and transparently. Total bilateral investment was £18 billion in 2024 and supports critical infrastructure projects like Heathrow Airport. 
• align with the UK’s Industrial Strategy, supporting key high-growth sectors, including advanced manufacturing, clean energy, and digital technologies.  

This agreement, which could increase bilateral trade by 19.8%, is the latest in a series of major international deals the UK has struck with partners around the world to support businesses to export and grow, boost jobs and increase wages.  

When combined with the India trade deal, the agreements are estimated to add over £8 billion a year to UK GDP in the long run when compared to 2040 projections.  

The press release issued by the Department for Business and Trade on 21 May 2026.

Top Benefits of the UK-Gulf Cooperation Council (GCC) Free Trade Agreement.

This is a deal that: 

– Delivers growth and prosperity across the UK  

This Free Trade Agreement (FTA) delivers on the Government’s core mission to generate the economic growth that will put money in people’s pockets and raise living standards right across the UK, in line with the Government’s growth agenda. On its own, this deal is estimated to add £3.7 billion to our economy each year in the long run when compared to 2040 projections, and £1.9 billion a year to real wages. When combined with the India FTA, the two agreements are estimated to add over £8 billion a year to UK GDP when compared to 2040 projections. This is underpinned by an ambitious tariff‑cutting package which will eliminate duties worth an estimated £580 million a year on UK goods exported to the GCC based on existing trade once the deal is fully implemented. £360 million worth of these duties will be removed on day one of the agreement entering into force*. 

This agreement deepens our partnership around shared principles – open trade, the certainty that businesses rely on in uncertain times, and the shared prosperity that drives long‑term economic success for all our nations. 

This  comprehensive agreement is, overall, the furthest the GCC have ever gone in a trade deal, and their first ever with a G7 nation.  It delivers the stability and certainty essential for prosperity, ensuring UK firms have secure access and growing opportunities across the Gulf. 

Make UK CEO Stephen Phipson CBE said:

With an increasing rise in global trade and economic protectionism, today’s announcement of the successful conclusion to the Free Trade Agreement (FTA) talks between the United Kingdon (UK) and Gulf Cooperation Council (GCC) sends a powerful signal that the UK is open for business and remains resolute in its commitment to free and fair trade.

This agreement will support future economic growth for the world’s 6th and 9th largest economies. It will catalyse collaboration between two of the world’s largest and dynamic economies and will drive greater innovation, unlock growth, and build prosperity across a long-established and rich-in heritage corridor of trade, capital, and investment.

This future agreement should give British businesses the confidence they need to enter the market, trade more easily and benefit from the massive opportunity from the Region’s sustainable energy transition and collaboration in advanced manufacturing technological advancements.

Confederation of British Industry (CBI) Chief Executive Rain Newton-Smith said: 

The government has been steadfast in its commitment to openness – a clear demonstration of the UK’s leadership in championing free and fair trade in the face of rising global protectionism. 

 A new Free Trade Agreement with the Gulf Cooperation Council (GCC) represents an important opportunity to drive growth at home by deepening our cooperation with some of the world’s most dynamic and forward-looking economies. 

 The GCC’s strong investment capacity and growing diversification present sizeable opportunities for UK firms across advanced technologies, infrastructure, clean energy and services. 

 As the UK and its Gulf partners move towards concluding this landmark deal, a strong partnership between government and business will be essential to unlock the full potential of this ambitious new chapter in our global trade story.

HSBC UK Head of Commercial Banking Stuart Tait said: 

The conclusion of a Free Trade Agreement between the GCC and the UK is a significant milestone. This agreement will create new opportunities for businesses, bringing together one of the world’s fastest growing and modernising regions with the UK’s complementary strengths in key areas such as services, life sciences and innovation. We look forward to supporting this new partnership to deliver shared prosperity for both economies.

– Supports investment between the UK and GCC countries 

This deal will unleash the power of international investment to drive growth and support jobs, recognising we are already significant investors in each other’s countries. The Gulf is a major source of inward investment for the UK, including multi-billion-pound investments supporting critical infrastructure like Heathrow Airport. Total Foreign Direct Investments, portfolio, derivatives and other investment assets and liabilities between the UK and Gulf Arabian countries – which include the GCC nations, Yemen and Iraq** – totalled around £485 billion at the end of 2024.*** This agreement will help give both UK and GCC investors greater confidence to invest in each other’s projects, which is crucial for economic growth. In this deal we have agreed comprehensive levels of protections for UK and GCC investors and their investments, ensuring they receive fair and non-discriminatory treatment that will help give investors the confidence to make long-term investment decisions. It will also provide transparent independent legal recourse to resolve disputes if treaty obligations are breached. This will help ensure projects in both regions have the certainty they need to succeed.  

Lady Mayor of the City of London Dame Susan Langley DBE said: 

 This is a landmark moment for UK-GCC relations. The new Free Trade Agreement will unlock billions in trade, boost investment, and deepen our ties across financial services, fintech, and digital services.

The UK is open for business—and with the launch of the Mansion House Accord and Office for Investment: Financial Services, GCC investors now have a direct gateway into one of the world’s most dynamic financial ecosystems. The agreement will also encourage British businesses to open operations in the GCC. Together, we are building a future of shared prosperity.

The UK and the Gulf are an integral part of the global financial system, and I welcome our joint commitment to free and open trade.

Heathrow Airport Chief Customer Officer Ross Baker said: 

Tourism, trade, and investment between the UK and the GCC is critical for economic growth. As the UK’s only hub airport, Heathrow is vital to these connections, handling 71% of UK air cargo exports to the GCC. 

We welcome this Free Trade Agreement and the opportunities it brings, with Heathrow the gateway for the businesses and people across the UK who sell, invest, or travel to markets across the Gulf. By backing Heathrow expansion the Government is ensuring even more UK businesses can benefit from smoother trade links by adding 50% capacity to the country’s most valuable cargo port.

TheCityUK Managing Director, International, Nicola Watkinson said:  

The UK-GCC FTA is a significant step in deepening the UK’s economic relationship with one of the world’s most dynamic and fast-growing regions. For financial and related professional services, this agreement provides a stronger platform for long-term partnership, supporting capital markets, innovation, and deeper collaboration between the UK and GCC markets.

– Delivers opportunities for the UK’s priority high-growth sectors 

This deal supports the world-leading high-growth sectors identified in the UK’s Industrial Strategy, including by: 

• Eliminating tariffs on UK exports for the UK’s advanced manufacturing sectors including automotives, aerospace and machinery and electronics. This, alongside liberalising GCC imports, could enable UK businesses to unlock new export opportunities and buy cheaper inputs from GCC member states. 
• Promoting international cooperation on environment and climate issues, such as the transition to clean energy technologies. This will support the growth of UK companies already doing business in the region including Carbon Clean and Ricardo. As a world leader in green energy, the UK is well placed to meet the Gulf’s growing needs supporting this essential transition. In recent years, the GCC has committed billions of dollars to wind farms, solar power and other renewables supporting the UK’s clean growth agenda.   
• Breaking down barriers and promoting innovation in the creative industries. The deal preserves copyright protections which will increase transparency, help provide high-quality, safer products and provide UK businesses with the confidence that their rights are protected.  
• Facilitating the free flow of financial data to make cross-border trade in financial services easier, supporting firms like Standard Chartered and Santander. This deal is the first time the GCC has agreed to commitments prohibiting unjustified and disproportionate data localisation requirements, facilitating UK firms to store and process financial data outside of the region. The agreement lays a foundation for enhanced cooperation with financial hubs like Dubai, Abu Dhabi, and Bahrain in UK specialisms like banking, insurance, and fintech. 
• Providing valuable legal certainty for UK businesses operating across sectors, including in financial and professional business services, by locking in existing levels of market access and improving regulatory transparency and efficiency. This will benefit companies including Deloitte.
• Securing the most ambitious business mobility commitments the GCC has ever granted to a trading partner. These commitments provide for improved transparency and consistency of processes needed for business travel, supporting the delivery of commercial activity and trade. Skilled UK professionals, such as those working in engineering services companies, now have greater certainty that they can travel to the GCC to deliver services under contract, engage in business activities, or transfer to an office of their company in the GCC, subject to the specific commitments by each GCC Member State.   
• Securing far-reaching digital provisions which will support our innovative businesses like Tramshed Tech and Galaxkey. The deal will promote open internet access, protections against the forced transfer of source code and proprietary cryptographic information, and cooperation on emerging technologies like AI and paperless trade. 
• Bringing new opportunities for the life sciences companies like Phytome Life Sciences by slashing tariffs on medical equipment, which could strengthen supply chains as costs are lowered not only for businesses but for consumers. 

SMMT Chief Executive Mike Hawes said:

 The UK automotive industry welcomes the agreement in principle with the Gulf Cooperation Council and its ambition to strengthen trade with this important export region. We look forward to seeing the full detail to understand its impact and ensure it supports the sector’s competitiveness and future growth. With GCC markets currently disrupted by regional conflict, restoring stable trading conditions is the industry’s immediate priority. These markets are vital to UK automotive exports, and with the right framework in place, this agreement has the potential to support long-term opportunity for UK automotive manufacturers.

JLR Chief Financial Officer Richard Molyneux said: 

This free trade agreement will benefit JLR’s business in the GCC, which is an important market for our UK-made luxury vehicles. We thank the UK Government for its engagement with JLR and commend both the UK and the GCC on reaching this agreement.

Deloitte Head of Tax and Trade Policy Amanda Tickel said:  

The UK-GCC Free Trade Agreement represents an important milestone in strengthening the UK’s trade relationship with one of the world’s fastest-growing regions. By locking in existing market access to provide greater certainty and through supporting regulatory cooperation, the agreement will support the UK services sector to grow internationally. 

Ahead of the announcement of the FTA, our recent Attitudes to Trade Survey found that 64% of UK business leaders anticipated a UK-GCC FTA to be beneficial for the UK economy, highlighting strong underlying business support for the agreement.

Carbon Clean Chair and CEO Aniruddha Sharma said: 

For pioneering climate technology companies, the fastest path to scale runs across borders, and, with pilot partnerships completed and under way in the UAE (ADNOC) and Saudi Arabia (Aramco), we have seen firsthand how the Middle East can and will come to play a decisive role in driving Carbon Capture, Usage and Storage forward. 

A UK-GCC Free Trade Agreement would help growing companies, such as ourselves, move quickly from demonstration to large-scale deployment by breaking down regulatory and legal barriers to collaboration, strengthening the conditions for innovation and deepening collaboration between two regions with a shared interest in becoming global leaders in this field.

Galaxkey CISO and Board Member Sameer Shaikh said:  

The FTA will help Galaxkey grow its business in the GCC by strengthening government-to-government trust, which would open more opportunities for UK cybersecurity firms to participate in national projects and digital-transformation programmes. 

It will provide fast-track business growth and closures through joint forums which will help build relationships with cyber leaders (an essential element of succeeding in the GCC).  

It will facilitate digital trade by including strong digital economy provisions that allow for secure cross-border data flows — a critical enabler for Galaxkey’s SaaS and hybrid deployment models.

Intelligent Growth Solutions (IGS) CEO Andrew Lloyd said:  

The UK-GCC Free Trade Agreement has the potential to act as a powerful catalyst for British agritech innovation by accelerating projects across the Gulf region and embedding sustainable food production. 

The agreement will help us forge deeper partnerships, deploy our technology faster, and contribute meaningfully to food security and climate resilience in some of the world’s most climate-challenged environments.

Howden Middle East and Africa CEO Richard Mockett said:  

Howden’s presence across the GCC countries in retail, specialty insurance broking and reinsurance has already made a vital contribution to our growth globally over several years.  

We are incredibly excited by the reciprocal opportunities this agreement will bring to our clients and people across GCC countries as we look to expand through investment and partnership across the region. 

Association of British HealthTech Industries’ International Business Director Suzie Ali-Hassan said:  

The UK-GCC Free Trade Agreement represents an important opportunity to further strengthen HealthTech trade and investment between the UK and the Gulf region. 

The Gulf has long been a key partner for UK medical device, diagnostics and digital health businesses, and through our work supporting companies in the region, including trade shows and our Middle East Accelerator, we continue to see significant potential to expand collaboration and deliver healthcare outcomes that benefit patients across both regions.

UK Finance Managing Director David Raw said:

The agreement empowers our members to act as a bridge for capital and innovation, ensuring companies on both sides can fully harness the potential of a more dynamic and prosperous relationship. > As we look ahead, strengthening connectivity in transition finance, capital markets and digital assets will be the key to ensuring this partnership continues to boost prosperity across the UK and the Gulf.

Ricardo PLC Managing Director, Middle East, Akin Adamson said:  

Ricardo welcomes the signing of the UK-GCC FTA which will foster bilateral cooperation, drive innovation and increase shared prosperity for all.

Phytome Life Sciences CEO Dr Sebastian Vaughan said:  

A UK–GCC Free Trade Agreement unlocks a powerful UK–GCC axis of global thought and industrial leadership, combining a deep reservoir of UK intellectual capital with the rapidly expanding infrastructure, capital, and innovation ecosystems emerging across the GCC’s biotechnology sector.

By reducing friction on the movement of ideas, talent, innovation and technologies, this agreement radically accelerates the translation of cutting-edge science into real-world solutions. The result? Faster commercialisation, greater economic value and meaningful social impact.

AEI Saudi Founder Director, Senior Advisor to the Middle East Association, Adam Hosier said:  

At AEI we support 100s of companies each year to succeed in Saudi, the Middle East’s largest market. The UK-GCC FTA will only increase that number, easing access to the unparalleled opportunities available across the region.  

For instance, we have long championed greater local presence and collaboration by any company entering these markets, and this FTA recognises and supports exactly that with key considerations from data localisation to improved mobility commitments.

HCR Law Partner Raj Pahuja said:  

The UK GCC FTA marks a landmark moment for UK businesses and the Gulf region. As the most significant agreement of its kind in Europe with the GCC, it opens the door to substantial new opportunities across key sectors and has the potential to drive major commercial growth. We look forward to supporting our clients as they navigate this new landscape and maximise the benefits of the agreement.

Tramshed Tech Co-Founder Mark John said:  

Tramshed Tech is committed to supporting companies and organisations from the Welsh digital and tech ecosystem to access the international marketplace. 

The continuing support and specialist expertise of DBT and UK Government have proved invaluable in enabling Tramshed and our member and tenant companies – and our wider networks – to access class-leading export opportunities from the GCC region.

We see the confirmation of this GCC trade deal, brokered by DBT/UK Government, as a key growth measure to underpin export growth opportunities for the Welsh economy – it is warmly welcomed by Tramshed and our tech community in Wales (and across the UK).

Pearson UK CEO Sharon Hague said: 

As nations adapt to evolving workforce demands, we welcome this agreement as a positive step in strengthening UK–GCC cooperation. By deepening cross-border education partnerships, it creates new opportunities for teachers and learners across the UK and the GCC to access high-quality, digitally enabled education at scale.  

Technology is advancing rapidly, but it is human expertise, and the ability to learn and adapt, that ultimately unlocks its full economic potential.

– Boosts opportunities for British brands in everything from food to cars  

The Gulf loves British goods – and British goods manufacturers and producers are going to benefit further from trading with the Gulf, thanks to this deal. The agreement secures significant tariff reductions – eliminating an estimated £580 million in duties faced by UK exporters based on existing trade flows, with £360 million removed on day one of the agreement entering into force.** ** After a decade, 90% of GCC tariff lines will be removed, unlocking tariff‑free access for around 93% of UK goods exports based on existing trade flows.    

This means that around two thirds of UK goods will enter the GCC tariff-free immediately after the deal enters into force, rising to around 93% after ten years, delivering a major boost for UK manufacturers, food producers and high-value brands.  

Tariffs will be removed on automotives made in the UK and sold in the Gulf. In 2025, we exported £1.4 billion-worth of cars to GCC countries currently facing tariffs of 5%. Companies renowned for quality, such as JLR, can expect to benefit. Tariffs will be removed on iconic products like oats, cereals, biscuits, baking products, salmon which all face tariffs of 5%, although certain countries apply higher tariffs on specific products. UK exports of frozen lamb and the majority of cheese will also see tariffs removed on day one of the agreement entering into force.  

Retail and beauty brands are set to thrive too: the GCC will cut tariffs on UK perfumes and skincare of 5%, although certain countries apply higher tariffs on specific products. This deal means more British quality products on shelves, more sales, and a bigger presence for our best-loved brands across the Gulf. 

NFU President Tom Bradshaw said:  

I’m really pleased our government has listened to our concerns and ensured we can take advantage of the strong demand in the GCC for things like lamb, cheese and oats – securing greater access for high‑quality British goods while safeguarding our pork, chicken and egg sectors. 

It will be a relief to farmers and the public that the government has held firm on its promise to safeguard Britain’s high food production standards.

Food & Drink Federation Chief Executive Karen Betts said:  

Food and drink manufacturers welcome the new Free Trade Agreement with the Gulf Cooperation Council (GCC). It’s an exciting opportunity to boost trade with what is a rapidly growing market for UK food and drink.

Prior to the war in Iran, our exports to the region were worth over £800m a year and growing at twice the rate of EU exports, reflecting the high demand in GCC countries for high quality, delicious and trusted British brands. While we expect trade to continue to be disrupted in the short-term, the removal of tariffs from day one on iconic British products like oats, breakfast cereals and biscuits will help food manufacturers build export momentum in the years ahead.

We look forward to working with the Government to ensure food and drink businesses have the support they need to make the most of this new opportunity.

Walker’s Shortbread Head of International Sales Alastair Walker said: 

Having exported to the GCC region for more than 40 years, it remains a key strategic market for the development and growth of our brand. We are supportive of any processes which help to reduce costs, simplify customs and share market data. Such advancements are key to ensuring the flexibility and momentum we need to grow with our trusted regional partners.

Jermyn Street Association Director Katie Thomas said: 

The UK’s premium consumer goods sector is built on craftsmanship, heritage and global reputation. We welcome initiatives that reduce friction for UK exporters and create clearer pathways into high-growth markets. 

For the largely independent, often family-run brands of Jermyn Street, the removal of trade barriers and greater certainty around customs processes will make a meaningful difference to competitiveness and sustainable export growth.

– Reduces administrative burden and costs for UK businesses  

Businesses were clear that aiding the ease of doing business was a top priority. This deal has secured provisions allowing UK exporters, should they wish, to complete and self-certify their own origin documentation after initial registration – a top ask from businesses that can help cut costs and reduce the administrative burden when exporting. Alongside this, simple, efficient and transparent customs processes will allow British companies, large and small, to export more easily to the region. Businesses have also raised concerns about the risk of delay or rejection at the border, putting them off trying to sell fresh goods. This deal addresses that concern by agreeing the most ambitious commitments on customs procedures the bloc has ever signed up to. The GCC have agreed that shipments that satisfy requirements will take a maximum of 48 hours to clear customs, with perishable goods released in under 6 hours. These improvements will benefit businesses of all sizes, ensuring certainty and consistency for traders when moving goods through the GCC border.   A dedicated chapter for SMEs contains commitments to treat UK firms fairly and provide the information they need to operate in the region in an easily accessible and comprehensive format in English. 

The Federation of Small Businesses Policy Chair Tina McKenzie said:   

We welcome the conclusion of the UK-GCC Free Trade Agreement negotiations, and the agreement to include a dedicated SME Chapter. Making it easier for small firms to trade internationally is vital if we are serious about growth across the whole of the UK. 

Small exporters are often the first to spot new opportunities but the last to get tailored support. A strong SME chapter can help remove barriers, improve access to information, and give smaller businesses the confidence to enter new markets.

Creative Nature Founder & CEO Julianne Ponan MBE said:  

The GCC is one of the exciting growth markets for British food brands, and for an SME exporter like Creative Nature, this FTA is a game changer. Faster customs clearance and dedicated SME provisions mean we can serve our retail partners across the region including Carrefour, Lulu’s and Spinneys  more efficiently, and bring safe, allergen-free food to more families who need it. It’s a real vote of confidence in British SMEs and the role we play on the global stage.

– Locks in the certainty our world-class services firms need to grow and expand their presence   

Overall, we have secured the best outcomes on services that the GCC has ever agreed to in an FTA. It locks in clarity and certainty for our finance and services exporters, cementing their access to key markets and giving them the confidence they need to expand their trade with the region. For many sectors, this chapter guarantees a level of treatment for UK businesses compared to their domestic competitors; limiting discriminatory practices to promote a level playing field. As the region begins to realise its ambitious plans for the future, opportunities for UK services firms and experts are expected to expand. This growing demand increases the likelihood that British companies will play a key role in delivering major projects—from architecture and engineering to building wind farms to irrigating the desert. The deal encourages this by supporting businesses and professionals applying for visas, and ensuring processes will be more transparent, consistent, and easier to navigate. It contains commitments outlining that licensing processes should be fair and accessible, associated fees be proportionate and that information be published online and in English. This will provide the transparency businesses have told us is vital to them.  

Standard Chartered Group Chief Executive Bill Winters CBE said: 

The UK-GCC Free Trade Agreement is a significant achievement. It will unlock new opportunities for UK businesses to trade with one of the world’s most dynamic, innovative and fastest-growing regions.  

By reducing tariffs, removing market barriers and increasing collaboration, the agreement will drive greater bilateral investment and growth across this important corridor. 

EY UK Regional Managing Partner EY UK & Ireland Anna Anthony said: 

The UK exported more than £20 billion in services to GCC countries last year, and this agreement should create even greater opportunities for UK professional services businesses in these high-growth markets. 

The agreement’s visa transparency and digital trade provisions will make it easier for UK professionals to deliver in-person and cross-border services, providing businesses with the clarity and confidence to compete in these markets.

Royal Institution of Chartered Surveyors (RICS) Senior Public & Government Affairs Manager Abdullah Awadh said:  

A UK-GCC FTA can unlock real impact on the ground, from faster access for UK-qualified professionals to greater influence for UK institutions on the region’s ambitious transformation agendas. The ability to move talent, share standards, and collaborate on training is vital to delivering the sustainable, tech-enabled infrastructure the GCC is investing in. This isn’t about opening doors to a new market – we’re already here – it’s about making our impact more effective, and futureproofing it.

Royal Institute of British Architects (RIBA) CEO Valerie Vaughan Dick MBE said:  

This agreement is a welcome step for our world-class architecture sector, which is a global leader in exporting architectural services.  

Even at a time of global uncertainty, growth across the Gulf’s built environment shows considerable promise and presents significant opportunities for UK architects to learn and make a meaningful contribution, bringing skills and expertise that deliver design and sustainability excellence.

– Delivers for the digital future 

For the first time, the GCC has agreed to prohibit unjustified and disproportionate data localisation requirements, which will enable UK companies operating in the GCC to store their data outside the bloc – a huge benefit for UK firms, who will avoid having to establish costly data centres in the Middle East. It also commits both sides to cooperation on the technologies of the future, so we can both take advantage when new products and services emerge. 

Darktrace Chief Strategy Officer Phil Pearson said: 

We welcome the conclusion of negotiations for the UK–Gulf Cooperation Council Free Trade Agreement. This landmark deal provides Britain’s technology sector with the improved market access needed to strengthen partnerships across some of the world’s most dynamic digital economies. We are excited to forge deeper regional collaborations to bring our unique AI-powered cybersecurity solutions to help secure this ambitious region as it takes full advantage of its digital transformation.

Bexprt CEO & Founder Mo Hamdy said: 

UK technology and innovation are highly respected across the GCC. Since founding Bexprt in 2018, we’ve built strong partnerships in the region, deepening our commitment in 2022 by establishing our Saudi Arabia entity. Our business has since flourished, particularly in public cloud and artificial intelligence, where we deliver trusted enterprise AI and resilience solutions.  

The UK-GCC Free Trade Agreement, with its focus on digital trade, cybersecurity, and innovation, will further strengthen confidence in UK technology and create new opportunities for companies like Bexprt to continue to grow across the region.

Quorum Cyber CEO Federico Charosky said: 

Quorum Cyber is proud to play an active role in strengthening cybersecurity and trust across the UK and the GCC. With strong relationships already established in the United Arab Emirates, we see an FTA with the GCC as a natural next step. By building on this shared progress, this agreement would create huge opportunities for the two regions and give businesses and people a bright, secure future.

TechUK International Policy and Strategy Lead Sabina Ciofu said:  

The Gulf is a growing market of real interest for UK tech companies – something we saw first-hand during our recent delegation to the UAE and Saudi Arabia.  

The UK-GCC FTA has the potential to open even more doors for innovative British firms, not only by creating new commercial opportunities but also by providing the legal certainty businesses need to scale with confidence. We look forward to working with government and our members to turn this agreement from words on paper into tangible growth.

– Fosters greater collaboration on UK and international priorities 

The UK’s partnerships with the Gulf are deep and historic. This landmark FTA reflects that they are also future-focused, sending a strong signal of our continued commitment to work together. This deal will strengthen these relationships, helping make us more secure and prosperous at home by strengthening supply chains and growing our economy. It sends a strong signal to the rest of the world that the UK is standing up for free and fair trade, in line with our Trade Strategy, which sets out our commitment to fair and open markets as the best route to growth and raising living standards across the UK.  

This agreement reflects our strategic approach to trade, supporting UK businesses to sell more, grow faster, and compete globally, while delivering economic security and resilience. Outcomes on innovation will ensure the FTA is future-proofed and responsive to emerging technologies and global challenges, unlocking opportunities for UK businesses to lead in innovation-driven sectors. Within this agreement, we have also agreed a package of commitments on environment, labour, women’s economic empowerment, and animal welfare that go further than anything the GCC has agreed before in an FTA, opening new avenues for collaboration on shared priorities. This FTA includes commitments promoting women’s access to the benefits of the agreement and addressing barriers that are specific to women face in trade.  It also reaffirms core international labour protections for workers and provides reassurance to businesses by adding more regulatory certainty that parties will not weaken their labour laws. 

British Chambers of Commerce Head of Trade Policy William Bain said:  

This deal is great news for the UK economy; it will open up new opportunities for inward investment, exports and supply chains. Once ratified, there will be lower tariffs on food and drink, automotives, and industrial goods and existing market access for key UK services sectors will be guaranteed.

There is great potential to expand our trade with this key region, which already generates £57bn a year for the UK economy. Securing long-term economic benefits with close trade partners, like the GCC, is vital for tens of thousands of UK firms with high ambitions on export growth.

Director General of the Institute of Directors Jonathan Geldart said: 

The Institute of Directors welcomes the signing of the trade agreement between the UK and the GCC. We know from our own extensive work in the GCC that it is one of the world’s most dynamic regions.  

This deal represents a significant opportunity for the UK to deepen our trade ties and strengthen economic collaboration. We look forward to seeing British businesses benefit from increased access and enhanced opportunities for growth and innovation.

British Standards Institution’s (BSI) Director General, Standards, Dr Scott Steedman, said: 

Widespread use of common international standards by companies and governments across the region will be key to success in the free trade agreement between the UK and Gulf Cooperation Council announced today. We welcome the agreement, in particular its potential to support increased trade and improve reciprocal market access. BSI looks forward to working with the UK government, our counterpart standards bodies in the Gulf as well as with the Gulf Standards Organization as this agreement is implemented to foster a streamlined trading environment and boost market access opportunities for UK companies.

The press release issued by the Department for Business and Trade on 20 May 2026.

New appeals process to be set up for those who accepted fixed sum offers on the Horizon Shortfall Scheme.

• Further step towards full and fair redress as new appeal permissions process to be established. 
• Change responds to recommendation from Horizon Inquiry chair Sir Wyn Williams, with claimants encouraged to seek legal advice ahead of launch. 
• New process for Horizon shortfall cases where records are incomplete or unavailable to also be created following report published today. 

Postmasters affected by the Horizon scandal who have accepted a £75,000 Fixed Sum Offer (FSO) and believe they were owed more will be able to seek permission to appeal through a new process set to launch later this year. 

This change comes directly in response to recommendations from Sir Wyn Williams in his first Post Office Horizon IT Inquiry report, where he made the case that claimants should be able to access a fully funded and independent appeals process. In response, the Government promised to deliver this so that those who have taken offers via the Horizon Shortfall Scheme (HSS) don’t miss out on the full and fair redress they are owed. 

So far, more than £940 million has been paid in redress to over 11,000 claimants on the Horizon Shortfall Scheme (HSS), with an additional £11 million paid in award uplifts via the DBT-run HSS Appeals scheme. 

Those who take part will be able to seek permission from an independent person to appeal their FSO award in the HSS Appeals process. Claimants will be able to receive free legal advice and support, and crucially will not risk being paid less that the £75,000 they have already received. 

The process will be as light touch as possible to minimise burden on claimants. Applicants will make their application by submitting a concise explanation in writing and will not be required to submit supporting evidence unless they wish to. 

Post Office Minister Blair McDougall said:

Many postmasters lost their livelihoods as a result of this scandal and the least they deserve is to know the redress they received was fair.  

This new process gives those who accepted the Fixed Sum Offer a real opportunity to have their case looked at again, with free legal support.  

If you strongly believe you’re owed more, I encourage you to seek legal advice.

Alongside announcing this change, Ministers have accepted recommendations from the Independent Senior Lawyer Sir Gary Hickinbottom following his review of Horizon Shortfall Scheme Fixed Sum Offer cases in which there is no ready evidence of a shortfall.  

New guidance will also be published, outlining the procedures for managing and processing these cases to ensure claimants have a clear understanding of how their claims will be handled.  

To qualify for this process there must be evidence that it is more likely than not that a Horizon shortfall took place. The new process will include guidance to Post Office about how to seek shortfall evidence on a gradual basis and will emphasise that the test might sometimes require less evidence than would be needed in other circumstances. 

Notes to editors

• This process responds to Recommendation 9 of the Post Office Horizon IT Inquiry Volume 1 report, published in July 2025, which the Government accepted in its October 2025 response. 
• Claimants who want to appeal are encouraged to seek legal advice now, ahead of the opening of the scheme, so they are ready to apply. 
• In December 2025, Sir Gary Hickinbottom was appointed as the Independent Senior Lawyer to the HSS. The Department for Business and Trade and Post Office referred the handling of cases without shortfall evidence to the ISL for review. 

The press release issued by the Department for Business and Trade on 19 May 2026.

Ministers announce the introduction of legislation to tackle late payments and protect small businesses.

• Small Business Protections Bill introduced to Parliament to back small businesses with the toughest late payment regime in the G7 
• Stronger new powers for the Small Business Commissioner to investigate, adjudicate disputes and fine persistent late payers with potential penalties worth tens of millions 
• New 60-day cap on payment terms for large firms, mandatory interest on late payments, and action to ban the practice of retentions in construction

Small businesses will no longer be left chasing money they are already owed, as ministers today [Tuesday 19 May] introduce landmark legislation to end the scourge of late payments and back millions of sole traders, freelancers, and family firms across the country. 

The Small Business Protections Bill (formally known as the Commercial Payments Bill) delivers the toughest crackdown on late payments in a generation – putting a clear duty on large firms to pay smaller suppliers on time and giving small businesses the certainty they need to keep investing, supporting jobs and growing their communities.

It comes as the Prime Minister and Business Secretary are expected to welcome small business owners and Federation of Small Businesses (FSB) representatives to Downing Street to mark what leaders have called a “historic moment for small firms”.

Late payments close 38 businesses every single day because they are not paid on time. That’s the equivalent of 266 a week, and well over a thousand in any given month. For business owners, the impact is immediate and personal – forcing them to spend hours chasing invoices instead of running their businesses and putting jobs and livelihoods at risk.

The Bill fundamentally changes how businesses pay each other, putting an end to excessive delays and unfair practices that hit small firms hardest, through sweeping new reforms.   

Prime Minister Keir Starmer said:

Small businesses are the backbone of our economy – run by people who take risks, create jobs and keep communities going. This government is firmly on their side.

Too many small business owners are spending hours chasing money they are owed and when payments don’t come through, the cost is personal. It’s about whether you can pay your staff, keep the lights on, or invest in your future.

Today we’re changing that with the toughest action on late payments in a generation, so small businesses get paid on time and get the backing they need to grow, create jobs and serve their communities.

Reforms include a clear 60-day cap on payment terms on all large firms paying smaller suppliers, mandatory interest on late payments, set at 8% above the Bank of England base rate, and a ban on the practice of withholding retention payments under construction contracts.  

On top of this, the Small Business Commissioner is getting major new powers to investigate poor payment practices, adjudicate disputes, and fine the worst offenders – with potential fines that could be worth tens of millions for persistently late payers.   

The Office of the Small Business Commissioner has already recovered more money for small firms in the last year than in the previous four years combined.

By improving cashflow through supply chains, the Bill supports productivity, growth and keeps our small businesses afloat, by giving them the certainty they need to invest and grow.        

Business Secretary Peter Kyle said:   

Costing the UK economy £11 billion every single year, late payments choke growth, cost jobs, and force too many good businesses to close. That ends today.  

Through this landmark bill we are delivering the toughest payment reforms in over a generation, to give the UK the strongest legal framework in the G7, and back small businesses with the certainty they need to grow and thrive.

Minister for Small Business and Economic Transformation, Blair McDougall said:  

I’ve spoken to too many business owners who do everything right and are still left lying awake at night wondering how they’ll pay their staff or cover their bills because they haven’t been paid what they’re owed.  

Introducing this Bill is about standing up for those people, to restore fairness, dignity and security for small business owners and the self-employed, so they can focus on doing what they do best: growing their businesses and the economy.  

The Bill builds upon and strengthens legislation first laid out in the 1998 Late Payment of Commercial Debt Act, over 25 years ago, to give us the strongest legal framework on late payments in the G7.  

After working closely with the Federation of Small Businesses, these Bill powers will also ensure boards or audit committees of persistently late‑paying large companies publish clear explanations of poor payment performance and the steps they are taking to improve it. 

FSB Policy Chair Tina McKenzie said:

Tackling late payment is one of the biggest things the government can do to help small businesses grow.

FSB is proud to have worked with ministers on these reforms and it’s encouraging to see the voice of small firms reflected in legislation. Giving audit committees a clear role in payment practices is a vital step in changing late payment culture.

The legislation forms part of a broader plan to back small businesses and turn the page on years of underinvestment by tackling the pressures they have faced from high inflation, borrowing costs and unnecessary bureaucracy. This includes small business rates relief of up to 100% for the smallest premises, shielding firms from costs,

Alongside this, the government is cutting costs for working families by halving childcare, introducing £2,000 incentives for SMEs hiring apprentices, boosting access to finance, and cutting red tape for hospitality, high street and cultural venues.

It also follows the Prime Minister’s Small Business Plan, launched last year to make the UK the best place to start and grow a business. Developed in partnership with small firms, the plan will boost access to finance with £4 billion of additional support, make it easier to win government contracts, and brings together advice and funding through a new Business Growth Service so firms can access the help they need in one place.

The press release issued by the Department for Business and Trade on 14 May 2026.

The Steel Industry (Nationalisation) Bill will take its first step through Parliament today with its First Reading.

A Bill to grant the Government powers to nationalise steel companies such as British Steel, subject to a public interest being met, will be introduced to Parliament today (14 May), marking an important step towards safeguarding the long‑term future of the UK steel industry.

The Bill will have its First Reading – its formal introduction to Parliament – today, with its Second Reading expected to take place in the near future where MPs will have their first opportunity to debate the Bill and give their opinions.

Safeguarding Britain’s steel capability and capacity is firmly in the national interest. The Bill provides the Government with a route to bring steel companies, such as British Steel, into public ownership where this is necessary and when a public interest test is met.

The legislation builds on the Government’s Steel Strategy, launched in March, which sets out a long‑term plan to revitalise the UK steel sector, restore domestic production to sustainable levels and secure steel’s role in critical sectors including national infrastructure, defence and clean energy.

Industry Minister Chris McDonald said:

Revitalising our steel sector is a top priority for this country, and this is an important first step to safeguard our steelmaking capability which would allow us to secure the future of British Steel and explore possible options to modernise the industry.

The fact this is one of the first of all the Bills announced yesterday to start its passage through Parliament shows this government is serious about securing Britain’s domestic steel production, and we’re putting it right at the top of our agenda.

Director General of UK Steel Gareth Stace, said:

We strongly welcome the Prime Minister’s announcement to legislate for the nationalisation of British Steel. This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment.

Steel is a foundation industry and a recognised strategic national asset. Maintaining domestic production capability for British Steel’s products is essential not only for economic growth but also for our national security and resilience.

The Bill will apply across the whole of the UK and includes provisions for independently assessed compensation where its powers are used.

Steel remains a cornerstone of Britain’s economy, supporting around 37,000 direct jobs and more than 60,000 jobs across supply chains. But years of global overcapacity, unfair competition and high operating costs have made it harder for UK‑based steel companies to compete and invest.