Tag: Business and Trade Department

The press release issued by the Department for Business and Trade on 16 January 2025.

£50 million investment deal between JATCO, Nissan and the UK government secured to build a new manufacturing site in Sunderland.

• £50m investment deal secured between JATCO, Nissan and UK government to build new manufacturing site in Sunderland.
• Site will be JATCO’s first UK and European plant and is set to create and support hundreds of jobs in the North East.
• Announcement is the latest in a series of job-boosting investments to deliver growth as part of the Plan for Change, including £14 billion in AI investment and £4 billion from Malaysian company YTL creating 30,000 jobs.

Car manufacturing giant Nissan, and the Japan Automatic Transmission Company (JATCO) have secured a £50 million investment deal in partnership with the government to create a new manufacturing plant in Sunderland.

The new site will help create 183 new high-value jobs in the region and support over 400 in the wider supply chain. It will also establish JATCO’s first and only European plant and will produce 3-in-1 electric vehicle powertrains for Nissan’s neighbouring Sunderland plant.

Nissan is one of the largest UK-based vehicle manufacturers, employing around 6000 people across its Sunderland facilities, and today’s announcement builds on their £2 billion investment in the region in 2023 to build electric vehicles.

From 2026, JATCO aim to produce 340,000 electric powertrains (the equivalent of an engine for electric vehicles) per year to supply new generations of Nissan electric vehicles. With the UK already being the largest EV market in Europe, this investment further bolsters the UK’s domestic EV manufacturing capabilities and secures the UK’s position as a world leader in the industry.

This is the latest in a tidal wave of investments announced this week, including a £4 billion investment by Malaysian company YTL in the UK over the next five years, transforming the greater Bristol area and delivering over 30,000 jobs across the UK. More than £14 billion pounds of investment into the UK’s AI sector and thousands of new jobs have also been secured in just 48 hours since the AI Opportunities Action Plan was published earlier this week.

Since entering office, the government has been focused on restoring economic stability, the foundation of growth, to give businesses the confidence to invest and expand in the UK – and today’s announcement is a major vote of confidence in the UK’s investment environment.

Securing investment is also central to the government’s mission to deliver economic growth which will create jobs, improve living standards, and make communities and families across the country better off as part of our Plan for Change.

Minister for Investment Baroness Gustafsson will visit the North East today [Thursday 16 January] to open the new facility and hear from senior officials from JATCO and Nissan about how the government funding will help bolster the UK’s automotive industry’s transition to electric vehicles and support economic growth, an integral part of the government’s Plan for Change.

Business and Trade Secretary Jonathan Reynolds said:

Sunderland is the beating heart of the UK’s automotive industry. Today’s announcement is a massive vote of confidence in the UK economy and this government’s plans to make Britain the destination of choice for investment.

Not only will this boost our thriving auto industry, but it will help secure hundreds of jobs across the North East.

The government is working hand in hand with investors to build a globally competitive electric vehicle supply chain in the UK and our modern Industrial Strategy will build on this legacy, bringing growth, jobs and opportunities to every part of the UK.

The announcement comes ahead of government ministers, including the Minister for Investment, attending Davos later this month where they will tell some of the world’s biggest international investors that UK PLC is open and ready for business.

The investment has been enabled by the ATF, which is accessed through the Advanced Propulsion Centre UK (APC), and aims to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology.

Sunderland has an expanding manufacturing presence, with sites from Nissan and key battery manufacturer AESC. The value of inward FDI stock for the North East at the end of 2021 was £27.9 billion. Unleashing the full potential of the UK’s cities and regions is a core objective of the government’s Industrial Strategy. Facilitating investments like this is central to achieving this goal.

Tomoyoshi Sato, CEO of JATCO, said:

I am so proud to officially open JATCO UK in the North East of England.

And I am very grateful for the support of the UK Government, Sunderland City Council, and all others involved in the establishment of JATCO UK, and look forward to supporting Nissan’s EV36Zero project with our electric powertrains.

Alan Johnson, Senior Vice President, Manufacturing, Supply Chain and Purchasing for Nissan AMIEO, said:

This is a fantastic step forward for our world-first EV36Zero plan.

Welcoming a key supplier to the North East of England provides a big boost to the efficiency of our supply chain. We look forward to continuing our long and successful partnership as we push towards our electric future.

Julian Hetherington, Automotive Transformation Director at the APC said:

I am delighted that the Automotive Transformation Fund has been able to contribute to and unlock significant private investment from JATCO who bring high quality and advanced technology to an already successful automotive region. Our support is a reinforcement of the UK’s continued commitment to the extended localised supply chain for low-carbon industries.

North East Mayor Kim McGuinness said:

The car industry is synonymous with the North East, and today’s announcement underlines our huge potential in advanced manufacturing and electric vehicles.

JATCO choosing the North East as the place to do business and locate in our Investment Zone shows the confidence global industry has in our region, and the leading role we are playing in creating jobs and opportunity for local people and UK plc.

The UK is home to a world-class and comprehensive automotive and innovation ecosystem, including the APC, Faraday Battery Challenge, High Value Manufacturing Catapult and the ATF.

Through the ATF, the government continues to unlock private investment in UK automotive design, development, and manufacturing as the sector transitions to zero emission technology. To date, ATF and APC funding programmes have leveraged over £6bn of investment from the private sector.

The Autumn Budget confirmed over £2 billion for capital and R&D funding over five years for zero emission vehicle manufacturing and their supply chains. Building on the achievements of the ATF and APC programmes, this long-term commitment is a vote of confidence in the UK’s automotive industry, supporting investment and productivity growth across UK automotive.

At the end of last year, the government launched a consultation on support for the zero emission transition, restoring clarity for vehicle manufacturers and the charging industry so that they have the confidence to invest in the UK in the long-term and drive growth in the UK automotive industry.

The government’s new modern Industrial Strategy will deliver long-term, sustainable, inclusive growth right across the UK by driving investment into the economy and hardwire stability for investors, giving them the confidence to plan not just for the next year, but for the next 10 years and beyond.

Notes to Editors:

• JATCO’s total investment has been enabled by over £12 million of government funding through the Automotive Transformation Fund (ATF).
• JATCO is a global automotive manufacturer headquartered in Japan and is world-leading in the production of transmissions.

The press release issued by the Department of Business and Trade on 15 January 2025.

£4 billion investment by YTL businesses in the UK over the next five years includes transforming the greater Bristol area and delivering over 30,000 jobs across the UK.

A £4 billion investment by YTL businesses in the UK over the next five years includes transforming the greater Bristol area and delivering over 30,000 jobs across the UK.

The announcement comes as Malaysian Prime Minister Dato’ Seri Anwar Ibrahim is in London today [Wednesday 15 January] to meet Prime Minister Keir Starmer and officially launch one of the largest brownfield developments in the UK alongside Investment Minister Poppy Gustafsson.

Business and Trade Secretary Jonathan Reynolds hailed the investment as another huge vote of confidence in the UK that shows how the Government’s Plan for Change is delivering economic growth and ‘the power of investment to transform our cities and give working people the security they deserve’.

Malaysian-owned YTL announced around £2 billion of the total investment will go towards the Brabazon Bristol development, which comprises of 6,500 homes, three new schools and a 19,500-capacity arena, conferencing and exhibition space. According to YTL, the development will deliver more than 30,000 jobs, with the remaining £2 billion invested in YTL’s UK businesses over the next five years.

Business and Trade Secretary Jonathan Reynolds said:

“This investment is incredible news for the UK and will create a generational transformation for North Bristol, delivering infrastructure, new schools and creating thousands of new homes and jobs in the region.

By creating the right conditions and giving investors the confidence they need to make big investments in Britain, our Plan for Change is delivering economic growth and showing the power of investment to transform our cities, and give working people the security they deserve.

The Chancellor of the Exchequer Rachel Reeves said:

This investment is what our Plan for Change is all about. Investment that will boost growth, create good jobs  and shows that the UK is open for business.

It builds on the £600m of investment I secured in China last week, and the success of last year’s record-breaking International Investment Summit, demonstrating global confidence in our economy.

We will continue to go further and faster to kick start growth to make all parts of the country better off.

Trade Minister Douglas Alexander will host his Malaysian counterpart Tengku Zafrul Aziz in the first ministerial-led Joint Economic and Trade Committee (JETCO) on Thursday to explore ways to increase our trade and investment relationship in priority areas including legal services, education, agriculture and SMEs.

UK-Malaysia trade stood at almost £6 billion in the year to June 2024. This could grow further now the UK has joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), giving us our first formal free trade agreement with Malaysia.

Through CPTPP, Malaysian investors have greater certainty when investing in the UK, with the agreement ensuring that Malaysian and UK investors receive fair and equal access to each other’s markets.

Background

• In 2016, YTL Power acquired the disused Filton Airfield and associated Brabazon Hangars just north of Bristol. This 380-acre site is the largest brownfield development site in the South West and one of the largest in the whole of the UK. YTL is developing the site into a new town called Brabazon, and the iconic hangars, formerly home of the supersonic jet Concorde, will be turned into a major state-of-the-art arena, conferencing, and entertainment complex.
• In November 2024, YTL obtained planning approval to deliver 6,500 homes, three schools, three hotels, 2,000 student beds, a retirement village, a new railway station and 60 acres of commercial development focused on high tech, aerospace and university facilities. The entertainment complex will include a 19,500 capacity carbon neutral arena, conferencing and exhibition space and a futuristic family entertainment attraction.
• The Brabazon development is being constructed in the South Gloucestershire local authority area, just north of Bristol.

The press release issued by the Department for Business and Trade on 9 January 2025.

The Government has reappointed Lord Mark Lancaster as its Defence and Security Advocate, to drive the UK’s defence and security export success until March 2026.

Business and Trade Secretary Jonathan Reynolds has reappointed Lord Mark Lancaster as the Government’s Defence and Security Advocate, to drive the UK’s defence and security export success until March 2026.

Lord Lancaster will report directly to the Business and Trade Secretary and will continue his programme of visits both overseas and at home to promote UK defence and security exports.

By supporting industry to benefit from export opportunities, Lord Lancaster’s work will directly support the defence industry’s position as a growth sector and the Industrial Strategy’s aim to align the imperatives of strong national security with a high growth economy.

Lord Lancaster was initially appointed in January 2023 and has brought a wealth of specialist defence experience to the role. Major-General, Lord Lancaster, is Director of the Army Reserves and was a Defence Minister between 2015-2019.  He was also previously a Major in the Territorial Army, having served as part of NATO peacekeeping forces in Kosovo and Bosnia.

The press release issued by the Department for Business and Trade on 7 January 2025.

The Government has launched a new Steel Council, made up of steel sector leaders, industry experts, trade unions, trade associations and devolved governments.

• Government launches new Steel Council to advise on rebuilding the industry and developing its upcoming Steel Strategy.
• Council led by the Business Secretary and Chair of the Materials Processing Institute Jon Bolton, will bring together industry figures, experts, trade unions and devolved governments to secure the long-term future of steelmaking in the UK.
• New council demonstrates the Government’s partnership with industry and trade unions to revitalise UK steelmaking and secure economic growth, delivering on the Plan for Change.

The Government is ramping up its plans to rebuild the UK’s steel sector with the launch of a new Steel Council which will bring together leaders from across the industry to advise on the upcoming Steel Strategy.

Business Secretary Jonathan Reynolds will chair the first meeting of the Council today (7 January) together with co-chair Jon Bolton, Chairman of the Materials Processing Institute – a globally-recognised non-profit research and innovation centre based in the iconic steel community of Teesside.

A secure future for the steel industry is vital to both the UK’s national security and delivering growth, the foundation of the Government’s Plan for Change, and with the launch of the Council the Government is taking another important step towards safeguarding the sector for the long term.

The Council will bring together steel sector leaders such as CEOs from Tata Steel and British Steel with trade union leaders, industry experts, devolved government representatives and trade associations to address the challenges facing the steel industry and make the changes needed to secure steelmaking in the UK.

It will meet regularly as the Government prepares to launch its Steel Strategy, providing a vital link between industry, workers, experts and government in every part of the UK and ensuring that both the workforce and economic growth are at the heart of its plans to rebuild the steel sector.

Business Secretary Jonathan Reynolds said:

The industry and steel communities have had enough of lurching from crisis to crisis – this government will take the action needed to place steel on a secure footing for the long term. With the launch of the Steel Council we’re placing workers and local communities at the heart of our plans as we bring forward up to £2.5 billion of investment to secure growth right across the country.

Steel was a neglected industry in this country under the previous government, but with the launch of this Council and our upcoming Strategy, we’re proving once again that we are the Government that’s committed to driving growth and innovation in the sector.

A vibrant steel sector is crucial for economic growth and our national security, and by reflecting views from industry across the UK as we bring forward our Steel Strategy we’re delivering on the Plan for Change and boosting economic stability.

Gareth Stace, Director-General, UK Steel said:

The establishment of the Steel Council marks a defining moment for the future of steelmaking in Britain. The Council represents a crucial step towards creating a comprehensive Government Steel Strategy – one that lays the foundations for a sustainable and resilient industry.

This strategy is a once-in-a-generation opportunity to foster a competitive business environment that encourages long-term investment and ensures steelmaking remains at the heart of the UK economy.

We are committed to collaborating with the Government, trade unions, and industry partners to turn this vision into a shared success, securing the sustained growth that our sector, its workforce, and our communities rightfully deserve.

Jon Bolton, Chairman of the Materials Processing Institute said:

I am honoured to be asked to co-chair the Steel Council. I have worked in the steel industry globally for over 40 years, and it’s clear this sector has faced many challenges.

However, I believe the UK has all the essential elements to attract investment into the steel industry: demand, skills, technology, unrivalled research and development and, critically, a supportive government having announced up to £2.5 billion of support.

I see the Council’s task being to develop a strategy that details the core elements of that investment plan and to establish a roadmap towards a rejuvenated, competitive and environmentally progressive industry.

The Government will work closely with the Steel Council towards the launch of the Steel Strategy in Spring, and the Council will continue to meet regularly following its publication to help drive investment into steelmaking communities across the country.

Full list of the Steel Council’s membership:

• Jonathan Reynolds, Secretary of State for Business and Trade (Chair)
• Jon Bolton, Chairman of the Materials Processing Institute (Co-chair)
• Sarah Jones, Minister of State for Industry and Decarbonisation
• British Steel
• Tata Steel
• Liberty Steel
• Marcegaglia UK
• Sheffield Forgemasters
• Celsa Steel
• UK Steel
• British Metals Recycling Association
• Materials Processing Institute
• Warwick Manufacturing Group
• Community Trade Union
• GMB Trade Union
• Kate Forbes, Deputy First Minister and Cabinet Secretary for Economy and Gaelic, Scottish Government
• Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning, Welsh Government
• Conor Murphy, Minister for the Economy, Northern Ireland Executive

The press release issued by the Department for Business and Trade on 17 December 2024.

New members to provide independent advice and support on Department for Business and Trade’s work.

The Secretary of State for Business and Trade Secretary Jonathan Reynolds has today announced the appointment of eight new non-executive members of the Department for Business and Trade (DBT) Board.

The board members are:

• Paul Drechsler CBE as Lead Non-Executive Director
• Professor John Latham CBE as Chair of the Audit and Risk Assurance Committee (ARAC) and Non-Executive Director
• Iain Anderson as Non-Executive Director
• Katharine Braddick as Non-Executive Director
• Mike Clancy as Non-Executive Director
• Nita Clarke OBE as Non-Executive Director
• Dr Roni Savage as Non-Executive Director
• David Sayer as Non-Executive Director

Non-Executives have been appointed for 3 years and will provide independent advice, support and scrutiny on the department’s work. The new Non-Executives bring a wide range of senior experience across the public and private sectors, as well as a wealth of knowledge relevant to delivering the Secretary of State’s priorities.

Background

Non-Executives are experts from outside government who provide advice, support and challenge to the department in the delivery and performance of key policy areas and against priority outcomes.

• The Secretary of State has appointed Nita Clarke without competition in accordance with the Governance Code on Public Appointments and following consultation with the Commissioner for Public Appointments. Nita’s appointment will bring additional skills and experience in employee engagement, partnership, and employee voices in the workplace.
• Karina McTeague will continue in her role as ARAC Chair until the 2023-24 Annual Report and Accounts are laid, after which John Latham will take up this role and Karina will step down.
• These appointments have been made in accordance with the Cabinet Office’s Governance Code on Public Appointments. Under this Code, any significant political activity undertaken by an appointee in the last five years must be declared. This is defined as having been employed by a political party; held significant office in a political party; stood as a candidate for a political party; publicly spoken on behalf of a political party; or made significant donations or loans to a political party. Iain Anderson has declared political activity and speaking publicly for both for the Conservative Party and for the Labour Party. Nita Clarke has declared political activity for the Labour Party.

The press release issued by the Department for Business and Trade on 17 December 2024.

Government publishes its response to the independent Kroll report on Capture software.

• Following independent Kroll report, government commits to redress for postmasters who have suffered losses as a consequence of Capture errors
• Work to be completed quickly with those affected to determine appropriate redress for those without criminal convictions
• Government confirms £37.5 million subsidy to support Post Office network as company sets out £20 million boost for postmasters

Today the government has officially recognised Capture, the software which preceded Horizon, could have created shortfalls affecting postmasters. It has asked the Post Office to urgently review its files and evidence so the CCRC and SCCRC can ensure no one was wrongfully convicted of a Horizon-style injustice.

Responding to the independent Kroll report into the software, the Business Secretary has promised to provide redress for postmasters who suffered losses as a result of Capture. The government will work swiftly with victims to determine its form and scope, alongside eligibility criteria, by Spring 2025.

The Capture accounting system was rolled out across some Post Office branches from 1992 before it was replaced by Horizon in 1999. The government commissioned the independent report following postmasters coming forward publicly in January indicating they had faced detriment due to the Capture system. In its report, Kroll concluded Capture could have created shortfalls.

The response comes as the government marks £499 million paid to more than 3,300 Horizon victims. We are delivering on our promise to ensure swift and fair redress to postmasters, more than doubling the amount of redress paid out since coming into government 5 months ago.

Business and Trade Secretary Jonathan Reynolds said:

It is thanks to testimony of postmasters that this has been brought to light and failings have been discovered.

We must now work quickly to provide redress and justice to those who have suffered greatly after being wrongly accused.

I’d like to encourage anyone who believes they have been affected by Capture to share their story with us so we can put wrongs to right once and for all.

Post Office Minister Gareth Thomas said:

It’s taken a long time to reach this point which is why my priority now is to deliver justice and redress to postmasters as swiftly as possible.

We will do everything we can to correct the mistakes of the past and ensure they are not repeated.

Postmasters have raised concerns with me that their income has not kept up with inflation over the past decade. The Government therefore welcomes that the Post Office is going to make a one-off payment to postmasters to increase their remuneration.

Due to the length of time which has passed since the Capture system was in use several issues have complicated the investigation including:

• Far greater timescales, meaning a greater population of the users may have sadly died
• Loss or destruction of relevant evidence for example relating to shortfalls, suspensions, terminations, prosecutions, and convictions
• At least 19 different operational versions of the Capture software during the period
• Ambiguous number of users during this period

Unlike Horizon, it is currently uncertain how many criminal prosecutions were based on Capture evidence. These challenges also mean it will be difficult for claimants to corroborate their claims with evidence.

The Post Office has indicated it holds further information on convictions and prosecutions during the Capture period. The government has asked them to carry out their review of these records urgently and send information to the Criminal Cases Review Commission (CCRC) and Scottish Criminal Cases Review Commission (SCCRC).

Ensuring postmasters receive the justice they deserve is an immediate priority for this government. The Kroll report does not take a view whether any possible convictions were unsafe. We will continue to facilitate the provision of information to the CCRC and SCCRC, alongside the Post Office, in connection with the review of cases involving the use of Capture as the approach to redress is developed at pace.

Minister Thomas will also announce the government is supporting the Post Office network with a further £37.5 million subsidy. It comes as the Post Office today announces a £20 million boost for postmasters to address their concerns that their income has not kept up with inflation over the past decade.

Under the Plan for Change, this government will make public services deliver for working people once more. The Post Office is an important British institution at the heart of local communities, but for too long neglect has enabled significant issues to take root. We will strengthen the Post Office network – pledged in our manifesto – so the people’s trust can be restored.

The press release issued by the Department for Business and Trade on 17 December 2024.

The government has announced the members of the Industrial Strategy Advisory Council, as the government looks to deliver long-term growth in key sectors.

• Government partners with private sector to grow the economy and bring good jobs to every part of the UK.
• Members of the Industrial Strategy Advisory Council unveiled as the government looks to deliver long-term growth in key sectors.
• Members include Dame Anita Frew, Chair of Rolls-Royce and Greg Jackson CBE, CEO of Octopus Energy.
• Bringing together experts from businesses, academia and trade unions from across the UK, the Council will inform the development of a new modern Industrial Strategy.

Business leaders from across the UK have been brought together to offer government independent advice and recommendations as it develops a new, modern Industrial Strategy to support the growth mission.

The strategy will help maintain a pro-business environment to capture a greater share of internationally mobile investment and motivate domestic business to boost their investment and scale up their growth. It will channel support to sectors and geographical clusters that have the highest growth potential for the next decade.

This government wants the UK to be a prime investment opportunity for business. The Industrial Strategy, and the Industrial Strategy Advisory Council, will be key to giving investors the solid foundation on which to build.

An integral part of the government’s Plan for Change to kickstart economic growth, the Industrial Strategy will focus on promoting the UK’s key growth-driving sectors.

The Chancellor of the Exchequer Rachel Reeves and Business and Trade Secretary Jonathan Reynolds will attend the inaugural Industrial Strategy Advisory Council meeting to hear from its members as it meets for the first time today [Tuesday 17 December].

Hosted at Lloyds Insurance in London, members will use the first meeting to discuss investment, innovation, and breaking down barriers to growth in key sectors as well as some emerging themes in responses to October’s Industrial Strategy Green Paper.

The government is determined to go for growth and to work in partnership with business, civil society, trade unions, local leaders and devolved governments to invest in Britain’s future so we can make every part of the country better off.

Chancellor of the Exchequer Rachel Reeves said:

Driving long-term economic growth requires ambition and collaboration.

With the Industrial Strategy Advisory Council, we’re bringing together the brightest minds to inform our Industrial Strategy and deliver growth that will improve living standards and that can be felt across every corner of the UK.

Focusing on growth-driving sectors, our highest potential city regions and clusters, and how the pro-business environment can help them thrive, the Council will also monitor and evaluate impact, with data and analysis central to this mission.

Following today’s meeting, Council members will embark on an extensive programme of engagement to take account of views from businesses, academia, devolved governments and local leaders across the UK, building on the more than 3,000 consultation responses received in response to October’s Green Paper.

Business and Trade Secretary Jonathan Reynolds said:

The UK is one of the most connected places in the world to do business, and investors should be in no doubt that Britain is back on the global stage, helping attract investment into the most productive parts of the UK economy.

Whether it is investment into new film studios, cutting-edge technologies, or green energy, the expertise and work of the Industrial Strategy Advisory Council will be key to giving investors the solid foundation on which to build, helping to support local skilled jobs and raising living standards in communities across the UK.

The Council will be an independent body, reporting to the Chancellor and the Business and Trade Secretary. In the King’s Speech the government committed to putting the Council on a statutory footing – giving it powers and responsibilities and ensuring it will be permanent and independent.

Chaired by Clare Barclay, President, Enterprise & Industry for EMEA, Microsoft, the Council will inform and monitor both the development and delivery of the Industrial Strategy over the long term, ensuring policy interventions are informed by a broad and high-quality evidence base. Membership of the Council includes ex-officio members providing cross-government join up on the government’s key missions.

Clare Barclay, President, Enterprise & Industry, EMEA and Chair of the Industrial Strategy Council said:

I’m delighted to join together with members of the Industrial Strategy Advisory Council today for our inaugural meeting.

Our mission is to provide a clear, independent voice on behalf of business, nations, regions, and trade unions, as we look to inform the development of the Industrial Strategy, helping to create a strong business environment which will help our growth-driving sectors thrive.

The Industrial Strategy is at the heart of the government’s Plan for Change with investment and reform to deliver growth, putting more money in people’s pockets, rebuilding Britain and securing our borders in a decade of national renewal.

Full list of Industrial Strategy Advisory Council members:

• Clare Barclay, President, Enterprise & Industry, EMEA, Microsoft (Chair)
• Professor Dame Nancy Rothwell DBE, former Vice Chancellor of the University of Manchester (Deputy Chair)
• Kate Bell, Assistant General Secretary of the Trades Union Congress
• Rt Hon Greg Clark, Executive Chair, University of Warwick Innovation District
• Professor Dame Diane Coyle, Bennett Professor of Public Policy, University of Cambridge
• Dame Anita Frew DBE, Chair, Rolls-Royce Holdings
• Chris Grigg, Chair of the National Wealth Fund (ex officio)
• Greg Jackson, CEO, Octopus Energy
• Sir John Kingman, Chair, Legal & General and Chair, Barclays UK
• Tunde Olanrewaju, Senior Partner, McKinsey
• Professor Henry Overman, Professor of Economic Geography, LSE
• Henrik L. Pedersen, CEO, Associated British Ports
• Richard Pennycook, interim Chair, Skills England (ex officio)
• Dr Aislinn Rice, Non-Executive Director, Software NI
• Roy Rickhuss, General Secretary, Community Trade Union
• Baroness Shriti Vadera, Chair, Prudential plc and Chair, The Royal Shakespeare Company

The press release issued by the Department for Business and Trade on 16 December 2024.

Government reaches legally binding agreement with EP Group that protects Royal Mail’s workers and key services whilst keeping it headquartered in the UK.

• Business Secretary reaches agreement with Royal Mail’s prospective new owners in latest example of government working hand in hand with private sector to improve crucial public services.
• Agreement backs Government’s Plan for Change, creating the strong foundations needed in Britian’s supply chain to kickstart economic growth and deliver for workers.
• Deal protects workers and key services whilst seeing Royal Mail continue to be headquartered in Britain, securing jobs and tax receipts in the UK.

The Business Secretary, Jonathan Reynolds, has today [16 December] received legally binding commitments from Royal Mail bidder Daniel Křetínský that are intended to secure the long-term, sustainable future of Royal Mail whilst protecting crucial services for millions of customers across the UK.

This significant agreement, between the Department for Business and Trade and Daniel Křetínský’s EP Group, contains commitments that protect, and secure investment in, Royal Mail’s postal network which is important to everyone from small business owners in Southampton to online shoppers in Shetland.

These commitments deliver on the Government’s Plan for Change, kickstarting economic growth by providing stability to a national institution that strengthens the foundations of Britain’s domestic supply chain and delivers better public services to people across the whole country.

Business Secretary Jonathan Reynolds said:

For too many years progress on securing a stable future at Royal Mail has stalled, but from day one we have been committed to providing a secure future for thousands of workers and customers.

Today’s agreement is yet another example of this Government’s commitment to working hand in hand with business to generate reform give respite to people right across the UK, as we are working towards ensuring a financially stable Royal Mail with protected links between communities other providers can’t reach.

I’d like to thank EP Group and Daniel Křetínský for their constructive approach to our discussions and their commitment to protecting this national icon. I look forward to working with them to fix the foundations and ensure Royal Mail continues to deliver for the communities and businesses who rely on it most.

Recognising the importance of Royal Mail as an iconic national institution, the government has negotiated a ‘Golden Share’ which will ensure that, with very limited exception, the headquarters of Royal Mail cannot be moved abroad and that Royal Mail cannot change where it pays its taxes, in either case without UK government approval.

These restrictions will apply to any future owners of Royal Mail and, alongside other commitments to the brand and cypher, secure Royal Mail’s identity as an iconic British institution whilst also allowing it to operate as a fully private company without day-to-day government interference.

EP Group have also committed to honour any new agreements entered into with the postal unions, recognising that workers should be placed at the heart of a sustainable Royal Mail.

After months of constructive engagement, these legally binding commitments were voluntarily offered by EP Group in recognition of the significant contribution that Royal Mail makes to Britain’s national identity and the importance that it has in everyday life in the UK.

EP Group Chairman Daniel Křetínský said:

EP Group is very pleased to have reached this historic agreement with the Business Secretary to safeguard the future of Royal Mail, under EP Group ownership.

We would like to thank the Business Secretary for the constructive negotiations that have resulted in unprecedented commitments and undertakings that demonstrate the high regard EP Group has for Royal Mail as an institution, the service it provides to millions of UK homes and businesses, and Royal Mail employees.

EP Group is a long term and committed investor with a mission to make Royal Mail a successful modern postal operator with high quality service and products for its customers. We look forward to delivering on this mission alongside our partners in government.

Millions of small businesses and consumers across the country rely on Royal Mail for everything from magazines to medicine deliveries, which is why protecting its future following any takeover is critical.

The commitment we have offered include significant financial safeguards including assurances around financial investment and restrictions on value extraction linked to the financial strength of the Royal Mail business and the achievement of specific service level standards.

Today EP Group has also announced that it has reached negotiators’ agreements with the unions representing Royal Mail’s workforce. The Government welcomes the negotiators’ agreement and is confident that the constructive and collaborative approach between the unions and the buyer can represent a restart for Royal Mail.

Postal Services Minister Justin Madders said:

We have agreed these commitments with EP Group with the intention of securing the best outcome possible for Royal Mail’s customers, incentivising high performance and protecting the important services communities rely on.

Royal Mail’s workers will also play a crucial role in getting the company back on track, and I’m pleased that EP Group and the CWU have worked quickly to reach an agreement on their part in the takeover.

A sustainable Royal Mail is a successful Royal Mail, and through this agreement we’re paving the way towards a brighter future where it can be a source of national pride once again.

Communication Workers Union General Secretary Dave Ward said:

We are pleased to have reached a negotiators settlement with EP Group covering crucial areas such as job security, the governance of the company, a meaningful stake in the business for employees, restoring quality of service, legally binding commitments and improving the terms and conditions of our members.

This agreement provides the foundation to rebuild Royal Mail. These have been challenging negotiations but through the support of our members we have delivered what by any measure is a groundbreaking agreement which puts postal workers and customers back at heart of everything Royal Mail does.

NOTES TO EDITORS

Summary – EP Group / DBT – Deed of Undertaking 

Institutional Stability

Significant commitments to provide certainty over Royal Mail’s [and IDS’s] position as a key UK business, including:

• Amending the Royal Mail Articles of Association, to ensure that HMG permission is sought before moving Royal Mail’s HQ, central operations or tax residency out of the UK (by way of a ‘Golden Share’ owned by HMG).
• Committing to IDS retaining its HQ and tax residency in the UK for at least five years.
• Ensuring that the Secretary of State is notified prior to the onward sale of the Royal Mail Group (RMG).
• Ensuring the Royal Mail brand is protected.
• Committing to no change in the control of GLS or Royal Mail for three years.

Financial Sustainability

Commitments from EP to maximise the chances of Royal Mail’s financial success by:

• Committing to prevent value extraction (subject to limited exceptions) until two tests are satisfied:
• A financial test that considers the debts of RMG so that value cannot be extracted if the company is heavily indebted.
• A quality test to ensure that value is not extracted unless RMG has maintained or improved its performance as against its 2023-24 quality of service performance.
•  Restructuring the RMG balance sheet to remove an existing, substantial intra-group debt.
• Ensuring RMG retains ownership or control of, or access to, assets necessary to deliver the universal service obligation.
• Ensuring that Royal Mail has sufficient financial means to meet the planned capital expenditure required to implement its transformation agenda over the next three years.
• Other than in the context of the existing IDS bonds, ensuring that RMG does not assume liability for any non-RMG debt (including any refinancing of the acquisition debt) until such time as the return of value criteria above are met.

Regulatory Environment

Recognising the importance of postal services to UK citizens, there are further commitments from EP to:

• Meet the core regulatory requirements that RMG is subject to, including:

1. ensuring RMG is the universal service provider for as long as EP Group is in control; and
2. maintaining “one-price-goes-anywhere” service, with first class letters delivered six days a week.

• Include a UK/British nationality requirement for at least two RMG directors.
• Continue engagement, funding and participation with the Universal Postal Union (the UN Specialised Agency for international postal cooperation, which sets the rules for international mail exchanges and makes recommendations to boost mail, parcel and financial services volumes, while improving service quality).
• If RMG were ever re-listed on a public stock exchange, commit to do so on the London Stock Exchange.
• Consult certain Crown Dependencies & Overseas Territories on key proposals affecting their designated operators or changes to terms of service.
• Maintain commitments for RMG to achieve net zero by 2040 and GLS to reach zero CO2 emissions  by 2045, including by modernising and electrifying its fleet and cutting emissions.
• Ensure HMG has sufficient access to RMG and information to monitor compliance with all undertakings.

Stakeholders

Royal Mail’s workforce is an integral part of day-to-day life in the UK and the commitments from EP recognise this by:

• Continuing to recognise the relevant postal-worker unions.
• Committing to negotiate in good faith with the relevant unions and comply with any new agreements RMG enters into with those unions.
• Not taking any amount of surplus from the Royal Mail Pension Plan out of RMG.

The press release issued by the Department for Business and Trade on 15 December 2024.

The UK has today officially joined CPTPP as a fully-fledged member, potentially boosting the UK economy by £2 billion a year in the long run.

The UK has today [15 December] officially joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a fully-fledged member, potentially boosting the UK economy by £2 billion a year in the long run.

CPTPP is a major trade bloc whose members – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and now the UK – have a combined GDP of £12 trillion.

The UK’s accession is estimated to benefit all UK nations and regions in the long run, relative to 2019 values, with boosts of £240 million for Scotland, £110 million for Wales, and £70 million for Northern Ireland. All English regions are also estimated to gain, including £450 million for the South East and £310 million for the North West.

From today businesses across the country will face lower tariffs and fewer barriers when selling to economies across three continents, with the financial services, manufacturing and food and drink sectors in particular set to benefit, helping to support the Government’s Plan for Change by boosting household wages by £1 billion every year and delivering on one of the five missions of kickstarting economic growth.

Business and Trade Secretary Jonathan Reynolds said:

Britain is uniquely placed to take advantage of exciting new markets, while strengthening existing relationships. Today’s news is further proof that the UK is a wonderful place to do business, with an open, outward looking economy driving the growth people can feel in their communities.

Agreements like this boost trade and create opportunities for UK companies abroad. This is a proven way to support jobs, raise wages, and drive investment across the country which is key to this Government’s mission to deliver economic growth.

Our Trade Strategy, published next year, will finally put in place a long-term, strategic plan for international trade that helps businesses and consumers and, ultimately, grows the economy.

CPTPP is designed to expand over time, further growing the economic and strategic benefits of the agreement. Costa Rica was recently announced as the next country to go through the process of joining, and other economies such as Indonesia  – the largest economy in Southeast Asia, with a GDP of over £1 trillion and home to around 280 million people in 2023 – have already expressed an eagerness to join the bloc.

CEO of HSBC UK Ian Stuart said:

Being part of the CPTPP signals that the UK is open for business with some of the world’s most exciting growth markets. Since the announcement of the UK’s accession in July 2023, we have seen an increase in payments between the CPTPP markets and the UK, and we expect this growth to continue. As the world’s leading trade bank, with deep roots across many CPTPP countries, we are well-positioned to connect UK businesses with growth opportunities in markets such as Japan, Singapore, New Zealand, Vietnam, Malaysia, and Australia.

Chairman and CEO of Chivas Brothers Jean-Etienne Gourgues said:

At a time of increasing barriers to trade globally, the UK’s accession to the CPTPP is welcome news for Chivas Brothers Scotch whisky business.  Improved access to markets in dynamic regions like South East Asia and Latin America in a trading bloc which covers almost a fifth of the total value of Scotch whisky exports should help boost our £1BN annual exports.

Chief Executive Officer of Scalerr Matthew Borthwick said:

International expansion isn’t just for the big businesses out there. Due to agreements like the CPTPP, UK SMEs will also benefit, making it easier to trade with CPTPP countries. As a tech scale-up consultancy with customers across the world, we at Scalerr welcome the support the CPTPP will provide by reducing costs, easing administrative burdens, and facilitating international trade.

Sectors like automotive and food and drink will be able to benefit from CPTPP membership, including through modern “rules of origin” provisions which allow goods to qualify for lower tariffs when built from parts from CPTPP countries then exported to a CPTPP country. For example, a UK car engine manufacturer using components from other CPTPP countries could more easily qualify for lower tariffs when exporting the final engine within CPTPP.

UK services firms, which employ over 80% of our workforce, could also find it easier to export their services to CPTPP countries, with firms allowed to manage funds across the world from the UK and provide services to CPTPP markets on a level playing field with domestic firms in key sectors.

Prices on consumer goods could also fall if savings are passed on by importers, with tariffs removed on items like fruit juices from Peru and vacuum cleaners from Malaysia.

Through CPTPP, the UK now has free trade deals with Malaysia and Brunei for the first time, economies with a combined GDP of over £330 billion last year.

CPTPP’s entry into force comes as the UK edges closer to securing trade deals with partners such as the Gulf Cooperation Council, India, Switzerland and South Korea. These form one half of this government’s twin-track approach to trade which seeks to reset our relationship with the EU at the same time as striking new trade deals.

Background

• The CPTPP agreement enters into force on 15 December between the UK and members who ratified our accession by 16 October: Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore, and Vietnam. It will enter into force shortly afterward with Australia, on 24th December. It will enter into force with Canada and Mexico 60 days after they each ratify.
• New guidance for businesses published today will inform them of new ways to reach these markets.
• ONS research has found that UK businesses exporting goods were on average 21% more productive than those that do not export.
• Source (£12 trillion in 2023): IMF World Economic Outlook Database, October 2024 edition and Bank of England exchange rates
• Source (21% more productive): ONS, UK trade in goods and productivity: new findings, July 2018
• Source (£2 billion long run impact and £1 billion to household wages): CPTPP impact assessment

The press release issued by the Department of Business and Trade on 13 December 2024.

• Muhammadh Chaudhry secured Covid Bounce Back Loans worth £100,000 in 2020 for two businesses which appeared never to trade
• Chaudry was previously known as Masood Jamati, the name he provided when making his first fraudulent application
• His second application was made just days after changing his name to Muhammadh Chaudhry and money from both loans was transferred through family members’ bank accounts back to him
• Chaudhry was handed a suspended sentence and director disqualification and has committed to paying back the money in full

A Surrey director who fraudulently claimed £100,000 in Covid loans and moved the money through his family’s bank accounts has been given a suspended sentence.

Muhammadh Chaudhry, who previously went by the name of Masood Jamati, secured a £50,000 Bounce Back Loan for a media business in July 2020.

The 41-year-old then fraudulently obtained another £50,000 loan for UK Media Kit Hire Ltd in September 2020, which he claimed was a film and TV production company.

Money from the two loans was transferred through savings accounts held by close relatives.

Chaudhry, of Scotland Bridge Road, Addlestone, was sentenced to two years in prison, suspended for 22 months, at Guildford Crown Court on Wednesday 11 December.

He was also banned as a company director for seven-and-a-half years.

Chaudhry repaid the UK Media Kit Hire loan back in full during August and September 2024. He has also paid back £2,000 of the £50,000 from the second loan and agreed to repay the remaining balance.

Mark Stephens, Chief Investigator at the Insolvency Service, said:

Muhammadh Chaudhry cynically invented a turnover figure to secure Covid support for his media business which we found absolutely no evidence had ever traded.

He then fraudulently applied for a second Covid loan for UK Media Kit Hire, another company which again appears never to have done any business.

These actions were clearly pre-planned and Chaudhry deliberately chose to take advantage of a taxpayer-backed scheme which was set up to support legitimate businesses during the pandemic.

While we are of course pleased that Chaudhry has eventually accepted responsibility for his actions and committed to paying back the money in full, we note that this was only done when he was faced with potentially even more serious consequences.

Chaudhry first applied for a Bounce Back Loan at the start of July 2020, falsely claiming his annual turnover was £200,000 as a sole trader.

His second Bounce Back Loan application in September 2020 came just four days after he changed his name from Masood Jamati to Muhammadh Chaudhry.

Chaudhry claimed that the turnover for UK Media Kit Hire was again £200,000, the smallest amount businesses could put down in order to receive the maximum £50,000 permitted under the scheme.

Insolvency Service investigators found no evidence that UK Media Kit Hire had ever traded.

Chaudhry agreed to use the loans “wholly for business purposes” in making the applications.

However, money from the loans was moved through his family’s savings accounts before being paid back to him and his wife and withdrawn in a series of cash and cheque transactions.

Bank analysis revealed that money in the account was also used for holidays to Pakistan.

UK Media Kit Hire was dissolved in January 2021.