Tag: Business and Trade Department

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.

The press release issued by the Department for Business and Trade on 12 December 2024.

Government to review Internal Market Act six months earlier and engage with devolved governments throughout.

• Government to review Act six months earlier
• Will engage with devolved governments during the review

The UK Government will fast track a review of the UK Internal Market Act, and work with devolved governments to deliver better outcomes for businesses and citizens across the United Kingdom.

In a written ministerial statement published today, the government pledges to launch a review in January 2025 and complete this by summer 2025 – ahead of the legal deadline for a review by December 2025.

The value of the UK internal market has been estimated at around 10% of the UK’s total GDP, and Scotland, Wales and Northern Ireland trade more with the rest of the UK than with the rest of the world.

The UK Government will engage directly with a wide range of stakeholders, including the devolved governments as part of the review, aiming to improve transparency of the UKIM process and ensuring policy divergence can be aligned with better outcomes for businesses and consumers, and delivering economic growth to every part of the UK.

Minister of State for Trade Policy Douglas Alexander said:

“The UK internal market is essential for the UK economy, allowing people and business to buy and sell goods, provide services and work across the four nations of the UK.

“The internal market has been estimated to be worth around 10% of GDP and Scotland, Wales and Northern Ireland all trade more within the UK market than outside it. It’s crucial we protect that market whilst respecting policy divergence which comes with devolution.

“This UK government is committed to engaging with the devolved governments, and we recognise frustration with how the UK Internal Market Act has operated in the past, particularly the lack of clarity in terms of how it operates.

“That is why we are bringing forward a review of the Act six months earlier that the statutory deadline. We will engage directly with the devolved governments as part of the review in a good faith process that seeks to balance the different policy choices that devolution affords us, while protecting the integrity of the internal market to ensure we can continue to drive for economic growth, jobs and higher living standards.

“This Government is delivering our Plan for Change with investment and reform to deliver growth and put more money in people’s pockets. Reviewing this Act is a key part of that.”

The press release issued by the Department for Business and Trade on 12 December 2024.

Roundtable forms key part of Government’s pro-growth approach and Plan for Change.

Today (12 December), the Business Secretary and Minister for Defence Procurement and Industry will hear from the defence industry hosting a CEO roundtable on driving investment into the sector. It will focus on navigating environmental, social and governance (ESG) principles and how they can pose challenges to growth and attracting investment.

We are delivering on our Plan for Change by driving investment and reform to deliver growth. Today’s roundtable will discuss how to realise the economic potential of the defence sector, and changing perceptions of it among investors – which is essential to kickstarting economic growth and provide greater investment across the UK.

Today’s roundtable will bring together CEOs from some of the UK’s most prominent defence companies, as well as trade associations for the UK’s defence, financial services and manufacturing sectors, with reps from major UK investment banks. This comes just a week after the Defence Secretary launched the Government’s Defence Industrial Strategy – by inviting investors, innovators, industry and trade unions to give their views on how to grow a better, more integrated, more innovative and more resilient defence sector.

It forms a key part of the Business Secretary’s commitment to a ‘pro-growth, pro-business’ approach, and working together with industry to unlock investment into the UK’s key growth sectors and create high-quality jobs.

Business Secretary Jonathan Reynolds said:

Our world-leading defence sector is vital to the economy, supporting thousands of high-skilled, high-paid jobs across the UK. With our Industrial Strategy we’re taking the pro-business, pro-growth approach the sector needs to drive investment in every part of the country.

This government is committed to working together with industry to tackle the challenges they face to attracting investment, and that’s why roundtables like these are so important as we work to give investors the confidence they need for years to come.

Minister for Defence Procurement and Industry Maria Eagle said:

This government recognises the vital role of the defence sector as an engine for growth, strengthening our security and economy.

Only a week after the Defence Industrial Strategy consultation launch, we are ramping up engagement with industry, working hand in hand to tackle shared challenges and identifying opportunities to innovate at speed. Our new Strategy will mobilise the private sector to help face down global threats, direct more public investment to British businesses and create jobs and growth in every nation and region of the UK.

ADS CEO Kevin Craven said:

Our defence sector not only underpins our national security and deterrence capability, but also provides jobs to more than 164,000 people directly throughout the country. For our sector to continue to deliver the social value it is renowned for – alongside its role as a key driver of economic growth – government’s engagement with industry is pivotal to strengthen the UK’s position as a place for defence companies to invest and grow, and from which to export.

ADS welcomes the progress made by this government so far, and industry looks forward to seeing the results of our continued dialogue in securing UK advantage in an increasingly unstable geopolitical environment.

The Government has identified defence as one of eight UK growth sectors its upcoming Industrial Strategy will prioritise for driving investment, supporting the Plan for Change ambitions. This is an important opportunity for the Business Secretary to hear from industry leaders on the challenges they face.

He will also seek views on how the Government can work together with them to help boost investment and tackle challenges such as access to finance, invest-ability and reputation.

The press release issued by the Department for Business and Trade on 18 November 2024.

Government publishes consultation on new measures to tackle unfair and costly subscription traps, which cost consumers £1.6 billion annually.

• Consultation launched on measures to crack down on “subscription traps” and better protect shoppers
• Proposed measures will stop complicated websites and restrictive call centres preventing refunds and cancellations.
• Unwanted subscriptions cost families £14 per month per subscription and £1.6 billion a year in total

New proposals to crack down on subscription traps have been unveiled today as the government launches a consultation on measures to make it easier for consumers to get a refund or cancel unwanted subscriptions.

“Subscription traps” are instances where consumers are frequently misled into signing up for a subscription through a “free trial” or reduced price offer. In some cases if the consumer doesn’t cancel the trial within a set amount of time, they are often automatically transferred to a costly subscription payment plan.

It comes as new figures reveal consumers are spending billions of pounds each year on unwanted subscriptions due to unclear terms and conditions and complicated cancellation routes. Nearly 10 million of 155 million active subscriptions in the UK are unwanted, costing consumers £1.6 billion a year.

Subscriptions can be for anything from magazines to beauty boxes, with many subscriptions having complicated or inconvenient cancellation processes such as phone lines with long waits and restrictive opening hours that can leave consumers feeling trapped.

The consultation sets out proposals to make the refunds and cancellation processes simpler, with a requirement on retailers for greater transparency on their subscription programmes in a way that is proportionate to balance consumer rights without placing unnecessary burdens on businesses.

Business Secretary Jonathan Reynolds said:

Our mission is to put more money back into people’s pockets and improve living standards across this country, tackling subscription traps that rip people’s earnings away is an important part of that.

Everyone hates seeing money leave their account for a subscription they thought they’d cancelled, or a trial that unexpectedly gets extended.

We’re looking to hear from as many businesses, consumer groups, and other interested groups as possible to allow us to set fair regulations that stop this corporate abuse of power whilst retaining the benefits of subscriptions for consumers and businesses.

The government is committed to working with business and consumers alike to deliver competitive markets that see lower prices, more choice and a fairer deal for all.

This is why the government is inviting their views on developing proposals on how refunds should work when a consumer wants to exit a contract, how they should be notified about renewals or the ending of a free trial, and the arrangements businesses need to put in place to help customers conveniently cancel a contract. This includes clear websites that signpost them directly to the cancellation process.

By putting an end to these exhaustive processes and helping consumers take back control of their money, individuals could save on average £14 per month for each unwanted subscription they are able to leave earlier.

The consultation will seek views from a variety of groups who have an interest in the subscriptions market including businesses who offer subscriptions, consumer groups, and enforcement agencies.

The consultation follows the Digital Market, Competition and Consumers Act coming into effect earlier this year.

NOTES TO EDITORS

• The consultation has been published here: Consultation on the implementation of the new subscription contracts regime – GOV.UK
• The government is consulting on the detail of how the regime may work, including:
• How returns and refunds work if a consumer exercises their statutory 14-day cooling-off right to cancel after signing up or after a trial or long-term contract (12 months or more) auto-renews. This includes how the rules work depending on whether the subscription contract is for goods, services, or digital content.
• How remedies work if a consumer exercises their statutory right to cancel their contract because a trader didn’t comply with certain duties, which are terms implied into a subscription contract.
• How contract information and notices must be provided.
• What arrangements traders must put in place to ensure exit processes are straightforward.

The press release issued by the Department for Business and Trade on 14 November 2024.

The Department for Business and Trade has announced four tech scale up businesses as winners of the Unicorn Kingdom Pathfinder Awards.

• Four tech scale up companies announced as winners of the Unicorn Kingdom Pathfinder Awards (UKPA) across innovative categories such as AI and cyber security.
• Programme aims to nurture the world’s most talented scale ups within the UK’s tech ecosystem and help them establish a base in the UK economy.
• The UK has more unicorns than France and Germany combined and continues be a prime destination for tech businesses from across the world.

Four innovative tech scale up businesses tackling challenges from connecting cancer patients to clinical trials, to improving IT systems’ resistance to cyber-attacks, have been announced as winners of the Unicorn Kingdom Pathfinder Awards (UKPA) – the largest global awards for tech scale up companies.

The awards, hosted by the Department for Business and Trade (DBT), provide a unique opportunity to unearth the most promising businesses in tech and builds on the success of the UK’s Tech Rocketship Awards in 2023, which resulted in £67.4 million investment into the UK.

The government is focused on transforming the UK into even more of a magnet for investors and global businesses of all shapes and sizes. The awards serve as a reminder that the UK is the place to do business, helping to advance further opportunities for investment and growth.

Finalists were drawn from four categories: AI, Cyber Security, Connected and Automated Mobility (CAM) technology and Digital Trade Solutions.

The winners were announced yesterday at LinkedIn’s HQ in London, where the 10 finalists pitched to a leading panel of judges from the tech industry. They also heard from entrepreneur Alpesh B Patel OBE in a fireside chat, alongside panellists Envisionit Deep AI and Shopline – two successful businesses that have set up in the UK.

On Thursday, the winners will also attend a roundtable at No10 to discuss their success at the awards, and explore ways in which the UK can maintain its position as a premier destination to grow a business.

Minister for Small Businesses Gareth Thomas said:

We have a thriving tech sector worth over $1 trillion, and our Pathfinder Awards are vital in encouraging more tech scale ups from around the world to do businesses here in the UK.

Not only does the UK have more unicorns than France and Germany combined, but our country continues to be a prime destination for tech businesses from across the world to come and succeed.

Winners of the UKPAs will receive a tailored growth programme to scale up their business in the UK, including support from leading industry and government sector specialists and expertise from DBT’s Global Entrepreneur Programme.

Winners: 

• AI: Massive Bio – an AI-driven platform connecting cancer patients to bio-pharmaceutical clinical trials. The primary goal is for individuals with cancer to be directed to clinical trials tailored almost precisely to their specific condition through accurate and rapid analysis.
• Cyber Security: CyLock – provides a simple solution to test IT systems’ resistance to cyber-attacks, facilitating ready-to-implement solutions for clients to overcome cybersecurity vulnerabilities.
• Digital Trade Solutions: Grubtech – empowering restaurants and grocery chains to adopt omnichannel capabilities without the burden of changing core solutions like point of sales.
• Connected and Automated Mobility: Bottobo – specialises in developing robotics solutions designed to streamline industrial processes and enhance operational efficiency. Mainly focusing autonomous mobile robots (AMRs) and software platforms revolutionising the way warehouses and distribution centres fulfil orders.

Cagatay Culcuoglu, Co-founder and Chief Technology Officer at Massive Bio said:

It’s amazing to win the UKPA award for AI. The UK is a great place to expand globally and for business operations. We are looking forward to building our footprint in Commonwealth nations with the support of DBT and help cancer patients identify the right clinical trials.

Diego Padovan, Chief Executive Officer at CyLock said:

In cyber security, trust is something that is essential to provide your products. This kind of competition is crucial to building trust with our customers.

Mohamed Hamedi, Co-Founder and Chief Technology Officer at Grubtech said:

It’s great to have the UK as a base to accelerate our global expansion. Thank you to DBT for supporting us to open doors, remove barriers, and helping us to hit the ground running.

Sancak Gülgen, Co-Founder of Bottobo said:

We really appreciate the support from the UK government for startups and future unicorns. The most important part is that they have a clear plan for the future needs of the technology and focus for us.

Increasing investment is a mission at the heart of this government. Britain is back and open for business, and our thriving tech sector, already worth $1.1 trillion, shows that the UK is the investment destination of choice.

The UK is one of only three economies in the world with a trillion-dollar tech sector, closely behind the US and China, and we’re encouraging more tech scale ups to come to the UK and operate here.

Our new Industrial Strategy will be international from the start, taking learnings from the best of what has been achieved globally. It will build on the UK’s strengths to support even more international businesses to thrive in our market. That’s why digital and tech is one of our growth sectors that will be a focus of the strategy.