Tag: Business and Trade Department

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.

The press release issued by the Department for Business and Trade on 1 October 2024.

Workers will now keep 100% of their tips, gratuities and service charges following new act coming into effect.

• Laws to ensure workers keep all of their hard-earned tips comes into effect
• Changes expected to boost wages by putting £200 million back in the pockets of workers
• Comes ahead of employment rights bill which will go further to strengthen workers’ rights and make work pay

From today [Tuesday 1st October], millions of hard working and dedicated workers will benefit from new laws which will ensure they keep 100% of the money they have earned through tips.

Introduced through a Private Members’ Bill last year, the Employment (Allocation of Tips) Act and the statutory Code of Practice on fair and transparent distribution of tips came into force today.

These changes will require employers to pass all tips, gratuities, and service charges on to workers, without deductions.

From today, if an employer breaks the law and retains tips, a worker will be able to bring a claim to an employment tribunal.

Most employers already pass on tips to the staff who earn them; however these laws will crack down on the minority of businesses who continue unacceptable tipping practices.

Employers in the wrong could be made to pay fines or compensation to staff, with workers able to hold bosses fully accountable through employment tribunals.

The Department for Business and Trade estimates that today’s changes will mean around £200 million will be received by workers that would otherwise have been retained by these employers.

It is hoped that this will build further trust between customers and businesses, as well as create a level playing field for all businesses through the fair and transparent distribution of tips across the board.

Minister for Employment Rights Justin Madders said:

“When you tip someone for good service, you expect them to keep all their tip. They did the work – they deserve the reward.

“This is just the first step of many in protecting workers and placing them at the heart of our economy. We will be introducing further measures on tipping to ensure workers get their fair share of tips.

“Britain’s outdated employment laws require an urgent update. This Government will ensure they are fit for the modern economy and deliver on our plan to Make Work Pay.”

This government will go even further to strengthen workers’ rights through our Employment Rights Bill which will ensure workplace rights are fit for a modern economy, empower working people and drive economic growth.

The legislation will be delivered in close partnership with business and civil society and will strike the right the balance between improving workers’ rights while supporting businesses across the country that pay people’s wages.

Andrew Tighe, Director of Strategy and Policy at the BBPA, said:

“This new framework will introduce a level playing field for all businesses, ensuring that those who were not already passing on all tips to their staff will now be required to.

“A greater a degree of consistency and transparency when dispersing tips will benefit both existing and new staff alike.

“We would urge all operators to review the guidance and ensure their policies are compliant with the legislation.”

Ben Thomas, CEO of TiPJAR, said:

“Our hospitality and service industries are powered by a wonderfully diverse and exceptionally talented workforce. For the first time, these millions of workers can trust that tips employers collect on their behalf will always be passed to them.

As a business providing a platform to get tips to workers quickly, fairly and transparently, we wholeheartedly welcome today’s announcement. We look forward to continuing our work with the DBT and government to develop further guidance as the principles of the legislation are put into practice, supporting businesses across the sector to operate to a consistent and equitable standard in handling tips.”

Notes to editors:

• Code of Practice: Distributing tips fairly: statutory code of practice – GOV.UK – https://www.gov.uk/government/publications/distributing-tips-fairly-statutory-code-of-practice
• Non-Statutory Guidance: Distributing tips fairly: non-statutory guidance for employers – GOV.UK – https://www.gov.uk/government/publications/distributing-tips-fairly-non-statutory-guidance-for-employers
• The Code of Practice is statutory and has legal effect. This means that it can be introduced as evidence in the Employment Tribunal.
• These new measures will apply to all sectors in England, Scotland and Wales. Employment policy is devolved to Northern Ireland.

The press release issued by the Department for Business and Trade on 27 September 2024.

Government reappoints Professor Sir Steve Smith as its International Education Champion, supporting the promotion of UK education excellence around the world.

• Sir Steve will continue to support the government’s international education work
• His work will promote UK excellence in education around the world
• Officials will conduct a review of the International Education Strategy

Sir Steve Smith has been reappointed as the UK Government’s International Education Champion.

Reappointed by Minister for Exports, Gareth Thomas, and the Skills Minister, The Rt Hon Baroness Smith, Sir Steve’s tenure as International Education Champion (IEC) has been extended for one year from 1 October..

Under a commitment made in the UK Government’s International Education Strategy, published in 2019, Sir Steve was originally appointed as IEC in June 2020 for a four-year term.

In his role as IEC, Sir Steve will continue to support the government’s international education work, including engaging with governments around the world and promoting UK excellence and partnerships in all education sub-sectors.

More widely, with the change in government, officials will conduct a review of the International Education Strategy, which will ensure that it continues to be an effective tool in increasing the value of education exports, promote policy dialogue and reflect the priorities of education stakeholders, businesses and Ministers.

Sir Steve was previously Vice-Chancellor of University of Exeter for 18 years and brings vast experience to the IEC role, where he has played a pivotal role in developing deep relationships, including at Ministerial level internationally.

In his role as IEC, he has already supported significant progress across priority countries including:

• Leading over 500 meetings with stakeholders and 22 visits overseas , which has helped open the door for education exports, now amounting to more than £28bn.
• Taking forward the relationship with education ministers in particular with Saudi Arabia, to develop the pipeline of opportunities for UK education suppliers relating to the Kingdom’s Vision 2030; and Nigeria, where the UK has co-written the country’s guidelines for Transnational Education, opening up opportunities for UK universities to provide their offer in Nigeria.
• Leading a delegation of 31 UK higher education institutions to India, where a range of partnership opportunities have been progressed.

On his re-appointment, Prof. Sir Steve Smith said:

“I am absolutely delighted to be continuing in my role as the UK’s International Education Champion, working with the government, both at home and overseas, to ensure that the UK makes the very most of international opportunities, across the breadth of the UK’s world-leading education sector.

“It’s a critical time for the education sector and I look forward to building on the trusting relationships we have with our partners around the world.”

Exports Minister Gareth Thomas said:

“The UK is an international powerhouse when it comes to our education services, and I’m very pleased that Sir Steve will be continuing in his role to champion the country around the world.

“I want to see more UK educators exporting their brilliant services around the world, and promoting our high standards, that’s why Sir Steve’s work is so important.”

Baroness Smith, Minister for Skills, said:

“Sir Steve has a wealth of experience in showcasing our brilliant education sector, and I am thrilled that he will continue in this role for a further year.

“The UK is rightly regarded as an education powerhouse and Sir Steve’s vital work will continue to strengthen that reputation around the world, driving economic growth and boosting our global prestige.”

The press release issued by the Department for Business and Trade on 26 September 2024.

Lord Lancaster’s appointment as the HMG Defence and Security Advocate extended by the Business and Trade Secretary.

• Business and Trade Secretary Jonathan Reynolds extends Lord Lancaster’s contract as Defence and Security Advocate for a further three months.
• Lord Lancaster will continue to engage with industry leaders, ministers and other key players both in the UK and overseas to build export relationships with the UK’s partners.

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 for a further three months until 20 December 2024.

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.

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 25 September 2024.

New package of measures aimed at tackling scourge of late payments.

• New Fair Payment Code and fresh rules on company reporting and major consultation unveiled as part of package to tackle late payments
• Scourge of late payments costs SMEs £22,000 a year with 56 million hours of lost productivity, according to Intuit Quickbooks, across the economy – acting as a major brake on growth
• Comes as Business Secretary set to visit food and drink businesses in Manchester struggling with late payments

The government has unveiled new measures today to support small businesses and the self-employed by tackling the scourge of late payments, which according to the Smart Data Foundry is costing SMEs £22,000 a year on average and according to FSB research, leads to 50,000 business closures a year.

The government will consult on tough new laws which will hold larger firms to account and get cash flowing back into businesses – helping deliver our mission to grow the economy.

In addition, new legislation being brought in the coming weeks will require all large businesses to include payment reporting in their annual reports – putting the onus on them to provide clarity in their annual reports about how they treat small firms. This will mean company boards and international investors will be able to see how firms are operating.

Enforcement will also be stepped up on the existing late payment performance reporting regulations which require large companies to report their payment performance twice yearly on GOV.UK.

Under current laws, responsible directors at non-compliant companies who don’t report their payment practices could face criminal prosecutions including potentially unlimited fines and criminal records.

The consultation which will be launched in the coming months, will also consider a range of further policy measures that could help address poor payment practices.

FSB research shows that every quarter in 2022, 52% of SMEs small firms in the UK suffer from late payments, meaning roughly 2.8 million small firms face this issue, with the Federation of Small Businesses describing it as one of the biggest problems facing SMEs.

Late payments are just one element of the problem, with some SMEs forced to wait months for contracts to be fulfilled and some are even forced to take out loans against their own homes to manage cash flow.

Cracking down on late payments will unlock growth for 5.5 million small firms by enabling them to invest their time hiring more employees, boosting wages, and exporting around the world, rather than chasing down late payments.

The Business Secretary will hold a joint call with the Federation of Small Businesses later today to outline to SME leaders the work the Department will undertake to put in place tough new laws to end bad payment culture. New proposals, subject to consultation, will be bought forward on audit and audit committees, in order to help rebuild small businesses’ trust that they will be paid on time and to deliver on Labour’s manifesto commitment to tackle late payments.

Prime Minister Keir Starmer said:

We’re determined to back small businesses by unlocking their barriers to growth, and stamping out late payments is at the heart of this.

We know how important it is for business owners to have the peace of mind and certainty around their cashflow to keep their businesses alive. Late payments cost businesses tens of thousands of pounds and is one of the biggest reasons businesses collapse.

After years of delay, we’re bringing forward measures that small businesses have long been calling for to tackle late payments once and for all.

Business Secretary Jonathan Reynolds said:

Late payments are simply unacceptable and this government is determined to level the playing field for small business. When the cashflow runs dry, small firms go under which is why we need to hold larger business to account with their payment practices and foster an environment that supports growth and jobs.

Slashing trade barriers, reforming business rates, getting more SMEs exporting – this government is committed to small firms. We know there’s a lot more to be done, but today we are calling time on late payers once and for all.

A new Fair Payment Code has also been announced today replacing the old Prompt Payment Code, and will be open to signatories this autumn. Businesses will need to prove they have met good payment standards before being awarded official code status.

This will be designed to push businesses to pay faster more often, to be awarded either gold, silver or bronze status. The Code will also shine a light on those responsible businesses doing the right thing by their suppliers and small firms.

It comes as part of our wider work to support SMEs to help go for growth with reform to business rates, getting more small firms exporting and our new industrial strategy. The Secretary of State and Small Business Minister Gareth Thomas will discuss the new measures with small businesses later today.

Small Business Minister Gareth Thomas said:

Small businesses deserve to be paid on time, it’s as simple as that. I’m optimistic that today’s first big step will help pave the way for real change that supports SMEs to thrive and help to grow our economy.

New research published by the Department for Business and Trade has found payment problems multiply the further down the supply chain you go. With delays to payments increasing with each business along a supply chain, this results in smaller businesses generally experiencing more issues with late invoices than larger firms.

These new findings underpin the need to move quickly to crack down on late payments. The research also found that there was a clear imbalance between big and small firms, and that administrative errors are a major factor in creating slow payments with 24% of firms saying that invoices being incorrectly handled added to delays.

The government will work closely with small and large businesses as well as groups such as FSB and Enterprise Nation to discuss what further measures can be considered to crack down on late payments while ensuring we strike the right balance and avoid excessive burdens on businesses.

Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said:

This is what real change looks like. Listening to small firms and prioritising action to tear down each and every barrier to growth.

The Business Secretary has clearly recognised the importance of eradicating bad payment culture, which so devastates the UK supplier base and holds back growth. This series of actions today – including the crucial steps being taken to deliver on Jonathan Reynolds’ commitment on audit committees – shows the Government is rightly focused on delivery and working in partnership with the business community.

There will be so many decisions the Government needs to get right, early – an actively pro-small business budget, a good industrial strategy and tackling late payment. Announcing this programme of work today is a huge confidence boost for the small business community and a clear signal the new Government intends to stand up for small firms.

The Small Business Commissioner, Liz Barclay, said:

I am delighted to announce a new Fair Payment Code will be launched this autumn. The new code will reward businesses that treat their suppliers fairly and pay them quickly. It will also include an ambitious new Gold Award which aims to make 30-day payments the new standard for which businesses can aim.

We need sustainable, resilient businesses at all levels of the supply chains, to achieve the growth the economy needs. That means paying everyone from the largest supplier to the sole trader quicker, so they have the confidence to invest, improve productivity and grow. Fair payment terms and on time payments are the key.

Steve Hare, CEO of Sage, said:

Late payments continue to challenge small and medium-sized businesses, affecting cash flow and growth. The UK Government’s new measures are all positive and show a strong commitment to addressing this issue. We must also focus on technological solutions. E-invoicing, for instance, already used in other countries, reduces late payments by 20% and processing times by 44%, saving small companies an average of £11,300 annually.

Oliver Lloyd-Taylor, Founder of Black Milk, which has a Manchester-based café and sells award-winning pistachio & hazelnut spreads, said:

As a company we have experienced firsthand the sequential impact of late payments to our daily cash flow – which has, at times, lead us to be late with payments ourselves. We welcome the steps that the Government is making today to help protect small businesses, especially safeguarding them from larger businesses being able to utilise smaller businesses as an overdraft facility.”

 Kenny Goodman, co-founder of drinks company Hip Pop said:

Late payments can significantly impact small businesses like ours, especially when it comes to maintaining strong relationships with our suppliers. When we’re paid on time, we can ensure we do the same for those we work with, which is vital to keeping everything running smoothly.

Terry Corby, Founder & CEO of campaign group Good Business Pays said:

On the same day that Good Business Pays published our Autumn 2024 Watchlist of Late & Slow Paying companies, it’s encouraging to see these new late payment measures being announced.

Only reputational pressure from organisations like Good Business Pays, supported with appropriate legislation and enforcement from government, will force a change in late payment behaviour. These new measures announced today will go some way to help drive that culture change.