Tag: Business and Trade Department

The press release issued by the Department of Business and Trade on 21 August 2024.

UK commits to funding research and technical assistance aimed at promoting regional growth by facilitating railway development across Southern Africa.

The UK Government today (20 August 2024) announced key initiatives to support regional development, trade, and investment in rail infrastructure at the 2024 conference convened by the Southern African Railway Association in Johannesburg.

British High Commissioner to South Africa, Antony Phillipson, announced that new UK funding would support Crossrail International and Transport for London to share their expertise in support of inclusive economic development in Southern Africa.

Crossrail International, formed to share lessons from the £19 billion (R 450 billion) Crossrail project in the UK, will provide technical assistance to SARA, support SARA in implementing regional policies and regulatory reforms, enabling cohesive network planning and sustainable investment under their long-term masterplan. Crossrail International will also assist in developing the business case for the Railway Centre of Excellence. This approach will be underpinned by a research project to benchmark the SADC rail industry for capacity enhancement and information policy reform and management.

Transport for London (TfL), which facilitates 3.3 billion journeys annually, will also provide technical advice to South African local governments to enhance passenger rail services in major metros and share TfL’s experience of delivering decentralised rail operations to increase public transport access and affordability.

Speaking at the event, British High Commissioner to South Africa, Antony Phillipson said:

We are excited to be part of the effort supporting sustainable development in Southern Africa, fostering collaboration between the UK and SARA to promote regional growth through rail infrastructure development.

Executive Director at Southern African Railways Association (SARA), Babe Botana, welcomed the progress made through the Joint Steering Committee and acknowledged the flagship projects which are intended to kick start the implementation of the LOI signed SADC Railway Regional Strategic Plan 2023 to 2027.

Botana said:

This relationship demonstrates the power of international partnerships, in strengthening the collective capabilities of our organisations to drive our regional railway agenda.

Further information

The Southern African Railways Association (SARA)

The Southern African Railways Association (SARA) is the mandated rail transport body for the Southern African Development Community (SADC) region. Established in 1996 and headquartered in Harare, SARA is dedicated to promoting and advancing rail transport services across the SADC region. It serves as a central hub for railway operators—both public and private—and other rail industry stakeholders in Southern Africa.

SARA provides a platform for collaboration, networking and knowledge-sharing among its members, fostering regional integration and advocating for the rail sector’s interests. The association plays an active role in regional policymaking, holding the mandate for Rail Policy advocacy. SARA’s key focus areas include harmonising regulations across different rail systems, coordinating rail corridors, and promoting infrastructure development. Additionally, SARA is committed to improving rail competitiveness and ensuring equitable intermodal competition within the region.

SARA’s core programmes are designed to enhance various aspects of rail transport, such as operational efficiency including harmonisation, safety in corridors through the development of standards, investment promotion and the adoption of international best practices. These initiatives aim to ensure that rail transport remains competitive, reliable and an integral part of the region’s transport logistics chain. The overarching goal is to develop a robust and efficient rail network across Southern Africa, essential for stimulating economic growth, facilitating regional integration, and improving the socioeconomic well-being of the region’s population.

By driving infrastructure development and enhancing rail competitiveness, SARA plays a critical role in supporting regional economic development and trade.

The press release issued by the Department for Business and Trade on 21 August 2024.

Trade Secretary Jonathan Reynolds is visiting a distillery in Scotland to celebrate Brazil’s decision to grant special protected status to Scotch Whisky.

Trade Secretary Jonathan Reynolds has today [Wednesday 21 August] visited Glengoyne Distillery in Scotland to celebrate Brazil’s decision to grant special protected status to Scotch Whisky – bolstering ‘Brand Scotland’ by promoting iconic Scottish products across the world.

This new protection means the Brazilian legal system recognises the special status of Scotch Whisky, making it easier to tackle counterfeits and giving distillers the confidence to up their exports to Brazil, boosting a sector that already contributes billions to the UK economy and supporting the Government’s mission to kickstart economic growth.

According to industry estimates, Brazil is in the top five global growth markets for alcohol over the next 5 years and its population of over 200 million people already have an appreciation for whisky, with the UK exporting almost £90 million of the spirit to Brazil in 2023 alone.

This new status, known as a Geographical Indication (GI), could be worth around £25 million over five years and will give distillers better access to South America’s largest economy, strengthening international recognition and intellectual property for Scotch Whisky. This success is credit to strong collaboration between DEFRA, including the agri-food attaché in Brazil, DBT and the UK’s Intellectual Property Office.

Business & Trade Secretary Jonathan Reynolds said:

Scotch Whisky is one of Scotland’s finest products and is in high demand across the globe. This Government is committed to maximising Scotland’s potential, and today’s announcement gives Scottish distillers the confidence they need to export to one of the world’s largest economies without having to compete with fake knock-offs and pale imitations.

Businesses who export more are better off, and removing trade barriers like this will unlock more global markets and drive economic growth across the UK.

Minister for Food Security Daniel Zeichner said:

Today’s announcement shows both demand for authentic Scotch Whisky abroad and the value of promoting British products on an international stage.

Our UK GI scheme connects British producers with consumers who appreciate the quality and reputation of their products, giving UK businesses a strong leg up in international markets.

With the agri-food and drink sector being the largest manufacturing sector in the UK, it’s clear there’s an international appetite for British products and we are committed to further growing trade opportunities for producers around the world.

Providing businesses with opportunities to reach new customers around the world is crucial to creating jobs and driving economic growth. UK Export Finance research shows that businesses that export grow at twice the rate of those that don’t.

Securing GIs helps prevent counterfeit products being sold on international markets, ensuring UK businesses can export with confidence and consumers can identify the products they are buying as authentic.

Chief Executive at the Scotch Whisky Association Mark Kent said:

As the first foreign product to be granted Denomination of Origin status in Brazil since 2019, Scotch Whisky now sits beside Tequila, Cognac and Champagne with special legal protection. This is fundamental to ensure that millions of Brazilians can have confidence in the quality and history of what they’re buying.

Achieving this status is ‘Brand Scotland’ in action. Removing trade barriers and securing legal protections for Scotch Whisky is critical to the industry’s success, helping to increase exports and in turn creating more jobs, investment and prosperity in Scotland and across the UK.

Chief Executive of UK Intellectual Property Office Adam Williams said:

The UK IPO places significant importance on supporting UK businesses wanting to export internationally. This is why we have an established network of IP attaches in key markets around the world.

We were thrilled to be able to support the Scotch Whisky Association in securing this GI through our Latin America and Caribbean attaché, based in Brazil. We will continue to work with UK exporters in-country to increase their knowledge and confidence of the Brazilian IP system.

Background

On Geographical Indications

• A Geographical Indication (GI) is an intellectual property right used on products that have qualities or characteristics attributable to a specific geographical origin. Examples include: Scotch Whisky, Welsh Lamb and Melton Mowbray Pork Pies.
• Geographical Indications protect the authenticity of many of our most prestigious food and drink products and give consumers confidence that international GI products are genuine articles.
• The UK’s annual GI exports are estimated to be worth over £6 billion and account for 25% of UK food and drink exports’ value. In 2023 alone Scotch exports were worth £5.6bn, accounting for 74% of Scottish food and drink exports and 22% of all UK food and drink exports.
• Geographical Indications protect the authenticity of many of our most prestigious food and drink products and give consumers confidence that international GI products are genuine articles.

On Valuation Estimate

• The figure £25 million refers to the mid-point of the valuation range for the relevant market access barrier. This is the additional exports expected to be achieved over five years from the resolution of the barrier. Further details on the methodology for valuing market access barriers are published in a DIT analytical working paper.

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

A new report published today illustrates the unique opportunity that the UK and New Zealand have to unlock the full potential of New Zealand’s offshore wind industry.

The report, developed by Xodus Group, a global energy consultancy, launched at an event in New Plymouth. It states that offshore wind presents a huge opportunity for New Zealand. With 15,000km of coastline, New Zealand has the potential to harness one of the world’s best wind resources to meet its climate objectives and grow a green economy.

The report states that New Zealand possesses the essential ingredients to accelerate its offshore wind industry: resource, demand, regulatory framework and social need.

The UK boasts a highly capable supply chain, a result of being the world’s second-largest offshore wind market, with 13.9 gigawatts fully commissioned as of 2023. Eager to build on this, the UK government is committed to not only developing to meet its growing domestic needs, which are expected to more than triple by 2030, but also to exporting its expertise and capabilities to global markets like New Zealand.

The UK can provide expertise in vital elements needed for offshore wind to flourish. These include financing methods, price stability mechanisms, local and international supply chain development and regulatory alignment.

Speaking at the launch in New Plymouth, British High Commissioner to New Zealand, HE Iona Thomas OBE said:

“Tackling climate change is an urgent need. And it does not need to result in an economic cost. Recently the UK has shown that we can grow the economy while also halving emissions since 1990.

“Achieving the goals that both New Zealand and the UK has set ourselves requires unprecedented, transformational change.

“As the global shift towards sustainable energy accelerates, the offshore wind sector in New Zealand is ready to respond. The UK stands ready to use our experience to tackle the challenges and take a strategic approach needed to unlock the potential that New Zealand has.

“Together, in partnership with friends, New Zealand and the UK have an opportunity to showcase the world what world leading offshore wind industry can look like.”

His Majesty’s Trade Commissioner for Asia Pacific, Martin Kent added:

“The UK has the expertise and experience to support New Zealand in offshore wind ambitions. The UK is a clean energy superpower, with the world’s second-largest offshore wind market. We are committed to supporting New Zealand’s clean energy goals, and I look forward to the innovations and partnerships to come.”

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

British workers are set for better working conditions as the Government takes its first steps towards its Plan to Make Work Pay.

• Businesses and workers will get a bigger voice at the table as Government takes the next steps in its mission to Make Work Pay
• Deputy Prime Minister and Business Secretary host senior representatives from trade unions and business organisations for the first time to discuss workers’ rights
• This sets out Government’s commitment to engaging on the Plan to Make Work Pay and deliver an ambitious agenda to ensure workplace rights fit for a modern economy

British workers are set for better working conditions as the Government takes its first steps towards its Plan to Make Work Pay.

The Deputy Prime Minister and Business Secretary convened a meeting with trade unions and business leaders in a first-of-its-kind meeting today [14th August 2024].

They agreed to wipe the slate clean and begin a new relationship of respect and collaboration to help deliver the Government’s first mission – to kickstart economic growth.

They discussed views on the Employment Rights Bill and wider Plan to Make Work Pay, with the Deputy Prime Minister and Business Secretary carefully listening to the valuable insights of attendees.

This comes soon after the Deputy Prime Minster and Business Secretary decided to overhaul the remit of the Low Pay Commission to deliver early progress on the Make Work Pay plan and put more money in working people’s pockets.

The Employment Rights Bill – which will play a key role in delivering the Plan to Make Work Pay – will be introduced within 100 days of entering Government.

Senior representatives from a cross section of major businesses representative organisations and trade unions were invited to the heart of government today to contribute to the Government’s Plan to Make Work Pay.

Deputy Prime Minister Angela Rayner said:

Our plan to Make Work Pay will bring together workers and businesses, both big and small and across different industries, for the good of the economy.

This first-of-its-kind meeting has kicked off a new era of partnership that will bring benefits to everyone across the country striving to build a better life.

Business Secretary Jonathan Reynolds said:

For too long the valuable insights of business and trade unions have been ignored by Government, even on past decisions which have directly impacted them.

Business and workers will always help to shape the ambitions of government including our plan to Make Work Pay, to ensure it boosts economic growth and creates better working conditions for all”

Minister for Employment Rights Justin Madders said:

It is time for the views of unions and businesses to be heard. This government understands the importance of stakeholders when deciding on policy.

We are getting cracking on the Bill, it will be delivered in the first 100 days and it’s great to get together to share insights that will help us to make sure it does what we intend it to.

The Plan to Make Work Pay sets out an ambitious agenda to ensure workplace rights are fit for a modern economy, empower working people and deliver economic growth.

The Plan will support more people to stay in work, make work more family friendly, and improve living standards. This will put more money in working people’s pockets to spend, boosting economic growth, resilience and conditions for innovation.

Further engagement is planned to discuss the detail of the Plan to Make Work Pay. Trade union and business representatives will be invited to continue to engagement on the Plan to Make Work Pay via similar meetings, as well as share vital insights via the upcoming consultations.

Notes to editors:

As part of its Make Work Pay plan, the Government has committed to:

• Ban exploitative zero hours contracts
• End fire and rehire
• Introduce basic rights from day one to parental leave, sick pay, and protection from unfair dismissal
• Strengthen the collective voice of workers, including through their trade unions, and create a Single Enforcement Body to ensure employment rights are upheld
• Make sure the minimum wage is a genuine living wage by changing the remit of the independent Low Pay Commission so for the first time it accounts for the cost of living
• Remove the discriminatory age bands, so all adults are entitled to the same minimum wage, delivering a pay rise to hundreds of thousands of workers across the UK

The attendees of the meeting are below:

• Deputy Prime Minister
• Business Secretary
• GMB
• TUC
• Union of Shop, Distributive and Allied Workers (USDAW)
• UNISON
• Unite
• Prospect
• British Chambers of Commerce (BCC)
• Chartered Institute for Personnel and Development (CIPD)
• Confederation of British Industry (CBI)
• Federation of Small Businesses (FSB)
• Institute of Directors (IoD)
• Make UK
• Recruitment and Employment Confederation (REC)

Attendee quotes:

TUC General Secretary Paul Nowak said:

The government’s plan to make to make work pay, including the introduction of an Employment Rights Bill within its first 100 days, can set our economy on a path towards higher growth and better living standards. Today’s meeting was an important chance for unions and businesses to discuss the shared gains that the government’s reforms will bring, and we look forward to continued close working as ministers implement their plans.

Together, we can raise the floor so that every job has the pay and security that families need to thrive, workers have access to unions, and good employers are not undercut by the bad.

Jonathan Geldart, Director General of the Institute of Directors, said:

Today’s meeting is an important first step in ensuring that there is meaningful dialogue with business as these proposals move forward, as the specifics will be crucial in determining whether they support or stifle economic growth.

We look forward to the start of a detailed engagement and consultation process, which will be essential to minimising the risk of unintended consequences of these reforms.

UNISON general secretary Christina McAnea said:

Britain’s problems are best solved when governments, unions and businesses work together. Lifting standards and making work pay will drive the economic growth to deliver proper investment in essential services.

The fair pay agreement promised in care will rejuvenate recruitment in a sector that’s long struggled to hold on to the workers needed to support an ageing population.

Stephen Phipson, CEO of Make UK said:

Manufacturers believe that good, well-paid, secure work is key to the Government’s missions of securing economic growth and breaking down barriers to opportunity, which belongs at the heart of an industrial strategy. The manufacturing sector, working closely with trade unions, pays 9% above the national average salary, and is investing increasing amounts in skills training and wellbeing to develop their workforce and improve productivity.

We look forward to continuing to work with the Government on ensuring its Plan to Make Work Pay benefits both manufacturing employers and their employees.

Mike Clancy, General Secretary of Prospect, said:

The Government’s Make Work Pay programme should be an historic opportunity to improve the rights of working people in this country and should represent a symbolic shift in favour of partnership between employers, government, and workers to drive economic progress.

This meeting represents the start of a dialogue that, done properly, can deliver the growth and stability the country needs to compete on the world stage.

Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce:

It was important to be in the room today to represent the views of business, and to emphasise that the Government needs to genuinely listen as it develops its plans. Our members are clear that their employees deserve high standards of protection, but it’s important to guard against any unintended consequences of the proposed changes.

This will require thorough and detailed consultation with firms of all sizes.  The Government must take its time, engage with employers, and ensure that any changes are proportionate and affordable for businesses.”

John Foster, CBI Chief Policy and Campaigns Officer, said:

Politicians and businesses are united in wanting to raise living standards through higher levels of growth underpinned by increased productivity. Creating the conditions in which businesses can invest and create jobs is key to this. Today’s meeting was a welcome a step in beginning the constructive dialogue that can deliver solutions that will be both lasting and effective.

Creating the space for meaningful consultation will be vital because it is business input that can ensure these reforms support growth, investment and jobs, while avoiding unintended consequences.

Paddy Lillis, General Secretary of Usdaw, the Union of Shop, Distributive and Allied Workers, said:

After 14 years of dither and delay, it’s great to sit down with a government committed to delivering for working people and talking about how to implement the change Usdaw members need.

The Government’s plans for workers’ rights will massively improve the lives of our members and we are pleased to see grown up government, bringing together politicians, employers and unions to ensure the changes outlined during the election are delivered.

Peter Cheese, Chief Executive of the CIPD, the professional body for HR and people development, said:

We recognise and welcome a number of the changes in the Government’s Plan to Make Work Pay. Together they amount to the biggest transformation of workers’ rights in a generation.

Therefore, consultation will be essential to ensure that any reforms achieve the right outcomes for individuals and employers. We look forward to being part of that process.

Neil Carberry, Recruitment and Employment Confederation (REC) Chief Executive, said:

The longest-lasting and most successful changes to the jobs market have been those developed with businesses, not just handed down to them.

Today’s meeting is an opportunity to re-discover that principle and ensure that the work of the new Government supports business growth and opportunity for workers, including over a million temporary workers across the UK.

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

We had positive engagement with Angela Rayner and Jonathan Reynolds in Opposition, including on their commitments to working in partnership with small business. We hope this meeting is a signal that the Government will soon start a proper, meaningful and constructive engagement process as it moves from campaigning into practical policy making.

It will be crucial the Government starts to demonstrate it is prepared to try and reduce harm to employment, small business, and the economy from any and every negative impact of these proposals. The new administration must listen to the real needs of small businesses on the ground and help, not harm, small business efforts to get people into work and secure the high levels of growth the country desperately needs.

The press release issued by the Department for Business and Trade on 6 August 2024.

The government has today announced it will repeal the Strikes Act 2023 to get public services back on track and strengthen the rights of working people.

• Minimum Service Levels will be repealed through the Employment Rights Bill, which will be introduced within the first 100 days of the new Government
• Measures which have not resolved a single strike, unduly restrict workers’ rights and undermine good industrial relations to be binned
• Government is committed to getting public services back on track and laying the foundations for a modern economy that Makes Work Pay.

The government has today [Tuesday 6 August] announced it will repeal the Strikes (Minimum Service Levels) Act 2023 to get public services back on track and strengthen the rights of working people.

Industrial action in the NHS alone cost the taxpayer £1.7bn last year with many other sectors also seeing costs and impacts to public services. This is why strong but fair negotiation is key to tackling issues between workers and employers, from low pay to inequality and discrimination.

The Deputy Prime Minister Angela Rayner and Business Secretary Jonathan Reynolds have today [Tuesday 6 August] written to the Government departments with sectors most impacted by strikes Education, Health, Transport, the Home Office, Energy, as well as Welsh and Scottish governments, to give a clear message that this government does not support Minimum Service Levels and intends to repeal the legislation.

They have also written to all 12 metro mayors across the country to start engaging with local employers on this upcoming change, being important partners in resetting relations with these vital sectors.

Deputy Prime Minister Angela Rayner said:

Attempting to clamp down on the fundamental freedom of working people has got us nowhere and this was targeted at sectors who dedicate their lives to serving us all.

That’s why we’re scrapping this pointless law and creating a new partnership between business, trade unions and working people through our New Deal.

Repealing this legislation is the first part of our plan to reset industrial relations so they are fit for a modern economy.”

Business Secretary Jonathan Reynolds said:

We need to get Britain’s economy moving again, deliver growth and the public services which taxpayers deserve.

The Strikes Act has not worked- unbelievably the UK has lost more days due to strike action than France, costing the taxpayer billions of pounds, and these divisive laws haven’t resolved a single strike since they were introduced.

By removing minimum service levels, we will reset industrial relations, so they are based on good faith negotiation and bargaining, ending the chaos and restoring trust in public services. This is about restoring politics as public service ensuring government acts to fix problems not cause them.”

The formal repeal of the previous government’s legislation will form part of the upcoming Employment Rights Bill which will be introduced within the first 100 days of the new Government.

No employer has used minimum service levels, and they have not resolved any strikes- and only inflamed tensions. Companies should continue to look for alternative mechanisms to solve disputes through negotiation.

Relevant ministers in the Department for Health and Social Care, Home Office, Department for Education, Department for Transport and Department for Energy Security and Net Zero have been asked to engage with their relevant employers to inform them that we strongly encourage them to engage in discussion with trade unions, instead of using minimum service levels.

Health and Social Care Secretary, Wes Streeting, said:

This Act failed to resolve devastating strikes which led to cancelled operations and cost the NHS billions.

But this Government engaged meaningfully with the BMA Junior Doctors’ Committee from day one, and agreed an offer in just over three weeks – paving the way to end strikes.

Scrapping minimum service levels marks another significant step in resetting relationships with staff, as we fix the broken health service.”

This comes as the Home Office are writing to the four Border Force trade unions. This letter will confirm the government’s intention to repeal Minimum Service Level legislation and that we will no longer be using border security MSL.

The press release issued by the Department for Business and Trade on 3 August 2024.

The government has announced the date of the International Investment Summit as it drives forward national mission for growth.

• UK will host major International Investment Summit on 14 October 2024 as it drives forward national mission for growth.
• Prime Minister to bring together up to 300 industry leaders to catalyse investment in the UK.
• Chancellor Rachel Reeves and Business and Trade Secretary Jonathan Reynolds will confirm UK is open for business.

The UK will host a major International Investment Summit on 14 October 2024, advancing opportunities for investment and growth across the country.

Economic growth is the government’s top priority, and investment is one of the key pillars of the Chancellor’s growth strategy. The summit will make clear that the UK is “open for business” as the government resets relations with trading partners around the globe and creates a pro-business environment that supports innovation and high-quality jobs at home.

October’s summit will be a celebration of modern Britain and will allow global business leaders to hear directly from the PM and Cabinet ministers on how this government will drive future investment.

It comes as business confidence jumped in July to the highest level shown for eight years. Just last week, leading savings and retirement firm Phoenix Group, and global investment manager Schroders announced they will launch a new private markets investment manager, deploying up to £2.5 billion over three years with an initial commitment of £1 billion – further evidence of investor confidence in the UK.

The UK is also Europe’s leading tech ecosystem, with the highest number of ‘unicorn’ companies in Europe and venture capital investment worth £860 million in 2023 to 2024. This strong economic landscape, with clear growth potential for new technologies, makes the UK an attractive location for investors.

Business and Trade Secretary Jonathan Reynolds said:

Long-term, sustainable and inclusive economic growth is this government’s central mission. That’s why we’re taking immediate steps to increase investment right across the UK, support local skilled jobs and raise living standards in all our communities. Whether it is new film studios, cutting-edge technologies, or green energy, it is clear every part of the UK has the potential to benefit from private sector investment.

The summit is an opportunity to meaningfully engage with the world’s leading businesses and investors, and to continue to build long-term relationships that will drive investment into the UK in the months and years ahead.

The chaos of the last 14 years is no more. Britain is open for business, and we are the investment destination of choice.

Reynolds is also expected to set out to investors that a new level-headed approach on the world stage not only shows how the UK is a mature trading partner but will allow UK businesses to plan for sustained investment and economic growth over the next decade.

As the Chancellor outlined in a speech last month, Treasury analysis shows that had the UK economy grown at the average rate of other OECD economies over the last 13 years, it would have been over £140 billion larger.

Chancellor of the Exchequer Rachel Reeves said:

Growth built on stability, investment and reform is our number one priority and we have moved at speed to fix the foundations of our economy.

In just one month we have launched a National Wealth Fund to catalyse investment in our world-leading green and growth industries, ended the ill-advised ban on onshore wind and reformed a planning system that has frustrated investors for so long.

We are not resting on our laurels as work continues to rebuild Britain. October’s International Investment Summit will showcase Britain is back as a stable place to do business, helping to secure the private investment needed to make every part of our country better off.

The National Wealth Fund will simplify the UK’s fragmented landscape of support for businesses and investors and make transformative investments across the UK.

The summit is a key milestone in the government’s growth mission and will underpin a modern Industrial Strategy. It builds on the UK’s ambition to maintain the highest sustained growth in the G7, working in partnership with the private sector to get the very best out of British industries.

Coming two weeks ahead of the budget, it will build on the UK’s strong reputation as a global trading centre, and ensure investment is at the heart of the UK’s economic vision.

The press release issued by the Department for Business and Trade on 30 July 2024.

In a move to put more money in working people’s pockets, the government has today [Tuesday 30th July] overhauled the remit of the Low Pay Commission (LPC).

• Government takes first step to deliver on the promise of a genuine living wage for working people.
• Ministers overhaul the Low Pay Commission’s remit to factor in the cost of living when recommending minimum wage rates.
• Discriminatory age bands set to be removed so that all adults can benefit as work gets underway on the plan to Make Work Pay.

In a move to put more money in working people’s pockets, the government has today [Tuesday 30th July] overhauled the remit of the Low Pay Commission (LPC).

This will, for the first time, ensure the independent body takes into account the cost of living when it makes future recommendations to government on the minimum wage.

The Business and Trade Secretary Jonathan Reynolds said:

For too long working people have faced the worst of the cost of living crisis, but this Government is taking bold action to address it and make work pay.

The new remit to the LPC is the first of many vital steps we will take to support more people to stay in work and improve living standards.

Our focus remains on putting more money in working people’s pockets and boosting economic growth.

The Business and Trade Secretary and Deputy Prime Minister have also instructed the LPC to narrow the gap between the minimum wage rate for 18–20-year-olds and the National Living Wage. This will be the first step towards achieving a single adult rate.

Chancellor of the Exchequer Rachel Reeves said:

Economic growth is our first mission, and we will do everything we can to ensure good jobs for working people. But for too long, too many people are out of work or not earning enough.

The new LPC remit is an important first step in getting people into work and keeping people in work, essential for growing our economy, rebuilding Britain and making everyone better off.

The advent of the minimum wage has been one of the most effective and successful policy interventions of the last 25 years, and this announcement is the next step in achieving the promise of a genuine living wage for working people.

In addition to the cost of living, the remit of the LPC will continue to also consider the impact on business, competitiveness, the labour market and the wider economy.

TUC General Secretary Paul Nowak said:

Hard work should pay for everyone. These are significant first steps towards making the minimum wage a real living wage and will make a difference to millions. We welcome the Government’s decision to ask the Low Pay Commission to be more ambitious next year and into the future.

We also support the Government’s commitment to ending discriminatory age bands for minimum wage workers. Young people face the same cost of living pressures as other adult workers and will welcome their pay being brought into line.

The Secretary of State and Deputy Prime Minister have written to the Chair of the Low Pay Commission. The letter and the full remit can be found here.

This builds on the Government’s Plan to Make Work Pay, which sets out a significant and ambitious agenda to ensure workplace rights are fit for a modern economy, empower working people and deliver economic growth.

These changes are the first steps in realising the Government’s mission to grow the economy and raise living standards across the country.

Peter Jelkelby, Chief Executive and Chief Sustainability Officer, IKEA UK & Ireland:

People are at the heart of IKEA’s success, and we recognise the challenges they face from inflationary pressures and rises in the cost of living. IKEA are committed to paying a fair, sustainable rate of pay based on the true cost of living and what’s happening in the wider economy.

IKEA has been a proud member of the Living Wage Foundation since 2016 and is the largest accredited retailer. Our business relies on a skilled, engaged, and committed workforce, so ensuring that living wages reflect the true cost of living is a powerful route to providing security and stability for our co-workers and their families.

Emma Jones, CBE, founder and CEO of small business support platform and membership community, Enterprise Nation, said:

Small businesses are the backbone of our economy, and we know they are facing unprecedented pressures. We wholeheartedly support the principle of a living wage for all workers and look forward to continuing to work with the Government to recognise the unique challenges faced by micro-businesses.

We want to create an environment where both businesses and workers can thrive and will continue to advocate for a balanced approach that will ensure the survival, growth and success of small enterprises.

Notes to editor

• The Secretary of State Jonathan Reynolds made a statement to parliament today on the Low Pay Commission remit. See the full Written Ministerial Statement here: https://questions-statements.parliament.uk/written-statements/detail/2024-07-30/hcws43
• The Government sets the minimum wage rates each year following the advice of the LPC. These recommendations are made by the LPC each October – for minimum wage rates to apply from the following April – in line with the parameters set out in the annual remit from the Department for Business and Trade.
• We recognise the importance of providing sufficient notice of changes to the minimum wage, so the timelines remain unchanged in the new remit. We have asked the LPC to report back by the end of October, and the rates will increase in April 2025. Employers and workers alike can be confident that they will have sufficient advance knowledge of next year’s increases.
• The LPC is an internationally renowned, independent body. The Government commends their expertise and diligence in seeking to agree new rate recommendations by consensus, and we fully expect they will strike an appropriate balance.
• The Government continues to support HMRC in their approach of minimum wage enforcement and compliance. In addition to requiring the repayment of arrears and issuing penalties, publicly naming employers who have failed to comply with the law remains an important part of our toolkit.
• This is a core part of the Government’s mission to grow the economy and raise living standards across the country.
• The Plan to Make Work Pay was first announced in the Labour Manifesto here: https://labour.org.uk/updates/stories/a-new-deal-for-working-people/

The press release issued by the Department for Business and Trade on 30 July 2024.

Postmasters whose convictions have been overturned by the Post Office Offences Act can now apply to a new redress scheme.

Postmasters whose convictions have been overturned by the Post Office Offences Act (including that passed by the Scottish Government) can now apply to a new redress scheme.

From today, postmasters are invited to come forward and register for the scheme, known as the Horizon Convictions Redress Scheme (HCRS).  Once eligibility is confirmed the new scheme will provide swift and fair redress, allowing those affected to rebuild their lives.

Many victims have been traumatised by the Post Office Horizon Scandal and this scheme aims to ensure that postmasters receive redress without unnecessary bureaucracy.

Business and Trade Secretary Jonathan Reynolds said:

Postmasters have suffered immeasurably so I hope today’s new redress scheme brings some relief to postmasters who have waited far too long to get back the money that is rightfully theirs.

Any postmaster who thinks they are eligible for this scheme can come forward and register. We know that every case is different, and this government fully supports the right of every postmaster to choose what is best for them.”

Postmasters eligible can either accept a fixed settlement of £600,000 or those who believe their losses exceed that amount can choose a full claim assessment route. This will mean their application will be fully examined by a team of dedicated caseworkers in the Department for Business and Trade.

The scheme will be delivered by the Department for Business and Trade with a key aim of providing as much transparency as possible about how it will operate and how decisions will be taken on redress.  Guidance has been published today which will allow postmasters to see how much redress they may be eligible for and what will be taken into account when assessing applications.

Following Royal Assent of the Post Office Offences Act, hundreds of postmasters had their convictions overturned providing they met the following criteria:

• Prosecutions were brought about by the Post Office or Crown Prosecution Service (or in Northern Ireland, the state prosecutor or the police).
• Offences were carried out in connection with Post Office business between 1996 and 2018.
• Offences were for relevant offences such as theft, fraud and false accounting.
• Offences were against sub-postmasters, their employees, officers, family members or direct employees of the Post Office working in a Post Office that used the Horizon system software.
• The conviction has not been considered by the Court of Appeal

The Department for Business and Trade will work closely with the Ministry of Justice to confirm the eligibility of individuals registering for the scheme and postmasters with overturned convictions will begin to receive written confirmation of their exoneration from the Ministry of Justice from this week.

The letters will also explain how criminal justice agencies will be amending their court and criminal records. If there is insufficient evidence to confirm that a conviction can be quashed, postmasters may receive a request to submit further information.

Lord Chancellor and Secretary of State for Justice Shabana Mahmood, said:

Justice must be a reality, not an ideal. Today we begin putting this into practice by overturning the convictions of the innocent postmasters affected by this inexplicable and unprecedented miscarriage of justice.

I pay tribute to those hard-working men and women for their courage and determination. I am pleased today we can begin to right this wrong and ensure they are quickly and fairly compensated.”

The Government has committed to paying all reasonable legal fees for postmasters’ legal representation to ensure more of their own money is not spent on this appalling scandal.

The independent inquiry continues its work of uncovering the truth behind the Horizon scandal so that the right people can be held to account, and justice can be served.

The press release issued by the Department for Business and Trade on 29 July 2024.

• Trade Secretary Jonathan Reynolds set to deliver trade negotiations with international partners, including the Gulf Cooperation Council and India
• Government will launch new trade strategy to help deliver its growth mission, with UK businesses and economic growth at the centre
• UK was the world’s 4th largest exporter in 2022, with British goods and services in high demand across the globe

Business and Trade Secretary Jonathan Reynolds has announced the Government’s intention to deliver trade talks, starting with the Gulf Cooperation Council, India, Israel, South Korea, Switzerland and Turkey.

The Government is putting economic growth at the heart of everything it does to improve the livelihoods of hardworking British people.

Restarting talks is the first step towards agreeing the high-quality trade deals the UK needs to give businesses access to international markets, boost jobs and deliver that growth.

With exports totalling £855 billion, the UK was the world’s 4th largest exporter in 2022. High-quality British goods and services are admired globally and the Government is committed to using every lever available to help British businesses sell around the world.

FTAs are not the only tool to drive economic growth through trade. The Government also plans to publish a trade strategy which aligns with our industrial strategy, enhances our economic security and supports our net zero ambitions.

Through this trade strategy, resetting our relationship with the EU, supporting more small businesses to export and tearing down unnecessary barriers to trade, jobs and communities will be supported in every part of the UK.

Business and Trade Secretary Jonathan Reynolds said:

Boosting trade abroad is essential to deliver a strong economy at home. That’s why I’ve wasted no time taking stock of progress and getting ready to press on with trade talks with our international partners.

From the Gulf to India, our trade programme is ambitious and plays to the UK’s strengths to give British businesses access to some of the most exciting economies in the world.

Our teams will be entering negotiating rooms as soon as possible, laser-focused on creating new opportunities for UK firms so they can support jobs across the country and deliver the growth we desperately need.

This announcement will kickstart the process of getting negotiators back into the room with counterparts as soon as possible, with the first round of trade talks under the new government expected to take place during the Autumn.

The UK’s trade programme aims to deliver deals that will benefit the UK economy and boost trade with some of the most dynamic economies in the world.

For example, a trade agreement with the Gulf Co-operation Council would be a substantial economic opportunity, with at least £19 billion total already invested in each other’s economies as of 2021. An agreement with the GCC could potentially boost this further, ensuring British companies can make the most of this booming market and British customers get even more choice.

India, with which the UK is negotiating a Free Trade Agreement and Bilateral Investment Treaty, is projected to be the world’s third largest economy by 2027. A trade deal would give UK businesses better access to its burgeoning market of middle-class consumers, projected to grow to over a quarter of a billion consumers by 2050.

It comes after the Foreign Secretary visited India this week to discuss economic and global security.

Chairman of Tata Sons Natarajan Chandrasekaran said:

I am delighted that the new government has moved so quickly to restart trade negotiations with India. As one of the largest international investors in the UK, the Tata Group supports any action that strengthens the British economy. And as two of the world’s greatest trading nations with deep historical ties, India and the UK should be close economic partners, to the benefit of the citizens and businesses of both countries.

CEO of KOC Holding AS Levent Çakıroğlu said:

I believe that the negotiations for a new FTA can foster greater competitiveness, offer business opportunities across various sectors, and will strengthen bilateral trade ties between our two countries.

In the upcoming negotiations, there is room for improvement for both economies in services and investment sectors, but I believe automotive and home appliances business will continue to form the backbone of the trade between Türkiye and the UK in the future.

CEO of Roche Thomas Schinecker said:

Roche welcomes the UK government’s decision to resume talks about a free trade agreement between the United Kingdom and Switzerland. Free trade is essential for economic growth and stability.

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

Businesses are eager to open the doors to closer trade links with our key partners and will welcome the government’s renewed commitment to seek free trade agreements.

Reaching new or upgraded deals could offer new opportunities for businesses, of all sizes, to grow and invest for the future, especially in sectors like spirits, business services, climate friendly technology and pharmaceuticals.

Director General of the Chartered Institute of Export & International Trade Marco Forgione said:

The news that the Government has kicked off trade talks with these key economies so quickly is extremely positive. Making international trade easier and helping more UK businesses expand into international markets is central to getting growth into the economy.

We know there’s real business interest in making international trade easier and we stand ready to work with the Department to ensure businesses, particularly SMEs, are armed with the know-how to turn these opportunities into reality.

The Government is also committed to the CPTPP trading group, using our membership in the UK and her allies’ interests and ensuring businesses can take advantage of the deal when it enters into force.

Background

• Source for UK exports statistics: ONS UK trade, May 2024. Figures relate to the 12 months to May 2024.
• Source for world exports rankings: UNCTAD Goods and Services (BPM6) – Exports and imports of goods and services. Rankings relate to 2022.
• Source for UK-GCC FDI: ONS Foreign direct investment involving UK companies: 2021
• Source for growth in India’s economy: IMF World Economic Outlook, April 2024
• Source for middle class consumers: Global Trade Outlook – Department for Business & Trade, February 2023. Note: Middle class consumers are defined as having an annual income of at least $13,205 and are calculated by applying current income distributions to extrapolations of nominal GDP per capita, prices, and population.

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

UK joins the first global digital trade agreement negotiated under the World Trade Organization.

• The UK and 90 other countries have negotiated a set of new rules designed to make global trade faster, fairer, cheaper and more secure
• Once in force the agreement will permanently ban customs duties on digital content, lower costs for UK businesses and help protect UK consumers from online fraud
• Global adoption of digital customs systems, processes and documents could significantly grow the UK economy

The UK has today [Friday 26 July] joined a groundbreaking agreement which is designed to grow the economy by boosting global digital trade.

After five years of negotiations, the UK and 90 other countries have finalised the E-Commerce Joint Initiative at the World Trade Organization (WTO), which will make trade faster, cheaper, fairer and more secure. It will help British businesses, workers and consumers seize the opportunities of global digital trade, which is estimated by the OECD to be worth around £4 trillion and growing.

Once implemented, the agreement will commit all participants to the digitalisation of customs documents and processes. This will in many cases end the need to print forms off and hand them over at customs – a slow, expensive and old-fashioned way of working.

The signatories to this agreement will also commit to recognising e-documents and e-signatures, reducing the need for businesses to physically sign contracts and post them around the world.

Global adoption of digital customs systems, processes and documents would increase UK GDP by up to £24.2 billion in 2023 UK GDP terms. Even partial adoption could represent a significant boost to UK GDP.

It also commits signatories to putting in place legal safeguards against online fraudsters and misleading claims about products.

Business and Trade Secretary Jonathan Reynolds said:

We are proud to play our part in securing the first ever global digital trade agreement, cutting costs for business and delivering on this government’s ambition to deliver economic growth.

Britain is back and proudly playing her role as an outward looking trading nation. Global digital trade is already estimated by the OECD to be worth around £4 trillion and counting but no common set of global rules exist. This is a huge step forward in correcting that and ensuring British businesses feel the benefit.

Science Secretary Peter Kyle said:

This global agreement aims to help people use technology safely by protecting them from fraud, while driving economic growth through the digitalisation of trade so it’s faster and more secure.

We will leave no stone unturned in our work to share the benefits of technology and drive economic growth by working with partners around the world to achieve this.

For a UK financial services provider, doing business in any of the participating countries will require far fewer paper contracts and invoices, or manual signatures or authentication, as these will be replaced with their electronic equivalents.

Chris Southworth, Secretary General, International Chambers of Commerce UK said:

Businesses and economies thrive when there is one common set of rules. The E-Commerce Agreement is a major breakthrough and an excellent reminder of the power of international collaboration. It creates the environment we need to drive innovation as we transition away from archaic paper-based processes and into the modern world of data and technology.

It is an opportunity to accelerate efforts to digitalise our borders and global supply chains, and help to remove unnecessary friction and costs that prevent SMEs from trading. This is good news for business, consumers and the economy.

Matt Hammerstein, Head of Barclays UK Corporate Bank said:

As co-chair of the Trade Digitisation Taskforce with ICC United Kingdom, we have worked closely with the Government to support efforts to secure the competitiveness of UK exports, champion the digitalisation of trade at scale and continue to work on streamlining processes related to fraud and financial crime risk.

We welcome this announcement, which will help make the trade process easier for small, medium and large-sized businesses in the UK by removing paper-based barriers to trade. Barclays stands ready to play its part in supporting the success of British exports.

Reaching this agreement is part of the government’s commitment to rebuild and strengthen global partnerships and stand up for the rules-based international order. It is an important step in modernising the global trade rulebook and furthering cooperation in the World Trade Organization.

Not only will the E-Commerce Joint Initiative deliver new growth opportunities for the UK, it also recognises the importance of supporting developing and least-developed countries, to ensure growth and prosperity for all.

Attention now turns to working with WTO partners to incorporate the agreement into the WTO legal framework. Once incorporated, UK ratification will take place.

Notes to editors:

• The outcome of the E-Commerce Joint Initiative is officially called the ‘Agreement on Electronic Commerce’.
• Global digital trade is estimated by the OECD to be worth around $5 trillion in 2020. Converting this to sterling at the market exchange rate gives around £4 trillion. The OECD have defined this as all trade that is digitally-ordered or delivered.
• The ‘Benefits of the digitalisation of trade processes and cross border barriers to their adoption’ report estimates that global adoption of advanced digital trading systems and e-transactions for services is associated with a rise in UK GDP of up to 0.9% and 0.1 respectively.
• Applied to 2023 ONS UK GDP of £2,687 billion in current prices, a 0.1% increase would amount to £2.7 billion, and a 0.9% increase would amount to £24.2 billion.