Tag: Press Release

PRESS RELEASE : Autumn Statement – PwC comments on new National Living Wage and National Minimum Wage rates [November 2022]

The press release issued by PWC on 17 November 2022.

John Harding, leader of PwC’s Employment practice, says:

“Following recommendations by the Low Pay Commission, the Chancellor’s announcement that the National Living Wage (NLW) will increase by 9.7% and the National Minimum Wage (NMW) will increase by similar levels from 1 April 2023, will be welcomed by the 2 million employees who are expected to benefit.

“A full time worker aged 23 or older currently on the NLW will see the biggest ever increase to £10.42 per hour. These increases mean that the Government is on track to meet its commitment to have a NMW equal to two-thirds of median earnings (for workers aged 21 and over) by 2024.

“This commitment supports the Government’s ambition to create a high productivity, high wage economy and a fairer society. But an employer with 200 employees paying at the National Living Wage will now face an increase of over £500,000 in their employment costs as a result. So while the proposed increases look good for employees, they will create challenges for many employers in industries such as retail and hospitality who traditionally employ large numbers of workers close to the NLW. In addition employers that also pay above the NMW levels are likely to be impacted as employees look to retain the differentials.

“Finally, the rules governing the calculation of NLW and NMW are complex and have been subject to significant changes in April 2020. Given this increase and how many employers will now have employees caught by the NMW regulations, they should be taking the time now to understand what impact these changes will have on their current operations as well as their future employment models to ensure they are not breaching the rules inadvertently. The financial and reputational implications of a NLW or NMW breach are significant and include penalties of up to 200% and being publicly named as a non compliant employer by the Government.”

19/11/2022
PRESS RELEASE : Autumn Statement – PwC comments on personal and capital tax measures [November 2022]

The press release issued by 17 November 2022.

Commenting on the personal tax measures announced at today’s Autumn Statement, Laura Morris, tax partner at PwC, says:

“HMRC is expecting to collect additional revenues of 13bn by 2028 as a result of the personal tax measures announced today. Nearly 30% of this will come from the reduction in the 45% tax threshold with approximately 23% each coming from the reduction in the dividend allowance and vehicle excise duty for electric vehicles.

“While the freezing of thresholds brings more people into higher tax brackets as wages and incomes increase, it’s clear that savers and people who ‘have more’ were the biggest focus of the personal tax changes announced today.

“The reduction in the threshold for the 45% tax rate to £125,140, brings it in line with the point at which individuals also lose their personal allowance. This means people will pay an effective tax rate of 60% on income between £100,000 and £125,140, and 45% on income above this.

“Threshold freezes create ‘fiscal drag’ whereby tax receipts rise because tax bands are not increasing in line with income and wage increases. For the maximum impact to be felt in terms of increased tax revenue, employment needs to hold up and wages need to continue to rise.

“The reductions in annual exemptions for Capital Gains and Dividend Tax will bring more people within the scope of these taxes and increase the tax return compliance burden for both individuals and potentially HMRC.”

Commenting on capital taxes, Alex Henderson, tax partner at PwC, adds:

“The Chancellor has announced a wide range of seemingly technical and limited changes to the tax system to raise taxes but they will have significant practical consequences. Many more people will now find themselves caught by the new lower thresholds which could mean we see behavioural changes. If you put yourself in the shoes of someone considering selling or investing in an asset, you may well delay your decision due to the threshold changes, but also due to the Chancellor’s signalling of a future direction of travel aimed at taxing capital gains more heavily.

“There will be a knock-on impact on the complexity of the tax system. The capital gains relief is only available to the most wealthy, but it does mean more smaller gains will now enter the tax system, adding to complexity for taxpayers and HMRC alike. The question is whether there will be any significant uptick in tax receipts resulting from these changes after the costs and behavioural changes are factored in.

“Ultimately all taxpayers value clarity and stability when it comes to taking a longer term view and unfortunately even relatively technical changes when they come seemingly every year undermine confidence.”

19/11/2022
PRESS RELEASE : Autumn Statement – PwC comments on general tax and R&D [November 2022]

The press release issued by PWC on 17 November 2022.

Jon Richardson, head of tax policy, PwC, says:

“The Chancellor delivered on the promise that there would be few rabbits out of the hat on tax for this Statement. The bulk of extra revenue raised has come from freezing or reductions in allowances as well as the expected increase in the energy windfall tax. There was some positive news on business rates but the net impact is the UK is now facing a record tax burden.

“Apart from the additional tax there is a hidden cost to the announcements which is the additional tax compliance burden – as tax free allowances reduce, more income and gains are brought into the tax net which will need to be reported on tax returns for the first time.

“The Chancellor talked a lot about growth but with the corporation tax rate going up to 25%, no replacement to the super deduction and a net reduction in R&D tax relief, the UK’s tax competitiveness is significantly deteriorating.”

Rachel Moore, R&D tax partner, PwC

“The Chancellor has given large companies a surprise and much welcomed bonus by increasing the headline R&D credit rate from 13% to 20% resulting in a change in cash value from 10.5% to 15% (after taking account of the change in corporation tax rate). However this is being more than paid for by a significant reduction in credits available for SMEs where the rate of relief for loss making companies nearly halves from 33% to 18.6%. This rebalancing of rates between the two schemes will result in more than a £1 billion of extra funds for the exchequer.

“While it is widely recognised that there are issues in the SME market, this seems to be a blunt approach which penalises all claimants and does not tackle the underlying issues. It is also a double whammy for SMEs operating globally who will see claims reduced by the previously announced exclusion of overseas costs from claims. These changes will particularly impact the life sciences sector who depend heavily on R&D credits for funding.”

19/11/2022
PRESS RELEASE : Autumn Statement – PwC comments on energy consumption reduction target [November 2022]

The press release issued by PWC on 17 November 2022.

Commenting on today’s Autumn Statement, Zubin Randeria, ESG Leader, PwC UK commented:

“The tricky balance between protecting tax revenues while encouraging sustainable behaviour was made clear in the Autumn Statement. On one hand, we heard a renewed commitment to reduce greenhouse gas emissions by 68% by 2030, on the other electric vehicles will be subject to road tax by 2025. With tax incentives expensive, reducing energy consumption will be key to realising our climate ambitions.

There is a clear imperative to reduce energy consumption as one aspect of keeping increased costs down, but by setting out a national ambition to reduce energy consumption by 15% by 2030, the Government is also showing its commitment to the Glasgow Climate Pact.

“Hitting emission reduction targets will require collective action by every household and business in the country and brings with it a chance to make lasting changes to our behaviours when it comes to energy use.

“The new Energy Efficiency Taskforce can play an important role in moving us close to Net Zero but there should be no underestimating the scale of the challenge ahead. It’s encouraging then, that alongside direct support to counter steep energy prices, the government is aiming to introduce a range of cost-free and low-cost steps to reduce energy demand.

“A key aspect of hitting this necessary target is reducing energy consumption from buildings and industry, as highlighted in the Autumn Statement. Our Green Jobs Barometer research has shown that can only be achieved by investing in retrofitting – which could not only help the UK hit Net Zero, but can sustain upward of 500,000 jobs.”

19/11/2022
PRESS RELEASE : Autumn Statement – PwC Chair Kevin Ellis comments on skills and education [November 2022]

The press release issued by PWC on 17 November 2022.

Kevin Ellis, chair and senior partner at PwC UK, said:

“It’s good to see the Chancellor’s focus on skills and education, and without lots of bitty new initiatives. Instead, the announcement that Sir Michael Barber will review the implementation of a skills reform programme is welcome. We need a big picture approach. Employers like PwC that rely on a strong pipeline of talent will be keen to support this important work, which links to other priorities including today’s renewed commitment to the Glasgow Climate Pact, and making the UK the ‘world’s next Silicon Valley’.”

19/11/2022
PRESS RELEASE : Foreign Secretary to call out Iran and Russia as threats to Middle East security [November 2022]
The press release issued by the Foreign Office on 18 November 2022.
- The Foreign Secretary will today [Saturday 19 November] call out Iran and Russia as threats to the security of the Middle East in a speech to global leaders in Bahrain.
- He will commit to working with partners to ensure Iran can never develop a nuclear weapon and to tackle its destabilising activity in the region.
- The Foreign Secretary will also call out Putin’s invasion of Ukraine as a ‘flagrant breach’ of the principles of sovereignty and territorial integrity which is ‘heaping misery’ on millions of Syrians and Yemenis by driving up food prices.
The Foreign Secretary will call out Iran and Russia as threats to the security of the Middle East in a speech at an international security conference today.

Speaking at the Manama Dialogue security conference in Bahrain, he will commit to working with partners in the region to ensure Iran never develops a nuclear weapon and highlight the impact of Russia’s illegal invasion of Ukraine on food security across the region.

He will also highlight opportunities for cooperation on Gulf states’ transition to green energy and look forward to greater trade between the Gulf and the UK following the conclusion of talks on a new Free Trade Agreement with the Gulf Co-operation Council, expected next year.

On the threat posed by Iran, the Foreign Secretary is expected to say:

Iranian-supplied weapons threaten the entire region. Today Iran’s nuclear programme is more advanced than ever before, and the regime has resorted to selling Russia the armed drones that are killing civilians in Ukraine.

As their people demonstrate against decades of oppression, Iran’s rulers are spreading bloodshed and destruction as far away as Kyiv.

Britain is determined to work alongside our friends to counter the Iranian threat, interdict the smuggling of conventional arms, and prevent the regime from acquiring a nuclear weapons capability.

On Putin’s war in Ukraine, the Foreign Secretary is expected to say:

Putin’s onslaught against Ukraine amounts to a flagrant breach of those principles [sovereignty and territorial integrity]. No country is immune from the turmoil he has brought to world energy markets or the damage he has caused to global food security.

Putin’s war is inflicting yet more suffering on Syrians and Yemenis, who were already enduring the privations of humanitarian emergency, and ordinary Lebanese, caught up in economic crisis.

The Foreign Secretary will hold bilateral meetings with a range of international counterparts at the Dialogue and take part in panel events on key issues facing the Middle East, including maritime security and conflict resolution.

Following the Manama Dialogue, the Foreign Secretary will be travelling to Qatar. He is planning to meet with UK police representatives who are in-country supporting British fans to enjoy a safe and enjoyable trip, to understand more about their plans for the tournament.

While there, he will also speak at an event on global food security, hold bilateral meetings with key partners and visit UK Armed Forces stationed in Qatar, alongside attending the opening ceremony of the World Cup and the first England game.
19/11/2022
PRESS RELEASE : Joint Statement from United States and the Great Lakes Special Envoys of Belgium, France and the UK [November 2022]

The press release issued by the Foreign Office on 18 November 2022.

The UK Special Envoy for the African Great Lakes, Alison Thorpe, joins the United States and the Special Envoys of Belgium and France to issue a statement about the security situation in eastern DRC.

The United States along with the Great Lakes Special Envoys of Belgium, France and the UK condemn in the strongest terms the continuing advance of the UN-sanctioned March 23 Movement (M23) illegal armed group in the Democratic Republic of the Congo (DRC). The resumption of violence since 20 October, including in and around the towns of Rutshuru, Kiwanja, Rumangabo and Kibumba, undermines peace efforts and has caused further insecurity and significant human suffering. We call on the M23 to immediately withdraw, end any acts violating international law, and to cease hostilities.

We reiterate our support for regional diplomatic efforts, including the Nairobi and Luanda processes, that promote de-escalation and create the conditions for lasting peace in DRC.  We encourage renewed dialogue through these mechanisms and for Congolese non-state armed groups to participate in the Nairobi process. All support to non-state armed actors must stop, including external support to M23. We call on countries in the region to use all means available to them to urge an immediate cessation of hostilities and immediate resumption of consultations on concrete steps to deescalate current tensions.

We reaffirm our commitment to the sovereignty and territorial integrity of countries in the Great Lakes region.

18/11/2022
PRESS RELEASE : Statement by the AUKUS Partners to the IAEA Board of Governors [November 2022]

The press release issued by the Foreign Office on 18 November 2022.

UK Ambassador to the IAEA, Corinne Kitsell, gave a statement on behalf of Australia, the UK and the US on their co-operation on AUKUS nuclear naval propulsion.

Chair,

I have the honour of speaking on behalf of Australia, the United Kingdom, and the United States on our effort through the AUKUS partnership to determine the optimal pathway for Australia to acquire conventionally armed, nuclear-powered submarines.

Chair,

We are now more than one year into our 18-month initial consultation period, and we are pleased with the progress made so far.

Since the September Board meeting, senior officials and technical experts have held further trilateral discussions in our capitals. We have also continued to hold productive technical consultations with the IAEA’s AUKUS taskforce and the IAEA

Secretariat in Vienna as we work to formulate a safeguards approach that will meet the IAEA’s technical objectives. These consultations are regular and ongoing, and they reflect the depth of the AUKUS partners’ commitment to the nuclear non-proliferation regime.

We remain resolutely committed to setting the highest possible non-proliferation standards in relation to our co-operation on the AUKUS endeavour, and we will continue to keep Member States fully updated on our trilateral consultations with the IAEA.

Chair,

Sadly, there have been continued calls by some countries for the Agency to suspend engagement with us until a separate mechanism is established to discuss all aspects of AUKUS cooperation on nuclear-powered submarines.

All Member States have the right to confidential discussions with the IAEA Secretariat, and it is vital that the Agency remains the impartial and independent technical authority on the implementation of safeguards agreements. At the September Board, the Director General reiterated his satisfaction with AUKUS partners’ level of engagement to date, and reaffirmed the mandate of the IAEA to engage with Member States on safeguards matters. To reconfirm what we have set out at the Board on previous occasions, Australia’s proposed naval nuclear propulsion activities will occur within the framework of Australia’s Comprehensive Safeguards Agreement (CSA) and Additional Protocol, providing the firm legal basis on which the IAEA, through the Director General and the Secretariat, is engaging with Australia and AUKUS partners.

Chair,

We would like to briefly address the unfounded criticism that certain members continue to repeat at this Board. As an example, one distinguished delegate yesterday identified nine items on which they claim the Director General is required to – and has purportedly failed to – report with respect to AUKUS. In his September report, the Director General explicitly stated that Australia has “complied with its reporting obligations under its CSA and AP, including those required under Modified Code 3.1 of the Subsidiary Arrangements to its CSA.”

The Director General also confirmed that further reporting by Australia at this time would be premature because Australia has “informed the Agency that…no activities listed in Annex I of the AP had either been conducted or were planned; no transfers of equipment/material listed in Annex II of the AP had either taken place or were planned; and no decision had been taken to construct or otherwise acquire any nuclear reactor or other nuclear facility in connection with AUKUS.”

Given we have repeatedly responded to these unfounded allegations in previous meetings, we will not again refute them line by line. However, we would like to make one point clear: Australia and the AUKUS partners are fully compliant with their respective safeguards obligations. Any assertions to the contrary are without any factual or legal foundation.

Chair,

We will continue our engagement with the Agency over the coming months, and we anticipate there will be further reports from the Director General in the future upon which we look forward to further discussions. We will continue to update the Board in future, as appropriate.

Thank you, Chair.

18/11/2022
PRESS RELEASE : Royal Air Force completes world-first sustainable fuel military transporter flight [November 2022]
The press release issued by the Ministry of Defence on 18 November 2022.
- First time an aircraft has flown in the UK using 100% sustainable aviation fuel on all engines
- Potential to reduce lifecycle carbon emissions by up to 80% while improving operational effectiveness
- Another key step by the RAF towards achieving Net Zero by 2040
An RAF Voyager – the military variant of an Airbus A330 – took to the skies over Oxfordshire powered entirely by 100% sustainable aviation fuel (SAF), paving the way for a range of possibilities for the future of flying military and civilian aircraft.

The flight, which took place on Wednesday, was a joint endeavour between the RAF, DE&S and industry partners Airbus, AirTanker and Rolls-Royce, with the fuel supplied by Air bp.

Sustainable aviation fuel – which is made from waste-based sustainable feedstocks, such as used cooking oil – reduces lifecycle carbon emissions on average by up to 80% compared to the conventional jet fuel it replaces, lessens the RAF’s reliance on global supply chains, and improves operational resilience.

Defence Minister Baroness Goldie said:

The Royal Air Force has flown the UK’s first military air transport flight using 100% sustainable aviation fuel on one of their operational Voyager aircraft. They should be rightly proud of this achievement; it is a breakthrough moment for the RAF and an exciting development for the MOD.

Through the RAF’s pioneering spirit, expertise and partnership with UK industry, British science and engineering is leading the way in improving operational resilience and developing future operating capability in a climate-changed world.

Different approaches will suit different platforms and environments. As such, a range of alternative fuel options are being looked at to ensure the UK is at the forefront of this developing technology.

This success follows last November’s small aircraft UK flight powered by 15 litres of synthetic gasoline – another world-first led by the RAF. Synthetic fuel is made from water and carbon dioxide, which is then put under pressure and an electric current run through it.

Wednesday’s 90-minute flight from RAF Brize Norton, flown by a combined RAF, Rolls-Royce and Airbus flight test crew, replicated an air-to-air refuelling sortie and was witnessed by senior RAF and industry representatives. It demonstrated the RAF’s potential for its future operational capability, ensuring the ability to contribute to UK defence wherever and whenever required.

Chief of the Air Staff, Air Chief Marshal Sir Mike Wigston said:

Climate change is a transnational challenge that threatens our resilience, our security and our collective prosperity. That is why I have set the RAF the ambitious challenge of becoming the world’s first net-zero Air Force by 2040. The way we power our aircraft will be key to meeting that challenge and the RAF is already thinking about how we will operate beyond fossil fuels.

This exciting trial flight of a Voyager from RAF Brize Norton powered entirely by Sustainable Aviation Fuel is an important milestone on that journey, and marks another technological first for the RAF alongside our industry partners.

Engineers from Airbus’ Commercial Aircraft and Defence and Space divisions have been working with the RAF, Rolls-Royce and Airtanker testing the aircraft’s performance and handling on the ground and in the air in preparation for the final flight with both engines powered by 100% SAF.

Aviation Minister at the Department for Transport, Baroness Vere said:

Our Jet Zero Strategy made clear that sustainable aviation fuels are key to greener flight for both military and civilian aviation.

This is a win for the planet and a testament to British ingenuity. We have launched the £165 million Advanced Fuels Fund to kickstart a homegrown SAF industry, as well as challenging the sector to deliver the first net zero transatlantic flight next year.

This breakthrough test flight is just one of the ways the RAF is actively working to reduce lifecycle carbon emissions produced by flying its aircraft. Other innovations have included a world-first, record breaking microlight flight using synthetic fuel, flying an electric aircraft at RAF Cranwell and creating fuel from genetically modified bacteria.

While continuing to fulfil the priority focus of protecting the nation, the sustainable aviation fuel could mark a step-change towards the RAF’s goal to be Net Zero by 2040. Working towards the Government’s Net Zero 2050 goal and Jet Zero Strategy, the RAF also plans for their first Net Zero airbase by 2025.

In addition to supporting the use of Sustainable Aviation Fuel in the Armed Forces, the Royal Air Force Commander in Chief HM King Charles III has also supported an increase in its adoption in the private sector though the Sustainable Markets Initiative. The SMI is a network of global CEOs from across all industries, working together to accelerate a sustainable future in line with its mandate. Part of the SMI’s work is raising awareness of SAF amongst the business community and encourage greater SAF uptake in corporate travel in addition to increased purchase agreements to encourage demand from the public and private sectors.
18/11/2022
PRESS RELEASE : Scottish Secretary responds to Chancellor’s Autumn Statement [November 2022]

The press release issued by the Secretary of State for Scotland on 18 November 2022.

Scottish Secretary Alister Jack has responded to the Chancellor’s Autumn Statement where the UK Government pledged to restore stability to the economy, protect high-quality public services and build long-term prosperity for the United Kingdom.

Jeremy Hunt outlined a targeted package of support for the most vulnerable, alongside measures to get debt and government borrowing down.

The plan he set out is designed to fight against inflation in the face of unprecedented global pressures brought about by the pandemic and the war in Ukraine.

Scottish Secretary Alister Jack said:

We are facing complex global challenges, and the Chancellor has had to take some difficult decisions. By reducing our borrowing, tackling the root causes of inflation and putting our public finances on a stable footing, we will create the economic stability we need for our long-term prosperity.

As we promised, we have put in place extra support for those who need it most, with support on energy bills and increases in pensions, benefits and the National Living Wage.

The Scottish Government will receive an additional £1.5 billion, to help support public services in Scotland. We are also putting extra money into two key projects in Scotland. Catapult will help grow our offshore energy capability, and a feasibility study to upgrade the A75 will pave the way for much improved connectivity between Scotland, Northern Ireland and England.

As a result of today’s tax and spending decisions, the Scottish Government will receive around an additional £1.5 billion over 2023-24 and 2024-25.

Delivering for the people of Scotland, the Chancellor has reconfirmed the UK Government’s commitment to work with the Scottish Government on options to improve the A75, in line with the findings from the Union Connectivity Review.

He also confirmed that funding for the UK’s 9 Catapult innovation centres will increase by 35% compared to the last funding cycle, this includes the offshore renewable catapult in Glasgow.

To protect the most vulnerable from the worst of cost-of-living pressures, the Chancellor announced a package of targeted support worth [£26bn], which includes continued support for rising energy bills. More than eight million households on means-tested benefits will receive a one-off payment of £900 in instalments, with £300 to pensioners and £150 for people on disability benefits.

The Energy Price Guarantee, which is protecting households throughout this winter by capping typical energy bills at £2,500, will continue to provide support from April 2023 with the cap rising to £3,000. With prices forecast to remain elevated throughout next year, this equates to an average of £500 support for households in 2023-24.

Working age benefits will rise by 10.1%, boosting the finances of millions of the poorest people in the UK, and the Triple Lock will be protected, meaning pensioners will also get an inflation-matching rise in the State Pension and the Pension Credit.

The National Living Wage will be increased by 9.7% to £10.42 an hour, giving a full-time worker in Scotland a pay rise of over £1,600 a year, benefitting 160,000 of the lowest paid workers.

The Scottish Government is receiving additional funding at the Autumn Statement for the current Spending Review period to 2024-25, but will be expected to live within these new budgets and support our mission of fiscal discipline. To improve public finances, from 2025-26 onwards day to day spending will increase by 1% with capital spending held flat in cash terms. This means overall departmental and devolved administration budgets will continue to rise in real terms, although more slowly, increasing by 0.5% each year to 2027-28.

To raise further funds, the Chancellor has introduced tax rises of £25 billion by 2027-28. Based around the principle of fairness, all taxpayers will be asked to contribute but those with the broadest shoulders will be asked to contribute a greater share.

The threshold at which higher earners start to pay the 45p rate will be reduced from £150,000 to £125,140, while Income Tax, Inheritance Tax and National Insurance thresholds will be frozen for a further two years until April 2028. The Dividend Allowance will be reduced from £2,000 to £1,000 next year, and £500 from April 2024 and the Annual Exempt Amount in capital gains tax will be reduce from £12,300 to £6,000 next year and then to £3,000 from April 2024.

The most profitable with the broadest shoulders will also be asked to bear more of the burden. The threshold for employer National Insurance contributions will be fixed until April 2028, but the Employment Allowance will continue protect 40% of businesses from paying any NICS at all.

In addition, the government is implementing the reforms developed by the OECD and agreed internationally to ensure multinational corporations pay their fair share of tax. And as confirmed last month, the main rate of Corporation Tax will increase to 25% from April 2023.

To ensure businesses making extraordinary profits as a result of high energy prices also pay their fair share, from 1 January 2023 the Energy Profits Levy on oil and gas companies will increase from 25% to 35%, with the levy remaining in place until the end of March 2028, and a new, temporary 45% levy will be introduced for electricity generators. Together these measures will raise over £55 billion from this year until 2027-28.

To ensure fiscal discipline while providing support for the most vulnerable, the Chancellor has introduced two new fiscal rules, that the UK’s national debt must fall as a share of GDP by the fifth year of a rolling five-year period, and that public sector borrowing in the same year must be below 3% of GDP. Overall, the Autumn Statement improves public finances by [£55 billion] by 2027-28, and the OBR forecasts both of these rules to be met a year early in 2026-27.

18/11/2022