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  • PRESS RELEASE : Government introduces new Energy Prices Bill to ensure vital support gets to British consumers this winter [October 2022]

    PRESS RELEASE : Government introduces new Energy Prices Bill to ensure vital support gets to British consumers this winter [October 2022]

    The press release issued by the Department for Business, Energy and Industrial Strategy on 11 October 2022.

    • UK government introduces landmark Energy Prices Bill, putting into law support to help households, businesses and others with energy costs this winter, while reducing inflation and supporting economic growth
    • the Bill also includes powers to stop volatile and high gas prices dictating the cost of electricity produced by much cheaper renewables
    • new ‘Cost-Plus-Revenue Limit’ will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear, with the potential to save billions of pounds for British billpayers

    Consumers will pay a fairer price for their electricity as the UK government introduces new emergency powers that will ensure consumers across the country receive help with their energy bills this winter.

    Without the launch of the schemes, businesses and consumers had been left facing increasing financial turmoil, with energy bills estimated to increase to as high as £6,500 before the government stepped in. Recently announced support will see a typical household pay £2,500 a year for energy, while businesses will be paying less than half of predicted wholesale costs this winter.

    The Energy Prices Bill, introduced in Parliament today (12 October 2022), provides the legislative footing needed to ensure that people and businesses across the UK receive support with their energy bills this winter through the Energy Price Guarantee for domestic consumers and Energy Bill Relief Scheme for businesses and non-domestic properties. This includes essential measures that enable the UK government to deliver comparable schemes in Northern Ireland and legislation that will require landlords and heat network operators to pass benefits through to tenants.

    Low-carbon electricity generation from renewables and nuclear will be key to securing more low-cost homegrown energy and we are supporting continued investment in the sector, including through The Growth Plan.

    Currently in the UK market, wholesale electricity prices are set by the most expensive form of generation – presently gas-fired generation, which are significantly higher in light of Russia’s appalling invasion of Ukraine and Putin’s subsequent weaponisation of gas supplies. Low-carbon electricity generators are therefore benefiting from abnormally high prices, while consumers are having to pay significantly more for energy generated from renewables and nuclear, even though they often cost less to produce.

    To further protect consumers, new powers to help sever the link between high global gas prices and the cost of low-carbon electricity have also been introduced through a new temporary Cost-Plus Revenue Limit in England and Wales. This will reduce the impact of unprecedented wholesale prices on consumers and the taxpayer by introducing a revenue limit, curbing the amount generators can make.

    The precise mechanics of the temporary Cost-Plus Revenue Limit will be subject to a consultation to be launched shortly. The government has been working closely with industry on the detail of the proposal, ahead of it coming into force from the start of 2023. It will ensure consumers pay a fair price for low carbon energy and has the potential to save billions of pounds for British billpayers, while allowing generators to cover their costs, plus receive an appropriate revenue.

    Business and Energy Secretary, Jacob Rees-Mogg, said:

    Businesses and consumers across the UK should pay a fair price for energy. With prices spiralling as a result of Putin’s abhorrent invasion of Ukraine, the government is taking swift and decisive action.

    We have been working with low-carbon generators to find a solution that will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear.

    That is why we have stepped in today with exceptional powers that will not only ensure vital support reaches households and businesses this winter but will transform the United Kingdom into a nation that offers secure, affordable and fairly-priced home-grown energy for all.

    Chancellor of the Exchequer, Kwasi Kwarteng, said:

    Our actions will mean that energy bills for the typical household will be half what they would have been this winter.

    We are protecting people, holding down inflation and preventing Putin’s energy price hike from causing long term harm to our economy by supporting businesses.

    The Energy Prices Bill forms yet another decisive step taken by the UK government to reform the energy market, giving Britain back control of its own home-grown energy and breaking ties to the ever-increasing volatility and uncertainty of the global gas market.

    Energy Prices Bill

    The Bill will introduce powers to enable the following:

    Energy Bill Relief Scheme

    The Energy Bill Relief Scheme will enable the government to provide financial assistance on energy bills for all eligible non-domestic customers, including businesses, charities and public sector organisations. This took effect on 1 October 2022.

    Energy Price Guarantee

    The Energy Price Guarantee will ensure that a typical household in the United Kingdom pays around £2,500 a year on their energy bill, depending on their use, for the next 2 years, from 1 October 2022.

    Alternative Fuel Payment

    This scheme is intended to deliver a one-off payment of £100 to UK households who are not on the mains gas grid and therefore use alternative fuels, such as heating oil, to heat their homes. More detail on non-domestic consumers will be set out shortly.

    Northern Ireland Energy Bills Support Scheme

    Powers in the Bill will provide a robust basis to allow the government to make payments and deliver NI EBSS, which will provide £400 of support to households in Northern Ireland this winter. Powers will enable a similar delivery model to the Energy Bills Support Scheme in Great Britain, in respect of using the existing regulatory regime to enforce and provide assurance to the government on delivery.

    Energy Bills Support Scheme Alternative Fund

    This scheme is intended to provide the £400 of support for households across the UK that would otherwise miss out on the Energy Bills Support Scheme, as they do not have a domestic electricity contract. The Alternative Funding will be made available for this winter, with an announcement on this in due course. The Bill will provide powers to deliver the funding through local authorities.

    Heat network support

    Powers in the Bill will ensure that heat networks benefiting from the Energy Bill Relief Scheme pass through cost savings to their consumers. The Bill provides for the appointment of an Alternative Dispute Resolution body which will handle complaints raised by consumers against their heat network if it has not complied with passthrough requirements.

    Pass-through requirements on intermediaries

    This legislation is intended to ensure support from the Energy Price Guarantee, Energy Bill Support Scheme, or Energy Bill Relief Scheme, are received by the end user in cases where intermediaries procure energy on their behalf in accordance with the terms of regulation. For example, the legislation will require landlords to pass benefits to through tenants with further details of the requirements under this legislation to be set out shortly.

    Cost-Plus Revenue Limit

    The government is taking steps to break the link between abnormally high gas prices and how much revenue low-carbon electricity generators receive. This will allow consumers to pay a fair amount for their electricity, and ensure electricity generators are not unduly profiting from the energy crisis caused in part by Russia’s invasion of Ukraine. The government recognises the importance of dispatchable and baseload generation for security of supply. The low-carbon technologies that can deliver these types of power do tend to have higher input costs (such as biomass and nuclear) and this is being considered as part of the detailed policy design.

    Contracts for Difference

    We are also legislating for powers that would allow us to consider running a voluntary Contracts for Difference process for existing generators to take place in 2023. A voluntary contract would grant generators longer-term revenue certainty and safeguard consumers from further price rises.

  • PRESS RELEASE : COP26 President Alok Sharma to attend IMF and World Bank Annual Meetings [October 2022]

    PRESS RELEASE : COP26 President Alok Sharma to attend IMF and World Bank Annual Meetings [October 2022]

    The press release issued by the Cabinet Office on 11 October 2022.

    The COP26 President will travel to Washington, D.C. this week to push for greater action on climate finance progress ahead of COP27

    Mr. Sharma will urge multilateral institutions to extend their support for developing countries as they accelerate the move towards clean energy and away from coal

    After the Annual Meetings the COP President will travel to Seattle to attend the Breakthrough Energy Summit and meet with US business leaders

    COP26 President Alok Sharma will travel to Washington, D.C. from 12 to 15 October, to attend the International Monetary Fund (IMF) and World Bank Annual Meetings.

    With just weeks to go until COP27, Mr. Sharma will meet with senior representatives from multilateral development banks, finance ministers, private finance and civil society to urge them to turn climate finance promises made in the historic Glasgow Climate Pact into action. This will include pushing for further support from these institutions on Just Energy Transition Partnerships (JETPs), the country-led initiative that aims to support developing countries’ transition away from coal or other fossil fuels to renewable energy.

    While there, the COP26 President will also deliver a major keynote address at the Wilson Center think-tank, outlining key climate finance priorities ahead of COP27 in Sharm El-Sheikh, Egypt, next month.

    In the speech, which will be his last in the role as COP President, Mr. Sharma will also address how the international system can support faster action in line with the Paris Agreement and Glasgow Climate Pact – as agreed by nearly 200 countries at COP26 last year. The speech will be available to watch online via the Wilson Center website at 3pm BST / 10am EDT on Friday, 14 October.

    Alok Sharma, COP26 President, said:

    “With less than a month to go until COP27, this week’s Annual Meetings in Washington D.C. are a critical moment for multilateral institutions to refocus their support for the many developing countries that are facing the devastating impacts of climate change.

    “Against the backdrop of ongoing global energy security challenges, organisations like the IMF and World Bank must do all they can to help developing countries move further and faster in tackling climate change, to support resilient economies powered by clean, renewable energy systems.

    “This includes extending support for Just Energy Transition Partnerships (JETPs), country-led partnerships supported by G7 nations that will help decarbonise economies and accelerate the transition from fossil fuels to clean, renewable energy.”

    During the Annual Meetings, the COP President will attend a roundtable on financing the energy transition with ministers from developing countries, address the Coalition of Finance Ministers for Climate Action on how climate finance can become more accessible, host a JETP roundtable with civil society and also attend a Sustainable Markets Initiative discussion, which will focus on how multilateral institutions are contributing to global mitigation efforts and key challenges on the road to COP27.

    The COP26 President will then travel on to Seattle from 16 to 18 October, where he will attend the Breakthrough Energy Summit, a coalition of private investors established by Bill Gates in 2015, to highlight the importance of energy innovation opportunities in emerging markets and best practices for unlocking and accelerating deployment of clean technologies.

    During his time in Seattle, Mr. Sharma will meet with business leaders from the tech and transport sectors to discuss the latest progress on their climate goals in line with the Glasgow Climate Pact. Mr. Sharma will also meet with officials, academic institutions, businesses and tribal leaders involved in tackling Washington State’s recent wildfires to hear how the State is managing adaptation and resilience in the wake of the worsening effects of climate change.

  • PRESS RELEASE : New tougher tests for trainee teachers [October 2012]

    PRESS RELEASE : New tougher tests for trainee teachers [October 2012]

    The press release issued by the Department for Education on 26 October 2012.

    • More rigorous pre-entry tests to raise status of profession.
    • New challenging English and maths tests from September 2013.
    • Calculators to be banned from maths tests.

    Prospective teachers will have to sit new tougher tests in English, mathematics and reasoning before they can start training.

    The changes – recommended by an independent review group of leading head teachers and education experts – would see calculators banned from the new mathematics tests and pass marks in English and mathematics raised.

    This comes as part of the government’s efforts to raise standards in the education system. It will also help Britain compete and thrive in the global race and spread privilege across our country.

    Trainee teachers currently have to pass basic skills tests in literacy and numeracy. Until this September, they took the tests only towards the end of their training course and were allowed unlimited re-sits.

    Latest figures show that around 98% of trainees passed the tests, calling into question the level of challenge. Candidates have already been limited to two re-sits for each test from this September, and the pass mark has been raised.

    Chaired by top head teacher Sally Coates, the Skills Test Review Panel has now recommended that:

    • the current tests are strengthened with tougher questions and approaches – for example, banning calculators and testing candidates’ use of English through their writing of continuous prose;
    • the pass mark for the English and mathematics tests is raised again, to the equivalent of GCSE grade B;
    • a new test for verbal, numerical and abstract reasoning is introduced, recognising that good teachers need to respond quickly and appropriately to often unpredictable demands.

    Candidates will have to achieve separate passes in English, mathematics and reasoning in order to be able to start teacher training. The review panel also proposed that the new tests could be used alongside degree class as a factor in determining the level of bursary to which a trainee teacher would be entitled. The government has today accepted the review panel’s recommendations in full.

    Education Secretary Michael Gove said:

    The evidence from around the world is clear – rigorous selection of trainee teachers is key to raising the quality and standing of the teaching profession.

    These changes will mean that parents can be confident that we have the best teachers coming into our classrooms. Above all, it will help ensure we raise standards in our schools and close the attainment gap between the rich and poor.

    Sally Coates, chair of the Review Group and the Principal at Burlington Danes Academy in west London, said:

    In carrying out the review, we wanted the tests to send a strong signal about the quality of teachers we all want to see.

    We believe that the whole selection process needs to be sufficiently rigorous to ensure that anyone who gains a place on a course of initial teacher training would be highly likely to succeed in that training, and go on to make an excellent teacher.

    Charlie Taylor, chief executive at the Teaching Agency, which is responsible for administering the new tests, and a former headteacher said:

    The new tests are part of our strategy to create an outstanding workforce of teachers. This is what parents expect and children deserve.

    We also want teaching to be a real choice for top graduates and by raising the bar on entry, we will further raise the status of the profession.

    Today’s announcement is part of wider plans to raise the quality of teachers in England to match the best-performing countries in the world. The government set out last year its reforms in the ‘Training our next generation of outstanding teachers’ strategy, which include:

    • offering graduates particularly those with first-class degrees in physics, chemistry, maths and modern foreign languages significantly better financial incentives to train as teachers – up to £20,000;
    • extra financial incentives for trainee primary maths teachers and trainee teachers who work in the most challenging schools;
    • encouraging more primary specialist teachers to be trained through specialist training programmes;
    • the new School Direct programme allowing schools to lead their own high-quality teacher training;
    • giving schools a stronger influence over the content of initial teacher training, as well as the recruitment and selection of trainees;
    • weeding out poor-quality initial teacher training providers.
  • PRESS RELEASE : Unanimous agreement by Council puts care-experienced people at forefront of policies and decision-making in Manchester [October 2022]

    PRESS RELEASE : Unanimous agreement by Council puts care-experienced people at forefront of policies and decision-making in Manchester [October 2022]

    The press release issued by Manchester City Council on 5 October 2022.

    Councillors in Manchester have unanimously agreed to put young people who are in care and care-experienced people of all ages at the forefront of policies and decision-making in the city.

    Their agreement gives formal recognition to ‘young people in care’ and ‘care experienced people’ as additional characteristics to be considered in all equality impact assessments carried out during the decision-making and policy-making process.

    It means that all future decisions and policies made by the Council will now have to demonstrate that the needs of these two groups have been properly considered and thought through, along with any impact on them.

    A Notice of Motion on the issue to today’s meeting of the full Council was agreed without exception by all councillors and is expected to have a real tangible impact both on young people in care, and adults of all ages who have been in care in the past.

    Councillors also want to ensure that the impact on both groups is considered from the start when services are commissioned – in the same way as other protected and additional characteristics currently are – and to make extra effort to make sure that anyone who has care experience can access all of council services.

    The Council has already taken several important steps over the last few years to support its cared-for children and care experienced young people better.  This includes measures designed to help and support young people as they leave care and move into accommodation of their own and start looking for employment.

    As a result, all care-leavers in Manchester are exempt from Council Tax up to the age of 25, are considered as a Band 1 priority on the Council’s housing register, and receive specialist support if they’re facing homelessness – without the use of B&B accommodation. As part of its commitment to better supporting young care leavers, the council also brought its Leaving Care service back in-house and invested in a new home for the service, with ‘trainer’ flats for care-leavers to get them used to holding down a tenancy after leaving care, and additional emergency accommodation on site.

    At the same time the Council has increased its use of ‘staying put’ so that young people can stay on with foster carers if they want to, and also invested alongside housing partners to provide move on accommodation for those young people who need independence.

    In terms of support into employment young care leavers are already guaranteed first access to apprenticeships with the local authority, but councillors now want to make it even easier for people of all ages who are care-experienced to gain employment at the Council and to develop into senior roles – with guaranteed interview schemes, mentoring and support, and reasonable adjustments made to support them.

    The city council’s decision to recognise children in care and people of all ages who are care experienced in this way comes off the back of an independent national review of children’s social care that recommended looking at making care experience an additional characteristic.

    Manchester is one of the first local authorities in the country – and the first in Greater Manchester – to take on board the national review’s recommendation and is well-ahead of any national policy on this, with the Government yet to respond to the national review which was commissioned by them.

    Today’s Motion to the Council was seconded by Councillor Garry Bridges, Executive Member for Early Years, Children, and Young People.  He said: “Young people in our care or who have left our care have the right to expect everything from a corporate parent that would be expected from any other responsible and good parent.  Good parents continue to support, care for, and be ambitious for their children after they leave home and become independent, and this is what we are determined to do.

    “We’re already very clear that our involvement with young people doesn’t just end when on paper they become adults at 18, and we’ve had a solid package of measures in place for some time to support our care-leavers up to the age of 25.

    “What we will now be doing however is taking this a step further, by extending our support to ensure that people of all ages who have had care experience in the past don’t find themselves discriminated against in their lives as a result of decisions and policies made by the Council – whether that’s in relation to where they live, their job, or other opportunities available to them.

    “We’re fully committed to doing everything we can to help everyone who is care-experienced – whatever their age – towards independence, and to support them in building a happy, healthy, successful future for themselves.

    “The proposals we’ve agreed today will help ensure they have all the tools they need to do just that.”

  • PRESS RELEASE : Public consultation begins around the expansion of landlord licensing across Manchester [October 2022]

    PRESS RELEASE : Public consultation begins around the expansion of landlord licensing across Manchester [October 2022]

    The press release issued by Manchester City Council on 7 October 2022.

    The public and landlords are being asked their views on the proposals to expand Selective Licensing to eight new areas in five wards across the city.

    There are already seven areas where Selective Licensing is in operation to help improve standards in the city’s large private rented sector to ensure the homes have a positive impact on an area.

    The consultation around the new areas is now open and asks for feedback about schemes in the following areas:

    • Cheetham – Esmond/Avondale – 87 PRS properties
    • Cheetham: Heywood St/Cheetham Hill Rd – 251 PRS properties
    • Cheetham: Flats Over Shops: Cheetham Hill Rd – 86 PRS properties
    • Levenshulme: Matthews Lane – 170 PRS properties
    • Longsight: The Royals – 74 PRS properties
    • Moss Side & Whalley Range: Claremont Road / Great Western St – 346 PRS properties
    • Rusholme: Birch Lane – 70 PRS properties
    • Rusholme: Laindon/Dickenson – 38 PRS properties

    The consultation is now open and residents are invited to take part. 

    This consultation will close on 14 December.If agreed, these designations could come into effect in spring 2023.

    Selective Licensing allows Councils to introduce compulsory licences for all private rented properties in areas experiencing one or more of the following: significant and persistent problem caused by antisocial behaviour, poor property conditions, high levels of migration, high levels of deprivation, high levels of crime, low housing demand – or is likely to become such an area.

    Councils are able to issue civil penalties of up to £30,000 or prosecute a landlord (with an unlimited fine) if they are not complying with the conditions of the licensing scheme. In extreme cases, Councils can also prevent the use of a property or assume control of a property.

     

    Cllr Gavin White, Manchester City Council’s executive member for housing and development, said:

    “We are seeing the real positive impact of selective licensing in the previously designated areas and it’s satisfying that through our licensing schemes and subsequent investigative work our officers are uncovering serious issues that otherwise would have gone unnoticed. 

    “We firmly believe that everyone living in Manchester deserves a decent home to live in and as our private rented sector grows, landlord licensing gives us a way of making sure that our residents can sleep easy knowing their property is safe.

    “Of course, we know that the vast majority of landlords do manage their properties to a good standard – but for those that don’t, our message is that it’s unacceptable to take advantage of your tenants and we will do what we can to hold them to account. There is no place for rogue landlords in our city.”

     

    Initial designation of Selective Licensing (2,279 PRS properties –

    • Crumpsall – 13th March 2017 to 12th March 2022 (now closed)
    • Moss Side – 8th Jan 2018 to 7th Jan 2023
    • Moston – 23rd Apr 2018 to 22nd Apr 2023
    • Old Moat – 23rd Apr 2018 to 22nd Apr 2023

     

    Second designation of Selective Licensing (from Feb 2022)

    • The Ladders – Gorton and Abbey Hey – 690 PRS properties
    • Hyde Road – Gorton and Abbey Hey – 95 PRS properties
    • Trinity – Harpurhey – 428 PRS properties
    • Ben Street area – Clayton and Openshaw – 99 PRS properties
  • PRESS RELEASE : Manchester Homelessness Partnership relaunches on World Homelessness Day [October 2022]

    PRESS RELEASE : Manchester Homelessness Partnership relaunches on World Homelessness Day [October 2022]

    The press release issued by Manchester City Council on 10 October 2022.

    A new vision to end homelessness in all its forms in Manchester was the focus of the Manchester Homelessness Partnership (MHP) today, 10 October, World Homelessness Day.

    At a relaunch event, the Partnership reflected on the work of the last seven years and restated its ambition to ending homelessness in the light of the huge challenges facing people in the current economic climate, and the ongoing energy and cost-of-living crisis.

    The MHP has brought together the public and private sectors, the voluntary and charity sectors, alongside people who have experienced homelessness, sharing knowledge and expertise to work together in a city approach and with one voice to ensure that homelessness is rare, brief and one-off.

    The work of the Action groups each tackle a key challenge that people experiencing homelessness regularly face, such as access to mental health support, emergency accommodation, employment, and migration and destitution. Genuine progress has been made including; securing additional funding to support young people, developing services for women with complex needs, supporting ex-offenders, and improving prevention work across the partnership.

    One of the overarching key successes of working together has been a reduction of 50% in the numbers of people sleeping rough on the streets. This was the most pressing issue facing the city when the MHP started, and the collaborative efforts of working together to design services, the ability to secure funding, share resources has seen major changes to the support provided to people to help deal with issues that led to them sleeping rough in the first instance and wrap around support to stay off the streets.

    Looking to the future, the Partnership aims to reinvigorate members, bring new partners on board and to get new Action Groups off the ground to deal with a changing emphasis in the homelessness landscape.

    Although people sleeping rough continues to be an issue, the rising numbers of families/people presenting as homeless and the increasing number of people in temporary accommodation is the overriding challenge for the MHP. Work to improve outcomes for people at risk of homelessness and to prevent it happening in the first instance, along with a reduction in the time in temporary accommodation and ending the routine use of Bed & Breakfast accommodation, with a focus on quality and more affordable accommodation, will be a key focus for the homeless partnership in the future.

    Councillor Joanna Midgley Deputy Leader, Manchester City Council said:

    “We know that Manchester is stronger together. Our one city approach under the umbrella of the MHP to tackling homelessness means that we have a real chance to make a marked difference to our residents at one of the most vulnerable times in their lives. We can achieve more together as we have shown through the successes of the Partnership. However, we know that we are in challenging times so now is the right time to refocus and breathe new life into the work that we are all passionate about and work towards our aim to end homelessness together.

    “The work taking place across the Partnership is reflected in our transformation programme in the homelessness service where we are placing greater emphasis on prevention, and to cut the number of people in temporary accommodation while continuing to reduce the number of people sleeping rough.”

    Paul Newcombe, Manchester Homelessness Partner and Chief Executive of the Booth Centre said:

    “With the cost-of-living crisis there has never been a more crucial time for us to come together to redouble our efforts, in making homelessness a thing of the past in Manchester.

    “Working in partnership with people who have experienced homelessness, the MHP has improved standards of temporary accommodation across the city, has helped preserve peoples’ dignity through specialist projects, and improved choice by recognising individual need. Though some great work has been done, there is more ahead of us and I am confident we can get there together.

    “This relaunch event provides the ideal opportunity for all like-minded services and citizens of Manchester to work together on the next steps, focusing on prevention and wider system and structural problems whilst meeting the significant needs of those in crises.

    “The strength of Manchester’s homeless partnership is its wide and varied membership and how each partner can contribute, the relaunch both recognises this and builds on it for the future.”

    To help people sleeping rough this winter there are a range of homelessness charities and organisations that work across Manchester which request specific items, volunteers or donations to fund their vital work including Real Change MCR, one of the Action Groups, a fund which supports 20+ charities in Manchester who can access the fund to help get people sleeping rough the things they need and ongoing support to start a new life away from the streets – to donate or find out more: www.realchangemcr.co.uk

    For anyone needing help and advice this winter go to www.manchester.gov.uk/helpinghands

  • PRESS RELEASE : EU exports under Free Trade Agreements surpass €1 trillion [October 2022]

    PRESS RELEASE : EU exports under Free Trade Agreements surpass €1 trillion [October 2022]

    The press release issued by the European Commission on 11 October 2022.

    EU trade deals mean increased exports, more stable economic relations and secure access to resources, a new report out today shows. EU exports to preferential partners for the first time surpassed €1 trillion in 2021, according to the Commission’s 2nd Annual Report on the Implementation and Enforcement of EU Trade Agreements. The Report also shows that EU efforts to break down trade barriers and support small businesses are helping EU exports and thus supporting European jobs.

    Executive Vice-President and Commissioner for Trade, Valdis Dombrovskis, said: “This report provides welcome news in the face of the many economic and geostrategic challenges Europe faces. It highlights that our EU trade strategy is bearing fruit: we have removed more market access barriers and we have been able to better support our SMEs. Our focus now is on growing the EU’s broad network of trade agreements, which play a crucial role in helping our economies to grow at this time of economic uncertainty, securing privileged access to key markets for our exports, as well as access to key inputs and raw materials via diversified and resilient supply chains. Cooperation with reliable global partners matters more than ever in this changing geopolitical landscape.”

    Making the most of trade agreements and their effective implementation is becoming increasingly important: for example, 44% of the EU’s trade took place under preferential trade agreements in 2021, with this expected to rise to 47.4% with the incorporation of agreements currently under adoption or ratification.

    Exports from the EU to preferential partners (minus the UK) grew more (16%) than EU exports to all trading partners (13%) between 2020 and 2021.

    EU trade agreements facilitate the imports of raw materials. For example, the EU currently imports 24% of its critical raw materials from preferential trading partners; this will rise to 46% once a free trade agreement with Australia, currently under negotiation, is in place. The modernisation of the agreement with Chile, the EU’s largest source of refined lithium (78%), is expected to further enhance reliable sourcing of this key resource and therefore also our green and digital transitions.

    More barriers to trade resolved and progress on trade disputes

    The EU’s exports in 2021 were €7.2 billion higher thanks to the removal of several trade barriers between 2015 and 2020.

    In 2021, 39 trade barriers (six more than in 2020) were fully or partially removed, mostly through cooperative engagement with the trading partners concerned. Their elimination had an immediate positive effect on EU exporters, notably in the food sector as most of them concerned sanitary and phytosanitary measures. Canada, for example, accepted the EU harmonised poultry meat certificate following cooperation with the Commission, EU Member States and business. Longstanding engagement with South Korea resulted in a resumption of EU Member States’ exports of pork and poultry in September 2022, after Korea recognised the EU’s stringent regionalisation measures to control outbreaks of African swine fever. This cooperation has the potential to unlock over one billion euros of trade in the next years.

    Substantial progress was also made in addressing tariff barriers with Egypt so as to avert the planned re-reintroduction of customs duties on cars imported from the EU. Similar progress was made in addressing non-tariff barriers hampering EU exports of cosmetics to Turkey.

    Dispute settlement activity at the World Trade Organization (WTO) continued despite the paralysis of the latter’s Appellate Body. The Commission settled a dispute on wind energy with the UK and advanced with a number of other partners, notably with the US on aluminium and with Turkey on pharmaceuticals. Progress was also made on implementing the panel report in the EU’s bilateral dispute with South Korea on trade and labour, with three fundamental ILO Conventions entering into force in April 2022. The Commission also launched several new challenges of breaches of trade rules that harm EU economic interests, including against China and Egypt.

    The EU Trade Barriers Regulation helped to solve differences with Mexico over tequila exports.

    Background

    This is the Commission’s second consolidated annual report on trade implementation and enforcement actions in 2021 and the first quarter of 2022. The report focusses on results achieved at the WTO and within the framework of the EU’s network of preferential trade agreements, promoting the agreements and removing or averting barriers, thus helping SMEs. The report also provides an update on a number of EU trade-related legislative instruments, notably the International Procurement Instrument (IPI) in force since 29 August or the Commission’s proposal for an Anti-Coercion Instrument (ACI).

    Under the guidance of Executive Vice-President Valdis Dombrovskis, the Commission’s Chief Trade Enforcement Officer (CTEO) steers efforts on implementation and enforcement and reports to the European Parliament and the Council. The Annual Implementation and Enforcement Report is the main instrument for this reporting.

  • PRESS RELEASE : European Commission raises a further €11 billion for NextGenerationEU and to support Ukraine [October 2022]

    PRESS RELEASE : European Commission raises a further €11 billion for NextGenerationEU and to support Ukraine [October 2022]

    The press release issued by the European Commission on 11 October 2022.

    The European Commission has today issued €11 billion in a dual tranche transaction, the proceeds of which will be used to support Ukraine under the EU’s MFA programme and Europe’s recovery under the flagship NextGenerationEU programme. The deal consisted of a €5 billion tap of the 7-year bond due on 4 December 2029 and a new 20-year bond of €6 billion due on 4 November 2042.

    Commissioner in charge of Budget and Administration, Johannes Hahn, said: “EU funding is a concrete expression of solidarity with Ukraine and Member States recovering from the pandemic. Today, we have successfully and under challenging market conditions raised a further €11 billion. Of them, €2 billion will be released swiftly to help Ukraine in this war of aggression on European soil.”

    From the funds raised through the sale of the new 20-year bond, €2 billion will be granted as loans to Ukraine. This will be the first instalment of the €5 billion in macro-financial assistance (MFA) loans to Ukraine agreed on 20 September 2022.

    With today’s transaction, the Commission has issued a total of €86.6 billion in long-term funding under NextGenerationEU in 2022 and €157.6 billion since the start of the programme in June 2021. Of this total, €36.6 billion have been issued since July 2022. This represents 73% of the Commission’s NextGenerationEU funding target for the second half of the year, with further transactions – both auctions and syndications – planned for late October, November and possibly December 2022, as per the funding plan published in June 2022.

    Following today’s transaction, the Commission has so far raised €3 billion under its MFA programme for Ukraine in the second half of the year, on top of €1.2 billion earlier in 2022. This will be followed by further loans to Ukraine in the coming weeks. This has been part of the extraordinary support of €19 billion secured by Team Europe for Ukraine to date.

    On the basis of the funds raised, the Commission has so far paid out nearly €113 billion under the Recovery and Resilience Facility and, as of end-June, over €15 billion under other EU programmes which benefit from NextGenerationEU financing. The Commission will continue to use the funds raised to support Europe’s post-pandemic recovery, financing Member States under the Recovery and Resilience Facility as well as via other EU programmes.

    Background

    NextGenerationEU is a temporary recovery instrument of more than €800 billion in current prices to support Europe’s recovery from the coronavirus pandemic and help build a greener, more digital and more resilient Europe.

    To finance NextGenerationEU, the Commission – on behalf of the EU – is raising from the capital markets up to around €800 billion between now and end-2026.

    In parallel to NextGenerationEU, the Commission runs several back-to-back funding programmes to finance the specific needs of the EU Member States and third countries. This includes the macro-financial assistance programme, under which the Commission is currently providing support to Ukraine, among others.

     

    Today’s bond syndication

    7-year tap

    The 7-year bond carries a coupon of 1.625% and came at a re-offer yield of 3.026% providing a spread of -21 bps to mid-swaps, which is equivalent to +88.3 bps over the 7-year Bund due in August 2029 and to 47.8 bps over the 7-year OAT due in November 2029.

    The final order book was of €13.9 billion.

    20-year bond

    The 20-year bond carries a coupon of 3.375% and came at a re-offer yield of 3.404% providing a spread of +32 bps to mid-swaps, which is equivalent to 101.7 bps over the 22-year Bund due in July 2044 and to 20.2 bps to the 21-year OAT due in May 2043.

    The final order book was of €26 billion.

    The joint lead managers of this transaction were Barclays, BofA Securities, Deutsche Bank, J.P. Morgan, and NatWest Markets.

     

    7-year tap

    Investor type  
    Bank Treasuries 54%
    Fund Managers 26%
    Insurance and Pension Funds 5%
    Central Banks / Official Institutions 8%
    Banks 6%
    Hedge Funds 1%
    Grand Total 100%

     

    Geography  
    France 15%
    UK 27%
    Other Europe 12%
    Germany 7%
    Italy 11%
    Iberia 10%
    Rest of World 0%
    Benelux 3%
    Nordics 6%
    Switzerland 6%
    Asia 3%
    Grand Total 100%

     

    20-year bond

    Investor type  
    Bank Treasuries 31%
    Fund Managers 39%
    Insurance and Pension Funds 18%
    Central Banks / Official Institutions 5%
    Banks 6%
    Hedge Funds 1%
    Grand Total 100%

     

    Geography  
    France 20%
    UK 8%
    Other Europe 12%
    Germany 13%
    Italy 9%
    Iberia 8%
    Rest of World 15%
    Benelux 9%
    Nordics 4%
    Switzerland 2%
    Asia 0%
    Grand Total 100%

     

  • PRESS RELEASE : IMF World Economic Outlook Growth Downgrade [October 2022]

    PRESS RELEASE : IMF World Economic Outlook Growth Downgrade [October 2022]

    The press release issued by the IMF on 11 October 2022.

    The IMF issued a gloomy forecast for global growth, downgrading its forecast for 2023 in its World Economic Outlook report issued Tuesday in Washington, D.C.

    IMF Chief Economist Pierre-Olivier Gourinchas, Petya Koeva Brooks and Daniel Leigh answered questions on how the current turbulence will shape things in the months to come.

    The IMF chief economist opened with a broad look at the growth forecast for the next year, which is likely to be much lower than expected, due to several main factors.

    “The global economy continues to face steep challenges. Shaped by three powerful forces, the Russian invasion of Ukraine, the cost of living crisis caused by persistent and broadening inflation pressures, and the slowdown in China,” Gourinchas said at a news conference launching the report at the IMF’s Annual Meetings.

    Gourinchas also highlighted the continuing impact the war in Ukraine is having on the global energy crisis.

    “The war in Ukraine is still raging and further escalation can exacerbate the energy crisis. Our October World Economic Outlook Report presents a risk assessment around or baseline projections. With 25% probability, global growth next year could slow down to below 2%, a historically low level. We’ve only had that five times since 1970. ”

    When asked about the continued risk new COVID-19 variants would have, Gourinchas said progress was being made, although he suggested China’s continued lockdown regulations are an exception.

    “An important exception is China, where a different health policy path has been charted. And as a result, the country is still facing continued, localized, but important sometimes lockdowns. And that’s something that is weighing down on Chinese economic activity in our in our baseline forecasts because of the continuation of zero-covid policy, ” said the IMF’s Chief Economist.

    IMF Economist Petya Koeva Brooks provided new insight on the impact that rising inflation and the energy crisis is having the Italian economy.

    “We are expecting Italy to enter a technical recession in the coming quarters. And a big impact has come from the energy crisis and the elevated inflation and the adverse impact on real incomes. So when it comes to the risks to this outlook, they are getting very much on the downside. And again, they are related to even further impact coming from energy markets,” she said.

    The panel was asked to turn their attention to the Horn of Africa, where there is a severe humanitarian crisis. In addition to high debt levels and a strengthening US dollar, IMF Economist Daniel Leigh highlighted low vaccination rates in the region as one of the factors in the continuing financial stress caused by the pandemic.

    “It is a region very severely affected by the war in Ukraine. The food, fuel and fertilizer price spike is having a negative effect on agriculture and a broad part of the economy. On top of that, this is one of the parts of the world where the COVID shock is still really severe in terms of the very low vaccination rates, 26% only in sub-Saharan Africa, compared to 66% in the rest of the world. Only 2% have a booster compared to a third to a half in the rest of the world. So on top of that, the global slowdown means less demand for the products of the region. And then on top of that, the higher interest rates, low growth means that two thirds of the countries in the regions are facing stress or debt distress. So this is why the attention here is very much on providing relief, also in terms of supporting the common framework to avoid the debt crisis from spreading,” Said Daniel Leigh.

  • PRESS RELEASE : Clean Air Zone signage unveiled as cameras switched on in Newcastle [October 2022]

    PRESS RELEASE : Clean Air Zone signage unveiled as cameras switched on in Newcastle [October 2022]

    The press release issued by Newcastle City Council on 3 October 2022.

    A network of 43 signs and 38 cameras are located at entry points around the boundary of the zone to alert drivers.

    Additional signage is in place on approaching routes and inside the zone while electronic signs on key routes are also displaying alerts to inform people that charging will start from January 2023.

    The CAZ is being introduced to help improve air quality and create a healthier environment by encouraging people and businesses with older, more polluting vehicles to upgrade to cleaner models.

    It will cover most of Newcastle city centre as well as routes over the Tyne, Swing, High Level and Redheugh bridges.

    Only older higher polluting taxis, vans, buses, coaches and HGVs will be affected by the CAZ. Drivers and vehicle owners can get help and advice and will be able to apply for financial support towards the cost of vehicle upgrades

    Private cars, motorbikes and low emission vehicles are not affected by the Newcastle and Gateshead Clean Air Zone.

    To help raise awareness and encourage people to get prepared for the CAZ, the cameras will begin to monitor vehicles entering the zone from today (Oct 3).

    Owners of non-compliant vehicles will not have to pay now but will be sent letters that will include information on how to get advice and support with upgrading their vehicle.

    Charging will be introduced in two phases – with non-compliant taxis, private hire vehicles, buses, coaches and HGVs being charged from 30 January 2023.

    Vans and light goods vehicles will not face charges until July 2023 to allow extra time for vehicle replacements, which are currently affected by a national supply shortage.

    Cllr Jane Byrne, cabinet member for connected city at Newcastle City Council said: “Although the signage and cameras for the Clean Air Zone are now in place, we want to reassure people that there will be no charges until next year and there is still time to get ready.

    “Over the next two months we will be collecting details of vehicles entering the zone and contacting owners of non compliant higher polluting vehicles, which will be affected from January, to make them aware and provide information about how to get support and financial help.

    “We know that van drivers are finding it more difficult to replace vehicles at the moment due to national supply issues and therefore we are delaying charges for those vehicles to give those individuals and businesses more time to prepare.”

    Cllr John McElroy, cabinet member for the environment and transport at Gateshead Council, said: “Poor air quality is affecting everyone’s health, which is unacceptable and we have to do something about it.

    “Reducing the number of older, more polluting vehicles on our roads is one way that we can help to improve our air quality and protect our health.

    “Affected drivers will be able to get support, including applying for financial help towards upgrading a vehicle, so we’re encouraging people to check if they are compliant and get in touch to find out about the support available.”

    People can check whether their vehicle would be affected by the Clean Air Zone using the government’s online vehicle checker at www.gov.uk/clean-air-zones.

    Further information about the CAZ can be found at www.breathe-cleanair.com.