Written Statements

Tuesday 20th July 2021 Written Statements

Tuesday 20 July 2021

National Security and Investment Act 2021

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

The National Security and Investment Act 2021 received Royal Assent on 29 April and provides for a new investment screening system to help protect our national security. Today I am publishing three sets of documents related to the Act: a consultation on the draft statement on the use of the call-in power, made under section 3 of the Act; the draft notifiable acquisition statutory instrument; and guidance documents on the Act.

I am announcing today that the commencement date for the sections of the Act not already commenced will be 4 January 2022.

Statement on the use of the call-in power

This statement—a draft of which was previously published as the “Statement of Policy Intent”—sets out how the Secretary of State expects to use the call-in power under the Act. The call-in power enables the Government to screen qualifying acquisitions for national security risks. During the passage of the Act, the Government committed to consulting on this statement and I am launching the consultation today. The consultation is available on www.gov.uk'>www.gov.uk and will be open until 11.59 pm on 30 August.

Draft notifiable acquisition statutory instrument

The draft notifiable acquisition statutory instrument sets out the proposed descriptions of the 17 sectors of the economy that would be captured under the mandatory notification requirements set out in the National Security and Investment Act 2021. The Government have previously consulted on the mandatory notification sectors and published a response in March 2021. The draft sector definitions have been refined in response to stakeholder feedback and the draft statutory instrument has been published today on www.gov.uk'>www.gov.uk to update businesses and investors about mandatory notification requirements.

Guidance

I have today published the first set of guidance documents on the Act. The guidance will build understanding and awareness for all parties who may be affected by the Act and who may need to comply with its provisions. The Government have tested and refined these documents with an expert panel of industry representatives, which includes business representative organisations, higher education bodies, investment associations and other stakeholders, who provided important feedback.

These guidance documents are: an overview of the Act, explaining what types of acquisitions are covered, whether parties need to tell the Government about an acquisition and how the Government will investigate an acquisition; the extraterritorial application of the Act; how the Act works alongside other regulatory bodies and market practices; and guidance for higher education institutions and other research organisations.

I will place copies of the section 3 statement for consultation, the section 3 statement consultation document and the draft notifiable acquisition SI in the Library of both Houses.

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Competition and Consumer Policy

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Today I will lay before Parliament two consultation papers on competition issues which respond to proposals that have been put to the Government in recent years from a variety of stakeholders. This includes those directly commissioned by the Government from Jason Furman, my hon. Friend the Member for Weston-super-Mare (John Penrose), Lord Tyrie and the Competition and Markets Authority. The consultation periods will end on Friday 1 October.

The first document, entitled “Reforming Competition and Consumer Policy—Driving growth and delivering competitive markets that work for consumers” sets out the Government’s vision for the future of competition and consumer policy. We aim to create a competition regime that reflects the Government’s strategic priorities and intervenes quickly and effectively when markets are not working, and consumers are being harmed. It also updates consumer rights so that consumers can navigate changing and new markets with confidence. Our proposals also aim to provide easier routes for consumers and traders to resolve problems amicably on their own and ensure the Competition and Markets Authority and regulators have the powers they need to fix consumer problems, delivering our manifesto commitment to give the Competition and Markets Authority enhanced powers to tackle consumer rip-offs and bad business practices.

These proposals will create a prosperous economy where vigorous competition drives growth and productivity, where businesses that do the right thing are rewarded with greater market share so that consumers can engage in markets with full confidence they will get a good deal.

The second publication called “A New Pro-Competition Regime for Digital Markets” is a joint publication with my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport. I will invite him to provide further detail on this consultation.

Both consultations invite views from consumers, businesses, civil society, think- tanks, academics, public authorities, and the devolved Administrations to ensure our new approach works for the UK economy and supports growth and productivity in markets in every part of the country.

Subject to the outcomes of the consultations, the Government will bring forward legislation to implement reforms.

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Magnox Inquiry Report: Government Response

Tuesday 20th July 2021 Written Statements

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

We today publish the Government’s combined response to the March 2021 final report of the Magnox inquiry and the June 2021 Departmental Review into the Nuclear Decommissioning Authority. The response has been co-authored by BEIS, the Cabinet Office and UK Government Investments. The Nuclear Decommissioning Authority has developed its own combined response to both the Magnox inquiry final report and the departmental review, which is also being published today.

Since it was established under the Energy Act 2004 the Nuclear Decommissioning Authority has driven a significant step change in the decommissioning of the UK’s legacy nuclear sites. The organisation’s portfolio includes 17 licenced nuclear sites, with over 15,000 people across its estate, and contributes very significantly to the Government’s levelling-up agenda. However, there is an ongoing need for the organisation to evolve to become a more resilient, efficient and effective organisation that continues to drive transformation on the ground and deliver value for money for the taxpayer.

The Magnox inquiry was an independent, non-statutory inquiry commissioned by the then Secretary of State for Business, Energy and Industrial Strategy, right hon. Greg Clark MP in 2017.

Its purpose was to review the procurement and subsequent termination of a management contract for decommissioning the Magnox nuclear power stations. An interim report was published in October 2017 with a number of initial findings and the March 2021 final report contained a total of 57 recommendations. These recommendations centred around future commercial assurance, oversight of governance procedures and organisational culture change.

The departmental review into the Nuclear Decommissioning Authority, conducted by an independent team within BEIS, was published in June 2021, with a total of 26 recommendations. These centred around the form and function of the Nuclear Decommissioning Authority, its oversight by Government and their internal governance, organisational health and operational effectiveness.

I am grateful to Mr Holliday and his team and to the independent departmental review team for their comprehensive and rigorous work, which is reflected in the reports.

Since the publication of the Magnox Inquiry interim findings, significant progress has already been made to strengthen and simplify the organisation of the Nuclear Decommissioning Authority estate. This includes the replacement of management contracts with direct subsidiary arrangements to support improved efficiencies across the estate and improvements to the governance of assurance and approval decisions, especially in the area of commercial assurance. There has been a complete overhaul of the Nuclear Decommissioning Authority leadership team since the 2017 Magnox procurement and the Government have also enhanced its oversight arrangements for the organisation. The recommendations from the reviews complement the progress made and propose further improvements.

Both reviews that are being responded to today contain further valuable lessons for the Nuclear Decommissioning Authority and for the Government. We take the recommendations very seriously and have considered them with great care. The responses will give stakeholders confidence of the depth of reach and robustness with which the learnings from the reports will have an impact on the Nuclear Decommissioning Authority.

The Government and the Nuclear Decommissioning Authority will prioritise the implementation of the commitments within these responses as we continue to deliver against the UK’s critical nuclear decommissioning challenges.

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Energy Digitalisation and Smart Technology Strategies

Tuesday 20th July 2021 Written Statements

[The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)]

I am pleased to announce the latest steps the Government are taking to decarbonise our electricity system, to meet our net zero target by 2050, delivering on commitments made in the Energy White Paper.

First, the Government have today published a new smart systems and flexibility plan, jointly with Ofgem. Technologies such as energy storage, interconnection and smart charging of electric vehicles are essential to balance supply and demand as we deploy more intermittent renewables to power our buildings and vehicles. Flexibility reduces the amount of generation and network we need to build, and costs for energy consumers—flexibility could reduce the cost of the system by up to £10 billion by 2050. It is critical for energy security as we shift away from unabated gas over the next decade. System flexibility is therefore fundamental in reducing emissions to net zero by 2050.

The transition to a smarter and more flexible energy system is also an opportunity. It will be delivered by UK businesses and will benefit consumers across the country. It will create nationwide jobs, potentially 24,000 by 2050, and drive investment across the UK. The UK is a global leader in smart systems and there is significant export potential—which could contribute as much as £2.7 billion per year to the UK economy by 2050—for the solutions that we will need to deploy at home. As nations confront the challenge of climate change, markets for new green products and services will spring up around the world. Taking action now will help position UK companies and our world-class research base to seize the business opportunities which will flow from it, creating jobs and wealth for our country.

The new smart systems and flexibility plan sets out how we will drive flexibility across the system, including a vision, analysis and suite of actions, focusing on:

Facilitating flexibility from consumers

Removing barriers to flexibility on the grid

Developing markets for flexibility, and

Improving monitoring of flexibility.

Secondly, the Government have published the UK’s first energy digitalisation strategy, jointly with Ofgem and Innovate UK. Energy system digitalisation is essential to enabling millions of assets—including solar panels, heat pumps, batteries and electric vehicles—to be optimised across our energy networks. A digitalised system will spur innovation, remove barriers to new entrants, facilitate new consumer offers and services, and enable system flexibility.

The energy digitalisation strategy sets out a vision and suite of actions to achieve this, focusing on:

Providing leadership and co-ordination to the sector

Incentivising the sector to digitalise, and

Supporting the development of digital tools and infrastructure.

These documents have been produced in close co-ordination with the energy sector.

Thirdly, the Government have published a call for evidence on de-risking large-scale, long-duration electricity storage. Large-scale and long-duration storage can provide additional benefits to other forms of flexibility, in particular by storing energy over long periods of low wind. The Government have developed a call for evidence from industry, investors and other stakeholders on the barriers and financing challenges that this type of storage faces, and how these barriers might be mitigated while minimising distortions in the market. This is the first stage in deciding whether a bespoke de-risking mechanism, such as a “cap and floor” regime is needed to accelerate deployment of this technology on the system.

Fourthly, the Government have published a call for evidence on the barriers to widespread deployment of vehicle-to-grid (and similar) technologies. Vehicle-to-grid technologies enable electric vehicles to balance the system by exporting electricity in return for payment when electricity is scarce—and reimporting it when it is abundant. The Government have developed a call for evidence to gain wider market views on the timescales, opportunities, and barriers as well as invite discussion on potential solutions to the widespread deployment of these technologies. The feedback will aid in creating a policy strategy for this area, help to design future innovation competitions and show the Government’s ongoing commitment to an area where the UK is a global leader.

I will place copies of the 2021 smart systems and flexibility plan and its appendices—appendix I: electricity system flexibility modelling, and appendix II: smart systems and flexibility plan monitoring framework—the energy digitalisation strategy, the call for evidence on facilitating the deployment of large-scale and long-duration storage, and the call for evidence on the role of vehicle-to-X technologies in a net zero energy system in the Libraries of both Houses.

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Future System Operator and Energy Codes Reform

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I am pleased to announce the launch of the consultations on the future system operator (FSO) and the energy codes governance reform. This is a key step that will contribute towards helping us achieve the Government’s net zero targets and our commitment in the Energy White Paper,

“to ensure that the institutional arrangements governing the energy system are fit for purpose for the long term, consulting in 2021 over organisational functions, including system operation and energy code governance”.

Net zero is an unprecedented challenge for our economy and society—and the energy system at its heart. It has created the need for new technical roles and responsibilities in the electricity and gas systems to drive decarbonisation while minimising costs and maintaining resilience. We will require an organisation with the mandate, whole-system perspective, and engineering capability to fulfil the new and enhanced roles effectively, and the organisational design, incentives, and accountability to fulfil them impartially in the best interests of consumers.

The future system operator (FSO) consultation sets out the case for an expert, impartial, cross-vector FSO to ensure the energy system drives progress towards net zero. The system operators are in a unique position at the heart of their respective systems, both to keep each system operating in real time day to day and to be forward-looking. To help us achieve net zero, we propose bringing the electricity system operator (ESO) and the forward-looking elements of the gas system operator (GSO) together in a new entity, which will enable the systems to be transformed. The consultation also sets out the potential roles that could fall to the new organisation and presents two potential organisational templates which might be adopted. Finally, it sets out considerations on implementation.

Today, we are also launching a consultation on the design and delivery of the energy codes reform. The energy codes are the detailed technical and commercial rules of the gas and electricity system, which cover wholesale, transmission, distribution, and retail. Many of the codes were designed pre-privatisation which has resulted in a code governance framework that is complex, fragmented and lacks incentives to innovate, despite our urgent need for a more unified, flexible and dynamic approach.

Building on a consultation from 2019, we have now developed two governance models further and will be consulting on our preferred option of designating Ofgem as a strategic body over the energy codes, alongside separate code managers. As the strategic body, Ofgem would assess and respond to relevant Government policy and priorities to ensure these are reflected in codes. It would also select and license code managers, who would replace the existing code administrators and take on most of the roles that are currently held by industry-led code panels. However, crucially, we expect that industry input will remain key to the code change process, including though new stakeholder advisory forums.

To help us develop our view on these reforms, we are seeking views on where improvements could be made to existing arrangements. Our final position will be shaped by the outcomes of these consultations.

These energy system governance reforms are intended to apply only to England, Scotland and Wales. Energy is generally devolved in Northern Ireland and so the scope of the review and proposed reforms do not apply to NI’s energy system governance, system operator or energy regulator.

I will place copies of both the future system operator consultation and energy codes consultation in the Libraries of both Houses.

[HCWS202]

Debt and Fraud Powers: Statutory Review

Tuesday 20th July 2021 Written Statements

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

My noble Friend the Minister of State for Efficiency and Transformation (Lord Agnew of Oulton) has today made the following written statement:

The Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez), and I are announcing the statutory review of chapters 3 and 4 of the Digital Economy Act 2017. Chapters 3 and 4 provide legal gateways which enable specified public authorities (and persons providing services to public authorities) to disclose information for the purposes of reducing debt owed to the public sector and combating fraud against the public sector respectively.

Cabinet Office Ministers are under a legal duty to review the operation of both chapters as soon as is reasonably practicable after the end of three years beginning with the day on which the chapters came into force (1 May 2018) for the purposes of deciding whether they should be amended, repealed or retained in their current form.

To commence that review, we are today publishing the criteria by reference to which that determination will be made, in accordance with sections 53 and 61 of the Act. Those criteria are set out below.

To determine if the debt and fraud powers of the Digital Economy Act 2017 should be amended, repealed or retained in their current form, the following criteria will be used:

a) What has been achieved in the three years since commencement and how has the risk of fraud and debt changed?

b) Have the powers been effective in managing and reducing debt owed to the public sector and in combating fraud against the public sector?

c) What positive and negative impacts (including societal impacts) have the DEA powers had? Due to their different characteristics, separate criteria will be used for fraud and debt:

 i) For debt: have the powers led to improved management and recovery of debt owed to Government authorities, increased fairness and better approaches to vulnerable debtors among such authorities and sustainable business-as-usual processes which allow recovered money to flow into the public purse?

 ii) For fraud: have the powers led to improved identification, prevention and recovery of fraud committed against Government authorities and sustainable business-as-usual processes which allow the prevention of fraud and recovered money to flow into the public purse?

d) Have the powers contributed to the effective delivery of Government policy, helped support manifesto pledges and supported the maintenance of the integrity of the Union and devolved Administrations?

e) Have the powers enhanced the willingness of public authorities to engage with and utilise data-sharing powers, reduced or created burdens for public authorities and/or given rise to any privacy concerns (such as in relation to reductions in privacy or the misuse of data)?

(f) Are there changes that can be made that would improve the effectiveness of the debt and fraud powers’ operations?

As part of this review, the Cabinet Office will include a consultation to obtain the views of all interested parties.

A copy of the review criteria is being placed in the Libraries of both Houses.

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Border Operating Model

Tuesday 20th July 2021 Written Statements

[The Paymaster General (Penny Mordaunt)]

My noble Friend, the Minister of State in the Cabinet Office (the right hon. Lord Frost CMG), has today made the following written statement:

 Today, the Government will publish an updated border operating model. This will reflect the revised timetable for introduction of the next stage of UK import requirements as well as including additional detail on policies and processes.

 This updated border operating model will continue to help businesses, which trade with the EU, to understand the approaching new requirements as well as those which are already in effect. We are also encouraging businesses to go to gov.uk/guidance/help-and-support-if-your-business-trades-with-the-eu to gain access to the host of resources the Government have created to assist traders.

 A copy of the updated border operating model has been deposited in the Libraries of both Houses.

[HCWS205]

Cash Ratio Deposit Scheme: Review

Tuesday 20th July 2021 Written Statements

[The Economic Secretary to the Treasury (John Glen)]

Cash Ratio Deposits (CRDs) are non-interest bearing assets deposited with the Bank of England (“the Bank”) by banks and building societies. They are invested in gilts by the Bank and the income is used to finance its policy functions, in particular its efforts to secure price stability and the stability of the financial system in general, from which these institutions are key beneficiaries.

The CRD scheme was extended to include building societies, and was placed on a statutory basis, when the Bank of England Act became law in 1998. At the last review, the Government committed to review the scheme within five years. The last review was in 2018 and resulted in the CRD ratio being moved from a single fixed ratio, to a variable ratio indexed to gilt yields, reindexing the ratio to prevailing gilt yields every six months. The Treasury, working closely with the Bank, will now begin the next review.

The review will include an assessment of the detailed arrangements of the scheme as well as the continuing suitability of the scheme itself compared to alternative sources of funding. It will also address the impact of the scheme on eligible institutions and involve a public consultation.

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Finance Bill 2021-22: Draft Legislation and Tax Documents

Tuesday 20th July 2021 Written Statements

[The Financial Secretary to the Treasury (Jesse Norman)]

In line with the tax policy-making framework, the Government are publishing draft legislation to be included in Finance Bill 2021-22. This allows for technical consultation and provides taxpayers with predictability over future tax policy changes. Alongside this, the Government are making announcements in a number of areas of tax policy.

Publication of draft legislation

The Government are publishing draft legislation and associated documents, further to previous announcements, including at Budget or in “Tax Policies and Consultations” (CP 404, published on 23 March 2021):

Sanctions to tackle tobacco duty evasion: The Government are publishing a summary of responses to the consultation on “sanctions to tackle tobacco duty evasion” alongside draft legislation. Respondents to the consultation indicated broad support for tougher sanctions to tackle small scale repeated tobacco duty evasion and for the concept of extending the use of these new sanctions to trading standards authorities. The draft legislation will introduce a package of sanctions, including a new penalty of up to £10,000 for repeated contraventions. The legislation will also grant HMRC the power to make future regulations for the operation of these sanctions, including provisions to extend their use to trading standards.

Clamping down on promoters of tax avoidance: As announced in November 2020, the Government are bringing forward a package of measures to clamp down on promoters of tax avoidance. Proposals include ensuring HMRC can protect their position by freezing a promoter’s assets so that the penalties they are liable for are paid, tackling offshore promoters and the UK entities that support them, closing down companies that promote avoidance schemes, and supporting taxpayers to identify and exit avoidance schemes. This package of measures builds on the promoters strategy, announced at Budget 2020, and the measures to strengthen existing anti-avoidance regimes which were legislated for in Finance Act 2021.

Hybrid and other mismatches: The draft legislation will make a technical change to the rules governing hybrid and other mismatches. The change will ensure that the legislation applies to certain types of entities that are seen as transparent in their home jurisdictions, including US limited liability corporations, in the same way as it does to partnerships.

Capital allowances—Technical amendment to allowance statement requirements for structures and buildings allowance (SBA): The draft legislation will amend the requirements for SBA allowance statements, to include the date qualifying expenditure is incurred or treated as incurred when the allowance period commences from this date. Without this change, subsequent owners of an asset on which SBA is being claimed may sensibly assume the date the allowance period commences is the date the asset is brought into use. Clarity for businesses on the remaining length of the allowance period means they will not be adversely affected by failing to claim the full relief to which they are entitled.

Powers to tackle electronic sales suppression (ESS): This draft legislation will introduce new powers to tackle electronic sales suppression. The new ESS-specific powers and penalties will make offences of possessing, making, supplying and promoting ESS software and hardware. There will also be ESS-specific information powers allowing HMRC investigators to identify developers and suppliers in the ESS supply chain; and access software developers’ source code and the locations of code and data.

Scheme pays deadlines: The draft legislation will extend the reporting and payment deadline for individuals to ask their pension scheme to settle their annual allowance charges from previous years by reducing their future pension benefits in the process known as “Scheme Pays”. This will resolve a technical issue that arises within the pension tax framework as a result of the Government’s planned remedy for addressing the age discrimination found in the 2015 public service pension reforms (the “McCloud case”). The Government will make further technical updates to pension tax rules as necessary to remove any other anomalies as a result of the remedy.

Increasing normal minimum pension age (NMPA): The draft legislation will increase the normal minimum pension age from 55 to 57 in April 2028. This is the age at which most members of registered pension schemes can draw benefits without incurring unauthorised payment charges. Members of uniformed public service pension schemes and those with unqualified rights to take their pension below age 57 will be protected from these changes. After considering consultation responses, individuals will be able to keep their protected pension age if they transfer their pension.

Notification of an uncertain tax treatment by large businesses: The Government are publishing a summary of responses and draft legislation to implement a new requirement for large businesses to notify HMRC where they have adopted an uncertain tax treatment. This will apply to returns due to be filed on or after 1 April 2022. This requirement to notify will provide HMRC with accurate and timely information to encourage earlier identification and resolution of uncertain tax treatments. This will help address the legal interpretation portion of the tax gap, estimated to be £4.9 billion in 2018-19. The Government will also publish accompanying draft guidance in due course.

Tax treatment of asset holding companies (AHCs): The Government are responding to their second stage consultation on, and publishing initial draft legislation relating to, the tax treatment of AHCs. These targeted reforms are designed to enhance the UK’s attractiveness as a location for AHCs, and represent a balanced approach in response to stakeholder representations.

The Government are also publishing draft legislation and associated documents in the following areas which have not been previously announced:

Basis period reform: Under the current system, tax returns filed by the self-employed and partnerships are based on a business's set of accounts ending in the tax year. A set of complex rules can apply to allocate the profits of those businesses to a tax year, which can cause confusion and error. The Government have announced a reform and consultation on how to simplify the system.

Location of risk regulation: Under current legislation, the determination of the location of a risk for insurance premium tax (IPT) purposes is unclear. The Government have therefore published draft legislation to clarify the rules for determining the location of a risk by placing the criteria into the primary legislation governing IPT. This will ensure clarity for taxpayers and HMRC, and retain the principles initially set out in legislation in 2001.

All draft legislation is accompanied by a tax information and impact note (TIIN), an explanatory note (EN) and, where applicable, a summary of consultation responses document.

Policy announcements

London capital and finance compensation payments: The Government will legislate in the autumn to ensure that payments made by the London capital and finance compensation scheme will not be subject to capital gains tax. This will provide certainty to bondholders that these payments will be free from income tax and capital gains tax. This measure will apply retrospectively from the date payments are made. The Government will also ensure that the compensation scheme terms enable bondholders who receive compensation in respect of a subscription to an ISA to return the money to an ISA without it contributing to their annual subscription limit.

Income tax exemption of new social security payments in Scotland: The Government will legislate in the autumn to ensure that two new social security payments made by the Scottish Government will not be subject to income tax (as provided for in the 2016 fiscal framework). This legislation will apply to the child winter heating assistance (introduced in November 2020) and the short-term assistance (introduced in July 2021). The legislation will be retrospective, from November 2020 and July 2021 respectively. HM Revenue and Customs will not collect any income tax that may have been due on payments made from November 2020 to the date the legislation takes effect.

Covid local grant scheme payments: The Government will legislate in the autumn to ensure that payments made by local authorities to families through the covid winter grant scheme and covid local grant scheme, and similar schemes operated by the devolved Administrations, are not subject to income tax. This will provide certainty to those who have benefited from the additional funding provided to local authorities. The legislation will be retrospective and cover payments made from 2020-21 onwards.

Other publications

The Government are also publishing summaries of responses to the following consultations:

“Modernisation of the stamp taxes on shares framework”

“VAT grouping—Establishment, eligibility and registration”

“VAT and the public sector: Reform to VAT refund rules”

“VAT and the sharing economy”

“VAT and value shifting”

Finally, the Government are also publishing a research report titled “Impact of making tax digital for VAT”. This considers the impact of making tax digital (MTD) across those taxpayers that have been required to operate it for VAT from April 2019 and further demonstrates that taxpayers are experiencing benefits in operating MTD.

All publications can be found on the gov.UK website. The Government’s tax consultation tracker has also been updated.

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Digital Markets: Pro-competition Regime

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Digital, Culture, Media and Sport (Oliver Dowden)]

Following the announcement of my right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy today, I would like to further update the House on the consultation on “A New Pro-Competition Regime for Digital Markets”.

The consultation sets out our proposals for a new pro-competition regime for digital markets which will tackle the unique sources of market power in fast-moving digital markets. The new regime will drive a more vibrant and innovative economy, across the UK.

The proposals include new rules that will ensure consumers and businesses are treated fairly and will help to level the playing field so that new and innovative tech firms can flourish. Alongside these rules, new measures will be put in place to tackle the sources of market power, injecting much needed competition into digital markets and spurring growth and innovation across the economy.

The new regime will be overseen by the Digital Markets Unit that will proactively shape the behaviour of the most powerful tech firms and protect those who rely on them. The Digital Markets Unit will be given robust powers to enforce the regime and the most powerful tech firms will face tough new fines if they do not comply.

The consultation builds on the Furman review, which highlighted the specific characteristics which make some digital markets susceptible to competition issues and made the case for a more targeted and forward-leaning regime to address these competition issues. It also draws on advice from the Digital Markets Taskforce on the design and implementation of the regime.

This consultation invites views from businesses, civil society, think-tanks, academics, public authorities, and the devolved Administrations to ensure our new approach works for the UK economy and supports growth and productivity in markets in every part of the country.

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Adviser on Concussion in Sport

Tuesday 20th July 2021 Written Statements

[The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport (Nigel Huddleston)]

I wish to inform the House that the Secretary of State for the Department for Digital, Culture, Media and Sport, has appointed Laurence Geller CBE as a ministerial adviser on concussion in sport.

Mr Geller is a leading expert in dementia care and is a pioneer in bringing the latest research and technology to bespoke dementia care facilities. He has a background in the business, hospitality and charity sectors.

The Secretary of State and I have made the issue of concussion in sport a priority. Mr Geller is an advocate on improving the safety of players across a wide range of contact sports and attended the two ministerial roundtables held on the subject earlier this year—attended by players and the national governing bodies of sport.

Mr Geller will work with DCMS officials to improve understanding of head injuries in sport and co-ordinate action to address it. Mr Geller’s experience in this area will be invaluable in increasing safety standards in sport to the benefit of individual players and sport as a whole.

This role is not remunerated.

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Special Educational Needs and Disabilities

Tuesday 20th July 2021 Written Statements

[The Parliamentary Under-Secretary of State for Education (Vicky Ford)]

On 20 July, the Department for Education confirmed it will be continuing the extended powers given to the SEND tribunal to hear appeals and make non-binding recommendations about health and social care aspects of education, health and care (EHC) plans, provided those appeals also include education elements.

These extended powers are currently being tested under a national trial, which began in April 2018. The trial will end on 31 August 2021 and the powers will continue.

Our ambition is for every child, no matter what challenges they face, to have access to a world-class education that sets them up for life. It will enable the tribunal to continue to take a more holistic view of the needs of the child across education, health and care while the cross-Government SEND review completes its important work.

Full details of this announcement have been published on the Department for Education section on the gov.uk website here:

https://www.gov.uk/government/publications/extended-powers-send-tribunal-national-trial.

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EEA EFTA Separation Agreement Joint Committee

Tuesday 20th July 2021 Written Statements

[The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (Wendy Morton)]

The EEA EFTA separation agreement, which was agreed with Iceland, Norway and Liechtenstein, and signed on 28 January 2020, covers citizens’ rights and other separation provisions.

These provisions wind down certain arrangements that the UK had with the EEA EFTA States by virtue of their participation in the single market and other EU-led initiatives. The separation agreement established a joint committee whose primary role is to supervise and facilitate the implementation and application of the separation agreement, with the power to make decisions. The joint committee has a rotating chair which is currently held by Iceland.

The second meeting of the joint committee took place on 27 May 2021, by video conference. Each of the parties gave an update on implementation and application of the separation agreement, and reaffirmed their commitment to ensuring the citizens’ rights provisions are upheld for those in scope. The independent monitoring authority and the EFTA surveillance authority also attended to give updates on their monitoring and complaints handling functions required by the separation agreement.

The joint committee adopted a decision to amend part 1 of annex I of the separation agreement to reflect decisions taken by the EU’s administrative commission for the co-ordination of social security systems that have also been incorporated into the EEA agreement. The decision of the joint committee ensures the separation agreement reflects the latest position under the EEA agreement. These decisions concern the interpretation of relevant social security co-ordination, including on data processing and exchange. They do not impact the rights provided for in the separation agreement. Full detail on and copies of this decision have been deposited in the Libraries of both Houses.

The joint committee will meet at least annually, with Liechtenstein holding the next rotating chair. The next meeting is expected to take place in 2022. I commit to updating Parliament immediately following future meetings of the joint committee where decisions are taken.

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Covid-19 Tests: Mandatory Validation Regime

Tuesday 20th July 2021 Written Statements

[The Minister for Patient Safety, Suicide Prevention and Mental Health (Ms Nadine Dorries)]

This statement sets out the analysis used to support the development of the mandatory validation regime for covid-19 tests before they can enter the UK market. This goes alongside the full impact assessment, which we have published.

Testing will continue to form a crucial part in the response to covid-19. Consumers must have confidence in the performance of tests they use. That is why the Government are bringing in draft legislation under the Medicines and Medical Devices Act 2021, which will require all antigen and molecular covid-19 tests to undergo mandatory validation to assess their performance before being permitted for sale on the UK market. This will ensure that any covid-19 test on the UK market meets a minimum standard, the same standards as those met by covid-19 tests procured for the NHS.

We have engaged with the Regulatory Policy Committee (RPC) throughout our work to ensure that our analysis meets the high standards the committee upholds. We thank them wholeheartedly for their constructive feedback and for working at pace to meet an unusually tight legislative timetable.

While the Department is working to produce a revised impact assessment, we intend to publish the current draft in the interim for transparency. In developing this assessment, we brought together regulatory knowledge in an area where we have not innovated policy for decades, alongside the ongoing challenges of modelling both economic and epidemiological predictions. We were unfortunately red rated in one key area which has resulted in a red rated IA. While I am obviously disappointed in this rating, we remain committed to working closely with the RPC to ensure that we produce a final IA that we are all satisfied with and proud of, making use of the latest data from a nascent and rapidly evolving market.

The analysis to date strongly supports our planned policy intervention. This is a necessary regulation to protect consumers and give reassurances to producers. While we do recognise the potential profit loss for companies whose products do not meet the required standards, this is a necessary move to ensure the highest-quality tests are available to protect consumers and public health. We have looked carefully at this and are committed to work closely with these producers to ensure they understand the requirements and can work to achieve them. Furthermore, the potential profit loss needs to be set against the additional profits that manufacturers who are producing high-quality tests that meet the validation standards could potentially gain, and the benefit to society of removing poorly performing tests and associated public health impacts.

The RPC has identified areas for further development, which include:

The need to enhance our analysis of the latest evidence of the share of the market for covid-19 tests which are accounted for by businesses based in the UK. This determines whether business impacts are reflected in the equivalent annual net direct cost to business (for businesses based in the UK) or as trade impacts (for businesses based elsewhere).

The need to test with stakeholders (or otherwise confirm) our assumptions about the proportion of devices presenting for validation (currently assumed to be 60%)—this affects profit/EANDCB/trade impacts since products not validated will be removed from the market) and the life cycle of devices (currently assumed to be 1-5 years—this affects programme costs in determining how frequently manufacturers need to submit devices for validation)

The need to explain further how we have:

 extrapolated from third party estimates of the future size of the private testing market size;

 established and treated stakeholders’ estimates of market profit margins; and

 estimated familiarisation and transition costs, including the use of any non-wage uplifts.

The need to add new content (and test with stakeholders - or otherwise confirm) to address:

 familiarisation costs incurred by retailers; and

 how devices online will be monitored and enforced.

The RPC fulfils a crucial role in ensuring that analysis and evidence in regulations are robust and assessed to an extremely high standard. The Government are committed to this process and in relation to this policy, we are determined to ensure the impact assessment we complete includes the best possible research and evidence available.

The impact assessment is a living document, used to support the process of policy design and implementation. We plan to make further iterations of this impact assessment publicly available ahead of the next statutory instrument we intend to lay in the autumn, which will introduce a second element of laboratory validation.

[HCWS208]

Deaths in Police Custody

Tuesday 20th July 2021 Written Statements

[The Minister for Crime and Policing (Kit Malthouse)]

On 23 July 2015, the Home Office announced a major review into deaths and serious incidents in police custody, to be carried out by the right hon. Dame Elish Angiolini, QC. On 30 October 2017, Dame Elish’s review was published, alongside the Government’s substantive response. In December 2018, a progress update was published focusing on three main themes: supporting families, strengthening accountability and preventing deaths.

The ministerial board on deaths in custody has continued to oversee and drive progress work resulting from the recommendations in the Angiolini Review. Today, as co-chair of the ministerial board on deaths in custody, I report on the progress made in delivering this work programme since the last update.

There has been significant progress made in response to the recommendations made by Dame Elish. Of the 110 recommendations, 65 have been completed fully, with a further 20 completed in part. The Government update addresses in detail each of Dame Elish’s twelve thematic areas covered in her report: restraint, custody environment, health and wellbeing, funding for families and family support, communications, investigations, coroners and inquests, accountability, training, learning, statistics and research.

Since 2018, the Home Office has substantially reduced the use of police custody as a place of safety for people undergoing a mental health crisis and introduced a major package of reforms to improve the effectiveness of the police complaints and discipline systems in order to increase accountability and help reduce delays. The Department for Health and Social Care has rolled out NHS England and NHS Improvement-commissioned liaison and diversion services to ensure when vulnerable people are in custody that their needs are identified and addressed and introduced the Mental Health Units (Use of Force) Act 2018 (Seni’s law) to increase the oversight and management of the use of force in mental health units, so that force is only ever used as a last resort.

The Ministry of Justice has undertaken a range of work to make inquests more sympathetic to the needs of bereaved people, including updating materials to aid families throughout the coronial process, publishing a protocol on how Government will act when it has interested persons status and encouraging local authorities to provide areas in coroners’ courts that are suitable to family needs.

The College of Policing has published guidelines on conflict management, including de-escalation and negotiations to promote safer resolutions to conflicts, updated its training to cover acute behavioural disturbance and introduced guidance on the role of a safety officer to monitor the use of restraint. Agencies, including the coroners’ services and Independent Office for Police Conduct, are continuing to ensure the voices of bereaved families and victims are part of their training, harnessing their knowledge to ensure they receive appropriate support and that no one else endures the same experience.

Since becoming Policing Minister, I have met a number of key stakeholders to develop my future priorities to tackle deaths in police custody in line with the spirit of Dame Elish’s recommendations. These include supporting police chiefs and police and crime commissioners to continue to drive forwards a zero-tolerance attitude to deaths in state custody, to treat each death as a serious tragedy and to learn quickly from deaths that do occur; ensuring detainees receive the response most appropriate to their needs as soon as possible and that appropriate health and social services are available; improving data collection to fully understand the extent to which protected characteristics impact detainees’ experience and use of powers within police custody and consideration of support for detainees judged at risk of post-custody suicide.

I am committed to keeping our work in this vital area transparent, and will ensure that regular updates on work to prevent deaths in police custody will be included in the published annual progress updates of the ministerial board on deaths in custody.

Every death in police custody is a tragedy. The impact is devastating on their loved ones. Dame Elish Angiolini’s report has been and remains a catalyst for change, and I am determined that we continue to prioritise preventing deaths in police custody and, in the tragic instances that they do occur, holding organisations to account and improving support for families to demonstrate how seriously we take these incidents.

I am placing a copy of our progress update in the Libraries of both Houses and on www.gov.uk.

[HCWS206]

Biometrics and Forensics Ethics Group: Annual Report

Tuesday 20th July 2021 Written Statements

[The Minister for Crime and Policing (Kit Malthouse)]

My noble Friend the Minister of State, Home Office (Baroness Williams of Trafford) has today made the following written statement:

 I am pleased to announce the publication of the 4th annual report of the Biometrics and Forensic Ethics Group on 20 July 2021. The group provides Ministers with independent advice on matters relating to ethical issues in forensic science and biometrics and considers issues in data ethics.

 I would like to thank the group for their advice concerning the use and retention of biometric identifiers and for their advice on the development and testing of biometric technologies.

 The BFEG has published two reports this year; on the feasibility of using genetic genealogy techniques to assist with criminal investigations by UK law enforcement; and on the ethical issues arising from public-private collaborative use of live facial recognition technology. The group has also updated its ethical principles for the development and use of biometric and forensic technologies and the use of large datasets.

 The group continues to provide valuable advice and guidance: on policy changes relating to the use of the National DNA Database; in support of the Home Office Biometrics programme; and for projects involving large data sets or machine learning applications. The group also provided advice on a leaflet for arrestees explaining their rights regarding deletion of custody images.

 The Biometrics and Forensics Ethics Group annual report can be viewed on the website of the group at:

https://www.gov.uk/government/organisations/biometrics-and-forensics-ethics-group

and a copy will be placed in the Libraries of both Houses.

[HCWS210]

Building Beautiful Places

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

The Government have set out to put beauty and design, for the first time, at the heart of the local planning system. To that end, we are changing the system so that local people are empowered to set standards for beauty and design in their area through local design codes. These codes will reflect their area’s unique aesthetics, culture and heritage, with tree-lined streets accompanying new developments.

The Government are publishing today the revised national planning policy framework (the framework), the new national model design code, and the Government’s response to the consultation on both. The consultation on the draft framework and national model design code ran from 30 January to 27 March and the Government are grateful to all who responded. In light of comments received, the Government have made important changes to this framework and national model design code.

The new framework is fundamental to ensuring local authorities and communities can shape and deliver beautiful places to live and work, with a greater emphasis on quality, design and the environment than ever before.

The changes we have made take forward the recommendations of the Building Better, Building Beautiful Commission that national policy should place a stronger focus on the creation of beautiful buildings and beautiful places. The framework will ensure that communities are more meaningfully engaged in how new development happens, that local authorities are given greater confidence in turning down schemes which do not meet locally set standards, and greater certainty to those schemes that do. This is part of the Government’s programme of improving the planning system to put high-quality, environmentally friendly design front and centre of new development.

Our policy changes will ensure the system helps to create buildings that fit in with places, while maintaining the framework’s existing strong focus on delivering the homes and other development which communities need. The changes:

Make beauty and place-making a strategic theme in the framework

Set out the expectation that local authorities produce their own design codes and guides setting out design principles which new development in their areas should reflect

Ask for new streets to be tree-lined

Improve biodiversity and access to nature through design

Put an emphasis on approving good design as well as refusing poor quality schemes

We have also made a number of environment-related changes, including on flood risk and climate change. These changes are an initial response to the emergent findings of our joint review with the Department for Environment, Food and Rural Affairs (DEFRA) of policy for building in areas of flood risk. For instance, highlighting the opportunities from improvements in green infrastructure and natural flood management techniques. We are also amending guidance on flood risk to emphasise that checks done by local authorities should steer new development to areas with the lowest risk of flooding from any source.

Our changes also include:

emphasis of the importance of retaining and explaining the historic and social context of historic statues, plaques, memorials or monuments rather than removing them

an update on the use of Article 4 Directions

an expectation that local planning authorities take a proactive approach to engaging with key delivery bodies and other stakeholders at the pre-application stage of local plan making

Alongside the national planning policy framework, the Government are also publishing the national model design code. This provides detailed guidance on the production of local design codes, guides and policies to promote successful design. It expands on the 10 characteristics of good design set out in the national design guide, which reflects Government priorities and provides a common overarching framework for design. The national model design code forms part of the Government’s planning practice guidance. Creating more beautiful places requires a greener approach that supports progress towards our 25-year environment plan goals. The national model design code sets a baseline standard of quality and practice which local planning authorities are expected to take into account, including the approach to landscape, green infrastructure, biodiversity and tree-lined streets.

The national model design code should be used as a toolkit to guide local planning authorities on the design parameters and issues that need to be considered when producing design codes and guides. It also sets out methods to capture and reflect the views of the local community from the outset, and at each stage in the process. Design codes are important because they provide a framework for creating healthy, environmentally responsive and sustainable places, with a consistent and high-quality standard of design. This will provide greater certainty for communities about the design of development and bring conversations about design to the start of the planning process, rather than the end.

Our changes will ensure that new homes in England are built to a dramatically higher standard, embedding the work Sir Roger Scruton, Nicholas Boys Smith and everyone involved in the Building Better, Building Beautiful Commission began. And we are now establishing the Office for Place within the Ministry of Housing, Communities and Local Government (MHCLG), advised by a board led by Nicholas Boys Smith, who will look to help local authorities across England create user-friendly but effective design codes for their communities. Fourteen councils across England are now testing this new approach and we will undertake further pilots over the course of the year.

[HCWS216]

Lasting Powers of Attorney: Consultation

Tuesday 20th July 2021 Written Statements

[The Lord Chancellor and Secretary of State for Justice (Robert Buckland)]

Today I am launching a public consultation on modernising lasting powers of attorney.

There are things we take for granted until we no longer have them—our ability to make decisions, our ability to express ourselves, our ability to choose. The Mental Capacity Act 2005 (MCA) led to the implementation of lasting powers of attorney (LPA) in 2007. An LPA gives people the opportunity to appoint someone they trust to make decisions on their behalf, in the event those abilities are taken from them, whether through accident, disease or illness.

The MCA also created the Office of the Public Guardian (OPG), an executive agency of the Ministry of Justice. The OPG is responsible for registering LPAs. This must be done before an LPA can be used. The OPG is also responsible for taking action where there are concerns about an attorney’s use of the LPA.

When the LPA was introduced in 2007, the safeguards put in place were appropriate for the time, but technology and society have moved on. Society’s attitudes to fraud and abuse, and the expected protections against them, have also changed. Technology now offers new ways for the OPG to protect its users through identity and information verification.

An LPA must be printed out so that it can be signed and witnessed on paper, no matter how the LPA documentation is completed. In the 14 years since LPAs were introduced, technology has advanced and become more widely available. People increasingly expect to be able to access Government services online and many donors and attorneys have told us the paper-based LPA is cumbersome, bureaucratic and complex.

Due to LPAs being paper-based, the OPG is required to handle a large amount of paper, which is costly and inefficient for the organisation, creating an ever-increasing need for staff, equipment and storage. The OPG’s operating costs are funded entirely by the income from the fees it charges. If the LPA service is not made more efficient, either fees will have to increase or the way the OPG is funded will become unsustainable.

We need to respond to these challenges and look at how technology can make it easier for people to make and register an LPA. We must also fully consider concerns about security—finding the right balance between ease of use and protection against abuse. Ease of access and protections must also be ensured for those who cannot use digital services or do not want to.

We believe that a move towards automating the OPG’s services will improve efficiency and reduce costs. It will also allow resources to be moved to improving other OPG services that provide more benefits for users.

It is for these reasons that I am launching this consultation on modernising lasting powers of attorney—to consider how to increase safeguards, while ensuring accessibility and OPG sustainability, and any changes to primary legislation that may be needed to facilitate this.

To develop the proposals put forward in this consultation, we have undertaken user research, interviews and surveys to gather the views of the public and professionals. We have engaged stakeholders from a range of sectors, including finance, legal, charity and social care. We now want to gather evidence from a much wider group and are asking for views on the following:

The role and value of witnessing on LPAs and how to keep that value.

The role of applying to register an LPA and who can apply.

Changes that may be needed to the OPG’s remit.

Changes to how people can object to the registration of an LPA.

Changes to when people can object.

The speed of the LPA service and whether a dedicated faster service should be introduced for people who need an LPA urgently.

How to ensure that solicitors have access to the service.

The consultation is available in full at: https://consult.justice.gov.uk/opg/modernising-lasting-powers-of-attorney and a copy has been presented to Parliament.

[HCWS209]

Improving Support for Disabled People and People with Health Conditions

Tuesday 20th July 2021 Written Statements

[The Minister for Disabled People, Health and Work (Justin Tomlinson)]

I am pleased today to update the house on the publications of Shaping Future Support: the Health and Disability Green Paper and the “Health is everyone’s business” consultation response.

The Government have a clear objective to make sure that disabled people and people with health conditions can lead the fullest, most independent lives possible, reaching their potential. As part of this, we remain committed to our ambition to see 1 million more disabled people in work by 2027.

Today’s publications and the work that follows will help us take an important step towards improving the way we help disabled people and people with health conditions to start, stay and succeed in work.

In 2021-22 we are forecast to spend a record £58 billion on benefits for disabled people and people with health conditions, and we have witnessed record levels of disability employment. We must now build on these achievements, unlock new opportunities and consider how support can be made sustainable for the future, so we can continue to help those most in need.

The consultation launched by today’s publication of the Green Paper will help us do this. It focuses on issues that disabled people and people with health conditions have told us they would like to see improved. This includes:

Testing new advocacy support, drawing on support already being provided by partners, so we can test and develop new ways to support the most vulnerable people who need extra help accessing and using the benefits system and who do not have families, friends or trusted networks to support them;

Making changes to the way we deliver health assessments, including considering future use of telephone and video assessments where that is right for the individual and exploring how we can improve the decision making process, including the evidence we take into account;

Reducing the number of assessments that we undertake by exploring the extension of the principles of the severe conditions criteria;

Exploring ways to strengthen the process people follow if they think the decision from a health assessment is wrong, building on the changes we have already introduced at the mandatory reconsideration stage; and

Building on our commitment to reform the work capability assessment, following work with disabled people and people with health conditions to consider future changes to assessments.

It is essential that any changes we make are shaped by disabled people and their representatives. This is why the Department and I have hosted a series of engagement events across the country, to hear about disabled people’s experiences of DWP services and priorities for future changes. This has also included a number of sessions with Members of Parliament who have held sessions in their constituencies, sessions I am thankful to have held. These experiences have directly shaped the Health and Disability Green Paper.

The consultation started by the launch of this Green Paper will last for 12 weeks. Following the consultation, detailed proposals will then be brought forward in a White Paper in mid-2022.

Taking action to better support people in work is another crucial element of our agenda, and with the publication of the “Health is everyone’s business” response, we are setting out the further action this Government intend to take to tackle ill-health related job loss. I am grateful to the almost 500 respondents to the consultation.

Reducing health-related job losses is as important as helping people into work. While most people return to work following a period of long-term sickness absence, disabled people have a heightened risk of falling out of work, an estimated 300,000 disabled people falling out of work a year prior to covid-19. The initiatives set out in the “Health is everyone’s business” response will work to address this challenge. They are designed as a package that both increases employer responsibilities in managing employee health at work, while also improving employer access to Occupational Health (OH) advice and Government support.

Employers have an important role to play in creating inclusive and healthy workplaces. Government recognise that employers need both more clarity on their existing responsibilities and clearer information to enable them to have the right guidance to support disabled people and people with long-term health conditions to remain in work or return to work following sickness absence.

Cross-government collaboration will continue as we enact proposals, ensuring we are well equipped to meet the challenges ahead. We will also continue working with key stakeholder organisations, employers and employees to deliver the proposals into the future. This will reduce the chance that certain individuals or groups are left behind and complement existing initiatives to help employees manage the employment impact of their condition, such as integrated Employment Advice provision in the NHS’s Improving Access to Psychological Therapy (IAPT) services in England.

I am hugely excited by this work. It is a real opportunity to deliver a more effective health and disability system and unlock every disabled person’s potential. This Green Paper will deliver ambitious policy reforms to improve the lives of disabled people, while the package outlined in the “Health is everyone’s business” response will ensure all employers are equipped to do the right thing for their employees, helping disabled people and people with health conditions stay in and thrive in the new world of work. The Health and Disability Green Paper and “Health is everyone’s business” response, alongside the forthcoming National Disability Strategy, will set out holistic approach to enable disabled people and people with health conditions to thrive in work and live more independent lives.

[HCWS221]

Office for Nuclear Regulation: Annual Report and Accounts

Tuesday 20th July 2021 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

My noble Friend the Parliamentary Under-Secretary of State for Work and Pensions, Baroness Stedman-Scott, has made the following written statement.

Later today I will lay before this House the “Office for Nuclear Regulation Annual Report and Accounts 2020 to 2021”. These documents will also be published on the ONR website.

I can confirm, in accordance with schedule 7, section 25(3) of the Energy Act 2013, that there have been no exclusions to the published documents on the grounds of national security.

[HCWS213]