Written Statements

Thursday 12th June 2025 Written Statements

Thursday 12 June 2025

UK-Singapore Investment Treaty

Thursday 12th June 2025 Written Statements

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

The Government will shortly end negotiations with Singapore on the UK-Singapore bilateral investment treaty.

Negotiations were launched in March 2023 to strengthen the UK-Singapore investment relationship, through agreeing modern provisions to guarantee high standards of fair treatment for investors, in line with a commitment in the 2020 UK-Singapore free trade agreement. As British investors in Singapore now benefit from the high-standard investment protections gained through our membership of the comprehensive and progressive agreement for trans-Pacific partnership (having formally joined in December 2024), we are ending negotiations on the UK-Singapore BIT. We will instead focus on efforts to further facilitate and promote investment and to boost our economic growth, as well as to build on the stock of UK investment in Singapore, and Singapore’s stock of investment in the UK, which stand at £15.7 billion and £19.3 billion respectively.

The strong co-operative relationship between the UK and Singapore extends beyond investment. On digital trade, seven memoranda of understanding signed alongside the UK-Singapore digital economy agreement facilitate co-operation in several key areas, including fintech and lawtech services. Trade digitalisation pilots conducted under the DEA demonstrated significant business benefits to trade in goods, including a 40% reduction in trade processing time, an 89% reduction in paperwork, and a 67% improvement in staff productivity. We are looking forward to continuing our close collaboration on digital innovation.

To further strengthen our trading relationship, we will continue to work closely with Singapore, as part of CPTPP, to modernise trade rules and promote deeper co-operation with other economies, including through accessions and the general review.

[HCWS695]

Wholesale Cash Firms: Oversight Regime

Thursday 12th June 2025 Written Statements

[The Economic Secretary to the Treasury (Emma Reynolds)]

Wholesale cash distribution is the mechanism that supplies physical cash—specifically banknotes and coins—to retail banks, cash machines and the wider retail market. This is a vital mechanism for ensuring the sustainable provision of and reliable public access to cash.

Under part 5A of the Banking Act 2009, the Bank of England is responsible for managing risks to the effectiveness, resilience, and sustainability of the WCD system. Specifically, the Act gives the Bank of England powers to “oversee” firms recognised by the Treasury in wholesale cash oversight orders as performing relevant WCD activities and as being market significant. The Bank of England can give directions, issue codes of practice, and supervise firms’ compliance. Further detail on the Bank of England’s supervisory approach can be found in its statement of policy. ¹

His Majesty’s Treasury’s decision on recognition

Today I am announcing which firms the Treasury has specified as recognised persons in wholesale cash oversight orders. As required under the Act, in making this decision the Treasury has: notified firms it considered for recognition; sought and considered any representations from these firms; and consulted relevant regulators, including the Bank of England.

Following this extensive process, I am announcing today that HM Treasury has made wholesale cash oversight orders to the following firms:

Barclays Bank UK PLC;

Barclays Bank PLC;

G4S Cash Centres (UK) Limited;

HSBC UK Bank PLC;

HSBC Bank PLC;

Lloyds Bank PLC;

Bank of Scotland PLC;

National Westminster Bank Public Limited Company;

The Royal Bank of Scotland Public Limited Company;

Post Office Limited;

Santander UK PLC;

Vaultex UK Limited.

These wholesale cash oversight orders have been made on 5 June 2025 and will come into force today, 12 June 2025.

In making these orders I have considered the requirements under section 28 of the Small Business, Enterprise, and Employment Act 2015. This requires Minsters to include in certain secondary legislation that regulates businesses and other bodies a provision for review or a statement as to why this is not appropriate.

I consider a provision for review inappropriate as it would be disproportionate relative to the economic impact. The impact on business is expected to be de minimis with annual fees that the Bank of England can charge recognised firms effectively capped by the Treasury, detailed in the Banking Act 2009 (Wholesale Cash Oversight Fees) Regulations 2024. The Bank of England can charge a maximum of £400,000 per firm per year for supervision fees and £150,000 for “special projects”. The current aggregate impact of making these orders is de minimis as defined in the better regulation framework.

Further, including a provision for review would be undesirable for particular policy reasons. The legislation contains provisions which necessitate ongoing review, meaning further provisions would be duplicative. Under section 206J of the Banking Act 2009, HM Treasury must revoke an order if it is no longer satisfied that the firm meets the relevant criteria. Section 206Z2 also requires the Bank of England to produce an annual report on the discharge of its functions and the extent to which risks in the WCD system have been managed. That report will subsequently be laid in Parliament. HM Treasury also plans routine engagement with the Bank of England that will monitor the implementation and impact of the regime.

¹ https://www.bankofengland.co.uk/paper/2023/sop/sop-on-the-banks-supervisory-approach-to-market-oversight-for-wholesale-cash-distribution

[HCWS698]

Local Government Best Value: Croydon Council

Thursday 12th June 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

As I have previously stated when updating the House, this Government are committed to resetting the relationship between central and regional government, and to establishing partnerships built on mutual respect, genuine collaboration and meaningful engagement. Local councils must be fit, legal and decent, and this Government are taking the action necessary to fix the foundations of local government. I am today updating the House on the steps that we are taking to support the London borough of Croydon to recover and reform.

London borough of Croydon

I am today publishing the latest report of the London borough of Croydon improvement and assurance panel, which I received in April. The report acknowledges and welcomes the hard work of the council’s members and staff and notes that there has been some progress over the course of the intervention, which is due to end on 20 July this year. However, the council’s financial position is deteriorating rapidly and the report documents serious concerns, particularly on the council’s ability to improve, on some aspects of leadership and on the use of resources.

Croydon remains one of the most financially distressed councils in the country. The council’s general fund debt sits at around £1.4 billion and it relies on the allocation of exceptional financial support through in-principle capitalisation directions to balance its budget. The dramatic increase in the council’s £136 million EFS for 2025-26, from £38 million granted for 2024-25, is highly concerning. The council has received approximately £553 million in total EFS since March 2021. This is simply not sustainable.

Failing to change course would condemn Croydon’s residents to a worsening position without an exit strategy. The report sets out that there has been a lack of pace throughout the intervention, but the deteriorating financial position, which is not being gripped and tackled adequately by the council, is reaching a “financial crisis”. The stabilisation plan has been in development since late January, but this does not yet provide a concrete plan to achieve the efficiencies and transformation that the council has committed to. Poor financial information and forecasting and a lack of controls have contributed to the deterioration of the financial position. There is an increasing reliance on Government support to balance the budget, operating costs continue to be “unreasonably high” and the medium-term financial strategy projects the general fund debt to rise to over £1.9 billion by 2029.

The panel documents the council’s ambition to deliver transformation but is concerned that the council will find it “enormously challenging” to deliver the necessary transformation and reduce spending while maintaining day-to-day delivery. The report notes that, based on benchmarking data, the council’s operating costs can be improved to be more in line with other authorities. I have carefully considered the report and other relevant material, including the Local Government Association’s corporate peer challenge. I am satisfied that the London borough of Croydon is failing to comply with its best value duty. I am therefore minded to exercise powers of direction under section 15(5) and 15(6) of the Local Government Act 1999 to implement an intervention package that ensures the council’s compliance with its best value duty.

Proposed package

I am satisfied that the scale of the financial difficulties facing Croydon, the failure of the council to adequately respond to these difficulties and the assurance required moving forward means that a short and sharp reset, with fast action, is required to shift the dial on the council’s recovery. On balance, I believe this is best achieved by escalating the statutory intervention to a commissioner-led model, to ensure that the council can achieve sustained change at the pace needed.

The finalisation and implementation of the council’s stabilisation plan, and in time a recovery plan, will be fundamental to Croydon’s transformation, reform and recovery. Commissioners will have greater scope to challenge and support the council to finalise and implement its stabilisation plan and deliver realistic transformation and savings, in line with what the council has committed to. I envisage the appointment of commissioners until 20 July 2027, with a review of the progress of the intervention after 12 months.

Representations

I am inviting representations from the London borough of Croydon and any other interested parties on the proposed intervention package by Wednesday 25 June.

I will carefully consider all representations before deciding how to proceed. The proposal to intervene is not taken lightly but is designed to strengthen and accelerate improvement to ensure that the council delivers for its residents. With council focus and support from the commissioners, I expect the council to demonstrate swift and sustained progress necessary to ensuring compliance with its best value duty.

Conclusion

I am committed to working in partnership with the London borough of Croydon to provide the necessary support to ensure its compliance with the best value duty and the high standards of governance that local residents and service users expect.

I will deposit in the Library of the House copies of the documents referred to, which are being published on gov.uk today. I will update the House in due course.

[HCWS697]

Northern Ireland: Civil Disorder

Thursday 12th June 2025 Written Statements

[The Secretary of State for Northern Ireland (Hilary Benn)]

I would like to update the House on the civil disorder in Ballymena and elsewhere in Northern Ireland. I have been in contact with the First and Deputy First Ministers and the Chief Constable of the Police Service of Northern Ireland.

The violence we have witnessed over the last three days is deeply shocking, including the attacks on police officers as they have worked to keep people safe and the attempts to burn people out of their homes. Such behaviour is completely unacceptable and has no place in Northern Ireland. Those involved will be brought to justice.

I urge all of those in positions of leadership to continue to work together to help bring this disorder to an end and to rebuild community relations, and I want to thank all those community leaders who are working hard, night and day, to bring calm back to our streets.

On Monday 9 June, approximately 4,000 people attended a peaceful vigil in the Harryville area of Ballymena to show support following reports of a sexual assault. I am saddened by those reports and my thoughts are with those affected. This case is now before the courts, and the PSNI and prosecutors must be given the time and space to do their jobs.

Despite the majority of people engaging in peaceful protest, a number of masked individuals broke away from the vigil and began to attack police officers using petrol bombs and masonry. Properties in the area were also attacked.

On Tuesday 10 June, in a second night of disorder in Ballymena, police officers again came under sustained attack from petrol bombs, heavy masonry, bricks and fireworks. PSNI officers discharged a number of attenuating energy projectiles, and deployed a water cannon and public order dogs to disperse the crowds. Properties were again attacked and damaged, and a number of vehicles in the area were set on fire.

On Wednesday 11 June, there was further disorder in Ballymena—AEPs and water cannon were again deployed —and in Larne a group set fire to the leisure centre where some of the families displaced from the disorder in Ballymena had been taken. The fire, in the reception area, was extinguished but there is smoke damage. The families that had been in the centre had all been safely relocated. In Coleraine, disorder led to bus and train services being suspended during the evening.

As policing and justice are devolved matters in Northern Ireland, the response to the disorder is being led by the PSNI and the devolved Government. I have been receiving regular updates from the Chief Constable both on the disorder, and the impact on PSNI officers. A mutual aid request has been submitted by the PSNI to the National Police Co-ordination Centre. The PSNI has my full support as it works to bring those responsible to justice.

More than 30 police officers have been injured. The House will want to pass its best wishes to them for a speedy recovery. Police officers working to protect local communities should not have to face this kind of attack. The fact that they continue in their duties despite this is testament to their commitment to the community they serve. I will be meeting the Chief Constable and some of those officers who have been keeping people safe in Ballymena, and will have an opportunity to thank them and pass on my wishes for their swift recovery.

Peaceful protest is an important part of our democratic society but what we have seen is disorder which has harmed the local community and caused fear, suffering and disruption to those living in the area.

Northern Ireland is a welcoming, open place. In my time as Secretary of State I have spoken to many people across Northern Ireland who want to work together to build a safer, more prosperous future. The vast majority of people are shocked by this disorder and the harm it has caused.

Finally, I would like to express my sincere thanks to the PSNI, the NI Ambulance Service and the Northern Ireland Fire and Rescue Service, as well as to the community and local organisations and agencies, who have worked in difficult conditions over the past few days to keep people safe.

[HCWS696]