Department for Business, Innovation, Science and Trade

The Government recognises that growth in AI and data centres is increasing electricity demand and that grid connection delays are a major barrier to new capacity in the UK.

To address this, the Government is reforming the connections process to better support strategically important demand, including data centres. Working with DESNZ, Ofgem and the National Energy System Operator, reforms will reduce delays, limit speculative applications and prioritise viable projects, helping unlock capacity faster while maintaining security of supply. Through the AI Energy Council, co-chaired by the Secretaries of State for DBIST and DESNZ, DBIST is exploring resilient, sustainable and scalable.

In May 2025, the UK and US announced the General Terms for the Economic Prosperity Deal (EPD), which will protect thousands of jobs, support key British industries and help drive economic growth.

We have implemented reciprocal duty-free quotas for beef, and the US has implemented a 100,000-unit annual quota for automobiles, reducing tariffs to 10%. On 24 July 2026, the US implemented the removal of tariffs on UK whisky and medical technology.

Discussions on the EPD continue.

The Government has confirmed that the Small Business Commissioner will have the resources needed to carry out its expanded functions. Detailed future funding arrangements will be determined through the usual departmental business planning and spending review processes. The Government does not currently intend to publish a separate funding plan, but will provide further information on the Commissioner's resourcing as the new functions are implemented.

All creditors in an insolvency are treated equally in their class according to a strict statutory priority. Without the provisions in sections 233 to 233B Insolvency Act 1986, essential suppliers could demand payment of existing debt, thereby undermining this priority. The provisions strike an important balance between the rights of the supplier and the benefits of business rescue, with mitigations included to prevent hardship. A 2023 review of the provisions found early positive signs that they are meeting their objectives and produced an estimated ongoing annual benefit to business creditors from increased company rescue of £73.2m.

The capping of bus fares announced on 22 July 2026 will have no impact on financing or insurance support provided by UK Export Finance, including for its loan guarantee supporting Dints International’s contract to supply renewable energy and infrastructure work in Angola.

The Government is reprioritising £454 million from the Department for Energy Security and Net Zero’s budget, including by switching £400 million of grant funding set aside for future international climate finance projects into loans. The remaining £54 million savings are expected from underspends in the Department’s budget.

This will provide more flexible ways to meet the Government’s international climate objectives.

The Government remains committed to spending 0.3% of Gross National Income on Official Development Assistance.

The capping of bus fares announced on 22 July 2026 will have no impact on financing or insurance support provided by UK Export Finance, including for its loan guarantee supporting Dints International’s contract to supply renewable energy and infrastructure work in Angola.

The Government is reprioritising £454 million from the Department for Energy Security and Net Zero’s budget, including by switching £400 million of grant funding set aside for future international climate finance projects into loans. The remaining £54 million savings are expected from underspends in the Department’s budget.

This will provide more flexible ways to meet the Government’s international climate objectives.

The Government remains committed to spending 0.3% of Gross National Income on Official Development Assistance.

Large businesses are required to publish payment data through the Payment Practices and Performance Reporting Regulations 2017. The effects and impact of the Commercial Payments Bill will be monitored following its implementation. Sixty days is a maximum, not a target. The Government will continue to encourage businesses to agree and meet shorter payment terms. We will continue our work to encourage businesses to pay even faster with the Small Business Commissioner who administers the Fair Payment Code, encouraging businesses to pay in 30 days.

For the purposes of the Commercial Payments Bill there is no general requirement for businesses to establish their size or that of their partners. Certain categories of business, will be able to benefit from exemptions from maximum payment terms – on the basis of size. Therefore, businesses wanting to rely on these exemptions will need to ensure they fall within the relevant category. This should be simple and pose minimal burden for those businesses seeking exemptions. Business size thresholds will be confirmed through regulations following a consultation with stakeholders.

The Small Business Commissioner will be able to examine whether the relevant size conditions have been met and take appropriate action where an exemption has been claimed improperly.

For the purpose of exemptions to maximum payment terms under the Commercial Payments Bill, the Government will consider aligning with business size definitions in existing legislation. Definitions of business sizes will be set out in secondary legislation, following consultation with stakeholders. Any departure from an established definition will therefore require a clear and evidenced justification.

The Commercial Payments Bill provides the Small Business Commissioner with the power to investigate a larger business where there are reasonable grounds to suspect that it has persistently engaged in poor payment practices. The Commissioner must consider the extent and impact of the suspected conduct, the resources required for an investigation, and whether an investigation would be proportionate in all the circumstances. Further detail will be set out in secondary legislation.

The Government will work with the Commissioner to ensure businesses understand their obligations and to consider what operational guidance should be published before the new legislation comes into force.

The Government has reviewed recent US Food and Drug Administration initiatives to reduce animal testing in preclinical safety studies and is engaging with the Medicines and Healthcare products Regulatory Agency on accelerating the science-led adoption of alternative methods for drug development and testing. Through the Replacing Animals in Science strategy, the Government is investing in development, validation and regulatory uptake, including UK validation infrastructure and measures to build regulatory confidence. We will continue to monitor international developments, including in the US, and adopt approaches where supported by evidence and compatible with maintaining human, animal and environmental safety.

The Government is taking action to help employers manage employment costs while supporting growth. Employers can benefit from National Insurance Contributions reliefs for under-21s and apprentices under 25, meaning they pay no employer NICs on eligible earnings up to £50,270. These reliefs are estimated to be worth around £2.5 billion in 2025/26. We are supporting SMEs by providing a £4.3 billion business rates support package and committing to lower business rates for retail, hospitality and leisure businesses We will continue to make the UK the best place in the world to start and grow a business.

Furniture manufacturers must ensure they only place safe products on the UK market. Any chemical flame retardants used in furniture must comply with all relevant UK chemical regulations, including UK REACH.

While the evidence of negative health impacts from chemical flame retardants in furniture is limited, the Government recognises concern about their widespread use. The consultation ‘Product regulation: fire safety of domestic upholstered furniture’ proposes reforming the Furniture and Furnishings (Fire) (Safety) Regulations 1988, which set flammability requirements for upholstered furniture, to maintain a high level of fire safety while meaningfully reducing the use of chemical flame retardants.

Following the 2023 consultation ‘Smarter Regulation: Fire safety of domestic upholstered furniture’, the Government engaged extensively with a wide range of stakeholders, including manufacturers and upholsterers to build our evidence base, including on the costs associated with chemical flame retardant use.

This engagement led to the consultation ‘Product regulation: fire safety of domestic upholstered furniture’ with amended proposals, including ending mandatory open-flame testing and moving to a smoulder-based test consistent with the approaches adopted internationally, and removing re-upholstery and repair from the scope of the regulations so that it is more proportionately regulated under the General Product Safety Regulations.

Following the 2023 consultation ‘Smarter Regulation: Fire safety of domestic upholstered furniture’, the Government engaged extensively with a wide range of stakeholders, including manufacturers and upholsterers to build our evidence base, including on the costs associated with chemical flame retardant use.

This engagement led to the consultation ‘Product regulation: fire safety of domestic upholstered furniture’ with amended proposals, including ending mandatory open-flame testing and moving to a smoulder-based test consistent with the approaches adopted internationally, and removing re-upholstery and repair from the scope of the regulations so that it is more proportionately regulated under the General Product Safety Regulations.

Following the 2023 consultation ‘Smarter Regulation: Fire safety of domestic upholstered furniture’, the Government engaged extensively with a wide range of stakeholders, including manufacturers and upholsterers to build our evidence base, including on the costs associated with chemical flame retardant use.

This engagement led to the consultation ‘Product regulation: fire safety of domestic upholstered furniture’ with amended proposals, including ending mandatory open-flame testing and moving to a smoulder-based test consistent with the approaches adopted internationally, and removing re-upholstery and repair from the scope of the regulations so that it is more proportionately regulated under the General Product Safety Regulations.

The Government has assessed section 2E(2) as part of the wider impact assessment for the Commercial Payments Bill as a whole, where the measures are aimed at addressing the estimated £11 billion cost of late payments to cost the UK economy each year.

Section 2E(2) provides a targeted exemption from the statutory payment term restrictions, where the purchaser is the smaller party, preserving flexibility for smaller purchasers when contracting with larger suppliers. The impact assessment looks at the costs of businesses identifying and implementing exemptions. Exemptions introduce additional administrative burdens for businesses, with larger estimated costs for large businesses compared to smaller ones. The full assessment can be found in the costs and benefits analysis annex of the published impact assessment: https://assets.publishing.service.gov.uk/media/69c054b11263ce46c3690c7c/prompt-payments-primary-legislation-impact-assessment.pdf

The Regulators’ Pioneer Fund (RPF), delivered by the Regulatory Innovation Office (RIO), supports regulators and local authorities to develop and test innovative regulatory approaches that help accelerate innovation across a range of sectors and regions of the UK. In October 2025, the RIO awarded up to £7.9 million to 14 regulator and local authority-led projects through the fourth round of the Fund. These projects are due to conclude by the end of the 2026.

At London Tech Week in June 2026, the Government announced that the RIO would allocate approximately £70 million to regulatory innovation funding over the current spending review period. RIO is now developing the funding mechanisms, delivery model and supporting processes needed to deploy this funding effectively and maximise its impact.

We have been in discussions since 2023 with Jingye about how to deliver a sustainable future for British Steel and since April 2025 regarding Jingye’s proposal to sell British Steel to HMG. Since we tabled our proposal earlier this year we met a number of times to discuss a pathway to resolution. We agreed with Jingye that our discussions should remain confidential.

As set out in the Written Ministerial Statement on 16 July 2026, the Government is putting in place a new Board of Directors for British Steel Limited, who will bring extensive commercial and industrial expertise to support the company and management in stabilising operations and moving the firm on from its current poor commercial position. The Board will be responsible for developing a plan to transform British Steel into a commercially and environmentally sustainable steelmaking enterprise. It will be the responsibility of the Board to determine if and when any strategic plans should be published.

The Government works closely with industry partners to strengthen the resilience of critical digital infrastructure and to reduce vulnerabilities that could arise from supply chain dependencies, cyber risks or single points of failure. This includes promoting robust cybersecurity practices, business continuity planning and risk management measures across critical sectors.

Through the National Cyber Security Centre and other relevant authorities, the Government continues to assess risks to the UK's digital infrastructure and, where necessary, takes action to protect national security and the continuity of essential services.

The Government recognises the significant contribution that AI companies make to economic growth and innovation.

Demand for commercial office space in London is influenced by a range of factors, including wider economic conditions, business investment and workplace trends. The expansion of AI companies may contribute to demand for office space, particularly in innovation and technology clusters, but the Government does not routinely assess the impact of individual sectors on the commercial property market.

22-26 Whitehall has 825 desk work settings. The site is used by multiple Government departments, and official figures have not yet been updated following the creation of the Department for Business, Innovation, Science and Trade.

On 30 June 2026, 22-26 Whitehall had 998 active DSIT civil servants as their contracted office location.

The Government undertook proportionate due diligence before acquisition, drawing on information available through engagement with British Steel during the intervention under the Steel Industry (Special Measures) Act 2025. This included assessment of potential environmental liabilities, consideration of employee-related obligations and potential liabilities, and general business liabilities. The extent of some liabilities will depend on the future operational plans for the site. The Government's assessment, based on the relevant factors including cost considerations, is that it is necessary in the public interest to nationalise British Steel Limited.

The transfer brought certain property, rights and liabilities into a company wholly owned by the Secretary of State, subject to specified exclusions, and these are listed in Schedule 1 to the British Steel Limited Property Transfer Regulations 2026 (S.I. 2026/832).

The financial position of the company wholly owned by the Secretary of State--renamed by the transfer regulations as British Steel Ltd.--following nationalisation will be disclosed in accordance with relevant accounting standards, and through the 2026-27 Annual Report and Accounts process.

The Schedule of the transfer Regulations (S.I. 2026/832) laid on 16th July defines the property, rights and liabilities excluded from the transfer, meaning they remain the property, rights and liabilities of the transferor. These include but are not limited to any liabilities owed to, or relating to liabilities owed to undertakings within the same corporate group as the transferor. Certain unsecured liabilities owed to third parties are also excluded. The Government has acknowledged the duty to bring forward compensation scheme regulations to allow an independent valuer to determine whether or not compensation is payable.

The Department engages regularly with steel producers, steel-using businesses, trade unions and other stakeholders on issues affecting the UK steel sector, including the Steel Act and the usage of its powers. Ministers and officials also have regular engagements, meetings and roundtables with downstream users.

Decisions about ministerial attendance at departmental offices are a matter for individual ministers, taking account of their official duties, operational requirements and the effective conduct of government business.

HMG recognises the importance of compute to the UK’s digital economy and national security. HMG takes a balanced approach to cloud services, ensuring security and resilience while benefiting from global innovation. This is underpinned by UK security standards, data protection law and established commercial frameworks.

Domestically, HMG is accelerating UK data centre delivery through AI Growth Zones. The UK has a range of economic security tools to manage risk, including the National Security and Investment Act 2021.

HMG keeps risks under review, adapting its approach as needed, as is the case with the Cyber Security and Resilience Bill.

HMG recognises the importance of compute to the UK’s digital economy and national security. HMG takes a balanced approach to cloud services, ensuring security and resilience while benefiting from global innovation. This is underpinned by UK security standards, data protection law and established commercial frameworks.

Domestically, HMG is accelerating UK data centre delivery through AI Growth Zones. The UK has a range of economic security tools to manage risk, including the National Security and Investment Act 2021.

HMG keeps risks under review, adapting its approach as needed, as is the case with the Cyber Security and Resilience Bill.

For Britain, AI sovereignty is about reducing over-dependencies and increasing resilience in key national strategic priorities, so we secure greater control and greater leverage over the issues that matter most. We will continue to use the best technology and welcome inward investment because that is what our public services and economy demand.

We have moved quickly to strengthen the UK's sovereign AI capabilities, including launching the £500m Sovereign AI Fund, which since April has already taken equity stakes in three promising British frontier AI companies and supported six more with access to national compute.

We recently announced a £1.1 billion AI Hardware Plan to back British firms developing the chips and computing power behind AI. This includes our Advance Market Commitment to buy novel inference chips, which will equip the UK’s AI Research Resource (AIRR) with powerful next generation chips. Dedicated AIRR capacity supports the AI Security Institute and the Sovereign AI Unit, including guaranteed resource for mission-critical AI safety research, and strategically selected UK AI startups. Over 500 UK projects have already been supported through AIRR infrastructure, and we are further investing £2 billion to expand our public compute offering.

The Department of Business, Innovation, Science and Trade engages regularly with relevant organisations such as DEFRA and the Environment Agency, recognising the need to ensure data infrastructure does not compromise the resilience of public water supplies.

The Government supports the adoption of efficient cooling technologies, including closed-loop systems and alternative water sources such as rainwater harvesting, and national planning policy embeds consideration of sustainable water use and resource efficiency in decision making. In 2025, a joint techUK-Environment Agency survey found that 51% of surveyed sites use closed loop cooling systems, and 64% use less than 10,000m³ of water per year.

The government understands that there is potential for artificial intelligence to support people with accessibility needs, including those who are Deaf or hard of hearing or face language barriers.

The Government Digital Service (GDS) will undertake analysis and research on how artificial intelligence and frontier technologies could improve accessibility for disabled users in digital public sector services.

This steel trade measure has been carefully designed to take account of UK industry needs, and to ensure continued supply of necessary imports to meet these aims.

An Explanatory Memorandum accompanying the relevant legislation was published on 30 June, setting out the expected impacts of this measure on different types of businesses.

We have engaged with steel producers and downstream industries and will continue to do so as the measure is implemented. We will continue to monitor the measure and review it after 12 months.

The Government is undertaking an extensive programme of engagement around implementation of the Employment Rights Act and the broader Plan to Make Work Pay. The Government has committed to delivering employment rights changes in partnership with businesses, trade unions, public sector employers, and civil society.

The reforms are being delivered in phases so that employees and employers have time to plan and prepare.

We will continue working alongside Acas to provide support and guidance to help businesses to get ready, and will continue to consult with businesses, trade unions and civil society to make sure we get the detail right.

The review has been completed and Government is considering its findings. We will publish the review and set out our plans soon.

The Government is introducing a UK Carbon Border Adjustment Mechanism (CBAM) from 1 January 2027 to ensure imported carbon-intensive goods face a carbon price comparable to that paid by UK producers under the UK Emissions Trading Scheme. The CBAM will apply to imports of iron and steel and is designed to address carbon leakage. Alongside this, the UK ETS Authority has consulted on the treatment of free allocations for CBAM-covered sectors to ensure a managed transition while maintaining carbon leakage protection for UK manufacturers.

The Department for Business and Trade intends to conduct a review of the British Industry Supercharger this year, which will include a review of eligibility criteria. However, any changes to eligibility criteria, or other parts of the policy, are subject to public consultation and ministerial approval. All stakeholders, including those in the steel and scrap metal sectors, are encouraged to engage with this review when the opportunity arises and present all relevant evidence.

The statement was withdrawn because it had been submitted under a previous administration in 2023. In 2024, the new administration wished to consider its position on these issues.

The ICJ has now held that the right to strike is protected under International Labour Organization (ILO) Convention 87 (Freedom of Association and Protection of the Right to Organise).

Given that the written statement was withdrawn, superseded by oral arguments and the ICJ has rendered its advisory opinion, the government has no current plans to publish the withdrawn statement.

The Department for Business and Trade (DBT) can confirm that it has incurred no expenditure on branded goods and events.

The Department recognises that increasing the number of women angel investors is key to improving access to finance for female-led businesses. Evidence from the DBT-backed Investing in Women Code report shows that more diverse angel groups make a larger proportion of their investments into women founders.

Through the British Business Bank, the Government is supporting more diverse angel investment. This Diverse Angels Syndicate programme will support angel syndicates to recruit, train, and invest inclusively. The Regional Angels Programme addresses regional funding gaps and attracts co-investments; its pilot engaged 185 new angel investors, of whom 176 were women.

While the Department has not made an estimate of the economic contribution of female-led businesses to UK gross value added (GVA), independent research demonstrates the significant contribution that women-led businesses make to the UK economy.

The Alison Rose Review of Female Entrepreneurship (2019) estimated that up to £250 billion of new value could be added to the UK economy if women started and scaled businesses at the same rate as men. Frontier Economics has since estimated that achieving gender parity in entrepreneurship could increase cumulative UK GVA by €825 billion (£718 billion) by 2040.

The Department does not plan to publish annual monitoring reports on the economic impact of the British Growth Partnership (BGP). Instead, the British Business Bank will report the value of its stake in BGP through its public annual reporting and has commissioned an independent evaluation of BGP. An initial assessment, focusing on process and early delivery outcomes, is expected in 2027. An interim economic evaluation is expected to begin in late 2028, once sufficient time has passed for BGP’s outcomes and impacts to emerge.

HMRC is responsible for enforcing the ban on imports of oil products refined in third countries from Russian-origin crude oil and investigating suspected offences.

HMRC uses a variety of proven methods to detect sanctions breaches, including: risk and intelligence-based checks on goods imported to the UK, auditing businesses involved in the trade of goods subject to sanctions; and collecting actionable intelligence from domestic and international law enforcement partners and the intelligence community.

Importers of diesel and jet fuel may be requested to present evidence of a good's supply chain. In some cases, HMRC officials may require the production of further information relating to the goods.