Alun Cairns

The Department for Digital, Culture, Media and Sport (DCMS) is the lead department for telecommunications policy, including the security and resilience of telecommunications subsea cables. DCMS works closely with operators, regulators and others to assess risks and ensure that the appropriate mitigation measures are in place.

The Integrated Review 2021 acknowledged that the Royal Navy will remain active in the UK’s territorial sea and Exclusive Economic Zone, including by investing in new capabilities to protect undersea critical national infrastructure - including subsea telecommunications cables.

The Government welcomes the Investment Association’s commitment to review and update its Principles of Remuneration later this year, and its stated objectives to simplify the Principles and ensure that they help support a competitive UK listing environment alongside promoting the right outcomes for shareholders.

Share awards can provide an important recruitment incentive and help align employee interests with those of the company. UK company law permits the allotment of shares for employee share schemes without applying the pre-emption provisions that otherwise require newly issued shares to be offered to existing shareholders first to avoid equity dilution. The Financial Conduct Authority’s Listing Rules require shareholder approval of employee share schemes while allowing companies in unusual circumstances to allot shares to retain or recruit a director without such prior approval.

The Government's Critical Minerals Strategy and Critical Minerals Refresh, published in March this year, set out steps to improve the supply chain resilience of critical minerals in the UK. We are collaborating with our international partners to create a resilient and diverse global critical minerals supply chain, including for silicon metal which was one of the cohort of minerals identified by the British Geological Survey last year as having high criticality for the UK.

The UK recognises Brazil as a key player in critical minerals, producing 11% of the world’s silicon metal and 84% of the world’s niobium.

The Government welcomed and noted the Commission’s report, which made recommendations on a UK carbon border adjustment mechanism (CBAM) and the UK Emissions Trading Scheme (UK ETS). In December 2023, the Government announced that it would implement a CBAM by 2027 and consult further on this in 2024.

In December 2023, the UK ETS Authority launched consultations on the approach to both free allocation and market policy, seeking views on how the Authority can best target support to industrial sectors at risk of carbon leakage and on market stability mechanisms, including the design of the cost containment mechanism.

The UK ETS Authority is committed to protect our industry, including those in Wales, from carbon leakage as our economy decarbonises which is why we give free allocations to businesses at risk of carbon leakage under the UK ETS.

We have guaranteed free allocations at current levels until 2026 and are now consulting on changes to better target free allocations at sectors most at risk of carbon leakage from 2026 whilst maintaining their decarbonisation incentive.

A Carbon Border Adjustment Mechanism will also be introduced by 2027 and will work cohesively with the UK ETS to mitigate the risk of carbon leakage.

It has not proved possible to respond to my Rt hon. Friend in the time available before Prorogation.

It has not proved possible to respond to my Rt hon. Friend in the time available before Prorogation.

The Department does not validate energy production estimates by wind farm developers.

Where generation is supported through Government mechanisms such as the Contract for Difference or Renewable Obligation schemes, measures are in place to ensure payments are based on actual generation, rather than estimates.

I refer the Honourable Member to the answer given in response to PQ4875.

My department will continue to monitor developments in the use of both financial and non-financial applications of blockchain technology and will work with other government departments and industry to ensure we maximise its potential to spur UK growth and innovation.

The Government is committed to creating a regulatory environment in which firms can innovate, while maintaining financial stability and clear regulatory standards so that people can use new blockchain technologies both reliably and safely.

Cryptoasset markets, for example, continue to develop with increasing pace and complexity, which brings risk as well as opportunity. Risk-taking is a part of the innovation cycle, however ongoing turbulence in the cryptoasset markets has highlighted some of the implications for markets and investors. We think this reinforces the case for clear, effective, timely regulation. The Government is therefore proposing to bring a broad suite of new cryptoasset activities into the regulatory perimeter for financial services for the first time. This includes exchange activities, custody and lending.

HM Treasury launched a consultation on the Future Financial Services Regulatory Regime for Cryptoassets in February and published its response to stakeholder feedback and final proposals on 30 October. The consultation delivers on the Government’s commitment to bring forward proposals for regulating activities relating to the trading and investment of cryptoassets, such as Bitcoin.

The Government has already taken action to address risks to consumers and market integrity in cryptoasset markets. Cryptoassets were brought into scope of UK anti-money laundering legislation in 2020, and following the government’s legislation, the financial regulator has commenced enforcement for cryptoassets financial promotions, requiring them to be fair, clear and not misleading.

More broadly, my department will continue to monitor developments in the use of blockchain technology and will work with other government departments to identify where this could require the introduction of further regulation.

This Government is committed to maximising the benefits and minimising the risks of new technologies. The Government has committed to increasing public expenditure on R&D to £20 billion per annum by 2024/2025. This cash increase will support the growth of innovator hubs and continue to fund a range of R&D programmes which will help boost the potential of new technologies including blockchain.

My department will continue to monitor the development of distributed ledger technology to ensure we maximise its potential to spur UK growth and innovation.

It is important that industry voices are actively engaged in the discourse around responsible AI. British based companies, like Deepmind, are at the forefront of responsible innovation. However, it should be noted that questions have been raised regarding the veracity of some of the signatures of the open letter on Artificial Intelligence published by the Future of Life Institute (FLI). Some of the researchers whose work was cited in the letter have also apparently raised concerns. It is also important to note that the letter is not expressly targeted towards the UK or any other government.

Government recognises the need to act to adapt the way in which we regulate AI as systems become more powerful, and are put to different use. As Sir Patrick Vallance highlighted in his regulatory review, there is a small window of opportunity to get this right and build a regulatory regime that enables innovation while addressing the risks. Government agrees that a collaborative approach is fundamental to addressing AI risk and supporting responsible AI development and use for the benefit of society. The AI regulation white paper we published on 29 March identifies “trustworthy”, “proportionate” and “collaborative” as key characteristics of the proposed AI regulation framework.

The AI regulation white paper sets out principles for the responsible development of AI in the UK. These principles such as safety, fairness, and accountability are at the very heart of our approach to ensuring the responsible development and use of AI. We will also establish a central risk function to bring together cutting-edge knowledge from industry, regulators, academia and civil society – including skilled computer scientists with a deep technical understanding of AI – to monitor future risks and adapt our approach if necessary. This is aligned with the calls to action in FLI’s letter.

In addition, our Foundation Model Taskforce has been established to strengthen UK capability – in a way that is aligned with the UK’s values – as this potentially transformative technology develops.

The approach to AI regulation outlined in the AI regulation White Paper is also complemented by parallel work on AI Standards, supported by the AI Standards Hub launched in October 2022, and via the Centre for Data Ethics and Innvovation’s AI Assurance Roadmap, published in December 2021. In concert, our holistic approach to AI governance combining regulation with an approach to standards development and AI assurance is in line with efforts to develop shared safety protocols, and will at the same time allow the UK to benefit from AI technologies while protecting people and our fundamental values.

The Government is taking a number of steps to support responsible research and promote ethical practices in the AI industry. The AI Regulation White Paper sets out 5 cross-sector principles which will guide and inform the responsible development of AI. In addition, this Government has allocated £2 million for the development of regulatory sandboxes for businesses to make it easier for them to navigate the regulatory landscape so they can bring innovative products to market whilst doing so in line with our principles. The consultation closed on 21 June and the Government will provide a response in due course.

£8.5 million funding has been made available via the Arts and Humanities Research Council in June 2022 June for ‘Enabling a Responsible AI Ecosystem’, the first major academic research programme on AI ethics and regulation of this scale. This is complemented by the £117 million investment secured this year for new UKRI Centres for Doctoral Training – on top of £100 million for existing Centres funded in 2019 – which include ethics and social responsibility courses for the PhD candidates they train.

Announced in April this year, the Government is also establishing a Foundation Model Taskforce with £100 million start-up funding to ensure sovereign capabilities and broad adoption of safe and reliable foundation models. The Taskforce will focus on opportunities to establish the UK as a world leader in foundation models and their applications across the economy, and acting as a global standard bearer for AI safety.

The Government remains committed to making the UK the leading provider of commercial small satellite launch in Europe by 2030, with all the necessary infrastructure and regulations now in place to support this. £50 million has been provided to grow new UK markets for small satellite launch and sub-orbital spaceflight, with £31.5 million helping to establish vertical launch services in Scotland. This includes supporting Orbex to launch from Sutherland and Lockheed Martin to launch from the Shetland Islands. Both launches are expected to take place in 2024, with other spaceports in development across Scotland and in Wales.

The UK Space Agency is now developing the next phase of the UK Spaceflight Programme, subject to HM Treasury approval. In addition, the UK invested £12 million into the next phase of the European Space Agency’s Boost programme at the ESA Council of Ministers 2022, aimed at providing tailored support to national launch companies and related infrastructure.

The Government has a long record of supporting the UK satellite manufacturing sector, and the UK space sector now excels in satellite manufacture, which includes some of world’s leading small satellite companies such as SSTL and AAC Clydespace.

Through our £1.8 billion investment in ESA programmes and £1 billion via UK agency this CSR, the Government continues to support R&D work with these and many other companies such as OpenCosmos, Alba Orbital, InSpace Missions, Orbital Astronautics and Space Forge which are developing innovative nano and microsats. The Government further supports the sector through regulatory leadership in small satellite insurance, finance and licensing as part of our aim to become the leading provider of commercial small satellite launch in Europe by 2030. Significant commercial opportunities such as the OneWeb second generation constellation offer potential to further strengthen the UK’s small satellite sector.

The Government is committed to growing and levelling up the UK space ecosystem. Since 2014, the UK Space Agency has invested over £7 million through its national and European Space Agency programmes to support space companies in Wales develop new and innovative technologies, including Space Forge who have built Wales’s first satellite. In addition, the Agency also invests significantly in academic R&D institutions in Wales, which stimulate and enable industry spin-out companies and applications in other sectors. This includes the £16.5 million investment in the Cardiff University-led SPIRE instrument aboard the ESA science observatory mission Herschel and up to £2.5 million planned funding in the Ariel mission, as part of the £30 million package announced last year.

The Government has announced the Non-Domestic Alternative Fuel Payment Scheme, which will provide off-grid businesses and non-domestic consumers using alternative fuels in Great Britain and Northern Ireland with a one-off fixed payment of £150 through electricity suppliers. In addition to the £150, a top up payment will be available for large users of heating oil (kerosene) to take account of their higher usage. These top-up payments will require an application to a delivery body and will be banded based on level of usage.

Non-domestic consumers off the gas grid will receive a one-off fixed payment of £150 through electricity suppliers in Great Britain and Northern Ireland. A top-up payment in addition to the £150 will be available for large users of heating oil (kerosene) in GB and NI to take account of their higher usage. These top-up payments will require an application to a delivery body and will be banded based on level of usage.

Preparations are being made to launch the process to appoint a new Chairman of S4C and the role will be advertised in due course. This will be a fair and open process, run in accordance with the Governance Code on Public Appointments.

An interim appointment will be announced in due course, following consultation with the S4C board and the Welsh Government. He or she will fulfil the role from 1 April, when Mr Williams steps down, until a new permanent Chairman is appointed. This is consistent with the S4C Board’s standing orders.

The Government is making good progress to create an enabling framework of standards, legislation and governance to support a secure and trusted digital identity marketplace in the UK, working closely with a wide variety of stakeholders so that the framework meets the needs of different users.

Since 2020, we have published a prototype (alpha) UK Digital Identity and Attributes Trust Framework and completed a pre-legislative consultation. We plan to publish a beta version of the Trust Framework in the summer and will introduce primary legislation on digital identity into Parliament during the current session as part of the data reform bill. We have no plans to make digital identities compulsory but, as more transactions take place online, we want to offer people the choice to prove their identity digitally where and when it suits them, securely, easily and with confidence.

The Government is making good progress to create an enabling framework of standards, legislation and governance to support a secure and trusted digital identity marketplace in the UK, working closely with a wide variety of stakeholders so that the framework meets the needs of different users.

Since 2020, we have published a prototype (alpha) UK Digital Identity and Attributes Trust Framework and completed a pre-legislative consultation. We plan to publish a beta version of the Trust Framework in the summer and will introduce primary legislation on digital identity into Parliament during the current session as part of the data reform bill. We have no plans to make digital identities compulsory but, as more transactions take place online, we want to offer people the choice to prove their identity digitally where and when it suits them, securely, easily and with confidence.

We recently consulted on whether changes to the Electronic Communications Code were necessary in order to support the deployment of digital infrastructure, including 5G. The responses to that consultation are currently being considered and a consultation response will be published in due course. We have confirmed our intention to legislate in this Parliamentary session and will bring forward legislative proposals as soon as parliamentary time allows.

We want as many young people as possible to benefit from T Levels, the new gold standard in technical education. In January this year we launched our ‘Get the Jump’ campaign, which helps 14-19 year olds explore their education and training options, and spotlights T Levels, Apprenticeships, Traineeships and Higher Technical Qualifications in particular. We are working closely with the Careers and Enterprise Company, Apprenticeship Support and Knowledge programme, Academy Trusts and other representative bodies to ensure that teachers and careers leaders have the information and resources they need to communicate the benefits of T Levels to their students. In addition, this August will see the first T Levels results day and there are a number of activities planned to celebrate and promote the achievements of the first cohort of T Level students, both regionally and around social media to signpost students to the dedicated T Levels website.

Our ‘Join the Skills Revolution’ campaign promotes government’s training and employment schemes, including T Levels, to employers. We are also engaging directly with employers to raise awareness of T Levels and promote industry placements, and we have established a T Level employer ambassador network so that employers can promote T Levels within their industry networks.

Both campaigns make use of a wide range of channels, including use of social media to get through to young people, parents and employers.

The Government intends to publish a Biomass Strategy later this year, which will review the amount of sustainable biomass, including perennial energy crops and short rotation forestry, available to the UK. The Strategy will examine how biomass could be best used across the economy to help achieve the Government’s net zero and wider environmental commitments, while also supporting energy security.

The Government announced £36 million of funding for the Biomass Feedstocks Innovation programme, funded through the £1 billion Net Zero Innovation Portfolio. The Programme aims to increase the production of sustainable biomass feedstocks in the UK by funding innovative ideas that address barriers to biomass feedstock production. The knowledge developed from these projects will help to inform future policy on domestic biomass.

This deal will support jobs and drive growth by cutting tariffs on key UK exports like food (up to around 20% on cheese) bringing huge benefits to the UK’s agri-food sector.

Wales’ food and drink sector exported £10m to Australia last year in goods and could benefit from the removal of tariffs and non-tariff barriers.

DIT recognises the export potential of UK manufactured small modular reactors and we are providing support to industry in several countries to facilitate market entry and position them for success ahead of first production. We are also in discussions with industry about developing a more strategic “Whole of Government” approach to support overseas sales.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is an ambitious regional trade agreement covering 11 countries across four continents.

Joining would provide us with the opportunity to deepen our trading links with some of the world’s most diverse, growing economies, and will allow us to expand our influence in the world and strengthen the rules-based international system.

No doubt CPTPP countries will be a valuable market for Aston Martin’s new DBX SUVs, which will be exported from the factory in my Rt Hon Friend for Vale of Glamorgan's constituency.

Over the last five years the UK has consolidated stronger trade and investment partnerships with African countries, supporting businesses to enter and expand across African markets, and deepening our bilateral engagement to open new trade and investment opportunities.

Over this time the UK has offered almost all African countries preferential access to its markets as beneficiaries of the European Union’s unilateral trade preferences scheme or as parties to trade agreements with the EU. There are 44 African countries that receive duty-free quota-free access to the UK under EU arrangements that also offer preferential access to a further eight African countries.

As we leave the EU, we have sought to replicate the effects of EU trade arrangements and have secured trade continuity with 46 African countries.

The UK’s trade flows with each African country are published by the Office for National Statistics.

The Government paper “Connected & Automated Mobility 2025: realising the benefits of self-driving vehicles in the UK” sets out the Government’s plans to support the development and deployment of safe self-driving vehicles in the UK. This includes proposals for a comprehensive regulatory, legislative and safety framework. The Department remains committed to these plans will bring forward primary legislation as soon as parliamentary time allows.

Alongside developing legal and regulatory frameworks, the government has committed £100 million of new Research and Development funding following the Government’s Spending Review for the period 2022/23 to 2024/25, which is allocated to the Centre for Connected and Autonomous Vehicles (CCAV) through two Departments:

1. £66 million in the Department for Business and Trade to support commercial deployment of connected and self-driving technologies.
2. £34 million in the Department for Transport (DfT) for creation of a safety assurance framework for self-driving vehicles.

The Government paper “Connected & Automated Mobility 2025: realising the benefits of self-driving vehicles in the UK” sets out the Government’s plans to support the development and deployment of safe self-driving vehicles in the UK. This includes proposals for a comprehensive regulatory, legislative and safety framework. The Department remains committed to these plans will bring forward primary legislation as soon as parliamentary time allows.

Alongside developing legal and regulatory frameworks, the government has committed £100 million of new Research and Development funding following the Government’s Spending Review for the period 2022/23 to 2024/25, which is allocated to the Centre for Connected and Autonomous Vehicles (CCAV) through two Departments:

1. £66 million in the Department for Business and Trade to support commercial deployment of connected and self-driving technologies.
2. £34 million in the Department for Transport (DfT) for creation of a safety assurance framework for self-driving vehicles.

The location of new stations must satisfy safety regulations and performance and not be located on gradients greater than 1 in 500. Network Rail holds gradient information for each station built in the last 10 years.

The Department has in place a comprehensive monitoring and evaluation programme for the trials. The interim report should be published shortly, and we expect to publish the final report in spring 2022.

Officials have been in regular contact with the National Police Chiefs’ Council who are developing a national strategy for tacking the illegal use of e-scooters (both private use and illegal use in trial areas – pavement and twin riding) to ensure a more uniform approach, but it is not our intention to provide guidance to the police. Enforcement of offences relating to unlawful use of e-scooters is an operational matter for individual Chief Officers of police in conjunction with local policing plans.

Officials have also been in contact with their counterparts at the Home Office to provide briefing for Ministers on the e-scooter trials.

The Department has in place a comprehensive monitoring and evaluation programme for the trials. The interim report should be published shortly, and we expect to publish the final report in spring 2022.

Officials have been in regular contact with the National Police Chiefs’ Council who are developing a national strategy for tacking the illegal use of e-scooters (both private use and illegal use in trial areas – pavement and twin riding) to ensure a more uniform approach, but it is not our intention to provide guidance to the police. Enforcement of offences relating to unlawful use of e-scooters is an operational matter for individual Chief Officers of police in conjunction with local policing plans.

Officials have also been in contact with their counterparts at the Home Office to provide briefing for Ministers on the e-scooter trials.