Written Statements

Thursday 24th March 2016 Written Statements

Thursday 24 March 2016

Help to Grow

Thursday 24th March 2016 Written Statements

[The Minister for Small Business, Industry and Enterprise (Anna Soubry)]

The help to grow (“H2G”) pilot programme was announced by the Prime Minister in February 2015. Drawing on research undertaken by the British Business Bank (“BBB”), Government committed to address an identified finance gap for fast growing, innovative SMEs by using the Government’s balance sheet to guarantee loans by private lenders and by co-investing public money alongside private money to bring new lenders to the market. These SMEs are vital to the UK economy and are major drivers of employment and wealth for the country. Ensuring they have access to the right type of finance at the right time is essential to ensure they maximise their growth potential.

Following the pilot announcement and extensive market engagement, BBB has developed three products to test in tackling the identified gap. These are two guarantee products and an option for co-investment in funds. The first contract with a delivery partner will be exchanged shortly. The pilot is expected to last two years and anticipates supporting in the region of £200 million total new lending under H2G. The pilot will be evaluating the appropriateness of the design of the three lending products within H2G alongside lenders’ ability to successfully originate eligible H2G loans.

H2G will support SMEs seeking growth investment between £0.5 million to £2 million for developing new products, processes or services, research and innovation, and expansion into new markets.

The two guarantee products being piloted will give rise to a contingent liability which under managing public money principles require notifying to both Houses. These liabilities will arise when beneficiary SME’s default on their loan repayments and the delivery partner is unable to recover the capital despite reasonable commercial steps being taken to pursue the debt. A departmental minute has been laid concurrently in both Houses which provides further detail on these liabilities.

Subject to the findings of the pilot programme, the intention will be to roll H2G out further in order to ensure innovative, ambitious and growing UK SME’s can continue to be able to access this vital funding.

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Elections: Conduct Guidance

Thursday 24th March 2016 Written Statements

[The Minister for the Cabinet Office and Paymaster General (Matthew Hancock)]

As is normal, ahead of the forthcoming elections, guidance has today been issued for civil servants in UK Government Departments and those working in arm’s length bodies on the principles that they should observe in relation to the conduct of Government business in the run up to the forthcoming elections on 5 May 2016 to the Scottish Parliament; the National Assembly for Wales; the Northern Ireland Assembly; to some local authorities in England, including for the directly elected Mayors of London, Bristol, Liverpool and Salford; and for police and crime commissioners in England and Wales.

The guidance sets out the need to maintain the political impartiality of the civil service, and the need to ensure that public resources are not used for party political purposes during this period. The period of sensitivity preceding the local, mayoral and police and crime commissioner elections starts on 14 April, and in relation to the devolved Administrations from 24 March for the elections to the Scottish Parliament; 30 March for the Northern Ireland Assembly; and 6 April for the National Assembly for Wales.

Copies of the guidance have been placed in the Libraries of both Houses and on the Cabinet Office website at: https://www.gov.uk/government/publications/election-guidance-for-civil-servants

Attachments can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-03-24/HCWS652/

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Cyber-Security

Thursday 24th March 2016 Written Statements

[The Minister for the Cabinet Office and Paymaster General (Matthew Hancock)]

In the 2015 Strategic Defence and Security Review the Government confirmed that we would invest £1.9 billion over the next five years in protecting the UK from cyber-attack and developing our sovereign capabilities in cyber space, including by creating a national cyber centre.

The new National Cyber Security Centre (NCSC) will open in October 2016. As part of GCHQ, the NCSC will bring together a number of cyber security functions from across Government. It is intended that the current functions of CERT-UK, currently part of the Cabinet Office, will move into the NCSC. Detailed design work is underway on implementing the NCSC, and I will update the House further in due course.

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Contingencies Fund Advance: UK Government Investments Ltd

Thursday 24th March 2016 Written Statements

[The Economic Secretary to the Treasury (Harriett Baldwin)]

In May 2015 the Chancellor announced that the Shareholder Executive (ShEx) and UK Financial Investments (UKFI) were to be brought together under a single holding company, UK Government Investments (UKGI). UKGI was incorporated on 11 September 2015 and will commence operations from 1 April 2016.

The resources and cash to finance UKGI’s spending will form part of HM Treasury’s main estimate for 2016-17. Parliamentary authority enabling UKGI to be funded is included in the Enterprise Bill which is currently before Parliament but is yet to receive Royal Assent.

Parliamentary approval for resources of £12,100,000 for this new service will be sought in the main estimate for HM Treasury. Pending that approval, urgent expenditure estimated at £2,400,000 will be met by repayable cash advances from the Contingencies Fund.

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ECOFIN

Thursday 24th March 2016 Written Statements

[The Financial Secretary to the Treasury (Mr David Gauke)]

A meeting of the Economic and Financial Affairs Council was held in Brussels on 8 March 2016. EU Finance Ministers discussed the following items:

Mandatory automatic exchange of information in the field of taxation

The Council held a discussion on a presidency compromise text on the Commission’s proposal to amend the directive with regards to the mandatory exchange of information in the field of taxation as part of the EU taking forward the recommendations from the OECD.

Current legislative proposals

The presidency gave an update to the Council on the state of play of financial services dossiers.

State of play of the banking union

The Commission provided an update on several dossiers linked to the banking union: the single resolution fund, the bank recovery and resolution directive and the deposit guarantee scheme directive. The presidency also provided a short update on progress to establish a European deposit insurance scheme, which the UK is not participating in.

Fiscal sustainability report 2015

Ministers adopted conclusions outlining the Council’s position on the Commission’s fiscal sustainability report.

Follow-up to the G20 Meeting of Finance Ministers and Central Bank Governors on 26-27 February 2016

Following the first G20 of the Chinese presidency in Shanghai on 26-27 February, the Commission and the ECOFIN chair debriefed Ministers on discussions.

European semester 2016: implementation of country-specific recommendations drawing on the country reports and in-depth reviews

The Commission reported to ECOFIN on the implementation of 2015 country-specific recommendations with a particular focus on removing the barriers to investment, following the publication of the country reports, published 26 February.

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Financial Services Update

Thursday 24th March 2016 Written Statements

[The Economic Secretary to the Treasury (Harriett Baldwin)]

I can today confirm that I have laid a Treasury Minute informing the House of a reduction in HM Treasury’s contingent liabilities to Bradford & Bingley.

The Treasury Minute concerns the guarantee arrangements announced on 29 September 2008 that put in place arrangements in relation to wholesale borrowings and deposits. At March 2015 the maximum contingent liability to HM Treasury on this guarantee arrangement was £2.4 billion.

I can confirm that, following the repurchase of two outstanding Bradford & Bingley covered bonds, the maximum exposure to HM Treasury under this guarantee arrangement has fallen to around £1.5 billion.

If the remaining liability is called, provision for any payment will be sought through the normal supply procedure.

I will update the House of any further changes to Bradford & Bingley associated guarantee arrangements as necessary.

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National Reform Programme

Thursday 24th March 2016 Written Statements

[The Financial Secretary to the Treasury (Mr David Gauke)]

On 24 March, the Government published the UK 2016 national reform programme. The document was sent to the European Commission, as part of the European semester.

National Reform Programme

Under Council recommendation 2010/410 of 13 July 2010, member states send national reform programmes each year, which report to the Commission on their structural reforms and plans.

The UK 2016 national reform programme reports on actions taken by the UK as a whole, including by the Government and by the devolved Administrations where policy responses are of a devolved competence.

The 2016 national reform programme:

puts the UK’s structural reforms in the context of deficit reduction, the 2015 autumn statement and Budget 2014

reports on the broad macroeconomic context

reports on policies to tackle the three country-specific recommendations addressed to the UK by the June 2015 European Council: correcting the deficit, boosting housing supply, and addressing skills mismatches and improving the availability of childcare

sets out the UK’s approach to national monitoring, in line with the five headline Europe 2020 targets agreed by the European Council in June 2010.

The national reform programme is based heavily on the announcements and forecasts of Budget 2016 and the autumn statement and spending review 2015. It is, furthermore, drawn entirely from information already in the public domain.

A copy of the document has been deposited in the House of Commons Library and is available on the Treasury website.

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Coastal Communities Fund

Thursday 24th March 2016 Written Statements

[The Minister for Communities and Resilience (Mr Mark Francois)]

I am pleased to announce today the publication of the “Coastal Communities Fund Annual Progress Report 2015”.

The report sets out the impressive achievements of the fund across the UK since it was launched in 2012. It shows the many and varied ways our coastal and seaside towns are rising to the challenges they face to diversify and transform their economies, and strengthen their appeal as places to live, work and visit.

Over 200 projects supported by the fund UK-wide have received £120 million to date and are also attracting significant amounts of co-funding, over £200 million so far. As the report highlights, every £1 we invest has the potential to create a boost of up to £8 to our coastal economies.

The recent decision to extend the fund by a further £90 million over four years to 2020-21 will help secure the long-term future of our seaside towns so that communities can drive forward their vision, unleash business opportunities and prosperity. The next round of bidding will commence in the summer of 2016.

I have today written to all coastal MPs in the UK, and to all 118 coastal community teams in England, with a web link to the published report.

The report can be found on the gov.uk website at: https://www.gov.uk/government/publications/coastal-communities-fund-annual-progress-report-2015

I have placed a copy in the Library of the House.

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Defence Estate Rationalisation

Thursday 24th March 2016 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Mark Lancaster)]

The Ministry of Defence (MOD) is currently developing an ambitious programme of estate rationalisation which will provide a plan for a smaller, but significantly better defence estate to meet the needs of the armed forces as set out in the strategic defence and security review 2015. This strategic review of the defence estate will provide a more efficient and better infrastructure laydown in support of military capability for future generations. The MOD expects to announce the final results of this review in the autumn of 2016 but can today confirm the expected release of 10 sites, shown in the table below. The release of these sites supports the generation of £1 billion through land sales and, in part, supports the contribution of up to 55,000 homes to support wider Government targets within this Parliament.

These sites also contribute to the Government commitment to provide land for 160,000 homes to be built in this Parliament. The intent to dispose of these 10 sites is estimated to provide some £140 million in land sales receipts and land to provide up to 7,000 homes —of which 6,000 is expected in this Parliament—in addition to the land for up to 15,000 homes announced on 18 January 2016.

The Department seeks to provide a future basing structure for the defence estate across the UK. It aims to better support military capability and force generation; allow the formation of clusters of sites which facilitate the collocation of similar functions and thereby reduce running costs through shared resources; as well as dispose of under-utilised sites for which there is no longer a long-term defence requirement.

I acknowledge that these moves will have an impact upon civilian and military staff. Over the coming months further work, carried put in consultation with all stakeholders including staff associations and the families federations, will determine the future provision for the occupants of these sites. Details on the sequencing and timing of these moves will be established this autumn. The MOD will continue to engage with impacted local authorities to determine how the Department’s assessment of housing unit allocation against each site may be considered as part of the authority’s local plan. I will make a further announcement later this year.

List of Defence sites for potential disposal

Condition Improvement Fund

Thursday 24th March 2016 Written Statements

[The Parliamentary Under-Secretary of State for Education (Mr Sam Gyimah)]

Today I am announcing the outcome of the Condition Improvement Fund 2016-17, which provides funding for the improvement and expansion of existing academy and sixth-form college buildings.

I am announcing funding of £435 million for 1,276 projects across 1,030 academies and sixth-form colleges, which will help to ensure that children across the country have access to world class schools. Ensuring that there is a good local school place for every child, and that all children are being taught in safe and fit for purpose school buildings which help unlock their full potential, is of highest importance to this Government.

The Government announced at the spending review in November that they are investing £23 billion in schools infrastructure between 2016 and 2021. This money will support the opening of 500 free schools, the provision of over 600,000 additional school places, the rebuild and refurbishment of schools and will address essential school maintenance needs. In addition to the funding for expansion of good and outstanding academies and colleges that we are announcing today, we are also making over £200 million capital funding available to support the expansion of special education needs provision and the creation of new special schools. We will say more about how this will be distributed later this year.

We know that being taught in school buildings that are in poor condition can have an adverse effect on pupils and staff and that is why we are continuing to invest in improving our estate. Today’s announcement follows on from the announcement in February of the allocation of £200 million of devolved formula capital to schools and the school condition allocations to local authorities, voluntary aided schools and larger multi-academy trusts.

Details of today’s announcement are being sent to all applicants and a list of successful projects will be published on www.gov.uk. Copies will be placed in the Library of the House. We will look for opportunities to fund further high scoring applications from this year’s bidding round should additional funding become available.

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National Reference Test

Thursday 24th March 2016 Written Statements

[The Minister for Schools (Mr Nick Gibb)]

Today, the Government are publishing their response to their public consultation¹ on the introduction of new secondary legislation to require selected schools to take part in the national reference test (NRT).

The NRT is a further step in the Government’s reform agenda, which will deliver robust and rigorous qualifications for England’s students. Before 2010, pupils received successively higher grades at GCSE each year, but in international league tables England’s performance stagnated. Ofqual has halted this grade inflation through the use of comparable outcomes².

Ofqual is introducing the NRT which will indicate if GCSE results should change from year to year. Over time, this will provide an additional method of measuring real changes in national performance at GCSE which is distinct from the use of international comparisons such as the PISA study.

The National Reference Test

Each year, a different sample of 300 secondary schools, both in the state and independent sectors, will be selected to take part. Random samples of pupils from each selected school will take a test lasting about an hour. About 30 pupils from each school will take the English language test and another 30 will take the mathematics test. Ofqual will publish information about overall test performance each summer when GCSE results are announced. The results will not be used for school accountability purposes and results will not be given to individual pupils. Instead, the NRT will provide Ofqual with additional evidence on year-on-year changes in performance.

Participation in the test will benefit both schools and pupils, as it will help to provide more direct evidence of improving school performance at the national level which can be reflected in the grades that are awarded at GCSE, ensuring higher attaining cohorts are rewarded.

The legislation will apply to maintained schools. It will also apply to most academies and free schools through an existing provision in their funding agreements requiring them to comply with guidance issued by the Secretary of State in relation to assessments. It will not apply to independent schools although pupils at independent schools will also be asked to take the test to ensure that the sample of pupils that take the test is nationally representative.

The consultation

The public consultation, which ran from 30 November 2015 until 22 January 2016 allowed teachers, parents, pupils, and all those with an interest to provide their views, which have been taken into account in preparing the final legislation. Having carefully considered the small number of responses received, the Government have decided to proceed with enacting the proposed secondary legislation. It is important that the sample of pupils taking the test each year is fully representative and therefore it is appropriate that it should be mandatory for selected schools to take part. The legislation will come into force on 1 September 2016 and the first full NRT will take place in March 2017.

¹ https://www.gov.uk/government/consultations/ national-reference-test-implementation-arrangements

² For further information, see: https://ofqual.blog.gov.uk/2015/08/05/gcse-marking-and-grading/

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Foreign Affairs Council and General Affairs Council

Thursday 24th March 2016 Written Statements

[The Minister for Europe (Mr David Lidington)]

My right hon. Friend the Secretary of State for Foreign and Commonwealth Affairs attended the Foreign Affairs Council on 14 March and I attended the General Affairs Council on 15 March. The Foreign Affairs Council was chaired by the High Representative of the European Union for Foreign Affairs and Security Policy, Federica Mogherini, and the General Affairs Council was chaired by the Dutch presidency. The meetings were held in Brussels.

Foreign Affairs Council

A provisional report of the meeting and Conclusions adopted can be found at:

http://www.consilium.europa.eu/en/meetings/fac/2016/03/14.

In her introductory remarks Ms Mogherini briefed Foreign Ministers on her recent visits to Cuba and Argentina, the EU role on the International Syria Support Group and on external aspects of the migration crisis.

Russia

The Council took stock of EU-Russia relations, in a discussion which took place shortly before the announcement of the partial withdrawal of Russian forces from Syria.

As part of the discussion, Ms Mogherini proposed five guiding principles for the EU’s policy towards Russia:

full implementation of the Minsk agreements as a key element for any substantial change;

strengthening relations with eastern partners and other neighbours, including central Asia;

strengthening the EU’s resilience;

selective engagement where there is a clear EU interest to engage; and

strengthening people-to-people contacts and support to civil society.

Ministers supported the guiding principles. The Foreign Secretary argued for a united EU position. It was not in our interests to isolate Russia, but sanctions remained necessary and effective: and this was not the time to change tack. The Foreign Secretary added the EU should continue to hold Russia to account when it violated international norms.

Iran

The Council discussed relations with Iran and possible areas of re-engagement following the adoption of the joint comprehensive plan of action and the lifting of all nuclear-related EU sanctions. Ms Mogherini briefed Ministers on her planned trip to Tehran in April, where she will be accompanied by a delegation of commissioners, which will explore different areas of co-operation with Iran. The Foreign Secretary made clear that, while much progress has been made, we continued to have concerns (for example in relation to Iran’s human rights record) and that it was important to pursue a careful and balanced approach to reengagement.

Libya

Over lunch, Foreign Ministers exchanged views with the United Nations Secretary General’s special representative for Libya, Martin Kobler, on recent developments in Libya.

Middle East Peace Process

The Council discussed the latest developments in the region including an update from Ms Mogherini on plans by the middle east Quartet to prepare a report with recommendations for de-escalating the violence and promoting a two-state solution. The Council also discussed an initiative led by France to convene an international conference in Paris by the summer of 2016 with the aim relaunching the peace process in the middle east. Ms Mogherini and a number of member states supported the initiative.

Ministers agreed without discussion a number of measures:

The Council adopted conclusions on the Central African Republic.

The Council adopted conclusions on the European Court of Auditors’ Special Report: ‘ACP- EU Energy facility support for renewable energy in east Africa’.

The Council concluded consultation with Burundi under article 96 of the EU-ACP Partnership Agreement (Cotonou agreement).

The Council adopted a decision amending restrictive measure against members of the Al-Qaida organisation and other individuals, groups, undertakings and entities associated with them.

The Council approved a crisis management concept (CMC) for a possible EU military training mission in the Central African Republic.

The Council adopted the updated version of the common military list of the EU, which acts as a reference point for member states’ national military technology and equipment lists.

The Council took note of the 17th annual report, which defines common rules governing the control of exports of military technology and equipment.

General Affairs Council

A provisional report of the meeting and conclusions adopted can be found at: http://www.consilium.europa.eu/en/meetings/gac/2016/03/14/

The General Affairs Council (GAC) on 15 March focused on preparation of the March European Council, the inter-institutional agreement on better regulation, the European semester and the cohesion policy.

Preparation of the March European Council

The GAC discussed the agenda for the European Council on 17 to 18 March, which the Prime Minister attended. The agenda covered migration and European semester and outcomes of the February European Council.

On migration, I welcomed the outcomes of the EU-Turkey summit and emphasised that more work needed to be done before leaders could reach agreement at the March European Council. I highlighted the need for a more strategic approach to stop people smuggling and dissuade migrants from using the Aegean route.

Inter-Institutional Agreement on Better Regulation (IIA)

The Council formally adopted the IIA text and will focus on implementation at the May GAC and June European Council. The agreement now needs to be officially signed by the Commission, Parliament and Council and shall enter into force on the day of its signature.

European semester

The Council welcomed the synthesis report which summarises the results of this year’s European semester process. The presidency led an exchange of views on the importance of good governance for driving the successful implementation of the semester’s recommendations.

Cohesion policy—Investing in Jobs and Growth

Commissioner Cretu presented the Commission report “Investing in jobs and growth—maximising the contribution of European Structural and Investment Funds” which summarised the expected results over the 2014-20 period. She called for a debate on simplification, which would feed into the mid-term review of the multi-annual financial framework and the larger debate on the future of cohesion policy.

Under AOB, the presidency informed the Council that the informal GAC, 11 to 12 April, would focus on coherence of the Council’s work and how it fits with follow-up to the European Council as well as follow-up to the multi-annual financial framework seminar held in February.

The next formal GAC will take place on 24 May, and will focus on follow-up to the March European Council, preparation for the June European Council, rule of law, and better regulation.

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National Counter-proliferation Strategy

Thursday 24th March 2016 Written Statements

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mr Tobias Ellwood)]

The Foreign and Commonwealth Office is today publishing a public version of the national counter-proliferation strategy to 2020.

Following the publication of the National Security Strategy and Strategic Defence and Security review 2015 the 2012-2015 national counter-proliferation strategy has been updated to guide the UK’s counter-proliferation activity until 2020.

The overall aim of the national counter proliferation strategy to 2020 is to prevent the spread or further development of chemical, biological, radiological and nuclear capability or advanced military technology which could threaten UK interests or regional stability. The revised strategy broadly follows the same lines of action as over the previous five years, but has been restructured and updated to take account of new developments. It focuses UK action around three strands:

influencing the intent of others, as the most effective way of controlling capabilities;

controlling access globally to the materials and knowledge that would allow a hostile state or terrorist group to act on that intent; and

identifying and disrupting illicit attempts to circumvent these controls.

The UK will work closely with allies, deploying our diplomatic, intelligence, law enforcement and scientific expertise to tackle these challenges.

The delivery of the counter-proliferation strategy is a cross-Government effort led by the Foreign and Commonwealth Office and overseen by the National Security Council.

The strategy will be published on the www.gov.uk website.

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Food Standards Agency: Triennial Review of Six Scientific Advisory Committees

Thursday 24th March 2016 Written Statements

[The Parliamentary Under-Secretary of State for Health (Jane Ellison)]

On 10 September 2015, I announced the commencement of the triennial review by the Food Standards Agency (FSA) for the six scientific advisory committees (SACs) for which the FSA is the sole or lead sponsor (HCSW183).

The six committees are: the Advisory Committee on Animal Feedingstuffs (ACAF); the Advisory Committee on the Microbiological Safety of Food (ACMSF); the Advisory Committee on Novel Foods and Processes (ACNFP); the Committee on Toxicity of Chemicals in Food, Consumer Products and the Environment (COT); the General Advisory Committee on Science (GACS); and the Social Science Research Committee (SSRC).

The FSA reviewed all six bodies as a cluster, which provided a more efficient review process, and allowed the review to consider any gaps or overlaps in the committees’ functions and opportunities for efficiencies in their operation.

The FSA consulted widely with relevant stakeholders, including Government departments and agencies, the devolved Administrations and others with an interest in the work of the committees. The FSA also completed an open call for evidence so that all those with an interest could contribute. I am grateful to all those who contributed to the review.

I am now pleased to announce the completion of the review and publication of the final report.



The review made eight recommendations which, in summary, concluded that:

The functions performed by the ACMSF and COT are still required and they should be retained as advisory non-departmental public bodies;

The advisory risk assessment functions of the ACNFP and the ACAF should be replaced with a new committee which would retain any future functions required from these two committees within the framework of a wider remit on innovation in the food chain;

The FSA should follow similar models in other Government Departments with external chief scientific advisers and replace the GACS (established in 2007 to provide independent advice and challenge to FSA’s then internal chief scientist) with a Science Council;

The SSRC should review its future work programme and membership to provide strategic support, scientific advice and challenge which will inform the FSA in delivery of its strategic objectives and help it understand its impact, reflecting the priorities in the new FSA strategic plan;

The three FSA committees, the SSRC, the new Committee on Innovation in the Food Chain and the new FSA Science Council, should continue to operate openly and transparently as expert committees for the FSA; and

A number of areas of good practice were also identified by the review, and a further four recommendations are made about how to improve the efficiency and impact of the SACs work and to ensure they continue to meet the highest standards of governance.



The FSA will now discuss and determine how the recommendations can be implemented. The final report of the review is available online.

Attachments can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2016-03-24/HCWS651/.

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Tier 2 Workers

Thursday 24th March 2016 Written Statements

[The Minister for Immigration (James Brokenshire)]

I am today announcing reforms to Tier 2, the migration route for those undertaking skilled work in the UK, in response to the Migration Advisory Committee’s review of Tier 2, and its separate review of whether nurses should remain on the shortage occupation list.

For too long we have had a shortage of workers in certain roles, and in the past, it has been too easy for employers to recruit overseas. Last May, the Prime Minister set out our ambition to reform our immigration and labour market rules, and to reduce the demand for skilled migrant labour. The Government subsequently commissioned the independent MAC to advise on reducing economic migration from outside Europe. The MAC was asked to look at restricting skilled work visas to genuine skills shortages and highly specialist experts, raising Tier 2 salary thresholds to stop businesses using foreign workers to undercut wages, and a new immigration skills charge to invest in funding for training resident workers.

The MAC published their report on 19 January. It sets out a balanced series of proposals that aim to strike a balance between reducing reliance on non-EEA skilled workers while also supporting growth and productivity. The Government intend to accept the majority of the MAC’s recommendations.

We will increase the Tier 2 minimum salary threshold to £30,000 for experienced workers. This change will be phased in, with the minimum threshold increased to £25,000 in autumn 2016 and to £30,000 in April 2017. The minimum threshold for new entrants will remain at £20,800.

Reflecting ongoing public sector pay restraint and specific recruitment challenges in these occupations, we shall exempt nurses, medical radiographers, paramedics and secondary school teachers in mathematics, physics, chemistry, computer science and Mandarin from the new salary threshold. Where the occupation is not on the shortage occupation list, we shall also give extra weighting to these occupations in the monthly allocation of the Tier 2 (General) limit. Both measures will apply until July 2019. In line with the MAC’s recommendations, nurses will remain on the shortage occupation list, but employers will need to carry out a resident labour market test before recruiting a non-EEA nurse.

Employers will continue to be able to recruit non-EEA graduates of UK universities without first testing the resident labour market and without being subject to the annual limit on Tier 2 (General) places, which will remain at 20,700 places per year. Additionally, we shall give extra weighting within the Tier 2 (General) limit to businesses sponsoring overseas graduates, and will allow graduates to switch roles within a company once they have secured a permanent job at the end of their training programme. These changes will take effect from autumn 2016.

From April 2017, there will be extra weighting within the Tier 2 (General) limit where the allocation of places is associated with the relocation of a high-value business to the UK or, potentially, supports an inward investment. We will also waive the resident labour market test for these applications.

We will simplify and streamline the Tier 2 (Intra-Company Transfer) provisions in line with our international trade obligations to provide a route for senior managers and specialists. All intra-company transferees will be required to qualify under a single visa category with a minimum salary threshold of £41,500. The exception will be the Graduate Trainee category, where we shall reduce the current salary threshold from £24,800 to £23,000, and increase the number of trainees that an employer may bring to the UK from five to 20.

There will be a transitional period until April 2017 to allow those affected to plan for the changes. In autumn 2016, we will close the Skills Transfer category to new applications and increase the minimum salary threshold for the Short Term category to £30,000. From April 2017, we will close the Short Term category to new applications.

From autumn 2016, all intra-company transferees will be required to pay the immigration health surcharge. We will review the extent to which allowances may be counted as salary to ensure we have appropriate safeguards in place against undercutting of the resident labour market and consider how to take forward the MAC’s proposal for a review of skills in the IT sector.

To provide some further flexibility within the streamlined intra-company transfer category, we shall lower the minimum salary threshold for intra-company transferees working in the UK for between five and nine years from £155,300 to £120,000. We will also remove the one year experience requirement for all applications where the worker is paid over £73,900. These changes will take effect from April 2017.

There will be no change to the work rights of dependants of Tier 2 migrants.

The MAC strongly supported the introduction of the immigration skills charge to incentivise employers to reduce their reliance on migrant workers and to invest in training and up-skilling UK workers. The charge will be levied on Tier 2 employers at a rate of £1,000 per certificate of sponsorship per year. A reduced rate of £364 will apply to small and charitable sponsors, as defined by Immigration and Nationality (Fees) Regulations. PhD level occupations, the Intra Company Transfer Graduate Trainee category, and those switching from a Tier 4 student visa to a Tier 2 visa will be exempt.

The Government intend to have completed implementation of these measures by April 2017. As part of the implementation process, we also intend to simplify the immigration rules and guidance for skilled workers coming to the United Kingdom, to make the system clearer and more user-friendly for employers and applicants.

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Machinery of Government Change: Environmental Regulatory Functions

Thursday 24th March 2016 Written Statements

[The Prime Minister (Mr David Cameron)]

This written statement confirms that responsibility for environmental regulatory functions will transfer from the Department for Business, Innovation and Skills to the Department for Environment, Food and Rural Affairs. This change will be effective from 1 April 2016.

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