Written Statements

Wednesday 20th December 2017 Written Statements

Wednesday 20 December 2017

Post Office

Wednesday 20th December 2017 Written Statements

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

The Government are announcing today that they are committing up to £370 million in new investment to the post office network for the three years from the start of April 2018 to the end of March 2021.

The post office network plays a vital role in communities, with post offices having the most positive impact on the local area of any type of shop, as found by the Association of Convenience Stores’ local shop report 2017. At a time when our high streets are changing, the Government and Post Office are working to keep post offices on our high streets, supporting continued access to banking services through the Post Office’s banking framework whereby 99% of individuals and 95% of small businesses can access basic banking arrangements.

This new investment in the Post Office will further strengthen it for the future. Alongside today’s announcement the Government and Post Office have published three documents which evidence the progress that has been made in strengthening the Post Office:

Post Office’s annual report and accounts show that the financial performance of the Post Office continues to improve, with the company making a profit for the first time in 16 years;

The annual network report demonstrates that the number of post offices around the country continues to be at its most stable for decades, and in fact shows an increase in the number of branches for the second year running. The report shows that 93% of the population live within 1 mile of a Post Office, and almost 99% of the rural population live within 3 miles;

Government’s response to the public consultation confirms our manifesto commitment to securing the network, maintaining the current access criteria to ensure that there remains a widespread and comprehensive distribution of branches around the country.

Furthermore, the Government’s £2 billion investment in the Post Office since 2010 has led to over seven and a half thousand branches being transformed and modernised, bringing almost a million extra opening hours per month for customers, with 4,400 branches open on a Sunday.

The next three years will see new technology being rolled out into branches, and Post Office will be innovating its existing products and launching new ones too. The Post Office’s digital presence will be strengthened and its online presence will be better integrated with its branches.

The steps the Government and the Post Office’s staff and leadership have taken in recent years have strengthened the business and helped to make the network more commercially sustainable, reducing its reliance on taxpayer support and the long-term need for Government funding. This new funding gives the Post Office the security to plan a vibrant long-term future for the network.

[HCWS379]

Fuel Duty Fraud: New Fuel Marker

Wednesday 20th December 2017 Written Statements

[The Exchequer Secretary to the Treasury (Andrew Jones)]

The Government are committed to tackling fuel fraud. HMRC’s oils fraud strategy has seen the UK tax gap for fuels reduce from £1.5 billion in 2002 to less than £100 million in 2015-16. In Northern Ireland, where this issue has been a particular problem, the illicit market share has been reduced from 26% to 8% over the same period. However, the Government recognise there is no room for complacency.

One form of fuel fraud is fuel laundering—the removal of chemical dyes and covert markers from rebated fuel to give the appearance of legitimate road fuel. To tackle this problem, the UK, together with the Republic of Ireland, introduced a new fuel marker from 1 April 2015.

Since its introduction, HMRC have been monitoring the performance of the new marker and published evaluation reports after six months and 12 months. In the 12 month report, the Government committed to publish a further report covering the first two years of the marker. I will deposit a copy of HMRC’s evaluation, based on the first 24 months’ worth of data, in the Library of the House.

The review suggests that in the two years since its introduction, the new marker had a positive effect in preventing fuel fraud through laundering. HMRC will continue to monitor the performance of the fuel marker and will take any further action as required.

[HCWS381]

Financial Services

Wednesday 20th December 2017 Written Statements

[The Chancellor of the Exchequer (Mr Philip Hammond)]

The Bank of England today announced plans to ensure continuity in financial services in the unlikely event of no deal with the European Union. The December European Council decided that sufficient progress had been made in the first stage of the EU exit negotiation and the Government are therefore confident that they will agree an implementation period and a deep and special partnership. However, there is also a responsibility for the Government, the Bank and the FCA to plan for all outcomes including the unlikely scenario of no deal being reached. Therefore, the Government welcome today’s announcements by the Bank of England and the FCA. In the event of agreement not being reached, they would ensure that the UK’s position as the world’s leading financial centre is maintained and UK customers are protected. This is because the presence of EU financial service firms in the UK:

Supports UK exports—if a European bank with a presence in London sells to another country UK exports are boosted;

Creates jobs, both directly in branches but also associated professions such as finance, legal and accounting;

Raises revenue from tax to fund our vital public services;

Benefits consumers, such as the six million customers that currently have insurance policies with EU firms.

There are 160 branches of international banks in the UK; 77 are from the EEA. Their assets total £4 trillion, substantially more than UK GDP. Keeping that presence in the UK is in Britain’s national interest and today’s announcement illustrates that the Government stand ready to do what is necessary to protect it.

As requested by the Bank and the FCA, the Government will, if necessary, bring forward legislation:

which will enable EEA firms and funds operating in the UK to obtain a “temporary permission” to continue their activities in the UK for a limited period after withdrawal; and

alongside the temporary permissions regime, the Government will legislate, if necessary, to ensure that contractual obligations, such as insurance contracts, which are not covered by the regime, can continue to be met.

We will also bring forward secondary legislation to ensure that UK authorities are able to carry out functions currently undertaken by EU authorities. We propose to give the Bank of England functions and powers in relation to non-UK central counterparties (CCPs) and non-UK central securities depositories (CSDs). If necessary, we will also provide for a temporary regime to enable the Bank to permit these firms to continue to operate in the UK for a limited period after exit. The Bank will set out its approach to CCPs located abroad today. We will also provide the FCA with functions and powers in relation to UK and non-UK credit rating agencies and trade repositories and any powers necessary to manage the transition post-exit. HM Treasury will work with the Bank and FCA as they determine how they will use these powers, consistent with their statutory objectives.

Whatever the outcome of the negotiations, the Government are strongly supportive of continued engagement and co-operation between UK and EU regulators to protect financial stability. It is vitally important that we work with our European partners to put the technical arrangements in place to avoid financial market disruption.

[HCWS382]

Universal Broadband Delivery

Wednesday 20th December 2017 Written Statements

[The Minister for Digital (Matt Hancock)]

The Government have today confirmed that universal high speed broadband will be delivered by a regulatory universal service obligation (USO), giving everyone in the UK access to speeds of at least 10Mbps by the end of 2020.

Following the creation of new enabling powers in the Digital Economy Act 2017, we launched our consultation on the design of the regulatory USO on 30 July 2017. The USO will give households and small businesses a legal right to request a broadband connection from a designated provider who will be obliged to provide a connection, regardless of location, up to a reasonable cost threshold. Having carefully considered the responses, we will set out the design for a legal right to high speed broadband in secondary legislation early next year, alongside our detailed consultation response.

In the summer, we also received a proposal from BT Group plc to deliver universal broadband through a voluntary agreement. We welcomed the proposal and have considered this in detail alongside a regulatory approach. However, we have decided not to pursue BT’s proposal. We believe that only a regulatory USO offers sufficient certainty and the legal enforceability that is required to guarantee delivery of our manifesto commitment to ensure decent broadband access for the whole of the UK by 2020.

Working with Ofcom, we will now move ahead to take the necessary steps to implement the regulatory USO as swiftly as possible. Once we have laid the secondary legislation setting the specification for the USO, Ofcom will then carry out the necessary steps to put the USO in place to bring about faster broadband across the UK.

[HCWS375]

Defence Industrial Policy

Wednesday 20th December 2017 Written Statements

[The Secretary of State for Defence (Gavin Williamson)]

Today I am publishing the Defence Industrial Policy. This meets a commitment in the 2015 National Security Strategy and Strategic Defence and Security Review. A copy has been placed in the Library of the House and on the www.gov.uk website. Building on the national security through technology White Paper of 2012, the policy focuses on our overall engagement with defence industry, and how this is best structured to serve our national security objectives.

Industry, working alongside our armed forces and defence civilians delivers a crucial part of the United Kingdom’s national security objectives: to protect our people, project influence overseas and promote national prosperity. Industry delivers vital capabilities to our armed forces, and is an important part of the UK economy.

As a customer of the defence industry, the Government have a responsibility to obtain the right capability for our armed forces and to ensure value for money for the taxpayer in the goods and services that we buy. Alongside this, we also want to create an environment that encourages a thriving and globally competitive UK defence sector as an important part of our wider industrial base.

Since 2015, we have worked with business of all sizes to understand how we can support growth and competitiveness in the sector, as well as our wider national security objectives. The refreshed Defence Industrial Policy sets out the results of this work.

It identifies what has been achieved so far, as well as the areas where further work is needed. In defining how Government and industry can work together to generate value and strengthen our security, it is part of a continuing process of engagement.

There are three strands to our policy approach:

Improving the way defence delivers wider economic and international value, and national security objectives.

Helping UK industry in its plans to be internationally competitive, innovative and secure.

Making it easier to do business with defence, particularly for innovators, small and medium-sized enterprises (SMEs) and non-traditional defence suppliers.

We are committed to delivering value for money for defence and a fair return to industry by implementing the single source contracting regulations in new and modified non-competitive contracts, as set out in the Defence Reform Act 2014.

We will strengthen industrial collaboration with our key allies and partners, includingin the context of NATO, the US National Technology and Industrial Base and the European Technology and Industrial Base, with which UK industry and research will remain closely linked.

The National Shipbuilding Strategy, published in September 2017, sets out our approach for driving prosperity through export-led growth, competition and a focus on national and regional productivity and skills. It is an important pathfinder to improve the way we measure, assess and apply prosperity benefits in other areas of defence procurement.

To deliver this refreshed approach we will need to continue our close partnership with industry in the UK, while maintaining our commitment to open competition.

[HCWS374]

Future Nuclear Deterrent

Wednesday 20th December 2017 Written Statements

[The Secretary of State for Defence (Gavin Williamson)]

On 18 May 2011, the then Secretary of State for Defence, (Dr Liam Fox) made an oral statement to the House, Official Report, column 351, announcing the approval of the initial gate investment stage for the procurement of the successor to the Vanguard class ballistic missile submarines. He also placed in the Library of the House a report “The United Kingdom’s Future Nuclear Deterrent: The Submarine Initial Gate Parliamentary Report”.

As confirmed in the 2015 strategic defence and security review, the Government are committed to publishing an annual report on the programme. I am today publishing the sixth report, “The United Kingdom’s Future Nuclear Deterrent: The Dreadnought Programme, 2017 Update to Parliament”. A copy has been placed in the Library of the House.

[HCWS377]

Special Educational Needs and Disability

Wednesday 20th December 2017 Written Statements

[The Minister for Children and Families (Mr Robert Goodwill)]

In March 2017 the Government committed to introduce a two-year national trial to expand the powers of the first-tier tribunal (SEND) to make non-binding recommendations on the health and social care aspects of education, health and care (EHC) plans alongside the educational aspects.

I am pleased to announce the Special Educational Needs and Disability (First-tier Tribunal Recommendation Power) Regulations 2017 for the national trial on the single route of redress have been laid in Parliament today and will come into force on 3 April 2018. The national trial will run for two years and we will consider next steps following an evaluation, including whether evidence supports its continuation.

Separately, the Government have considered their position on powers, provided via the Children and Families Act 2014, to pilot, and subsequently introduce, a right for children under 16 to appeal themselves to the first-tier tribunal (SEND). After careful consideration, we have decided not to pilot this measure at the current time.

Children are at the centre of the SEND system with person-centred planning and co-production a key part of the Children and Families Act 2014. Local authorities in England are already under a duty to present the child’s views to the tribunal. The Children and Families Act 2014 has already introduced the right for young people (aged 16 or over) to appeal. Although giving children under 16 the right to appeal would strengthen their voice, there is limited evidence of demand from families or children in England for this right, and in Wales, where the right was established in 2015, there has not been a single appeal from a child.

Government will keep the issue under consideration, including monitoring the position in the devolved Administrations and how the current system is working for young people aged 16 and over.

[HCWS376]

Intelligence Oversight

Wednesday 20th December 2017 Written Statements

[The Prime Minister (Mrs Theresa May)]

I have today laid before both Houses a copy of the final annual reports from the Intelligence Services Commissioner, the Interception of Communications Commissioner and the Chief Surveillance Commissioner. These reports are the last reports to be completed under the previous system of judicial intelligence oversight. On 1 September 2017 the Investigatory Powers Commissioner assumed responsibility for oversight of the use of investigatory powers by public authorities.

These three annual reports demonstrate that the security and intelligence agencies, law enforcement agencies and other relevant public authorities show high levels of operational competence combined with respect for the law. The introduction of the Investigatory Powers Commissioner, as created by the Investigatory Powers Act 2016, will only further strengthen the system of oversight and the world-leading level of transparency that these reports represent. I would like to place on record my thanks to the commissioners and their staff for their work.

I would also like to thank the Intelligence and Security Committee of Parliament, which has published its 2016-17 annual report today. This is a thorough annual report covering threats to national security, the Committee’s assessment of the UK’s approach to counter-terrorism and cyber-security and in-depth scrutiny of the resources and expenditure of the agencies and Government Departments. The level of detail contained in the report, obtained through the Committee’s regular access to written material and evidence sessions with the heads of agencies and Secretaries of State is testament to the quality of UK parliamentary intelligence oversight. The report includes 26 conclusions and recommendations, many of which the Government support and are already implementing, such as continuing efforts to tackle the extremist narrative, working with the technology industry to promote secure operating systems in smart devices, attracting technical specialists into agency roles and ensuring that the strongest possible European security co-operation continues post-Brexit. The Government are committed to improving the efficiency and effectiveness of the agencies’ and will consider the Committee’s recommendations about administration and expenditure as part of those wider Government efforts.

Finally, I would also like to respond to the Intelligence and Security Committee’s report on targeted airstrikes which was published on 26 April 2017 before the general election. On 7 September 2015, the then Prime Minister informed the House that on 21 August 2015, an RAF remotely piloted aircraft targeted and killed Reyaad Khan, a UK national, in the Raqqah area in Syria in an act of UK self-defence. Two other individuals, both Daesh associates, were also killed. On 29 October 2015, the Intelligence and Security Committee announced that it would be investigating the intelligence basis for the airstrikes and the threat that Reyaad Khan posed.

The Intelligence and Security Committee concluded that there was

“no doubt that Reyaad Khan posed a very serious threat to the UK”.

The Committee reviewed classified intelligence reports that showed how Reyaad Khan and his associates had encouraged multiple operatives around the world to orchestrate attacks, including at high-profile public commemorations in the UK in 2015. They had offered instructions for the manufacture of improvised explosive devices and locations of possible targets. The intent to murder British citizens was clear and the Intelligence and Security Committee concluded

“it is to the Agencies’ credit that their investigation of Khan’s activities revealed these plots which they were then able to disrupt, thereby avoiding what could have been a very significant loss of life.”

A precision airstrike against a British citizen is one of the most difficult decisions a Government can take. It is the last resort in a host of counter-terrorism measures to prevent and disrupt plots against the UK at every stage in their planning. These include powers to stop suspects travelling, to pursue terrorists through the courts and to assist coalition partners in counter-terrorism activity overseas.

However, if there is a direct threat to UK citizens like that posed by Reyaad Khan, I, like my predecessor, will always be prepared to take action. In August 2015, there was no alternative to a precision airstrike in Syria. There was no Government that the UK could work with, and no military on the ground to detain Daesh operatives. There was also nothing to suggest that Reyaad Khan would desist from his desire to murder innocent people in the UK. The Government had no way of ensuring that all of his planned attacks would not become a murderous reality without taking direct action.

As the then Prime Minister informed the House in September 2015, a rigorous decision-making process underpinned the airstrike. A direct and imminent threat was identified by the intelligence agencies and the National Security Council agreed that military action should be taken. The Attorney General was consulted and was clear that there would be a clear legal basis for action in international law. For the reasons outlined above, an airstrike was the only feasible means of effectively disrupting the attack planning and so it was necessary and proportionate for the individual self-defence of the UK. On that basis, the Defence Secretary authorised the operation, which was conducted according to specific military rules of engagement that complied with international law and the principles of proportionality and necessity.

The UK continues to thwart terrorist attacks. Countering the threat has always been a crucial part of the work of this Government. We have introduced measures to disrupt the travel of foreign fighters, passed the Investigatory Powers Act which ensures the police and security and intelligence agencies have the powers and tools they need to keep the public safe, and increased counter-terrorism budgets. We continue to work with technology companies to remove terrorist material online and to share UK intelligence with international partners to track down terrorists. But sadly this year has shown that the threat from terrorism cannot always be contained. Too many innocent families’ lives have been ruined across the UK from international terrorist attacks. The Government will continue to do what is necessary to keep citizens safe.

[HCWS378]

Organisation for Security and Co-operation in Europe: UK Delegation

Wednesday 20th December 2017 Written Statements

[The Prime Minister (Mrs Theresa May)]

The United Kingdom delegation to the Parliamentary Assembly of the Organisation for Security and Co-operation in Europe is constituted as follows: