Written Statements

Wednesday 13th May 2020 Written Statements

Wednesday 13 May 2020

Coronavirus Loan Schemes

Wednesday 13th May 2020 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Alok Sharma)]

I am tabling this statement for the benefit of hon. and right hon. Members to bring to their attention the changes we have made to the Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme so that more businesses can access the finance they need.

The Coronavirus Business Interruption Loan Scheme was launched on 23 March and is facilitated by the Government-owned British Business Bank and delivered through its delivery partners. Lenders offer loans of up to £5 million to support small and medium sized businesses with a turnover up to £45 million that are affected by the coronavirus outbreak.

The Coronavirus Large Business Interruption Loan Scheme was launched on 20 April. Lenders can offer loans of up to £50 million to support viable businesses with a turnover of £45 million and above that are affected by the coronavirus outbreak.

On 3 April we announced changes to the CBILS scheme. The first change was to the use of personal guarantees under the scheme. Since the launch of CBILS, lenders had been permitted, but not obliged, to require a personal guarantee from businesses for loans of any size provided through CBILS. Lenders were never and will never be permitted under any circumstances to use business directors’ or their families’ principal residence as security. We made changes to the use of personal guarantees through the scheme to provide further reassurance regarding personal assets during this difficult time.

The largest CBILS lenders had already confirmed, on a voluntary basis, that they would not require personal guarantees for CBILS loans under £250,000. The changes we made to the terms of the scheme mean that no lender will be permitted to require a personal guarantee for loans or other CBILS facilities under £250,000.

For CBILS loans over £250,000, lenders are still permitted to require a personal guarantee, although under no circumstances may they use primary personal residences for this. Upon launch, in the event of a default, lenders were previously expected to seek to recover the loss from business assets and then using any personal guarantees. Only when these had been exhausted were they permitted to claim the residual loss under the guarantee agreement. We made changes to these terms so that lenders may now only look to the personal guarantee for a maximum of 20% of the remaining debt before claiming 80% of the residual loss under the guarantee agreement.

The second change concerned the requirements businesses had to meet to access CBILS. At launch, CBILS was designed to support SMEs unable to secure finance on commercial terms. Because CBILS was only available to companies that could not otherwise secure a debt facility, it meant that preferable terms, such as the Government’s coverage of initial interest payments, were unavailable to those businesses that were able to secure facilities on commercial terms.

We therefore removed this requirement, meaning CBILS can now support lending to smaller businesses even where they could have secured a loan on commercial terms. This means that in addition to meeting company size and sectoral restrictions, the only other requirement for businesses is to be able to demonstrate they have been adversely affected by Covid-19 and for lenders to judge that the business is viable. This means that more businesses affected by the outbreak will be able to benefit from a CBILS facility and the Government’s 12-month business interruption payment and resulting lower initial repayments.

On 27 April, we announced further changes to the scheme. The cap on gross Government liability at the level of the lenders whole CBILS portfolio has now been removed. Previously the Government’s gross liability was capped at 75% of losses across the lender’s whole CBILS portfolio. Removing the portfolio cap therefore gives lenders an 80% guarantee across all CBILS lending. This change should provide further confidence to lenders to support the timely supply of finance to businesses.

We are also removing the ‘forward looking’ element of the viability test. The current economic uncertainty means that many businesses are having difficulties providing cashflow forecasts, which is slowing down some lending decisions. Allowing lenders to base lending decisions purely on an assessment of business liability pre Covid-19 removes the requirement for lenders to ask for evidence of future cashflow, thereby speeding up lending decisions.

Finally, charities and further education colleges need no longer show that at least 50% of their income comes from trading to be eligible for both CBILS and CLBILS loans. In practice, this requirement precluded a large number of organisations in these sectors from accessing support through these schemes, and its removal will support these organisations to access both schemes.

The removal of the portfolio cap increases the statutory contingent liability of the CBILS scheme, and I will be laying an updated departmental minute today containing a description of that revised liability undertaken. The other changes do not impact the statutory contingent liability of the CBILS scheme.

The removal of the requirement for at least 50% of the income of charities and further education colleges to come from trading to be eligible for CLBILS also does not impact the statutory contingent liability of the CLBILS scheme.

For more information on this and other support for business, please go to: https://www.businesssupport.gov.uk/.

[HCWS232]

Coronavirus-related Home Office Expenses

Wednesday 13th May 2020 Written Statements

[The Financial Secretary to the Treasury (Jesse Norman)]

To support employees who are working from home and need to purchase home office equipment as a result of the coronavirus outbreak, a temporary tax exemption and national insurance disregard will come into effect to ensure that the expense will not attract tax and NICs liabilities where reimbursed by the employer. The expenditure must meet the following two conditions to be eligible for relief:

That equipment is obtained for the sole purpose of enabling the employee to work from home as a result of the coronavirus outbreak, and

The provision of the equipment would have been exempt from income tax if it had been provided directly to the employee by or on behalf of the employer (under section 316 of ITEPA).

The exemption is a temporary measure and will have effect from the day after the regulations come into force until the end of the tax year 2020-21.

HMRC will exercise its collection and management discretion and will not collect tax and NICs due on any reimbursed payments made from 16 March 2020 (the date the Government recommended working from home) to the date these regulations take effect.

This measure is being announced outside the normal fiscal process in order to ensure that employers and employees are able effectively to manage their working from home arrangements as soon as possible.

The Government will lay the statutory instruments to update these charges before the House in due course. A tax information and impact note (TIIN) will be published at: www.gov.uk/government/collections/tax-information- and-impact-notes-tiins.

[HCWS237]

Education and Childcare Settings

Wednesday 13th May 2020 Written Statements

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

This week I have published guidance to set out how we will support early years, schools and colleges to welcome back more children from 1 June at the earliest.

It is over seven weeks since we asked schools, colleges, and childcare settings to allow only vulnerable children and those of critical workers to attend, and I encourage them to continue to take up this offer. This has been a huge ask of teachers, parents and children. I am immensely grateful for the response of all those working in education, childcare and children’s social care who have undoubtedly helped to support the NHS and save lives.

But we all know the best place for children to be educated is in school and it was always my intention to get them back there as soon as the scientific advice allowed.

As the Prime Minister has confirmed, we are now past the peak of the virus and he has set out a road map for the next phases of our recovery. If progress continues to be made we expect that, from 1 June at the earliest, we will be able to begin a phased return to school, college and childcare for children and young people in key transition years, alongside the priority groups currently eligible to attend:

Primary schools in England will be able to welcome back nursery, reception, year 1 and year 6 children, in smaller class sizes.

Nurseries and other early years providers, including childminders, will be able to begin welcoming back children of all ages.

Secondary schools and colleges will be able to provide some face-to-face support for year 10, year 12, and 16 to 19 college students who are due to take key exams and assessments next year.

I have published the following guidance to support education and childcare settings to prepare for these changes on gov.uk.

Actions for educational and childcare settings

Implementing protective measures in education childcare settings

Information for parents and carers

Initial planning framework

This guidance sets out protective measures that settings should put in place to reduce the risk of transmission. These include children and young people staying within their new, smaller, classes wherever possible and limiting contact between different groups. We have also set out a range of additional protective measures including frequent cleaning, encouraging good hand and respiratory hygiene, considering refreshing the timetable to limit movement and stagger break and lunchtimes, and using outdoor space.

Staff and pupils in all settings will be eligible for testing if they become ill with coronavirus symptoms, as will members of their households, to enable a track and trace approach to be taken in response to any confirmed cases.

We continue to follow the best medical and scientific advice and believe that this phased return is the most sensible course of action to take. We will only do this provided that the five key tests set by Government justify the changes at the time

We will also be updating our guidance for early years settings to confirm that paid childcare can be provided to the children of one household from today, Wednesday 13 May, including by childminders, who may choose to look after the children of one household if they are not already looking after vulnerable children or those of critical workers.

[HCWS236]

Covid-19: Construction Industry

Wednesday 13th May 2020 Written Statements

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

“Our Plan to Rebuild: the UK Government’s COVID-19 recovery strategy” published by the Government on Monday 11 May makes clear that construction work can be undertaken across England providing sites are able to operate safely in line with the new covid-19 secure guidelines. A number of developers have already announced plans to restart work on sites.

In doing so, the Government recognise that the construction industry needs to be able to adapt its normal practices. As part of this, temporary extensions to working hours may be required on some sites to facilitate safe working and allow tasks to be completed where social distancing can be challenging. Longer working hours may also be needed to facilitate social distancing in the wider community, for instance by reducing pressure on public transport. It might be necessary to start work earlier in the day or work until later in the evenings.

However, many construction sites in England are subject to controls which restrict their hours of operation. These controls include planning conditions, which might directly restrict working hours or which might restrict working hours through a construction management plan. These conditions may be necessary, for example, to make the development acceptable to local residents and businesses who might otherwise suffer from traffic, noise and other local amenity issues.

The purpose of this written statement is to make it clear that, with immediate effect, local planning authorities should take a swift and positive approach to requests from developers and site operators for greater flexibility around construction site working hours. This is to ensure that, where appropriate, planning conditions are not a barrier to allowing developers the flexibility necessary to facilitate the safe operation of construction sites during the response to the covid-19 pandemic and to proceed at pace with work otherwise delayed as a result of covid-19.

The National Planning Policy Framework already emphasises that planning enforcement is a discretionary activity and local planning authorities should act proportionately in responding to suspected breaches of planning control.

Where only a short term or modest increase to working hours is required, local planning authorities should, having regard to the reason for the condition and to their legal obligations, not seek to undertake enforcement action.

Where developers require longer term or more significant changes to working hours, they should apply to the local planning authority to temporarily amend a condition or a construction management plan in the usual way. In doing so, it will be important for applicants to consider potential impacts and, where necessary, to put forward brief plans to manage concerns, drawing on existing good practice. In return, local planning authorities should respond speedily and sympathetically and engage positively with applicants to find solutions. Local authorities should prioritise these types of applications and give early clarity on the acceptability of extended hours to developers. They should ensure that decisions are issued quickly—with the aim of doing so within 10 working days.

In allowing greater flexibility, the Government recognise the need to mitigate the impact that any temporary relaxation of working hours could have on local residents and businesses. Requests to extend working hours should be proportionate and should not involve working on Sundays or bank holidays.

However, local authorities should not refuse requests to extend working hours until 9pm, Monday to Saturday without very compelling reasons for rejection. In some cases, such as in areas without residential properties, extending working hours beyond this, including allowing 24 hour working where appropriate, may be justified. In all cases, sympathetic site management should be demonstrated to mitigate local impacts and local authorities should show best endeavours to facilitate such requests.

Applications should only be refused where there are very compelling reasons such as significant impact on neighbouring businesses or uses which are particularly sensitive to noise, dust or vibration, which cannot be overcome through other mitigation, or where impacts on densely populated areas would be unreasonable.

Any temporary changes to construction working hours conditions granted by local planning authorities should not extend beyond 13 May 2021.

This statement covers England only. The need for the statement will be reviewed when the requirement for social distancing on construction sites diminishes.

[HCWS234]

Covid-19: Planning System and Virtual Working

Wednesday 13th May 2020 Written Statements

[The Secretary of State for Housing, Communities and Local Government (Robert Jenrick)]

The planning system has a vital role to play in enabling the delivery of housing and economic growth that will support the UK’s economic recovery. It is important that the system continues to operate effectively, ensuring that all those involved, including local authorities, the Planning Inspectorate, developers, statutory consultees, local communities and others can engage in the process while adhering to the Government’s guidance on social distancing.

This statement sets out the Government’s expectations for how the planning system should be operating during the covid-19 emergency. It applies to applications and appeals under the Town and Country Planning Act; development consent orders under the Planning Act 2008; the compulsory purchase order regime and to development plans, including neighbourhood plans and spatial development strategies.

The role of digital

Local planning authorities and the Planning Inspectorate drive the planning process forward and should ensure that it continues to operate effectively to support economic recovery. Moving to digital events and processes will be critical. This means adapting to working virtually, including virtual hearings and events (such as using video-conferencing and/or telephone) and making documents available for inspection online. The Government expect everyone involved in the planning process to engage proactively.

The Government consider that the current legislative framework allows for virtual hearings. They are confident that processes can be put in place in the vast majority of cases to allow for the participation of all parties. The Government recognise that the method by which hearings and events are conducted is a matter for the Inspectorate, operating in accordance with its legal obligations, and they expect these arrangements to be made as the default method of operation in the vast majority of cases. The Government recognise that in exceptional circumstances it may not be fair to proceed virtually and that alternative arrangements may be needed. These alternative arrangements should be taken forward speedily, where possible, taking into account the Government’s guidance on social distancing.

The Government expect opportunities for virtual hearings and processes to be maximised. They will draw from current and emerging practice to inform policy and process in the longer term.

Virtual events

The Government fully support the Planning Inspectorate’s programme for moving to digital inquiries, hearings, meetings and other events. Digital events present opportunities to increase participation in planning processes which are important for local communities and will minimise the impacts of delays to planning decisions which might otherwise occur due to the requirements for social distancing.

The Inspectorate conducted the first digital hearing event on 11 May and will be quickly scaling up in relation to further virtual events during May and early June where this is consistent with fair participation. In doing so it will accommodate essential legal and procedural requirements. The Government expect events to be taking place virtually by mid-June, other than in exceptional circumstances.

The Government expect inspectors and examining authorities to take decisions about whether and how virtual events should proceed and to consider the practical measures needed to ensure fair participation.

The courts have led in demonstrating the successful use of technology to continue their work. Recognising that the use of technology to support virtual planning events may be challenging, the Government expect that appropriate measures are put in place by the Inspectorate to test the technology and ensure that it enables fair participation. It also expects the Inspectorate to identity those more exceptional circumstances where a virtual event may not be appropriate, making decisions about how to proceed based on the facts of each particular case.

Digital documentation

The effects of covid-19 mean that it is not always possible to access public buildings. As a result, access to planning documents by making them physically available for inspection at local libraries, council offices etc, is now not available. During these exceptional circumstances, the Government consider that online inspection of documents should be the default position across all planning regimes, and they are actively exploring all options to achieve this.

The Government recognise there are sections of the community with limited or no access to the internet and authorities and developers should take reasonable steps to ensure those without access are involved and consider alternative and creative ways to achieve this where possible. This could for example, include sending out documents by CD or USB stick where this meets the needs of those requesting such documents.

As restrictions are eased, planning authorities and others should integrate the range of methods that are available to them into their approaches to ensure all sections of the community are reached as thoroughly as is practically possible.

Site visits

Site visits, whether conducted by local authorities, planning inspectors or statutory consultees, are an important part of the process of considering development proposals and plans. Where site visits are required or necessary, they should be undertaken in line with the Government’s guidance on social distancing and safety requirements..

The Planning Inspectorate will be restarting site visits from mid-May. The Government support the Inspectorate’s determination to facilitate site visits. It will expect inspectors to use their judgement in deciding if a site visit is necessary or whether alternative approaches are acceptable, taking account of the particular circumstances.

Publicity and community engagement

The Government will introduce from tomorrow temporary regulations to supplement the existing statutory publicity arrangements for planning applications, listed building consent applications and environmental statements for EIA development.

Local planning authorities (and applicants of EIA development under the TCPA) now have the flexibility to take other reasonable steps to publicise applications if they cannot discharge the specific requirements for site notices, neighbour notifications or newspaper publicity. These steps will notify people who are likely to have an interest in the application and indicate where further information about it can be viewed online. These steps can include the use of social media and other electronic communications and must be proportionate to the scale and nature of the proposed development.

Guidance to accompany these regulations will also be published to highlight what alternative publicity local planning authorities could undertake. In particular, if local newspapers are not circulating in their area, authorities should seek to use local online news portals in the first instance.

In relation to development plans, the Government have issued additional planning guidance on reviewing and updating statements of community involvement and neighbourhood planning to support authorities and neighbourhood planning groups in engaging with their communities on their plans at this time.

Guidance and Advice

The Planning Inspectorate has published and regularly updates guidance on its work during the covid-19 social distancing measures, which can be viewed here: https://www.gov.uk/guidance/coronavirus-covid-19-planning-inspectorate-guidance

[HCWS235]

Negotiations with Japan

Wednesday 13th May 2020 Written Statements

[The Secretary of State for International Trade (Elizabeth Truss)]

Coronavirus is the biggest threat this country has faced in decades. The Government are doing all they can to protect business from the worst effects of coronavirus in the immediate term. We must take steps to support our economy, reduce impacts and provide opportunities for the future economic recovery.

More trade is essential if the UK is to overcome the unprecedented economic challenge posed by coronavirus. It can give us security at home and opportunities abroad—opening new markets for business, bringing investment, better jobs, higher wages and lower prices just as we need them most. At a time when protectionist barriers are on the rise, all countries need to work together to ensure long-term prosperity and international trade is central to this co-operation.

That is why we will use our voice as a new independent trading nation to champion free trade, fight protectionism and remove barriers at every opportunity. The Government’s ambition is to secure free trade agreements (FTAs) with countries covering 80% of UK trade within the next three years, to become a truly global Britain.

An enhanced FTA with Japan, the third largest economy in the world in 2018, represents significant opportunities throughout the economy, from agriculture to digital. It will also help us increase the resilience of our supply chains and the security of our whole economy as we diversify our trade.

A deal with Japan will be a driving force to maximise the UK’s advantage in the opportunities Asia Pacific affords. These bilateral negotiations are a logical first step to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), given that Japan is CPTPP’s largest economy.

Japan is a developed economy with high standards and we are major investors in each other’s economies. Trade with Japan is integral to UK jobs and businesses. In 2018, around 9,500 VAT registered businesses exported £6 billion worth of goods to Japan, employing 2.4 million people. Around 6,700 VAT registered business, employing 2.5 million people, imported £10 billion worth of goods from Japan.

An enhanced FTA with Japan is therefore expected to deliver a significant and sustained long-term boost to every region in the UK. Our analysis shows that in the long run, the UK economy could benefit from a £1.5 billion boost, as the trade deal could increase trade flows between both countries by £15.2 billion. UK workers’ wages could increase by £800 million in the long run as a result of the deal.

Total annual tariff reductions on goods imports from Japan could be worth up to around £275 million per year in the long run. Some 59% of all Japanese goods imported into the UK and 44% of all UK goods exported into Japan are used in supply chains (average 2016-18). So as well as reducing the price of consumer goods, lower tariffs could also cut the costs of domestic production in both countries.

Removing trade barriers with Japan could deliver huge gains, both for the 8,000 UK small and medium-sized enterprises (SMEs) across the UK already exporting goods with Japan as well as those making plans to enter the Japanese market. For example, total annual tariff reductions on goods exports to Japan could be worth around £33 million per year in the long run.

The deal will also provide cutting edge provisions on digital trade that maximise opportunities for trade across all sectors of the economy, providing trust and stability for UK businesses, entrepreneurs and exporters. Such provisions will reduce trade barriers and make it easier for the SMEs already exporting goods to Japan. UK businesses will have the opportunity to lead on innovation, supporting the development of important emerging technologies, such as quantum computing. E-commerce and the creative industries will also benefit from the free flow of data and strong copyright provisions.

That is why today, the Department for International Trade is publishing a comprehensive document setting out the UK’s strategic approach to an enhanced FTA between the UK and Japan. We will be placing copies in the Libraries of both Houses. The document is set out in three parts:

The Government’s negotiating objectives for an enhanced FTA with Japan, using the existing EU-Japan economic partnership agreement as a basis.

The Government response to the call for input on trade negotiations with Japan, providing an overview of the responses received and setting out how these have fed into our policy development.

A scoping assessment providing a preliminary assessment of the potential long-term economic impacts of an enhanced FTA between the UK and Japan.

The objectives published today are informed by our call for input, which ran for six weeks between 20 September and 4 November 2019 and gave businesses, interest groups and members of the public the opportunity to highlight their priorities for a potential future agreement with Japan.

A deal with Japan will help us to deliver opportunity and unleash the potential of every part of our United Kingdom. Analysis in the scoping assessment shows a UK-Japan enhanced FTA could have a positive impact on every UK nation and region in the long run, with Scotland, the East Midlands and London expected to benefit the most.

We are engaging with the devolved Administrations, Crown dependencies and overseas territories to ensure that we develop an enhanced FTA that works for the whole of the UK.

Our negotiating objectives clearly set out our priorities for an ambitious and comprehensive agreement, which will build on our existing EPA to strengthen the economic relationship with one of our largest bilateral trading partners.

The Government are committed to transparency and we will continue to ensure that parliamentarians, UK citizens and businesses have access to the information they need on our trade negotiations.

[HCWS231]

M25 Junction 10/A3 Wisley Interchange

Wednesday 13th May 2020 Written Statements

[The Secretary of State for Transport (Grant Shapps)]

This statement concerns the development consent order application for the M25 junction 10/A3 Wisley interchange improvement made by Highways England under the Planning Act 2008, which had been submitted to the Planning Inspectorate on 19 June 2019.

Under section 98(1) of the Act the examining authority appointed to examine the application must complete its examination within six months. Under section 98(4) the examining authority must submit its recommendation report to the Secretary of State within three months of its completion of the examination. Under section 107(1) of the Act, following receipt of the examining authority’s recommendation report, the Secretary of State must decide whether to grant development consent within three months.

Sections 98(4) and 107(3) of the Act give the relevant Secretary of State power to set new deadlines in respect of the above which are later than the statutory maxima. For this application, the relevant Secretary of State is the Secretary of State for Transport. In exercising this power, the Secretary of State for Transport must, among other things, make a statement to Parliament announcing the new deadlines.

The examination for the M25 Junction 10 DCO began on 12 November 2019 and is due to close on 12 May 2020. The recommendation report would need to be sent to the Secretary of State on or before 12 August 2020. A decision in this case would therefore be made on or before 12 November 2020.

The deadline for the completion of the examination is to be extended to 12 July 2020 (an extension of two months) to enable examination hearings postponed in the light of Government advice concerning coronavirus (covid-19) to be rescheduled and held in a virtual forum. Consequently, the deadline for the examining authority to submit its recommendation report to the Secretary of State for Transport is amended to 12 October 2020 and the deadline for the Secretary of State for Transport to take his decision is amended to 12 January 2021.

The decision to extend the examination under the Planning Act 2008 regime is not taken lightly and reflects the exceptional public health circumstances the country finds itself in.

The decision to set new deadlines is without prejudice to the decision on whether to grant development consent.

[HCWS233]