Written Statements

Tuesday 23rd March 2021 Written Statements

Tuesday 23 March 2021

Report on Victim Compensation for Gaddafi-sponsored IRA terrorism

Tuesday 23rd March 2021 Written Statements

[The Minister for the Middle East and North Africa (James Cleverly)]

In March 2019, the then Foreign Secretary, my right hon. Friend the Member for South West Surrey (Jeremy Hunt) appointed Mr William Shawcross as his special representative on UK victims of Gaddafi-sponsored IRA terrorism. Mr Shawcross was commissioned to write an internal scoping report on the subject of compensation for UK victims of Gaddafi-sponsored IRA terrorism. Mr Shawcross submitted his report in March 2020.

The Government thank Mr Shawcross for his report. Since it was commissioned as an internal scoping report, to provide internal advice to Ministers, and draws on private and confidential conversations held by Mr Shawcross, the Government will not be publishing the report.

These important issues have needed careful and thorough consideration across Government given the complexity and sensitivity of the issues raised.

The UK Government reiterate their profound sympathy for UK victims of Gaddafi-sponsored IRA terrorism and indeed for all victims of the Troubles. We recognise the pain and suffering of victims of violent crime, including terrorism, and provide publicly funded support and compensation schemes for those affected.

The UK Government are clear that the primary responsibility for the actions of the IRA lies with the IRA. Nevertheless, the Gaddafi regime’s support for the IRA was extensive. It is widely documented in the public domain. It involved money, weapons, explosives and training from the 1970s onwards. It helped fuel the Troubles in Northern Ireland and enhanced the IRA’s ability to carry out attacks in Northern Ireland and Great Britain.

The responsibility for providing compensation specifically for the actions of the Gaddafi regime lies with the Libyan state. The Government have therefore repeatedly urged the Libyan authorities, including at the highest levels of the Libyan Government, to engage with UK victims and their representatives, and to address their claims for compensation.

However, there are clear practical difficulties in obtaining compensation from Libya for Gaddafi-sponsored IRA terrorism. The conflict, political instability and economic instability that have prevailed in Libya for most of the last 10 years since the fall of the Gaddafi regime present particular challenges.

Mr Shawcross has considered these issues, including the difficulties of defining UK victims of Gaddafi-sponsored IRA terrorism given the extensive nature of Libyan support for the IRA, and the range of proposals for providing compensation to victims. The Government have reflected fully on these issues. The Government’s considered view is that an additional, UK-funded mechanism for providing compensation to victims of the Troubles would not provide accountability for the specific role of the Gaddafi regime in supporting the IRA.

Mr Shawcross also considered whether compensation for UK victims should be funded from Libyan frozen assets in the UK. Under international law, when assets are frozen, they continue to belong to the designated individual or entity. Frozen assets may not be seized by the UK Government.

In implementing financial sanctions, the UK is obliged to comply with the relevant United Nations obligations. UN Security Council resolution 2009 (2011) states that the aim of the Libya financial sanctions regime is

“to ensure that assets frozen pursuant to resolutions 1970 (2011) and 1973 (2011) shall as soon as possible be made available to and for the benefit of the people of Libya”.

There is also no legal basis for the UK to refuse the release of frozen assets once conditions for delisting or unfreezing those assets set out in UN Security Council resolution 2009 of 2011 are met.

Therefore, regrettably, the UK has no legal basis to seize frozen Libyan assets or to refuse the release of frozen assets. The Government cannot lawfully use Libyan assets frozen in the UK to provide compensation to victims.

The UK Government have also considered whether they should provide compensation to victims from public funds, which it may subsequently recoup from Libya. The responsibility for providing compensation specifically for the actions of the Gaddafi regime is the direct responsibility of the Libyan state. It is not therefore for the UK Government to divert UK public funds specifically for this particular purpose.

Victims of violent crime, including terrorism, occurring in Great Britain can access the criminal injuries compensation scheme, funded by the UK Government, subject to eligibility criteria and time limits. Bereaved family members can access bereavement and funeral payments. In Northern Ireland, victims have access to the Northern Ireland criminal injuries compensation scheme. The Troubles permanent disablement scheme, to be delivered by the Northern Ireland Executive, will provide acknowledgement payments to people living with permanent physical or psychological disablement resulting from being injured in Troubles-related incidents. Details of when the scheme will be open for applications, and how people can apply, will be published by the Northern Ireland Executive.

The UK will continue to press the Libyan authorities to address the Libyan state’s historic responsibility for the Gaddafi regime’s support for the IRA.

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Oil and Gas Decommissioning Relief Deeds

Tuesday 23rd March 2021 Written Statements

[The Exchequer Secretary to the Treasury (Kemi Badenoch)]

At Budget 2013, the Government announced they would begin signing decommissioning relief deeds. These deeds represented a new contractual approach to provide oil and gas companies with certainty on the level of tax relief they will receive on future decommissioning costs.

Since October 2013, the Government have entered into 98 decommissioning relief deeds.

Oil and Gas UK estimates that these deeds have so far unlocked approximately £8.1 billion of capital, which can now be invested elsewhere.

The Government committed to report to Parliament every year on progress with the decommissioning relief deeds. The report for financial year 2019-20 is provided below.

1. Number of decommissioning relief agreements entered into: the Government entered into four decommissioning relief agreements in 2019-20.

2. Total number of decommissioning relief agreements in force at the end of that year: 96 decommissioning relief agreements were in force at the end of the year.

3. Number of payments made under any decommissioning relief agreements during that year, and the amount of each payment: two payments were made under a decommissioning relief agreement in 2019-20, for £54.6 million in total. These were made in relation to the provision recognised by HM Treasury in 2015, as a result of a company defaulting on its decommissioning obligations.

4. Total number of payments that have been made under any decommissioning relief agreements as at the end of that year, and the total amount of those payments: six payments have been made under any decommissioning relief agreement as at the end of the 2019-20 financial year, totalling £148.6 million.

5. Estimate of the maximum amount liable to be paid under any decommissioning relief agreements: the Government have not made any changes to the tax regime that would generate a liability to be paid under any decommissioning relief agreements. HM Treasury’s 2020-21 accounts will recognise a provision of £258.1 million in respect of decommissioning expenditure incurred as a result of a company defaulting on their decommissioning obligations¹. The majority of this is expected to be realised over the next three years.

¹ This figure takes into account payments made subsequent to the financial year covered by this written ministerial statement.

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Public Service Pensions: Guaranteed Minimum Pension Indexation Consultation

Tuesday 23rd March 2021 Written Statements

[The Chief Secretary to the Treasury (Steve Barclay)]

The Government are today publishing their response to the consultation titled “Public Service Pensions: Guaranteed Minimum Pension (GMP) indexation consultation”. The consultation, which took place between 7 October and 30 December 2020, considered how the Government will continue to meet past commitments to public service pension members regarding the full indexation of public service pensions, including any GMP element related to membership of a public service pension scheme, beyond 5 April 2021. It considered options to extend the current GMP indexation methodology to 5 April 2024 or to a later date before reconsidering alternative methodologies, namely conversion, or to make the current methodology the permanent solution. The consultation made clear that the Government remain fully committed to the price protection of GMPs for members of public service pension schemes under any solution adopted.

As proposed by the majority of respondents to the consultation, the Government have decided to discount conversion as a long-term policy solution and make full GMP indexation the permanent solution for public service pension schemes. Public service pension schemes will therefore provide full indexation to those public servants with a GMP reaching state pension age beyond 5 April 2021.

The Government are of the view that this is the most practical solution to GMP indexation. This is because, before conversion could be undertaken, schemes would need to ensure that they have accurate reconciled data, along with a finalised methodology to convert those GMP benefits where conversion on a £1:£1 basis would not result in equalisation. This is likely to be resource intensive at a time when public service pension schemes do not have the capacity to undertake conversion until 2024 at the earliest. There also remains a chance that conversion might not be deliverable by then. Furthermore, the benefits of conversion diminish over time as the number of members with a GMP is steadily reducing. It is for these reasons that the Government have decided to make full GMP indexation the permanent solution for public service pension schemes.

The consultation set out the benefits of undertaking conversion, which include a reduction in administrative complexity in the long term regarding those public servants yet to reach state pension age. In addition, some respondents also highlighted additional benefits of under-taking conversion, some of which were highlighted in the Government response to the previous GMP indexation and equalisation consultation in 2016-17. However, notwithstanding these arguments, the Government does not consider these benefits to outweigh the benefits of making full indexation the permanent solution.

Public service pension schemes will now provide full indexation to those public servants with a GMP reaching state pension age from 6 April 2021. The Government response to the consultation has been published online on gov.uk and can be found at: www.gov.uk/government/consultations/public-service-pensions-guaranteed-minimum-pension-indexation-consultation.

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Tax Policies and Consultations

Tuesday 23rd March 2021 Written Statements

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

I have today laid before Parliament “Tax policies and consultations—Spring 2021” [CP 404].

The measures set out in this Command Paper will shape the next steps in delivering the Government tax administration strategy, announced in July 2020. The Command Paper also includes a range of important policy announcements and updates which will support wider improvements in the tax system, including on business rates and environmental taxes, as well as measures to drive down non-compliance and enhance simplification.

By announcing these tax measures and consultations separately from the Budget, the Government are seeking to provide greater visibility and transparency for parliamentarians, tax professionals and other stakeholders, in order to increase the overall quality of tax policy and legislation.

Copies of the paper are available in the Vote Office and the Printed Paper Office and at: www.gov.uk/ government/publications/tax-policies-and-consultations-spring-2021.

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Healthy Weight Programme: Funding for Local Authority Weight Management Services

Tuesday 23rd March 2021 Written Statements

[The Parliamentary Under-Secretary of State for Health and Social Care (Jo Churchill)]

On 4 March this year, the Prime Minister announced an additional £100 million over 2021-22 to support people living with obesity to lose weight and maintain healthier lifestyles. I am pleased to confirm that the Government are dedicating £34.9 million of this new funding to support the expansion of local authority weight management services for adults, children, and families. Funds will be allocated via two ringfenced grants under section 31 of the Local Government Act 2003 and will be available to local authorities for 12 months from the beginning of the 2021-22 financial year.

The first grant will distribute £30.5 million among all local authorities in England to commission adult behavioural weight management services, based on population size, obesity prevalence, and deprivation. The funding is conditional on local authorities commissioning new, or expanding existing, behavioural weight management services, providing information on current service provision, and regularly submitting user data. This will be critical to demonstrate what works as we build a long-term approach to behavioural weight management services. The grant circular, setting out local authority allocations and the funding conditions, will be published on gov.uk today.

The second grant will distribute £4.4 million to test the expansion of behavioural weight management services for children and families and pilot an intervention to improve access to local services for children identified as overweight or obese through the national child measurement programme. All local authorities may submit an expression of interest for this funding. Funding will be allocated to local authorities according to the strength of their application and local need based on population size, child obesity prevalence and child-specific deprivation measures. The government will look to fund up to 10 areas, depending on the volume and strength of applications received. As with the adult grant, funding will be conditional on successful local authorities: commissioning behavioural weight management services for children and families; piloting an extended brief intervention linked to the national child measurement programme; providing information on current child and family service provision; and regularly submitting outcome data using a standardised dataset. The expression of interest for child and family weight management services will be announced on gov.uk today.

Public Health England will administer both grants and will be working closely with the Department of Health and Social Care to monitor and evaluate this important investment in behavioural weight management services.

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Independent Inquiry into Issues Raised by Paterson

Tuesday 23rd March 2021 Written Statements

[The Minister for Patient Safety, Suicide Prevention and Mental Health (Ms Nadine Dorries)]

It is now 12 months since the independent inquiry into the issues raised by the convicted breast surgeon, Ian Paterson, published its report. The report made for difficult reading and describes the terrible harms that can occur when the malpractice of an individual, rogue surgeon goes unchecked.

In my statement to Parliament on 28 April 2020 I reluctantly announced a delay in our work to respond to the report. The covid-19 pandemic has continued to exert unprecedented pressures on the health system, and this has necessitated a pragmatic response to the recommendations of the Paterson inquiry.

The independent sector has stepped up and supplied much needed additional capacity for the NHS in its treatment of NHS patients during the response to the pandemic.

We have taken stock of all the recommendations and engaged with stakeholders across the system to gather views on the best way forwards. As part of this we have listened carefully to former patients of Ian Paterson through regular conversations with representatives of the three main patient groups and a bespoke event to ensure their voices are heard.

The immediate safety of patients has been our top priority and we have sought and received reassurance that the recalls of patients by University Hospitals Birmingham NHS Foundation Trust and Spire Healthcare have proceeded as quickly as possible.

When the recommendations have provided a clear way forward, we have worked with our system partners to put in place, or require, effective action. We will continue to consider all the recommendations and produce a full response to the inquiry’s 15 recommendations during 2021.

Today I am able to update the House on the Government’s initial response to the following five recommendations of the independent inquiry into the issues raised by Paterson, and update on three other developments.

Recommendation 2—Information to patients: We recommend that it should be standard practice that consultants in both the NHS and the independent sector should write to patients, outlining their condition and treatment, in simple language, and copy this letter to the patient’s GP, rather than writing to the GP and sending a copy to the patient.

NHS England and NHS Improvement will examine how current guidance published by the Academy of Medical Royal Colleges (AoMRC) in 2018 on writing outpatient clinical letters addressed to patients (and copied to their GP) using simple, appropriate language can be incorporated into the requirements of the NHS standard contract.

Recommendation 4—Consent: We recommend that there should be a short period introduced into the process of patients giving consent for surgical procedures, to allow them time to reflect on their diagnosis and treatment options. We recommend that the GMC monitors this as part of “Good medical practice”.

The General Medical Council (GMC) published its revised good practice guidance on consent on 30 September 2020. This came into effect on 9 November 2020 and sets out seven principles of decision making and consent, including giving patients the information they need to make a decision and the time and support they need to understand it. The GMC will work with organisations across the UK’s health services to support doctors to embed this into their everyday practice.

Recommendation 5—Multidisciplinary team (MDT): We recommend that CQC as a matter of urgency, should assure itself that all hospital providers are complying effectively with up-to-date national guidance on MDT meetings, including in breast cancer care, and that patients are not at risk of harm due to non-compliance in this area.

Specific questions relating to MDT are already included in appropriate CQC service frameworks. As part of a longer-term strategy (based upon a short and medium term action plan that includes) this recommendation the CQC will work to ensure these become mandatory elements of its assessment and inspection approaches and communicate its expectations to service providers.

Recommendation 7—Patient recall and ongoing care: We recommend that the University Hospitals Birmingham NHS Foundation Trust board should check that all patients of Paterson have been recalled, and to communicate with any who have not been seen.

University Hospitals Birmingham NHS Foundation Trust (UHB) contacted 4,394 patients between May and August 2020. This has given rise to 355 enquiries. Following receipt of each enquiry, the patient/relative was contacted directly by a member of a dedicated team to ensure that the trust was responding in a way that was respectful and responsive to individual patient preferences. For patients who underwent a breast procedure, care was reviewed by a consultant breast surgeon who was independent from the trust. For patients who had a general procedure e.g. hernia repair or a varicose veins/other vascular procedure, care was reviewed by a consultant from UHB.

Recommendation 8—Patient recall and ongoing care: We recommend that Spire should check that all patients of Paterson have been recalled, and to communicate with any who have not been seen, and that they should check that they have been given an ongoing treatment plan in the same way that has been provided for patients in the NHS.

By December 2020 Spire Healthcare had contacted all known living patients of Ian Paterson for whom they had addresses (approximately 5,500). Spire Healthcare is currently ensuring that those patients’ care has been fully reviewed, that the outcome of the reviews has been fully communicated to them and that, if required, they are getting the support and care that they needed. Additionally, several hundred people have contacted Spire as a result of the letters sent out last year. A proportion of these are having their care reviewed by an independent consultant surgeon and some have been referred for counselling, follow up support or, where clinically appropriate, treatment. Spire Healthcare will continue their review of patients’ care during 2021.

In addition, we are taking three legislative actions to drive up patient safety and ensure care provided by the independent sector is closely scrutinised.

First, prior to the publication of the recommendations of the Independent Medicines and Medical Devices Safety Review the Government acted in June last year to amend the then Medicines and Medical Devices Bill to create the power to establish a UK-wide medical device information system. This system will mean that in future, subject to regulations, we can routinely collect medical device, procedure and outcome data from both NHS and private provider organisations across the UK, ensuring that no patient in the UK falls through the gaps. The Government are also considering how best to supply patients with the details of any device that has been implanted, to ensure they can continue to access that information in the future.

Secondly, following the Independent Medicines and Medical Devices Safety Review the Government are establishing a patient safety commissioner (PSC) for England with responsibility for medicines and medical devices. The main duties and powers of the PSC are detailed in the Medicines and Medical Devices Act which achieved Royal Assent on 11 February 2021 and establishes the commissioner role. The PSC for England will be able to exercise their powers in both the independent sector and the NHS.

Thirdly, the White Paper, published in February 2021 setting out legislative proposals for the Health and Care Bill, announced our intention to extend the remit of the Health Service Safety Investigation Branch to private providers.

The report of the Paterson inquiry shone a light on a set of harrowing events over many years and recommended a way forward to improve safety and quality in both the NHS and the independent sector. I believe it is right that we have taken urgent action where we can, and we will respond in full to the inquiry during 2021.

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Operation in 2019 of Terrorism Acts: Report of the Independent Reviewer of Terrorism Legislation

Tuesday 23rd March 2021 Written Statements

[The Secretary of State for the Home Department (Priti Patel)]

Jonathan Hall QC, the Independent Reviewer of Terrorism Legislation, has prepared a report on the operation in 2019 of the Terrorism Acts.

In accordance with section 36(5) of the Terrorism Act 2006,1 am today laying this report before the House, and copies will be available in the Vote Office. It will also be published on gov.uk.

I am grateful to Mr Hall for his report. I will carefully consider its contents and the recommendations he makes and will respond formally in due course.

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The Abortion (Northern Ireland) Regulations 2021

Tuesday 23rd March 2021 Written Statements

[The Secretary of State for Northern Ireland (Brandon Lewis)]

Yesterday the Minister of State made the Abortion (Northern Ireland) Regulations 2021 which are today being laid before Parliament. The regulations have been made because women and girls in Northern Ireland are still unable to access high-quality abortion and post-abortion care in Northern Ireland.

The regulations have been made to ensure, as required by the Northern Ireland (Executive Formation etc) Act 2019, that all of the recommendations in paragraphs 85 and 86 of the 2018 UN Committee on the Elimination of Discrimination Against Women (CEDAW) report are implemented in Northern Ireland.

We are disappointed with the continuing failure to commission abortion services that are consistent with the regulations we made almost a year ago. After a year of engaging to see positive progress made, with no success, the legal duties included in section 9 of the NIEF Act are such that I have to act now.

The Abortion (Northern Ireland) Regulations 2021 laid in Parliament today give me a power to direct Northern Ireland Ministers and departments or relevant agencies to implement all of the recommendations in paragraphs 85 and 86 of the CEDAW report, consistent with the conditions set out in the Abortion (Northern Ireland) (No.2) Regulations 2020.

We do not take this step lightly. However, the devolution settlement does not absolve us of our responsibility to uphold the rights of women and girls. Our strong preference remains for the Northern Ireland Executive to take responsibility itself for upholding these rights.

It has always been our expectation and preference that the Department of Health would drive forward the commissioning of abortion services. The approach we took was to put in place the legal framework for how abortion services could be accessed and provided, consistent with our legal duties. However, it is crucial that abortion, as a healthcare service, is delivered and overseen locally by the Department of Health and relevant health bodies with the relevant legal powers, policy and operational expertise to do so. This ensures that abortion can be delivered in a sustainable way, and become embedded into the health and social care system in Northern Ireland in the long term.

In March 2020, I wrote to the relevant Northern Ireland Ministers to achieve this, by asking that they work to ensure the implementation of all of the recommendations under paragraphs 85 and 86 of the CEDAW report. We had anticipated this would be acted upon at the earliest opportunity.

Over this past year the Northern Ireland Office has continued to work closely with the Department of Health, and other relevant Northern Ireland departments, trying to progress this work. I, together with the Minister of State, have continued to engage through political channels to encourage positive progress by the devolved Administration.

However, almost one year later, women and girls are still unable to access high-quality abortion and post-abortion care locally in Northern Ireland in all of the circumstances in which they are entitled to under the 2020 regulations.

We understand that managing the covid-19 response has been an immense challenge, and has placed the health and social care system in Northern Ireland under considerable pressure.

I put on record my thanks to the medical professionals who have ensured that women and girls have had some local access to abortion services in Northern Ireland to date, and the organisations that have supported this work, particularly in the current circumstances and wider strains on the health system. This includes the work that Informing Choices Northern Ireland have taken forward on the central access point and counselling service for women and girls since April last year.

However, more needs to be done with respect to formally commissioning abortion services and supporting the rights of women and girls in accessing safe local services and relevant support measures; as well as putting in place clear guidance for medical professionals.

While Parliament considers the regulations, we will continue to engage with the Minister of Health and the Executive to try and find a way forward over the coming weeks before any direction is given.

We have used every opportunity and avenue to encourage progress and offer our support over the past year so we are disappointed that we have reached this impasse. We take this step now to further demonstrate our commitment to ensuring women and girls can safely access abortion services in Northern Ireland.

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HS2 Six-monthly Report to Parliament

Tuesday 23rd March 2021 Written Statements

[The Minister of State, Department for Transport (Andrew Stephenson)]

I wish to make the following statement:

Overview

This is the second bi-annual update to Parliament on the progress of High Speed Two (HS2). It marks one year since the Government gave phase 1 of the scheme, between the west midlands and London, the green light to begin civils construction. The report uses data provided by HS2 Ltd to the HS2 ministerial taskforce for phases 1 and 2a and covers the period between September 2020 and January 2021 inclusive. Copies of this report have been placed in the Libraries of both Houses.

Covid-19 has made this an incredibly challenging year, and the pandemic has had a devastating effect on individuals, our economy and our communities. However, as we look to the future, with the roll-out of the vaccine firmly under way and a road map out of lockdown now in place, this Government are more committed than ever to “build back better”. HS2 remains at the forefront of our long-term investment plan to better connect people and places, boost productivity and create jobs to help rebalance opportunity across the UK.

Just as importantly, HS2 will play a pivotal role in creating a greener alternative to regional air and road travel. This is essential if we are to meet our commitment to bring greenhouse gas emissions to net zero by 2050.

The key achievements of the HS2 programme in this reporting period include:

Progressing the remaining enabling works and mobilising main civils construction for phase 1 while employing covid-safe working practices.

Achieving Royal Assent of the Phase 2a High Speed Rail (West Midlands - Crewe) Bill, cementing in law the Government’s commitment to bring the new high-speed railway to the north of England.

Evolving our approach to community engagement, including an enhanced complaints procedure to address concerns about how HS2’s impact on communities along the line of route is managed.

Speedy implementation of over a quarter of the proposed reforms recommended by the land and property review of November 2020, improving the experience of property owners most immediately and directly affected by HS2.

Supporting over 15,000 skilled jobs and creating more than 500 apprenticeships. Over 2,100 companies now have contracts with HS2 Ltd, with 97% of these being UK-based businesses. At its peak the programme will support over 30,000 jobs and create at least 2,000 apprenticeships.

Establishing HS2 Ltd’s Environmental Sustainability Committee to strengthen oversight and reporting of efforts to limit and mitigate the environmental impacts from the construction of the railway.

Planting over 430,000 trees so far, with the number expected to rise to over 730,000 trees by spring 2021.

Programme update on schedule, affordability and delivery

Schedule

Some schedule pressures on phase 1 have emerged from delays in completing enabling works including issues with completing utilities diversions, postponed land acquisition and access during the first covid-19 lockdown, and slower than planned development of detailed designs by the main works contractors.

HS2 Ltd is currently re-planning its schedule for phase 1 in conjunction with its construction suppliers with a view to mitigating these delays. The schedule pressures reported above will not impact the projected delivery into service date range of 2029 to 2033 set last year, but further cost pressures could still emerge if mitigation activity is required. The re-planning exercise is due to conclude in the spring and I will update Parliament on its outcome in my next report. We should continue to remain cautious of the accuracy of long-range estimates this early in a 10-year programme.

Affordability

The overall budget for phase 1, including Euston, is £44.6 billion (2019 prices). This is composed of the target cost of £40.3 billion and additional Government-retained contingency of £4.3 billion. The target cost includes contingency delegated to HS2 Ltd of £5.6 billion for managing the risk and uncertainties that are an inherent part of delivering major projects.

The target cost for phase 1 remains at £40.3 billion. Around £11.0 billion (actual prices) has been spent to date, including land and property provisions. Approximately £12.6 billion (2019 prices) has additionally been contracted, with the remaining amount yet to be contracted.

To date HS2 Ltd has drawn £0.4 billion of its £5.6 billion delegated contingency to specific additional costs, which represents 4% of the overall contingency for phase 1, and reflects an increase of £0.2 billion since my last report. HS2 Ltd is currently reporting potential cost pressures of around £0.8 billion over and above this. If these, or other costs, come to pass, then they would be managed from within the existing total budget using the remaining HS2 Ltd delegated contingency. In the case of verified cost increases resulting from covid-19, these will be managed from within the Government-retained contingency.

The cost pressures currently being reported by HS2 Ltd which may require a call on contingent if not mitigated are:

An estimate of £0.4 billion, predominately due to slower than expected mobilisation of main works civils contractors, associated with delays to approvals of designs, planning consents, protestor action and some covid-19 impacts.

As already reported in the autumn report to Parliament, an estimate of £0.4 billion that relates to Euston station remains. Work to consider opportunities, efficiencies and scope reductions to address potential pressures is now under way. This may be an underestimate of the unmitigated pressure, so the Department has asked HS2 Ltd to provide a revised estimate once it has concluded its initial design work on the revised design as set out below.

My last report to Parliament included £0.4 billion from expected increases in the scope and duration of enabling works. These costs are now expected to be incurred and so are not shown as pressures but have instead been taken into the core cost estimate. They will be funded through surplus provision within HS2 Ltd’s core budget rather than from its delegated contingency. Estimates of the impact of covid-19 are set out below.

Other pressures will arise as the programme progresses, some of which may crystallise into additional costs that will need to be covered from the contingency within the existing budget, and some of which will be mitigated or avoided.

Over the last six months HS2 Ltd has made progress on a programme of opportunities for efficiencies designed to identify and realise tangible savings in delivering the agreed scope of phase 1. From a deeper pool of potential opportunities, HS2 Ltd has so far identified up to £0.2 billion to pursue to the next stages of development. Going forward I will report on progress towards realisation of these opportunities as well as the identification of others through this efficiency programme.

Delivery

On phase 1 the focus has primarily been on progressing the remaining enabling works and preparatory works, and the start of main works. This includes dedicated power at launch sites for the tunnel boring machines (TBMs) by the M25 and Long Itchington in Warwickshire, and moving two huge modular bridges into place at the Birmingham Interchange station site. The first pair of TBMs, Florence and Cecilia, will launch this summer.

Elsewhere, progress continues to be made on the four new HS2 stations. At Euston, work is under way to develop an optimised design and delivery strategy, alongside work by the Euston Partnership to integrate the HS2 and Network Rail stations and wider placemaking across the Euston campus. The Department has instructed HS2 Ltd to investigate whether building the station in a single construction stage can speed up delivery and address cost pressures. Notwithstanding this, bringing the station fully back within its existing budget presents a significant challenge. The initial stage of this work is expected to conclude in the coming months, at which point the Government will confirm any design changes and set out their intended way forward at Euston.

The start of main construction of Old Oak Common station has now been approved and excavation work for the HS2 underground platforms can begin. I also note the High Court’s dismissal of Bechtel Ltd’s legal challenge to the Old Oak Common station construction partner award, which found that HS2 Ltd’s procurement process was in accordance with the rules of the tender and procurement law.

Tender evaluation is under way ahead of the planned award by the summer of a construction partner for Birmingham Curzon Street station and tendering for a construction partner at Birmingham Interchange station is expected to begin this summer. Budget 2021 announced £50 million of funding to develop transport proposals around Birmingham Interchange. This will be matched by £45 million of funding from Arden Cross Ltd and Solihull Metropolitan Borough Council. This will support the goal of the West Midlands Combined Authority, by reconfiguring planned car parking at the regional hub station, releasing 28 hectares of land space for new businesses, homes and jobs in the area.

Qualification of bidders is under way for the majority of the rail systems packages for phases 1 and 2a ahead of inviting tenders. HS2 Ltd is finalising the procurement of the new HS2 rolling stock for phases 1 and 2a, with the contract to be awarded later this spring.

I am a very pleased to report that the HS2 Phase 2a Act, for the section of the route between Lichfield and Crewe, was given Royal Assent in February, after its passage through Parliament. This represents a major milestone for the programme and HS2 Ltd can now begin accessing and acquiring land for the necessary construction works as well as taking forward early environmental and enabling works.

Phase 2a will bring high-speed services to the north, helping to realise the benefits of the whole programme and to underpin future phases of the scheme, while also supporting regional economic growth through the construction stage.

Local consultation on the scheme was undertaken during February and I will publish the consultation report in April before detailing the response to its findings in June, following the election period.

With formal agreement on the scope of the phase 2a scheme now set, the funding and schedule ranges will be finalised alongside the delivery model for the construction works. I will provide more information to Parliament once this work has concluded.

Before the end of spring, the Department will publish the integrated rail plan for the north and midlands (IRP) which will consider how best to deliver and sequence HS2 phase 2b, Northern Powerhouse Rail, and other major rail schemes including schemes within midlands engine rail such as midlands rail hub, to ensure transformational rail improvements are delivered to passengers and communities more quickly.

Preparations are under way for a Hybrid Bill for the western leg (Crewe to Manchester) and supporting outline business case (OBC) to be deposited in Parliament in early 2022, or sooner if possible. Further updates on cost and schedule will be provided at the time the OBC is published.

Impacts from covid-19

Although covid-19 continues to pose a considerable challenge to the programme, HS2 Ltd and its supply chain continues to adapt positively. In the early stages of the pandemic, HS2 Ltd successfully kept a high proportion of its sites open and operating safely and at the time of writing this report 100% of HS2 sites are open, in part due to the collaboration and innovation between HS2 Ltd and its supply chain through initiatives such as rapid testing and the introduction of new social distancing technology. Health and safety guidance at work sites continues to be rigorously followed and remains under constant review. Nothing is more important than the wellbeing of the communities we are working in and the safety of everyone working on HS2.

HS2 Ltd’s initial estimates suggest that the financial impact of covid-19 on the cost of delivering phase 1 up to December 2020 is between £0.3 billion and £0.4 billion, largely as a consequence of schedule prolongation from access delays and reduced productivity.

A proportion of this estimate is already captured within the cost pressures that I have set out above. The full impact of covid-19 on cost and schedule will continue to be assessed, including work to disaggregate covid-19 impacts from other cost and schedule impacts on the programme. The Department will be scrutinising these costs very carefully, and only validated and unavoidable costs arising from covid-19 will be funded from the Government-retained contingency, and therefore covered by the existing HS2 budget. I will continue to update Parliament through my reports as this work progresses.

Local community impact and engagement

Since my appointment as Minister for HS2 I have been clear that managing the programme’s impact on communities along the line of the route is one of my key priorities. That is why last autumn I commissioned a detailed review of the acquisition and compensation process for land and property affected by HS2. The conclusions of the review, detailing opportunities for change across a wide variety of policies and activities, were published in November and will ensure that there is a renewed focus on those people who are being directly impacted by the new railway.

The proposals vary in scale and context, but all seek to improve the experience of property owners most immediately and directly affected by HS2 by improving existing processes and interaction with the public. The Department has worked quickly on implementing the proposals, in close conjunction with HS2 Ltd, the residents’ commissioner (Deborah Fazan) and relevant Government Departments, with 25% now in place. I expect to begin a public consultation later this spring to focus on aspects of the proposals that require further engagement. Alongside the land and property review, I am continuing to engage closely with parliamentary colleagues and the communities they represent.

Due to the scale and nature of the HS2 project, some impacts of construction on line of route communities are unfortunately unavoidable. This January, at the Transport Select Committee, I heard first-hand how HS2 construction is impacting on communities. The testimonies I heard were powerful and strengthened my resolute commitment to ensure that HS2 Ltd properly informs and consults communities and minimises negative impacts wherever possible. I have therefore tasked HS2 Ltd to look again at the way it engages communities to improve the responsiveness, sensitivity and objectivity of its approach.

In response, HS2 Ltd is deploying a package of measures to strengthen its community handling approach including:

A unified single management system for community engagement and complaints handling across HS2 Ltd and the supply chain, so there is a single consistent record for all organisations operating in a single location.

Additional proactive local communications to provide notice and raise awareness of HS2 activity in impacted communities.

Shortened HS2 Ltd helpdesk response times so that construction issues can be picked up, assessed and mitigated quickly.

New area-based delivery unit managers with geographical responsibility for joining up construction contractors and communities to prevent and tackle local issues.

New briefing materials to alert MPs and councillors of the agreed single points of contact along the phase 1 and 2a routes so issues can be escalated if they are not resolved in the first instance.

Enhanced engagement and assurance from the construction commissioner (Sir Mark Worthington) and the residents’ commissioner to provide independent advice on potential improvements to HS2 Ltd complaint handling and community engagement operations.

I have furthermore established a small team of construction inspectors reporting to the Department to support the assurance of the delivery of works along the route. An important part of their role will also be to provide a capability to investigate intractable or persistent construction issues working independently of HS2 Ltd and its suppliers where needed.

I expect these measures to improve engagement and responsiveness in relation to avoidable impacts of construction on local communities. I will continue to review this and remain committed to taking further action if necessary.

Environmental Impact

Another of my key pledges as HS2 Minister is to limit the unavoidable impact of HS2 construction on the natural environment both in terms of direct impacts on biodiversity and its carbon impact.

The first report of the HS2 Ltd Environmental Sustainability Committee will be published in the autumn. The approach and content of the report will be informed by the global reporting initiative methodology, and will also be shaped by seeking input from Natural England, the Environment Agency, the Forestry Commission, the HS2 Independent Design Panel and members of HS2 Ltd’s Ecology Review Group. The Government have also given a statutory commitment to provide an impact assessment of construction on ancient woodland within the report, building on previously conducted assessments. The environmental impact data in the report will be verified externally.

Alongside the new Committee, HS2 Ltd launched its “Green Corridor Prospectus” in December, providing information to the public on projects along the route which are being introduced to mitigate and compensate for the environmental impact of HS2’s construction. This includes over 30 projects funded through the community and environment fund, and the business and local economy fund, which add benefit over and above committed mitigation and statutory compensation.

Further to the commitments made in my last report to support biodiversity improvements on phase 2a, the Department and HS2 Ltd have initiated a study to investigate options to consider whether and how we might move the HS2 phase 2b western leg scheme from seeking no net loss to aiming to deliver net gains in biodiversity.

HS2 Ltd has become the first UK transport client organisation to achieve PAS 2080 accreditation a gold standard for carbon management across the globe. It will continue its work to reduce carbon emissions during construction and operation ahead of COP26 later this year.

Forward look

As well as continued focus on its construction programme for phase 1, the next six months will see HS2 Ltd award contracts for a construction partner at Birmingham Curzon Street and for the supply of the new HS2 rolling stock. Work to identify affordable design and delivery arrangements for Euston station is also expected to progress.

On phase 2a we will conclude work on a preferred delivery model for the construction stage as well as finalising the funding and schedule ranges for the project’s schedule and cost. Work on the legislation and business case for the phase 2b western leg will also continue and the integrated rail plan will be published this spring.

I will continue to engage closely with Members of Parliament and will provide my next report to Parliament in October 2021.

Financial Annex

Expanding DWP Services

Tuesday 23rd March 2021 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

As part of the Government’s ongoing commitment to support claimants back into work, DWP is moving at pace this spring and summer to introduce new jobcentres, as a direct response to the pandemic.

On top of the 13,500 new work coaches who will be in place by the end of this financial year, this expansion of our Jobcentre network will bolster existing capacity, enabling work coaches to provide tailored, face-to-face support in a covid-secure environment. This expansion will drive forward our ambitious £30 billion Plan for Jobs, helping people back into the labour market right across the UK.

During the pandemic, DWP successfully pivoted to a more multi-channelled approach, offering more digital support in line with social distancing measures. However, as restrictions ease, it is vital we adapt our services and reintroduce face-to-face support, given that we know how effective this has been for our claimants in the past.

As the economy recovers, we will review the need for these temporary sites on an ongoing basis, to ensure we are continuing to strike the right balance between providing essential services for claimants and delivering value for money for the taxpayer.

This is not about reversing previous decisions on the broader renewal of the DWP estate, rather it is a temporary measure, in direct response to the pressures the pandemic has placed on the labour market.

These new sites provide a high-quality, modern and digitally enabled environment for both colleagues and customers. As part of our design requirements, we are reducing the environmental impact, for example, by increasing the energy performance certificate rating across sites. This is something DWP is committed to, as part of the programme to review and renew our estates.

The expansion programme will itself create a further 1,500 ancillary jobs when the sites open, as well as construction jobs generated by the work needed to repurpose the buildings and the supply chain to furnish them, boosting local economies and providing crucial support across the country.

The sites being secured are predominantly in major centres. All new sites meet the planning requirements for a jobcentre, which means they are fully accessible for colleagues and customers, with good transport links.

Leases have already been secured on 80 sites. A list of these sites can be found on gov.uk, and will be continually updated as and when new site leases are agreed.

[HCWS876]