Written Statements

Friday 26th November 2021 Written Statements

Friday 26 November 2021

Contingent Liability: Bulb Energy

Friday 26th November 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Contingent liability (indemnity)



Today I will lay before Parliament a departmental minute describing a contingent liability arising from an indemnity for the energy administrators acting in the special administration regime for Bulb Energy Ltd (Bulb).

It is normal practice when a Government Department proposes to undertake a contingent liability of £300,000 and above, for which there is no specific statutory authority, for the Department concerned to present Parliament with a minute giving particulars of the liability created and explaining the circumstances.

I regret that I have not been able to follow the usual notification timelines to allow consideration of these issues in advance of issuing the indemnity, but the fast moving nature of Bulb’s situation has required a rapid response to protect consumers.

Bulb entered the energy supply company special administration regime on 24 November 2021. Energy administrators were appointed by court to achieve the statutory objective of continuing energy supplies at the lowest reasonable practicable cost until such time as it becomes unnecessary for the special administration to remain in force for that purpose.

My Department has agreed to provide an indemnity to the energy administrators in respect of personal liabilities they might incur in the exercise and performance of their powers and duties as administrator. I will update the House if the indemnity is called upon.

The legal basis for an indemnity covering the energy administrators’ personal liability is section 166 of the Energy Act 2004, as applied by section 96 of the Energy Act 2011.

HM Treasury has approved the arrangements in principle.

Contingent liability (letter of credit)

Today I will lay before Parliament a departmental minute describing a contingent liability arising from the issuance of a letter of credit for the Energy Administrators acting in the special administration regime for Bulb Energy Ltd (‘Bulb’).

It is normal practice when a Government Department proposes to undertake a contingent liability of £300,000 and above, for which there is no specific statutory authority, for the Department concerned to present Parliament with a minute giving particulars of the liability created and explaining the circumstances.

I regret that I have not been able to follow the usual notification timelines to allow consideration of these issues in advance of issuing the letter of credit, but the fast-moving nature of Bulb’s situation has required a rapid response to protect consumers.

Bulb entered the energy supply company special administration regime on 24 November 2021. Energy administrators were appointed by court to achieve the statutory objective of continuing energy supplies at the lowest reasonable practicable cost until such time as it becomes unnecessary for the special administration to remain in force for that purpose.

My Department has agreed to provide a facility to the energy administrators, with a letter of credit issued, with my approval, to guarantee such contract, code, licence, or other document obligations of the company consistent with the special administration’s statutory objective. I will update the House if any letters of credit are drawn against.

The legal basis for a letter of credit is section 165 of the Energy Act 2004, as applied and modified by section 96 of the Energy Act 2011.

HM Treasury has approved the arrangements in principle.

[HCWS425]

Departmental Contingent Liability Notification: Recovery Loan Scheme

Friday 26th November 2021 Written Statements

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

I am tabling this statement for the benefit of right hon. and hon. Members to bring to their attention the details of the extension to the recovery loan scheme (RLS) announced by the Chancellor of the Exchequer on 27 October 2021.

RLS is facilitated by the Government-owned British Business Bank and delivered through its delivery partners. Under the extension, lenders will offer facilities of up to £2 million to support businesses that are affected by the coronavirus outbreak. There will be no limit on the number and aggregate value of loans that can be made under the scheme.

The extension covers the period 1 January to 30 June 2022. Under the extension, the following changes will come into force:

The percentage of the remaining balance of each loan that is guaranteed by the Government will be 70 per cent, changed from 80 per cent.

The maximum facility size will be £2 million per business, changed from £10 million.

The scheme will only be open to small and medium sized enterprises (annual turnover less than £45 million).

Otherwise, scheme parameters are unchanged. As previously:

The minimum facility size will be £25,001 for loans and overdrafts and £1,000 for asset and invoice finance.

Businesses will be required to meet the costs of interest payments and any fees from the outset.

Businesses that have made use of the previous coronavirus loan schemes will be able to access the scheme.

The lender must establish that the borrower has a viable business proposition assessed according to its normal commercial lending criteria. This may, but is not required to, be determined without regard to any concerns over the borrower’s short-to-medium term business performance due to the uncertainty and impact of coronavirus.

Our central estimate for lending for the initial scheme period—6 April to 31 December 2021—has been updated to £1.6 billion, meaning a maximum contingent liability of £1.28 billion.

The maximum contingent liability for assumed additional lending under the extension of £850 million (our central estimate) is £595 million.

I will be laying a departmental minute today containing a description of the liability undertaken.

[HCWS424]

Events Research Programme

Friday 26th November 2021 Written Statements

[The Secretary of State for Digital, Culture, Media and Sport (Ms Nadine Dorries)]

The Government have published today the final reports from the science-led events research programme.

The events research programme has gathered evidence on the risks associated with events-related transmission routes of the covid-19 virus, characteristics of events and surrounding activities, and the extent to which mitigation measures could be effectively implemented and address these risks.

The events research programme was commissioned by the Prime Minister in February 2021 as part of the Government’s road map out of lockdown. The programme consisted of three phases. Between April and July a total of 31 pilot events were conducted in England across a range of settings and sectors, with over two million participants involved in the programme. The programme used an innovative and collaborative approach involving leading university research teams, independent scientific and ethics advisers working in partnership with multiple Government Departments and agencies, national and local public health leads, events industry stakeholders and 27 local authorities.

The findings of the events research programme have already been instrumental to inform both Government and industry on how to conduct events safely, and this publication further strengthens the evidence base already generated by the events research programme.

Full copies of these findings can be found on gov.uk. and copies will be placed in the Libraries of both Houses.

[HCWS426]

Covid-19: Travel Restrictions

Friday 26th November 2021 Written Statements

[The Secretary of State for Health and Social Care (Sajid Javid)]

The Government are taking decisive precautionary action against a new covid-19 variant by introducing travel restrictions on arrivals from South Africa, Botswana, Lesotho, Eswatini, Zimbabwe, Namibia from midday on Friday 26 November. This precautionary move comes as variant B.1.1.529 is declared a Variant under Investigation (VUI) by the UK Health Security Agency (UKHSA). The variant includes a large number of spike protein mutations as well as mutations in other parts of the viral genome. These are potentially biologically significant mutations which may change the behaviour of the virus with regards to vaccines, treatments and transmissibility. More investigation is required.

From midday on Friday 26 November, non-UK and Irish residents who have been in these countries in the previous 10 days will be refused entry into England. This does not apply to those who have stayed airside and only transited through any of these countries while changing flights.

UK and Irish residents arriving between midday Friday 26 November and 4am Sunday 28 November from these six countries will be required to self-isolate at home for 10 days. They must take PCR tests on day 2 and day 8 post-arrival. These can be NHS PCR tests and passengers should take them even if they have already booked or taken their lateral flow test.

UK and Irish residents arriving from 4 am Sunday must isolate in a Government approved facility for 10 days. During their stay, they will be required to take a coronavirus test on day 2 and day 8.

A temporary ban on commercial and private planes travelling from the six countries will also come into force at midday on Friday until 4am Sunday to reduce the risk of importing this new variant under investigation while hotel quarantine is stood up. This excludes cargo and freight without passengers.

The UK Government thank the Government of South Africa for their surveillance of this variant and its transparency. Meanwhile the UK Health Security Agency continues to monitor the situation closely, in partnership with scientific and public health organisations across the world, and we will offer to work collaboratively with the six countries that have been currently placed on the UK red list to understand the virus and possible mitigations.

[HCWS427]

Transport Update

Friday 26th November 2021 Written Statements

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

In October 2020, the Prime Minister asked Sir Peter Hendy to undertake a detailed review of how the quality and availability of transport infrastructure across the UK can support economic growth and quality of life.

Since then, Sir Peter and his panel have engaged with a multitude of industries, individuals, and institutions across the UK, and have drawn on their evidence, experiences, and views to develop a set of recommendations. Today, the recommendations are being published.

The UK Government are extremely grateful to Sir Peter for his leadership of the review and to all the members of his advisory panel for their expert input. It is a thorough analysis of the current state of transport infrastructure in the UK and presents ambitious solutions to improving connectivity. The report published today includes recommendations that the Government should:

design and implement a strategic transport network for the whole of the UK, with funding commitments targeted at parts of the network that require it the most;

upgrade the West Coast Main Line north of Crewe to improve journey times and capacity and to enable HS2 to better serve connectivity between Scotland and England;

seek to work with the Scottish Government to conduct an assessment of the East Coast rail and road corridor to determine appropriate investments for better connectivity between Scotland and England;

offer funding to upgrade the key A75 link to improve freight and passenger connectivity between Great Britain and Northern Ireland;

seek to work with the Welsh Government to develop improvements to connectivity between North Wales and North West England on the A55, M53 and M56 roads and on the North Wales Coast Main Line, utilising HS2 and electrification to better serve North Wales, and for connectivity with Northern Ireland and the Republic of Ireland;

relieve congestion on the M4 South Wales and England corridor by upgrading and building new rail stations, supporting the Welsh Government’s package of public transport improvements and easing capacity restrictions at the junction of the M4-M5;

develop a package of measures to improve rail journey times and capacity between Cardiff and Birmingham and beyond;

improve connectivity to and from Northern Ireland through the development of a long-term pipeline of infrastructure investment, better rail connections to airports and by supporting the Northern Ireland Executive in their participation in the All-Island Strategic Rail Review;

take measures to improve domestic aviation connectivity through revising subsidy rules, reducing tax and by intervening in the assignment of slots at London airports, and;

secure better rail connectivity for freight across the UK with ports, and freeports as they are established.

Sir Peter was also asked to assess the technical engineering feasibility of constructing a fixed transport link between Great Britain and Northern Ireland. The UK Government would like to thank Professor Douglas Oakervee CBE and Professor Gordon Masterton OBE for their leadership of this work. Sir Peter’s work found that a bridge or a tunnel between Northern Ireland and Great Britain is feasible. But with today’s technology and existing infrastructure, Sir Peter has concluded that the benefits would not outweigh the costs. He is therefore recommending that further work on the fixed transport link should not progress beyond this feasibility study. We accept this recommendation; it is a visionary project whose time might come in future decades, but not now.

The Government’s levelling up vision can only be achieved if the transport system across the UK on which we all rely supports and drives economic growth, job creation and social cohesion.

The UK Government wholly welcomes Sir Peter’s report and invites the Scottish Government, Welsh Government and Northern Ireland Executive to work closely with us, in a spirit of collaboration and co-operation, to consider the review's recommendations and to agree how a new strategic transport network for the whole United Kingdom and the vital upgrades highlighted by Sir Peter can be taken forward to strengthen transport connectivity for the benefit of all parts of the UK.

As we build back better, the Government is determined to do so in a way that levels up across the UK, bringing communities across the country even closer together. Wherever you live in the UK, a connected local and national transport network will bring you closer to all the social and economic opportunities available.

Sir Peter's review is a landmark study along that path to a better-connected future. The UK Government thanks him, and his team for their excellent work. We will reflect on his conclusions, discuss them with our colleagues across the UK, and aim to publish a full response to the review in early 2022.

[HCWS423]