Written Statements

Wednesday 24th January 2024 Written Statements

Wednesday 24 January 2024

Smarter Regulation: Improving Price Transparency and Product Information for Consumers

Wednesday 24th January 2024 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Today, my Department has published the Government’s response to the consultation on “smarter regulation: improving price transparency and product information for consumers”. The consultation sought views and evidence on steps the Government could take to improve price and information transparency for consumers.

The response sets out our intent to reform the Price Marking Order 2004, and to legislate on hidden fees—“drip pricing”, fake reviews, online interface orders and interim online interface orders.

The Government plan to:

Reform the Price Marking Order 2004 (Retained EU Law), simplifying the requirements making it easier for businesses to comply with and for consumers to compare prices of products;

facilitate the DEFRA, Scottish, and Welsh Government plans to create deposit return schemes;

introduce new rules on hidden fees—“drip pricing”, by requiring that unavoidable and mandatory fees be included in the headline price or indicated at the start of the purchasing process;

prohibit commercial practices related to fake reviews; and

extend the power to apply for online interface orders and interim online interface orders to additional public enforcers.

I am placing a copy of the consultation response in the Libraries of the House.

[HCWS203]

Product Safety and Metrology: (Amendment) Regulations 2024

Wednesday 24th January 2024 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)]

Today, I am updating Parliament on developments to the Government’s approach to the UK Conformity Assessment (UKCA) product marking and plans to continue recognition of ‘conformité européenne’ (CE) beyond 31 December 2024. The Government intend to lay legislation in spring to provide businesses with the flexibility to place goods that fall under 21 product regulations and meet current EU requirements on the market in Great Britain. Later in the year, the Government also intend to introduce greater labelling flexibility, including the option for manufacturers to use digital labelling. This forms part of the Government’s smarter regulation programme of regulatory reform, designed to improve regulation across the board, ensuring it is effective and used only where necessary and proportionate.

I announced in August 2023 that the Government plan to extend CE recognition indefinitely for the product regulations managed by the Department for Business and Trade. Since then, we have continued to engage with industry. We have listened to businesses—both in the UK and those who supply the UK from abroad, and we are taking further action. I am today announcing that the Government intend to lay legislation, this spring, using powers under the Retained EU Law Act 2023. This legislation will support economic growth and provide businesses with greater flexibility to continue to place products on the market in Great Britain using either CE or UKCA marking after 31 December 2024. In Northern Ireland, the CE mark is and will remain recognised, pursuant to the Windsor Framework.

The continued recognition of current EU requirements, including the CE and reversed epsilon markings, will apply to 21 product regulations, including the 18 product regulations owned by the Department of Business and Trade, previously announced on 1 August 2023. Following feedback from industry, we are also continuing CE recognition for a further three regulation, which will now include: the Ecodesign for Energy-Related Products 2010 Regulations—Department for Energy Security and Net Zero; the Explosives Regulations 2014—Department for Work and Pensions, Health and Safety Executive; and the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations 2012—Department for Environment, Food & Rural Affairs.

The Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations 2012 is included within this announcement. However, we are taking a two-part approach given the role of exemptions in these regulations. Where products meet the maximum concentration values set out in Annex II to the EU RoHS Directive (2011/65/EU), we will continue to recognise current EU regulations and CE marking. Where a product relies on an exemption, we will also continue to recognise current EU regulations and CE marking provided there is an equivalent exemption under the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Regulations 2012.

The UK Government will also introduce new measures to introduce a ‘Fast track UKCA’ process, allowing manufacturers to use the UKCA marking to demonstrate compliance in Great Britain with either UKCA product requirements or EU product requirements where they are recognised. Where products are covered by multiple regulations, a mixture of both UKCA and CE conformity assessment procedures can be used. This is designed to provide longer term certainty and flexibility for businesses if the UK mandates UKCA marking for certain regulations in the future.

The Government also recognise the important role that UK conformity assessment bodies play in ensuring the compliance of goods to UKCA requirements and their role in supporting innovation. We will continue to work with the UK Accreditation Service and industry to monitor capacity of the conformity assessment market.

In response to feedback from businesses through engagement and the Product Safety Review consultation, the Government also intend to provide for permanent labelling flexibility to enable importers of goods from the EU and the rest of the world to supply their details indelibly, on an accompanying document, the packaging or on an adhesive label. The Government will also introduce the option for manufacturers to use digital labelling. Businesses will be able to include the UKCA marking, manufacturer details, importer details and the declaration of conformity via, for example, a QR code attached to the product via a label. In scanning the code, the information can be accessed by a website or app. We will set out further details in due course.

The Government are taking a tailored approach to support the interests of British businesses and ensure consumers are protected, taking account of the specialist nature of each regulation. This means that not all product regulations covered by the CE or UKCA regime will be included in this legislation. Separate approaches apply to products covered by: the Medical Devices Regulations, the Construction Products Regulations, the Cableway Installations Regulations, the Carriage of Dangerous Goods and Use of Transportable Pressure Equipment (Amendment) Regulations, the Railways (Interoperability) Regulations, Unmanned Aircraft Systems (UAS) Regulations, and the Merchant Shipping (Marine Equipment) Regulations.

The UK Government will continue to monitor any regulatory changes the EU may make in future, and we will continue to work with industry to ensure UK regulatory policy reflects the interests of British businesses and consumers. We recognise the importance of being able to mandate UKCA marking, and we may choose to do this in the future for certain regulations where this is in the interests of British businesses, consumer safety, or environmental protection.

This announcement is in line with the REUL Act Report published Monday 22 January 2024, which outlines the progress the Government have made in reforming and revoking retained EU over the last six months.

[HCWS202]

Telegraph Media Group: Public Interest Intervention Notice

Wednesday 24th January 2024 Written Statements

[The Secretary of State for Culture, Media and Sport (Lucy Frazer)]

My Department has today written to solicitors acting for the Barclay family and RedBird IMI, the current and proposed new owners of Telegraph Media Group, to inform them that I am “minded to” issue a new public interest intervention notice.

This week, RedBird IMI has made changes to the corporate structure of the potential acquiring entities of Telegraph Media Group and this creates a new relevant merger situation. RedBird IMI asserts that no changes have been made to the identity, nature or economic interests of the ultimate shareholders.

I have noted the very late stage in the process at which information about this new corporate structure has been shared and implemented. I do not consider that this is conducive to the full and proper functioning of the process. I expect the parties to ensure that all the relevant authorities have timely access to all relevant information, and in sufficient detail, in order that they, and subsequently I as Secretary of State, can make our determinations.

The new public interest intervention notice that I am minded to issue relates to concerns that I continue to have that there may be public interest considerations—as set out in section 58 of the Enterprise Act 2002—that are relevant to the planned acquisition of Telegraph Media Group by RedBird IMI, and that these concerns warrant further investigation.

A “minded to” letter has therefore been issued to the parties on the following public interest ground specified in section 58 of the Enterprise Act 2002:

(2A) The need for—

(a) accurate presentation of news; and

(b) free expression of opinion;

in newspapers is specified in this section.

These letters, and other relevant updates, will be published on gov.uk.

The “minded to” letter invites further representations in writing from the parties and gives them until 9 am on Thursday 25 January to respond. My Department will publish versions of these “minded to” letters on gov.uk in due course.

If I decide to issue a new intervention notice, the next stage would be for Ofcom to assess and report to me on the public interest concerns and for the Competition and Markets Authority (CMA) to assess and report to me on whether a relevant merger situation has been created and any impact this may have on competition. Following these reports, I would need to decide whether to refer the matter for a more detailed investigation by the CMA under section 45 of the Enterprise Act 2002.

The public interest intervention notice issued on 30 November 2023 and the pre-emptive action order made on 1 December 2023 remain in force.

DCMS will keep Parliament updated on progress with this media merger case.

[HCWS207]

Biometrics and Surveillance Camera Commissioner: Annual Report 2022-23

Wednesday 24th January 2024 Written Statements

[The Minister for Crime, Policing and Fire (Chris Philp)]

I am pleased to announce that my right hon. Friend the Home Secretary is today publishing the annual report of the Biometrics and Surveillance Camera Commissioner.

The Biometrics and Surveillance Camera Commissioner, who is appointed by the Home Secretary under the Protection of Freedoms Act 2012, covers independent statutory roles.

The report covers the exercise of the statutory functions over the reporting year.

This was the final report by Professor Sampson before leaving his post on 31 October 2023. I am grateful for his contribution to this important area of work.

The report has been laid before the House and it will be available from the Vote Office and on gov.uk.

[HCWS204]

Licensing Act: Age Verification: Digital Identity, Technology and Remote Sales

Wednesday 24th January 2024 Written Statements

[The Minister for Crime, Policing and Fire (Chris Philp)]

The Government are today launching a consultation on whether to allow digital identities and technology to play a role in age verification for alcohol sales, as well as whether to amend legislation in order to specify that for sales of alcohol that do not take place face to face, age verification should take place at the point of delivery as well as sale.

The Licensing Act 2003 covers the retail sale and supply of alcohol. One of the licensing objectives that the Act seeks to uphold is the protection of children from harm, meaning that alcohol must not be sold to someone under 18. Secondary legislation made under the Act specifies that if anyone appears to be under 18, they need to produce identification which bears their photograph, date of birth and either a holographic mark or ultraviolet feature. In practice this means that currently only physical identity documents are permitted.

The Government are keen to enable the secure and appropriate use of new technologies that can improve the experience of consumers and retailers. However, the current wording of the Act does not allow technology to play a part in the age-verification process for alcohol sales. A person must make the decision on whether an individual is old enough to purchase alcohol.

We are therefore consulting on whether to amend the Act so as to allow digital identities and technology to play a role in age verification. The need for robust national standards for digital identities and technology remains paramount in order to provide confidence to retailers and consumers alike that they are fit for purpose. Any change would reflect the wider cross-Government position on the use of digital identities and technology for the sale of age-restricted products and will take effect only once there are Government-approved national standards in place.

We are also considering whether the Act adequately covers transactions that do not take place face to face. Currently, the Act only sets out a requirement to verify age at the point of sale or appropriation to a contract, not at the point of delivery. We are reviewing whether this is still right and whether there should additionally be checks at the point of delivery and/or service. We are consulting on whether to amend the Act so that it is explicit about when age verification must take place.

The consultation will run for eight weeks and the Government will publish their response in due course. A copy of the consultation will be placed in the Libraries of both Houses and published on gov.uk.

[HCWS205]

Local Government Finance

Wednesday 24th January 2024 Written Statements

[The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)]

Today, the Government have announced additional measures for local authorities, worth £600 million. This includes £500 million of new funding for councils with responsibility for adult and children’s social care, distributed through the social care grant. Further details on the exceptional provision of this funding will be set out at the upcoming Budget.

Taking into account this new funding, local government in England will see an increase in core spending power of up to £4.5 billion next year, or 7.5% in cash terms—an above-inflation increase—rising from £60.2 billion in 2023-24 to up to £64.7 billion in 2024-25.

By making progress on the Government’s plan to halve inflation, grow the economy and reduce debt, we now can provide this extra funding to councils to continue to provide vital services for their communities.

Introduction

On 18 December, I published a consultation on the provisional 2024-25 local government finance settlement. This consultation’s proposals made available over £64 billion to local authorities, an increase in core spending power of almost £4 billion, or 6.5% in cash terms on 2023-24.

The consultation ran until 15 January 2024 and we received 267 responses. Alongside this, the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for North Dorset (Simon Hoare), engaged extensively with colleagues across the House, meeting over 90 MPs and local government leaders to understand their views. I am grateful to all who responded.

We know that councils have faced cost pressures as a result of high inflation. That is why the Prime Minister has prioritised halving it—it is important that we stick to the plan. The Government have also listened to the sector and to the issues raised by Members of the House. For this reason, I am today announcing a wide-ranging package of support for local government.

First and foremost, I am pleased to announce an additional £500 million of funding for local government to deliver social care. This is further to the £1 billion in additional funding announced at the autumn statement 2022 and in July 2023. It will enable councils to continue to provide crucial social care services for their local communities, particularly for children.

Moreover, at the final settlement, I will set out plans to:

increase the funding guarantee to 4%, ensuring that all authorities see a minimum increase in core spending power of 4%, before local decisions on council tax—a key ask of district councils. Local authorities should of course be mindful of cost of living pressures when taking any decisions relating to council tax;

support rural councils by increasing the rural service delivery grant;

provide support to authorities experiencing significant difficulties because of internal

drainage board levies; and

provide additional funding for the Isle of Wight and the Isles of Scilly, in recognition of their unique circumstances.

These measures mean the local government finance settlement for 2024-25 will make available over £64.7 billion, an increase of 7.5% in cash terms on 2023-24. Representatives of all tiers for local government have expressed support for these measures, which will provide critical support across the sector to deliver services.

Social care

The Government recognise that pressures on social care, including for children, have increased significantly. In February 2023 the Government published their strategy for children’s social care reform. After listening to the sector’s consultation responses, and to make sure that councils can continue to deliver these services while we build the evidence for reform, I have today announced an additional £500 million of funding for local government. This will be allocated through the social care grant, which is ringfenced for adult and children’s social care. Where possible, councils should invest in areas that help place children’s social care services on a sustainable financial footing, while being mindful of the level of adult social care provision. This includes investment in expanding family help and targeted early intervention, expanding kinship care, and boosting the number of foster carers. This increase in funding will be reflected in the local authority allocations published at the final local government finance settlement.

This funding, in turn, will reduce pressures on other areas of children’s services, such as home to school transport, where we recognise there has been a significant increase in pressures for special educational needs and disability services.

Funding guarantee

We know that the whole sector is facing pressures, and we need to support all tiers of government to provide the services on which our communities rely. We have listened to the asks of the sector during the consultation period and, as part of this commitment, we are increasing the funding guarantee. This means councils will see their core spending power increase by a minimum of 4% before they have taken any local decisions on council tax. This is an increase from the 3% funding guarantee that we had proposed in the provisional settlement.

Rural services delivery grant

The Government have listened to the sector’s consultation responses and recognise the specific challenges and difficulties that local councils can face in serving dispersed populations in rural areas. I am therefore announcing my intention to provide a significant increase in funding delivered through the rural services delivery grant. I am announcing a £15 million increase to the grant in 2024-25. This is an increase of over 15%, making available a total of £110 million next year. This is the largest cash increase in the rural services delivery grant since 2018-19, and the second successive year of above-inflation increases.

Internal drainage boards

Last year we provided one-off funding to local authorities struggling with internal drainage board levies. We have listened to authorities that continue to face sustained increases in these levies. We will again provide £3 million outside of the settlement to support those experiencing the biggest pressures. We will work with the sector and the Department for the Environment, Food and Rural Affairs to implement a long-term solution.

Islands

In recognition of the unique circumstances facing our island authorities, and their physical separation from the mainland, we will be increasing funding to the Isle of Wight and the Isles of Scilly.

We will set out full details at the final settlement.

Working with the sector on efficiency

I would like to emphasise that this money, alongside all funding announced at the provisional settlement, should be used by local authorities to deliver the frontline services on which our communities rely, rather than put aside for later use. We will therefore continue to monitor the level of local authority reserves.

Looking ahead, we know that there is work to be done between national and local government to improve productivity in local government, as part of our efforts to return the sector to sustainability in the future. While the new funding announced today is an important part of these efforts, alongside ongoing work in adult and children’s social care, we can go further. That is why today we are asking local authorities to produce productivity plans setting out how they will improve service performance and reduce wasteful expenditure to ensure every area is making best use of taxpayers’ money. I encourage local authorities to consider whether expenditure on discredited equality, diversity and inclusion programmes meets this objective.

The Department for Levelling Up, Housing and Communities will be establishing an expert panel to advise the Government on financial sustainability in the sector, which will include the Office for Local Government and the Local Government Association. The panel will review local authority productivity plans and advise the Government on best practice in this area. The Government will monitor these plans and use them to inform funding settlements in future years. Our aim is for local authorities to produce these plans by the summer recess, and we will design a process for local authorities that will enable them to do so. We will provide more information on these requirements for local authorities at the final settlement.

With regard to part-time work for full-time pay arrangements—the so called four-day working week—the Government continue to believe that this reduces the potential capacity to deliver services by up to 20% and, as a result, does not deliver value. The Government have already taken steps to deter the sector from operating these practices, consulted on the use of financial levers at future settlements, and will legislate if necessary.

Conclusion

These proposals will provide councils with the support they need, ensuring stability and delivering additional resources for the most acute pressures. We will also hold the sector to account and help maximise local authorities’ efficiency and value for money.

Alongside the measures announced today, the Government continue to protect local taxpayers from excessive council tax increases through the proposed package of referendum principles, including the 3% core council tax principle and the 2% adult social care precept. It is for individual local authorities to determine whether to use the flexibilities detailed above, taking into consideration the pressures many households are facing.

We are committed to improving the local government finance system beyond this settlement in the next Parliament, and the Minister for Local Government will be engaging with the sector on this over the coming months.

The final local government finance settlement will be published in full early next month, and the statutory reports that comprise the settlement will be subject to debate in the House of Commons shortly after.

This written ministerial statement covers England only. The Barnett formula will apply to this funding in the usual way.

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