Written Statements

Friday 26th July 2024 Written Statements

Friday 26 July 2024

Digital Trade Agreement: WTO Joint Initiative on Electronic Commerce

Friday 26th July 2024 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

The Government are ready to lead on the global stage and use every lever at our disposal to tear down unnecessary barriers and give British businesses the access to international markets to achieve economic growth. We are committed to establishing a global trading system fit for the modern era and underpinned by digital technologies to ensure trade is as seamless and efficient as possible.

Today, I am delighted to announce the UK has joined the first global digital trade agreement: the joint initiative on electronic commerce, negotiated with 90 other countries at the World Trade Organisation.

The economy-wide agreement, covering trade in goods, services and information, is set to deliver new growth opportunities for the UK, with global digital trade already worth £4 trillion and growing strongly. The JI will deliver new growth opportunities for the UK economy and our businesses, workers and consumers, and recognises the importance of supporting developing and least-developed countries to deliver growth and prosperity for all.

Global trade is becoming increasingly digital, and harnessing its potential is central to growing a strong and resilient economy in the UK. The UK is at the forefront of digital trade and has a comparative advantage in digitally-delivered services such as finance, professional business services, creative industries, engineering and much more. UK trade is driven by digitally-enabled businesses, with exports of digitally-delivered services amounting to £252 billion in 2021, or 77% of total UK services exports.

However, until now there has been no common set of global digital trade rules. The G7 digital trade principles brokered under the UK G7 presidency in 2021 set out shared commitments of G7 countries, but there was no rulebook covering binding commitments for the world. This has led to fragmented approaches to digital trade regulation, resulting in increased barriers for businesses, workers and consumers.

As a comprehensive, economy-wide agreement, the JI will boost global trade in goods, services and information and unlock a wide range of benefits for UK businesses, workers and consumers. Global adoption of digital customs systems, processes and documents, even with partial uptake, could represent a boost to UK GDP. Improvement in trade facilitation can increase the probability of a small business starting to export by up to 3% and increase the value of small business exports. Protection for workers and consumers online will increase their trust and confidence in digital trade.

Key benefits of this agreement include:

Cheaper, faster and more secure trade for businesses trading goods and services around the world through digitalising interoperable customs systems, processes and documents. This will in many cases end the need to print off forms and hand them over at customs, a slow, expensive and old-fashioned way of working.

Recognition of electronic contracts, invoices, signatures and authentication, and facilitation of secure, trustworthy electronic payments.

Permanent ban on customs duties on digital content among JI participants to provide the certainty businesses need to trade openly in the new global digital economy and avoid the price increases the introduction of such tariffs would cause.

Protection of personal data of workers and consumers in line with the UK’s high data protection standards.

Protection of consumers buying goods and services online from online fraudsters, misleading claims about products and deception.

Facilitating competition in the telecoms sector through financial independence of telecoms regulators and improved access to telecoms infrastructure.

I expect the process to incorporate the JI into the WTO legal framework to commence shortly. Once incorporated, the JI will be laid before Parliament, in line with usual practice, for domestic ratification.

The Government are committed to rebuilding and strengthening global partnerships and standing up for the rules-based international order. This agreement is an important step in modernising the global trade rule book and furthering co-operation in the WTO.

[HCWS23]

Higher Education Regulation

Friday 26th July 2024 Written Statements

[The Secretary of State for Education (Bridget Phillipson)]

The Government are committed to ensuring this country develops the skills we need to deliver sustained economic growth and improved prosperity and living standards for working people. Our world-leading higher education sector is a key engine at the heart of these growth plans and today I am announcing some of the first steps we are taking to ensure a stable future for higher education, with strong regulation that means students can thrive.

First, today will see the publication of the report for the independent review of the Office for Students, “Fit for the Future: Higher Education Regulation towards 2035”, which will be made available on gov.uk.

The review found that the case for bold regulation of higher education is clear but that the OfS should more sharply focus on key priorities, which include monitoring financial sustainability, ensuring quality, protecting public money and regulating in the interests of students.

I would like to thank the lead reviewer, Sir David Behan, for conducting a rigorous and thoughtful review, and all those in the higher education sector who supported and contributed to the review process.

The Government accept the core analysis of the review and, as set out in our manifesto, we recognise that strong regulation is a crucial element of a stable, world-leading higher education sector that delivers for students and the economy.

I will deposit a copy of the report in the Libraries of both Houses.

Following the resignation of Lord Wharton as chair of the OfS earlier this month, I also wish to announce that Sir David has been appointed as interim chair of the OfS. His role will primarily be to work with the current executive to implement the recommendations of the independent review. The process to appoint a permanent chair has started and will conclude next year.

Lastly, I have written to colleagues separately about my decision to stop further commencement of the Higher Education (Freedom of Speech) Act 2023, in order to consider options, including its repeal. I am aware of concerns that the Act would be burdensome on providers and on the OfS, and I will confirm my long-term plans as soon as possible. To enable students to thrive in higher education, I welcome the OfS’s plans to introduce strengthened protections for students facing harassment and sexual misconduct, including relating to the use of non-disclosure agreements in such cases by universities and colleges.

[HCWS26]

Sizewell A Nuclear Site: Direction to Nuclear Decommissioning Authority

Friday 26th July 2024 Written Statements

[The Secretary of State for Energy Security and Net Zero (Ed Miliband)]

I am today laying a new designation direction to the Nuclear Decommissioning Authority in respect of the Sizewell A nuclear site, which amends the existing direction. The direction has been given in accordance with sections 3 and 5 of the Energy Act 2004, with the consent of Nuclear Restoration Services Ltd, which controls the site.

This direction will end the Nuclear Decommissioning Authority’s responsibilities under the Energy Act 2004 for specific land and buildings on the Sizewell A nuclear site, so that the land can be sold to EDF and become part of the Sizewell B nuclear site. This will facilitate the development of new nuclear at the Sizewell C nuclear site.

[HCWS25]

Care Quality Commission

Friday 26th July 2024 Written Statements

[The Secretary of State for Health and Social Care (Wes Streeting)]

Today I wish to update the House on the publication of the interim findings of the review into the operational effectiveness of the Care Quality Commission that is being conducted by Dr Penny Dash. I have asked Dr Dash to publish these interim findings, as I wish to share with the House and the public the serious failings they expose.

Getting regulation right is critical to ensuring that health and social care is not only safe but also high quality. If the way we regulate is not fit for purpose, it means that people are not properly supported in their choices about health and care, and there is a lost opportunity to deliver improvements. Dr Dash’s interim findings demonstrate that the CQC, as the regulator of health and social care in England, is exactly that: not fit for purpose.

Dr Dash’s report has given people across the health and social care system, including from within the CQC, the opportunity to speak up about what I believe are systemic and cultural problems. I commend the report for creating an environment in which people have been able to speak up; to fix the NHS we must create a culture that values and listens to the voices of those who can see where the problems are.

Dr Dash has heard major concerns from significant groups of stakeholders. There are failings in the way that the CQC assesses organisations relating to the single assessment framework, which means that we cannot be confident that inspections are looking at all the things the public should rightly expect. There are also concerns about how ratings, which both the public and service providers depend on, are calculated. These failings are compounded by a further finding that the CQC does not have appropriate sector-level expertise throughout the organisation. Dr Dash is clear that all of these concerns mean that the CQC has lost credibility.

As recommended by Dr Dash, the Department of Health and Social Care will work with the board of the CQC to address the issues raised. The board will have my full support in ensuring the right leadership is in place to drive through the changes that are needed.

While this is an interim report, I would like to highlight four immediate steps that I will be taking with the CQC.

First, the CQC have asked Professor Sir Mike Richards to review the single assessment framework. This is an important step in addressing the concerns Dr Dash raises about how the safety and quality of hospitals is assessed. Sir Mike is an eminent and highly regarded clinician who was the CQC’s first chief inspector of hospitals. The fact that the CQC has asked someone with Sir Mike’s significant experience to give detailed and thorough consideration to improving the framework shows that the CQC is now taking seriously the concerns raised in the report and is acting swiftly to address them.

Second, I have asked the CQC to urgently improve the transparency of its ratings. This will include being clearer about what evidence has been considered in reaching the ratings, as well as setting out clearly the dates of the inspections that a rating is based on. This is to address the report’s finding about the historical practice of combining inspections over several years to produce a rating. This is important so that members of the public can have confidence that they know what a rating actually means. The action I am taking is a first step to bring in greater transparency, but more work will be required as the CQC looks in more detail at its assessment framework.

Third, the Department of Health and Social Care will increase the level of oversight of the CQC, including the frequency and seniority of that oversight. Over the summer, I will be looking at what is needed to ensure that the recommendations in the interim review are acted upon. This arrangement will continue once the final report is published. Ultimately, the Department’s objective must be to ensure that improvements in the delivery of CQC’s core functions are achieved for service users and service providers across health and social care. I have requested firm assurance from the chair that effective and credible appointments are made for a permanent chief executive and chief inspectorate of healthcare.

Fourth, the CQC sits within a complex landscape of bodies with responsibility for safety. Pending completion of her final report in autumn 2024, I am asking Dr Dash to undertake further work and make recommendations on how we can maximise the effectiveness of key bodies, individually and collectively, within that landscape. Terms of reference will be determined in due course.

Only by ensuring that we have a health and social care system that works as a whole will we be able to restore the public’s confidence in the safety and quality of care and, most importantly, put the voice and experience of patients and service users back at the heart of our regulation and oversight of the whole health and social care system.

The interim findings of the review have been published on gov.uk. I will provide a further update to the House once Dr Dash’s final report has been published.

[HCWS27]

AI Opportunities Action Plan

Friday 26th July 2024 Written Statements

[The Secretary of State for Science, Innovation and Technology (Peter Kyle)]

Artificial intelligence has enormous potential to drive economic growth, through productivity improvements and technological innovation, and to stimulate more effective public service design and delivery. These are opportunities the United Kingdom cannot afford to miss and that is why AI, alongside other technologies, will support the delivery of our five national missions. Through targeted action this Government will support the growth of the AI sector, enable the safe adoption of AI across the economy and lead the way in deploying it responsibly in our public services to make them better.

Today, I am setting out our plans to create an ambitious AI opportunities action plan, and our next steps on the regulation of frontier AI systems.

I have appointed tech entrepreneur and chair of the Advanced Research and Invention Agency, Matt Clifford CBE, to develop the AI opportunities action plan. It will set out how Government can support the growth of the AI sector and compete on the global stage, while also including actions designed to boost the responsible adoption of AI across all parts of the economy. This plan will identify ways to accelerate the use of AI to improve people’s lives by making services better and developing new products.

The action plan will also address key AI enablers such as the UK’s compute and broader infrastructure requirements; how this infrastructure is made available to industry as well as researchers; and how to develop, attract and retain top AI talent. To develop the action plan, Matt Clifford will engage with academic, industry and civil society experts.

Matt Clifford will deliver a set of recommendations to me by September. To support implementation of the action plan, an AI opportunities unit will be established within the Department for Science, Innovation and Technology.

Delivering the plan will play a vital role in driving up productivity and kick-starting economic growth. Estimates from the IMF show that while the exact economic impact hinges on the wider development and adoption of AI, and realisation could be gradual, the UK could ultimately see productivity gains of up to 1.5% annually.

While AI has the potential to boost our productivity, unlock new sources of growth, and improve the quality and efficiency of our public services, we know that advanced capabilities also present risks. In the King’s Speech on 17 July, the Government set out our intention to legislate in line with our manifesto commitment to place requirements on those working to develop the most powerful artificial intelligence models.

This legislation will place the AI safety institute on a statutory footing, providing it with a permanent remit to enhance the safety of AI over the longer term.

Our proposals will be highly targeted and will support growth and innovation by ending regulatory uncertainty for AI developers, strengthening public trust, and boosting business confidence. They will avoid creating new rules for those using AI and will instead apply to the small number of developers of the most powerful AI models with a focus on the AI systems of tomorrow and not today.

We will shortly launch a consultation on these legislative proposals, to harness the insights and expertise of the AI industry, academia and civil society.

[HCWS24]