Written Statements

Wednesday 18th December 2024 Written Statements

Wednesday 18 December 2024

Free Trade Agreement with the Gulf Co-operation Council: Negotiations Update

Wednesday 18th December 2024 Written Statements

[The Minister for Trade Policy and Economic Security (Mr Douglas Alexander)]

Growth is the No. 1 mission of this Government. Central to growing our economy and ensuring working people in every community feel the benefits of that growth, is an expansion of free trade agreements with strategic partners.

The Secretary of State for Business and Trade announced the Government’s intention to deliver the UK’s FTA negotiations programme in July. Negotiations with the Gulf Co-operation Council resumed on 24 September. Since then, the UK has held ongoing virtual and in-person negotiations. This included a GCC delegation visiting London during the week of 21 October and a UK delegation visiting Riyadh during the week of 11 November.

To progress negotiations, I had productive discussions with counterparts in Saudi Arabia while attending the 2024 future investment initiative in Riyadh. This was ahead of the Secretary of State for Business and Trade’s visit to Qatar later in the week to attend the GCC Trade Ministers’ meeting on 31 October. This event provided a good opportunity to discuss key issues with Ministers from all member states and the shared ambition to move negotiations forward at pace.

Talks throughout the autumn have continued to be constructive, with good momentum from the GCC, which has enabled further treaty text to be agreed. The focus from both sides is on achieving a modern and commercially meaningful agreement.

A mutually beneficial FTA between the UK and the GCC will deliver economic growth, higher wages and new investment. A deal will deliver targeted growth that could increase bilateral trade by 16%, potentially adding an extra £8.6 billion a year to trade between the UK and GCC countries in the long run. This £8.6 billion is on top of the £57.4 billion worth of trade that we already have.

The negotiation is progressing at pace and good progress is being made in the following areas:

Services, investment and digital

Detailed technical discussions have been held across these areas, narrowing down outstanding issues in the text and setting out expectations for market access schedules. Constructive discussions have been had around mobility to better support the movement of business persons between the UK and the GCC. Investment remains a key area of interest for both sides, recognising the levels of inward and outward investment between the UK and GCC countries. A digital chapter, alongside provisions relating to innovation, reflect the shared ambition for a future facing deal, that can respond to the changes that technology will continue to bring to the global economy.

Goods

The aim of negotiators’ discussions on goods market access is achieving commercially meaningful outcomes. This is an important area for both sides, and we continue to press for further progress on key UK interests and look forward to building on these discussions in the coming weeks. We also made good progress in technical discussions on rules of origin and trade remedies and are working constructively with the GCC to narrow down outstanding issues in the text.

Other areas of note

Negotiators continued to have constructive discussions on areas of sustainable trade, including environment and labour, as well as making further progress through negotiations on disputes and transparency.

I value the important role that Parliament plays in the scrutiny of the Government’s ambitious trade agenda. We will continue to ensure that Parliament is appropriately updated while also ensuring we protect our negotiating position.

[HCWS333]

Afghan Resettlement

Wednesday 18th December 2024 Written Statements

[The Secretary of State for Defence (John Healey)]

Last month, people came together all over the United Kingdom, to honour all the members of our armed forces who have made the ultimate sacrifice for our security and freedoms. In this significant year of remembrance anniversaries, the Remembrance Sunday service at the Cenotaph was also notable for an historic first. This year was the first time our veterans of the Afghanistan campaign marched past the Cenotaph together as a distinct unit; a solemn acknowledgement of the sacrifice and bravery of their colleagues during the operation, and in the rebuilding process which followed. Tragically, 454 of their colleagues did not have the option of joining them. I pay tribute to the commitment and courage of all those who served our country in Afghanistan.

Alongside British personnel, many Afghans also worked with commitment and courage to support the UK mission in Afghanistan. This includes members of Afghan specialist units, commonly known as the Triples, who fought valiantly alongside UK personnel, with some giving their lives and others suffering life-changing injuries. As set out by the Government in October, key issues have been identified and resolved through the Triples review, with eligible former Triples and their families being invited to relocate to the UK. We are expecting an overturn rate of approximately 25% on a cohort of applications that were previously considered ineligible.

This Government are fully committed to delivering on the pledge made by Parliament to those in Afghanistan who are eligible to relocate and resettle, and we continue to welcome eligible Afghans and their families to the UK through our Afghan resettlement schemes. We would like to express our gratitude to the Government of Pakistan for their co-operation as we have done this.

Whilst we recognise that resettlement is a complicated endeavour, we believe there is room for improvement in how we deliver for eligible Afghans and the communities in which they are being resettled, and ensure value for money for the taxpayer. At present, arrivals through different schemes are subject to differing and complex funding and support offers. This is why we are fixing the foundations of a complicated system and drawing together a single pipeline for Afghan resettlement, to deliver greater efficiency and better outcomes across Government.

By reforming our internal organisation across Government, we will bring to bear the collective expertise within the Home Office, the Ministry for Housing, Communities and Local Government, the Foreign, Commonwealth and Development Office and the Ministry of Defence and ensure the best possible outcomes at each stage of the resettlement journey. It is only by empowering the Departments to play to their strengths that we will ensure optimal services and value for money are provided overall.

The best resettlement delivers successful integration and supports arrivals to rebuild their lives in their new home. That is why, from the spring, we will be limiting the time that arrivals spend in transitional accommodation to nine months. Transitional accommodation—provided by the Ministry of Defence—will continue to be a mixture of serviced accommodation, and hotels, alongside reduced use of the defence estate. It is a vital part of our support offer to Afghan arrivals, allowing them to orient themselves and set themselves up for success for their new lives in the UK.

All Afghan arrivals will be supported to source their own settled accommodation through the find-your-own accommodation (FYO) pathway. In recognition of the pressures on housing supply and the unique challenges facing this cohort, the Government commit to continuing to fund and support a pipeline of settled housing to support around half these arrivals, who are the hardest to house. This will be through additional capital funding, community sponsorship and some service family accommodation. This will ensure that there is a pipeline of settled accommodation to support delivery of the Afghan resettlement programme.

Local authority and devolved Government colleagues are essential to make this vision a reality. Building on ongoing engagement, we will be meeting with representatives of local government and strategic migration partnerships early in the new year to embark on a specific process of co-design and delivery of immediate programme developments. It is their experience of resettlement and their continued calls for simplification which have informed this programme, and we look forward to working closely with them in its development.

We want to thank local authorities and communities for their continued support of this endeavour, which has been instrumental to both the successful operation of our transitional accommodation sites and for supporting moves into settled accommodation. In order for them to continue to deliver this vital work, we will continue to robustly test planning assumptions.

Over the past 12 months, we have welcomed around 90 eligible families each month and we expect this pace to continue. This cannot, however, be an endless process and ultimately, the Government intend to reach a position where the UK Afghan resettlement schemes can be closed. We will update the House on this accordingly.

We are grateful for the cross-Government commitment and approach to delivery on this important programme and will provide further updates in the new year. We will continue to work to deliver on our commitment to resettle those eligible Afghans who have supported the UK, and to whom we owe a debt of gratitude.

[HCWS335]

Armed Forces Covenant Annual Report 2024

Wednesday 18th December 2024 Written Statements

[The Secretary of State for Defence (John Healey)]

I have today laid before Parliament the 13th armed forces annual covenant report. The 2024 report covers October 2023 to September 2024, and showcases the work that has been achieved throughout the UK in support of our armed forces community.

Thank you to all my colleagues for their Department’s contributions and continued support to strengthen the armed forces covenant.

[HCWS338]

Dedicated Schools Grant Allocations 2025-26

Wednesday 18th December 2024 Written Statements

[The Minister for School Standards (Catherine McKinnell)]

Today the Department for Education has published local authorities’ allocations through the dedicated schools grant (DSG) for schools, high needs and early years for 2025-26.

Overall, core schools funding is increasing by £2.3 billion in 2025-26 compared to 2024-25. This means that overall core school funding will total almost £63.9 billion next year, including a £1 billion increase in high needs funding for the costs of complex SEND. The publications today confirm the funding increases that each local authority will see in 2025-26.

The DSG allocations to local authorities consist of four blocks: a schools block, a high needs block, an early years block, and a central school services block. The DSG allocations are calculated from the latest pupil numbers, and therefore update the provisional national funding formulae allocations that were recently published.

Nationally, mainstream school funding in the DSG is increasing by 2.15% per pupil in 2025-26, compared to 2024-25, bringing total funding through this block of the DSG to £48.7 billion. This includes funding to ensure that the 2024 pay awards are fully funded at a national level in 2025-26, and further increases in the schools national funding formula on top of this.

High needs funding will increase to £11.9 billion in 2025-26, a 9% cash increase compared to this year. The vast majority of this will be allocated to local authorities through the high needs block of DSG. Every local authority will receive an increase in funding of at least 7% per head, of their population aged 2 to 18, with some local authorities seeing increases of up to 10%.

Alongside their DSG allocations, local authorities will also receive a separate core schools budget grant in 2025-26 to pass on to special schools and alternative provision to continue helping with the costs of teachers’ pay and pension increases, and other staff pay increases, from 2024. This grant consolidates the separate grants for pay and pensions that are allocated for these settings in 2024-25. Further detail on the grant for 2025-26 is published at the following link:

https://www.gov.uk/government/publications/core-schools-budget-grant-csbg-2025-to-2026-for-special-schools-and-alternative-provision

Indicative allocations for the 2025-26 early years entitlements, totalling more than £8 billion, have been published. On top of over £8 billion through the core funding rates, we are providing an additional £75 million grant for 2025-26 to support the sector in this pivotal year to grow the places and the workforce needed to deliver the final phase of expanded childcare entitlements from September 2025.

The dedicated schools grant allocations are available at:

https://www.gov.uk/government/publications/dedicated-schools-grant-dsg-2025-to-2026

Pupil premium rates will be announced shortly in the new year.

[HCWS337]

UK Sanctions Regime

Wednesday 18th December 2024 Written Statements

[The Minister of State, Foreign, Commonwealth and Development Office (Stephen Doughty)]

Today I am updating the House on how this Government have delivered a step change in the use of our sanctions regimes to tackle malign activity and protect the UK’s national security interests domestically and internationally.

Sanctions are a powerful foreign and security policy tool, and this Government are committed to maximising their impact. Since the election, we have ramped up our collaboration with partners, particularly the US and the EU, to co-ordinate our action and to tackle circumvention.

UK sanctions are targeted, proportionate and robust, within a fair and transparent framework. Our approach has been repeatedly endorsed by the courts.

New sanctions to deter and disrupt malign actors

We have taken ambitious action to deploy new UK sanctions in innovative ways to deliver maximum impact. Since July, we have:

led the way in targeting Russia’s shadow fleet—the UK has targeted more ships than any other actor and has successfully encouraged partners to support our efforts;

delivered the largest single package of Russia sanctions, designed to disrupt Russia’s military industrial complex, since May 2023;

used our sanctions to deter and disrupt Iran’s military support to Russia;

called out the perpetrators of the Russian state’s forcible deportation of Ukrainian children;

clamped down on Russian cyber-criminals who have targeted UK schools and hospitals;

launched a cross-Government review of sanctions enforcement;

legislated to strengthen our sanctions enforcement powers, with the formal launch of the new Office of Trade Sanctions Implementation.

Russia sanctions

We have taken clear action to bear down on Russia’s sources of revenue, including energy revenues.

In July, the Prime Minister led a call to action at the European Political Community summit to tackle Russia’s shadow fleet. This has been endorsed by over 40 countries and by the EU. Russia has invested at least $10 billion into its shadow fleet and sanctions have plunged it into crisis. Since July, this Government have targeted 69 new oil tankers, nine liquefied natural gas carriers and six vessels involved in the transport of military goods. Many UK-sanctioned vessels have been left idling or at anchor, unable to continue their trade in Russian oil and depriving Russia of funds to wage its illegal war.

In November, we launched the largest package of sanctions against Russia in 18 months, disrupting the supply of western-sanctioned goods to the Russian military-industrial complex. This included individuals and entities in third countries. We are also targeting private military security companies, and, in November, the UK was the first G7 country to sanction Russian-backed mercenary group, Africa Corps.

The impact of our sanctions is clear. Sanctions have deprived Russia of over $400 billion since February 2022, reducing Putin’s war chest and forcing him to turn to North Korea and Iran for supplies.

Sanctions are putting grit in Russian military supply chains, increasing costs and delays and reducing equipment quality. The Russian defence sector has seen the cost of components rise by 30% and sanctions have prevented Russia from expanding military supplies to the battlefield.

On the financial side, 70% of Russian importers and 30% of Russian exporters now have to rely on specialised agents to settle payments with foreign partners, increasing the effective price of imports to Russia by 6% to 30%

The Russian Government have also had to undertake the first major tax hike in over 20 years. Interest rates are at 21%, there is runaway inflation, and the rouble has plummeted. Russia’s future energy ambitions are in tatters, and we are seeing increasingly vocal disagreements between Russian officials and industrialists.

Tackling corruption and illicit finance

Last month, we launched a campaign against illicit finance, raising our ambition and backing words with action. We sanctioned kleptocrats who have stashed stolen wealth in Britain and those who aid and abet them. Figures like Dmitry and Lada Firtash who have extracted hundreds of millions of pounds from Ukraine, or Isabel dos Santos who systematically abused her positions at Angolan state-run companies. On 9 December we took aim at the illicit gold trade, targeting five gold smugglers in co-ordination with the US, including three UK nationals. This Government will continue to use our sanctions powers to make the UK a more hostile environment for corrupt actors and to develop our sanctions regimes to address changing threats.

Iran

Sanctions are also important to confronting the threat posed by Iran, including its support for Russia. In September, we introduced new sanctions to disrupt Iran’s unmanned aerial vehicle and missile industries in response to Iran’s transfer of ballistic missiles to Russia for use against Ukraine. In October, following further Iranian attacks on Israel, we sanctioned senior Iranian military figures and organisations, including the Iranian Space Agency for their role in destabilising the middle east. This was followed in November by sanctions on Iran’s national airline, Iran Air, and its state-owned national shipping carrier, the Islamic Republic of Iran Shipping Lines, in line with the commitments outlined by the E3 in September. These sanctions will further restrict Iran’s direct scheduled commercial air services to and from the UK.

Cyber-sanctions

Our sanctions also directly support UK security. On 1 October, in co-ordination with international partners, we designated 16 individuals associated with Russia-based ransomware group Evil Corp, which has links to the Russian state and has sought to compromise UK health, Government and public sector institutions. This sends a clear message that the UK is prepared to stand up to cyber-threats.

Upholding human rights and promoting democracy

This Government have also taken sanctions action to uphold human rights. Following an unprecedented rise in settler violence in the west bank, we designated three settler outposts and four organisations that have supported, incited and promoted violence against Palestinian communities in the west bank.

We have also used sanctions to promote democracy. In September 2024, following Russia’s veto of the renewal of the UN sanctions regime on Mali, we legislated to enable the UK to sanction persons who obstruct Mali’s return to constitutional, civilian rule or who undermine the rule of law in Mali.

On 29 October, along with the EU and Canada, we also announced sanctions to increase pressure on the military regime in Myanmar and its associates. These sanctions target entities supplying aviation fuel and equipment to the Myanmar military and signal our clear opposition to the coup with the aim of undermining the regime’s credibility.

The UK strongly supports the use of UN sanctions to promote international peace and given the global signal they send and their reach across all 193 UN member states. On 8 November, the UN Security Council sanctioned two individuals involved in ethnically motivated atrocities in Sudan. This is part of wider efforts to apply pressure on conflict parties to stop fighting, allow humanitarian access and bring about a political transition as called for by the people of Sudan.

Co-ordination across the sanctions coalition

We co-ordinate with like-minded partners to disrupt, deter and respond to shared threats. We have repeatedly emphasised, alongside our G7 partners, that Russia must pay for the damage it has caused to Ukraine. On 22 October, the Chancellor announced that the UK will provide £2.26 billion in further support to Ukraine, as part of the G7 extraordinary revenue acceleration loans to Ukraine scheme. This is earmarked for military spending, further bolstering Ukraine’s ability to defend itself against Russia’s illegal war. The UK’s contribution will be repaid using the extraordinary profits generated on immobilised Russian sovereign assets held primarily in the EU.

Tackling Russia’s efforts to circumvent our sanctions remains a key strategic UK objective and a shared G7 commitment. Together with our G7 partners, particularly the US and EU, we continue to co-ordinate to tackle circumvention risks across priority countries in central Asia, the middle east, and the Caucasus. I have personally underscored the importance of tackling sanctions circumvention in my recent meetings with the Deputy Foreign Ministers of Uzbekistan, Kyrgyzstan and Kazakhstan. Diplomatic outreach at all levels has led to all these priority countries introducing Russia-facing controls on common high priority goods and a reduction in supply to Russia.

One-off engagement however is not enough. My officials, together with their EU and US counterparts, including during joint visits, are engaging with countries of concern and have secured commitments to control the re-export of the most sensitive goods, though we need to keep up the pressure. To underpin our commitment to tackling circumvention, the UK Government have deployed regional sanctions co-ordinators throughout our priority regions to provide leadership and expertise in our global network and to co-ordinate action across like-minded international partners in-country. We have complemented this with capacity-building programmes and technical assistance. The Prime Minister’s announcement last week highlights that approach in relation to the Republic of Cyprus as it establishes its new national sanctions implementation unit.

We are also playing a leading role in regional fora. The UK leadership in tackling the shadow fleet has seen our inclusion in the Nordic-Baltic forum alongside Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, the Netherlands, Norway, Poland and Sweden. This forum is confronting the risks posed by the shadow fleet, especially in the environmentally sensitive waters of the Baltic sea and the North sea and is exploring new possibilities for common measures against the shadow fleet within the framework of international law.

Strengthening sanctions enforcement across Government

This Government continue to work with industry to maximise compliance with our sanctions, but we are clear that failures to comply should be met with the full force of the law. Punishments include seizures at the UK border and, for the most serious breaches, large fines or criminal prosecution.

A range of Departments have responsibility for the enforcement of UK sanctions, including the Home Office, Department for Business and Trade, Department for Transport and HM Treasury. In October, we introduced new sanctions enforcement powers for the Department for Business and Trade and the Department for Transport, including the power to impose civil monetary penalties for breaches of the UK’s aircraft, shipping and certain trade sanctions. These powers also introduced new reporting requirements for suspected breaches and give us the option to name and shame sanctions offenders. These powers underpinned the launch of the new Office of Trade Sanctions Implementation.

The creation of OTSI will strengthen the implementation and enforcement of the UK’s trade sanctions. OTSI will work in partnership with HMRC in enforcing trade sanctions and its focus will include the movement of goods and services across third country borders to Russia or other sanctioned destinations. These third country powers are an important expansion of our toolkit in tackling sanctions evasion and circumvention.

We are committed to doing what is necessary to clamp down on sanctions offenders and the introduction of additional capacity and powers is starting to pay off. We are seeing this in the increase in reporting of suspected breaches, which we expect will result in further fines and referrals for prosecution.

Since February 2022, HMRC has issued six compound settlements against UK companies that have breached the Russia sanctions regulations for a total of £1,363,129, including one in August 2023 for £1 million and the latest in August 2024 for just over £58,000. On 27 September 2024, the Financial Conduct Authority fined Starling Bank Ltd £28,959,426 for financial crime failings related to its financial sanctions controls and screening. In September 2024, following a proactive investigation, the Office of Financial Sanctions Implementation issued a monetary penalty of £15,000 to Integral Concierge Services for breaches of financial sanctions imposed on Russia in response to its illegal invasion of Ukraine in 2022. ICSL did not challenge the penalty and paid in full. I want to see many more enforcement actions in the coming months to maximise the deterrent effect of our sanctions and hold people and institutions accountable.

I plan to go further to strengthen the UK’s sanctions system, and I have launched a cross-Government review of sanctions enforcement with the support of Ministers from HM Treasury, the Department for Business and Trade, the Department for Transport and the Home Office. In parallel, I have been speaking to the leaders of the overseas territories, including at the recent Joint Ministerial Council, where we agreed on the importance of strengthening sanctions implementation and enforcement across the entire British family. We are matching our commitment with action, including providing direct support to enhance sanctions enforcement capability in our overseas territories.

I will use the review to consider where we can go further and deeper to improve our sanctions system. I want us to look at how we can make our sanctions easier to comply with, how we can build our cross-Government capabilities to combat sanctions circumvention and how we can expand and improve our sanctions toolkit. I look forward to substantially enhancing enforcement efforts and reporting the outcomes to Parliament.

[HCWS334]

Economic Crime (Transparency and Enforcement) Act 2022: Unexplained Wealth Order Report 2023 to 2024

Wednesday 18th December 2024 Written Statements

[The Minister for Security (Dan Jarvis)]

Today, the unexplained wealth order report for the period 2023 to 2024, has been laid before Parliament. The unexplained wealth order report details the number of unexplained wealth orders made by the High Court in England and Wales during that period, and the number of applications made to that Court by enforcement authorities for such an order.

During this reporting period, two unexplained wealth orders were applied for. One was obtained and the other did not receive a judicial decision during the reporting period. One of the UWOs applied for in the 2022 to 2023 reporting period was also obtained in this reporting period.

Enforcement agencies remain committed to using the unexplained wealth order power where they see it is the best tool available to them. Not all cases merit an unexplained wealth order, and often the range of civil and criminal powers available to them to investigate, search for, and seize assets, better suit the circumstances of a given case. Large amounts of assets are being recovered. In the financial year 2023 to 2024, £62.9 million was recovered through civil recovery order receipts, the highest amount recovered in the last six years.

Enforcement agencies continue to review whether cases are suitable for a UWO.

Copies of the report will be available in the Vote Office, and it will also be published on gov.uk.

[HCWS340]

Proceeds of Crime Act 2002: Appointed Person Report 2023 to 2024

Wednesday 18th December 2024 Written Statements

[The Minister for Security (Dan Jarvis)]

Today, the Proceeds of Crime Act 2002 appointed person report covering England and Wales for the period 2023 to 2024, has been laid before Parliament. The appointed person is independent of Government and scrutinises the circumstances and manner in which search and seizure powers conferred by the Act are exercised without prior judicial approval and where nothing is seized for more than 48 hours.

I am pleased that we are now able to publish the appointed person’s latest report. The report details that search and seizure powers were used in these circumstances on five occasions.

The appointed person has confirmed in the report that he is satisfied that the criteria required for justifying the searches without prior judicial approval were met and that the powers of search were exercised appropriately. The appointed person has made no new recommendations for the period. This would indicate that the powers are being used reasonably and appropriately in accordance with the Act. We will continue to monitor the way that the powers have been used closely.

Copies of the report will be available in the Vote Office, and it will also be published on gov.uk.

[HCWS341]

Proceeds of Crime Act 2002: Costs Protection Report

Wednesday 18th December 2024 Written Statements

[The Minister for Security (Dan Jarvis)]

Today, the Proceeds of Crime Act 2002 costs protection report covering England and Wales, has been laid before Parliament. The report is a statutory requirement under section 215 of the Economic Crime and Corporate Transparency Act 2023. The Government are required to review whether costs protection should be introduced for enforcement agencies in civil recovery proceedings under part 5 of POCA and publish a report by the end of the period of 12 months beginning with the day on which the Act was passed.

I am pleased that we are now able to publish the report. The report outlines the engagement exercise that took place to seek consultees views and the options considered for introducing potential changes. The report concludes that the Government see merit in introducing costs protection based on the consultation responses and are making progress to determine whether amendments to legislation should be made.

Copies of the report will be available in the Vote Office, and it will also be published on gov.uk.

[HCWS339]

Tackling Homelessness and Rough Sleeping: 2025-26 Funding

Wednesday 18th December 2024 Written Statements

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rushanara Ali)]

We are facing a homelessness crisis across the country, with unprecedented levels of homelessness and a sharp increase in rough sleeping. There are a record 123,100 households living in temporary accommodation, including 159,380 children. The number of people sleeping rough on our streets is rising with almost 4,000 people sleeping rough on a single night in 2023. This did not happen overnight; it is the result of 14 years of neglect. This is the legacy this Government have inherited, and I am determined to address these failures head on, but it will take time to put right and get us back on track to ending homelessness and for good.

We are already tackling the root causes of homelessness. This Government will deliver the biggest increase in social and affordable housebuilding in a generation, and with the Renters Rights’ Bill we will abolish section 21 “no fault” evictions, preventing private renters being exploited and discriminated against, and empowering people to challenge unreasonable rent increases.

We are also taking action to support councils to deliver homelessness and rough sleeping services. In the autumn Budget, we announced that funding for homelessness services is increasing next year by £233 million compared to this year, 2024-25. This brings the total spend on homelessness and rough sleeping to nearly £1 billion in 2025-26, a record level of funding.

Today I am setting out how we will use that funding to deliver three important changes as the first steps in our long-term plan to tackle homelessness.

First, we must increase our focus on prevention and stopping households from becoming homeless in the first place. The current system is not working, and local authorities have been unable to invest in preventative interventions. This results in more households entering temporary accommodation, at great cost to the individuals and the council.

I am therefore providing an uplift of £192.9 million to the homelessness prevention grant, bringing total funding for 2025-26 to £633.2 million, the largest investment in this grant since it began. This will be allocated to all local authorities in England based on homelessness pressures. We will require at least 49% of this grant to be spent on activities to prevent and relieve homelessness, including associated staff costs, to help ensure this increase in funding is used to prevent families and single people from reaching crisis point.

Secondly, we must address the growing use of bed-and-breakfast (B&B) and nightly-let accommodation for homeless families. The number of families living in these types of emergency accommodation has nearly doubled in three years, with 4 in 10 homeless families living in B&B or nightly-let accommodation. Not only do these forms of accommodation provide limited stability for families and often lack basic facilities such as proper cooking facilities, they are also among the most expensive for councils. We must address this and ensure that where homelessness cannot be prevented, temporary accommodation provides safe, decent housing with as much stability for children as possible. I want to see the use of emergency accommodation for homeless families reduce and to eliminate the use of B&Bs for families other than in genuine emergencies.

As a first step to addressing this, my Department will work with 20 local authorities facing the most acute pressures for B&B use for temporary accommodation through a new programme of emergency accommodation reduction pilots, backed by £5 million to test innovative approaches and kick-start new initiatives. My Department’s team of homelessness experts will work in partnership with pilot local authorities to identify solutions which work for their local circumstances and share the learning across the country.

Thirdly, we must streamline funding structures, reduce bureaucracy and support councils to do what they do best: deliver services to meet the needs of their local communities. Our rough sleeping and single homelessness programmes, including our new streamlined rough sleeping prevention and recovery grant, will provide up to £280.75 million in funding in 2025-26, allocated to local authorities and their delivery partners across the country to help support them to continue vital services for some of the most vulnerable people in society. Our sector support grants will continue to support the skills and capacity of our valued voluntary sector partners. Our investment in prevention will stop people from rough sleeping in the first place, meaning local authorities will be able to target their rough sleeping resources at those who need help the most.

In addition, 15 local area partnerships across England will continue to be supported through the changing futures programme. We are providing £10 million in 2025-26 to improve support and outcomes for people experiencing multiple disadvantage.

This is only the first step to meeting our commitment to getting the country back on track to ending homelessness. We will continue to work across government to deliver the long-term solutions we need to get us back on track to ending all forms of homelessness, including developing a long-term homelessness strategy, which we will publish next year following the multi-year spending review.

[HCWS336]

Local Government Finance Settlement

Wednesday 18th December 2024 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

Our fiscal inheritance means that there will be tough choices to get us back on the path to recovery. Fixing the foundations of local government will be a long process following the 14 years of decline and instability overseen by the previous Government. But our programme of reorganisation and reform will lead to more efficient structures; will mean funding is sent to where it is needed the most; investment focusses on crisis prevention, rather than an expensive crisis response; and councils once again have the certainty and flexibility they need to focus on their priorities. Together, we will fix the foundations for everyone.

We are under no illusion about the scale of this task. The demand for, and cost of, services has increased significantly. The persistent failure of the previous Government to do the right thing, underlined by their decision to drop the long-overdue fair funding review, compounded by spiralling inflation and a failure to grow our economy, has left councils of all stripes in crisis. Our fiscal inheritance means that there is no easy route to solving this.

This 2025-26 local government finance settlement and our programme of reform for the future mark the first steps towards stabilising and rebuilding the financial sustainability of local government. We will take a more efficient approach to Government grant funding, including a one-off recovery grant to get councils back on their feet. And, in 2026-27, when we move to the first multi-year settlement for local government in a decade, we will ensure that grant funding goes to where it is needed the most: delivering better services by investing in prevention, and improving value for taxpayers’ money. Our consultation on local authority funding reform sets us on this path to recovery.

More secure finances must go hand in hand with higher standards and stronger financial decision making, both of which are impeded by the broken local audit system that we have inherited in England. Today we launched a strategy to streamline and simplify the local audit system through the establishment of a new and proportionate local audit office—combining the functions of the existing system—and ensuring that the core underpinnings are fit for purpose. We will embed transparency, restore our public financial early warning system, and ensure that every council is equipped to deliver the best value for council tax payers and business ratepayers. We will strengthen the local government standards system to support councils to deliver the high standards that they strive for. We welcome views on proposals to better support local government to uphold the highest standards of conduct and sanction misconduct whenever and wherever it occurs as part of our standards consultation. These steps are a crucial part of our plans for a stronger local government, as set out in the “English Devolution White Paper” this week.

Together, these reforms will begin to stabilise local government finances and ensure that all councils are fit, legal and decent, so they can better deliver for their residents. We will build on the significant steps we are already taking, laying the groundwork for children’s social care reform and increasing funding for homelessness and SEND services next year. We are giving councils more say over how they run local bus services, guaranteeing the future of vital reforms to our waste and recycling system, filling potholes, and bringing planning fees up to cost recovery. The hard work has already begun, and today we set out our detailed funding proposals for 2025-26 and our plan for the years ahead.

Provisional local government finance settlement 2025-26

The autumn Budget announced over £4 billion in additional funding for local government services, of which £1.3 billion would go through the 2025-26 local government finance settlement. We recognise the challenges that local authorities are facing as demand increases for critical services. Today we are announcing over £700 million of additional grant, which increases the total additional grant funding that will be made available to local councils in England through the settlement to over £2 billion. The over £700 million increase in funding announced today includes a £200 million increase to the social care grant, taking the grant’s total increase from 2024-25 to £880 million. It also includes £515 million of further funding, which will be made available at the final settlement to support councils with the increase in employer national insurance contributions.

The provisional settlement for 2025-26 therefore makes available £69 billion for local government, which is a 6% cash-terms increase and a 3.5% real-terms increase in councils’ core spending power on 2024-25. The final settlement will increase further, to incorporate the £515 million of funding announced for national insurance contributions.

Grant decisions for 2025-26

The proposals we announced on 28 November—a new £600 million recovery grant, a new children’s social care prevention grant, additional funding for social care, and repurposing the existing rural services delivery grant and the services grant—lay the foundations for fundamental reform by allocating new funding through improved formulas in 2025-26 and investing in priority services.

Social care

We will make available up to £3.7 billion extra funding for social care authorities through the settlement next year. In total, local government will receive over £10 billion in grant funding for social care, including: £1.05 billion in the market sustainability and improvement fund; £2.6 billion via the local authority better care grant; and £5.9 billion via the social care grant.

We can also today confirm that the new children’s social care prevention grant will be uplifted at the final settlement to £263 million. Taken together with the new children and families grant, the Government are doubling settlement investment in preventative services within children’s social care, to over half a billion in 2025-26, laying the groundwork for fundamental reform of children’s social care next year.

National insurance contributions (NICs)

In recognition of the decision to increase employer NICs, we can today confirm that the Government will provide £515 million to English local councils, including mayoral combined authorities and fire and rescue authorities, allocated based on an assessment of each council’s share of relevant net service expenditure. We have published a methodology note today to explain how this funding will be distributed across local authorities. Individual allocations will be published at the final settlement early next year.

Council tax

It is for local authorities to decide at what level they set their council tax. However, the Government are committed to keeping taxes on working people as low as possible. This settlement maintains the previous Government’s policy—as set out in the March 2024 Office for Budget Responsibility forecast—of setting a 5% council tax referendum principle, made up of a 3% core principle and the 2% principle for the adult social care precept. Voters will have the final say over excessive increases above this threshold.

The Government are committed to improving the presentation and transparency of council tax bills and will therefore require local authorities to adjust the presentation of the adult social care precept on council tax bills from 2025-26. This will simplify bills and provide clarity on council tax levels set by the local authorities. The Government will publish a consultation in 2025 to consider other options to improve transparency of council tax billing and support taxpayers to manage their household finances with a default option to pay over 12 months, as with most other household bills.

Requests for exceptional financial support

The Government have a framework to support councils in financial difficulty. This will be a collaborative and supportive process, and we have already confirmed that we will not replicate previous conditions that made borrowing more expensive. Similar to the approach taken by the previous Government, we will consider requests for bespoke referendum principles from councils seeking exceptional financial support. But this Government will put taxpayers and the impact on working people at the forefront of our decisions. Any requests from councils will be considered on a case-by-case basis, and the Government expect any additional increases to be agreed only in exceptional circumstances, not as a punishment where councils have failed. We will look carefully at councils’ specific circumstances—for example, their existing levels of council tax relative to the average and the strength of plans to protect vulnerable people. The Ministry of Housing, Communities and Local Government continues to offer any council a discussion, in confidence, about its ability to manage its budget.

Levy account

Every authority in England will receive a share of the accumulated surplus currently held in the business rates levy account. We can confirm that £100 million will be returned to the sector on a one-off basis, distributed in line with relevant legislation. Individual allocations of this funding will be published at the final settlement early next year.

Fixing the foundations: consultation on local authority funding reform

From 2026-27, the Government will fundamentally improve the way we fund councils, based on a new assessment of need and resources. These reforms will build on the framework set out in the previous Government’s abandoned review of relative needs and resources (originally, the fair funding review).

We will reset the business rates retention system, as was intended when the previous Government established the system. We will move gradually towards an updated system and will invite views on possible transitional arrangements to determine how local authorities reach their new funding allocations. Some local authorities work collaboratively with mayoral combined authorities in their area to ensure that extra business rates income is directed to local growth priorities across the wider region. In recognition of this, and as part of the Government’s reform of funding for local government, we will consider how the business rates retention system could better and more consistently support strategic authorities to drive growth. The Government will also reduce the number of funding pots to give councils more flexibility to focus on priority outcomes agreed with Government.

Today’s consultation is on objectives and principles. The consultation will give councils, sector organisations and the public the opportunity to contribute to the Government’s proposals. We will consider all representations to develop our understanding of the drivers of need, including the impact of rurality. This reform is about spending taxpayers’ money as efficiently as possible, but it is also about the impact it will have on real people’s lives and local authorities’ ability to deliver for their citizens.

Conclusion

The consultation on the provisional local government finance settlement 2025-26 will be open for four weeks, closing on 15 January 2025. The consultation on local authority funding reform will be open for eight weeks, closing 12 February 2025. We welcome views from the sector and beyond on each of these consultations.

This written ministerial statement covers England only.

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Youth Justice Board Review

Wednesday 18th December 2024 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Sir Nicholas Dakin)]

I am pleased to announce the review of the Youth Justice Board. This review is being conducted as part of the public bodies review programme, which aims to ensure that public bodies are operating effectively, and that their functions remain useful and necessary.

An efficient and effective youth justice system is essential for preventing crime and keeping communities safe. In line with our safer streets mission, it is vital that we have robust systems in place to stop young people being drawn into crime. Equally, we must support children who do find themselves in contact with the youth justice system to ensure they do not enter a cycle of crime which continues into adulthood.

The youth justice system is a complex one, requiring collaboration between many Departments, agencies and public and voluntary services. While there is much to celebrate, including a significant reduction in the number of children in custody in the last decade, it is right that we regularly review how our structures, system and agencies operate to ensure they are as effective and efficient as possible.

The YJB was set up to play a critical role in delivering positive outcomes for children in contact with the criminal justice system, and to provide oversight, assurance and technical expertise around the operation of the youth justice system. However, much time has passed since the last Cabinet Office review of the YJB in 2013. Since then, the youth justice landscape, and YJB itself, have changed significantly.

With that in mind, this review is an opportunity to consider whether the YJB’s statutory functions remain useful and necessary, where these functions should sit, and whether the YJB’s current delivery model remains appropriate. This review will also be key to assessing how the YJB and Department should work together to deliver ministerial priorities and deliver value for money.

This review will ensure that our current arrangements actively support the essential work undertaken by youth justice services and support the effective delivery of the Department’s priorities for youth justice and reducing reoffending.

I have appointed Steve Crocker, former president of the Association of Directors of Children’s Services, to lead on the review. He is independent from the Ministry of Justice and will provide objective analysis of the YJB and the Department. Steve Crocker will also lead a period of stakeholder engagement across England and Wales.

I will make a further announcement on completion of the review in spring 2025. Following this, I will set out the Government’s response.

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Practical Driving Test Waiting Times

Wednesday 18th December 2024 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)]

I am pleased to announce today that this Government are taking decisive steps to address long waiting times for car practical driving tests.

A driving licence is a passport to employment, opportunities and better living standards for hundreds of thousands of people each year.

Across the country, waiting times for a car practical driving test are at 13 weeks in Wales, over 15 weeks in Scotland, and nearly 21 weeks in England. These figures highlight a system under strain.

The proportion of 17 to 20-year-olds with a full driving licence dropped from 35% in 2019 to 29% in 2023. This matters, because one in six jobs require a driving licence. The top occupations for young drivers include roles critical to our public services and economic growth: healthcare workers, construction trades and transport workers.

Learner drivers should be able to take a test when they are ready to pass. Yet thousands have had to wait many months for a test, with some being exploited by businesses taking advantage of long waiting times or having to travel hundreds of miles in the process.

Between April 2023 and March 2024, the Driver and Vehicle Standards Agency provided over 2 million car driving tests, and it has over half a million driving tests booked in the next 24 weeks.

In response to increased demand, the DVSA created an extra 145,000 test slots between October 2023 and March 2024 by redeploying eligible managers and administrative staff to conduct tests. The DVSA has also reviewed its recruitment process and increased its effort to recruit and train driving examiners. But the case for further action is undeniable.

So today, I am setting out the robust plan I have asked the DVSA to deliver to tackle this issue head-on, while it helps to keep Britain moving safely and sustainably.

First, we will recruit and train 450 driving examiners. This will aim to significantly increase the workforce and ensure that examiners are available in high-demand areas, reducing waiting times for learners across the country.

Secondly, we will increase the notice period for changing or cancelling a test without losing the fee from three to 10 working days. This will minimise last-minute disruptions and ensure that cancelled slots can be reallocated to those ready to take their test.

Thirdly, we will review and improve the rules around booking tests, including measures to ban the resale of driving test appointments. This will ensure fairer access to test slots and stop the profiteering that disadvantages learners.

Fourthly, we will strengthen terms and conditions for driver training businesses managing test bookings. This will improve the efficiency of the booking system, making it harder for those looking to exploit learner drivers to secure test dates.

Fifthly, we will consult on introducing longer waiting times to rebook a test for candidates who fail by making multiple serious or dangerous faults, abuse driving examiners or fail to attend their test, and we will consider a penalty fee for those who fail to attend. This will discourage bad behaviour and ensure that examiners’ time is respected.

Sixthly, we will explore allowing learner drivers to book tests further in advance than the current 24-week limit. This will give learners more certainty in planning their preparation and reduce the stress of finding available slots.

Finally, we will expand the successful “Ready to Pass?” campaign to help learners throughout the whole process of learning to drive. This will increase the likelihood of learners passing their test the first time, reducing overall demand on the system.

These measures are practical, targeted, and designed to address the issues facing the driving test system. But I have to be clear: there is no quick fix to the current situation. It will take time for us to tackle the root causes of this issue, fix the broken system this Government inherited and to build a robust system for the future.

I am also pleased to announce today the publication of the DVSA’s 2024 to 2025 business plan.

This plan sets out the main business priorities the agency will deliver, including measures on the delivery of the car practical driving test that underpin the measures I have just announced, as well as the key performance indicators by which the DVSA’s performance will be assessed.

This plan allows service users and members of the public to understand the DVSA’s plans for delivering its services and managing its finances.

The business plan will be available electronically on gov.uk and copies will be placed in the Libraries of both Houses.

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