UK-US Economic Prosperity Deal
(2 days, 3 hours ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
On 8 May 2025, the Prime Minister and the President concluded a landmark economic deal between the United Kingdom and the United States. The deal was defined in the general terms for the economic prosperity deal. Both countries agreed to begin negotiations on the EPD immediately, to develop and formalise the proposals in the general terms. The Government remain relentlessly focused on securing the best outcomes for UK industry, and ensuring that businesses up and down the country can feel the benefits of the deal as soon as possible.
On 16 June, the Prime Minister and the President agreed further progress towards that goal.
As outlined in paragraph 1(c)(i) of the general terms, the US will create a 100,000-unit quota for all UK car exports to the US, reducing US tariffs from 27.5% to 10%. This will be administered on a quarterly basis. This has been signed by the President through Executive order, and we expect that these arrangements will come into force by the end of the month. This 10% tariff will also apply to UK part exports attendant to finished passenger cars that UK manufacturers export to the US.
The UK will implement its commitments in paragraph 1(b) of the general terms relating to beef. We will execute the legislative process to create a preferential duty-free quota for US beef of 13,000 metric tonnes (mt) per calendar year. Alongside this, the UK will remove the 20% tariff on US beef imports under the existing World Trade Organisation quota shared between the US and Canada of 1,000 mt per year. The UK will lay legislation in Parliament to bring the quota into effect. Under paragraph 1(b) of the general terms, the United States confirmed its commitment to reallocate to the United Kingdom 13,000 mt of its existing “other countries” tariff rate quota for beef at most favoured nation rates. That re-allocation will take place as quickly as possible and at the latest by 1 January 2026. As confirmed in the general terms, the United Kingdom and the United States affirm that imported food and agricultural goods must comply with the importing country’s sanitary and phytosanitary standards and other mutually agreed standards. Paragraph 2(a) of the general terms outlines how the UK and the US will seek to strengthen bilateral agricultural trade.
The UK will also execute the legislative process to create a preferential duty-free quota for US ethanol of 1.4 billion litres per year. The UK will lay legislation in Parliament to bring the quota into effect.
The US and UK will continue to work together at pace to implement paragraph 1(a) of the general terms, covering other tariffs. The US and the UK will continue to work together to conclude this negotiation and implement reductions as soon as possible. Each country intends to continue to improve market access under the EPD.
The US and the UK will take forward the remaining provisions contained in paragraph 1(c) of the general terms. The UK and US are conducting rapid discussions to create a quota at most favoured nation rates for the export of steel, aluminium and certain derivative products from the UK to the US, and intend to finalise implementation as soon as possible.
The US commits to reducing tariffs on imports of aerospace goods from the UK from current levels back to MFN rates. This has been signed by the President through Executive order, and we expect these arrangements to come into force by the end of the month.
Both countries remain focused on securing significantly preferential outcomes for the export of pharmaceutical products from the UK to the US and other sectors that may be subject to section 232 investigations or other tariff measures.
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Radio Teleswitch Service Switch-off
(2 days, 3 hours ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
Today I can confirm that my Department has stepped in to ensure that there will be a managed and more controlled start of the radio teleswitch service phase-out from 30 June. People with an RTS meter will not face any unexpected disruption to their heating or hot water at the end of the month.
The radio teleswitch service uses radio signals to switch older electricity meters between different tariffs such as peak and off-peak, and can also be used to turn heating and hot water systems on and off at specific times of the day.
The technology behind RTS is reliant on infrastructure that was introduced in the 1980s that is due to be switched off as it is reaching the end of its operational life. The phased approach to switch-off was agreed with relevant industry parties on behalf of energy suppliers.
For years the pace of RTS replacements by industry has been too slow—leaving 314,935 RTS meters still in premises as of 30 May 2025.
My Department has worked to ensure that industry will pursue a more controlled approach to the phase-out, beginning with a very small number of homes and businesses in carefully targeted local areas. During this process, the Government and Ofgem will closely monitor supplier that readiness to ensure the process is smooth and vulnerable consumers are identified and protected.
These steps will help to ensure that suppliers are ready to respond quickly in case of any issues and that working families and the elderly are protected throughout the phase-out process.
The Government are working closely with the industry and Ofgem to ensure this next period is planned effectively and that consumers, particularly those who are vulnerable, are protected. The Government are clear that suppliers must fulfil all their legal obligations to their customers, and will work with Ofgem to hold suppliers to account.
I will continue to meet Ofgem and Energy UK on a fortnightly basis to review how the gradual and targeted phase-out is progressing, with a particular focus on Scotland—where over 100,000 RTS meters are installed—as well as remote and rural areas, to ensure that all efforts are made to reach these households.
To provide additional protection to consumers, Ofgem has recently consulted on plans to introduce new RTS-specific licence conditions for energy suppliers. These will include a provision that suppliers must take all reasonable steps to provide a tariff that leaves their consumers “no worse off” than under their existing arrangement as a result of an RTS meter replacement. Ofgem will publish its response to the consultation shortly.
Suppliers will continue contacting consumers to book replacement appointments and consumers are urged to respond as soon as possible. In most cases, this will involve replacing the RTS meter with a smart meter—which can work in the same way as RTS meters, with automatic peak and off-peak rates, and the ability to turn heating and hot water systems on and off—ensuring minimal disruption to households.
In advance of any phase-out activity in their area, households and businesses will be contacted by their energy supplier to inform them well ahead of time if their meters will be affected.
The Government have also made it clear to industry that suppliers must fulfil all their obligations to consumers and drive up the rate of RTS meter replacements. In recent months, suppliers have taken various steps to speed up their replacement rates, and this must continue. The Department continues to impress upon suppliers the importance of resourcing themselves effectively to ensure that they can reach all their RTS consumers in good time, including those in rural areas.
Although the RTS and the work to replace it is industry-owned and led, this Government are doing everything we can to ensure that all consumers, particularly those who are vulnerable, are protected from any negative impacts.
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Windrush Commissioner
(2 days, 3 hours ago)
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The Parliamentary Under-Secretary of State for the Home Department (Seema Malhotra)
I am delighted to announce that the Rev. Clive Foster MBE is to be our new and first Windrush commissioner.
This appointment delivers on a manifesto commitment and follows on from the Home Secretary’s statement to the House in October last year. It is a pivotal step in resetting the Government’s response to the Home Office Windrush scandal and delivering the change that the victims of this scandal want and deserve to see.
As Windrush commissioner, he will play a crucial role, providing independent oversight of the Government’s ongoing commitment to address the impact of the Home Office Windrush scandal and ensure that the voices of those affected remain at the heart of efforts to deliver justice. The commissioner will engage with victims, communities and stakeholder organisations, and provide advice directly to Ministers, to help ensure that lasting, tangible change is delivered and that the lessons of the past are truly learned. He will also work alongside the Windrush unit, which was re-established last year, to oversee the Department’s response to the scandal and embed permanent cultural change.
The Rev. Clive Foster is a hugely experienced and capable individual, and well placed to represent the interests of the Windrush communities. With personal connections to the Windrush generation through his parents, who migrated from Jamaica, he brings both lived experience and professional expertise to the role. He is the founder of Nottingham Windrush Support Forum, vice-chair of the Windrush National Organisation and a senior pastor at the Pilgrim Church in Nottingham—demonstrating valuable experience in community leadership and social justice.
We look forward to working closely with the Rev. Clive Foster as we continue our vital work to re-build trust and ensure that dignity is restored and justice delivered to Windrush generations, as is rightfully deserved; that those who have suffered receive the status and compensation they deserve; and that an injustice such as this can never happen again.
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National Housing Bank and National Housing Delivery Fund
(2 days, 3 hours ago)
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The Minister for Housing and Planning (Matthew Pennycook)
I am today updating the House on further steps the Government are taking to deliver our ambitious plan for change milestone of building 1.5 million safe and decent homes in this Parliament.
National Housing Bank
To accelerate house building across England, we intend to establish a new, permanent national housing bank to act as the Government’s investment arm.
Established as a public financial institution, and operating as a subsidiary of Homes England, the new bank will deliver a long-term financial return for the Government, drawing on the approach taken to the national wealth fund. The bank will deploy finance in line with the Treasury’s financial transaction control framework, which will ensure long-term value for money.
By giving Homes England greater autonomy and freedom to flexibly deploy loans, equity and guarantees, the new bank will support additional housing development and reinforce our ongoing efforts to reform the housing market.
Today’s announcement sets out an initial allocation of £16 billion of new financial capacity for the bank—comprising £10.5 billion of investment capital and £5.5 billion of contingent liability capacity that can be used to deploy housing guarantees. The £10.5 billion investment capital package includes £2.5 billion of low-interest loans for social and affordable housing providers to further boost their capacity to invest in new developments.
The bank will offer a broad range of products, including direct lending to SMEs to help them to grow, equity investments to support new platforms that can bring new capital into housing, and guarantees to leverage private investment into complex development projects.
The bank will build on Homes England’s impressive track record of investment. Since October 2016, the agency has deployed over £9.6 billion of capital through existing investment programmes, working alongside delivery partners to attract an estimated £48 billion of private sector investment into the vehicles it supports. This investment will deliver or unlock over 600,000 homes.
The detailed investment strategy for the bank—which will form a key part of Homes England’s overall strategy – will be developed in the coming months and agreed by the Ministry of Housing, Communities and Local Government and HM Treasury. Subject to the development of that investment strategy, our current estimates are that, over the lifetime of the initial £16 billion investment allocation, the bank will support the delivery of over 500,000 homes in all parts of the country and of all different tenures, create hundreds of thousands of job opportunities in the construction sector, and leverage in an additional £53 billion of additional private investment.
The national housing bank will work closely with mayors and local leaders to develop integrated packages of financial support to deliver on the housing and regeneration priorities of local areas, alongside wider land and grant funding. Following this announcement, MHCLG and Homes England will engage mayoral strategic authorities to agree an approach that works best for the needs of each place.
MHCLG will work with the Mayor of London to establish a City Hall developer investment fund—supporting London’s ambition to build over 80,000 homes per year, and support housing regeneration around London Euston. We will also extend the successful Greater Manchester housing investment fund, which has supported over 10,000 homes since 2015.
The creation of the national housing bank will not change the delivery of Homes England’s existing investment programmes or impact arrangements for customers with help to buy loans provided by Homes England.
I must make clear that Homes England is not currently designated as a public financial institution. However, the Government will designate a subsidiary of Homes England as a public financial institution once established in line with the Government’s financial transaction control framework. MHCLG, HM Treasury and Homes England will work together to agree the changes to Homes England that are needed prior to establishing the bank.
The name “national housing bank” is provisional and will undergo all normal regulatory approvals before the bank is established.
New capital grant funding for investment in infrastructure and land
In many cases, Government grant funding is critical to making large-scale, complex and transformational housing regeneration and infrastructure projects viable. That is why, alongside the intention to establish the national housing bank, we are announcing £5 billion of new capital grant funding for infrastructure and land.
This additional grant funding will be administered by a new, single national housing delivery fund that will complement investment from the national housing bank. This fund will be fully operational from 1 April 2026.
MHCLG and Homes England will work with mayors and local partners to understand priorities for this investment and will set out further detail on funding later this year.
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