Written Statements

Thursday 3rd July 2025 Written Statements

Thursday 3 July 2025

CCUS Track 1 Contingent Liabilities: Padeswood

Thursday 3rd July 2025 Written Statements

[The Minister for Industry (Sarah Jones)]

Today, I am pleased to have laid a departmental minute with an update on the contingent liabilities associated with the carbon capture usage and storage track 1 clusters, HyNet and East Coast Cluster. This update is in anticipation of our signing contracts with the Padeswood cement project, which we expect soon, subject to timely conclusion of negotiations and resolution of outstanding conditions. Padeswood is a key demonstrator for decarbonisation of the cement industry, on which the security of the UK’s net zero transition is dependent. The addition of further CO₂ capture projects like Padeswood was planned and is part of the Government’s plan to maximise our investment in the HyNet cluster.

Context

CCUS is the only feasible method for decarbonising many hard-to-abate sectors, including cement. Located in north Wales, Padeswood will be the first at-scale UK cement plant incorporating carbon capture and storage technology. The project presents a high value opportunity for the UK to secure a strong global foothold, in a growing customer market, for low-carbon cement production.

His Majesty’s Government’s CCUS programme is the first of its kind and consequently we have sought to overcome multiple market barriers which inhibit the development of a CCUS market in the UK. The costs of constructing and operating CCUS currently exceed the costs of emitting CO₂—Government support is necessary to address these challenges and enable CCUS deployment at scale. Parliament agreed in November 2024 to accept five contingent liabilities within the CCUS track 1 contracts in order to reduce investor risk in CCUS technologies by bearing some of the initial risk inherent in developing a CCUS market, as well as the cross-chain risk existing across the participants in the CCUS network.

Parliament was notified on 13 November 2024 of the five CLs outlined below, which are associated with the various CCUS track 1 contracts. These were:

The supplemental compensation agreement, which is a long-term mechanism within the Government support package that enables the management of leakage risks at the geological store during operations and the post-closure period.

The revenue support agreement, which addresses demand-risks by providing for payments to CO₂ transport and storage companies if their allowed revenue is not covered by user fees.

The discontinuation agreement, which provides a right for the Secretary of State to discontinue support to the transport and storage companies and entitles investors to be compensated for their investment.

The decommissioning shortfall agreement, which covers potential decommissioning fund shortfall which might arise if decommissioning is required before the fund has been fully built up.

The discontinuation of capture project contracts, which allows for payment of compensation to capture projects for any losses due to a qualifying change in law or prolonged CO₂ transport and storage unavailability.

Now that HMG is near finalisation of negotiations with the Padeswood project, I am updating Parliament on our exposure to these contingent liabilities.

Update to contingent liability exposure

The table below shows the impact of signing contracts with the Padeswood project for the discontinuation of capture project contracts contingent liability. It is important to note that while the table below represents the maximum possible exposure, the probabilised exposures and likely crystallisations are far lower. There are robust risk management frameworks in place. Our assessments indicate that there are no liabilities that are likely to be realised and the vast majority are very remote.

Beneficial Ownership Registers: Overseas Territories

Thursday 3rd July 2025 Written Statements

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

Illicit finance, corruption, and kleptocracy pose a direct threat to our national security, economic resilience, and the integrity of the global financial system. The UK remains steadfast in its commitment to tackling these threats both at home and abroad by strengthening our defences and leading international efforts to ensure there is no safe haven for dirty money.

Illicit finance is a transnational challenge that thrives on opacity and weak governance. It undermines sustainable development, distorts markets, and erodes public trust. That is why this Government have made it a core priority to enhance transparency, restrict enablers of financial crime, and hold perpetrators of grand corruption to account.

In November, the Foreign Secretary launched a comprehensive illicit finance campaign, placing corporate transparency at the heart of our agenda. A key pillar of this work is the implementation of beneficial ownership registers across the overseas territories and Crown dependencies.

At the Joint Ministerial Council in November 2024, all overseas territories committed to increasing access to company ownership data. The Falkland Islands and St Helena pledged to implement fully public registers by April 2025, joining Montserrat and Gibraltar, which had already done so. Other territories—including Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, and the Turks and Caicos Islands—committed to implementing registers with legitimate interest access by June 2025, with appropriate safeguards to protect privacy in line with their constitutions.

Since then, we have worked closely with each territory to support implementation. I am pleased to report that progress has been made across the board, with several registers now operational.

I welcome the launch of St Helena’s fully public register on 30 June 2025.

The Falkland Islands reaffirmed their commitment to transparency in their public statement on 30 June and intend to implement their register by July 2026 due to capacity constraints. Preparatory work is under way, and UK support remains available to help implement their register as soon as possible.

Gibraltar has maintained a fully public register since 2020. I commend its leadership and welcome its efforts to improve user access.

Montserrat has also played a leading role by launching its public register in 2024. I welcome its leadership.

The Cayman Islands launched their legitimate interest register in February 2025, which allows access by a range of people, including journalists. I welcomed Premier Ebanks’ commitment to make further enhancements in our meeting last month, including more streamlined processes for multiple search requests, including on fees.

The Turks and Caicos Islands launched their legitimate interest register on 30 June, which was very welcome. My understanding is that further enhancements will be made to the TCI register, and we look forward to working with them to deliver on this. I had a constructive conversation with Premier Misick on Wednesday 2 July.

Anguilla is progressing towards implementation later this quarter, and we remain in close contact to support timely delivery. I welcome the discussions I have had with the new Premier Richardson-Hodge.

Bermuda is targeting implementation by July 2026, with interim access for obliged entities. I have made clear our expectation that Bermuda implements a register of beneficial ownership as soon as possible. Officials continue to be in touch with their counterparts in Bermuda to offer support in implementing its register as soon as possible.

The British Virgin Islands published a revised policy on 23 June. Although improvements have been made, I remain concerned about the system’s limitations, particularly regarding proactive investigations, and provision for data subjects to be notified of searches concerning their information. The delay on implementation to April 2026 is disappointing. It is important that further progress is made to improve functionality of their proposed registers. I have set clear expectations and officials are following up directly with counterparts in BVI to bridge this gap and to implement their register as soon as possible. The recent decision by the Financial Action Task Force to place the BVI under increased monitoring underlines our concerns.

Later this month, I intend to convene an illicit finance dialogue with elected leaders of the overseas territories. This will be an opportunity jointly to take stock of progress against the Joint Ministerial Council commitments on beneficial ownership registers, agree further remedial actions, and reaffirm our shared commitment to transparency and accountability. I am pleased that Baroness Hodge, the Prime Minister’s anti-corruption champion, will join us to share her insights and update us on her role and mandate. I will update the House following that dialogue.

[HCWS774]

Security Service: Evidence

Thursday 3rd July 2025 Written Statements

[The Secretary of State for the Home Department (Yvette Cooper)]

The purpose of this statement is to provide an update to the House on MI5’s correction of previously incorrect evidence that it provided to the High Court, the special advocates, the Investigatory Powers Tribunal and the Investigatory Powers Commissioner in relation to the case of agent X. I first notified the House about this matter in my written ministerial statement [Official Report, 12 February 2025; Vol. 762, c. 19WS.].

The High Court yesterday made its judgment regarding MI5’s provision of incorrect evidence, in which it had wrongly told the Court that MI5 had never previously confirmed that agent X was a covert human intelligence source. In fact, it had done so on more than one occasion.

The Court has concluded that the High Court, the Investigatory Powers Tribunal, the Investigatory Powers Commissioner and the associated special advocates were misled by MI5. It criticised MI5 for providing evidence in “a piecemeal and unsatisfactory way” and it also concluded that—once it had been determined that the evidence given to the Court was incorrect—the subsequent investigations carried out suffered from serious procedural deficiencies.

In February, the director general of MI5 publicly apologised to the courts for MI5’s submission of incorrect evidence, and this unreserved apology by MI5 was made again during the court proceedings and has rightly been repeated again yesterday.

I remain deeply concerned that inaccurate evidence was provided to the High Court and Investigatory Powers Tribunal. This was a serious failing by MI5.

The Government accept the High Court’s conclusion that a “further, robust and independent investigation” should take place. I will provide further details to the House in due course.

I have also asked the Attorney General to conduct an internal review of how evidence from MI5 should be prepared and presented in future, to respond to the Court’s specific findings on witness statements in this regard. Alongside this I have asked my officials to review the wider issues raised by this case.

The vital work MI5 does every day keeps our country safe and saves lives in the face of myriad threats. We owe them a debt of gratitude for the work they do. But that is also why it is essential that they always maintain the highest of standards and rigour, including in responding to the courts.

Internal processes at MI5 must improve, starting with the implementation of all recommendations made so far in relation to this case. Director general Sir Ken McCallum has initiated a wide-ranging learning and response programme within MI5, including professional culture to ensure that all its staff—who go above and beyond every day to protect the UK and its citizens—are receptive and thoughtful in response to challenge, and fully understand and value their responsibilities towards oversight bodies. This work will be assured by an external reviewer reporting directly to me.

MI5’s provision of incorrect evidence also arose in the context of legal proceedings in front of the Investigatory Powers Tribunal relating to accusations that agent X committed acts of domestic abuse against their partner, known as “Beth”. Given those proceedings are still ongoing, I am unable to comment on them. However, as I set out in my previous statement, the Government are clear that all organisations must have robust safeguarding policies under continuous review and must take any allegation of domestic abuse extremely seriously. Tackling violence against women and girls is a top priority for this Government and we will use every tool available to target perpetrators and address the root causes of abuse and violence. The public and Parliament must have the highest confidence in the processes in place to protect the most vulnerable and protect those most at risk in society

[HCWS775]

State Threat Prevention and Investigation Measures: 20 December 2024 to 19 March 2025

Thursday 3rd July 2025 Written Statements

[The Minister for Security (Dan Jarvis)]

Section 55(1) of the National Security Act 2023 (the 2023 Act) requires the Secretary of State to report to Parliament as soon as reasonably practicable after the end of every relevant three-month period on the exercise of their STPIM powers under the Act during that period.

STPIMs were introduced through the 2023 Act and came into force on 20 December 2023. There have been no STPIM cases imposed to date.

[HCWS772]

Local Government Outcomes Framework

Thursday 3rd July 2025 Written Statements

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

Local government delivers over 800 essential services that we all rely on, including to the most vulnerable in society. From shaping local places to supporting community wellbeing, councils directly impact the daily lives of local people, whether they feel safe, feel they belong, and whether they are satisfied with their local area and the facilities and services on their doorstep.

A strong and empowered local government is central to delivery of the national priorities we set out in the plan for change—building 1.5 million homes to supply safe and high-quality housing which is accessible and affordable to all, partnering with the NHS to deliver a stable social care system, and breaking down barriers to opportunity.

Councils are responsible for spending billions of public money. This year the Government made available over £69 billion of funding through the settlement to support delivery. As the demand for local services and the complexity of need has grown, the Government have introduced hundreds of ringfenced spending pots with burdensome reporting requirements to micromanage local areas from Whitehall. This must end. Instead, central Government collectively should support and assess councils on what really matters—the most important outcomes focused on people and the places they call home.

I am therefore announcing today a new local government outcomes framework, which forms an integral part of this Government’s reforms to ensure we have a sector which is fit, legal and decent. The framework sets 15 outcomes that the Government have collectively agreed we will work with local authorities to deliver, ranging from preventing homelessness and rough sleeping to community safety and satisfaction. The framework will measure progress towards outcome delivery, so we know that funding is achieving impact. This approach will help to put the right checks and balances in place to ensure value for the taxpayer and results for citizens to whom councils are ultimately responsible.

We will otherwise give local authorities the flexibility and certainty they need to make the right decisions for their local areas, and support public service reform and the move to prevention and early intervention. This represents a decisive move away from the needless red tape and micromanagement of previous Governments, which wasted taxpayers’ resources, while failing to support service improvements and outcomes for residents.

We are today launching a period of engagement with the local government sector and interested parties on how best to measure delivery of each priority outcome and how the framework can complement existing systems of accountability and support. We welcome views during this process and expect to publish a final framework alongside the provisional local government finance settlement before using the framework to support outcome delivery from April 2026.

The framework, alongside our wider raft of reforms, will combine freedom and flexibility with accountability, creating the right conditions for local authorities to make their own decisions and best deliver for their local citizens.

[HCWS773]