Department for Business and Trade

In line with the Trade Strategy, the UK continues to work with trading partners multilaterally, at the OECD and the UN, to pursue opportunities to improve ISDS practice, such as promoting transparency in ISDS proceedings. The proposals being discussed at the UN Commission for International Trade Law (UNCITRAL) and the OECD can be found on their respective websites.

The Business and Trade Secretary is responsible for licensing the export of military goods. In his decisions he draws on advice from the Foreign Secretary, including with regard to compliance with International Humanitarian Law (IHL).

Under the UK’s robust export licensing criteria, the Government will not issue export licences if there is a clear risk that the items might be used to commit or facilitate serious violations of IHL. We review all new licence applications on this basis. We also keep all our extant licences (which typically last for two years) under continual review.

Should licences be found to no longer be consistent with the criteria, the Government can amend, suspend or revoke them.

Bogus or false self-employment is unacceptable and we are committed to robustly tackling it. HMRC will investigate evidence that suggests companies may have misclassified individuals for tax purposes. Employers can also be taken to an employment tribunal if they seek to deny people their employment rights and avoid their own legal obligations by claiming someone is self-employed when they are not.

The Government is ensuring the UK remains a top destination for foreign investment through policy stability, improving planning and championing competitive sectors. We are creating investable opportunities that drive productivity, highquality jobs and sustainable growth. The 2025 Trade Strategy builds on improvements to the Office for Investment to ensure our trade and international agreements strengthen FDI.

The Industrial Strategy supports electronic firms through commitments to supply chains for advanced manufacturing including power electronics, clean energy technologies and digital. Priorities include automotive, batteries, aerospace, space and advanced materials, while semiconductors are identified as a key technology with its own semiconductor programme.

The Government has published a comprehensive assessment on the impact of the Act. It cites academic evidence linking stronger employment protections to improved productivity and highlights that better job security, wellbeing, and reduced undercutting of good employers may lead to a more productive workforce.

The OBR have not yet made an assessment of the Act as policy development is still ongoing. The OBR has stated that it plans to include the Act in its forecasts once details are sufficiently confirmed, and we will support them in preparing for any forecast in future.

This Government is committed to strengthening rights for working parents. From April, Paternity Leave will become a day‑one right, removing qualifying periods that currently prevent 32,000 fathers a year from accessing it.

We also know that more can be done to support working parents. The ongoing Parental Leave and Pay Review is examining all parental leave entitlements, including Paternity Leave and Pay.

The Department for Business and Trade is leading the Government’s response to the Humble Address on Andrew Mountbatten-Windsor’s appointment as Special Representative on Trade and Investment and has set up a small, Director-led team to co-ordinate work to identify relevant records, assist Ministers to meet their obligations to the House, and support the ongoing police investigation into Andrew Mountbatten-Windsor’s conduct in office. The team is also working to support the Government’s response to the Humble Address on Peter Mandelson. The team is drawing extensively on support from officials across the Department, particularly staff with expertise on historical records management. The team is also working closely with other Whitehall Departments, particularly teams in the Foreign, Commonwealth and Development Office and the Cabinet Office.

The government has published a comprehensive assessment of the potential impacts of the zero hours contract measures in the Employment Rights Act 2025.

This analysis includes consideration of increases in labour costs and effects on flexibility for micro, small and medium-sized businesses, and identifies the sectors most likely to be affected by the measures.

The British Business Bank has no plans to accept deposits and is not authorised to do so. This would require an application to the Prudential Regulation Authority, which regulates deposit-taking institutions.

Community Development Finance Institutions (CDFIs) play a vital role in providing affordable credit to underserved consumers and businesses. While it is the case that CDFIs are less prevalent in some areas, they have the potential to serve every part of the UK. The government and British Business Bank are collaborating with Responsible Finance and others on the UK Community Finance Partnership Taskforce, an initiative to grow the CDFI sector substantially over the next 5-10 years.

The UK-Kazakhstan Memorandum of Understanding on Critical Minerals Cooperation has not been published and there are no plans to do so. However, it is referenced in UK's Critical Minerals Strategy published in November 2025.

The Government remains committed to supporting the UK steel sector. A robust position on trade is critical for steel, underpinning our approach to defending against unfair practices and global overcapacity. The Government will ensure there is a plan in place following the expiry of the Safeguard in June. We are prioritising developing a robust trade measure to protect our domestic sector and will announce our proposals as soon as we can.

We are mindful of giving industry notice for their commercial decision making. This Government is clear that we must secure our domestic steelmaking.

The policy paper 'The fire safety of domestic upholstered furniture', published on 22 January 2025, set out that the Government is committed to delivering reforms to the Furniture and Furnishings (Fire) (Safety) Regulations 1988 that maintain a high level of fire safety while also facilitating a reduction in the use of chemical flame retardants (CFRs).

Since publication, the Department for Business and Trade has undertaken targeted engagement to inform next steps, including a roundtable in July 2025 that considered issues such as CFR labelling and open-flame testing. The Government will provide an update on this in due course.

The policy paper 'The fire safety of domestic upholstered furniture', published on 22 January 2025, set out that the Government is committed to delivering reforms to the Furniture and Furnishings (Fire) (Safety) Regulations 1988 that maintain a high level of fire safety while also facilitating a reduction in the use of chemical flame retardants (CFRs).

Since publication, the Department for Business and Trade has undertaken targeted engagement to inform next steps, including a roundtable in July 2025 that considered issues such as CFR labelling and open-flame testing. The Government will provide an update on this in due course.

The Department for Business and Trade (DBT) continues to consider the recommendations from the Low Pay Commission (LPC)'s report on the accommodation offset, including the recommendation about its application to seafarers. As part of this work we are engaging with the Department for Transport. We anticipate responding to the LPC's recommendations regarding the accommodation offset in due course.

The Department for Business and Trade (DBT) continues to consider the recommendations from the Low Pay Commission (LPC)'s report on the accommodation offset, including the recommendation about its application to seafarers. As part of this work we are engaging with the Department for Transport. We anticipate responding to the LPC's recommendations regarding the accommodation offset in due course.

The UK steel industry faces challenging global conditions due to overcapacity and trade deflection, which threatens the long‑term viability of domestic production. That is why last year the government amended the steel safeguard to ensure the overall effectiveness of the measure.

The safeguard is due to expire in June 2025, and we are developing a new, robust trade measure to support resilient and secure supply chains. Officials are working closely with stakeholders across the sector, including trade associations representing SMEs, and we are assessing a full range of supply chain interests in designing the measure.

Creating the Fair Work Agency is a significant step forward in strengthening the enforcement of employment rights. All transfers of staff into the organisation will be carried out in line with the principles set out in the Cabinet Office Statement of Practice regarding such matters.

The Consultation on trade union right of access received a total of 1612 responses. Policy officials are in the process of reviewing the responses to the consultation, and the government will publish a formal response in due course detailing our analysis.

The number of full-time equivalent (“FTE”) staff assigned to the Competition and Markets Authority’s Sustainability Taskforce was 3.9 FTE in 2024-25 and 3.5 FTE in 2025-26. Data is not yet available for financial year 2026-27.

Product safety laws require consumer products containing lithium-ion batteries, and batteries themselves, to be safe when they are placed on the market. Businesses have obligations to ensure the safety of products they manufacturer or import, and regulators have powers to act when products do not comply. In 2024, my department published statutory guidelines covering the safety of lithium-ion e-bike batteries. In 2025 the Office for Product Safety and Standards published research by Warwick Manufacturing Group into e-bike battery safety, which provides new insight into how lithium-ion batteries fail in real-world scenarios, and best practices for safer battery design.

Civil Service recruitment is governed by the Constitutional Reform and Governance Act (CRaGA) 2010, which requires that all appointments to the Civil Service are made on merit on the basis of fair and open competition.

The Department for Business and Trade does not recruit candidates on the basis of protected characteristics. All appointments are made on merit, in line with the Civil Service Commission's Recruitment Principles. Compliance with these principles is overseen by the independent Civil Service Commission.

In light of the expiry of the steel safeguard in June 2025, we are currently developing a new, robust trade measure to support resilient and secure supply chains.

Officials are working closely with stakeholders across the sector, and we are assessing a full range of supply chain interests in designing the measure, including for developing nations. This also includes consideration of UK demand patterns and import shares. Our approach will remain firmly evidence based and fully consistent with the UK’s international and domestic legal obligations.

In light of the expiry of the steel safeguard in June 2025, we are currently developing a new, robust trade measure to support resilient and secure supply chains.

Officials are working closely with stakeholders across the sector, and we are assessing a full range of supply chain interests in designing the measure, including for developing nations. This also includes consideration of UK demand patterns and import shares. Our approach will remain firmly evidence based and fully consistent with the UK’s international and domestic legal obligations.

The UK and EU are close partners with shared interests. We are engaging intensively on steel tariffs with the European Commission and are working to find a bilateral solution that protects vital UK-EU steel trade. We have made clear that restricting UK access to the EU market would disrupt key supply chains and harm both our industries.

In parallel, we are also prioritising the development of a robust measure of our own in light of the UK steel safeguard expiring in June to protect our domestic sector, making sure we maintain secure and resilient supply chains.

The UK and EU are close partners with shared interests. We are engaging intensively on steel tariffs with the European Commission and are working to find a bilateral solution that protects vital UK-EU steel trade. We have made clear that restricting UK access to the EU market would disrupt key supply chains and harm both our industries.

In parallel, we are also prioritising the development of a robust measure of our own in light of the UK steel safeguard expiring in June to protect our domestic sector, making sure we maintain secure and resilient supply chains.

This Government notes the publication of the proposed EU Industrial Accelerator Act (IAA) and the wider Made in Europe agenda. In general, the proposal suggests that UK content would be considered equivalent to “Union origin” by default for public procurement and public support schemes (e.g. subsidies). However, some of the specific automotive provisions are very concerning and we are in close touch with industry on this. The proposal remains at the Commission stage and is subject to legislative processes. We will continue to monitor its progress and press the EU to avoid any detrimental impact on the UK and EU’s automotive sectors and on our uniquely integrated UK-EU supply chains.

The Government recently closed a consultation on eligibility for the British Industrial Competitiveness Scheme (BICS) where businesses were invited to share their views on the proposed methodology and an indicative list of eligible sectors. Decisions on eligibility will now be taken to ensure the scheme is properly geared towards boosting growth in the economy; through attracting investment in Industrial Strategy frontier manufacturing sectors and foundational manufacturing industries that supply key inputs to the Industrial Strategy frontier sectors.

The Industrial Strategy frontier and foundational sectors were selected following the Government’s consultation of the Modern Industrial Strategy in the autumn of 2024.

The UK will not make financial contributions to the European Union as a consequence of the provisions on competition cooperation. The UK‑EU Competition Cooperation Agreement signed on 25 February 2026 facilitates enhanced dialogue and operational cooperation between the Competition and Markets Authority, the European Commission and the National Competition Authorities of EU Member States. The agreement will be laid before Parliament under the Constitutional Reform and Governance Act 2010 (CRaG) in due course.

Ministers and officials have discussions with Royal Mail on a regular basis in its capacity as the universal service provider.

All employers must comply with their legal obligations to ensure that their workforce receive the rights and protections to which they are entitled. However, Royal Mail is an independent business, and the government has no role in its operational decisions.

Adoption of Artificial Intelligence by Small and Medium-sized Enterprises (SMEs) can unlock significant productivity gains. An OECD paper published last year estimates that AI could increase UK annual labour productivity growth by 1.4 to 2.7 percentage points over 10 years. This has been estimated by DSIT analysts to be equivalent to £55 billion to £140 billion economic (GVA) growth.

It is important for government to support with this, in partnership with industry. That is why the Department for Business and Trade created the SME Digital Adoption Taskforce and are working to deliver on their ten recommendations, including a series of industry roundtables and local-level pilots to tackle barriers SMEs face when adopting digital technologies including AI.

All CPTPP accession applications remain under consideration by CPTPP members, and any decision to progress applications must be agreed by consensus.

The UK Government does not provide an ongoing commentary on applications to protect the confidentiality of CPTPP discussions and to observe the collective principles of the group. The UK Government has met with Taiwan, and other applicants, to discuss the UK's own experience of the accession process.

The UK has a strong trading relationship with Taiwan and engages on trade policy priorities with Taiwan through annual Trade Talks and the delivery of the UK-Taiwan Enhanced Trade Partnership.

The British Industrial Competitiveness Scheme (BICS) is a flagship policy designed to address high industrial electricity costs in manufacturing and boost their global competitiveness and will apply to eligible businesses in Wales. There are separate plans to increase the level of the discount on electricity network charges from 60% to 90% under the Network Charging Compensation Scheme. This will benefit several businesses across Wales who currently receive support through the British Industry Supercharger. The Government has also launched a consultation on Corporate Power Purchase Agreements to help businesses secure more stable electricity for the long term.

Ministerial colleagues and I have had regular engagement with the Welsh Government on steel, through interministerial discussions, and official level engagement.

The Department has worked closely with the Welsh Government to develop the upcoming steel strategy and the Cabinet Secretary for the Economy, Energy and Planning is a member of the Steel Council. We have collaborated on areas of the strategy that have devolved elements including skills, procurement and R&D, as well as discussions to ensure the successful transformation of Port Talbot.

The Government remains firmly committed to the EV transition and increasing vehicle manufacturing in the UK. This is why we have committed £4 billion of capital and R&D funding through to 2035 for our flagship DRIVE35 (Driving Research and Investment in Vehicle Electrification) programme which will support the latest R&D in strategic vehicle technologies, accelerate commercial scale up, and unlock investment in their industrialisation. We continue to listen closely to feedback from vehicle manufacturers.

In addition, we are investing an additional £1.3 billion in the Electric Car Grant, taking total funding to £2 billion, and extending it until 2030 which will mean more motorists will benefit from discounts of up to £3,750.

Our new British Industrial Competitiveness Scheme will reduce electricity costs by up to 25% from 2027, bringing electricity costs more in line with other economies in Europe, and help level the playing field for British businesses.

The scheme will benefit frontier manufacturing industries identified in the Industrial Strategy, such as automotive, as well as foundational manufacturing industries in their supply chains. Responses to the recent Government consultation are currently being reviewed, and Government's response will be published shortly.

We expect to lay secondary legislation to deliver the sanctions end-use control this Spring, subject to the Parliamentary timetable.

The sanctions end-use control is intended to apply to exports which are not already subject to strategic export controls, where a risk of circumvention to a sanctioned destination is identified. The full scope of this measure and details on its application and implementation will be set out in guidance upon laying the legislation.

The Government acknowledges the challenges the EV sector faces due to volatile consumer demand. However, our ambition is to make the UK one of the best locations in the world to manufacture electric vehicles. We engage closely with UK industry on the challenges it faces and how we can ensure the sector remains internationally competitive and a global leader in innovation.

Our flagship DRIVE35 (Driving Research and Investment in Vehicle Electrification) commits £4 billion of capital and R&D funding to the British automotive industry through to 2035. It will support the latest research and development, accelerate commercial scale up, and increase capital investment in zero emission vehicles, batteries and their supply chains. In addition, we are making an additional £200 million available for EV charging infrastructure on top of the £400 million committed at the summer 2025 Spending Review.

Under the UK-Ukraine 100 Year Partnership, the Department for Business and Trade has provided trade support to hundreds of UK businesses in Ukraine through:

• The Free Trade Agreement and tariff liberalisation to simplify trade;
• Tackling market access barriers which reduce or prevent trade;
• Maintaining up to £3.5bn in UK Export Finance cover through UKEF;
• DBT’s Project Development Programme to embed British involvement in reconstruction projects;
• A procurement dashboard providing easy access to World Bank, EIB, and EBRD opportunities;
• Business promotion and introduction opportunities such as trade missions, round tables, and international conferences including the ReBuild Ukraine Expo.

I am delighted that many Indian students come to study in UK institutions and have done so for decades, enhancing our educational, diplomatic, political and business relationships, which is why India is one of the priority countries in our International Education Strategy 2026. Amongst other things, DBT’s International Education team has organised four education trade missions to India since 2020. One of the outcomes of this activity has been the signing of the UK-India MoU on the Mutual Recognition of Qualifications (MRQs) in 2022, which is seeing a step change in UK-India university partnerships. As part of the International Education Strategy, we engage with the alumni network, led by the British Council, as a further means to promote trade and investment opportunities.

I am delighted that many Indian students come to study in UK institutions and have done so for decades, enhancing our educational, diplomatic, political and business relationships, which is why India is one of the priority countries in our International Education Strategy 2026. Amongst other things, DBT’s International Education team has organised four education trade missions to India since 2020. One of the outcomes of this activity has been the signing of the UK-India MoU on the Mutual Recognition of Qualifications (MRQs) in 2022, which is seeing a step change in UK-India university partnerships. As part of the International Education Strategy, we engage with the alumni network, led by the British Council, as a further means to promote trade and investment opportunities.

I am delighted that many Indian students come to study in UK institutions and have done so for decades, enhancing our educational, diplomatic, political and business relationships, which is why India is one of the priority countries in our International Education Strategy 2026. Amongst other things, DBT’s International Education team has organised four education trade missions to India since 2020. One of the outcomes of this activity has been the signing of the UK-India MoU on the Mutual Recognition of Qualifications (MRQs) in 2022, which is seeing a step change in UK-India university partnerships. As part of the International Education Strategy, we engage with the alumni network, led by the British Council, as a further means to promote trade and investment opportunities.

The Department for Business and Trade hosted the first official-level EU Files Forum with key UK Business Representative Organisations on 5 June 2025. The Forum meets on a quarterly basis to facilitate a dialogue between government and the UK business community on evolving EU legislation.

Since June, the Forum has met on the following dates:

• 10 September 2025

• 4 December 2025

• 5 March 2026

The Government recognises that register accuracy must be assessed, and this needs to be through a range of measures. The following have been taken to date:

• Monitoring compliant companies - to show how up to date the register is based on filed confirmation statements.
• Verified identities – tracking the proportion of Director and Persons of Significant Control (PSC) appointments that have been verified since the start of the IDV transition year from 18 November 2025.
• Corrections/ Removals – tracking the number of companies where actions have been taken under ECCTA to correct or remove them from the register

Additional measures are in development to provide further insights.

Flexible working can lead to happier, healthier and more productive employees. This is good for workers and good for businesses.

Businesses can reject requests for remote working on business grounds, set out in legislation, including high costs or limited ability to meet customer demand.

Changes through the Employment Rights Act will encourage conversations between employers and employees about where flexibility might be possible.

In 2025, we published our modern Industrial Strategy which will support creating good jobs and higher incomes across the country, including £1.2 billion of additional investment in skills per year by 2028-29.