Business Productivity Review
Kelly Tolhurst Excerpts(5 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
The UK has some of the world’s most productive businesses and has a strong business environment upon which we can build. Despite this, the UK has a long-standing productivity gap with international competitors. That is why we launched the joint Department for Business, Energy and Industrial Strategy and HM Treasury, business productivity review to understand the decisions and actions taken by businesses that affect their own productivity.
The potential prize is significant. The Bank of England estimates that if UK firms could move along the productivity distribution into the next quartile, then this could see a boost to UK GDP by around £270 billion in today’s prices.
To inform the review we launched a call for evidence in May 2018 and received more than 140 written responses. Meetings were held with 3,000 business leaders and we also engaged with sector trade bodies and membership organisations that jointly represent over 500,000 businesses across the UK, including Scotland, Wales and Northern Ireland.
The business productivity review we are publishing today identifies best practice used by our leading businesses and sets out ten key actions that will support businesses to become more productive these include:
£20 million to strengthen local England peer to peer networks in England focused on business improvement so that thousands of business leaders can share expertise on leadership, business development and technology adoption.
£11 million to create a small business leadership programme in England to provide small business leaders with leadership training, building on existing world-class training programmes: such as Be The Business’ productivity through people, Lancaster University’s LEAD and Goldman Sachs 10,000 small businesses programme.
£25 million through the knowledge transfer partnerships to allow over 200 more UK based businesses per year to access the skills and talent to improve their business performance and productivity by improving how well they are managed. Today we are announcing that there will be a dedicated management KTP round which will be open on 12 December 2019 and closes on 19 February 2020.
Work with trade bodies, sector councils and Be The Business to ensure small businesses have access to business mentors from the UK’s leading and inspiring businesses.
Development of the evidence base on productivity, including through the recently announced productivity institute and the BEIS business support evaluation framework.
Work with the behavioural insights team to improve messaging to businesses, and work with trusted intermediaries—e.g. banks, accountants, trade bodies—to support small businesses to take action.
Improve the customer experience for businesses accessing online Government information and services for growth domestically and internationally.
Work with the private sector, such as Be The Business, to ensure businesses have access to clear advice and the tools they need to help them both understand and improve their productivity.
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People with Significant Control: Post-Implementation Review
Kelly Tolhurst Excerpts(5 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
The Government will today publish the report on the statutory post-implementation review of the People with Significant Control (PSC) regulations. We are required to complete a PIR by virtue of various regulations:
Small Business, Enterprise and Employment Act 2015;
The Register of People with Significant Control Regulations 2016;
The Limited Liability Partnerships (Register of People with Significant Control) Regulations 2016;
The European Public Limited-Liability Company (Register of People with Significant Control) Regulations 2016;
The Scottish Partnerships (Register of People with Significant Control) Regulations 2017. The People with Significant Control (PSC) register was established in 2016 to enhance the transparency of ultimate (beneficial) ownership of UK companies. The goals of the register are to promote good corporate behaviour and to deter illicit activity. UK companies and partnerships in scope of the regulations are required to keep a register of their beneficial owners and to report this information to Companies House.
This is the first review of the PSC regulations since the register was established. My Department assessed the operation of the register, the stakeholder engagement with it and the burdens the requirements place on business.
The review report concludes that the PSC register is meeting its objectives and that the costs to business have been proportionate and in line with the original estimates. The register is widely used, has a positive economic effect and contributes to the fight against criminal use of companies.
The report notes the importance of ensuring the reliability of the PSC register information. This is being considered and will be addressed as part of the wider review of the corporate transparency and register reform.
The PSC regulations will, therefore, remain in their current form and we will continue to monitor the operation of the register. The next statutory post-implementation review of the PSC regulations will be carried out within the next five years.
A copy of the post-implementation review report will be laid before Parliament.
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Insolvency Service Performance Targets 2019-20
Kelly Tolhurst Excerpts(5 years ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
I have set performance targets for the Insolvency Service for the financial year 2019-20. The Insolvency Service is the Government agency that provides public services to those affected by financial distress or failure. Ministerial Target 2018-19 target 2018-19 performance 2019-20 target Delivering economic confidence Per cent of users[1] who are satisfied with the Insolvency Service 85% or greater 84% 85% or greater Supporting those in financial distress Average calendar days taken to action a redundancy claim 14 days or fewer 12.2 days 14 days or fewer Tackling financial wrongdoing Average time taken to obtain a disqualification 21 months or fewer 19.9 months 20 months or fewer Average time taken to obtain a bankruptcy restriction 10 months or fewer 8.6 months 10 months or fewer Average time taken to instigate a criminal prosecution 24 months or fewer 25.9 months 24 months or fewer Maximising returns to creditors Per cent of reports to creditors issued within 15 calendar days of an attended interview [2] 90% or greater 92.6% 91% or greater Total value distributed to creditors [3] £55m or greater £61.3m £60m or greater Financial management Expenditure to be managed within budget Achieve Achieved Achieve
The Insolvency Service provides the frameworks that deal with insolvency and the financial misconduct that sometimes accompanies or leads to it. Its aim is to deliver economic confidence through a corporate and personal insolvency regime which is regarded as fair and that gives investors and lenders confidence to take the commercial risks necessary to support economic growth.
In 2019-20, an important priority for the Insolvency Service will be to maintain its current high level of customer service whilst delivering a major change programme. I have set measures and targets at a level which reflect the challenges that the agency continues to face.
[1] a) Debt relief order debtors; b) approved intermediaries; c) bankrupts; d) directors of insolvent companies; e) redundancy payment claimants; f) institutional creditors; g) non-institutional creditors; h) insolvency practitioners.
[2] Or where a decision is made that no interview is required or the agreed point of non-surrender.
[3] Excludes distributions relating to Carillion.
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Draft Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019
Kelly Tolhurst Excerpts(5 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
I beg to move,
That the Committee has considered the draft Insolvency (Amendment) (EU Exit) (No. 2) Regulations 2019.
It is a pleasure to serve under your chairmanship, Mr Pritchard. The draft regulations were laid before the House on 22 July. They supplement the Insolvency (Amendment) (EU Exit) Regulations 2019, which Parliament approved earlier this year, and will ensure that UK insolvency law still operates effectively should we leave the EU without a withdrawal agreement. The draft regulations particularly address a consequence of the change in the date of the UK’s departure from the European Union. They update the preparations that we have already made in case we leave the EU without a withdrawal agreement, and take into account new law that has come into effect since 29 March.
I emphasise that the Government and the UK insolvency sector agree that our co-operation with the EU in this area should continue. It is beneficial for both the UK and the EU, and reaching a deal with the EU before or after exit day remains a priority. That co-operation is underpinned by the rules in the EU insolvency regulation, which provides a framework for the mutual cross-border reciprocity of insolvency matters. Under those EU rules, once main insolvency proceedings have been opened in a single member state, the insolvency practitioner appointed to those proceedings can deal with assets throughout the EU. That is cost-efficient and effective; it gives us the best possible chance of rescuing insolvent businesses and returns as much money as possible to creditors.
In preparing to leave the EU, we must ensure that cross-border insolvencies can still be dealt with efficiently. If there is no withdrawal agreement, however, we cannot rely on the continuation of reciprocity arrangements, which is why the Government introduced the earlier regulations. That statutory instrument, which Parliament passed in January, aimed to prevent an imbalance whereby the UK has to recognise insolvency practices and court judgments originating in the EU with no guarantee of recognition from the EU of UK insolvencies, as the UK would no longer be a member state. The earlier regulations therefore remove the majority of the EU insolvency regulation from UK law.
The only part of the EU regulation that will be retained rather than revoked is the section dealing with jurisdiction when opening insolvency proceedings. The earlier regulations ensure that our courts are not restricted by EU rules in opening insolvency proceedings in the UK. We will keep the same categories of cross-border proceedings, which will help courts in EU member states to assess UK insolvency cases and may smooth the process of acceptance for UK cases under their domestic law. The earlier regulations also removed references to the EU rules from our law as it stood on 29 March. Since we cannot guarantee that UK orders will continue to receive automatic recognition in the EU, it is right that insolvencies commenced in the EU will not be automatically recognised in the UK.
The draft regulations, which the Government have introduced with the consent of the Scottish Government and the Scottish Parliament, are needed for two reasons. First, they extend the provisions contained in the earlier regulations to the modernised Scottish insolvency rules. The new Scottish legislation came into force after 31 March, so it was not possible to amend it with the earlier regulations. To ensure that we are consistent in our approach to cross-border insolvencies throughout the UK and provide legal certainty, the draft regulations update the new Scottish rules by removing current references to EU insolvency law.
Secondly, the draft regulations deal with one of the articles of the EU insolvency regulation. Unlike the majority of the EU regulation, which has been in force since 2017, article 25 came into force on 26 June 2019. As it was not previously expected to be in force on exit day, it was not appropriate to revoke it in the earlier insolvency regulations. Article 25 relates to the EU’s legal obligations to integrate member states’ insolvency registers, so that they can be searched centrally. If the UK is not participating in the system of mutual recognition and co-operation, it would be inappropriate to incur the costs involved in a measure associated with the rest of the framework. Therefore, our second set of EU exit regulations will ensure that article 25 is revoked on 31 October should we leave without a withdrawal agreement.
The Government’s assessment is that losing automatic recognition of UK insolvencies in the EU will result in an increased cost for insolvencies in the region of £2.7 million per year. It has not been possible to estimate the additional indirect impacts on the UK insolvency sector of the loss of co-operation, or the indirect impact on the wider economies of the UK and the EU member states. However, our two EU exit instruments in this area combine to ensure that the direct impact of leaving the EU will not be exacerbated by retaining inoperable laws, which could lead only to a lack of clarity on their application, increased costs and reduced returns to creditors in insolvency situations.
The insolvency and legal services sectors were encouraged to submit their views on the policy we adopted when the Government introduced the first set of EU exit regulations. Senior insolvency professionals and R3, the insolvency trade body, all confirm their support for this approach.
Without these regulations, if we leave the EU without a withdrawal agreement, the law in Scotland will not operate effectively and article 25 of the EU insolvency regulation will continue to be part of our law. Therefore, if the regulations are not passed today, the outcome will be uncertainty for individuals and businesses dealing with insolvencies in Scotland, and for insolvency practitioners managing those cases. Failing to prepare properly can lead only to increased costs and delays, lower returns to creditors and fewer businesses being rescued.
I therefore commend these regulations to the Committee.
Kelly Tolhurst
I thank the hon. Member for Sefton Central. Part of the joy of my work has been standing opposite him in Committee numerous times over the past 12 months. He is probably unhappy with that, but I thank him for his comments on the regulations. I will answer a couple of his points.
On consulting particular stakeholders about the regulations, there was no formal consultation, but the Insolvency Service regularly engages with and meets all stakeholders in that area, particularly R3, one of the insolvency practitioners, which fed in its comments. There has been no formal consultation, but those organisations have had many opportunities to feed in comments and speak to the Insolvency Service.
On the hon. Gentleman’s particular points on no deal, he will know that there is a Bill on the Floor of the House today, which states that we will be able to agree a free trade agreement by the end of December 2020. That agreement is the will not only of the UK, but of the EU. The Prime Minister has made a commitment with the European Union to deliver that by December 2020. I might be going off the subject slightly here, but I encourage the hon. Member for Sefton Central to support the Prime Minister and the deal today so that we can deliver mutual co-operation on insolvency rules going forward. That will absolutely prevent no deal.
I thank the hon. Member for Glasgow Central for her comments. I also thank the Scottish Government and Parliament for their co-operation and their work with us in this area. She is correct on the impact assessment. It was £2.7 million and regarded as de minimis, but the cost has developed from the costs related to establishing insolvencies in other EU states, which would have additional costs if we were not aiming to have an agreement. That is where the impact assessment has come from.
To sum up, the changes proposed by the regulations ensure clarity and legal consistency across the United Kingdom for people using the insolvency regime. The regulations also ensure that the United Kingdom is not bound by the obligations of the EU insolvency regulation when the UK will no longer benefit from that regime. I commend the regulations to the Committee.
Question put and agreed to.
ENABLE Funding Scheme
Kelly Tolhurst Excerpts(5 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
ENABLE Funding is a scheme administered by the British Business Bank which provides senior funding (effectively at commercial terms) to delivery partners and is designed to increase funding diversification for leasing and asset finance providers and peer-to-peer lenders, with the overall purpose of increasing the supply of debt to underlying small and medium-sized enterprises.
Since the scheme began in 2014, senior secured funding has been provided to various delivery partners and their receivable portfolios have been ‘warehoused’ in a special purpose entity. The aggregate sum of certain receivable portfolios reached a desired critical mass whereby a capital markets refinancing (or securitisation) can proceed, repaying the funding. The transaction is expected to complete before the end of the financial year 2019-20.
As part of the transaction, a credit enhancement in the form of a capped second loss guarantee will be agreed. The guarantee issued by the Department is capped at £66 million and the ‘second loss’ element means that the participating delivery partners will fund and suffer an agreed amount up to the first loss threshold should defaults in the portfolio occur.
The guarantee is not expected to last for more than seven years and in practice will likely be much shorter. The beneficiary is the securitisation vehicle (a newly incorporated entity) which will purchase the facilities as part of the transaction. The Department will receive a commercial fee in return for the guarantee.
As a matter of record, I will be laying a departmental minute today explaining the procedure followed and containing a description of the liability undertaken.
[HCWS29]
Oral Answers to Questions
Kelly Tolhurst Excerpts(5 years, 1 month ago)
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David Hanson (Delyn) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
Average FTSE 100 CEO pay more than quadrupled from £1 million in 1998 to £4.5 million in 2012. Since then, the median average has fallen by £1.04 million. We have recently implemented a number of reforms to make further improvements to executive pay transparency and accountability through vehicles such as the UK corporate governance code.
David Hanson
The Government’s Green Paper on corporate responsibility was published more than two years ago, and since that time we have seen corporate pay issues in Carillion and only last month in Thomas Cook. Last week, the Business, Energy and Industrial Strategy Committee questioned the chief executive of Thomas Cook about corporate responsibility issues on pay. What precisely have the Government done to act on corporate pay since that Green Paper two years ago?
Kelly Tolhurst
I thank the right hon. Gentleman for his question. As I mentioned, CEO pay has fallen. There were reforms at the beginning of the year, to ensure that shareholders’ voices are heard more in the boardroom. There is a binding vote every three years on remuneration policy, and there is now an advisory vote every year. If it is not successful, pay has to be put before the next AGM. As he will know, the Investment Association now keeps a record, at the Government’s request, to ensure that we are tracking pay where there is shareholder dissent.
Mr Steve Baker (Wycombe) (Con)
Does my hon. Friend agree that the right way to control executive pay is to increase democratic control of capital, not by increasing the powers of the state but by dramatically improving the rights of shareholders?
Kelly Tolhurst
My hon. Friend is right, and that is what the Government’s reforms have done. As I outlined, shareholders have a vote every three years and an advisory vote every year. Through the reforms, we have also enabled employee directors, non-exec directors or employee councils to have representation on the board. Companies now have to explain their wider pay policy and how it affects the whole company.
Rachel Reeves (Leeds West) (Lab)
The chief executive of Thomas Cook was paid more than £8 million during his time as chief executive of a company that has now collapsed, costing 9,000 jobs in this country, with 150,000 customers having to be brought home at a cost to the taxpayer. When he gave evidence to our Select Committee last week, he said he would reflect on whether he will pay back any of his bonus. What will the Government do to ensure that bonuses can be and have to be clawed back after catastrophic failures of businesses like that?
Kelly Tolhurst
I thank the hon. Lady for the work she is doing on the Select Committee. Thomas Cook did have clawback and malus arrangements in place for the recovery of directors’ bonus payments in specific circumstances, as required by the UK corporate governance code. My right hon. Friend the Secretary of State has asked the Insolvency Service to fast-track an investigation, and it will report back. As the hon. Lady outlined, the CEO did advise the Committee on 15 October that he would consider voluntarily surrendering some of his 2017 cash bonus, but it must be pointed out that no bonus was paid to the ex-CEO in 2018.
Mr David Davis (Haltemprice and Howden) (Con)
The hon. Member for Leeds West (Rachel Reeves) highlighted the point that the biggest concern is not simply how much is paid to executives, but their being paid for failure, not for success. The current arrangements in British company law allow chief executives and other executives to be paid on the basis of share price and allow them to buy back shares, propping up the share price. This is a formula for payment for failure. Is the Department looking at that?
Kelly Tolhurst
I thank my right hon. Friend for raising this. Part of the reforms in January was to make organisations report back on the effect of share price growth on executive pay outcomes. We published some evidence before the summer from a review undertaken on share buy-backs, and there was no clear evidence to suggest that they did have a perverse outcome.
Faisal Rashid (Warrington South) (Lab)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
All workers in the UK have the right to join a union and to participate in union activities. That right is protected under trade union law, and 23% of UK employees are union members. That is higher than some European countries, including France and Germany, and it demonstrates that union rights to recruit and organise through individual members and officials are sufficient.
Faisal Rashid
This week shocking reports have emerged about dire workplace conditions at Amazon. Those exploited workers desperately need a union, but workers at Amazon have had their shift patterns interrupted just to prevent them from talking to union officials on the way to work. When will the Government put an end to those draconian anti-union practices, and will the Secretary of State launch an investigation into reports of workers’ rights being violated at Amazon?
Kelly Tolhurst
I thank the hon. Gentleman for his question. It is the right of unions and employers to come to an agreement about representation in the workplace. The Central Arbitration Committee is available if that is refused. With regard to workers’ rights, the good work plan represents the biggest reform of workers’ rights in 20 years. We are determined to continue on that path, because workers’ rights are important to this Government.
Joanna Cherry (Edinburgh South West) (SNP)
Kelly Tolhurst
It will come as no surprise that I completely disagree with the hon. and learned Lady. The Prime Minister has been clear: not only will we maintain workers’ rights, but we will enhance them. Even in my role as a Minister over the past 12 years, everything has been focused on ensuring we are ahead of the European Union. We are committed. We have never, ever, not once ever put forward a position where we have shown we will row back on workers’ rights.
Laura Pidcock (North West Durham) (Lab)
Wow! What an answer. This is the situation for workers at Amazon: their bones are being broken; they are being knocked unconscious; and they are being taken away in ambulances. Where is the urgency to step in and stop what is happening to these workers? Are the Government going to demand an urgent inquiry, or do they wash their hands of these workers? At the heart of the issue at Amazon is a hostile environment for trade unions, which are often the only force that can resist exploitative practices. A Labour Government would legislate to enforce access rights for trade unions and a robust enforcement regime. Why are the Government sitting on their hands while the richest man in the world treats his workers so disgustingly on their watch?
Kelly Tolhurst
The hon. Lady makes allegations about a particular organisation. She is welcome to write to me further about those allegations, but I remind her that sufficient workplace laws are in place. We have the Health and Safety Executive, for example. If she has evidence of certain employers breaking the law, I would expect it to be passed on to the relevant agencies. As I outlined, our Prime Minister is committed to ensuring that we keep step with the European Union and go further. I believe the actions the Government have taken over recent months prove that.
Gareth Johnson (Dartford) (Con)
Eddie Hughes (Walsall North) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
The Government are wholly committed to women’s participation in the workforce, including by supporting new mothers to return to, and thrive in, work. That is why we recently consulted on a broad range of proposals to help families to balance their work and home commitments. We have also announced our intention to extend redundancy protection to new mothers returning to work.
Eddie Hughes
I thank the Minister for that answer. What support are the Government giving to new mothers who, sadly, have experienced stillbirth?
Kelly Tolhurst
First, I pay tribute to my hon. Friend and Members across the House who participated in Baby Loss Awareness Week and the emotional debate in the House. The Government have committed to introducing parental bereavement leave and pay, which will apply to parents who lose a child under the age of 18, including parents with stillbirth. We plan to lay the regulations to implement the policy in January, ready to come into force on 6 April. That will support new mothers facing these tragic and difficult circumstances.
Gareth Thomas (Harrow West) (Lab/Co-op)
Discrimination against new mothers and pregnant women is still widespread in our country. When are the Government going to take it seriously?
Kelly Tolhurst
I point out that discrimination in the workplace is illegal; it is unlawful. I have just outlined that we have announced our intention to extend redundancy protection for those mothers who return to work.
Mark Pawsey (Rugby) (Con)
Vicky Ford (Chelmsford) (Con)
The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
Good-quality flexible working is important to all employees and is central to good work. Workers’ rights matter. Over 97% of employers offer some form of flexible working, and our recent consultation looked at how further to increase the prevalence of flexible working by advertising jobs as flexible and by requiring large employers to publish their policy.
Kerry McCarthy (Bristol East) (Lab)
Liz Twist (Blaydon) (Lab)
Kelly Tolhurst
I thank the hon. Lady for her question and I am more than happy to meet her to discuss her constituency in further detail if she would require. There is no programme of closures and the Post Office is working extremely hard, where post offices do shut for any, sometimes unpredictable, reason, to find replacements. We do have outreach services that are available when there is a lack of service, but I am happy to speak with her further about that.
Greg Clark (Tunbridge Wells) (Ind)
I welcome the Secretary of State to the Dispatch Box and hope that she will have distinguished tenure at this important time. She will know that the recommendations of the independent review of the Financial Reporting Council, conducted by Sir John Kingman, were widely endorsed and are urgently required. I was concerned that the statutory implementation of those recommendations was not included in the Queen’s Speech. Can she assure me that she is not going to miss a golden opportunity to make these reforms and give a big boost to our standing in the world?
Karen Lee (Lincoln) (Lab)
Kelly Tolhurst
I am not sure whether the hon. Lady is aware that we undertook one of the biggest recalls that has happened this year: the recall of Whirlpool tumble dryers. She will know that I have updated the House on the progress we have made on that. Since 12 June, when I announced the recall, we have had more than 90,000 contacts, with people getting in touch about recall. So we are continuing to improve and work on recall.
Paul Masterton (East Renfrewshire) (Con)
More than half a dozen post offices in East Renfrewshire have closed over the past couple of years and not one has been able to be replaced, because it was not a viable business proposition for retailers. Does the Minister think that increased fees under the banking framework agreement will be enough to build the sustainability of the post office network?
Kelly Tolhurst
I thank my hon. Friend for that question. I am happy to discuss particular issues in his constituency. I believe that the new banking framework and the increase in remuneration that postmasters will be receiving as part of that framework will make a significant impact for postmasters. But he is right to say that we must not stop there. I am working hard, with the Post Office and the National Federation of SubPostmasters, to make sure that we have a post office network that is fit, relevant and viable.
Tommy Sheppard (Edinburgh East) (SNP)
Emma Dent Coad (Kensington) (Lab)
Kelly Tolhurst
I thank the hon. Lady for her question, but I have to disappoint her because my answer to it is no.
Kirstene Hair (Angus) (Con)
I was delighted to hear that Seagreen wind farm off the coast of Angus was successful in its bid in the UK Government contract for difference auction. It will be the most powerful wind farm throughout the United Kingdom and will have the ability to power up to 40% of Scottish homes. Would the Minister like to come to Angus and see the impact it is already having on our local economy? The local port has already secured the contract for the operations and maintenance base.
Product Safety, Metrology and Mutual Recognition Agreement (Amendment) (EU Exit) Regulations 2019
Kelly Tolhurst Excerpts(5 years, 1 month ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
I beg to move,
That the Committee has considered the Product Safety, Metrology and Mutual Recognition Agreement (Amendment) (EU Exit) Regulations 2019 (S.I., 2019, No. 1246).
It is a pleasure to serve under your chairmanship, Sir Gary. Since the referendum decision to leave the EU, the Department for Business, Energy and Industrial Strategy has undertaken significant work on withdrawal arrangements, preparing for a range of potential outcomes, including no deal. The regulations amend no-deal legislation made earlier this year, predominantly as a result of the article 50 extension. We need to make changes to have an effective and up-to-date system for product safety and legal metrology on exit. The safety of consumers is a key priority for the Government, and I know that priority is shared by Members of all parties.
The instrument will ensure that the drafting in previous regulations will function as intended, and so help to maintain the continuity of product safety protections if the UK leaves the EU without a deal. Primarily, we are making the changes needed to reflect the change from a March to an October exit, but we are taking this opportunity to extend certain transitional arrangements, already agreed by Parliament in respect of products from the European economic area, to certain imports from Switzerland in the event of the UK leaving without a deal.
On the back of our ongoing engagement with stakeholders, the regulations include some minor fixes that they identified and brought to our attention since the previous no-deal product safety regulations were made. The focus of the instrument is not to introduce significant policy changes, but to clarify and simplify the current position. It will not change the system or the approach we take in the UK’s rigorous and robust product safety regime. Instead, the changes the instrument makes will ensure that the UK’s product safety and legal metrology framework continues to deliver the protections we want.
I turn now to the detail of some of the amendments that the regulations will introduce, starting with the updates to the no-deal product safety legislation already agreed by Parliament. The regulations will amend three previous regulations. First, they will amend a number of product schedules in the Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019, which were laid in March 2019. Secondly, they will amend the Pressure Equipment (Safety) Regulations 2016. Thirdly, they will amend the Conformity Assessment (Mutual Recognition Agreements) Regulations 2019.
A change in exit day created confusion for the personal protective equipment sector about which regulations to follow. As originally drafted, there was provision for a period between exit day and 21 April 2019 during which particular provisions applied. The new SI will make changes that provide legal clarity for the industry, now that the date has passed. For cosmetics, the regulations will clarify the drafting in relation to the use of data from animal testing that was carried out before such testing was banned. That historical data can be used now, and these regulations retain that position. Let me be clear: there is no intention to change our position on new animal testing, which is rightly banned and will remain so. A further provision ensures that the UK will be able to update the list of prohibited and restricted substances to show what can or cannot be included in cosmetic products, and subject to what conditions. The power to update the list has been transferred to the Secretary of State and would be used only following scientific evidence. This change will ensure ongoing protection for consumers.
The SI restores the position before the unintentional removal of the option for pressure equipment materials to have their manufacturing processes of base materials certified by a competent body. This reinstatement will ensure continuity and certainty for business. The instrument also makes minor amendments to clarify certain provisions to ensure that no-deal legislation works as intended if the UK exits the EU without a deal. Those changes occur in relation to outdoor noise, recreational craft, toys, electromagnetic compatibility measuring instruments and accreditation. An example is an amendment to the electrical equipment provision to change a reference to “safety component” to a reference to “electrical equipment”.
A further important provision in the instrument expressly implements the UK’s obligations as an EU member state with regard to certain goods being imported from Switzerland. That builds on the main Product Safety and Metrology etc. (Amendment etc.) (EU Exit) Regulations 2019 and the subsequent Conformity Assessment (Mutual Recognition Agreements) Regulations 2019. The end result is that, if we leave without a deal, the transitional provisions for goods entering the UK from the EU and the EEA will be extended to certain goods from Switzerland. That will provide further clarity and continuity for business by making it easier to import certain products from Switzerland by allowing UK importers to put their details on accompanying documentation, rather than the product itself, for 18 months after exit, and by extending the recognition of authorised representatives established in Switzerland to those appointed in relation to noise emissions from equipment used outdoors, in line with the existing EU-Swiss mutual recognition agreement.
An impact assessment has not been prepared for the instrument, because the impact for business is expected to be low. It is limited to familiarisation costs to understand the operability fixes and drafting improvements made to the legislation. It has been confirmed that those costs fall below the £5 million de minimis threshold.
The Department did not undertake a public consultation, given that the provisions relating to EU exit are limited to making changes to no-deal legislation to ensure that it operates effectively on exit. However, our ongoing engagement with stakeholders has proved useful in highlighting some inconsistencies in the previous drafting. We recognise that wider consultation would have been helpful, but the objective of the instrument is to ensure that there is no reduction in consumer protections in respect of product safety after EU exit. Some of the minor changes improve clarity for business, and we welcome and are encouraged by its engagement with the development of the legislation.
I recognise that our product safety exit SIs are unique, particularly in their size and breadth, which has presented challenges to Parliament’s scrutiny of them. We have learned lessons and are grateful to the Joint Committee on Statutory Instruments for its comments and input throughout the scrutiny process, including comments highlighted in its report on the drafting inconsistencies in the SI that related to the coming-into-force date. The report draws special attention to defective drafting in the instrument, which is “acknowledged by the Department” and which was flagged up in our voluntary memorandum to the JCSI. It accepted our argument that the commencement provision should still work and that the mistake is unlikely to have had substantive consequences.
The amendments made by the instrument ensure that the drafting of previous regulations functions as intended, which will help to maintain the continuity of product safety protections if the UK leaves the EU without a deal. As I am sure hon. Members recognise, it is essential that the UK has a functioning product safety framework in the event of no deal. Approving the instrument will also contribute to maintaining a positive trading relationship between Switzerland and the UK.
Kelly Tolhurst
It is nice to be back in Committee opposite the hon. Member for Sheffield, Brightside and Hillsborough debating statutory instruments, as we have many times. I thank her for her constructive questions, as always. I confess that I missed her second one, so I am happy for her to repeat it, but I will answer the others.
The hon. Lady is absolutely right that we debated the big 600-page product safety statutory instrument, but I must highlight that a third of that—200 pages—was made up of long annexes that were transferred. There was synergy in the subjects that were brought together in one instrument because of cross-cutting issues.
The hon. Lady asked why the urgency, given the existence of the Benn Act. As we have made clear—as the Prime Minister has made clear—we intend to leave the European Union on 31 October. We have used these powers less than 35 times in a legislative programme of more than 600 instruments, which is not very much.
If this legislation were not in place, the UK’s product safety regime would simply not work as effectively if the UK left without a deal agreed by both sides. The cosmetics changes in the instrument enable us to implement changes in UK law regarding chemicals in cosmetics that have been banned or restricted. If we were to leave the EU without that ability, the UK could be at risk of the dumping of products that would not be satisfactory in the EU and that we would need to restrict over here.
Grahame Morris (Easington) (Lab)
I hope the Minister will forgive me for seeking some clarification on the scope of the SI. I listened intently to her comments on chemicals and cosmetics and on the issues to do with Switzerland. On product safety, does the statutory instrument cover the safety of imported domestic electrical appliances? Is that within its scope? Specifically, there have been issues with tumble dryers being responsible for many domestic fires, and a major product recall of imported dryers has been widely publicised. Does that come within the scope and purview of the SI?
Kelly Tolhurst
I thank the hon. Gentleman for his question. The SI that we are debating relates to amendments to the bigger SI, which covered some of the areas to which he referred. These are amendments to the current regulations, so yes, his comments are relevant in the broader scope of things. He will hopefully be aware that, as the Minister with responsibility in this area over recent months, the issues with tumble dryers, fridge freezers and so forth have been at the forefront of my mind, particularly as we have been scrutinising the legislation coming forward and these amendments. The hon. Gentleman is right to address that.
It is crucial that we have functional legislation if we leave the EU without a deal. The SI ensures that previously laid instruments can serve their intended function. It is vital that we protect consumers by making these changes. We can better ensure that we continue to be in step with the latest scientific advice, thus reducing the risk of cosmetic products with chemicals that are banned at EU level being dumped on the UK market. Without this legislation, there could be additional burdens on business, as some of the provisions address burdens or barriers to trade that could be problematic if not amended.
Additionally, the instrument explicitly implements provision in the existing EU-Swiss mutual recognition agreement and allows importers of certain goods from Switzerland to place their contract details on a document accompanying the product, rather than on the product itself, for a period of 18 months if we leave the EU without a deal. The SI will provide continuity and certainty for business, and maintain consumer confidence in the safety and accuracy of products as the UK exits the EU. I urge the Committee to approve the regulations.
Question put and agreed to.
Draft Statutory Auditors, Third Country Auditors and International Accounting Standards (Amendment) (EU Exit) Regulations 2019
Kelly Tolhurst Excerpts(5 years, 2 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
I beg to move,
That the Committee has considered the draft Statutory Auditors, Third Country Auditors and International Accounting Standards (Amendment) (EU Exit) Regulations 2019.
It is a pleasure to serve under your chairmanship, Mr Sharma. Since the UK’s 2016 referendum decision to leave the EU, the Department for Business, Energy and Industrial Strategy has undertaken a significant amount of work preparing for a range of potential outcomes. The best outcome is for the UK to leave with a deal, and we continue to put forward serious and credible proposals for that. Although we remain confident, we must and will continue the work of preparing for no deal.
The Committee may be aware that around the turn of the year I laid regulations before Parliament to address deficiencies arising from the withdrawal of the United Kingdom from the European Union in the fields of accounting and audit. They did not implement new policy but did grant new powers and responsibilities to the Secretary of State and the Financial Reporting Council. Continuing that process requires further regulations now. Although the fundamental elements of current UK accounting and audit regulation will remain the same after exit, legislation has had to be amended to ensure its effective working once the UK has left the EU.
The accounting and audit directives set out the requirements on the accounts and audit of most incorporated businesses, as well as a framework of standards. The directives also set out the responsibilities of the competent authorities for accounting and audit. Meanwhile, under the EU’s international financial reporting standards regulation, standards are set for accounting by parent companies of groups, which apply if those companies issue shares that are admitted to trading on regulated markets. Another regulation—the audit regulation—sets additional requirements on the statutory audit of those businesses defined as public interest entities: banks, building societies, insurers and issuers of shares or debt securities on regulated markets.
To the extent that those EU regulations are not repealed, they form part of retained EU law under the European Union (Withdrawal) Act 2018. Our aim is to ensure that the framework for accounting and audit regulation works effectively following the UK’s withdrawal from the EU, and the regulations take further steps to help facilitate that.
Under the audit directive, the European Commission has powers to grant equivalence to third countries for their audit regulatory framework, and adequacy to third countries’ competent authorities for their framework on audit regulatory co-operation. These measures facilitate international trade and investment. The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 transferred those powers to the Secretary of State and provided powers to set out the criteria and procedure for assessment, equivalence or adequacy status decisions in the future, which will be granted by regulations under the negative procedure. These regulations ensure that, irrespective of whether a withdrawal agreement is reached, the Secretary of State can make regulations after our exit from the EU to set out the framework for future assessment of equivalence and adequacy by the UK regulator. They will also enable us to grant equivalence and adequacy status to some third countries that have had their applications under consideration in the EU since March of this year.
The regulations also complete the process of extending powers to the Financial Reporting Council—the UK’s competent authority—making the final consequential amendments needed to extend the FRC’s ability to regulate third-country auditors to include European economic area auditors and Gibraltarian auditors. They also put beyond doubt that those EEA auditors who have already registered as statutory auditors in the UK will retain their status after exit.
The regulations also make an important change to the audit exemption framework. In common with the exemptions in the accounting framework for subsidiaries, the subsidiary audit exemption will not be available unless a subsidiary has a UK parent. This instrument corrects an error in the previous audit SI affecting the frequency of audit inspections required for auditors of public interest entities.
On accounting standards, the instrument revokes some EU regulations relating to the adoption or amendment of the IFRS within the EU. Without revocation, the regulations would be brought into domestic law by the EU (Withdrawal) Act. However, the International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 have already made provision for what will be the international accounting standards for the UK at exit day. The revocations remove any duplication and potential confusion. They also reflect changes in EU adopted international accounting standards issued or identified since the earlier accounting SIs were made.
The Government have carried out a de minimis impact assessment of the instruments as the overall costs to business are expected to be small. It confirmed that the additional impact on business of the changes in the SI is a cost of approximately £930,000, which derives from the amendment to the subsidiaries audit exemption. Only limited sectors are affected by each of the changes. Such limited impact is counterbalanced by what was actually an overall beneficial effect of the changes in the first audit EU exit SI, which was assessed as saving businesses approximately £2.96 million per year.
In conclusion, the regulations aim, wherever possible, to provide continuity for businesses operating in the audit sector and to ensure that UK companies continue to benefit from global trade and investment. If the UK leaves the EU without an agreement, the measures contained within the regulations will be critical in ensuring that the audit regulatory framework in the UK works effectively. I therefore commend the draft regulations to the Committee.
Bill Esterson
Thank you, Mr Sharma.
Now, to the matter at hand. We are faced with regulations and, as ever, the Minister did her best to make them appear to be a matter of minor change, but the House of Lords Secondary Legislation Scrutiny Committee said the
“range and magnitude of the changes are significant: the Regulations make changes to 15 items of legislation and include a sub-delegation of powers to UK regulators and extend a ministerial power of direction.”
The Minister did mention that.
Bill Esterson
Well, the Minister mentioned the ministerial power of direction; I am not sure that she spoke about just how far reaching the changes are. The Lords Committee expressed its
“concern about the scale of the challenge facing financial services firms in adjusting to these changes.”
Yet when we turn to paragraph 10 of the explanatory memorandum, we find that no consultation was carried out with the financial services sector on these far-reaching changes, which will affect financial services firms. Sadly, that problem has bedevilled such statutory instruments, more than a few of which the Minister and I have considered, including the one she mentioned.
There is also a link to the 2013 report from the Parliamentary Commission on Banking Standards, which was chaired by members of the Minister’s own party. It was jointly chaired by a Member of the House of Commons—the then chair of the Treasury Committee, Andrew Tyrie—and a Member of the House of Lords. They found great concerns about the robustness of our audit regulations and called for wide-ranging changes. Those changes have not happened. The relevance of those points centres on the scandals surrounding companies the collapse of which related to a lack of audit, such as British Home Stores, Patisserie Valerie and Carillion.
The link to the regulations is important, because the Government are proposing to adopt the IFRS system, which is run by a private entity in Delaware in the United States and overseen by the European Commission. I wonder how the Government propose to accept arrangements whereby, once we have left the European Union, the European Commission will have oversight of our financial reporting standards. The Government are making a major change to those standards, tacked on to the regulations. Such a significant change clearly should be fully scrutinised, should have been the subject of consultation, and is very difficult for us to support.
I did some consultation of my own. I asked the Institute of Chartered Accountants in England and Wales for its assessment of the regulations. It confirmed the concerns I have just outlined regarding the Government’s proposed elimination of the exemption for EU companies with a UK-based subsidiary. It wants the Government to say what the timescales will be, because it is not clear from the regulations.
Beyond those concerns from the ICAEW, the proposed amendment is not just minor or technical. The controversies that I mentioned regarding audit mean that if such changes are to be made, they should be subject to much wider consideration. The consideration recommended by the 2013 report from the Parliamentary Commission on Banking Standards gives us a good place to start.
There are some significant concerns about the proposed changes, which are significant changes. It is simply not the case, as far as I can see from the commentary that I have received, that there will be no significant impact on the private, voluntary or public sectors. The lack of an impact assessment yet again is concerning. The Minister will no doubt say that the Government are preparing responsibly for Brexit, with or without a deal, but I am afraid that the lack of an impact assessment, the lack of consultation and the way in which standards have been tacked on to a set of regulations that are actually of a very different nature show that today’s statutory instrument should not have been introduced in its present form. For those reasons, we will oppose the regulations.
Kelly Tolhurst
I thank the hon. Member for Sefton Central for his comments, but I must pick him up on one point. He questioned whether the Government respect democracy. We have sat across from each other numerous times in Committees this year, and I point out to him that respecting democracy is exactly what we are doing. The regulations ensure we are fit and ready for when we exit the European Union. That is respecting democracy and the 2016 democratic vote. I need to point that out, and it is exactly why my Department has been doing the work that is required for us to ensure that we are fit and ready to leave with or without a deal.
I remind the Committee that the regulations are part of what will enable us to ensure that the EU retained law that comes into UK law is fit and proper for when we leave the European Union. We are ensuring that we can communicate that to business, and that the current laws will continue to operate correctly in the UK. As the hon. Member for Glenrothes pointed out, the limitations in the withdrawal agreement set out what the Government can do when bringing secondary legislation through the House. He will note that the only change in the regulations is to ensure the smooth and effective running of regulatory systems when we leave.
Members also commented on the quality of audit and on their concerns about the performance of some UK companies. As the hon. Member for Sefton Central will know, we had the Sir John Kingman review of the Financial Reporting Council, and the Government are working through that and consulting where possible to make modifications and changes within the FRC. That ongoing piece of work by Government is not necessarily completely related to these regulations.
The hon. Gentleman will know that the IFRS is a high-quality, internationally accepted and supported set of financial reporting standards that is regarded as a benchmark throughout the world by listed companies.
Peter Grant
The Minister seems, rightly, to be recognising the importance of that organisation of experts. Why will the Government not listen to other organisations of experts in their consideration of the Brexit proposals?
Kelly Tolhurst
I am here to speak to the regulations that are in front of us. I assure the hon. Gentleman that the experts in the Department for Business, Energy and Industrial Strategy, as well as our stakeholders and partners across the sectors, have been spoken to. I challenge him to name the organisations that I have ignored or chosen not to speak to.
Peter Grant
The Minister will be aware that there are six recognised chartered accounting bodies in the United Kingdom. Can she name the ones that were consulted over these regulations, or is she saying that those organisations are not experts?
Kelly Tolhurst
As part of our ongoing engagement with stakeholders across all the Department’s responsibilities, we have regular dialogue with those organisations, whether it be on this statutory instrument or on any of the Department’s other business.
Sir Oliver Heald
Is it not correct to say that the hon. Member for Glenrothes has not pointed in detail to a single complaint about these regulations, and his speech is just a general waffle? Does my hon. Friend agree that as the Scottish National party receives £1.2 million in Short money to do research on things like this, we should have a rebate?
Kelly Tolhurst
My right hon. and learned Friend is quite right. The hon. Member for Glenrothes has not mentioned the particular point that we have made more expressive, as the ICAEW asked us to do, in these amended regulations. That is a clear example of where we have listened to the professionals in the industry and chosen to respond to their requests as clearly as we can.
Luke Graham
I will perhaps try to articulate some of the points that the hon. Member for Glenrothes was trying to make. The regulations are designed to ensure that international accounting standards are still operational in the UK on EU exit day, incorporating the aspects of EU law that we are meant to incorporate. Essentially, the regulations fill in the gaps.
I ask my hon. Friend two things. First, if she does not have it with her today, will she make available the gap analysis that the Department undertook—between the IFRS, the IAS and the UK generally accepted accounting practice—to make sure that there are no gaps, and that the regulations are sufficient to satisfy all the professional bodies around the UK?
Secondly, has there been consultation with the International Accounting Standards Board, which is the governing body for IFRS? My hon. Friend is quite right to say that bodies in the UK have been consulted; it has been made explicit that the ICAEW has been consulted. It would be good to know whether the Institute of Chartered Accountants of Scotland has also been consulted, because, as a United Kingdom, we have a united internal market.
I would be quite happy to receive the answers to those questions as a follow-up, because I know that there is a lot of detail in the regulations. Opposition Members have completely failed to raise specific points that constitute a substantive opposition to this statutory instrument.
Kelly Tolhurst
I will happily provide my hon. Friend with any advice that we have available. I point out to hon. Members that these regulations constitute an amendment to, and an extension of, the statutory instrument that was laid before and passed by this House at the beginning of the year. They particularly focus, as I outlined in my opening speech, on aspects to do with subsidiaries. They also correct an omission of three words, which it was important to do to ensure that the regulations expressed the true intention behind the original statutory instrument.
I emphasise that as part of the Department’s role in preparing for EU exit and making sure that we are in the best possible place to leave the European Union, with or without a deal, we have engaged continuously with stakeholders. Quite rightly, as Ministers, we have challenged our officials within the Department and our stakeholders, when we have had the opportunity to do so.
Bill Esterson
That is interesting, because I have a briefing note from the ICAEW here. It raises concerns, which I went through earlier, about regulation 4, on the loss of EEA subsidiary exemption, and regulation 6, on EEA qualification for auditors; I did not spend as long on that earlier. I mentioned some other concerns that had been raised with me by professional bodies. It does not seem, from anything that the Minister has said, as though she has had those discussions with the ICAEW. It does not seem to me as though she has had that note from the ICAEW, or those concerns have been raised with her. Perhaps she could clarify the situation for me. Did she receive those concerns from the ICAEW before this meeting?
Kelly Tolhurst
I can confirm that officials in the Department have been speaking to the ICAEW. As I outlined in my response to my hon. Friend the Member for Ochil and South Perthshire, we have made something explicit in these regulations on the back of our conversations with the ICAEW. Those conversations are ongoing and will continue, as I laid out in my opening speech, because we are to bring forward the assessment framework in a further statutory instrument.
The hon. Member for Sefton Central asked how we would cope with the fact that the European Commission was no longer making these opinions or decisions. The statutory instruments that we have made give these powers to the Secretary of State, thereby enabling parliamentary scrutiny of decisions and the ability to delegate responsibilities.
The hon. Gentleman is quite right that we have had many conversations about impact assessments in our debates on statutory instruments as part of the EU exit programme. He will notice that a de minimis assessment took place, because the level of impact was below £5 million. As I outlined in my opening remarks, the overall benefit from the statutory instruments will be a reduction of £2 million per year.
The hon. Member for Glenrothes asked why we are bringing this forward now, and why we did not do it in the original statutory instrument earlier in the year. The regulations before us were not needed for exit day, but because we have had the opportunity to extend our leaving date to 31 October, we have been able to consider them prior to exit day.
As the UK exits the EU, we are committed to maintaining the integrity of the UK system for regulatory oversight of audit. The regulations contribute to that by clarifying and building on the approach to oversight of the audit profession following our withdrawal from the EU that we began to set out in the original regulations at the start of the year. Like those regulations, this statutory instrument does not introduce a change in policy, as I have explained. The fundamental elements of the current statutory audit legislation will remain the same after exit. These regulations make only a small number of further amendments that are necessary to ensure that audit legislation remains operable in the UK following our withdrawal from the EU.
The regulations will mean that the UK system for regulatory oversight remains coherent and understandable, and they will enable us to do more on this over the coming months, irrespective of the outcome of the EU exit negotiations. I regret that the Opposition have decided that they are not prepared to support the regulations, which would give business and stakeholders consistency and clarity about how the market will work as we leave the European Union. I commend the regulations to the Committee.
Question put.
Labour Market Reforms
Kelly Tolhurst Excerpts(5 years, 4 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
The good work plan sets out the Government’s vision for the future of the UK labour market and how we will implement the Taylor review recommendations. It forms an integral part of the modern industrial strategy and this Government’s long-term plan to boost the productivity and earning power of people throughout the UK and to develop better jobs for all. We are now delivering the next phase of the good work plan.
Flexibility has been a key factor behind the success of our labour market, but we are aware there are a small minority of employers who transfer too much risk to the individual, sometimes to the detriment of their financial security and personal wellbeing. The Taylor review termed this “onesided flexibility”. The Low Pay Commission found that this was particularly relevant for low-paid, vulnerable workers and has made recommendations to the Government. We are committed to tackling the problem and on 19 July we launched a consultation with proposals to:
Provide a right to reasonable notice of working hours—with the aim to give workers more certainty about their shifts and work patterns so they can have more control over their working lives.
Provide workers with compensation for shifts cancelled without reasonable notice—the Low Pay Commission found that the practice of cancelling shifts at the last minute, sometimes on arrival at work or partway through a shift was not uncommon.
Earlier this year, the Government also consulted on measures to prevent the misuse of confidentiality clauses in cases of sexual harassment or discrimination in the workplace. This followed unacceptable cases of their misuse as evidenced in the media, inquiries by the Women and Equalities Committee and individuals’ responses to our consultation. These cases highlighted the seriousness of abuse that has taken place and the impact this has had on the lives of individuals.
We have now published the Government response and will be legislating on the proposals we consulted on, and in some cases going even further. For example, for the first time, no provision in an employment contract will be able to prevent someone from disclosing information to the police or to regulated health and care and legal professionals. The proposals will increase clarity on the limitations of confidentiality clauses, increase protections for vulnerable individuals and ensure employers use confidentiality clauses appropriately.
The Government also recently consulted on proposals to extend redundancy protections for pregnant women and new mothers returning to work. We have now published the Government response to this consultation.
Any form of discrimination against pregnant women and new mothers is unacceptable and unlawful. Despite this, evidence from the Women and Equalities Committee, among others, suggests that new mothers are still being unfairly forced out of work. We are therefore taking action and are committing to extending the redundancy protection period that currently exists for pregnant women for a further six months once a new mother has returned to work. The Government response also looks at how we can increase awareness among pregnant women and new mothers of their maternity rights. As part of this the Government will establish a taskforce which will make recommendations on what improvements can be made to the information available to employers and families.
The reforms we have announced are the next important step in delivering on the Good Work Plan, ensuring we have a labour market that is fit for purpose. We recognise that the world of work is changing and are delivering the necessary reforms to ensure the UK labour market can adapt effectively, and support the needs of both workers and employers.
Copies of the referenced consultations and Government responses will be placed in the Libraries of both Houses and will be available electronically on the www.gov.uk
website.
[HCWS1788]
Furniture and Furnishings: Fire Safety
Kelly Tolhurst Excerpts(5 years, 4 months ago)
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The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kelly Tolhurst)
Today, I will publish the Government response to our consultation on updating the Furniture and Furnishings (Fire) (Safety) Regulations 1988, which set fire resistance requirements for cover materials and fillings used to make domestic upholstered furniture.
The review aimed to ensure that our legislative framework maintains fire safety for consumers, reflects technological advances in furniture manufacturing practices, and facilitates a reduction in the use of hazardous flame-retardant chemicals as a means of making furniture fire resistant.
The consultation sought views on proposals to amend the testing regime. It also sought views on proposals for clarifying and amending the scope of the regulations, strengthening the traceability requirements to bring furniture into line with other product sectors, updating labelling rules, and extending the time period for trading standards to institute legal proceedings.
The Government are committed to protecting consumers from all safety risks, but we will not compromise on fire safety. During the course of the review, to ensure the highest standards, we sought the views of chief scientific advisers from relevant Departments across Government.
The Government will now develop a new approach to address the different sources and chemical risks posed by fire to upholstered furniture and furnishings. It will focus on safety outcomes (such as reduced risk of ignition, reduced risk of fire spread) and will be underpinned by a set of essential safety requirements which all upholstered furniture placed on the market must meet.
This approach is consistent with that taken for other consumer products. The (new) legislation will be supported by British Standards which will be developed by the British Standards Institution in partnership with a wide range of stakeholders, including industry, fire-safety experts and consumer representatives.
This new approach will continue to ensure that manufacturers place only safe products on the UK market. I will consult on the detail of this new approach in due course. In the meantime, the existing regulations will continue to apply.
[HCWS1759]