Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government whether they intend to introduce the cross-sector AI risk register announced by the previous government on 6 February; if so, when; and if not, what steps they are taking to monitor AI risks.
Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)
In Autumn 2023, DSIT set up the Central AI Risk Function (CAIRF), which brings together policymakers and AI experts with a mission to continuously identify, assess and prepare for risks associated with AI. One of the CAIRF's critical responsibilities is to develop and maintain the UK Government’s AI Risk Register. The register was introduced in 2023 and identifies individual risks associated with AI that could impact the UK spanning national security, the economy and society. This Government is considering how best to engage the wider public on our understanding of AI risks.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the financial impact on the economy of regulatory divergence between the United Kingdom and the European Union following the introduction of the Artificial Intelligence Act (Regulation (EU) 2024/1689).
Answered by Lord Vallance of Balham - Minister of State (Department for Science, Innovation and Technology)
The Government is committed to establishing appropriate rules on those working to develop the most powerful artificial intelligence models. Our proposals will be highly targeted and will enhance safety. They will also support growth and innovation by ending regulatory uncertainty for AI developers, strengthening public trust, and boosting business confidence.
The Government carefully considers the impact of potential regulatory barriers on the economy and UK businesses, including in relation to international trade and market barriers, and will set out further details of our approach in due course.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the Department for Science, Innovation & Technology:
To ask His Majesty's Government what assessment they have made of the risks to intellectual property posed by sales on overseas e-commerce platforms.
Answered by Viscount Camrose - Shadow Minister (Science, Innovation and Technology)
The Government takes the issue of IP crime and infringement seriously and the Intellectual Property Office (IPO) plays a crucial role in the fight against online piracy and counterfeiting. It works closely with international partners, including the Organization for Economic Cooperation and Development, to assess the risks posed by sales on overseas e-commerce platforms and estimating the cost of counterfeiting to the UK economy. Their most recent report estimated that counterfeit goods imported to the UK were worth approximately £13.6 billion per year.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have had with the Scottish Government since it projected a potential £1 billion resource spending gap in 2024–25, rising to £1.9 billion by 2027–28.
Answered by Baroness Vere of Norbiton
The Chief Secretary to the Treasury engages regularly with the Deputy First Minister and Cabinet Secretary for Finance to discuss matters relating to Scottish Government funding. They met most recently in Edinburgh on 25 January at the Finance: Interministerial Standing Committee.
The UK Government is providing the Scottish Government with a record block grant settlement of £41 billion per year over this Spending Review. On top of this, the Scottish Government is receiving over £2 billion in additional funding through the Barnett formula over 2023-24 and 2024-25 as a result of decisions taken at fiscal events.
In August 2023, the UK and Scottish Government reached agreement on an updated Fiscal Framework for the Scottish Government. This included provision to maintain the Scottish Government’s preferred block grant adjustment methodology to account for tax and welfare devolution, remove drawdown limits from the Scotland Reserve and increase the Scottish Government’s borrowing and reserve limits in line with inflation each year.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether they consider that the Financial Ombudsman Service and Financial Services Compensation Scheme protections enacted under the Financial Services and Markets Act 2000, which underpin retail investor confidence in the UK financial industry, remain "an expression of UK national policy".
Answered by Baroness Vere of Norbiton
The government believes that it is important that consumers of financial services have appropriate routes to seek redress without having to go through the court system. The Financial Services and Markets Act 2000 established both the Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS) for this purpose.
The FOS provides consumers and small businesses with a free, independent service that enables the proportionate, prompt and informal resolution of disputes with financial services firms. It is designed as an alternative to resolution of cases through the courts, which can be expensive for both firms and consumers and delay redress.
The courts also continue to play an important role alongside the FOS in ensuring consumers have access to redress and in some cases may be a more appropriate route to ensuring effective resolution of disputes.
The FSCS is the UK’s compensation scheme of last resort and pays compensation to consumers when authorised financial services firms fail. However, the FSCS does not cover losses that arise purely from investment performance. The UK does not operate a zero-failure regime in financial services and individuals have responsibility for choosing investments that are suitable for their risk profile.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government how many times the UK has been subject to legal action through investor-state dispute settlement which has been brought either individually or as part of a wider claim; how many times such claims have been successful against the UK; and what was the legal costs of defending those claims.
Answered by Lord Johnson of Lainston
The UK has investment agreements with Investor-State Dispute Settlement (ISDS) provisions with around 90 trading partners. There has never been a successful ISDS claim brought against the UK, nor has any claim reached arbitral proceedings for the UK to defend.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether the National Insurance Fund is classified as a liability or a contingent liability on their balance sheet.
Answered by Baroness Vere of Norbiton
It is neither a liability nor a contingent liability but is recorded as an asset on the government balance sheet.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government how many businesses they expect to participate in the UK pavilion at the Osaka Expo 2025.
Answered by Lord Johnson of Lainston
UK Government will be working with as many British businesses as possible to showcase the UK across Japan and the Asia Pacific region, as well as promote foreign direct investment in the UK. This work is on-going; the total number of businesses that will be involved is not yet confirmed.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government when construction of the UK pavilion for the Osaka Expo 2025 will (1) commence, and (2) be completed.
Answered by Lord Johnson of Lainston
Construction for the UK pavilion in Osaka will commence in early 2024. Construction will be completed ahead of the Expo opening on 13 April 2025.
Asked by: Lord McNicol of West Kilbride (Labour - Life peer)
Question to the Department for Business and Trade:
To ask His Majesty's Government how much they estimate will be spent by each department on organising the UK pavilion at Osaka Expo 2025; and how much funding they estimate will be provided by (1) UK businesses, and (2) other organisations, to support the organisation of the UK pavilion at Osaka Expo 2025.
Answered by Lord Johnson of Lainston
The Department for Business and Trade is organising the UK Pavilion at Osaka Expo 2025 on behalf of His Majesty's Government. The Department's estimated total budget for delivering the UK's presence is £58.39m. This is funded from contributions from existing budgets.
Significant additional funding is being sought from the private sector to offset costs to the taxpayer. This work is in train - it is not therefore possible to accurately estimate private sector funding levels at this point.