Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask His Majesty's Government, further to the Written Answer by Lord Callanan on 22 November 2021 (HL3859), whether the members of the UK Endorsement Board (1) individually, or (2) collectively, have the power to (a) tender for third party services, and (b) select providers of third party services.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK Endorsement Board (UKEB) is an unincorporated association. Whilst individual board members have the power to enter into contractual agreements, they have no call on UKEB funds which are managed through the Financial Reporting Council (FRC) and can only be accessed when procurement has been authorised in accordance with the FRC Procurement Policy. UKEB members can input into the process of drawing up a list of prospective providers of third-party services with oversight from the FRC accounting officer.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask His Majesty's Government what support they provide SMEs seeking to obtain patent protection in (1) the UK, and (2) in other countries; whether they will extend the Enterprise Investment Scheme so that it includes support with patent costs; and whether they will amend the UK Innovate grant so that it supports international coverage for patents.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Intellectual Property Office (IPO) provides guidance and support on protection for patents in the UK and abroad through free digital resources; webinars and events, alongside assistance through the network of Patent Libraries and Business and IP Centres. The IPO also partners with Innovate UK Edge to provide intensive, specialist-led support to help innovative SMEs identify, manage and protect their IP at home and abroad, including through financial grants. This complements other available Innovate UK grant funding of up to £7,500 for patenting costs supporting both UK and international coverage.
The knowledge intensive definition for the Enterprise Investment Scheme already includes intellectual property which covers patents.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what statistics they collate on ethnicity in small and medium sized enterprises; and if they collate any such statistics, what are the numbers by ethnicity of (1) staff, and (2) owners, of small and medium sized enterprises, by sector, according to the most recent figures.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Longitudinal Small Business 2020 Survey reported that 5% of SME employers were minority ethnic group led (MEG-led), defined as having a person in sole control of the business or having a management team with at least half of its members from ethnic minority groups.
MEG-led SME employers were more likely in information and communication (9%), accommodation and food (7%) sectors and less likely in primary (0%) and education sectors (1%).
Further reported about 4% of businesses with no employees were MEG-led. MEG-led businesses were most likely to be in the transport and storage (7%), information and communications and health (both 6%) sectors, and least likely in primary, education and accommodation and food services sectors (all 1%).
Further details can be found on the GOV.UK website. Data for 2021 will be published in August 2022.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 15 June (HL757), whether the use of judgement in resolving accounting issues is by reference to (1) the purpose of audited accounts as set out in company law, or (2) the Conceptual Framework that has “no status because it is not adopted into UK law”.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Section 393 of the Companies Act 2006 places a requirement on directors that the accounts must provide a true and fair view of the assets, liabilities, financial position and profit or loss of a company or group. Directors must provide such information as is necessary to ensure that this requirement is met, including where no specific accounting standard applies to a transaction, event or condition. For those companies using “UK-adopted international accounting standards”, IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” provides a basis for the use of judgement in resolving accounting issues in such situations.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 6 July (HL1265), how the post of Technical Director of the UK Endorsement Board can have been recruited by the process set out in the attachment in the light of the metadata showing that this document was created on 29 April 2021, whilst Financial Reporting Council minutes indicate that the post had been taken by Seema Jamil O’Neill at some time before 18 June 2020.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Technical Director was appointed on 1 December 2021 as a permanent role, following an open and transparent recruitment process for internal and external candidates as set-out in the attachment to my response to Question HL1265. Between 1 June 2020 and up until 1 December 2021 the role was filled on an interim basis, whilst the UKEB was being set up. The interim appointment was made through an internal secondment competition within FRC which included an application and interview process with representatives of FRC HR, BEIS and a Technical Expert from the Bank of England.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 11 April 2018 (HL6619), why (1) they, and (2) the Financial Reporting Council, consider that the powers of section 464 do not include distributable profits GAAP for the audited annual accounts as relevant accounts, given that section 853(4) Companies Act 2006 states that “references to ‘realised profits’ and ‘realised losses’, in relation to a company's accounts, are to such profits or losses of the company as fall to be treated as realised in accordance with principles generally accepted at the time when the accounts are prepared, with respect to the determination for accounting purposes of realised profits or losses”.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The accounting standards in Section 464 of the Companies Act 2006 are relevant to the preparation of individual or group accounts in accordance with Part 15 of the Act. The Act does not establish a requirement for companies to disclose their distributable profits. Individual accounts are the starting point for calculating distributable profits under Part 23 of the Act. Proposals to give ARGA responsibility for issuing guidance on what should be treated as “realised” profits and losses for the purposes of section 853 of the Act were included in the Government’s response to Restoring trust in audit and corporate governance.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 20 December 2021 (HL4706), which said that the Companies Act 2006 “does not establish a requirement for the company to disclose its undistributable reserves”, what consideration they have given to amending that answer in light of the Financing Reporting Council Publication Miscellaneous Reports By Auditors Required By The United Kingdom Companies Act 2006, published in March, which said that “With respect to the auditor’s responsibility, the auditor’s statement states that it is restricted to an examination of the relationship between the company’s net assets and it’s called up share capital and undistributable reserves as stated in the audited balance sheet".
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
No consideration has been given to amending the response to HL4706. The Companies Act 2006 does not establish a requirement for the company to disclose its undistributable reserves. The publication referenced provides guidance for auditors when making reports required, in certain circumstances, by The Companies Act 2006. Proposals to require certain companies to disclose their distributable reserves were included in the Government’s response to Restoring trust in audit and corporate governance.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 21 June (HL865), whether the answer “the UK Endorsement Board has interpreted its statutory functions in accordance with the Companies Act” means that the UK Endorsement Board has determined the suitability of accounting standards for the applicable accounting framework of the Companies Act 2006 as set out by the Written Answers by Lord Henley on 30 January 2019 (HL12948 and HL12949), namely “sections 92, 498(1)&(2), 519, 714(4), 836 and 837 Companies Act 2006”; and if so, whether there is a public record of that having happened.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The UK Endorsement Board (UKEB) is required to assess international accounting standards (IAS) in accordance with Regulation 7(1) and with regard to the matters in Regulation 7(2). The interpretation of these functions is considered by the UKEB within the context of the Companies Act. However, the UKEB is not required to assess IAS against individual sections of the Companies Act nor publish any evidence in that regard. With regards to the quoted sections of the Companies Act regarding the calculation of distributable profits, I refer the noble Baroness to my response to HL31 on 20 May 2022.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answer by Lord Callanan on 21 June (HL865), which stated “the UK Endorsement Board has interpreted its statutory functions in accordance with the Companies Act and the provision in Section 11 of the Interpretation Act 1978”, whether they will issue a correction to the Written Answer by Lord Callanan on 20 May (HL31) which stated “The UK Endorsement Board is only required to assess international accounting standards against the criteria in Regulation 7(1) in SI 2019/685".
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government does not intend to amend its response to HL31 and does not believe that the two statements quoted in the question are in contradiction with one another. The UK Endorsement Board (UKEB) is required to assess international accounting standards (IAS) against the criteria in Regulation 7(1). This also requires the UKEB to have regard to the matters set out in Regulation 7(2). The interpretation of these functions is considered by the UKEB within the context of the Companies Act. However, the UKEB is not required to assess IAS against individual sections of the Companies Act.
Asked by: Baroness Bowles of Berkhamsted (Liberal Democrat - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government, further to the Written Answers by Lord Callanan on 20 May (HL31) and 21 June (HL864), whether (1) quangos acting under a legislative framework, and (2) government departments overseeing the activities of quangos acting under a legislative framework, take into account the leading case law on the subject matter at stake.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Regulators and other public bodies will consider case law to the extent that it is directly applicable to their legal functions.