Low Pay Commission Remit
Jonathan Reynolds Excerpts(1 month ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
This Government are committed to making work pay. As part of our ambitious agenda, we pledged to update the remit of the Low Pay Commission to formally take account of the cost of living for the first time, and I am pleased to confirm that this has been achieved.
As Members will know, the Government set the minimum wage rates each year following the advice of the LPC. Recommendations are made by the LPC each October for the minimum wage rates that are to apply from the following April, in line with the parameters set out in the annual remit from the Department for Business and Trade. I have written to Baroness Stroud, the chair of the LPC, to set out an updated remit.
Following the cost of living crisis, which has harmed working people in recent months and years, the remit asks the LPC to consider the cost of living for the first time. The remit highlights the need to also consider the impact on business, competitiveness, the labour market and the wider economy. We are ambitious in developing a path towards a genuine living wage, but we know that this path must be backed by evidence and consistent with delivering inclusive growth for workers and businesses.
As part of the Government commitment to a genuine living wage that benefits every adult worker, we also pledged to remove discriminatory age bands. The new remit published this week will take a major step towards this, asking that the Low Pay Commission recommends a national minimum wage rate that should apply to 18 to 20-year-olds from April 2025. This should continue to narrow the gap with the national living wage; we are taking steps year by year in order to achieve a single adult rate. We are committed to achieving a single adult rate, and we will ensure that any impacts on youth employment or participation in education and training are considered carefully as we move towards this.
Since the establishment of the Low Pay Commission, through the National Minimum Wage Act 1998, it has become respected internationally. This Government are proud to confirm our continued commitment to the LPC, and we extend our thanks to the commissioners and the secretariat for their independence, their diligence, and their expertise.
I can confirm that the new remit maintains the request to recommend minimum wage rates for workers above school age but under 18, and for those eligible for the apprentice rate, which should increase as much as is possible without damaging these groups’ employment prospects. The remit also asks the LPC to recommend next year’s accommodation offset rate.
We recognise the importance of providing sufficient notice of changes to the minimum wage, so the timelines remain unchanged in the new remit. We have asked the LPC to report back by the end of October, and the rates will increase in April 2025.
The Government are also pleased to confirm that this year’s remit asks the LPC to continue and expand its cutting-edge research on the impacts of the national living wage and national minimum wage, and in particular its assessment of the impact on groups of low-paid workers with protected characteristics.
This year marked the 25th anniversary of the creation of the minimum wage in the UK. Few would now disagree that it has been one of the most consequential and beneficial economic policy interventions of recent decades. Now is the time to build on this by delivering a genuine living wage, removing unfairness for different age groups, and making work pay.
We look forward to receiving the recommendations and wider advice of the Low Pay Commission in October.
[HCWS43]
Horizon Convictions Redress Scheme
Jonathan Reynolds Excerpts(1 month ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
I am today announcing the launch of the Horizon Convictions Redress Scheme, it will be delivered by the Department for Business and Trade.
The Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. This scandal is one of the biggest miscarriages of justice in our history.
As a result of the passage of the Post Office (Horizon System) Offences Act 2024 and the Post Office (Horizon System) Offences (Scotland) Act 2024, hundreds of postmasters in all parts of the UK have now had their wrongful convictions quashed.
The UK Government have been working very closely with both the Scottish Government and the Northern Ireland Executive to identify those who have had their convictions overturned.
Those who we have identified as being wrongfully convicted will shortly receive a letter. It will confirm that their conviction has been quashed, and it will provide further information on how to access financial redress.
Those who have not received a letter, and believe that they are eligible, will still be able to come forward and register for the Horizon Convictions Redress Scheme.
Victims will be able to choose from two clear options.
They can either accept a fixed settlement of £600,000.
Or they can choose a full claim assessment.
The full claim assessment is designed for cases where the victim believes their losses exceed £600,000 and they wish to have their application fully examined by the Government.
We know that every case will be different, and we fully support the right of every postmaster to choose what is best for them. Recognising that postmasters have suffered immeasurably already, we are ensuring that regardless of the settlement they choose, they will be able to receive a preliminary payment of £200,000.
We recognise, too, that many of these cases stretch far back in time and some individuals may not have all the information at their fingertips to proceed with an application right away.
To help, we are making sure they can access historical data from both the Post Office and HMRC.
From today, victims of this scandal will be able to register and apply for financial redress by visiting www.gov.uk/horizon-convictions-redress-scheme
[HCWS42]
Digital Markets: Strategic Market Status Determination
Jonathan Reynolds Excerpts(1 month ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
On 30 July 2024 the Department for Business and Trade has published a consultation entitled “DMCCA 2024: consultation on turnover and control regulations”. The consultation will be open for a six-week period and the Government will publish its response afterwards. A copy of the consultation will be placed in the Libraries of both Houses and published on gov.uk.
Under the DMCC Act, the Competition and Markets Authority will receive new powers to designate firms exerting significant control over digital markets as having strategic market status in respect of specific digital activities, for which turnover will be an important aspect of the designation assessment.
The Competition and Markets Authority, other relevant decision makers and civil courts will also be empowered to issue significant monetary penalties, up to 10% of global turnover depending on the breach, for non-compliance under the DMCC Act regimes, and up to 5% of global turnover for the road fuels regime.
This consultation seeks views on technical provisions to be made in secondary legislation to set out how turnover of a business should be determined for the purpose of the DMCC Act measures. The consultation includes the detail of each factor required to determine turnover, including: activities to be included in the calculation of turnover; the relevant period and trigger event for the determination of turnover; and the calculation of turnover in relation to financial institutions. How turnover is calculated will affect which firms are designated as having SMS and the statutory maximum values of penalties available for the relevant breaches under the digital markets, competition, road fuel and consumer regimes.
These provisions will support the Competition and Markets Authority, other relevant authorities and the civil courts to calculate turnover-based penalties accurately, fairly and proportionately, and to estimate appropriately for the purposes of SMS designation.
[HCWS44]
Free Trade Agreement Negotiations Programme
Jonathan Reynolds Excerpts(1 month ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
The UK is the world's fourth largest exporter, with exports worth £855 billion. British businesses have unique strengths which are admired around the world.
This Government are committed to developing a trade strategy that will drive economic growth. Our approach will be underpinned by rigorous economic and geopolitical analysis, and will align with our industrial strategy, support our net zero ambitions and enhance our economic security. The strategy will be critical to forging a new partnership between an active state and dynamic open markets, both in the UK and overseas. It will also reflect our ambition to improve the UK’s trade and investment relationship with the EU.
In developing our trade strategy, we are clear FTAs—while not the only tool—are an important lever for driving growth.
That’s why today I am announcing our intention to deliver the UK’s Free Trade Agreement Negotiations Programme, starting with the Gulf Co-operation Council, India, Israel, Republic of Korea, Switzerland and Turkey. The Government are also committed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, ensuring UK businesses can take full advantage of the deal when it enters into force. I will be working with my officials to ensure our FTA programme delivers this Government’s wider international trade and investment priorities, and puts our growth mission at its heart. We are committed to using every lever available to deliver growth.
We are now working across Government to get negotiators back into the room with counterparts as soon as possible. In line with this, I have written to international partners signalling our intentions and I expect the first discussions to take place during the autumn.
We will keep Parliament fully updated as the trade strategy and trade negotiations progress.
[HCWS28]
Digital Trade Agreement: WTO Joint Initiative on Electronic Commerce
Jonathan Reynolds Excerpts(1 month ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
The Government are ready to lead on the global stage and use every lever at our disposal to tear down unnecessary barriers and give British businesses the access to international markets to achieve economic growth. We are committed to establishing a global trading system fit for the modern era and underpinned by digital technologies to ensure trade is as seamless and efficient as possible.
Today, I am delighted to announce the UK has joined the first global digital trade agreement: the joint initiative on electronic commerce, negotiated with 90 other countries at the World Trade Organisation.
The economy-wide agreement, covering trade in goods, services and information, is set to deliver new growth opportunities for the UK, with global digital trade already worth £4 trillion and growing strongly. The JI will deliver new growth opportunities for the UK economy and our businesses, workers and consumers, and recognises the importance of supporting developing and least-developed countries to deliver growth and prosperity for all.
Global trade is becoming increasingly digital, and harnessing its potential is central to growing a strong and resilient economy in the UK. The UK is at the forefront of digital trade and has a comparative advantage in digitally-delivered services such as finance, professional business services, creative industries, engineering and much more. UK trade is driven by digitally-enabled businesses, with exports of digitally-delivered services amounting to £252 billion in 2021, or 77% of total UK services exports.
However, until now there has been no common set of global digital trade rules. The G7 digital trade principles brokered under the UK G7 presidency in 2021 set out shared commitments of G7 countries, but there was no rulebook covering binding commitments for the world. This has led to fragmented approaches to digital trade regulation, resulting in increased barriers for businesses, workers and consumers.
As a comprehensive, economy-wide agreement, the JI will boost global trade in goods, services and information and unlock a wide range of benefits for UK businesses, workers and consumers. Global adoption of digital customs systems, processes and documents, even with partial uptake, could represent a boost to UK GDP. Improvement in trade facilitation can increase the probability of a small business starting to export by up to 3% and increase the value of small business exports. Protection for workers and consumers online will increase their trust and confidence in digital trade.
Key benefits of this agreement include:
Cheaper, faster and more secure trade for businesses trading goods and services around the world through digitalising interoperable customs systems, processes and documents. This will in many cases end the need to print off forms and hand them over at customs, a slow, expensive and old-fashioned way of working.
Recognition of electronic contracts, invoices, signatures and authentication, and facilitation of secure, trustworthy electronic payments.
Permanent ban on customs duties on digital content among JI participants to provide the certainty businesses need to trade openly in the new global digital economy and avoid the price increases the introduction of such tariffs would cause.
Protection of personal data of workers and consumers in line with the UK’s high data protection standards.
Protection of consumers buying goods and services online from online fraudsters, misleading claims about products and deception.
Facilitating competition in the telecoms sector through financial independence of telecoms regulators and improved access to telecoms infrastructure.
I expect the process to incorporate the JI into the WTO legal framework to commence shortly. Once incorporated, the JI will be laid before Parliament, in line with usual practice, for domestic ratification.
The Government are committed to rebuilding and strengthening global partnerships and standing up for the rules-based international order. This agreement is an important step in modernising the global trade rule book and furthering co-operation in the WTO.
[HCWS23]
Assimilated Law Report
Jonathan Reynolds Excerpts(1 month, 1 week ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
Today I have laid a report regarding the Retained EU Law (Revocation and Reform) Act 2023 before Parliament and published it on gov.uk. This report updates the House in line with the obligations under section 17 of the REUL Act, which requires a report to be published and laid before Parliament every six months detailing all revocations and reforms of assimilated law.
This is the second report to be laid before the House. While it is very early in my tenure as Secretary of State for Business and Trade, and this report outlines the activities of the previous Government, it is right that this obligation is fulfilled and this update is given to the House.
The report today summarises the data on the assimilated law dashboard, providing the public with information about the amount of assimilated law there is and where it sits across the various Departments. The dashboard reflects the position as of 23 June, showing that a total of 6,735 instruments of REUL/assimilated law concentrated over approximately 400 unique policy areas have been identified.
The amount of REUL/assimilated law has decreased slightly since the last Government’s update to the dashboard in January 2024. This is due to Departments undertaking further analysis on the REUL/assimilated law they own between January and June and identifying some errors and duplications.
Since the previous update to the dashboard the previous Government revoked or reformed 132 assimilated law instruments. As such, the previous Government revoked or reformed 2,361 instruments of REUL and assimilated law in total.
The report gives details of a further 24 statutory instruments using powers under the REUL Act and other domestic legislation which the previous Government laid since the previous report, including on rail, aviation, health, product safety, merchant shipping, and weights and measures.
The timing of this report only gives me the opportunity to set out this Government’s high-level intentions for the future reform of assimilated law. This Government are committed to creating a pro-business environment with a regulatory framework that supports innovation, investment and high-quality jobs. This will be key to realising our national mission to deliver economic growth, on which so much depends. We will ensure regulation supports the building of new roads, railways, reservoirs and other nationally significant infrastructure. We will also make changes to national planning policy to make it easier to build laboratories, digital infrastructure and gigafactories, while also simplifying the procurement process to support innovation and reduce micro-management.
[HCWS17]
Harland and Wolff
Jonathan Reynolds Excerpts(1 month, 1 week ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
In recent weeks there has been media speculation over the status of Harland and Wolff and the nature of its ongoing discussions with the Government, upon which we have been unable to comment due to the commercially sensitive nature of those discussions. I am now pleased to be able to address the subject and update members of the House. My officials have been working with all parties extensively for a number of weeks to ensure an outcome for Harland and Wolff that delivers shipbuilding and fabrication across the UK and protects jobs.
After a detailed review of an application by Harland and Wolff for a UK Export Finance export development guarantee, His Majesty’s Government have decided not to proceed with the provision of a guarantee. This decision was based on a comprehensive assessment of the company’s financial profile and the criteria set out in our risk policies. We have also decided not to provide any form of emergency liquidity funding. While such a decision is not easy, it is my assessment, following extensive engagement by my officials with market players, that HM Government funding would not necessarily secure our objectives and there is a very substantial risk that taxpayer money would be lost. The Government believe, in this instance, that the market is best placed to resolve the commercial matters faced by Harland and Wolff.
A statement was published on 19 July by Harland and Wolff indicating that the company has commenced discussions with its existing creditors, Riverstone Credit Management LLC, to secure the additional funding it needs. This should allow the business to continue pursuing its short and longer-term objectives, in which the Government continue to take an interest. In all our engagements with them, Riverstone Credit Management LLC has recognised the importance of the assets at Harland and Wolff as well as the people who work there, showing a desire to find pragmatic solutions that support HM Government objectives.
Harland and Wolff indicates that these discussions on new financing should conclude in the next few days. This will involve the current CEO taking an immediate leave of absence and the onboarding of new management with a focus on recapitalisation and ensuring sustainable finances.
I know the recent media reports will have been of concern to workers across Harland and Wolff’s sites, as well as the wider supply chain. I am working closely with my colleagues the Secretaries of State for Northern Ireland and Scotland, and Ministers are also engaging with the leaders of the Northern Ireland Executive and Scottish Government, alongside the local Members of Parliament, to support a positive outcome for all affected sites across the UK. My ministerial team have also reached out to the trade unions represented across the four sites to reassure them that the steps set out by the company appear to me to hold by far the best prospects of ensuring business continuity, job security and the delivery of important existing contracts.
My officials will continue to work closely with those in the Ministry of Defence and the National Shipbuilding Office on the fleet solid support contract, for which Harland and Wolff remains a key subcontractor. Officials in the Ministry of Defence are also well engaged with the prime contractor, Navantia UK, to monitor delivery of this important contract.
I welcome potential new financing for Harland and Wolff and the appointment of new management and wish them all the best in their continued efforts to build up this business.
Shipbuilding supports 42,600 jobs nationwide, adds £2.4 billion to the economy every single year, and is an important pillar of our civil and defence industrial base. We are committed to supporting vibrant and successful shipbuilding and fabrication industries, and our skilled workforces who deliver them, in all parts of the UK, in which Harland and Wolff has its role to play.
[HCWS15]
Code of Practice on Dismissal and Re-engagement
Jonathan Reynolds Excerpts(1 month, 2 weeks ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
This Government are committed to updating Britain’s employment protections so they are fit for our modern economy and the future of work. As we set out in our plan to make work pay, we will boost wages, make work more secure and support working people to thrive—including by delivering a genuine living wage, banning exploitative zero-hours contracts, and ending fire and rehire.
Last year, the previous Government published the code of practice on dismissal and re-engagement (fire and rehire). At the time, we criticised the code for not going far enough to address the scourges of fire and rehire, and fire and replace, which leaves working people at the mercy of bullying threats.
We will be bringing forward legislation within our first 100 days of Government to put an end to these practices, which have no place in a modern labour market.
In the meantime, we have decided not to prevent the previous Government’s code of practice from coming into force today. While the code is an inadequate measure to deal with fire and rehire, it will at least provide a small additional level of protection for workers while we bring forward legislation to implement our commitments on fire and rehire in our plan to make work pay.
The code sets out how employers should act when seeking to change employment terms and conditions. It requires employers to contact the Advisory, Conciliation and Arbitration Service before raising the prospect of fire and rehire and seeks to ensure that fire and rehire is only used as a last resort. Once the code is in force, an employment tribunal will be able to increase an employee’s compensation in certain circumstances by up to 25% if an employer has unreasonably failed to comply with the code. We will replace the code with a strengthened version as soon as we have brought forward legislation on fire and rehire.
[HCWS2]
UK Steel Safeguard Extension
Jonathan Reynolds Excerpts(1 month, 2 weeks ago)
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The Secretary of State for Business and Trade (Jonathan Reynolds)
I would like to make a statement on decisions made by the previous Government in relation to the UK’s steel safeguard measure.
A successful steel industry is critical to our economic future, and we need the right policy environment to build sustainable growth in the UK and to ensure we respond effectively to unfair overseas trading practices and protectionist measures.
Trade remedy measures enable Governments to protect their businesses from unfair foreign trade practices. They tackle issues of dumping or of unfair Government subsidies or, as in the case of safeguards, give businesses time to adjust to unforeseen increases in imports.
The UK has, since 2018, applied a safeguard measure on imports of certain steel products. A safeguard measure imposes a tariff on specified product imports. This provides a level playing field and protects domestic producers from serious injury caused by unforeseen increases in imports giving them the needed time to adjust.
The UK’s safeguard measure applies on 15 different steel product categories and was set to expire on 30 June 2024 under UK law. The Trade Remedies Authority conducted an investigation to determine whether or not there would be injury or threat of injury to domestic steel producers without the safeguard. They considered evidence from both domestic and international industry and organisations. After careful consideration, the Trade Remedies Authority recommended to the previous Secretary of State for Business and Trade that the measure should be extended on all 15 product categories for a further two years, to 30 June 2026.
The previous Government considered the evidence in the Trade Remedies Authority’s recommendation and wider matters in the public interest, including the UK’s obligations under the relevant World Trade Organization agreement. They took the decision to extend the measure on all 15 categories for a further two years, to 30 June 2026. The decision to extend the measure on five of the 15 product categories represented a departure from the UK’s obligations under the relevant WTO agreements. The previous Government balanced this against the evidence the TRA found in their investigation and the UK’s public interest. As shadow Business and Trade Secretary, I supported this decision.
The previous Government also decided to extend the application of the suspension for Ukraine to 30 June 2026. The extension review conducted by the Trade Remedies Authority did not consider the future of the existing suspension for Ukraine as it was beyond the scope of their investigation. The previous Government decided that it was in the UK’s public interest to extend the suspension for Ukraine to 30 June 2026. This decision was taken to ensure that imports of Ukrainian steel will not be subject to the additional safeguard quotas and duty. This is in line with the UK’s commitment to support Ukraine in the war with Russia, which the Prime Minister has reaffirmed to President Zelensky.
In taking this decision with respect to the Ukraine suspension, UK legislation requires the Secretary of State to lay a statement before the House to explain why such a decision was taken. Now that Parliament has been reconstituted, I am laying this statement to make the House aware of the decision taken by the previous Government.
[HCWS5]