Draft Revised Energy National Policy Statements

Kwasi Kwarteng Excerpts

Monday 20th September 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Today I am laying before Parliament the draft revised energy national policy statements.

The energy national policy statements were first designated in 2011. They set out the Government’s policy for the delivery of energy infrastructure and provide the legal framework for planning decisions, in key energy policy areas: fossil fuels (EN-2); renewables (EN-3); gas supply and gas and oil pipelines (EN-4); electricity networks (EN-5); and nuclear (EN-6). They each sit below an overarching energy NPS (EN-1) which sets out the need for new energy infrastructure.

The Government announced a review of the current suite of energy national policy statements (NPS) in the energy White Paper: “Powering our net zero future” in December 2020.

The energy White Paper builds on the Prime Minister’s 10-point plan to set a long-term strategic vision for our energy system, consistent with net zero emissions by 2050. It establishes our goal of a decisive shift from fossil fuels to clean energy, in power, buildings and industry, while creating jobs and growing the economy and keeping energy bills affordable. It addresses how and why our energy system needs to evolve to deliver this goal whilst retaining a secure and operable energy system.

We have reviewed all the national policy statements for energy infrastructure and determined that the existing EN-1 to EN-5 documents should be amended to reflect the policies set out in the White Paper and support the investment required to build the infrastructure needed for transition to net zero.

A review of EN-6 has concluded that it will not be amended and therefore it is not part of this consultation. A new technology specific NPS for nuclear electricity generation deployable after 2025 is proposed and will be developed to reflect the changing policy and technology landscape for nuclear and support the transition to net zero.

On 6 September 2021 I launched a public consultation on the draft revised energy national policy statements, supporting habitats and sustainability reports and associated appendices. These are subject to a 12-week public consultation and are all available on gov.uk.

I will place copies of the public consultation “Planning for new energy infrastructure: review of energy national policy statements”, the “Appraisal of sustainability and its appendices: Appendices supporting evidence volumes I and II”, and the “Habitats regulation assessment” in the Libraries of both Houses. The public consultation will close on 29 November 2021. The relevant period for parliamentary scrutiny will be from 20 September 2021 to 28 February 2022.

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AQUIND Interconnector: Application for Development Consent

Kwasi Kwarteng Excerpts

Tuesday 14th September 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

This statement concerns an application for development consent made under the Planning Act 2008 by AQUIND Ltd for the construction, operation, maintenance and decommissioning of the UK elements of a 2,000MW bi-directional subsea electrical power interconnector between Normandy in France and Lovedean in Hampshire.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The deadline for the decision on the AQUIND interconnector application was 8 September 2021.

I have decided to set a new deadline of no later than 21 October 2021 for deciding this application to allow an opportunity for further information in respect of compulsory purchase powers to be provided and considered.

The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

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Innovation and R&D Strategies, Post Office Horizon and Framework for Better Regulation

Kwasi Kwarteng Excerpts

Thursday 22nd July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Today the Government are publishing the UK innovation strategy, “Leading the future by creating it”.

Innovation is central to tackling the largest challenges the world faces, from climate change to global pandemics. The UK must be in the vanguard of the response to these challenges. That is why the Government have placed innovation at the heart of our plan for growth and so much else we want to achieve, from fighting coronavirus to achieving net zero and building global Britain.

The UK has a long and illustrious history of world-leading innovation, from the industrial revolution to the vaccine development of the past year. Now we have left the EU, we can move even more quickly to respond to emerging challenges and global opportunities, and cement the UK’s position as a world leader in science, research and innovation.

To this end, the UK innovation strategy sets out the Government’s vision to make the UK a global hub for innovation by 2035, placing innovation at the centre of everything this nation does. Through this we seek to generate disruptive inventions, the most tech-centric industry and Government in the world, more tech “unicorns”, and a nation of firms and people that all aspire to innovate.

To achieve these objectives, we want to unlock business investment in innovation. This is a core objective of the innovation strategy, and my officials have consulted with over 400 businesses and organisations to determine the factors that could lead to an increase in business innovation.

In the innovation strategy we set out our plans against four key pillars, which will support the achievement of our vision:

Pillar 1: Unleashing Business—we will fuel businesses who want to innovate.

Pillar 2: People—we will make the UK the most exciting place for innovation talent.

Pillar 3: Institutions & Places—we will ensure our research, development and innovation institutions serve the needs of businesses and places across the UK.

Pillar 4: Missions & Technologies—we will stimulate innovation to tackle major challenges faced by the UK and the world and drive capability in key technologies.

Through these pillars, the innovation strategy aims to both establish the right underlying policy environment and clearly signal those areas where the Government will take the lead.

This innovation strategy is only the first step. In the coming months and years, we will maintain a laser-like focus on realising our ambitions for innovation. We will track a range of quantitative metrics to measure our progress in delivering our commitments, alongside in-depth intelligence from businesses and other innovation stake-holders. Innovation will also be a crucial element of our efforts to level up the UK economy. A detailed strategy for levelling up through research and innovation will be set out as a part of the Government’s forthcoming levelling up White Paper.

I will place a copy of the innovation strategy in the Libraries of both Houses.

R&D People and Culture Strategy

I am also delighted to announce that the Government have today published their “R&D People and Culture Strategy”, delivering on the commitment we made in the R&D road map last summer. The road map recognised that people are at the heart of research and development, and that we need talented, diverse people, with the right skills, working in an environment that allows them to do their best work and deliver positive outcomes for our society and the economy.

The R&D people and culture strategy sets out, for the first time, a whole sector vision that is backed by clear Government commitments. It is a call to action to create a more inclusive, dynamic and sustainable UK R&D sector, in which a diversity of people and ideas can thrive.

Through this strategy, we will set out actions that will bring the best out of people and enable talent and ideas to flow freely between academia, business, and other sectors. We will ensure that everyone’s contribution is valued, and the UK has an outstanding research culture that truly supports discovery, diversity, and innovation, and offers varied and diverse careers that bring excitement and recognition.

The strategy identifies three priority areas across which action is needed:

People: redefining what it means to work in R&D in the 21st century—valuing all the roles that make it a success and ensuring the UK has the capability and capacity it needs.

Culture: co-creating a vision of the culture we want to see within the sector—working together to make lasting change happen so that researchers and innovators with diverse backgrounds and ways of thinking can thrive and do their best work here.

Talent: renewing the UK’s position as a global leader in R&D in attracting, retaining and developing talented people, making sure careers in UK R&D are attractive to talented individuals and teams both domestically and internationally.

A talented and thriving R&D workforce will be key for realising our science superpower ambitions, and the R&D people and culture strategy will play an important role in supporting the vision I am setting out in the innovation strategy to make the UK a global hub for innovation by 2035.

We have engaged widely with the sector to date on the issues identified in this strategy, and my hon. Friend the Minister for Science, Research and Innovation and I are very grateful to the hundreds of individuals and organisations who have contributed to their respective development. The Government will continue working closely with the sector to ensure the successful implementation.

I will place a copy of the R&D people and culture strategy in the Libraries of both Houses.

Post Office Horizon Update

This House is aware of the distressing impact that problems with the Post Office’s Horizon IT system have had on the lives and livelihoods of many postmasters.

Over the years, the Horizon accounting system recorded shortfalls in cash in branches. These shortfalls were treated by the Post Office as caused by postmasters, and this led to dismissals, recovery of losses by Post Office Ltd and, in some cases, criminal prosecutions. We now know this data was unreliable.

The Court of Appeal handed down a landmark judgment on 23 April 2021, which quashed the convictions of 39 postmasters. A further 12 were quashed in the Court of Appeal earlier this week. Further convictions have been quashed in the Crown court. The Government have been clear that we want to see compensation delivered fairly and as quickly as possible. We have also been clear that it is for the Post Office to engage with the individuals in the first instance regarding how compensation can be paid. I am pleased to provide an update on the steps to begin providing compensation to postmasters whose criminal convictions were based on Horizon data and have been quashed.

We have listened to affected postmasters and want to see them receive compensation quickly. The Government have therefore decided to support the Post Office so that it can make interim payments of up to £100,000 promptly to individual postmasters whose criminal convictions relied on Horizon data and have been quashed, ahead of final compensation settlements being agreed with them. I am providing this support in my capacity as sole shareholder in the Post Office.

While we recognise that these interim payments may not represent the full compensation that postmasters may ultimately receive, and which will need to be determined between the Post Office and the individuals concerned, it is a means of providing monies to individuals at an early stage in the claims process. The process for finally determining the compensation to be paid will take time and will involve POL obtaining a full quantification of all claims. These claims need to be carefully examined so that postmasters ultimately receive fair compensation and the payments that they deserve.

In the meantime, the Government thank the postmasters for their patience, recognising the impact that being wrongfully prosecuted has had on individuals, and believe that an interim payment is a way to begin to address the hardships they have faced ahead of when the final sum can be determined and paid.

The Post Office is contacting the legal representatives of postmasters whose convictions have been quashed with further information about interim payments. We expect the Post Office to issue offer letters for interim payments within 28 days of receiving a claim from eligible postmasters.

The Government are committed to supporting and maintaining the post office network, which, along with the postmasters, provides essential services to our urban and rural communities. This decision supports the Government’s priorities to support postmasters and to see the longstanding Horizon issues resolved. This support is in addition to the financial support BEIS has provided for the historical shortfall scheme to proceed, which was opened to recompense postmasters who repaid shortfalls and did not have a criminal conviction. In addition, BEIS launched the Post Office Horizon IT inquiry, which recently converted to a statutory footing, following the Court of Appeal judgment.

We understand that the Post Office has already begun work to deliver the full compensation sum to postmasters and we will work with them towards this. With my status as sole shareholder in the Post Office, my Department continues to engage actively with Post Office Ltd on this and will maintain strong oversight of this process.

Reforming the framework for better regulation

Our exit from the EU provides us with the opportunity to think boldly about how we regulate and for the first time in a generation, we have the freedom to conceive and implement rules that put the UK first. The UK will use its newfound freedoms as an independent trading nation to boost growth, increase competition and create jobs by revamping the way rules and regulations for businesses are set. We will use this freedom to unlock cutting-edge technologies, unleash innovation, and propel start-up growth, levelling up every corner of the UK. This will be a crucial part of boosting our productivity and helping us bring the benefits of growth to the whole of our country.

In seizing this opportunity, we are launching a consultation to seek feedback from interested parties on how we can reform the UK framework for better regulation.

The consultation sets out five principles that will underpin the Government’s approach to regulation to ensure it benefits the British people:

A sovereign approach: the UK will use its freedoms to take a tailored approach to setting rules in a way that boosts growth and benefits the British people.

Leading from the front: we will act nimbly to support the development of new technologies.

Proportionality: we will use non-regulatory options where we can, while acting decisively to put in place strong rules where they are needed.

Recognising what works: regulations will be thoroughly analysed to ensure they work in the real world.

Setting high standards at home and globally: we will set high standards at home and engage in robust regulatory diplomacy across the world, leading in multilateral settings, influencing the decisions of others and helping to solve problems that require a global approach.

Proposals explored in the consultation

The consultation follows a report from the taskforce on innovation, growth and regulatory reform, which the Prime Minister convened earlier this year, and examines a number of the taskforce’s proposals for reforming regulation, including the adoption of a less-codified, common law approach to regulation. There is also a focus on the process for measuring and reporting impacts under the better regulation framework. Areas examined in the consultation include:

the adoption of a less codified, common law approach to regulation;

a review of the role of regulators, especially around competition and innovation;

delegation of more discretion to regulators to achieve regulatory objectives in a more agile and flexible way counterbalanced by increased accountability and scrutiny;

streamlining the process of assessment of impacts;

moving to earlier scrutiny of impact assessments and evaluation of existing regulation;

consideration of options on measuring the impact of regulation;

reintroduction of regulatory offsetting; and

baselining the UK’s regulatory burden.

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Future System Operator and Energy Codes Reform

Kwasi Kwarteng Excerpts

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I am pleased to announce the launch of the consultations on the future system operator (FSO) and the energy codes governance reform. This is a key step that will contribute towards helping us achieve the Government’s net zero targets and our commitment in the Energy White Paper,

“to ensure that the institutional arrangements governing the energy system are fit for purpose for the long term, consulting in 2021 over organisational functions, including system operation and energy code governance”.

Net zero is an unprecedented challenge for our economy and society—and the energy system at its heart. It has created the need for new technical roles and responsibilities in the electricity and gas systems to drive decarbonisation while minimising costs and maintaining resilience. We will require an organisation with the mandate, whole-system perspective, and engineering capability to fulfil the new and enhanced roles effectively, and the organisational design, incentives, and accountability to fulfil them impartially in the best interests of consumers.

The future system operator (FSO) consultation sets out the case for an expert, impartial, cross-vector FSO to ensure the energy system drives progress towards net zero. The system operators are in a unique position at the heart of their respective systems, both to keep each system operating in real time day to day and to be forward-looking. To help us achieve net zero, we propose bringing the electricity system operator (ESO) and the forward-looking elements of the gas system operator (GSO) together in a new entity, which will enable the systems to be transformed. The consultation also sets out the potential roles that could fall to the new organisation and presents two potential organisational templates which might be adopted. Finally, it sets out considerations on implementation.

Today, we are also launching a consultation on the design and delivery of the energy codes reform. The energy codes are the detailed technical and commercial rules of the gas and electricity system, which cover wholesale, transmission, distribution, and retail. Many of the codes were designed pre-privatisation which has resulted in a code governance framework that is complex, fragmented and lacks incentives to innovate, despite our urgent need for a more unified, flexible and dynamic approach.

Building on a consultation from 2019, we have now developed two governance models further and will be consulting on our preferred option of designating Ofgem as a strategic body over the energy codes, alongside separate code managers. As the strategic body, Ofgem would assess and respond to relevant Government policy and priorities to ensure these are reflected in codes. It would also select and license code managers, who would replace the existing code administrators and take on most of the roles that are currently held by industry-led code panels. However, crucially, we expect that industry input will remain key to the code change process, including though new stakeholder advisory forums.

To help us develop our view on these reforms, we are seeking views on where improvements could be made to existing arrangements. Our final position will be shaped by the outcomes of these consultations.

These energy system governance reforms are intended to apply only to England, Scotland and Wales. Energy is generally devolved in Northern Ireland and so the scope of the review and proposed reforms do not apply to NI’s energy system governance, system operator or energy regulator.

I will place copies of both the future system operator consultation and energy codes consultation in the Libraries of both Houses.

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Competition and Consumer Policy

Kwasi Kwarteng Excerpts

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Today I will lay before Parliament two consultation papers on competition issues which respond to proposals that have been put to the Government in recent years from a variety of stakeholders. This includes those directly commissioned by the Government from Jason Furman, my hon. Friend the Member for Weston-super-Mare (John Penrose), Lord Tyrie and the Competition and Markets Authority. The consultation periods will end on Friday 1 October.

The first document, entitled “Reforming Competition and Consumer Policy—Driving growth and delivering competitive markets that work for consumers” sets out the Government’s vision for the future of competition and consumer policy. We aim to create a competition regime that reflects the Government’s strategic priorities and intervenes quickly and effectively when markets are not working, and consumers are being harmed. It also updates consumer rights so that consumers can navigate changing and new markets with confidence. Our proposals also aim to provide easier routes for consumers and traders to resolve problems amicably on their own and ensure the Competition and Markets Authority and regulators have the powers they need to fix consumer problems, delivering our manifesto commitment to give the Competition and Markets Authority enhanced powers to tackle consumer rip-offs and bad business practices.

These proposals will create a prosperous economy where vigorous competition drives growth and productivity, where businesses that do the right thing are rewarded with greater market share so that consumers can engage in markets with full confidence they will get a good deal.

The second publication called “A New Pro-Competition Regime for Digital Markets” is a joint publication with my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport. I will invite him to provide further detail on this consultation.

Both consultations invite views from consumers, businesses, civil society, think- tanks, academics, public authorities, and the devolved Administrations to ensure our new approach works for the UK economy and supports growth and productivity in markets in every part of the country.

Subject to the outcomes of the consultations, the Government will bring forward legislation to implement reforms.

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National Security and Investment Act 2021

Kwasi Kwarteng Excerpts

Tuesday 20th July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

The National Security and Investment Act 2021 received Royal Assent on 29 April and provides for a new investment screening system to help protect our national security. Today I am publishing three sets of documents related to the Act: a consultation on the draft statement on the use of the call-in power, made under section 3 of the Act; the draft notifiable acquisition statutory instrument; and guidance documents on the Act.

I am announcing today that the commencement date for the sections of the Act not already commenced will be 4 January 2022.

Statement on the use of the call-in power

This statement—a draft of which was previously published as the “Statement of Policy Intent”—sets out how the Secretary of State expects to use the call-in power under the Act. The call-in power enables the Government to screen qualifying acquisitions for national security risks. During the passage of the Act, the Government committed to consulting on this statement and I am launching the consultation today. The consultation is available on www.gov.uk'>www.gov.uk and will be open until 11.59 pm on 30 August.

Draft notifiable acquisition statutory instrument

The draft notifiable acquisition statutory instrument sets out the proposed descriptions of the 17 sectors of the economy that would be captured under the mandatory notification requirements set out in the National Security and Investment Act 2021. The Government have previously consulted on the mandatory notification sectors and published a response in March 2021. The draft sector definitions have been refined in response to stakeholder feedback and the draft statutory instrument has been published today on www.gov.uk'>www.gov.uk to update businesses and investors about mandatory notification requirements.

Guidance

I have today published the first set of guidance documents on the Act. The guidance will build understanding and awareness for all parties who may be affected by the Act and who may need to comply with its provisions. The Government have tested and refined these documents with an expert panel of industry representatives, which includes business representative organisations, higher education bodies, investment associations and other stakeholders, who provided important feedback.

These guidance documents are: an overview of the Act, explaining what types of acquisitions are covered, whether parties need to tell the Government about an acquisition and how the Government will investigate an acquisition; the extraterritorial application of the Act; how the Act works alongside other regulatory bodies and market practices; and guidance for higher education institutions and other research organisations.

I will place copies of the section 3 statement for consultation, the section 3 statement consultation document and the draft notifiable acquisition SI in the Library of both Houses.

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Stellantis Investment: Vauxhall, Ellesmere Port

Kwasi Kwarteng Excerpts

Tuesday 6th July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I am delighted to welcome the confirmation by Stellantis of a transformational investment at its Vauxhall plant in Ellesmere Port, which will see the site become the first mass volume, fully battery electric vehicle plant in the UK and Europe. Stellantis have committed to investing more than £100 million to transition the plant to produce a new generation of electric vehicles, safeguarding the future of the site and its supply chain for the next decade.

This announcement demonstrates that our net zero ambitions are being welcomed and matched by business, as we work towards increasing the manufacture of electric vehicles in the UK. The Government are committed to ensuring we continue to be one of the best locations in the world for automotive manufacturing and are working closely with the sector to make sure it remains competitive, attracts investment, and protects and creates jobs.

Just over six months ago we presented the Prime Minister’s 10-point plan for a green industrial revolution, setting an ambitious road map for transforming our economy, unlocking investment and levelling up the regions. The plan included a commitment to phase out the sale of new petrol and diesel cars and vans by 2030. The decision by Stellantis to invest in electrification in the UK, alongside recent announcements by Nissan and Envision in Sunderland, are excellent illustrations of business and the Government working together to achieve decarbonisation within the sector.

I was pleased to inform the House in June of the strong consumer growth over the past year, which our strategy is helping to drive. As of March 2021, battery electric vehicle sales stood at 7.7% of the market, up 88% on a year earlier, while plug-in hybrid vehicles sales were 6.1%, an increase of 152%. Changing consumer habits such as the way we shop have also driven a strong increase in demand for light commercial vehicles, and this announcement will help transition the fleet with a new vehicle produced here in the UK. This investment will grow domestic production of electric commercial vehicles, help reduce our reliance on imports and play an important part in reducing emissions in towns and cities across the country.

I am sure Members will agree that this is an important announcement for Cheshire, Merseyside and the north-west of England, which secures the continued presence of a key anchor for the local and regional economy. This significant investment has been secured thanks to a strong partnership approach between Stellantis and the Government, alongside Cheshire West and Chester Council, and the Cheshire and Warrington local enterprise partnership to maximise the benefits of the transformation of the plant to the wider local economy.

This news will be welcomed by the workforce at Ellesmere Port and is a testament to their skills and hard work. The Ellesmere Port plant has been a crucial part of automotive manufacturing in the UK since it first opened nearly 60 years ago. This announcement means that that milestone will be marked next year with the production of its first all-electric vehicle—building a sound future on Vauxhall’s proud legacy.

Today’s announcement is further proof that there is a bright future for automotive manufacturing in this country. The Government are committed to supporting this transition including £500 million to support the electrification of UK vehicles and their supply chains, as part of a wider commitment of up to £1 billion. As Secretary of State I will continue to champion the sector, ensuring that we make the most of the opportunities of the transition to zero-emission vehicles and attract further investment, boost innovation and sustain tens of thousands of jobs in manufacturing and the supply chain.

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Nissan: Sunderland Plant

Kwasi Kwarteng Excerpts

Thursday 1st July 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I am delighted to announce that Nissan has confirmed a significant investment into their Sunderland plant and a partnership with their battery supplier, Envision AESC, and Sunderland City Council to create a north-east electric vehicle manufacturing hub.

As Nissan’s second global electric vehicle manufacturing hub, Sunderland will produce battery electric vehicles at scale from 2024 with projected volumes of 100,000 each year. The site will also be home to the UK’s first large scale gigafactory, with Envision AESC supplying batteries for Nissan’s electric vehicles. This is a transformational investment not just for the north-east of England but for the UK, as we move towards a fully electrified future and deliver our net zero ambitions.

Nissan has a long and successful history in the UK and Sunderland is one of the most productive plants in Europe. The north-east of England is renowned for automotive manufacturing and this investment will deliver economic growth in the area and support the levelling up agenda as we build back greener from the pandemic. Nissan’s commitment to Sunderland is testament to the strength of the British automotive sector and the quality and skill of our expert UK workforce. This investment will secure Nissan’s presence in Sunderland and thousands of highly skilled jobs at the plant. Indeed, as Nissan themselves have recognised, our trade and co-operation agreement with the European Union has brought the automotive industry, and our wider economy, the confidence and certainty needed to invest, employ, and plan ahead.

This north-east EV hub is an important first step in delivering our 10 point plan and manifesto commitment of securing our first large scale gigafactory. In increasing their battery production, initially to supply Nissan, the Envision AESC gigafactory will start to anchor the development of EV supply chains within the UK. This is vital as we start the mass UK manufacture of batteries needed for the next generation of electric vehicles.

The Government are also supporting Sunderland City Council to carry out infrastructure works on the adjacent international advanced manufacturing park, to make space for the gigafactory expansion and to start development of a local energy network supplying renewable energy.

The Government have played a crucial role in securing this major investment decision. Between us the Prime Minister, Lord Grimstone and I have engaged strongly with Nissan and their partners, Envision AESC and Sunderland City Council, to demonstrate our commitment to this opportunity. This investment will deliver the first EV to be manufactured at this scale in the UK and is a monumental step in the transition of the automotive industry to electrification.

The Government are committed to ensuring the UK continues to be one of the best locations in the world for automotive manufacturing, investing hundreds of millions to protect and create jobs, while securing a competitive future for the sector. The strong reputation of British automotive manufacturing is evident with over 80% of the cars produced in the UK being exported overseas.

As part of the Prime Minister’s 10-point plan, we have already announced £500 million to support the electrification of vehicles and their supply chains, and other strategically important technologies through the automotive transformation fund, over the next four years. This is our approach to industrial policy in action: a strong and active Government within a dynamic enterprise economy, working with industry to secure private investment and new jobs. We will continue to work with investors to secure the UK’s position at the forefront of the global green industrial revolution.

The Faraday battery challenge, with a further £317 million of Government support, is creating the research, innovation and commercialisation pathways and ecosystem that are establishing the UK as a battery science superpower, growing innovative companies and attracting large scale battery manufacturing to the UK. This includes our investment in the UK battery industrialisation centre, a unique open access facility.

Today’s announcement shows that Nissan and Envision share our commitment to an automotive sector fit for the future as we transition to electric vehicles. The Government are determined to ensure that the UK continues to be a great place to do business and one of the most competitive locations in the world for automotive and other advanced manufacturing. Nissan’s choice of the UK as their first location outside of Japan for such a major investment in electric vehicles underlines the strength of the UK to build such strategic partnerships and deliver our vision.

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Subsidy Control Bill and Consultation on Subsidy Control

Kwasi Kwarteng Excerpts

Wednesday 30th June 2021 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

Today the Government have introduced the Subsidy Control Bill and published the Government’s response to the consultation “Subsidy control: designing a new approach for the UK”.

The UK Government have seized the opportunity presented by our exit from the European Union to develop a new, bespoke regime for subsidy control within the UK.

This new regime has been designed to reflect our strategic interests, strengthen our Union and help to drive economic growth and prosperity across the whole of the UK.

The new regime will be flexible, agile, and tailored to support business growth and innovation, as well as help to maintain a competitive free market economy and protect competition and investment in the UK.

Between 3 February and 31 March 2021, the Government held a public consultation on the UK’s future subsidy control proposals. The Government have used responses to the consultation to inform the design to provide a bespoke and dynamic framework, which will:

Empower local authorities, public bodies, and central and devolved Governments to design subsidies that deliver strong benefits for the UK taxpayer.

Enable public authorities to deliver subsidies that are tailored and bespoke for local needs to support the UK’s economic recovery and deliver UK Government priorities such as levelling up, achieving net zero and increasing UK R&D investment.

Provide certainty and confidence to businesses investing in the UK, by protecting against subsidies that risk causing distortive or harmful economic impacts, including to the UK domestic market.

Contribute to meeting the UK’s international commitments on subsidy control, including its international commitments at the World Trade Organisation, in free trade agreements and the Northern Ireland protocol.

The foundation of this new domestic subsidy control regime is a clear, proportionate, and transparent set of principles, underpinned by guidance, that will ensure public authorities fully understand their legal obligations and embed strong value for money and competition principles.

The Government will create streamlined routes to demonstrate compliance for categories of subsidies at low risk of causing market distortions, that promote our strategic policy objectives and that the Government judge to be compliant with the principles of the regime. This will ensure that these authorities are able to deliver these subsidies with minimum bureaucracy and maximum certainty.

In order to protect UK competition and investment and demonstrate where it is proportionate for public authorities to give greater scrutiny to their subsidies, we will create two specific categories of small number of subsidies that may undertake more extensive analysis to assess their compliance with the principles: subsidies of interest and subsidies of particular interest. Criteria for these subsidies will be set out in secondary legislation in due course. We anticipate there will be a very small number of subsidies in each of these categories.

The Bill also establishes an independent body which will be a UK subsidy advice unit in the Competition and Markets Authority (CMA). The subsidy advice unit will have a role in monitoring and overseeing how the regime is working as a whole, as well as conducting a mandatory, non-binding review of public authorities’ assessments for subsidies of interest and subsidies of particular interest. Enforcement will be through the Competition Appeal Tribunal who will hear judicial reviews against subsidy decisions.

The Government have designed a subsidy control scheme that promotes a dynamic market economy throughout the UK and that minimises distortions within the UK. To ensure that this system works for all parts of the UK, the Government have worked closely with the devolved Administrations throughout this process, including meeting the statutory duty to share the consultation response document ahead of publication and consider devolved Administrations’ representations.

The measures in the Subsidy Control Bill strike the right balance between maximising our newfound flexibilities, having left the EU, and providing a consistent framework for all UK public authorities. The Bill will ensure that the UK maintains a competitive, free market economy—which is fundamental to our national prosperity—while protecting the interests of the British taxpayer.

I will lay the Government response to subsidy control consultation before Parliament and will place a copy of the impact assessment in the Libraries of both Houses.

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Advanced Research and Invention Agency Bill

Kwasi Kwarteng Excerpts

Report stage & 3rd reading
Monday 7th June 2021 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Kwasi Kwarteng)]

I beg to move, That the Bill be now read the Third time.

When it comes to the future of the United Kingdom, this Government are unapologetically ambitious, and one of our greatest ambitions is to secure the UK’s position as a science superpower. Through this Bill to create ARIA, a new agency to support the most ambitious research, we are really focusing on delivering on that agenda.

The Bill provides ARIA with broad functions and powers to take an innovative approach to funding high-risk R&D so that each programme manager can provide effective funding to their talented research team. Critically, the Bill allows a balance between oversight of ARIA’s activities and the independence and autonomy that the evidence tells us is so important for its success.

The Bill creates an agency with a unique role to play and the capabilities it needs to do so. ARIA will sit alongside UKRI and other funders in our R&D landscape. It will provide something additional and complementary, and I believe that its offer will indeed significantly improve the UK’s research and development offer in the long term.

I am grateful that today’s debate has focused on making the most of this ambitious new agency. I would like to recognise the efforts of those across the House and in my Department who have got us to this point. I thank the Science, Research and Innovation Minister, my hon. Friend the Member for Derby North (Amanda Solloway). I know that she celebrated her 30th birthday yesterday, and I congratulate her on having achieved this signal success and that significant milestone. I am delighted that she should be such a focused colleague and have delivered what is a really important piece of legislation. I also thank the Bill team for their work at each stage of the proceedings, and parliamentary counsel for drafting such an admirably concise and, dare I say, elegant Bill.

As we continue our progress towards a more normal way of working in this place, I would like to thank everybody who, in the meantime, has ensured that our proceedings have been able to continue with minimal disruption despite these exceptional circumstances. I would like to place on record that you, Madam Deputy Speaker, and all the House staff and your colleagues have done a remarkable job in keeping the lights on—so to speak—and making sure that we progressed in a very expeditious and calm way through these proceedings and through previous stages of the Bill. Everything has been to order, Madam Deputy Speaker.

I also thank the members of the Public Bill Committee from across the House for their extremely constructive and welcome approach to scrutinising the Bill. I particularly thank the Chairs of those Committees: the hon. Member for Bradford South (Judith Cummins) and my right hon. Friend the Member for Tatton (Esther McVey), as well as my hon. Friend the Member for Kettering (Mr Hollobone) and the Member for Halton (Derek Twigg).

I also thank a number of speakers on the Government Benches. I am referring only to the speeches that I saw myself . My hon. Friend the Member for Ynys Môn (Virginia Crosbie) gave a very positive account of why this Bill is so important to her constituents. My hon. Friends the Members for Guildford (Angela Richardson), for North Norfolk (Duncan Baker), who is not in his place, for Newcastle-under-Lyme (Aaron Bell) and others did a remarkable job in presenting the case for ARIA and in ensuring that the Bill proceeded smoothly.

I would also like to thank a number of Opposition Front-Bench speakers. When I saw her speak, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) gave a customary expert and well-considered view. We have our differences and disagreements, but no one, I think, can doubt her sincerity. I thank the SNP spokesman, the hon. Member for Aberdeen South (Stephen Flynn). I am sorry that the rebellion that he anticipated was not as dynamic as he would have liked, but there you go.

Everybody really has supported the principle of this legislation and the creation of ARIA. While we do not agree on all the details, I think that everybody has brought to the debate a spirit of constructive inquiry and scrutiny, and we have greatly appreciated that.

I am confident, Madam Deputy Speaker, that, as the Bill continues its passage, our parallel progress to realise ARIA and to make it happen will elicit further debate and further questions. As the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Derby North, said on Second Reading, and as we have heard again today, the UK is home to brilliant invention and innovation, and we should be able to shape ARIA in a way that can deliver on that promise. The creation of ARIA will, I firmly believe, make our outstanding UK R&D system even stronger and more dynamic, more diverse, and it will help us to innovate and level up across the country. On that very firm basis, Madam Deputy Speaker, I am delighted to commend the Bill to the House.