Liam Byrne

The UK has worked closely with the U.S. to implement commitments across all five pillars of the Atlantic Declaration, which was announced in June 2023. Key achievements include participation in the inaugural Quantum Development Group, launching the inaugural UK-US Joint Committee Meeting on Science and Technology, establishing the UK-U.S. Data Bridge, and setting up the Strategic Technology Investor Council, and establishing the US-UK Joint Standing Committee on Nuclear Energy Cooperation.

The UK looks forward to working with President-elect Trump in office, including on his policy priorities and improving UK-US trading relations to support businesses on both sides of the Atlantic.

The Cabinet Office’s National Security Secretariat is responsible for the overall implementation of the Atlantic Declaration. It operates under the leadership of the National Security Advisor, and Deputy National Security Advisor for International Economics. Relevant departments are responsible for specific commitments:

• Critical and emerging technologies (Secretary of State, Department for Business and Trade and Secretary of State Department for Science, Innovation and Technology)

• Economic security and technology protection toolkits and supply chains (Secretary of State Department for Business and Trade and Secretary of State Department for Science, Innovation and Technology)

• Digital transformation (Secretary of State Department for Science, Innovation and Technology)

• Clean Energy (Secretary of State Department for Energy Security and Net Zero)

• Defence, Health Security, and Space (Secretary of State Foreign, Commonwealth and Development Office, Chancellor of the Duchy of Lancaster, Cabinet Office and Secretary of State, Ministry of Defence)

The National Security Council is a Cabinet Committee, membership of Cabinet Committees is decided by the Prime Minister. Cabinet committees have a standing membership, however other Ministers will be invited according to the agenda.

The body referred to in the Rt Hon. Members' question was one of a number of sub-Committees of the National Security Council (NSC). Since July 2024 the National Security Council itself considers economic security, as part of its broader strategic approach to national security including foreign policy, resilience, international relations, economic security, trade, development, defence and global issues.

Economic security is a priority for this Government, and we have taken a number of steps to coordinate economic security policy through the NSC and by embedding economic security into the Government’s Industrial Strategy to support long-term stability. Economic Security is a core concern of the Growth Mission Board and our work with international partners.

The government has launched a number of reviews and strategies relating to policy areas covered in the Integrated Review (2021) and Integrated Review Refresh (2023). These include but are not limited to:

• Strategic Defence Review - Ministry of Defence

• AUKUS Review - Ministry of Defence

• China Audit - Foreign, Commonwealth and Development Office

• Global Impact Review - Foreign, Commonwealth and Development Office

• Economic Diplomacy Review - Foreign, Commonwealth and Development Office

• International Development Review - Foreign, Commonwealth and Development Office

• Resilience Review - Cabinet Office

• Trade Strategy - Department for Business and Trade

• Industrial Strategy - Department for Business and Trade

The recently published Impact Assessment estimates the number of workers who will be affected by the increases in the National Living Wage and National Minimum Wage, broken down by region and country. More granular estimates by local authority and parliamentary constituency are subject to greater data reliability issues due to survey response rates.

A full-time worker earning the National Living Wage will see their gross annual earnings rise by £1,400 per year. A full-time worker earning the 18-20 National Minimum Wage will see their gross annual earnings rise by £2,500 per year.

The Department for Business and Trade is keeping the potential national security risk posed by outward direct investment in sensitive sectors under review, and continuing to engage with businesses and financial stakeholders on this issue. In May, the Cabinet Office issued public guidance on how the existing National Security and Investment Act powers allow the Government to intervene in certain outward direct investment transactions.

The Government is developing a steel strategy, in partnership with the steel sector and trade unions, that will set out a long-term vision for steel and create opportunities for public and private investment.

We have committed to providing up to £2.5bn for steel which will be available through the National Wealth Fund and other routes. This is in addition to the £500m for Tata at Port Talbot steelworks. When designing how best to invest this money, we will consider a range of factors, including leveraging private sector investment and making the UK a great place to invest.

The Government is developing a steel strategy, in partnership with the steel sector and trade unions, that will set out a long-term vision for steel and create opportunities for public and private investment.

We have committed to providing up to £2.5bn for steel which will be available through the National Wealth Fund and other routes. This is in addition to the £500m for Tata at Port Talbot steelworks. When designing how best to invest this money, we will consider a range of factors, including leveraging private sector investment and making the UK a great place to invest.

The Budget committed over £2bn to 2030 for zero-emission vehicle manufacturing and their supply chains. This funding will build on previous ATF and APC programmes which have leveraged over £6bn of investment from the private sector so far. We will continue with this success, unlocking billions more in private investment to support our automotive industry. Further details will be announced as part of the industrial strategy.

The Budget confirmed £975m over 5 years to the Aerospace sector. Industry led applications for R&D co-investment from the ATI Programme enter a competitive process. Competition for funding is fierce and only the best projects are selected: those that offer real innovation, reduced emissions and tangible economic benefits to the UK. Each application is subject to a value for money assessment by DBT economists, which underpins the estimated benefits from the Programme of at least £20bn of further private investment to 2040 and abatement of 125 MtCO2 of UK attributable global aviation CO2 emissions.

The Budget confirmed £975m over 5 years to the Aerospace sector. This provides continued stability and confidence for industry to invest in long-term R&D projects – delivering economic growth, supporting high skilled jobs across all parts of the UK, and advancing aviation’s net zero transition. Between 2013/14 and 2029/30, industry and government will invest over £5bn developing transformational aircraft technology. Long-term R&D co-investment is a core pillar of the Aerospace Growth Partnership’s 2022 strategy, where the UK sector committed to invest at least £20bn of further private investment to 2040 and abate 125 MtCO2 of UK attributable global aviation CO2 emissions.

The methodology for determining the eight growth-driving sectors is outlined in the Invest 2035 Green Paper. This included assessing historic trends since 2019-20, such as gross value added and productivity, at Standard Industrial Classification-2 level where data was available. The Government complemented this with wider internal and external data sources such as specialist industry reports and qualitative assessments, particularly in emerging subsectors where historic data is unavailable. Government will continue to draw in evidence such as sector performance and employment trends using responses to the Green Paper consultation questions; engagement with external stakeholders such as businesses, local leaders, academic experts; and other data sources.

The Budget committed over £2bn to 2030 for zero-emission vehicle manufacturing and their supply chains. This will build on the current Automotive Transformation Fund (ATF) and Advanced Propulsion Centre (APC) programmes to drive economic growth and support high-value jobs, unlocking billions of pounds of private investment in the UK’s automotive industry and R&D innovation ecosystem.

As with the ATF and APC programmes, all future investment will be fully assessed on a strategic, technical, commercial, financial and economic basis – including consideration of future job creation. The economic assessment ensures value for money is consistent with HMT Green Book best practice.

The Export Control Joint Unit (ECJU) has in place an established process for responding at pace to changing conditions in a country where the UK has previously granted export licences, and where those licences remain extant.

The FCDO advises DBT on the situation in country and the risks this poses with respect to the UK’s export control responsibilities. The MOD advises DBT on the risks of diversion of exported goods and national security risks arising from hostile state activity. The Department of Business and Trade, with DBT Secretary of State as the decision-making authority, decides whether to amend, suspend or revoke any relevant licences.

Given its diplomatic sensitivity, the Government is unable to disclose the specific number and destination countries of Change in Circumstances Reviews.

The UK Strategic Export Controls Annual Report 2023 is due to be published by the end of this year. It will be laid before Parliament and made available on Gov.uk at: https://www.gov.uk/government/collections/united-kingdom-strategic-export-controls-annual-report.

The Office for Trade Sanctions Implementation (OTSI) has recruited people with a wide range of professional experience from across government and the private sector to fulfil OTSI’s responsibilities of policy, licensing and enforcement of certain trade sanctions, and industry engagement, along with financial management, project delivery and business support specialists. OTSI is also supported by legal, analytical and digital experts.

OTSI is funded from the £50m Economic Deterrence Initiative (EDI) for 2023/24 and 2024/25. The Foreign, Commonwealth and Development Office (FCDO) is expected to publish more information on the EDI in the near future.

The Government’s export controls regime protects global security by restricting who has access to sensitive technologies and capabilities, ensuring UK exports do not contribute to WMD proliferation, a destabilising accumulation of conventional weapons, or are used to commit or facilitate internal repression or a serious violation of international humanitarian law. Our priorities for export controls policy include:

• Working with international partners, and like-minded states, to ensure our export controls properly address the threats we face, keep pace with new technologies, and adapt to changing circumstances.
• Agility in responding to volatile global situations through keeping all extant licences under continuous and careful review.
• Supporting key international alliances in areas such as AUKUS and ITAR collaboration.
• Effective delivery of the licensing service to exporters via the continued roll-out of LITE and ensuring we are always identifying ways we can develop and evolve the service we provide.

The Office for Trade Sanctions Implementation intends to publish an annual review covering an overview of its activities across the year, following the model set by similar units such as the Office for Financial Sanctions located in HM Treasury and the Export Control Joint Unit in the Department for Business and Trade.

The Office for Trade Sanctions Implementation (OTSI) will support businesses to meet their obligations under the UK’s trade sanctions regime through issuing guidance and engaging with a range of sectors and businesses.

OTSI has already undertaken a major programme of industry engagement and outreach and is committed to ongoing business engagement to support compliance. OTSI has already published a suite of online guidance for businesses and launched new online tools which make it easier to report a breach and apply for a licence.

OTSI is committed to supporting businesses to comply with trade sanctions by improving existing guidance as well as creating and promulgating new guidance, where necessary.

In the event that a licence for a Vessel Based Armoury (VBA) is revoked, it is the responsibility of the Private Maritime Security Companies which make use of the affected VBA to arrange transfers of controlled goods to alternative, and appropriately licensed, armouries.

The registration of a business is generally a matter for its owners. However, if they are UK legal or natural persons active in the Maritime Anti-Piracy sector, they are still subject to UK Export Licensing legislation. The only requirement under existing UK licensing provisions is for Private Maritime Security Companies to make an application to use alternative approved storage for controlled goods. The enforcement of export licensing is a matter for His Majesty’s Revenue & Customs.

Licences issued to Private Maritime Security Companies for the movement of arms (including for storage on vessel based armouries) already include provision in the terms and conditions for the controlled goods to either be returned to the UK via a Standard Individual Trade Control Licence (SITCL) or for the destruction of the controlled goods (with evidence) should the licence expire, be suspended or revoked.

The Open General Trade Control Licence, which UK Private Maritime Security Companies (PMSCs) require for Maritime Anti-Piracy (MAP) operations, once granted, is open-ended for as long as the PMSC remains active in the MAP sector and is abiding by the terms of the licence. Licences can include provision for the storage of arms in approved land-based armouries as an alternative storage facility.

Private Maritime Security Companies impacted by the revocation of MNG Maritime’s Licences were given a month to begin the process of relocating their controlled goods, including submitting licence applications to store those controlled goods on another approved vessel based or land-based armoury.

As with all export licences, the Department for Business and Trade keeps the licensing of the Maritime Anti-Piracy Sector under continual review.

We have engaged with UK businesses across a range of sectors to understand their concerns about the potential impact of the US Inflation Reduction Act on UK industry. We have also engaged with the US on UK industry views across multiple channels on this issue, including in 2022 in response to the US Treasury consultation on the implementation of the Inflation Reduction Act, and remain committed to defending the interests of UK businesses.

The Department for Business and Trade is engaging with businesses and financial stakeholders to better understand the potential national security risk posed by outward direct investment in sensitive sectors. In May, the Cabinet Office issued public guidance on how the existing National Security and Investment Act powers allow the Government to intervene in certain outward direct investment transactions. In addition, the National Protective Security Agency and National Cyber Security Centre are updating their Secure Business campaign to include advice on risks relating to ODI.

The United Kingdom and United States have a shared objective in preventing our companies’ capital and expertise from fuelling technological advances that will enhance the military and intelligence capabilities of countries of concern. The Department for Business and Trade continues to engage with the US Government on potential national security risks posed by Outward Direct Investment.

The Department for Business and Trade continues to engage closely with the US Government on potential national security risks posed by Outward Direct Investment. It will have an extra territorial impact, which may impact some UK businesses. The Department for Business and Trade is engaging with UK businesses and financial stakeholders to ensure they are considering the extra territorial impact of such regulations before the Executive Order 14105 comes into effect on 2 January 2025.

The Department for Business and Trade delivers the Group Litigation Order (GLO) scheme and the recently-launched Horizon Convictions Redress Scheme (HCRS).

Since the launch of the GLO scheme in March 2023, a total of c.£2.9 million has been spent on legal advice to the Department on settling the redress claims of postmasters in the GLO scheme. A further c.£12.5 million has been spent on support for victims’ legal fees.

Since the launch of the HCRS scheme in July 2024, a total of c.£100k has been spent on legal services to the Department in the setting up of the HCRS scheme. Approximately c.£360k has been spent on victims’ legal fees.

A detailed breakdown of legal fees paid by law firm and scheme is provided below:

Horizon Convictions Redress Scheme (HCRS)

Group Litigation Order Scheme (GLO)

The figures above exclude recoverable VAT. Figures from April 2023 are subject to audit and may change.

On the Overturned Convictions (OC) & Historical Shortfalls (HSS) schemes, this is a matter for the Post Office. I have asked them to write to my Rt. Hon. Friend, the Member for Birmingham Hodge Hill and Solihull North, and a copy of their correspondence will be placed in the Libraries of both Houses.

We are committed to ensuring our export controls develop to address risks to national security and international peace and security posed by emerging technologies, while supporting UK exporters in strategically important sectors.

Building on the commitments in the UK-US Atlantic Declaration, defence trade collaboration between the UK, US, and Australia was announced in August 2024, through the publication of the UK’s AUKUS Nations Open General Licence, and the new exemption to the US International Traffic in Arms Regulations (ITAR) for the UK. This development recognised the compatibility of our respective export controls systems, lifting key restrictions and allowing our defence firms to work together even more closely.

In line with our commitments in the Atlantic Declaration, the UK is also working closely with our partners on the challenge of intangible transfers and targeting of end-uses users of concern.