Richard Thomson

Of the Department for Business and Trade staff who are graded as Senior Civil Servant 2, 31% are women on full time contracts.

The Department for Business and Trade, along with Cabinet Office, HMT and HMRC, continue to keep UK customs trends regarding SMEs importing from the EU under review. For example, as outlined in the Border Target Operating Model, published August 2023, HM Government is engaged in public consultation on its proposed methodology and rates regarding charging levels and continues to work closely with the Devolved Governments on charging policy.

The analysis brings together robust evidence from across Government using a range of data and analytical tools including data on historic sectoral trading patterns, future trends from the Global Trade Outlook and factors in economy wide impacts to estimate the potential impacts.

The methodology underlying our analysis is also published in full. This impact assessment has been independently scrutinised by the Regulatory Policy Committee, an independent body.

The EU’s Critical Raw Materials Act is seeking to increase the diversity, resilience and sustainability of critical minerals supply chains, in line with the aims of the UK’s own Critical Minerals Strategy published last year. We are assessing the implications of the Critical Raw Materials Act to ensure UK businesses are not disadvantaged. The UK has strong industrial capabilities and deep expertise in critical minerals and mining, and is a global centre of mining finance. We are working with the EU and likeminded partners on our common goals, for example through the Minerals Security Partnership, International Energy Agency and G7.

The Department uses a range of tools to aid decision making to generate insight from large and complex data. All decisions are made by officials and Ministers.

As set out in the Export Strategy the Department for Business and Trade (DBT) is working in partnership with UK exporters to reach a trillion pounds of UK exports annually by 2030, with UK exports reaching £843bn in March this year. As part of this, DBT utilises company-level data to segment and tailor its support based on where a business is at on their export journey. This includes our self-serve digital offer and the Export Academy, which provides training and guidance to ensure businesses across the UK, especially SMEs, have the capability and knowledge to prosper in international markets.

Small and medium sized business are the backbone of our economy and central to achieving our ambition to reach £1 trillion in exports annually by 2030, which is why they are the focus of the Department for Business and Trade and UK government support. The Federation of Small Business is an important champion of small businesses and the Secretary of State values DBT’s regular engagement with this key stakeholder at ministerial and official level. The Secretary of State met the FSB along with other leading business representative organisations on 13 March with another meeting planned for April.

As set out in the Export Strategy, the Export Support Service (ESS) is integral to how we support Small and Medium-sized Enterprises (SMEs). Ensuring that it is adequately funded and resourced is our priority. The Department for Business and Trade is planning to spend over £200 million, over the Spending Review period, to support SMEs.

The ESS provides a range of support and guidance to help SMEs with on-the-ground experts across the globe and, together with our innovative Export Academy, we are ensuring businesses have the knowledge to thrive in international markets.

Lord Offord of Garvel was appointed Parliamentary Under Secretary of State in the Department of Business and Trade on 24 April 2023.

Ministerial responsibilities can be found here: https://www.gov.uk/government/organisations/department-for-business-and-trade.

The Department for Business and Trade and Department for Work and Pensions agree that social security arrangements are not a trade issue. Therefore, the UK will not be seeking any clauses to end the freeze on State Pension payments to UK pensioners residing in Canada in the UK-Canada Free Trade Agreement.

I refer the Hon. Member to the answer given to him by the Minister for Pensions on 10 February 2023, UIN:141589 about HMG’s social security relationship with Canada.

The UK signed the UK–Japan Comprehensive Economic Partnership Agreement (CEPA) on 23 October 2020. The Government is committed to upholding labour commitments in the CEPA.

We are committed to enhancing labour standards globally, for example by leading the way in negotiating the ILO Violence and Harassment Convention. We were the third country in Europe to ratify the convention in March 2022.

We are confident that the Strikes (Minimum Service Levels) Bill is compatible with our international obligations. Many member states of the ILO have minimum service levels covering a range of key services.

The British Energy Security Strategy set out the Government's ambition to support up to 1GW of electrolytic hydrogen to be in construction or operational by 2025 across the UK. The first hydrogen allocation round is underway and the Government announced a shortlist of 20 electrolytic hydrogen projects in March 2023, including five projects based in Scotland, to enter the next phase of due diligence and negotiations. A second hydrogen allocation round is due to be launched before the end of 2023. In addition, four Scottish projects were also awarded funding through Strands 1 & 2 of the Net Zero Hydrogen Fund.

The Government has been developing the process for Track 2 and will set out details in the spring.

The Government has been developing the process for Track 2 ensuring experience and knowledge gained from Track 1 is embedded.

Track 2 will ensure that the UK deploys four clusters by 2030 at the latest in order to meet the ambition to capture and store this 20-30Mtpa.

The UK has been a strong advocate for ECT modernisation. At the Energy Charter Conference on 22 November, the decision to adopt the modernised Treaty was postponed. The UK has been closely monitoring the situation surrounding the Energy Charter Treaty’s modernisation process, including the positions taken by other Contracting Parties.

The first electrolytic hydrogen allocation round will offer support from the Net Zero Hydrogen Fund (capital funding) and the Hydrogen Production Business Model (revenue support). Applications closed in October 2022 and the Government hopes to announce a project shortlist in Q1 this year. Following due diligence and negotiations, the Government will award contracts to successful projects later this year.

Individual investigations are a matter for Ofgem, the independent regulator, and that information is not shared with BEIS. On the mutualisation of costs specifically, Ofgem’s recent proposals target surplus balances to reduce the amount at risk of mutualisation. Their proposals also allow suppliers to continue to collect credit balances where these are required to help smooth customer payments evenly throughout the year.

On 15 December 2021, Ofgem announced an Action Plan to develop a package of measures to boost financial resilience in the energy retail market. Since then, they have taken several immediate actions to improve financial resilience.

On mutualisation of the cost of customer credit balances specifically, Ofgem’s proposals target surplus balances, reducing the amount at risk of mutualisation, while allowing suppliers to continue to collect credit balances where these are required to help even out customer payments throughout the year.

More detail on steps being taken is available in their 14 April 2022 Open Letter to domestic energy suppliers which can be found here: https://www.ofgem.gov.uk/publications/open-letter-domestic-energy-suppliers-financial-resilience.

Ofgem determines the costs that a receiving supplier can recover, including the cost of honouring credit balances that customers had with the insolvent supplier. The costs are paid via a levy on all suppliers, which they will reflect in their pricing and which Ofgem will take account of it in calculating the price cap. The cost is not met from exchequer funds.

Ofgem’s powers provide a safety net when suppliers fail, ensuring customers are seamlessly transferred to a new energy supplier.

Any customers going through Supplier of Last Resort process will not go off supply and in every case will have their credit balances protected.

Suppliers are not currently required by Ofgem to ring-fence customer credit balances, but Ofgem has consulted on implementing a ring-fencing obligation.

On 14 April Ofgem published an open letter outlining proposals to further tighten protections against the financial instability of suppliers, including preventing the use of customer credit balances as working capital. Ofgem plans to conduct a statutory consultation on ringfencing customer credit balances later in the spring of this year. They also plan a consultation on policy options related to capital adequacy.

In the event of a supplier insolvency, customers are transferred to another supplier appointed by Ofgem and domestic customers have their credit balances protected.  Customers can ask their supplier to refund a credit balance at any time. Suppliers must do so promptly unless they have reasonable grounds not to.

Ofgem first consulted on protecting customer credit balances in October 2019 (https://www.ofgem.gov.uk/publications/supplier-licensing-review-ongoing-requirements-and-exit-arrangements).

The Department has not estimated the value of customer credit balances that have been mutualised. Ofgem approves claims for the recovery of the costs under the Supplier of Last Resort levy.

On 14 April 2022 Ofgem published an open letter outlining proposals to further tighten protections against the financial instability of suppliers, including preventing the use of customer credit balances as working capital.

On 14^th April, Ofgem published an open letter outlining proposals to further tighten protections from any financial instability of suppliers, including preventing the use of customer credit balances as working capital. Ofgem plans to conduct a statutory consultation on ringfencing customer credit balances later in the spring of this year. They also plan a consultation on policy options related to capital adequacy.

The Acorn Project is the reserve cluster in Track-1 of the Carbon Capture, Usage and Storage Cluster Sequencing process. The Government has continued to engage with the cluster to help it continue its development and planning, and has allocated the project more than £40m in development funding in recent years.

The Government intends to bring forward a process to facilitate the deployment of additional ‘Track-2’ clusters.

The Heat and Buildings Strategy was published on 19^th October.

Ministers and officials from the Department for Business, Energy and Industrial Strategy hold regular meetings with counterparts in the devolved administrations to discuss energy and decarbonisation policy, including the significant opportunities presented by the deployment of carbon capture, utilisation and storage across the UK.

The North Sea Transition Deal recognises that the upstream oil and gas workforce has the transferrable skills needed to support the energy transition, including the development of a hydrogen economy. The Deal supports the work of the Energy Skills Alliance, which aims to prepare the energy industry to meet the future demand for skills in new technologies. The Deal also contains a commitment for OPITO, the sector skills body, to develop an integrated people and skills plan with measurable objectives, by March 2022, to support the sector’s diversification. The Government Net Zero Strategy, recently published, further commits to reform the skills system, so that training providers, employers and learners are incentivised and equipped to help deliver our net zero aims.

Through the landmark North Sea Transition Deal, the sector committed to voluntary, industry-led UK content targets for related new energy projects and decommissioning as well as for locally provided technology. The sector is considering how it will meet these targets and this month has appointed an Industry Supply Chain Champion, Sian Lloyd-Rees, to raise the profile of the UK’s energy supply chain capability. BEIS regularly engages with the Scottish Government alongside industry and regulators through the Deal Delivery Group and North Sea Transition Forum to discuss all aspects of the delivery of the Deal. The Oil and Gas Authority, as the independent regulator, will monitor the voluntary supply chain targets utilising existing tools such as their Supply Chain Action Plans.

As set out in the UK Hydrogen Strategy, published in August 2021, current evidence suggests the UK hydrogen economy could support over 9,000 jobs by 2030 – and up to 100,000 jobs by 2050. Estimates, including those related to specific locations and production types, will improve over time as the project pipeline for both CCUS-enabled and electrolytic hydrogen develops. The UK wide Hydrogen Strategy is clear that the Government expect, to see support economic benefits across the Union and the industrial heartlands.