Steve Double

Alongside the Heat and Buildings Strategy, the Government aims to consult on new regulations to phase out fossil fuel heating in businesses and public buildings off the gas grid. We will publish an impact assessment alongside this consultation, which will include details on additional upfront costs to non-domestic buildings for transitioning to low carbon heating. The impact assessment will not break down the cost by building or occupancy type, however.

The Government acknowledges the need to take a fair and proportionate approach in the support it provides businesses on their path to net zero. We will seek views on how to best support businesses transition to low-carbon heating through the upcoming consultation.

The Trade Credit Reinsurance Scheme has successfully supported over half a million businesses across a range of different sectors to keep trading throughout the pandemic.

The Government is working closely with businesses and participating insurers to ensure businesses continue to be able to access appropriate levels of credit insurance coverage to support economic recovery.

As part of my Rt. Hon. Friend the Prime Minister’s 10 Point Plan for a green industrial revolution, nearly £500m of funding for the Automotive Transformation Fund will be made available in the next four years to build an internationally competitive electric vehicle supply chain. This funding is the first part of the up to £1 billion committed by the Government to ensure that the UK takes advantage of this once in a generation opportunity. The Automotive Transformation Fund will target support at strategically important technologies (batteries, motors, drives, power electronics and fuel cells).

The Offshore Wind Manufacturing Investment Scheme allocated £160 million to upgrade ports and manufacturing infrastructure across the UK to enable the sector to support jobs and investment in ports, factories and the supply chains, manufacturing the next-generation of offshore wind turbines. In February we announced up to £95m to invest in two new dedicated offshore wind ports in Teesside and Humberside, and in March we announced the first investment, GE Renewables who will build a state-of-the-art blade manufacturing facility at Teesside creating 735 direct jobs.

The Government recognises the importance of industrial magnets in a range of advanced manufacturing applications, including as key components in zero emission vehicles and in wind turbines. The UK magnet industry can therefore play a significant role in our plans for green growth, levelling up across our country and driving emissions to net zero by 2050.

We are investing in R&D and capital projects to develop and embed the next generation of technologies in the UK. For example, through the Automotive Transformation Fund, Less Common Metals (Cheshire) has secured funding for two studies that will look at the feasibility of, and the requirements for, a rare earth permanent magnet plant in the UK. Our Driving the Electric Revolution Challenge is investing £80 million in electrification technologies, including projects relating to the recovery and recycling of rare earth elements, and activities to facilitate the development of rare earth magnet supply chains in the UK.

In addition, the Department for International Trade and other departments are working with UK and overseas mining companies and host Governments, to support and enable UK investment in the extraction, processing and refining of the raw materials required for magnet manufacture. This includes supporting investment in projects to process and refine these materials in the UK.

In November 2020, my Rt. Hon. Friend the Prime Minister’s The Ten Point Plan for a Green Industrial Revolution committed to deploying 40 gigawatts of offshore wind by 2030 (including 1GW of floating offshore wind). It also announced £160m of support for offshore wind coastal manufacturing infrastructure across the whole of the UK to support this deployment programme.

The Contracts for Difference (CfD) scheme has been very successful in delivering large-scale renewable generation whilst reducing costs through competitive allocation rounds. The next round will open in December 2021 and aims to deliver up to double the renewable capacity of last year’s successful round, potentially providing enough clean energy for up to 10 million homes. The allocation round will be open to floating offshore wind projects and both The Crown Estate and Crown Estate Scotland are taking forward plans for seabed leasing rounds for future floating wind projects.

In February 2021, the Department announced up to £95 million of government investment for two new offshore wind port hubs, to be constructed on Humberside and Teesside. The support for the Teesworks Offshore Manufacturing Centre and the Able Marine Energy Park will help to level up the UK economy, bring in new investment, create high-skilled jobs, and provide new opportunities in ports and the areas around them.

In addition, in the Budget 2021 my Rt. Hon. Friend Mr Chancellor of the Exchequer announced that the Government would provide £27 million, subject to business case, for the Aberdeen Energy Transition Zone, helping to support North East Scotland to play a leading role in meeting the UK’s net zero ambitions.

Furthermore, GE Renewable Energy announced an investment in a major new offshore wind turbine blade manufacturing plant, the first investment at the Teesworks Offshore Manufacturing Centre. This brand-new manufacturing facility could create 750 direct renewable energy jobs and close to 1,500 indirect jobs in the area.

The UK’s world-leading offshore wind industry provides a critical source of renewable energy for our growing economy. As set out in my Rt. Hon. Friend the Prime Minister’s 10 Point Plan for a Green Industrial revolution we will quadruple our offshore wind capacity by 2030 to further decarbonise our electricity to power our homes and businesses, and create high-quality green jobs by investing in our ports and coastal regions. Critical minerals will be important in developing offshore wind and coordinated work is taking place across Whitehall departments to ensure there continues to be a secure, long-term supply chain.

The Advanced Propulsion Centre has published analysis identifying opportunities for UK suppliers from the electrification of passenger vehicles over the coming 5 years (https://www.apcuk.co.uk/app/uploads/2020/06/APC-Passenger-car-electrification-report-online-v1.pdf, June 2020).

Our priority is to ensure that the UK continues to enjoy the benefits from our transition to ultra low and zero emission vehicles by continuing to build an agile, innovative and cost-competitive supply chain. With that in mind, we remain committed to securing UK battery manufacturing. 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. We continue to work with investors through the Automotive Transformation Fund, and to progress plans for manufacturing the batteries that we will need for the next generation of electric vehicles here in the UK.

The Government’s Driving the Electric Revolution Challenge is investing £80 million in electrification technologies including power electronics, electric machines and drives (PEMD), providing support for innovation and targeted investment to support development. This includes projects relating to the recovery and recycling of rare earth elements, and activities to facilitate the development of rare earth magnet supply chains in the UK.

BEIS is also supporting innovation in this area, and for example is providing innovation support to Greenspur, a company based in Hertfordshire, to trial a new type of magnet – which does not use rare earth minerals - at the Offshore Renewable Energy Catapult.

The UK is supporting opportunities to secure the domestic extraction of critical materials, such as lithium. For example, we are supporting Cornish Lithium and Geothermal Engineering, who are collaborating to build a zero-carbon lithium extraction pilot plant at an existing site in Cornwall.

The UK is also playing a crucial role in ensuring that strong environmental standards are upheld in the growing deep sea mining industry, to ensure that the International Seabed Authority (ISA) regulatory regime effectively protects these ecosystems for years to come.

The National Planning Policy Framework (NPPF) states that it is essential that there is a sufficient supply of minerals to provide the infrastructure, buildings, energy and goods that the country needs. The NPPF states that mineral planning authorities should plan for a steady and adequate supply of industrial minerals, including by encouraging safeguarding or stockpiling so that important minerals remain available for use. The NPPF states that when determining planning applications, great weight should be given to the benefits of mineral extraction, including to the economy.

The Government has put forward an unprecedented package of support to help businesses which are severely affected by restrictions put in place to tackle Covid-19 and save lives. This package of support includes the Closed Businesses Lockdown Payment (CBLP) which was established in response to the national restrictions that began on 5 January. Through the CBLP, businesses that have been mandated to close by Government, such as non-essential retail, leisure and hospitality businesses, can receive a one-off cash grant of up to £9,000 to support them through to spring.

We are working closely with all Local Authorities in England to deliver funding to businesses that are in scope of this scheme as quickly as possible, while safeguarding public funds.

The Government has put forward an unprecedented package of support to help businesses which are severely affected by restrictions put in place to tackle Covid-19 and save lives. This includes extensive grant funding for businesses that have had to close due to national and localised restrictions, as well as funding for businesses severely impacted by restrictions even if not required to close. The Local Restrictions Support Grant (Closed and Open), which applies to businesses mandated by Government to close alongside businesses that can open during periods of localised restrictions, is incorporated within this funding.

The LRSG (Open) grant programme does not apply during the national restrictions that began on 5 January. The relevant businesses will instead receive grant support through the LRSG (Closed) Addendum: 5 January onwards. The LRSG (Closed) is also superseded by the LRSG (Closed) Addendum: 5 January onwards. We are working closely with Local Authorities to ensure that funding is delivered to businesses that are in scope of these schemes as quickly as possible, while safeguarding public funds.

Hospitality businesses are currently required to close due to the legal restrictions that have been put in place to tackle Covid-19 and save lives. Closed businesses will be eligible for grants of up to £4,500 per 6-week period of closure plus an additional one-off payment of up to £9,000 via local authorities.

In addition to these mandatory grants for closed businesses, £1.6bn has been allocated to local authorities in discretionary funding allowing them to provide grants to businesses that are not required to close but which are severely impacted.

There has been close engagement with the local government sector throughout the design and implementation of grant support for businesses during the local and national Covid-19 restrictions.

Full guidance to local authorities has been published in respect of all grant schemes, as have several iterations of FAQs picking up on issues raised by local authorities.

The Government is committed to meeting the additional New Burdens costs to local authorities. Financial support has started to be provided through some of the grant schemes. A further New Burdens assessment is currently underway and we will provide the additional funding to local authorities at the earliest opportunity.

Between March and September last year, over £11.68 billion was paid out to over a million business premises under the Small Business Grants Fund (SBGF), the Retail, Hospitality and Leisure Grants Fund (RHLGF) and the Local Authority Discretionary Grants Fund (LADGF). A full breakdown of grant funding allocated to and distributed by each local authority is available here: https://www.gov.uk/government/publications/coronavirus-grant-funding-local-authority-payments-to-small-and-medium-businesses.

We have since made further grant support available via Local Authorities to help businesses that have had to close due to national and localised restrictions, as well as funding for businesses severely impacted by restrictions even if not required to close. This includes the Closed Businesses Lockdown Payment (CBLP), the Additional Restrictions Grant (ARG), and the different Local Restrictions Support Grant (LRSG) schemes. More details are available at: https://www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19#support-for-businesses-affected-by-coronavirus-restrictions.

We are not able to share a full breakdown of the funding allocated and distributed by each Local Authority under these new schemes at this stage.

The EU State Aid rules and limits no longer apply in the UK, except in respect of aid in scope of the Northern Ireland Protocol. Subsidies must instead meet the terms of the EU-UK Trade and Co-operation Agreement as well as the other Free Trade Agreements we have reached with the rest of the world and our WTO commitments.

Existing guidance for Covid-19 Business Support grants which references pre-existing EU State Aid limits have been rolled forward until such point as a new domestic subsidy approach is agreed. The government is currently consulting on its proposed approach for establishing a bespoke UK-wide subsidy control regime.

The government is keeping under close review the impact of subsidy control rules on the ability of businesses in the hospitality sector to access grants, and will publish new guidance as and when circumstances require it.

On 6 October, my Rt. Hon. Friend the Prime Minister announced the Government is increasing its 2030 offshore wind ambition from 30GW to 40GW, including a new ambition of 1GW of floating offshore wind and that £160 million will be made available to upgrade ports and infrastructure.

This increase in offshore wind capacity over the next decade will ensure the UK remains the biggest market in the world and represents an opportunity for companies across the UK, including those in the maritime sector.

The Department has regular engagement with the maritime sector.

Each department has a Family Test lead who is part of our Family Test Network. This Network is the central forum through which we have sought input and comments on the support departments need to help with Family Test implementation.

This includes Network members feeding into improvements to the existing guidance for officials in all departments on Family Test implementation.

Low carbon electricity, including solar – whether at the household level or the national level – is central to the transition to the smart and flexible energy systems of the future.

Since 2010, we have quadrupled the electricity we generate from renewables – installing 99% of the UK’s solar capacity and over 800,000 installations – exceeding our historic projections on solar PV deployment. We now have over 13.3GW of solar capacity installed in the UK, which is enough to power over 3 million UK homes.

The Smart Export Guarantee (SEG), which came into force on 1 January 2020, gives small scale low-carbon electricity generators, such as homes with solar panels, the right to be paid for the renewable electricity they export to the grid. Renewable generators now have a several competitive SEG tariffs to choose from, in some cases even higher than the FIT export tariff.

Permitted development rights have been introduced allowing the installation of solar panels up to 1 megawatt on domestic properties, schools, businesses and farm buildings without any need for planning permission.

We are now exceeding our historic projections on solar PV deployment. In 2013 we estimated that solar capacity would reach between 10 and 12GW by 2020, however latest figures indicate we now have more than 13.3GW of solar PV capacity installed in the UK - enough to power over 3 million UK homes.

The prospects of subsidy-free solar PV are becoming increasingly realistic for developers; several solar PV sites have already deployed, and we expect to see more.

The Government has made no specific recent assessment of the UK tobacco industry’s contribution to tackling smoking-related litter. We would like to see the tobacco industry delivering on the commitment given by the Tobacco Manufacturers’ Association to tackle the litter created by its products and their users. The Government supports ongoing efforts by environmental organisation Keep Britain Tidy to work in partnership with the tobacco industry to devise a voluntary scheme through which the industry can contribute to the clean-up of cigarette related litter, and is watching this space with interest. However, this must be achieved without breaching the UK’s international obligations, such as protecting our tobacco control and public health policies from commercial and other vested interests of the tobacco industry in accordance with the World Health Organization Framework Convention on Tobacco Control.

Tobacco packaging is covered by the current producer responsibility regulations, which require companies to recycle a proportion of the packaging waste they place on the market. They will also be subject to the forthcoming extended producer responsibility (EPR) scheme for packaging which will cover the full net costs of managing packaging at its end of life. In our consultation we proposed that producer fees should cover the full cost to local authorities of dealing with littered and fly-tipped packaging waste.

In the Resources and Waste Strategy, we committed to looking into and consulting on EPR for five new waste-streams by 2025, and consulting on two of these by 2022. Waste tobacco filters were not included in this list of priorities but progress on the industry's voluntary approach to litter reduction will be monitored.

The EU’s Single-Use Plastics Directive includes measures to implement an EPR scheme for tobacco products with filters, and filters marketed for use in combination with tobacco products, which should cover the costs of awareness raising, data gathering and litter clean-up of these products.

Now that the UK has left the EU, the Government will use this opportunity to refresh and renew our environmental policy. In the Resources and Waste Strategy, we committed to meeting or exceeding the ambition of the EU Directive, and we will do this in a way that works best for the UK’s aspirations in this policy area.

Each department has a function that leads on ensuring Family Test (FT) requirements are embedded, and is part of the Civil Service Family Test Network.

This Network is the central forum through which we have sought input and comments on the support departments need to help with FT implementation. Members feed improvements into existing guidance for officials in all departments on FT implementation.

Within Defra the Secondary Legislation Business Partner Team has responsibility for ensuring there is consistent application of the FT. All new policy development must include a FT assessment, which policy leads access via the Cabinet Office cleared guidance.