Tag: UK Government

Government goes further and faster on planning reform in bid for growth

Chancellor continues ‘bold reform’ of the planning system in England to deliver on the Plan for Change

  • Chancellor reveals new plans for more houses near commuter train stations to kick start economic growth, as government continues its bold reform of the planning system to deliver on the Plan for Change for working people.
  • Sweeping reforms under the Planning and Infrastructure Bill will take an axe to red tape that slows down approval of infrastructure projects and the government will work with Parliamentarians to ensure a smooth and speedy delivery.
  • Chancellor highlights in its first six months the government has already taken 13 planning decisions and approved 9 nationally significant infrastructure projects spanning airports, data centres, energy farms, and major housing developments.

Untapped land near commuter transport hubs will be unlocked to build new housing for working people, as part of ‘bold new steps’ to reform the planning system and unlock growth to deliver win-win outcomes for the country and the economy. The reforms will create secure, high-paying jobs and deliver major infrastructure faster to bolster public services and lower bills.

Ahead of the Chancellor’s speech next week on economic growth, the government has today announced how it will go further and faster to deliver Plan for Change milestones of 1.5 million new homes over five years and 150 decisions on major infrastructure projects by the end of the Parliament.

It follows the ambitious reforms unveiled by the Chancellor in July and delivered by the Deputy Prime Minister at the end of last year through publication of the overhauled National Planning Policy Framework.

The government’s next steps on planning reform include streamlining a set of national policies for decision making to guide planning decisions taken by local authorities and promote housebuilding in key areas.

In a major new growth push, the government will ensure that when developers submit an application for acceptable types of schemes in key areas – such as in high potential locations near commuter transport hubs – that the default answer to development is ‘yes’.

This will unlock more housing at a greater density in areas central to local communities, boosting the government’s number one mission to grow the economy. These measures will transform communities, with more shops and homes nearer to the transport hubs that working people rely on day in day out.

As part of these measures, the government will streamline decisions on critical infrastructure projects by slashing red tape in the planning system which is holding up projects. That means looking again at the input from expert bodies who developers are required to consult – and replacing the current systems of environmental assessment to deliver a more effective and streamlined system that reduces costs and delays for developers, whilst still protecting the environment.

The Chancellor also revealed today that she is championing a regeneration project around Old Trafford in Manchester that will see new housing, commercial and public space as a shining example of the bold pro-development model that will drive growth across the region, with authorities exploring setting up a mayoral development corporation body to redevelop the area. 

The government is also working with Greater Manchester to release growth-generating land around transport hubs through local development orders, such as around Castleton Station, with the potential for this innovative use of existing powers to kickstart building in these sites to be a blueprint for the rest of the country so that every corner of the UK benefits from growth.

The new proposals tackle the dire inheritance head on. Last year homebuilding fell below 200k and permissions reached their lowest for over a decade, which is why the government is taking radical action necessary to reverse this trend and deliver the homes necessary to reach 1.5 million homes over this Parliament.

This government is turning the page on the decline and decay of the past and choosing growth with a significant number of planning decisions already made by Ministers since July. This includes 13 planning decisions taken by Ministers over 90% of which within the target timeframe, and 9 nationally significant infrastructure projects approved, collectively spanning airports, data centres, solar farms and major housing developments such as the Expansion of London City Airport, a data centre in Buckinghamshire and a new M&S store in Oxford Street, London.  

The government has committed to making 150 decisions on these major economic infrastructure applications over this Parliament, more than doubling the decisions made in the previous Parliament and more than 130 made since 2011.

This will unlock the growth necessary to deliver win-win outcomes for the country and the economy – creating stable and high-paying jobs, building more affordable homes, and delivering critical infrastructure faster to bolster public services and lower bills – while improving the environment where it matters most.

Chancellor of the Exchequer, Rachel Reeves said: “I am fighting every single day in our mission to kick start the economy, deliver on our Plan for Change, and make working people better off. That includes avenues that others have shied away from.  

“Too often the answer to new development has been “no”. But that is the attitude that has stunted economic growth and left working people worse off. We need to do things differently and that journey began as soon as I started at the Treasury in July. These are our next steps and I can say for certain, there is more to come.”

Deputy Prime Minister and Secretary of State for Housing, Angela Rayner said: “From day one I have been clear that bold action is needed to remove the blockers who put a chokehold on growth. That’s why we are putting growth at the heart of our planning system.

“Growth means higher wages, better living standards, families raising their children in safer homes, and the next generation taking their first steps onto the housing ladder.

“This year we will go even further to make the dream of homeownership a reality for millions and fix the housing crisis we inherited for good – getting more shovels in the ground to build the homes and vital infrastructure that our communities so desperately need.”

Growth is the number one mission of the Labour Government’s Plan for Change, so we can put more money in people’s pocket. Today the Chancellor is setting out further action on the government’s growth mission by announcing the following: 

Planning 

The Planning and Infrastructure Bill will provide the powers to accelerate the infrastructure and homes needed to deliver on the government’s ambitions – and fast track critical infrastructure such as windfarms, power plants, and major road and rail projects. Today the government is confirming for the first time that the Bill will be introduced in Spring and we will work with Parliamentarians to ensure a smooth and speedy delivery.

Further detail on the Bill is being published today in a working paper on streamlining decisions on nationally significant infrastructure projects, including reducing the burden on developers by making consultation requirements more proportionate, strengthening statutory guidance to ensure they are clear over what is and is not required when submitting planning applications, and ensuring that National Policy Statements are updated at least every five years to give more certainty to developers, speeding up decisions. 

Previous working papers have already set out reforms to the operation of planning committees, and an overhaul of the way developers can discharge their environmental obligations so that they can crack on with building.

The Chancellor is today also announcing reform to the statutory consultee system, which requires developers to consult local communities and expert bodies when making planning decisions. This often means too many organisations consulted on too wide a range of issues, clogging up much-needed development.

Today the government has declared a moratorium on any new statutory consultees and the Chancellor and the Deputy Prime Minister will review in the coming weeks the existing arrangements to make sure they meet this Government’s ambitions for growth.

This follows changes announced last week to the rules around challenging major infrastructure projects through the courts – stopping blockers getting in the way of the Government’s Plan for Change and getting nuclear plants, trainlines and windfarms built quicker. Current excessive rules mean unarguable cases can be bought back to the courts three times.

This will be overhauled, with just one attempt at legal challenge for hopeless cases that would previously have caused much more delay.

Environment

The government is also reforming environmental impact assessments, which have strayed from their original purpose of supporting decision making and have become voluminous and costly documents that too often support legal challenges rather than the environment.

They will be replaced by Environmental Outcome Reports which will be simpler and much clearer, which will support growth by saving developers time and money, whilst still protecting the environment. The government will publish a roadmap for the delivery of these new Environment Outcomes Reports in the coming months.  

This follows a working paper on development and nature published by the government before Christmas setting out a new approach that will turbocharge the delivery of housing and infrastructure while securing positive environmental outcomes.

Developers will be able to pay into the Nature Restoration Fund which will allow them to discharge relevant environmental obligations for protected sites and species and focus on building, safe in the knowledge that appropriate action will be taken to support nature’s recovery.

Major infrastructure

A working paper is being published setting out the government’s plan for its 10 Year Infrastructure Strategy, which will be focussed on infrastructure’s role in enabling resilient growth, delivering clean energy by 2030 and net zero by 2050 while securing the growth benefits of the transition, and improving public services.

The working paper seeks industry views as part of the government’s continued consultation on the development of the strategy which will be published in late Spring.

Jennie Daly, CEO of Taylor Wimpey said: “We continue to be impressed by the speed with which the government has gripped the need for planning reform to deliver much needed new housing supply. New high-quality housing and the infrastructure it brings are essential drivers of economic growth. 

“We welcome the commitment from the government to introduce the Planning and Infrastructure Bill as a priority in the spring, and we look forward to supporting the promised consultation work on reforming the planning system to expedite decisions and overcome local barriers to growth.”

Mark Reynolds, Mace Group Executive Chairman and Co-Chair of the Construction Leadership Council said: “When the government and the Construction sector work in partnership we can unlock growth of up to 2% of GDP. The simplification and streamlining of the planning system is a significant contributor to this so the announcements today are a welcome development which could deliver £2 billion per year in savings once fully implemented.

“In addition the upcoming publication of the 10 year National Infrastructure Strategy is an opportunity to set out plans for ambitious growth and chart a direction for the industry, instilling confidence in businesses to invest in skills, innovation and deliver profitable growth, we look forward to contributing to its success.”

Neil Jefferson, CEO of Home Builders Federations said: “Identifying more land for development and removing the treacle from the planning process that delays applications is essential if we are to increase housing supply.

“The swift moves to address these blocks in the planning system are very welcome and will pay dividends if the other constraints on housing supply can be tackled. Housing delivery is dependent upon a range of factors, of which planning is a major one, and these changes underline the government’s commitment to increasing supply.”

Mayor of Greater Manchester, Andy Burnham said: “With our devolved powers we’re mobilising the whole Greater Manchester system to lock in growth for the next decade and reap the rewards for our city-region and UK plc.

“The project around Old Trafford represents the biggest opportunity for urban regeneration this country has seen since London 2012 and is a key part of our 10-year plan to turbocharge growth across Greater Manchester.

“We look forward working with the Government on moving freight away from the site around Old Trafford to new locations to open up capacity our rail network, and unlock massive regeneration potential – delivering benefits across the whole of the North.”

As part of its ‘relentless focus’ to get Britain building and achieve the ambition to build 1.5 million new homes over five years, the government has already:  

  • Overhauled the National Planning Policy Framework, including new and higher mandatory housebuilding targets for councils, a comprehensive modernisation of the Green Belt, and far greater support for growth-supporting development such as labs and datacentres.  
  • Launched a New Homes Accelerator group to unlock thousands of new homes currently in the planning system.  
  • Published a series of working papers on further reforms to the planning system:
    • ‘brownfield passports’, designed to ensure that where planning proposals meet design and quality standards, the default answer to planning permission is ‘yes’,
    • development and nature recovery, detailing a new approach for developers to discharge environmental obligations through payment into a Nature Restoration Fund which then allows them to crack on with building,
    •  planning committees, proposing a national scheme of delegation to speed up the approval process and provide greater certainty to developers.
  • Set up an independent New Towns Taskforce, as part of a long-term vision to create largescale communities of at least 10,000 new homes each.  
  • Awarded £68 million to 54 local councils to unlock housing on brownfield sites.   
  • Awarded £47 million to seven councils to unlock homes stalled by nutrient neutrality rules. 
  • Extended the existing Home Building Fund for this year providing up to £700 million of vital support to SME housebuilders, supporting the delivery of around 12,000 additional homes.
  • Confirmed that government investment in housing will increase to £5 billion for this year, including an extra £500 million in new funding for the Affordable Homes Programme to deliver tens of thousands of new affordable and social homes across the country.

Chancellor unveils plan to ‘turbocharge’ investment across UK

A package of investment reforms to spur regional growth across the country is being announced to attract investment in all corners of the UK

Ahead of her speech next week on economic growth, the Chancellor has announced a new approach across the National Wealth Fund (NWF) and the Office for Investment (OfI), which will work with local leaders across the UK to support places to build pipelines of incoming investment and projects linked to regional growth priorities.

This new approach will put local knowledge and leadership at the forefront, with tailored strategies for each region, ensuring investment matches local needs and drives sustainable growth. Putting the government’s Plan for Change into action, the goal is to harness growth everywhere to rebuild Britain and usher in a decade of national renewal.

The National Wealth Fund will also trial Strategic Partnerships starting in Greater Manchester, West Yorkshire, West Midlands, and Glasgow City Region. These partnerships will provide enhanced, hands-on support with tailored commercial and financial advice to help regions develop and secure long-term investment opportunities.

This initiative will play a key role in unlocking investment across sectors such as technology, manufacturing, and green energy, helping to fuel the next wave of economic growth.

This builds on the positive impact the NWF has already had in supporting regional growth. In the last six months, the NWF has created 8,600 jobs and unlocked nearly £1.6 billion in private investment across various sectors, including green technologies, digital infrastructure, and manufacturing.

The news comes the same day as Regional Mayors are set to meet with the Deputy Prime Minister and other ministers from MHCLG, HMT, and DWP in Rotherham to discuss key regional priorities and how government can further support them to achieve their growth ambitions. This meeting will inform the government’s ongoing efforts to align national and local growth strategies and unlock investment opportunities in each region.

On top of this, OfI is working closely with local leaders and industry to turn regional growth plans into commercially attractive investment opportunities. Starting with Liverpool City Region and North East Combined Authorities, the OfI will pilot an approach that connects regions to central government and industry expertise to support them in unlocking private investment.

These initiatives will test how government can work in partnership with regions to see where investment can play a meaningful role in driving growth, which is the best way to improve living standards and put more money in working people’s pockets.

Launching this initiative in Scotland comes in recognition of the nation’s potential to drive forward ambitious projects in support of this government’s growth and clean energy missions.

The government is committed to working in close partnership with the devolved governments through the National Wealth Fund to maximise investment opportunities in Scotland’s cities to deliver growth.

Our cities have huge potential to drive improved living standards and spread opportunities across their wider regions. Bringing the productivity of major cities like Manchester, Birmingham, Leeds, and Glasgow to the national average would deliver an extra £33 billion in additional Gross Value Added (GVA) annually, contributing significantly to the government’s Plan for Change economic growth objectives.

The action today comes as the Chancellor returns from Davos, where she has been making the case for investment in the whole of the U.K. Since entering office, the government has been focused on restoring economic stability, which is the foundation of growth, to give businesses the confidence to invest and expand in the UK.

Securing investment is also central to the government’s mission to deliver economic growth which will create jobs, improve living standards, and make communities and families across the country better off as part of our Plan for Change.

Chancellor of the Exchequer, Rachel Reeves MP said: “At Davos I’ve been telling some of the world’s biggest investors that the U.K. is a safe bet for their investments, whether that’s in London or Leeds.

“And in our mission for growth, it’s critical that we are growing every region’s local economy, that’s why we are doing things differently.

“Those with local knowledge and skin in the game are best placed to know what their area needs, and our transformative reforms will put local leaders at the centre of a network that will connect them with investment opportunities, bringing wealth and jobs to their communities.”

Deputy Prime Minister, Angela Rayner said: “Growth is at the top of this government’s agenda, and we want to see that growth in every region across the country. That means giving local leaders the powers they need to get their local economies moving, which is exactly what we are doing with our Devolution Priority Programme.

“Today I am meeting with England’s regional Mayors to talk about how to realise their communities’ huge potential for growth – because they know their areas best.”

Business and Trade Secretary, Jonathan Reynolds said: “The UK is one of the most connected places in the world to do business, and investors should be in no doubt that Britain is back on the global stage, helping attract investment into the most productive parts of the UK economy.

“Our forthcoming Industrial Strategy will supercharge eight key growth sectors in the UK economy, unleashing the full potential of our cities and regions and giving businesses the certainty they need as we lead the charge for the innovation and jobs of the future.”

Scottish Secretary, Ian Murray said: “It’s fantastic to see that Glasgow has been chosen as one of four areas where the UK Government will develop investment pipelines. The move will see us engage with local leaders and tap into their expertise to find out exactly where we can best put to use support from avenues like the National Wealth Fund and Office for Investment.

“Encouraging regional growth is key to our Plan for Change, to speed up investment in business and industry, creating jobs and opportunity right across the UK.

“The potential for growth in Scotland is phenomenal and we’ll explore every opportunity to maximise that growth, to put more money in people’s pockets and see living standards improved everywhere.”

Further action to drive regional growth will also include a review of the Green Book, the government guidance on value for money, and how it is being used across the public sector to provide objective, transparent advice on public investment across the country. This review will report back at the conclusion of the Spending Review this summer.

There will also be a new senior taskforce, chaired jointly by HMT and MHCLG permanent secretaries, who will work with the Greater Manchester Combined Authority to explore further devolution opportunities in skills, transport, and business support.

The government will expand this engagement to other Mayoral Authorities through senior official working groups, to explore how national government can work with local leaders to ensure they have the appropriate levers available to deliver their Local Growth Plans and unlock economic growth across England.

Mayors are already delivering transformative outcomes, such as Greater Manchester’s Adult Skills Fund, which has supported 17,000 residents in accessing new learning opportunities, and the Bee Network, which is integrating public transport across the region.

This follows the English Devolution White Paper, published at the end of last year, which set out an enhanced devolution framework to ensure strategic authorities have the powers and tools they need to meet local growth ambitions.

Tracy Brabin, Mayor of West Yorkshire said: “This government knows that the best way to achieve its growth mission is by working with mayors and backing our Local Growth Plans to boost the economy in all parts of the country.

“With the National Wealth Fund based here in the heart of the North, driving forward transformational investments in partnership with local leaders, we will deliver the well-paid jobs and the vibrant, well-connected places our communities need and deserve.”

Mayor of Greater Manchester, Andy Burnham said: “Greater Manchester is growing faster than the UK economy but we have got so much more to give to UK plc.

“The reforms announced today will help us to do just that and go much further and faster in support of the national growth mission.

“We particularly welcome the opportunity to work with Government to review the Green Book and how it is used to steer public investment, as the current approach is not working for the North of England.”

Richard Parker, Mayor of the West Midlands said: “This is a great show of faith by the Government in our regions to deliver the growth and high-quality jobs the country needs. The West Midlands is a hotbed of innovation and business talent ready to support the Government’s mission for growth.

“With the Government, I’m focused on delivering growth and with plans for a gigafactory, and three Investment Zones secured, we’re already making progress on creating thousands of new jobs. At the same time I am equipping our people with the skills to succeed in the industries of the future such as advance manufacturing, life sciences and green technology. 

“With this new Strategic Partnership, the West Midlands will be one of the best places to do business, with an economy that creates real opportunities and benefits everyone across our communities.”

Cllr Susan Aitken, leader of Glasgow City Council and chair of the Glasgow City Region Cabinet said: “This is welcome recognition of the Glasgow City Region’s role as Scotland’s metro region, a vital motor in delivering prosperity and with a track record of securing and delivering on investment.

“Cities and city regions are the vital engine rooms of local and national economic growth and Glasgow’s selection as one of the four strategic partnerships to work with Government on maximising investment opportunities will, I’m sure, contribute to our ambition to become the most innovative, resilient and inclusive regional economy in the UK.”

Ex-high street boss to ‘keep Britain working’

Review into business support for disabled and long-term sick

A new “Keep Britain Working” review has been launched today (Friday 24 January) to explore how to urgently support people with long-term illnesses or disabilities back into work, and to stay in work.

  • Independent review led by former John Lewis boss, Sir Charlie Mayfield, officially underway.
  • Review to investigate how government and businesses can work together to support ill and disabled people into work, boost living standards and grow the economy as part of Plan for Change.
  • Intervention comes as government is expected to publish major health and disability benefit reforms this Spring.

Former chairman of John Lewis Partnership, Sir Charlie Mayfield, will lead the Keep Britain Working Review to investigate the factors behind spiralling levels of inactivity, and how government and businesses can work together to turn this around, to get Britain working again. 

The review will be the first of its kind, and following the launch of the Get Britain Working White Paper, will be one part of the government’s Plan for Change to kickstart economic growth in partnership with businesses, drive up prosperity and raise living standards across the UK.

With over a third of working age people reporting a long-term health condition and around a quarter classed as disabled, the latter group being three times more likely to be not in work or looking for work, the scale of the challenge is stark.

Beginning today, the review will move at pace concluding in the Autumn, with Sir Charlie Mayfield meeting businesses and health and disability organisations across the country to identify the scale, trends, obstacles and opportunities for companies when recruiting and retaining ill and disabled people. 

This phase will conclude in Spring with a report based on the findings from his conversations with company bosses, employees who have been supported to stay in work, and organisations who help those out of work, to inform wider engagement. Recommendations to the government are expected later this year.

This will be part of the government’s plan to boost employment by breaking down barriers to opportunity and improving people’s living standards through work and life-changing support, building on the latest data this week showing real earnings have increased by 2.5% on the year.

Sir Charlie Mayfield, who was also Chair of the British Retail Consortium and Chair of the UK Commission for Employment and Skills, said: “Losing people from the workforce because of ill-health or disability is bad for many of the individuals, for the businesses employing them, and for the wider economy.

“It’s a growing problem for us all and it’s one that’s more likely to be resolved by business and government working together.

“I’m looking forward to engaging closely with businesses, government departments and the many organisations committed to improving our performance here.”

The review, which will identify measures to help ill and disabled people get into work and stay in work, comes ahead of significant reforms to health and disability benefits expected in the Spring. 

Work and Pensions Secretary, Rt Hon Liz Kendall MP, said: “Millions of people have been left without support to get into work and on at work, and completely held back from reaching their potential for far too long, and the record-high cost of long-term sickness benefits is evidence of that fact.

“That’s why I am pleased to have Sir Charlie leading this review, bringing a wealth of experience and helping us to get people into work, and most importantly keep them in work, so we can boost living standards and get our economy growing.”

Business and Trade Secretary, Rt Hon Jonathan Reynolds, said: “It isn’t right that too many businesses are missing out on the people they need, while those who want to work can’t because of long-term sickness. 

“Solving this problem is one of the greatest challenges facing the labour market, with years of poor support blocking those with great talent from helping drive our economy forward.

“The government is on the side of working people and is unashamedly pro-business. That’s why this review will be critical in getting businesses the people they need to unlock their full potential.”

Rain Newton-Smith, CEO of the CBI, said: “Lower rates of employment for people with long-term health conditions or disabilities is a tragic waste of potential that holds back economic growth and impacts on well-being. 

“It denies people the opportunity to improve their personal financial security through work and prevents businesses from using their valuable skills and experience to grow the economy. 

“Sir Charlie’s review is a welcome opportunity for business and government to co-design solutions that have a real impact.”

This business engagement is part of the Westminster government’s Get Britain Working White Paper which is currently progressing the biggest employment reforms in a generation so the UK can reach an ambitious 80% employment rate. 

As part of the plan, Jobcentre’s are to change their focus from monitoring and managing benefit claims to skills and careers, mental health support will be expanded to reduce waiting lists in areas with the highest levels of economic inactivity, and mayors will be empowered to join up local work, health and skills support to tackle the root causes of inactivity in their areas.

Homelessness crisis places ‘unsustainable pressure’ on local authorities’ crumbling finances, says Westminster committee

‘there seems to be no desire to move away from an unsatisfactory short-term system, leaving local authorities attempting to save a sinking ship with little more than a leaky bucket’

  • Families face long stretches in unsuitable accommodation and the prospect of being relocated.
  • Dire need for housing sector reform and increase in the availability of affordable housing.

Record homelessness levels are placing local authorities’ finances under unsustainable pressure. In a report published today, the Public Accounts Committee (PAC) warns of an overreliance on the use of temporary accommodation, due in part to a dwindling and increasingly costly housing stock.   

The PAC is calling for a clear strategy and stronger support for local authorities to address what has become a crisis situation.

Of the estimated £2.1bn spent by local authorities in 2023-24 on temporary accommodation, the report finds that a large proportion was used to meet the urgent need for immediate support, rather than the preventative measures so desperately needed.

Despite there being an overarching homelessness strategy for each of the devolved nations, England does not have one.

The report calls on Government to set out such a strategy, which should clearly outline how preventative measures will be incentivised. It also argues for an exemption from requirements on local connections or residency for all veterans, care leavers under 25 years, and victims of domestic abuse, as well as for competition between local authorities and the Home Office for temporary accommodation to be eliminated.

The report raises deep concerns around the number of families being housed outside their local area. This has risen to 39,000, a practice which alarmingly seems to be becoming increasingly common.

Equally alarming is the fact that 6,000 homeless families with children live in B&Bs, due to the lack of alternative accommodation. The report stresses the detrimental impact that living in this type of accommodation has on people’s lives; particularly children whose safety and wellbeing can be severely compromised as a result. Government should encourage better coordination between local authorities and set out how it will support them to reduce the use of B&Bs. 

With 45% of households facing a shortfall between the Local Housing Allowance (LHA) they receive and the rent they pay, the PAC warns the Government is not considering the impact on homelessness when setting LHA rates.

The decisions made by Government to determine LHA are seemingly subjective. This issue is exacerbated by the lack of affordable housing, on which Government seems frustratingly unable to provide detailed assurances.

Further, poor oversight of the sector and gaps in current regulations are allowing is allowing landlords to provide costly, sub-standard housing with little support, supervision or care.  The PAC urges Government to set out the logic behind LHA rates and details of the proposed new housing strategy along with strengthening its position to provide better oversight of the sector. 

Sir Geoffrey Clifton-Brown MP, Chair of the Committee, said: “My Committee is deeply concerned by the number of people currently being housed in sub-standard, overpriced and at times, wholly inappropriate accommodation, sometimes a long way from their previous home.

“A lack of affordable housing, a focus on short-term solutions and no clear strategy to tackle this issue have left us with thousands of families in deeply troubling circumstances.

“Worryingly there seems to be no desire to move away from an unsatisfactory short-term system, leaving local authorities attempting to save a sinking ship with a little more than a leaky bucket.

“Local authorities find themselves at breaking point as they haemorrhage funds to cover the rising costs of housing families in temporary accommodation.

“We are calling for an overarching strategy that addresses the need for better connectivity across Government departments to tackle the root causes of this crisis. Without one, we fear this will remain an issue into which money is simply poured, without effectively tackling the blight of homelessness.

“Government must learn from the lessons of the past to inform what they will do in the future.” 

Biggest fraud crackdown in a generation

Welfare fraudsters who cheated the taxpayer out of £7 billion last year could be banned from driving if they fail to reimburse the public and repay their debt

  • Benefit cheats to be stripped of driving licences under new plans in government’s biggest fraud crackdown in a generation
  • New Public Authorities (Fraud, Error & Recovery) Bill introduces measures to be tough on criminals and fairer to taxpayers.
  • The Bill alone is expected to save the Department £1.5 billion over the next five years, and forms part of wider government plans to save a total of £8.6 billion over 5 years in the biggest welfare fraud and error budget package in recent history, as part of Plan for Change

As part of new legislation set to be introduced in Parliament today to deliver the biggest fraud crackdown in a generation, benefit cheats could be disqualified from driving for periods of up to two years if they refuse all opportunities to repay the money they owe.

The Department or Work and Pensions (DWP) will be able to apply to the court with the justification to suspend fraudsters from driving, provided the debts is £1,000 or over and frequent requests to repay the debt have been ignored.

DWP’s serious organised crime authorised investigators are also expected to be handed powers to apply to a court for search warrants. It means that for the first time, they will be able to support Police and search premises and seize items such as computers and smartphones as evidence against fraudsters.

The Bill alone is expected to save the Department £1.5 billion over the next five years, and forms part of wider government plans to save a total of £4.3 billion in 2029/30 in the biggest welfare fraud and error budget package in recent history.

 The new legislation is being brought forward after the government inherited a broken welfare system, with fraud and error in the social security system currently costing the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money.

This Bill comes as the government seeks to bring forward measures to overhaul the health and disability welfare system as part of its Plan for Change, so it better supports people to enter and remain in work and to tackle the spiralling welfare bill – with new proposals for reforming the health and disability benefits system expected in the Spring.

This legislation also delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system. 

The measures in the Bill will be underpinned by a principle of fairness and proportionality – the priority is always to negotiate affordable and sustainable repayment plans, with these powers to be used as a last resort. 

Secretary of State for Work and Pensions, Liz Kendall, said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.

“This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.

“People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”

DWP will also have the power to recover money directly from bank accounts of those not on benefits or in PAYE employment who owe the Department and refuse to pay up, despite having the means to do so. The Bill will allow DWP to request bank statements to prove these debtors have sufficient funds to fairly repay what they owe. However, DWP will not have direct access to people’s bank accounts.

Modernising the approach to catching fraudsters, preventing overpayments and introducing new safeguards to further protect vulnerable customers means the DWP can keep pace with the sophisticated nature of fraud, while also ensuring law-abiding customers get the right benefits – preventing them from falling further into debt.

The Bill will also include safeguarding measures to protect vulnerable customers. Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers.

The government will also bring forward Codes of Practice which will be consulted on during the passage of the Bill to provide further assurance on the safe use of the powers, and we have a clearly defined scope and clear limitations for the use of all the powers including the right to appeal the decision.

The Cabinet Office’s Public Sector Fraud Authority will also be given more powers under the legislation being introduced in Parliament today.

A brand-new measure will see the time limit for civil claims against Covid fraud doubled from six to twelve years. This step change in the ability to fight fraud committed during the pandemic will give the Covid Corruption Commissioner and the Public Sector Fraud Authority more time to investigate complex cases and apply their new powers retrospectively – including the ability to raid properties and retrieve money from Covid fraudsters’ bank accounts.

Georgia Gould, Minister in the Cabinet Office, said: “During the pandemic, when people and businesses needed government support the most, some people stole public money for their own personal gain.

“This legislation gives the government tough new powers that can be used to investigate and recover money stolen from the public during covid and doubles the time we have to bring fraudsters to justice.”

Taken together, these measures show the government’s commitment to taking a responsible approach to public finances which is required for long-term economic growth, in order to deliver for working people up and down the country.

Additional Information

The new law will deliver on this government’s manifesto commitment to safeguard taxpayers’ money – ensuring every pound is spent wisely and effectively:  

  • New powers of search and seizure – so DWP can control investigations into criminal gangs defrauding the taxpayer 
  • Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. 
  • New requirements for banks and building societies to flag where there is an indication that there may be a breach of eligibility rules for benefits – preventing debts accruing 
  • All the powers will include strong safeguards to ensure they are only used appropriately and proportionately – including new inspection and reporting mechanisms. 
  • We have a clearly defined scope and clear limitations for the use of all the powers we are introducing, and our staff will be trained to the highest possible standards. 

The measures in this Bill will enable the PSFA to:

  • reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector.
  • better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers.
  • Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud 
  • improve the government’s ability to recover public money, through new debt recovery and enforcement powers. 
  • Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations.
  • improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations – building on lessons learned during COVID-19.

The PSFA will implement a ‘test and learn’ approach when utilising these powers, piloting different approaches and expertise to find the best way to tackle public sector fraud.

Ministers to ‘bang the drum for Britain’ at Davos gathering

  • Chancellor and Business Secretary at World Economic Forum’s Annual Meeting in Davos this week
  • Ministers will meet CEOs and investors to bang the drum for British business
  • UK delegation to tell global business leaders and investors that the time to invest in Britain is now
Impressions from the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland 18 January 2025. Copyright: World Economic Forum/Thibaut Bouvier

Ministers will be banging the drum for Britain at Davos this week, with the most visible UK Government presence in recent years pitching the UK’s investment offer to top business chiefs.

Chancellor Rachel Reeves and Business and Trade Secretary Jonathan Reynolds will meet with leading members of the global business community to encourage them to put their money into the UK and back British business.

They will highlight the UK’s political and economic stability, making us an attractive place to do business. This is backed by an unashamedly pro-business government that is slashing burdensome regulation, launching ambitious planning reform, and leveraging our trade relationships with Europe, America, Asia, the Gulf and beyond to help businesses use Britain as their base to connect with exciting global markets.

The visit will continue to deliver on the government’s number one mission to grow the economy and raise living standards for working people, coming days after the IMF revised their growth forecast for the UK economy upwards for next year.

The government’s Davos attendance also follows a survey from consultancy firm PwC, who on Monday ranked the UK as the second most investible location globally after the U.S. – the first time the UK has secured this position in the 28-year history of the survey.

Impressions from the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland 18 January 2025. Copyright: World Economic Forum/Thibaut Bouvier

Chancellor of the Exchequer Rachel Reeves said: “Business leaders and investors need to know that the UK is where their businesses will flourish, so I’m meeting them face to face in Davos to make our case.

“We are one of the most exciting places in the world for them to put their money, with a history of innovation, a skilled workforce and a stable government that backs business. I will not rest until the UK economy is growing and this government is delivering on its Plan for Change, so we can put more money in people’s pockets.

“The time to invest in Britain is now.”

The Chancellor will be on the ground at Davos on Wednesday 22 and Thursday 23 January. She and the Business Secretary will speak at a Bloomberg event on Wednesday morning.

She will also speak at the Country Strategic Dialogue alongside Ruth Porat, president and CIO of Google and Julie Sweet, CEO of Accenture, to over 80 global CEOs and business leaders from across tech, financial services and green industries. In the evening the Chancellor will attend the Global Goals dinner.

On Thursday, the Chancellor will take part in a fireside chat with the Wall Street Journal to an audience of business leaders, following which she will speak at an economy roundtable with fellow finance ministers on global issues. The Chancellor will also speak at a lunch hosted by the CBI to an audience of 50 senior executives from UK-based businesses and international investors.

Meetings are planned with a wide range of CEOs and business leaders, including Jamie Dimon, CEO of JP Morgan, Jo Taylor, president of the Ontario Teachers’ Pension Plan, and David Solomon, CEO of Goldman Sachs – amongst others.

The Business and Trade Secretary will have bilateral meetings with many of his international trade counterparts, including Robert Habeck, Vice-Chancellor of Germany, Maros Sefcovic, Executive Vice-President of the European Commission and WTO Director-General Dr Ngozi Okonjo-Iweala.

He will also meet with a range of businesses and investors, including AON; Anglo American; AWS; Carlsberg; Capgemini; Honeywell; RWE; and SABIC.

Impressions from the World Economic Forum Annual Meeting 2025 in Davos-Klosters, Switzerland 18 January 2025. Copyright: World Economic Forum/Thibaut Bouvier

Business and Trade Secretary Jonathan Reynolds said: “Britain is back in business under this government, and our Plan for Change is already delivering for working people.

“The UK is the most connected market on earth, and we will continue to be the home for innovative businesses looking to face outwards to the world. We’ve lifted barriers to investment and secured £63 billion at the International Investment Summit, creating thousands of jobs in the process.

“These investments promise better wages, stronger communities, and better services and I’ll be at Davos to build on this momentum.”

The UK Government’s presence at Davos will also be the most visible in years, with print and out of home marketing promoting the UK’s connectivity, openness and opportunity to coincide with the summit.

Chancellor calls on watchdog bosses to tear down regulatory barriers that hold back growth

  • Chancellor pledges to work with regulators to develop ambitious reforms.    
  • Today’s summit marks the first in a series of meetings with the regulators ahead of publishing action plan.
  • Reeves welcomes initial ideas from regulators to boost innovation and investment, but pushes for more ambition.

The CEOs of key regulators were urged to ‘tear down regulatory barriers’ that hold back economic growth at a summit in the Treasury yesterday.    

In a meeting hosted by the Chancellor of the Exchequer and Secretary of State for Business and Trade, chief executives at watchdogs covering sectors including railways, water, energy, aviation were told that economic growth is the absolute top priority for the government, as part of the Plan for Change for put more money in people’s pockets.    

The meeting was the first in a series following a joint letter from the Prime Minister, Chancellor and Secretary of State for Business and Trade in December, in which the government asked the regulators to each propose five reforms to support growth in the coming year. Over the coming weeks, 17 regulators will be called in to have their proposals scrutinised as the government leaves no stone unturned to deliver growth.    

At yesterday’s meeting, the Chancellor told the regulators that they would have a key role to play in delivering growth by helping to create a regulatory environment that unlocks innovation and investment, supports businesses to thrive and allows much needed infrastructure to be built.    

The regulators agreed with the Chancellor that they have a role to play in driving growth but highlighted that there are some barriers, including the need to balance growth with their other legal responsibilities.    

The Chancellor noted that the regulators’ responsibilities had accumulated over time and said she was open to hearing about where this was preventing them from taking clear, consistent and balance actions to drive growth.

She emphasised the importance of leadership to deliver a mindset shift on regulation, calling on each of the CEOs in the room to institute cultural change based on helping to deliver growth instead of excessively focusing on risk. 

The Chancellor also promised that the government would work with them to develop and deliver important reforms by playing its part, including by making time for legislation where it is needed or using the upcoming Spending Review, and noted the Prime Minister’s promise to rip up regulation that blocks investment to make the regulatory regime fit for the modern age.    

The Chancellor was clear that while some of the proposals already put forward were promising, she wanted to see greater ambition and urgency to drive economic growth. She emphasised that fresh ideas were needed and noted that the Government will also ask industry to come forward with their own ideas to deliver a more growth supportive regulatory environment.    

She highlighted some specific and promising ideas she had heard from the regulators today. These included: driving greater responsiveness to business demands, particularly on planning and license applications; grant funding administered by Ofwat to drive innovation in the water sector supply chain; energy tariff reform; increasing access to rail operator efficiency data and innovative drone solutions which would unlock growth in the public sector.   

The regulators agreed to continue working with the government on their proposals reform ahead of publishing an action plan in Spring, and welcomed today’s strategic discussion. 

The Chancellor finished the meeting by reiterating that leadership matters, noting that every regulator would have to play their part to improve living standards across the country.    

Following the meeting, Chancellor of the Exchequer Rachel Reeves said: “There’s no substitute for growth. It’s the only way to create more jobs and put more money in people’s pockets, which is why it’s at the heart of our Plan for Change.     

“Every regulator, no matter what sector, has a part to play by tearing down the regulatory barriers that hold back growth. I want to see this mission woven into the very fabric of our regulators through a cultural shift from excessively focusing on risk to helping drive growth.”

£60 million boost for creative industries to turbocharge growth

Hundreds of creative businesses and projects across the UK are to receive government funding to help them grow as part of a major boost to the economy – marking the first step of the Government’s Sector Plan for the creative industries.

  • Culture Secretary hosts major economic growth summit in Gateshead for creative industries and announces key priority areas
  • Marks first step towards delivering Sector Plan, as part of the government’s modern Industrial Strategy
  • £60 million package of support to drive growth, including £40 million investment for start-up video game studios, British music and film exports and creative businesses outside of London
  • British Business Bank will increase its support for the sector to help the UK’s Creative Industries realise their full growth potential, while government also launches Soft Power Council to drive investment

Hundreds of creative businesses and projects across the UK are to receive government funding to help them grow as part of a major boost to the economy – marking the first step of the Government’s Sector Plan for the creative industries.

Culture Secretary Lisa Nandy is bringing together more than 250 creative businesses and cultural leaders at the The Glasshouse International Centre for Music, in Gateshead today. As part of its modern Industrial Strategy, she will set out how the Government will work together with the sector to increase growth and investment, starting with a £60 million package of government support.

This includes investments for start-up video game studios, grassroots music venues and creative businesses to boost British music and film exports, which will facilitate investment and innovation in communities, in turn supporting businesses and employment. 

Growth is the number one mission of the Government’s Plan for Change, so we can put more money in people’s pockets. Today’s summit is the first step towards delivering the Creative Industry Sector Plan, as part of the UK’s modern Industrial Strategy. It will set out the enormous growth potential of the sector and where the biggest opportunities are at home and in new markets abroad.

It will identify what key barriers are currently holding back the sector’s growth potential, and government and industry’s shared commitment to overcoming them, laying the groundwork for the publication of the full Creative Industries Sector Plan in the spring. 

At the summit, the Culture Secretary will also announce that the priority regions for Creative Industries are the  North East, Greater Manchester, Liverpool City Region, West Yorkshire, West Midlands, Greater London, West of England, South Wales, Glasgow, Edinburgh-Dundee corridor, and Belfast. 

Alongside this, the Government will provide additional funding, to be agreed as part of the Spending Review, to six Mayoral Combined Authorities (North East, Greater Manchester, Liverpool City Region, West Yorkshire, West Midlands, West of England) . This will maximise the strengths of these areas to deliver growth and builds upon progress to provide an attractive business environment and encourage strong, continued investment in the creative industries for years to come.

As the Government ramps up support for the sector, the Culture Secretary will also announce that we will bring forward changes so that shorter apprenticeships are available from August 2025, recognising the particular needs of the creative industries, as one of our first steps towards a more flexible Growth and Skills Levy.
The government is working with industry, including through a Creative Industries Taskforce chaired by Baroness Shriti Vadera and Sir Peter Bazalgette, on the sector plan and there will be more detail and policy announcements made in the months ahead. 

Culture Secretary Lisa Nandy said: “From film and fashion to music and advertising, our creative industries are truly world-class and play a critical role in helping us deliver on this Government’s mission to drive economic growth in all parts of the UK.

“Our £60 million funding boost will support creative and cultural organisations across the UK to turbocharge growth by transforming local venues, creating jobs, supporting businesses and spreading opportunity across the country.

“But this is by no means the limit of our ambitions, which is why the creative industries are at the heart of the forthcoming Industrial Strategy and will continue to play a key part in this Government’s Plan for Change.”

The Government will create the most attractive business environment to encourage strong, continued investment in the creative industries for years to come. The Government will design the sector plan with business, who have set out the barriers to growth, including skills and access to finance.

The Government will design the sector plan with business, who have set out the barriers to growth, including skills and access to finance. As a result the Government is also making a significant signal of intent ahead of the Spending Review by announcing positive changes to the way the British Business Bank, UK Research and Innovation and skills policy will prioritise the Creative Industries.

The British Business Bank, which supports £17.4 billion of finance to over 64,000 smaller businesses, has committed to increase its support for creative businesses to access the finance they need to grow. 

Chancellor of the Exchequer Rachel Reeves said: “Our number one mission is to grow the economy and our creative industries are a British success story with a big part to play.

Building on our plans to boost our AI sector, this is another step as we go further and faster to deliver growth so we can put more money in people’s pockets.”

Today’s summit comes as the Culture Secretary and Foreign Secretary David Lammy also confirmed the membership of a new Soft Power Council. The council will act as an advisory board to the UK Government and will bring together soft power and foreign policy experts to champion the UK abroad, and drive investment and growth at home.

Members include former rower and chair of UK Sport Katherine Grainger, former athlete and television presenter Baroness Grey-Thompson and V&A director Tristram Hunt.

Foreign Secretary David Lammy said: “Soft power is fundamental to the UK’s impact and reputation around the world.  I am often struck by the enormous love and respect which our music, sport and educational institutions generate on every continent.

“But we have not taken a sufficiently strategic approach to these huge assets as a country. Harnessing soft power effectively can help to build relationships, deepen trust, enhance our security and drive economic growth. 

“That is why I have created the Soft Power Council to channel British expertise as we look to re-imagine Britain’s role on the world stage, reinvigorate alliances and forge new partnerships.”

Joint investment in Scottish City Deals now more than £3 billion

UK Government investment in the City Region and Growth Deal programme in Scotland is now £1.5 billion – meaning more than £3 billion in total

The Secretary of State for Scotland, Ian Murray, has today [15 January] confirmed that, following the Chancellor’s Autumn Budget, the total UK Government investment specifically on City Region and Growth Deals in Scotland has now reached £1.5 billion.

The Scottish Government is also investing £1.6 billion in the City Region and Growth Deals programme. That means that total investment now tops £3 billion in total.

Of the UK Government contribution, £527 million was part of a nearly £1.4 billion package of local growth investment signed off by the Chancellor in her Autumn Budget. That means that the UK Government is also, separately, investing £840 million in some two dozen local growth projects and programmes across Scotland. Driving growth and improving living standards across the UK is a key part of our Plan for Change, and these investments are an important part of that.

The Scottish Secretary gave evidence to the Scottish Parliament’s Economy and Fair Work Committee yesterday [15 January]. He is the first Cabinet Minister since the General Election to appear before a Holyrood committee.

Mr Murray was invited by the Committee to give evidence on the UK Government’s involvement in the City Region and Growth Deals programme, which is delivered jointly in Scotland with the Scottish Government.

Mr Murray said: “I am delighted to confirm that UK Government investment in City Region and Growth Deals alone in Scotland is now £1.5 billion. This is our Plan for Change in action, and this funding will drive economic growth and improve living standards right across Scotland.

“I am very pleased to be the first minister from this administration to give evidence at Holyrood. We have changed the way we do business and work with the Scottish Government and the Scottish Parliament.

“We have reset those relationships to ensure we can work together to deliver for people in Scotland. That means genuine partnership working with the Scottish Government, and the City Region and Growth Deals programme, delivered jointly across Scotland, is an excellent example of that.”

City Region and Growth Deals are packages of funding agreed between the Scottish Government, UK Government and local authority partners.

At the Autumn Budget, the Chancellor confirmed additional funding for the Falkirk and Grangemouth Growth Deal to support Grangemouth refinery workers and their communities, confirmed funding for a number of projects not yet in delivery, and gave the go-ahead for the signing of the Argyll and Bute Growth Deal.

That means that we will shortly have City Region and Growth Deals covering every part of Scotland, with UK Government investment in them specifically, since 2014, totalling more than £1.5 billion.

UK and Ukraine to sign ‘landmark 100 Year Partnership’

The UK and Ukraine will sign a historic partnership, as the Prime Minister travels to the country to meet President Zelenskyy

  • Treaty will bolster military collaboration on maritime security through a new framework to strengthen Baltic Sea, Black Sea, and Azov Sea security and deter ongoing Russian aggression
  • Will bring together experts to advance scientific and technology partnerships, in areas such as healthcare and disease, agri-tech, space and drones, and build lifelong friendships through classroom projects
  • New UK-built Grain Verification Scheme will also be launched to track stolen grain from occupied Ukrainian territories

The UK and Ukraine will sign a historic partnership, as the Prime Minister travels to the country to meet President Zelenskyy.

The unbreakable bonds between the UK and Ukraine will be formalised through the landmark new 100 Year Partnership between the two countries, broadening and deepening the relationship across defence and non-military areas and enabling closer community links.

From working together on the world stage to breaking down barriers to trade and growth and nurturing cultural links, the mutually beneficial partnership will see the UK and Ukraine advocate for each other to renew, rebuild and reform for generations to come.

The partnership underpins the Prime Minister’s steadfast leadership on Ukraine as his government continues to provide support. Spanning nine key pillars, it will harness the innovation, strength and resilience that Ukraine has shown in its defence against Russia’s illegal and barbaric invasion; and foster it to support long-term security and growth for both our countries. The Treaty and political declaration, which form the 100 Year Partnership, will be laid in Parliament in the coming weeks.

It is expected to bolster military collaboration on maritime security through a new framework to strengthen Baltic Sea, Black Sea, and Azov Sea security and deter ongoing Russian aggression, bring together experts to advance scientific and technology partnerships, in areas such as healthcare and disease, agri-tech, space and drones, and build lifelong friendships through classroom projects.

It also cements the UK as a preferred partner for Ukraine’s energy sector, critical minerals strategy and green steel production.

The 100 Year Partnership is a major step in supporting Ukraine’s long-term security – ensuring they are never again vulnerable to the kind of brutality inflicted on it by Russia – and committing to stand shoulder-to-shoulder with a sovereign Ukraine for the next century.

Ukraine has a highly trained military, and a thriving technology sector that is rapidly designing and deploying state of the art battle-ready equipment: a security partnership with Ukraine will make Britain stronger. 

To mark the signing of the partnership today, the Prime Minister is expected to announce new UK support for Ukraine from lethal aid to economic resilience.

Prime Minister Keir Starmer said: “Putin’s ambition to wrench Ukraine away from its closest partners has been a monumental strategic failure. Instead, we are closer than ever, and this partnership will take that friendship to the next level.

“This is not just about the here and now, it is also about an investment in our two countries for the next century, bringing together technology development, scientific advances and cultural exchanges, and harnessing the phenomenal innovation shown by Ukraine in recent years for generations to come.

“The power of our long-term friendships cannot be underestimated. Supporting Ukraine to defend itself from Russia’s barbaric invasion and rebuild a prosperous, sovereign future, is vital to this government’s foundation of security and our Plan for Change.

“Through this partnership, we are creating a strong economy that works for the British people, a safe country that protects our interests at home and abroad, and a prosperous society.”

The Prime Minister will join a Ukrainian class dialling into a primary school in Liverpool today, who will be joined by the Education Secretary, Bridget Phillipson. He will hear from the next generation about how the partnership will deliver brighter futures for children in both countries, fostering cultural exchanges and learning for youngsters.

100 schools in the UK and Ukraine will be partnered over the coming months as part of a two-way programme built around reading for pleasure. Through sharing stories from their own cultures, they will explore the power of reading to overcome adversity – building links between the countries for generations to come.

The Prime Minister is also expected to see firsthand how UK aid is supporting Ukrainians living under bombardment through a visit to a Ukrainian hospital. He will meet patients and doctors and hear how £100m of UK humanitarian funding is supporting needs across Ukraine and specialist medical care for burn victims, including those maimed by Russian missiles raining down on neighbourhoods.

The hospital is being supported by specialist NHS doctors, who are upskilling Ukrainian medical teams and providing lifesaving opinions on treatment for severely injured patients, both virtually and through short deployments to the country. Many admitted to the hospital have burns to between 30% and 40% of their body surface.

The Prime Minister will also announce £40m for a new economic recovery programme to unlock hundreds of millions of pounds worth of private lending to bolster the growth and economic resilience of small and medium businesses in Ukraine, which form the backbone of the country’s economy.

The programme will create opportunities for UK companies by supporting key growth sectors in Ukraine, opening up enhanced trade and investment opportunities with one of our closest allies. The funding will be targeted at businesses supporting the green economy, and marginalised groups including women and veterans.

It is hoped over the long term, the programme, called TIGER (Triggering Investment Growth and Economic Resilience), will reduce reliance in Ukrainian communities on humanitarian support and help build economic resilience.

And as part of the partnership, a new Grain Verification Scheme will also be launched to track stolen grain from occupied Ukrainian territories. The UK developed the new scheme following an ask from Ukraine to the G7 to help trace snatched grain from Ukraine fields under Russian control, which is then relabelled and sold on.

Using cutting edge science to help determine where grain has been grown and harvested, the UK has developed a database to support Ukraine’s efforts to trace and stop theft of grain from occupied regions.

Ukraine, a country which remains a major supplier of agricultural produce, is crucial for global food security. The database will be handed over to Ukraine from the Environment Secretary in the coming weeks.

Today’s announcement builds on the £12.8 billion package of support the UK has given Ukraine, including £7.8bn of military assistance, a commitment for £3bn in military aid until as long as it takes, and ongoing energy infrastructure support to help hospitals and community facilities provide light and warmth to innocent civilians impacted by Putin’s invasion.

The UK and Ukraine will use an annual high-level Strategic Dialogue to ensure progress on the partnership for decades to come.