Tag: UK Government

Financial Services Bill to ‘unlock growth and investment’ across the UK

Legislation to enhance the competitiveness of UK financial services and unlock growth and investment across the UK was introduced to Parliament yesterday.

The Financial Services and Markets Bill repeals hundreds of pieces of EU retained law to enable a coherent, agile and internationally respected regime that works in the interests of the British people.

Consumers will be protected through legislation safeguarding access to cash for generations to come and enabling the Payment Systems Regulator to direct banks to reimburse victims of Authorised Push Payment fraud.

The Bill will implement the government’s vision for the sector that is open, green, technologically advanced and globally competitive – while maintaining high levels of consumer protection.

Chancellor of the Exchequer, Nadhim Zahawi said: “Today is a landmark day for financial services in the UK.

“Through the introduction of this Bill, we are repealing hundreds of pieces of burdensome EU regulations and seizing on the benefits of Brexit to ensure the financial sector works in the interests of British people and businesses.”

The Bill implements the outcomes of the Future Regulatory Framework Review, giving the financial regulators greater responsibility for setting the requirements for UK financial services, and for the first time, a new secondary objective to promote the growth and competitiveness of the UK economy including the financial services sector.

This will complement the regulators’ existing objectives of ensuring the safety and soundness of firms, protecting and enhancing the integrity of the UK financial system, promoting competition in the interests of consumers, and ensuring that consumers receive an appropriate degree of protection.

The Bill also includes enhanced mechanisms for engagement with stakeholders and accountability, scrutiny and oversight of the regulators by Parliament and the Treasury. This includes a new ‘rule review’ power which will enable the government to direct the regulators to review their rules where it is in the public interest.

To maintain the UK’s position as an international, open and competitive financial centre, the Bill will reform EU-derived legislation governing our capital markets, ensuring that our rulebook is fair, outcomes based and maintains high regulatory standards.

This includes removing the share trading obligation and double volume cap from MiFID II, which restrict how and where firms can execute trades, and granting the FCA new powers to enhance the transparency and effective function of markets.

The Bill will also give new powers to the government and regulators to better enable them to implement Mutual Recognition Agreements – which are agreements between two trading partners, designed to remove technical and regulatory barriers to trade.

To ensure the UK remains at the forefront of new technologies and innovations, the Bill will enable certain types of stablecoins to be regulated as a form of payment in the UK.

In fostering these new innovations, the Bill will also enable the creation of Financial Markets Infrastructure Sandboxes – allowing firms to test the use of new technologies and practices in financial markets, increasing efficiency, transparency and resilience of new products.

As part of plans to ensure consumers are protected, the legislation includes measures that will safeguard access to cash for generations to come; powers to enable the Payments Systems Regulator to direct banks to reimburse victims of APP fraud; and establishes a new regulatory pathway for firms to be able to approve financial promotions, ensuring they better reflect FCA rules which state that promotions should be fair, clear, and not misleading.

As part of this approach, the government will ensure greater financial inclusion through powers enabling credit unions, which provide low-interest forms of credit, to offer a wider range of products to their members.

Amanda Blanc, Chief Executive Officer, Aviva said: “This Bill will bring much needed reform. 

“We want to move fast to a new regulatory framework for financial services and unlock the potential for greater investment in the UK.”

David Duffy, Group Chief Executive Officer, Virgin Money plc said: “Virgin Money welcomes the vision that the Chancellor set out last night to create a more open, green, competitive and technologically advanced sector.

“The new Financial Services and Markets Bill will bring about significant change to our industry, and we look forward to working in partnership with the Government as it delivers on its ambition to create one the most dynamic financial centres in the world.”

Chris Cummings, Chief Executive, the Investment Association said: “The Chancellor’s commitment to ensure the UK sets the standard for financial services globally is good news for savers and investors.

“We welcome the government’s aim to deliver new economic growth through harnessing innovation and ensuring the UK remains the most inclusive, open and transparent place to do business in the world.”

David Postings, Chief Executive of UK Finance, said: “The Chancellor’s vision in his Mansion House speech is for the UK to have a strong and internationally competitive banking and finance sector, which we strongly welcome.

“A successful financial services sector is critical for achieving economic growth and benefits the whole country – it is one of our most important industries, delivering jobs, investment and growth across every region.

“To ensure the sector continues to be successful, alongside maintaining the pace of reform, there needs to be a keen focus on international competitiveness from the next government.”

New consultation on civil penalties to tackle illegal migration

To help tackle illegal migration, the UK government is proposing tougher penalties for hauliers and vehicle drivers found carrying clandestine migrants

The UK Government has launched an industry consultation on proposals for tougher penalties to tackle illegal migration, including increasing the maximum penalty for hauliers and vehicle drivers who are found carrying a clandestine entrant from £2,000.

As part of the continued fight against illegal migration and the criminal gangs behind it, changes to the existing clandestine entrant civil penalties scheme will be made through the Nationality and Borders Act.

These include new civil penalties for hauliers and vehicle drivers who fail to adequately secure their vehicle and conduct proper checks, regardless of whether a clandestine entrant is found, as part of efforts to prevent dangerous journeys which risk serious injury or even death.

Since 2020, the number of clandestine entrants coming to the UK via HGV and goods vehicles has continued to increase year on year. The government is determined to stop this, including via these refreshed penalties for hauliers and vehicle drivers who leave themselves vulnerable to exploitation.

Ahead of implementation, we are seeking the views of vehicle drivers, companies and other interested parties on all these new measures.

The consultation with the industry will run for 8 weeks and will close on 12 September 2022.

Alongside the consultation, the Home Office will be running a series of engagement events to explore these issues in more detail.

Parliamentary Under Secretary of State Simon Baynes MP said: “We are determined to do all we can to prevent illegal entry into the UK.

“Criminal gangs who risk the lives of desperate people for profit are taking advantage of those whose vehicles travel in and out of the country.

“Far too many vehicles are currently not adequately secured, and we will seek to increase penalties on those who are negligent and prosecute those who are complicit.

“This consultation is the next vital step in achieving this, and we look forward to working with the haulage industry and other interested parties to ensure that they are aware of the necessary requirements.”

The recently enacted Nationality and Borders Act is part of the UK government’s New Plan for Immigration to make it fairer for those in genuine need, deter illegal entry into the UK, break the business model of people-smuggling networks and remove those from the UK with no right to be here.

Another one bites the dust …

Tugendhat eliminated from Tory leadership contest

TOM Tugenhadt was the latest candidate to be eliminated from the Conservative Party leadership contest when results of yesterday’s ballot was announced last night.

FOUR candidates now go through to the next round of voting. They are:

KEMI BADENOCH (58)

PENNY MORDAUNT (82)

RISHI SUNAK (115)

LIZ TRUSS (71)

The next round of voting takes place today – we’ll know the result at 3pm – and the shortlist will be reduced to two candidates before parliament breaks up on Thursday. Tory Party members will then choose between these final two candidates in a ballot that will take place over the summer recess.

The winner – and the UK’s next Prime Minister – will be announced on 5 September.

3pm UPDATE

KEMI Badenoch is the latest candidate to be eliminated following today’s vote. Exactly where Ms Badenoch’s votes go now will be crucial in determining which two of the final three candidates will fight it out for the votes of Tory party members over the summer to become our next Prime Minister.

UK donates 1 million more doses of Oxford-AstraZeneca vaccine to Bangladesh

Bilateral vaccine donation will expand Bangladesh’s COVID-19 vaccination campaign and further strengthen Brit Bangla Bondhon between the UK and Bangladesh.

The UK bilaterally donated 1 million doses of the Oxford-AstraZeneca vaccine to Bangladesh. The vaccine consignment arrived in Bangladesh on 23 February 2022. This bilateral donation from the UK will reinforce Bangladesh’s fight against the coronavirus pandemic and the country’s economic recovery.

Prior to this, the UK donated over 4 million doses of the AstraZeneca vaccine to Bangladesh in December 2021 through COVAX facilities.

While welcoming the second consignment of vaccines donation from the UK, the British High Commissioner HE Robert Chatterton Dickson said: “We welcome the arrival of 1 million doses of the AstraZeneca vaccine from the UK to Bangladesh. This bilateral donation adds to the 4 million doses that the UK donated through COVAX last year.

“This support from the UK takes us one step ahead to defeat the pandemic and further strengthens our commitment to stand with the people of Bangladesh to recover faster and build a healthier and prosperous future.”

Complementing the vaccine donations, the UK’s Foreign Commonwealth and Development Office (FCDO), through its delivery partners, created an enabling environment for the Government of Bangladesh to accelerate and expand the vaccination program as well as reduce the transmission of the infection especially among the low-income people.

This includes support for on-line vaccine registration for the disadvantaged, raising awareness, additional healthcare provider and technician support, training of health workers including vaccinators, and transporting vaccines to the districts as well as to the schools across the country.

Since the pandemic started, the UK government has reprioritised more than £55.9 million to fund Bangladesh’s National Preparedness and Response Plan to tackle COVID-19 including support for Rohingya refugees and the host communities.

The UK has been at the forefront of the global response to COVID-19. Last year at the G7, the UK committed to donate 100 million doses by June 2022. 80% of those UK doses will be distributed through the COVAX facility. Earlier, the UK kick-started efforts to establish COVAX facility in 2020, providing a total of £548 million to fund vaccines for lower income countries.

Children and young people should not be able to buy ‘loot boxes’ in video games without parental consent

  • Government’s call for evidence has unveiled a link between loot boxes and gambling harms, as well as wider mental health, financial and problem-gaming harms
  • Government calls on games companies to step up and improve protections for children as well as players of all ages from the risk of harm

Video games companies and platforms must do more to make sure children can not make in-game purchases – known as ‘loot boxes’ – without their parents’ consent, Culture Secretary Nadine Dorries said today.

Loot boxes are a type of in-game purchase in some video games. Players can purchase a loot box with real money to receive random items, including “power-ups” to help a player compete better in the game and cosmetic items, such as virtual clothing.

The call for evidence on loot boxes, launched by the Department for Digital, Culture, Media and Sport in 2020, found that players who have purchased loot boxes may be more likely to experience gambling, mental health, financial and problem gaming-related harms. The risk may also be higher for children and young people.

To protect players, the Government is calling for the purchase of loot boxes to be made unavailable to children and young people unless they are approved by a parent or guardian.

Some games platforms, such as Xbox, have already taken steps to improve protections, such as including options that require parental permission for under-18s to spend money within games.

The Government wants to build on this with strong protections for children across the entire games industry and will not hesitate to consider legislation if companies do not bring in sufficient measures to keep players safe.

Culture Secretary Nadine Dorries said: “We want to stop children going on spending sprees online without parental consent, spurred on by in-game purchases like loot-boxes.

“Games companies and platforms need to do more to ensure that controls and age-restrictions are applied so that players are protected from the risk of gambling harms. Children should be free to enjoy gaming safely, whilst giving parents and guardians the peace of mind they need.”

Games companies and platforms should provide spending controls and transparent information to all players. Protections should support the minority of players who spend a disproportionate amount of money on loot boxes, and who may be at a greater risk of harm.

A new working group, convened by DCMS, will bring together games companies, platforms and regulatory bodies to develop industry-led measures to protect players and reduce the risk of harm.  This will include measures such as parental controls, and making sure transparent, accessible information is available to all players.

The call for evidence also found a need for better evidence to improve understanding of the positive and negative impacts of video games. The Government will launch a Video Games Research Framework to support this.

The UK has a world class video games industry which contributed £2.9 billion to the economy in 2019, growing hugely from £400 million in 2010. As the sector continues to innovate the Government is committed to supporting its growth, whilst also ensuring games can be enjoyed safely.

Dr Jo Twist OBE, Chief Executive Officer, Ukie said: “As a responsible industry, we have committed to exploring additional ways to support players and parents to build on our existing work developing and raising awareness of parental controls.

“We look forward to engaging closely with the Government and other organisations in the working group and on the Video Games Research Framework.”

Dr Richard Wilson OBE, Chief Executive Officer, TIGA said: “TIGA believes that games businesses should aim to ensure that games are safe to use for all players. In 2020, TIGA formally adopted its 5 Principles for Safeguarding Players, designed to embody the spirit of the approach that games companies should adopt in operating their businesses within the UK.

“Children and young people should not be able to buy ‘loot boxes’ in video games without parental consent. TIGA also believes that vulnerable adults need to be protected against potential harms arising from loot boxes.

“TIGA looks forward to contributing to the DCMS’s planned working group to advance measures to protect players from potential harms.”

Cash boost for millions of workers as government backs new law to ensure all staff keep their tips

UK Government backs new reforms making it unlawful for employers to withhold tips from staff

  • New legislation to make it unlawful for employers to withhold tips from staff
  • it means customers will know for certain that all tips will go to hard-working employees, who will take home more money
  • the Tipping Bill will benefit more than 2 million workers and, for the first time, will give them the right to see an employer’s tipping record

Millions of UK workers will be able take home more of their hard-earned cash under new legislation, backed by the government yesterday, banning employers from withholding tips from their staff.

Despite most hospitality workers – many of whom are earning the National Minimum Wage – relying on tips to top up their pay, there are still sadly too many businesses who shamefully fail to pass on service charges from customers to their staff.

The Employment (Allocation of Tips) Bill, introduced by Dean Russell MP and backed by the government, will ensure that all tips go to staff by making it unlawful for businesses to hold back well-earned service charges from their employees.

This overhaul of tipping practices is set to benefit more than 2 million UK workers across the hospitality, leisure and services sectors – who tend to reply on tips the most – and will help to ease pressures caused by global inflation and an increase to the cost of living.

Business Minister Jane Hunt said: “At a time when people are feeling the squeeze with rising costs, it is simply not right that employers are withholding tips from their hard-working employees.

“Whether you are pulling pints or greeting guests, today’s reforms will ensure that staff receive a fair day’s pay for a fair day’s work – and it means customers can be confident their money is going to those who deserve it.

“I particularly want to tip my hat to the work of Dean Russell MP and all the campaigners who have helped make the Tipping Bill a reality.”

Through the Bill, a new statutory Code of Practice will be developed to provide businesses and staff with advice on how tips should be distributed. On top of this, workers will receive a new right to request more information relating to an employer’s tipping record, enabling them to bring forward a credible claim to an employment tribunal.

Dean Russell, Conservative MP for Watford, said: “I am delighted that my Tips Bill has passed second reading in Parliament. It is fantastic that we are on track to securing a fair deal for millions of people working in hospitality across the country.

“It has always felt wrong that some employers have retained tips intended for their staff. This new legislation will halt this practice, particularly given the current challenges around the cost of living. I would like to thank all of the businesses and stakeholders that have got in touch to voice their support.”

The move towards a cashless society has exacerbated the problem of companies keeping card tip payments for themselves, and today’s measures, once in law, will ban that practice.

UK Hospitality Chief Executive, Kate Nicholls, said: “Tips and service charges provide a significant and welcome boost to hospitality employees’ take-home cash. So we’re delighted to see this proposed legislation recommend that employers can set a fair distribution policy for staff, meaning they all benefit.

“This should also reassure prospective hospitality sector workers at a time when the industry is seeking to fill vacancies.”

The reforms follow a range of UK Government action to support people with the cost of living and help those on lower incomes keep more of what they earn.

Most notably, earlier this year the government increased the National Living Wage to £9.50 per hour – equivalent to an extra £1,000 a year for a full-time worker – with a full campaign which encouraged workers to check their pay.

In addition, the government recently announced a widening of the ban on exclusivity clauses, giving the lowest paid workers flexibility to top up their pay and work multiple jobs if they wish.

The government helpfully adds: ‘reforms come at a time when there are more employees on payrolls than ever before – and unemployment has reached an all-time low’.

Six of the best?

SECOND ROUND OF VOTING TAKES PLACE TODAY

RISHI Sunak has emerged as the front-runner in the race to become the next Prime Minister. The former Chancellor was the clear winner following the first round of voting by MPs yesterday.

Sunak topped the poll with 88 votes, Trade Minister Penny Mordaunt was a strong second on 67 and Foreign Secretary Liz Truss, who launches her campaign today, third on 50.

New Chancellor Nadhim Zahawi and former health secretary Jeremy Hunt were eliminated from the race, both failing to attract suffiicient support.

First Round Voting was:

Rishi Sunak 88

Penny Mordaunt 67

Liz Truss 50

Kemi Badenoch 40

Tom Tugendhat 37

Suella Braverman 32

Nadhim Zahawi 25*

Jeremy Hunt 18*

Eliminated *

The six remaining hopefuls – Kemi Badenoch, Suella Braverman, Penny Mordaunt, Rishi Sunak, Liz Truss and Tom Tugendhat – face another round of voting today when another candidate will be eliminated.

The field is expected to be narrowed down to two by the end of next week, then over the summer around 160,000 Conservative Party members will have their say on who they want as their next party leader – and our prime minister.

The result will be announced on 5 September.

One in four families will receive first Cost of Living Payment from today

Almost one in four families across the UK will get £326 sent directly to them from today, with the second instalment of £324 sent later this year as part of the UK Government’s £37 billion support package.

  • £326 – the first of two cost of living payments – will automatically hit seven million bank accounts between today and 31 July 2022 as part of the government’s £37 billion support package
  • Second instalment of £324 will follow from the autumn, with separate payments for pensioners and disabled people also coming later this year
  • Tax credit claimants will receive their first cost of living instalment by autumn

Over eight million households on means-tested benefits will automatically get the first instalment of £326 from this month.

This means that, combined with other support, millions of low-income households across the UK will receive at least £1,200 from the government by Christmas to ease Cost of Living pressures.

On top of that, nearly one in ten people will get the £150 disability payment this Autumn, and over 8 million pensioner households could get an extra £300 from Winter Fuel Payments in November and December.

Prime Minister Boris Johnson said: “Just as we looked after people during lockdown, we will help them get through these tough economic times.

“Today’s payment is the signal to millions of families that we are on their side and we have already promised more cash in the autumn, alongside other measures – including our Help for Households – to support the vulnerable and ease the burden.”

Work and Pensions Secretary, Thérèse Coffey said: “Our help for households will begin landing in bank accounts today as we make sure those on the lowest incomes get the support they need in the face of rising costs.

“This first instalment of £326 should reach all eligible low-income households by the end of July.”

Chancellor of the Exchequer, Nadhim Zahawi said: “It’s great that millions of the families who are most in need are starting to receive their Cost of Living Payments, which I know will be a massive help for people who are struggling.

“Alongside tax cuts, changes to Universal Credit and the Household Support Fund, these payments are a vital part of our £37 billion support package to help people deal with rising prices.”

Most people entitled to the first instalment of the Cost of Living payment will receive it between now and 31 July 2022. Households who are eligible because they receive tax credits and no other eligible benefits will receive their first instalment from HMRC in the autumn, and the second instalment in the winter.

DWP will administer payments for customers on all other eligible means-tested benefits, and customers do not need to contact the government or apply for the payment at any stage.

In addition to the £650 Cost of Living Payment, all domestic energy customers in the UK will receive a £400 grant to help with energy bills, and those in Council Tax bands A-D in England will get an extra £150, which has already been sent to many households. This brings support for millions to £1,200 by the end of the year.

The disability and pensioner payments come in addition to this, as does any support from the Household Support Fund, which was recently extended through to March 2023 with £421 million additional funding.

It is now worth £1.263 billion, and combined with £237 million for devolved nations, means this support package now stands at £1.5 billion. The Household Support Fund is designed to help low-income households in England with food and energy bills, and is distributed by local authorities, who know their areas best.

Total UK Government support this year for low-income families stands at £37 billion, a figure which includes a recent rise to £12,570 for the National Insurance starting thresholds. This will benefit 30 million working people and is worth £330 to a typical employee.

And then there were eight …

Outsider falls before the first hurdle as race to become Conservative Party leader gets underway

EIGHT candidates will battle it out to become the next Conservative Party leader – and our new Prime Minister – as voting gets under way this afternoon.

Each of the candidates was able to get the minimum twenty signatures required to take part in the contest and the competition now gets under way in earnest.

One hopeful who didn’t make it was little-known backbencher Rehman Chishti, who failed to get the required number of nominations.

Cabinet ministers Dominic Raab and Grant Shapps chose not to stand, instead attending Rishi Sanak’s campaign launch. Other big names not putting themselves forward to be the next Prime Minister are Priti Patel, Michael Gove and Sajid Javid, although all three will be keen to influence the outcome of the contest.

The candidates are: Kemi Badenoch, Suella Braverman, Jeremy Hunt, Penny Mordaunt, Rishi Sunak, Liz Truss, Tom Tugendhat and Nadhim Zahawi.

They now have to secure 30 votes in the first round today to stay in the race. Voting opens at 1.30pm with the result expected just after 5pm.

Further votes will then take place over the coming days to whittle the number of candidates down to a final two. Conservative Party members across the country will then choose between this final pair over the summerand the winner is expected to be announced on 5 September before parliament resumes after the summer recess.

Former Chancellor Rishi Sunak seems certain to be one of the final two, but at this stage it is far from clear who his final opponent is going to be.

5pm UPDATE:

Former Health Secretary Jeremy Hunt and current Chancellor Nadhim Zahawi have been eliminated after today’s vote.

The six remaining candidates will do it all again tomorrow.

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New poll finds 7 in 10 adults want social media firms to do more to tackle harmful content

Ipsos study finds over 4 in 5 adults are concerned about harmful content online

  • 68 per cent want more action from social media firms on racism, homophobia and misogyny on their platforms
  • Comes as the Online Safety Bill moves to Report Stage in the House of Commons this week

A clear majority of the public want social media companies to do more to protect their users from harmful content, according to new research published today.

Polling by Ipsos shows over four in five (84 per cent) adults in the UK are concerned about seeing harmful content – such as racism, misogyny, homophobia and content that encourages self-harm – with two in five (38 per cent) reporting having seen it in the last month. This comes as the Online Safety Bill moves to Report Stage in Parliament this week.

The government commissioned study found strong public support for the measures contained in the Bill. For instance, seven in ten adults (68 per cent) believe social media companies should do more to protect people online.

Four in five adults (78 per cent) want social media companies to be clear about what sort of content is and isn’t allowed on their platform.

In a stark warning to social media companies, 45 per cent of respondents also said they will leave or reduce the amount of time they spend on their platforms if they see no action.

Digital Secretary Nadine Dorries said: “Online abuse has a devastating impact on people’s lives, and these findings definitively show the public back our plans which will force social media companies to step up in keeping their users safe.

“It is clear people across the UK are worried about this issue, and as our landmark Online Safety Bill reaches the next crucial stage in Parliament we’re a big step closer to holding tech giants to account and making the internet safer for everyone in our country.”

The survey also found that women have high levels of concern about legal but harmful content, with 45 per cent feeling unsafe when talking to people on dating or messaging apps.

Most women (65 per cent) agree there should be limits to the types of content people can post online. Nearly half (47 per cent) of those living in households with at least one child report having seen abusive content in the last month.

The safety of women and girls across the country is a top priority. The measures we’re introducing through the Online Safety Bill will mean tech companies have to tackle illegal content and activity on their services, women will have more control over who can communicate with them and what kind of content they see on major platforms, and they will be better able to report abuse.

In addition, we are continuing to implement our Tackling Violence Against Women and Girls (VAWG) strategy to bring about real and lasting change offline as well as online.

The Online Safety Bill was introduced to Parliament in March and is a major milestone in the government’s mission to make the UK the safest place in the world to be online. The new laws will protect children, tackle illegal content and protect free speech, as well as requiring social media platforms to uphold their stated terms and conditions.

If they don’t, the regulator Ofcom will work with platforms to ensure they comply and will have the power to fine companies up to ten per cent of their annual global turnover – which could reach billions of pounds – to force them to fulfil their responsibilities or even block non-compliant sites.

When the Bill comes into force, firms will be required to identify and implement solutions to protect their users. Firms hosting content that is harmful to children such as pornography, will have to prevent them from accessing it, for example by using age verification.

Social media platforms will also be required to safeguard people’s free speech, and their access to journalism and content that is democratically important. The poll follows the announcement of a series of amendments to the Bill last week to strengthen protections for freedom of speech, including tougher protections to guard against the arbitrary removal of articles from recognised news outlets shared on social media.

Last week the government published the list of legal but harmful content social media companies will need to address under the Online Safety Bill.

The categories consist of types of online abuse and harassment which can fall below the threshold of a criminal offence, but which still cause significant harm to adults online such as misogyny, homophobia and content that encourages self-harm.

This threshold is important to ensure that the online safety framework focuses on content and activity which poses the most significant risk of harm to UK users online. 

Free speech within the law can involve the expression of views that some may find offensive, but a line is crossed when disagreement mutates into abuse or harassment, which refuses to tolerate other opinions and seeks to deprive others from exercising their free speech and freedom of association.