New sanctions come into effect for those found selling illicit tobacco products
More than 27 million illicit cigarettes and 7,500kg of hand-rolling tobacco were seized under Operation CeCe in its first 2 years, HM Revenue and Customs (HMRC) and National Trading Standards have revealed.
This comes as new powers come into force from 20 July, which could see penalties of up to £10,000 for any businesses and individuals who sell illicit tobacco products. The sanctions will bolster the government’s efforts to tackle the illicit tobacco market and reduce tobacco duty fraud.
The new powers will also see Local Authority Trading Standards given the ability to refer cases to HMRC for further investigation. HMRC, where appropriate, will administer the penalties and ensure the appropriate sanction is applied and enforced.
Operation CeCe is a joint HMRC-National Trading Standards operation which has been working to seize illicit tobacco since January 2021.
Nis Bandara, HMRC’s Deputy Director for Excise and Environmental Taxes, said: “Trade in illicit tobacco costs the Exchequer more than £2 billion in lost tax revenue each year. It also damages legitimate businesses, undermines public health and facilitates the supply of tobacco to young people.
“These sanctions build on HMRC’s enforcement of illicit tobacco controls, will strengthen our response against those involved in street level distribution, and act as a deterrent to anyone thinking that they can make a quick and easy sale and undercut their competition.”
Kate Pike, Lead Officer for the Chartered Trading Standards Institute, said: “Trading Standards Officers across the country work with colleagues in Public Health to reduce the harm from smoking and with enforcement partners to disrupt criminality in our communities.
“We welcome this addition to our toolkit of measures to tackle illegal tobacco, ensuring that those who seek to profit from supplying these products face substantial penalties for doing so, and their ability to continue to trade is severely impacted.”
Lord Michael Bichard, Chair of National Trading Standards, said: “The illegal tobacco trade harms local communities and affects honest businesses.
“Through Operation CeCe, we have removed 27 million illegal cigarettes and 7,500kg of hand-rolling tobacco from the supply chain and we welcome these new measures to clamp down further on the illicit tobacco trade.”
HMRC will launch a new illicit tobacco strategy later in the year which will replace ‘From Leaf to Light’, which has been the guiding strategy for tackling the illicit tobacco market since 2015.
New requirements on banks will protect freedom of expression
New rules will give consumers greater confidence to challenge account closures
Changes available because of Brexit and recent government legislation
Banks will be forced to explain and delay any decision to close an account under new rules, protecting freedom of expression.
The Government has stepped in to address fears that banks are terminating accounts because they disagree with someone’s political beliefs.
The changes will increase the notice period to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement bank.
Banks will also be required to spell out why they are terminating a bank account – boosting transparency for customers and aiding their efforts to overturn decisions.
The changes announced today can only be made due to new powers in the Financial Services and Markets Act 2023, which give Britain control of its financial rulebook following Brexit.
Economic Secretary to the Treasury, Andrew Griffith, said:“Freedom of speech is a cornerstone of our democracy, and it must be respected by all institutions.
“Banks occupy a privileged place in society, and it is right that we fairly balance the rights of banks to act in their commercial interest, with the right for everyone to express themselves freely.
“These changes will boost the rights of customers – providing real transparency, time to appeal and making it a much fairer playing field.”
The proposed changes follow a call for evidence launched in January, following PayPal’s temporary suspension of several accounts last year. It found that changes were needed to ensure the right balance is being struck between protecting customers, and providers’ rights to manage commercial risk.
They require secondary legislation, which will be delivered through the powers granted in the Financial Services and Markets Act 2023, as part of the Government’s programme in building a Smarter Regulatory Framework for UK financial services.
This runs alongside separate plans to clarify in legislation the requirements for Politically Exposed Persons (PEPs), and a review into whether these are being applied proportionately by financial institutions.
These steps were commissioned by Parliament last month as part of the Financial Services and Markets Act 2023; and the FCA will set out how they intend to conduct the review by the end of September.
Plans to boost UK employment through widening access to high-quality health support in the workplace are being unveiled today by the Westminster Government
Ministers are urging employers to do more to keep workers healthy and reduce the numbers out of work due to long-term sickness
Consultation launching on measures to increase employer uptake and widen reach of Occupational Health
Plans include a new standard for businesses to adopt to boost health in the workplace
Better workplace support expected to grow the economy and tackle inactivity by improving productivity and preventing health-related job losses
The Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) are today publishing a consultation on ways to increase uptake of Occupational Health provision.
Employers will be encouraged to take up Occupational Health offers to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.
These proposals include introducing a national “health at work” standard for all employers to provide a baseline for quality Occupational Health provision, which includes guidance, an option to pursue accreditation, and additional government support services – for example outreach workers to support SMEs to meet the standards.
It also seeks views on developing longer-term workforce capacity to help meet any increased demand for Occupational Health services in the future by:
Encouraging NHS leavers or those who are considering a career change to pivot towards the Occupational Health specialism
Developing a longer-term, multi-disciplinary workforce to provide Occupational Health services
The consultation will also ask employers to share their examples of good Occupational Health provision to help inform other businesses and encourage them to provide the same.
Secretary of State for Work and Pensions, Mel Stride MP, said: “This Government is investing billions in getting people back to work and growing the economy. We need employers to keep playing their part too.
“Healthy businesses need healthy workers – employers will benefit from higher retention rates, more productive workers, and fewer work days lost due to sickness. Improving health in the workplace is a vital piece of the puzzle in our drive to increase employment.”
Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “Long-term sickness is a huge contributor to economic inactivity, and while of course some people are unable to work, better accommodation of health problems in the workplace will open up a wider workforce to employers and support employees with a range of needs.
“Many small and medium-sized business owners already invest significantly in the health and wellbeing of their workforce, but this will be a gamechanger in identifying and removing obstacles to people with health conditions starting, staying and succeeding in work.”
To also help keep people in work, the government will today also publish a separate consultation looking at options to increase investment in Occupational Health services by UK wide employers through the tax system.
This follows its announcement at the Spring Budget where it committed to consult on incentivising greater provision of Occupational Health through the tax system.
The government wants to explore the case for providing additional tax relief to businesses on their Occupational Health costs.
In particular, the consultation asks respondents for their experiences of providing Occupational Health, including what services they provide and any barriers they experience. It also asks for evidence on the effectiveness of existing tax incentives and asks respondents for their views on the merits of expanding the existing Benefit-in-Kind relief, and thoughts on any alternative tax incentives.
Tax reliefs on Benefits-in-Kind are already available for certain occupational health services. This consultation will test if expanding these reliefs or introducing new ones could be an effective lever to achieve greater Occupational Health provision, as well as thoughts on any alternative tax incentives. The consultation will determine if expanding tax incentives is an appropriate measure to boost Occupational Health provision.
This is all a key component of the measures in the 2023 Spring Budget to grow labour market participation, reduce economic inactivity and get more people into work. The Department is helping millions to return to work with inactivity falling by 360,000 since the peak of the pandemic.
Long-term sickness is currently the main reason people of working-age give for being economically inactive, but just under half of workers have access to Occupational Health services. Over 90% of large employers offer Occupational Health support, compared to under a fifth of small ones.
Occupational Health provision can help employers provide work-based support to manage their employees’ health conditions, leading to better retention and return-to-work prospects, and improving business productivity, which can be adversely impacted by sickness absence.
Secretary of State for Health and Social Care, Steve Barclay said: “High quality Occupational Health support in more workplaces would not only help to reduce economic inactivity, but it can lead to a healthier, happier workforce.
“The individual health benefits are clear and by focusing on preventative measures, we can reduce the burden on the NHS and help to bring waiting lists down, which is one of the government’s top priorities.”
Angela Rowntree, Occupational Health Physician for the John Lewis Partnership, said: “At John Lewis Partnership we are moving away from reactively managing sickness to proactively supporting our Partners’ health and wellbeing at work.
“Our founder, Spedan Lewis understood this when he launched an in-house health service for all Partners in 1929 – nearly 20 years before the NHS was established – and we’re proud to be part of his legacy today, providing advice and support to help our Partners achieve their potential in the workplace.
“We welcome this new focus on ensuring other businesses and their employees are able to access better workplace health.”
The Occupational Health consultation will run until 23:59 on Thursday 12 October .
First Minister calls for action to end uncertainty on Acorn Project
First Minister Humza Yousaf has called on the UK Government to give the go-ahead for the Acorn carbon capture and storage (CCS) project to enable Scotland to ramp up its transition to clean energy.
On a visit to Peterhead Power Station, the First Minister said that the Scottish Government is wholly committed to supporting the Acorn Project, and urged the UK Government to set out its plans and end uncertainty for investors and stakeholders.
The project, based in Aberdeenshire, would take captured CO2 emissions from industrial processes across the country and store it safely under the North Sea.
The First Minister added: “Scotland’s net-zero future is being held back by UK Government dithering and delay.
“The Acorn scheme should be given approval now, so that we can take advantage of our unrivalled access to a vast CO2 storage potential and our opportunities to repurpose existing oil and gas infrastructure. CCS will play a pivotal role in achieving a just transition for our workforces, capitalising on existing world-leading skills and expertise to create many good, green jobs in the coming years.
“Despite the UK Government confirming in March that Acorn is ‘best-placed’ to meet the eligibility to be awarded Track-2 status, which would allow access to financial support from the UK Government, they continue to fail to provide a clear timetabled solution for the next stages of the process. This is entirely unacceptable and layers further uncertainty on top of never-ending delays which are impacting investor confidence and which compromise our climate-change commitments and just-transition ambitions.
“Acorn’s target of capturing and storing up to five million tonnes of CO2 annually by 2030 is critical to Scotland’s plans to achieve net zero by 2045, ahead of the rest of the UK. The scheme will also help the UK Government to deliver on its commitments.
“While the UK Government prevaricates, we have already established a £500 million Just Transition Fund for the North East to build on the region’s world-renowned expertise and ingenuity, to create jobs, foster innovation and support the region to deliver a fair and managed transition to net zero.”
Catherine Raw, Managing Director of SSE Thermal, who are part of the Scottish Cluster group of industrial companies backing the capture and permanent storage of CO2 emissions, said: “To unlock the potential of Peterhead and the wider region, it is vital that the Scottish Cluster is brought forward urgently, allowing the development of decarbonisation projects to be accelerated and Scotland’s net-zero ambitions to be met.
“Doing so will not only help us meet our energy goals, it will also support industries and provide a fair and just transition for workers and communities across the North East of Scotland, including at Peterhead.
“SSE have set out plans to invest up to £40 billion in the next decade, including more than £21 billion in Scotland alone. Renewables will be at the heart of that investment but we also recognise the need for flexible generation to provide backup when the wind doesn’t blow and the sun doesn’t shine. Our existing Peterhead station fulfils that role today, playing a critical role in Scotland’s energy system.”
New plans to improve the lives of disabled people have been set out by the Government today (Tuesday 18 July).
Government launches consultation on Disability Action Plan, which brings together ideas and action across Government to make disabled people’s lives easier
Plans include raising awareness of life-changing tech for disabled people, mandatory disability awareness training for taxi drivers, autism-friendly programmes for cultural and heritage sites
Plans designed by Ministers to make the UK a more inclusive society in the long term
Immediate and practical measures proposed in the fully accessible consultation include ensuring businesses are aware of disabled people’s needs – including Guide Dog access needs – to allow all disabled people to live, work and shop freely and support for local authorities to ensure the playgrounds they build or refurbish are accessible for disabled children.
The proposals will inform the Government’s Disability Action Plan later this year, laying the foundations for longer term change.
Other measures in the proposed Plan include:
– Raising the profile of assistive technology to ensure more disabled people have access to life-changing tech
– Legislating for mandatory disability awareness training for taxi and private hire drivers to unlock greater travel freedom for disabled people
– Encouraging more autism-friendly programmes in the cultural and heritage sectors to drive greater inclusivity
– Improving reasonable adjustments in the courts system so more disabled people can be on juries improving diversity and breadth of experience
– Implementing the British Sign Language (BSL) GCSE, over a year after the BSL Act was introduced, giving thousands of pupils communication and visual memory skills that will be an advantage to them for the rest of their lives
– Exploring the feasibility of Great Britain hosting the Special Olympics World Summer Games in 2031.
The Disability Action Plan sits alongside the Government’s National Disability Strategy which sets out our longer-term vision to improve disabled people’s lives for the better.
6.6927 Disability Unit branding
Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “Our Disability Action Plan will lay out practical measures we can implement here and now to improve the lives of disabled people.
“From leading the way globally with assistive technology to improving inclusivity and accessibility across sport, travel and culture, the Plan will also be important in setting the stage for longer term change.
“We want disabled people to be at the heart of decision making and I would encourage anyone interested to respond to this consultation so the views of disabled people across the country are front and centre of our final Disability Action Plan.”
The Plan builds on the Government’s achievements over the last year on education, work, leisure, and rights for disabled people. This includes supporting the passage of landmark legislation: the Down Syndrome Act and British Sign Language (BSL) Act – and a consultation to support the introduction of a new BSL GCSE.
The overarching focus on disability has also ensured over 2,000 miles of King Charles III England Coast Path is accessible, while the government has delivered an additional £1 billion for the education of children and young people with more complex needs.
The consultation will run for 12 weeks and be open for anyone to comment. This will ensure the Plan is informed by the experience and views of disabled people, disability organisations and charities as well as other interested parties.
Chair of the Disability Unit West Midlands Regional Stakeholder Network, Louise Mckiernan said: “I welcome the Government’s commitment to their new Disability Action Plan and their intention to take immediate and practical actions to improve the lives of disabled people across the UK.
The launch of this consultation is an important opportunity for disabled people in particular to have their say and to help shape the Government’s short-term plans.
“I would encourage as many disabled people, disability organisations and other interested parties as possible to take part in this consultation exercise to ensure their voices are heard.”
Students and taxpayers will be better protected against rip-off degree courses that have high drop-out rates, don’t lead to good jobs and leave young people with poor pay and high debts, the Prime Minister and Education Secretary have announced.
Under the plans, the Office for Students (OfS) will be asked to limit the number of students universities can recruit onto courses that are failing to deliver good outcomes for students.
The UK has some of the world’s leading universities, but a minority of the courses on offer leave students saddled with debt, low earnings and faced with poor job prospects. The government wants to make the system fairer for them, but also for taxpayers – who make a huge investment in higher education and are liable for billions of pounds in unrecovered tuition fees if graduate earnings are low.
Figures from the Office for Students show that nearly three in ten graduates do not progress into highly skilled jobs or further study 15 months after graduating. The Institute for Fiscal Studies also estimates that one in five graduates would be better off financially if they hadn’t gone to university.
The government wants to make sure that universities and colleges are offering the same standard of high-quality provision expected in our schools, and that young people are encouraged to choose the path that is right for them – whether it’s a university degree, a higher technical qualification, or an apprenticeship.
As part of today’s announcements, the government will also reduce the maximum fee that universities can charge for classroom-based foundation year courses to £5,760 – down from £9,250 currently.
These are an additional year of study designed to help prepare students for degrees with specific entry requirements or knowledge, such as in medicine and veterinary sciences. However, research shows that too many people are encouraged to take a foundation year in some subjects like business where it is not necessary.
The Office for Students will also continue work to make it easier for students to assess the quality of each university course, including its earnings potential, so that they can make the most informed decision about where and what to study. We are asking the Office for Students to ensure that courses which fail to deliver good earnings are subject to stricter controls.
Prime Minister, Rishi Sunak, said: The UK is home to some of the best universities in the world and studying for a degree can be immensely rewarding.But too many young people are being sold a false dream and end up doing a poor-quality course at the taxpayers’ expense that doesn’t offer the prospect of a decent job at the end of it.
“That is why we are taking action to crack down on rip-off university courses, while boosting skills training and apprenticeships provision. This will help more young people to choose the path that is right to help them reach their potential and grow our economy.”
Education Secretary Gillian Keegan said: “Students and taxpayers rightly expect value for money and a good return on the significant financial investment they make in higher education.
“These new measures will crack down on higher education providers that continue to offer poor quality courses and send a clear signal that we will not allow students to be sold a false promise. Wherever they choose to study, it is vital students can gain the skills needed to get great jobs and succeed – supporting the Prime Minister’s priority to grow our economy.”
Philip Augar, chair of the independent Review of Post-18 Education and Funding, said: “This is another strong signal for universities to control such recruitment as is not in students’ best interests and I hope the sector responds constructively.
Edward Peck, Vice-Chancellor and President Nottingham Trent University and panel member of the independent Review of Post-18 Education and Funding, said: “Following careful consideration and extensive consultation, the reform agenda for higher education being pursued by Government is consistent with the approach articulated in the Augar Review.
“The alignment of the fee for Foundation Years with that of Access to HE for lower cost subjects is in the interests of students as is the proposition that the future refinement of the quality framework deployed by the Office for Students, including potential selective student number controls, should make subject appropriate use of graduate salaries.”
Baroness Alison Wolf, panel member of the independent Review of Post-18 Education and Funding, said: “I am delighted that the government has introduced reforms for foundation year courses, whose current meteoric growth is hard to justify educationally or in cost terms.
“Aligning their fees explicitly with college-based access courses should also promote the greater alignment of further and higher education to which the government is, rightly, committed.”
The government has already taken decisive steps to make sure young people and adults can access more high-quality training opportunities.
This includes rolling out new T Levels, Higher Technical Qualifications, establishing a network of 21 Institutes of Technologyand working with employers of all sizes to create more apprenticeships in a wider range of exciting roles. Plans to expand UCAS to allow students to apply for apprenticeships alongside traditional degree have also been announced so thousands more young people can benefit from a wider choice of high-quality options.
Alongside the measures announced today to boost the quality of higher education, the government is going further still to support people and employers to take advantage of the wide range of free training options available to them, helping to fill skills gaps, get people into work and support the Prime Minister’s priority of growing the economy.
This includes launching a new digital platform from the autumn where people and employers can search for everything from apprenticeships and T Levels to Skills Bootcamps and essential skills courses – all in one place.
The government is also making it easier for employers to take on apprentices. This includes by cutting the steps needed to register to take on an apprentice by a third and updating 100 apprenticeships in sectors such as construction and healthcare so they reflect the latest technological advancements and so they work better for employers and apprentices.
Anthony Impey, Chief Executive of Be The Business, said: “Small businesses are run by some of the country’s most impressive and resilient people, but they are time poor and lack the resources of their peers in much larger companies.
“So these changes will make a real difference in opening up apprenticeships at a time when small businesses are looking for all the help they can get to boost their productivity.”
FD Works, Top 50 SME apprentice employer and accountancy firm based in Bristol said: “At FD Works, we believe that the power of apprentices is unmatched. The passion and perspective they bring have been a huge part of our ongoing success, but as a small business, our time is incredibly valuable.
“The investment far outweighs the cost already, but the Department for Education is continuously improving the system with us in mind, which is clear in this latest update.
“As an innovative company, we’re really excited to see changes happening that will help us move quicker, share more opportunities, and empower even more apprentices to find a career they love.”
Jane Gratton, Head of People Policy, British Chambers of Commerce said: “Apprenticeships are key to boosting technical skills in the workforce and helping firms tackle skills shortages.
“However, many firms with great apprenticeship opportunities have found the process difficult. So it’s good to see Government taking steps in the right direction to reduce the complexity and excess bureaucracy in the apprenticeship system.
“We also need more candidates to choose the apprenticeship route to employment and so we welcome initiatives that raise awareness and help match people to the great jobs and training available in local business communities throughout the country.”
Business and Trade Secretary Kemi Badenoch has formally signed the treaty to accede to CPTPP trade group in New Zealand this morning
Business and Trade Secretary Kemi Badenoch formally signed the treaty confirming the UK’s accession to CPTPP – the Indo-Pacific trade bloc now worth £12 trillion in GDP – in New Zealand today [Sunday 16th]
To celebrate this huge moment, the Government released new figures showing CPTPP-owned businesses employed one in 100 UK workers, with membership expected to turbocharge investment in the UK even further
British whisky and cars amongst 99% of current UK goods exports to CPTPP set to be eligible for zero tariffs as UK businesses given unparalleled access to market of over 500 million people
Business and Trade Secretary Kemi Badenoch has formally signed the treaty to accede to CPTPP trade group in New Zealand this morning [Sunday], kickstarting the UK’s membership of a modern and ambitious trade deal spanning 12 economies across Asia, the Pacific, and now Europe.
The Secretary of State is in Auckland to put pen to paper on this ‘mega deal’, alongside New Zealand Trade Minister Damien O’Connor, Canadian Trade Minister Mary Ng, Japanese Minister for Economic Revitalisation Goto Shigeyuki and Australian Deputy Trade Minister Tim Ayres.
The signature is the formal confirmation of agreement for the UK to join the group, following substantial conclusion of negotiations earlier this year. The Government will now seek to ratify the agreement, which will include parliamentary scrutiny, whilst other CPTPP countries complete their own legislative processes.
The signing comes as a new government report reveals one in every 100 UK workers was employed by a business headquartered in a CPTPP member nation in 2019, equating to over 400,000 jobs across the country.
Membership of the trade group is expected to spark further investment in the UK by CPTPP countries, already worth £182 billion in 2021, by guaranteeing protections for investors.
Ian Stuart, CEO at HSBC UK, said: “The UK’s formal accession to CPTPP marks a significant milestone for UK trade, enabling ambitious British businesses to connect with the world’s most exciting growth markets for start-ups, innovation and technology.
“At HSBC UK, we are incredibly excited about the opportunities this agreement presents; as the world’s leading global trade bank we will support UK businesses to achieve their full potential and open up a world of opportunity.”
Cath White, Head of International at Belvoir Farm said: “The UK’s accession to CPTPP will mean more than 99% of UK goods exported to CPTPP member countries will be eligible for zero tariffs.
“It will also ease administrative and commercial trade barriers to allow talented and passionate UK producers to tell their story on a worldwide scale.
“At Belvoir Farm, we export 20% of our turnover to markets across the globe, with one third of exports bound for Indo-Pacific markets, including Australia, New Zealand, Japan and Singapore. This is a fantastic opportunity to grow British brands, especially this year when the spotlight is on the UK.”
Ian Galbraith, Group Strategy Director at Mott MacDonald, said: “Mott MacDonald is strongly supportive of UK accession to CPTPP and proud to have been part of the technical board advising the British negotiating team.
“The Partnership’s ambitious services and procurement chapters pave the way for greater recognition of professional competence in engineering and architecture, and establish open, fair and transparent competition rules in government procurement, allowing world-leading firms like Mott MacDonald to win and service new contracts across the many countries covered by CPTPP.”
Speaking ahead of the signing, Kemi Badenoch said:“I’m delighted to be here in New Zealand to sign a deal that will be a big boost for British businesses and deliver billions of pounds in additional trade, as well as open up huge opportunities and unparalleled access to a market of over 500 million people.
“We are using our status as an independent trading nation to join an exciting, growing, forward-looking trade bloc, which will help grow the UK economy and build on the hundreds of thousands of jobs CPTPP-owned businesses already support up and down the country.”
The report found CPTPP investment accounted for:
Over £240 billion in turnover in London, £35 billion in the South East and £18 billion in the East of England
The creation of 26,000 jobs in 2021 and 2022
75% of all employment in CPTPP-owned businesses was outside of London
One in 50 jobs in the North East
One in every 25 jobs in the manufacturing sector
The report also found that CPTPP companies punch above their weight economically. While they account for 0.3% of all businesses in the UK, they generate 6.1% of the UK’s total turnover – 20 times higher than the proportion of businesses they represent.
The UK will be the first European member and first new member since CPTPP was created, which would have been impossible had we remained in the EU. With the UK as a member, CPTPP will have a combined GDP of £12 trillion and account for 15% of global GDP.
The UK Government will now take the steps needed to bring the agreement into force, expected to be next year.
Being part of CPTPP will mean that more than 99 per cent of current UK goods exports to CPTPP countries will be eligible for zero tariffs.
Dairy farmers, for example, will benefit from reduced tariffs on cheese and butter exports to Canada, Chile, Japan and Mexico. This builds on the £23.9 million worth of dairy products we exported to these countries in 2022.
The UK Government says the agreement is a gateway to the wider Indo-Pacific which is set to account for the majority of global growth and around half of the world’s middle-class consumers in the decades to come, bringing new opportunities for British businesses and supporting jobs.
Polluters to face unlimited penalties in England and Wales
New laws will scrap the cap on civil penalties and significantly broaden their scope to target a much wider range of environmental offences
Those that pollute the environment will face unlimited penalties under new legislation announced today by the UK government (Wednesday 12 July).
The current limit of £250,000 on variable monetary penalties that the Environment Agency and Natural England can impose directly on operators will be lifted, following a government consultation which received widespread public support.
This will offer regulators a quicker method of enforcement than lengthy and costly criminal prosecutions – although the most serious cases will continue to be taken through criminal proceedings.
New powers will also enable these higher penalties to be levied as a civil sanction for offences under the Environmental Permitting (England and Wales) Regulations 2016, the regime under which the majority of Environment Agency investigations take place.
This will ensure regulators have the right tools to drive compliance across a range of sectors, strengthening enforcement and holding all who hold environmental permits – from energy and water companies to waste operators and incinerators – to greater account.
Environment Secretary Thérèse Coffey said: “Polluters must always pay. We are scrapping the cap on civil penalties and significantly broadening their scope to target a much wider range of offences – from breaches of storm overflow permits to the reckless disposal of hazardous waste.
“It builds on action being taken right across government to stand up for our environment – tackling pollution, protecting delicate ecosystems and enhancing nature.”
Minister for Environmental Quality and Resilience Rebecca Pow said: “By lifting the cap on these sanctions, we are simultaneously toughening our enforcement tools and expanding where regulators can use them.
“This will deliver a proportionate punishment for operators that breach their permits and harm our rivers, seas and precious habitats.
“This was one of the measures set out in our Plan for Water earlier this year. I am proud to say this government has acted swiftly so that this will now be enshrined in law, further strengthening the power of regulators to hold polluters to account.”
Environment Agency Chair Alan Lovell said: “We regularly prosecute companies and individuals through criminal proceedings, but these new powers will allow us to deliver penalties that are quicker and easier to enforce, even though the most serious cases will continue to go to court.
“That should be an important deterrent – boosting compliance across a range of sectors, driving down pollution and safeguarding the ecology and prosperity of our natural world.”
There are clear provisions in the Sentencing Council guidelines that will ensure the level of penalties levied are proportionate to the degree of environmental harm and culpability. These include safeguards to ensure the operator’s ability to pay, the size of the operator, and the degree of responsibility and harm, amongst others – all of which are taken into account when imposing a penalty.
The amendments to legislation will be approved by both Houses of Parliament in due course before coming into force.
As set out in the UK government’s Plan for Water, future environmental fines and penalties from water companies will be re-invested into the government’s new Water Restoration Fund.
This fund will deliver on-the-ground improvements to water quality, and support local groups and community-led schemes which help to protect our waterways. River catchment groups – bringing together local NGOs, councils, government agencies and farmers and working together in catchments across the country – will benefit from this funding.
Interactive guide expected to help staff spot and tackle economic abuse
95% of women who experience domestic abuse report experiencing economic abuse
Treasury minister calls for experts to provide feedback on the guide
UK businesses and charities are set to benefit from a free interactive guide to help their staff spot and tackle economic abuse when speaking to customers over the phone, Financial Secretary to the Treasury Victoria Atkins has announced today.
The interactive guide, which will be available widely later this year, is being released to 30,000 HMRC staff today to help them spot the signs and create an appropriate environment for victims to disclose their experiences. It builds on the government’s Economic Abuse Toolkit, released earlier this year.
Victoria Atkins met with staff and survivors at Advance charity’s West London Women’s Centre today to mark the announcement and was joined by former Love Island contestant and domestic abuse campaigner Malin Andersson.
The minister ran through an early demo of the tool with attendees at the visit to drum up momentum as she called on experts to work with HMRC to get the online tool right, before they distribute it freely online later this year.
By increasing the awareness of staff in government, business and charities of economic abuse, the government hopes the new interactive tool will play its part in stopping violence against women and girls, to build stronger communities for future generations.
Financial Secretary to the Treasury Victoria Atkins said: “The government passed the landmark Domestic Abuse Act and I am determined to build on that commitment to help victims.
“Economic and financial abuse can be less understood than other forms of domestic abuse, which is why it is vital organisations share best practice with one another whenever they can.
“That is why I’ve asked HMRC to work with charities and experts over the summer to produce a publicly available interactive guide which staff from any organisation which speaks to customers will be able use.”
Economic abuse, which domestic violence charity Refuge estimates 16% of adults in the UK have experienced, is when an individual’s ability to acquire, use and maintain economic resources are taken away by someone else in a coercive or controlling way.
Internal guidance has been distributed to 30,000 HMRC staff today to help front line staff spot victims of economic abuse when speaking to them over the phone. It will help them understand the different types of economic abuse, as well as what signs and characteristics to look out for.
The aim is for this guidance, with support from industry, charities and experts over the summer, to be turned into a free interactive tool to support businesses and organisations whose employees also speak to customers daily.
Malin Andersson said: ““We need everyone to work together if we’re going to be able to stamp out domestic abuse once and for all, so it’s fantastic to see an initiative which will make a difference by training so many people, from businesses and charities, to recognise economic abuse.”
Minister Atkins will also introduce the early demo of the interactive guidance to representatives from the financial services sector and charities at a roundtable later today, where she will hear more about what the sector is doing to tackle economic abuse and what more can be done.
By working with stakeholders to develop and tailor it, the government wants the interactive guidance to reflect the real-world experiences of victims.
Niki Scordi, Advance’s CEO said: ““Understanding the behaviours of domestic abusers and their continuous attempts to intimidate and control survivors, mainly women and children, long after they leave the abusive home is vital.
“This includes control through economic and financial means, such as child support, school fees, bank accounts, loans and access to employment.
“Supporting survivors with specialist Domestic Abuse Advocates in the community and charities like Advance is essential to help change, and sometimes save, the lives of those devasted by domestic and economic abuse.”
The internal guidance distributed by HMRC to its staff today comes hot off the heels of the Economic Abuse Toolkit released in January 2023, which aims to help public sector organisations train staff to identify economic abuse.
Specialist charity Surviving Economic Abuse (SEA), which was one of the organisations which contributed to the Toolkit, has seen a 150% increase in its website user numbers over the past two years (April 2021 5200 users. April 2023 13,000 users).
SEA research also found seven in ten front-line professionals reported the number of victims of economic abuse coming to their organisation for help had increased since the start of the pandemic. By the end of the first lockdown, SEA found one in five women were planning to seek help around welfare benefits.
Tackling domestic abuse is a government priority and improving the response to economic abuse is integral to this. For the first time in history, economic abuse is now recognised in law as part of the statutory definition of domestic abuse included in the Domestic Abuse Act 2021. This is in recognition of the devastating impact it can have on victims’ lives.
Dr Nicola Sharp-Jeffs OBE, CEO and founder of Surviving Economic Abuse said: “Economic abuse is an insidious and often invisible form of control, one which can trap a victim-survivor in a relationship with an abuser and leave them feeling like there is no escape.
“This form of abuse can create dependency on an abuser by restricting their access to economic resources, or instability if the survivor is forced to cover all household costs. It causes long lasting harm including debt and bad credit, so that even when someone manages to leave, these effects can follow them around for the rest of their lives, often preventing them from moving on safely.
“We know that victim-survivors are more likely to disclose economic abuse to their bank than they are to the police.
“It is crucial that frontline employees – whether they work in the public or private sector – are trained to understand economic abuse and how abusers might use their service to continue to control a victim.
“It is vital they are given the knowledge and the tools to spot the signs of economic abuse, develop specialist responses and feel confident signposting a survivor to broader support. The right response can be life changing.
“We’re delighted to see the Treasury take this important step to ensure victim-survivors of economic abuse get a good response whoever they speak to. We look forward to working together to ensure this new interactive guide helps organisations effectively respond to economic abuse.”
Chancellor outlines reforms to boost pensions and increase investment in British businesses
the ‘Mansion House Reforms’ could unlock an additional £75 billion for high growth businesses, while reforms to defined contribution pension schemes will increase a typical earner’s pension pot by 12% over the course of a career
comprehensive reforms will increase pension pots by as much as £16,000
The reforms will also unlock up to £75 billion of additional investment from defined contribution and local government pensions, supporting the Prime Minister’s priority of growing the economy, and delivering tangible benefits to pensions savers.
The United Kingdom has the largest pension market in Europe, worth over £2.5 trillion. Over the past ten years Automatic Enrolment has helped an extra ten million people save for their futures, with £115 billion saved in 2021, but how this money is invested is limiting returns for savers. Comparable Australian schemes invest ten times more in private markets than UK schemes, reaping the rewards that UK savers are missing out on.
To level the playing field, the Chancellor and the Lord Mayor have supported an agreement between nine of the UK’s largest Defined Contribution pension providers, committing them to the objective of allocating 5% of assets in their default funds to unlisted equities by 2030. These providers represent over £400 billion in assets and the majority of the UK’s Defined Contribution workplace pensions market.
This could unlock up to £50 billion of investment in high growth companies by 2030 if all UK Defined Contribution pension schemes follow suit.
More effective investments by defined contribution pension schemes will also increase savers’ pension pots by up to 12%, or as much as £16,000 for an average earner.
Chancellor of the Exchequer Jeremy Hunt said:“British pensioners should benefit from British business success. By unlocking investment, we will boost retirement income by over £1,000 a year for typical earner over the course of their career.
“This also means more investment in our most promising companies, driving growth in the UK.”
Secretary of State for Work and Pensions Mel Stride said:“British workers should have the confidence that their pension savings are working as hard as they are.
“Our reforms will benefit savers and society – unlocking investment into pioneering UK businesses, growing the economy, and helping the record number of people in this country saving into a pension to achieve the retirement they want.”
The Chancellor’s Mansion House Reforms will also deliver better returns for savers through a new Value for Money Framework which will make clear that investment decisions made by pension firms should be based on overall long-term returns and not simply costs. Pension schemes which are not achieving the best possible outcome for their members will be wound up into larger, better performing schemes.
Analysis shows that over a five-year period there can be as much as 46% difference between the best and worst performing pension schemes. This means that a saver with a pot of £10,000 could have notionally lost £5,000 over a 5-year period from being in a lowest performing scheme.
The Mansion House Reforms will be guided by the Chancellor’s three golden rules: to secure the best possible outcome for pension savers; to always prioritise a strong and diversified gilt market as we seek to deliver an evolutionary, rather than revolutionary, change in our pensions market; and to strengthen the UK’s position as a leading financial centre to create wealth and fund public services.
To ensure that the money unlocked by these reforms is invested quickly and effectively, the Chancellor has asked the British Business Bank to explore the case for government to play a greater role in establishing investment vehicles, drawing upon the BBB’s skills and expertise.
This will complement the £250 million of support that government has made available through the Long-term Investment for Technology and Science (LIFTS) initiative to incentivise new industry-led investment vehicles.
The government will also encourage the establishment of new Collective Defined Contribution funds which can invest more effectively by pooling assets as well as launch a call for evidence to explore how we can support pension trustees to improve their skills, overcome cultural barriers and realise the best outcomes for their pension schemes and subsequently their members.
Defined Benefit pensions
For the Local Government Pension Schemes a consultation will be launched on setting an ambition to double existing investments in private equity to 10%, which could unlock £25 billion by 2030. The consultation proposes a deadline of March 2025 for all Local Government Pension Scheme funds to transfer their assets into LGPS pools and setting a direction that each pool should exceed £50 billion of assets.
To improve outcomes for savers in a highly fragmented market, with over 5,000 Defined Benefit Schemes, the government will set out its plans on introducing a permanent superfund regulatory regime to provide sponsoring employers and trustees with a new way of managing Defined Benefit liabilities.
A new call for evidence will also launch tomorrow on the possible role of the Pension Protection Fund and the part Defined Benefit schemes could play in productive investment whilst securing members’ interests and protecting the sound functioning and effectiveness of the gilt market.
Capital Markets
The UK has the largest stock market in Europe and one of the deepest in the world – the London Stock Exchange had the most Initial Public Offerings (IPOs) outside of the US in 2021.
A comprehensive set of reforms will help attract the fastest growing companies in the world to grow and list in the UK. Prospectuses will be simplified, another milestone of Lord Hill’s UK Listing Review, replacing the EU’s outdated regime.
Firm’s prospectuses for investors will be easier to produce, more accessible and understandable, saving companies time and money and attracting more firms to do business in the UK.
Protectionist rules inherited from our time in the EU will be abolished. The Share Trading Obligation and Double Volume Cap have held back UK businesses and will be removed so firms can access the best and most liquid markets anywhere in the world.
The government has also accepted all of Rachel Kent’s Research Review published today, paving the way for a new ‘Research Platform’ that will provide a one-stop-shop for firms looking for research experts. It also sets the path for potentially removing the unbundling rules – an inherited EU law that requires brokers to charge a separate fee for research.
The Chancellor will set out plans to establish an entirely new kind of stock market that allows private companies to access capital markets without floating on a stock exchange. This ‘Intermittent Trading Venue’ would be a world first and will help firms grow and boost the UK economy. It will be complemented by a move to make shares fully digital rather than written on paper, saving businesses time and money.
This builds on the Chancellor’s Edinburgh Reforms and Solvency II reforms which will unlock over £100 billion of productive investment from insurance firms across the UK over a decade.
Seizing the opportunities of the future
To ensure the continued success of the UK’s world-leading financial services sector, firms must be ready to innovate faster, with regulators willing to support them as they do.
Following the Financial Services and Markets Act 2023 passing into law, the government has announced that it is commencing repeal of almost 100 pieces of unnecessary retained EU law for financial services, further simplifying the UK’s regulatory rulebook.
The government launched an independent review into the future of payments – led by Joe Garner, former Chief Executive Officer of Nationwide Building Society – to help deliver the next generation of world class retail payments, including looking at mobile payments.
The government also welcomes a report suggesting ways to move to fully digital shares, scrapping outdated paper-based shares. This will make markets more efficient and modernize how people own shares.
Further information
The Mansion House Compact members are: Aviva; Scottish Widows; L&G; Aegon; Phoenix; Nest; Smart Pension; M&G; Mercer.
The package of reforms announced yesterday could help increase pension pots for an average earner who starts saving at 18 by 12% over their career – over £1,000 more a year in retirement – all whilst supporting UK economy, businesses, and employment.
Analysis shows a difference in returns between schemes over a 5-year period of up to 46% in some cases. This means that a saver with a pot of £10,000 could have notionally lost £5,000 over a 5-year period from being in a lowest performing scheme.
Reaction to the Chancellor’s Mansion House Reforms
Jamie Dimon, Chairman & CEO, JPMorgan Chase said:“Great financial centers stay competitive by responding to the market and evolving through the kinds of important iterations that the Chancellor has announced.
“It’s also good to see the U.K. preparing for the industries of tomorrow considering the great promise of life sciences and A.I. as cornerstones of the economy in the years to come.”
Sir Jon Symonds CBE, Chair, GSK said:“I welcome these important reforms which will further strengthen the UK capital markets and support economic growth.
“The changes will help increase investment returns for pension savers through improved access to all asset classes including in high growth sectors, and ensure the UK’s most innovative companies are better supported by UK capital to stay in this country as they scale to maturity.”
Brent Hoberman, Executive Chairman & Co-Founder, Founders Forum, Founders Factory said:“The planned pension reforms will enable for capital to be productively invested in funds and scaleup companies in the UK.
“This should be welcome news to the UK industries of the future, their ability to attract more capital will create more national champions and generate growth, jobs and increased tax revenue.
“The reforms will enable the UK to build on the positive momentum in these key parts of the economy drive further synergies between it’s world class financial institutions and entrepreneurial base.”
C. S. Venkatakrishnan, Group Chief Executive, Barclays said:“The UK has needed a bold, forward-looking policy agenda and industrial strategy to grow the economy.
“These Mansion House Reforms are an important step in the right direction in mobilising private capital to support growth and innovation.”
Irene Graham OBE, CEO, ScaleUp Institute said:“The package of measures announced by the Chancellor today are very much welcomed by the ScaleUp Institute.
“They contain significant and innovative solutions which will help to enable easier and simpler access to capital markets and patient growth capital. These new initiatives, coupled with the reforms already underway, will support and fuel the global ambitions of our scaleups, and high-potential scaling businesses, across all sectors and all areas of the UK.”
Miles Celic, Chief Executive Officer, TheCityUK, said: ““The competitiveness and attractiveness of any successful international financial centre must, by definition, always be a work in progress. The Chancellor is right to be ambitious in building on the UK’s successes and recognising that we can’t afford to be complacent.
“The Mansion House Reforms are ambitious, pragmatic and necessary. They will underpin the UK industry’s future success. Most importantly, their main beneficiaries will be the British people, who will gain from greater investments in growing businesses, revitalising communities and improving retirements.”
Chris Hulatt, Co-Founder, Octopus Group said: ““We welcome government’s efforts to make the UK a more attractive place to start a business, and support measures that provide additional opportunities for private companies to raise capital.
“Finding new ways for the most skilled and talented entrepreneurs to access capital as they build businesses is fundamental to helping the UK maintain its place as the best place to start, build and scale a business.”
Noel Quinn, Group Chief Executive, HSBC said:“I welcome the strong and comprehensive package of measures announced by the Chancellor in his Mansion House speech.
“Unlocking equity to support companies in innovative high-growth sectors such as technology and life sciences is vital to the future growth of the UK economy.”
Lord Mayor, Nicholas Lyons said: ““These reforms and the Mansion House Compact mark a historic turning point that will accomplish the dual aim of securing a brighter future for retirees and channelling billions into our economy.
“I’m proud to have convened key industry players to make this commitment to unlock £50bn in capital by the end of the decade which will improve returns for pension savers and support firms to grow, stay and list in the UK.”
Tim Orton, Chief Investment Officer, Aegon UK said: ““Aegon UK is proud to be a founder signatory of the Mansion House Compact which will help deliver better long-term outcomes for our customers.
“We are committed to ensuring our customers can access and share in the growth and success of innovative companies we invest in. We will use our scale and expertise to develop investment solutions seeking to improve the retirement outcomes of the millions of members of the defined contribution pension schemes we support. The Compact will also create opportunities that help deliver our climate targets as we progress towards net zero.”
Sir Nigel Wilson, Group CEO, Legal & General said:“As the UK’s largest manager of money for pension clients, L&G is pleased to support the ambition set by the Compact.
“Increasing investment in science, technology and infrastructure will support better returns for the tens of millions saving for their retirement, as well as stimulate much needed long-term growth for the UK economy.”
Mark Fawcett, CEO, Nest Invest said:““For many years now, illiquid assets have been integral to diversified DC pension schemes around the world.
” It’s been a key driver behind Nest setting up our own private market mandates to ensure our members aren’t missing out. Nest will continue to increase our investment in unlisted equities, helping our 12 million members benefit from the strong returns these types of deals can typically offer.”
Ruston Smith, Chair, Smart said: ““Smart Pension is committed to securing better outcomes for long-term savers. Giving UK savers access to higher net returns by investing in unlisted equities, including innovative, high-growth UK companies as part of a well diversified portfolio, will deliver these outcomes over time.
“We are pleased to be a signatory of the Mansion House Compact and, as a successful British fintech, we are proud to be supporting the country’s technology sector, helping home-grown start-ups and scale-ups to flourish and thrive.”
Scottish Widows, CEO, Chirantan Barua said: ““The industry needs to modernise the investment options available to customers.
“With the right consumer protections in place, the proposals announced today could make a huge difference to our customers and the wider UK economy. I’m proud that Scottish Widows is a founding signatory of the Mansion House Compact.”
Phil Parkinson, Investments and Retirement Leader, Mercer said:“Mercer supports proposals that lead to improved pension scheme member outcomes.
“As a global investment solutions provider, we see first-hand the value that illiquid asset allocations can bring to investors’ portfolios from a risk and a return perspective and are in favour of initiatives designed to unlock this asset class for DC members.”
Edward Braham, Chair, M&G said:“Patient capital put to work in companies or projects over multiple decades is essential to support economic growth and importantly, capture value for people’s pensions as they save for their retirement.
“M&G’s heritage is in investing in private markets, whether it is through infrastructure, real estate or innovative companies with purpose. We are democratising access to private markets through the Prudential With Profits Fund, and are supportive of DC pension reforms that encourage more investment of this kind that has potential to result in positive outcomes for savers.”
Mike Eakins, Chief Investment Officer, Phoenix Group said:““We are proud to sign the Compact, which is an important step to allow UK long-term savers to invest in a more diversified portfolio, giving them access to the potential returns of a broader range of assets, in line with their international counterparts.
“Currently, only 9% of UK pension funds are invested in alternative assets as compared to 23% in other major pensions markets. With the right regulatory environment, Phoenix Group could invest up to £40 billion in sustainable and/or productive assets to support economic growth, levelling up and the climate change agenda whilst also keeping policyholder protection at its core.”
