New measures to strengthen appointment and vetting processes following Mandelson revelations
National Security Vetting process to be reviewed following Peter Mandelson case
Ethics and Integrity Commission tasked with tightening financial disclosures, lobbying and business appointment rules
Further reforms build on ambitious programme of standards and ethics reform
The Westminster Government has ordered an overhaul of standards in Whitehall to boost ethics and integrity in political and public life following the Peter Mandelson case.
Chief Secretary to the Prime Minister Darren Jones confirmed the work builds on the significant action this Government has already taken to deliver reforms to standards and ethics.
However, the Mandelson case has also shown more needs to be done and raised further questions about how the direct ministerial appointment process, and wider operation of government, can be strengthened.
The Government will continue to go further to strengthen standards in public life, including by looking again at how ministers and senior officials declare and publish their financial interests, how transparency around lobbying is enforced, and whether the rules on post‑employment activity are fit for purpose in preventing unfair access to, or influence within, government.
The Prime Minister has written to the Ethics and Integrity Commission, asking them to review current arrangements relating to financial disclosures for ministers and senior officials, transparency around lobbying and the Business Appointment Rules. The Government will swiftly respond to any recommendations to bolster standards in public life.
Alongside this, the Government will review the National Security Vetting system, including lessons learned from Peter Mandelson’s developed vetting.
The Government has already confirmed that, in future, diplomatic appointments will not be announced until security vetting has been completed.
To drive this work forward, Baroness Anderson, Parliamentary Secretary to the Cabinet Office, has been appointed to work on standards policy and to deliver the Government’s agenda on ethical standards and constitutional affairs.
Ministers have asked the Lords Conduct Committee to review the Code of Conduct to consider what changes are required to ensure peers can be removed when they have brought the House into disrepute. Ministers are also exploring whether the Committee can tighten rules on lobbying and paid advocacy to bring the Lords in line with the Commons.
In parallel, the Government has also committed to bringing forward legislation to remove peerages from disgraced peers as soon as possible. This work will build on progress to reform the second chamber, such as the upcoming removal of hereditary peers from the House of Lords.
These further steps add to the action the Government has already taken to raise standards — including publishing a new Ministerial Code, establishing the Ethics and Integrity Commission, strengthening the powers of the Independent Adviser, and reforming the business appointments system.
The Foreign, Commonwealth and Development Office is supporting the strengthening of the due diligence and security vetting processes for politically appointed Heads of Mission. This includes introducing individual due diligence-specific interviews with proposed candidates and ensuring politically appointed Ambassadors will have to undergo security vetting before they are appointed.
The government is also looking at assurance processes for high-profile Direct Ministerial Appointments across government, ensuring there are robust measures in place with further details on this work to be set out in due course.
The Government recognises that the Mandelson case has raised serious concerns about standards and inflicted real damage on people’s trust in politics. While the specifics of that case are now a matter for the police, it has exposed the gaps in whether the systems designed to uphold integrity are strong enough.
Taken together, these measures show this Government’s determination to address the issues raised and uphold integrity in public life by strengthening the rules, improving transparency, and restoring confidence in how government operates.
Government backs British pubs with a major package of support on business rates and licensing reform, recognising the challenges they face and important role they play in local communities.
Pubs will get a 15% cut to new business rates bills from April followed by a two-year real-terms freeze, as well as a review into the method used to value them for business rates. This is on top of support announced at Budget.
Government also announces a new High Street Strategy to help ensure retail, leisure and hospitality businesses can thrive, as the bedrock of strong communities.
The Chancellor is backing British pubs with the announcement of a major support package, as the government recognises the challenges facing the industry and the vital role they play in building strong local communities.
Pubs have faced significant pressure as their numbers have fallen by nearly 7,000 since 2010, a roughly 15% reduction and amongst the highest across hospitality overall. The sector has also raised concerns around the way they are valued for business rates purposes.
Recognising the value they bring and the challenges they face, the government is introducing a support package to save the average pub an additional £1,650 in 2026/27. Around 75% of pubs will see their bills fall or stay flat over the same year with the pub sector as a whole paying 8% less in business rates in 2029 than they do currently.
Chancellor of the Exchequer Rachel Reeves said: “If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive.
“We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced. Thriving local businesses, bustling high streets and pride restored in our communities – that’s what this government is delivering.”
Other sectors continue to benefit from the £4.3 billion support package and from permanently lower tax rates for eligible retail, hospitality and leisure properties.
The government is also launching a review into how they are valued. The review will be carried out by the government alongside businesses and their representatives as well as valuation experts, ensuring that any decisions that follow will be implemented for the 2029 revaluation.
Over the last decade, changing consumer habits, increasingly working from home and shopping online, combined with the pandemic and the increase in energy costs following Russia’s invasion of Ukraine have had a significant impact on all high street business.
Recognising this, the government is also announcing a High Streets Strategy to reinvigorate Britain’s communities. Working alongside businesses and representatives, this cross-government strategy will be published later this year and will look at what more the government can do to support our high streets.
This government is committed to supporting pubs build sustainable business models over the long-term. In the spring, the government will consult on further loosening planning rules to benefit pubs, helping them add new guest rooms or expand their main room without local planning applications. We will continue to engage with the sector to ensure other retail, leisure, and hospitality premises also have sufficient planning flexibilities.
The Chancellor also announced £10 million of funding for the Hospitality Support Fund over three years – upped from £1.5 million for one year announced last April – to support pubs across the UK.
The additional funding aims to help over 1,000 pubs provide extra services for local communities, including creating community cafes, village stores and play areas to help pubs bring locals and families together and boost their footfall. It will also support people who are furthest from the labour market to move into jobs in hospitality.
As part of further licencing reforms, pubs and other licensed venues will be able to open after midnight for Home Nations’ games in the later stages of this summer’s Men’s FIFA World Cup, meaning more time for fans at the pub while boosting takings behind the bar and supporting jobs in hospitality. The government is also bringing forward a consultation to allow them to open late for other big events such as Eurovision.
The government will legislate later this year to increase the number of temporary events pubs and other hospitality venues can hold to help screen other World Cup games or host community and cultural events.
This support comes on top of the £4.3 billion package the Chancellor announced at Budget 2025. This includes capping business rate bill rises by 15% for most businesses from April, or £800 for the smallest, next year as pandemic-era reliefs end and new revaluations take effect.
This government is committed to reforming the business rates system and has already begun the work. At Budget 2025, the Chancellor announced a permanent 5p cut in the business rates multiplier for over 750,000 retail, hospitality and leisure properties, funded by a higher tax rate for the most expensive 1% of properties.
Stakeholders react to pubs support package:
Emma McClarkin, CEO of the British Beer and Pub Association, said: “We are pleased the government has listened to our concerns, and those of publicans, consumers and MPs who rallied to defend our locals.
“This pub specific package will stave off the immediate financial threat posed by accelerating business costs and will help keep the doors open for many.
“This additional support will provide certainty for tens of thousands of pubs, with many seeing their bills frozen or falling and there will be a sigh of relief from landlords across the country.
“We will now work closely with government to establish a transformative long-term plan that works for all pubs through permanent business rates reform to ensure they remain at the heart of communities.”
Heineken / star pubs: “Although we will need to fully digest the detail, this announcement is a huge boost for pubs and will ease the immediate concerns of publicans up and down the country.
“I am pleased that the Chancellor has clearly listened to the many Star Pubs licensees who expressed their objections to the plans published at the Budget. This support is a welcome acknowledgement of the pub as the cornerstone of British society, and we are committed to working with the Treasury in the coming weeks and months.
“This support means publicans and their staff are able to focus on the day job – running great pubs at the hearts of their communities.”
Anna Leach, Chief Economist at the Institute of Directors, said: “The Institute of Directors welcomes today’s decision by the government to provide targeted business rates relief for pubs, recognising the intense pressures facing this sector. This support will offer much-needed breathing space for businesses grappling with rising costs and tight margins.
“More broadly, the business rates system remains in urgent need of reform to address the disincentives to investment embedded in the current framework, and we welcome the government’s commitment to take action in this area.
“That said, stronger policy design at an earlier stage would deliver greater benefits for business confidence, planning and costs. We reiterate our call for more detailed, sector-by-sector analysis of the impacts of tax changes to be undertaken alongside each Budget. This would allow concerns to surface earlier in the process, enabling risks to be identified and addressed before they crystallise.”
Michelle Ovens CBE, CEO & Founder, Small Business Britain: “It is good to see the Government widen the business rates support available to pubs and music venues – many small, independent establishments will undoubtedly welcome this additional headroom.
“We also look forward to supporting the work of the newly announced High Street Strategy to ensure retail, leisure and hospitality businesses can thrive. Given the crucial role these sectors play at the heart of local communities it is vital small businesses are given as much support as possible and that we see swift action taken to address existing issues.
“The long-overdue work to reform the business rates system, which the government has already committed to and reaffirmed today, will be especially key.”
Kate Nicholls, Chair of UKHospitality, said: “We welcome the recognition by the Prime Minister and the Chancellor of the scale of the challenges facing the hospitality sector. They have listened to us about the acute cost challenges facing businesses, all of which is impacting business viability, jobs and consumer prices.
“The rising cost of doing business and business rates increases is a hospitality-wide problem that needs a hospitality-wide solution. The Government’s immediate review of hospitality valuations going forward is clear recognition of this.
“The devil will be in the detail, but we need to see pace and urgency to deliver the reform desperately needed to reduce hospitality’s tax burden, drive demand, and protect jobs and growth. We will work with the Government over the next six months to hold their feet to the fire to deliver this.
“This emergency announcement to provide additional funding is helpful to address an acute challenge facing pubs.
“The reality remains that we still have restaurants and hotels facing severe challenges from successive Budgets. They need to see substantive solutions that genuinely reduce their costs.
“Without that clear action, they will face increasingly tough decisions on business viability, jobs and prices for consumers. Those are costs borne by us all, and I hope the Government delivers on its promise to support the whole hospitality sector.”
Social Justice Secretary urges Chancellor to remove two-child limit and benefit cap
Ahead of a series of meetings in London today with child poverty charities, Social Justice Secretary Shirley-Anne Somerville has urged the UK Government to take action to tackle child poverty in its forthcoming Budget, including immediately scrapping the two-child limit and the benefit cap.
Ms Somerville has called on the UK Government to fully scrap the two-child limit on benefits, which pulls 109 children into poverty every day, while also removing the benefit cap at the same time, which limits the total amount of benefit a person can receive.
Subject to parliamentary approval, the Scottish Government plans to mitigate the two-child limit from March next year, through a new Two-Child Limit Payment worth £292.81 a month for eligible recipients. Estimates show this will keep 20,000 children out of relative poverty next year.
The Scottish Government is spending £100 million this financial year, through the Discretionary Housing Payment scheme, to mitigate the benefits cap as far as possible within devolved powers.
Ms Somerville said: “Once again, I am making it clear that the UK Government must fully scrap the two-child limit and the benefit cap as soon as possible. These policies should be confined to the darkest days of austerity and the UK Budget must bring this period to an end.
“In a country as rich as ours, no child should have to live in poverty. The UK social security system is supposed to be there to ensure a basic standard of living, reduce poverty and inequality and help people through the toughest of times.
“That is why the Scottish Government has made bold decisions – like introducing the Scottish Child Payment and investing in our devolved social security system. Child poverty rates are now lower in Scotland than the rest of the UK and relative child poverty rates in Scotland are at their lowest level in almost a decade.
“I call on the Chancellor to follow our example by scrapping the caps, match the Scottish Child Payment and introduce an essentials guarantee, which would ensure Universal Credit actually covers the costs of life’s essentials, such as food and fuel.”
There have been strong indications that the Chancellor will indeed scrap the Two Child Linit when she announces her Budget later this month.
£84m cash boost to help prevent homelessness and support families this winter and immediate help for children and families in temporary accommodation
New £84m cash boost to help prevent homelessness and support families this winter
Immediate help for children and families in temporary accommodation at heart of new package
Announced on World Homeless Day, the funding builds on the record £1 billion investment this year to end homelessness and rough sleeping
Thousands of people facing homelessness will be supported by a new £84 million cash injection to councils up and down the country – ahead of winter.
Children and families in temporary accommodation will be prioritised – with the funding to go towards helping families to cover the essentials like food, school travel and laundry. The new funding, which will support children to remain in education, will be announced on World Homeless Day (10 October).
It comes as record levels of households are in temporary accommodation, including nearly 170,000 children. Levels of rough sleeping have more than doubled since 2010.
Areas with the highest pressures, such as London, will be in line for the additional funding to tackle homelessness this year. This comes on top of the government’s almost £1 billion investment to tackle homelessness this year and includes the largest ever investment in prevention services, helping councils intervene early and stop homelessness before it happens.
The investment provides tailored services for those experiencing long-term rough sleeping – including mental health support, drug and alcohol treatment and sustainable accommodation – ensuring people get the help they need to rebuild their lives.
Housing Secretary, Steve Reed said: “Homelessness is a moral stain on our society. Growing numbers of people have been abandoned to sleep rough on the streets and children left in squalid, overcrowded conditions.
“This government will not stand idly by and allow that to continue. We will make different choices. That’s why we are investing £1 billion to give homeless people the security of a roof over their heads and get back on track to end homelessness for good.”
Yesterday’s investment supports delivery of the Plan for Change, in addition to:
£950 million to increase the supply of good temporary accommodation.
Abolishing ‘no fault’ evictions through the landmark Renters’ Rights Bill.
£39 billion investment to deliver the biggest increase in social and affordable housing in a generation.
Homelessness Minister, Alison McGovern said:“You can’t have a decent life without a decent home. Whether it’s rough sleeping or sofa surfing or, at its worst, children stuck in B&Bs, homelessness in the UK has been too high for too long.
“This has to stop. Through our Plan for Change, the UK will build homes and get help to those who need it to put a roof over their head.
“We’re providing extra cash now to address a crisis made over the past decade. Both the government’s £39bn to build social and affordable homes and the Child Poverty Strategy to come will tackle the root causes of this problem, but we need action now to stop homelessness getting any worse.”
Matt Downie, Chief Executive of Crisis, said: “This funding is very welcome, especially as winter approaches and with homelessness rising. More people are likely to face the prospect of sleeping on cold streets and need support urgently. More parents will be working out how to help their children do homework from cramped and draughty temporary accommodation.
“We know that targeted support can make a big difference and help people take their first steps out of homelessness.
“We hope this announcement marks another step towards an ambitious homelessness strategy. Alongside a concerted effort to build social housing at scale, and ensuring all parts of Government make their contribution to ending homelessness, we can create a safer and more prosperous future for people and families across the country.”
The £84m cash injection includes:
Nearly £70 million for the Rough Sleeping Prevention and Recovery Grant. This is flexible funding for 62 local authorities to prevent people sleeping rough and help them stay off the streets. This could mean strengthening local services on offer, partnering with charities and community organisations, providing sustainable accommodation to help people sleeping rough and specialist physical and mental health support workers and treatment.
Nearly £11 million to help families with children living in temporary accommodation access basic facilities like Wi-Fi, laundry, travel passes for school and uniform, and help pay for food and leisure activities. While the number of children and families living in B&Bs continues to fall under this government, more must be done to get those that need it into safe, secure homes. This funding will be directed to 61 areas with the highest numbers of children in temporary accommodation to make sure that they can have access to facilities they need and support with costs while they are there.
£3 million increase for the Rough Sleeping Drug and Alcohol Treatment element of the wider Drug and Alcohol Treatment, Recovery and Improvement Grant. This funding will be directed to 83 local authorities and a pan-London project, targeted at lifesaving support to people with drug or alcohol related issues who are sleeping rough and at risk of homelessness, including those with co-occurring mental health needs.
An uplift of £200,000 for the Voluntary, Community and Frontline Sector Grant which supports innovative faith and community-led initiatives such as night shelters to reduce the number of people experiencing repeat homelessness.
This funding is supporting the government’s Plan for Change to drive long-term improvements to health and education, ensuring both families and children can truly thrive and forms part of the government’s forthcoming homelessness and child poverty strategies.
World Homeless Day takes place every year on 10 October, raising awareness of the need to prevent and end homelessness and alleviate the suffering of those experiencing it. World Mental Health Day also takes place on 10 October every year – another important topic in homelessness and rough sleeping prevention.
Regional breakdown for total funding being allocated to local authorities is as follows:
London: £36.5m
South East: £9.6m
South West: £9.1m
East of England: £4m
East Midlands: £5.3m
West Midlands: £4.4m
North East: £1.5m
North West: £8.2m
Yorkshire & Humber: £5.2m
Total: £83.8m (to note, £200k is allocated to VCFS organisations and is therefore not included in the above regional breakdown as this is for local authority funding only)
The latest government figures show positive signs of fewer people needing help from the homelessness system across the last year. Between January and March 2025, 83,450 households were assessed as owed a duty to prevent or relieve homelessness, which is lower compared to the record high in the same period in 2024.
The number of households with children in B&B has continued to fall since June 2024 when it was 5,910 – at the end of March 2025 it was 3,870.
There is also a continued drop in households with children in B&Bs for more than the statutory 6 weeks – at the end of June 2024 there were 3,770 households compared to the end of March 2025 where there were 2,300.
The Government’s manifesto commitment to deliver a genuine living wage for working people took a step closer today as it set out new considerations for the Low Pay Commission when recommending next year’s National Living Wage and National Minimum Wage.
Discriminatory age bands to be removed as new Low Pay Commission remit delivers progress towards a single wage rate for adults.
Government places cost of living at the heart of the remit a year on from its first inclusion, meaning more money is being put into the pockets of hardworking people – delivering the Plan for Change.
Low Pay Commission to continue longstanding approach of assessing the impact of wage reforms on different sectors, ensuring recommendations support both economic growth and fair pay.
The Westminster Government’s manifesto commitment to deliver a genuine living wage for working people took a step closer today (5 August) as it set out new considerations for the Low Pay Commission (LPC) when recommending next year’s National Living Wage and National Minimum Wage.
Around 3 million workers benefitted from last year’s decision to include the cost of living in the LPC’s remit for the first time. This led to a record cash increase in the Minimum Wage for apprentices and those under 18, and a £1,400 annual boost for full-time workers on the National Living Wage from April.
Higher wages for the lowest-paid workers not only provide greater financial security for families but also mean more money in the pockets of working people to spend on the things they need – supporting businesses and driving economic growth across the country as part of the Plan for Change.
With younger workers being held back by discriminatory age bands, the updated LPC remit will drive forward the Government’s commitment to delivering a single adult pay band.
The LPC will consult with employers, trade unions and workers on narrowing the gap between the 18–20-year-old rate of the National Minimum Wage and the National Living Wage and will put forward recommendations on achieving a single adult rate in the years ahead.
The remit will also ensure that the LPC continues to actively consider the cost of living in its recommendations for National Living Wage rates to apply from April 2026.
Business Secretary Jonathan Reynolds said: “Low pay drags down living standards for our workers and in turn hurts our high streets and local businesses.
“This Government’s Plan for Change will put money back in people’s pockets, with this new remit marking the next step in considering how we ensure a fair deal for our lowest paid workers while maintaining a competitive economy that boosts businesses and their employees alike.”
Deputy Prime Minister Angela Rayner said: “We promised to make low pay a thing of the past, and deliver a wage people can live on, and that is exactly what this government is determined to deliver.
“We have already taken bold action to Make Work Pay with more than 3 million workers seeing a huge boost in their pay following our increase to National Minimum and Living Wage.
“This remit is the next milestone in our plan to get more money in working people’s pockets, raise living standards in every part of the UK, and get our economy growing.”
Chancellor of the Exchequer Rachel Reeves said: “We are delivering on our promise to make sure every worker receives a fair wage.
“Fair pay which supports working families is integral to our Plan for Change, because when working people are properly rewarded with more money in their pockets, businesses thrive and our entire economy benefits.
“To ensure the right balance is struck between the needs of workers, business affordability, and the wider economy, the LPC is being asked to consult on several issues before recommending the new rates.”
Baroness Philippa Stroud, Chair of the LPC, said: “We are pleased to receive our remit from the Government. Already, since the beginning of the year, we have spent significant time speaking with workers and employers, to understand the pressures in the economy and the effects of the most recent increases in the minimum wage.We have held a successful call for evidence and received detailed submissions from all sides.
“Our recommendations on the minimum wage are always finely balanced. More than ever, it is important that we draw on first-hand evidence from those affected by our decisions.
“I look forward to working with the rest of the Commission over the autumn to reach a shared view on this evidence and deliver our advice to the Government in October”
TUC General Secretary, Paul Nowak said: “Boosting the minimum wage isn’t just good for workers – it’s good for business too. When low-paid workers have more money in their pockets they spend it locally – supporting shops, cafés and high streets.
“That’s why the government is right to set out its ambition to raise the floor of the minimum wage and end the outdated and unfair youth rates.
“The minimum wage has been one of the big success stories of the last 25 years – lifting pay at the bottom and proving the doom-and-gloom merchants wrong. But it’s important that it keep rising so that it better reflects what it actually costs to get by in Britain today.
“A bolder, more ambitious minimum wage isn’t a risk. It’s the next step in building a fairer, stronger economy where hard work is properly rewarded.”
UK Government urged to work with Scottish Government on plans
The Equalities Minister Kaukab Stewart has urged the UK Government to rethink its immigration white paper to take account of Scotland’s distinct population needs.
Following publication of new proposals from the Home Office on immigration, the Scottish Government has called on the UK Government to take account of its own proposals on immigration.
The Minister said the UK Government must engage the Scottish Government on its immigration policy, reflecting that migration enriches Scotland’s communities, supports economic growth and addresses population challenges.
Equalities Minister Kaukab Stewart said: “The UK Government’s plans on migration stand in stark contrast to our values and they do not reflect Scotland’s distinct population needs.
“The Scottish Government is proud to welcome and support people from around the world to live, work and build their lives in Scotland. Not only does migration enrich our communities and culture, it is vital for economic growth, public services like the NHS and addressing our population challenges.
“Scotland needs talented and committed people from across the world to live, work and study here without excessive barriers.
“A one-size fits all approach to immigration fails to meet the needs of Scotland and much of the UK. In particular, any plans to end international recruitment of care workers will be devastating for the care sector in Scotland and across the UK.
“We are deeply disappointed that the UK Government’s white paper on immigration fails to take on board our proposals to help meet Scotland’s distinct demographic and economic requirements.
“I call on the Home Secretary to urgently work with us to deliver an immigration system which is reflective of Scotland’s needs, and avoids the harm to our economy, communities, and public services which the policy decisions in the white paper will lead to.
“If it does not, then it becomes ever clearer that Scotland needs full powers over immigration. Independence would give Scotland control over migration policy and provide an opportunity to introduce a new, welcoming immigration system that supports our economy and public services.”
In March, the Scottish Government provided a set of policy proposals to the Home Office during development of its white paper on immigration.
The Scottish Government will shortly publish these proposals online and will write to the UK Government this week to call for meaningful discussions.
To date, there has been no substantive engagement from the Home Office on any of the policy proposals contributed by the Scottish Government during the development of the White Paper.
£42 million of export finance deals brokered with Scottish businesses over the last six months
£42 million of export finance deals brokered with Scottish businesses since July
Boosting Scottish exports plays a vital role in growing the economy, a key part of the Plan for Change
Companies from a range of sectors including food and drink and offshore wind are benefitting from credit guarantees and insurance
Businesses behind Scotland’s most emblematic exports have been able to grow thanks to £42 million in UK Export Finance (UKEF) deals brokered so far since the summer.
Enabling companies such as Ferguson Whisky and manufacturer of fire and rescue vehicles Emergency One, which the government of Iraq has contracted to replace some of its fleet of fire engines, to expand to markets abroad helps to grow the economy and create jobs, delivering on the Plan for Change.
The latest Scottish business to benefit from support is Aberdeen-based First Tech – one of many offshore services firms in Scotland driving the energy transition and making the country a world-renowned centre of engineering skills. Scotland’s marine economy generated around £4.9 billion in 2022.
UKEF is renewing a £12 million support package delivered with Virgin Money for First Tech subsidiary First Subsea, allowing it to continue its growth into the offshore wind market and provide UK-made products like cable protections systems, bend restrictor products or heavy lift connectors, across the globe.
Minister Douglas Alexander will join UKEF representatives today at the ‘Made in Scotland’ roadshow, where he will encourage Scottish businesses to take advantage of the opportunities to sell abroad and hear first-hand about the support UKEF has provided.
Minister for Trade Policy Douglas Alexander said: “Growing the economy is a key part of this UK Government’s Plan for Change, and we recognise the importance of boosting Scottish exports in achieving this.
“We’re working hard to ensure that Scottish businesses have the support they need to sell to the world and grow, and the help that UK Export Finance provides is a crucial part of this.”
Martin Suttie, First Tech Ltd Chairman said: “First Tech is very proud to be at the forefront of the energy transition story with our continued expertise in oil and gas being a launchpad to make meaningful developments in both the fixed and floating offshore wind market through First Subsea and also First Marine Solutions.
“Floating wind technology enables almost every country in the world to integrate floating wind renewable energy into their energy mix.
“It is therefore vitally important that the industry continues to develop and prove large scale commercial developments if we are going to genuinely change the energy mix around the globe. The First Tech Group is excited to play an important part in making this transition happen.”
UKEF is the UK government’s export credit agency, providing credit guarantees and insurance helping smaller businesses to overcome financial barriers to exporting.
Export credit is an integral part of the government trade support being promoted at the first ‘Made in Scotland, Sold to the World’ trade fair of 2025.
In 2021, Scotland’s exports were worth £50.1 billion, of which the majority – £33.5 billion – were goods.
UKEF’s specialised trade finance offer sits alongside other sources of support from public organisations like the Export Support Service, UK Export Academy and British Business Bank, which can offer more general access to finance.
Ofcom calls for national debate on future of UK’s postal service, as letter volumes halve since 2011
Options for reform include changing letter delivery speed or days, as other countries have done, but not downgrading delivery targets
Second Class stamps will remain affordable option as price cap continues
The universal postal service risks becoming unsustainable as people send fewer letters and receive more parcels, meaning reform is necessary to secure its long-term future, according to evidence set out by Ofcom today.
Postal services and postal workers remain essential to those who rely on them. Eight in 10 people (79%) say some things will always need to be sent by post. And three quarters of those who use postal services (74%) say they rely on the post for letters.
However, while Royal Mail’s obligations have not changed since 2011, letter volumes have halved and parcel deliveries have become increasingly important. Given the significant cost to Royal Mail of delivering the universal service, there is an increasing risk it will become financially and operationally unsustainable in the long term.
Given these challenges, Ofcom is today inviting views on a range of options for redesigning the universal postal service to secure its future, while ensuring it reflects the way people use it. Under any scenario, Royal Mail must modernise its network, become more efficient and improve its service levels.
Ofcom’s research shows that people want to get what they pay for. But people are not currently getting a reliable service because of Royal Mail’s recent poor performance, for which Ofcom fined the company £5.6m last year. We will continue to hold Royal Mail to account and expect it to turn things around as a matter of urgency.
Options for reform
At this stage, we are not consulting on specific proposals to change the universal service obligation (USO). Some of the options, which are detailed in full in our document, would require Government and Parliament to change primary legislation, while others could be made through changes to our regulations.
The two primary options we have set out are:
Making changes to existing First and Second Class and business products so that most letters are delivered through a service taking up to three days or longer, with a next-day service still available for any urgent letters.
Reducing the number of letter delivery days in the service from six to five or three. This would require Government and Parliament to change primary legislation.
Ofcom estimates that Royal Mail could achieve a net cost saving of £100m-£200m if letter deliveries were reduced to five days; and £400m-£650m if reduced to three days. If the large majority of letters were delivered within three days, it could achieve net cost savings of £150m-£650m.
Downgrading delivery targets is not an option for reform. In fact, it will be important to consider whether additional safeguards are necessary to ensure people’s needs are fully met. Any changes must improve existing levels of reliability.
Changing the specification of the universal service is likely to be preferable to using a subsidy to maintain the existing levels of service and products, given it no longer aligns with the way people use it; although this would ultimately be a decision for Government.
What do postal users want?
Fewer delivery days could still meet most people’s needs, according to what postal users have told us. Nine in 10 people (88%) say reliability is important for letter deliveries, compared to 58% for delivery on Saturdays (down from 63% in 2020).[7]
Most participants in our research were also open to reducing some services and standards – particularly for letters – in the interests of keeping prices down and only paying for what was required. Similarly, there was strong acknowledgement that most letters were not urgent, but people still needed to have a faster service available for the occasional urgent items, even if that meant paying a premium for it.
The UK is not alone in needing to respond to these challenges. Across Europe and more widely, universal postal service obligations have been, or are being, reformed. Other countries have reduced the frequency of delivery or extended delivery times for letters – including Sweden in 2018, Belgium twice since 2020, and Norway and Denmark twice each since 2016.[
Dame Melanie Dawes, Ofcom’s Chief Executive, said:“Postal workers are part of the fabric of our society and are critical to communities up and down the country. But we’re sending half as many letters as we did in 2011, and receiving many more parcels. The universal service hasn’t changed since then, it’s getting out of date and will become unsustainable if we don’t take action.
“So we’ve set out options for reform so there can be a national discussion about the future of universal post. In the meantime, we’re making sure prices will remain affordable by capping the price of Second Class stamps.”
Next steps
Ofcom is inviting views from interested parties by 3 April 2024 on their analysis and the options for reform, to understand the potential impact on people and businesses. This includes vulnerable people, those in rural and remote areas of the UK’s nations, as well as large organisations who use bulk mail services.
We will hold events in the coming months to discuss the evidence and options, bringing together a range of people and organisations with different perspectives. After carefully considering the feedback, we will provide an update in the summer.
Capping Second Class stamp prices
To make sure the universal service remains affordable, Ofcom periodically reviews whether stamp prices should be capped. In doing so, we must consider the impact of any cap on the financial sustainability of the universal service. We set our last cap in 2019 and have reviewed prices for the period April 2024 to March 2027.
Royal Mail continues to be the UK’s only door-to-door deliverer of letters on a national scale. This means we cannot rely on competition to ensure prices remain affordable.
Postal workers union CWU Deputy General Secretary Postal Martin Walsh told BBC Radio 5 yesterday that the OFCOM report ‘has turned into a shambles’.
“This OFCOM report is dead before it even comes out tomorrow. We need a proper debate on postal services that actually involves the people that keep it going – our members.”
General Secretary @DaveWardGS on Radio 5 this morning responding to the OFCOM report: “The regulator have no credit whatsoever. There is no chance postal workers of the customers will accept a 3 day USO or manipulation of the products to avoid legislation.
General Secretary @DaveWardGS on Radio 5 this morning responding to the OFCOM report.
The regulator have no credit whatsoever. There is no chance postal workers of the customers will accept a 3 day USO or manipulation of the products to avoid legislation. pic.twitter.com/yq4YbGjIAt
The UK Government has declined to give evidence to the Scottish Parliament on its UK Internal Market Bill.
The UK Government says it regrets that Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP (above) will not be able to appear before Holyrood’s Finance and Constitution Committee on account of the “tight legislative timeline” for the Bill that is currently going through Westminster.
Finance & Constitution Committee Convener Bruce Crawford MSP says he is ‘dismayed’ by the declined invitation.
The UK Government acknowledges “all aspects” of the Internal Market Bill will require the legislative consent of the Scottish Parliament.
Finance & Constitution Committee Convener Bruce Crawford MSP said:“The UK Internal Market Bill will affect many people’s lives and livelihoods in Scotland. It will also have a profound impact on the devolution settlement and on the powers of the Scottish Parliament.
“The UK Government already recognises and accepts that all aspects of this Bill require the legislative consent of the Scottish Parliament.
“I am genuinely dismayed, therefore, that the Secretary of State for Business will not make time to give evidence to our committee, as we consider whether or not to recommend that consent be given to this UK Bill.
“Our report to the Scottish Parliament will not have the benefit of direct evidence from the UK Government and that is a matter of regret, as is the discourtesy that colleagues will infer from the UK Government’s response.”
Mr Crawford added: “Under my convenership, this committee has always set out to engage constructively with the UK Government. Indeed, we will hear from Mr Hands on the Trade Bill next week.
“It is implausible why a UK Minister is available for the relatively limited impact on devolution of that Bill, while not being available for the Internal Market Bill which has a potentially huge impact on the people of Scotland.”
The text of the email from Mr Sharma’s office is below.
The declined request cites the Bill’s “tight legislative timeline”, which was set by the UK Government.
Full text of email dated 15 September 2020:
Hi (Name of Clerk to Committee),
Apologies for the delay and thank you for your invitation for the SoS to give evidence to the committee. Given the tight legislative timeline for the Bill, it is with regret that the SoS will be unable to attend this committee session. We look forward to the findings of the Committee’s engagement on the UK internal market Bill.
Thanks, (Name of Private Secretary) Office of Secretary of State for Business, Energy and Industrial Strategy, Alok Sharma MP
More on the Committee’s scrutiny of the Internal Market Bill can be found here.
Finance Ministers’ “deep concern” over UK Internal Market Bill
Spending proposals would “reverse devolution”.
Finance Ministers from Scotland, Wales and Northern Ireland have met to discuss a range of fiscal matters and voiced their collective concerns about the financial implications the UK Internal Market Bill will have on devolved governments.
Kate Forbes, Rebecca Evans and Conor Murphy expressed their joint concerns on the spending powers set out in the Bill which override the existing devolution settlement.
The powers enable the UK Government to undertake spending in devolved areas, including for replacement of EU funding, without any engagement with the devolved nations.
Finance Ministers also voiced concerns about what this could mean for future consequential funding arrangements.
Scotland’s Finance Secretary, Kate Forbes said: “It is entirely unacceptable that – with no prior notice – the UK Government has written provisions into the Bill that presume Whitehall control over the delivery of replacements for the EU funding programme in Scotland – a programme that Scottish Ministers have delivered successfully for decades.
“This Bill would also allow the UK Government to dictate how money is spent in devolved areas without the consent of Scottish Ministers. It puts at risk funding for a whole host of capital programmes – schools, hospitals and infrastructure. It reverses the devolution process and we will oppose any attempt to bypass the Scottish Parliament and Government, which are elected by the people of Scotland.
“Not only is it in contravention of the devolution settlement, but it has the potential to create confusion, duplication and unnecessary additional bureaucracy at a time when economic recovery is paramount.”
Welsh Finance Minister Rebecca Evans said: “I am deeply concerned that the Bill gives UK Ministers, for the first time since devolution, powers to fund activity in areas which are clearly devolved to Wales.
“In Wales funding decisions are taken in partnership with local communities, to ensure that they reflect the needs of the people in Wales. The powers set out in the Bill completely undermine devolution and will see decisions currently taken in Wales, clawed back by the UK Government.”
Finance Minister for Northern Ireland, Conor Murphy said: “The Internal Market Bill will give the British Government wide ranging powers to make funding decisions in devolved areas.
“This is greatly concerning and could have huge implications for the Good Friday Agreement. The British Government should not interfere in funding matters which are currently the responsibility of the Devolved Administrations.
“It is also imperative that they provide details on the scope of the Shared Prosperity Fund. This will be a vital source of replacement funding for devolved areas and the lack of meaningful engagement to date is extremely disappointing.”
