Tag: Westminster

Deal struck on a renewed Fiscal Framework for Scottish Government

  • UK Government will continue to top-up the Scottish Government’s tax revenues, worth £1.4 billion last year, as a benefit of strength and scale of the UK. 
  • Boost to borrowing powers and backing of Barnett formula will build a better future for Scotland and help to grow the economy. 
  • Chief Secretary to the Treasury John Glen hails a fair and responsible deal in line with the Prime Minister’s economic priorities. 

The UK and Scottish Governments have today reached an agreement on an updated Fiscal Framework. 

Holyrood’s capital borrowing powers will rise in line with inflation, enabling the Scottish Government to invest further in schools, hospitals, roads and other key infrastructure that will help to create better paid jobs and opportunity in Scotland.  

The new deal maintains the Barnett formula, through which the Scottish Government receives over £8 billion more funding each year than if it received the levels of UK Government spending per person elsewhere in the UK. It also updates funding arrangements in relation to court revenues and the Crown Estate.  

Chief Secretary to the Treasury, John Glen, said: “This is a fair and responsible deal that has been arrived at following a serious and proactive offer from the UK Government.  

“We have kept what works and listened to the Scottish Government’s calls for greater certainty and flexibility to deliver for Scotland. 

“The Scottish Government can now use this for greater investment in public services to help the people of Scotland prosper. These are the clear benefits of a United Kingdom that is stronger as a union.” 

The funding arrangements for tax will be continued, with the Scottish Government continuing to keep every penny of devolved Scottish taxes while also receiving an additional contribution from the rest of the UK. 

Under the previous Fiscal Framework, the Scottish Government could borrow £450 million per year within a £3 billion cap, as well as receiving a Barnett-based share of UK Government borrowing. Going forward these amounts will instead rise in line with inflation, which supports additional investment across Scotland and lays the foundations for economic growth. 

The UK Government has listened to calls from the Scottish Government for greater certainty and flexibility to help them manage their Budget and agreed a permanent doubling of the resource borrowing annual limit from £300 million to £600 million.

Limits on how much can be withdrawn from the Scotland Reserve to spend in future years will also be removed. This will boost spending through borrowing by £90 million in 2024/25. All future limits will increase in line with inflation. 

Scottish Secretary Alister Jack said:  “The renewed Fiscal Framework shows what can be achieved when there is a collaborative focus on delivering economic opportunity and why we are stronger and more prosperous as one United Kingdom.  

“The deal – worth billions of pounds to Scotland over the coming years – builds upon work to support economic growth and provide more high skill jobs, investment and future opportunities for local people, such as the establishment of Investment Zones and Freeports in Scotland. 

“The UK Government knows that high prices are still a huge worry for families. That’s why we’re sticking to our plan to halve inflation, reduce debt and grow the economy.  As well as providing targeted cost of living support, we are directly investing more than £2.4 billion in hundreds of projects across Scotland as we help level up the country.”   

As both governments continue to work together to tackle challenges like the cost of living, an updated Fiscal Framework equips the Scottish Government with the instruments for growth while protecting the wider public finances. 

Scotland’s Deputy First Minister Shona Robison said: “This is a finely balanced agreement that gives us some extra flexibility to deal with unexpected shocks, against a background of continuing widespread concern about the sustainability of UK public finances and while it is a narrower review than we would have liked, I am grateful to the Chief Secretary to the Treasury for reaching this deal.  

“As I set out in the Medium-Term Financial Strategy, we are committed to tackling poverty, building a fair, green and growing economy, and improving our public services to make them fit for the needs of future generations.

“We still face a profoundly challenging situation and will need to make tough choices in the context of a poorly performing UK economy and the constraints of devolution, to ensure finances remain sustainable.”

This morning the UK and Scottish governments have published the long-awaited update to the Fiscal Framework, following the review that has been going on for the last couple of years (writes MAIRI SPOWAGE of the Fraser of Allander Institute).

Since this was due to happen in 2021, we have been waiting for the outcome of this review. For more background, see our blog from late 2021.

For those new to it, the Fiscal Framework sets out the rules for how devolution of tax and social security powers following the Scotland Act 2016 is supposed to work in terms of finances. It sets out the mechanisms by which the Scottish block grant is adjusted to reflect the fact that large amounts of tax and social security powers are now the responsibility of the Scottish Parliament.

It also sets out fiscal flexibilities that the Scottish Government can choose to use in managing these new powers, as new tax and social security powers also come with risks that require to be managed.

In this blog, we set out the main headlines and our initial reaction to the updates.

The mechanism for adjusting the Block Grant will remain permanently as the Index Per Capita (IPC) method.

This is one of the most complex areas of the fiscal framework but definitely one of the most significant.

For tax, it sets out the mechanism for working out how much the UK Government has “given up” by devolving a tax to Scotland, given that it is a significant loss in revenue. As, following devolution, there are different policies pursued in rest of UK and Scotland, this is not straightforward. Essentially though, the mechanism agreed in 2016 was to grow the tax at the point of devolution at the rate, per person, that it grows in the rest of the UK. This is known as the Index Per Capita (IPC) method.

So, the idea is that if taxes per head grow quicker in Scotland, the Scottish Budget will be better off – conversely, if taxes per head grow more slowly, the Scottish Budget will be worse off.

In 2016, when the fiscal framework was first agreed, the IPC method was the SG’s preference, whereas the UKG preferred the “Comparable Method” (which would generally be worse than the IPC method for the Scottish Budget). SO they agreed to use IPC for the first 5 years and review it in this review published today.

They have now agreed that the IPC method will remain on a permanent basis.

Interestingly, this means that on a permanent basis, the mechanisms for adjusting the block grants for Wales and Scotland will be different, given Wales’s Fiscal Framework uses the Comparable Method, albeit with additional provisions to keep a funding floor in place.

Borrowing Powers for managing forecast error have been increased significantly

Resource borrowing powers to manage forecast error associated with tax and social security powers have been increased from £300m to £600m. This is required because when budgets are set, the tax, social security and block grant adjustment estimates are set on the basis of forecasts from both the Scottish Fiscal Commission and the Office for Budget Responsibility. When the outturn data is available, if there is a discrepancy (which is very likely) then the Scottish Budget has to reconcile these differences.

This will be good news for the Deputy First Minister looking ahead to delivering her first budget in December, given that it was confirmed recently that there will be a large negative reconciliation to reflect income tax receipts in 2021-22 of £390m. As these changes are coming into effect for the 2024-25 budget year, this means she will have more flexibility to borrow to cover this.

All limits, such as resource and capital borrowing powers, will be uprated in line with inflation

When the Fiscal Framework was first agreed, the limits on borrowing for both resource and capital, and the limits for what could be put into the Scotland reserve, were set in cash terms and have been fixed ever since.

This agreement today sets out that the ones that remain will be uprated by inflation (although the exact inflation measure and timing is still to be confirmed), and that the limits on the additions and drawdowns on the Scotland Reserve will also be abolished.

The VAT Assignment can gets kicked down the road again

One thing that is a little disappointing is that there was no final decision on VAT Assignment. See our blog from 2019 to get the background in this.

VAT Assignment was included as part of the Smith Commission powers. The idea was that half of VAT raised in Scotland would be assigned to the Scottish Budget, which would mean, if the Scottish Economy was performing better than the UK as a whole, the budget would be better off, and conversely, if VAT was growing less quickly in Scotland, the budget would be worse off.

However, after almost 10 years, it has become clear that there is no way to estimate VAT in Scotland that is precise enough for this to have budgetary implications. It is a large amount of money (more than £5 billion) so even small fluctuations in how it is estimated can mean changes of hundreds of millions of pounds.

Today, the Governments have agreed to just keep discussing it. We think it is time that everyone admitted it is just not a sensible idea.

We’ll keep digging through the detail of everything published today and will provide more commentary through our weekly update on Friday.

‘Polluters must pay’ says Environment Secretary

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.

Inaugural National Drowning Report launched today

The UK National Drowning Report from the Water Safety All Party Parliamentary Group (APPG), authored by RLSS UK and supported by the National Water Safety Forum (NWSF), has launched today.

The report will be shared with MPs at Westminster this evening as representatives from the Royal Life Saving Society UK (RLSS UK) to launch the National Drowning Report during their annual Drowning Prevention Week campaign. 

The launch event, sponsored by TWF (The Wetsuit Factory), will see RLSS UK Charity Director, Lee Heard talk through the report findings, highlighting to MPs the recommendations of the report to move forwards with drowning prevention.

Former professional swimmer and Speedo ambassador, Michael Gunning will also be in attendance and is due to speak about his challenges within the aquatics community.

MPs will also have the opportunity to meet with organisations who contributed to the report such as RNLI, Speedo, Water Babies, RoSPA, the National Child Mortality Database (NCMD), the Maritime Coastal Agency (MCA), amongst other key organisations in the industry.

Water Safety APPG chair Giles Watling is due to open the launch event.

The report provides a real picture of accidental drownings in the UK and uses data from the Water Accident Incident Database (WAID) and other data sources to provide the UK Government with evidence backed data on why the approach to drowning prevention needs to be improved. 

National-Drowning-Report-UK-2022Download

Lee said: “We are looking forward to being at Westminster this evening to launch the inaugural National Drowning Report. The report demonstrates not only the great work which is already being done to combat accidental drowning, but provides a clear picture of where improvements can be made. 

“We are hoping to meet with many MPs this evening in a bid to highlight the importance of water safety education in the hope they return to their own constituencies with a plan to begin thinking of how they can improve education and awareness around the UK.”

“The report has been launched during RLSS UK’s Drowning Prevention Week campaign, and therefore helps amplify the messages we have been sharing this week in a bid to reach even more children and their families than ever to provide them with free water safety education ahead of the summer holidays.”

To view the report visit www.rlss.org.uk/national-drowning-report-uk. 

Drowning Prevention Week provides free resources to families to provide education for all. Visit www.rlss.org.uk/DPW for further information.

No case for routinely offering asylum to claimants from ‘safe’ Albania

A report published today by the Home Affairs Committee has found little evidence to indicate significant numbers of Albanian nationals are at risk in their own country and require asylum in the UK.  

However, some Albanian citizens making asylum claims will have been trafficked, and women are disproportionately at risk from this form of crime. The UK has an obligation to support trafficking victims and they should only be returned to Albania if appropriate safeguards are in place. 

In 2022, more than a quarter of the 45,755 people who crossed the Channel in small boats came from Albania and most claimed asylum. In one year the number of Albanians arriving in the UK by this route had gone from 800 to 12,301, a rise that was both unexpected and unexplained. 

Albania is a safe country, it is not at war and is a candidate country to join the European Union. There is no clear basis for the UK to routinely accept thousands of asylum applications from Albanian citizens, the Committee finds. 

However up to June 2022, 51% of asylum claims from Albania were initially accepted, a rate far higher than many comparable European nations. Nine countries, including Germany, accepted no asylum claims from Albania. The Home Office must explain why the UK’s acceptance rate was so high, particularly compared to other countries. It must also explain why the acceptance rate is substantially higher for women (88%) than for men (13%). 

Maintaining positive relations with the Albanian Government should also be a key priority to ensure that the UK can return irregular migrants and offenders from UK prisons. Politicians, commentators and others should be careful to show restraint in their language and not single out Albania as the sole cause of the UK’s asylum pressures. 

The report focusses on Albania due to the unexpected spike in small boat crossings and asylum claims by Albanian nationals in 2022. However, the Committee finds that it should not be singled out and scapegoated in relation to the UK’s ongoing asylum backlog or overcrowding at immigration processing centres.

The Prime Minister has committed to clearing the backlog by the end of the year and the Home Office needs to set out how it plans to achieve this. The Government should also provide quarterly progress reports, including information on the number of pending claims in the backlog, staffing levels for asylum caseworkers numbers and the number of asylum decisions made per week. 

A key driver of migration from Albania to the UK is economic. People are prepared to make the journey, even in dangerous small boat crossings, for improved job prospects and higher incomes. The desire to come to the UK will continue until Albania become wealthier. 

Improved awareness of work visa programmes would support formalised migration to the economic benefit of the UK and Albania, providing an alternative to people smuggling gangs and reducing the burden on the asylum system. 

Only 325 work visas were granted to Albanian nationals in the first nine months of 2022, with evidence submitted to the inquiry arguing that a perceived difficulty in obtaining work in the UK through legal means could be driving people towards clandestine migration routes.

The Committee finds that more should be done to promote the availability of visas that would fill worker shortages in the UK economy and enable some transfer of wealth back to Albania. This would include short-term or seasonal work in sectors such as construction or agriculture. 

Home Affairs Committee Chair, Dame Diana Johnson MP, said: “Such a substantial sudden increase in asylum claims from a seemingly peaceful country understandably raised concerns.

“While it is important that questions are asked and lessons are learnt, it is clear that the immigration picture is not static and will continue to evolve. New challenges are likely to continue to emerge and it is important that the UK improves its overall approach to asylum, rather than focus on one country. 

“Changes in migration will inevitably place strain on any system, but the Government must do much more to ensure it can better handle these stresses. Most importantly it must improve the speed of decision making and clear the backlog as we set out in our Channel Crossings report in 2022. We expect the Home Office to set out how it plans to achieve this. 

“People will continue to be attracted to the UK from Albania while it continues to offer job opportunities and higher wages. The UK should look at how access to work visa schemes can be improved to fill our skills or staffing gaps, while offering Albanian nationals a route to higher income, benefiting both nations.” 

MP calls for Immigration powers to be devolved to Holyrood

TORIES ‘FAILING’ VULNERABLE UNACCOMPANIED ASYLUM-SEEKING CHILDREN 

Deidre Brock MP will use a House of Commons debate today to call on the UK government to devolve immigration powers to the Scottish Parliament so Scotland can create an asylum system based on fairness and dignity.

Leading a Westminster Hall debate, the Edinburgh North & Leith MP will argue that the Tories are failing to protect vulnerable, unaccompanied children seeking asylum in the UK. 

She will also outline how the Illegal Migration Bill will make the situation even worse for children who have been separated from their parents and how it significantly encroaches on devolved powers.

Commenting, Deidre Brock MP said: “The Tories have utterly failed in their duty to safeguard the wellbeing of vulnerable unaccompanied children seeking safety and refuge in the UK. 

“Hundreds of children have gone missing from Home Office run-hotels, sparking condemnation from the UN that the UK Government is failing in its obligations to prevent the trafficking of children. 

The Illegal Migration Bill will make the situation even worse as the door will be slammed in their faces when they arrive in the UK to seek sanctuary.

“I am proud that Scotland has played its part in welcoming refugees who are desperate to rebuild their lives. However, powers still lie with the UK government and their hostile environment policies. Creating safe and legal routes is the only realistic way to disrupt the business model human traffickers use to exploit already vulnerable people.

“Power over immigration should be devolved to the Scottish Parliament so we can build an immigration system that works for Scotland and an asylum system with compassion and respect.”

New blueprint to protect public from scammers

UK Government launches new strategy to cut fraud, pursue fraudsters and empower the public

A new elite team of specialist investigators will turn the tables on fraudsters as part of the UK Government’s new action to tackle fraud and stop scammers from exploiting people.

The new National Fraud Squad will overhaul how these crimes are investigated by taking a proactive, intelligence-led approach, backed by 400 new specialist investigators. It will work with local forces, international partners and the UK intelligence community to ensure that callous fraud cells who target millions of Brits each day are shut down.

Fraud is now the most common crime in the UK, with 1 in 15 of us falling victim, costing nearly £7 billion a year. With developments in modern technology opening up new avenues for criminals to target victims, 9 in 10 internet users have also encountered online scams.

The Fraud Strategy, unveiled yesterday, marks a step forward in the government’s fight back against scammers, in response to how these crimes have evolved.

New measures will close the routes that scammers use to target victims, including by banning cold calls on all financial products – such as types of insurance or sham crypto currency schemes – and working with Ofcom to use new technology to further clamp down on number ‘spoofing’, so fraudsters cannot impersonate legitimate UK phone numbers.

Government will also ban other devices or methods commonly harnessed by scammers to reach thousands of people at once such as so-called ‘SIM farms’ and review the use of mass texting services to keep these technologies out of the hands of criminals.

To make it easier for victims to report fraud and rebuild confidence that cases are being dealt with properly, a new system, replacing the current Action Fraud service will be up and running within the year.

Backed by a £30 million investment, it will provide a simpler route for reporting fraud online, with reduced waiting times and an online portal to allow victims to get timely updates on the progress of their case.

This improved service will also ensure victims’ reports are acted upon more effectively, using data to ensure we can continue to build intelligence as criminals continue to find new ways to target victims.

Seventy per cent of fraud in the UK either starts overseas or has an international link – to drive forward global efforts to tackle these crimes, the government will work bilaterally to raise fraud as a key priority. The Home Secretary will host the first global fraud summit in the UK to guarantee international collaboration to tackle this threat.

Prime Minister Rishi Sunak said: Scammers ruin lives in seconds, deceiving people in the most despicable ways in order to line their pockets.

“We will take the fight to these fraudsters, wherever they try to hide. By blocking scams at the source, boosting protections for people and bolstering enforcement, we will stop more of these cold-hearted crimes from happening in the first place and make sure justice is done.”

Home Secretary Suella Braverman said: “Fraud is a blight on our country with ruthless criminals scamming the British public out of their hard-earned cash. They exploit people’s trust and steal their life savings, shattering their confidence and leaving them feeling vulnerable.

“It also fuels serious organised crime and terrorism. Meanwhile scammers are adapting, taking advantage of new technology to prey on more victims.

“It is vital we adopt a new approach to this threat. The Fraud Strategy outlines how we will use all levers available to us – through government, law enforcement, industry and international partners – to track down these criminals, intercept their scams and bring them to justice.”

To push the response to fraud at the highest level, a new Anti-Fraud Champion, Anthony Browne MP, has been appointed. He will draw on his considerable experience as the former CEO of the British Banking Association to drive collaboration with industry and represent the UK internationally.

Anti-Fraud Champion, Anthony Browne MP said: “Fraud has grown to be the biggest form of crime in the UK, causing financial and emotional distress to millions of people.

“The tech sector, phone companies and financial services firms must take responsibility for protecting their users by stopping fraud happening in the first place, and work together to design out fraud. We can use the technologies fraudsters are exploiting against them to stop them in their tracks, and I will work with industry to make sure that happens.”

In plans announced yesterday, banks will be allowed to delay payments from being processed for longer to allow for suspicious payments to be investigated, keeping cash out of the hands of fraudsters and stopping more people from falling victim.

We are working with the largest tech companies to make it as simple as possible to report fraud online, whether it be scam adverts or false celebrity endorsements. This means, regardless of which social media platform you are on, you should be able to find the ‘report’ button within a single click, and ‘report fraud or scam’ within another. TikTok and Snapchat already offer this for adverts but have committed to extending to other types of content.

Further measures include:

  • rolling out tailored support to victims at a local level across the whole of England and Wales through the National Economic Crime Victim Care Unit
  • launching an independent review of the challenges in investigating and prosecuting fraud to speed up the justice process, punishing more scammers and ensuring sentences match the severity of the impact on victims
  • deploying the UK intelligence community to identify and disrupt more fraudsters overseas
  • publishing regular data on the volume of fraudulent content hosted on different websites and platforms to incentivise companies to root these out and better protect users – government will launch a consultation on how best to deliver this, including regularity of publications

Wednesday’s plans build on action already taken to step up protections for victims and clamp down on the criminals responsible for these crimes. That includes:

  • legislating to ensure more victims of fraud get their money back, by requiring financial institutions to reimburse victims of authorised fraud
  • making fraud a national priority for police forces, to help ramp up the response at local force level
  • investing £400 million for law enforcement to tackle economic crime, including fraud, over the next 3 years
  • new duties on tech companies through the Online Safety Bill to put systems in place to tackle scams on their platforms and publish annual transparency reports on their work to tackle online harms

Graeme Biggar, Director General of the National Crime Agency, said: “The NCA welcomes the new Fraud Strategy and our role in the National Fraud Squad.

“Through the National Economic Crime Centre, we will drive a proactive intelligence led response, holding fraudsters to account and protecting the public from criminals who operate increasingly online and overseas.

“We want fraudsters to feel the same vulnerability they inflict upon their victims, as we target their infrastructure, expose their identities and bring them to justice.”

Commissioner Angela McLaren from the City of London Police, which is the National Lead Force for fraud, said: “We welcome this strategy and the much-needed investment in policing to deliver against it. 

“Tackling fraud requires a collective effort and we will continue to work with our partners across law enforcement and industry, doing everything in our power to pursue fraudsters and reduce the devastating harm they cause.”

Bury The Hatchet: Lords Committee calls for UK-EU relations reset after years of tension and mistrust

The European Affairs Committee has published a report on the UK-EU relationship

The report is based on an inquiry undertaken between July 2022 and March 2023. The inquiry involved 12 oral evidence sessions, with a total of 43 witnesses, as well as 58 written submissions.

The report examines the overarching state of the post-Brexit relationship between the UK and EU, and how this might be developed in the future, across four themes:

  • The overall political, diplomatic and institutional relationship;
  • the foreign policy, defence and security relationship;
  • energy security and climate change; and
  • mobility of people.

After years of tension and mistrust, recommendations focus on actions to be taken as a priority as part of a reset of UK-EU relations following the recent agreement of the Windsor Framework.

The Committee’s key findings and recommendations are as follows:

The political, diplomatic and institutional relationship

  • The opportunity the recent improvement in the mood around UK-EU relations this presents for a reset of UK-EU relations should, following years of tension and mistrust, must be grasped.
  • There should be a considerable increase in engagement between the UK and the EU. This should include greater use of existing institutional structures such as the TCA Specialised Committees. There would also be value in holding regular UK-EU summits. The UK’s participation in the new European Political Community is welcome.

The foreign policy, defence and security relationship

  • Cooperation between the UK and the EU has been close and productive in response to the Russian invasion of Ukraine. Nevertheless, the ad hoc approach to sanctions coordination with the EU should be replaced by a more formal mechanism.
  • The Government’s decision to participate in the Military Mobility project under the EU’s Permanent Structured Cooperation (PESCO) is welcome. It should consider future opportunities for defence cooperation with the EU that are complementary to NATO as they arise.
  • The Government should approach the EU with the aim of establishing appropriate structured cooperation arrangements on external affairs.

Energy security and climate change

  • Energy trading between the UK and the EU has continued without much disruption despite the energy security challenges experienced in Europe following Russia’s invasion of Ukraine. However, an agreement should be reached to guarantee that energy flows can continue in the event of a critical supply shortage.
  • The UK and the EU should cooperate closely on the installation of additional interconnectors, including in the North Sea, which are needed to ensure future energy security.
  • There would be mutual benefits to be gained from the UK and the EU linking their respective Emissions Trading Schemes and the Government should approach the EU about this possibility. The Government should also engage closely with the EU in relation to the latter’s proposal for a Carbon Border Adjustment Mechanism (CBAM).

Mobility of people

  •  The end of free movement of people between the UK and the EU has had a major impact on business and professional travel. Government guidance on business and professional mobility should be made more straightforward to navigate and interpret.
  • The substantial decline in school visits from the EU to the UK since 2019 is regrettable. To address this the Government should reintroduce a youth group travel scheme that would not require pupils travelling on school visits from any EU country to carry individual passports.
  • Post-Brexit barriers to mobility have had a disproportionate impact on younger people. The Government should approach the EU about the possibility of entering an ambitious reciprocal youth mobility partnership, similar to existing schemes with other jurisdictions such as Australia and Canada.

Lord Kinnoull, Chair of the Committee, said: “The UK’s post-Brexit relationship with the EU has regrettably come under significant strain over the period since the TCA came into force, characterised by tension and mistrust.

“While the recent change in mood for future UK-EU relations following the announcement of the Windsor Framework is welcome, there is now the opportunity to move the relationship forward to the mutual benefit of both the UK and the EU.

“A particular theme running through our Future UK-EU Relationship report evidence was the significant impact of post-Brexit barriers to mobility young workers and professionals in the early stages of their careers, emerging artists, as well as students across different educational levels. Making progress here will benefit all in the short term but especially in the long term.

“The Committee feels that it is now time to address the considerable lack of structure in the foreign policy, security and defence relationship. Here we particularly recommend means of seeking to make sanctions bite harder through analysis and enforcement cooperation.

“Another area we looked into was energy. Here again we have made many recommendations which will help our long term energy security.

“We have also made a number of recommendations about the current institutional relationship and how improvements can be made”.

Does the Civil Service need reforming? MPs launch new inquiry

The Public Administration and Constitutional Affairs Committee has launched a new inquiry into the relationship between ministers and officials and whether Government’s engine room still functions as intended.

Several high-profile dismissals of senior civil servants by ministers as well as criticisms of Civil Service impartiality and competence during the Brexit process and Covid-19 pandemic indicate a fundamental tension in relations between the Government and the Civil Service.

MPs are seeking evidence on whether civil servants feel confident in giving honest advice to ministers, the role of ministers and Civil Service leadership in creating an environment where officials can “speak truth to power” and if not, the consequences this has on good policymaking.

In a recent evidence session, Cabinet Secretary Simon Case highlighted how officials face a challenge managing the “juxtaposition” in the Civil Service Code between the “duty to support the Government of the day to the best of your ability and upholding the values” of an independent and impartial Civil Service.

MPs will examine whether the role of Cabinet Secretary is sufficiently empowered to effectively lead the Civil Service, where accountability lies in policymaking, and whether Ministers’ role in the hiring, firing, and promotion of Civil Service leaders is appropriate and conducive to effective government.

William Wragg MP, Chair of PACAC, said:  “It is a fundamental principle that the Civil Service serves the government of the day, yet growing tensions between ministers and their officials and public criticisms of Civil Service impartiality and competence have called into question the efficacy of the Westminster model.

“Events such as the Covid-19 pandemic response and Brexit, as well as high-profile dismissals of Civil Service leaders, have raised questions about where accountability lies in Government, but also the integrity of our public administration machine.

“Our inquiry aims to understand how the Civil Service leadership operates today, how the Government’s interaction with officials may have deviated from established practice, and, ultimately, whether our public administration still serves its intended purpose or whether it is in need of reform.”

Terms of reference

The Committee welcomes submissions by 5pm on Friday 16 June addressing any or all of the following questions on:

The status and constitutional position of the Civil Service, including: 

  1. The extent to which the established values of the Civil Service, enshrined in the Civil Service Code, continue to determine the conduct of Officials and are respected by the governments they serve.
  2. Whether the Civil Service feels sufficiently confident or empowered to give honest advice to Ministers and ‘speak truth to power’, and if not, what the consequences are for policy making and governance. To what extent does the Civil Service leadership have responsibility for ensuring that an environment exists where officials do feel empowered to give candid advice?
  3. What responsibility does the Civil Service have for ensuring constitutional propriety in the conduct of government?

Civil Service Leadership 

  1. What constitutes good leadership in the Civil Service?
  2. As the Head of the Civil Service, is the Cabinet Secretary sufficiently empowered to lead the Civil Service and how far is the Civil Service Board equipped to provide effective leadership?
  3. The extent to which the Civil Service has an obligation to enhance its capability and, if so, whether that can be exercised unless such an obligation also applies to governments. Should any such stewardship obligation be formalised?
  4. Whether Ministers’ current role in the hiring, firing, and promotion of Civil Service leaders is appropriate and conducive to effective government. 

Policymaking  

  1. Is the respective accountability of Ministers and Officials for policy formulation and delivery sufficiently clear and, if not, how might it be made more so? 
  2. Is the current system of Ministerial Directions effective and sufficient?
  3. In all of these areas, are there lessons from other countries that the UK can useful adopt?

The impact of the UK’s exit from the European Union to be debated by MPs

On Monday 24 April, MPs will debate a petition relating to the impact of the UK’s exit from the European Union.

Martyn Day MP, a member of the Petitions Committee, has been asked by the Committee to open the debate. MPs from all parties can take part, and the Government will send a minister to respond.

We call upon the Government to hold a Public Inquiry into the impact of Brexit

The petition, which has more than 137,000 signatures, states: “The benefits that were promised if the UK exited the European Union have not been delivered, so we call upon the Government to hold a Public Inquiry to assess the impact that Brexit has had on this country and its citizens.”

In its response to the petition, provided on 5 December 2022, the Government said: “The UK’s departure from the EU was a democratic choice and the UK-EU institutions are functioning as intended. The Government does not believe this to be an appropriate subject for a public inquiry.”

What are petitions debates?

Petitions debates are ‘general’ debates which allow MPs from all parties to discuss the important issues raised by one or more petitions, and put their concerns to Government Ministers.

Petition debates don’t end with a vote to implement the request of a petition. This means MPs will not vote on whether to hold a public inquiry into the impact of the UK’s exit from the European Union.  

Petition debates are scheduled by the Petitions Committee. Only e-petitions started on the parliament petitions site are considered by the Petitions Committee.

Benefits health assessments system continues to let people down, say MPs

The health assessments system to access vital benefits for those who cannot work or face extra costs due to disability or ill-health continues to let down those who rely on it, according to Westminster’s Work and Pensions Committee.

In its latest Report, the Committee calls for the implementation of several measures that would be relatively quick and easy wins to improve trust, drive down the high rate of decisions reversed on appeal and reduce waiting times.

It says assessments should be recorded by default, with claimants having the option to opt-out, adding that footage could be used to review cases more accurately without having to go to appeal, and help assessors learn from past mistakes.

Some of the improvements the Committee suggest could drive down the high rate of decisions reversed on appeal, which still stands at 69% for Personal Independence Payment (PIP). Although the Work Capability Assessment used for Universal Credit and Employment and Support Allowance is due to be abolished, it will remain in place until at least 2026. Meanwhile, PIP assessments will continue, so retaining the status quo is not an option.

MPs on the Committee also recommended allowing claimants to choose between remote or in-person assessments, extending the deadline to return forms, targets to reduce assessment waiting times, and payments to people who have been forced to wait beyond the new targets.

The predecessor Committee originally published a report on significant problems in assessments in 2018, but many of the recommended changes have not been made.

Committee Chair Sir Stephen Timms MP said: ““We surveyed eight and a half thousand people as part of our inquiry and found a profound lack of trust in the system as a consistent theme.

“Many will welcome abolition of the Work Capability Assessment.  The Government’s process improvements, and recognition that the system causes undue stress and hardship, are steps in the right direction.

“However, waiting years for changes won’t cut it when quicker wins are available:  flexibility of choice on assessment by phone or face-to-face; recording assessments by default; extending deadlines to reduce stress; and sending claimants their reports. All this will give much-needed transparency to a process that so few trust yet affects their lives so fundamentally.

“All efforts must be made for unnecessary limbo and stress for claimants to be put to an end.”

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