Written Statements
Monday 2 September 2024
Business and Trade
Exports to Israel: Military Operations in Gaza
The UK Government have been absolutely clear that Israel must, in taking military action to support its legitimate right to self-defence, do so while adhering to international humanitarian law.
Following a rigorous process in line with the UK’s legal obligations, the UK Government have concluded that there is a clear risk that military exports to Israel, where used for military operations in Gaza, might be used in serious violations of international humanitarian law. To continue to permit these exports would therefore be inconsistent with our strategic export licensing criteria.
The Foreign Secretary has now considered detailed assessments and has determined that, while Israel has the capability to comply with international humanitarian law and the most senior Ministers and officials have affirmed Israel’s commitment to do so, there are significant doubts about its record of compliance. Consequently, he has advised me that there is a clear risk that some UK exports to Israel might be used to commit or facilitate a serious violation of international humanitarian law.
A thorough process has now been followed and the summary of the Government’s assessment is being published.
I have therefore instructed officials to suspend licences for exports to Israel, where we have assessed those items are for use in military operations in Gaza. This includes approximately 30 export licences for items which could be used in the current conflict. This includes components for fighter aircraft—F-16s—parts for unmanned aerial vehicles, naval systems, and targeting equipment.
The Government condemned Hamas’ barbaric attack on 7 October and supports Israel’s right to defend itself in line with international law. The Government are also working intensively with international partners to encourage wider regional de-escalation in the context of recent events.
This is not a blanket ban, but targets relevant licences that could be used in military operations in Gaza. Assessments of Israel’s commitment to international humanitarian law will continue, including with regard to the provision of food and medical supplies to civilians in Gaza and the treatment of detainees, and may change over time to allow reinstatement of these licences.
Affected exporters will be notified of that suspension.
The UK stresses that there is no equivalence between Hamas terrorists and Israel’s democratic Government. The UK remains committed to supporting Israel’s self-defence. But to license arms exports to Israel, the UK must assess their compliance with international humanitarian law, notwithstanding the abhorrence of their opponents’ tactics and ideology.
In the context of this suspension, I have also considered the particular issue of the F-35 strike fighter programme. I am grateful to the Defence Secretary for his advice on this issue.
The F-35 is an aircraft that operates globally, forming a key capability in the militaries of many of our allies.
The F-35 programme has a significant dependence on the UK, which provides unique and critical components. Due to the nature of the F-35 as an international collaborative programme, it is not currently possible to suspend licensing of F-35 components for use by Israel without prejudicing the entire global F-35 programme, including its broader strategic role in NATO and our support to Ukraine. This Government have an unwavering commitment to the security not just of this country but to our allies around the world, especially at a time when we face increased global insecurity and volatility.
In this context, with a view to ensuring international peace and security, exports to the global F-35 programme will be excluded from this suspension decision, except where going direct to Israel. This is in line with the written ministerial statement that issued the strategic export licensing criteria on 8 December 2021, which provided that application of the criteria would be without prejudice to the application to specific cases of specific measures as may be announced to Parliament from time to time. This will be kept under review.
The UK continues to call for an immediate ceasefire to the conflict in Gaza, the release of all hostages and a significant increase in the amount of aid to civilians in Gaza.
The Foreign Secretary and I will provide further updates to Parliament as appropriate.
[HCWS64]
UK Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership: Entry into Force
The comprehensive and progressive agreement for trans-Pacific partnership is set to enter into force for the UK by 15 December 2024. This follows Peru’s ratification of the UK’s accession protocol to the agreement.
The accession protocol sets out that the agreement will enter into force for the UK 60 days after all parties and the UK have each notified the CPTPP depositary. Notification would follow the completion of relevant domestic procedures. However, after 15 months have passed since signature (which falls in mid-October 2024), the mechanism changes and the protocol can enter into force 60 days after a minimum of six parties and the UK have each notified. If at least six parties and the UK have already notified within 15 months of signature, entry into force would take place 60 days after the October date. Given that Peru is the sixth party to notify its ratification, we currently expect the UK’s accession to CPTPP to enter into force by 15 December 2024.
Before Peru, five other CPTPP parties had already ratified the terms of the UK’s accession, including Japan, Singapore, Chile, New Zealand and Vietnam. This means that the agreement will come into force between the UK and those parties by the end of the year, and with other parties depending on when they ratify. The UK continues to work closely with remaining parties, who are completing their own processes as quickly as possible.
This Department is helping British businesses ready themselves to take full advantage of the opportunities CPTPP presents. As the first country to accede to this agreement, the UK will be perfectly positioned to shape its future development, from influencing the future development of the CPTPP rulebook to championing the group’s expansion to new economies.
[HCWS56]
UK-Ukraine Digital Trade Agreement: Entry into Force
I am pleased to announce that the UK-Ukraine digital trade agreement entered into force on 1 September, following the completion of the necessary domestic procedures on both sides. This historic trade agreement will help Ukraine rebuild its economy and support livelihoods following Russia’s illegal invasion.
This is the deepest digital trade agreement that the UK has negotiated. Digital trade is rapidly becoming the dominant form of trade. Seizing the opportunities in this area is fundamental to our prosperity. UK and Ukrainian businesses of all shapes and sizes, and across all sectors of the economy (whether trading in goods or services), will benefit from the agreement.
Ukraine’s recovery from Putin’s illegal and barbaric war will be a symbol of the power of freedom and democracy over autocracy. Our DTA with Ukraine creates a digital UK-Ukraine free trade agreement by modernising our bilateral trade in the digital era and deepening our economic ties with Ukraine.
Greater digitalisation of the economy is a key priority for President Zelensky’s Government. This agreement will boost productivity, jobs and growth, and allow us to help Ukraine deliver on their digital ambitions by:
Ensuring open digital markets, including through commitments such as a ban on imposing customs duties on electronic transmissions.
Supporting cross-border data flows, including financial data, and prohibiting the unfair imposed localisation of data as well as committing to high standards of personal data protection.
Championing digital trading systems to cut red tape and make trade cheaper, faster, and more secure for Ukraine and UK businesses.
Upholding consumer benefits and business safeguards in trade, including cyber-security and online consumer protection.
This agreement further cements the UK’s commitment to stand shoulder-to-shoulder with Ukrainian allies in response to the ongoing conflict and play our part in securing Ukraine’s future as a prosperous, stable and democratic partner in Europe. I hope the House will join me in celebrating this important milestone for UK and Ukrainian businesses.
[HCWS59]
Cabinet Office
UK Covid-19 Inquiry Response Costs: Quarter 1 2024-25
The covid-19 pandemic impacted each and every person in the UK. The work of the UK covid-19 inquiry is crucial in examining the UK’s response to and impact of the covid-19 pandemic. There are evidently lessons to be learned from the pandemic and the Government are committed to closely considering the covid-19 inquiry’s findings and recommendations, which will play a key role in informing the Government’s planning and preparations for the future.
The Government recognise the unprecedented and wholly exceptional circumstances of the pandemic, and the importance of examining as rigorously as possible the actions the state took in response, in order to learn lessons for the future. The inquiry is therefore unprecedented in its scope, complexity and profile, looking at recent events that have profoundly impacted everyone’s lives.
The independent UK covid-19 inquiry publishes its own running costs quarterly. Following the publication of the inquiry’s financial report for quarter 1 2024-25 on 29 July 2024, I would like to update colleagues on the costs to the UK Government associated with responding to the UK covid-19 inquiry.
Figures provided are based upon a selection of the most relevant Departments and are not based on a complete set of departmental figures and are not precise for accounting purposes. Ensuring a comprehensive and timely response to the inquiry requires significant input from a number of key Government Departments, including, but not limited to, the Cabinet Office, the Department for Health and Social Care, the UK Health Security Agency, the Home Office and HM Treasury, many of which are supported by the Government Legal Department. While every effort has been made to ensure a robust methodology, complexities remain in trying to quantify the time and costs dedicated to the inquiry alone.
It should be noted that alongside full time resource within Departments, inquiry response teams draw on expertise from across their organisations. The staff costs associated with appearing as witnesses, preparing witnesses and associated policy development work on the covid-19 inquiry are not included in the costs below.
Breakdown of staff & costs
The Government’s response to the UK covid-19 inquiry is led by inquiry response units across Departments.
Number of UK covid-19 inquiry response unit staff: 280 full time equivalents (Q1).
Cost of UK covid-19 inquiry response unit staff: £5,049,000 (including contingent labour costs) (Q1).
Total inquiry response unit legal costs
Inquiry response units across Government Departments are supported by the Government Legal Department, co-partnering firms of solicitors, and legal counsel. These associated legal costs (excluding internal departmental advisory legal costs) for April-June 2024 are below.
Q1 legal costs: £4,236,000.
[HCWS53]
Foreign, Commonwealth and Development Office
FCDO Services’ Ministerial Targets 2024-25
FCDO Services operates as a trading fund of the Foreign, Commonwealth and Development Office. I have set the following performance targets for 2024-2025:
An in-year surplus before interest, tax and dividend;
Achievement of the return on capital employed of at least 6.5% (weighted average);
A productivity ratio of at least 82%, measuring actual billable hours versus available billable hours;
An in-year customer satisfaction rating average of at least 82;
An average Civil Service People Survey score for “Employee Engagement” of at least 61%; and
An average Civil Service People Survey score for “My Manager” of at least 65%.
FCDO Services will report to Parliament on its success against these targets through its annual report and accounts for 2024-2025.
FCDO Services is a trading fund of the FCDO. It provides a range of integrated, secure services worldwide to the FCDO and other UK Government Departments, supporting the delivery of Government agendas. Services include protective security, estates and construction, cloud computing, communications and monitoring, logistics, translation and interpreting. This is combined with a portfolio of global maintenance work. FCDO Services also manages the UK National Authority for Counter-Eavesdropping, helping protect UK assets from physical, electronic and cyber-attack.
[HCWS61]
Education
Opportunity Mission: Education Reforms
With immediate effect, single headline grades will no longer be issued by Ofsted when it inspects state-funded schools, to drive high and rising school standards for children and increase transparency for parents.
For state-funded schools inspected in the 2024-25 academic year, parents will see four grades across the existing sub-categories: quality of education, behaviour and attitudes, personal development, and leadership and management.
The change delivers on the Government’s mission to break down barriers to opportunity and demonstrates the Prime Minister’s commitment to improve the life chances of young people across the country.
Where schools are identified as struggling, Government will prioritise rapid planning and action to improve the education and experience of children, rather than relying purely on changing schools’ management.
The reform paves the way for the introduction of school report cards from September 2025, which will provide parents with a more complete picture of how schools are performing and where there is a need for improvement. The design and content of report cards will be developed over the coming months, including through extensive engagement with parents and schools.
From early 2025, the Department will introduce regional improvement teams to work with teachers and leaders in struggling schools to quickly and directly address identified areas of weakness.
For schools whose performance is causing the most serious concern—which would previously have been rated “inadequate”—the Government will continue to intervene. Ofsted is under a legal duty to identify schools causing concern (defined as schools requiring special measures or requiring significant improvement) and notify the Secretary of State. The Secretary of State is under a legal duty to issue an academy order to a local authority maintained school in either of the categories of concern. The removal of headline grades will not affect the legal position. The Secretary of State will also continue to use, where appropriate, the power to terminate the funding agreement of an academy identified as a school causing concern.
For schools that have previously received two or more consecutive judgments that were less than “good” and, as of today’s announcement, are due to become academies or transfer to a new trust by 1 January, that process will continue. For schools that have received two or more consecutive judgments that were less than “good” but are due to convert or transfer in the new year, the Government’s intervention approach will change. The Government will now put in place support for these schools from a high-performing school, helping to drive up standards quickly. Schools with current Ofsted grades of below “good” which are in receipt of a “requires improvement” sub-judgment in leadership and management or quality of education in their next Ofsted inspection will also be eligible for this support.
The Government are committed, in time, to replacing single headline grades in all the remits that Ofsted inspects—namely private schools, early years settings, colleges, initial teacher education and children’s social care providers. Government and Ofsted will work in partnership with sectors over the next year to develop alternative reporting arrangements. New arrangements will take account of the unique characteristics of each sector but will broadly reflect the report card approach that is being taken for schools. Providers in other sectors will continue to receive single headline grades in the meantime.
Today’s changes build on the recently announced children’s wellbeing Bill, which will put children at the centre of education and make changes to ensure every child is supported to achieve and thrive.
Today’s announcement is the first step towards a school accountability system that sets the highest expectations on standards while making inspection a more powerful, more transparent tool for driving school improvement. The reforms represent a major step in the Government’s mission to break down the barriers to opportunity for every child at every stage. In doing so, the Government will put education back at the forefront of national life and restore teaching as a valued profession which delivers for our children and our country.
[HCWS54]
Energy Security and Net Zero
Energy Infrastructure Planning Projects
The Minister of State for Energy Security and Net Zero, my noble Friend Lord Hunt of Kings Heath OBE, made the following statement today:
This statement concerns an application for development consent made under the Planning Act 2008 by Ecotricity (Heck Fen) Ltd for the construction and operation of a solar photovoltaic electricity generating station situated in Lincolnshire.
Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it.
The statutory deadline for the decision on the Heckington Fen solar park application was 9 August 2024.
Ecotricity (Heck Fen) Ltd has requested that the Secretary of State extends the statutory deadline to allow time for further negotiations with landowners and to ensure the necessary permissions can be obtained. I have decided to allow a short extension and to set a new deadline of no later than 27 September 2024 for deciding this application for these reasons.
The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.
[HCWS52]
Publication of Statutory Consultation and National Energy System Operator Licences Jointly With Ofgem
Our nation stands at a pivotal moment in our energy and net zero journey. As we navigate the challenges of energy security and the urgent need for a sustainable future, I am proud to announce the publication of the joint Government-Ofgem response to the statutory consultation on national energy system operator licences and other impacted licences.
NESO will be a trailblazing, independent entity, serving as a trusted voice at the core of our energy sector. It will spearhead strategic planning for our energy systems and networks, manage the electricity system with precision and play a crucial role in achieving our overarching energy strategy and objectives.
NESO’s independence from commercial interests and operational control of the Government will enable it to provide unbiased, expert advice on critical decisions that will shape our energy landscape for decades to come, including our “clean power by 2030” target.
As we move forward, NESO’s role will be instrumental in achieving our net zero and energy security goals. By fostering innovation, enhancing system resilience, and promoting transparency, NESO will help navigate the complexities of our evolving energy system. We are enormously grateful for the valuable input from industry stakeholders, whose insights have been integral to shaping the future of NESO.
NESO will be regulated by Ofgem through two new licences, and this consultation response marks a significant milestone in establishing NESO’s regulatory regime. The final step will be for the Secretary of State to grant NESO these licences under the powers conferred by the Energy Act 2023. The Department for Energy Security and Net Zero and Ofgem are aiming to establish NESO this year.
Our response addresses thematically the feedback raised by stakeholders to the consultation on the contents of these licences published in March 2024. The key themes include NESO transparency and industry feedback, incentives and performance, energy resilience and critical national infrastructure, network planning, NESO transitional service agreements, future roles, uniform network code arrangements, and NESO’s advisory role. Alongside this response document, we are also publishing updated versions of NESO’s licences.
The establishment of NESO is intended to apply only to England, Scotland, and Wales. Energy is generally devolved in Northern Ireland. I will place copies of the statutory consultation response on national energy system operator licences in the House Libraries.
[HCWS57]
Health and Social Care
Covid-19 Vaccination: Autumn 2024
His Majesty’s Government are committed to protecting people most vulnerable to covid-19 through vaccination as guided by the independent Joint Committee on Vaccination and Immunisation.
On 2 August 2024, the JCVI published advice on the covid-19 vaccination programme for autumn 2024. Their advice is that a covid-19 vaccine should be offered in autumn 2024 to those in the population most vulnerable to serious outcomes from covid-19 and who are therefore most likely to benefit from vaccination. These groups are:
adults aged 65 years and over;
residents in a care home for older adults;
persons aged 6 months to 64 years in a clinical risk group, as defined in tables 3 and 4 of the covid-19 chapter of the UK health security green book on immunisation against infectious disease.
HM Government have accepted the JCVI advice, and the above groups will be offered vaccination in England this autumn.
The JCVI also advised that health and social care service providers may wish to consider whether vaccination provided as an occupational health programme to frontline health and social care workers is appropriate in future years and that ahead of such considerations, health departments may choose to continue to extend an offer of vaccination to frontline health and social care workers and staff working in care homes for older adults in autumn 2024.
HM Government have decided that frontline health and social care workers and staff working in care homes for older adults will continue to be offered vaccination in the autumn 2024 programme in England.
The JCVI has also advised which vaccines may be used in the autumn 2024 covid-19 programme and in line with this advice the vaccines that will be supplied are the Moderna mRNA (Spikevax) vaccine and Pfizer-BioNTech mRNA (Comirnaty) vaccine.
Future programmes
The JCVI has advised that infection with SARS-CoV-2 (the virus that causes COVID-19 disease) continues to occur throughout the year. The current trend indicates intermittent waves occurring every few months which are consistently peaking at lower amplitude. Winter remains the period of greatest threat from covid-19 both in relation to the risk of infection to individuals and the pressures on health systems. Should population immunity to SARS-CoV-2 be maintained, it is anticipated that most people will experience relatively mild symptomatic or asymptomatic infections. JCVI will continue to review and advise on the optimal timing and frequency of covid-19 vaccination beyond autumn 2024.
Notification of liabilities
I am now updating the House on the liabilities HM Government have taken on in relation to further vaccine deployment via this statement and accompanying departmental minute laid in Parliament containing a description of the liability undertaken. The agreement to provide indemnity with deployment of further doses increases the contingent liability of the covid-19 vaccination programme.
I will update the House in a similar manner as appropriate, as and when any future decisions impact the contingent liability of the covid-19 vaccination programme.
[HCWS60]
Housing, Communities and Local Government
Building Safety
Today, I can update Parliament on fire safety and evacuation proposals; on the recognition of CE (“Conformité Européenne”) marking for construction products; and on updates to the statutory guidance to the building regulations to remove references to outdated national classes fire testing standards and make provision for sprinklers in new care homes.
Fire safety and evacuation
The Home Office will bring forward proposals in the autumn to improve the fire safety and evacuation of disabled and vulnerable residents in high-rise and higher-risk residential buildings in England in response to the Grenfell Tower inquiry’s phase 1 recommendations that relate to personal emergency evacuation plans, or PEEPs. These proposals will be called “residential PEEPs”.
Through them, residents with disabilities and impairments will be entitled to a person-centred risk assessment to identify appropriate equipment and adjustments to aid their fire safety/evacuation, as well as a “residential PEEPs statement” that records what vulnerable residents should do in the event of a fire.
The Government have committed funding next year to begin this important work by supporting social housing providers to deliver residential PEEPs for their renters. Future years’ funding will be confirmed at the upcoming spending review.
The Government have made progress on delivering recommendation 33.22(d) of the Grenfell Tower inquiry’s phase 1 report, on evacuation alert systems (“sounders”) for new builds, through amendment to statutory guidance to the building regulations in relation to high-rise residential building design (requiring sounders to be fitted in new buildings over 18 metres in height).
We will consider further the second part of the recommendation, relating to existing buildings, in the light of further evidence or recommendations in the phase 2 report. This will, like the work on fire safety improvements nationally, be part of the important task of reducing the likelihood and impact of future fires.
CE marking
Construction products are a pivotal part of the housing and infrastructure supply chain and make up 13% of the United Kingdom’s entire manufacturing base by turnover. Ensuring continuing supply of products is critical to delivering house building targets and wider infrastructure ambitions. These products must be safe. Evidence to the Grenfell Tower inquiry revealed the scale of concern about construction products—products which are vital to all our buildings and infrastructure —and the system that oversees them remains inadequate.
A subset of construction products fall within scope of the current construction products regulations. These existing regulations set out rules for placing construction products on the market, providing a common technical language to assess the performance of products. Products within scope of these regulations must undergo an assessment of conformity with the relevant standard or technical assessment. Such products must also be affixed with a UKCA (UK Conformity Assessed) or a CE mark. Current Government guidance sets out that recognition of CE marking will end in June 2025.
I can announce today that the Government will extend the period of recognition of CE marking for construction products. The CE mark will continue to be available when placing construction products on the market across the UK.
We have listened to the findings from the independent review of the construction products testing regime. This was clear that there is currently insufficient testing and certification capacity in the UK alone to provide the volume of conformity assessment that would be required were CE recognition to end. We are also clear that ending recognition of CE marking without reforming the domestic regime would create trade barriers and negatively affect the supply of products that meet recognised standards.
I am also determined to address the inadequacies across the wider construction products regime. Residents and communities need to be confident that their homes will be safe and well-built now and in the future. To ensure this, the Government will want to take into account any recommendations from the forthcoming Grenfell inquiry report to inform proposals for reform. Therefore, I am making this extension, and the longer-term future of CE and UKCA marking, conditional on this Government committing to system wide reform of the construction products regulatory regime.
The Government recognise the role of UK conformity assessment bodies in ensuring compliance of goods on the market. As part of the reforms the Government will work with UK conformity assessment bodies, the UK Accreditation Service, and the wider industry to strengthen the conformity assessment market.
Lastly, I recognise the need for industry to have sufficient certainty to support supply chains. I can confirm that any subsequent changes to the recognition of CE marking would be subject to a minimum two-year transitional period.
National classes and sprinklers in care homes
I am also announcing, today, publication of two updates to the statutory guidance that accompanies building regulations. First, we are introducing a provision for sprinklers to be installed in new care homes. Secondly, we are completing the withdrawal of the outdated national classes fire testing standards, ending a long period of dual specification in favour of the more robust European standard. This implements the recommendation, made in the Hackitt report, for a clearer, transparent and effective testing regime. Alongside guidance for second staircases in tall residential buildings that are more than 18 metres in height, which was published on 29 March 2024, these measures conclude the new policy responses to the sprinklers in care homes, removal of national classes, and staircases in residential buildings consultation, which ran from 23 December 2022 to 17 March 2023.
Withdrawing the national classes fire testing standards from “Approved Document B” will end the dual classification system that has operated since the early 2000s in favour of the more rigorous, internationally recognised European standard (BS EN 13501). The current testing standard tests for both reaction to fire and fire resistance. I am aware that a small number of manufacturers who have only ever tested to national class standards will need time to re-test their products. We are providing industry with a transition period of five years for fire resistance and six months for reaction to fire. This is a generous yet critical approach and has been put in place to facilitate a smooth transition to the European standard that is not disruptive to supply chains.
A compassionate society protects its most vulnerable. Today, I am also publishing an update to “Approved Document B” that makes provision for sprinklers in all new care homes. Sprinklers enhance fire protection where residents may be reliant on others for help and assistance, especially if a building evacuation is needed. Many care home providers already include sprinklers in new designs. For those that do not yet provide for sprinklers, again, I recognise that businesses and investors seek certainty. So, care homeowners and developers will benefit from a six-month transition period until the guidance comes into effect and will then have a further six months to enable work on current development projects that are under way, or about to start, to continue.
[HCWS62]
Science, Innovation and Technology
European Centre for Medium-Range Weather Forecasts: Contingent Liability Notification
I am tabling this statement for the benefit of hon. and right hon. Members to bring to their attention two new contingent liabilities for the activities of the Department of Science, Innovation and Technology and the European Centre for Medium-Range Weather Forecasts, hereon referred to as ECMWF.
The UK has agreed to fully fund the construction of a new headquarters for ECMWF on the University of Reading campus. This was a political commitment made to member states at the ECMWF council meeting in December 2021. To enable this, an agreement for lease has been negotiated with UoR to secure land and rights to build.
ECMWF is an independent international and intergovernmental organisation supported by 35 states, including the UK. ECMWF are considered experts in their field and attract talented scientists and engineers from across the world. The provision of the new ECMWF HQ will ensure approximately 270 to 300 skilled roles remain in the UK along with significant investment in the UK economy over the life of the building, generating a net present value of £97 million. The continued hosting of ECMWF will help to maintain the UK’s reputation as a world leader in weather and climate science.
Two indemnities are required by the university. The first is due to the university having incurred costs on the basis that the Department will subsequently complete the project. The costs cover relocating their art department to make space for the HQ and carrying out significant works in clearing the site by, amongst other things, demolishing existing buildings, removing asbestos and other contaminants and decommissioning services so that the site will be ready for development. The university are seeking an indemnity to ensure they would be partially reimbursed, should the project not be completed. They will not move forward with the project without this protection so, without these indemnities, the deal to secure the site would be jeopardised along with the project as a whole.
This indemnity will be triggered should the Department not achieve specific planning and construction milestones by specified deadlines. Since the planning requirements are nearly fulfilled with the grant of planning already in place, the risk of this indemnity crystalising is considered to be very low. The maximum costs to the Government are £14.4 million including VAT. If crystalised, the cost is likely to be the full capped value.
The detailed planning consent application was made in October 2023, with the grant of planning received on 24 July 2024. A six-week period following grant of planning permission during which the decision to grant planning permission could be judicially reviewed will expire in early September 2024. In the event that that period expires without an application for judicial review being made, this indemnity will fall away entirely. This is considered to be likely given that the planning application was not contentious.
The second indemnity relates to vacation and handover of the HQ at the end of the 50-year lease. If ECMWF does not vacate the premises at the end of the contractual term of the lease, or if the lease is otherwise determined before the end of the contractual term, and UK Government cannot return the building to UoR with vacant possession because ECMWF do not vacate, UK Government would be liable for UoR’s associated costs. Given ECMWF’s privileges and immunities, the inviolable status of its premises and the uncertain basis of its occupation of the property under domestic landlord and tenant law, UoR are concerned about their ability to recover vacant possession after the end of the lease if ECMWF were to remain in occupation. This risk is being held by UK Government as part of the lease agreement.
The UK would be under an obligation as host nation to provide alternative accommodation to allow ECMWF to move before the end of the tenancy, unless they depart the UK. There is a strong possibility that the university would agree to extend the lease or agree a new lease. UK Government and ECMWF are obliged to work together to avoid this kind of situation.
Costs in the event of this occurring are uncapped. Property and legal costs are estimated by the Government Property Agency to be around £500,000, or £600,000 including VAT. Other costs cannot be estimated at this stage due to the uncertainties involved. Costs comprise liabilities, expenses—including solicitors’ and other professional costs—claims and damages. Losses, including any diminution in UoR’s interest in the property arising as a result of the breach of covenant to provide vacant possession at the end of the lease, would also have to be covered. The Department would be responsible for such costs.
Although the agreement for lease and lease will be entered into by the Secretary of State for the Ministry of Housing, Communities and Local Government, the Department as ultimate sponsor and funder of the project will have budgetary responsibility within Government for them, and will be responsible for any payments due under the first indemnity and second indemnity. The Department are seeking approval of the indemnities as ultimate sponsor and funder of the project.
The Government will be subject to the new contingent liabilities, and I will be laying a departmental minute today containing a description of the liabilities undertaken.
[HCWS55]
Wales
Port Talbot Transition Board
Today I can confirm that on 15 August I announced the release of £13.5 million in funding to support supply chain businesses and individuals affected by Tata Steel’s decision to transition to greener steelmaking.
This initial tranche of £13.5 million in funding demonstrates that this Government will act decisively to support workers and businesses in Port Talbot, working with Welsh Government, unions, and the wider community.
This funding, which is the first release from the Tata Steel/Port Talbot Transition Board fund, will target local businesses that are heavily reliant on Tata Steel as their primary customer, allowing them to turn towards new markets and customers where necessary.
The funding will also be available to workers affected by the transition, allowing them to retrain or to learn new skills for the employment market. We are also harnessing the generosity of the local community, with 50 employers so far pledging practical support for affected workers.
Negotiations with Tata Steel on the future of the site will continue separately. But this Government will not wait for a crisis to overtake us before acting. We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens.
We have reset our relationship with the Welsh Government and will continue to work closely with them and other partners to ensure we are delivering support on the ground.
Recognising the immediate need, support through the funds will be available imminently.
Businesses and individuals can register an interest or send any inquiries to an email address if interested—tsukqueries@npt.gov.uk.
[HCWS63]
Work and Pensions
Cost of Living
Today we are announcing funding for an extension to the household support fund, which will enable local authorities in England to help vulnerable people and families receive discretionary emergency crisis support as we help people through the winter.
Many councils also use the fund beyond emergency support, including working with local charities and community groups to provide residents with key appliances, school uniforms, cookery classes, and items to improve energy efficiency in the home.
The scheme will be worth £421 million in England and will run until the end of March 2025. The devolved Governments will receive consequential funding as usual through the Barnett formula to spend at their discretion.
The dire inheritance we face means more people are living in poverty now than 14 years ago, and this Government are taking immediate action to prevent a cliff edge of support for the most vulnerable in our society.
At the same time, we are taking action to fix the foundations of our country and spread opportunity and prosperity to every part of the country through our plans to grow the economy, make work pay, and get Britain working again.
That means delivering the biggest and boldest reforms to employment support for a generation, including through our upcoming White Paper to tackle the root causes of worklessness.
It also means reducing poverty and driving up opportunity through our child poverty taskforce, taking action across Government so every child, no matter where they come from, has the best start to life.
We will also root out the unacceptable levels of fraud and error in our welfare system so that taxpayers’ money supports those who need it most.
We are under no illusions about the scale of the challenge given our inheritance. We will not turn things around overnight, but our plan will transform lives.
By growing the economy and unlocking investment through the national wealth fund, launching Great British Energy to drive home-grown clean energy and lower bills, making work pay and developing a new child poverty strategy to give children the best start in life, the Government are looking at all levers available to unlock the potential of millions across the country and give them the platform they need to thrive.
Further details for the forthcoming extension will be published ahead of the launch of the new scheme in the coming weeks.
This funding will work to help those in need. Pensioners and others struggling with the cost of living over the colder months should contact their local council to see what support may be available to them. If applicable, please direct residents in your area to their local authority who will be able to help them access the household support fund in the coming months.
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