Month: August 2018

Some of the world’s most recognisable brands have signed up to support the government’s plan for the Northern Powerhouse, as new figures show the region’s economy is now greater than that of some European nations.

New Balance, Hitachi, Playdale and Techbuyer have joined the Northern Powerhouse Partners Programme, a government initiative which brings together businesses and organisations from across the North of England. This network of partners believes strongly in the economic potential of the North, and supports the need for a combined effort by government and business to realise that potential.

According to the latest statistics, the Northern Powerhouse is worth over £330 billion a year to the UK economy, and since 2014 its exports have steadily increased. The region now supports around 20% of total UK goods exports – worth £60 billion in 2017.

Northern Powerhouse Minister, Jake Berry MP, said:

Having these trailblazing exporters join the Northern Powerhouse Partners programme is a real boost to our efforts to fuel enterprise and growth in the North of England.

As we seize the opportunities that come with leaving the European Union, it will be the manufacturers of the Northern Powerhouse that will help us deliver a strong and resilient economy fit for the future.

Trade Minister, Graham Stuart MP, said:

Exporters are the driving force behind the Northern Powerhouse’s economy and I am delighted to see 4 fantastic examples of industry and innovation become Northern Powerhouse Partners.

Through trade missions tailored to northern businesses and one-to-one support from our locally based expert international trade advisers, the Department for International Trade is helping thousands of businesses across the Northern Powerhouse achieve their export ambitions.

Over £7 million has been committed to establish a Northern Powerhouse Taskforce to boost trade and investment across the North. The Taskforce has completed over 50 Northern Powerhouse Trade Missions from San Francisco to Singapore.

All 4 companies that have signed up to the Northern Powerhouse Programme have a strong manufacturing presence in the Northern Powerhouse:

• New Balance UK employs 270 people at its site in Flimby, Cumbria producing 500,000 pairs of shoes a week with 80% of sales revenues from exports.
• Hitachi has established a state-of-the-art train factory in County Durham which employs over 730 people. The team of train builders, including over 50 apprentices graduating this year, is building pioneering trains using Japanese bullet train technology. Hitachi has also co-founded a technical college, with students going on to work in the factory. Their trains are manufactured in the UK for use across Europe.
• Playdale’s head office, manufacturing facilities and global distribution centre are situated on the edge of the Lake District in Cumbria. To date, they have created over 22,000 play areas in 47 countries across the world.
• Techbuyer is one of the fastest growing tech businesses in Britain with 57% of its sales coming from outside the UK. Employee numbers at the company’s plant in Harrogate, North Yorkshire have increased by almost 200%.

Barry Leahey MBE, Managing Director of Playdale, said:

We are extremely proud to become a Northern Powerhouse partner and will do all we can to encourage and inspire other Northern businesses, not yet exporting, to work with the Department for International Trade and explore their exporting potential.

Playdale is a Cumbrian family business dating back to 1735 that now manufactures and sells playground equipment in 48 countries globally. Not only does this demonstrate and promote the economic strengths of northern businesses like ourselves, but it provides a huge boost to local supply chains too.

‘If we can you can!’

Karen Boswell OBE, Managing Director of Hitachi Rail in the UK, said:

Our British train builders are using Japanese bullet train technology to create a truly world class factory in the North East. Our presence in the North East supports thousands of jobs through using local suppliers, with over 70% of our parts coming from the North.

Kevin Towers, Managing Director of Techbuyer, said:

Techbuyer has found everything we need to run and grow our business right here in the North and we’d like to promote the opportunities and potential we see around us. Last year, over 57% of our sales shipped internationally and having our main distribution centre in North Yorkshire has been great for national and international trade.

We live and work in a thriving location with a wide range of businesses – from SMEs to international, traditional to innovative – providing us with services, customers and stock suppliers. Increased connectivity and investment is surely key to addressing the current imbalance between North and South and showcasing the development and successes of Northern businesses like ours is one way to achieve this.

Fran Allen, Vice President of New Balance’s EMEA region, said:

We are delighted to become a member of the Northern Powerhouse Partners Programme.

As a manufacturer, exporter, and contributor to the regional Cumbrian economy, we see the enormous potential in being a part of this collaborative effort, by the government.

It is a grand initiative which stands to link the great communities of the North, boost economic growth, and, together, make the Northern Powerhouse a reality.

Further information

The Northern Powerhouse is the government’s vision for a globally-competitive northern economy with a flourishing private sector, a highly-skilled population, and world-renowned civic and business leadership.

The Northern Powerhouse Partner Programme is an important part of creating the Northern Powerhouse. The government is looking to build a network of partners who all believe strongly in the economic potential of the North, and support the need for a combined effort by government and business to realise that potential. There are currently over 170 (178) businesses and organisations signed up to the Partner Programme.

Regional trade statistics first quarter 2018.

Prospective partners can email NorthernPowerhouse@communities.gsi.gov.uk for more information about the Partners Programme and how to apply.

The Department for International Trade has 3 locations in the Northern Powerhouse to help business start exporting, or export more, to existing or new markets.

View the Twitter accounts of those 3 locations below for more information:

• DIT North West: @tradegovuk_NW
• DIT Yorkshire: @tradegovuk_YH
• DIT North East: @tradegovuk_NE

Thousands of social housing association tenants are being given the opportunity to realise their dream of home ownership, as the Midlands Voluntary Right to Buy Pilot launches today (16 August 2018).

Communities Secretary Rt Hon James Brokenshire MP said this is the first step in helping housing association tenants get a foot on the property ladder.

This follows measures announced in this week’s social housing green paper, to make it easier for residents to progress into home ownership. The existing Right to Buy programme for council tenants backs families who have worked hard, paid their rent and have a sense of pride in their home.

Government is providing £200 million for this Voluntary Right to Buy pilot, with places allocated via a ballot to ensure fairness for applicants.

After working closely with the National Housing Federation to make this launch a reality, money from the discounted sales will then be used to fund replacement homes.

Speaking at the launch, Communities Secretary Rt Hon James Brokenshire MP said:

This government is committed to providing opportunities for people to get a foot on the property ladder and to have a place they can call their own.

Our £200 million investment into the Midlands Voluntary Right to Buy Pilot is the first step in helping housing association tenants realise their dream of home ownership.

Chief Executive of the National Housing Federation David Orr said:

Over the past 3 years, we have worked closely with the government on its proposal to extend the Right to Buy to housing association tenants. Of course, this pilot is not the finished product. We want to take the time to get this major endeavour right.

It will be a success for everyone involved only if every home that is sold is replaced with a new affordable home, and if the application process is as smooth as possible for tenants.

Now, we are looking forward to working with tenants, with housing associations and with the government to make this pilot a resounding success. This scheme must empower social housing tenants and meet our own ambitions to deliver the homes the country needs.

This is the latest step by government to make the housing market work, with opportunities available to realise the dream of home ownership whether you rent in the private or social sectors. Council housing tenants are already able to buy their home at a discount and since 2010 Right to Buy has helped almost 94,000 households

Earlier in June, a £1.67 billion government grant was announced from the £9 billion Affordable Homes programme that will deliver 23,000 new affordable homes, including 12,500 for social rent.

Places will be allocated via a ballot to ensure fairness and manage interest within the funding available. The ballot will close a month from today’s launch (16 September 2018), with the pilot running until spring 2020 giving successful candidates adequate time to complete the purchase.

The government will assess the impact of the pilot before deciding on the next steps for this policy.

Further information

The National Housing Federation (NHF) is a trade association, which represents social landlords and housing associations in England.

Since 2010 we have delivered over 378,000 new affordable homes through our £9 billion Affordable Homes Programme.

£200 million of government funding is being provided for the Midlands Voluntary Right to Buy pilot, as announced in the 2017 Autumn Budget.

The government will fully fund the discounts, and housing associations will use the receipts from the sales to fund replacement homes.

Registration website for the Voluntary Right To Buy pilot.

Since 2010 Right to Buy has helped almost 94,000 households get onto the housing ladder.

We are using a ballot because we believe this is the fairest way of managing interest within the funding available to the pilot project. The alternative would have been to allocate spaces on a first come, first served basis. This would have disadvantaged residents with accessibility issues, or those who could not get onto the internet in the first few days of opening.

The ballot will be open for a period of one month, after which no further registrations will be accepted. Shortly after the ballot has closed, the ballot will randomly allocate places on the pilot.

Tenants who are successful in the ballot will not be guaranteed that they can purchase under the scheme – they will still need to meet the eligibility criteria and complete the application process in full.

Housing associations will have discretion over which properties they sell. Where the home is exempt from the pilot, the housing association will give the tenant the opportunity to use their Right to Buy discount to buy another housing association property. This is known as the portable discount, and is being tested through the pilot.

A list of participating housing associations and local authorities is available on request.

UK response to the Ebola outbreak in North Kivu, DRC

The UK is working closely with the Government of the Democratic Republic of the Congo (DRC), the World Health Organisation (WHO) and other partners to tackle the latest outbreak of Ebola in the country.

The UK is providing expertise and support to help the government and WHO respond effectively to this outbreak which is occurring in a very insecure region. This response is enabling faster diagnosis and monitoring of the spread of the disease, and is improving medical facilities and their capacity to treat patients. It will also protect health workers and raise awareness of the disease within local communities.

In addition, we are supporting the WHO to strengthen surveillance at borders and help neighbouring areas to prepare to tackle the disease should it spread.

Yesterday (15th August 2018) the International Development Secretary Penny Mordaunt spoke with Dr Tedros Adhanom Ghebreyesus, Director General of the WHO, to discuss Dr Tedros’s reflections on his recent visit to the area and how the UK can continue to support the current response.

International Development Secretary Penny Mordaunt said:

“Global health threats like Ebola devastate lives and don’t respect borders. The UK is acting now to support the DRC Government, WHO and other partners to contain this latest outbreak occurring in a very challenging context.

“We’ve also already been working extensively with these partners to improve vulnerable countries’ capacity to detect and tackle outbreaks like this quickly when they occur – to maintain stability in the region and keep the UK public safe at home.”

The UK is supporting WHO and partners to strengthen health systems so that African countries at high risk of disease outbreaks such the DRC have the capability to prevent, detect and respond quickly to new outbreaks.
This work was proven to be effective in the swift response which tackled the previous Ebola outbreak this year in Equator Province of the DRC.

The UK is also the leading donor to the UN’s Central Emergency Response Fund (CERF), and the second largest contributor to the WHO Contingency Fund for Emergencies, both of which have mobilised to tackle this outbreak.

Following the West Africa outbreak of Ebola in 2014, UK aid worked with the Wellcome Trust to develop an experimental vaccine for the disease. UK aid support for Gavi, the Vaccine Alliance, has helped ensure a stockpile of this vaccine is available. A vaccination programme to protect high risk populations in North Kivu province has now been launched.
Risk to the UK from this outbreak remains negligible to very low, but Public Health England continues to monitor the situation closely.

The Competition and Markets Authority (CMA) has launched an investigation into concerns that social media stars are not properly declaring when they have been paid, or otherwise rewarded, to endorse goods or services.

Typically, celebrities and influencers have millions of followers who watch their channels to see where they go on holiday, what they wear, which products they use, the books they read and more.

Online endorsements from celebrities and influencers can help brands reach target audiences and boost sales. Where influencers are paid or rewarded to promote, review or talk about a product in their social media feeds, consumer protection law requires that this must be made clear.

If they do not label their posts properly, fans or followers may be led to believe that an endorsement represents the star’s own view, rather than a paid-for promotion.

They are then more likely to place trust in that product, as they think it has been recommended by someone they admire. They might not do so, however, if it was made clear that the brands featured have paid, or in some other way rewarded, the celebrity in return for endorsement.

As part of its investigation, the CMA has written to a range of celebrities and social media influencers to gather more information about their posts and the nature of the business agreements they have in place with brands.

The CMA investigation is considering the extent to which influencers are clearly and accurately identifying any commercial relationships, and whether people are being misled.

The CMA has seen examples of posts which appear to:

• promote or endorse products without clearly stating if the post has been paid for
• offer the celebrity’s personal opinion on the benefit of a product without clearly disclosing if they are being paid by the brand

George Lusty, the CMA’s Senior Director for Consumer Protection, said:

Social media stars can have a big influence on what their followers do and buy.

If people see clothes, cosmetics, a car, or a holiday being plugged by someone they admire, they might be swayed into buying it.

So, it’s really important they are clearly told whether a celebrity is promoting a product because they have bought it themselves, or because they have been paid or thanked in some way by the brand.

If the CMA finds practices that break consumer protection law, it can take enforcement action.

As part of the investigation the CMA is asking the public to share their experiences. The investigation would particularly benefit from hearing from people who have bought products which were endorsed on social media.

Notes to editors

1. This investigation follows the CMA’s earlier work from 2016 considering online reviews and endorsements. As part of that work, the CMA accepted undertakings from four companies to ensure that online advertising is clearly labelled or otherwise identified so that it is distinguishable from the opinions of bloggers or journalists. The CMA expects to provide an update on the latest investigation at the end of 2018.
2. The key piece of consumer protection legislation relevant to the CMA’s investigation is the Consumer Protection from Unfair Trading Regulations 2008 (CPRs). Amongst other requirements it is a banned practice to use editorial content in the media to promote a product where a trader has paid for the promotion without making that clear in the content or by images or sounds clearly identifiable to the consumer.
3. As an enforcer under Part 8 of the Enterprise Act 2002, the CMA can enforce the above legislation through the courts. Ultimately, only a court can decide whether a particular term or practice infringes the law.
4. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
5. The CMA is working closely with the Advertising Standards Authority (ASA) in this area. The ASA is the UK’s independent regulator of advertising across all media. In March 2018 the ASA issued a call for evidence to find out more about what types of labels help people to understand when the online content they see, hear and interact with is advertising.

Media enquiries should be directed to press@cma.gov.uk or 020 3738 6790.

For CMA updates, follow us on Twitter, Facebook and LinkedIn.