Month: March 2023

A new campaign to help businesses, charities and public sector bodies increase their energy efficiency and drive down bills by making simple changes at low-to-no cost has been launched by the UK government today.

The campaign, targeted at small and medium sized businesses, will offer guidance on how organisations can make significant savings while cutting emissions, from installing light and heating timers, to turning down boiler flow temperature and changing light bulbs.

Many organisations are already aware of ways to boost their energy efficiency and have put these measures into practice. However, a substantial number of businesses are missing out on huge potential savings, due to a lack of information on how to cut down on their energy costs.

For many companies, a 20% cut in energy costs represents the same bottom-line benefit as a 5% increase in sales. A new website will help organisations access simple, low-to-no cost advice, outlining a range of possible actions, from having better sight of current energy use to upgrading and modifying equipment.

Examples of businesses already benefiting from energy efficiency measures:

• LED lighting allowed a carpark in Bedford to cut their average annual lighting costs by 50%. Lurke Street Multistorey Carpark installed lighting throughout their premises in 2017, replacing older, less energy efficient lighting. By installing a smart meter they were able to actively track and compare year-on-year savings – on average £50,000 per year – allowing them to build business cases for further investments.
• Marlec Engineering, a wind turbine manufacturer in Corby, switched to energy saving lighting as part of a range of measures to make their business premises more energy efficient. The company replaced T8 Fluorescent lamps with new, energy saving LED tubes. The lighting did not reduce light levels in the office and achieved a 60% saving on lighting costs.

To make sure as many businesses as possible know about the campaign, it will be promoted through partnerships with the British Chambers of Commerce and Federation of Small Business and paid advertorial across TV, radio, social media and more.

It follows the launch of the government’s £18 million ‘It All Adds Up’ campaign last year. This provides similar advice for households, saving them hundreds on their energy bills, and saw UK sales of ‘draught protection products’ on eBay double shortly after the launch.

Minister for Energy Efficiency and Green Finance Lord Callanan said:

Falling wholesale energy prices are welcome news, but this in no way changes our firm, long-term commitments to vastly boost UK energy efficiency across industry and households.

From today businesses, charities and public sector bodies can access helpful and practical advice on simple actions they can take to substantially reduce their energy use – and potentially increase profits.

Not only will this help lower operational costs by up to hundreds of thousands of pounds, but smarter energy use will help us deliver on our critical pledges to cut demand by 15% and reach net zero by 2050.

The new site also offers guidance on taking full advantage of the government’s range of energy support schemes available, such as the new Energy Bills Discount Scheme, which offers a unit discount on bills, and the Boiler Upgrade Scheme, which offers grants to help make installing heat pumps and biomass boilers as cheap as a gas boiler.

Adrian Dennis, Managing Director of Marlec Engineering, said:

Our business works with an absolute focus on sustainable energy solutions. We’ve invested in electric company cars and eco-friendly packaging. But upgrading to LED lighting is low-cost, and one of the simplest ways to promote sustainability in-house and save money on utility bills. We’d encourage other businesses to upgrade as well.

Energy Bills Discount Scheme

From today organisations across the country will start receiving money off their energy bills through the new Energy Bills Discount Scheme. It comes as wholesale gas prices are at levels not seen since before Russia’s illegal invasion of Ukraine, with eligible UK businesses, charities, public sector bodies and others to receive the discount until 31 March 2024.

Customers do not need to apply for the universal discount, with suppliers automatically factoring it into the bills of all eligible non-domestic customers.

The new scheme replaces the Energy Bill Relief Scheme, which by late March had paid out £5.6 billion – around £35 million a day to cut energy costs for businesses.

Minister for Energy Consumers and Affordability Amanda Solloway said:

This government will always be unapologetically pro-business. We’ve spent over £5 billion to protect against disruption to UK industry at the hands of Putin, saving many businesses around half on their wholesale energy costs this winter.

The new level of support offered today reflects a substantial drop in global energy prices – now at their lowest level since before Russia’s illegal invasion of Ukraine.

We will continue to firmly back UK industry and are making sure those unable to cut back on their energy use continue to be shielded.

Dhara Vyas, Deputy CEO at Energy UK, said:

Despite recent falls, wholesale gas prices are still high by historical standards, making this is a difficult time for businesses up and down the country. Energy suppliers are working with businesses to come up with innovative solutions that will help customers afford their bills while providing improved customer service and information. But high prices cannot be solved by industry alone, so we’re pleased government and industry have worked together to ensure delivery of this critical, extended support is on time. We particularly welcome the launch of a business energy campaign will help reduce bills now and protect against future crises.

Meanwhile, eligible energy and trade intensive industries will be able to apply for a higher level of support through a GOV.UK portal later this month. This is expected to save some businesses 20% of predicted wholesale energy costs.

Domestic heat networks will also receive a new, sector-specific support rate. This will make sure these customers do not face disproportionately higher energy bills under the Energy Bills Discount Scheme than those supported by the Energy Price Guarantee.

The discount is expected to be reflected in bills from May onwards, with support backdated to 1 April.

Minister Solloway met with Ofgem, energy suppliers and others earlier this week to discuss what more suppliers can do to help business customers fixed into long-term contracts at high prices – especially those in sectors currently facing challenges.

Non-Standard Cases

The government is today announcing further that non-domestic energy support will be extended and eligibility expanded to include customers receiving energy from non-licensed suppliers through the public electricity or gas grid.

These customers will be able to apply for Non-Standard Cases support under the Energy Bills Discount Scheme covering similar levels of energy costs from 1 April 2023 to 31 March 2024.

Non-Standard Cases support will also be expanded to include non-domestic customers who receive electricity or gas from license-exempt suppliers via private wire or pipe and where prices paid are pegged to wholesale energy prices. This wider group can apply for backdated support under the Energy Bill Relief Scheme as well as under the new Energy Bills Discount Scheme.

Further information about how eligible customers can apply will be provided on GOV.UK in due course.

Notes to editors:

Business Energy Efficiency campaign

Advice offered on the new government website will be continuously updated with sector-specific guidance, successful case studies and any new, relevant schemes. Key actions advised include:

• Undertaking an energy review
• Installing SMART meters
• Reviewing tariffs
• Installing light timers and changing lightbulbs
• Timing heating and turning down boiler flow temperature

Energy Bills Discount Scheme

From today, all eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill.

This will be subject to a wholesale price threshold – £107/MWh for gas and £302/MWh for electricity. This means that businesses experiencing wholesale energy costs below this level will not receive support.

These businesses will receive a discount reflecting the difference between a price threshold and the relevant wholesale price. Some Energy and Trade Intensive Industries will receive a higher level of support. The price threshold for this element of the scheme will be £99/MWh for gas and £185/MWh for electricity. This discount will only apply to 70% of energy consumption and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity.

The Energy Bill Discount Scheme will be delivered through regulations made under the Energy Prices Act 2022. The Regulations are expected to be made in late April 2023 and the scheme will not be finalised until they are made.

• Further information on the Energy Bills Discount Scheme can be found here.
• Further information on the Energy Price Guarantee can be found here.
• Further information on the EBRS for Non Standard Cases can be found here [add link]
• Further information on the Boiler Upgrade Scheme can be found here.
• Improving the energy efficiency of homes is the best long-term method of tackling fuel poverty, and that’s why the government has committed over £6.6 billion in this parliament, with a further £6 billion committed to 2028.
• The government last month announced the allocation of £1.8 billion to boost energy efficiency and cut emissions of homes and public buildings across England.

Energy Price Guarantee

Households will not feel the full force of Ofgem’s new Price Cap – at £3,280 from today –after the Government announced a three-month extension of the Energy Price Guarantee from April to the end of June – meaning the typical household bill will remain at the yearly equivalent of £2,500. The Guarantee protects customers from increases in energy costs by limiting the amount suppliers can charge per unit of energy.

The Guarantee is just one element of support offered by the government to household this winter, having stepped in to pay around half of the typical bill. Other support has included £400 payments towards bills through the Energy Bills Support Scheme. To date £5.5 billion has been paid out through the Energy Price Guarantee and £9.4 billion through the Energy Bills Support Scheme.

• the new business tax year comes in today 1 April 2023, with a new regime to boost investment and spur UK growth
• £27 billion cut to corporation tax, via Chancellor’s new full expensing policy, expected to boost investment by 3% in each of the next three years
• other tax changes coming into force include more business rates relief, extension to the fuel duty cut and a £450 income tax cut for carers

The package, announced at Spring Budget, comprises 100% full expensing and a 50% first-year allowance. It will mean the UK has the most generous capital allowance regime in the OECD worth £27 billion over the next three years, amounting to an effective £9 billion a year tax cut for companies.

The OBR expects this regime to boost investment by 3% over three years.

To mark the milestone, Financial Secretary to the Treasury visited Brompton Bikes in Greenford, London, who’ll be using full expensing to stimulate their growth.

Victoria Atkins, Financial Secretary to the Treasury, said:

“We are determined to make the UK the best place in the world to do business, which is why from today businesses can start to benefit from the raft of tax cuts on offer to boost their growth.

“With full expensing, the more a company invests the less tax they’ll pay, and I encourage companies of any size to take full advantage of this world-leading reform.”

With the new 25% corporation tax rate coming in for the top 10% most profitable companies from today, and the super-deduction ending yesterday, the Chancellor used his Spring Budget to ensure that the UK’s tax system fosters the right conditions for enterprise, investment and growth.

Full expensing lets companies deduct 100% of the cost of certain plant and machinery investments from their profits before tax. It is available from 1 April 2023 to 31 March 2026. It provides the same generosity as the super-deduction, saving firms up to 25p in every £1 of qualifying investment and is for main rate assets – such as construction, warehousing and office equipment.

The 50% First-Year Allowance lets companies deduct 50% of the cost of other plant and machinery, known as special rate assets, from their profits during the year of purchase. This includes long life assets such as solar panels and lighting systems.

Minister Victoria Atkins visited Brompton Bikes in Greenford this week to see how these capital allowances will be used to help the firm invest and grow. The minister toured their factory, viewing a brand new state-of-the-art Autobraze machine and the production line. She also met a selection of 15 trainees currently on Brompton’s training programme.

Phill Elston, Operations Director at Brompton Bicycle, said:

“The announcement of a super deduction replacement is great news for us. In previous years it has meant we could invest significantly in our production capabilities, upgrading equipment and building a more progressive factory; which has seen us move from making circa. 45,000 bikes per year in 2019, to around 100,000 bikes per year in 2022.

“Our mission is to improve how people travel around cities, which in turn creates happier communities, and the new expensing scheme helps to accelerate that goal.”

Other tax measures taking effect today include new domestic and ultra-long Air Passenger Duty bands.

For passengers flying in economy class, the new domestic band will be set at £6.50, a 50% cut to bolster UK-wide connectivity, while the new ultra long-haul band will be set at £91, meaning those who fly the furthest will pay the greatest level of duty.

Transport Secretary Mark Harper said:

“Transport binds the United Kingdom together, and this cut to Air Passenger Duty will make travelling between our family of nations easier than ever.

“Boosting transport links between our four nations sustains jobs, creates opportunities and is an essential part of this Government’s plan to grow the economy.”

Further tax measures include:

• To help household budgets further, the planned 11 pence rise in fuel duty has been cancelled, maintaining last year’s 5p cut for another twelve months, saving a typical driver another £100 on top of the £100 saved so far since last year’s cut.
• More business rates relief, as part of the Chancellor’s £13.6 billion package from 2022’s Autumn Statement. This includes the freezing of the multiplier and the introduction of 75% relief for retail, hospitality and leisure businesses, helping the high street to thrive and compete with online firms.
• Extending creative sector reliefs: theatres, orchestra and museums and galleries will benefit from a further 2 years of tax relief rates of 45%/50%. The museums and galleries exhibitions tax relief sunset clause will be extended for a further 2 years to allow these organisations to fully benefit from the extension of the highest rates.
• The Annual Investment Allowance (AIA), an existing measure which also supports business investment, has been increased permanently to £1 million today. This covers the investment needs of 99% of UK businesses.
• Rebalancing the rates of Research and Development Expenditure Credit and the R&D SME scheme to ensure taxpayers’ money is spent as effectively as possible. As a result, today the UK now offers the joint-highest uncapped headline rate of R&D tax relief support in the G7 for large companies.
• The government also committed to considering the case for further support for R&D intensive SMEs, and at Spring Budget announced that from today there will be an increased permanent rate of relief for the most R&D intensive loss-making SMEs. To support modern methods of innovation, for accounting periods beginning on or after today, businesses will also be able to claim for the costs of datasets and cloud computing under the R&D tax reliefs.
• Expanding the Seed Enterprise Investment Scheme (SEIS) to help more UK start-ups raise higher levels of finance. This package will help over 2,000 start-up companies access finance.
• Expanding the availability and generosity of the Company Share Option Plan (CSOP) scheme which will widen access to CSOP for growth companies and simplifying the process to grant options under the Enterprise Management Incentives (EMI) scheme.

On 6 April 2023 personal tax changes taking effect include removing tax-barriers that the medical community have made clear stop doctors working, delivering on the Prime Minister’s priority to cut NHS waiting lists so people can get the care they need more quickly. The pensions annual tax-free allowance will increase by 50% from £40,000 to £60,000, the Money Purchase Annual Allowance will rise from £4,000 to £10,000, and the Lifetime Allowance charge will be removed. The Office for Budget Responsibility estimate around 15,000 individuals will remain in the labour market because of the changes to the annual and lifetime allowances, many of whom will be highly skilled individuals, including senior doctors in the NHS.

Qualifying Carers Relief will be uprated with inflation from 6 April 2023 to representing a £450 per year income tax cut for carers. The uprating increases the amount of income tax relief from £10,000 to £18,140 plus £375-450 per week for each person cared for.

Further information

Major April tax changes:

Business tax:

• Business rates: freezing the multiplier for 2023-24
• Business rates: extended and increased 75% retail, hospitality and leisure relief for 2023-24
• Business rates: new transitional relief scheme
• Business rates: new supporting small business scheme
• Corporation Tax rate rise from 19% to 25%, and introduction of small profits rate at 19%
• End of the super-deduction on 31 March, and introduction of full expensing for three years from 1 April
• Extension of the 45% and 50% rates of cultural tax reliefs
• VAT threshold freeze continues
• Annual Investment Allowance at £1m level made permanent (already confirmed and in effect)
• R&D tax reliefs: The Research and Development Expenditure Credit rate will be increased and the R&D SME scheme rates will be reduced.
• R&D tax reliefs: Permanent higher payable credit rate for R&D intensive loss-making SMEs.
• R&D tax reliefs: Extending the scope of qualifying expenditures to include the costs of datasets and of cloud computing.
• Measures to reduce error and fraud in the R&D schemes.

Enterprise:

• From April 2023, the Seed Enterprise Investment Scheme (SEIS) will:
  • increase the amount of SEIS funding that companies can raise over their lifetime from £150,000 to £250,000;
  • increase the company gross asset limit from £200,000 to £350,000.
  • increase the company age limit from 2 to 3 years and;
  • increase the annual investor limit from £100,000 to £200,000.
• Company Share Option Plan (CSOP): the employee option limit has doubled from £30,000 to £60,000 and the ‘worth having’ condition, which limits which types of shares are eligible for inclusion within a CSOP scheme, has been removed.
• Enterprise Management Incentives (EMI): the process to grant options has been simplified by the removal of the requirement for a signed working time declaration and the removal of the requirement to set out share restrictions in an option agreement.

Personal tax:

• Personal tax threshold freezes continue
• 45p additional rate threshold reduction
• Cuts to AEA and dividend allowance
• Pensions tax: rise in the Money Purchase Annual Allowance, Annual Allowance and end of the Lifetime Allowance (LTA) charge (NB: LTA will be abolished from April 2024)

Health and Social Care Secretary, Steve Barclay, said:

 “These changes will ensure doctors are not disincentivised from remaining in their roles in the NHS and taking on extra hours – meaning more will continue treating patients and helping to tackle the backlogs which will deliver one of our key priorities. 

 “This comes alongside our wider reforms to the NHS Pension Scheme which introduce new retirement flexibilities to support older staff meaning they can re-join the scheme and continue to build their pension, ensure the interaction between the pension tax system and inflation doesn’t impact their standard of living, and allow staff in primary care networks to access the Scheme.”

Upratings:

• Basic and new State Pensions will also be uprated by 10.1%, in line with the Consumer Prices Index (CPI), in 2023/24 as the government delivers on the triple lock.
• Air Passenger Duty: uprated in line with forecast RPI / new domestic and ultra-long haul bands take effect.
• Aggregates levy: freeze
• VED: uprate for cars, cans and motorcycles, freeze for HGVs
• Qualifying Carers Relief: uprating to account for inflation
• Savings tax: freeze starting rate limit and ISA subscription limits
• Gaming Duty: freeze bands
• Tobacco duty: uprate by RPI+2% on all tobacco products, but increase by RPI + 6% for hand-rolling tobacco and the minimum excise tax will increase by RPI +3% this year
• Inflation-linked benefits and tax credits – e.g. Universal Credit – will also rise by 10.1% from April 2023, in line with the CPI.

• UK announces deal to join CPTPP – a major trade bloc in the Indo-Pacific which will have a total GDP of £11 trillion once the UK joins
• More than 800 businesses in Scotland exported to CPTPP countries in 2021 and could benefit after today’s announcement
• Joining the Trans-Pacific partnership, which contains some of the world’s fastest growing economies, gives Scottish companies, start-ups and farmers access to the world’s emerging middle class

The Scottish economy is expected to benefit after the UK Government today (31 March) announced the conclusion of trade talks with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a vast free trade area spanning the Indo-Pacific.

The bloc is home to over 500 million people and will have a total GDP of £11 trillion once the UK joins. Joining the bloc could boost the Scottish economy by improving businesses’ access to some of the world’s largest markets.

Prime Minister Rishi Sunak said:

We are at our heart an open and free-trading nation, and this deal demonstrates the real economic benefits of our post-Brexit freedoms. As part of CPTPP, the UK is now in a prime position in the global economy to seize opportunities for new jobs, growth and innovation.

Joining the CPTPP trade bloc puts the UK at the centre of a dynamic and growing group of Pacific economies, as the first new nation and first European country to join. British businesses will now enjoy unparalleled access to markets from Europe to the south Pacific.

There are numerous opportunities for Scottish businesses to benefit from joining CPTPP, with more than 800 businesses in Scotland exporting £2.1 billion worth of goods to CPTPP countries in 2021.

Business and Trade Secretary Kemi Badenoch said:

This is an important moment for the UK. Our accession to CPTPP sends a powerful signal that the UK is open for business and using our post-Brexit freedoms to reach out to new markets around the world and grow our economy.

Joining CPTPP will support jobs and create opportunities for companies of all sizes and in all parts of the UK. It is also about giving Scottish businesses improved access to the countries that will be gateway to the wider Indo-Pacific region which is projected to make up the majority of global growth in the future.

Joining the trade bloc will also mean more than 99 percent of UK goods exports to CPTPP will be eligible for zero tariffs. In the long run, it could boost the UK economy by £1.8 billion and lead to a £1.7 billion increase in UK exports to CPTPP countries as result of the reduction of barriers across goods and services according to the UK Government’s published scoping assessment.

UK Government minister for Scotland Malcolm Offord said:

Finalising this trade deal is great news for Scottish business – CPTPP countries already represent a large part of the Scottish export market. It lifts the red tape for items from whisky to textiles and produce, opening new markets and increasing the global appetite for Scottish goods and services.

Key Scottish exports such as whisky could also benefit from the removal of tariffs as a result of the agreement, with the UK having exported over £1.1bn worth of whisky to CPTPP countries in 2022 in current prices. Tariffs of around 80% will be eliminated on UK exports of whisky to Malaysia over 16 years, improving market access for Scottish exporters.

Anishka Jelicich, Director of Public Affairs at Pernod Ricard UK said:

CPTPP is a big opportunity for our Scotch whisky business. Five of our top 20 export markets are CPTPP members.

We expect tariff cuts and smoother access to some of the world’s fastest growing economies to increase exports and secure jobs and investment in the UK, with sales doubling in some markets.

Edinburgh-based Cyacomb provides digital forensics software to help law enforcement, social media and cloud companies find and block harmful content many times faster than before, doing in minutes what can currently take days. Cyacomb are currently growing their exports to CPTPP member Canada, and actively working on expanding into Australia and Singapore – and the UK joining the trading bloc will help these efforts.

Ian Stevenson, CEO of Cyacomb, said:

As a growing business offering disruptive technology, time spent navigating the complexities of international trade is time not spent on delivering value to customers or advancing our mission.

CPTPP will simplify doing business and remove economic barriers in working with our customers in Canada, and in other markets we’re working to enter including Australia and Singapore.

CessCon Decom are based in Livingston and have an office in Brunei, where they carry out full turnkey decommissioning, dismantlement, reuse and recycling of offshore oil & gas infrastructure.

This work now contributes a significant amount to their turnover, and the UK joining the CPTPP will help them further their work there once Brunei and the UK have both ratified CPTPP, in addition to opening up new markets.

Lee Hanlon, the CEO of CessCon Decom commented:

Accession to CPTPP will create further opportunities for CessCon that were not available as part of the EU and will further extend our existing relationships with Brunei that are important to our business.

Along with the other fast developing world markets that this opens up to us, we’re excited to see the possibilities that being a member of the CPTPP opens up to our business.

Membership is a gateway to the wider Indo-Pacific region, which has 60% of the world’s population and is set to account for the majority (54%) of global economic growth and around half of the world’s billion middle-class consumers in the decades ahead.

As a member of CPTPP, the UK will help influence and shape global rules for industries of the future like digital, data and services, and secure our place as a global leader in a network of countries committed to free trade.

The UK and CPTPP members will now take the final steps required for the UK to formally sign in 2023.

Background:

• The UK is the first new member and European country to join CPTPP, which is made up of 11 Pacific nations including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

• Five rounds of talks with UK and CPTPP chief negotiators took place in total, with many more negotiations alongside. More than 150 delegates from all CPTPP member countries attended for the final round in Vietnam alone.

• The UK will sign our CPTPP accession letter following legal review, in due course. This will take place on terms that are right for the UK.

• Membership will improve trade opportunities with all countries in the bloc, including the nine countries with which we already have a bilateral FTA.

• The Government has been clear that the NHS and the price it pays for drugs is not for sale in any trade negotiations – including CPTPP – and that it will not sign trade deals that compromise the UK’s high environmental protections, animal welfare and food standards.

• Joining CPTPP is a critical part of the government’s wider trade strategy, which aims to deepen links with faster-growing parts of the world beyond Europe, partnering with countries who believe in free and fair trade.

Additional benefits of UK accession to CPTPP include:

• Boosting services: The UK is the world’s second largest services provider and services accounted for 43% of our trade with CPTPP members last year. Joining the bloc will slash red tape – UK firms will not be required to establish a local office or be resident to supply a service and will be able to operate on a par with local firms.

• Increased flexibility: Modern ‘rules of origin’ could make British businesses more competitive by allowing them to trade more freely across the bloc. For example, UK car manufacturers could sell car engines tariff-free to a car maker in the bloc who could then sell those cars tariff-free to any member country. This is currently not possible under all the bilateral trade agreements the UK has in place with CPTPP members and will help exporters diversify their supply chains and create new export opportunities.

• Pro-investment: Investment between the UK and CPTPP countries is expected to increase as the agreement contains provisions to limit barriers and encourage more inward investment. Inward investment stocks to the UK from CPTPP countries were worth £182 billion in 2021.

• Cutting-edge: Remotely delivered services from the UK to CPTPP were worth £20.5 billion in 2020. CPTPP sets modern rules for digital trade across all sectors of the economy and will support UK businesses of all sizes to seek new opportunities in CPTPP markets.

• New markets: Joining means we will have a Free Trade Agreement with Malaysia for the first time, giving businesses far more access to an economy worth £271 billion in GDP in 2021.  Tariffs of around 80% will be eliminated on UK exports of whisky and 30% on UK exports of cars, helping the UK get a larger share of the market.

A new bill introduced today (Wednesday 29 March) will support businesses by modernising the business rates system to incentivise property improvements and support more frequent revaluations.

The measures being put forward review and reform business rates in England, making them fairer and more responsive to changes in the market.

The Non-Domestic Business Rating Bill will introduce more frequent valuations, to take place every three years instead of the current five, meaning those with falling values will see their bills drop sooner.

It will also provide new business rates improvement relief, so businesses making qualifying building improvements will not face higher business rates bills for 12 months. This will make it easier for businesses to invest with new reliefs for property improvements, providing tax breaks for businesses who are extending or upgrading their property.

Local Government Minister, Lee Rowley MP said:

The introduction of our Non-Domestic Rating Bill seeks to deliver the reforms announced during our Business Rates Review.

We are bringing the administration of the tax up to date, and making the system more responsive to changes in the economy and introducing new support to reduce barriers to business investment.

This is another step in the right direction for making sure the UK continues levelling up and supports businesses to grow and flourish.

The bill will build on recent steps to cut business rates, with £13.6 billion of support announced at the Autumn Statement, and to redistribute the tax through the 2023 revaluation.

Victoria Atkins, Financial Secretary to the Treasury, said:

I want businesses to know that the government is on their side. Businesses have asked for changes to the business rates system and we are acting, including with more frequent revaluations to make the system fairer and more responsive.

And they come on top of £13.6 billion of business rates support which resets the balance between bricks and clicks businesses, helping our much-loved high streets and communities.

Melanie Leech, Chief Executive at the British Property Federation, said:

These measures are a welcome step towards creating a business rates system that is fair for all. The British Property Federation has long-called for more frequent revaluations to help ensure the level of rates payable reflects current market conditions and structural changes in the economy.

A move from five to three yearly revaluations is a marked improvement, and we would like to see Government continuing to strive towards even more frequent revaluations in due course. The introduction of a business rates improvement relief is also a welcome boost as property owners and occupiers work together to decarbonise and futureproof older buildings and support the UK’s journey to net-zero.

Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said:

Retailers welcome moving to three-yearly revaluations, meaning business rate bills will reflect underlying market conditions more quickly. Changes to valuation appeals processes and more transparency are also vital and the improvement relief will encourage more retailers to invest in their properties. These are all positive changes, but the job is not done. Government’s focus must remain on reducing the rates burden, enabling more local communities across the country to thrive.

The Non-Domestic Rating Bill has been informed by the Business Rates Review, which ran from July 2020 to October 2021. The consultation responses can be viewed online here.

The Bill has been introduced in parliament and will be debated in due course.

• UKEF appoints its first International Export Finance Executive (IEFE) for South Korea
• The IEFE will help to facilitate trade links between the two countries, with £4 billion of financing on offer
• UKEF seeking to grow number of South Korean businesses looking to invest and trade with the UK, particularly within renewable energy and clean growth sectors

UK Export Finance (UKEF) today announces it has appointed its first International Export Finance Executive (IEFE) for South Korea. With £4 billion of funding on offer to buyers, provided they source 20% from the UK, the IEFE will work to facilitate major financing deals for Korean businesses who seek to build relationships with UK exporters.

The role will provide a dedicated, on-the-ground specialist within the British Embassy in Seoul, working closely with major UK government departments to showcase the expertise, capability and profile of UK businesses.

Coming as the UK and Korea mark 140 years of diplomatic relations and look to deepen ties, including in trade and investment, the appointment aims to strengthen existing trade relations and build on UKEF’s track record in the region, following three offshore wind projects it supported in Taiwan in recent years, including the £230 million Formosa 2 Project.

South Korea currently sits as the UK’s 18th largest export market, with £10.2 billion worth of exports sold to the country in the four quarters to the end of Q2 2022.

UKEF CEO Tim Reid said:

We’re delighted to have a UKEF specialist in South Korea for the first time, as it signals the start of new opportunities for UK businesses to increase trade in the region, with government-backed finance. South Korea is a major export destination for us already and we’re glad to deepen our existing trade relationship.  Both countries stand to gain from the innovation and creativity that exists in the South Korean economy: by identifying projects that deliver on our mutual goals and ensuring that the UK supply chain is at the forefront. Our new International Export Finance Executive will ensure that the trade relationship between South Korea and the UK will continue to evolve and strengthen for the future.

The appointment of an IEFE in Seoul is the latest development in UKEF’s drive to expand its global IEFE network, which will now total 7 representatives in Asia and a further 13 in key markets across the Americas, South Asia, Asia Pacific and Africa.

Tony Clemson, Country Director at the Department of Business and Trade said:

I am delighted we have an IEFE joining our team. This new expertise in export finance will add rocket fuel to our UK-Korea trade relationship. UK businesses have significant capabilities in green technologies and can help accelerate the net zero transition in both Korea and third markets.

The appointment is announced as preparations for negotiations for an enhanced Free Trade Agreement between the UK and South Korea are underway, setting the stage for a further strengthening of trade relations and closer cooperation between the two countries.

• Childcare revolution to expand 30 hours free childcare for children over the age of nine months, alongside boosts to subsidised childcare for parents on Universal Credit including upfront support.
• A £27 billion tax cut for business through radical ‘full expensing’ policy and capital allowances reform which will drive investment and growth.
• Measures to ease cost-of-living burden will help more than halve inflation, with extension of Energy Price Guarantee and duties on fuel and a pub pint both frozen.
• Major set of reforms to support people into work, removing barriers that stop those on benefits, older workers, and those with health conditions who want to work from working.
• Inflation falling, debt down and growth up in Chancellor’s Spring Budget for Growth that delivers upon the Prime Minister’s economic priorities.

Aimed at achieving long-term, sustainable economic growth that delivers prosperity for the people of the United Kingdom, the Spring Budget breaks down barriers to work, unshackles business investment and tackles labour shortages head on.

Chancellor of the Exchequer, Jeremy Hunt said:

“Our plan is working – inflation falling, debt down and a growing economy.

“Britain is on a lasting path to growth with a revolution in childcare support, the biggest ever employment package and the best investment incentives in Europe.”

The Chancellor announced 30 hours of free childcare for every child over the age of 9 months, with support being phased in until every single eligible working parent of under 5s gets this support by September 2025.

The government will also pay the childcare costs of parents on Universal Credit moving into work or increasing their hours upfront, rather than in arrears – removing a major barrier to work for those who are on benefits. The maximum they can claim will also be boosted to £951 for one child and £1,630 for two children – an increase of around 50%.

The Chancellor went on to set out plans to continue to support households with cost-of-living pressures including keeping the Energy Price Guarantee at £2,500 for the next three months and ending the premium that over 4 million households pay on their prepayment meter, bringing their charges into line with comparable customers who pay by direct debit. Taken together with all the government’s efforts to help households with higher costs, these measures bring the total support to an average of £3,300 per UK household over 2022-23 and 2023-24.

To help household budgets further, the planned 11 pence rise in fuel duty will be cancelled, maintaining last year’s 5p cut for another twelve months, saving a typical driver another £100 on top of the £100 saved so far since last year’s cut.

The generosity of Draught Relief has also been significantly extended from 5% to 9.2%, so that the duty on an average draught pint of beer served in a pub both does not increase from August and will be up to 11 pence lower than the duty in supermarkets. The commitment to duty on a pub pint being lower than the supermarket has been termed the “Brexit Pubs Guarantee” by the Chancellor, and this change will also be enjoyed by every pub in Northern Ireland thanks to the Windsor Framework.

The Chancellor also set out a comprehensive plan to remove the barriers to work facing those on benefits, those with health conditions and older workers. An increase in the pensions Annual Allowance from £40,000 to £60,000 and the abolition of the Lifetime Allowance will remove the disincentives to working for longer. A new ‘Returnerships’ skills offer for older workers and more stringent Universal Credit job search requirements also feature in the plan that will boost the UK’s workforce, fill vacancies and support economic growth.

In line with the government’s vision for the UK to be the best place in Europe for companies to locate, invest and grow, a new policy of ‘full expensing’ will be introduced for the next three years to boost business investment in an effective cut to corporation tax of £9 billion per year. This makes the UK the joint most competitive capital allowances regime in the OECD and the only major European economy to have such a policy. The independent Office for Budget Responsibility (OBR) forecast that this will increase business investment by 3% for every year it is in place. Mr Hunt signalled an intention to make this scheme – which covers equipment for factories, computers and other machinery – permanent when responsible to do so.

Accompanying forecasts by the OBR confirm that with the package of measures Mr Hunt set out today, the economy is on track to grow with inflation halved this year and debt falling – meeting all of Prime Minister Rishi Sunak’s economic priorities. This comes alongside the confirmation that there are no new tax rises within the Spring Budget.

Childcare

Significant reforms to childcare will remove barriers to work for nearly half a million parents with a child under 3 in England not working due to caring responsibilities, reducing discrimination against women and benefitting the wider economy in the process.

• 30 hours of free childcare for every child over the age of 9 months with working parents by September 2025, where eligibility will match the existing 3-4 year-old 30 hours offer.
• This will be introduced in phases, with 15 hours of free childcare for working parents of 2-year-olds coming into effect in April 2024 and 15 hours of free childcare for working parents of 9 months – 3 years old in September 2024.
• The funding paid to nurseries for the existing free hours offers will also be increased by £204 million from this September rising to £288 million next year.
• Schools and local authorities will be funded to increase the supply of wraparound care, so that parents of school age children can drop their children off between 8am and 6pm – tackling the barriers to working caused by limited availability of wraparound care.
• Childcare costs of parents moving into work or increasing their hours on Universal Credit paid upfront rather than in arrears, with maximum claim boosted to £951 for one child and £1,630 for two children – an increase of around 50%.
• In recognition of both the importance and short supply of childminders, incentive payments of £600 will be piloted from Autumn of this year for those who sign up to the profession (rising to £1,200 for those who join through an agency) to increase the number available and increase choice and affordability for parents.

Employment

The Chancellor set out a comprehensive plan to help people move into work, increase their hours, and extend their working lives, including for those on benefits.

• The Lifetime Allowance charge will be removed before being abolished altogether, removing barriers to remaining in work and simplifying the tax system by taking thousands out of the complexity of pension tax.
• The Annual Allowance will be increased from £40,000 to £60,000, incentivising highly-skilled workers to remain in the labour market. As a result of the pensions tax measures announced today, an estimated 80% of NHS doctors will not receive a tax charge with respect to accruals under the 2015 NHS career average scheme.
• A new ‘Returnerships’ apprenticeship targeted at the over 50s will refine existing skills programmes to make them more accessible to older workers, giving them the skills and support they need to find a recognisable path back into work.
• The midlife MOT offer will be expanded and improved to ensure people get the best possible financial, health and career guidance well ahead of retirement. There will be an enhanced digital midlife MOT tool and an expansion of DWP’s in person midlife MOTs for 50+ Universal Credit claimants, aiming to reach 40,000 per year.
• A DWP White Paper on disability benefits reform will herald the biggest change to the welfare system in the past ten years, to make sure it better meets the needs of disabled people in Great Britain. This includes removing the Work Capability Assessment, meaning the majority of claimants will now have to do one health assessment rather than two. Reforms will also support claimants to try work without fear of losing their financial support.
• A new voluntary employment scheme for disabled people and those with health conditions called Universal Support will be funded in England and Wales. The government will spend up to £4,000 per person to find them a suitable role and cater to their needs, supporting 50,000 places per year once fully rolled out.
• A £406 million plan to tackle the leading health causes keeping people out of work, with investment targeted at services for mental health, musculoskeletal conditions, and cardiovascular disease.
• Strengthening work search and work preparation requirements for around 700,000 lead carers of children aged 1-12 claiming Universal Credit in Great Britain.
• Increasing the Administrative Earnings Threshold (AET) – which determines how much support and Work Coach time a claimant will receive based on their earnings – for an individual claimant, from the equivalent of 15 to 18 hours at National Living Wage and removing the couples AET in Great Britain. Over 100,000 non-working or low-earning individuals will be asked to meet more regularly with their Work Coach for support to move into work or increase their earnings.
• The application and enforcement of the Universal Credit sanctions regime will be strengthened, by providing additional training for Work Coaches to apply sanctions effectively, including for claimants who do not look for or take up employment, and automating administrative elements of the sanctions process to reduce error rates and free up Work Coach time.
• Elsewhere, international talent will be attracted through a new migration package that includes adding five construction occupations to the Shortage Occupation List and expanding the range of short-term business activities that are covered under the UK’s six-month business visit visa offer.

Enterprise

The Chancellor put forward a plan to boost innovation, drive business investment and hold down energy costs.

• A ‘full expensing’ policy introduced from 1 April 2023 until 31 March 2026 and an extension to the 50% first-year allowance in the same period – a transformation in capital allowances worth £27 billion to businesses over three years.
• A £500 million per year package of support for 20,000 research and development (R&D) intensive businesses through changes to R&D tax credits.
• Generous reforms to tax reliefs for the creative sectors will ensure theatres, orchestras, museums and galleries are protected against ongoing economic pressures and even more world-class productions are made in the UK.
• The Medicines and Healthcare products Regulatory Agency (MHRA) will receive £10 million extra funding over two years to maximise its use of Brexit freedoms and accelerate patient access to treatments. This will allow, from 2024, the MHRA to introduce new, swift approvals systems, speeding up access to treatments already approved by trusted international partners and ground-breaking technologies such as cancer vaccines and AI therapeutics for mental health.
• All of the recommendations from Sir Patrick Vallance’s review into pro-innovation regulation of digital technologies, published alongside Spring Budget today, are to be accepted.
• £900 million of funding for an AI Research Resource and an exascale computer – making the UK one of only a handful of countries to have one – and a commitment to £2.5 billion ten-year quantum research and innovation programme through the government’s new Quantum Strategy.

Levelling Up

To level up growth across the UK and spread opportunity everywhere, local communities will be empowered to command their economic destiny.

• Greater responsibility for local leaders to grow their local economy.
• Over £200 million for high quality local regeneration projects in areas of need, from the transformation of Ashington Town Centre to a skills and education campus in Blackburn.
• Over £400 million for new Levelling Up Partnerships for twenty areas in England most in need of levelling up, such as Rochdale and Mansfield.
• Business rates retention expanded to more areas in the next Parliament.
• Delivering trailblazer devolution deals for the West Midlands and Greater Manchester Combined Authorities that include single multi-year settlements for the next Spending Review, alongside a commitment to negotiate further devolution deals in England.
• 12 Investment Zones across the UK including 4 across Scotland, Wales and Northern Ireland
• £8.8 billion over the next five-year funding period for a second round of the City Region Sustainable Transport Settlements.

Many of today’s decisions on tax and spending apply in Scotland, Wales and Northern Ireland. As a result of decisions that do not apply UK-wide, the Scottish Government will receive around an additional £320 million over 2023-24 and 2024-25, the Welsh Government will receive £180 million, and the Northern Ireland Executive will receive £130 million.

Further information:

The news is another boost to the UK’s thriving legal services market which is the second largest in the world, employing more than 300,000 people and worth around £25 billion to the economy.

The government-backed LawtechUK programme plays an important part in this innovation and the new providers announced today (15 March) will continue to set the country apart as a leader in emerging technologies.

CodeBase is one of the country’s largest incubators which has helped hundreds of start-ups grow and scale up. They will work with Legal Geek which runs events and programmes to connect legal businesses and the technology sector.

Together they will showcase the UK as a leading place for lawtech innovation, raising the quality of start-ups and generating industry-level views to shape the country’s lawtech agenda.

They will also build on LawtechUK’s success and further support the work of the UK Jurisdiction Taskforce, an industry-led body which promotes the use of English law alongside digital legal innovations worldwide.

Justice Minister Mike Freer said:

The UK is a world leader in delivering legal services and expertise, and our ongoing investment in new technologies will make sure we are continuing to lead the way in advances and new ways of working

CodeBase and Legal Geek bring a wealth of experience and knowledge of LawtechUK that will nurture new, cutting-edge innovation in the UK.

Stephen Coleman, OBE, CEO of CodeBase, said:

Together with our delivery partners Legal Geek, who are renowned for delivering top-tier legal events, we are eager to push the boundaries of innovation and transformation in the legal industry.

We truly believe that LawtechUK will have a significant impact on the future of the legal sector, and we feel privileged to be leading the charge in this endeavour.

Beth Fellner, Legal Geek Director, said:

We will be working in partnership with CodeBase to deliver a transformational programme of activity that will engage, inspire and educate.

Legal Geek will ensure LawtechUK develops the legal sector nationwide, equipping organisations of all sizes with the culture, expertise and confidence to innovate.

LawtechUK is a government-backed initiative, launched in 2019 when Tech Nation, a leading scale-up network and growth platform for tech companies, was tasked with incubating LawtechUK and driving its objectives forward with an initial £2 million investment. It provides resources, programmes and courses to promote new ways of delivering and accessing legal services.

LawtechUK success stories include the Lawtech Sandbox – a programme helping UK founders and legal businesses develop new products including the development of software to help businesses detect risks of potential legal disputes with stakeholders.

CodeBase and Legal Geek were awarded funding following a competition process, and will take over from Tech Nation, the firm which has delivered LawtechUK for the past 3 years. They will take over LawtechUK from 1 April 2023.

The LawtechUK programme will continue to be supported by the expert LawtechUK Panel.

Notes to editors

CodeBase

CodeBase is a tech ecosystem support organisation that has supported over 500 startups and scaleups, who have collectively raised over £4 billion. Codebase is committed to promoting collaboration in tech innovation, across startups, scaleups, corporates, governments, academia and the third sector. Home to a thriving community of entrepreneurs and innovators, CodeBase provides space for startups to grow, delivers expert educational programmes and industry accelerators, and fosters connections through bridge programmes, events, meetups, and mentorship matching.

Legal Geek

Legal Geek is a global community of legal professionals and lawtech enthusiasts dedicated to promoting innovation and technology in the legal industry. Founded in 2015, Legal Geek has quickly grown to become one of the world’s largest lawtech communities, with events and initiatives held across the globe. The company’s flagship event, the Legal Geek Conference, brings together 2500 legal professionals and lawtech startups from 66 countries for a day of networking, learning, and collaboration.

A new partnership between the UK and French governments has been signed today (10 March), which will help both nations make the move towards greater energy security by moving away from fossil fuels and towards renewables and nuclear power.

Under a new deal signed today by Energy Security Secretary Grant Shapps and France’s Energy Minister, Agnes Pannier Runacher, the UK and France commit to further cooperation on civil nuclear, to capitalise on both countries ambitions to significantly grow their sectors.

Already, the UK and France have a decades-old partnership on nuclear power. French company EDF are leading the development of Hinkley Point C in Somerset, and following an historic £700 million investment announced by Grant Shapps last November, the UK government is a co-shareholder in the proposed Sizewell C project in Suffolk with EDF. This investment represented the first state-backing of a nuclear project in Britain in over 30 years.

The statement also commits France and the UK to work together, along with other G7 leaders, to take concerted action to cut reliance on civil nuclear and related goods from Russia, including working to diversify their supplies of uranium and nuclear fuel production capability.

The UK currently has 3 interconnectors with a capacity for 4 GW of electricity interconnection with its French partners. Today’s agreement could also have the potential to support an increase in electricity interconnection with France by up to 2 thirds, subject to regulatory approval. Increased interconnection will support the UK’s ambition to have at least 18 GW of interconnection capacity by 2030.

Mr Shapps hopes the agreement will help lower energy bills for consumers, and boost the availability of clean renewable energy between both countries. It will also see both work to tackle barriers to deploying fast-developing low-carbon technologies, including hydrogen and carbon capture and storage (CCUS), helping create tens of thousands of jobs in the UK.

Energy Security and Net Zero Secretary Grant Shapps said:

Successful economies need plentiful and reliable energy. Putin’s barbaric invasion of Ukraine has demonstrated that energy security can only be achieved by working with our international friends.

We are already partnering with France through these energy interconnectors, but we share the ambition to go much further.

Today’s agreement could lead to two thirds boost in our interconnected power bringing more energy security and independence to the United Kingdom and France.

The UK has an ambition of up to 10GW of low-carbon hydrogen production capacity by 2030, which could support over 12,000 jobs and unlock over £9 billion in private investment by 2030. Today’s partnership supports this, as France looks to deploy low-carbon hydrogen for their own power system.

France and the UK have also recognised the potential of working together on CCUS. The UK’s North Sea has the potential to store 78 billion tonnes of CO2 on the UK continental shelf, which could be turned into a multi-billion-pound industry, supporting up to 50,000 jobs in 2030.

Notes to editors

• Read the France-UK Energy Partnership
• Ofgem estimates the benefits for GB consumers from all electricity interconnector projects to date is more than £20 billion, and analysis by the Carbon Trust found that deploying flexible technologies in the period 2015 – 2050, such as interconnection, could deliver savings of up to £40 billion

• Technology Secretary Michelle Donelan introduces Data Protection and Digital Information Bill today

• New common-sense-led UK version of the EU’s GDPR will reduce costs and burdens for British businesses and charities, remove barriers to international trade and cut the number of repetitive data collection pop-ups online

• Strengthened data regime will save UK economy more than £4 billion over next 10 years and ensure that privacy and data protection are securely protected

New data laws to cut down pointless paperwork for businesses and reduce annoying cookie pops-up are being introduced by the government today in Parliament.

The Data Protection and Digital Information Bill was first introduced last Summer and paused in September 2022 so ministers could engage in a co-design process with business leaders and data experts – ensuring that the new regime built on the UK’s high standards for data protection and privacy, and seeks to ensure data adequacy while moving away from the ‘one-size-fits-all’ approach of European Union’s GDPR.

Data is fundamental to fuelling economic growth in all areas of society from unlocking medical breakthroughs to helping people travel, manage their finances and shop online. It is vital to the development and use of innovative technologies such as artificial intelligence.

Data-driven trade generated 85 per cent of the UK’s total service exports and contributed an estimated £259 billion for the economy in 2021.

The improved bill will:

• Introduce a simple, clear and business-friendly framework that will not be difficult or costly to implement – taking the best elements of GDPR and providing businesses with more flexibility about how they comply with the new data laws

• Ensure our new regime maintains data adequacy with the EU, and wider international confidence in the UK’s comprehensive data protection standards

• Further reduce the amount of paperwork organisations need to complete to demonstrate compliance

• Support even more international trade without creating extra costs for businesses if they’re already compliant with current data regulation

• Provide organisations with greater confidence about when they can process personal data without consent

• Increase public and business confidence in AI technologies by clarifying the circumstances when robust safeguards apply to automated decision-making

Today’s data reforms are expected to unlock £4.7 billion in savings for the UK economy over the next 10 years and maintain the UK’s internationally renowned data protection standards so businesses can continue to trade freely with global partners, including the EU.

Science, Innovation and Technology Secretary Michelle Donelan said:

“Co-designed with business from the start, this new Bill ensures that a vitally important data protection regime is tailored to the UK’s own needs and our customs.

“Our system will be easier to understand, easier to comply with, and take advantage of the many opportunities of post-Brexit Britain. No longer will our businesses and citizens have to tangle themselves around the barrier-based European GDPR.”

“Our new laws release British businesses from unnecessary red tape to unlock new discoveries, drive forward next generation technologies, create jobs and boost our economy.”

Alongside these new changes, the Bill will increase fines for nuisance calls and texts to be either up to four per cent of global turnover or £17.5 million, whichever is greater, and aims to reduce the number of consent pop-ups people see online, which allow websites to collect data about an individual’s visit.

The Bill will also establish a framework for the use of trusted and secure digital verification services, which allow people to prove their identity digitally if they choose to do so. The measures will allow customers to create certified digital identities that make it easier and quicker for people to prove things about themselves.

The Bill will strengthen the Information Commissioner’s Office (ICO) through the creation of a statutory board with a chair and chief executive, so it can remain a world-leading, independent data regulator and better support organisations to comply with data regulation.

Julian David, TechUK CEO, said:

“TechUK welcomes the new, targeted package of reforms to the UK’s data protection laws, which builds on ambitions to bring organisations clarity and flexibility when using personal data.”

“The changes announced today will give companies greater legal confidence to conduct research, deliver basic business services and develop new technologies such as AI, while retaining levels of data protection in line with the highest global standards, including data adequacy with the EU.”

Chris Combemale, Chair of the DPDI Business Advisory Group and CEO of the Data & Marketing Association (DMA UK), said:

“The DMA has collaborated with the government throughout the Data Protection and Digital Information Bill (DPDI)’s development to champion the best interests of both businesses and their customers. We are confident that the bill should act as a catalyst for innovation and growth, while maintaining robust privacy protections across the UK – an essential balance which will build consumer trust in the digital economy.”

John Edwards, UK Information Commissioner, said:

“I welcome the reintroduction of the Data Protection and Digital Information Bill and support its ambition to enable organisations to grow and innovate whilst maintaining high standards of data protection rights. Data protection law needs to give people confidence to share their information to use the products and services that power our economy and society.

“The Bill will ensure my office can continue to operate as a trusted, fair and independent regulator. We look forward to continuing to work constructively with the Government to monitor how these reforms are expressed in the Bill as it continues its journey through Parliament.”

FURTHER INFORMATION

Ministers have co-designed the Bill with key industry and privacy partners – including Which? and TechUK – on amendments which will give organisations greater flexibility over how they can comply with the regime while maintaining high data protection standards.

Unleashing more scientific research

Current data laws are unclear on how scientists can process personal data for research purposes, which holds them back from completing vital research that can improve the lives of people across the country.

The Bill has updated the definition of scientific research to clarify that commercial organisations will benefit from the same freedoms as academics to carry out innovative scientific research, ​​such as making it easier to reuse data for research purposes. This will reduce paperwork and legal costs for researchers, and will encourage more scientific research in the commercial sector. The definition of scientific research in the new Bill is non-exhaustive, in that it remains any processing that ‘could reasonably be described as scientific’ and could include activities such as innovative research into technological development.

Reducing unnecessary paperwork even further

The existing European version of GDPR takes a highly prescriptive, top-down approach to data protection regulation which can limit organisations’ flexibility to manage risks and places disproportionate burdens on small businesses.

Ministers have improved the Bill to further cut down on the amount of paperwork organisations need to complete to show compliance. Now, only organisations whose processing activities are likely to pose high risks to individual’s rights and freedoms will need to keep processing records. This could include, for example, where organisations are processing large volumes of sensitive data about people’s health.

The new rules will give organisations more clarity about when they can process personal data without needing consent or weighing up their own interests in processing the data against an individual’s rights for certain public interest activities. This could include circumstances where there is a public interest in sharing personal data to prevent crime, safeguard national security or protect vulnerable individuals.

Increasing public and business confidence in AI technologies

Innovative technologies like AI and Quantum computing have the potential to create widespread benefits, such as improving the delivery of healthcare services and reducing the risk of fraud. These technologies often rely on automated decision making, where significant decisions are made about people with no human involvement, or profiling, where an automated process analyses or predicts aspects about a person, such as their abilities or behaviours.

The UK’s existing data protection laws are complex and lack clarity for solely automated decision-making and profiling which makes it difficult for organisations to responsibly use these types of technologies.

The Bill ensures organisations can use automated decision-making with more confidence, and that the right safeguards are in place for people about whom those decisions are taken. This means people will be made aware when such decisions are made and can challenge and seek human review when those decisions may be inaccurate or harmful.

New measures set out today clarify that profiling is subject to the same set of robust safeguards for automated decision making when a significant decision is taken about a person with no meaningful human involvement.

For instance, if a person is denied a job or a loan because an automated decision has been taken without meaningful human input, they can challenge that decision and request a human to review the outcome instead.

As a result of these reforms, businesses, AI developers and individuals will have greater clarity about when these important safeguards for solely automated decision-making must apply. These measures maintain the UK’s high data protection standards and help provide more transparency and accountability for decisions made by computer algorithms.

Supporting international data sharing

The UK is committed to maintaining high data protection standards and continuing the free flow of personal data between like-minded countries, which power services such as GPS navigation, smart home technology and content streaming services.

The updated Bill ensures businesses can continue to use their existing international data transfer mechanisms to share personal data overseas if they are already compliant with current UK data laws. This will ensure British businesses do not need to pay more costs or complete new checks to show they’re compliant with the updated rules.