Month: July 2023

The Department for Business and Trade has today announced an indefinite extension to the use of CE marking for UK businesses.

This comes as part of a wider package of smarter regulations designed to ease business burdens and help grow the economy by cutting barriers and red tape. Following extensive engagement with industry, British firms will be able to continue the use of CE marking alongside UKCA.

The Business Secretary acted urgently on this issue, to prevent a cliff-edge moment in December 2024 when UKCA was set for entry. This intervention will ensure businesses no longer face uncertainty over the regulations and can cut back on unnecessary costs freeing them up to focus on innovation and growth.

Business Minister Kevin Hollinrake said:

The Government is tackling red tape, cutting burdens for business, and creating certainty for firms – we have listened to industry, and we are taking action to deliver.

By extending CE marking use across the UK, firms can focus their time and money on creating jobs and growing the economy.

Tina McKenzie, Policy Chair of the Federation of Small Businesses (FSB) said:

It’s welcome to see the continued recognition of CE marked products. This will allow time for small firms to adjust to the UKCA marking system and focus on growing their business both at home and overseas.

Stephen Phipson, CEO of Make UK, the manufacturers’ organisation said:

This is a pragmatic and common sense decision that manufacturers will very much welcome and support. This announcement will help safeguard the competitiveness of manufacturers and aid the UK as a destination for investment.

It should bring more confidence about doing business in the UK and recognises the need to work with the reality of doing business. Make UK has worked extensively with UK Government pushing hard for this decision and we are pleased the ongoing engagement has delivered this positive outcome.

The extension will provide businesses with flexibility and choice to use either the UKCA or CE approach to sell products in Great Britain.

London, 27 July 2023… The United Kingdom (UK) and Singapore held the 8th UK-Singapore Financial Dialogue in London yesterday. The Dialogue facilitated a useful exchange of views, and identified opportunities for further collaboration on joint projects, in priority areas such as sustainable finance and FinTech and innovation.

Sustainable Finance

Both countries agreed on the urgent need to develop approaches that facilitate and scale financing to support the transition of economies to net zero.

A. Transition Finance:

The UK and Singapore agreed that globally comparable and transparent transition plans that include credible forward-looking information can help reduce fragmentation, scale transition finance, and support sustainability in finance more generally. Both countries recognised the value of increased cooperation on transition plans to mobilise real economy emission reductions. The Monetary Authority of Singapore (MAS) provided updates on Singapore’s focus on scaling blended finance and addressing energy transition needs in Asia, MAS’ Finance for Net Zero Action Plan (FiNZ Action Plan) and initiatives to mobilise green and transition financing to catalyse Asia’s net zero transition. The UK provided updates on the Transition Plan Taskforce’s (TPT) work to finalise its disclosure framework and the TPT’s international engagement with governments and regulators on the international applicability of the framework alongside the International Sustainability Standards Board’s (ISSB) final standards.

B. International standards:

The UK and Singapore re-affirmed their continued support for a global framework of sustainability disclosures based on the ISSB final standards for general reporting on sustainability and for climate-related disclosures. Both countries are committed to implementing globally interoperable sustainability disclosures. Both sides also welcomed the International Organization of Securities Commissions’ (IOSCO) endorsement of the ISSB’s standards. It was recognised that a global framework for transition and sustainability disclosure standards is necessary to promote a simple, consistent, and effective regulatory environment for firms, regulators, and financial authorities. Both the UK and Singapore agreed to support the ISSB in implementing the standards and reaching its goal of achieving globally interoperable disclosure standards by, for example, supporting capacity building efforts and sharing experiences. Both countries also exchanged views on their respective Environmental, Social, and Governance (ESG) data and ratings codes of conduct which have been published for consultation[1]. The UK and Singapore agreed to explore how to deepen bilateral cooperation and promote global coordination and common expectations.

C. Nature and Biodiversity:

The UK and Singapore re-affirmed the need to deepen the understanding of nature and biodiversity loss and its impact on the financial sector. Both countries welcomed an upcoming joint research project on nature-related financial risks in Southeast Asia involving the University of Cambridge Institute for Sustainability Leadership (CISL) and the Singapore Green Finance Centre, which is co-managed by Imperial College Business School and Singapore Management University (SMU). The UK shared its efforts to quantify UK’s financial and economic risks from exposure to nature degradation through the work by the UK’s Green Finance Institute with support of the Bank of England (BoE) and Department for Environment, Food & Rural Affairs (DEFRA). The UK provided an update on the latest developments from the Taskforce on Nature-related Financial Disclosures (TNFD), ahead of the final publication of the TNFD framework in September 2023.

FinTech and Innovation

The UK and Singapore exchanged views on the latest developments on their respective work in the digital space.

A. Crypto and Digital Assets:

The UK and Singapore agreed to contribute to efforts to develop global regulatory standards for crypto and digital assets as part of international standard setting bodies such as IOSCO, and working groups under the Financial Stability Board (FSB), and welcomed the FSB recommendations on crypto-assets including stablecoins. The UK provided an update on its approach and industry feedback on the Future Financial Services Regulatory Regime for Crypto-assets consultation[2], and the regulatory rules for marketing crypto-assets[3]. Singapore shared its perspectives on regulatory developments on stablecoins and consumer protection measures for Digital Payment Token Services[4].

B. Central Bank Digital Currency (CBDC):

The UK and Singapore held a productive discussion on their respective approaches towards CBDC, with the UK updating on the “Digital Pound” consultation and plans for the current design phase. Singapore shared its approach towards exploring use cases for a digital Singapore Dollar, and efforts that are being undertaken to foster interoperability[5]. Singapore also provided an update on its exploration of wholesale CBDC[6] for cross-border foreign exchange settlement. Both countries will continue discussions and share insights and experiences.

C. Project Guardian:

Singapore shared the latest developments on its private-public sector collaborative initiative to test the potential and feasibility of asset tokenisation. Both countries agreed to consider future collaboration opportunities in this area.

D. E-Wallets:

The UK welcomed the outcome of MAS’ review of e-wallet caps, including the increase to the relevant limits imposed on e-wallets[7].

Cross-border Arrangement for selected Trading Venues

The UK provided an update on the cross-border arrangements between the UK and Singapore for exchanging information in relation to derivatives trading venues, which concerns (i) the UK’s and Singapore’s derivatives trading obligations; and (ii) the classification of regulated markets for the purpose of Exchange Traded Derivatives trading. Both countries acknowledged the value of continued cooperation to support the G20 OTC derivatives reforms.

The UK and Singapore renewed their commitment to engagement beyond the Dialogue through a series of roadmap engagements. Further cooperation was agreed on Sustainable Finance and FinTech and Innovation ahead of the next Financial Dialogue due to be held in Singapore in 2024.

An industry-led UK-Singapore business roundtable on sustainable finance took place on 25 July 2023. Industry participants discussed the financing opportunities and challenges in meeting net zero targets, and how the financial industry could help to address these.

The Dialogue was jointly chaired by Deputy Managing Director (Markets and Development) of MAS, Mr Leong Sing Chiong, and Director General (Financial Services) of HM Treasury (HMT), Ms Gwyneth Nurse. The Dialogue was attended by senior officials from MAS, HMT, BoE, Financial Conduct Authority, the High Commission of the Republic of Singapore in London, and the British High Commission in Singapore.

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About the Monetary Authority of Singapore

The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors and financial market infrastructures. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructures, adoption of technology, and upgrading of skills in the financial industry.

About HM Treasury

HM Treasury is the UK government’s economic and finance ministry, maintaining control over public spending, setting the direction of the UK’s economic policy and working to achieve strong and sustainable economic growth.

The department is responsible for:

• public spending: including departmental spending, public sector pay and pension, annually managed expenditure (AME) and welfare policy, and capital investment;
• financial services policy: including banking and financial services regulation, financial stability, and ensuring competitiveness in the City;
• strategic oversight of the UK tax system: including direct, indirect, business, property, personal tax, and corporation tax;
• the delivery of infrastructure projects across the public sector and facilitating private sector investment into UK infrastructure; and
• ensuring the economy is growing sustainably

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[1] MAS launched its Consultation Paper on Proposed Code of Conduct for ESG Rating and Data Product Providers on 28 June 2023, and the UK ESG Data and Ratings Code of Conduct Working Group (DRWG) published the Draft Voluntary Code of Conduct for ESG Ratings and Data Product Providers for consultation on 5 July 2023.

[2] HM Treasury Consultation and call for evidence published in February 2023

[3] FCA introduces tough new rules for marketing crypto-assets

[4] MAS Publishes Investor Protection Measures for Digital Payment Token Services

[5] MAS proposes standards for digital money

[6] MAS Launches Expanded Initiative to Advance Cross-Border Connectivity in Wholesale CBDCs

[7] MAS Response to Consultation on Proposed Amendments to Restrictions on Personal Payment Accounts that Contain E-Money

• UK and Indonesia conclude second annual Joint Economic and Trade Committee (JETCO), aimed at boosting trade ties, in London
• Unlocks potential for UK businesses to sell more to Indonesia, which is set to become seventh largest economy in the world by 2050
• Minister for International Trade Nigel Huddleston and Indonesian Vice Minister for Trade Dr Jerry Sambuaga agreed in the meeting to grow digital trade and continue to focus on renewable energy opportunities.

The UK and Indonesia have today [Thursday 20 July] held the second Joint Economic and Trade Committee (JETCO) to help grow trade between the two countries – already worth £3.5 billion a year.

With a population of 275 million, Indonesia is the largest South East Asian nation and economy and presents huge opportunities for UK businesses. Its rapidly growing economy is forecast to reach the world’s top ten by 2035 and be its seventh largest by 2050. The JETCO was launched in 2022 to help promote and develop trade.

At today’s meeting, Minister for International Trade Nigel Huddleston and Indonesia’s Vice Minister of Trade Dr Jerry Sambuaga agreed to establish a working group on the digital economy and develop renewable energy opportunities – two areas of key interest for UK businesses.

International Trade Minister Nigel Huddleston said:

Indonesia has an incredibly exciting economy. We’re ready to deepen our trade ties with this growing economic powerhouse by opening exciting new opportunities for UK businesses selling to Indonesia.

We are playing to our strengths, focusing our attention on areas of mutual benefit like digital trade. Making trade easier in these areas will provide a boon to our world-leading services industries.

The UK is the second largest exporter of services in the world and the majority of these were delivered by digital means. Easing digital trade could unleash growth in UK services exports, already worth £658 million to Indonesia last year.

In discussions today, Minister Huddleston also highlighted opportunities for increased collaboration in areas such as food and drink, agriculture, education services, Indonesia’s energy transition, legal services and fintech.

The UK-ASEAN Business Council (UKABC) provides awareness on the latest opportunities in the region and facilitates trade and investment content delivery for UK companies looking to expand their operations into markets across Southeast Asia.

The Rt Hon the Lord Vaizey of Didcot, Chair of the UK-ASEAN Business Council, said:

Indonesia’s increasingly tech-savvy population and a growing middle class make it an incredibly attractive market for UK businesses. The UK-ASEAN Business Council is committed to supporting the growth of the UK-Indonesia trading relationship, by working with both governments to promote the tremendous number of trade and investment opportunities it has to offer.

Annual bilateral trade between the UK and Indonesia is growing, with trade up 33% in current prices in 2022 on the previous year. By working together to address barriers to trade we have the potential to increase trade, grow both economies, and give UK businesses better access to a significant and thriving market.

Paul Dyson, CEO Crossrail International (CI) said:

This JETCO is testament to the close bond between the UK and Indonesia. Indeed, Crossrail International have a strong trading relationship with Indonesia and are proud to be offering advice and providing support to their Ministry of Transport on two nationally significant rail projects – Jabodebek LRT and HSR Bandung to Jakarta.

Background

• The JETCO was first launched in 2022 to boost trade and investment and remove obstacles affecting UK businesses trading with Indonesia.
• The first UK-Indonesia JETCO established working groups on renewable energy and clean growth, and on agriculture, food and drink.

• Ministers are urging employers to do more to keep workers healthy and reduce the numbers out of work due to long-term sickness
• Consultation launching on measures to increase employer uptake and widen reach of Occupational Health
• Plans include a new standard for businesses to adopt to boost health in the workplace
• Better workplace support expected to grow the economy and tackle inactivity by improving productivity and preventing health-related job losses

The Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) are today [Thursday 20 July] publishing a consultation on ways to increase uptake of Occupational Health provision.

Employers will be encouraged to take up Occupational Health offers to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.

These proposals include introducing a national “health at work” standard for all employers to provide a baseline for quality Occupational Health provision, which includes guidance, an option to pursue accreditation, and additional government support services – for example outreach workers to support SMEs to meet the standards.

It also seeks views on developing longer-term workforce capacity to help meet any increased demand for Occupational Health services in the future by:

• Encouraging NHS leavers or those who are considering a career change to pivot towards the Occupational Health specialism
• Developing a longer-term, multi-disciplinary workforce to provide Occupational Health services

The consultation will also ask employers to share their examples of good Occupational Health provision to help inform other businesses and encourage them to provide the same.

Secretary of State for Work and Pensions, Mel Stride MP, said:

This Government is investing billions in getting people back to work and growing the economy. We need employers to keep playing their part too.

Healthy businesses need healthy workers – employers will benefit from higher retention rates, more productive workers, and fewer work days lost due to sickness. Improving health in the workplace is a vital piece of the puzzle in our drive to increase employment.

Minister for Disabled People, Health and Work, Tom Pursglove MP, said:

Long-term sickness is a huge contributor to economic inactivity, and while of course some people are unable to work, better accommodation of health problems in the workplace will open up a wider workforce to employers and support employees with a range of needs.

Many small and medium-sized business owners already invest significantly in the health and wellbeing of their workforce, but this will be a gamechanger in identifying and removing obstacles to people with health conditions starting, staying and succeeding in work.

To also help keep people in work, the government will today also publish a separate consultation looking at options to increase investment in Occupational Health services by UK wide employers through the tax system. This follows its announcement at the Spring Budget where it committed to consult on incentivising greater provision of Occupational Health through the tax system.

The government wants to explore the case for providing additional tax relief to businesses on their Occupational Health costs. In particular, the consultation asks respondents for their experiences of providing Occupational Health, including what services they provide and any barriers they experience. It also asks for evidence on the effectiveness of existing tax incentives and asks respondents for their views on the merits of expanding the existing Benefit-in-Kind relief, and thoughts on any alternative tax incentives.

Tax reliefs on Benefits-in-Kind are already available for certain occupational health services. This consultation will test if expanding these reliefs or introducing new ones could be an effective lever to achieve greater Occupational Health provision, as well as thoughts on any alternative tax incentives. The consultation will determine if expanding tax incentives is an appropriate measure to boost Occupational Health provision.

This is all a key component of the measures in the 2023 Spring Budget to grow labour market participation, reduce economic inactivity and get more people into work. The Department is helping millions to return to work with inactivity falling by 360,000 since the peak of the pandemic.

Long-term sickness is currently the main reason people of working-age give for being economically inactive, but just under half of workers have access to Occupational Health services. Over 90% of large employers offer Occupational Health support, compared to under a fifth of small ones.

Occupational Health provision can help employers provide work-based support to manage their employees’ health conditions, leading to better retention and return-to-work prospects, and improving business productivity, which can be adversely impacted by sickness absence.

Secretary of State for Health and Social Care, Steve Barclay said:

High quality Occupational Health support in more workplaces would not only help to reduce economic inactivity, but it can lead to a healthier, happier workforce.

The individual health benefits are clear and by focusing on preventative measures, we can reduce the burden on the NHS and help to bring waiting lists down, which is one of the government’s top priorities.

Angela Rowntree, Occupational Health Physician for the John Lewis Partnership, said:

At John Lewis Partnership we are moving away from reactively managing sickness to proactively supporting our Partners’ health and wellbeing at work.

Our founder, Spedan Lewis understood this when he launched an in-house health service for all Partners in 1929 – nearly 20 years before the NHS was established – and we’re proud to be part of his legacy today, providing advice and support to help our Partners achieve their potential in the workplace.

We welcome this new focus on ensuring other businesses and their employees are able to access better workplace health.

The Occupational Health consultation will run until 23:59 on Thursday 12 October 2023.

Further information

• The consultation opens on Thursday 20 July and closes on Thursday 12 October.

Media enquiries for this press release – 0115 965 8781

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The UK and Turkey have today [18 July] announced plans to begin talks on an updated free trade agreement (FTA).

The deal would replace the existing UK-Turkey FTA, which was rolled over from when the UK left the European Union and doesn’t cover key areas of the UK economy like services, digital and data. The UK is the second biggest services exporter in the world – behind only the US, and the services sector contributes around 80% of the UK’s GDP.

A new deal could boost trade and help UK companies maximise opportunities in this area, driving economic growth – one of the Prime Minister’s priorities.

The announcement follows a call between UK Business and Trade Secretary Kemi Badenoch and Turkish Minister for Trade Ömer Bolat last week, where they committed to negotiating a new deal and deepening the trade relationship between the two countries.

The UK-Turkey Joint Committee consisting of the UK’s Chief Negotiator and officials from both sides – responsible for overseeing implementation of the current agreement – will meet today in Ankara, Turkey’s capital city to formally conclude the review of the current agreement and move towards renegotiation of the Free Trade Agreement.

Business and Trade Secretary Kemi Badenoch said:

Turkey is an important trading partner for the UK and this deal is the latest example of how we are using our status as an independent trading nation post-Brexit to negotiate deals that are tailored to the UK’s economic strengths.

I look forward to using the deal to deepen the UK-Turkey trading relationship, drive economic growth and support businesses up and down the country.

Turkey presents huge opportunities for British businesses, with UK companies already exporting to its growing market of 85 million people.

The new FTA is an opportunity to strike a 21st century deal that is better suited to the modern economies of both the UK and Turkey, covering areas such as digital trade and services.

It would build on an already thriving trading relationship which reached £23.5 billion in 2022 – up more than 30% from the previous year – and better support UK businesses exporting or looking to export to the country. A new FTA could also potentially lead to cheaper goods and more choice for UK consumers.

Later this month, Minister for Exports Lord Offord will be visiting Turkey where he will meet businesses and stakeholders to discuss with investment and export opportunities.

President of Airbus Türkiye, Simon Ward, said:

Airbus and Turkey have been long-term strategic partners for almost 40 years and Turkey is a partner on all Airbus aircraft programmes, including the prestigious A350.

Greater alignment on cross-border trade will improve competitiveness and provide opportunities for businesses across numerous sectors.

Notes to Editors

• Turkey is a major supplier of goods such as vehicles, clothing and electrical machinery and goods to the UK, which is its 4th largest goods export market, in return for £6.4 billion of UK goods exports including power generators and metals.
• The current agreement contains a review clause that committed the UK and Turkey to review the current relationship. This work began last year with both partners concluding there would be merit in broadening and deepening the trade relationship.
• The UK expect to launch a call for input, which will be an opportunity for businesses, organisations and individuals to help shape the UK’s negotiating aims ahead of the talks. Following consultation, the government expects to start renegotiations next year.

Top financiers and philanthropists will come together in Windsor today (Monday 10 July) for a Climate Finance Mobilisation Forum to recognise and encourage efforts that increase support for emerging and developing economies to accelerate a net zero, resilient transition.

Organisations are encouraged to bring examples of recent and new activities that represent significant investments to drive climate action and harness the environmental, economic, security, and social benefits it brings – building momentum on implementation efforts that contribute to achieving the goals of the Paris Agreement.

Energy Security and Net Zero Secretary Grant Shapps and US Special Presidential Envoy for Climate John Kerry will host major financial players and philanthropists for the special event, convened as part of President Biden’s visit to the UK, before participants travel to Windsor Castle to speak to His Majesty The King and the President about the conclusions of the discussion.

It is estimated that by 2030 annual clean energy investment in these countries needs to expand by more than seven times, to above $1 trillion, in order to put the world on track to reach net-zero emissions by 2050. And that is for clean energy alone; additional investments are needed to reduce non-CO2 emissions, halt deforestation and reverse forest loss, and adapt and build resilience to climate change.

Energy Security Secretary Grant Shapps said:

Finance is the lifeblood of growing economies. Billions has been spent so far to accelerate the green transition already underway, and the UK is delivering its £11.6 billion of International Climate Finance to support countries around the world – but if we want to deliver real change, we must go further and do it together. The scale of this transition requires trillions in private investment in addition to the public funds we are spending.

Today is about uniting with our US allies and key enablers, using this world-leading expertise for the benefit of not just our own economies but those that will be most affected by climate change impacts – updating The King and President on what we’re doing to set us all on a path to net zero and greater climate resilience by unlocking private investment.

Building on the US-UK Atlantic Declaration, today isn’t just about cutting emissions, it’s also supporting countries to achieve a secure, cheaper and home-grown energy system – to grow their economy and create jobs.

US Special Presidential Envoy for Climate John Kerry said:

The climate crisis is here. It’s caused by the unabated burning of fossil fuels, and it’s going to get worse without action.  No government can solve this crisis by itself.  We need to work together with the private sector and philanthropy to speed up the net zero, resilient transition.

One important outcome of today’s event will be the ideas and potential collaborations that are seeded and the tangible action and ways private finance and philanthropies can collaborate to accelerate action on the road to COP28.

Since day one, President Biden has taken decisive action to mobilize an unprecedented effort to tackle the climate crisis, and that work continues today in partnership with the UK to raise ambition through concerted action between the public, private, and philanthropic sectors.

Currently emerging markets and developing economies account for two-thirds of global greenhouse gas emissions, and many are highly vulnerable to climate hazards. These economies are crucial for tackling climate change and halting nature’s decline, as well as being key partners for the UK and US in generating shared prosperity from the global transition.

The UK and US can capture a huge economic opportunity by supporting the global transition, whilst building closer relationships with high growth emerging markets and developing economies as they seek to meet their own financing needs.

Following Putin’s barbaric attack on Ukraine, governments are redoubling efforts not only to keep 1.5C alive, but boost cleaner, more secure and cheaper energy that moves away from costly fossil fuels.