Month: October 2023

Regional clusters of world-class innovation across the UK are being backed by a share of £75 million that will boost local economies and pioneer game-changing solutions from healthcare to net zero, UK Science Minister George Freeman has announced today (Monday 23 October).

Following pilots in Liverpool and Teesside, launched earlier this year, a further 8 Launchpads, facilitated by Innovate UK, will be rolled out across every nation of the UK. These initiatives will build on existing clusters of high-tech innovation in each region, such as renewable energy in Southwest Wales, Agri-tech in East Anglia and digital health in Yorkshire.  

Launchpads is a programme that supports emerging clusters of small and medium-sized enterprises (SMEs) by providing each Launchpad up to £7.5 million from Innovate UK to fund innovation projects led by local businesses.

The £7.5 million bespoke funding from each Launchpad will allow SMEs in each region to bid for support that is tailored to the unique needs of each business cluster, helping them drive innovation, expand operations, and boost their local economies.

Launchpads concentrate their support in specific areas of the UK with strong innovation capabilities. This approach encourages close collaboration with local leaders and provides tailored support, including funding for research and development, access to specialised innovation resources, and opportunities for SMEs to connect, share ideas, and participate in joint ventures.

Teesside University has so far taken the lead in net-zero research projects, investing in initiatives like waste diversion technologies to reduce landfill waste and protect the environment. Meanwhile, funding for Liverpool City Region is backing 23 green projects including an eco-friendly concrete block to help protect coastal communities against climate change-related flooding, which has supported dozens of jobs.

George Freeman MP, Minister of State at the Department for Science, Innovation and Technology, who has made government support for regional R&D and innovation clusters a key priority, said:

The UK science, research and innovation economy is not just the ‘golden triangle’ of Cambridge-Oxford-London. It is all around the UK.

From Glasgow satellite manufacturing to Manchester materials, Teeside hydrogen and Liverpool life sciences, alongside as many as 25 other globally recognised hubs around the UK – we have world class R&D – and supporting these regional clusters of world class innovation is central to our plan to make the UK an ‘Innovation Nation’.

That is why we have launched our flagship Launchpads programme – and this £75 million investment will support high-growth companies to build the industries of tomorrow – in sectors from renewable energy through to digital health. These Launchpads will play a pivotal role in growing our local economies, creating jobs and levelling up the UK.

The funding follows a competitive bidding process involving more than 40 proposals from across the UK put forward by local leaders and carefully evaluated by a panel of Innovate UK directors, sector experts and academics.

The project aims to establish world-leading, globally interconnected innovation clusters, catalysing increased employment, economic growth, and productivity within these regions. 

The 8 clusters, following investment in Liverpool City Region and Teesside, to receive funding are: 

• Net Zero Industry Launchpad – Located in South West Wales, this Launchpad is dedicated to the pursuit of sustainable solutions in net-zero industrial emissions
• Digital Technologies Launchpad – Positioned in North East England, this Launchpad will be at the forefront of digital technologies applied into fast growth and emerging markets
• Health Technologies Launchpad – Based in West Yorkshire, this Launchpad is dedicated to pioneering breakthroughs in technologies that will improve healthcare outcomes
• Agri-tech and Food Tech Launchpad – Nestled in Eastern England, this Launchpad will revolutionise agri-tech and food technology, driving innovation in food production and sustainability
• Marine and Maritime Launchpad – Located in the Great South West, this Launchpad will support initiatives in marine and maritime industries, fostering growth and sustainability in this sector
• Bio-based Manufacturing Launchpad – Positioned in Scotland, this Launchpad will drive innovations in bio-based manufacturing, promoting sustainable production methods 
• Immersive and Creative Industries Launchpad – Centred on Coventry and Warwickshire in the West Midlands, this Launchpad will champion technologies for the creative industries and immersive experiences, paving the way for groundbreaking innovations.  Innovate UK will deliver this Launchpad in collaboration with the Arts and Humanities Research Council (AHRC)
• Life and Health Sciences Launchpad – Situated in Northern Ireland, this Launchpad is dedicated to the advancement of healthcare solutions and medical breakthroughs

Indro Mukerjee, Chief Executive of Innovate UK said:  

Innovate UK is building strong regional partnerships across the UK to support local innovation and commercialisation.

Our new Launchpads will help to attract further private sector R&D investment into innovation clusters, growing local economies and delivering societal and economic benefits to local communities.

Welsh Secretary of State David TC Davies said:

It is fantastic that £7.5 million of UK government funding is coming to Southwest Wales to support the growing net zero industry in this part of the country.  There are some really innovative businesses who are already collaborating with each other and researchers to develop industries of the future, and this Launchpad funding will deliver what they need to take their work to the next level.

The UK government is committed to creating jobs and growing prosperity in Wales, and this is exactly the type of intervention that will help to foster a modern 21st century economy  in the Neath Port Talbot area.

UK Government Minister for Scotland, John Lamont said: 

Scotland is a world leader in scientific innovation and research and development across a range of hi-tech sectors.

This funding from the UK government for a Scottish bio-based manufacturing launchpad, connected to the other clusters across the UK, will help boost economic growth and ensure our businesses are at the forefront of sustainable production techniques.

Minister of State for Northern Ireland Steve Baker said:

The creation of a Precision Medicine Launchpad in Northern Ireland opens up fantastic opportunities for innovative small and medium healthcare and medical firms to flourish.

This new network of UK government innovation clusters provides the ideal environment for local firms to exchange ideas with experts across the UK, to progress and thrive, and will provide a wealth of economic opportunities.

Notes for editors 

Companies and consortia of innovators located within the regions and actively engaged in the designated sector will be able to bid for a share of the funding from the 23 or 30 October 2023, depending on the location. You can find out more about applying for innovation funding.

The pilot projects 

Tees Valley pilot 

Tees Valley was selected as the location for Net Zero Launchpad with the initial focus of offshore wind, hydrogen production, distribution and usage, and carbon capture, usage and storage (CCUS) within the net zero theme. 

Liverpool City Region pilot 

This pilot focused on the manufacturing sector, with digital technologies and net zero outcomes, building on the local economic strengths, R&D assets, and strategic priorities.

Global satellite services currently support activity that contributes £370 billion to the UK economy, which is around 17.7% of our GDP. As the cost of accessing space continues to fall and the pace of innovation increases, a greater number of businesses now have the opportunity to harness the advantages offered by satellites through enhanced imagery, connectivity and navigation capabilities.  

Unlocking Space for Business is an 18-month programme designed to bring these untapped benefits to hundreds of new organisations across the UK, focused on the leading transport and logistics and financial services sectors. 

Opportunity areas can include using satellite imagery to improve the measurement of climate variables and verification of customer insurance claims after extreme weather events, satellite position and navigation to support location tracking and enabling the movement of people and satellite connectivity to help crew and passengers keep in touch with operators and families on shore. 

Unlocking Space for Business will provide workshops, networking events, learning and development sessions, and online resources to support companies in their understanding of what satellite data and services can mean for them as well as offering the opportunity to bid for a share of up to £6 million UK Space Agency funding later this year to help launch innovative pilot projects, data procurement or partnerships.   

Dr Paul Bate, Chief Executive of the UK Space Agency, said:  

Unlocking Space for Business will champion the use of space and help tackle barriers facing organisations that have not traditionally used satellite data or services. This will help catalyse further investment into our growing space sector and deliver greater benefits for businesses, people, and the environment. 

This is just one of the ways we’re working to deliver the goal set out in the National Space Strategy to build one of the most innovative and attractive space economies in the world, developing new skills and creating jobs.

Satellite data and services have the ability to unlock and deliver new revenue growth opportunities, operational efficiencies, improved customer experiences and ESG benefits for organisations. 

Unlocking Space for Business will connect leading data suppliers, technology integrators, insight providers and end-users to encourage the development and adoption of innovative solutions using satellite data and services. 

Delivery of the project is being supported by PwC, a leader in human-led, tech powered business transformation, and the Satellite Applications Catapult, a leader in bringing space-based services to market. 

Faye Melly, Delivery Partner at PwC, said: 

Businesses today face significant challenges which demand innovative solutions. The to-do list can range from driving operational efficiencies and strengthening customer experience, through to taking action to drive towards Net Zero. In all of these areas space can play a pivotal role.  

Unlocking Space for Business gives UK firms the opportunity to realise the benefits of satellite data and services, and we’re proud and excited to be supporting the delivery of this programme for the UK Space Agency, in partnership with the Satellite Applications Catapult.

Organisations can register their interest to get involved with the project and keep up to date with planned activities including Insight and Networking Events, Exploration Workshops and learning and development sessions ahead of the funding call opening later in the year.  

Lucy Edge, Chief Operating Officer and Acting CEO at the Satellite Applications Catapult, said: 

We’re excited to launch Unlocking Space for Business today. By bringing together key players in the satellite industry, integrators and end users, we’ll make it easier for businesses to access the business-critical data they did not even know was available to them. We’ll also connect companies with government funding sources to test out pilot projects using satellite tech.  

Satellite services drive innovation in all businesses and will boost the bottom line. By building up these partnerships and support systems, we aim to accelerate the adoption of satellite solutions across the private sector.

Unlocking Space for Business is part of the UK Space Agency’s Inspiration Programme, directly delivering the National Space Strategy (NSS) goal to use space to deliver for UK citizens and the world by increasing public awareness of the critical role space-based assets play in our daily lives, emphasising how they can be leveraged to enable business benefits such as improving public services and combating challenges such as the climate emergency.

The Government has today [16 October] withdrawn draft regulations after consultation with companies raised concerns about imposing additional reporting requirements.

Instead, the Government will pursue options to reduce the burden of red tape to ensure the UK is one of the best places in the world to do business.

Draft regulations published in July would have added certain additional corporate and company reporting requirements to large UK listed and private companies, including an annual resilience statement, distributable profits figure, material fraud statement and triennial audit and assurance policy statement.

This would have incurred additional costs for companies by requiring them to include additional layers of corporate information in their annual reports.

Since July, the Government has completed a call for evidence on existing non-financial reporting requirements, which has identified a strong appetite from businesses and investors for reform, including to simplify and streamline existing reporting.

The Business Secretary has now decided to withdraw these regulations, and will be setting out options to reform the wider framework shortly to reduce the burden of red tape on businesses.

The Government remains committed to wider audit and corporate governance reform, including establishing a new Audit, Reporting and Governance Authority to replace the existing Financial Reporting Council. We will bring forward legislation to deliver these reforms when Parliamentary time allows.

Business Minister Kevin Hollinrake said:

Since the Government first published these draft regulations in July, discussions with businesses and stakeholders have highlighted a strong appetite for existing reporting requirements to be simplified.

The Government has decided not to implement the draft regulations at this time, while we continue at pace with our plans to reform the wider non-financial reporting framework.

This will deliver a more targeted, simpler and effective framework for both business and investors, reinforcing that the UK is one of the best places in the world for firms to list and to do business.

This move will form part of a wider package of reform from the Government to streamline and simplify regulation for businesses.

It also builds on the 12-week call for evidence launched earlier this month to carry out an in-depth review of all regulators across the UK, in a campaign to bring about smarter regulation and make companies’ lives easier.

Julia Hoggett, CEO, London Stock Exchange plc, said:

This is a welcome step and will boost the competitiveness of the UK. Good corporate governance should be an enabler for companies to grow and reach their full potential in the interests of all stakeholders. However, founders, company boards and, increasingly, shareholders have highlighted that the UK’s approach of ever-increasing corporate governance processes has, however well-intentioned, impacted the effectiveness of listed companies and the standing of the UK over other capital markets.

Releasing listed companies from the additional reporting burdens that were proposed is another step toward the level playing field UK companies need to compete and drive the growth economy to the benefit of all stakeholders. If companies are to have the certainty they need, it is vital that this reform and steps to enhance the competitiveness of the UK, are backed by political consensus.

The Capital Markets Industry Taskforce said: 

This decision is an important sign that the Government does listen to business and that the Business Secretary is prepared to remove incremental burdens on business.  

We are committed to continuing to work with the Government on more steps to ensure the UK remains a competitive environment for business and investment, including in the area of corporate governance.

David Postings, CEO, UK Finance, said:

I welcome the news that the Department for Business and Trade has listened to feedback and withdrawn these regulations. 

This is an important step in terms of making the UK an attractive place for businesses to grow and list. The government now has the opportunity to make further reforms to create a simpler, streamlined and more effective reporting and corporate governance regime.

Burkhard Keese, Chief Financial Officer, Lloyd’s said:

Lloyd’s appreciates the close and productive engagement we have had with Government on corporate governance reform.

We welcome this first step that the government is taking to ensure that the UK has a proportionate and competitive corporate governance framework and look forward to ongoing collaboration as its work continues in this area.

Miles Celic, Chief Executive Officer, TheCityUK:

The government’s decision to withdraw this proposal is a significant step which will reaffirm the UK’s reputation as a business-friendly destination.

We welcome the government’s support for fostering a growth environment in the UK and our industry remains committed to working with the public sector to increase the attractiveness of the UK as a public equity listing market and to send a strong signal globally that the UK is an ideal destination for business and investment.

Notes to editors

• The draft Companies (Strategic Report and Directors’ Report) (Amendment) Regulations 2023 were laid in Parliament on 19th July and withdrawn today. They would have introduced certain new reporting requirements on risk and dividend affordability, as part of the Government’s planned reforms of audit and corporate governance, published in May 2022.
• The Government is carrying out a Review of Non-Financial Reporting as part of its wider work on Smarter Regulation. A Call for Evidence closed on 16th August, and Ministers are considering reform options in light of that.

• Paying small businesses on time could boost the economy by £2.5 billion annually
• Measures form part of wider government review on Cash Flow and Prompt Payment

The government has today announced tougher measures to tackle the issue of late payments to small businesses. These new measures will be included in the upcoming Prompt Payment & Cash Flow Review, due to be published shortly and will improve delivery and enforcement of policies, enabling more small businesses to get paid on time.

Late payment of invoices and long payment terms are key issues that businesses, especially SMEs, highlight as a barrier to their growth. Owners and managers are forced to spend disproportionate time chasing payments; resulting cash flow problems cause even good, viable firms to struggle.

In 2022, Small and Medium-sized Enterprises (SMEs) were owed on average an estimated £22,000 in late payments. Improving payment culture in the UK will support smaller businesses, many of which do not have the resources to accommodate long or late payments from their business customers and could boost the economy by £2.5 billion annually.

That is why the Government is extending and improving the Reporting on Payment Practices and Performance Regulations and conducted the Prompt Payment and Cash Flow Review.

New measures to be announced in the review will include:

• Extending the Reporting on Payment Practices and Performance Regulations 2017. Following consultation, Government will take forward legislation to extend payment performance reporting obligations. We will include new metrics for reporting, including a value metric, so businesses and commentators can see the value of invoices, including invoices paid late, and a disputed invoices metric. We will also introduce reporting on retention payments for businesses in the construction sector.
• Providing greater advice to small businesses on negotiating payment terms that better suit them, and on how going digital can help them get paid quicker and manage their cash flow.
• Broadening the powers of the Small Business Commissioner: Introducing broader responsibilities, enabling the Commissioner to undertake investigations and publish reports where necessary on the basis of anonymous information and intelligence. This will require primary legislation, so will be subject to the legislative timetable.

The stronger measures will benefit UK businesses by fostering a stronger payment culture and providing businesses with more predictable and reliable cash flow, allowing businesses to spend and invest with greater certainty.

It will reduce the time spent by businesses chasing payments, freeing up more time for other activities that will help them to grow. Tackling late and long payments provides an opportunity to increase investment and productivity across the economy.

This will improve payment culture in the UK to support smaller businesses, many of whom do not have the resources to accommodate long or late payments from their business customers.

Secretary of State for Business and Trade Kemi Badenoch said:

SMEs make up 99 per cent of firms in the UK and are the lifeblood of our economy. I know that late payments are a massive barrier to growth and I am determined to fix that.

The measures we’re announcing will take a big step towards making sure SMEs get their payments on time, helping firms to grow and prosper.

Background

• The Government will work with partners (such as business representative organisations) and other existing initiatives (Growth hubs, Help to Grow) to help deliver an improved payment culture which will include guides on negotiating payment terms.
• The powers of the Small Business Commissioner will be broadened, enabling it to undertake investigations and publish reports where necessary on the basis of anonymous information and intelligence.
• There will be closer integration of the Small Business Commissioner with other late payment functions.
• We will strengthen the Prompt Payment Code so that business signatories must reaffirm their commitment every two years to stay on it.
• We will extend the Reporting on Payment Practices and Performance Regulations, taking forward legislation to extend payment performance reporting obligations. This will include new metrics for reporting, including a value metric, so businesses and commentators can see the value of invoices, including invoices paid late, and a disputed invoices metric.
• There will be an effective and proportionate compliance regime to help ensure that businesses required by law to report their payment data, do so.
• We will promote the benefits of digital payment technologies and of embedding prompt payments as part of firms’ ESG (environmental, social, governance) programmes, if they have them.