Author: Pulse Assent

The government’s Start Up Loans scheme has achieved another landmark milestone as the 100,000th business loan is granted, bringing the total support given to firms to more than £941 million, it has been announced today (Thursday 2 February).

The scheme, administered by the British Business Bank, offers financial support, guidance, and advice to entrepreneurs looking to start their own business.

Business Minister Kevin Hollinrake visited the 100,000th recipient, a thriving St Albans based noodle shop Ramen Electra, run by James Fraser, to hear about how crucial the firm’s Start Up Loan was in getting the successful business off the ground and to mark the important milestone.

Business Minister Kevin Hollinrake said:

We know how important small businesses are to our communities, creating jobs, growth, and opportunities, and that is why we are backing them all the way to not only start up, but to scale up.

As a former business owner, I know how difficult it can be to get your business off the ground, which is why I’m incredibly proud that Government-backed Start Up Loans have helped 100,000 aspiring entrepreneurs, from Shetland to Shoreditch, to make their dreams a reality.

Of the total of more than 100,000 loans, 40 percent have gone to women and one-in-five to people from Black, Asian, and other ethnic minority backgrounds.

Meanwhile, young people (aged between 18-24 years old) have received 14 percent of loans since the scheme was established in 2012.

The success of the Start Up Loans scheme has been felt nationwide, with new and exciting businesses across the country using them to establish and grow.

The top five local authorities by loan volume and value are Birmingham, Leeds, Cornwall, Hackney in East London and Manchester, demonstrating the impact of Start Up Loans across the UK. 

With 12,382 loans in the North-West, 7,117 in the East of England, 5,616 in the East Midlands and 15,39 in Northern Ireland, as well as many more across all parts of the United Kingdom, the Start Up Loans scheme has seen the entire UK benefit, with total economic activity estimated to be around £5.3 billion.

Richard Bearman, Managing Director, Start Up Loans said:

Start Up Loans supports people across the UK who are looking to start their own businesses and passing our one hundred thousand loan milestone is an amazing achievement that has been ten years in the making. We could not have achieved this without the dedicated support of our network of UK delivery partners and in-house team, and I’d like to take this chance to thank them for everything they do to make our work possible.

The government is not only supporting businesses to start up, but to scale up too. The Start Up Loans scheme was recently expanded to provide finance to eligible businesses operating for up to 5 years to support their expansion. The Business Secretary Grant Shapps also recently announced a ‘Scale-up Summit’ to bring together key technology, development and finance figures who have accelerated businesses from start-ups to scale-ups.

The Start Up Loans programme provides personal loans of up to £25,000 to aspiring businesses while also providing dedicated mentoring and support to each recipient. The goal of the scheme is to make sure that viable start-ups and early-stage businesses have the finance and support they need to thrive.

Funding for the programme comes from the Department of Business, Energy and Industrial Strategy and is administered by the British Business Bank.

Notes to editors

The regional breakdown of Start Up Loans can be seen below:

UK region	Loans made	Amount lent (£)	Average loan amount (£)
East Midlands	5,616	£51,633,229	£9,194
East of England	7,117	£68,269,520	£9,607
Isle of Man	4	£16,500	£4,125
London	20,937	£192,700,147	£9,204
North East	5,435	£49,743,110	£9,152
North West	12,382	£113,156,743	£9,139
Northern Ireland	1,539	£13,329,445	£8,661
Scotland	6,521	£58,378,802	£8,952
South East	9,997	£101,757,203	£10,179
South West	8,602	£79,218,286	£9,209
Wales	4,461	£44,664,355	£10,012
West Midlands	8,278	£76,668,091	£9,262
Yorkshire and The Humber	8,782	£84,539,388	£9,626
Region not obtained	557	£6,889,873	£12,370
Total	100,228	£941,064,690	£9,389

Businesses in the North West, North East and Yorkshire and Humberside have received more Start Up Loans on average when compared to the number of businesses in the region, than businesses in the South East and London. See table below:

Region	All UK businesses	Start Up Loans backed businesses
East Midlands	6.60%	6%
East of England	10%	7%
London	19%	21%
North East	2.70%	5%
North West	9.40%	12%
South East	15.60%	10%
South West	9.40%	9%
West Midlands	8.10%	8%
Yorkshire and The Humber	7.10%	9%
Scotland	6.20%	7%
Wales	3.50%	4%

More funding to grow British exports by making it simpler for UK professionals to work abroad has been announced by the Business Minister Kevin Hollinrake today (Wednesday 1 February).

Grants of up to £75,000 will be awarded to UK regulators and industry bodies to help them develop agreements with their international counterparts for UK professional qualifications to be recognised overseas. This will make it easier for UK businesses to export their services worldwide.

Following the success of the first round of funding, which has supported work to boost the presence of UK qualified professionals in accountancy, auditing and legal services in countries such as Australia, New Zealand, Ireland, and India, the second round of the Recognition Arrangements (RA) Grant Programme is now open.

Small Business Minister Kevin Hollinrake said:

The UK’s professionals in sectors like accountancy, audit and legal services, are rightly recognised as some of the brightest and best in the world.

This additional funding will further support UK qualified professionals to export their expertise overseas, winning contracts and scaling up their businesses.

The additional funding comes as part of the government’s plans to ensure UK-qualified professionals have the support they need to grow their businesses on the international stage.

Under the Professional Qualifications Act, the UK government can ensure regulators have the ability to agree recognition arrangements with overseas counterparts.

Following the first round of the grant programme, which saw high demand and interest from regulators, this second round will go on to continue and expand these vital efforts to boost British services exports in essential overseas markets.

The Financial Reporting Council (FRC) successfully secured funding for round one of the programme. Sarah Rapson, Executive Director of Supervision, said:

The FRC is very pleased to hear that a further round of grant funding will be available from BEIS. The availability of previous funding has enabled us to bring in the additional expertise required to support our international recognition work.

We would encourage UK professional accountancy bodies engaged in international recognition work to consider applying for a grant and make use of this valuable source of funding support.

The Recognition Arrangements Grant programme will run until 31 March 2025, with grants of up to £75,000 per financial year awarded to UK regulators and industry bodies, and a further round planned for applicants seeking 2024/2025 funding.

The UK and UAE governments have signed a Memorandum of Understanding (MoU) which will help facilitate the sharing of technical knowledge, advice, skills and expertise, opening up new avenues for cooperation on energy and climate, while boosting jobs and investment in the UK.

The Clean Energy MoU, which today was signed by the UK Business and Energy Secretary Grant Shapps and the UAE Minister of Energy and Infrastructure, His Excellency Suhail Mohammed Al Mazrouei, during the Abu Dhabi Sustainability Week, will further reinforce the robust economic links between the 2 countries developed in the nations’ 2018 MoU on Cooperation in the Field of Energy.

The MoU has been expanded to encompass the full scope of bilateral co-operation, including the new low carbon super fuel hydrogen. This builds on ADNOC – the UAE’s largest energy company – taking a 25% stake in the design stage of BP’s blue hydrogen project, H2Teesside, last year. It also acknowledges the progress the UAE has made so far on climate action, their ambition for clean energy investment and their call for finding energy solutions with like-minded partners.

Business and Energy Secretary Grant Shapps said:

The UK is immensely proud of its longstanding relationship with the UAE. Today’s latest agreements provide further evidence that not only are we are strengthening our energy security and lowering bills for consumers in the long term, we’re unlocking huge opportunities for investment in British expertise and jobs in the process.

International cooperation on energy and climate with close partners like the UAE is vital and as they take centre stage as hosts of COP28 later this year, they will have our full support every step of the way.

Memorandum of Understanding

The MoU represents a strengthening of collaboration between the UK and the UAE and follows hot on the heels of the Partnership for the Future (P4F), which was signed during His Highness President Sheikh Mohammed bin Zayed Al Nahyan’s visit to UK in September 2021 and provided a clear statement of our collective energy ambitions.

The P4F is complemented by the existing Sovereign Investment Partnership (SIP), agreed in March 2021 to serve as a coordinated investment framework to grow a future-focused relationship between the two nations, driving economic recovery, jobs and growth.

Notes to editors

This MoU replaces the MoU on Cooperation in the Field of Energy between the 2 nations signed on 19 February 2018.

• Scheme will provide a discount on high energy costs to give businesses certainty while limiting taxpayers’ exposure to volatile energy markets

• Businesses in sectors with particularly high levels of energy use and trade intensity will receive a higher level of support.

A new energy scheme for businesses, charities, and the public sector has been confirmed today (9th January), ahead of the current scheme ending in March. The new scheme will mean all eligible UK businesses and other non-domestic energy users will receive a discount on high energy bills until 31 March 2024.

This will help businesses locked into contracts signed before recent substantial falls in the wholesale price manage their costs and provide others with reassurance against the risk of prices rising again.

The government provided an unprecedented package of support for non-domestic users through this winter, worth £18 billion per the figures certified by the OBR at the Autumn Statement. This is equivalent to the cost of an increase of around three pence on people’s income tax.

The government has been clear that such levels of this support, unprecedented in its nature and huge scale, were time-limited and intended as a bridge to allow businesses to adapt. The latest data shows wholesale gas prices have now fallen to levels just before Putin’s invasion of Ukraine and have almost halved since the current scheme was announced.

The new scheme therefore strikes a balance between supporting businesses over the next 12 months and limiting taxpayer’s exposure to volatile energy markets, with a cap set at £5.5 billion. This provides long term certainty for businesses and reflects how the scale of the challenge has changed since September last year.

The Chancellor of the Exchequer, Jeremy Hunt, said:

My top priority is tackling the rising cost of living – something that both families and businesses are struggling with. That means taking difficult decisions to bring down inflation while giving as much support to families and business as we are able.

Wholesale energy prices are falling and have now gone back to levels just before Putin’s invasion of Ukraine. But to provide reassurance against the risk of prices rising again we are launching the new Energy Bills Discount Scheme, giving businesses the certainty they need to plan ahead.

Even though prices are falling, I am concerned this is not being passed on to businesses, so I’ve written to Ofgem asking for an update on whether further action is action is needed to make sure the market is working for businesses.

From 1 April 2023 to 31 March 2024, eligible non-domestic customers who have a contract with a licensed energy supplier will see a unit discount of up to £6.97/MWh automatically applied to their gas bill and a unit discount of up to £19.61/MWh applied to their electricity bill, except for those benefitting from lower energy prices.

A substantially higher level of support will be provided to businesses in sectors identified as being the most energy and trade intensive – predominately manufacturing industries. A long standing category associated with higher energy usage; these firms are often less able to pass through cost to their customers due to international competition. Businesses in scope will receive a gas and electricity bill discount based on a supported price which will be capped by a maximum unit discount of £40.0/MWh for gas and £89.1/MWh for electricity.

Energy Bill Discount Scheme summary

For eligible non-domestic customers who have a contract with a licensed energy supplier, the government is announcing the following support:

• From 1 April 2023 to 31 March 2024, 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 automatically 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, set with reference to the support provided for domestic consumers, of £107/MWh for gas and £302/MWh for electricity. This means that businesses experiencing energy costs below this level will not receive support.
• Customers do not need to apply for their discount. As with the current scheme, suppliers will automatically apply reductions to the bills of all eligible non-domestic customers.

For eligible Energy and Trade Intensive Industries, the government is announcing:

• These businesses will receive a discount reflecting the difference between a price threshold and the relevant wholesale price.
• The price threshold for the scheme will be £99/MWh for gas and £185/MWh for electricity.
• This discount will only apply to 70% of energy volumes and will be subject to a ‘maximum discount’ of £40.0/MWh for gas and £89.1/MWh for electricity.

The Chancellor has also today written to OFGEM, asking for an update in time for the Budget on the progress of their review into the non-domestic market. He has asked for their assessment of whether further action is action is needed to secure a well-functioning market for non-domestic customers following reports of challenges certain customers are facing, including in relation to the pricing and availability of tariffs, standing charges and renewal terms, and the ability of certain sectors to secure contracts.

Businesses in England will also benefit from support with their business rates bills worth £13.6 billion over the next five years, a UK-wide £2.4 billion fuel duty cut, a six month extension to the alcohol duty freeze and businesses with profits below £250,000 will be protected from the full corporation rate rise, with those making less than £50,000 – the vast majority of UK companies – not facing any corporation tax increase at all.

Further information

• There are some domestic customers who receive energy bill support via the EBRS, including those in park homes and heat networks. The government is developing options to ensure domestic consumers on a non-domestic meter continue to benefit from support in line with other domestic users after April.

• As per the current EBRS scheme, those receiving gas or electricity delivered over public networks from non-licensed providers will also benefit from comparable support under the further schemes if necessary.

• Businesses may need to register for the higher level of ETII support and details on how to apply will be released in due course. Energy and Trade Intensive Industries in scope of the additional support are listed here List of sectors eligible for the Energy and Trade Intensive Industries (“ETII”) scheme (PDF, 66.2 KB, 4 pages)

• Chancellor letter to Jonathon Brearley – Ofgem (PDF, 66.4 KB, 2 pages)

• The agreement between the UK and the North Seas Energy Cooperation (NSEC) sets the framework for greater cooperation with North Seas neighbours.
• Collaboration on development of offshore renewable energy and grid infrastructure essential for meeting UK net zero commitment and bolstering European energy security
• Initiative expected to support the UK’s ambitious targets to increase offshore wind fivefold to 50GW by 2030.

The UK Minister for Energy and Climate Graham Stuart has today (18 December) signed a landmark agreement on renewable energy cooperation with EU and North Seas countries.

The Memorandum of Understanding with the North Seas Energy Cooperation (NSEC) forum fulfils commitments in the UK-EU Trade and Cooperation Agreement (TCA), enabling the UK to work with NSEC members to develop renewables projects in the North Seas – specifically projects linking electricity interconnectors and windfarms. The countries involved include Belgium, Denmark, France, Germany, Ireland, Luxembourg, Netherlands, Sweden, Norway and the European Commission, signalling a new phase in UK-EU cooperation.

The MoU sets out the terms for future cooperation between the UK and NSEC and enables closer cooperation in the development of offshore renewable energy, including offshore grids in the North Seas.

The initiative is expected to support the UK’s ambitious targets to increase offshore wind fivefold to 50GW, and deliver 18GW of electricity interconnector capacity – up from 8.4 GW today – by 2030.

Minister of State for Energy and Climate, Graham Stuart, said:

I’m pleased to agree even greater energy cooperation with our North Seas neighbours, which will be vital in helping the UK meet it ambitious renewables target, including increasing offshore wind fivefold to 50GW by 2030.

The development of renewables in the North Seas is critical for accelerating our clean transition and boosting energy security for the UK and our European neighbours.

The UK currently sends and receives electricity through cables that link us with neighbours like France, Belgium and the Netherlands. The agreement bolsters the mission to facilitate further interconnection.

Analysis by National Grid Electricity System Operator shows that a well-integrated grid linked to offshore wind farms can deliver savings to consumers of up to around £3 billion.

The former Prime Minister Liz Truss set the ground for the MoU at the European Political Community summit in Prague in October, setting out the strong case for close cooperation with the UK’s European neighbours on energy security and boosting renewables.

Editor’s Notes

The Memorandum of Understanding is available here

The MoU sets out the terms of cooperation between the UK and NSEC. Participation in NSEC will enable the UK to develop joint offshore projects with neighbouring countries as well as shape and influence regional approaches to issues such as cross-border electricity.

Businesses have less than two months to apply for the Help to Grow: Digital scheme, the government has announced, following a decision to close the programme. The programme will close to new business applications for discounts on 2 February 2023. Discounts issued for eligible software must be redeemed within 30 days from issue date.

The scheme has supported businesses to grow, but with take-up lower than expected, the government cannot justify the continued cost of the scheme to the taxpayer. The decision has been taken to refocus efforts towards other support mechanisms for small businesses, ensuring businesses get the backing they need in the most efficient and productive way possible.

The Help to Grow Digital programme was designed to give 100,000 SMEs free and impartial advice on how technology can help their business and vouchers worth up to £5,000 to cover up to 50% of the costs of buying pre-approved software. Despite a marketing campaign, expanded eligibility of the scheme and positive feedback from users of the scheme, it did not have the take up expected, with less than one thousand vouchers redeemed by SMEs.

The government continues to support small businesses, such as through Help to Grow: Management and the government-backed British Business Bank’s Start Up Loans, which are available to help aspiring entrepreneurs start and grow their businesses.

Small businesses have also benefited from the Energy Bill Relief Scheme which provides non-domestic customers with a discount on their gas and electricity bills in light of the rise in global energy prices.

As part of the Autumn Statement, the Chancellor also announced a package of changes and tax cuts worth £13.6 billion over the next five years. The package contains new measures to reduce the burden of business rates on firms, including a freeze in the multiplier, extended and increased relief for high street businesses, an exchequer funded transitional relief scheme, and targeted support for small businesses.

Notes to editors

Small businesses who would like to know more about Help to Grow: Management and Help to Grow: Digital should visit https://helptogrow.campaign.gov.uk/.

Small businesses and stakeholders who have queries should please contact helptogrow@beis.gov.uk.

Help to Grow: Management remains in place and has received positive feedback from participating businesses so far.

The UK government is today (13 December 2022) announcing new funding to support clean energy production in the UK, following Russia’s illegal invasion of Ukraine and the subsequent impact on global energy prices.

Today’s funding includes £77 million to bolster nuclear fuel production and support the development of the next generation of advanced nuclear reactors, along with £25 million for technologies that can produce hydrogen from sustainable biomass and waste, while removing carbon dioxide from the atmosphere.

Nuclear investment

The government is today committing to new and innovative nuclear energy with the announcement of funding worth up to £60 million to kick start the next phase of research into the new cutting-edge High Temperature Gas Reactor (HTGR), a type of Advanced Modular Reactor (AMR), which could be up and running by the early 2030s. The funding, from the Advanced Modular Reactor R&D programme, aims to get a demonstration project of the engineering design up and running by the end of the decade. 

HTGRs are typically smaller than conventional nuclear power stations, more flexible, and could be built at a fraction of a cost. It is hoped that as well as safely creating electricity to power homes, HTGRs will bolster the UK’s energy sovereignty and security, by reducing reliance on expensive fossil fuels, as well as generate by-products such as low-carbon hydrogen.  By generating temperatures of up to 950 degrees, HTGRs provide a source of clean, high temperature heat that could help decarbonise industrial processes in the UK.

Today’s funding for HTGR innovation is supported with a further £4 million funding for the AMR Knowledge Capture Project, as a complementary project to the AMR Research, Development and Demonstration programme.  The project seeks to facilitate knowledge capture and sharing to reduce the time, risk, and cost of the programme delivery.

Also announced today is up to £13 million for nuclear fuel fabricators Westinghouse in Preston, which has strategic importance to producing fuel for the current UK advanced gas cooled reactor fleet. The funding will mean the UK has the option of being less reliant on imports from abroad and helps the company develop the capability to making both reprocessed uranium and freshly mined uranium.  This is a significant investment at the Westinghouse Springfields site in Lancashire safeguarding hundreds of highly skilled jobs in the northwest.

As well as bolstering UK energy security, ministers hope it will also deliver export opportunities for the sector and position the UK as a key international supplier of nuclear fuel and fuel cycle services.

The news comes a fortnight after ministers announced the further revitalisation of the UK nuclear industry, by confirming the first state backing of a nuclear project in over 30 years, with an historic £700 million stake in Sizewell C in Suffolk. The power station will produce enough electricity to power the equivalent of 6 million homes for over 50 years.

Energy and Climate Minister Graham Stuart said:

This funding package will strengthen our energy security, by ensuring we have a safe and secure supply of domestic nuclear fuel services – while also creating more UK jobs and export opportunities.

Hydrogen innovation

Set to become a super-fuel of the future, accelerating the use of hydrogen will be key to the UK’s greener energy future, alongside the government’s work to deploy renewables and nuclear to strengthen the UK’s energy security.

To support this, the government has committed £25 million to accelerate the deployment of hydrogen bioenergy with carbon capture and storage (BECCS) – a unique ‘negative emission’ technology that can permanently remove waste from the atmosphere by absorbing CO2 during the growth of the sustainable biomass and the organic content.

Hydrogen BECCS technologies will have a key role to play on the UK’s path to net zero emissions, providing hydrogen as a clean fuel for hard-to-decarbonise sectors such as transport and heavy industry. Today’s funding will go directly towards progressing BECCS projects from the design stage to demonstration, supporting the technology to eventually become integrated as part of our everyday energy system.

Energy Minister Lord Callanan said:

With its potential to go one step further than net zero, and be carbon negative – removing greenhouse gas emissions from the atmosphere – this hydrogen technology will be crucial to achieving our climate goals.

Our £25 million government funding to develop this technology will help unlock private investment and generate new green jobs – all while cutting carbon emissions.

This programme forms one of many steps the government is taking to develop a thriving low-carbon hydrogen sector as part of the UK’s green industrial revolution.

Also announced today are proposals to set higher efficiency standards for new gas boilers, which could help households save on energy bills by cutting their use of expensive fossil fuels. Improving boiler efficiency will cut carbon emissions on the way to phasing out new and replacement natural-gas-only boilers from 2035. The proposal estimates 21 million tonnes of CO2 can be saved by 2050, the equivalent of taking nearly 9 million cars off the road for a year.

In a further move towards making household heating more efficient, the government is also consulting on a proposal for all new domestic-scale gas boilers sold from 2026 to be capable of being powered by hydrogen, to prepare for any potential future transition to the use of low-carbon hydrogen for heating.

Also published today is the ‘UK Hydrogen Strategy update to the market: December 2022’, summarising the government’s action to advance the hydrogen economy since the last update this summer. Activity undertaken by government in the last few months includes:

These documents strengthen the policy and regulatory landscape for the UK’s hydrogen sector, to provide further certainty for investors and industry alike.

Stakeholder reaction

Tarik Choho, President of Nuclear Fuel at Westinghouse, said:

There is a strong global appetite for diversified and secure sources of supply of fuel and services and the UK’s nuclear excellence and experience, particularly at Springfields, offer utilities an attractive option.

We are delighted the UK government recognises the role of Springfields, and its workforce, as a strategic asset that supports a clean and secure energy future.

Jane Toogood, UK Hydrogen Champion, said:

It’s good to see the next stage of implementation of the Hydrogen Strategy, particularly the consultation on the proposal to make new gas boilers hydrogen-ready. To maintain market confidence and investment, industry needs the Government to keep up the momentum, particularly on decisions to create demand for hydrogen and progress the hydrogen business models.

Mike Foster, Chief Executive of Energy and Utilities Alliance and The Heating and Hotwater Industry Council, said:

Mandating hydrogen-ready boilers is an important step towards decarbonising homes. The government are absolutely right to support this no-regrets option. Boiler manufacturers have already made their ‘price promise’ so that a new hydrogen-ready boiler will cost the same as a natural gas appliance. So this means 1.7 million homes a year will be ready for net zero at no extra cost to the consumer, helping us hit our 2050 target.

Notes to editors

Nuclear investment

• the Springfields site is located in Salwick, near Preston in Lancashire. It is currently operated by Springfields Fuels Ltd under the management of Westinghouse Electric UK under a 150-year lease from the Nuclear Decommissioning Authority
• uranium conversion is an important stage in the nuclear fuel cycle. The funding will create expert nuclear fuel capability to convert recycled uranium in the UK that is not currently available outside Russia
• this award is subject to a signed funding agreement
• see further details about the UK’s Energy Security Strategy
• more information about the £385 million Advanced Nuclear Fund, supporting R&D on SMRs and AMRs. The AMR R&D programme was launched in Feb 2022.  The winners of Phase A were announced in Sept 2022, receiving £3.3 million. Full details on the £60 million available under Phase B

Hydrogen BECCS Innovation Programme

• the funding announced today is available through the Hydrogen BECCS Innovation Programme, and follows the launch of Phase 1, which was worth £5 million, in January. Phase 2 will support the most promising projects from Phase 1 with funding targeted at developing projects from the design stage to demonstration
• the programme aims to support the development of core technologies essential for the generation of hydrogen from sustainable biomass and waste with the ability to capture carbon
• after receiving funding for feasibility and design activities, phase 1 projects now have the opportunity to apply for additional funding to support the physical demonstration of the hydrogen BECCS technology
• today’s funding will go directly towards progressing projects from the design stage to demonstration, supporting the technology to eventually become integrated as part of our everyday energy system by 2030

Hydrogen update

As a clean fuel, emitting only water vapour when combusted, hydrogen has a critical role to play in our transition to net zero, with the potential to help reduce emissions from hard to decarbonise areas of the economy, such as transport and heavy industry.

Also published today are updates delivering on commitments set out in the UK Hydrogen Strategy and the British Energy Security Strategy. These include:

Domestic boiler consultation

Today the UK and Japan have unveiled details of a new digital partnership to turbocharge their joint working in an era of increasing global competition on tech and data.

The UK and Japan are modern tech powerhouses, with combined IT sectors worth more than £406 billion. The newly launched partnership will develop the unique strengths of both countries and deliver on the UK’s ambition, set out in this year’s Digital Strategy, to increase international collaboration on complex tech issues.

The partnership will structure engagement between the UK and Japanese governments on a range of digital issues, including how to improve the resilience of globally significant supply chains such as semiconductors and telecommunications. The countries will develop joint research and development initiatives to share expertise about these vital technologies.

The UK and Japan will strengthen foundations for trade and investment between their tech economies and make it easier for businesses to operate in both countries by aligning approaches to digital regulation.

Improving cyber resilience is a priority for the partnership, which will see the UK and Japan promote initiatives to standardise the security of internet-connected products and apps and address the risks of digital services in supply chains.

Collaboration between the UK’s data regulator, the Information Commissioner’s Office (ICO), and Japanese regulators will be supported through the partnership to give businesses and citizens greater certainty about the security of data sharing between both countries.

At the centre of the partnership will be the UK-Japan Digital Council, an annual meeting between ministers from the UK’s Department for Digital, Culture, Media and Sport (DCMS) and representatives from the Japanese Ministry of Internal Affairs and Communications, the Ministry of Economy, Trade and Industry and the Digital Agency to drive forward new priorities.

UK Digital Secretary Michelle Donelan said:

The UK’s relationship with Japan has grown from strength to strength in recent years based on a foundation of shared goals and values. Our thriving tech sectors are another opportunity for us to work together to benefit citizens and businesses across both countries. I look forward to deepening our relationship through the UK-Japan Digital Partnership in the future.

Both governments will use international settings such as Japan’s G7 Presidency and the G20 to tackle shared goals and challenges with other global partners.

This new partnership further delivers on the UK’s goal, set out in the Integrated Review, to become the European nation with the broadest presence in the Indo-Pacific region which is increasingly critical as global tech competition and international assertiveness intensifies.

The UK and US will work together to increase energy security and drive down prices, as part of an initiative announced by the Prime Minister and US President Biden today (7th December).

Under the new ‘UK-US Energy Security and Affordability Partnership’, the UK and US will drive work to reduce global dependence on Russian energy exports, stabilise energy markets and step up collaboration on energy efficiency, nuclear and renewables. The initiative will be steered by a new UK-US Joint Action Group, led by senior officials from the UK Government and the White House.

This new partnership follows the Prime Minister and President Biden’s meeting at the G20 Summit in Indonesia, where they agreed to take forward work to address our short-term energy needs and spearhead efforts to speed up our energy transition.

Putin’s war in Ukraine has caused an international spike in energy prices. To help deal with the resulting rise in the cost of living, the group will work to ensure the market delivers sustained increases in the supply of Liquified Natural Gas (LNG) to UK terminals from the US and will collaborate on energy efficiency measures. 

As part of this, the US will strive to export at least 9-10 billion cubic metres of LNG over the next year via UK terminals, more than doubling the level exported in 2021 and capitalising on the UK’s leading import infrastructure. This will be good for both UK and European partners as we look to replenish gas storage next year. To fulfil this shared objective, both governments will work to proactively identify and resolve any issues faced by exporters and importers.

The group will also work to reduce global reliance on Russian energy by driving efforts to increase energy efficiency and supporting the transition to clean energy, expediting the development of clean hydrogen globally and promoting civil nuclear as a secure use of energy.

The Prime Minister said:

Together the UK and US will ensure the global price of energy and the security of our national supply can never again be manipulated by the whims of a failing regime.

We have the natural resources, industry and innovative thinking we need to create a better, freer system and accelerate the clean energy transition. This partnership will bring down prices for British consumers and help end Europe’s dependence on Russian energy once and for all.

The partnership will build on the work of the UK-US Strategic Energy Dialogue led by energy ministers, with a focus on gas supply, energy efficiency, civil nuclear and clean energy.

On civil nuclear, the partnership will promote nuclear energy as a safe and reliable part of the clean energy transition. This includes deepening global collaboration on nuclear fuels and advanced nuclear technologies.

The partnership will also drive international investment in clean energy technologies, from offshore wind to carbon capture. This will complement the work the UK and US are doing together with G7 partners to support the use of clean and sustainable energy in developing countries through the Just Energy Transition Partnerships.

In tandem with shoring up security of energy supply, the group will exchange best practice and work on measures to increase energy efficiency and reduce demand for gas. It is already estimated that there could be an 8% reduction in demand for gas in the UK this winter. The Joint Action Group will explore policy solutions to enhance this efficiency, building on UK Government initiatives such as the Help to Heat Programme.

The initiative will pursue innovative energy solutions, such as the decarbonisation of the aerospace industry and development of sustainable aviation fuel technologies, collaborative efforts on electric vehicles, and Energy Smart Appliances.

We will also continue our close collaboration on Carbon Capture Usage and Storage, and progress the Clean Hydrogen Mission. The UK and US are already co-leads of the Hydrogen Breakthrough Agenda, a flagship initiative to push forward clean hydrogen internationally.

A world-first heavy tractor powered by farm waste is just one of the game-changing projects benefitting from £73 million in new funding for the development of clean transport technologies announced today (Friday 2 December).

The joint government and industry investment will support projects right across the UK, from Burnaston to Bridgwater, in support of ambitions to build an end-to-end supply chain for zero-emissions vehicles (ZEVs) in the UK. The five successful projects are set to support 3,300 jobs across the UK, working on new ways to harness renewable fuels, electric motors that are both powerful and highly efficient, and new materials that’ll reduce the auto industry’s carbon footprint.

The funding has been awarded through the Advanced Propulsion Centre (APC) Collaborative Research and Development programme, which supports the development of innovative low and zero-carbon automotive technology, with £36.4 million coming from government. This is backed by a further £36.6 million from the automobile industry – taking today’s total to £73 million.

Business Secretary Grant Shapps said:

“Our automotive industry is a world-leader, creating jobs whether in Essex, Somerset or Glasgow. Seizing the potential from new technologies will be a key part of its future success, while also making our roads cleaner, greener and more affordable.

“Today’s multi-million-pound boost – created by government working hand-in-hand with industry – will put these firms in pole position to pioneer these innovations, staying at the cutting edge of the global race for decades to come.”

Joint government and industry funding winners are:

HVS, Glasgow
Receiving £30 million to develop a hydrogen fuel cell-powered HGV cab and tractor unit to replace the highly polluting diesel-powered vehicles currently used to transport road freight.

CNH Industrial, Essex
Receiving £15.6 million to develop the world’s first liquid fugitive methane-powered, off-road, heavy tractor. It makes use of methane gas produced by waste from farms, that would otherwise escape into the atmosphere.

Toyota, Derbyshire
Receiving £11.3 million to develop a hydrogen-fuel cell version of the Hilux pickup truck, ideal for use in isolated settings where electric vehicle charging is impractical.

Constellium, Slough
Receiving £10 million to provide new sources of recycled aluminium that could massively reduce the auto industry’s carbon footprint.

Electrified Automation, Somerset
Receiving £6 million to up-scale a market-disrupting new method for manufacturing electric motors that are more cost-effective, powerful and efficient than much of the competition.

Chief Executive at the APC Ian Constance said:  

“Supporting vital research and development in the UK, now more than ever, provides an opportunity to invest in transport decarbonisation as well as boost growth in the automotive sector.

“The £73 million of funding announced today furthers world-leading innovation in net-zero technology for the automotive sector and beyond. These five fantastic projects are all collaborative by design, led by high-profile companies with innovative SME and academic partners, representing the best of UK industry.”

Today’s announcement comes on top of funding also being invested by the government through the Automotive Transformation Fund (ATF) to develop a high-value end-to-end electrified automotive supply chain in the UK.

This includes unlocking private investment in gigafactories, battery material supply chains, motors, power electronics, and fuel cell systems. The ATF is being delivered by the Department for Business, Energy and Industrial Strategy in partnership with the Advanced Propulsion Centre.

The government has committed a record £211 million to battery research and innovation through the Faraday Battery Challenge, to help the sector deliver 100,000 jobs in battery gigafactories and the battery supply chain by 2040. The funding will be delivered by UK Research and Innovation (UKRI) with support from the Faraday Institution, Innovate UK and the UK Battery Industrialisation Centre (UKBIC).

The UK Hydrogen Strategy sets out how government, working with industry, is aiming to develop 10GW of hydrogen production capacity by 2030, for use across the economy. This forms a part of the British energy security strategy for delivering secure, clean and affordable British energy for the long term.

Notes to editors

Funding winners

Toyota – Hilux FC

An £11.3 million project, supported by £5.6 million from government with a further £5.7 million from industry, to develop and pilot production of a hydrogen fuel cell-powered version of the Toyota Hilux pickup truck. This will support more than 250 jobs across the UK over the next decade. Toyota have sites at Burnaston, Derbyshire, and Deeside, North Wales.

Electrified Automation – PIMMS

PIMMS (Process Innovations for electric Motor Manufacturing Solutions) will up-scale a new method for manufacturing permanent magnet electric motors, which are used in a wide range of electric vehicles. This £6.02 million project is being supported by £3.01 million from the government with a further £3.01 million from industry. Electrified Automation are based in Bridgwater, Somerset.

HVS – Hydrogen-Electric HGV Powertrain Development

A £30 million project, supported by £15 million from government with a further £15 million from industry, to develop a hydrogen fuel cell-powered HGV cab and tractor unit, to replace the diesel-powered equivalents currently used across the UK and Europe. HVS are based in Glasgow.

Constellium – CirConAl project

CirConAl, which stands for Circular and Constant Aluminium, is a project aiming to improve how industry manages scrap aluminium. The objective is to provide the auto industry with lower carbon and lower cost sources of recycled aluminium alloys. £5 million in government funding is supporting this £10 million project, with a further £5 million from industry. Constellium’s UK base is in Slough.

CNH Industrial – ATLAS

This £15.6 million project, supported by £7.8 million from government with a further £7.8 million from industry, will develop the world’s first liquid fugitive methane powered, off-road, heavy tractor. This form of methane can be derived from livestock manure, which could be a sustainable source of fuel in agricultural settings. CNH Industrial are based in Basildon, Essex.

About the Advanced Propulsion Centre UK

The Advanced Propulsion Centre (APC) collaborates with UK government, the automotive industry and academia to accelerate the industrialisation of technologies, supporting the transition to deliver net-zero emission vehicles.

Since its foundation in 2013, APC has funded 188 low-carbon projects involving 426 partners, working with companies of all sizes, and will have helped to create or safeguard over 50,000 jobs in the UK. The technologies developed in these projects are projected to save over 312 million tonnes of CO2, the equivalent of removing the lifetime emissions from 12.6 million cars.

With its deep sector expertise and cutting-edge knowledge of new propulsion technologies, APC’s role in building and advising project consortia helps projects start more quickly and deliver increased value. In the longer term, its work to drive innovation and encourage collaboration is building the foundations for a successful and sustainable UK automotive industry.