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• Director of Labour Market Enforcement calls for holiday pay to be enforced and payslips for all workers
• new independent report includes recommendations for bigger financial penalties for employers who break the law and tougher enforcement of rights for agency workers
• Sir David Metcalf calls for big companies to share responsibility for wrongdoing in the supply chain, including naming firms whose suppliers break employment law
• HMRC stats out today show its enforcement team helped 200,000 workers get pay owed to them

Sir David Metcalf’s independent strategy published today (Wednesday 9 May 2018) includes recommendations on:

• higher financial penalties for employers who exploit their workers and pursuing more prosecutions
• enforcing holiday pay and making it the law that employers must provide a statement of rights for employees and a payslip for all workers
• making leading brands jointly responsible for non-compliance in their supply chains. This would be done in private but with public naming of the brand and supplier for failure to correct non-compliance
• more resources to the Employment Agency Standards Inspectorate to enforce current regulations and expanding their remit to cover umbrella companies and intermediaries
• locally or regionally piloting licencing of hand car washes and nail bars, which have been identified as sectors at risk of labour exploitation
• tackling ‘phoenixing’ – the practice of directors dissolving their companies to avoid paying workers tribunal awards and other enforcement penalties

The report is launched as new HMRC stats show that its enforcement teams have doubled the number of underpaid workers they have recouped money for to 200,000 in 2017.

Sir David Metcalf said:

This strategy sets out how we can toughen up enforcement activity to protect vulnerable workers and ensure that good, compliant firms are not undercut by unscrupulous competitors.

It’s important the government has the necessary powers to crack down on bad bosses who exploit and steal from their workers – that includes bigger penalties to put employers off breaking the law.

I’d like to thank all the employers, workers and regulators I have met in the last year that have given me very valuable insights into the labour market.

Sir David Metcalf was appointed in January 2017 to oversee a government crackdown on exploitation in the workplace by setting the strategic priorities for the government’s 3 enforcement agencies:

• HMRC’s National Minimum Wage (NMW) enforcement team
• the Gangmasters and Labour Abuse Authority (GLAA)
• the Employment Agency Standards Inspectorate (EAS)

In February 2018 the government set out its ‘Good Work plan’ which introduced new reforms to ensure employment law and practice, giving millions of workers new day-one rights with sick and holiday pay to be enforced for vulnerable workers for the first time. The plan included proposals to increase transparency in the labour market, employment status, agency workers and enforce employment rights, with workers given new rights to get a payslip and a list of their rights when they start a job. In March the government also launched a consultation to improve the UK’s corporate governance framework which included proposals to give the Insolvency Service new powers to investigate directors of dissolved companies.

Business Minister Andrew Griffiths said:

We will not accept illegal behaviour from bosses who exploit their workers and cheat the competition which is why we are already cracking down on irresponsible company directors and boosting protections for workers.

We will enforce holiday pay and give new rights for every worker to get a payslip and a list of their rights when they start a job as part of our modern Industrial Strategy plans to build a Britain fit for the future.

I’d like to thank Sir David for his important work looking at enforcement and exploitation in the labour market.

Minister for Crime, Safeguarding and Vulnerability Victoria Atkins said:

Forced labour and other forms of modern slavery are cruel, barbaric crimes no individual should suffer and we will continue to work with Sir David Metcalf and other partners to stop the abuse of vulnerable workers.

Through the Modern Slavery Act and reforms to the Gangmasters and Labour Abuse Authority, our world leading approach means law enforcement have the powers to identify victims, protect vulnerable people and bring offenders to justice.

I am pleased that the Gangmasters and Labour Abuse Authority is using its new powers to tackle worker exploitation across the economy with successful investigations into high risk sectors, such as hand car washes and nail bars.

The government will respond formally to Sir David’s report in full later this year.

Notes to editors

1. The government’s Good Work plan was published in February 2018, launching consultations on increasing transparency in the labour market, employment status, agency workers and enforcing employment rights. This was in response to Matthew Taylor’s review into modern working practices in July 2017.
2. The government is consulting on measures to crack down on company directors who unfairly shield themselves from the effects of insolvency and profit from business failures while workers and small suppliers lose out.
3. The Immigration Act 2016 created measures to improve the response to labour market enforcement including creating the role of the Director of Labour Market Enforcement and reforms including widening the remit of the Gangmasters and Labour Abuse Authority (previously the Gangmasters Licensing Authority) and giving it new powers under the Police Criminal Evidence Act 1984 to investigate labour market offences across the entire economy. The Act also introduced new Labour Market Enforcement Undertakings and Orders to tackle serious or persistent offenders.

The UK’s export credit agency and Atkins International, a world leader in international project management and engineering projects, have agreed to work together to grow the company’s UK supply chain and boost UK exports.

Under the partnership, UK Export Finance (UKEF) and Atkins will identify and promote opportunities for UK infrastructure and engineering suppliers on Atkins’ projects backed by UKEF financing. This will help UK companies secure business across more than 15 international markets, boosting their export sales and revenue.

The announcement will be made today by International Trade Secretary, Dr Liam Fox MP, at the government’s first UK Trade and Export Finance Forum, hosted by UKEF and the Department for International Trade (DIT).

Dr Fox will also announce UKEF support of more than £100 million for the construction of the fourth phase of the Dubai World Trade Centre by ASGC UK.

Phase four will see the construction of an onsite hotel and will generate significant business for UK businesses, with nearly half of the supplies and services for project expected to come from the UK. This builds on UKEF support for the first three phases of the project which also included significant UK content.

International Trade Secretary, Dr Liam Fox MP, will say:

The UK’s reputation for high-quality manufacturing and highly-skilled construction is renowned the world over. This government, through UK Export Finance, is taking a proactive approach to bringing business to the UK, with wide-reaching benefits for both individual UK businesses and the UK export economy as a whole.

In UK Export Finance, the UK’s export community truly has a world-class export credit agency.

After Dr Fox’s speech, Baroness Fairhead, Minister of State for Trade and Export Promotion, will deliver an address on her ambitions for UK exporters. Her speech will highlight government support that is available for businesses that want to start exporting today and the government’s forthcoming Export Strategy.

The UK Trade and Export Finance Forum is designed to boost understanding of export finance and support available from the UK’s export credit agency among the UK business community. It will be attended by 400 representatives of UK and international business and finance.

Among those speaking will be:

• John Mahon, the newly appointed Director General for Exports at the Department for International Trade
• Antonia Romeo, Permanent Secretary of the Department for International Trade
• Louis Taylor, CEO of UK Export Finance
• Baroness Northover, HM Trade Envoy for Angola and Zambia
• Baroness Nicholson, HM Trade Envoy for Iraq, Kazakhstan and Turkmenistan
• Senior representatives from major UK exporter Alexander Dennis and multinational companies General Electric and Bechtel

DIT’s Export Hub will be stationed outside the forum at the Queen Elizabeth II Centre as part of the Exporting is GREAT campaign. It will showcase the campaign’s export champions from across the UK and trade experts will be on hand to offer advice on exporting.

Further information

This year UKEF has increased – and in many cases, doubled – its financial capacity to support exports to over 100 markets around the world, as the UK seeks to enforce its position as a leading player in the global market, and make world-leading UK expertise, products and services accessible to buyers around the world.

In 2017, UKEF was awarded ‘best export credit agency’ by Global Trade Review and Trade Finance magazines.

It is with regret and concern that we, the Leaders of France, Germany and the United Kingdom take note of President Trump’s decision to withdraw the United States of America from the Joint Comprehensive Plan of Action.

Together, we emphasise our continuing commitment to the JCPoA. This agreement remains important for our shared security. We recall that the JCPoA was unanimously endorsed by the UN Security Council in resolution 2231. This resolution remains the binding international legal framework for the resolution of the dispute about the Iranian nuclear programme. We urge all sides to remain committed to its full implementation and to act in a spirit of responsibility.

According to the IAEA, Iran continues to abide by the restrictions set out by the JCPoA, in line with its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons. The world is a safer place as a result. Therefore we, the E3, will remain parties to the JCPoA. Our governments remain committed to ensuring the agreement is upheld, and will work with all the remaining parties to the deal to ensure this remains the case including through ensuring the continuing economic benefits to the Iranian people that are linked to the agreement.

We urge the US to ensure that the structures of the JCPoA can remain intact, and to avoid taking action which obstructs its full implementation by all other parties to the deal. After engaging with the US Administration in a thorough manner over the past months, we call on the US to do everything possible to preserve the gains for nuclear non-proliferation brought about by the JCPoA, by allowing for a continued enforcement of its main elements.

We encourage Iran to show restraint in response to the decision by the US; Iran must continue to meet its own obligations under the deal, cooperating fully and in a timely manner with IAEA inspection requirements. The IAEA must be able to continue to carry out its long-term verification and monitoring programme without restriction or hindrance. In turn, Iran should continue to receive the sanctions relief it is entitled to whilst it remains in compliance with the terms of the deal.

There must be no doubt: Iran’s nuclear program must always remain peaceful and civilian. While taking the JCPOA as a base, we also agree that other major issues of concern need to be addressed. A long-term framework for Iran’s nuclear programme after some of the provisions of the JCPOA expire, after 2025, will have to be defined. Because our commitment to the security of our allies and partners in the region is unwavering, we must also address in a meaningful way shared concerns about Iran’s ballistic missile programme and its destabilising regional activities, especially in Syria, Iraq and Yemen. We have already started constructive and mutually beneficial discussions on these issues, and the E3 is committed to continuing them with key partners and concerned states across the region.

We and our Foreign Ministers will reach out to all parties to the JCPoA to seek a positive way forward.

The funding, which follows an Industrial Strategy sector deal for the creative industries earlier this year, will mean arts projects and enterprises which support their local communities, in areas including Cumbria, Manchester, Lancashire, Leeds, Liverpool, Sheffield and Yorkshire, can apply for £150,000 of government funding. This could include projects using theatre to improve child literacy or art workshops for disabled people or the elderly.

This follows the announcement earlier in the year that the government will commit £11 million through the Northern Cultural Regeneration Fund to support three major cultural projects in Blackpool, Bradford and the Lake District. Both funds will help build a legacy for the Great Exhibition of the North: showcasing the very best of art and design in the region.

The Prime Minister made the announcement at No 10 where she welcomed publishers, artists, actors, directors of art galleries and theatres and craftspeople to celebrate the contribution of creative industries to all parts of the UK. To showcase the sector’s success, companies including Warner Bros, bespoke shoe makers Carréducker, furniture designers Angus Ross, denim manufacturer Hiut Denim and Mourne Textiles exhibited their products in Downing Street.

Speaking to the audience at the reception, which included guests from Universal Music, the Natural History Museum, the National Gallery, Pinewood Studios and the National Theatre, the Prime Minister praised the creative industries which contribute £92 billion to the UK economy, providing work for more than two million people right across the country.

Prime Minister Theresa May said:

Our creative industries are at the heart of what makes Britain great, from the big screen to the local gallery. Our films captivate audiences the world over, our fashion designers surprise and delight, our architects are shaping skylines and cityscapes on every continent. In publishing, in music, in advertising and more, every day our creative industries fly the flag for Britain on the global stage.

Today, I’m delighted to announce a £3 million fund that will provide a new source of finance for creative and cultural organisations across the Northern Powerhouse. Offering a mix of grants and loans, the social investment fund will be open to non-profit, community-based organisations that deliver a positive social impact as part of our modern industrial strategy.

Arts Minister Michael Ellis said:

Britain’s creative industries are an economic and cultural powerhouse that is recognised around the world.

This new fund is another vote of confidence in the sector that will develop future talent, benefit communities and provide a lasting legacy from the Great Exhibition of the North.

The new fund builds on the £150 million invested by government and industry through the ambitious Industrial Strategy deal for the creative industries, spreading success and making the sector fit to face the future.

The power of culture and creative industries to boost economic growth is evident across the country. In Hull nearly 800 jobs have been created and almost £220 million invested in Hull’s tourism and cultural sectors since the city was named UK City of Culture 2017.

Before attending the event, President and Managing Director, Warner Bros. Entertainment UK and Ireland Josh Berger said:

Warner Bros. is proud to be a part of Britain’s world-class creative industries sector as a major investor in film, television, video games, theatre, and production facilities. Today’s reception celebrates the growth and innovation of the industry and demonstrates the government’s continued support for the incredible creative talent we have across the UK.

Deborah Carré & James Ducker, Directors of Carréducker said:

We were thrilled to be invited to Number 10 this afternoon and feel it is a validation of our hard work over the last 14 years. We think that small to medium sized businesses like Carréducker are a vital drivers of the creative industries in the UK and their contribution to the economy is proven, both in the domestic and international markets where our products and services are sold

Carréducker and businesses like ours help to give the UK its reputation in the world as a centre of excellence for both design and craft. Creativity is a vital driver of British industry and we are delighted that it is being recognised in this way.

Minister Burt said:

I welcome Lebanon’s first parliamentary elections since 2009, which took place on 6 May. I was pleased to see that the elections took place peacefully and in an orderly way, and I hope that the recommendations of the electoral observer missions will be acted on.

The United Kingdom remains steadfast in its commitment to Lebanon’s stability, security and prosperity. I hope that Lebanon’s political leaders, following the announcement of the election results, move swiftly to form a new government to address the crucial issues facing the country. I welcome calls from political leaders to carry out celebrations in a calm and peaceful manner.

The next government will have the important task of protecting Lebanon’s stability and security by: robustly implementing the policy of disassociation from regional conflict; abiding by the provisions of all relevant UN Security Council Resolutions, in particular 1559 and 1701; and ensuring that the state’s legitimate security institutions hold the monopoly on the use of force.

We also look forward to the next government making rapid progress on implementing the commitments to economic reform made at the CEDRE Conference (Conférence économique pour le développement, par les réformes et avec les entreprises) in Paris on 6 April, and working with the international community on the approach to the many refugees from Syria hosted by Lebanon, as set out in the Lebanon Partnership Paper jointly agreed at the Brussels Conference on 24 and 25 April.

The United Kingdom will remain a strong partner of Lebanon as it addresses the crucial challenges ahead.

Further information

• Follow the Foreign Office Minister Alistair Burt on Twitter @AlistairBurtUK
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