Category: 0 Reviewed

Departments across Whitehall will work with leaders in the financial services industry to help make it easier for people to invest their money in the issues they care about.

The government has today responded to the industry-led report Growing a Culture of Social Impact Investment in the UK which made a number of recommendations to better enable people to invest in line with their values. The report was compiled by senior representatives from across the investment industry and chaired by Elizabeth Corley, vice chair of Allianz Global Investors.

As part of the response, the government has committed to work with the investment and savings industry to support the launch of further social impact investment funds.

It has also outlined plans to encourage more investments to flow into disadvantaged areas and to create investment opportunities that address social challenges, while also creating financial return.

It highlighted the need to champion and promote the social and environmental responsibility of businesses across the country.

Tracey Crouch, Minister for Sport and Civil Society, said:

People increasingly want to see their savings and investments to have a positive impact on society, as well as bring financial returns. By utilising the wealth of experience within the financial services industry, we can expand social impact investing to help build a society that works for everyone.

Even if you have a small amount of savings, or a pension pot, you should be able to invest in the issues you care about. I want to thank Elizabeth Corley and the Advisory Group. I look forward to continuing to work with the wider industry to expand social impact investment.

John Glen, Economic Secretary to the Treasury, said:

Investing can and should be a force for good, and it’s vital that industry and government work together to make it easy for people to invest in the causes they care about.

Social impact investing is brimming with potential and we are encouraging firms to develop products to meet the rising demand, while championing the industry’s potential to make a real difference to people’s lives.

The government will continue to work alongside the financial services industry and regulators and will provide a progress update in winter 2018.

Read more about the Government’s response to the Growing a Culture of Social Impact Investment in the UK report

Notes to Editors

For further information call the DCMS press office on: 0207 211 2210.

Background information – Advisory Group

In 2016, government appointed Elizabeth Corley, Vice Chair of Allianz Global Investors, to chair an industry-led Advisory Group looking at how to grow a culture of social impact investment and savings in the UK. The group included senior representatives from across the investment and savings industry.

The Advisory Group published its report in November 2017, setting out the following five key areas of recommendations:

1. Improve deal flow and the ability to invest at scale
2. Strengthen competence and confidence within the financial services industry
3. Develop better reporting of non-financial outcomes
4. Make it easier for people to invest
5. Maintain momentum and build cohesion across initiatives

In February 2018, Prime Minister Theresa May asked Elizabeth Corley to form an industry follow-up taskforce to lead on the implementation of the recommendations.

• new rules apply to businesses developing military and dual-use technology, computing hardware and quantum technology
• changes to help continue to keep the country safe and maintain UK’s global reputation as an open, trading nation
• the measures follow a review of the government’s approach to foreign investment and national security

Today (Monday 11 June 2018) the government made changes to the UK’s merger regime to recognise the growing importance of small British businesses in developing cutting edge technology products with national security applications.

In order to address changes in the market, the government amended the threshold tests for businesses in the military, dual-use, computing hardware and quantum technology sectors that are most likely to have implications for our security.

Today’s changes allow ministers to intervene on certain grounds when the target business’s UK turnover is more than £1 million, down from £70 million under the previous rules. They also remove the requirement that a merger or takeover in these sectors lead to an increase in the parties’ combined share of supply of relevant goods or services before the government is able to intervene.

Business Minister Richard Harrington said:

These new rules ensure mergers and takeovers in key areas of the economy cannot risk our national security, while maintaining the openness to trade and investment that is underpinned by our modern Industrial Strategy.

The changes follow a consultation launched last year to amend the Enterprise Act to reform and strengthen the government’s powers. Today’s new rules are the first step, with broader changes to be announced in a white paper later this year.

The government is publishing guidance today for businesses to support them in adapting to today’s changes.

Notes to editors

1. The National Security and Infrastructure Investment Review green paper, published on 17 October 2017, outlined the government’s plans to take a staged approach through short and long term measures to reform how it scrutinises national security implications of business transactions. Today’s measures are a response to this consultation on amending the Enterprise Act through secondary legislation. National security and infrastructure investment review with Part 1 government response and draft guidance.
2. The consultation on longer term proposals closed on 9 January. The government will publish a response to this consultation in due course.
3. Ministers can only intervene in mergers and takeovers (foreign or domestic) that give rise to specific public interest concerns of national security, financial stability or media plurality. However, for ministers to be able to intervene, the transaction had to meet certain thresholds. These were that the target company had a UK turnover of over £70 million, or that the merger took the merging parties’ combined share of supply to 25% or more (or increased an existing share of supply of 25% or more). There were limited exceptions to this related to some defence and media transactions.
4. The affirmative statutory instrument that comes into force today amends the share of supply test to allow the scrutiny of more mergers in 3 areas: (a) the military and dual-use sector, (b) 2 parts of the advanced technology sector, encompassing computing hardware and quantum technologies. For these areas alone, the instrument amended the share of supply test so that it is met where a merger or takeover involves a target with 25% or more share of supply in the UK, as well as where the deal leads to an increase in the share of supply to, or above, this threshold, which is the previous requirement.
5. The second, negative statutory instrument that comes into force today amends the turnover test to allow the scrutiny of more mergers in the same 3 areas of the economy. The second instrument lowers the level of UK turnover required of the target business from over £70 million to over £1 million. Both of these instruments have come into force at the same time.
6. The changes, while made for national security-related reasons, also amend the thresholds that allow the independent Competition and Markets Authority (CMA) to scrutinise mergers for competition concerns. However, neither the government or the CMA expect that the changes will bring about a material change in the CMA’s approach to the assessment of mergers on competition grounds. The CMA have today also published their technical guidance in relation to these changes ‘Guidance on changes to the jurisdictional thresholds for UK merger control’.

• For the first time ever, listed companies will legally be required to annually publish and justify pay difference between chief executives and their staff
• the directors of all large companies will also have to set out how they are acting in the interests of employees and shareholders
• reporting is part of the government’s modern Industrial Strategy which is helping ensure the UK remains a world-leading place to invest and do business.

Big firms will have to justify their chief executives’ salaries and reveal the gap to their average UK worker, under new laws to be laid in Parliament tomorrow (Monday 11 June).

It means that for the first time, UK listed companies with more than 250 UK employees will have to disclose and explain this difference – known as ‘pay ratios’ – every year.

This follows concerns that some chief executives have been receiving salaries that are out-of-step with company performance.

These new regulations are part of a package of reforms which will hold big businesses to account for the salaries they pay, while giving employees a greater voice in the boardroom.

Business Secretary Greg Clark said:

One of Britain’s biggest assets in competing in the global economy is our deserved reputation for being a dependable and confident place in which to do business.

Most of the UK’s largest companies get their business practices right but we understand the anger of workers and shareholders when bosses’ pay is out of step with company performance.

Requiring large companies to publish their pay gaps will build on that reputation by improving transparency and boosting accountability at the highest levels, while helping build a fairer economy that works for everyone.

The new regulations form a core part of the government’s modern Industrial Strategy which aims to build on the UK’s strong reputation and make sure our largest companies are more transparent and accountable to their employees and shareholders.

In addition to the reporting of pay ratios, the news laws will also:

• require all large companies to report on how their directors take employee and other stakeholder interests into account
• require large private companies to report on their responsible business arrangements
• require listed companies to show what effect an increase in share prices will have on executive pay to inform shareholders when voting on long-term incentive plans

Responding to the government’s new corporate governance laws, the chief executive of the Investment Association (IA) Chris Cummings said:

The UK has a global reputation as a leader in corporate governance and we welcome today’s package of reforms as they focus on the long-term interest of all company stakeholders, including shareholders and employees.

Investors are demanding greater director accountability and transparency on executive remuneration. Pay ratios will shine a spotlight on what executives are being paid compared with their workforce, and investors will expect Boards to articulate why the ratio is right for the company and how directors are fulfilling their duties.

Through the IA’s Public Register we are seeing investors hold business to account. The IA wants to ensure UK listed companies are run in a way that delivers long-term returns for savers and pensioners.

Director of the High Pay Centre Luke Hildyard said:

Pay ratios provide an insight into the culture and employment practices of major companies that is useful to investors, workers and wider society alike.

This is a welcome move that will greatly improve public understanding of the pay gap between those at the top and low and middle-income earners.

We hope that it will initiate a more informed debate about what represents fair, proportionate pay for workers at all levels.

Chief UK Policy Director of the Confederation of British Industry (CBI) Matthew Fell said:

The CBI is clear that high pay is only ever justified by outstanding performance. High pay for mediocre or poor performance is unacceptable.

This legislation can help to develop a better dialogue between boards and employees about the goals and aspirations of their business, and how pay is determined to achieve this shared vision.

Ratio comparisons between sectors and firms will be as meaningless as comparing apples and oranges. What’s most important is that all businesses make progress towards fair and proportionate pay outcomes.

UK Government Minister Lord Duncan said:

It only takes poor behaviour from a small number of companies to damage the public’s trust in big business. These new laws will ensure that differences in salary within large companies across Scotland and the whole of the UK – and the reasons for the variations – will be there for all to see.

Improving transparency and accountability in this way, plus other initiatives such as giving employees a voice in the boardroom, will help create a more equal and fair society while ensuring that the UK remains a world-leading place to invest and do business.

The new laws follow last year’s corporate governance reforms which sought to increase boardroom accountability.

Subject to Parliamentary approval, the regulations will come into effect from 1 January 2019 meaning that companies will start reporting their pay ratios in 2020.

The government has already:

• supported the Investment Association’s world-first public register of FTSE-listed companies where more than one fifth of shareholders have opposed resolutions on executive pay packages, directors’ re-appointments and other issues
• appointed James Wates to lead a coalition of industry and wider society bodies in drawing up the UK’s first-ever set of corporate governance principles for large private companies
• launched research into the use of share buyback schemes to see if they are being used to artificially inflate executive pay
• asked the Financial Reporting Council (FRC) to revise its Corporate Governance Code to strengthen the voice of employees and other stakeholders in the boardroom
• proposed new reforms to ensure that directors dissolving companies to dodge debts and avoid facing accusations of misconduct will face investigation for the first time.

That is why, on Saturday 30 June 2018, the company will be throwing open the doors of its North East Regional Control Centre in Wakefield to give people an insight into what really goes on behind the scenes.

Parents are being encouraged to bring their children along to find out how a motorway is run from the control room, meet the traffic officers, some who may be a familiar face from the BBC documentary A1: Britain’s Longest Road, meet some of the project teams who carry out the engineering schemes and find out what initiatives are being planned to improve safety.

There will be a chance to look round one of the traffic officer vehicles, see the impact protection vehicles that protect the workforce and get a closer look of some of the portable signs.

The tyre scanners will be available to view, along with the new leaver driver’s app and online hub.

Visitors will also have the opportunity to talk to some of our road safety partners and look around cars and motorbikes which are involved in road safety work.

There will be a guided tour and people on hand to answer any questions people may have.

Highways England operations manager Kim Taylor said:

As part of our involvement in the Year of Engineering campaign we wanted to open the doors of the regional control centre and give people a real insight into the type of work we are involved in and what goes on behind the scenes to keep our roads running.

This is the perfect opportunity for anyone who is interested in applying for a job with us to find out more about how they can get involved, and for any future budding engineers to find out more. There really is something for everyone so I would encourage people to book on to one of the two sessions we are planning using the link below.

Unfortunately we are limited by numbers so I would encourage people to book soon to avoid being disappointed.

Two sessions will be held between 10am and 12.30pm and between 1pm and 3.30pm. There will be spaces for 100 people on each session. A waiting list will be set up if any further tickets become available.

To book a slot visit the event page.

General enquiries

Members of the public should contact the Highways England customer contact centre on 0300 123 5000.

Media enquiries

Journalists should contact the Highways England press office on 0844 693 1448 and use the menu to speak to the most appropriate press officer.

An ‘Ivy League’ of Northern Powerhouse universities leading the country in science, research and innovation was called for today (7 June 2018) by the Northern Powerhouse Minister, Jake Berry.

The minister issued the call to action while speaking at the first ever Northern Powerhouse Higher Education summit held in the prestigious Foresight Centre at the University of Liverpool.

Attended by vice chancellors, academics and researchers from across the league table-topping universities of the Northern Powerhouse, the summit discussed the challenges and opportunities of automation in the workplace and how Northern universities can work more closely on solving the grand challenges of our time.

Northern Powerhouse Minister, Jake Berry, said:

Our Northern universities are developing cutting-edge technologies in areas such as advanced manufacturing at the AMRC and in experimental new 2D materials at the National Graphene Institute and Innovation Centre.

Now is the time to build on this success and bring about a new era of cooperation between universities in the Northern Powerhouse. We need an ‘Ivy League of the North’ in which the N8 Research Partnership and our other great Northern universities combine their technical knowledge, expertise and know-how to deliver the economy of tomorrow. At the heart of this we can create a highly-skilled, highly-educated new generation of graduates.

Universities Minister Sam Gyimah said:

Universities play a fundamental civic role in our society by creating opportunity through education and research.

The Northern Powerhouse partnership offers a vital opportunity to maximise relationships with local industry, and work collaboratively to deliver the skills that are needed for the future.

The rallying call for an ‘Ivy League of the North’ comes as Dr. Annette Bramley of the N8 Research Partnership and the Northern Powerhouse Minister made a joint statement stressing the importance of University collaborations in positioning the Northern Powerhouse at the heart of the fourth industrial revolution.

Dr. Annette Bramley, Director of the N8 Research Partnership, said:

I believe the future success of the Northern Powerhouse in rebalancing the UK economy and boosting the North’s economic performance is through deep collaboration – both pan-Northern and international.

Bringing our region’s great universities together at the Northern Powerhouse Education Summit emphasises our shared commitment to creating the right conditions for innovation and entrepreneurialism to thrive.

The ‘N8’ research-intensive universities of Durham, Lancaster, Leeds, Liverpool, Manchester, Newcastle, Sheffield and York deliver 119,000 jobs and £12 billion to the regional economy, provide help to more than 31,000 businesses and create more than £6.6 billion GVA (Gross Value Added) to the region.

The University of Liverpool, which plays a pivotal role in the research-intensive work of the N8 Partnership, was also announced as the latest Northern Powerhouse Partner during the Higher Education Summit. The University joins more than 120 strong businesses and organisations supporting government’s vision for a super-connected, globally-competitive northern economy with a flourishing private sector, a highly-skilled population, and world-renowned civic and business leadership.

Further information

The Northern Powerhouse Higher Education Summit was a one day conference taking place at the University of Liverpool Foresight Centre. Speakers included:

• Northern Powerhouse Minister, Jake Berry
• Executive Director at the Liverpool Knowledge Quarter Colin Sinclair
• Professor Wiebe van der Hoek, Professor of Computer Science and Dr Louise Dennis, Autonomy & Verification Laboratory, University of Liverpool
• Professor Dame Janet Beer, Vice-Chancellor, University of Liverpool and President of UUK

The Northern Powerhouse is government’s vision for a super-connected, globally-competitive northern economy with a flourishing private sector, a highly-skilled population, and world-renowned civic and business leadership.

The Northern Powerhouse Partner Programme is an essential part of creating the Northern Powerhouse.

Government is looking to build a network of partners who all believe strongly in the economic potential of the North, and support the need for a combined effort by government and business to realise that potential. There are currently over 130 businesses and organisations signed up to the partner programme.

Prospective partners can email NorthernPowerhouse@communities.gsi.gov.uk for more information about the Partners Programme and how to apply.

The N8 Research Partnership is a partnership created in 2007 of the eight research-intensive universities in Northern England – Durham, Lancaster, Leeds, Liverpool, Manchester, Newcastle, Sheffield and York. The N8 Research Partnership aims to maximise the impact of this research base by identifying and co-ordinating powerful research teams and collaborations across the North of England.