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Delivering on its commitment to tackle energy bills using innovative, low carbon solutions, the government today (Wednesday 11 April 2018) announced a new scheme for consumers and non-domestic users such as hospitals, schools and council buildings to participate in a trailblazing heat networks scheme.

Marking another step forward in the government’s Clean Growth Strategy, a key pillar of the UK’s Industrial Strategy, the government’s £320 million Heat Networks Investment Project (HNIP) will offer grants and loans to both the public and private sectors in England and Wales, for networks serving 2 or more buildings. The scheme is due to open for applications this Autumn.

Heat networks distribute heat efficiently through insulated pipes from a central source to a variety of different customers. For residents in flats, heating costs could be as much as 30% lower on a heat network than alternatives such as individual gas boilers. As well as lowering bills for domestic and non-domestic consumers, they can reduce the UK’s carbon emissions.

Heat networks could play a vital role in the long term decarbonisation of heating, as they provide a unique opportunity to exploit larger scale renewable and recoverable heat sources. Heat networks could meet up to 17% of heat demand in homes and up to 24% of heat demand in industrial and public sector buildings by 2050.

There are already a number of successful heat network projects already operating in the UK such as one in Sheffield which burns 12,000 tonnes of municipal waste each year as the main fuel source for its network. Or Southampton’s main energy centre which has over 45 energy users ranging from over 1,000 residential properties, a hospital, university, shopping centre, police headquarters and BBC studios.

Today’s announcement and government support of heat networks paves the way for the sector to grow and become a significant clean growth contributor.

Energy Minister Claire Perry said:

The UK has led in the decarbonisation of electricity, and today’s announcement shows we are just as committed to tackling heat. Today’s announcement creates a route to market for innovative energy projects across the country and demonstrates a key objective of the Clean Growth Strategy; to help deliver technologies that can lower bills, cut carbon and improve the quality of life for communities across the country.

Today’s announcement coincides with the publication of high level guidelines for the main scheme, as well as starting the process to find a delivery partner. Applications are expected to open in the Autumn with first funding decisions being made in 2019.

Notes to editors

The government investment for the £320 million Heat Networks Investment Project was first announced in the Spring Budget 2015. More details on the HNIP can be found here: www.gov.uk/government/publications/heat-networks-investment-project-hnip.

Further details on heat networks projects in the UK and other countries including Norway and Denmark across various applications, technologies and scales can be found here: www.gov.uk/government/publications/heat-network-case-studies.

Proposals to modernise the approach taken by regulators; establishing rights for consumers to benefit from their own data; making terms and conditions simpler and more understandable and taking stronger action against scams are part of a new package of measures announced by Business Secretary Greg Clark today (11 April 2018).

The Modernising Consumer Markets Green Paper will set out how regulators should ensure that consumers are not being unfairly penalised by suppliers who hold information on their behaviour; look at how their own data can be made more accessible to consumers; and make it easier for people to switch to better value services.

Andrew Tyrie, the former Chair of the Treasury Select Committee and the Commission which oversaw the separation of the high-risk activities of UK banks from their core personal and business lending activities, has been nominated to be the Chair of the UK’s independent competition authority. A new ‘strategic steer’ for the Competition and Markets Authority (CMA) has been published for consultation, which emphasises the place consumers have at the heart of the CMA’s mission.

Business Secretary Greg Clark said:

Britain has long been a world leader in ensuring that markets work in the interests of consumers, taking innovative approaches to regulation that have been taken up by other countries across the world.

I am determined that we should renew that innovative, pro-consumer approach as new technologies present new challenges and opportunities.

Today’s proposals are an important step in taking forward the objective of our Industrial Strategy to ensure that the British business environment is shaped by competition that benefits consumers in terms of keen prices, quality products and services and cutting-edge innovation.

Andrew Tyrie, nominated as Chair of the CMA, said:

Making markets work for the benefit of millions of people is what the CMA is all about. In the years ahead, competition can and should be put even closer to the centre of British economic life, reaching to every sector, rooting out monopoly and unfair trading practices, and enhancing Britain’s global competitiveness into the bargain.

The government’s 3 principles for modern consumer markets

The green paper sets out 3 principles for responding to the challenges and opportunities of modern consumer markets:

• competition is central to our approach – the government has a role in ensuring that consumers are active in the marketplace and that firms compete to provide the best goods and services for the lowest price
• new tech that works in favour of the customer – consumers should benefit from new technology and new business models, with competition and regulation working for them
• redress for when things go wrong – consumers should be able to get redress with effective enforcement in cases of consumer harm

Competition to drive innovation

The UK is an open, enterprising economy, built on innovation and competition which drive good outcomes for consumers.

As technology develops it presents new opportunities, as well as new challenges, especially for economic regulators. Suppliers increasingly hold detailed information on the habits of consumers that can be used positively to refine the service offered to them, but it can also be used against them. For example, loyal consumers may be put on to the highest tariffs, even though they may be vulnerable, and end up subsidising other consumers.

The government wants to ensure that consumers can access their own data held by companies, so that they can use it to obtain better deals.

We will keep our competition rules up to date by reviewing them to ensure that they are effective and actively applied.

We will take steps to encourage regulators to work together so that there is a consistent approach taken across different sectors.

New tech that works in favour of the customer

Emerging technologies, such as automatic switching services and apps, are making it easier for consumers to manage their services online and get the best deals. The government will ensure the development of digital technologies works for consumers, by enabling them to use their own data safely and securely to seek the most suitable product for their needs.

Redress for when things go wrong

A strong set of consumer rights contributes powerfully to people’s trust in business. When something does go wrong, the government wants people to feel confident about pursuing complaints to a swift conclusion.

Consumers made over 12 million complaints to financial services, energy and water suppliers last year. Hundreds of thousands of consumers’ complaints are being resolved through ‘alternative dispute resolution’ (ADR) which offers an alternative to court action – for example, ombudsmen, independent mediation or arbitration. Research shows that 8 in 10 consumers who used alternative dispute resolution report that their problem would not have been resolved without it. The government believes more can be done to give consumers access to high quality dispute resolution services and to avoid costly court hearings and will help consumers enforce their rights by:

• improving consumers’ awareness of and access to alternative dispute resolution and their experience of the process
• consulting on strengthening advocacy arrangements in the telecoms sector
• considering strengthening national enforcement of consumer rights, while maintaining strong levels of consumer protection at a local level.

Protecting the vulnerable

The government will work with regulators to explore how best to ensure vulnerable consumers are protected by:

• identifying and sharing best practice policies and approaches to vulnerable consumers from across sectors;
• developing a set of principles to improve the service that consumers with mental ill health and Alzheimer’s disease should expect to receive
• developing guidance for companies dealing with vulnerable consumers who rely on power of attorney.

The consultation will run for 12 weeks.

Notes to editors

Key proposals

Simpler terms and conditions

• consumers need to understand what they have agreed to when accepting a contract or privacy notice. Consumers are more likely to read and understand terms and conditions (T&Cs) if they are shortened and simplified
• the Behavioural Insights Team will produce a concise, good practice guide for business on presenting T&Cs and privacy notices online. We will consult on whether T&Cs in some sectors should be required to reach a given level of comprehension, such as measured by online testing
• the Competition and Markets Authority (CMA) is working with sector regulators, trade bodies and trading standards to improve business compliance so as to minimise use of unfair terms in consumer markets

Cracking down on subscription traps

• subscriptions are increasingly common online and many consumers who take up free trial or scam subscriptions end up inadvertently paying for unwanted services
• the Consumer Protection Partnership (CPP) will recommend how to make it easier for consumers to cancel unwanted subscriptions (including free trial subscriptions) and avoid unreasonable charges

Digital innovation

• launching a review into how to make data portability work best for all consumers in regulated markets as part of a ‘Smart Data’ review, building on the approach pioneered by Open Banking
• we are consulting on consumer perceptions of personalised pricing and on the evidence of detriment to consumers
• the new Centre for Data Ethics and Innovation will seek to ensure that our governance, rules and regulations consider public concerns around data driven technologies, and address businesses’ needs for greater clarity and certainty around data use

Driving better performance by suppliers in regulated markets

• development of ‘performance scorecards’ for suppliers and digital comparison tools in regulated markets to hold them to account for the outcomes they deliver

Protecting the vulnerable

The government will work with regulators to explore how best to ensure vulnerable consumers are protected, by:

• identifying and sharing best practice policies and approaches to vulnerable consumers from across sectors
• developing a set of principles to improve the service that consumers with mental ill health and Alzheimer’s disease should expect to receive
• developing guidance for companies dealing with vulnerable consumers who rely on power of attorney

Redress for when things go wrong

• we are consulting on the model of Alternative Dispute Resolution (ADR) that would deliver the best experience for consumers
• this includes seeking views on improving consumer awareness and take-up of ADR and raising business participation

Strengthening national enforcement of consumer rights, while maintaining strong levels of protection at local level

• the government is keen to ensure that our whole system of consumer protection provides a robust response to both local and national threats
• we will consult on how to improve accountability for the enforcement of consumer law and strengthen our system of consumer protection while maintaining strong links to local authorities

Competition to drive innovation

The government will carry out a statutory review of the competition powers, seeking views on whether the competition regime delivers competition for the benefit of consumers, provides the CMA and regulators with the tools they currently need to tackle anti-competitive behaviour and is sufficiently equipped to manage emerging challenges.

Tough new rules designed to strengthen fire testing for cladding systems on residential buildings were published for consultation today (11 April 2018) by Housing Secretary Sajid Javid.

The consultation, which aim to improve building safety, will look at restricting or banning the use of ‘desktop studies’ as a way of assessing the fire performance of external cladding systems.

The revisions come directly as a result of the recommendations made by Dame Judith Hackitt in her interim report from the review into building regulations and fire safety published last year. Government is also going further by asking whether ‘desktop studies’ should be used at all.

The consultation is seeking views on whether ‘desktop studies’ are appropriate for all construction products, wall systems (cladding) or for any other purpose.

If ‘desktop studies’ are deemed appropriate, the proposed changes include improving the transparency of assessments, enabling proper scrutiny of results and ensuring that the studies can only be carried out by properly accredited bodies that have the relevant expertise.

These proposals are subject to a full consultation that will end on 25 May 2018.

Housing Secretary, Sajid Javid said:

We have listened carefully to Dame Judith Hackitt and we are taking action to strengthen building regulations guidance, which could mean that the use of ‘desktop studies’ are either significantly restricted or banned altogether.

This demonstrates the tough measures we are prepared to take to make sure that cladding tests are as robust as possible and people are safe in their homes.

Further information

Desktop studies

Assessment in lieu of tests, also known as ‘desktop studies’ are an established part of the system for classifying the fire performance of construction products and systems set out in paragraph 1b of Annex A of Approved Document B.

Their use is being considered as part of Dame Judith Hackitt’s independent review into Building Regulations and Fire Safety established by government following the Grenfell Tower fire tragedy. Her final report will be published in the spring.

See further details of the consultation.

The deadline for consultation responses is 25 May. Once closed the department will consider all the comments received and provide a response as soon as possible.

New British Standard

Government has commissioned the British Standards Institution (BSI) to draft a standard for the extended application of BS8414 results. This will provide detailed rules for assessments relating to cladding systems, in support of the new proposed requirements. Once the new British Standard is introduced for cladding systems, following it would be the expectation.

• Minister for Export and Trade Promotion Baroness Fairhead visited London City Airport to meet airport executives and SMEs as new Exporting is GREAT campaign is unveiled
• London City Airport announces partnership with Department for International Trade (DIT) to promote British exports and support the Exporting is GREAT campaign
• Baroness Fairhead consults airport on emerging Export Strategy shortly after making final call for business to help shape the UK’s trading future

Baroness Fairhead, Minister for Export and Trade Promotion, visited London City Airport yesterday and unveiled new Exporting is GREAT branding featuring 5 export ‘heroes’.

Celebrating their partnership with the Department for International Trade (DIT), the airport is hosting the creative campaign to inspire and support more UK companies to take their first steps towards selling overseas.

The artwork is being displayed in the airport’s departure lounge and on their main ‘City Icon’ digital screen outside the terminal over the coming weeks.

Five businesses featured in the creative campaign met with the minister and CEO of London City Airport, Robert Sinclair, to discuss their export journeys. They are:

• Chemian Technologies (North East)
• Stitch and Story (South East)
• Norton Motorcycles (Midlands)
• Sensoteq (Northern Ireland)
• Joe and Seph’s Popcorn (London)

The visit came shortly after Baroness Fairhead made a final call for businesses to input into the government’s new Export Strategy which will report in the coming months.

Speaking at London City Airport, Baroness Fairhead said:

I am determined to help British businesses seize global export opportunities across the world.

The Department for International Trade is helping thousands of new companies to export every year through our online export support tools at great.gov.uk

This campaign provides a fantastic opportunity to showcase our export heroes and inspire many more businesses to sell their products overseas.

Robert Sinclair, CEO of London City Airport, said:

As a vital gateway for business travellers, and with its proximity to growing clusters of SMEs in East London, London City Airport is uniquely placed to strengthen DIT’s new campaign, and reach a truly captive audience.

Already the airport is associated with trade exports totalling over £11 billion per year, and once our 4 year £480 million development programme is complete, even more routes to new destinations and markets will help connect businesses with opportunities overseas – helping an outward-looking Britain to prosper.

Ian Dell, Managing Director of Chemian Technology, one of the companies profiled in the campaign said:

Exporting has always been of fundamental importance to Chemian Technology since I founded the business in 1996. Most of our turnover currently comes from overseas sales and we now sell to more than 30 countries worldwide.

Exporting is certainly not an easy process but I’d encourage every company with an innovative product to do what we’ve done and look overseas for growth.

DIT’s Exporting is GREAT campaign is currently showcasing 30+ UK businesses – from a range of sectors and regions – to inspire and support firms up and down the country to export.

Background

1.
The Export Strategy is expected to report in the coming months. Evidence will be taken until 18 April 2018.

2.
The Department for International Trade (DIT) secures UK and global prosperity by promoting and financing international trade and investment, and championing free trade. We are an international economic department, responsible for:

• bringing together policy, promotion and financial expertise to break down barriers to trade and investment, and help businesses succeed
• delivering a new trade policy framework for the UK as we leave the EU
• promoting British trade and investment across the world
• building the global appetite for British goods and services

3.
Exporting is GREAT is the government campaign to inspire and support more UK companies to take their first steps towards selling overseas and help existing exporters grow further. At great.gov.uk UK businesses can apply for real-time global export opportunities, access expert advice, trade services, training and events.

4.
Featured companies:

Chemian Technologies

Darlington-based Chemian Technology develops and manufactures ingredients for the pharmaceutical, chemical and cosmetic industries. The company began exporting after a request from an overseas customer and has received market support from DIT. Overseas sales make up 70% of its revenue and they export to over 20 counties.

Norton Motorcycles

Founded in 1898 and selling its first motorcycle sold in 1902, Norton Motorcycle has been an iconic British brand for nearly 120 years. Its current owner, Stuart Garner re-established the company’s UK manufacturing base and delivered the company’s first motorcycle of the new millennium in 2010.

It now sells around 1,000 motorcycles each year all over the world and employs 120 staff in the UK. Government support has allowed Norton to grow its business in key markets like Australia, Japan and the USA.

Stitch and Story

Stitch & Story, a knitting kit manufacturer, has seen sales increase by 200% in the last year as a direct result of exporting to the US, following support from DIT.

Based in Dartford, Kent, the business distributes to US marketplace Uncommon Goods, as well as independent gift stores and retailers. The exporting opportunity was secured after Stitch & Story exhibited its products at consumer trade show, NY Now, with support from DIT.

The success of Stitch & Story’s international expansion is being celebrated in DIT’s Exporting is GREAT campaign.

Sensoteq

Northern Ireland based company Sensoteq, design and manufacture bespoke low power wireless sensors for remote machine health monitoring. The company have been exporting for over a year after government support connected them with customers overseas.

Joe and Seph’s

Joe & Seph’s are a family owned and run business on a mission to produce the best-tasting popcorn in the world.

The company started exporting after a French department store saw the popcorn in Selfridges in London.

Working with DIT the company started to understand the size of the export opportunity and over the last few years have focused much more proactively on exporting.

Their products are now stocked in over 25 countries with the main focus on Scandinavia and the Middle East.

Further information

• Contact the DIT Media Team on 020 7215 2000 or email newsdesk@trade.gov.uk
• Follow us: @tradegovuk or gov.uk/dit

• Minister Andrew will outline the UK Government’s ambition for a low carbon future in a keynote speech at the North Wales and Mersey Dee Energy & Clean Growth Summit.
• The Minister to discuss the vision for North Wales’ nuclear future at Trawsfynydd power station.
• Stuart Andrew will also meet local authority leaders as part of continued engagement to develop proposals for a North Wales Growth Deal.

UK Government Minister Stuart Andrew will highlight North Wales’ potential in developing clean growth solutions to cut the cost of energy and drive economic growth in a speech to energy leaders at the North Wales and Mersey Dee Energy & Clean Growth Summit on Thursday (12 March).

Speaking at the event in Warrington, Minister Andrew will outline how the UK Government is making real progress on its Clean Growth Strategy, which sets out plans to drive growth and continue decarbonising all sectors of the UK economy through the 2020s.

Following a visit to Trawsfynydd nuclear power station in Gwynedd, the Minister is also expected to highlight the value of Small Modular Reactors (SMRs) to generate growth and create high value jobs across the UK.

After the speech the Minister will visit Rolls-Royce’s Warrington site to hear more about the UK SMR programme which supports the UK Government’s Industrial Strategy to secure homegrown, low cost and low carbon energy.

The UK has enormous potential to become a world leader in developing the next generation of nuclear technologies; an already burgeoning industry that contributed £6.4 billion to the UK economy in 2016.

UK Government Minister Stuart Andrew said:

As a naturally energy rich country, Wales’ landscape and natural resources have meant that we have been at the forefront of energy supply in the UK. Now we have the potential to build on this expertise, exploiting our resources to ensure Wales is at the forefront of the transition to a low carbon economy.

The UK Government has outlined an ambitious Clean Growth Strategy which demonstrates how the whole country can benefit from low carbon opportunities. The Industrial Strategy and the Clean Growth Grand Challenge support these ambitions by better linking up what we are doing in government with what we’d like to see industry doing.

We recognise that the nuclear expertise in North Wales has the potential to revolutionise the economy, developing new opportunities for job creation. That’s why the UK Government has already committed up to £56 million for advanced nuclear technologies.

As part of a two day visit to North Wales, Minister Andrew will also meet local authority leaders from the region on Wednesday to develop proposals for a North Wales Growth Deal, where the energy sector is likely to play an important role.

Speaking ahead of the meeting, Stuart Andrew said:

A Growth Deal in North Wales will transform the way the region is governed, bringing powers to a local level and using big ideas to unlock growth and better connect towns and cities, both within Wales and over the border.

“The landscape in North Wales lends itself perfectly to being a key player in the UK’s low-carbon energy future, and I encourage local leaders to consider its potential when formulating proposals for a bespoke deal that works for the whole of the region.

ENDS

A new world-first £13.5 million cyber innovation centre, located in the Queen Elizabeth Olympic Park, will help secure the UK’s position as a global leader in the growing cyber security sector.

The London Cyber Innovation Centre will boost the thriving East London digital cluster and spur the development of cutting-edge technology to keep the nation safe from online threats. Estimates suggest it could also help create 2,000 UK jobs in cyber security.

Startups chosen for the scheme will work with large firms as they identify cyber security challenges critical to their businesses. This will help make sure the UK’s leading entrepreneurs are creating solutions large firms need as well as securing commercial contracts and crucial investment.

A tech company was formed every hour in London in 2017 and firms attracted almost £3 billion in venture capital investment. The centre will act as a catalyst for startups and help the UK increase its slice of the global cyber security industry forecast to be worth £69 billion in 2018.

Margot James, Minister for Digital and the Creative Industries, said:

“London is the undisputed leader of European tech, with billions of investment flowing in every year and world-leading firms developing groundbreaking innovations.

“This new centre in the Olympic Park will build on the site’s legacy of excellence and spark a wave of creativity to develop the cyber security technology of the future and help protect the nation’s industry.”

The new centre will be run by Plexal from its Here East headquarters, and is being funded by the Department for Digital, Culture, Media and Sport as part of the Government’s five-year, £1.9 billion investment to keep the UK safe online.

The centre will offer a tailored programme of support to at least 72 companies over three years and is open to firms from across the UK. Other startups not on the programme will also be able to access the centre’s support and facilities.

Those chosen for the scheme will benefit from dedicated technical and engineering support from some of the world’s leading authorities on cyber security, state-of-the-art technology facilities and mentoring and professional business advice. They will also have access to an international network of cyber clusters to bring trade and investment opportunities on a global scale.

Claire Cockerton, CEO and founder of Plexal, said:

“The UK has a strong heritage in tech innovation and a fertile business environment for start-ups to grow. But our future international standing as a world-leading digitally-enabled economy depends on a robust and forward-thinking cyber security sector.

“The centre will help this to develop by delivering bespoke business development programmes, engineering resource, professional services, access to corporate buyers and ambitious investors. Our mission is to bring the whole industry together to accelerate innovation, entrepreneurship and business growth for UK PLC.”

Robert Hannigan, former director of GCHQ, said:

“The London Cyber Innovation Centre will be the launch pad for a whole generation of new cyber security companies, benefiting both the UK’s economy and its security. By combining academic excellence, expertise in innovation and access to investment, the Centre is uniquely placed to secure this country’s preeminent position in cyber security.”

Alan Foreman, CEO B-Secur, said:

“I am thrilled to hear about the creation of the London Cyber Innovation Centre. It will offer a great platform for start-up in the cyber sector. Centres of this nature will be instrumental in the growth of cyber security innovators across the UK and I really look forward to getting involved in LCIC.”

Further info and notes to editors

• Plexal, which operates London’s largest innovation space, will run the centre. The firm specialises in helping high-tech startups in artificial intelligence, augmented reality and the Internet of Things. It recently launched Plexiglass, a development programme for women-led startups, with Barclays and the London Legacy Development Corporation.
• Plexal opened in June 2017 and joined a growing tech community in the Olympic Park, including University College London’s Robotics Lab, Ford’s Smart Mobility Innovation Office, the Advanced Propulsion Centre and Loughborough University. Transport for London and HMRC have also announced they will open new headquarters on the Stratford site.
• The firm will partner with the Centre for Secure Information Technologies at Queen’s University Belfast, the UK’s Innovation and Knowledge Centre (IKC) for secure information technologies, and Deloitte. This will help develop a pipeline of talent and the commercialisation of research.
• It is one of two new centres being developed by government to grow the UK’s cyber security sector and make sure the UK is the safest place to live and do business online.
• An innovation centre in Cheltenham opened in early 2017 with the launch of the GCHQ Cyber Accelerator programme. Seven startups have graduated with a further nine companies currently taking part in an extended nine-month programme.
• This initiative is part of the Government’s £1.9 billion investment to significantly transform the UK’s cyber security. The 2016-2021 National Cyber Security Strategy sets out how the UK Government will deliver a UK that is secure and resilient to cyber threats, prosperous and confident in the digital world. The National Cyber Security Programme managed by the Cabinet Office coordinates the work undertaken to implement the UK’s National Cyber Security Strategy.
• London is also home to the headquarters of the National Cyber Security Centre.
• Firms in the programme will have access to international cyber security networks via the Global Ecosystem of Ecosystems Partnership in Innovation and Cybersecurity (Global EPIC).
• Sources: Tech Nation 2017 and PitchBook data sourced by London and Partners. Gartner Forecast Information Security , Worldwide, 3Q17 Update (https://www.gartner.com/newsroom/id/3836563)
• Media enquiries – please contact the DCMS News and Communications team on 020 7211 2210.