Press release: Liam Fox launches consultations on UK’s trading future outside of EU

International Trade Secretary, Dr Liam Fox launches the UK government’s first ever public consultations on new trade agreements.

People across the UK will have their say on prospective new agreements with the USA, Australia, New Zealand and on the UK’s potential membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership today (Sunday, 22 July).

In a historic moment for the country, the 14-week consultations will allow the public to have a say on what trade will look like with some of the largest and fastest growing economies in the world. People will be invited to share their views on which areas matter to them most as well as any concerns they have.

The consultations, which are available online now show determination to make the most of the UK’s ability to set its own trade policy for the first time in 40 years.

The prospect of a future trade agreement will be one of the subjects discussed by Dr Fox with senior trade officials including US Trade Representative, Robert Lighthizer in the USA on Tuesday (24 July). The International Trade Secretary will also raise the issue of the recent imposition of tariffs on steel and aluminium imports from the EU, calling instead for a multilateral solution to global issues of overcapacity.

He will meet US Commerce Secretary, Wilbur Ross in Washington DC where he will also make a speech at think tank, the Heritage Foundation.

The visit will also build on the work of the UK-US Trade and Investment Working Group, launched by Dr Fox and Lighthizer in Washington last summer, which held its fourth official-level meeting in London last week. The working group is already taking steps to strengthen trade and investment ties now including supporting industry agreements on mutual recognition of qualifications, cooperation on science and technology and launching a joint SME dialogue to share best practice and boost exports.

He will then fly to San Francisco where he will address the British American Business Council and meet companies including Facebook, IT company Oracle who employ 5,000 people in the UK and American film and TV production company, LucasFilm.

International Trade Secretary Dr Liam Fox said:

For the first time in over 40 years, the UK will be able to determine who we trade with and the public will have a say on the terms of these trading agreements.

This is a hugely historic moment for the British people who voted to leave the European Union and take back control and the government is delivering exactly that on trade.

We are seeking to put the UK at the heart of the world’s fastest growing regions agreements like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). It’s also why I’m making the case for a trade deal with our single largest trading partner the USA and will continue do the same with the New Zealand and Australia.

The launch of public consultations follows Dr Fox’s statement to Parliament on Monday, where he set out the government’s approach to a transparent and inclusive UK trade policy which takes in the views of MPs, devolved governments, businesses, civil society groups and consumers.

If the UK were to join CPTPP, it would be the second largest economy in the group, and CPTPP’s coverage of global GDP would increase to around 17%.

The agreement reduces 95% of tariffs along with other barriers to trade among its 11 members, including Canada, Japan and Singapore.

The 11 existing members of CPTPP accounted for £82 billion of UK trade in 2016, more than the Netherlands, France or China. The economies of existing members are diverse, spanning a region which is a driving force of global economic growth. Many, including Vietnam, Malaysia and Singapore have been growing substantially over the last 5 years, growth which the IMF projects will continue in the near future.

The US is the UK’s single largest trading partner, accounting for £100 billion of UK annual exports and supporting millions of UK jobs.

UK exports to Australia and New Zealand, 2 of the UK’s closest allies, are growing at 14.8% and 16.8% respectively, a faster pace than our global average.

Link: Press release: Liam Fox launches consultations on UK’s trading future outside of EU
Source: Gov Press Releases

Press release: Environmental permits issued for Holmwood drilling site

The Environment Agency has issued environmental permits to the company to provide a high level of protection to the environment during its operations at the Holmwood site in Dorking, Surrey.

Before issuing the permits the Environment Agency carried out a detailed assessment of the application and considered all legal requirements, along with all comments received through two rounds of public consultation. The environmental permits issued set out the stringent conditions the site operator must comply with to ensure that the environment and local people are protected.

Europa Oil & Gas Limited will need to have all relevant permissions in place from other regulatory partners before it can start operations on site.

An Environment Agency spokesperson said:

We would like to thank everyone who responded to the public consultations. We have carefully considered all of the information received and are confident, in issuing these permits, that we have the right controls in place to ensure operations are carried out safely.

The Environment Agency plays a key role in protecting the environment. We take an evidence based approach to regulation and had to be satisfied that the necessary protections were in place before we would allow exploration to begin. We are confident that the legally binding conditions in the permits and our compliance checks will ensure that operations meet the highest standards.

We do understand the concerns that a large number of people have raised and we are committed to keeping local people informed of our work to regulate the site.

View the oil and gas mining waste permit issued for Holmwood Wellsite, Surrey.

Notes to editors

The permits authorise Europa Oil & Gas Limited to:

  • drill a new oil well at Holmwood
  • store oil on-site
  • manage any radioactive waste arising from these activities (a separate permit has been issued in this respect)

There is further information on how the Environment Agency determines applications, the time scales involved and how it regulates onshore oil and gas:

And information on radioactive waste permits:

Link: Press release: Environmental permits issued for Holmwood drilling site
Source: Gov Press Releases

Press release: Business leaders hail M49 junction construction as boost to economy

A new junction Highways England is creating on the M49 will improve road access and provide a much-needed connection into the Avonmouth and Severnside Enterprise Area from the motorway network.

The junction, which comprises two bridges, will also promote economic growth in this area of Bristol, and reduce the numbers of HGVs and other vehicles on the local road network.

At a groundbreaking ceremony, key regional business leaders joined Highways England, the company responsible for the country’s motorways and major A roads, and local authorities to welcome the £49 million scheme, which calculations are forecasted to help create 14,000 jobs in the area.

Nick Aldworth, Highways England’s South West Regional Delivery Director said:

We’re delighted to be breaking ground on this strategically and economically important scheme for the South West and Bristol area.

Every £1 invested in this scheme will bring more than £30 into the local economy, generating more than 14,000 jobs in the long term.

HIghways England staff and local MP
(Left to right) Colin Bird, Highways England Programme Leader, Peter Mumford, Highways England Executive Director and Jack Lopresti MP.

Highways England is working with partners, including South Gloucestershire Council, Bristol City Council and the West of England Local Enterprise Partnership, on the scheme which involves using the existing bridge at Farm Lane with a second bridge being built immediately next to it.

Located to the south of the Western Approach Distribution Park and west of the village of Easter Compton, the two bridges will be incorporated into a single roundabout spanning the motorway with new access and exit slip roads connecting fully with both northbound and southbound traffic.

The scheme has also been welcomed by joint venture partners Robert Hitchins Ltd and Harrow Estates plc, who own the neighbouring 300-acre Westgate employment site.

Simon Tothill, Property and Development Director for Robert Hitchins, said:

We have worked closely with Highways England for the last three years to enable the opening up of this area and are delighted to see progress being made.

This project is all about the creation of jobs and economic growth. We have absolutely no doubt that it will be a huge boost to the region, deliver significant new investment into the area and unlock the large and incredibly well-located Westgate site, which already benefits from planning permission for employment uses.

SevernNet, who represent business and residents in the Severnside area, added:

SevernNet is delighted with Highways England’s commitment to construct the M49 intermediate junction for Severnside – a direct link to the strategic road network will support those businesses already established and facilitate further growth within the Avonmouth Severnside Enterprise Area, and also relieve congestion in and around Avonmouth.

At the ceremony, Jack Lopresti, MP for Filton and Bradley Stoke, was joined by Peter Mumford, Highways England Executive Director of Major Projects, and Highways England Regional Investment Programme Director David Haimes, together with construction partners Galliford Try, South Gloucestershire Council, Bristol City Council and West of England LEP representatives.

The new M49 junction project is the first Road Investment Strategy scheme to start construction in the South West, one of six multi-million pound road schemes aimed at boosting the economy, tourism and heritage in the region.

Another key milestone in the South West within the next six months includes next steps in the planning process for the A303 Stonehenge tunnel and dualling scheme and the A30 Chiverton to Carland Cross dualling scheme in Cornwall.

The upgrades are funded by the Government’s biggest-in-a-generation £15 billion investment in motorways and main A roads, and delivered by Highways England.

Construction of the new M49 junction is due to be completed by December 2019 and local communities and business will be kept informed on progress by the Highways England project team and construction partners Galliford Try.

Duncan Elliott, Managing Director of Galliford Try’s Highways business, said:

We’re delighted to get cracking on a much-needed scheme that will bring far-reaching benefits. We have considerable experience of motorway work from our participation in the Smart motorways programme and will bring this to bear on the Avonmouth junction scheme. We will keep any disruption to a minimum and keep road users updated about progress.

For more information visit the M49 Avonmouth scheme web 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.


Link: Press release: Business leaders hail M49 junction construction as boost to economy
Source: Gov Press Releases

Press release: National treasure on the move: Stephenson’s Rocket to remain on long-term display in the North

  • Rocket currently on display in Newcastle-Gateshead for first time in 150 years
  • Culture Secretary Jeremy Wright welcomes Science Museum’s plans to increase access to key part of Britain’s railway history

Stephenson’s Rocket, one of Britain’s most iconic feats of engineering and part of the Science Museum Group’s collection, will go on long-term display in the North of England.

Rocket, designed by Robert Stephenson, was built in Newcastle in 1829 and it returned to the city for the first time in 150 years for this summer’s Great Exhibition of the North.

The move to keep the engine in the North has been welcomed by Culture Secretary Jeremy Wright as part of the Government and national museums’ ongoing commitment to increase access to culture around the country.

Rocket was the clear winner in the locomotive trials held at Rainhill in 1829 to decide the best design to power the Liverpool & Manchester Railway. And it is to Manchester that the engine will travel next, going on display at the Museum of Science and Industry in September.

It will then return to the Science Museum for a short period to be prepared for a long-term move to the National Railway Museum in York. There it will take its place among other global icons such as Mallard and the Bullet Train as part of the museum’s ambitious plans to tell the story of the past, present and future of innovation on the railways.

It comes as The Prime Minister held a regional Cabinet in Newcastle-Gateshead today to mark The Great Exhibition of the North, a 80-day showpiece of the best art, design and innovation from across the region.

The Culture Secretary then joined Ian Blatchford, Science Museum Group director, at The Discovery Museum which is exhibiting Stephenson’s Rocket during the Exhibition. Its arrival has helped increase visitors to the museum by more than 100% compared the same period last year.

Jeremy Wright, Secretary of State for Digital, Culture, Media and Sport, said:
“Stephenson’s Rocket is an iconic part of Britain’s proud railway history and it is fantastic news that it will remain on long-term display in the North.

“It is right that our great art and culture reaches all parts of the country. This bold move by The Science Museum Group will ensure more people can see this national treasure and is an inspiring example of what can be done to make culture available to the widest possible audience.”

Ian Blatchford, Director of the Science Museum Group, said: “The Science Museum Group is a truly national organisation, and enthusiastic about bringing the world’s greatest science and technology collection to everyone. I warmly endorse the Secretary of State’s commitment to strengthening fair and excellent cultural provision across the UK. A country with such an amazing history of innovation deserves it.”

DCMS press office on 020 7211 2210

Link: Press release: National treasure on the move: Stephenson’s Rocket to remain on long-term display in the North
Source: Gov Press Releases

Press release: James Brokenshire proposes to remove commissioners from Rotherham council after 3-year intervention

The government is set to end the intervention into Rotherham council 3 years after calling in inspectors, Communities Secretary, the Rt Hon James Brokenshire MP, has announced today (23 July 2018).

The intervention began in February 2015 after Baroness Alexis Jay and Dame Louise Casey found significant failings at the council that contributed to child sexual exploitation in Rotherham.

Since then, the council has worked hard to turn services around.

Mr Brokenshire says in a written ministerial statement he is minded to return control of all services to the metropolitan borough council, including children’s social care, and withdraw all 3 commissioners.

He adds this was on the condition the council receives an independent review before 31 March 2019.

The action follows the gradual return of selected functions to the council on 4 separate occasions since the intervention began in February 2015.

Communities Secretary, Rt Hon James Brokenshire MP said:

Vulnerable young people were repeatedly failed in Rotherham, which is why the government stepped in to ensure these errors can never occur again.

The council has made strong progress and, having carefully considered evidence provided by our commissioners, I am minded to return all powers.

This is not a decision I take lightly, but I am assured the council has turned itself around and is now providing the services that its residents deserve and expect.

Minister for Children and Families, Nadhim Zahawi MP said:

Keeping children safe is paramount and I am pleased to see the vast improvements Rotherham has made to its children’s services, shown through its recent ‘good’ Ofsted rating. We all know that for too long, children and young people living there were failed by the authorities in charge of protecting them.

In these cases the government will not hesitate to intervene and support improvements but it is down to strong leadership and the hard work of staff at Rotherham that they have been able to turn services around.

The ‘minded to’ decision to return the control of all services to the council marks a positive step for this town and I hope the community can continue to move towards a bright future.

Mr Brokenshire says the government is continuing to work with Rotherham council and the South Yorkshire Police and Crime Commissioner to secure funding for victims identified through the National Crime Agency’s Operation Stovewood and will do so for as long as the need is there.

The council will now have a period of 4 weeks to make representations on the proposals before the Secretary of State makes a final decision.

Further information

Three commissioners have been working with Rotherham council. They are:

  • Mary Ney (lead commissioner)
  • Patricia Bradwell (children’s social care)
  • Julie Kenny CBE, DL

Selected functions were returned to the council on 11 February 2016, 13 December 2016, 21 March 2017 and 12 September 2017.

The Secretary of State will consider representatives on his ‘minded to’ decision until August 16 with a further decision to be made after that date.

Operation Stovewood is the National Crime Agency investigation into non-familial child sexual exploitation and abuse in Rotherham, between 1997 and 2013. It is the largest ever investigation into non-recent child sexual exploitation undertaken by law enforcement.

As part of the decision-making process on the announcement, Mr Brokenshire and Mr Zahawi met with Rotherham’s MPs on Monday, July 16 who indicated their support to conclude the intervention

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Link: Press release: James Brokenshire proposes to remove commissioners from Rotherham council after 3-year intervention
Source: Gov Press Releases

Press release: Foreign Secretary visits Berlin

Mr Hunt met with German foreign minister Mr Heiko Maas to discuss a range of issues of shared interest – including the UK’s exit from the EU, and UK-German co-operation on foreign policy issues such as NATO, the Western Balkans, Iran, and joint work at the UN Security Council, which Germany will join as a non-permanent member next year.

Ahead of the meeting, the Foreign Secretary Jeremy Hunt said:

Germany is one of Britain’s most important allies in every field, from trade to European security to counter-terrorism. Our two countries work side-by-side to defend the rules-based international system on which our safety and prosperity depend.

We are striving together to preserve the Iran nuclear deal, uphold the Paris Climate Change Treaty, strengthen NATO, combat terrorism, improve cyber security and stabilise the countries of the Western Balkans.

We will also discuss the UK’s exit from the EU. I will reassure my German counterpart that we want to continue to work alongside our European friends and allies, in defence of our shared values. But I will also be clear that our European partners must show much more flexibility and creativity in negotiations if we are to avoid a ‘no deal by accident’ scenario.

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Link: Press release: Foreign Secretary visits Berlin
Source: Gov Press Releases

Press release: HS2 Ltd appoints Chief Operating Officer and Chief Financial Officer

HS2 Ltd has appointed a new Chief Operating Officer and Chief Financial Officer, the company has announced today.

Richard Robinson joins HS2 Ltd as Chief Operating Officer from AECOM where he was Chief Executive of Civil Infrastructure in Europe, Middle East, India and Africa. Richard brings a wealth of experience to HS2 Ltd where he will support Chief Executive, Mark Thurston to deliver Europe’s largest infrastructure project.

Commenting on the appointment, HS2 Ltd Chief Executive, Mark Thurston, said:

I am delighted to welcome Richard to the team at HS2. He joins us at an exciting time and brings wide-ranging experience of complex infrastructure projects and extensive management skills.

Richard’s appointment will enhance our leadership team at this important time, as the project picks up pace and we begin to deliver lasting economic benefits across the UK.

At AECOM, Richard led the growth of the Civil Infrastructure business, first as Managing Director and then Chief Executive, leading 8000 people across four regions and a range of infrastructure projects. Prior to this, Richard was the Managing Director of AECOM’s Transportation Europe business. Before joining AECOM Richard held leadership roles at Heathrow Express, Tickex.com and Anglo American Plc.

New Chief Operating Officer at HS2 Ltd, Richard Robinson, added:

I am thrilled to be joining the team at HS2 Ltd. Working on Europe’s largest infrastructure programme is an exciting prospect and I look forward to playing my part in a project that will leave a significant legacy here in the UK.

Michael Bradley, CB, is also joining the company as Chief Financial Officer. Michael comes from Defence Equipment and Support (DE&S), an arms-length body of the Ministry of Defence, where he is CFO and Director General Resources, and has been Acting CEO since December 2017.

Responsible for managing the financial affairs of a multi-billion government body, Michael has extensive experience in both the public and private sectors where he has been responsible for financial accounting and planning and internal auditing and assurance.

Commenting on Michael’s appointment, Mark added:

Michael is an excellent addition to the HS2 Ltd team and brings a wealth of experience with him to this important role.

HS2 is a hugely important project that will leave a significant economic legacy here in the UK and it is imperative that we have the best people in place to deliver our ambitions.

At HS2 Ltd, Michael will be leading the Finance team, Corporate Sponsorship, and the Programme Management Office.

Incoming Chief Financial Officer, Michael Bradley, said:

I am looking forward to joining the team at HS2 Ltd. This is a fantastic project, that will deliver significant benefits, and I am excited to be a part of it.

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The helpdesk team are unable to transfer calls internally to HS2 Ltd members of staff.

Link: Press release: HS2 Ltd appoints Chief Operating Officer and Chief Financial Officer
Source: Gov Press Releases

Press release: Heat networks must be regulated, CMA study finds

The Competition and Markets Authority (CMA) has today published the final findings of its 7 month study into this industry, which set out to establish whether heat network customers are getting the right level of protection.

Heat networks provide homes with heat and hot water from a central source via insulated pipes, but unlike other energy services are currently not regulated. As a result, heat network customers in general have less consumer protection if things go wrong.

The CMA found many heat networks offer prices that are the same or lower than those paid by people on gas or electricity, and customers receive comparable levels of service.

However, a number of those on privately operated networks are getting poorer deals in terms of price and service quality, and there is a risk this problem could grow.

There are currently about 450,000 customers of these services, and that number is expected to grow significantly as investment in energy efficient technology increases.

The CMA is therefore recommending that the regulator once it is established:

  • introduces consumer protection for all heat network customers so they get the same level of protection as customers in the gas and electricity sectors
  • addresses low levels of transparency so customers know they are on a heat network and there are clear agreements or contracts between customers and heat network operators
  • makes sure customers are aware of what they are paying as this is often unclear
  • protects customers from poorly designed, built and operated heat networks by preventing developers from using cheaper options to meet planning regulations that end up being paid for by the customer over the longer-term

CMA Chief Executive Andrea Coscelli, said:

With 14,000 heat networks supplying 450,000 people with heating across the UK, they can be an efficient and environmentally-friendly way for people to heat their homes.

But there are problems with how some operate, especially for those in private housing. People must benefit from the same level of protection as those using gas or electricity, and not be penalised either by paying too much or receiving a poor-quality service.

There is currently no regulator for this part of the energy sector – we think that is one of the key problems to be addressed and we recommend Ofgem is given this role.

Dermot Nolan, chief executive of Ofgem, said:

Our principal aim is to protect the interests of current and future energy consumers. We welcome the CMA’s Market Study on heat networks and agree that heat network customers should get the same level of protection as customers in the gas and electricity sectors.

We look forward to continuing to work with the government to address the current and future challenges in decarbonising heat and would welcome the opportunity to contribute to the development of the future regulatory arrangements for heat networks.

Ahead of these regulatory changes being introduced, the CMA has also today written an open letter to the industry, reminding energy suppliers of their obligations under relevant consumer and competition law. It has also published advice for existing or prospective heat networks customers.

Notes to editors:

  1. The CMA launched its market study into domestic heat networks on 7 December 2017.
  2. Heat networks provide homes with heat and hot water from a central source via insulated pipes. There are around 14,000 heat networks in the UK (of which more than 2,000 are district heating and the rest communal), together providing around 2% of UK buildings’ heat demand.
  3. Extending Ofgem’s remit to include heat networks would require new primary legislation to be introduced by the UK government.
  4. The study looked at:
    a. Whether customers are aware of the costs of heat networks both before and after moving into a property
    b. Whether heat networks are natural monopolies and the impact of differing incentives for builders, operators and customers of heat networks
    c. The prices, service quality and reliability of heat networks
  5. The study covers the whole of the UK and the CMA is working closely with governments and stakeholders in all four nations. Heat policy is devolved to the Scottish Government but not to the Welsh Government. Competition and consumer powers are reserved matters for the UK Government and are not devolved. Energy policy is devolved in Northern Ireland (NI) and there are only a small number of networks in Northern Ireland and no current plans to significantly expand the number. Should there be an expansion of heat networks in NI, the CMA would recommend the NI Utility Regulator and Department for the Economy and Communities to consider equivalent regulation.
  6. Market studies are carried out using powers under section 5 of the Enterprise Act 2002 (EA02) which allows the CMA to obtain information and conduct research. They allow a market-wide consideration of both competition and consumer issues. Market studies take an overview of regulatory and other economic drivers in the market, and consumer and business behaviour.
  7. Further details of the CMA’s market study can be found on the case page.
  8. Media enquiries should be directed to press@cma.gov.uk or 020 3738 6460 / 07506 710174.

Link: Press release: Heat networks must be regulated, CMA study finds
Source: Gov Press Releases

Press release: Up to 5 years in prison for criminals who use UK property market for money laundering

  • 5 years in jail for criminals who illegally profit from owning British property
  • new public information will make it easier for law enforcement agencies to tackle money laundering while reducing opportunities for criminals to hide
  • new data reveals nearly 75% of UK property industry agree new register will lead to increase in transparency and reduce potential for illegal activity

Criminals who illegally profit from some of the UK’s most exclusive properties through the illegal use of overseas shell companies face up to 5 years in jail for concealing the true identity of their owners, under new draft laws laid in Parliament today (Monday 23 July).

For the first time, foreign companies owning UK properties will be required to reveal their ultimate owners on the world’s first public register of overseas entities’ beneficial ownership.

The register forms part of a wider crackdown on criminals laundering their dirty money in the UK and the new information it reveals will make it easier for law enforcement agencies to seize criminal funds. The penalties include:

  • a ban on any foreign entity selling or leasing property without first publicly declaring its beneficial owner; an individual found to have committed this offence could face up to 5 years in jail and an unlimited fine
  • individuals who fail to register overseas entities when instructed face up two years in jail and an unlimited fine
  • individuals who knowingly try and deceive the register by providing false information face up 2 years in jail and an unlimited fine

New data also released today shows nearly three-quarters of those surveyed in the UK property market agree that this new register will lead to an increase in transparency and will reduce the potential for illegal activity.

Business Secretary Greg Clark said:

The UK is known around the world for its open and dependable business environment and this reputation is maintained by keeping under review our required high standards.

That is why we are introducing the world’s first public register which will expose the ultimate owners of overseas shell companies, giving authorities the information, they need to come down on criminals who launder their dirty money through the UK’s property market and to seize the proceeds of crime.

While the vast majority of foreign companies which buy property in the UK do so legitimately, this world-leading register will help ensure the UK remains a great dependable place to work, invest and do business.

Under the new draft laws, companies will also be required to provide annual updates to Companies House to ensure the information on the register is up-to-date.

UK government minister for Scotland Lord Duncan said:

For too long criminals have been able to use the property industry as a front for investing dodgy funds, hiding dirty money and evading the law. This stops now.

Most people who invest in property across the UK do so fairly, and legitimately, but the UK government is clear that there is no longer any room for those that seek to exploit the system to hide.

The register follows the introduction of the Criminal Finances Act 2017, part of the government’s Anti-Corruption Strategy, which provides new powers such as Unexplained Wealth Orders to law enforcement agencies to help them seize the proceeds of crime.

The UK has taken a leading role in the fight against money laundering and this world-leading register, which will go live by 2021, will reduce opportunities for criminals to hide.

More than £2 billion of criminal assets have been recovered under the Proceeds of Crime Act, while the government has recovered more than £3 billion extra since 2010 through recovery under additional powers.

Notes to editors

  1. A link to the legislation will be available shortly.
  2. A shell corporation is a corporation without active business operations or significant assets. These types of corporations are not illegal, but they are sometimes used illegitimately, such as vehicles for tax evasion and money laundering.
  3. The requirements for frontmen in complying with the overseas entities register are similar to those under the People with Significant Control regime, as set out in the draft legislation.
  4. Research also published today about the potential impacts of this new register can be found here which surveyed industry stakeholders. This link will be available shortly.
  5. According to recent research by Transparency International, over £4.2 billion worth of London properties are bought with suspicious wealth.

Link: Press release: Up to 5 years in prison for criminals who use UK property market for money laundering
Source: Gov Press Releases

Press release: Forging a full fibre broadband and 5G future for all

Mandatory full fibre broadband for all new build homes and a new priority to connect hard-to-reach rural areas are key measures proposed in a national, long-term strategy for UK telecommunications.

The new approach is aimed at driving large-scale commercial investment in the fixed and wireless networks that are vital for the UK to remain globally competitive in a digital world.

The Future Telecoms Infrastructure Review (FTIR), announced as part of the government’s modern Industrial Strategy, proposes the changes that are needed to give the majority of the population access to 5G, connect 15 million premises to full fibre broadband by 2025, and provide full fibre broadband coverage across all of the UK by 2033. Full fibre infrastructure is vital to underpin 5G coverage.

At its heart is an emphasis on greater consumer choice and initiatives to promote quicker rollout and an eventual full switch over from copper to fibre.

DCMS Secretary of State, Jeremy Wright said:

We want everyone in the UK to benefit from world-class connectivity no matter where they live, work or travel. This radical new blueprint for the future of telecommunications in this country will increase competition and investment in full fibre broadband, create more commercial opportunities and make it easier and cheaper to roll out infrastructure for 5G.

The FTIR’s analysis indicates that, without change, full fibre broadband networks will at best only ever reach three quarters of the country, and it would take more than twenty years to do so. It also indicates that 5G offers the potential for an expansion of the telecoms market, with opportunities for existing players and new entrants.

Key recommendations from the FTIR include:

  • New legislation that will guarantee full fibre connections to new build developments;
  • Providing Operators with a ‘right to entry’ to flats, business parks, office blocks and other tenanted properties to allow those who rent to receive fast, reliable connectivity, from the right supplier at the best price;
  • Reforms to the regulatory environment for full fibre broadband that will drive investment and competition and is tailored to different local market conditions;
  • Public investment in full fibre for rural areas to begin simultaneously with commercial investment in urban locations;
  • An industry led switchover (from copper to full fibre) coordinated with Ofcom;
  • A new nationwide framework which will reduce the costs, time and disruption caused by street-works by standardising the approach across the country;
  • Increased access to spectrum for innovative 5G services
  • Infrastructure (including pipes and sewers) owned by other utilities such as power, gas and water, should be easy to access, and available for both fixed and mobile use;
  • Ofcom to reform regulation, allowing unrestricted access to Openreach ducts and poles for both residential and business use, including essential mobile infrastructure;
  • Alongside the FTIR, Government has also published a Digital Infrastructure Toolkit which will allow mobile networks to make far greater use of Government buildings to boost coverage across the UK.

The FTIR will drive competition and commercial investment in full fibre networks across as much of the UK as possible. However there will be some parts of the country where it will be unlikely that that the market will be able to deliver alone.

Nationwide availability of full fibre is likely to require additional funding of around £3 billion to £5 billion to support commercial investment in the final c.10% of areas. These, often rural areas, must not be forced to wait until the rest of the country has connectivity before they can access gigabit-capable networks.

The Government will therefore pursue an “outside-in” strategy, meaning that while network competition serves the commercially viable areas, the Government will support investment in the most difficult to reach areas at the same time. We have already identified around £200 million within the existing Superfast broadband programme that can further the delivery of full fibre networks immediately.

Sharon White, Ofcom Chief Executive, said:

We welcome the Government’s review, and share its ambition for full-fibre and 5G networks to be rolled out right across the UK. The Government and Ofcom are working together, and with industry, to help ensure people and businesses get the broadband and mobile they need for the 21st century.

Next steps

We will shortly publish consultations on legislative changes to streamline wayleaves and mandate fibre connections in new builds. The conclusions of the Review will also form the basis of the government’s Statement of Strategic Priorities (SSP) to Ofcom, setting out the strategic objectives and outcomes that the regulator must have regard to in the exercise of its regulatory functions.

Notes to Editors

  1. The UK has only 4% full fibre connections and lags behind many of our key competitors Spain (71%), Portugal (89%) France (c.28% and increasing quickly).
  2. Full fibre networks are faster, more reliable, and more affordable to operate than than copper-based networks. 5G will deliver faster and better mobile broadband, and enable new applications in industry sectors like manufacturing, health and transport.
  3. The strategy seeks to recognise differences across rural and urban areas, and develops solutions that are tailored to both. The Review concludes that the best approach is to promote competition and commercial investment wherever possible, and to intervene only where necessary.
  4. Market competition should deliver full fibre networks across the majority of the UK if we get the conditions right (c.80%). c.20% of the country is likely to require bespoke solutions to ensure rollout of networks.
    5G is not just about faster mobile data connections, it could also deliver a wide range of new opportunities across industry sectors such as manufacturing, energy, transport and healthcare. The Government wants to encourage these new commercial opportunities through policy reforms, including making sure spectrum is accessible to all and used efficiently.
  5. Running copper and fibre networks in parallel is both costly and inefficient, and a ‘fibre switchover’ strategy will be necessary to stimulate demand for fibre, to enable new networks to achieve scale quicker, and to ensure a smooth transition process for customers. The switchover process will be industry-led and timing will be dependent on the pace of rollout of fibre networks, and on the take-up of those networks. It is realistic to assume that switchover could happen in the majority of the country by 2030, but the timing will ultimately be dependent on the pace of fibre roll out and on the subsequent take-up of fibre products.
  6. The EU’s new directive for electronic communications – the European Electronic Communications Code (EECC) – is currently under negotiation. It is likely to be ​adopted by the EU ​shortly. If adopted, we are minded to ​implement, where appropriate, the substantive provisions in UK law, on the basis that it would support UK’s domestic policy objectives. This will enable the extension of market review periods to five years and provide mechanisms to aid fibre network rollout in certain areas.

Link: Press release: Forging a full fibre broadband and 5G future for all
Source: Gov Press Releases