Pulse.Assent

• UK and Indonesia conclude second annual Joint Economic and Trade Committee (JETCO), aimed at boosting trade ties, in London
• Unlocks potential for UK businesses to sell more to Indonesia, which is set to become seventh largest economy in the world by 2050
• Minister for International Trade Nigel Huddleston and Indonesian Vice Minister for Trade Dr Jerry Sambuaga agreed in the meeting to grow digital trade and continue to focus on renewable energy opportunities.

The UK and Indonesia have today [Thursday 20 July] held the second Joint Economic and Trade Committee (JETCO) to help grow trade between the two countries – already worth £3.5 billion a year.

With a population of 275 million, Indonesia is the largest South East Asian nation and economy and presents huge opportunities for UK businesses. Its rapidly growing economy is forecast to reach the world’s top ten by 2035 and be its seventh largest by 2050. The JETCO was launched in 2022 to help promote and develop trade.

At today’s meeting, Minister for International Trade Nigel Huddleston and Indonesia’s Vice Minister of Trade Dr Jerry Sambuaga agreed to establish a working group on the digital economy and develop renewable energy opportunities – two areas of key interest for UK businesses.

International Trade Minister Nigel Huddleston said:

Indonesia has an incredibly exciting economy. We’re ready to deepen our trade ties with this growing economic powerhouse by opening exciting new opportunities for UK businesses selling to Indonesia.

We are playing to our strengths, focusing our attention on areas of mutual benefit like digital trade. Making trade easier in these areas will provide a boon to our world-leading services industries.

The UK is the second largest exporter of services in the world and the majority of these were delivered by digital means. Easing digital trade could unleash growth in UK services exports, already worth £658 million to Indonesia last year.

In discussions today, Minister Huddleston also highlighted opportunities for increased collaboration in areas such as food and drink, agriculture, education services, Indonesia’s energy transition, legal services and fintech.

The UK-ASEAN Business Council (UKABC) provides awareness on the latest opportunities in the region and facilitates trade and investment content delivery for UK companies looking to expand their operations into markets across Southeast Asia.

The Rt Hon the Lord Vaizey of Didcot, Chair of the UK-ASEAN Business Council, said:

Indonesia’s increasingly tech-savvy population and a growing middle class make it an incredibly attractive market for UK businesses. The UK-ASEAN Business Council is committed to supporting the growth of the UK-Indonesia trading relationship, by working with both governments to promote the tremendous number of trade and investment opportunities it has to offer.

Annual bilateral trade between the UK and Indonesia is growing, with trade up 33% in current prices in 2022 on the previous year. By working together to address barriers to trade we have the potential to increase trade, grow both economies, and give UK businesses better access to a significant and thriving market.

Paul Dyson, CEO Crossrail International (CI) said:

This JETCO is testament to the close bond between the UK and Indonesia. Indeed, Crossrail International have a strong trading relationship with Indonesia and are proud to be offering advice and providing support to their Ministry of Transport on two nationally significant rail projects – Jabodebek LRT and HSR Bandung to Jakarta.

Background

• The JETCO was first launched in 2022 to boost trade and investment and remove obstacles affecting UK businesses trading with Indonesia.
• The first UK-Indonesia JETCO established working groups on renewable energy and clean growth, and on agriculture, food and drink.

• Ministers are urging employers to do more to keep workers healthy and reduce the numbers out of work due to long-term sickness
• Consultation launching on measures to increase employer uptake and widen reach of Occupational Health
• Plans include a new standard for businesses to adopt to boost health in the workplace
• Better workplace support expected to grow the economy and tackle inactivity by improving productivity and preventing health-related job losses

The Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) are today [Thursday 20 July] publishing a consultation on ways to increase uptake of Occupational Health provision.

Employers will be encouraged to take up Occupational Health offers to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.

These proposals include introducing a national “health at work” standard for all employers to provide a baseline for quality Occupational Health provision, which includes guidance, an option to pursue accreditation, and additional government support services – for example outreach workers to support SMEs to meet the standards.

It also seeks views on developing longer-term workforce capacity to help meet any increased demand for Occupational Health services in the future by:

• Encouraging NHS leavers or those who are considering a career change to pivot towards the Occupational Health specialism
• Developing a longer-term, multi-disciplinary workforce to provide Occupational Health services

The consultation will also ask employers to share their examples of good Occupational Health provision to help inform other businesses and encourage them to provide the same.

Secretary of State for Work and Pensions, Mel Stride MP, said:

This Government is investing billions in getting people back to work and growing the economy. We need employers to keep playing their part too.

Healthy businesses need healthy workers – employers will benefit from higher retention rates, more productive workers, and fewer work days lost due to sickness. Improving health in the workplace is a vital piece of the puzzle in our drive to increase employment.

Minister for Disabled People, Health and Work, Tom Pursglove MP, said:

Long-term sickness is a huge contributor to economic inactivity, and while of course some people are unable to work, better accommodation of health problems in the workplace will open up a wider workforce to employers and support employees with a range of needs.

Many small and medium-sized business owners already invest significantly in the health and wellbeing of their workforce, but this will be a gamechanger in identifying and removing obstacles to people with health conditions starting, staying and succeeding in work.

To also help keep people in work, the government will today also publish a separate consultation looking at options to increase investment in Occupational Health services by UK wide employers through the tax system. This follows its announcement at the Spring Budget where it committed to consult on incentivising greater provision of Occupational Health through the tax system.

The government wants to explore the case for providing additional tax relief to businesses on their Occupational Health costs. In particular, the consultation asks respondents for their experiences of providing Occupational Health, including what services they provide and any barriers they experience. It also asks for evidence on the effectiveness of existing tax incentives and asks respondents for their views on the merits of expanding the existing Benefit-in-Kind relief, and thoughts on any alternative tax incentives.

Tax reliefs on Benefits-in-Kind are already available for certain occupational health services. This consultation will test if expanding these reliefs or introducing new ones could be an effective lever to achieve greater Occupational Health provision, as well as thoughts on any alternative tax incentives. The consultation will determine if expanding tax incentives is an appropriate measure to boost Occupational Health provision.

This is all a key component of the measures in the 2023 Spring Budget to grow labour market participation, reduce economic inactivity and get more people into work. The Department is helping millions to return to work with inactivity falling by 360,000 since the peak of the pandemic.

Long-term sickness is currently the main reason people of working-age give for being economically inactive, but just under half of workers have access to Occupational Health services. Over 90% of large employers offer Occupational Health support, compared to under a fifth of small ones.

Occupational Health provision can help employers provide work-based support to manage their employees’ health conditions, leading to better retention and return-to-work prospects, and improving business productivity, which can be adversely impacted by sickness absence.

Secretary of State for Health and Social Care, Steve Barclay said:

High quality Occupational Health support in more workplaces would not only help to reduce economic inactivity, but it can lead to a healthier, happier workforce.

The individual health benefits are clear and by focusing on preventative measures, we can reduce the burden on the NHS and help to bring waiting lists down, which is one of the government’s top priorities.

Angela Rowntree, Occupational Health Physician for the John Lewis Partnership, said:

At John Lewis Partnership we are moving away from reactively managing sickness to proactively supporting our Partners’ health and wellbeing at work.

Our founder, Spedan Lewis understood this when he launched an in-house health service for all Partners in 1929 – nearly 20 years before the NHS was established – and we’re proud to be part of his legacy today, providing advice and support to help our Partners achieve their potential in the workplace.

We welcome this new focus on ensuring other businesses and their employees are able to access better workplace health.

The Occupational Health consultation will run until 23:59 on Thursday 12 October 2023.

Further information

• The consultation opens on Thursday 20 July and closes on Thursday 12 October.

Media enquiries for this press release – 0115 965 8781

Follow DWP on:

The UK and Turkey have today [18 July] announced plans to begin talks on an updated free trade agreement (FTA).

The deal would replace the existing UK-Turkey FTA, which was rolled over from when the UK left the European Union and doesn’t cover key areas of the UK economy like services, digital and data. The UK is the second biggest services exporter in the world – behind only the US, and the services sector contributes around 80% of the UK’s GDP.

A new deal could boost trade and help UK companies maximise opportunities in this area, driving economic growth – one of the Prime Minister’s priorities.

The announcement follows a call between UK Business and Trade Secretary Kemi Badenoch and Turkish Minister for Trade Ömer Bolat last week, where they committed to negotiating a new deal and deepening the trade relationship between the two countries.

The UK-Turkey Joint Committee consisting of the UK’s Chief Negotiator and officials from both sides – responsible for overseeing implementation of the current agreement – will meet today in Ankara, Turkey’s capital city to formally conclude the review of the current agreement and move towards renegotiation of the Free Trade Agreement.

Business and Trade Secretary Kemi Badenoch said:

Turkey is an important trading partner for the UK and this deal is the latest example of how we are using our status as an independent trading nation post-Brexit to negotiate deals that are tailored to the UK’s economic strengths.

I look forward to using the deal to deepen the UK-Turkey trading relationship, drive economic growth and support businesses up and down the country.

Turkey presents huge opportunities for British businesses, with UK companies already exporting to its growing market of 85 million people.

The new FTA is an opportunity to strike a 21st century deal that is better suited to the modern economies of both the UK and Turkey, covering areas such as digital trade and services.

It would build on an already thriving trading relationship which reached £23.5 billion in 2022 – up more than 30% from the previous year – and better support UK businesses exporting or looking to export to the country. A new FTA could also potentially lead to cheaper goods and more choice for UK consumers.

Later this month, Minister for Exports Lord Offord will be visiting Turkey where he will meet businesses and stakeholders to discuss with investment and export opportunities.

President of Airbus Türkiye, Simon Ward, said:

Airbus and Turkey have been long-term strategic partners for almost 40 years and Turkey is a partner on all Airbus aircraft programmes, including the prestigious A350.

Greater alignment on cross-border trade will improve competitiveness and provide opportunities for businesses across numerous sectors.

Notes to Editors

• Turkey is a major supplier of goods such as vehicles, clothing and electrical machinery and goods to the UK, which is its 4th largest goods export market, in return for £6.4 billion of UK goods exports including power generators and metals.
• The current agreement contains a review clause that committed the UK and Turkey to review the current relationship. This work began last year with both partners concluding there would be merit in broadening and deepening the trade relationship.
• The UK expect to launch a call for input, which will be an opportunity for businesses, organisations and individuals to help shape the UK’s negotiating aims ahead of the talks. Following consultation, the government expects to start renegotiations next year.

Top financiers and philanthropists will come together in Windsor today (Monday 10 July) for a Climate Finance Mobilisation Forum to recognise and encourage efforts that increase support for emerging and developing economies to accelerate a net zero, resilient transition.

Organisations are encouraged to bring examples of recent and new activities that represent significant investments to drive climate action and harness the environmental, economic, security, and social benefits it brings – building momentum on implementation efforts that contribute to achieving the goals of the Paris Agreement.

Energy Security and Net Zero Secretary Grant Shapps and US Special Presidential Envoy for Climate John Kerry will host major financial players and philanthropists for the special event, convened as part of President Biden’s visit to the UK, before participants travel to Windsor Castle to speak to His Majesty The King and the President about the conclusions of the discussion.

It is estimated that by 2030 annual clean energy investment in these countries needs to expand by more than seven times, to above $1 trillion, in order to put the world on track to reach net-zero emissions by 2050. And that is for clean energy alone; additional investments are needed to reduce non-CO2 emissions, halt deforestation and reverse forest loss, and adapt and build resilience to climate change.

Energy Security Secretary Grant Shapps said:

Finance is the lifeblood of growing economies. Billions has been spent so far to accelerate the green transition already underway, and the UK is delivering its £11.6 billion of International Climate Finance to support countries around the world – but if we want to deliver real change, we must go further and do it together. The scale of this transition requires trillions in private investment in addition to the public funds we are spending.

Today is about uniting with our US allies and key enablers, using this world-leading expertise for the benefit of not just our own economies but those that will be most affected by climate change impacts – updating The King and President on what we’re doing to set us all on a path to net zero and greater climate resilience by unlocking private investment.

Building on the US-UK Atlantic Declaration, today isn’t just about cutting emissions, it’s also supporting countries to achieve a secure, cheaper and home-grown energy system – to grow their economy and create jobs.

US Special Presidential Envoy for Climate John Kerry said:

The climate crisis is here. It’s caused by the unabated burning of fossil fuels, and it’s going to get worse without action.  No government can solve this crisis by itself.  We need to work together with the private sector and philanthropy to speed up the net zero, resilient transition.

One important outcome of today’s event will be the ideas and potential collaborations that are seeded and the tangible action and ways private finance and philanthropies can collaborate to accelerate action on the road to COP28.

Since day one, President Biden has taken decisive action to mobilize an unprecedented effort to tackle the climate crisis, and that work continues today in partnership with the UK to raise ambition through concerted action between the public, private, and philanthropic sectors.

Currently emerging markets and developing economies account for two-thirds of global greenhouse gas emissions, and many are highly vulnerable to climate hazards. These economies are crucial for tackling climate change and halting nature’s decline, as well as being key partners for the UK and US in generating shared prosperity from the global transition.

The UK and US can capture a huge economic opportunity by supporting the global transition, whilst building closer relationships with high growth emerging markets and developing economies as they seek to meet their own financing needs.

Following Putin’s barbaric attack on Ukraine, governments are redoubling efforts not only to keep 1.5C alive, but boost cleaner, more secure and cheaper energy that moves away from costly fossil fuels.

Glasgow City Region and North East of Scotland will be Scotland’s Investment Zones following an agreement between the UK Government and Scottish Government.

The pace at which the agreement was developed is testament to the strength of partnership between the two governments and what can be achieved when there is a focus on delivering economic growth and opportunity for people in Scotland.

Investment Zones are a crucial part of levelling up, and are designed to deliver economic growth, more high skill jobs, investment, and future opportunities for local people – a key priority for Prime Minister Rishi Sunak.

The tax incentives and funding that are being made available by the UK and Scottish governments will attract investment, improve skills, provide specialist business support and improve local infrastructure.

Investment Zones are focused around research institutions such as universities. They focus on driving growth in priority sectors including technology, the creative industries, life sciences, advanced manufacturing and the green sector. They will underpin clusters to boost UK competitiveness in these high-potential industries, leveraging existing strengths and assets to increase opportunities for local communities and driving productivity growth.

The two Scottish regions are the first Investment Zones outside of England and Levelling Up Secretary Michael Gove will today welcome this ‘historic milestone’ in widening the programme to other parts of the UK.

Secretary of State for Levelling Up, Michael Gove said:

This is an historic milestone as we widen the opportunity and ambition of the Investment Zone programme to grow the economy across the whole of the United Kingdom.

I am very appreciative of the constructive approach the First Minister and Deputy First Minister have shown in the meetings I have had with them in recent weeks. We all have a shared ambition to work together to see all parts of Scotland thrive and today’s agreement builds on our successful rollout of Green Freeports in Scotland earlier this year.

Both Aberdeen and Glasgow, and their surrounding areas, have been at the very heart of the UK’s economic success for generations. Shipbuilding on the Clyde. Oil and gas exploration in the North Sea and a leader in the renewable sector. Both responsible for exporting some of the world’s finest food and drink around the globe. Both playing home to some of the biggest financial service companies we have. We want to build on this proud present and past so that Aberdeen and Glasgow continue to make a massive contribution to the UK economy.

The two Scottish Regional Economic Partnerships areas, made up of a number of different local authorities, will each benefit from an overall funding envelope of £80 million over a five-year period, while making the most of both reserved and devolved policies as is the case with Green Freeports.

The locations of Glasgow City Region and North East of Scotland have been selected jointly by the UK Government and Scottish Government based on their research strengths, an assessment of economic need and potential, and a consideration of geographic spread.

Regional leaders, businesses and universities will take the lead in shaping regional plans, to ensure Investment Zones draw on the entrepreneurial spirit and wealth of research talent that exists across Scotland.  Discussions will now begin with both regions to develop detailed proposals.

Secretary of State for Scotland, Alister Jack, said:

“This is exciting news for Glasgow and Aberdeen – the establishment of two Investment Zones in these areas will enhance their existing strengths, helping to attract investment, grow our economy and create jobs in priority sectors. This will build upon the great progress already being seen with the Freeports we announced earlier this year in Inverness and Cromarty Firth and the Firth of Forth.

“We have worked closely with the Scottish Government throughout, which shows again what can be achieved when Scotland’s two governments work together to promote a fair spread of opportunities across Scotland. The UK Government is focussed on levelling-up throughout the UK which includes investing more than £2.2 billion in projects in Scotland.”

The delivery of investment zones will build on the success of the joint UK and Scottish government agreement for two Green Freeports in Inverness and Cromarty Firth and Firth of Forth, to create jobs, drive growth and level up the country.

Backed by up to £52 million in UK Government funding, the freeports are expected to bring forward an estimated £10.8 billion of private and public investment and create over 75,000 new, high-skilled jobs.

From hydrogen-powered cornflake production to low carbon Scottish whisky distillation, businesses across the UK have today (28 June 2023) received a share of over £80 million government funding to ditch costly fossil fuels for cleaner alternatives. 

Breakfast giant Kellogg’s is among 29 successful projects to change their production processes to cut their emissions. The company plans to use hydrogen to fuel their cereal making process in Manchester, backed by over £3 million government investment.  

Meanwhile one of Scotland’s oldest whisky makers, Annadale Distillery, will also take a step towards a new low carbon future, with a £3.6 million government investment in new thermal heating technology. This will see the distillery work with Exergy3 Ltd to develop a system that stores energy from electricity in special ceramic bricks, to then produce heating gas that could fully decarbonise the whisky-making process.

Today’s funding, announced by Minister for Energy Security and Net Zero Graham Stuart, puts businesses on a path to revolutionising their industry with cleaner energy sources – such as hydrogen and biomass. It marks the government’s latest move to boost the UK’s energy security and grow the economy. 

Minister for Energy Security and Net Zero Graham Stuart said:

Whether it’s the first meal of the day or a night cap, the great manufacturers of our country are striving to cut their carbon emissions and their energy bills – and in turn, support our efforts to boost our energy security.

Our investment of over £80 million will help them to go further and faster, using the latest science, technologies, and new energy sources to cut ties with fossil fuels and future-proof their industries.

The Minister will announce the winners at today’s Climate Innovation Forum, where he’ll call on industry leaders and international bodies to get behind the green innovation drive, as part of London Climate Action Week’s flagship event.

Lord Callanan, Minister for Energy Efficiency and Green Finance, said: 

Britain has a long and proud history of pushing the boundaries in science – and our backing with over £80 million for these cutting-edge projects today will help make way for the next era of innovation.

The transition away from fossil fuels presents a huge opportunity for our growing green energy sector and we will continue to make sure UK business can benefits from its full potential.

Another leading name getting a slice of the funding is Britain’s biggest biscuit maker, Burton’s Food Ltd – home to Maryland cookies and Jammie Dodgers – which will see them innovate to swap out a gas oven for low carbon electric, at their Dorset bakery, thanks to over £3.3 million from the government.

Around £950,000 will also go to consumer goods giant Procter & Gamble (P&G) to explore how to integrate CCUS into their manufacturing, by extracting carbon from the company’s waste streams to help cut emissions. The project will form of a new research drive, CarboNation, in partnership with Newcastle University’s School of Engineering and Centre for Process Innovation.

The energy projects receiving backing today come in the latest round of the government’s £1 billion Net Zero Innovation Portfolio, which aims to scale up low-carbon technologies for use across UK industries. 

The £82.9 million announced today comprises:

• Industrial Fuel Switching competition: 13 businesses, from a paper factory to glass manufacturers, will receive a total of £52.5 million to support projects developing low-carbon alternatives to fossil fuels, such as hydrogen or biofuels
• Hydrogen BECCS Innovation Programme Phase 2: 5 project winners have been awarded a total of £21.2 million to turn biomass and waste, such as sewage, into hydrogen with carbon capture
• CCUS Innovation 2.0 competition: 11 winning projects, including recycling CO2 for fertiliser production, will be given a total of £9.2 million to develop the latest technology in carbon capture usage and storage

The funding forms part of the government’s commitment to reduce overall UK energy demand by 15% by 2030, alongside the wider ambition for the UK to move towards greater energy independence. 

Dr Markus Rondé, chief executive officer of Exergy3, said:

The decarbonisation of industry is a fundamental part of the UK’s race to net zero. However, so far, the extremely high operating temperatures of many industrial processes have made it technically and financially challenging.

The NZIP funding enables us to build a full-scale demonstrator at the Annandale Distillery in Scotland. For Exergy3’s technological and commercial development this will be a great leap forward and we are all very excited to try Annandale’s first batch of low-to-no carbon whisky.

Scott Frame, Vice President, R&D and Site Leader, Newcastle Innovation Centre, said:

CarboNation is a great example of where innovation can be applied to carbon capture and use technologies to solve specific challenges that are not only relevant to P&G, but both the wider Fast Moving Consumer Goods industry and society at large.

We’re really excited to have received this grant, alongside other valued partners, in order to accelerate P&G’s understanding within this area, supporting our collective pursuit of wider sustainability goals.

Alongside the funding allocated today, the government has also published new reports to support the transition to alternative energy sources for UK industry. This includes guidance on designs for hydrogen technology systems, as part of the Industrial Hydrogen Accelerator programme.

Notes to editors

Plans to reduce costly and time-consuming regulatory burdens on business have been revealed by the Government today [Wednesday 24 May].

A wide range of UK companies, investors and industry experts have been invited to give their views on non-financial reporting regimes, in a new call for evidence that aims to find ways to reduce reporting regulation burdens on businesses so that they can focus on growth.

Non-financial reporting provides valuable information to investors and is a way for companies to tell their ‘story’ beyond financial information. This includes future strategy, and detail on how a wide range of factors may affect the company’s performance, providing insight into the business and culture of the company.

However, companies and investors have been calling for the simplification of these requirements in the wake of the deregulatory opportunities offered by Brexit. Annual reports now run at an average of 200 pages for the largest companies in the UK, creating unnecessary burden for businesses. With this review, the Government will aim to:

• Save businesses time and money with a more streamlined and focused corporate reporting regime
• Ensure company annual reports contain clearer, more useful information, by asking investors what really matters to them
• Make the UK an even more competitive place to do business by placing growth and investment at the heart of reporting requirements

Business Minister Kevin Hollinrake said:

We want to shred unnecessary paperwork so businesses can focus on what’s important to them – growing and making profit.

By seizing on the opportunities of Brexit to streamline our non-financial reporting regime, we’ll make the UK an easier and more competitive place to do business, while delivering on our priority to grow the economy.

As part of this, we will also review the size thresholds that determine some of the information a company needs to produce in their annual report, in particular the definition of micro-enterprises. This threshold, a relic of an EU directive, could be forcing too many of Britain’s smallest businesses to spend time and money preparing information to a level of detail only needed for larger companies, distracting them from focusing on growth and creating jobs.

The call for evidence will end on 16 August. The Government will then use the information collected to develop detailed proposals for public consultation next year.

Subject to the views shared, the Government will then look to legislate for any changes.

This builds on the “Smarter regulation to grow the economy” policy paper (10 May 2023) which set out how the government would improve regulation across the board to reduce burdens and drive economic growth now that the UK has left the European Union.

Our departure from the EU allows us to shape rules and processes so that they work for the UK’s specific circumstances and businesses, including for non-financial reporting, while upholding our strong record on workers’ rights.

Notes to editors:

1. The Call for Evidence has been published on GOV.UK: https://www.gov.uk/government/consultations/smarter-regulation-non-financial-reporting-review-call-for-evidence
2. The intention to conduct this review was announced as part of the response to the Restoring Trust in Audit and Corporate Governance white paper: https://www.gov.uk/government/news/audit-regime-overhaul-to-help-restore-trust-in-big-business
3. The non-financial reporting review will primarily focus on the Companies Act and the disclosure requirements contained within it. Views on wider reporting requirements that sit outside of the Annual Report are also being collected covering gender pay gap and modern slavery reporting.
4. This call for evidence is not seeking views on the policy intention of modern slavery and gender gap reporting, but rather how these reporting requirements fit within wider non-financial reporting frameworks.

• Japanese businesses commit almost £18 billion investment in the UK as PM hosts business reception in Tokyo
• New finance from firms like Marubeni Corporation and Sumitomo Electric Industries set to create high quality jobs in strategic clean-energy industries
• British businesses like Octopus Energy and Mott MacDonald seize opportunities in Japan as UK prepares to join CPTPP

Leading Japanese businesses have committed to invest almost £18 billion in businesses and projects across the UK, generating growth in key sectors, creating high-skilled jobs and driving technology innovation.

The announcement comes as the Prime Minister prepares to host a business reception in Tokyo today [Thursday 18th], where he will welcome the strength of the UK and Japan’s economic relationship and set out the opportunities to go further.

Japan is already our 5th largest investor with £92 billion invested in the UK, and our trade in goods and services was worth £27.7 billion last year – which is likely to be boosted further when the UK joins the regional CPTPP trade bloc. The Prime Minister will thank Japanese CPTPP Minister Goto in person today for Japan’s strong support for the UK’s membership.

The new investments include funding for offshore wind, low carbon hydrogen and other clean energy projects from Marubeni. The leading Japanese trading house has announced its intention to sign an MoU with the government which envisages approximately £10 billion of investment in the UK with its partners over the next 10 years – including in offshore wind in Scotland and green hydrogen projects in Wales and Scotland.

The company is already supporting 500 UK jobs through its subsidiary SmartestEnergy Limited and will collaborate with government to create a substantial number of new green jobs in the UK.

Mitsubishi Estate and Mitsui Fudosan, two of the largest real estate companies in Japan, are also confirming plans to invest £3.5 billion in the UK today. The planned projects will build affordable housing, high quality office space and life-science laboratory in London, which is expected to support thousands of jobs and help to revitalise areas of the capital.

Sumitomo Corporation intends to expand its UK offshore wind projects, leading to a total investment of £4 billion in projects off the coasts of Suffolk and Norfolk alongside its partners. The major investment further solidifies the UK’s status as a clean energy pioneer and supports Government’s ambition to install 50GW of offshore wind capacity by 2030.

Sumitomo Electric Industries has also announced its decision to build a strategically important high voltage cable manufacturing plant in the Scottish Highlands, bringing more than £200m in investment and creating 150 highly=skilled green jobs. This investment will help the UK build resilient supply chains for critical infrastructure such as offshore wind projects and support UK developers to enhance their contribution to UK growth.

The new investment will support growth in some of the UK’s most cutting-edge industries. Toshiba will be expanding operations at their Cambridge Laboratory, for example, which is designing and delivering advanced quantum-safe cryptographic communication solutions – creating more than 30 new jobs initially and investing in excess of £20 million in new technology development.

Prime Minister Rishi Sunak said:

These new investments are a massive vote of confidence in the UK’s dynamic economy, from some of Japan’s top firms.

Working with the Government and British industry they will create the kind of high-quality, reliable jobs and transformative local investment we are delivering around the country.

It’s great to also see leading UK businesses seizing the huge opportunities for growth and collaboration in Japan. As we grow our trade ties further and join the huge regional CPTPP trade bloc, the sky’s the limit for British and Japanese businesses and entrepreneurs.

UK company Octopus Energy is also announcing today its commitment to invest £1.5 billion in the Asia-Pacific energy market by 2027, helping speed up the region’s transition to a cleaner, smarter energy system. Doubling down on its existing Asian headquarters, Octopus will commit £300 million to expand its tech innovation and energy retail hub in Tokyo. This will enable the business to increase its headcount tenfold by 2027, creating 1,000 green jobs for UK and local talent.

As we grow our defence cooperation with Japan, Leonardo UK in partnership with Kawasaki Heavy Industries has been contracted to provide further world-class naval helicopters and Mid Life Upgrade kits for the Japanese Maritime Self-Defence Force, in a deal worth over £150 million in exports.

Building on the UK’s expertise in offshore wind, UK consultancy Mott MacDonald has also secured a major contract to help develop a state-of-the-art offshore wind farm in western Japan that could power more than 175,000 homes with clean energy.

Masumi Kakinoki, CEO of Marubeni Corporation said:

We are thrilled to have forged a robust partnership with the United Kingdom, and we eagerly anticipate collaborating with the UK government to unleash a surge of investment into the nation’s clean energy transition.

This endeavour not only signifies our commitment to the UK’s energy transition, but also reinforces Marubeni’s role as an active participant in the global march towards a sustainable future. We are on the brink of an energy revolution, and it is partnerships like these that will help ensure our shared success.

Greg Jackson, Founder of Octopus Energy Group, said:

International cooperation is the key to creating an energy transition which benefits consumers and economies as well as the climate. Our partnership with Tokyo Gas has grown ever stronger and I’m delighted to be bringing even more investment to Japan and into the UK.

Linking our businesses in Australia, New Zealand and Singapore to the UK and Europe, our operations in Japan have helped create a unique global technology ecosystem benefiting everyone. I’m excited to take it even further with today’s announcement.

Alongside chief executives and CEOs from firms like Nissan, Sumitomo Corporation and Hitachi, the Prime Minister will meet three start-up UK companies at today’s business reception. Winnow, Transreport and Oxentia have just announced new partnerships and offices in Japan, demonstrating the opportunities for growing UK companies to export internationally.

These announcements come as the UK and Japanese governments unveil a new Renewable Energy Partnership which includes building business partnerships to accelerate the deployment of clean energy.

The UK and Japan will take their cooperation on science, technology and innovation to new heights, after agreeing to renew the two countries’ longstanding Science and Technology Agreement for the 21st Century, with a focus on innovation and game-changing new technologies.

The new Implementing Arrangement was signed by UK Science Minister George Freeman and Minister State Minister Nakatani Shinichi from Japan’s Ministry of Economy, Trade and Industry today (Monday 15 May), in Tokyo, and forms the latest part of the UK’s push to take a truly global approach to science and innovation.

The renewed deal opens up more opportunities for close collaboration to bring cutting edge new technologies to market. This could focus on priority areas like semiconductors and clean tech, which will be critical to growing the economy which is one of the Prime Minister’s five key priorities.

UK Minister for Science George Freeman said:

Japan is the world’s third-largest economy and a science and technology powerhouse. They have produced more Nobel Prize laureates than any other Asia-Pacific country. Bringing Japan’s unique strengths even closer together with the UK’s world-class science and research expertise is a massive opportunity for both our countries, to pool our skills and expertise as we tackle some of the biggest challenges facing the world, all whilst growing our economies and creating jobs.

This deal is just another demonstration of the UK’s ambition to become a truly global science superpower, by deepening collaboration on the science and technology of tomorrow with like-minded nations like Japan, as well as the rest of the G7, to secure our collective future, drive economic growth and improve lives.

Over the last week, in Japan, Minister Freeman has been making the case for the world’s leading democracies to work closer together, to ensure that scientific advances deliver security, prosperity, while tackling the key issues facing our planet, from climate change and bio-security through to space sustainability.

The G7 Science and Technology Ministers’ Meeting, hosted in the Japanese city of Sendai in the last few days provided an important platform to demonstrate how the UK’s leadership in science and innovation – as well as that of the world’s other leading free societies – can be used to enforce our shared principles and challenge authoritarian narratives, as well as drive economic growth. The economic benefits that flow from innovation, are what unlocks investment in public services like the NHS, the ability to cut national debt, and what brings down inflation, all of which are key priorities for the Prime Minister in 2023.

The last week has also provided an opportunity to further cement the UK’s close relationship with Japan, visiting researchers at the NanoTerasu synchrotron radiation facility as well as Tokohu University’s disaster science institute, and meeting leaders from Japanese science and tech companies that are heavily involved in the UK.

The UK and Japan share many of the same science and innovation priorities. Japan’s Moonshot R&D Programme includes a focus on quantum, one of the five critical technologies identified in the UK Science and Technology Framework.

Last year, the UK government committed a further £15.5 million investment to the Hyper-Kamiokande (Hyper-K) project, which is a next generation global neutrino experiment in Japan. This 15-storey physics experiment is helping scientists discover more about the fundamental particles that make up the Universe. We have long enjoyed close links in areas like life sciences, space, and through collaborative research projects funded in partnership by UK Research and Innovation (UKRI) and partners like the Japan Science and Technology Agency (JST) and Japan Society for the Promotion of Science (JSPS).

The new arrangements for the UK-Japan Science and Technology Agreement commit both countries to work together on joint R&D programmes, as well as academic and industrial exchange schemes. The two governments will encourage collaboration between UK and Japanese companies, by creating new networking and investment opportunities, and through closer connections between public bodies like UKRI and Japan’s New Energy and Industrial Technology Development Organization (NEDO). The UK and Japan will also work together closely to ensure their science governance and standards are aligned.

The UK Science and Technology Framework sets out the ambition for the UK to be internationally recognised as a tech superpower by 2030. International collaboration is what powers the UK’s global leadership in science and technology. This means it is essential for the UK to collaborate more deeply with other leading nations to tackle the urgent global challenges facing our planet through science and tech. The International Technology Strategy sets out the work being done to build those partnerships, in a way that promotes positive values and boosts security.

• UK kickstarts negotiations on a modern free trade agreement with Switzerland
• Switzerland is the UK’s 10th largest trade partner, with trade worth almost £53 billion
• New deal will reinforce UK’s reputation as a services superpower, after a record high for services exports in 2022

Trade Secretary Kemi Badenoch today [15 May] flies to Switzerland to launch negotiations on a new UK-Switzerland free trade agreement (FTA) to boost trade between the two services superpowers.

Switzerland is one of the wealthiest countries in the world and the UK’s 10th largest trading partner. The two countries are among the world’s leading service economies, exporting almost £15 billion worth of services including financial, professional, legal, and architecture every year.

The current UK-Switzerland FTA is based on an EU-Swiss deal from more than 50 years ago – before the advent of the home computer or the internet – and does not cover services, investment, digital or data. With most of the UK’s services exports to Switzerland delivered electronically – almost 69% in 2020 – both sides are keen to rectify this in upcoming talks.

Business and Trade Secretary Kemi Badenoch said:

As two of the world’s leading service economies, there’s a huge prize on offer to both the UK and Switzerland by updating our trading relationship to reflect the strength of our companies working in areas ranging from finance and legal, to accountancy and architecture.

The UK and Switzerland are natural trading partners and today’s launch will play to our strengths as services superpowers, while also boosting investment in emerging technologies, data innovation, and digital trade.

ONS figures published earlier this year showed UK services exports reaching record highs in 2022, totalling £397 billion – an increase of 20% compared to 2021 in current prices.

The Business and Trade Secretary will launch talks on the new, modernised deal with her counterpart Federal Councillor Guy Parmelin in Bern, the country’s capital city.

During her visit, Badenoch will also go to SIX, the operator of the Swiss Exchange, Europe’s 3rd biggest stock exchange and one of the industry’s most respected post-trade service providers.

Whilst at SIX she will visit the innovation accelerator Tenity where she will meet startups already operational in the UK including Enterprise Bot, Xworks, SmartPurse and Jrny.

A refresh of our trading relationship with Switzerland will add to the UK’s growing armoury of powerful service-focused deals by removing remaining market access barriers, improving regulatory cooperation and enabling UK firms to compete on an equal footing in Switzerland, now and in the future.

Switzerland’s demand for imports is expected to grow in real terms by 78% by 2050. The new deal could lower tariffs on UK exports to Switzerland, which could reduce annual duties for UK businesses by around £7.4 million.

It will also benefit the more than 14,000 UK businesses which already export goods to Switzerland, 86% of which are small and medium-sized enterprises (SMEs), by creating simpler trade rules for products of origin, customs procedures and digitisation.

CEO of SIX, Jos Dijsselhof, said:

The new UK-Switzerland free trade agreement’s shared ambition hold also great importance for the financial sector, fostering cooperation, trade, and mobility.

SIX welcomes this move, supporting open and international capital markets, promoting healthy exchange and competition between the two major financial centres in Switzerland and the UK.

Switzerland is a key investment partner to the UK with the total stock of Swiss foreign direct investment in sectors such as textiles, chemicals, manufacturing and financial services worth £74 billion in 2021, while UK investment into Switzerland was worth £52 billion. A new FTA would look to boost this even further, helping facilitate more investment by Swiss companies into communities around the UK and seeking preferential terms for UK investors in Switzerland.

Policy Chairman of the City of London Corporation, Chris Hayward, said:

The UK and Switzerland are the two largest financial centres in Europe which means strengthening our services trade relationship is a top priority for the sector. An enhanced trade agreement would address key cross-cutting issues including mobility, data flows and digital trade to the benefit of both jurisdictions.

Negotiating a new free trade deal with Switzerland along with a ground-breaking mutual recognition agreement in financial services presents a unique opportunity to set a new paradigm for services trade, and would provide a template for the UK’s future trading relationships.

Alexander Dennis Fleet Sales Director, Matthew Lawrence, said:

We’re the world’s leading manufacturer of double-deck buses and bus companies in Switzerland and we supplied Swiss national operator PostAuto with a fleet of low-emissions Alexander Dennis double decker buses.

A free-trade agreement between the UK and Switzerland would benefit us and our Swiss customers in streamlining the supply of spare parts, while also opening up business opportunities for further British-built buses.

Executive Director of International Policy, Association of the British Pharmaceutical Industry, Claire Machin, said:

Negotiation of an Enhanced Trade Agreement between the UK and Switzerland provides a pivotal opportunity for a world-leading agreement between two life science superpowers.

Prioritisation of life sciences in negotiations could help to boost the growth of our two innovation-intensive economies and set world-leading standards to encourage the creation and adoption of the next wave of scientific technologies.

During her visit to Switzerland, Badenoch will also meet with leading female business leaders at Advance, a network of close to 140 Swiss companies committed to increasing the share of women in management in Switzerland.

Background:

• The launch will take place at the Federal Palace of Switzerland. The first round of talks are scheduled for week commencing 22 May.
• Switzerland ranks as the UK’s 2nd largest trading partner in Trade in Professional and Business Services. In 2022, total PBS trade with Switzerland amounted to £9.2 billion (39% of total UK services trade with Switzerland).
• Talks will also look to provide long-term certainty on business travel, particularly for services firms, helping firms in a wide range of sectors, from life sciences to tech to share expertise, form vital partnerships and expand into new markets.
• We will also seek to cut remaining tariffs on UK exports such as red meat, chocolate and baked goods, which are currently very high. Switzerland imports over £5.5bn a year of agri-goods under product lines where tariffs still apply for the UK.
• The businesses are supported by Tenity, which provides incubation and acceleration programs to help startups in connect with entrepreneurs, experts, mentors, and investors for early-stage venture and late-stage venture investing.