Jul132017

Owning a home

John Redwood MP

Today I have been granted a debate on how more people can become homeowners.

A large number of people who rent their homes would like to be owners. Over a lifetime it is much cheaper to buy and hold a home of your own than to rent one. A person can be free of the mortgage to buy after say 25 years, leaving them without mortgage payment or rent for the rest of their lives. There are maintenance costs still to pay, but no rent rises and service charges.

A home owner has other advantages. Homes often go up in value, giving the owner an appreciating asset. This can help raise finance for other purposes, leaves something to pass on to another generation on death, or helps pay the care home bills in a home of their choice if the individual has to go into a care home at the end of their lives. There is more flexibility in switching between homes if you need to move areas or alter the amount of accommodation you have, than if you rent from a social landlord.

The issue today I want to encourage is how can we help more people into home ownership? I will of course state again that better controls on the numbers of people coming in to the UK will ease the demand pressure on our housing market. I will consider ways of more homes being built.

It still leaves open the question how can we assist all those first time buyers who do not have access to the bank of Mum and Dad?

Jul132017

Western Balkans: Regional Economic Area

EU

The Western Balkans Regional Economic Area aims at developing an area where goods, services, investments and skilled workers can move without obstacles. It will scale up the market available to potential investors in the region: access to almost 20 million consumers from a single base, and opportunities to create value chains across borders will boost Western Balkans economic attractiveness, also taking advantage of trade relations with the EU.

What is the European Commission’s position on the Western Balkans Regional Economic Area? Is it a Commission proposal?

The European Commission is responding to calls from the region itself for deepening cooperation to increase growth and create more jobs.

For a number of years, the Commission has made proposals to develop the ‘connectivity’ of transport and energy systems, as a flagship policy to promote regional co-operation and underpin economic growth in the Western Balkans. Consequently, the Commission fully supports the Western Balkans partners’ own ambition for deeper regional economic integration and is very keen to lend its political, technical and financial support. But it will be up to the countries themselves to take the necessary steps to accelerate regional economic integration.

Is the Regional Economic Area a substitute for EU membership or will it replace the enlargement process?

No, it is not an alternative to EU integration.

On the contrary, the progressive deepening of the economic integration in the region should be based on EU rules and principles. Such an approach will secure both integration within the region and with the EU. In this way, this initiative will be an important milestone for preparation for EU accession.

How will it be put into practice?

The concept will be put into operation through a multiannual action plan, endorsed by the Western Balkans leaders at the Trieste Summit on 12 July 2017. The action plan comprises four dimensions: trade, investment, mobility and digital market.

On trade, the parties agree to mobilise their efforts to implement successfully CEFTA additional protocols on trade facilitation, to swiftly conclude the adoption of Additional Protocol on trade in services and start without delay its implementation (in particular for key services such as finance, insurance, and transport), and to launch negotiations of a new protocol on dispute settlement. Provisions for eCommerce and external tariffs are also included.

On investment, the parties agree to establish a regional investment agenda, which will include exchanges of information and best practices on investment policies and identify policies that could be harmonised. The parties also agree to stimulate private sector development in order to maximise the benefit of the Regional Economic Area to the local economies.

On mobility, the parties agree to removing obstacles to mobility of professionals, through regional mutual recognition agreements of professional qualifications and removing obstacles to mobility of students, researchers and academics.

The digital dimension covers roaming and broadband deployment, cybersecurity and data protection, and will address the needs of digital skills over the region.

What is the timeframe?

That will depend on the region’s ambition! The timeframe for the establishment of the Regional Economic Area should not be set by the EU but by the parties themselves. The European Commission will support the parties in this process.

What benefits will it bring to the Western Balkans and to the EU?

Greater economic integration will make the region more attractive and competitive. Engaging in a regional economic area sends a powerful message that the Western Balkans is a market of some 20 million consumers with enormous untapped potential. This will attract more Foreign Direct Investment (FDI) and lead to higher economic growth and job creation. For the EU, such an area would also open new opportunities for EU and Western Balkans companies by developing value chains over the region. It would secure both integration within the region and with the EU and at the same time also foster the region’s approximation to the European Union.

Jul132017

BCC Quarterly Economic Survey: Subdued growth in Q2 amid challenging business conditions

British Chambers of Commerce

Today the BCC publishes the results of its Quarterly Economic Survey for Q2 2017.

13 July 2017

The British Chambers of Commerce (BCC) today publishes its Quarterly Economic Survey – the UK’s largest and most authoritative private-sector business survey. Based on the responses of over 7,700 businesses in Q2 2017, the results for both sectors indicate that the UK economy grew at a subdued rate in the second quarter of 2017.

The services sector, a key driver of UK economic growth, saw indicators of domestic activity, employment and investment continue to weaken slightly in the quarter. Consumer-facing industries such as retail outlets and hotels reported weaker growth rates compared to B2B businesses in the quarter.

The survey shows export sales and orders in the manufacturing sector remain solid and well above historical averages. While export activity increased marginally in the services sector, it remains below historic levels.

The balance of firms expecting prices to rise has decreased across both sectors, but remains close to the historically high levels seen in the wake of the EU referendum. The percentage of manufacturers reporting raw materials as the key driver of increased prices remains near record highs.

The findings indicate that while confidence in future turnover and profitability is improving, the balance of service firms revising their investment in training upwards is also at historical lows, particularly for retailers and wholesalers. Both sectors report low levels of improvement in cash flow.

Key findings in the Q2 2017 survey:

  • Overall, the figures for both sectors indicate static growth, with the services sector remaining below historic levels
  • The percentage balance of manufacturing firms expecting the price of their goods to increase over the next three months has fallen slightly from the near-historic-highs reported in the previous quarter (from +47% to +34%), and fell in services from +32% to +28%
  • However, manufacturers report continued pressure from the price of raw materials, with 60% reporting this as the cause of price increases (down from 76%). Pressure from financial costs also rose in both, rising from 12% to 15% in manufacturing and 9% to 13% in services
  • In the manufacturing sector, the balance of firms reporting increasing domestic sales held steady at +20, while domestic orders fell slightly from +16 to +15. The balance reporting export sales rose marginally from +26 to +27 and export orders fell from +22 to +20
  • In services, the balance of firms reporting increasing domestic sales fell from +22 to +19 and domestic orders fell from +19 to +15. The balance reporting increasing export sales rose from +10 to +13 and export orders also rose from +5 to +9
  • The percentage of businesses in both sectors attempting to recruit fell somewhat, but remain relatively high at 65% in manufacturing (down from 86%) and 49% in services (down from 59%). Of those, the percentage of firms facing recruitment difficulties dropped but remains high in both sectors at 64% (down from 74%) in manufacturing and 42% in services (down from 58%)
  • Confidence across the board held fairly steady in the second quarter. The balance of manufacturers confident that turnover would improve over the next 12 months rose from +44 to +46, and the balance for services from +39 to +40. The balance of manufacturing firms confident that profitability would increase rose from +32 to +33 and in services from +28 to +33
  • However, the balance of firms in both sectors reporting improved cashflow remains at historical lows, with +3 in manufacturing and +8 in services

Commenting on the results, Dr Adam Marshall, Director General of the British Chambers of Commerce, said:

“Our latest survey results, which reflect the outlook of companies in all sectors and locations of the UK, indicate that for many businesses growth is static at best, and at worst, beginning to slow. 

“It’s time for the economy to be put back at the heart of the agenda, with a focus on creating the best possible environment for business growth all across the UK. Government must play its part by tackling the issues that hold businesses back, including labour shortages, weaknesses in our physical and digital infrastructure, and high upfront costs which dampen investment intentions and firms’ growth potential. Any talk of higher business taxes to pay for politically-motivated spending must be quashed swiftly, to avoid undermining business confidence further. 

“The subdued growth picture also underlines the importance of getting as much clarity on the Brexit transition as possible, as quickly as possible over the coming months.”

Suren Thiru, Head of Economics at the BCC, said:

“Our latest survey indicates that UK economic activity remained subdued in the second quarter of 2017.

“Services sector activity stuttered a little with a number of the key balances weakening this quarter.  Consumer-focused industries were the worst performers – further evidence that rising inflation is dampening consumer activity. That said, the sector is likely to have been the key driver of second quarter growth. While the manufacturing sector enjoyed a solid quarter, the improvements are from a low base and the longer-term trends suggests that the sector’s contribution to overall UK growth will not be enough to offset weaknesses elsewhere.

“The latest results also point to a continued pick-up in export activity for both service sector firms and manufacturers. The improving growth outlook for some of the UK’s key international markets and the weaker sterling have helped improve trading conditions for UK exporters.

“Rising inflation remains the key challenge for the UK economy this year. Consumer prices are likely to keep rising in the coming months as the recent sizeable increases in the cost of raw materials and other overheads filter through supply chains. However, while still high, the drop in the balance of firms expecting prices to rise indicates that price pressures at the factory gate have moderated a little.” 

Ends

 

Notes to editors:

The BCC Q2 2017 QES is made up of responses from 7,700 businesses across the UK, and is the largest private business survey in the country. Firms were questioned between 22 May and 12 June 2017 on a wide range of business issues, including: domestic sales and orders; export sales and orders; employment prospects; investment prospects; recruitment difficulties; cashflow; confidence; and price pressures.

Spokespeople are available for interview and a full QES is available from the press office.        

How are balances calculated?

QES results are generally presented as balance figures – the percentage of firms that reported an increase minus the percentage that reported a decrease. If the figure is a plus it indicates expansion of activity and if the figure is a minus it indicates contraction of activity.  A figure above 0 indicates growth, while a figure below 0 indicates contraction. 

For example, if 50% of firms told us their sales grew and 18% said they decreased the balance for the quarter is +32% (an expansion).

If 32% told us their sales grew and 33% said they fell the balance is -1% (a contraction).

The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. Our Global Business Network connects exporters with nearly 40 markets around the world. For more information, visit: www.britishchambers.org.uk

Media contacts:

Orla Hennessy – Press and Communications Officer

020 7654 5813 / 07825746812

Jul132017

Press release: Firms urged to apply for groundbreaking cyber startup scheme

HM Government
  • Programme will be an integral part of developing UK cyber security capability
  • UK cyber security sector is now worth more than £22bn

A groundbreaking initiative bringing together GCHQ and industry expertise to develop new cyber security technology is to be extended.

Cutting-edge cyber security entrepreneurs and start-up firms are now being invited to apply to join the second programme in the GCHQ Cyber Accelerator which will be extended from three to nine months.

The expanded programme will give start-ups more time with the world-class personnel and technological expertise of staff from across GCHQ, including the National Cyber Security Centre, enabling them to expand their capability, improve their ideas, and devise cutting-edge products.

The programme will be delivered by Wayra UK, part of Telefónica, and the selected startups will receive benefits to help them scale all aspects of their businesses, including office space, mentoring and contact with an extensive investor network.

The facility will specifically help new firms turn their ideas into commercial products and services and contribute to the booming UK cyber security sector which grew from £17.6 billion in 2014 to almost £22 billion in 2015.

The accelerator programme is a collaboration between the Department for Digital, Culture, Media and Sport (DCMS), GCHQ, the NCSC, and Wayra UK.

Minister for Digital Matt Hancock said:

We are working hard to make Britain the best place to start and grow a digital business and the safest place to be online.

The GCHQ Cyber Accelerator is a vital part of this work and has already helped some of the most innovative cyber security startups develop cutting-edge new products and services.

I’m pleased to announce the programme is being extended and encourage the nation’s talented entrepreneurs to apply.

The accelerator is an important element of the Cheltenham Innovation Centre and a key commitment in the Government’s five-year, £1.9 billion National Cyber Security Strategy which aims to defend the UK in cyberspace, deter our adversaries and develop our cyber security skills and capabilities. DCMS is also planning to launch a second innovation centre – in London – at the end of the year.

The facility brings together experts in this field from government, academia and industry, and is a partnership which is vital to achieving the government’s aim of making the UK the best place to start and grow a modern digital business.

Earlier this year, seven start-ups graduated from the accelerator’s first programme and to date they have collectively raised more than £2.7m in investment, including follow-on contracts with major companies such as Cisco.

The firms which took part were CounterCraft, CyberOwl, CyberSmart, Elemendar, Spherical Defence, StatusToday and Verimuchme.

Chris Ensor, NCSC Deputy Director of Cyber Skills and Growth, said:

Cyber Accelerator represents a massive opportunity to collaborate with cutting edge companies to drive forward the government’s ambitious programme of innovation that is helping to protect the UK from evolving cyber threats.

Gary Stewart, Director of Wayra UK, said:

Improving cyber security is one of the most important challenges that we face, whether as large corporates, SMEs or individual citizens. We are eager to accelerate the growth of the next generation of cybersecurity startups, in partnership with GCHQ, DCMS and our colleagues at Telefónica. The goal is that the start-ups will scale up and we will all be more secure online.

Notes to editors

Wayra UK will deliver the accelerator programme.

Start-ups can apply via wayra.co.uk/gchq today. The closing date for entries is 9 August 2017. Successful start-ups will begin work in the accelerator in October 2017.

The accelerator programme will help start-ups boost and scale initial sales and business development with relevant partners and secure follow-on third-party investment. Start-ups will be given a grant by Wayra UK as well as a physical space to work in. Members will also have the opportunity to learn first-hand about cyber security best practices and gain Cyber Essentials accreditation.

The programme will include insights to Government procurement processes, IP management, export controls and information assurance architecture. There will be opportunities to pitch products and services to Government departments and GCHQ will also offer access to its national and international commercial partners across the cyber security sector.

Jul132017

Press release: Jobs boost for Welsh engineering sector

HM Government

Welsh Secretary Alun Cairns: CAF rail investment a ‘strong endorsement’ of Wales’ skills base and business environment.

Spanish train manufacturer Construcciones y Auxiliar de Ferrocarriles (CAF) has today (13 July) announced plans to create 300 jobs at a new factory at the former Llanwern steelworks site in Newport where it will build trains and trams for the UK network.

The company has previously supplied trains to the UK from its factories in Spain and looked at more than 100 locations throughout the UK before choosing its Newport location due to is transport links and access to a pool of highly skilled workers.

Secretary of State for Wales Alun Cairns said:

The announcement of this new manufacturing facility is fantastic news for Newport and will be welcomed by everyone who wants to see a thriving Welsh manufacturing sector. It means up to 300 new skilled jobs created at the plant, the potential for thousands of jobs secured in the supply chain and the start of a new chapter for this important manufacturing site in south Wales.

We must continue to be ambitious for Wales, and to make this country an attractive destination for investors. CAF is the latest major company to invest in Wales and is yet another strong endorsement of the skills-base and the business environment we are cultivating here. We are very much open for business and I look forward to seeing the new facility taking shape over the coming years.

Richard Garner, CAF’s UK Director said:

CAF is responding to demands made by its customers who are asking for British trains, manufactured by British workers using British based suppliers.

The new factory will be over 46,000 square metres and will employ 200 people when it opens in the autumn of 2018, rising to 300 in 2019. The facility will enable the build of a range of different trains, including trams, suburban and metro trains and high speed trains. CAF plans to start recruiting people to work at the factory in spring 2018 and will be offering training and apprenticeship schemes from autumn 2018.