Daily Archives: July 21, 2022

T

he UKs Brexit divorce bill could soar to 42.5 billion after the Treasury increased its estimate of the payments owed to the European Union by more than 5 billion.

Simon Clarke, the Chief Secretary to the Treasury, blamed rising interest rates affecting EU pension obligations for the increasing cost on Thursday.

Originally the Government estimated the bill covering spending commitments made during the 47 years of the UKs membership of the bloc would be between 35 billion and 39 billion.

The Treasurys latest estimate put the figure at 42.5 billion up from 37.3 billion a year ago.

Given this is a multi-decade liability, the variables used in this forecast will continue to fluctuate up and down

That is a rise of 5.2 billion.

In a written ministerial statement, Mr Clarke said the rise is primarily down to the UKs obligations for EU pensions.

The primary drivers are the latest discount rates and inflation assumptions, which are centrally set by the Government for valuing long-term liabilities, he added.

However, given this is a multi-decade liability, the variables used in this forecast will continue to fluctuate up and down.

Up until the end of last year, the UK says it has paid 5.8 billion to the EU as part of the agreement.

A Treasury spokesman added: The unprecedented recent rise in inflation and changes in discount rates have increased our pensions liability, which is the biggest reason for the increased estimate.

The true cost of the settlement is confirmed when payments are made, based on the value at the time. The Treasury continues to monitor and verify these payments in line with the negotiated agreement.

Originally posted here:

Brexit divorce bill could soar by 5bn, Treasury admits - Evening Standard

As households in Britain reel from crippling energy bills brought about by a global fossil fuel energy crisis, the Government has looked to boost its energy security by investing in renewables like wind and solar. Now, a new report by the think tank Green Alliance notes that not only will this decision help the UK end the energy crisis by scaping the volatile oil and gas market, but it will also be a major boost for skilled jobs in the UK. The report found that solar power alone could potentially support five times more jobs in the UK than gas.

Currently, 80 percent of the jobs in the operating and maintenance of solar panels are highly skilled and well-paid.

Marion Statham Anderson, a solar salesperson who currently works for Dual Fuel Solutions told Express.co.uk: The country voted Brexit to take back control, well surely this should be one of the Brexit benefits - the chance to become world-leaders in solar manufacture?

After all, the world is going to need more and more solar for decades to come.

Ive seen the demand out there among the public. Its real and its exciting.

Its a genuine growth industry and Id like to see government investment in it.

The report found that as expected, the sunniest regions of the country would benefit the most from a boost in solar power investment, with two-thirds of these jobs in the South of England and East Midlands regions.

The report noted that operation and maintenance roles in the solar industry support around 28,000 jobs, of which around 24,000 are highly skilled.

They added that if the UK ramps up its effort to decarbonise and get to net zero by 2035, it would lead to another 15,500 jobs, of which around 13,000 are highly skilled.

Having been involved in solar sales for almost a decade, Ms Anderson continued: The jobs are well paid and youre also doing something positive for the environment as well as giving your customers long-term energy independence.

READ MORE:EDF's 20bn Sizewell C nuclear power project APPROVED

But the government needs to do more to exploit solars potential in the UK by supporting businesses to grow and workers to get the skills they need.

It should give tax relief to companies that invest in staff training and increase workers confidence to shift industry with loans and grants to move.

Cutting planning red tape around solar installations will also help to accelerate the industry, which will bring energy bills down and create jobs across the country faster.

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Britain urged to harness Brexit benefits to slash red tape for FIVE times more jobs - Express

The Foreign Secretary has banged the drum for global Britain in her current job and made sure the UK has been at the forefront of the international diplomatic response to the invasion of Ukraine.

In her previous role at international trade, Ms Truss defied the critics to strike a landmark post-Brexit pact with Australia as well as put the UK on the path to membership of a trans-pacific alliance that is expected to reap major rewards for the economy.

Opponent Rishi Sunak attacked Ms Truss for her youthful dalliance with the Liberal Democrats and her support for remaining in the EU.

But leading Leavers Jacob Rees-Mogg and Nadine Dorries championed her as a stronger Brexiteer than the both of us.

Loyal to Boris Johnson to the end, Ms Truss says she is the true Conservative candidate and will cut taxes to help ease the burden on families struggling with the cost of living crisis.

Born in Oxford in 1975 to parents she describes as left-wing, the family moved to Paisley in Scotland when she was four and later to Leeds.

After studying philosophy, politics and economics at Oxford University, she worked as an accountant for Shell and Cable & Wireless.

But a career in politics beckoned and within four years of entering Parliament Ms Truss was given a Cabinet role and has remained one of the most prominent figures in government ever since.

After making it through to the final round, she told party members her experience means she is ready to hit the ground running from day one.

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ANALYSIS - How Liz Truss went from Remainer to Brexit hero - Express

"Get Brexit done," barked Boris Johnson as he campaigned to be the nation's prime minister in 2019, and on 31 January 2020 that's what he did - sort of - as we formally left the European Union.

Three years later he stood outside Number 10, announced he was going to resign, but said he was "proud" of his "achievements" in government. Like "getting Brexit done", for one.

So why is Penny Mordaunt campaigning to replace him and pledging to "get Brexit re-done"? Why is Rishi Sunak pledging to scrap so-called red tape from the EU?

After all, isn't Brexit "done"?

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Not really.

If you consider that Jacob Rees-Mogg has a job literally called minister for Brexit opportunities you may think not. Because if something is "done" - past tense, complete, why is a government department seeking out ways to make it function better?

Then there is the small matter of Northern Ireland and the government trying to tamper with a 2019 deal to prevent a hard border with the Republic of Ireland.

Trade figures show Brexit has been pretty damaging, so there is that to sort out too. And then there are traffic jams in Dover which can be partly attributed to post-Brexit bureaucracy, there were supply chain pressures last summer which were exacerbated by post-Brexit immigration policies making it harder for workers to enter the UK, and a Sainsbury's boss blamed rising food prices on the policy.

Yes, we've left the EU. We have new passports and we have to shuffle through a different queue at airports. But the above problems are a consequence of getting Brexit "done" and now they need to be "done" too for the country to find a rhythm detached from the continent.

So, saying Brexit is "done" is probably a bit silly. Just like most of the stuff that comes out of Johnson's mouth. Who's surprised?

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Have we actually got 'Brexit done?' - indy100

Boris Johnson's Brexit consisted of "two tactical errors" which must be taken seriously by the Tories battling to replace the Prime Minister.

The Conservative Party leadership contest is heating up, with Rishi Sunak, Penny Mordaunt, Liz Truss, Kemi Badenoch and Tom Tugendhat left in the running.

But the candidates are not giving enough attention to how they will reap the benefits of Brexit, according to one pundit.

Writing for Bloomberg, commentator Clive Crook identifies two "tactical errors" with how Mr Johnson has approached Brexit: "First, as a former member, Britain would be negotiating with the EU from a position of weakness; second, and even more important, the EU would be pleased to watch Brexit fail, and fail conspicuously, to discourage other rebellions."

He explains this is why Mr Johnson's approach, "all theatre and provocation", has failed.

He continued: "Standing on what Britain supposedly needs and demands might have traction at home, but has none whatever with the EU.

"Britains only hope is patient, cooperative, detail-oriented talks based on mutual advantage."

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Brexit: Britain 'in strong position' as prophets of doom shut down over UK debt - Express

The former Chief Adviser to Prime Minister Boris Johnson is a staunch Brexiteer and was formerly director of Vote Leave, a group which successfully executed the 2016 referendum campaign for the UK's exit from the European Union. Now he has shut-down Brexit critics and revealed a central reason why the country will greatly benefit over the coming years from not being tied to Brussels' rules.

Dominic Cummings tweeted: "Another excellent reason why elites wrong on Brexit, why UK will gain so much in coming years from being less entangled in its dysfunction, like on vaccines."

He was referring to an opinion article from Bloomberg energy and commodities columnist Javier Blas, entitled: 'Europes Energy Crisis Will Cost You $200 Billion Probably More'.

The continent is suffering from a crippling energy crisis as a result of Russia's ongoing and brutal war in Ukraine - driving up inflation to massive highs.

Annual maintenance work on the Nord Stream 1 gas line into Europe is due to be completed on Wednesday, but there are growing fears Vladimir Putin could turn off the supply in retaliation to the hard sanctions the EU has hit Russia with.

As a result of spiralling inflation and a struggling euro against the US dollar, there are also growing fears the Eurozone area could plunge into an extremely damaging recession.

Bloomberg columnist Mr Blas claimed in his article that "when the dust settled" the total bill for the European energy market will "easily top" $200billion (169.4billion).

Worse still, he warned that is just a "rough estimate" and doesn't cover "the worst-case scenario of both Russia fully shutting down natural gas supply to Europe and a colder-than-average winter".

Mr Blas took a swipe at leading European politicians for failing to "grasp" with the magnitude of the coming crisis and its costs, but reserved praise for Emmanuel Macron and Olaf Scholz as "the only ones that appear to get it now".

READ MORE:Nigel Farage issues dire warning to Tories over leadership

"But that only moves the bailout down the chain, as households and businesses would then face unaffordable bills and need government help."

The expert continued: "Ultimately, taxpayers will bear the cost either directly and immediately, via higher retail power and gas prices, or later, and over the years, via higher taxes to pay for the bailouts.

"European Governments should be upfront about the costs: They can win the argument that this is money well spent to stop Vladimir Putin."

He said how since the start of the Ukraine war five months ago, Putin has cut gas supply to Germany by about 60 percent, and said utility firm Uniper is losing around 30million (25.4million) each day having to buy the same gas in the "spot market".

Mr Blas warned if Putin does completely shut down the flow of gas, the utility's daily loses will surge to around 100million (84.7million) a day, or more than 35billion (29.7billion) a year.

Germany's Government would therefore come under huge pressure to provide that sum just to keep millions of people's power on.

The expert concluded: "If the utilities are allowed to pass higher gas costs onto the consumers, Goldman Sachs reckons that European households will have to pay 470 per month for electricity and gas, up 290 percent from the typical cost in mid-2020.

"Thats clearly unaffordable to many, perhaps most, and a much bigger bailout will be needed to help consumers get by."

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Cummings silences Brexit doom-mongers and reveals KEY reason UK 'will gain so much' - Express

Davis says Truss is Brexiteer now because it's become 'suitable'

Since leaving the EU, the UK has maintained an alignment with the blocs rules on data protection. However, in June the Department for Culture, Media and Sport (DCMS) published the Governments response to a consultation on the future of the UK data protection regime, laying out a path towards the UK Data Reform Bill.

In the responses to the consultation, most indicated support for the Governments proposals in many areas, including reducing barriers to responsible innovation and reducing burdens on businesses and delivering better outcomes for people.

Now, in July, the Government has set out the Data Protection and Digital Information Bill in the House of Commons.

The law is supposed to ease data protection requirements for companies, saving them a billion pounds over 10 years in costs, according to DCMS analysis.

Companies will no longer need a data protection officer, only a data controller, and will be able to refuse requests from individuals for their own data if the requests are abusive or excessive.

The law also creates the possibility of using personal data as one sees fit for research purposes.

The bill also aims to make things easier for law enforcement agencies, with the police no longer needing to specifically justify why they are accessing certain data sets.

Alexander Fanta, EU correspondent for netzpolitik.org, noted however it is unclear what impact the planned changes will have on data flows to the EU.

He said: For more than a year, the EU Commission has certified that the United Kingdom has a comparable data protection standard in two adequacy decisions - similar decisions have also been taken for Japan, Australia and other countries.

Whether a lowering of the data protection standard could have consequences for the decision was left open by the EU Commission for the time being.

However, the decision provides for an evaluation if there are significant changes to the legal standards in the UK.

Mr Fanta noted EU Commissioner Vra Jourov said in June 2021: This is why we have significant safeguards and if anything changes on the UK side, we will intervene.

READ MORE:Brexit LIVE: Truss masterplan on hated deal expected to clear Commons

Former Chancellor Rishi Sunak, tipped as favourite to succeed Boris Johnson as Prime Minister, said he wanted to scrap the overcomplicated legal framework of the GDPR.

He added the current framework prevents UK tech companies from innovating and the public sector from sharing data to fight crime.

Writing in the Telegraph on Sunday, he also promised he will have scrapped or reformed all of the EU law, red tape and bureaucracy that is still on our statute book and slowing economic growth by the time of the next election if he succeeds Mr Johnson.

Mr Sunak said he would task a Brexit minister and a new Brexit Delivery Department with reviewing all 2,400 EU laws transferred over to the UK statute book after the UKs exit from the bloc.

He would demand the first set of recommendations as to whether each law should be scrapped or reformed within my first 100 days in the job.

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The Governments June announcement included how data-driven trade generated nearly three quarters of the UKs total service exports and generated an estimated 234billion for the economy in 2019.

Nadine Dorries, Secretary of State for Digital, Culture, Media and Sport, previously said at the time the reformation of the UKs GDPR is an important step in cementing post-Brexit Britains position as a science and tech superpower.

She added: Our new data reform bill will make it easier for businesses and researchers to unlock the power of data to grow the economy and improve society, but retains our global gold standard for data protection.

Outside of the EU we can ensure people can control their personal data, while preventing businesses, researchers and civil society from being held back by a lack of clarity and cumbersome EU legislation.

Jon Baines, senior data protection specialist at Mishcon de Reya LLP, told the Fintech Times about the proposed bill: The proposed reforms to data protection law are very significant for individuals and organisations and will no doubt be the subject of much parliamentary debate before they are passed.

The Government is not taking forward a lot of the proposals it mooted last year, but this is still a major proposed set of changes. Many of the proposed reforms are clearly intended to be business-friendly.

The UK will, though, keep the current UK GDPR framework, which is strongly tied to the EUs GDPR.

There is still a risk, though, that the European Commission will see some of the changes as a step too far and lead it to review the current adequacy framework permitting free transfer of personal data between the EU and the UK.

Additional reporting from Monika Pallenberg

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GDPR bonfire incoming! Brexit victory as UK to carve up hated EU rules - Express

Penny Mordaunt has Irish Catholic roots, it has emerged, but her staunch support for Brexit makes her an outlier not just among many of those with Irish heritage but among her extended family.

She is the only member of the family brothers, father, uncles, cousins and others that supported Brexit, her uncle Henry Mordaunt said as he revealed that the familys Catholic ancestors fled England and moved to Ireland, possibly to escape religious persecution after Henry VIIIs Reformation.

He said it was a complete surprise to see his niece emerge as a frontrunner to become the UKs next prime minister, given she had a low public profile during Boris Johnsons leadership.

I disagree with her politics, unfortunately, but I would be happy for her if she achieves her ambition, he told the Irish Times.

The MPs paternal grandfather, Edward Mordaunt, was born to Irish parents in Canterbury, Kent.

Her uncle said reports that her grandfather had supported the IRA during the 192223 Irish civil war were incorrect. He refused to take part fighting fellow Irish men in a civil war when he was called up and so he was interned, he said.

His extensive research into the Mordaunt family history found that the Mordaunts were likely to have come to England as part of the Norman invasion in 1066. Some of them fled in the mid-1600s to Ireland.

Records do not exist to confirm the reason why some of the family ended up in Ireland but Henry Mordaunt believes it was part of a substantial movement of Catholic English emigrants to Ireland in the 16th and 17th centuries as anti-Catholic laws were not enforced so heavily there.

Mordaunt has not mentioned her Irish links during her campaign nor revealed her views on the Northern Ireland protocol bill tabled by her leadership rival Liz Truss last month.

If it becomes law, it would result in Britain tearing up part of its deal with the EU and giving hard-Brexiters including David Frost, Steve Baker and Mark Francois the clean break they have wanted from Brussels.

Each of the five candidates has sought to burnish their Brexit credentials and maintain support from the right of the party but only three Mordaunt, Rishi Sunak and Kemi Badenoch voted for Brexit.

Only Truss, who voted remain but now presents herself as a hard-Brexiter, has mentioned the Northern Ireland protocol during the campaign.

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Advertising his Brexit purity, Sunak released a slick video over the weekend reminding party members he had gone against the advice of the then prime minister, David Cameron, and supported leave in the 2016 referendum campaign.

Sources say Sunak has expressed reticence on the protocol bill in the past because of the risk of triggering a trade war with the EU.

Last year Mordaunt spoke of the unique disadvantages Northern Ireland was suffering because of the protocol and the disruption to years of trade with Great Britain.

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Penny Mordaunt only one in her family to support Brexit, says uncle - The Guardian

Essentially, he claimed that the entire belief system that Britain is a self-sustainable island that is being held back from its true potential due to ties with Europe originated in the Reformation.

Alongside Henry was another prominent figure of the time, his chief minister Thomas Cromwell who would draft two acts of Parliament in the 1530s that would cement this ideology, albeit based somewhat on fables rather than facts.

The first act, titled the Act in Restraint of Appeals, banned appealing to the Pope in ecclesiastical matters and meant that final authority would now be found in Londons parliament rather than in Rome with the Pope.

The wording of this act stated the realm of England is an empire according to chronicles of history.

However, the chronicles of history that Cromwell was reliant upon to justify this claim was The History of the Kings of Britain, a pseudo-history book written by a Welsh monk that included tales like King Arthur and the knights of the round table.

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'Origins of Brexit' linked back to 16th century Kings: 'Look no further than Henry VIII' - Express

In a blow to researchers, academics and scientists based in the UK, the EU recently revealed that it would be scrapping 115 grants that form part of its 95.5 billion Horizon Europe programme, as Brexit tensions between the EU and the UK continue to grow. However, today the UK published counter plans to plug the funding gap in what is likely to be seen as an attempt to stop some of the UKs smartest people from relocating to the EU.

The British Government has been trying to position the UK as a science and innovation superpower and losing ties with Europes largest research and innovation programme is a blow to its ambitions. Some researchers have explicitly said that they are planning to move to EU institutions as a result.

In December 2020 the UK had initially negotiated to remain part of Horizon and committed to investing in the programme. However, with the UK seeking to amend the Northern Ireland protocol, without using the official dispute-resolution system that was agreed as part of the Brexit process, legal action has been triggered by the EU and barriers on both sides are beginning to go up.

With this in mind, the UK has this week announced a new package of transitional measures that it hopes will ensure stability and continuity of funding for researchers and businesses, if the UK is not able to associate to Horizon Europe in the coming weeks and months.

The UK is (predictably) positioning this as the EUs doing and this week said that the funding being pulled is a result of the EUs continued delays, whilst failing to mention the dispute over the Northern Ireland Protocol.

Commenting on the transitional plans announced this week, Secretary of State for Business, Energy and Industrial Strategy, Kwai Kwarteng, said:

The UK Government has always been clear that our departure from the European Union (EU) does not mean leaving the flagship Horizon, Copernicus, Euratom Research & Training and Fusion for Energy programmes. The UK has always been a major financial and intellectual contributor to these programmes and seeks to continue that partnership.

Unfortunately, the EU has still not formalised our association to these programmes as agreed under the Trade and Cooperation Agreement (TCA), linking them to resolution of wider political discussions. I am concerned that the continued delays are causing intolerable uncertainty for our research and business community. To help minimise the uncertainty and signal our good faith commitment to association, the government set out our Horizon Europe guarantee in November 2021, and then extended it to the end of this year.

Over the last few months, we have made clear that the UK is more committed than ever to strong research collaboration with our European partners, and that close scientific collaboration is key to our wider shared security. Despite widespread support for UK association across member states and the EUs research community, association continues to look unlikely while the EU links it to wider political issues.

The British Government has said that it is prepared for all scenarios and that it is developing a long-term Horizon alternative, which it says will draw on the best features of Horizon and add some improvements. However, if the UK is not able to associate to Horizon Europe in the short term, the focus will be on the transitional measures announced this week.

Kwarteng added:

The Governments position remains to associate to all 4 EU programmes. Given the ongoing delays, however, whatever happens we need to ensure that we are making the most of the UKs science and innovation strengths, and so we need to prepare for an alternative future. In developing these programmes, we will need the support of the whole UK R&D community. This is a vital moment for UK research in which I and the Government are determined we will strengthen, deepen, and widen our commitment to international research.

The British Government has said that its preference is for the UK to associate to Horizon Europe, but that given the uncertainty, it will be introducing these transitional arrangements in an attempt to provide some certainty to the UK-based research and innovation community. These include:

The Horizon Europe Guarantee the government has said that if it is unable to associate, it will fund applications that are submitted to a Horizon Europe funding call with an EU final call deadline date before the point of non-association, and are successful in the EU evaluation and meet the eligibility criteria of the guarantee. This includes those where grant signature dates fall beyond the end of 2022.

Funding for successful, in-flight applications - the government will also support UK entities with eligible in-flight applications to Horizon Europe (to calls that have closed or are open at the point of non-association, where such applications are not being evaluated by the EC), by assessing such applications domestically, to ensure the best get funded should the EC no longer carry out the evaluation

Uplifts to existing talent programmes - the government has said that it will increase funding for its best existing talent schemes covering a broad range of disciplines via National Academies and UKRI. This will be followed by the creation of a new UK fellowship and award programme, designed to retain and attract top talent in the UK.

Uplifts to innovation support the government will increase funding for a range of its innovation schemes targeted at small and medium sized businesses (SMEs), delivered by Innovate UK, and go on to create new mechanisms.

The Talent and Research Stabilisation Fund the government will use formula funding to support a range of eligible UK institutions who have been most affected by the loss of Horizon Europe talent funding. The fund will enable eligible research organizations and universities to support talent retention and target funding vulnerabilities at a local level

Third Country Participation - around two thirds of Horizon Europe calls are open to UK researchers and companies as Third Country applicants, as part of consortia with at least three other applicants from EU member states or associated countries, provided they bring their own funding. As this is a priority for businesses and researchers, the government will fund all eligible UK entities participating in any such consortia signing grant agreements before 31 March 2025.

It will no doubt be welcome that the government has announced some measures to plug gaps for researchers and academics in the UK, who have been in limbo for months not knowing if their funding will be pulled. Whether or not this will be enough to convince some researchers to stay in the UK, remains to be seen. Equally, there should still be an ambition to associate to Horizon, despite this announcement, as funding isnt everything. Collaboration and access to institutions across the EU is vital for many of these researchers and Horizon enables much of that. The UKs plan to create a programme that rivals Horizon - on its own - seems ambitious in the extreme and shouldnt be the end goal here.

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UK reveals plans to fund research and innovation as EU pulls plug on Horizon support amid Brexit row - Diginomica