Date

20 November 2012

James Davies Clerk Business, Innovation and Skills Select Committee House of Commons 7 Millbank London SW1P 3JA

Dear James Thank you for your letter containing a number of follow up questions following the evidence session with the Secretary of State and Permanent Secretary on 30 October. Please find attached a response which needs to be read alongside two additional documents. Please note on the point about UKTI that a UKTI Business Plan does not exist. UKTI has an internal Corporate Plan from which we have extracted data on its performance management framework to provide the Committee with a response. May I also advise you that information requested for "Clarification of the Growth Implementation Committee meeting schedule and a list of the membership of the Committee" cannot be provided as information relating to the proceedings of Cabinet Committees, including when and how often they meet and which Ministers have attended, is generally not disclosed, as to do so could harm the frankness and candour of internal discussion. Yours sincerely Ian Webster

Department for Business, Innovation and Skills

Ministerial and Parliamentary Support Team

Parliamentary Clerk 1 Victoria Street London SW1H 0ET

Direct Line +44 (0)20 7215 6630 Fax +44 (0)20 7799 1531; 020 7233 8891 Minicom +44 (0)20 7215 6740 Enquiries +44 (0)20 7215 5000 www.bis.gov.uk Ian.Webster@bis.gsi.gov.uk

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BIS Select Committee – Follow up response Contents: Page 3 • An update on the commitments made through the RGF and Implementation. Pages 3-5 • A note detailing UKTIs export indicators and the UKTI Business plan. Page 6 • Further information on the timetable and release of money through the

Business Finance Partnership. • Details of LEP private funding levels and proportions compared to the old

system of RDAs. Page 6-7 • Clarification of the Growth Implementation Committee meeting schedule and a

list of the membership of the Committee. Page 7-8 • Data on Green Investment Bank gearing (private and public funding). Page 8-9 • Details of the Department’s “Pulse” staff results and update on progress since

Witty’s recommendations. Pages 9-10 • Explanation of how ministers are being involved in the BIS board. Pages 10-11 • Details on the Department’s assessment of the HEPI report on student loans

and where the Department believes that HEPI’s assumptions are inaccurate. Page 11 • Information on how the bankruptcy risk is assessed in relation to the students

loans and tuition fees.

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Pages 11-12 • The Department’s analysis of the change in student numbers as a result of the

changes in tuition fees. Page 12-14 • Clarification on the impact on inflation of A) Pre-2010 student loans; and B)

The new tuition fee regime? Higher education tuition fee reforms and the CPI. Page 14-15 • The Department’s assessment of the impact on the exchequer, and on existing

universities, of extending VAT exemption to for profit HE bodies. Page 15-17 • A detailed note on the regulatory improvements made this year. Specific

explanation of the regulatory reform landscape. It would be helpful for this to include: A. Breakdown of the £800m savings cited in Q104; and B. Whether the £23.66m published in Annual Report relates solely to regulatory

changes in FY2011-12 or includes savings from regulatory changes introduced in the previous financial year?

Page 17 • Details on projected savings arising from the amendment of the Companies Act. • Confirmation of the removal of existing gold-plating of the fourth EU Company

Law Directive. Page 17-18 • What is the current position regarding pubs and the voluntary code of practice? Page 18 • Departmental Redundancies. Page 18-20 Skills Funding Agency: Intangible Assets. Page 20 • Green Investment Bank. How will the chairman of the GIB be appointed? Will

the appointment be subject to a pre-appointment hearing by the Committee?

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• An update on the commitments made through the RGF and Implementation.

The RGF has a heavy focus on private sector leverage as this is the most effective way of delivering economic growth and sustainable employment. This is the key difference with the RDAs who achieved a much lower amount of leverage. In their evaluation of RDAs, PWC found that between 2002 and 2007 the RDAs spent £8.7bn which leveraged in £5.7bn of private sector investment. In the case of RGF, (total budget £1.4bn for Rounds 1 and 2) 160 large projects and programmes have started and will, over the project lifecycle, have injected almost £4.9 billion of private investment into our economy.

• A note detailing UKTIs export indicators and the UKTI Business plan.

UKTI’s Performance Management Framework, 1st attachment, sets out their targets for 2011-12 to 2014-15. These targets reflect UKTI’s focus on the number of businesses assisted but also the value added to the broader economy, appreciating that the aim is to help businesses build and upgrade their internationalisation capability to begin exporting, and/or help existing exporters to expand into new export markets. On the trade side this now includes, for the first time, an assessment of the added value of sales arising from the support that UKTI provides. However, further work is being undertaken in this area so that UKTI can better reflect the specific value of ‘export deals’ UKTI helps companies achieve. The committee will wish to see how UKTI performed against its targets in the last financial year, and this is shown in the final column of the attached Framework.

Separately, Government is tracking how UK PLC is performing against the Chancellor’s ambition for the UK of doubling trade to £1trillion by 2020. One way to achieve this would be to increase exports to match those of our key EU competitors (Germany, France and Italy) in the emerging economies and wider Europe. By 2020 the UK will need to see growth in exports of 8.5%. In 2011, the UK exported in the region of £492bn, up 10% on the previous year. The 2nd attachment shows a table comparing export figures for 2010 and 2011, showing growth achieved; along with the percentage growth figures required to a. maintain market share and b. match the EU-3 by 2020.

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UKTI performance Framework and performance 2011/12

Pathway Target 2011/12 2012/13 2013/14 2014/15 2011/12

Performance Pathway 1 Trade Development Group

Business Assisted 25,000

32,000 40,000 50,000 25, 450

Revenue generated £7m £9m £11.5m £13m £9.1m Quality 80% 80% 80% 80% 79% Satisfaction 80% 80% 80% 80% 75% Significant business benefit

70% 70% 70% 70% 71%

Pathway 2 Strategic Trade Group

Value: Additional Revenue attributed to UKTI

£45.5bn £49bn £56bn £31.8bn

Of which High Value Opportunities (HVOs)

£1.5bn £3.0bn £4.0bn £4.5bn £800m

UKTI Defence & Security Organisation

Average market share for global defence exports

20% 20% 20% 20% 15%1

Increase average share of global security market

4% - 5% 4%

Olympics Deliver £1billion additional business benefit to the UK economy (at games time and in the following years) Help government deliver £13bn economic legacy benefit to the UK economy over the next four years

£1bn - UKTI delivered over 2,700 services to more than 2,600 businesses. This number requires de-duplication to better assess the number of individual businesses assisted, the impact and benefits achieved. This will start to come through our independent monitoring (PIMS) surveys and results will be available from March 2013. £11bn - Made up of £6bn Investment, £1bn Trade, £4bn High Value Opportunities (+ £2.3bn Tourism = £13bn)

Pathway 3 & 4 Investment & Investment Development

Involved Successes Of which High quality Jobs

750 675 Not targeted

750 675 50,000

750 675 50,000

750 675 50,000

1,172 1,016 60,486

Quality GvA £1.6bn £1.6bn £1.6bn To be reported through PIMS shortly.

Quality 80% 80% 80% 80% Satisfaction 80% 80% 80% 80%

Strategic Relationships - Global Companies

150 companies will have effective virtual teams and cross-Whitehall Strategies

38 50 100 150 38

90% of SRM companies report a ‘good’ or ‘excellent’ relationship with HMG

66% report improved relationship

90% good or excellent

90% good or excellent

These are new targets, a reporting process has been developed and we will be able to report shortly.

90% of x-cutting issues raised by companies appropriately addressed

90% 90% 90%

Strategic Relationships - Institutional Investors

At least 30 developers, 30 institutional investors and 20 intermediaries will be effectively managed.

80 80 80

160 high quality introductions will have been made.

40 90 160

90% of investors report a ‘good’ or ‘excellent’ relationship with HMG.

90% ‘good’ or ‘excellent’

90% ‘good’ or ‘excellent’

90% ‘good’ or ‘excellent’

£4.5bn will have been invested in UK priority projects.

£1bn £2.5bn £4.5bn

1 When measured over a 10 year period (2002-2011), which smoothes fluctuations caused by major contract awards, the UK retained a 20% average share of the global market.

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Individual country performance in 2011.

2010 2011 between 2010 & 2011

Argentina 0.6 0.7 12.4 23.7 37.5Australia 8.9 10.1 14.3 18.7 ‐Austria 2.1 2.5 16.3 14.9 ‐Bahrain 0.5 0.5 11.8 3.8 ‐Belgium 16.3 19.1 17.1 14.6 ‐Brazil 3.1 3.7 18.0 19.4 26.5Bulgaria 0.4 0.5 27.7 19.2 42.5Canada 7.8 8.5 9.8 9.9 ‐Chile 0.9 1.0 23.3 20.8 22.1China 10.3 12.5 21.3 20.4 29.6Colombia 0.5 0.7 44.9 27.4 31.6Cyprus 1.2 1.5 27.1 0.5 ‐Czech Rep. 2.3 2.5 10.1 14.7 43.5Denmark 5.8 5.9 2.9 5.3 ‐Egypt 1.8 1.7 ‐4.1 4.2 6.9Estonia 0.3 0.3 26.0 35.7 42.1Finland 2.8 3.0 7.1 11.2 ‐France 28.4 32.0 12.9 11.8 ‐Germany 38.8 43.9 13.3 14.2 ‐Greece 2.6 2.4 ‐4.8 2.5 ‐Hong Kong 6.2 7.4 20.0 8.7 ‐Hungary 1.6 1.7 10.6 11.3 35.6India 6.2 8.3 34.3 21.3 ‐Indonesia 0.8 1.0 21.6 24.3 25.8Iraq 0.6 0.8 24.1 13.8 ‐Ireland 25.7 27.4 6.9 4.1 ‐Italy 14.2 15.6 10.1 9.1 ‐Japan 8.9 9.6 7.9 18.2 ‐Kazakhstan 0.8 1.0 14.8 13.6 ‐Kuwait 1.0 1.1 4.4 9.1 ‐Latvia 0.3 0.4 39.0 28.6 36.0Lithuania 0.3 0.5 39.6 29.3 44.6Luxembourg 2.5 3.0 17.4 8.7 ‐Malaysia 2.0 2.3 13.3 11.1 ‐Malta 0.6 0.7 18.2 5.1 5.4Mexico 1.5 1.5 3.9 11.5 22.9Morocco 0.7 0.8 6.8 19.1 43.3Netherlands 31.3 34.1 8.7 9.9 ‐New Zealand 0.9 1.0 9.4 15.7 ‐Nigeria 2.7 2.9 6.3 22.6 ‐Oman 0.6 0.6 1.4 11.3 ‐Philippines 0.4 0.5 8.3 ‐1.7 1.3Poland 4.9 5.7 16.4 11.2 29.2Portugal 2.6 2.6 ‐1.6 3.0 ‐Qatar 1.6 1.7 11.0 21.6 ‐Rep. of Korea 3.5 4.1 15.8 15.7 18.2Romania 1.1 1.3 16.1 17.6 49.8Russia 5.3 7.3 37.9 23.5 36.1Saudi Arabia 5.7 5.5 ‐4.1 9.6 ‐Singapore 7.3 7.8 7.4 12.4 ‐Slovakia 0.8 1.1 39.7 11.2 46.5Slovenia 0.3 0.3 5.2 12.5 88.8South Africa 4.7 5.4 14.1 15.8 ‐Spain 15.1 15.3 1.2 8.5 ‐Sweden 8.5 9.6 11.9 12.8 ‐Thailand 1.6 1.9 20.2 17.8 ‐Turkey 4.4 5.2 17.5 24.1 33.6United Arab Emirates 6.3 6.9 9.7 17.2 ‐USA 77.1 79.9 3.6 8.9 ‐Vietnam 0.5 0.5 9.6 20.7 26.3

Rest of World 50.6 54.3 7.3 10.4 10.4World 447.1 491.8 10.0 11.7 13.0

Notes: A blue box shows  that UK exports  to a particular market grew quickly enough to maintain constant share in that market.  A purple box indicates  that UK exports  grew fast enough to be on track to close the gap with our European competitors  (France, Germany & Italy) by 2020.  The EU‐3 benchmark only applies  to emerging powers  and emerging European countries  where the UK is  behind.

Percentage growthneeded to maintain 

market shareneeded to match the 

EU‐3 by 2020

UK Exports (£bn)

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• Further information on the timetable and release of money through the

Business Finance Partnership.

BIS's part of the Business Finance Partnership is a £100m programme that invests alongside private sector investors in funds that issue capital to UK SMEs. The fund is not a rolling programme - BIS monies will be committed over a two year period (2012/13 and 2013/14). As soon as Government money is committed, underlying funds will have to deploy the money to businesses within a 2 year period. This is a condition of our investment, as set out in the Request for Proposals. Business Finance Partnership should make commercial returns which will come back to exchequer at the same time that private sector investors get their money back. The exact profile of returns is not clear at this stage.

With regard to the exact timetable, the Request for Proposals closed on 20th July 2012. Proposals meeting the objectives and minimum requirements of the BFP were selected during summer 2012. Capital for Enterprise Limited, BIS' delivery body is currently carrying out due diligence of these proposals, as well as financial and legal negotiations, and we anticipate announcing the first selected bidders later this month (November), subject to legal and financial arrangements being completed. HMT is managing a further £1.1bn of Business Finance Partnership money, which will help mid-sized business rather than small firms.

• Details of LEP private funding levels and proportions compared to the old system of RDAs.

RDA budgets are available on the URL below and that their accounts have been laid before. Parliament. With respect to local enterprise partnerships (LEPs), we don’t know nor will we know how much the private sector will be offering in the way of a match to attract LEP Core Funding for the next two financial years. Government has made the offer of up to £250k per LEP for the next two years dependent on a pound for pound local match from either the public or private sector. We are not in a position to know or guess what the private sector contribution might be and this is in line with the light touch approach we have adopted. http://webarchive.nationalarchives.gov.uk/+/http://www.bis.gov.uk/policies/economic-development/englands-regional-development-agencies/rda-finance-and-governance

• Clarification of the Growth Implementation Committee meeting schedule and a list of the membership of the Committee.

The confirmed membership of the Economic Affairs (Growth Implementation) sub-Committee is as follows:

Economic Affairs (Growth Implementation) sub-Committee Chancellor of the Exchequer (Chair) (The Rt Hon George Osborne MP) Secretary of State for Business Innovation and Skills (Deputy Chair) (The Rt Hon Dr Vincent Cable MP) Minister without Portfolio (The Rt Hon Kenneth Clarke QC MP)

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Minister for the Cabinet Office, Paymaster General (The Rt Hon Francis Maude MP) Chief Secretary to the Treasury (The Rt Hon Danny Alexander MP) Minister of State – Cabinet Office (The Rt Hon Oliver Letwin MP) Minister of State – Education/Cabinet Office (The Rt Hon David Laws MP) Other ministers attending as required Minister of State - Communities and Local Government (Mark Prisk MP) Parliamentary Under-Secretary of State - Communities and Local Government (Nick Boles MP) Minister of State Business, Innovation and Skills (The Rt Hon David Willetts MP) Minister of State FCO/BIS (Lord Green) Financial Secretary to the Treasury (The Rt Hon Greg Clark MP) Parliamentary Under-Secretary of State - Business, Innovation and Skills, (Matt Hancock MP) Commercial Secretary to the Treasury (Lord Deighton - who will take up his post in January 2013, until then Lord Sassoon remains the Commercial Secretary) Parliamentary Under Secretary of State -Culture, Media and Sport (Ed Vaizey MP) The membership list was published on 30 October, through a Written Ministerial Statement by the Minister for the Cabinet Office (Official Report, column 8WS), once the membership of all the cabinet committees had been confirmed.

We are working across Government to create the right conditions for business to succeed and remove barriers to growth. We are making good progress delivering over 250 Growth Review commitments published in 2011 in the Plan for Growth and Autumn Statement. BIS and HMT report progress against these achievements regularly, most recently at Budget 2012 and intend to publish a further update around the time of the Autumn Statement. In the interim period, we have provided (seperately) the March implementation update (PDF) with this return.

• Data on Green Investment Bank gearing (private and public funding).

UK Green Investments – a team of finance professionals set up in BIS to make commercial investments in the period before state aid approval for the UK Green Investment Bank (UKGIB) – has committed £180m to fund managers since April 2012.

The investment made in August in an in-vessel composting and anaerobic digestion facility to be developed and operated in Dagenham by the TEG Group, an AIM listed green technology company, illustrates the mix of state and private financing.

UKGIB is providing c.£2m of equity to the project via the UK Waste Resources and Energy Investments Fund (UKWREI), which is managed on its behalf by a fund manager, Foresight. In line with its match funding requirement, UKWREI secured an additional £2m for the project from Quercus Assets Selection SCA SICAV-SIF (a privately held family fund). A second fund managed by Foresight, the Foresight Environmental Fund (FEF), invested a further £9m of equity into the project.

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Alongside the equity investment, senior debt into the project of £7.9m was secured by Foresight from London Waste and Recycling Board (£4.4m) and Investec Bank plc. (£3.5m). Following UKGIB being granted full operational powers on 29 October, this investment has now been transferred from BIS to UKGIB. UKGIB will collect data to demonstrate the level of mobilisation of private capital achieved by its investments.

• Details of the Department’s “Pulse” staff results and update on progress since Witty’s recommendations.

The Civil Service People Survey in 2011 reported an engagement score of 49%. This was after a major restructuring of the Department to meet Government spending targets and saw many members of staff leave BIS or be redeployed. Staff will take these external factors into consideration when completing the People Survey, and this would have been reflected in this score.

We subsequently undertook a pulse survey three months on in February, which showed an overall engagement score of 42.19%. We therefore followed this with a more in-depth survey on communication effectiveness and engagement. The BIS Communications Audit was conducted between 22nd and 28th March 2012 with the figures reported in April. This provided an opportunity to measure engagement at the halfway point between Civil Service People Surveys. We surveyed 486 employees and undertook three focus groups (conducted concurrently) with circa 30 directors/deputy directors from across BIS. The results showed an overall engagement score of 41%. It should be noted that both of these subsequent surveys are highly likely to reflect external concerns.

The BIS Executive Board responded quickly to these figures and launched a comprehensive programme to improve engagement across BIS. In designing this programme, the Board took account of the various factors that influence the engagement of staff within organisations (see, for example, the MacLeod report on “Engaging for Success: enhancing performance through employee engagement”).

The aims of the BIS programme are to: o Tell a consistent story across BIS to give greater clarity to staff about BIS's goals,

plans and successes o Develop and embed a fresh set of values and core behaviours o Establish a more consistent approach to communications within the Department.

Under this programme, we have introduced performance updates, debates with staff on policy and internal issues, more inductions for new starters, a series of seminars with external speakers (hosted by Martin Donnelly and Director Generals), blogs and video diaries. In addition to the surveys outlined above, we evaluate all events closely to ascertain the engagement levels amongst those attending. The quarterly figures (which measure relevance and usefulness of events, and whether an employee felt more engaged as a result of attending) are:

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Q1 2012 Q2 2012 Q3 2012

Engagement 82.66% 75.51% 73.80% Would you recommend this event 52.67% 65.25% 98.90% to a colleague

It should be noted that it is unlikely that staff will be influenced by external factors when completing engagement surveys about events. While this will therefore show a discrepancy between different engagement scores, it demonstrates that when the Board engage with staff, it does make a difference.

We have also launched a programme of regular events for our senior civil servants. This is part of our work to develop a cohesive leadership team and build our confidence and capability as a Department to maximise our impact. We have taken pulse checks at these events against a number of engagement indicators. These have demonstrated that our leaders have more clarity on their role as a leader in BIS (97.03%) and the role of their teams in delivering BIS priorities (95.10%). Overall event satisfaction is high at 74.55%.

We are now preparing to be able to respond quickly to the results of the 2012 People Survey and to continue building our staff engagement. We are committed to building their capability and delivering a confident, high-achieving Department in which our staff are pleased and proud to work.

To ensure we meet these commitments, the Communication Audit will become an annual survey and we are initiating quarterly pulse surveys based on the People Survey in January 2013 to supplement the quarterly reporting of data from our engagement programme. We are also enhancing our engagement programme from the feedback returned this year.

• Explanation of how ministers are being involved in the BIS board.

The BIS Departmental Board embraced Sir Andrew Witty's recommendations in full and made a number of enhancements to maximise ministerial engagement and make best use of the excellent input provided by our Non-Executive Board Members. These enhancements have included: o clarifying the role of the Departmental Board, so that its emphasis is on the large

strategic issues and risks facing the Department. This new focus has increased ministerial engagement in key issues;

o structuring the Departmental Board agenda around fewer, better quality papers to allow for a fuller exploration of strategic issues by the Board;

o setting aside regular Departmental Board time to discuss risk and mitigation with Ministers and Non-Executive Board members;

o in the future, we will be inviting Ministers who are not Departmental Board Members to attend discussions that are relevant to their portfolio; and

o holding periodic off-site events ('away half-days') for the Departmental Board. In June, the Board met off-site for a three-hour session on Industrial Strategy.

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This was a highly successful session which allowed Ministers, the Non-Executive Board Members and officials to work together on an issue of key strategic importance. • Details on the Department’s assessment of the HEPI report on student loans

and where the Department believes that HEPI’s assumptions are inaccurate.

HEPI’s criticism of the BIS estimate of the student loans RAB charge

HEPI argue that the BIS estimate of the RAB charge of 32% for the 2012 system is optimistic. They claim the IFS’s pessimistic estimate of 37% appears more plausible. The additional cost of that 5%pt increase in the RAB charge would be around £500m per year.

The RAB charge is uncertain as it relies on several assumptions about graduate earnings and other factors over the next 35 years. The BIS estimate of the RAB charge may increase in the future if we feel obliged to change these assumptions or our modelling methods. The key assumptions are –

1) The discount rate of 2.2% real agreed with HMT. Professor Neil Shephard has argued we should be using a lower rate to reflect the current low cost of borrowing for the Government. If a 0% real rate were used the RAB charge would be close to zero rather than around 30%;

2) Past graduate earnings are assumed to be a good indicator of future graduate earnings. We do not know what the graduates of 2005 or 2015 will earn when they are aged 40 or 50. In the absence of more reliable approaches we assume that data on past graduates – taken from the Labour Force Survey – are a reasonable indicator of the earnings of recent and future graduates;

3) General long-term earnings growth projections from the OBR. These are applied to the earnings data we have for past graduates to simulate the earnings of recent and future graduates. The OBR projections from July 2012 are for 3.4% RPI and 4.75% nominal earnings growth. We do not assume that the earnings growth will be higher for higher earners and lower for lower earners. The RAB estimate is not especially sensitive to this long-term earnings growth assumption as the repayment threshold is assumed to be increased by the same measure;

4) Short-term earnings projections from the OBR. The estimate of the RAB charge is particularly sensitive to these as the £21,000 threshold has already been set for 2016, before we know what earnings growth will occur between now and then. If this earnings growth is low, the £21,000 threshold could prove to be more generous than planned and the RAB charge higher than our current estimate. The OBR will update its short-term projections of earnings growth on 5 December;

5) The volatility in the earnings ‘pathways’ followed by individuals. All else equal, the RAB charge estimate will be lower if we assume individuals have volatile earnings paths over time (i.e. if low earners spend some time as high earners) or higher if we assume individuals occupy a relatively fixed position in the earnings distribution. We are currently reviewing this aspect of the loan repayment model and may need to make changes in 2013.

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The net result of the above assumptions is that the pessimistic IFS estimate of 37% is a reasonable illustration of a pessimistic scenario. We cannot be sure about the earnings of graduates over the next 35 years and it is possible that some of our current assumptions could prove optimistic. Equally, it is possible that over time the discount rate assumption will be revised downwards as Shephard suggests. HM Treasury are planning to review that assumption each Spending Review. Under a lower discount rate a RAB estimate far lower than our current 32% estimate is feasible. A lower discount rate assumption could reduce the RAB estimate by 5, 10 or 20% points. As the 2012 policy means that the cash outlay on student loans for maintenance and fees is likely to be over £10bn by 2015, a 5% point change in the RAB estimate would equate to a £500m change in the annual resource cost of new loans.

Overall, this is why we can say that – some experts claim our RAB charge estimate is too low (HEPI) and others claim it is too high (Shephard). We are satisfied that our estimate is neither overly optimistic nor pessimistic. We regularly review our modelling of the RAB charge and will update it when the OBR revise their projections of earnings growth and if HMT propose a change to the assumed discount rate. • Information on how the bankruptcy risk is assessed in relation to the students

loans and tuition fees.

Prior to 2004, student loan borrowers who went bankrupt were not required to repay their loans. Since 2004, student loans have been excluded from a borrower’s bankruptcy debts, so that during and upon discharge from bankruptcy the borrower remains liable to repay his student loan. The vast majority of loan cancellations due to bankruptcy prior to the regulation change were processed by the Student Loans Company (SLC) by financial year 2009-10. However, in 2011 the SLC conducted a casework review which identified some pre-2005 bankruptcy cases which required student loan cancellations to be processed. This led to a peak in write offs due to bankruptcy in financial year 2011-12 of £4.4m, which is shown in note 35.3 to the BIS Accounts.

• The Department’s analysis of the change in student numbers as a result of the changes in tuition fees.

We do not know the full impact of the Government’s HE reforms on student numbers at this stage, but we have analysed initial data on 2012/13 recruitment and are continuing to monitor the impact as further information becomes available. Estimates of 2012/13 entrant numbers by institutions will be available in December, with final numbers being confirmed in January 2014. The main source of data we have so far on recruitment of students for 2012/13 is UCAS. The latest available UCAS acceptances data is from midway through the clearing process, published on 14th September. The data showed that the number of UK and EU domiciled acceptances via UCAS to English institutions for entry in 2012/13, was 14% lower than for 2011/12 entry at a comparable point in the cycle.

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However, HEFCE analysis suggests over 10% of full-time undergraduate entrants to publicly funded institutions in England do not enter through UCAS. This proportion could be larger this year as many core and margin places have been allocated to institutions that do not recruit through UCAS.

Much of the 14% fall in English institutions can be explained by recruitment behaviour in 2011/12, which was a record year. There were fewer people deferring into the 2012/13 entry year than normal, possibly in an effort to enter HE before the introduction of higher fees. In 2011/12 deferrals only accounted for 3% of acceptances (down from over 7% in 2009/10 and 2010/11), this results in around 15,000 fewer acceptances into the 2012/13 entry year. We estimate that there will be around 25,000 fewer entrants in 2012/13 than we planned for in the Spending Review.

Once the introductory effects of increased fees are taken into account there is no evidence at this stage of a fall in demand for HE from 18-year-olds, and the application rate for 18-year-olds in 2012/13 is the second highest on record.

Disadvantaged groups – applicants who come from areas with the lowest participation in HE – have seen the smallest fall in application rate, with rates for the most advantaged groups reducing more significantly.

Looking back to the 2006 reforms, a fall in applications and entrants in 2006/07 was followed by successive increases over the next 5 years. The lasting impact of this Government’s reforms will start to become clearer as applications come in for entry in 2013/14 between now and next summer.

• Clarification on the impact on inflation of A) Pre-2010 student loans; and B) The new tuition fee regime?

• Higher education tuition fee reforms and the CPI.

The Office for Budget Responsibility (OBR) produces the official economic and fiscal forecasts twice a year. In doing so the OBR independently scrutinises the costings of Government policy and any resultant impact on forecasts of inflation.

The OBR have been aware of the higher education fee reforms and the potential impact on inflation since autumn 2010. The OBR estimated (in the November 2011 Economic and Fiscal Outlook) that the tuition fee increase would add 0.2 percentage points to inflation this quarter (Q4 2012) and a similar amount in Q4 2013 and Q4 2014. They explicitly factored this inflationary impact into their fiscal forecasts, which show the Government is on track to meet its fiscal targets. The impact continues for three years because the average undergraduate fee level will rise as new cohorts enter under the 2012 fee regime.

The actual contribution of Education to the October 2012 CPI was 0.32% points (published by the ONS on 13 November 2012). This includes the impact of changes in fee levels for part-time and postgraduate students.

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The ONS method of calculation means the impact in future years should be less than the impact in the first year (a similar pattern was seen in 2006). It’s therefore possible that the impact in 2013 and 2014 will still be around 0.2% points.

BIS has not made any estimate of the impact of this rise on public spending on benefits and pensions. But an OBR ready-reckoner from March 2012 suggests each percentage point increase in CPI can potentially equate to an extra £1.75bn of spending per year. The actual impact would also depend on any policy decision regarding benefit uprating.

However, the key driver of inflation is monetary policy – actions by the Bank of England – designed to keep it stable. As expectations of inflation can influence monetary policy it is not possible to state clearly what the inflation rate would have been without the higher education reforms. For this reason, if BIS were in the opposite situation to the current one – if the HE policy reforms were reducing fees – it would not have been credible to cite lower inflation and lower benefit costs as a justification for those reforms.

The tuition fee reforms improve the incentive structure and balance of contributions within higher education, while protecting students from disadvantaged backgrounds.

It is the September CPI (2.2%, published 16 October 2012) that is generally used for benefit uprating. The tuition fee increase may therefore not feed through to the benefit calculation until the September 2013 index reflects the 2012 fee increase. This lag further increases the likelihood that factors such as monetary policy and the 2.0% CPI target will mean the relationship between the HE reforms and wider public costs is not a direct one.

When fees were trebled in 2006 the ONS estimate those reforms contributed around 0.2% to inflation for three years.

For many students, the payment of tuition fees is deferred via loans. Some students pay some or all of their fees up front - not everyone takes out a loan. The ONS do not attempt to account for these differences in their CPI calculations. Under the ONS treatment:

o Even though fees are often met by loan repayments in the future, the fee is treated as expenditure incurred now;

o Even though around half of graduates are expected never to have to pay the full fee – due to the income contingent nature of repayments – the ONS consider the initial average fee liability that students will incur is representative of the cost of courses.

What have the OBR said in the past about this issue? In their November 2010 Economic and Fiscal Outlook, the OBR said - "The proposed reforms to higher education (HE) tuition fees in England (Box 4.3) are likely to have some effect on the rate of inflation.

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In general, it might be expected that the effects will be phased in over a few years following the introduction of the reforms as the new ‘cohort’ of students paying higher fees replace the existing cohort of students. The introduction of the reforms is likely to have some effect on the path of inflation from the end of 2012. However, we do not currently judge that the effect will be significant enough to change our medium term forecast, as we expect that the path of CPI inflation will be guided by monetary policy moving back to 2 per cent by the beginning of 2014."

A year later, in their November 2011 Economic and Fiscal Outlook, they revised that view to – “We have incorporated the effect of increases in higher education tuition fees in England in 2012 into our CPI forecast. We expect the effects on inflation to be felt over a few years as new cohorts of students paying higher fees replace existing cohorts. We judge that the average increase in tuition fees in 2012 could add around 0.2 percentage points to CPI inflation in the fourth quarter of 2012. There are a number of uncertainties around this estimate, including the average level of fees charged, changes to postgraduate and part-time course fees, and the effect of differences in regional policies. We do not judge these effects will be significant in the medium term. “

• The Department’s assessment of the impact on the Exchequer, and on existing universities, of extending VAT exemption to for profit HE bodies.

Higher Education position:

HMRC is consulting on extending the VAT exemption on supplies of education to for-profit providers of HE (consultation ends 5 December 2012). The consultation document contains a Tax Impact Assessment which sets out areas where there might be potential impacts.

But this is work in progress - the consultation is vital in determining how much of an issue differential VAT treatment is, the extent to which this would be addressed by the options set out in the consultation document and in identifying any suitable alternative solutions. HMRC has requested comments on the possible impacts alongside responses to the consultation questions.

Currently, the majority of for-profit providers cannot benefit from this exemption in the same way that not-for profit providers can. This potentially puts them at a competitive disadvantage in the market and runs counter to our vision of a more level playing field for all. The HMRC consultation gives us an opportunity to review such treatment.

The Government will consider the responses to the consultation very carefully and decide whether there is any justification for changing the VAT treatment of HE provision.

Further Education position

We are currently working with HMRC to consider the potential VAT issues for some providers associated with the introduction of 24+ Advanced Learning Loans.

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We recognise the need to confirm the position for 2013/14 as soon as possible, so that training organisations can make informed decisions about offering loan-funded provision. The current HE consultation on the treatment of VAT (which closes on 5 December) gives one potential option for VAT treatment and we have asked for feedback from the FE sector on whether they think this treatment would be appropriate in FE. We are also looking at other options with HMRC, although we have to recognise the constraints of wider tax policy both on our options and timescales.

• A detailed note on the regulatory improvements made this year. Specific explanation of the regulatory reform landscape. It would be helpful for this to include: A. Breakdown of the £800m savings cited in Q104; and B. Whether the £23.66m published in Annual Report relates solely to regulatory

changes in FY2011-12 or includes savings from regulatory changes introduced in the previous financial year?

Regulatory Reform Landscape  

The Government is committed to putting the UK on a path to sustainable economic growth. Economic stability comes from a credible deficit reduction plan is the essential starting point, but it is not in itself sufficient. For sustainable growth to be driven by private sector investment, enterprise and job creation, Government must be proactive in ensuring that policy acts in a way that supports growth rather than hampers it. Well targeted and sensibly designed regulations can help create the conditions for growth. But poorly designed, disproportionate or uncoordinated regulation gets in the way of innovation and productivity. That is why reducing unnecessary regulation and cutting red tape is one of the Government’s core priorities to deliver growth.

The Government’s strategy for reducing the burden of regulation is aimed at the flow of new regulation, the existing stock and the way regulation is enforced at the frontline. The ‘Red Tape Challenge’ is a process for scrapping and simplifying existing regulations that are obsolete, ineffective, or unnecessary and through it we have started to drastically reducing the number of regulations affecting business to a more sensible level. The ‘Micro Business Moratorium’ is a moratorium on new regulation for micro-businesses until April 2014 because they are disproportionately affected by regulation. We have also introduced the One-in, One-out rule to help achieve this objective. The main purpose of One-in, One-out is to make Government Departments consider in greater depth whether regulation is the appropriate response to an issue and to ensure that regulation is only used as a last resort. [We announced today, 19th November, the extension of this ambition to One-in, Two-out]. But any successful attempt to cut back on red tape and bureaucracy must take account of the fact that a substantial proportion of the burden emanates from Brussels.

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To tackle the issue at its roots we have to be much more active and engaged with the EU, and at a much earlier stage in the process. That means building alliances with other likeminded member states, so we speak with a louder voice and are better able to protect the interests of UK businesses. In our ‘Guiding Principles for EU Legislation’, we set out what we have agreed to ensure that this Government is doing everything possible to reduce the burden of regulation stemming from the EU. Sometimes the regulation itself is fine: it is inconsistent or inappropriate enforcement that causes problems or could just be much better. We are working through our Focus on Enforcement reviews and the Better Regulation Delivery Office to improve the issues which businesses tell us cause them problems with regulatory inspection, guidance and enforcement as well.

The £850m

Every individual measure introduced by this Government, which tally so far to the saving of £848m (Equivalent Annual Net Cost to Business) is listed in departments’ Statements of New Regulation, published twice a year. These can be accessed through http://www.bis.gov.uk/policies/bre/one-in-one-out/statement-of-new-regulation

New regulatory savings and costs to business.

Closing position as at 31 December 2012

Ins 3 Zero net cost 13

Outs 9 Ins £8.25m

Outs -£139.04m

Total Net Cost (OIOO figure) -£130.79m Links to the BIS Statement of New Regulation measures are below. These figures have been fully validated by the independent Regulatory Policy Committee. The statements set out all the regulatory measures which have made up the cumulative total. The measure that accounts for the big deregulatory "in" is Audit Exemptions which saved business approx £100 million EANCB. http://www.bis.gov.uk/policies/better-regulation-at-bis

The estimated BIS position on 31 June 2013 is -£155 million.

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New regulatory savings and costs to business.

Closing position as at 31 December 2012

Ins 3 Zero net cost 13

Outs 9 Ins £8.25m

Outs -£139.04m

Total Net Cost (OIOO figure) -£130.79m Links to the BIS Statement of New Regulation measures are below. These figures have been fully validated by the independent Regulatory Policy Committee. The statements set out all the regulatory measures which have made up the cumulative total. The measure that accounts for the big deregulatory "in" is Audit Exemptions which saved business approx £100 million EANCB. http://www.bis.gov.uk/policies/better-regulation-at-bis

The estimated BIS position on 31 June 2013 is -£155 million.

• Details on projected savings arising from the amendment of the Companies Act. • Confirmation of the removal of existing gold-plating of the fourth EU Company

Law Directive.

UK gold plating of the 4th Company Law Directive was removed by the recent SI 2012/2301 The Companies and LLPs (Accounts and Audit Exemptions and Change of Accounting Framework) Regulations 2012 which came into force on 1 October 2012.

BIS estimates that the new audit exemption measures will save businesses at least £100m and possibly as much as £390m per year. Once validated by the Regulatory Policy Committee, final figures will be provided in the next Statement of New Regulation.

• What is the current position regarding pubs and the voluntary code of practice?

The Sofs wrote to the Chair of the Committee Monday 5th November, the text of which is outlined below. We have provided (seperately) a PDF version of the Letter with this return.

“…You asked me to estimate how effective the package of self-regulated industry measures announced in November 2011 had been. As you know, the self-regulatory package included making the existing version of the Industry Framework Code legally binding, developing a strengthened Industry Framework Code, individually accredited codes of conduct for each pub company to be renewed every three years, and the establishment of independent advisory and adjudication services for tenants.

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Like you, I am keen to ensure that the reforms are in place and operating. I have received representations from MPs arguing that there has been little progress on the self regulatory measures and asking me to look at the matter. I intend to write to the industry to ask them to report on their progress in implementing theses reforms, and will share this with the Committee.”

• Departmental Redundancies.

The 2011 voluntary redundancy scheme will generate equivalent cost savings of £13.2m in each future year.

This year’s redundancy programme was a separate exercise from the previous year. The core Department has completed 2 voluntary departure schemes in recent years, a voluntary exit scheme in 2010 which was reported in the 2010/11 annual report and a voluntary redundancy scheme in 2011 which was reported in the 2011/12 annual report. The Permanent Secretary appeared before the Committee last year in relation the 2010/11 annual report, which correctly only included figures for the 2010 voluntary exit scheme that was completed in that financial year (2010/11). However in his oral evidence last year the Permanent Secretary also referred to the 2011 voluntary redundancy scheme, as that scheme had already been completed when he appeared before the committee and was relevant to the discussion about the core department's current state and restructuring. The actual figures in relation to the 2011 voluntary redundancy scheme were then reported in the 2011/12 annual report, as that is the financial year in which they fell.

Note the figures quoted for voluntary departures n the Committee's question above are those for the whole BIS family. The comparable figures for core BIS only shown in the annual report are 237 in 2011/12 and 329 in 2010/11 [page 129].

In the current year (2012-13), while we do not anticipate having to make further large scale redundancies across the core Department as a whole, there will be some further voluntary departures in specific areas: i.e. UKTI and the corporate services function. UKTI has a ring-fenced element of the BIS Admin settlement and so were not covered by the 2011 restructure in core BIS: it is now in the process of running its own, separate voluntary scheme for around 80 staff. In corporate services, there is a voluntary scheme for up to around 50 staff as part of our programme to rationalise these functions across the core Department.

Skills Funding Agency: Intangible Assets.

The value is the Net Book Value of IT systems on the Agency’s asset register as at 31 March 2012. It includes some systems that are currently under development so not yet in use and some systems that are fully developed and in use. The investment on systems under development was mostly undertaken in 2011-12 while for the systems in use this was over a series of years.

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Systems are developed over time and often continue to be invested in after coming into use; some elements may be enhanced and others disposed of. In other words, there is often a flow of investment over time to ensure individual system assets and the overall portfolio remains fit for purpose, rather than a single investment at a point in time. System development and investment arise from the implementation of BIS policy.

The table below shows when the £68m of intangible asset value was purchased. Further detail can be provided if required.

Skills Funding Agency 2011-12 Intangible Asset investment value by year

Year IT Systems Under

Construction IT Systems in use Total £’millions £’millions £’millions

2006-07 0 0.2 0.2 2007-08 0 0.9 0.9 2008-09 0 8.2 8.2 2009-10 0 12 12 2010-11 0.2 19.7 19.9 2011-12 18.2 8.2 26.4

18.4 49.2 67.6

NB: The Agency charges the cost of IT systems over a maximum period of 5 years (depreciating them on a straight line basis) from the date of capitalisation (which is when the asset comes into use).

The £68m value comprises a number of systems that are used by the Agency and more widely across the Further Education and Skills sector. The most significant elements of the Agency’s systems within this value are:

National Careers Service (£16m) This is still under development but is the key external interface providing information on and links to the National Careers Service. The website provides high quality information and advice on careers, funding and training courses to the sector together with other tools and applications.

Single Account Management System (£12m) This system provides information on a range of programmes to providers and includes the Agency’s system for managing contracts with providers. It is a key interface and is essential to ensuring the Agency maintains proper stewardship of funding and payments.

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National Apprenticeship Vacancy Matching System (£9m) This system provides information on Apprenticeship Vacancies to prospective candidates so is a key interface between them and potential employers.

FE Choices (£4m) This is an external interface for providing comparative performance information on FE colleges and other organisations that receive funding to educate and train people aged 16 or over.

Learner Passport (£4m) This will enable individuals to access their learning records securely online and will facilitate data sharing across the sector.

There are a range of other externally and internally facing systems that support the delivery of the Agency’s objectives. Further information is available if required.

How have you ensured value for money on such a sizable investment? All expenditure on IM Services projects and assets goes through an Agency governance board before being approved. For business as usual projects where the focus is on upgrading current systems, this is the BAU Star Chamber. For development projects where the focus is on developing new systems to meet policy driven initiatives, this is the Business Information Management Investment Board.

These boards meet at least bi-monthly and include representatives from business areas across the Agency. This ensures that all investments are consistent with strategic and operational business decisions. As part of the approval process, each material investment is required to produce a detailed business case including a finance section demonstrating value for money from the investment over the long term.

Additionally, under the current Cabinet Office’s spending controls all ICT investments with lifetime costs in excess of £1M require approval from Cabinet Office and requests for approval require a business case to be submitted. BIS requires all ICT investments with lifetime costs in excess of £200K to be submitted to BIS for approval (with those in excess of £1M then being submitted by BIS to Cabinet Office).

• Green Investment Bank. How will the chairman of the GIB be appointed? Will the appointment be subject to a pre-appointment hearing by the Committee?

Lord Smith of Kelvin was announced as the Chair of UK Green Investment Bank plc on 25 May 2012. Currently Chair of SSE and the Weir Group, he has a strong financial services background, chairing the group set up by the Financial Reporting Council in 2003 to clarify the role of audit committees. He was appointed following an open competition conducted in line with the Code of Practice on Ministerial Appointments to Public Bodies, published by the Commissioner for Public Appointments (“the OCPA process”). There was no pre-appointment hearing by the Committee as the post is a commercial, rather than a regulatory or statutory, role.

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Plan for Growth: Implementation Update (March 2012)

The Government has set out its plan to put the UK on a path to sustainable, long term economic growth. As part of this, the Plan for Growth published in March 2011, and Autumn Statement 2011 and the National Infrastructure Plan published in November 2011, announced a wide-ranging programme of economic reforms and investment in infrastructure to help build a stronger and more balanced economy in the medium term, and to achieve the Government’s four ambitions for growth: • Encouraging investment and exports as a route to a more balanced economy;

• Making the UK the best place in Europe to start, finance and grow a business;

• Creating a more educated workforce that is the most flexible in Europe; and

• Creating the most competitive tax system in the G20.

This document provides an update on the implementation of the measures to support economic growth announced in the Plan for Growth and Autumn Statement 2011, and developed through the Government’s Growth Review led jointly by HM Treasury and the Department for Business, Innovation and Skills. It builds on the previous update published on 29 November 2011.1 Tax measures are contained in the Budget document, and infrastructure measures announced in the National Infrastructure Plan and Autumn Statement 2011 are updated in a separate Infrastructure Delivery Update.2

1 See www.hm-treasury.gov.uk/ukecon_growth_index.htm 2 See www.hm-treasury.gov.uk/national_infrastructure_plan2011.htm

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Contents Reporting themes Announced Page

Cross-cutting themes

1. Access to finance Plan for Growth 3 2. Competition Plan for Growth 4 3. Corporate governance Plan for Growth 5 4. Education and skills Autumn Statement 2011 6 5. Infrastructure Autumn Statement 2011 and

National Infrastructure Plan 9

6. Low carbon Plan for Growth 11 7. Planning Plan for Growth and

Autumn Statement 2011 12

8. Public sector procurement Autumn Statement 2011 16 9. Publication of government data Autumn Statement 2011 18 10. Reducing regulatory burdens Plan for Growth and

Autumn Statement 2011 21

11. Trade and investment Plan for Growth 27

Sectoral themes

12. Advanced manufacturing Plan for Growth 30 13. Construction Plan for Growth 32 14. Digital and creative industries Plan for Growth 34 15. Health and life sciences Plan for Growth 37 16. Logistics Autumn Statement 2011 40 17. Mid-sized businesses Autumn Statement 2011 42 18. Professional and business services Plan for Growth 44 19. Retail Plan for Growth 47 20. Rural economy Autumn Statement 2011 49 21. Space sector Plan for Growth 51 22. Tourism Plan for Growth 52

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1. Access to finance

The Plan for Growth announced measures to help small businesses raise finance. These measures are in addition to the Government’s £20 billion National Loan Guarantee Scheme and £1 billion Business Finance Partnership, further details of which are set out in Budget 2012. Measure Progress Notes 1. To encourage greater investment in SMEs with high

growth potential, the Government announces significant reform to Enterprise Investment Scheme (EIS) and Venture Capital Trusts, subject to State Aid Approval.

Progress made State aid approval has been granted for changes to the EIS including a rate change to 30 per cent from April 2011 and a doubling of investor limits from April 2012. Work is ongoing to secure approval for the remaining reforms to EIS and Venture Capital Trusts. Final legislation will be published in the Finance Bill. The Seed Enterprise Investment Scheme will be launched in April 2012.

2. The Government will increase to £10 million the lifetime limit on capital gains qualifying for entrepreneurs relief.

Complete The increase came into effect in April 2011.

3. The Government will re-notify Community Investment Tax Relief to the EU Commission.

Progress made The outcome of an informal consultation to improve the operation of Community Investment Tax Relief was announced in Budget 2012, ahead of re-notifying the Commission.

4. The Government announces the interim launch of the Big Society Capital.

Complete The Big Society Capital Group was launched in July 2011.

5. The Government announces reforms to the delivery of European Regional Development Funds (ERDF).

Progress made The Government has aligned the ERDF and Regional Growth Fund Round 2, and all English ERDF programmes met their 2011 spend targets with a healthy pipeline of projects currently under approval.

6. The Government announces a review of the UK’s regulatory framework of covered bonds.

Complete The review was conducted in early 2011 and final proposals published alongside the Autumn Statement 2011. The reforms, which increase the visibility of regulation, make it easier to understand the strengths of the UK regime, and facilitate comparability between the UK and other regimes, will come into effect from January 2013.

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2. Competition

Thriving, competitive markets promote growth by creating strong incentives for firms to increase their efficiency and to innovate. The UK has a well respected and stable competition regime, and the Plan for Growth announced measures to further improve competition in the UK. Measure Progress Notes 7.

The Government wants to reform and further invigorate the UK’s competition framework. It will establish the Competition and Markets Authority and fold in the Competition Commission and Office of Fair Trading.

Progress made The Government’s response to an extensive consultation was published on 15 March. Legislative proposals are now being finalised.

8. To help create a level playing field for businesses bidding for public tenders, Government will promote greater transparency in Transfer of Undertaking (Protection of Employment) (TUPE) related liabilities.

Progress made See measure 99.

9. The Government is publishing Shaping Competitive Markets in April 2011 to support procurement choices that encourage competition.

Complete The reforms announced at Autumn Statement 2011 (see public sector procurement section, below) supersedes this measure. Training in the Government's lean procurement techniques is being rolled out to procurers.

10. The Government is stripping back regulation and increasing transparency to make it easier for small businesses and voluntary organisations to compete for local government contracts.

Complete The Government published new statutory guidance on Best Value Duty, and a Transparency code for Council behaviour in September 2011. Together with reforms such as Community Right to Challenge, these reduce the barriers that often prevent voluntary organisations and small and medium sized enterprises competing for local authority contracts.

11. The Government will publish in April 2011 a binding set of principles of economic regulation to provide greater certainty for long-term investors in UK infrastructure.

Complete The Government published the Principles for Economic Regulation in April 2011. Application of the principles will be set out publicly by the Government as regulatory frameworks are reviewed.

12. The Government will set out in April 2011 its vision for consumer empowerment to explain how it will help to support consumers in making better choices.

Complete The Government's consumer empowerment strategy was published in 2011.

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3. Corporate governance

The Plan for Growth announced measures to reduce the burdens and costs of financial reporting and audit requirements on businesses. Measure Progress Notes 13. The Government will reduce the number of UK SMEs

and subsidiaries required to undertake an audit. Progress made The Government published a summary of responses in March

2012 on changing audit exemptions to remove gold plating by changing the exemptions for small companies and qualifying subsidiaries.

14. The Government will change the law in 2012 to exempt many subsidiaries from producing audited accounts; and push the EU to exempt the smallest companies from reporting requirements.

Progress made The European Council is currently considering a new draft accounting Directive. The UK is making representations on increasing the audit threshold so as to exempt medium sized companies. For the smallest companies the Directive is due to be adopted by the Council of Ministers shortly.

15. The Government is calling on the Office of Fair Trading to investigate whether clauses in lending agreements made by the banks are unfairly restricting competition in the audit market.

Complete In October 2011, the Office of Fair Trading announced that it would refer the market for the supply of Statutory Audit services for large companies to the Competition Commission. Preliminary findings will be published in November 2012.

16. The Government will materially simplify narrative reporting for quoted companies.

Progress made The Government will publish a response to its consultation shortly.

17. The Government will modernise the legislative framework governing mutuals.

Complete The Legislative Reform (Industrial and Provident Societies and Credit Unions) Order 2011 came into effect in January 2012. This now allows credit unions to function more efficiently and compete more effectively with other financial service providers.

18. The Government will improve the guidance on businesslink.gov.uk to support business and social enterprise start-ups.

Complete Guidance has been published to help those starting up businesses, including social enterprises, to decide which legal structure and ownership model is most appropriate.

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4. Education and skills

Autumn Statement last year set out measures to make the education and skills system more responsive to employer needs. Measure Progress Notes 19. The Government will improve the quality of the

apprenticeship programme. Progress made An employer-led review into the quality and standards of

apprenticeships is due to launch shortly. From September 2012, funding for all Apprenticeships requires providers to support training in English and maths up to A*-C GCSE standard. The bidding exercise for the second round of the Higher Apprenticeships fund closes in late March 2012. Incentive payments of £1,500 for SMEs that hire a new apprentice aged 16 to 24 were launched in February 2012.

20. The Government will ensure that every employer is able to advertise a vacancy within one month of deciding to take on an apprentice, and have them ready to start work within three months, provided that employers play an active role. The Government will remove all unnecessary health and safety requirements for apprenticeships.

Progress made All unnecessary health and safety requirements for apprenticeship training providers have been removed. The National Apprenticeship Service is working with the Skills Funding Agency to agree changes to provider contracts that will be signed by the summer. A review is underway to identify further ways to improve the process of recruiting and employing an apprentice for SMEs.

21. The Government has welcomed a proposal from Ofqual, the independent regulator of qualifications, to work with the Office of Fair Trading and other bodies to review how well qualifications markets are operating.

Progress made Ofqual is developing proposals to assess the qualification markets and where as a consequence the Government may need to intervene to secure robust, fit for purpose qualifications.

22. The Government will route public investment in skills directly to employers to allow them to purchase the vocational training they need through a new pilot fund of up to £250 million. In early 2012, employers will be invited to bid for a share of the fund.

Progress made A Prospectus was launched in February 2012. Bidding for the first round of the pilot fund will formally close at the end of April, and the winners will be announced in summer 2012.

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Measure Progress Notes 23. The Government will publish destination information

at ages 16 and 18 from spring 2013 to encourage schools’ focus on young people’s future beyond school as well as attainment.

Progress made The Government will publish two destination measures: one at Key Stage 4 showing the destination of the young person the year after leaving compulsory education, to be published as experimental statistics in May 2012; and a 16-18 measure showing the destination after leaving by post-16 providers, to be published in 2013.

24. The Government will invest £4.5 million over the next two years to support work experience as part of post-16 learning; work with the Federation of Small Businesses and other employer groups to review regulation impacting on work experience by the end of December 2011; and publish a guide to address common misconceptions about work experience.

Progress made 25 participating colleges in areas with the highest concentration of young people not in education, employment or training (NEET) received additional Government funding to begin work experience trials in February 2012. Approximately 4,000 students will benefit. The Government also published a short myth-busting guide on work experience in December 2011, and is working with employer groups.

25. A group of Science, Technology, Engineering and Mathematics (STEM)-focused sector skills councils will lead an industry group to kite-mark courses, helping students understand better which courses are valued by employers.

Progress made The measure will affect STEM courses in the 2013 Key Information Sets. However students will be able to access initial information on employer endorsement as part of the 2012 Key Information Sets, to be published in September 2012.

26. The Government will create an improved careers information portal as part of the National Careers Service from April 2012. As part of the Youth Contract, an additional £4.2 million over three years will be provided so that the service can provide careers interviews for 18–24 year olds within the first three months of being on Jobseeker’s Allowance.

Progress made The Government will launch the new National Careers Service in April 2012. Measures to launch the Youth Contract careers interviews from April 2012 are on track.

27. The Government will launch ‘HE Global’, an online portal providing information and advice to higher education institutions on expanding abroad.

Complete The Government launched HE Global in January 2012.

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Measure Progress Notes 28. The Government will invest £10 million over five years

from 2013-14 in Project Enthuse, matched by investment from the Wellcome Trust, to improve the quality of science teaching in schools.

Work started Work on Project Enthuse is ongoing, with the Government and the Wellcome Trust on track to have the new funding structure in place from April 2013.

29. The Government will offer undergraduates access to mentoring support drawn from the existing network of STEM Ambassadors to give undergraduates insight into STEM occupations and raise the profile of the STEM sector.

Progress made Piloting will start in September 2012.

30. The Government will reform adult basic literacy and numeracy provision by piloting a new funding method for the providers of courses.

Progress made Piloting will take place with providers from September 2012 on how skills gain in english and maths (distance travelled) can be assessed and measured as a basis for funding.

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5. Infrastructure

High quality infrastructure is essential if the UK is to remain competitive. To make the UK’s infrastructure fit for the 21st century, Autumn Statement 2011 announced a significant package of measures to facilitate investment in the UK’s infrastructure. Measure Progress Notes 31. 40 key infrastructure projects which will be prioritised

by Government. Progress made See separate Infrastructure Delivery update3.

32. The Government will publish a consultation on an aviation strategy in March 2012, which will explore all the options for maintaining the UK’s aviation hub status with the exception of a third runway at Heathrow.

Progress made The Aviation Policy Framework will be published in the spring and will set out the Government’s strategy to ensure aviation contributes to economic growth within environmental constraints – particularly noise and carbon. The Government will also publish a call for evidence on maintaining the UK's aviation hub status.

33. The Government will pilot reviews during the design and engineering phase to consider what opportunities for interdependencies may exist in major infrastructure projects.

Progress made The Government is working with major infrastructure project teams to pilot reviews in the following projects: High Speed 2, the A14 upgrade, Lower Thames Crossing and Northern Line Battersea extension.

34. The Government will clear planning cases in the infrastructure planning backlog within 3 months once they are ready for a decision.

Progress made Since November 2011, development consent decisions have been made for the Pollington Generating Station (53 megawatts) and Royal Portbury Dock (150 megawatts) biomass plants, in line with this commitment.

35. The Government will invest £25 million to help bus companies and local authorities in England buy new low carbon buses.

Progress made Available funding has been increased to £31 million. Bids have been received and funding will be made available to the winning bus operators and local authorities by the end of this month.

36. £10 million will be made available to fit pollution reduction technology to London buses. £5 million will be provided by Government and £5 million from Transport for London.

Progress made The first retro-fitted buses are expected to be in service by the end of this summer, with up to 1,000 buses retrofitted by March 2014.

3 See hm-treasury.gov.uk/national_infrastructure_plan2011.htm

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Measure Progress Notes 37. The Government is making enhancing alternative

dispute resolution mechanisms an additional priority in pushing the EU for a digital single market, in order to overcome barriers to e-commerce and the electronic distribution of goods to Europe.

Progress made The European Commission has proposed an online platform to direct consumers to alternative dispute resolution schemes to resolve consumer disputes about online purchases in another EU country. The European Parliament and the EU Council have committed to adopting the package by the end of 2012 as a priority action in the Single Market Act. The Government is working to ensure that the final package realises the potential digital single market benefits.

38. The Government will write-down £150 million of debt on the Humber Bridge, allowing tolls to fall from £3.00 to £1.50 for cars.

Complete The Government will write down £150 million of the Humber Bridge debt on 31 March 2012, and the Humber Bridge Board will reduce the toll for cars from £3 to £1.50 on 1 April 2012.

39. The Government will invest £5 million to set up a nationwide taskforce to target metal thieves and scrap metal dealers who illegally trade in stolen metal.

Progress made A taskforce has been established and will regularly report on raids. The Government announced its intention to introduce cashless payments and higher fines in January.

40. The Devolved Administrations will receive Barnett consequentials to invest in their key infrastructure priorities.

Complete The Devolved Administrations have received significant capital Barnett consequentials since the Spending Review to help support infrastructure investment: Scotland has received £487 million; Wales £248 million; and Northern Ireland £152 million.

41. £50 million will be made available to replace the Caledonian Sleeper Service.

Complete A programme of joint funding to refurbish the Caledonian Sleeper Service has been agreed with the Scottish Government and an additional £50 million has been drawn down by the Scottish Government in 2011-12.

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6. Low carbon

Efficiency savings from using raw materials, energy and water more efficiently could save UK firms an estimated £23 billion a year. The Plan for Growth announced measures to support this work and reduce the burdens facing businesses. Measure Progress Notes 42. To encourage investment in low-carbon power, the

Government will introduce a carbon price floor for electricity generation from 1 April 2013.

Complete Enacted in the Finance Act 2011. The Finance Bill 2012 will enable relief to be applied to carbon capture and storage and combined heat and power technologies. HM Revenue & Customs will administer the scheme.

43. The Government will scrap the unnecessary plans for a new Carbon Capture and Storage levy.

Complete The Carbon Capture and Storage levy has been scrapped, and average business electricity bills will be an estimated two per cent lower from 2015 and three per cent lower in 2020 than they would otherwise have been.

44. The Government will cap the cost of policies funded through energy bills.

Complete A new levy-control framework, published in April 2011, will maintain tax and spending within agreed limits.

45. The Government will support the infrastructure development needed to enable the transition to a green economy through the Green Investment Bank.

Progress made The Green Investment Bank was established as a private company in February 2012 and in March the Government announced its headquarters would be in Edinburgh, together with a major transaction team in London. In April the Government will make its first set of green investments under the programme, partnering with managers to finance waste infrastructure projects.

46. The Government is promoting development of new markets in green goods and services.

Progress made A consultation on the Green Deal framework closed in January 2012. Engagement on quality standards, training qualifications and potential impact continues, ahead of an expected launch in late 2012. The Government published proposals for Feed-in Tariffs in February 2012, opened the Renewable Heat Incentive scheme for non-domestic users in December 2011 and expects to publish the framework for smart meter suppliers shortly.

12

7. Planning

The Plan for Growth and Autumn Statement 2011 announced measures to ensure the planning system supports growth. Measure Progress Notes 47. The Secretary of State for Communities and Local

Government will make a Written Ministerial Statement in March 2011, setting clear expectations that local planning authorities and other bodies involved in granting development consents should prioritise growth and jobs.

Complete A Written Ministerial Statement was published in March 2011.

48. The Government will introduce a powerful new presumption in favour of sustainable development, so that the default answer to development is ‘yes.’

Complete A strong presumption in favour of sustainable development will be introduced through the National Planning Policy Framework, to be published this month, and coming into force for plan-making and decisions from that point onwards, with appropriate implementation arrangements for local authorities with pro-growth policies in local plans. There will be support to help local authorities get plans up to date quickly.

49. The Government wants more development in suitable and viable locations and will produce a shorter, more focused and inherently pro-growth National Planning Policy Framework to deliver this.

Complete The NPPF will be published in March and will come into force for plan-making and decisions from that point onwards, with appropriate implementation arrangements for local authorities with pro-growth policies in local plans. There will be support to help local authorities get plans quickly.

50. The Government will enable businesses to bring forward neighbourhood plans and neighbourhood development orders.

Progress made The Localism Act gives local authorities powers to designate business areas for neighbourhood planning, and these will come into force from April 2012. Nine front-runner neighbourhood planning projects are business led, and will establish good practice for future schemes.

13

Measure Progress Notes 51. The Government will pilot a land auctions model,

starting with public sector land. Progress made The Government is taking forward land auction pilots on

public sector land with the aim of having two sites ready for market by the end of the year. The land auctions model seeks to capture a greater share of the uplift in land values created by the granting of planning permission.

52. The Government will localise choice about the use of previously developed land, removing nationally imposed targets.

Progress made The National Planning Policy Framework will confirm this policy (see measure 48).

53. The Government will consult on proposals to make it easier to convert commercial premises to residential.

Complete See measure 48. The Government consulted on proposals to relax planning rules in relation to change of use between commercial premises to residential in April 2011.

54. The Government will introduce a number of measures to streamline the planning applications and related consents regimes removing bureaucracy from the system and speeding it up. This will include a 12 month guarantee for the processing of all planning applications, including any appeals.

Progress made The Government will shortly consult on measures including reducing information requirements, proposals to amend the Use Class Order and associated permitted development rights, and introducing new permitted development rights for micro-renewable.

55. The Government will ensure a fast-track planning process for major infrastructure applications through the Major Infrastructure Planning system.

Complete The Localism Act abolishes the Infrastructure Planning Commission and returns decisions over major infrastructure projects to Ministers.

56. The Government is legislating to introduce a duty on local authorities and public bodies to require them to co-operate on planning issues.

Progress made The Localism Act has introduced a duty on local authorities and public bodies to require them to co-operate on planning issues. Regulations will be introduced in spring 2012.

14

Measure Progress Notes 57. The Government will ensure the key consenting and

advisory agencies have a remit to promote sustainable development as soon as the National Planning Policy Framework is finalised. The Government will also introduce a 13-week maximum timescale for the majority of non-planning consents, to speed up the consenting process and give certainty to developers. This will take immediate effect for Government agencies.

Progress made Government Departments and agencies have put in place processes to monitor performance. Initial monitoring suggests 13-week timescales are being met in most categories of consent. The change of remit will follow shortly.

58. The Government will ensure that there is a more effective mechanism for applicants to obtain an award of costs, if there is an appeal against refusal of planning permission where a statutory consultee has acted unreasonably, through measures to be implemented in summer 2012. The Government will also improve the performance of the key statutory consultees in responding swiftly to applications. This will include key statutory bodies bringing forward an improvement by spring 2012.

Progress made The Government will consult by the end of May 2012 on proposals to amend the award of costs policy. The key statutory bodies are publishing improvement plans in draft alongside the Budget, to be finalised after publication of the new National Planning Policy Framework.

59. The Government will build more flexibility into the major infrastructure planning regime, particularly in working with developers in the pre-application phase. These improvements will be implemented by summer 2012.

Progress made The Government will publish draft revised guidance intended to make the major infrastructure planning regime clearer and easier to use by the end of April 2011. This will cover pre-application engagement, associated development and examination procedures.

15

Measure Progress Notes 60. The Government will ensure that compliance with the

Habitats and Wild Birds Directives does not lead to unnecessary costs and delays to development, while continuing to support the Directives’ objectives.

Progress made The Government will reduce the cost, complexity and delay to businesses that the Habitats Directive can impose by preparing streamlined guidance, setting clearer standards for evidence and improving the customer focus of the statutory bodies. The Government will also establish a Major Infrastructure and Environment Unit to engage at an early stage with nationally significant infrastructure projects to minimise potential Habitats issues. The Government will publish its review of implementation of the Directives later this month.

61. The Government will review planning appeals procedures, seeking to make the process faster and more transparent, improve consistency and increase certainty of decision timescales. Proposals will be brought forward for implementation in summer 2012.

Progress made The Government will publish a consultation on proposals for an improved planning appeals process by June 2012.

62. The Government will consult on a proposal to allow the reconsideration of those planning obligations agreed prior to April 2010 where development is stalled.

Progress made The Government will publish proposals for consultation by April 2012, alongside other proposals on how change of use is managed in the planning system.

63. The Government will consult on proposals to allow existing agricultural buildings to be used for other business purposes such as offices and retail space, to make it easier for rural businesses to find the premises they need to expand.

Progress made Government will consult on these measures shortly, alongside wider planning simplification measures.

64. The Government will introduce new permitted development rights for non-domestic micro-generation of electricity. This will incentivise the take up of small scale renewable and low carbon energy technologies.

Progress made New regulations introducing these permitted development rights will come into force in April 2012.

16

8. Public sector procurement

The Autumn Statement 2011 announced measures to improving visibility and certainty of public sector purchases, to allow businesses to plan their investments in plant, machinery and people, and to deliver better value for taxpayers’ money. Measure Progress Notes 65. Building on the publication of forward procurement

plans for construction, wider infrastructure, information and communications technology and facilities management, the Government will publish medium-term plans setting out its procurement needs for other sectors by April 2012 to give suppliers the confidence to invest for the future and compete on a level playing field.

Progress made On track to publish in April 2012. Procurement pipelines to March 2015 for the infrastructure and construction sectors will also be updated.

66. The Government will make better use of pre-procurement dialogue with suppliers to ensure procurement processes are well designed and quickly carried out, as well as identifying capability gaps in the supply chain that need to be addressed to meet future demand and taking action to remove barriers to growth.

Progress made On track to publish supply chain assessments for certain sectors in spring 2012.

67. The Government will introduce a presumption against the use of the competitive dialogue procurement process unless it can be demonstrated that it delivers value for money.

Complete The presumption was announced in November 2011, and is being applied to new Government procurement processes.

68. The Government will complete all but the very biggest and most complex procurement processes within 120 working days through introducing the lean sourcing process from January 2012, and training public sector procurers in application of this new approach.

Complete This has been made effective for central Government procurement since January 2012. To support and inform public sector procurement professionals, the Government also published a lean sourcing manual and delivered familiarisation sessions to over 600 public sector procurement staff.

17

Measure Progress Notes 69. Terry Hill (Chair of the Arup Board of Trustees) will

lead an industry standards group in the infrastructure sector to examine the simplification of procurement specifications and the removal of unnecessary technical standards, to report back to the Government on initial progress by spring 2012.

Progress made The report on the transport sector will be published in June 2012 together with recommendations for wider roll-out into other infrastructure sectors.

70. The Government will ensure that the bundling of contract and subcontract packages in procurement offers enhanced opportunities for SMEs.

Progress made Detailed measures were announced earlier this month, including new tools to increase visibility of Government needs, improve communication between buyers and SME suppliers and a commitment to disaggregate large IT contracts. In addition, nine major companies will, where appropriate, publish their subcontracting opportunities on Contracts Finder.

71. The Government will extend the use of Project Bank Accounts (currently being piloted on construction projects) as a means of ensuring both certainty and speed of payment to SMEs.

Progress made

On track for the pilot to be extended to cover facilities management and defence. In addition, Government will also explore the role for supply chain credit support to enable faster payments within supply chains.

72. To reduce burdens on business, the Government will negotiate in the EU for a radical simplification of the Public Procurement Directives.

Progress made The European Commission’s proposals for the Public Procurement Directives, published in December 2011, incorporated simplifications suggested by the UK Government, including greater freedom to use the competitive negotiated procedure, shortened minimum timescales and more flexible supplier selection. Negotiations will continue throughout 2012.

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9. Publication of government data

Improving access to public data has the potential to boost growth by building data and analytics markets, expanding existing market opportunities, and attracting inward investment. Measures were announced in Autumn Statement 2011. Measure Progress Notes 73. The Government will provide a service to link primary

and secondary healthcare datasets from September 2012 to reinforce the UK’s position as a global centre for research and analytics and boost UK life sciences.

Progress made The Clinical Practice Research Datalink is on track for launch in April 2012 and delivery in September 2012.

74. The Government will publish further prescribing data by September 2012 and additional health and social care datasets by September 2013 to support health and social care data-based product and analytics markets.

Progress made See measure 166.

75. The Government will work with the transport industry to make available by April 2012 timetable and real-time train and bus information to support the development of innovative applications to improve passenger journeys.

Progress made Network Rail and Traveline are on target to deliver their commitments by the end of April, releasing timetable and real time train and bus data under the Open Government License.

76. The Government will consult in early 2012, through the Fares and Ticketing Review, on providing open access to rail fares data, giving passengers and business better information and enabling them to make the most cost-effective travel choices.

Progress made The consultation will close in June 2012, and includes the release of fares data and existing anomalies in the fares system.

77. The Government plans to legislate to give the Civil Aviation Authority the power to publish data on the performance of aviation service providers.

Progress made The Civil Aviation Bill proposes to widen the Civil Aviation Authority’s powers to request and publish information of benefit to users of air transport services. The Bill is expected to receive Royal Assent by the end of 2012.

19

Measure Progress Notes 78. The Government will release from March 2012 a

range of highways and traffic data, including on road works, to help reduce congestion and enable business to make more predictable travel and logistics decisions.

Progress made The Roadworks website has opened up access to highways and traffic data on Open Government Licence terms. The provision of this data now covers around 65 per cent of local authorities across England. The Government is working with the remaining local authorities to complete coverage and include other road performance data.

79. The Government will consult on the content of anonymised fit note data to be published from 2012 to drive innovation in the occupational health sector and improve management of sickness absence.

Progress made On track. The Government expects the first supplier of electronic fit notes to start in May 2012 with other suppliers following.

80. The Government will design the Universal Credit system so that aggregate benefits data can be published during the first year of live running of the system.

Progress made Delivery of the system is on track to support the welfare reform timetable, following the successful passage of the Welfare Reform Act in March 2012.

81. The Government will consider opportunities for linking welfare datasets to other government and commercial datasets to increase their value to industry.

Progress made A new Welfare Sector Transparency Sector Board will meet for the first time this month. The Government is developing plans to roll out new software to the private sector and looking at methods to link data securely.

82. The Government will provide up to £10 million over five years, with match-funding from industry and academia, to establish the world’s first Open Data Institute to help business exploit the opportunities created by release of public data.

Progress made The Open Data Institute (co-directors Tim Berners-Lee and Nigel Shadbolt, with support from the Technology Strategy Board and the Government) will publish a business plan in April 2012 and will open in September 2012.

20

Measure Progress Notes 83. The Government will establish a Data Strategy Board

and a Public Data Group that will maximise the value of the data from the Met Office, Ordnance Autumn Statement Survey, the Land Registry and Companies House.

Progress made The Data Strategy Board and Public Data Group will be established and functioning by summer 2012. The Terms of Reference have been published. Recruitment for members of the respective boards and the newly-formed Open Data User Group is now underway. Data sets to be released shortly include Land Registry monthly price paid data (March 2012); Companies House core information of companies on the register (July 2012); and Ordnance Survey national trails dataset (2013).

84. The Government will ensure all NHS patients can access their personal GP records online by the end of this Parliament. The Government will publish a new procurement arrangement for school information and learning services in spring 2012 to improve parents’ and pupils’ access to education data and increase competition in provision of learning services.

Progress made The Government has asked the Royal College of General Practitioners, working with patient groups and other professional organisations, to lead development of a plan, policy and procedures for access to patient records. The Information Strategy will be published in spring 2012. The Government is on target to deliver its Framework Agreement for school Management Information System suppliers by the end of this month.

21

10. Reducing regulatory burdens

The Plan for Growth and Autumn Statement 2011 announced measures to reduce the burden of regulation facing businesses, and to make it as easy as possible for people to find work by reducing the burden of complying with employment law. Since January 2011, the Government has achieved a cumulative net reduction of regulation worth £3.3 billion to business, with 19 deregulatory measures taking effect in the first half of 2012. This is in addition to further measures announced in Budget 2012. Measure Progress Notes 85. The Government will introduce a moratorium

exempting micro and start-up businesses from new domestic regulation for three years from April 2011.

Complete The moratorium was introduced in April 2011 and is reducing the flow of new domestic regulations on micros and start-ups. Some of the impacts of this measure include phasing in of pensions auto-enrolment so that small businesses will not need to comply until before the next Parliament; smaller tobacco retailers have been exempted from the display ban on tobacco until April 2015; and Modern Workplaces proposals will reflect the moratorium and implementation is not expected prior to April 2014.

86. The Government will scrap proposals for specific regulations that would have cost businesses over £350 million a year to implement.

Complete The Government will not extend the right to request time to train to businesses with fewer than 250 employees, saving businesses an estimated £350 million a year.

87. The Government will launch an extensive public thematic review to reduce the existing stock of regulation.

Progress made Since its launch in April 2011, around 1,500 regulations have been examined through the Red Tape Challenge, over half of which will be scrapped or improved. The Third Statement of New Regulation details 123 Red Tape Challenge measures due to be implemented before the end of June 2012, including 99 repeals and 24 improvements. A further 11 themes are currently going through the Red Tape Challenge.

88. The Government will make further changes to employment legislation to reduce the costs to businesses of compliance.

Progress made The Government will report to Parliament in spring 2012 on the progress on this work, and will consult on any changes to improve government enforcement of workplace rights.

22

Measure Progress Notes 89. The Government will implement proposals from Lord

Young’s Review of health and safety. Progress made The Government is proposing an accelerated timetable for

completion of these recommendations which will scrap or improve 84 per cent of health and safety regulation.

90. The Government plans to move registration of the main business taxes online.

Progress made ‘One Click’ will drive down the time a business needs to spend on tax and regulation. In November 2011, the Government launched ‘My New Business’, a new service for pre-start up businesses. From April 2012, those starting or growing a business will be able to register for the main business taxes through a new Online Tax Registration Service and will be able to access their own tax details.

91. The Government will launch a major focus on revising burdensome EU regulations and directives.

Progress made The Government continues to engage with the European Commission review ('fitness check') of the Information and Consultation Directives, and continues to highlight the need for robust evidence before any decisions are taken on whether amendments are necessary.

92. The Government will work with GSK, Balfour Beatty, Kingfisher and Tribeka to improve European growth opportunities for UK businesses.

Complete A report was published in November 2011, and recommended 16 specific cases, highlighted by businesses, for EU regulatory reform to improve UK business growth.

93. The Government will push the European Commission to deliver a culture change that bears down on the overall impact of EU legislation.

Progress made In November 2011, the European Commission committed to reduce the regulatory burden on SMEs and in January 2012 strengthened its analysis of new EU policy proposals for their impact on business competitiveness. The Government will continue to work with like-minded Member States to press the Commission to adopt a programme for reducing the overall regulatory burden to business.

94. The Government will improve online Business Link guidance on regulation.

Complete Online regulatory content has been simplified and the Business Link website has been enhanced to improve access to content.

95. The Government will publish an Enforcement White Paper in May 2011 with plans to improve enforcement of regulations.

Complete The Government published its consultation response in December 2011 and gave a commitment to launch regulatory reviews; the first tranche of which were announced in Budget 2012.

23

Measure Progress Notes 96. The Government will increase the qualifying period

for unfair dismissal from one to two years from April 2012.

Complete A doubling of the qualifying period for unfair dismissal will take effect from April 2012.

97. The Government will require all potential claimants to submit their employment tribunal claim to the Advisory, Conciliation and Arbitration Service so that early conciliation can take place.

Progress made The Government will bring forward the necessary primary legislative changes and proposals are now being finalised.

98. The Government will look at whether and how a

‘Rapid Resolution’ scheme to provide quicker, cheaper determinations in low-value, straightforward claims (such as holiday pay) could be introduced as an alternative to the current employment tribunal process.

Progress made If the Government decides to proceed, it will consult on the detail of any scheme and legislative proposals are now being developed.

99. The Government has launched a call for evidence on the effectiveness of the Transfer of Undertakings (Protection of Employment) (TUPE) regulations protecting employees’ rights and smoothing the process of business restructuring.

Progress made The Government is analysing the evidence from the recent call for evidence on TUPE to determine whether change would be beneficial, with a view to consulting on any proposed policy changes in autumn 2012.

100. The Government has called for evidence on the collective redundancy rules, including the consequences of reducing the current 90-day consultation period for over 100 redundancies to 60, 45 or 30 days.

Progress made The Government is analysing responses to the recent call for evidence, with a view to consulting on any proposed policy changes in autumn 2012.

101. Mr Justice Underhill will lead a fundamental review of the employment tribunal Rules of Procedure. In the meantime, the Government will change the rules on witness statements and expenses, cost and deposit orders and judges sitting alone in unfair dismissal cases.

Progress made Reformed employment tribunal rules on witness statements and expenses, cost and deposit orders and judges sitting alone in unfair dismissal cases will come into force from April 2012. Mr Justice Underhill will report in spring 2012.

24

Measure Progress Notes 102. The Government will work with industry and key

stakeholders to change attitudes to mediation and embed it as an accepted part of the dispute resolution process.

Progress made The first mediation event took place with the retail industry including companies such as Arcadia, BT, Tesco, John Lewis and Marks & Spencer. The Government is evaluating tenders for two regional mediation network projects.

103. The Government will introduce a provision for employment tribunals to levy a financial penalty on employers found to have breached employment rights (payable to the Exchequer), but will allow judges the discretion about whether to exercise this power to ensure that employers are not penalised for inadvertent errors.

Progress made Government will bring forward the necessary primary legislative changes and proposals are now being finalised'

104. The Government will develop a model agreement for use by smaller businesses, consult on a legislative change to enable compromise agreements to cover all existing and future claims, and rename agreements as ‘settlement agreements’.

Progress made On track. In addition, the Government has brought forward a regulation to amend section 147 of the Equalities Act, responding to a technical issue that has concerned the Human Resources and legal communities.

105. Subject to consultation, the Government will introduce a system of ‘protected conversations’ which will allow employers to have a conversation about any employment issue with their employees.

Progress made A consultation will be launched later this year.

106. The Government will shortly publish a consultation on the introduction of fees for anyone wishing to take a claim to an employment tribunal.

Progress made The responses received to the recent consultation are currently being reviewed and the Government plans to respond before the summer recess.

25

Measure Progress Notes 107. The Government will begin a call for evidence on two

proposals for radical reform of UK employment law. First, the Government will seek views on the introduction of compensated no-fault dismissal for micro-businesses with fewer than 10 employees. Second, the Government will consider how it could move to a simpler, quicker and clearer dismissal process, potentially including working with ACAS to make changes to their code or by introducing supplementary guidance for small businesses.

Progress made A call for evidence on dismissal processes will close in June 2012, and the Government will report shortly afterwards.

108. The Government will consult in spring 2012 on streamlining the current regulation of the recruitment sector.

Progress made A consultation will be launched later in 2012, including changes to simplify and improve how the recruitment sector is regulated.

109. The Government will work to remove common misconceptions about the burdens of employing staff for sole traders considering taking on their first employee.

Progress made The Government is planning to launch an online tool for first time employers in spring 2012.

110. The Government will examine the paperwork obligations of the Agency Worker Regulations in 18 months’ time to ensure that the practical arrangements for employers are as simple as possible.

Work started Work is on track to launch the review in June 2013.

111. The Government will close a loophole in the Public Interest Disclosure Act 1998, which enables employees to blow the whistle about breaches to their own personal work contract.

Progress made On track. The Government will bring forward the necessary primary legislative changes which are now being finalised.

112. The Government will merge the current body of National Minimum Wage regulations into a single set of consolidated regulation to complement the work of the Low Pay Commission in considering simplification of the current regime.

Work started A draft set of consolidated regulations will be produced by March 2013, taking account of any views from the Low Pay Commission.

26

Measure Progress Notes 113. The Government will deliver universal portability of

Criminal Records Bureau checks with an immediate checking service for employers via an online facility available from 2013.

Work started On track for availability in early 2013.

114. The Government will consider the recommendations of the Frost/Black Independent Review of Sickness Absence published on 21 November 2011, and will respond in 2012.

Progress made The Government has updated the Employer's Charter to respond to one of the recommendations of the Sickness Absence Review.

115. The Government is publishing a report which includes 16 specific cases, highlighted by businesses, for EU regulatory reform to improve UK business growth. These cases reinforce UK aims to reduce the overall EU burden, foster EU innovation, complete the internal market and remove gold-plating.

Complete The report was published in November 2011and presented to EU policy-makers. The Government will continue to push for reductions in EU regulatory burdens.

116. The Government will: launch a review of regulators; extend the Primary Authority scheme; impose sunset clauses on new regulators; and move towards greater co-regulation and earned recognition.

Progress made The first three regulatory reviews were announced in Budget 2012 and will consider whether enforcement arrangements are appropriate, proportionate, fit for purpose and risk-based. The Government will also launch a web tool to enable businesses and individuals to provide real-time feedback on their experience of being regulated. The Government will also bring forward legislation to extend the eligibility of the Primary Authority Scheme and strengthen the inspection plan element.

117. The Government has accepted the recommendations of Professor Löfstedt’s review of health and safety regulation and will take forward the recommendations.

Progress made An accelerated timetable was announced in Budget 2012 to scrap or improve 84 per cent of health and safety regulations.

27

11. Trade and investment

The Plan for Growth announced measures to support UK exporters and attract and facilitate investment in the UK. This is in addition to further measures announced in Budget 2012. Measure Progress Notes 118. Led by the Minister for Trade and Investment, UK

Trade & Investment (UKTI) will develop a more entrepreneurial culture which makes better use of private sector expertise and talent with a clear focus on winning business for UK firms.

Progress made UKTI is increasing its private sector expertise and the number of its private sector secondees. UKTI has introduced incentivised contracts for inward investment services and will do so for trade services in England by April 2012. UKTI is partnering trade associations, chambers of commerce, banks, accountants and lawyers to extend its support to 50,000 SMEs each year by 2015.

119. The Government will provide a bespoke service to key inward investors giving them direct access to UK Ministers and speedy resolution of bureaucratic obstacles to investment. This will support a major drive to encourage investment in economically significant projects.

Progress made UKTI is extending its strategic relations service for the UK's top exporters and inward investors. UKTI will showcase inward investment opportunities, especially in infrastructure, science and innovation and through a sustained client marketing programme for financial and contracting/ operating investors and sovereign wealth funds. At the London 2012 Olympics and Paralympics Games, UKTI will host major international business events to highlight UK opportunities to inward investors.

120. UKTI will deliver a new package of support to help SMEs with an ambition to break into overseas markets.

Complete In November 2011, the Government launched a National Export Challenge to get 100,000 more SMEs exporting by 2020. UKTI has launched new support networks for SMEs and an Export for Growth prize. An export guide for partner organisations to brand and give to customers has been produced and a programme has been developed to link high-potential firms to trade finance and venture capital. Other initiatives include “Open to Export” and Catalyst UK networks.

28

Measure Progress Notes 121. The Government will use the Foreign and

Commonwealth Office and UKTI to provide UK businesses with local intelligence on high value projects overseas and intensive support to win these deals.

Progress made The Government launched its Charter for Business in May 2011 setting out its support for UK business overseas and inward investors to the UK, including redeploying over 100 diplomats to commercial responsibilities, developing commercial training programmes and providing Overseas Business Risk support. UKTI supported UK businesses in securing more than £800 million in high value projects in 2011 and is pursuing 60 more around the world.

122. In EU negotiations, the Government will press for opening of market access overseas in areas of UK strengths, in particular the service sector.

Progress made Let’s Choose Growth sets out the need for EU action to reduce regulation, create a digital single market and improve innovation and services. The EU-South Korea Free Trade Agreement (FTA) came into force on 1 July 2011, potentially boosting UK GDP by £500 million. The Government is supporting the efforts of the EU-US High Level Working Group to deepen economic co-operation and liberalise trade, which will report in summer 2012, and is pressing for progress on EU FTAs including India, Singapore and Canada.

123. Working closely with business, UKTI will identify opportunities and barriers faced by UK companies operating in high-growth markets and ensure that the UK’s diplomatic resources and ministerial visits focus on eliminating these barriers to trade.

Progress made UKTI has hosted a series of export promotion events around the UK in 2012 in partnership with business, focussing on the high growth markets of Asia, Middle East and Latin America. Forthcoming events include SME missions to India and China, and, jointly with the Confederation of British Industry, a trade mission of mid-sized businesses to Turkey in April 2012.

124. To address demand for short-term trade credit insurance, the Export Credits Guarantee Department (ECGD) has extended the eligibility of its existing short term credit insurance policy, the Export Insurance Policy.

Complete Since March 2011, UK Export Finance (the trading name of ECGD) has issued 17 insurance policies for 16 exporters under the widened eligibility of the Export Insurance Policy, supporting exports with a related contract value of some £39 million. Offers have been accepted by 13 exporters in relation to £24 million of this support.

29

Measure Progress Notes 125. The Government makes permanent two facilities

introduced in response to the financial crisis: the Letter of Credit Guarantee Scheme and allowing ECGD’s guarantees to be used to raise long-term finance in capital markets for UK exports.

Complete The Letter of Credit Guarantee Scheme allowing UK Export Finance’s guarantees to be used to raise long-term finance in capital markets for UK exports were made permanent in March 2011.

126. The Government will provide further support to exporters, particularly SMEs, by working with banks to ensure a successful implementation of three new Export Credits Guarantee Department products: a bond support product, an export working capital product and a foreign exchange credit support scheme.

Complete

Since their launch in March 2011, guarantees have been offered for the benefit of eight exporters on 37 contract bonds with a related contract value in excess of £135 million. Offers have been accepted in relation to £62 million of this support by four exporters. The Export Working Capital Scheme has supported one facility for £0.5 million, facilitating £2.9 million of exports to the US.

127. The Government is launching the Export Enterprise Finance Guarantee and promoting its use to SMEs.

Progress made The Export Enterprise Finance Guarantee scheme is being integrated into the UK Export finance product range. This will provide a single point of contact for all Government support short-term export finance products. The process will be concluded in summer 2012

128. UK Border Agency (UKBA) will implement a single point of contact for all traders, with lead officials at ports and airports whom they can contact in the event of delays and issues related to Government Departments.

Progress made Lead officials at all key ports and airports have been established. UKBA has also set up a Strategic Partner Group, chaired by the head of UK Border Force, to discuss border control aims, issues and modernisation plans with industry. The Automatic Licensing Verification project (phase 2) was announced in November 2011 to further improve procedures and reduce time delays.

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12. Advanced manufacturing

Measure Progress Notes 129. The Government will extend the capital allowances

short life asset regime for plant machinery from four years to eight years, from April 2011

Complete Introduced through the Finance Act 2011 and effective from April 2012. It will apply to new assets acquired from April 2011.

130. The Government will expand the University Technical Colleges (UTCs) programme, to establish at least 24 new colleges by 2014.

Progress made 19 University Technical Colleges are now open or in development. More than 130 major national and local employers are involved in developing these projects which will provide a new generation of school leavers with technical knowledge and skills demanded by industry. A second round of funding is expected in May 2012.

131. The Government will launch a high value manufacturing Technology and Innovation Centre.

Complete The High Value Manufacturing Catapult Centre opened in October 2011 and will receive over £140 million over a six year period. It will support all forms of manufacturing using metals and composites, process manufacturing technologies and bio-processing.

132. The Government will fund nine new university-based centres for Innovative Manufacturing by 2012.

Complete Twelve university-based Centres for Innovative Manufacturing were launched in March 2011. Funding of £61.5 million will be made available for research in manufacturing over a five year period.

133. The Government will fund a programme of new Manufacturing Fellowships.

Progress made Formal awards are expected this month, with a further £5 million by June 2012, to help bridge university and industrial research opportunities.

134. The Government will launch an enhanced Manufacturing Advisory Service

Complete The enhanced Manufacturing Advisory Service was launched in January 2012, offering specialist advice and business support, with an additional £7 million (£59.3 million in total) to deliver its services over the next three years.

135. The Government is launching a new £75 million programme of targeted support to help smaller employers access Advanced Level and Higher Apprenticeships.

Progress made Winning bids worth £19 million were announced in December 2011. Funding of £6 million for Higher Apprenticeships was launched in February 2012, targeting sectors including aerospace and aviation.

31

Measure Progress Notes 136. The Government will support the development of a

new degree-equivalent Higher Level Apprenticeship. Progress made The UK Commission for Employment and Skills is developing

a framework for March 2012. The first candidates will be taken on from September 2012.

137. The Government will strengthen its strategy for promoting science, technology, engineering and maths (STEM) skills.

Progress made Contracts are in place to improve STEM subject teaching in schools. The number of STEM ambassadors will be increased, and a National Careers Service will be launched in April 2012 to promote STEM occupations.

138. The Government will launch a high profile industry showcase alongside the 2012 Olympic and Paralympic Games and roll out of a programme of ‘Made in Britain’ exhibitions.

Progress made The judging panel for proposals to exhibit at the Science Museum during the Olympic Games has been established. Thirty industry champions have been appointed through the Make It In Great Britain website.

139. The Government will seek to promote a new international prize in engineering, working with private sector partners to create an endowment to support such a prize

Complete The Queen Elizabeth Prize for Engineering was launched in November 2011. The £1 million prize will now be awarded bi-annually by the Royal Academy of Engineering. The first prize will be awarded in spring 2013.

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13. Construction

Measure Progress Notes 140. The Government will publish the UK’s long term

forward view of projects and programmes as part of the National Infrastructure Plan 2011.

Complete The National Infrastructure Plan was published in November 2011.

141.

The Government will publish quarterly from autumn 2011 a rolling two year forward programme of infrastructure and construction projects where public funding has been agreed.

Complete The Government published an enhanced and improved list of projects in November 2011. The Government will continue to publish quarterly a rolling two year forward programme.

142. The Government will reform the way in which it procures public sector construction and infrastructure to reduce costs by up to 20 per cent.

Progress made The Construction Strategy was published in May 2011 setting out how to procure public sector construction and infrastructure to reduce costs and a programme of work to March 2013. Government will publish the first annual cost review in April 2012.

143. The Government will support over 10,000 first time buyers to buy a home through a FirstBuy programme.

Progress made Since the last FirstBuy update in November 2011, housebuilders have found significant interest from first time buyers, reporting over 4,200 reservations as at end of February 2012 and the three largest house builders reporting sales of over 1,200 by December 2011. Sales figures reflecting the first year of the two-year programme will be published in June 2012.

144. The Government will accelerate the release of public sector land to encourage new homes and jobs.

Progress made The Government is accelerating the release of public sector land. The Budget announced that sufficient land has been identified to meet the Government’s ambition to dispose of land with the capacity to build over 100,000 homes and support as many as 25,000 jobs by April 2014. A progress report setting out further details will be published before the summer.

145. The Government will strengthen demand for residential property by reforming the stamp duty land tax rules applied to bulk purchases.

Complete The reform of stamp duty land tax rules was introduced in Finance Act 2011.

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146. The Government is introducing a range of measures to remove barriers to entry for new Real Estate Investment Trusts.

Progress Made The Government has consulted informally on measures that were announced at Budget 2011, and the outcome will be reflected in the draft Finance Bill 2012 where the technical elements were subject to further consultation. There will be further consultation on technical elements of the draft legislation. The measures will be legislated for in February 2012.

147. The Government will review construction standards and codes, to take out redundancy and duplication where the costs outweigh the benefits.

Progress made The report on technical standards in the transport sector will be published by June 2012 together with recommendations for wider roll-out into other infrastructure sectors.

148. The Government is announcing the regulatory requirements for zero carbon homes, to apply from 2016. To ensure that it remains viable to build new houses, the Government will hold house builders accountable only for those carbon dioxide emissions that are covered by Building Regulations, and will provide cost-effective means through which they can do this.

Progress made A consultation was launched in January 2012 on potential regulatory changes in 2013, to act as an interim step towards achieving zero carbon standards.

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14. Digital and creative industries

Measure Progress Notes 149. The Government will deliver a package to support the

UK’s broadband digital infrastructure. Progress made The Government published advice on micro trenching and

street works in November 2011. The Government is currently preparing its response to the proposals received under its consultation on ‘Relaxing the restrictions on the deployment of overhead telecommunications lines’. Budget 2012 also announced £100 million to create 10 super connected cities offering access to broadband download speeds with a minimum of 80-100 Mbps and high speed wireless connectivity. The Government will also provide an additional £50 million to fund a second wave of ten smaller super-connected cities.

150. In response to the Hargreaves recommendations, due in April 2011, the Government will consider simplifying payments for copyright materials and freeing up orphan works. The Government commits to no further broad reviews of the intellectual property rights regime during the lifetime of this parliament.

Progress made The Government has accepted all recommendations in the Hargreaves Review on Intellectual Property and Growth. This has an estimated benefit to business of £7.9 billion. The Intellectual Property Office (IPO) published its assessment on the case for reform of Design Rights system in December 2011. The Government has also announced that it will introduce a small claims track into the Patents County Court, which it is estimated will benefit around 150 firms every year. The first phase of the UK Digital Copyright Exchange feasibility study is complete, with findings to be published shortly. The Government will publish a response to proposals on copyright reform shortly.

151. The Government’s Intellectual Property Office (IPO) will improve the range of products and services available to support UK businesses, particularly SMEs, on issues relating to intellectual property. The IPO will also establish a network of attachés covering key global markets, including China, east Asia and India.

Progress made The IPO is introducing measures including a new online business advisor training tool that will give advisors the skills and information they need to help businesses protect the value of their intellectual property. The first Intellectual Property attaché in China is in place; one in India will start shortly.

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Measure Progress Notes 152. The Government will publish a guide to public sector

intellectual property procurement policy. Progress made On track for publication in May 2012.

153. The Government will substantially reduce the burden

placed on business by the communications and media regulatory framework.

Progress made A Green Paper will be published shortly.

154. The Government will reduce the requirements for live music to be licensed. The Government will also bring forward proposals to reduce licensing burdens on other forms of entertainment such as theatre, cinema and indoor sport.

Progress made The Live Music Bill received Royal Assent this month and will come into force later in the year. The Government is considering views received on its consultation proposals to relax licensing arrangements for other activities - live and recorded music, theatre, cinema, dance, film and indoor sport.

155. The Government will reduce the proposed extension of legal deposit requirements to online publications.

Progress made A consultation on revised draft regulations will close in May 2012. This follows work with Legal Deposit libraries and publishers to identify costs for their proposals.

156. The Government will re-notify film tax relief to the European Commission.

Complete The European Commission have agreed the extension of film tax relief for three years.

157. The Government recognises BBC Worldwide’s contribution to UK creative exports and would welcome exploration by the BBC of how BBC Worldwide may act as a source of finance and distribution expertise for UK digital and creative industry firms with global ambitions.

Progress made The BBC published a report in September 2011, setting out its intention to help other high quality UK intellectual property reach global markets.

158. The Government will support the establishment by industry of a Creative Industries Council, which can provide a voice for the sector with the financial community and coordinate action on barriers to growth.

Complete The Creative Industries Council met in July 2011 and January 2012. It is comprised of members from twelve creative industries and chaired by the Secretaries of State for Business, Innovation and Skills and Culture, Media and Sport. The Council agreed for proposals on to be taken forward and is investigating issues on access to finance for the industry.

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Measure Progress Notes 159. A marketing plan will be developed by UKTI to

promote opportunities for investment in the UK’s Digital and Creative industries.

Complete A sector strategy has been developed which focuses on the sub-sectors where there is most opportunity for inward investment. A substantial marketing campaign has been delivered nationally and internationally to highlight the Tech City Initiative, promoting London as the digital capital of Europe.

160. The Government will improve the stock of skills in the digital and creative industries.

Progress made A new strategic partnership has been developed between the Sector Skills Councils Skillset and Creative and Cultural Skills together with the National Apprenticeship Service. STEMNET are on track to achieve their interim target to increase the numbers of STEM Ambassadors from digital and creative industries by March 2013. The Government published its response to the Livingstone-Hope Review of Skills in Video Games and the Visual Effects in November 2011. The Government is also consulting on dis-applying the ICT Programmes of Study, Attainment Targets and statutory assessment arrangements from September 2012.

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15. Health and life sciences

Measure Progress Notes 161. The Government will set up a new health research

regulatory agency to streamline regulation and improve the cost effectiveness of clinical trials. The National Institute for Health Research (NIHR) will make funding to providers of NHS services conditional on meeting benchmarks, including a 70 day benchmark to recruit first patients for trials.

Progress made A Special Health Authority has been set up and draft legislation to establish the HRA will be published in the second session of this Parliament. The National Institute for Health Research made the 70-day benchmark to recruit first patients for trials a condition of new contracts to providers of NHS services from December 2011 and performance against this benchmark will affect funding from 2013.

162. The Government will reduce perceived gold-plating and increase the proportionality of EU Clinical Trials Directive and its application.

Progress made The Government is encouraging a risk based approach to management of clinical trials within the EU and globally. The European Commission expects to present their legislative proposals for the revision of the Clinical Trials Directive in autumn 2012. Since its launch, 636 members have joined the Good Clinical Practice Forum which enables extended communication between researchers.

163. The Government will open up information about clinical trials to enable the public to get involved.

Progress made Since its launch, the National Institute for Health Research’s (NIHR) UK Clinical Trials Gateway test site attracted 60,000 visitors. NIHR has developed a free smartphone application to enable people to get involved. The full site will launch in spring 2012.

164. The Government will build a consensus on using e-health record data to create a unique position for the UK in health research.

Complete The Clinical Practice Research Datalink will be launched by the end of this month.

165. The Government will open up information on clinical research to promote collaboration and innovation.

Progress made The National Institute for Health Research (NIHR) website is opening up information on clinical research to researchers, industry and the public, promoting collaboration and innovation.

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Measure Progress Notes 166. The Government will consider opening up prescribing

data. Progress made Monthly ‘Chemical’ level data by GP practice was first released

in December 2011. February figures show more than 1500 downloads of the data across Europe, the US and Asia. The Government is on track to release more detailed data from September 2012.

167. The Government will form new Translational Research Partnerships from its £775 million investment in National Institute for Health Research (NIHR) Biomedical Research Centres and Units.

Complete Two NIHR Translational Research Partnerships have been set up to develop collaborative research between the NIHR Partnerships and Industry.

168. The Government will remove any barriers that limit the further development of geographical clusters, working with industry, local government, universities, NHS and funders.

Progress made The Innovation and Research Strategy and the Life Science Strategy, published in December 2011, addressed these barriers. The Government is now working closely with industry to identify and exploit which mechanisms best support SME growth.

169. The Government will launch a competition to form a Cell Therapy Technology and Innovation Centre (now changed to ‘Catapult Centre’).

Progress made The Cell Therapy Catapult Centre will be in London, and the Technology Strategy Board is currently recruiting a Chief Executive, identifying premises and developing the operational blueprint for the centre.

170. To ensure educators provide the skilled individuals the sector needs to grow, the Government will, through Cogent, improve market signalling by bringing companies and educators together.

Progress made Cogent launched a Life Sciences Higher Level Apprenticeship (which includes a foundation degree) in February 2012. The Society of Biology launched their undergraduate degree accreditation programme this month.

171. The Government will ensure that the Intellectual Property system supports life sciences businesses.

Progress made A formal consultation on amending the UK Patents Act to exempt certain activities in relation to clinical or field trials will be launched by the end of 2012.

172. The Government will take forward a range of measures to encourage innovation in NHS procurement.

Progress made The Government will publish a package of measures in April 2012. To encourage more innovation in healthcare the Small Businesses Research Initiative has been launched with a £10 million budget over the next two years. This has now been doubled as part of Innovation Health and Wealth. The first phase of competitions will be launched in April 2012.

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Measure Progress Notes 173. The NHS Chief Executive will provide a report by

November 2011 on how the adoption and diffusion of innovations can be accelerated across the NHS.

Complete Innovation Health and Wealth, launched in December 2011, sets out a delivery agenda for spreading innovation to support the NHS in achieving a systematic and profound change in the way it operates.

174. The Government will take forward a package of measures to improve the take up of assisted living technology.

Progress made The Government published its headline findings in December 2011. The Government is developing the 3millionlivesinitiative and published a concordat with the four main trade associations representing telehealth and telecare in January 2012. The Technology Strategy Board has also undertaken a competitive selection process for the Delivery Assisted Living Lifestyles at Scale initiative. A decision will be made during May 2012 on the final sites. Work has started on the Telehealth code of practice by the Telecare Services Association.

175. The Government will strip out regulations that were never meant for the social care market and are preventing market entry and flexible services.

Complete A roadmap on regulations was published by the National Association for Adult Placement Schemes and the Government in October 2011.

176. The Government will establish a proactive, entrepreneurial NHS Global

Progress made NHS Global supported by UKTI, is working with a number of countries in the Middle East and ‘BRIC’ economies to identify and secure commercial contracts. The Kingdom of Saudi Arabia is an initial priority for NHS Global and work is progressing well.

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16. Logistics

Measure Progress Notes 177. The Government has published a Written Ministerial

Statement to support the development of, and investment in, strategic rail freight interchanges. This statement is supported by a detailed guidance document.

Progress made Written Ministerial Statement and policy guidance were published in November 2011. Subsequently, planning applications for a strategic rail freight interchange in Derbyshire is likely to be submitted in early autumn 2012 and in South Staffordshire in early 2013. Further applications may include East Midlands Airport.

178. The Government has asked Network Rail to support the development of a network of strategic rail freight interchanges, working with the wider logistics industry.

Progress made Discussions ongoing. Network Rail is also providing cost connection information over the life-span of assets to help inform developers’ investment choices. It is also looking at its own freight land portfolio to identify possible opportunities for developers.

179. The Government will support Network Rail to invest £55 million in the strategic rail freight network to help deliver schemes that remove bottlenecks and improve capability and longer-term connectivity to the UK’s major ports.

Progress made Doubling of the track between Ely and Soham has begun. Gauge clearance work between Syston and Stoke is expected to be complete by March 2014.

180. The Government will deliver the recommendations from the Motorway Incidents Review to ensure it can reduce the frequency of long-duration incidents and delay to heavy goods vehicles (HGVs).

Progress made Just under £2.8 million has been awarded to 27 police forces that met the criteria, providing funding for 38 laser scanners. Two police forces are already using these. Trials suggest the scanners can save an average of 39 minutes in the investigation of serious incidents.

181. As announced on 11 October 2011, the Government will carry out a trial of longer semi-trailers. The trial will commence in January 2012 and last up to 10 years, with the anticipated value of the trial being an estimated £33 million to operators.

Progress made Revised allocations of high volume semi-trailers were announced in February. Four hauliers are already operating these. The Vehicle Certification Agency is processing applications for Vehicle Special Orders from other applicants, who will be able to start operating as soon as the VSOs are issued.

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Measure Progress Notes 182. The Government will explore opportunities to support

green technologies through changes to the operator licensing regime, to reflect the increased costs to industry from low emission technologies that increase the overall weight of the vehicles.

Progress made The Government will shortly discuss with industry stakeholders the merits and usefulness of an exemption from operator licensing for gas-powered vehicles and the scope to better publicise existing exemptions from operator licensing.

183. The Government is on 29 November 2011 launching an industry-led task force to promote use of fuel efficient, low emission road freight technologies.

Progress made The Government is chairing a series of sub-group meetings to develop the task force work programmes that will assist industry and local government to support HGV low emission technology.

184. The Government will invest £8 million to pump prime the procurement of low emission HGV technologies and their supporting infrastructure. The Government will work with the Technology Strategy Board to launch a competition for this funding in March 2012.

Progress made The Technology Strategy Board launched a competition to award £9.5 million total funding to procure low emission HGV technologies and their supporting infrastructure, which will close in June 2012. An additional £1.5 million will help operators establish and run trial fleets of low carbon trucks and demonstrate their wider benefits such as potential fuel savings.

185. The Government will consider the need for further guidance on quiet night time deliveries as part of a forthcoming wider review.

Progress made Organisations including the Noise Abatement Society and the Freight Transport Association are developing a pricing and service package to enable quiet delivery trials to be agreed between site operators and local authorities. Further guidance on quiet night time deliveries is still under consideration.

186. The Government will trial the temporary use of snow ploughs attached to certain types of heavy duty vehicles. Where necessary, the Government will consider relaxing certain weights and dimensions legislation to facilitate this.

Progress made Agreements are in place between some operators and local authorities to allow snow clearance from public access roads between distribution sites and the strategic road network. The Government is facilitating further discussions to increase coverage of these agreements.

187. The Government will provide £4 million to Skills for Logistics to improve training approaches to increase the competitiveness and productivity of the logistics sector.

Progress made Skills for Logistics carried out its UK Modern Logistics Guild feasibility study in February, and will launch four projects of work to support this in April 2012.

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17. Mid-sized businesses

Measure Progress Notes 188. UKTI will receive £10 million of additional funding to

provide a tailored package of export support to an estimated additional 500 mid-sized businesses per year. UKTI and UK Export Finance will also work with businesses to promote existing trade finance support for mid-sized businesses.

Progress made UKTI is recruiting specialist trade advisors to work with 500 businesses from a target list of over 15,000 mid-sized businesses from April 2012. Lord Green, John Cridland (Director General, Confederation of British Industry) and Nick Baird (Chief Executive, UKTI), will lead a delegation of mid-sized businesses to Turkey in April 2012, the first delegation exclusively focused on this cohort. Specialist UKTI trade advisors will be in place across the country from April 2012 to reach those mid-sized businesses with the greatest export potential.

189. The Government is working with large businesses, including Microsoft, Centrica, and Diageo, to develop new commitments to support and strengthen their supply chains.

Progress made Initiatives undertaken by large businesses to support their supply chains include: Balfour Beatty’s ‘purchase cards’ to speed payment times to suppliers; Diageo’s recruitment of dedicated staff to support supplier performance; and Carillion’s export finance for its UK-based suppliers.

190. The Government will increase by up to 200 the number of mid-sized businesses benefiting from resource efficiency schemes.

Progress made On track to support 200 mid-size businesses through the Waste and Resources Action Programme with funding from April 2012. The Government is also running campaigns for mid-sized business efficiency improvements in food and drink, supply chain improvements and water efficiency.

191. The Government has established a task force of UK business schools to report by October 2012 on options for improving access to appropriate courses and promoting links between mid-size businesses, business schools and students.

Progress made The Business School Task Force is on track to report in October 2012.

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Measure Progress Notes 192. The Government has asked a group of eight Local

Enterprise Partnerships (LEPs) to establish a dedicated local pathfinder project to raise the profile of mid-sized businesses, strengthen business networks and encourage peer-to-peer support on issues such as exporting and succession planning.

Progress made Leeds City Region and East Anglia LEPs will hold networking and capacity building events in April 2012 and a number of other Local Enterprise Partnerships are finalising project plans.

193. The Government, working with business, will launch a national campaign to showcase mid-sized business and publicise the full range of Government services available.

Progress made The campaign has been launched and activities took place at a Manufacturing Summit in February 2012, Science and Engineering Week (March 2012) and will continue at the Olympics, London Fashion Week and in partnership with the Daily Telegraph’s Festival of Business in September 2012.

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18. Professional and business services

Measure Progress Notes 194. The Government will shortly publish guidance to help

commercial organisations understand the Bribery Act 2010 better.

Complete Guidance was published in March 2011.

195. The Government wants to abolish over two dozen regulatory offences under Money Laundering Regulations and exempt businesses with very low turnovers, which will reduce compliance burdens.

Progress made The Government is committed to ensuring the financial system is a hostile environment for illicit finance while minimising the burden on legitimate businesses. The outcome of its consultation on the changes will be announced shortly.

196. The UK Border Agency (UKBA) will launch services for trusted business visa service users, entrepreneurs and high net worth investors, move to online visa processing, and publish application guidance in more local languages.

Progress made The new Prospective Entrepreneur Visa was launched in 2011 to enable business start-ups and funding to be arranged before obtaining an Entrepreneur visa. Minimum thresholds on Entrepreneur Visas have been reduced from £200,000 to £50,000 from specified sources. Online visa applications were introduced in December 2011, and the Government aims to ensure that 90 per cent of visa applications will be made online by the end of 2012. Tourist and business visa guidance is now available in Arabic, Chinese, Hindi, Russian, Turkish and Thai.

197. The Ministry of Justice and UKTI will work with the sector to promote the UK’s world leading business arbitration and commercial law services.

Progress made The Ministry of Justice published a Legal Services Action plan in May 2011, and is working with UKTI and industry to champion the UK as a global centre of legal excellence. The outcome of the Review will be published shortly. The Rolls Building opened in London in October 2011 providing a world-class centre for legal services for Dispute Resolution.

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Measure Progress Notes 198. The Government will pursue improved access to new

markets outside the EU. Progress made Last year, UK legal experts accompanied the Prime Minister’s

visit to Moscow, and Ministerial visits to India and Saudi Arabia. This year, the Government will take forward further measures to promote UK excellence in these sectors, help UK firms succeed abroad and bring new investment into the UK.

199. The Government will press the European Commission and other EU member states to implement the Services Directive in full.

Complete The Services Directive has been fully implemented, and the Government is working to improve best practice and consistency between Member States, to enable business to maximise opportunities

200. The Government wants to encourage talented students into the professions regardless of their background. A working group of the UK Commission for Employment and Skills will look at whether a new accountancy apprenticeship programme would be effective, and propose other measures to improve access to the professions.

Progress made ‘Building Future Skills in Accountancy’ was published in November 2011.The Higher Apprenticeship Fund is supporting Level 4 Higher Apprenticeships with 270 opportunities in insurance, banking and stockbroking (worth over £346,000), and a Higher Apprenticeship programme in professional services, focusing on tax, audit and consultancy management (worth over £1.5 million).

201. The Professional and Business Services Group, chaired by Sir Michael Snyder, will launch a Log of Professional Readiness by June to promote increased employability skills among graduates.

Complete The Log was completed in June 2011 and provides an official base for graduates and school pupils to record positions of responsibility and leadership. It will complement school and university qualifications.

202. Initiatives being developed by a Government / business cyber security partnership will make the UK a more resilient place to do business.

Progress made The cross-Whitehall Cyber Security strategy launched in November 2011. To support business, the Government has developed strategic relationships with cyber security suppliers to understand their strengths and the market potential.

203. The Government will cut down the administrative burdens of complying with business regulation.

Progress made As part of the Employment Law Review and Red Tape Challenge, the Government announced a series of measures on 23 November 2011 to cut down the administrative burdens of complying with business regulation. Regulations in the Business Services sector will be reviewed in the Red Tape Challenge during 2012.

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Measure Progress Notes 204. The Financial Reporting Council will work closely with

the professions, businesses and market participants to reinforce the principle that independent regulation and enforcement should focus on risk and outcomes rather than process.

Progress made A public consultation on Financial Reporting Council reform closed in January 2012 and the Government will this month.

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19. Retail

Measure Progress Notes 205. The Government will extend the current small

business rate relief holiday for one year from 1 October 2011.

Complete The Government will extend the current Small Business Rate Relief holiday for a further six months from 1 October 2012 (to end 31 March 2013). Overall over half-a-million businesses will see a reduction in their business rate bill, and 330,000 businesses will get 100 per cent relief on their bill.

206. The Government will invite the independent Low Pay Commission (LPC) in its next report to consider and implement the best way to give business clarity on future levels of the National Minimum Wage, including consideration of two-year recommendations.

Complete The Government agrees with the LPC’s recommendation that two-year recommendations would constrain it to a position based on out-of-date information that would outweigh any benefit in increased clarity. In March 2012 the Government announced the rates which will apply from October 2012.

207. The Government will introduce a package of measures to support thriving town centres and build on the Town Centre First policy.

Progress made The Mary Portas review made 28 recommendations. The Government will respond to all the recommendations shortly. In February 2012, the Government announced a competition for up to twelve towns to receive funding to pilot recommendations from the report.

208. The Government will expand the Primary Authority model to apply consistent enforcement standards across a wider range of regulations and businesses.

Progress made On track. The eligibility of the Primary Authority Scheme will be opened and the inspection plan element strengthened.

209. The Government will amend regulations affecting retailers to make them more outcome-focused, and use a checklist approach to assist SMEs in complying with these regulations that affect the retail sector.

Progress made A pilot is running on the Reporting of Injuries, Diseases and Dangerous Occurrences Regulation which will report in April 2012. From April 2012, subject to parliamentary approval, RIDDOR’s injury reporting threshold will be extended to over seven days incapacitation.

210. The Government will implement a regulatory reform package to simplify complex and inconsistent age-restricted sales regulations and licences for businesses.

Progress made In December 2011, the Local Better Regulation Office published an agreed set of shared responsibilities and reasonable expectations for young people, parents, businesses, employees and regulators.

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Measure Progress Notes 211. The Government will work with retailers to ensure the

skills system is delivering what the sector needs, including by providing pre-employment retail skills training to the unemployed and encouraging greater take-up of retail apprenticeships.

Progress made Following a pilot with several major retailers, new approaches on apprenticeships were announced in November 2011. In addition, retail work academies offering pre-employment training are now being rolled out through several major retailers. In April 2012, the National Apprenticeship Service and Skillsmart Retail will launch a Retail Apprenticeship Training Agency to support and increase the use of apprenticeships by retail SMEs.

212. The Government will work to remove regulatory barriers to increased cross-border online retail.

Progress made In January 2012 the European Commission adopted a Communication on building trust in the Digital Single Market. The Government is working with the European Commission on a European Retail Action Plan, to address barriers to both traditional and online cross-border retail. The European Retail Action Plan is due to be published by December 2012.

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20. Rural economy

Measure Progress Notes 213. The Government will support rural broadband by

opening the £20 million Rural Community Broadband Fund; working closely with North Yorkshire County Council, one of the pilot areas for superfast broadband rollout; and considering new approaches to make the roadside telecommunications network available.

Progress made The Fund launched in November 2011 and received 39 expressions of interest in the first round. A second round will open in May 2012. The three-year Go-ON North Yorkshire demand stimulation pilot was launched in February 2012 aiming to get more people online and increase the use of the internet for those already connected. The Highways Agency is taking forward with its network access supplier to encourage it to adopt a more proactive approach to developing new third party opportunities.

214. The Government will provide approximately £15 million to fund up to six pilot Rural Growth Networks.

Progress made Five Rural Growth Network pilots will be established in 2012/13 in Cumbria, Devon and Somerset, Durham and Northumberland, Warwickshire, and Swindon and Wiltshire. These will test mechanisms by which Local Enterprise Partnerships and local authorities can support sustainable economic growth in rural areas.

215. The Government accepts a number of recommendations of the Farming Task Force and will consult on exempting organic farmers from regulations controlling the use of nitrate-based fertilisers; and recognise third-party certification schemes such as the Red Tractor in its inspection regime

Progress made The Government expects to report on its consultation on revising nitrates regulations in May 2012. The Government published its response to the Task Force recommendations in February 2012, including introducing earned recognition into inspection regimes and cross-compliance inspections by 2013.

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Measure Progress Notes 216. The Government will invest £100 million from the

Rural Development Programme for England to help small businesses improve their skills, facilities and competitiveness.

Progress made The £60 million Rural Economy Grant was launched in February 2012, to enable transformational business growth in rural areas, including rural tourism. The recently launched Farming and Forestry Improvement Scheme is processing over 1,000 applications, and a second round is expected to open in late April. The Government expects the £20 million work-based training for rural businesses to be available from autumn 2012. The £20 million Rural Community Broadband Fund is also funded through this programme.

217. The Government will commit £25 million to promote rural tourism, including a new £10 million fund within the Rural Development Programme for England to develop rural tourism destinations.

Progress made The Government’s £10 million rural tourism fund is open for applications. Other elements of the package where progress has already been made include VisitEngland’s new Holidays at Home are GREAT campaign, which is promoting tourism in rural England; and the Paths for Communities scheme that Natural England will open in April 2012.

218. The Government will launch a food and drink export action plan in January 2012. In addition a summit will be held in March 2012 to boost innovation in small agri-food businesses.

Complete The Government published an action plan and held an Innovation Summit to raise awareness of the potential in the food and drink sector from innovation and to highlight the support available to businesses. Two innovation competitions have been launched and regional events will be held to engage smaller businesses in the competition. The winners are expected to be announced in summer 2012.

219. The Government will launch a £15 million Rural Community Renewable Energy Fund to help communities meet the upfront cost of developing renewable projects.

Progress made Good progress is being made on scoping the fund, its design and preparations to tender for programme management.

220. The Forestry Commission England, working with private companies, will offer 45 training opportunities for new forestry apprentices.

Progress made The Forestry Commission England along with forestry colleges is currently supporting two recruitment events to identify apprentices and explain the Work-Based Diploma (the academic portion of the apprenticeship).

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21. Space sector

Measure Progress Notes 221. The Government will reform the Outer Space Act

1986 by introducing an upper limit on liability for UK operators.

Progress made The Government announced its intention to reduce minimum third-party insurance cover to €60 million as a licence condition in July 2011. The UK Space Agency will shortly consult on capping operator liability under the Outer Space Act. The Government plans to amend the Act by end 2012.

222. The Government will work with the international regulatory authorities to define regulations for novel space vehicles that offer low cost access to space.

Progress made The UK Space Agency is investigating the regulatory issues for space planes in Europe and the UK and the options to enable space planes to operate in the UK within a European regulatory environment provided by the European Aviation Safety Agency.

223. The Government will provide UK industry with clearer guidance on the regulation of security aspects in export deals.

Complete Guidelines to clarify space industry exports have been published.

224. The Government will work with Ofcom to ensure that British industry has full and fair access to the limited supply of satellite orbit slots.

Progress made The World Radio Conference 2012 introduced measures to improve radio spectrum use and clarified rules, including that 90 days of continuous operation in a geo-stationary orbit is required to demonstrate that a slot has been “brought into use”. The measure will come into force in January 2013, and will not be retrospective.

225. The Government announces £10 million of funding to accelerate the development of the International Space Innovation Centre.

Progress made 28 ‘fast track’ R&D projects will be funded by the UK Space Agency and Technology Strategy Board to research and demonstrate commercial products and services in the UK using space technology or space-derived data. The UK Space Agency also announced 'pathfinder' early-stage research projects in February 2012 and expects to award four further flagship R&D projects in April 2012. A significant number of these projects will be undertaken at, or directly benefit, the International Space Innovation Centre.

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22. Tourism

Measure Progress Notes 226. The Government is co-funding with the private sector

a £100 million campaign aiming to attract visitors to the UK in the years following 2012.

Progress made VisitBritain’s GREAT international marketing campaign will run until March 2013, promoting the UK internationally as a place to study, work, invest and do business. The Special offer for a special year domestic tourism initiative also launched in March 2012.

227. The Government is reducing regulation for businesses in the tourism industry by creating a task force of senior industry figures from across the UK, to identify opportunities to cut red tape.

Progress made In January 2012, the Tourism Regulation Task Force made 80 recommendations to amend or cull regulations. Sixty regulations in hospitality, food and drink are being scrapped or revised following work through the Red Tape Challenge.

228. The Government is making it easier for tourists to visit the UK. To do this the UK Border Agency (UKBA) will increase the number of visa biometric ID centres around the world, move to online visa processing, and publish application guidance in more languages.

Progress made Visa application guidance was published by the UK Border Agency in six languages in April 2011. A new online visa application was introduced from December 2011.

229. The Government is working with People 1st, the National Skills Academy for Hospitality, and the industry, to increase the number of apprenticeships and other courses teaching hospitality skills so that consistently higher standards are delivered.

Progress made The Government has made available £1.7 million funding to People 1st to broker 500 new apprenticeships places and to help 15,000 unemployed people find work. Following consultation with the industry, VisitEngland will publish the Strategic Framework Action Plans on Skills in March 2012.

230. The Government is modifying Tourist Boards to become smaller, highly focused, industry-led partnerships between tourism firms and government.

Progress made VisitEngland is working with local tourism bodies and businesses to develop stronger private sector leadership and better links with Local Enterprise Partnerships.

231. The Government is helping the industry prepare for changes in technology, so tourism information can be provided through smartphone apps, as well as through traditional leaflets and websites.

Progress made VisitEngland, working with industry, launched a plan for modernising visitor information in June 2011, including the Swipe, Tap and Enjoy England smartphone app.

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Measure Progress Notes 232. The Government is giving the industry and consumers

responsibility for hotel ‘star rating’ quality schemes. Progress made VisitEngland’s response to the consultation on quality within

the industry is due shortly. VisitEngland has also awarded an industry-led licence scheme to undertake assessments and award star ratings, starting April 2012.

233. The Government is helping create tourist destinations that match London and maximise the potential of other parts of Britain.

Progress made The GREAT campaign and ‘Special offer for a special year' marketing initiative are promoting tourism in all parts of the Britain.

234. The Government is consulting on whether to move the first bank holiday in May.

Progress made The Government conducted a pre-consultation exercise in May and June 2011. Further decisions will be made in due course.

235. The Government is delivering its pledge to maintain and reform Furnished Holiday Lettings reliefs.

Complete Introduced in the Finance Act 2011.

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Plan for Growth: Implementation Update (December 2012) To enable the UK to compete in a rapidly changing global economy, the Government is delivering an ambitious programme of structural reforms. The Plan for Growth published alongside Budget 2011, set out a broad programme of reforms designed to remove many of the barriers to growth for businesses, and to achieve the Government’s four ambitions for growth:

• Encouraging investment and exports as a route to a more balanced economy;

• Making the UK the best place in Europe to start, finance and grow a business;

• Creating a more educated workforce that is the most flexible in Europe; and

• Creating the most competitive tax system in the G20.

This document sets out progress made to date across the commitments in the Plan for Growth and at Autumn Statement 2011. Previous updates were published alongside Autumn Statement 2011 and Budget 2012. Progress against the Government’s National Infrastructure Plan has been published separately.

Delivery of these commitments remains a priority across Government, over half are now complete and the vast majority of those that remain are on track. Completed measures include: cutting the main rate of corporation tax from 28 per cent in 2010 to 24 per cent in 2012, increasing business investment – it was estimated that the additional 1 per cent reduction in the main rate announced at Budget 2012 would increase business investment by £3.4bn by 2016; reducing the burden of regulation on business by £850m per year since April 2011; and root and branch reform of the planning system, with the launch of the National Planning Policy Framework in March this year.

The Government has also set out further structural reforms to support growth. These include new announcements in Autumn Statement 2012, and those announced earlier this year in Budget 2012, over the summer on infrastructure, housing and planning, and in the Government’s Growth and Infrastructure Bill.

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Contents

Reporting themes Announced Page Cross-cutting themes 1. Access to finance Plan for Growth 3 2. Competition Plan for Growth 4 3. Corporate governance Plan for Growth 5 4. Education and skills Autumn Statement 2011 6 5. Infrastructure Autumn Statement 2011 and National Infrastructure Plan 9 6. Low carbon Plan for Growth 11 7. Planning Plan for Growth and Autumn Statement 2011 12 8. Public sector procurement Autumn Statement 2011 16 9. Publication of government data Autumn Statement 2011 18 10. Reducing regulatory burdens Plan for Growth and Autumn Statement 2011 20 11. Trade and investment Plan for Growth 25 Sectoral themes 12. Advanced manufacturing Plan for Growth 27 13. Construction Plan for Growth 29 14. Digital and creative industries Plan for Growth 31 15. Health and life sciences Plan for Growth 34 16. Logistics Autumn Statement 2011 37 17. Mid-sized businesses Autumn Statement 2011 39 18. Professional and business services Plan for Growth 40 19. Retail Plan for Growth 43 20. Rural economy Autumn Statement 2011 45 21. Space sector Plan for Growth 47 22. Tourism Plan for Growth 48

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1. Access to finance

The Government recognises that access to finance is key to promoting private investment and delivering sustainable economic recovery. The Plan for Growth set out measures to help small businesses access finance. Further measures were introduced at Budget 2012 and, in September this year, the Government announced plans to create a £1bn business bank.

“The Government will...” Progress Notes 1 Make significant reforms to Enterprise Investment

Scheme (EIS) and Venture Capital Trusts (VCT), subject to State Aid Approval.

Complete Reforms have been made to the EIS and VCT schemes, including doubling of investor limits and increasing company size limits from April 2012. Final legislation was published in the Finance Bill 2011.

2 Increase the lifetime limit on capital gains qualifying for entrepreneurs’ relief to £10m.

Complete Introduced April 2011.

3 Re-notify Community Investment Tax Relief to the EU Commission.

Complete The Commission have agreed the scheme can continue under de minimis regulations, subject to amendments in Finance Bill 2013.

4 Launch the Big Society Capital. Complete Big Society Capital became fully operational in April 2012 and, over the next 4 years, will have up to £600m of capital from dormant accounts and from the 4 leading high street banks.

5 Reform the delivery of European Regional Development Funds (ERDF).

Complete All programmes met their 2011 spending targets and all of the 2007-13 English allocation has been contracted or is awaiting contracting. We have reduced liabilities for the 2000-06 ERDF programmes from £236m in August 2010 to £17m.

6 Review the UK’s regulatory framework of covered bonds.

Complete Reforms will take effect in January 2013, increasing the visibility of regulation and making it easier to understand the strengths of the UK regime compared with other regimes.

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2. Competition

Thriving, competitive markets promote growth by creating strong incentives for firms to increase their efficiency and to innovate. The UK has a well-respected and stable competition regime. The Plan for Growth announced measures to further improve competition.

“The Government will...” Progress Notes 7 Establish Competition and Markets Authority and

fold in Competition Commission and Office of Fair Trading.

Progress made

Will be fully established by April 2014. Proposals on competition reform are included in the Enterprise and Regulatory Reform Bill, expected to receive Royal Assent by spring 2013.

8 Promote greater transparency in Transfer of Undertaking (Protection of Employment) (TUPE) related liabilities.

Progress made

See no. 99.

9 Publish Shaping Competitive Markets in April 2011 to support procurement choices that encourage competition.

Complete Reforms to public sector procurement announced at Autumn Statement 2011 supersede this measure. See section 8.

10 Strip back regulation and increase transparency to make it easier for small businesses and voluntary organisations to compete for Local Government contracts.

Complete The Government published new statutory guidance on Best Value Duty and a Transparency Code of Council behaviour in September 2011, together with reforms such as Community Right to Challenge.

11 Publish in April 2011 a binding set of principles of economic regulation to provide greater certainty for long-term investors in UK infrastructure.

Complete The Government is implementing the Principles for Economic Regulation (published in April 2011).

12 Set out in April 2011 Government’s vision for consumer empowerment to explain how it will help support consumers in making better choices.

Complete The Government’s Consumer Empowerment Strategy was published in 2011.

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3. Corporate governance

The corporate governance framework can support growth by aligning incentives for investors and managers to improve company productivity, providing information to investors to encourage investment in UK companies, and increasing stability and confidence in UK markets. The Plan for Growth announced measures to reduce the burdens and costs of financial reporting and audit requirements.

“The Government will...” Progress Notes 13 Reduce number of UK SMEs and subsidiaries

required to undertake an audit. Complete The Government published the Companies and Limited Liability

Partnerships Regulations 2012, reducing the number of UK SMEs and subsidiaries required to undertake an audit for accounting years ending on or after 1 October, saving business at least £100m per year and possibly as much as £390m per year.

14 Change the law in 2012 to exempt many subsidiaries from producing audited accounts; and push the EU to exempt smallest companies from reporting requirements.

Complete See above. For the smallest companies the Micros Directive (2012/6/EU) was adopted in March 2012.

15 Call on the Office of Fair Trading (OFT) to investigate whether clauses in lending agreements made by the banks are unfairly restricting competition in the audit market.

Complete The OFT announced it would refer the market for the supply of statutory audit services for large companies to the Competition Commission. Preliminary findings are expected in January 2013.

16 Simplify narrative reporting for quoted companies.

Progress made

Amendments will come into force in October 2013, changing the reporting format, removing several reporting requirements from all companies, and requiring quoted companies to make some additional disclosures.

17 Modernise legislative framework governing mutuals.

Complete In January 2012, changes came into effect to improve the environment in which credit unions operate, including allowing credit unions to relax restrictions on membership.

18 Improve businesslink.gov.uk guidance to support business and social enterprise start-ups.

Complete Guidance has been published to help those starting up businesses to decide on the most appropriate legal structure and ownership model.

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4. Education and skills

Education and skills are vital to our future and essential to building sustainable growth and stronger communities. A skilled workforce is necessary to stimulate private-sector growth that will bring new jobs and new prosperity for people across the UK. Autumn Statement 2011 set out measures to make the education and skills system more responsive to employer needs. Autumn Statement 2012 announced additional investment in schools and Further Education.

“The Government will...” Progress Notes 19 Improve the quality of the apprenticeship

programme. Progress made

Poor provision has been removed and contracts tightened. From August 2012, the minimum Apprenticeship duration is 12 months, with limited exceptions for older apprentices. Providers are required to support apprentices to attain English and maths up to A*-C GCSE standard. Higher Apprenticeships are being expanded, with investment in new frameworks to degree level and beyond, and planned changes to regulation to incorporate new Higher Apprenticeship frameworks at Level 6 and above. The Richard Review provides wide-reaching recommendations to raise standards over the longer term, which the Government is considering.

20 Ensure every employer is able to advertise a vacancy within 1 month of deciding to take on an apprentice, have them ready to start work within 3 months, provided employers play an active role, and remove unnecessary health and safety requirements for apprenticeships.

Progress made

In order to be referred employers by the National Apprenticeship Service (NAS), providers are now required to place adverts on Apprenticeships Vacancies (AV) within 1 month. Performance will be measured through regular NAS surveys and monthly provider reports. Employers are also able to place a provisional advert onto the system within 24 hours.

21 The Government welcomed a proposal from Ofqual to work with the Office of Fair Trading and other bodies to review how well qualifications markets are operating.

Progress made

Ofqual will establish new guidelines which will prevent any activities that could undermine confidence in the exam system. 3 projects will conclude in May 2013.

22 Route public investment in skills directly to employers to allow them to purchase the vocational training they need through a new

Complete 35 projects were successful in the first round, securing £70m of public funding, and £99m of private investment. 2 further successful city bids from Round 1 of the Employer Ownership

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pilot fund of up to £250m. In early 2012, employers will be invited to bid for a share of the fund.

Pilot in Liverpool and Manchester will take the total amount allocated to around £87m over 2 years, leveraging £115m from employers. A second round of the competition was launched in November 2012. The overall budget has been increased from £250m to £340m.

23 Publish destination information at ages 16 and 18 from spring 2013 to encourage schools’ focus on young people’s futures beyond school, as well as attainment.

Progress made

Education Destination Measures were published for the first time in July 2012. These show the percentage of students continuing their education in school, Further Education or 6th form college or Higher Education institution, and the percentage training through an apprenticeship or work-based learning: Destinations of Key Stage 4 and Key Stage 5 pupils – Data, research and statistics. The Government now aims to publish education and employment destinations in June 2013.

24 Invest £4.5m over the next 2 years to support work experience as part of post-16 learning; work with the Federation of Small Businesses and other employer groups to review regulation impacting on work experience by the end of December 2011; and publish a guide to address common misconceptions about work experience.

Progress made

The Government has removed requirements to carry out CRB checks on employees who manage or work with students on work experience in July 2012. The barred list check change is likely to come into effect in 2013. The work experience pilot is in its second phase and will be evaluated by the National Foundation for Educational Research. The final report will be published in autumn 2013.

25 A group of Science, Technology, Engineering and Mathematics (STEM)-focused Sector Skills Councils will lead an industry group to kite-mark courses, helping students better understand which courses are valued by employers.

Progress made

Where professional accreditation exists, Sector Skills Councils (SSCs) will not now be expected to facilitate the kite-marking of individual courses, but to work with professional bodies on accreditation. Where there is no professional accreditation, SSCs are leading further work to establish the best way forward.

26 Create improved careers information portal as part of National Careers Service from April 2012. As part of Youth Contract, additional £4.2m over 3 years to be provided so service can provide careers interviews for 18–24 year olds within 3

Complete The new National Career Service was launched in April 2012. Information and advice will be provided through a combination of face-to-face meetings, a new interactive website, and helpline. The number of 18-24 year olds unemployed for 6 months or less receiving careers interviews, increased by 11,800.

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months of being on Jobseeker’s Allowance. 27 Launch ‘HE Global’, an online portal providing

information and advice to higher education institutions on expanding abroad.

Complete HE Global is now offering its services through a website, telephone help-line and dedicated email address.

28 Invest £10m over 5 years from 2013-14 in Project Enthuse, matched by investment from the Wellcome Trust, to improve quality of science teaching in schools.

Progress made

Work on Project Enthuse is ongoing, with the Government and the Wellcome Trust on track to have the new funding structure in place from April 2013.

29 Offer undergraduates access to mentoring support drawn from the existing network of STEM Ambassadors.

Progress made

A pilot started in September 2012 to investigate how STEM ambassador mentoring can be most effective. Career networking sessions with STEM Ambassadors took place in October.

30 Reform adult basic literacy and numeracy provision by piloting a new funding method for the providers of courses.

Progress made

Pilots started in September 2012, involving several providers. The project will run during the academic year 2012-13. An external evaluator has been appointed.

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5. Infrastructure

High quality infrastructure is essential if the UK is to remain competitive. To make the UK’s infrastructure fit for the 21st century, Autumn Statement 2011 announced a significant package of measures to facilitate investment in the UK’s infrastructure. An updated National Infrastructure Pla has been published alongside this Autumn Statement. n

“The Government will...” Progress Notes 31 Prioritise the 40 key infrastructure projects. Progress

made An updated National Infrastructure Plan has been published alongside this Autumn Statement.

32 Publish a consultation on an aviation strategy in March 2012, which will explore all the options for maintaining the UK’s aviation hub status with the exception of a third runway at Heathrow.

Progress made

The Aviation Policy Framework Consultation (APF) will set out the high-level policy against which any specific proposals for new airport capacity will need to be considered. It will be finalised in March 2013, following consultation this year. The Government has set up an independent Airports Commission, which will publish an interim report by end 2013, and a final report in 2015, recommending how the Government should maintain the UK’s status as an international aviation hub.

33 Pilot reviews during the design and engineering phase to consider what opportunities for interdependencies may exist in major infrastructure projects.

Progress made

The Government is working with University of Bristol and UCL to develop an Interdependency, Planning & Management Framework which is currently being tested against High Speed 2, the A14 upgrade, Lower Thames Crossing and Northern Line Battersea extension. Final results are due to be delivered in spring 2013.

34 Clear planning cases in the infrastructure planning backlog within 3 months once they are ready for a decision.

Progress made

Since November 2010, over 40 per cent of all Transport cases have been cleared. Cases cleared since March 2012 include improvements to the Chiltern Railways (Bicester to Oxford). Over 75 per cent of Energy cases have been cleared.

35 Invest £25m to help bus companies and local authorities in England buy new low carbon buses.

Complete £29m was paid to winning bus operators and local authorities. The funded buses are scheduled to come into public service by summer 2013.

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36 £10m will be made available to fit pollution reduction technology to London buses. £5m will be provided by Government and £5m by Transport for London.

Progress made

Retrofitting will start this month. Some retrofitted buses from the pilot are already in service. 200 London buses operating on 48 routes will be retrofitted with pollution abatement equipment by March 2013.

37 Make enhancing alternative dispute resolution mechanisms an additional priority in pushing the EU for a digital single market, in order to overcome barriers to e-commerce and the electronic distribution of goods to Europe.

Progress made

EU legislative proposals on Alternative Dispute Resolution for consumer disputes are expected to be adopted in early 2013. The Government is working to ensure that the final package realises the potential digital single market benefits.

38 Write-down £150m of debt on the Humber Bridge, allowing tolls to fall from £3.00 to £1.50 for cars.

Complete In the first 6 months of reduced tolls, 235,000 additional vehicles used the Humber Bridge, an increase of 7.4 per cent over the same period in 2011.

39 Invest £5m to set up a nationwide taskforce to target metal thieves and scrap metal dealers who illegally trade in stolen metal.

Complete UK wide taskforce became operational in January 2012. The Association of Chief Police Officers report the taskforce contributed towards a 38 per cent reduction in metal theft offences this year – potentially reducing costs to the UK from metal theft by £83m per year. Cash payments for scrap metal are now prohibited.

40 Devolved Administrations receive Barnett consequentials to invest in infrastructure priorities.

Complete Additional budget allocations have been provided.

41 £50 m will be made available to replace the Caledonian Sleeper Service.

Complete The Caledonian Sleeper franchise specification will be published in early 2013. Upgrades to the network infrastructure were included in the Scottish ministers’ High Level Output Specification (HLOS) published in June 2012.

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6. Low carbon

Globally, the low carbon and environmental goods and services sector, including renewable energy, carbon markets and environmental consultancy, was worth £3.3 trillion in 2010-11. The UK market ranks sixth, worth £122bn, with over 50,000 companies employing 940,000 people. As the global market expands, there is potential for UK firms to capture international markets and increase exports.

“The Government will...” Progress Notes 42 Introduce a carbon price floor for electricity

generation from 1 April 2013, to encourage investment in low-carbon power.

Complete Enacted in the Finance Act 2011. Finance Act 2012 enabled Carbon Price Floor relief to be applied to carbon capture and storage technologies.

43 Scrap the unnecessary plans for a new Carbon Capture and Storage levy.

Complete Carbon Capture and Storage (CCS) levy was scrapped. The CCS Commercialisation Programme launched in April 2012. In October, 4 shortlisted bidders were announced. In November, £20m was announced for 13 projects to reduce the cost of CCS so it is competitive with other forms of low-carbon generation.

44 Cap the cost of policies funded through energy bills.

Complete Levy Control Framework (LCF) ensures Government achieves energy and climate change goals in a way that minimises impacts on bills. A funding cap on low carbon generation to 2020 has been agreed. Up to £7.6bn will be provided in 2020-21.

45 Support the infrastructure development needed to enable the transition to a green economy through the Green Investment Bank.

Complete Green Investment Bank became operational in October, funded with £3bn to commit before April 2015, £180m of which is already committed to waste and energy efficiency projects.

46 Promote development of new markets in green goods and services.

Progress made

The Smart Meters programme is progressing well. The next round of data and communications services bids is due in December 2012. The Government is consulting on a draft legal text for the first stage of the Smart Energy Code. Feed In Tariffs have been reviewed and the scheme has been reformed to support the small-scale distributed energy industry. Parts of the Green Deal market are already operational, including the £125m Green Deal Cashback scheme. The Renewable Heat Incentive scheme opened for non-domestic users in November 2011 and published proposals for extending the scheme to domestic users in September 2012.

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7. Planning

The Plan for Growth and Autumn Statement 2011 announced radical changes to the planning system to support job creation and growth. By creating a planning system supported by powerful financial incentives that makes the right land available in the right place for development, it will deliver commercial development, vital infrastructure and housing that the country needs.

“The Government will...” Progress Notes 47 The Secretary of State for Communities and Local

Government will make a Written Ministerial Statement in March 2011, setting clear expectations that local planning authorities and other bodies involved in granting development consents should prioritise growth and jobs.

Complete See 48 and 49 below.

48 Introduce a powerful new presumption in favour of sustainable development, so that the default answer to development is ‘yes.’

Complete National Planning Policy Framework published in March 2012 and immediately came into force for plan-making and decisions. Support has been provided to local authorities to help get plans up to date quickly. 51 Local Plans have been adopted since May 2011, compared to only 100 over the previous 7 years.

49 Produce a shorter, more focused and inherently pro-growth National Planning Policy Framework.

Complete The National Planning Policy Framework published in March 2012, replacing over 1,300 pages of policy with a 49 page document. It includes a presumption in favour of sustainable development, sending a strong signal to councils to plan positively for new development. The rate of approval of planning applications is now at a 10 year high of 87 per cent, with higher approval rates of around 90 per cent for major commercial and business development. The number of decisions during the last quarter was also up by comparison with the previous 2 years.

50 Enable businesses to bring forward neighbourhood plans and neighbourhood development orders.

Progress made

A number of areas have started business-led neighbourhood planning, including Trafford Park, Liverpool Innovation Park, Uppingham, Bankside and Milton Keynes.

51 Pilot a land auctions model, starting with public sector land.

Progress made

Homes and Community Agency are working with local authority partners in Hastings, West Lancashire and Richmondshire to get

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12 pilot sites to market to test if the land auction model can deliver value for communities and reduce risk for housebuilders.

52 Localise choice about the use of previously developed land, removing nationally imposed targets.

Complete The National Planning Policy Framework removed the nationally imposed target for 60 per cent of housing development to be on previously developed land. Local planning authorities may continue to consider the case for setting a locally appropriate target for the use of brown field land.

53 Consult on proposals to make it easier to convert commercial premises to residential.

Complete After consultation, Government brought forward a policy to support change of use of commercial buildings to residential use in the National Planning Policy Framework. We have also announced an intention to bring forward permitted development rights for change of use from office to residential use.

54 Introduce a number of measures to streamline the planning applications and related consents regimes removing bureaucracy from the system and speeding it up. This will include a 12 month guarantee for the processing of all planning applications, including any appeals.

Progress made

Proposals to streamline information requirements were published for consultation in July 2012. Any subsequent changes are likely to be brought forward by early 2013. An initial monitoring report on performance against the planning guarantee was published in September 2012. The Government will shortly consult on further proposals for implementing the guarantee.

55 Ensure a fast-track planning process for major infrastructure applications through the Major Infrastructure Planning system.

Complete Localism Act abolishes the Infrastructure Planning Commission, returning decisions over major infrastructure projects to Ministers. The Nationally Significant Infrastructure planning regime is bringing benefits through streamlined processes.

56 Legislate to introduce a duty on local authorities and public bodies to require them to co-operate on planning issues.

Complete Localism Act introduced a duty on local authorities and public bodies to co-operate on planning issues. Regulations came into force in April 2012. Support is available to local authorities from the Planning Inspectorate and Planning Advisory Service.

57 Ensure key consenting and advisory agencies have a remit to promote sustainable development as soon as the National Planning Policy Framework is finalised. The Government will also introduce a 13-week maximum

Progress made

English Heritage, the Environment Agency, the Health and Safety Executive, the Highways Agency and Natural England have published improvement plans setting out their remit for sustainable development. These also set out their commitment to meet the 13-week timescale. All agencies have demonstrated

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timescale for the majority of non-planning consents, to speed up the consenting process and give certainty to developers. This will take immediate effect for Government agencies.

they are meeting or exceeding this.

58 Ensure there is a more effective mechanism for applicants to obtain an award of costs, if there is an appeal against refusal of planning permission where a statutory consultee has acted unreasonably, through measures to be implemented in summer 2012. By spring 2012, improve the performance of key statutory consultees, including key statutory bodies, in responding swiftly to applications.

Progress made

Consultation on proposals to amend the award of costs policy took place in summer 2012. An amendment to the award of costs circular will be brought forward in December 2012. All 5 key statutory bodies produced draft improvement plans in 2012 and 3 finished plans have since been published.

59 Build more flexibility into the major infrastructure planning regime, particularly in working with developers in the pre-application phase. These improvements will be implemented by summer 2012.

Progress made

The Government consulted on a “light touch review” of guidance for the Nationally Significant Infrastructure regime, including on pre-application engagement, associated development and examination procedures.

60 Ensure that compliance with the Habitats and Wild Birds Directives does not lead to unnecessary costs and delays to development, while continuing to support the Directives’ objectives.

Progress made

The Government published its review of implementation of the Directives in March 2012 and has now completed 13 of the 28 measures set out in the Habitats and Wild Birds Directives Implementation Review, including: establishing the Major Infrastructure and Environment Unit to resolve issues relating to the Directives for high priority projects; and consulting on guidance so businesses and regulators are clear on the requirements of the Directives.

61 Review planning appeals procedures, to make the process faster, more transparent, improve consistency and increase certainty of decision timescales.

Progress made

The Government published a consultation paper on proposals for an improved planning appeals process in November 2012 with responses required by December 2012. Any changes arising from the consultation are likely to be brought forward by July 2013.

62 Consult on a proposal to allow the Complete Consultation on planning obligations closed on 8 October 2012.

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reconsideration of those planning obligations agreed prior to April 2010 where development is stalled.

Subject to the outcome of consultation the Government intends to bring forward revised regulations early in 2013.

63 Consult on proposals to allow existing agricultural buildings to be used for other business purposes such as offices and retail space, to make it easier for rural businesses to find the premises they need to expand.

Complete The Government consultation closed on 11 September 2012. The responses are being reviewed, with any changes agreed likely to be brought forward by April 2013.

64 Introduce new permitted development rights for non-domestic micro-generation of electricity. This will incentivise the take up of small scale renewable and low carbon energy technologies.

Complete New regulations introducing these permitted development rights came into force in April 2012 with an agreement to review their operation after two years.

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8. Public sector procurement

The Autumn Statement 2011 announced measures to improving visibility and certainty of public sector purchases, to allow businesses to plan their investments in plant, machinery and people, and to deliver better value for taxpayers’ money. The Government aims to deliver 25 per cent of public sector procurement spending through SMEs by the end of this Parliament.

“The Government will...” Progress Notes 65 Building on publication of forward procurement

plans for construction, wider infrastructure, information and communications technology and facilities management, publish medium-term plans setting out its procurement needs for other sectors by April 2012. This will give suppliers the confidence to invest for the future and compete on a level playing field.

Complete 13 procurement pipelines were made public in April 2012 and updated in October 2012. 4 further pipelines, in the professional services, financial services, waste management and fire services sectors, were announced in November 2012. The 17 published pipelines provide forward visibility of Government business opportunities over the next 5 years worth approximately £84bn.

66 Make better use of pre-procurement dialogue with suppliers to ensure procurement processes are well designed and quickly carried out, identifying capability gaps in the supply chain that need to be addressed to meet future demand and taking action to remove barriers to growth.

Complete The Government published three assessments in 2012 of how future capability requirements could be met though developing skills, increasing apprenticeships and training: Building Information Modelling, Renal Care and Tunnelling. To complement the LEAN sourcing approach (no. 68), new techniques have been trialled to encourage pre-procurement dialogue.

67 Introduce a presumption against the use of the competitive dialogue procurement process unless it can be demonstrated that it delivers value for money.

Complete Presumption announced in November 2011 and applied to new Government procurement processes. The Open procedure is now the default route to market for all but the most complex procurements, increasing competition and participation from a diverse range of suppliers.

68 Complete all but the most complex procurement processes within 120 working days by introducing LEAN sourcing process from January 2012, training public sector procurers to use this.

Complete The LEAN sourcing standard was published in January 2012 and a programme of training is being rolled out. Procurement turnaround times are reducing and buying behaviour changing.

69 Terry Hill (Chair of the Arup Board of Trustees) Complete The Industry Standards Group published their Specifying

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will lead an industry standards group in the infrastructure sector to examine the simplification of procurement specifications and the removal of unnecessary technical standards, to report back to the Government on initial progress by spring 2012.

Successful Standards report in July 2012. This contains a series of recommendations for transport and wider infrastructure sectors.

70 Ensure that the bundling of contract and subcontract packages in procurement offers enhanced opportunities for SMEs.

Complete Cabinet Office controls exist for certain categories of spending, e.g. ICT, to encourage contract size/shape to suit SMEs. Government Departments are due to submit plans to Cabinet Office in December 2012 on their performance in increasing procurement opportunities for SMEs. Stephen Allot, the Crown Representative for SMEs, will assess departmental progress against Government’s 25 per cent SME aspiration and report back in spring 2013.

71 Extend the use of Project Bank Accounts (currently being piloted on construction projects) as a means of ensuring both certainty and speed of payment to SMEs.

Complete There has been a sustained increase in the use of Project Bank Accounts (PBAs) within construction. The Government is on track to use PBAs for contract awards totalling £2bn by April 2013. The Government is looking to extend the use of PBAs to facilities management.

72 To reduce burdens on business, negotiate in the EU for a radical simplification of the Public Procurement Directives.

Progress made

Substantial progress has been made in the negotiations to revise the EU Public Procurement Directives. The reforms are expected to be adopted in the first half of 2013. The simplification will lead to more efficient procurement and cost savings for both purchasers and suppliers.

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9. Publication of Government data

Improving access to public data has the potential to boost growth by building data and analytics markets, expanding existing market opportunities, and attracting inward investment. Measures were announced in Autumn Statement 2011.

“The Government will...” Progress Notes 73 Provide a service to link primary and secondary

healthcare datasets from September 2012 to reinforce the UK’s position as a global centre for research and analytics and boost UK life sciences.

Complete The Clinical Practice Research Datalink was launched in April 2012. The Health and Social Care Information Centre (HSCIC) launched its new Data Linkage Service in September.

74 Publish further prescribing data by September 2012 and health and social care datasets by September 2013 to support health and social care data-based product and analytics markets.

Complete See no. 166.

75 Work with the transport industry to make timetable and real-time train and bus information available by April 2012, to support development of innovative applications to improve journeys and reduce congestion.

Complete Traveline made its National Dataset of registered bus services in Great Britain and information on departures available at all 350,000 bus stops in April 2012. Network Rail opened up its real-time train running data in June 2012.

76 Consult on providing open access to rail fares data, giving passengers and business information to make the most cost-effective travel choices.

Progress made

The results of the Department for Transport Fares and Ticketing consultation are being collated and a Government response is due to be published in May 2013. The Association of Train Operating Companies have now agreed to publish bulk rail fares data from Q1 2013.

77 Legislate to give the Civil Aviation Authority the power to publish data on the performance of aviation service providers.

Progress made

On passage of the Civil Aviation Bill (Royal Assent expected end 2012), the CAA will consult airport operators and airlines with the aim of beginning to publish enhanced data by end 2014.

78 Release from March 2012 a range of highways and traffic data, including on road works, to help reduce congestion and enable business to make more predictable travel and logistics decisions.

Complete Highways Agency released data about operation of the Strategic Road network, including roadworks, congestion, current performance and access to traffic cameras. Local Highways Authorities released roadworks data through the ELGIN service that publishes data from over 80 per cent of local authorities.

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79 Consult on content of anonymised fit note data to be published from 2012 to drive innovation in the occupational health sector and improve management of sickness absence.

Progress made

The majority of GP practices in England, Scotland and Wales now have access to the electronic fit note. Roll-out to remaining practices is underway. Publication of aggregate fit note data will be available in 2013 once technical arrangements for transferring the data have been finalised. In March 2013 decisions will be made on which fit note data to publish.

80 Design the Universal Credit system so that aggregate benefits data can be published during the first year of live running of the system.

Progress made

Delivery of the system is on track to meet the welfare reform timetable with the first Universal Credit (UC) limited Pathfinder office due to go live at the end of April 2013.

81 Consider opportunities for linking welfare datasets to other government and commercial datasets to increase their value to industry.

Progress made

A new online tool to make data more accessible is being developed and pilot schemes to share data with the Office of National Statistics and Electoral Registration Officers are being explored. A Welfare Sector Transparency Board has been set up.

82 Provide up to £10 m over five years, with match-funding from industry and academia, to establish the world’s first Open Data Institute (ODI) to help business exploit the opportunities created by release of public data.

Complete The Open Data Institute was officially launched on 4 December 2012. Since October, the ODI has been working to identify how best to secure match funding and working with innovators to develop ideas around new data sets. The ODI will be co-directed by Professors Sir Tim Berners-Lee and Nigel Shadbolt.

83 Establish a Data Strategy Board and Public Data Group to maximise the value of data from the Met Office, Ordnance Survey, the Land Registry and Companies House. It will make a range of core reference datasets available free to support the development of high-value data businesses.

Complete The Data Strategy Board (DSB) and Public Data Group (PDG) are now both operational. In June 2012, Stephan Shakespeare was appointed as DSB Chair, and Claudia Arney as PDG Chair. Heather Savory was also appointed as Chair of the Open Data User Group.

84 Ensure all NHS patients can access their personal GP records online by end of Parliament. Publish new procurement arrangement for school information and learning services to improve access to education data and increase competition in learning services provision.

Progress made

The power of information (published in May 2012) sets out the ambition not only to access personal GP records online but also to book appointments and request repeat prescriptions electronically. A Stakeholder Group has been set up by the Royal College of General Practitioners to support progress. The Framework Agreement for school Management Information System suppliers has been published.

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10. Reducing regulatory burdens

The Plan for Growth and Autumn Statement 2011 announced measures to reduce the burden of regulation on businesses. Since the introduction of the Government’s One-in, One-out approach to regulation in January 2011, there has been a cumulative net reduction of regulation worth around £850m a year to business. Over 70 measures reducing regulatory burdens will have taken effect by end of 2012. In November 2012, the Government announced a One-in, Two-out approach to regulation.

“The Government will...” Progress Notes 85 Introduce a moratorium exempting micro and

start-up businesses from new domestic regulation for three years from April 2011.

Complete The moratorium was introduced in April 2011 to reduce the flow of new domestic regulations on micro and start-up businesses.

86 Scrap proposals for regulations that would have cost businesses over £350m a year to implement.

Complete The right to request time to train was not extended to businesses with fewer than 250 employees, saving businesses an estimated £350m a year.

87 Launch an extensive public thematic review to reduce the existing stock of regulation.

Progress made

In September 2012, the Government announced that, of 6,500 substantive regulations examined through the Red Tape Challenge, at least 3,000 will be abolished or reduced. 254 reforms are expected to be implemented by end 2012.

88 Make further changes to employment legislation to reduce the costs to businesses of compliance.

Complete The Government reviewed how workplace rights are enforced and decided not to pursue a single agency on enforcement.

89 Implement proposals from Lord Young’s Review of health and safety.

Progress made

Of the 36 recommendations, 23 are being implemented. The remainder will be implemented subject to Parliamentary time.

90 Move registration of the main business taxes online.

Complete Digital channels drive better services and lower business costs. “One Click” launched an online tax registration service in April 2012. This was extended in October, allowing new and growing businesses to register online for Corporation Tax, Self Assessment, VAT and PAYE for Employers. Business Tax Dashboard was launched in April, allowing businesses to keep abreast of their tax position on a single screen.

91 Launch a major focus on revising burdensome EU regulations and directives.

Progress made

The Government persuaded the European Commission to consult SMEs to identify burdensome EU legislation and address this. In March 2012, we secured agreement to exempt up to 1.4m UK

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small businesses from certain EU accounting rules. 92 Work with GSK, Balfour Beatty, Kingfisher and

Tribeka to improve European growth opportunities for UK businesses.

Complete A report was published in November 2011, and recommended 16 specific cases, highlighted by businesses, for EU regulatory reform to improve UK business growth.

93 Push the European Commission to deliver a culture change that bears down on the overall impact of EU legislation.

Progress made

The Government has set ambitious priorities for the Commission’s next Smart Regulation strategy, and secured European Parliament and broad Member State support. The Commission has strengthened its SME impact assessment procedures to mitigate disproportionate effects on micro-businesses.

94 Improve online Business Link guidance on regulation.

Complete This work has now been integrated into the new Government website, gov.uk.

95 Publish an Enforcement White Paper with plans to improve enforcement of regulations.

Complete The result of this work fed into the review of regulators measure (no. 116).

96 Increase the qualifying period for unfair dismissal from 1 to 2 years from April 2012.

Complete This was delivered in April 2012 and will provide a net business benefit of £4.7m per year.

97 Require all potential claimants to submit their employment tribunal claim to the Advisory, Conciliation and Arbitration Service so that early conciliation can take place.

Progress made

The early conciliation measure is included in the Enterprise and Regulatory Reform Bill, which is expected to receive Royal Assent by spring 2013. The published impact assessment shows that this policy involves net business benefits of £33m per year.

98 Look at whether and how a “Rapid Resolution” scheme to provide quicker, cheaper determinations in low-value, straightforward claims could be introduced as an alternative to the current employment tribunal process.

Progress made

The Government is discussing possible options with stakeholders and will consult on any proposals in due course.

99 Launch a call for evidence on the effectiveness of the Transfer of Undertakings (Protection of Employment) (TUPE) regulations.

Progress made

A consultation on TUPE will be published in December 2012.

100 Call for evidence on collective redundancy rules, including consequences of reducing 90-day consultation period for over 100 redundancies to

Progress made

The Government has consulted on proposed changes to the collective redundancy rules, and will respond to this consultation by January 2013.

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60, 45 or 30 days. 101 Mr Justice Underhill will lead a fundamental

review of employment tribunal Rules of Procedure. The Government will change the rules on witness statements and expenses, cost and deposit orders and judges sitting alone in unfair dismissal cases.

Progress made

The Government’s consultation on these recommendations closed in November 2012. The Government plans to present a revised set of employment tribunal rules to Parliament by April 2013. The consultation impact assessment suggested up to £200k net business benefits per year. The impact assessment will be updated in light of the consultation.

102 Work with industry and key stakeholders to change attitudes to mediation and embed it as an accepted part of dispute resolution process.

Progress made

The Government launched a mediation pilot in Manchester and Cambridge, delivered by Consensio, the mediation provider.

103 Introduce provision for employment tribunals to levy a financial penalty on employers found to have breached employment rights, but allow judges the discretion about whether to exercise this power to ensure that employers are not penalised for inadvertent errors.

Progress made

This measure is included in the Enterprise and Regulatory Reform Bill, expected to receive Royal Assent by spring 2013.

104 Develop a model agreement for use by smaller businesses, consult on a legislative change to enable compromise agreements to cover all existing and future claims, and rename agreements as “settlement agreements”.

Progress made

Settlement Agreements are being taken forward through the Enterprise and Regulatory Reform Bill, expected to receive Royal Assent by spring 2013. The consultation on tools and guidance to facilitate the use of Settlement Agreements in the “Ending the Employment Relationship” closed on 23 November 2012.

105 Subject to consultation, introduce a system of “protected conversations” which will allow employers to have a conversation about any employment issue with their employees.

Complete The Government is not taking forward “protected conversations”, but is seeking to facilitate the increased use of Settlement Agreements (see above), which will give legal cover for having honest conversations about dismissal.

106 Publish consultation on introduction of fees for anyone wishing to take a claim to an employment tribunal.

Complete The Government responded to the consultation. Employment tribunal fees are due to be implemented summer 2013.

107 Begin a call for evidence on 2 proposals for radical reform of UK employment law.

Complete Following the call for evidence, the Government announced we would not proceed with compensated no fault dismissal. We considered the Acas Code of Discipline and Grievance and

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committed to improve guidance on dismissal processes by summer 2013.

108 Consult in spring 2012 on streamlining the current regulation of the recruitment sector.

Progress made

A consultation will be launched in December 2012.

109 Work to remove common misconceptions about burdens of employing staff for sole traders considering taking on their first employee.

Progress made

Phase 1 of the “Taking on an Employee” online tool launched in April 2012. Phase 2 is due to be completed by April 2013.

110 Examine paperwork obligations of Agency Worker Regulations to ensure arrangements for employers are as simple as possible.

Progress made

On track to launch in June 2013.

111 Close loophole in Public Interest Disclosure Act 1998, which enables employees to blow the whistle about breaches to their work contract.

Progress made

This measure is included in the Enterprise and Regulatory Reform Bill, expected to receive Royal Assent by spring 2013.

112 Merge current body of National Minimum Wage regulations into a single set of consolidated regulation to complement work of the Low Pay Commission to simplify the current regime.

Progress made

A draft set of consolidated regulations will be produced by March 2013.

113 Deliver universal portability of Criminal Records Bureau checks with an immediate checking service for employers available online from 2013.

Progress made

Online service on track for launch in early 2013.

114 Consider recommendations of Frost/Black Independent Review of Sickness Absence and respond in 2012.

Progress made

The Government response will be published in December 2012.

115 Publish a report which includes 16 specific cases, highlighted by businesses, for EU regulatory reform to improve UK business growth.

Complete The report was published in November 2011 and presented to EU policy-makers.

116 Launch a review of regulators; extend the Primary Authority scheme; impose sunset clauses on new regulators; and move towards greater co-regulation and earned recognition.

Progress made

7 Focus on Enforcement reviews have been launched. Regulators are being invited to suggest different enforcement methods to free up businesses, and stimulate growth. Legislation to expand eligibility for the Primary Authority scheme is included in the Enterprise and Regulatory Reform Bill.

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117 Take forward the recommendations in Professor Löfstedt’s review of health and safety regulation.

Progress made

7 unnecessary statutory instruments have been revoked with a further package of measures on track for removal by 2013.

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11. Trade and investment

The Prime Minister has set ambitious targets to double UK exports to £1 trillion a year by 2020. The Plan for Growth announced measures to support UK exporters, and attract and facilitate investment in the UK. Autumn Statement 2012 announced further measures to boost UK trade and inward investment.

“The Government will...” Progress Notes 118 UK Trade & Investment (UKTI) will develop a

more entrepreneurial culture which makes better use of private sector expertise and talent with a clear focus on winning business for UK firms.

Progress made

Inward investment and trade services across England are now delivered via private sector incentivised contracts. A new UKTI senior management team is in place, with 75 per cent recruited from the private sector.

119 Provide a bespoke service to key inward investors giving them direct access to UK Ministers and speedy resolution of bureaucratic obstacles to investment. This will support a major drive to encourage investment in economically significant projects.

Complete UKTI aims to keep the UK as the number one FDI destination in Europe, and double the UK’s stock of inward investment to £1.5 trillion by 2020. Inward investment in 2011-12 by 1,400 companies safeguarded or created more than 112,000 jobs. UKTI has a target of attracting £4.5bn of investment into infrastructure and regeneration projects by 2015, and is aligning its efforts with the UK’s Industrial Strategy priority sectors.

120 UKTI will deliver a new package of support to help SMEs with an ambition to break into overseas markets.

Complete UKTI introduced a range of services and tools to support SME exports and expansion into new markets. UKTI supports SMEs attending trade missions abroad and offers discounts on their paid for services. National Export Week in November 2012 delivered over 100 events across the UK aimed at SMEs.

121 Use the Foreign and Commonwealth Office (FCO) and UKTI to provide UK businesses with local intelligence on high value projects overseas and intensive support to win these deals.

Complete The High Value Opportunities (HVO) programme identifies, prioritises and supports businesses to access large scale overseas procurement contracts. Since the launch of HVO the UK has won over £1.5bn of contracts.

122 In EU negotiations, press for opening of market access overseas in areas of UK strengths, in particular the service sector.

Progress made

The UK supports the EU’s programme of modern and deep Free Trade Agreements (FTA) to open up markets for British companies. An FTA with Korea came into force in 2011. EU exports to Korea rose 35 per cent overall after implementation,

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and 46 per cent in sectors where tariffs were fully eliminated. 123 Working closely with business, UKTI will identify

opportunities and barriers faced by UK companies operating in high-growth markets and ensure that the UK’s diplomatic resources and ministerial visits focus on eliminating these barriers to trade.

Progress made

FCO and UKTI are strengthening their focus and resources in higher growth markets (FCO staff up by 8 per cent, UKTI by 25per cent). The Prime Minister announced 8 new trade envoys to enhance trade support in 20 priority markets in November 2012. Visits to emerging powers increased 50 per cent in the second half of 2012.

124 To address demand for short-term trade credit insurance, the Export Credits Guarantee Department (ECGD) has extended the eligibility of its existing short term credit insurance policy, the Export Insurance Policy.

Complete

Since March 2011, UK Export Finance (formerly ECGD) issued 33 insurance policies for 25 exporters (17 SMEs), worth £48m. Offers in support of a further £6m of UK exports have been made. Eligibility for the Export Insurance Policy has been extended.

125 Make permanent 2 facilities introduced in response to the financial crisis: the Letter of Credit Guarantee Scheme and allowing UKEF’s guarantees to be used to raise long-term finance in capital markets for UK exports.

Complete In July 2012, the Chancellor announced up to £5bn export refinancing would be available to support UK exporters by ensuring that overseas buyers have the long-term funding they need.

126 Provide further support to exporters, particularly SMEs, by working with banks to ensure a successful implementation of three new Export Credits Guarantee Department products: a bond support product, export working capital product and foreign exchange credit support scheme.

Complete Since their launch in March 2011, guarantees have been offered to 16 exporters (12 SMEs) on 58 contract bonds worth £166m. Offers have been made for a further 36 bonds on exports worth £114m for 16 exporters. The Export Working Capital Scheme supported 2 exporters on contracts worth over £20m. Offers on a further £8m of export contracts have also been made.

127 Launch the Export Enterprise Finance Guarantee (ExEFG) and promoting its use to SMEs.

Complete Following review, the scheme closed and was amalgamated with UK Export Finance (UKEF) products. UKEF removed the lower limits of support on finance guarantee products, making them available to exporters who qualified under ExEFG.

128 UK Border Agency (UKBA) will implement a single point of contact for all traders, with lead officials at ports and airports whom they can contact in the event of delays and issues related to Government Departments.

Complete Border Force significantly streamlined and automated their approach in 2012. UKBA provides an automated International Trade Single Window import clearance process for plant health controlled goods, incorporating Automated Licence Verification (ALV) which has improved information and speed.

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12. Advanced manufacturing

The UK’s share of manufacturing is similar to France and the USA (around 11 per cent). The Government works closely with manufacturers and their supply chains, and is taking steps to strengthen and grow modern manufacturing in the UK by encouraging innovation, business investment, technology commercialisation, skills and exports.

“The Government will...” Progress Notes 129 Extend the capital allowances short life asset

regime for plant machinery from 4 years to 8 years, from April 2011.

Complete Effective from April 2012, the measure improves cash flow and helps bring forward capital investment (including automation & advanced process technology).

130 Expand the University Technical Colleges (UTCs) programme, to establish at least 24 new colleges by 2014.

Complete On course to exceed 24 new UTCs by September 2014. 5 UTCs are open. A further 28 are in the pre-opening phase and plan to open in September 2013 and September 2014. Applications for a further round of new UTCs have been received. Successful applicants will be announced by spring 2013.

131 Launch a High Value Manufacturing (HVM) Technology and Innovation Centre.

Complete The HVM Catapult is part of a network of 7 world-leading Catapult Centres. All 7 centres have been announced.

132 Fund 9 new university-based centres for Innovative Manufacturing by 2012.

Complete The £61.5m portfolio of Engineering and Physical Sciences Research Centres (EPSRC) is supported by 165 companies. It will link with relevant Catapult Centres to help business access state of the art research and technologies. 12 centres have been established. Applications for more Centres were invited in January 2012 and will be announced in 2013.

133 Fund a programme of new Manufacturing Fellowships.

Complete EPSRC selected 4 Manufacturing Fellows to each lead a £1m high tech manufacturing research programme. Decisions on a second call are expected by April 2013.

134 Launch an enhanced Manufacturing Advisory Service.

Complete Over 1,000 business improvement consultancy projects have completed since the launch. Businesses receiving the support forecast 3,500 jobs could be created, 9,800 safeguarded and £300m gross value added in the year following the intervention.

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135 Launch a new £75m programme of targeted support to help smaller employers access Advanced Level and Higher Apprenticeships.

Complete £25m funding has been allocated to 30 projects to provide over 20,000 new Apprenticeships over this Parliament. All frameworks should be developed by April 2013. A third of the projects will benefit manufacturing and engineering industries.

136 Support the development of a new degree-equivalent Higher Level Apprenticeship.

Complete Sector Skills Council for Science, Engineering & Manufacturing Technologies (SEMTA) issued the framework for a Higher Apprenticeship in Advanced Manufacturing. The first candidates started in September 2012.

137 Strengthen its strategy for promoting science, technology, engineering and maths (STEM) skills.

Complete In June 2012 there were over 850 STEM Ambassadors. Since September 2012, schools are under a duty to secure access to independent and impartial careers guidance.

138 Launch a high profile industry showcase alongside the 2012 Olympic and Paralympic Games and roll out of a programme of “Made in Britain” exhibitions.

Complete Over 40,000 visitors saw the Make it in Great Britain exhibition at the Science Museum celebrating the best of the UK’s cutting edge manufacturing, which ran concurrently with the Olympics.

139 Seek to promote a new international prize in engineering, working with private sector partners to create an endowment to support such a prize

Complete The Queen Elizabeth Prize for Engineering was launched in November 2011 to reward and celebrate up to three individuals responsible for a ground-breaking innovation in engineering that has been of global benefit to humanity. Winners of the £1m prize will be announced in March 2013.

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13. Construction

The Plan for Growth announced measures to lead directly to a requirement for new construction e.g. as a result of increased inward investment and the opening up of more land for development.

“The Government will...” Progress Notes 140 Publish UK’s long term forward view of projects

and programmes as part of National Infrastructure Plan 2011.

Complete The National Infrastructure Plan was published in November 2011. An updated National Infrastructure Plan and construction pipeline has been published alongside this Autumn Statement.

141 From autumn 2011, publish quarterly, rolling 2 year forward programme of infrastructure and construction projects where public funding agreed.

Complete Following consultation with industry the construction pipeline will in future be published 6 monthly, in line with pipelines for other sectors.

142 Reform public sector procurement process for construction and infrastructure to reduce costs by up to 20 per cent.

Progress made

The Government Construction Strategy “One Year On” Report was published in July 2012 to record both the progress made in implementing the Strategy and planned next steps. As Government reforms the way it procures construction and reduces costs, savings made will be available to Government Departments to allow other priority projects to proceed.

143 Support over 10,000 first time buyers to buy a home through a FirstBuy programme.

Progress made

Housebuilders have reported significant interest from first time buyers, including over 8,500 reservations as at end of October 2012. Official statistics released in November show that there have been 6,780 sales in the first 13 months of the scheme. The Government has announced further investment of £280m, which will be matched by housebuilders, to help up to 16,500 additional first time buyers into home ownership by spring 2014.

144 Accelerate release of public sector land to encourage new homes and jobs.

Progress made

In May 2012, the Housing Minister announced public land with capacity for 102,000 homes had been identified. In September 2012, further measures were announced to support release of public land. Further details included in the Autumn Statement.

145 Strengthen demand for residential property by Complete The reform of stamp duty land tax rules was introduced in the

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reforming the stamp duty land tax rules applied to bulk purchases.

Finance Act 2011.

146 Introduce measures to remove barriers to entry for new Real Estate Investment Trusts.

Complete The measures were enacted in the Finance Bill 2012 and received Royal Assent this year. The major reforms included: abolition of the 2 per cent conversion charge, relaxation of the listing requirement, 3 year grace period for diverse ownership rules, and diverse ownership rule. There were also minor technical measures to reduce administrative burdens.

147 Review construction standards and codes, to take out redundancy and duplication where costs outweigh benefits.

Progress made

Industry Standards Group published their report Specifying Successful Standards on 9 July 2012, with a series of recommendations for transport and wider infrastructure sectors.

148 Announce regulatory requirements for zero carbon homes, to apply from 2016, and hold house builders accountable only for carbon dioxide emissions covered by Building Regulations.

Progress made

The consultation on potential regulatory changes in 2013, to act as an interim step towards achieving zero carbon standards, closed in April 2012. We are currently considering responses to this consultation.

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14. Digital and creative industries

Measures were announced in the Plan for Growth to put in place infrastructure, skills, finance, copyright, and fit for purpose regulation to help digital and creative industries realise their growth potential and compete in a competitive global market.

“The Government will...” Progress Notes 149 Deliver a package to support deployment of and

access to the UK’s broadband digital infrastructure.

Progress made

The Government announced measures to enable more efficient deployment of broadband infrastructure, to be delivered by summer 2013. These include streamlining planning requirements for roll-out on public and private land, guidance on street works and resolving power supply issues, supporting Government’s £530m investment in delivery of UK-wide, superfast, rural broadband. Budget 2012 announced a £50m competitive fund to support access to ultrafast broadband connectivity and fixed wireless networks for a second wave of super-connected cities. Winning cities were announced in this Autumn Statement. The first wave of cities is expected to deliver ultra-fast broadband to 1.7m premises and 200,000 businesses, with access to wireless networks for an additional 3m residents by 2015.

150 In response to Hargreaves’ recommendations, due in April 2011, consider simplifying payments for copyright materials and freeing up orphan works. The Government commits to no further broad reviews of the intellectual property rights regime during the lifetime of this Parliament.

Progress made

Provisions allowing for orphan works and for operation of extended collective licensing (ECL) schemes are included in the Enterprise and Regulatory Reform Bill. These will simplify the licensing process for the legitimate use of works. Richard Hooper was appointed to lead a feasibility study into a Digital Copyright Exchange and published his final report in July 2012. This made recommendations to simplify copyright licensing, including the establishment of an industry-led Copyright Hub based in the UK but linked to the growing international network of digital copyright exchanges, rights registries and other copyright-related databases.

151 Through the Intellectual Property Office (IPO), improve range of products and services available

Progress made

On 7 November 2012, the IPO outlined plans to ensure SMEs can access advice and support to understand and maximise the value

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to support UK businesses, particularly SMEs, on issues relating to intellectual property. IPO will establish network of attachés covering key global markets.

of intellectual property to their business. Specialist IP attachés now operate in China, India and Brazil providing practical support to UK businesses and improving UK influence overseas; SE Asia follows shortly.

152 Publish a guide to public sector intellectual property procurement policy.

Progress made

This is being considered as part of a Cabinet Office led review into Government’s commercial terms, which will conclude in March 2013.

153 Substantially reduce the burden placed on business by the communications and media regulatory framework.

Progress made

Responses to the review of the legislative and regulatory framework for the UK’s communications sector has made clear that a legislative overhaul is not needed, but there are some areas that require further analysis. We will be setting out our vision and policies for the sector in a white paper in early 2013.

154 Reduce the requirements for live music to be licensed. The Government will also bring forward proposals to reduce licensing burdens on other forms of entertainment such as theatre, cinema and indoor sport.

Progress made

The Live Music Act 2012 (LMA) came into force in October 2012 and associated guidance under the Licensing Act 2003 was put before Parliament and is also in force. It was estimated that the LMA would produce a net benefit to society of £9.5m over a 10 year period.

155 Reduce the proposed extension of legal deposit requirements to online publications.

Progress made

Government response to consultation on non-print legal deposit issued in September 2012. The revised regulations no longer include an obligation to deposit online publications that cannot be obtained via a web harvesting process. This will reduce costs to publishers. Regulations due to come into force in April 2013.

156 Re-notify film tax relief to the European Commission.

Complete This measure is demonstrating impact.154 British films received final certification from January to September 2012, with UK spend on film production during this time £764.8m.

157 Welcome exploration by the BBC of how BBC Worldwide may act as a source of finance and distribution expertise for UK digital and creative industry firms with global ambitions.

Complete BBC Worldwide continues to work with the BBC and the UK independent production sector, selling programmes and formats from more than 200 UK independent producers to overseas markets in 2011-12. BBC Worldwide has shared its expertise with creative industry talent via its Future Formats scheme and through its BBC Worldwide Labs initiative, which offers

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workspace and advice for some of the most dynamic emerging digital media and technology companies in the UK.

158 Support the establishment by industry of a Creative Industries Council, which can provide a voice for the sector with the financial community and coordinate action on barriers to growth.

Complete The next Creative Industries Council will meet on 31 January 2013. The Creative industries Council has delivered key reports on Skills (see no. 160) and Access to Finance. The Council will continue to play a major role in supporting the creative industries. It is well placed to provide a link between industry and Government, and across various public bodies.

159 Through UKTI, develop a marketing plan to promote opportunities for investment in the UK’s Digital and Creative industries.

Complete An inward investment business plan was created that highlighted key Foreign Direct Investment (FDI) opportunities in the UK. As a result a series of sub sector inward investment propositions in cloud computing, digital games, mobile content, post production and e-commerce have been created.

160 Improve the stock of skills in the digital and creative industries.

Progress made

The Creative Industries Council’s Skills group, led by Creative Skillset, produced a report which made recommendations to boost skills and talent in the creative industries. Key recommendations, welcomed by both industry and Government, included: reform of the ICT syllabus in schools; a promotional campaign to raise the profile of Apprenticeships; and a call to improve the quality of industry internships. Action is being taken to reform the ICT curriculum and improve teaching of Computer Science. Autumn Statement 2012 announced up to £6m over 2 years from April 2013, match-funding voluntary industry contributions to a digital and creative content skills fund. The fund will support skills provision in film, TV, video games and animation, maximising impacts of existing content tax reliefs. Tax reliefs for high-end TV production, animation and video games will be introduced, subject to State Aid approval, in April 2013.

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15. Health and life sciences

The UK enjoys competitive advantage in health and life sciences, with a world-class research and science base, more top-ranking universities than any country other than the US, a high quality regulatory environment, and health care system which has enormous potential as a location for clinical research. The Plan for Growth announced measures to use these strengths and support growth. In December 2011, further measures were announced in the Strategy for UK Life Sciences and Innovation, Health and Wealth.

“The Government will...” Progress Notes 161 Set up a new health research regulatory agency

(HRA) to streamline regulation and improve the cost effectiveness of clinical trials. The National Institute for Health Research (NIHR) will make funding to providers of NHS services conditional on meeting benchmarks, including a 70 day benchmark to recruit first patients for trials.

Progress made

The draft Care and Support Bill contains clauses to establish the HRA as an executive non-Departmental public body. The existing HRA will run a feasibility study to streamline approvals by combining NHS study-wide review and elements of the Research Ethics Committee (REC) review into a single quality-assured assessment and has published plans for creating a unified approval process and promoting consistent, proportionate standards for compliance and inspection. In May 2012, NIHR published NHS Trusts’ research Operational Capability Statements that summarise resources and capabilities available for undertaking research in each Trust. NIHR made the 70 day benchmark a condition of its new contracts in December 2011, and will publish performance data from 2013.

162 Reduce perceived gold-plating and increase the proportionality of EU Clinical Trials Directive and its application.

Progress made

The European Commission published its proposal for a Clinical Trials Regulation in July 2012 containing many of the elements the Government has been lobbying for including a risk based approach to clinical trials. The proposal is under negotiation.

163 Open up information about clinical trials to enable the public to get involved.

Complete On 25 April 2012 the National Institute for Health Research (NIHR) launched an update to the UK Clinical Trials Gateway that increases the amount of simple and easy to understand information describing what each trial is doing. The Gateway is now available for the iPhone, iPad and Android devices.

164 Build a consensus on using e-health record data to create a unique position for the UK in health

Complete The Clinical Practice Research Datalink (CPRD) was launched on 28 March 2012, a £60m investment between the National

35

research. Institute for Health Research and the Medicines and Healthcare Products Regulatory Agency. The creation of CPRD will provide a unique opportunity for life sciences research, providing access to data at an unprecedented scale, enabling new methods of research, and making the UK a location of choice for research.

165 Open up information on clinical research to promote collaboration and innovation.

Complete The NIHR website is the mechanism for opening up information on clinical research to researchers and research funders including industry, promoting collaboration and innovation. As of March 2012 the core site is hosted on new platform and content has been revised to improve the ease with which researchers, industry and the public can access information.

166 Consider opening up prescribing data. Complete The Health and Social Care Information Centre (HSCIC) released presentation level prescribing data, by GP practice, for the first time in September 2012. This makes available around 10m rows of detailed data on dispensed drugs each month. In response to demand HSCIC will also be releasing data covering the previous 24 months to permit early time series analysis.

167 Form Translational Research Partnerships from £775 m investment in National Institute for Health Research (NIHR) Biomedical Research Centres and Units.

Complete 2 NIHR Translational Research Partnerships were launched in October 2011. The Government has increased its investment to £800m in NIHR Biomedical Research Centres and Units.

168 Remove any barriers that limit the further development of geographical clusters, working with industry, local government, universities, NHS and funders.

Complete Imanova Ltd was formed as a not for profit company in a collaboration between the Medical Research Council and 3 leading London universities. It is a centre of excellence in imaging sciences and became the first organisation eligible for Research Council funding following changes in eligibility rules. In early 2012, Research Councils UK published Principles for Funding Multi-Institutional Collaboration in Innovation and Research.

169 Launch a competition to form a Cell Therapy Technology and Innovation Centre (now changed to ‘Catapult Centre’).

Complete The Cell Therapy Catapult has formed, appointed a Chair and CEO and moved into the Tower Wing of Guy’s Hospital in London. The Catapult is preparing a 5 year business plan.

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170 To ensure educators provide the skilled individuals the sector needs to grow, through Cogent, improve market signalling by bringing companies and educators together.

Complete Cogent launched a Higher Apprenticeship for Life Science and Chemical Science Professionals in February 2012; the first full intake was recruited in September. The Society of Biology launched its Degree Accreditation Programme in March 2012. The Society has since secured funding to expand the programme.

171 Ensure that the Intellectual Property system supports life sciences businesses.

Progress made

A consultation was launched in October outlining proposals to create a more supportive environment for pharmaceutical research and development in the UK.

172 Take forward a range of measures to encourage innovation in NHS procurement.

Progress made

The first 3 competitions for the Small Businesses Research Initiative (SBRI) have been launched and phase 1 contracts awarded. Further competitions will be launched later in 2012-13.

173 NHS Chief Executive will provide a report by on how the adoption and diffusion of innovations can be accelerated across the NHS.

Complete Implementation of cornerstones of the programme, such as designation process for Academic Health Science Networks, is well advanced.

174 Take forward a package of measures to improve the take up of assisted living technology.

Progress made

The first 100,000 patients to benefit from using telehealth under the 3m lives initiative will be delivered through joint working with 7 Pathfinder sites in the NHS and the telehealth/telecare industry. The Technology Strategy Board’s competition has identified 4 communities for the “delivering assisted living lifestyles at scale” programme, which will involve 169,000 people and 200 organisations across the UK by summer 2015.

175 Strip out regulations that were never meant for the social care market and are preventing market entry and flexible services.

Complete A roadmap on regulations was published by the National Association for Adult Placement Schemes and the Government in October 2011.

176 Establish a proactive, entrepreneurial brand for UK healthcare industry

Complete Healthcare UK (HUK) was launched in August 2012, providing a single international brand for UK healthcare industry. A further international launch is planned for January 2013.

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16. Logistics

The logistics sector accounts for almost 9 per cent of UK GVA and around 7 per cent of total employment. It is critical to the success of other businesses throughout the economy. Autumn Statement 2011 identified actions to benefit the logistics sector and its customers.

“The Government will...” Progress Notes 177 The Government has published a Written

Ministerial Statement to support the development of, and investment in, strategic rail freight interchanges. This statement is supported by a detailed guidance document.

Complete Further action now rests with commercial interests to develop proposals and submit planning applications.

178 The Government asked Network Rail to support development of a network of strategic rail freight interchanges.

Complete Network Rail continues to discuss and provide guidance to the wider logistics sector. Further action now rests with commercial interests to develop proposals and submit planning applications.

179 Support Network Rail to invest £55m in the strategic rail freight network to help remove bottlenecks, improve capability and longer-term connectivity to major ports.

Complete Additional funding enabled Network Rail to bring forward critical infrastructure enhancements.

180 Deliver the recommendations from the Motorway Incidents Review to ensure it can reduce the frequency of long-duration incidents and delay to heavy goods vehicles (HGVs).

Complete 20 out of the 27 police forces that received funding to purchase laser scanners are already using them. We anticipate that the remaining 7 will be operating the scanners on the network by early 2013. Analysis indicates that the average time saving in the investigation of serious incidents on the Strategic Road Network is about 44 minutes. Progress on the “Ten Point Action Plan” published in the Review of investigation and closure procedures for motorway incidents – preliminary report to manage incidents on the road network, is on track

181 Carry out a trial of longer semi-trailers. The trial will commence in January 2012 and last up to 10 years, with the anticipated value of the trial being an estimated £33m to operators.

Progress made

By end-November 2012, Vehicle Special Orders had been issued for over 380 vehicles. Data collection is underway on the usage of the trailers for the first survey period, to 31 August 2012. Operators have until December 2013 to take up the full allocation of 1800 trailers.

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182 Explore opportunities to support green technologies through changes to the operator licensing regime, to reflect the increased costs to industry from low emission technologies that increase the overall weight of the vehicles.

Progress made

The Government has discussed with industry stakeholders the merits of an exemption from operator licensing for gas-powered vehicles and the scope to better publicise existing exemptions from operator licensing. The Government intends to launch a public consultation on options early in 2013.

183 Launch an industry-led task force to promote use of fuel efficient, low emission road freight technologies.

Progress made

In November 2012, the Task Force considered a research report on low carbon HGV technologies, which identified as priorities gas for long haul and regional duty cycles, hybrid/electric for urban and municipal duty cycles and greater use of aerodynamic and low rolling resistance equipment.

184 Invest £8m to pump prime procurement of low emission HGV technologies and supporting infrastructure. The Government will work with the Technology Strategy Board to launch a competition for this funding in March 2012.

Complete The Government has awarded £11.3m (increased from £8m) for low emission HGVs and refuelling infrastructure. The 13 successful bids will support over 300 low carbon trucks and 11 public access gas refuelling stations. The trials will take place over 2 years, monitored by a separate research contract. The first fleet of 40 trucks will be on the road in December 2012.

185 Consider the need for further guidance on quiet night time deliveries as part of a forthcoming wider review.

Progress made

Transport for London promoted use of quiet deliveries during the Olympic and Paralympic games. The Government will work with them, the Noise Abatement Society and Freight Transport Association to develop further guidance.

186 Trial the temporary use of snow ploughs attached to certain types of heavy duty vehicles, and consider relaxing certain weights and dimensions legislation where necessary to facilitate this.

Progress made

We have held discussions with operators and local authorities about their use of snow ploughs. We will work with them to consider the need for a best practice guide.

187 Provide £4m to Skills for Logistics to improve training approaches to increase the competitiveness and productivity of the logistics sector.

Progress made

Skills for Logistics launched 4 projects in April 2012: Intelligent Logistics, Professional Logistics, Local Logistics and Progressive Logistics. The Logistics Guild launched the Military Work Placement Scheme, in November. It matches 1000 Service leavers with 50 employers offering work experience and job interviews.

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17. Mid-sized businesses

The UK’s mid-sized businesses (defined as £25-£500m turnover) account for a fifth of private sector employment and turnover, and have significant potential to grow.

“The Government will...” Progress Notes 188 UKTI will receive £10m additional funding to

provide a tailored package of export support to an additional 500 mid-sized businesses (MSBs) per year. UKTI and UK Export Finance will also work with businesses to promote existing trade finance support for mid-sized businesses.

Progress made

UKTI has expanded its network of International Trade Advisers dedicated to MSBs, with over 20 in place across UKTI’s English regional network. It is on track to engage 500 new MSB clients this financial year. Lord Green and John Cridland, CBI Director-General, jointly led trade missions to Turkey and Russia dedicated to MSBs.

189 Develop commitments to support and strengthen supply chains.

Progress made

In October 2012, the Prime Minister announced leading UK companies will help tens of thousands of businesses secure increased levels of affordable supply chain finance.

190 Increase numbers of mid-sized businesses benefiting from resource efficiency schemes by up to 200.

Progress made

The Government is engaging with MSBs to improve resource efficiency in food and drink, supply chains and water using industries. The target of 200 MSBs was a 3 year ambition.

191 Establish a task force of UK business schools to report by October 2012 on options for improving access to appropriate courses and promoting links between mid-size businesses, business schools and students.

Complete The Business Schools Task Force published their report in November 2012, recommending increased collaboration between business schools and MSBs. Regional events are now planned to promote and build momentum behind the recommendations.

192 The Government asked 8 Local Enterprise Partnerships (LEPs) to establish a dedicated local pathfinder project to raise the profile of mid-sized businesses, strengthen business networks and encourage peer-to-peer support.

Progress made

LEP core funding was announced in September 2012, helping to support MSB activity.

193 Working with business, launch a national campaign to showcase mid-sized business and publicise the full range of Government services available.

Complete A number of national events have helped bring MSBs together to share their experience in 2012.

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18. Professional and business services

The Professional and Business Services (PBS) sector accounted for around one third of UK growth in 2000-07, and it is internationally competitive. It has high growth potential due to the world-class reputation enjoyed by many professions in the UK.

“The Government will...” Progress Notes 194 Publish guidance to help commercial organisations

understand the Bribery Act 2010 better. Complete BIS expects to explore business perspectives on the impact of the

Bribery Act and guidance in discussions with professional and business services firms as part of industrial strategy.

195 The Government wants to abolish over two dozen regulatory offences under Money Laundering Regulations and exempt businesses with very low turnovers, which will reduce compliance burdens.

Complete The Government consulted on this measure in July 2012 and made legislative changes which came into effect from 1 October this year. The proposal to abolish over two dozen regulatory offences under Money Laundering Regulations was removed following the consultation exercise.

196 The UK Border Agency (UKBA) will launch services for trusted business visa service users, entrepreneurs and high net worth investors, move to online visa processing, and publish application guidance in more local languages.

Progress made

In April 2012 UKBA launched a premium customer service for sponsors. Trusted business visitors can now access a priority (5 day) visa service in key markets and in key locations we offer other services such as premium lounges and an out of hours appointment service. We are on track to deliver 90per cent of online applications by December. UKBA provide translated “how to apply” website information on the China, Hong Kong, Taiwan, Saudi Arabia, Kuwait, Japan, Russia, Turkey, South Korea, Indonesia, Thailand and Vietnam web pages.

197 The Ministry of Justice and UKTI will work with the sector to promote the UK’s world leading business arbitration and commercial law services.

Progress made

The Ministry of Justice (MoJ) published a Legal Services Action plan in May 2011. 10 of its 11 commitments have now been delivered. Key activities include distributing a promotional toolkit of UK legal strengths to international posts and the Lord Mayor running a promotional “Unlocking Disputes” campaign. MoJ are developing, in discussion with UKTI, an intended second action plan, which will build on the first one. It is expected that this further plan will be launched in 2013.

198 Pursue improved access to new markets outside Progress The Government is exploring, in current discussions with business

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the EU. made for the Industry Strategy for professional and business services, how best to focus its support for export of UK business services.

199 Press the European Commission and other EU member states to implement the Services Directive in full.

Complete The Services Directive has been fully implemented, and the Government is working to improve best practice and consistency between Member States, to enable business to maximise opportunities

200 The Government wants to encourage talented students into the professions regardless of their background. A working group of the UK Commission for Employment and Skills will look at whether a new accountancy apprenticeship programme would be effective, and propose other measures to improve access to the professions.

Progress made

The Financial Skills Partnership issued the new Professional Services Higher Apprenticeship in July 2012 to meet the needs of professional services sector employers both large and small. The focus now is to encourage employers to adopt the framework aiming for 1,500 starts by 2015.

201 The Professional and Business Services Group (PBSG), chaired by Sir Michael Snyder, will launch a Log of Professional Readiness by June to promote increased employability skills among graduates.

Complete The Log was completed in June 2011 and provides an official base for graduates and school pupils to record positions of responsibility and leadership. The Government is exploring in discussions with professional and business services firms, as part of industrial strategy, whether there is more that can be done to encourage business-schools engagement to improve the work-readiness of school leavers for careers in this area.

202 Initiatives being developed by a Government/business cyber security partnership will make the UK a more resilient place to do business.

Progress made

BIS has been working closely with PBS representative bodies and key PBS companies to develop deliverables targeted at PBS sector resilience and PBS customer awareness and risk mitigation. In September 2012 BIS in partnership with GCHQ and CPNI, developed and published HMG’s Cyber Security Guidance Booklet for Business. The Guidance is designed to offer some practical steps which companies can take to improve the protection of their business assets from technical, commercial, and financial threats.

203 Cut down the administrative burdens of complying with business regulation.

Progress made

The Government launched a Red Tape Challenge targeted at business services in October 2012. This consultation period was

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extended and the results will be reviewed. The issue of regulation and how it weighs on the business services sector is being considered in Government’s discussions with business in the context of Industrial Strategy.

204 The Financial Reporting Council will work closely with the professions, businesses and market participants to reinforce the principle that independent regulation and enforcement should focus on risk and outcomes rather than process.

Complete New regulations came into force on 2 July 2012 and the Financial Reporting Council is now implementing new approaches.

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19. Retail The retail sector directly accounts for over 5 per cent of UK GDP, employs 1 in 9 of the workforce, and is the sixth largest retail market in the world by sales. The Plan for Growth announced measures to address a number of issues raised by businesses.

“The Government will...” Progress Notes 205 Extend the current small business rate relief

holiday for one year from 1 October 2011. Complete The Government extended the current Small Business Rate Relief

holiday for a further 6 months from 1 October 2012 (to end 31 March 2013). A further 12 month extension of the Small Business Rate Relief holiday from 1 April 2013 has been announced in this Autumn Statement. The Government estimates that 530,000 businesses will benefit, with 350,000 getting 100 per cent relief on their bill.

206 Invite the independent Low Pay Commission (LPC) in its next report to consider and implement the best way to give business clarity on future levels of the National Minimum Wage, including consideration of two-year recommendations.

Complete The Government agrees with the LPC’s recommendation that two-year recommendations would constrain it to a position based on out-of-date information that would outweigh any benefit in increased clarity. In March 2012 the Government announced the rates which will apply from October 2012.

207 Introduce a package of measures to support thriving town centres and build on the Town Centre First policy.

Progress made

Government has accepted nearly all of the 28 recommendations in the Mary Portas Review. We have also doubled small business rate relief for 2½ years; increased the number of Portas Pilots to 27; introduced a support package for 326 Town Team Partners; launched a £10m High Street Innovation Fund; provided support for local markets; launched the £1m Future High Streets X-Fund; and announced a £500,000 BIDs loan fund.

208 Expand the Primary Authority model to apply consistent enforcement standards across a wider range of regulations and businesses.

Progress made

Legislation to expand the Primary Authority model is included in the Enterprise and Regulatory Reform Bill, which is expected to receive Royal Assent by spring 2013.

209 Amend regulations affecting retailers to make them more outcome-focused, and use a checklist approach to assist SMEs to comply.

Complete Pilot findings are feeding into a Health and Safety Executive review of RIDDOR. From April, RIDDOR’s injury reporting threshold extended to over 7 days’ incapacitation, as business requested.

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210 Implement a regulatory reform package to simplify complex and inconsistent age-restricted sales regulations and licences for businesses.

Progress made

In December 2011, the Local Better Regulation Office published an agreed set of shared responsibilities and reasonable expectations for young people, parents, businesses, employees and regulators. The Better Regulation Delivery Office will publish the Age Restricted Products and Services Code of Practice for Regulatory Delivery in December 2012.

211 Work with retailers to ensure the skills system is delivering what the sector needs, including by providing pre-employment retail skills training to the unemployed and encouraging greater take-up of retail apprenticeships.

Complete Following a pilot with several major retailers, new approaches on apprenticeships have been introduced. In addition, retail work academies offering pre-employment training have been rolled out through several major retailers. A Retail Apprenticeship Training Agency has been launched by the National Apprenticeship Service and National Skills Academy for Retail to support and increase the use of apprenticeships by retail SMEs.

212 Work to remove regulatory barriers to increased cross-border online retail.

Progress made

In January 2012, the European Commission adopted a Communication on building trust in the Digital Single Market. The Government is working with the European Commission on a European Retail Action Plan, to address barriers to both traditional and online cross-border retail. The European Retail Action Plan is due to be published in December 2012.

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20. Rural economy Measures to support growth in the rural economy were announced in the Autumn Statement 2011.

“The Government will...” Progress Notes 213 Support rural broadband by opening the £20m

Rural Community Broadband Fund; working closely with North Yorkshire County Council, one of the pilot areas for superfast broadband rollout; and considering new approaches to make the roadside telecommunications network available.

Progress made

2 Expression of Interest rounds have completed with over 80 applications received. Over 50 applications have been endorsed with conditions (grant totalling around £16m) and invited to develop a full application. A third Expression of Interest round is expected in January 2013. First projects should start delivering from spring 2013.

214 Provide approximately £15m to fund up to 6 pilot Rural Growth Networks.

Progress made

Rural Growth Network Pilots covering Cumbria, Devon and Somerset, Durham and Northumberland, Warwickshire, and Swindon and Wiltshire received and accepted formal offers of funding in October 2012. Each have now accepted these offers and are moving into implementation phase, running until March 2015.

215 Consult on exempting organic farmers from regulations controlling the use of nitrate-based fertilisers; and recognise third-party certification schemes such as the Red Tractor in its inspection regime.

Progress made

The Government responded to the consultation on revising nitrates regulations in August 2012. The new regulations will come into effect by March 2013. Red tape for low intensity farmers is being reduced, as is inspection frequency for good nutrient management. Work is continuing with industry to develop opportunities to introduce an earned recognition approach into inspection regimes.

216 Invest £100m from the Rural Development Programme for England to help small businesses improve their skills, facilities and competitiveness.

Progress made

Rural Economy Grant scheme, providing grants of £25,000 and above to enable business growth, received over 1,100 outline applications requesting over £224m against a £60m budget. Farming and Forestry Improvement Scheme (£25m), providing small grants of up to £25,000, has received over 2,800 applications to date with an expected commitment of over £16m of grant funding.

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Skill and knowledge transfer training programme (£20m) – 7 contracts have been agreed with delivery plans being developed and training due to commence in the autumn.

217 Commit £25m to promote rural tourism, including a new £10m fund within the Rural Development Programme for England to develop rural tourism destinations.

Progress made

High levels of interest in the £10m fund were expressed, with projects asked to progress to full business plans. Implementation will be phased up to February 2013. Work on assessing the impact of VisitEngland’s ongoing “Holidays at Home are GREAT” campaign and supporting partnership projects has begun. First projects under “Paths for Communities” are being progressed.

218 Launch a food and drink export action plan in January 2012. In addition a summit will be held in March 2012 to boost innovation in small agri-food businesses.

Complete Success from the exports action plan is already evident with the opening of the Chinese pork market, estimated to be worth £50m each year. The Government held an Innovation Summit to raise awareness of innovation in the agri, food and drink sector. Two innovation competitions were launched with regional business engagement events. The winners for the SME competition were announced in July 2012. Outputs will be evaluated in spring 2013. At the March summit Technology Strategy Board, Defra and Biotechnology and Biological Sciences Research Council also launched a £15m R&D competition with industry on resource efficiency in food manufacture. Successful applicants have been notified.

219 Launch a £15m Rural Community Renewable Energy Fund to help communities meet the upfront cost of developing renewable projects.

Progress made

Design of the Fund is at an advanced stage, including processes to appoint an external Fund Manager. Defra has allocated £7.5m Exchequer funding to start the Fund, and is looking at alternative sources of funding. The Fund is on track to launch by March 2013.

220 The Forestry Commission England, working with private companies, will offer 45 training opportunities for new forestry apprentices.

Progress made

Forestry Commission England is supporting colleges which are currently recruiting apprentices onto the Forestry Work-Based Diploma, using funding under the Forestry Skills Initiative.

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21. Space sector

The UK’s space sector grew by 6.5 per cent in real terms between 2009-10 and 2010-11. The Government has played a part in creating the conditions for the sector to grow. This was demonstrated by the Chancellor’s statement to the Royal Society on 9 November 2012 that the UK plans to increase its subscriptions to the European Space Agency to an average of £240m each year over the next 5 years to support high value scientific and industrial programmes. UK industry estimates that this will secure around £1bn of orders per year.

“The Government will...” Progress Notes 221 Reform Outer Space Act 1986 by introducing an

upper limit on liability for UK operators. Progress made

UK Space Agency consulted on capping operator liability under the Outer Space Act 1986 and plans to respond in early 2013.

222 Work with the international regulatory authorities to define regulations for novel space vehicles that offer low cost access to space.

Progress made

UK Space Agency and Department for Transport are reviewing the potential for space planes to be certificated and operational in the UK within a European regulatory environment. The UK Space Agency will consult on developments in a third international workshop in December 2012. The Government plans to present a case for action and steps needed to enable space plane certification and operations in the UK.

223 Provide UK industry with clearer guidance on the regulation of security aspects in export deals.

Complete Guidelines to clarify space industry exports have been published. UK companies are often at the forefront in offering high technology and competitive space products and services in overseas market that are attractive to commercial and Government customers.

224 Work with Ofcom to ensure that British industry has full and fair access to satellite orbit slots.

Complete The World Radio Conference 2012 introduced measures to improve radio spectrum use and clarified rules.

225 Announce £10m of funding to accelerate development of the International Space Innovation Centre.

Complete 4 flagship and 28 fast track R&D projects have been funded by the UK Space Agency and Technology Strategy Board to research and demonstrate novel space technology and services in the UK. UK Space Agency has awarded pathfinder early stage research projects and Space Collaborative Innovation Team Initiative research projects through the International Space Innovation Centre at Harwell. It is also funding UK projects through the European Space Agency’s General Technology Programme.

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22. Tourism The entire Tourism sector is the UK’s sixth biggest industry and in-bound tourism is our third-largest export earner. The tourism industry is a particularly important source of employment in rural communities.

“The Government will...” Progress Notes 226 Co-fund with the private sector a £100m

campaign aiming to attract visitors to the UK in the years following 2012.

Progress made

VisitBritain’s international tactical and image marketing campaigns continue, with the GREAT campaign to be extended into 2013-14. Autumn Statement announced Government will increase funding for the GREAT campaign to £30m for 2013-14. Highlights include VisitBritain’s first global TV campaign in 10 years and a rolling programme of consumer offers. VisitBritain activity delivered £503m in incremental spend (Financial Year 2011-12) against a target of £373m, plus bookings worth £89m for their commercial partners. Initial evaluation results from the spring 2012 phase of the GREAT image campaign are positive. Britain saw the greatest increase in unprompted recall of advertising and “strong likelihood to visit within a year” compared to major competitors. If stated intentions translated into actual visits they could potentially generate £33m-£72m spend. A post-Olympic Games phase of advertising has begun.

227 Create a task force of senior industry figures from across the UK, to identify opportunities to cut red tape in the tourism industry.

Progress made

Following the Tourism Regulation Task Force Report and recommendations, and hospitality Red Tape Challenge exercise, progress continues to be made with a further 5 measures due to be amended or culled by end 2012 and a further 4 in early 2013.

228 The UK Border Agency (UKBA) will increase the number of visa biometric ID centres around the world, move to online visa processing, and publish application guidance in more languages.

Progress made

We are on track to deliver 90 per cent of online applications by December. UKBA provide translated “how to apply” website information on the China, Hong Kong, Taiwan, Saudi Arabia, Kuwait, Japan, Russia, Turkey, South Korea, Indonesia, Thailand and Vietnam web pages.

229 Work with People 1st, the National Skills Academy for Hospitality, and the industry, to

Progress made

VisitEngland Launched the Skills Action Plan in June 2012. People 1st has launched Apprentice 1st, an online portal allowing

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increase the number of apprenticeships and other courses teaching hospitality skills so that consistently higher standards are delivered.

employers, learners and training providers to access all aspects of an apprenticeship from a single screen online. Also launched a Level 4 Hospitality Management Apprenticeship and established first apprenticeship training agency (ATA) to encourage smaller businesses to employ apprentices.

230 Modify Tourist Boards to become smaller, highly focused, industry-led partnerships between tourism firms and government.

Progress made

Tourist Boards have almost universally adopted the term “Destination Management Organisation” (DMO) which describes their operational model. They increasingly deliver an integrated approach to development of the visitor economy at the local level. Visit England has produced a best practice model for DMOs which champions a close working relationship with LEPs.

231 Help the industry prepare for changes in technology, so tourism information can be provided through smartphone apps, as well as through traditional leaflets and websites.

Progress made

VisitEngland launched a new Android version of its official Enjoy England app in March 2012 after the successful launch of its iPhone app. This is free to download and provides over 1,000 up-to-the-minute ideas for destinations and attractions across the country. The Enjoy England app also includes free access to travel content and readers’ tips from the Guardian newspaper and great ideas from enjoyEngland.com. VisitEngland are now embarking on a digital strategy review that covers all aspects of visitor information delivery across current and emerging channels.

232 Give the industry and consumers responsibility for hotel “star rating” quality schemes.

Progress made

VisitEngland now has a panel of industry experts in place, advising on the development of quality standards. A review of the visitor attractions scheme is also underway.

233 Help create tourist destinations that match London and maximise the potential of other parts of Britain.

Progress made

VisitBritain’s GREAT campaign, alongside their £100m marketing campaign, continues to promote tourism in all parts of Britain, and is being extended for another year with a focus on China. VisitEngland, are delivering a follow-up campaign, to build on the success of their 2012 ‘Holiday at Home’ campaign.

234 Consult on removal of first bank holiday in May. Complete After consultation, it was decided not to move the bank holiday. 235 Deliver its pledge to maintain and reform

Furnished Holiday Lettings reliefs. Complete Introduced in Finance Act 2011.