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In this series, we’re exploring how different sectors may be impacted by autumn policy announcements and how you can prepare for a period without physical party conferences.

The Government’s ambition for an ‘infrastructure revolution’ – set out in the 2019 Conservative manifesto – was reaffirmed in the March 2020 Budget, with investment commitments reaching £600bn. This infrastructure revolution is key to the Government’s ‘levelling up’ agenda, aiming to address regional inequalities across the country. As we move into the recovery phase post Covid and adapt to a future outside of the European Union, investment in infrastructure will play a fundamental role in securing the UK’s future prosperity. 

Active travel
The lockdown has demonstrated that many parts of the workforce can efficiently operate remotely, and that the traditional 9 to 5 spent entirely in the office is no longer necessary. Meanwhile, the levels of people walking and cycling have increased dramatically. In response to these changes, the Government has announced the £2bn of investment to put cycling and walking ‘at the heart’ of the UK’s post-Covid transport plan, with a new body – Active Travel England – to oversee how the money is spent.  

New National Infrastructure and Construction Procurement Pipeline 
In an attempt to provide short to medium term certainty for the construction industry, the Infrastructure and Projects Authority has published a reviewed National Infrastructure and Construction Pipeline, setting out contracts planned for 2020/21. The pipeline is made up of 340 procurement contracts over 260 projects, with a value between £29bn and £37bn – a broad range of works spanning across building, design and civil engineering contracts; repair and maintenance services; architectural, construction, engineering and inspection services; and consultancy services. 

National Infrastructure Strategy
The National Infrastructure Strategy is the Government’s response to the National Infrastructure Assessment that was published by the National Infrastructure Commission – the Government’s advisory board – in July 2018. The Strategy aims to provide a 30 year plan for infrastructure, including funding projections for transport, local growth and digital infrastructure. It was expected initially last December 2019 and then March 2020, before the Government announced it was another 19 months late. 

Transport Decarbonisation Plan
Reducing the infrastructure sector’s carbon footprint and ensuring that the sector plays its part in delivering net-zero emissions by 2050 will shape all major infrastructure investment decisions going forward. In March the Department for Transport published a policy paper on creating the decarbonisation plan for transport, detailing what the Government, business and society will need to do to deliver the significant emissions reduction needed across all modes of transport. The plan is scheduled to be published later this year. 

Infrastructure levy
The long-awaited planning white paper was published by the Government earlier this month, proposing sweeping changes to the current planning system. One of the proposals is that developer contributions, in the form of Section 106 agreements and the Community Infrastructure Levy, are to be replaced with a new Infrastructure Levy. This levy will be a fixed proportion of the value of the development, above a set threshold. Local authorities will be able to borrow against Infrastructure Levy revenues to forward fund infrastructure and speed up delivery. Revenues from the levy would be spent locally on economic and social infrastructure projects such as new roads, community amenities and discounted homes for local, first-time buyers. 

Freeports
As part of plans to level up opportunity across the UK post Brexit, the Government has announced its intention to build ten freeports across the UK. The Government was collecting views on the proposals until 13 July and is now preparing a response. Airports as well as maritime ports across the UK will be invited to bid.

The links between the coronavirus crisis and the energy industry might not seem immediately obvious and, at first glance, MPs might be forgiven for thinking they have more important concerns when they return to Westminster next week. However, it is clear that the economic damage being done to the country by the pandemic poses real opportunities for the energy sector, and for tackling climate change. As activists argue, this crisis really does pose an opportunity to deliver a ‘green recovery’ and to ‘build back better’.  

We saw the first signs of this being delivered in Rishi Sunak’s Summer Statement and ‘Plan for Jobs’, which included £3bn for a range of energy efficiency measures, including the Green Homes Grant. However, while welcomed by campaigners and businesses, these are all short-term programmes, rather than the long-term strategic investments and plans which it is generally agreed are needed. The industry will therefore be keeping its ear to the ground ahead of the Budget promised for later this year, which should hopefully put some flesh on the bones of the Government’s target of reaching net zero by 2050. 

In terms of specific actions, there are a number of policies and strategies whose publication would help to give businesses and investors the confidence in the UK’s future direction which they need to unlock private sector activity and funding; many of which have been long-promised and much-delayed. These include the National Infrastructure Strategy, Energy White Paper, Low Carbon Heat Strategy and the Transport Decarbonisation Plan. Business, Energy and Industrial Strategy Secretary Alok Sharma has indicated that we can expect at least some of these to emerge later this year. The process of agreeing these documents will, however, involve making choices, and this will inevitably mean that there are both winners and losers. 

At the moment many technologies – some established, some new – are vying for Government attention and spending. Consider, for example, the issues of new nuclear, hydrogen or wave energy, or the challenges associated with decarbonising heating, transport and energy-intensive industries. It’s clear that ministers do not have easy decisions to make – but make them they must. They could make the UK a successful pioneer, able to export newly developed technologies, skills and expertise around the globe; alternatively, they could back the wrong horse and find the country landed with costly, ineffective technology while other nations overtake it. For all the focus on creating new, green jobs, there also needs to be consideration of how best to reuse the undoubted skills and knowledge of those employed in older industries, such as oil and gas, and how to support the areas which have prospered on the back of these to ensure a just transition. 

All this doesn’t even consider the end consumer either. Shifting away from fossil fuel technologies will cost money, at least in the short-term. With many people feeling the impact of the COVID-19 induced downturn in their wallet, the Government will be under pressure to shield people not just from the medical impact of the virus, but from suffering a financial hit, and to prevent a rise in unemployment, leading to a rise in fuel poverty.  

It isn’t just the Government the energy and utilities sector should be keeping an eye on either. While the threat of imminent nationalisation disappeared along with Labour’s hopes at the 2019 general election, the policy is undoubtably popular among the party’s grassroots membership. The appointment by Sir Keir Starmer of former leader Ed Miliband to the post of Shadow Business, Energy and Industrial Strategy Secretary shows the importance which the party places on the sector. Miliband is no stranger to the energy industry – he was Energy and Climate Change Secretary in the last Labour government and has maintained an interest ever since. As he settles into the role and focus returns to the longer-term, expect Miliband to be pushing the Government to be more ambitious. 

It may also be worth monitoring the Liberal Democrats – Sir Ed Davey, their acting leader and the bookies’ favoured candidate to win the leadership election (which ends today), also held the Energy and Climate Change portfolio during the Coalition government and has focused heavily on the area. It’s clear that the Government faces a heavyweight opposition which is well-equipped to spot failings and to set out an alternative vision. 

It’s clear that energy is an area where the Government will face some tough choices in the next few months, yet alone years. 

In this series, we’re exploring how different sectors may be impacted by autumn policy announcements and how you can prepare for a period without physical party conferences.

Autumn will be a waiting game for the pharmaceutical industry. With the end of the EU transition period fast approaching, the sector is closely watching emerging trade deals with Europe and the US develop, whilst the future level of cooperation with the EU on life sciences is still unclear. On top of this, coronavirus has sent the health sector into flux, with hopes pinned on approving a vaccine or effective treatment soon.   

Brexit and Trade
Brexit will be critical to the pharmaceutical sector amid developing trade deals and fears about future medical supply, while emerging regulatory gaps drive legislation through Parliament. Britain laid out its approach to negotiations with the EU in February where it advocated for zero tariffs and unrestrictive regulatory standards, the recognition of Good Manufacturing Practice and cooperation on data sharing, clinical trial infrastructure, and on processes surrounding patient safety in medical device development.

Responding to the negotiation strategy, the Association of the British Pharmaceutical Industry said: ‘The Government has set out a vision for a future relationship where both sides can work together in the interest of patient safety, public health, and the pursuit of scientific progress for UK and EU citizens. As negotiations get underway, we urge ambition and pragmatism to achieve these goals.’

However, with post Brexit trade talks under strain and limited by a tight time pressure, the threat of a no deal Brexit at the end of the year still looms. Furthermore, fears over the future medical supply have been compounded by warnings from the pharmaceutical industry, which raised concern earlier this year that the medical stockpile had to be used up ‘almost entirely’ by the coronavirus response. As a result, in its contingency planning, the Government has called on medicine suppliers to ‘buffer stocks of medical supplies where possible’, calling for companies to have at least six weeks’ total stock on UK soil.

Medicines and Medical Devices Bill
The Medicines and Medical Devices Bill is expected to pass into law this Autumn. The Bill, which covers human medicines, veterinary medicines and medical devices legislation, aims to address the regulatory gap in regulation after the UK concludes its transition period, having left the European Union. Announcing the legislation Health Secretary Matt Hancock said: ‘Now that we have left the European Union, we need a regulatory system that is nimble enough to keep up with those developments while maintaining and enhancing patient safety.’

Under the new legislation, the Government will have greater powers on the sector’s law including on the manufacture, marketing and supply of human medicines, clinical trials and the charging of fees in relation human medicines provision. The Government has indicated that it will use the powers to support the development of new medicines and medical devices while removing ‘unnecessary bureaucracy’ for the lowest risk clinical trials. In a briefing, the British Medical Association raised concern over the increased legislative power the Government will hold under the new Bill, calling for patient safety to be considered ‘first and foremost’ in future regulation and in market standards. The Bill ran through its committee stage in the House of Commons in June, with no major amendments, though the Government has since proposed a new UK registry for medical devices. It will have its Second Reading in the House of Lords on 2 September.

Coronavirus therapeutics and vaccines
Since the beginning of the coronavirus outbreak, many pharmaceutical companies have been on alert to deliver a vaccine or a therapeutic drug to aid the Covid-19 response. The Government set up a Vaccine Task force in April, which is now chaired by Kate Bingham, to accelerate the development of a safe and effective vaccine. Though no vaccines have yet been approved, Bingham told the Science and Technology Committee in July that the Taskforce has invested in clinical trials and vaccine manufacturing and is supporting a portfolio of emerging vaccines potentials, including the Oxford University/AstraZeneca vaccine, which is ahead of others in the clinical trial process.

In addition, the Randomised Evaluation of COVID-19 Therapy (RECOVERY) trial, also set up in April, evaluates potential coronavirus treatments from drugs already in the market in the largest clinical trial of its kind. Dexamethasone, an anti-inflammatory drug, was authorised as a Covid-19 treatment as a result of the trial, as it was found to significantly reduce the risk of death among coronavirus patients requiring oxygen.

In this series, we’re exploring how different sectors may be impacted by autumn policy announcements and how you can prepare for a period without physical party conferences.

When MPs and peers return to Westminster next month, one of the most prominent issues they’ll face is the environment, with the Government echoing the rhetoric of campaigners who have been calling for a ‘green recovery’ and for the UK to ‘build back better’ from the coronavirus crisis. They will also have to vote on the three key bills to create a post-Brexit environmental framework, consider the implications of new trade deals, and prepare for the UN climate change conference COP26, which the UK will be hosting next year.

Building back better
Announcing a £350m decarbonisation package at the end of July, Boris Johnson said ‘our green ambitions remain sky high as we build back better for both our people and our planet’. This aspiration was also set out in Rishi Sunak’s summer economic statement as part of the Government’s ‘Plan for Jobs’. He said that the Government wanted ‘a green recovery with concern for our environment at its heart’ and announced a £3bn plan to create green jobs, including the Green Homes Grant to improve domestic energy efficiency. This, of course, is in addition the Government’s need to explain how it will meet the target set under Theresa May of reaching net zero emissions by 2050.

As environmental campaigners have repeatedly pointed out, delivering a green recovery and attaining net zero requires more than just warm words, targets and isolated programmes, welcome though these are. For this reason, all eyes will be on the Budget Sunak is expected to deliver in the autumn. In order to drive private sector investment, the Government will need to give a clear steer on its direction of travel and give investors confidence that the UK is on a secure, long-term pathway to net zero, covering all of its activity.

It has a variety of tools at its disposal to achieve this. For example, the long-promised National Infrastructure Strategy, Energy White Paper and Low Carbon Heat Strategy are all now expected to be published in the autumn, alongside the Comprehensive Spending Review and an interim report from the Net Zero Review. Together, these could create a framework for a greener, more environmentally friendly post-Covid future. However, environmentalists will be concerned that the Government’s ‘build, build, build’ mantra could result in incoherent policy, with Johnson claiming in a speech that ‘newt-counting’ was delaying house-building, even as he asserted that the UK would ‘build back greener’.

Taking back (environmental) control
As we get closer to Parliament sitting again and to the end of the Brexit transition, those of us who focus on the environment will be on the lookout for details of the return of the three key bills which will define our post-Brexit environmental framework: the Environment Bill, the Agriculture Bill, and the Fisheries Bill. So far, the only one of these to appear on the parliamentary calendar is the Fisheries Bill, which will have its second reading on the first day that the Commons returns – 1 September.

Even as the bills progress through Parliament, there is plenty to be done to ensure that they can actually be implemented and many details that need to be fleshed out. For example, the Environment Bill will create a new environmental regulator, the Office for Environmental Protection and recruitment for its chair started earlier this month. Another example is the Environmental Land Management scheme being created through the Agriculture Bill, with more details on this promised by the autumn. The Environment Bill also contains a range of measures targeted at reducing waste and boosting recycling, including a deposit return scheme, extended producer responsibility for packaging, and consistency in waste and recycling collections. These all await further consultation to agree their details before they can be implemented.

Appearing before the Environmental Audit Committee in June, George Eustice, the Secretary of State for Environment, Food and Rural Affairs, told MPs that his priority ‘across all fronts, whether it is agriculture, fishing or our environment, is to demonstrate that we can chart a different course and do things better than the European Union’. The next few months will give us a good indication of how the Government’s actions match this rhetoric.

Trade deal or no deal?
The environment – and agriculture in particular – has taken a prominent role in discussion of the UK’s post-Brexit trading future. Concerns about the implications of a trade deal with the USA for the country’s food, environmental and animal welfare standards have proven to be a flashpoint, even within the ranks of the Conservative Party.

An amendment to the Agriculture Bill seeking to ensure that the UK wouldn’t agree trade agreements allowing the import into the UK of food which didn’t at least meet the UK’s standards was tabled by the Environment, Food and Rural Affairs Committee Chair Neil Parish, a Conservative MP. This was rejected, but in light of the concerns the Government launched a Trade and Agriculture Commission in July to advise on its policy on this topic, with a report expected after six months. With suggestions that time is running out for a deal to be agreed before the American presidential election in the autumn, this is a key area to keep an eye on.

The proposed trade deal between the UK and Japan also seems to have run into agriculture-related problems, with International Trade Secretary Liz Truss reportedly holding out for better terms on British blue cheeses, such as Stilton. Perhaps more seriously, European Union chief negotiator Michel Barnier said last month that the UK’s position on fisheries in negotiations on the post-Brexit relationship with the bloc was ‘simply unacceptable’ and ‘makes a trade agreement at this point unlikely’. All these are issues which will continue to develop in the autumn, and in years to come, as the UK tries to establish its position now it has left the EU.

Delivering global change
It’s important to remember that climate change is ultimately a global concern which needs coordinated international action – no matter how good the UK’s policies might be, the planet’s current trajectory cannot be altered unilaterally. One of the events which fell foul of COVID-19 was COP26, the UN’s climate change conference, which was due to be hosted in Glasgow this year. The event has now been postponed to 2021, and environmental organisations will be keeping a beady eye on what Alok Sharma, who is both COP26 President and Business, Energy and Industrial Strategy Secretary, has been doing to ensure that the conference is regarded as a success in challenging the climate crisis, rather than a missed opportunity.

A crucial moment
One of the few upsides of the current pandemic is that it allows for some thought about things we might want to change as we start the process of recovery, while Brexit allows a similar opportunity for thinking about future environmental, agricultural, fisheries and trade policy. However, there are also significant risks involved – will the Government’s planning reforms negate the ‘green recovery’? Will the UK’s new environmental framework deliver the improvements the Government claims? The next few months will give us some clarity on the UK’s future trajectory.

In this series, we’re exploring how different sectors may be impacted by autumn policy announcements and how you can prepare for a period without physical party conferences.

One of the most significant political events this Autumn, once Parliament returns from its Summer recess on 1 September, will be the long awaited Comprehensive Spending Review (CSR). First scheduled for 2019 as Boris Johnson took office; it was postponed over concerns about Brexit and an early General Election followed instead. It is considered by many to be a very bold move for this Government to press on with a 2020 CSR during the COVID-19 recovery and a possible second wave of cases.

The Treasury is accepting written representations in advance of the CSR, from any interest group, individual or representative body, up until 24 September 2020.

You can see the scope of the Review by the Government priorities listed here for submissions to address:

• Strengthening the UK’s economic recovery from COVID-19 by prioritising jobs and skills
• Levelling up economic opportunity across all nations and regions of the country by investing in infrastructure, innovation and people – thus closing the gap with our competitors by spreading opportunity, maximising productivity and improving the value add of each hour worked
• Improving outcomes in public services, including supporting the NHS and taking steps to cut crime and ensure every young person receives a superb education
• Making the UK a scientific superpower, including leading in the development of technologies that will support the Government’s ambition to reach net zero carbon emissions by 2050
• Strengthening the UK’s place in the world
• Improving the management and delivery of our commitments, ensuring that all departments have the appropriate structures and processes in place to deliver their outcomes and commitments on time and within budget

The Review will address current Government spending from next year, 2021-22, to 2023-24 as well as capital, or infrastructure, spending for an additional year, to 2024-25 so it is clear the CSR is critical given the next General Election will be in 2024 or earlier.

This key fiscal event presents the Government with a rare opportunity to shape not just spending, but its vision for modern UK Government administration.

Strengthening the UK’s place in the world after the long-running Brexit issue is crucial for this Government, yet we have already seen an indication of the different path this administration is taking in terms of the abolition of the Department for International Development and creation of a larger Foreign, Commonwealth and Development Office. Its new Permanent Under-Secretary was announced recently as Sir Philip Barton and he takes up this position on 1 September.

Despite being widely criticised by the development community and three former Prime Ministers, Boris Johnson has been clear he thinks a new ‘super department’ is the right way forward for a post-Brexit Britain, with a far greater emphasis on trade rather than aid. The Prime Minister said: ‘For too long, frankly, UK overseas aid has been treated like a giant cashpoint in the sky, that arrives without any reference to UK interests.’

This CSR might be less controversial in terms of public spending cuts, not least because in light of COVID-19 there will be little appetite to reduce NHS spending, and also because of Boris Johnson’s mission to level up Britain and increase spending across the nations and regions of the UK, through improved infrastructure and better public services. The 40 new hospitals promised will need to be paid for and delivered, and the PM has also been consistently clear that there will be no return to austerity. Conversely, he has promised a significant rise in number of NHS doctors and nurses, as well as new police officers and a school building upgrade programme.

Additionally, in what is being viewed by many Westminster watchers as a victory for the Prime Minister’s Chief Adviser Dominic Cummings, the Government’s long-awaited foreign policy and defence review is being conducted alongside the CSR. This could see cuts to the defence budget and is certain to see a shift away from traditional military spend, such as tanks, to modern defence capability such as information operations and technology to tackle the threat from cyber warfare. The overall size of the Army might be reduced too as the 82,000 troop target was dropped from the 2019 Conservative manifesto and the Government has found it increasingly difficult to meet this figure in recent years.

In light of the coronavirus pandemic, will the CSR seek to fund the crucial local government and social care services that have been under such strain in recent months? We will find out soon enough, but the problem isn’t going away for the Government. Leading thinktank the Institute for Fiscal Studies has warned recently of local government facing an additional £2bn funding shortfall this financial year. The IFS warned that the Government needed to decide on whether to offer local government additional support this autumn including allowing them greater borrowing flexibility or face seeing cuts to services.

The autumn 2020 Comprehensive Spending Review offers the Government and its relatively inexperienced Chancellor Rishi Sunak the opportunity to set out how it intends to operate over the coming years, as Britain adjusts to its new status, no longer in the European Union and adjusting to life after the pandemic, with all of the additional Government spending which that entailed. The Chancellor has said the CSR is: ‘Our opportunity to deliver on the third phase of our recovery plan – where we will honour the commitments made in the March Budget to rebuild, level up and invest in people and places spreading opportunities more evenly across the nation.’

Keeping track of the CSR or other political issues? Get a free trial of Vuelio Political Monitoring and make sense of new political times. 

In this series, we’re exploring how different sectors may be impacted by autumn policy announcements and how you can prepare for a period without physical party conferences.

One of the Conservative Government’s manifesto pledges ahead of the December 2019 election was to increase the number of new homes being built. The Chancellor spoke of an ‘infrastructure revolution’ in the March 2020 Budget – echoed by Boris Johnson in his recent Build Build Build speech – and announced new funding for an extension of the Affordable Homes Programme with a new, multi-year settlement of £12bn and over £1bn of allocations from the Housing Infrastructure Fund to build 70,000 new homes.

Despite this funding, the Covid-19 pandemic has inevitably impacted the delivery of new homes, with sites being shut down, projects facing difficulties securing labour and materials, and disruption to supply chains. The crisis has also had an impact on the removal of dangerous cladding, but building safety has remained high on the agenda, with the Government taking steps to implement the recommendations of the ongoing Grenfell Tower inquiry.

Planning White Paper
The long-awaited Planning White Paper was published on 6 August. It sets out reforms to streamline and modernise the planning process, bring a new focus to design and sustainability, improve the system of developer contributions to infrastructure, and ensure more land is available for development where it is needed. It contains proposals to give greater freedom for buildings and land in town centres to change use without planning permission and create new homes from the regeneration of vacant and redundant buildings. These changes aim to support both the high street revival – and minimise the damage caused by the changes in working trends – allowing empty commercial properties to be quickly repurposed and reduce the pressure to build on greenfield land by making brownfield development easier. The proposals are being consulted on until 29 October.

Building Safety Bill
Housing Secretary Robert Jenrick described the Bill as ‘the biggest change to our building safety regime for 40 years’. Businesses will need to quickly adapt to ensure they are prepared. Reforms include the creation of a new Building Safety Regulator, housed within the Health and Safety Executive, to oversee the safety and performance of all buildings and impose sanctions on those who fail in their responsibilities. Several new bodies will be set up to support its work, including a Building Regulations Advisory Committee, which will provide evidence-based guidance on new issues that emerge in the built environment sector; a Competence Committee, to create consistency amongst the competency of workers in the building safety sector; and a new residents panel. A Homes Ombudsman will also be established, and the safety of construction products will be granted to the Secretary of State. A draft bill has been published and is currently going through pre-legislative scrutiny before it is introduced to Parliament.

Consultation on Fire Safety
Published alongside the draft Building Safety Bill, the Fire Safety consultation is a key part of the Government’s package of reform to improve building and fire safety in all regulated properties. The consultation is seeking views on proposals to strengthen the Fire Safety Order, implement the recommendations from the Grenfell Tower Inquiry and strengthen the regulatory framework for how building control bodies consult with Fire and Rescue Authorities. The deadline to submit evidence is 12 October 2020.

Green Homes Grant scheme
The £2bn Green Homes Grant was one of the major updates in the Government’s Summer Statement — laying the foundations for a green recovery. The scheme, set to launch in September, will help homeowners in England improve the energy efficiency of their properties through a government grant of up to £10,000. The money, which will be distributed in the form of vouchers, can be used for a whole range of energy saving improvements including double-glazing, loft insulation, solid wall insulation and floor insulation. Homeowners and landlords in England and Wales can apply.

Public sector land review
Alongside the new planning rules and ahead of the Spending Review, the Government said that a new cross-government strategy will look at how public sector land can be managed and released so it can be put to better use. This would include home building, improving the environment, contributing to net zero goals and injecting growth opportunities into communities across the country.

English Devolution and Local Recovery White Paper
The Government has planned to bring forward the English Devolution and Local Recovery White Paper this Autumn, detailing how the UK Government will partner with places across the UK to build a sustainable economic recovery and launch the long-delayed National Infrastructure Plan.