Awareness of Employment Rights on the rise

More than three quarters of people claim they feel well informed about their employment rights – a rise of 13 per cent - according to figures published today by the Department for Business, Innovation and Skills (BIS).

The 2008 Fair Treatment at Work Survey (FTWS) also shows that problems with specific employment rights have fallen with more people prepared to seek information and advice on problems that do arise. In particular, problems with pay and working time (including annual leave) have more than halved since 2005.

Minister for Employment Relations, Lord Young, said:

“The results of the Fair Treatment at Work Survey are very positive. They show the real progress we have made in raising awareness of workplace rights amongst employees and employers”.

“But whilst these are good results, there are a number of vulnerable groups who are still more likely to have problems at work and be less aware and knowledgeable about their rights than the general population. That is why the Government will be announcing further help for vulnerable workers later this month”.

Key findings include:

78 per cent of the working population feel well or very well informed about their rights generally compared with 65 per cent in 2005

85 per cent claim to know where to find information on their rights if they need it compared to 76 per cent in 2005

Specific employment problems affect around 27 per cent of the working population compared with 41 per cent in 2005

In particular problems fell significantly with; pay (22 per cent in 2005 to 10 per cent in 2008), hours/days required to work (12 per cent to 6 per cent); rest breaks (13 per cent to 5 per cent) and annual leave (13 per cent to 5 per cent).

More people with problems are prepared to seek advice or information for their problem (72 per cent) compared with 2005 (53 per cent)

The Government is currently in the second year of a three year campaign to raise awareness of the workplace rights they enforce. The first year targeted agency workers, and led to an increase of 300 per cent in calls to the Employment Agency Standards Inspectorate helpline. The next stage of the campaign will be announced later this month.

Government publishes report into collapse of MG Rover

The Government today published the results of an independent investigation into the collapse of the MG Rover Group (MGRG).

The inquiry was set up by the then Secretary of State for Trade and Industry after MGRG, the manufacturer of Rover and MG cars, went into administration on April 8, 2005 owing creditors nearly £1.3 billion.

Business Secretary Lord Mandelson today published the findings and announced that lawyers have already begun work compiling the underlying evidence required to bring proceedings against the relevant directors to prevent them holding company office in future. He also decided the report should be referred to the Financial Reporting Council, the regulatory body for auditors, accounting and corporate governance.

In addition he has today written to the Business and Enterprise Select Committee after the Inspectors found inaccurate and misleading explanations were given to MPs and others, including some evidence given by one of the directors to the Select Committee.

Gervase MacGregor FCA and Guy Newey QC were instructed to investigate the affairs of MGRG, its parent company Phoenix Venture Holdings (PVH) and MGR Capital Limited between the purchase of MGRG from BMW in May 2000 and the date of it entering administration.

The inspectors investigated the actions of the directors of PVH throughout their 5 year ownership - particularly Peter Beale, John Edwards, Nick Stephenson and John Towers, known as the Phoenix Consortium or Phoenix Four.

They also investigated restructuring changes within the Group which led to the creation of 33 separate companies throughout that period; the scale of financial rewards made to the directors and the events which led to administration itself. This included the role of Government to secure bridge finance while take-over discussions took place with Chinese car manufacturers Shanghai Automotive (SAIC).

The inquiry studies the role played by professional advisors including auditors and corporate finance advisers Deloittes and lawyers Eversheds; aspects of corporate governance; and financial statements and audit arrangements including the transfer of assets.

The inspectors also investigated the purchase, installation and operation of computer software to eliminate evidence held by one of the directors, Peter Beale, the day after the inquiry was announced.

The inspectors also looked at explanations the directors had given to MPs and found that Peter Beale gave inaccurate and misleading explanations to the Trade and Industry Select Committee on 30 March 2004 about why the Phoenix Partnership was involved in the MGR Capital joint venture.

Business Secretary Lord Mandelson today said:

“This has been a painstaking enquiry by independent inspectors. It was important to get all the facts into the open so that workers who lost their jobs and creditors who were not paid know the truth.

“Action is being taken. Based on this report, work has been commissioned to start legal proceedings to seek to declare relevant directors unfit to hold office and to disqualify them from management of any company in future.

“I have today written to the Business and Enterprise Select Committee to ask them to look into the serious findings in the report that one of the MG Rover directors, Mr Beale, misled their Committee about the reasons for setting up a joint venture with MGR Capital. It will be for the Committee Chair to decide whether any action should be taken.

“We are also determined to learn any lessons we can to ensure greater transparency about the impact of decisions which directors are making and the state of the companies they are running. To this end, I am asking the Financial Reporting Council to review the report to see whether changes to audit or accounting standards or guidance should be considered.”

The Secretary of State has received advice from independent Queen’s Counsel that the findings made by the inspectors, if supported by the underlying documents, are such that a Court is likely to find that at least some of the Directors are unfit to be concerned in the management of a company. If successful this would lead to these Directors being disqualified from being directors or otherwise involved in the management of the company. Work has already begun on considering the underlying documents and compiling the evidence that would be needed to commence director disqualification proceedings. Thereafter, the usual procedures will be followed.

• The report has been sent to the Accounting and Actuarial Discipline Board (part of the Financial Reporting Council) which is currently investigating the work done by Deloitte’s for the Rover Group. The AADB will review the Inspectors’ report to see whether there are issues which need to be followed up.

• The Inspectors suggested that improvements could be made to auditing and reporting standards that would increase transparency in financial statements. The FRC issued guidance earlier this year to companies and auditors on Going Concern issues in the light of current economic conditions and is currently consulting on updated core guidance on Going Concern. The FRC will now be asked to look at lessons from the Rover case and to consider whether any further guidance should be issued to auditors.

• The Inspectors suggest that although the transfer of assets and tax losses between companies with the Rover Group was in accordance with accounting standards, readers of the financial statements would have been better informed had the “true or potential value of these assets been explained”. They suggest that making such disclosures mandatory would improve understanding of a company’s financial performance. The UK Accounting Standards Board (also part of the Financial Reporting Council) will now be asked to consider the issues raised by the Report.

The report is available at: www.bis.gov.uk/mgrover-report

Low Carbon Opportunities for Graduates

Low carbon vehicle and marine energy industries are to benefit from a new placement scheme that will see more talented graduates enter this key sector, putting their new skills to use while gaining vital career experience.

Speaking at the UUK conference David Lammy announced the creation of the Low Carbon Future Leaders placement scheme, a Backing Young Britain initiative that will give 1,500 graduates the opportunity to work and gain paid work experience in a sector that will be providing the jobs for the future.

Graduates will work with businesses to help raise awareness of technological developments and new business opportunities while gaining work experience in these emerging industries.

David Lammy, Minister of State for Higher Education said:

“Our young people are key to the UK’s future success in winning the jobs of the future, which is why we have created the Future Leaders initiative. This will give graduates opportunities in a fast growing and increasingly important industry, improving their future job prospects while providing businesses with their specialist knowledge and skills.

“Backing Young Britain is not just a response to the recession but an investment in our future. This is why we launched the Graduate Talent Pool, matching graduates to more than 5,000 internships and announced 47,000 new jobs for young people as part of the Future Jobs Fund. We also made an additional 10,000 university places available this year for STEM subjects to ensure we continue to provide highly skilled individuals for these sectors.”

The Low Carbon Future Leaders sits alongside the thousands of other opportunities available to new graduates that will help them improve their chances to get a long term and well paid career. These include:

· Over 5,000 internships through the Graduate Talent Pool matching service;

· Around 24,000 additional postgraduate places - supported by extra Professional and Career Development Loans next year;

· 250 short term placements through Mini Knowledge Transfer partnerships, rising to 500 in 2010/11;

· Thousands of existing volunteering options available through “V”, an organisation aimed at young people between 16-25, and other voluntary organisations;

· 500 teach first opportunities in 2009, up 130 from 2008.

This initiative is part of the Backing Young Britain campaign which is providing funding of £40m for new internships and work placements for graduates and 10,000 places for non-graduates. This funding will support the development of a new mentoring network to help young people find their feet in a tough jobs market and offer more help from day one of unemployment through job clubs and 1-2-1 support.

HEFCE will work with universities and regional partners to determine the most effective way of implementing the initiative.

Over £125,000 won back for workers

New figures reveal that since April the Government has won back over £125,000 in unpaid wages for agency workers.

The Employment Agency Standards inspectorate – which over the last year has boosted its powers and doubled in size - has won back more than twice as much money for workers since April than in the entire previous year.

Business Minister Pat McFadden said:

“Over the past year we have given the Agency Standards Inspectorate more staff and more powers to protect agency workers. I’m pleased that the bigger, more powerful agency standards team is out there delivering results for agency workers.

“The recession should not be used as an excuse to deny people their employment rights, and the agency standards inspectors are a crucial tool in ensuring this.”

In June, EAS inspectors recovered over £17,000 for four engineers in West Sussex. As a result of not being paid on time, one man had to sell his car to pay his rent, and another had to borrow money from relatives to pay his mortgage. But once EAS inspectors were contacted, the workers received £15,000 within three days, with the remainder arriving shortly after.

Kevin Green, Chief Executive at the Recruitment and Employment Confederation said:

"At a time when many workers are using agencies as a route back into the labour market we must drive workers and employers alike to use agencies which abide by the law and industry standards.

“For many years the REC has argued for better enforcement on the sector and we are pleased to see the inspectorate is taking action at a time when the industry itself has launched its own 'Serious About Standards' campaign."

Kirsty Craig, Managing Director of TEAM (The Employment Agent’s Movement) UK commented that it is great to see the EAS using its teeth to deal with rogue agencies:

“This sort of behaviour does our industry no favours whatsoever and whilst most recruitment agencies more than fulfil their obligations to their temporary staff, there are others who consistently flout the law time and again. These people need to understand that they are not above the law and that appropriate action will be taken”.

The inspectors also recovered almost £30,000 owed to 55 models after a London agency ceased to trade.

Katie Froud, of Albamodel.info, who runs the Model Alliance said:

“The Alliance is grateful to the Agency Standards inspectorate team who acted immediately upon our request to secure funds for models when we were alerted to an agency ceasing to trade.

“It is totally unacceptable that models who work irregular hours with irregular pay can lose the money paid by clients which is due to them”.

The Employment Agency Standards team has recovered money for workers in a number of circumstances, including where agencies had not paid wages owed, where money had been unfairly deducted by the agencies and where workers were charged for services by the agencies that they had not signed up to.

Agency workers can find out more about the rights they are entitled to by visiting www.direct.gov.uk/agencyworkers or by calling the Pay and Work Rights helpline on 0800 917 2368

Government to appoint Chief Adviser on Construction

Ministers today announced the Government’s response to the recent consultation exercise on the appointment of a Chief Construction Officer.

The Government plans to appoint a Chief Adviser to Government on Construction to equip Britain's construction industry with the skills and knowledge to become competitive in the 21st century. He/she will chair the Board responsible for securing value for money from the Government’s procurement of construction, promote innovation and sustainability in the industry, and be responsible for ensuring Government takes full account of the impacts of the regulatory regime on the construction industry.

The Chief Construction Adviser will be independent and report to BIS and HM Treasury Ministers. The successful individual will:-

Chair a new Construction Category Board, which will build on the existing Public Sector Construction Clients Forum (PSCCF), to oversee the implementation and further development of best value Government construction procurement.

Chair an enhanced sustainable construction strategy delivery board to help ensure policy regarding the industry is effectively co-ordinated.

Assess the key barriers to growth in the UK’s Low Carbon construction sector to ensure the UK industry is well placed to serve developing needs and markets

Work with the industry, through the Strategic Forum for Construction, to deliver the industry improvement agenda, including the Construction Commitments.

Promote innovation in the sector, working closely with the Technology Strategy Board and other funding bodies.

Co-ordinate the Whitehall response to reports featuring construction.

Ian Lucas, the Business Minister with responsibility for construction, said:

“We have taken our time to get the role right to ensure that it fits well with a range of new and existing initiatives. But I have heard the calls from the Construction Industry loud and clear since my appointment in June. We are now pressing hard ahead with recruiting. I want to see a high quality individual in place by November”.

Ian Pearson, the Economic Secretary, said:

“This role will provide a central “focal point” for the construction sector acknowledging the value of this sector and the importance of delivering a sustainable and low carbon economy that remains competitive. The Chief Construction Adviser will help ensure that Government secures maximum value for money in its procurement of construction and thus support the aims of the Operational Efficiency Programme”.

Statement from Higher Education Minister David Lammy on A level results

Higher Education Minister David Lammy said:

“I want to congratulate the hundreds of thousands of students who have worked hard and got the grades they needed to go to university this year and with more than 370,000 students having their places confirmed, more students than ever before will be heading into higher education.

"The Government is committed to funding and growing higher education. This is why students this year are taking advantage of the record number of funded places on offer backed by a generous financial support package.

“Those students who don't get the grades they need shouldn't panic as there's a broad range of options open to them including clearing, reapplying for next year or seeking work experience or training supported by our Backing Young Britain campaign. To find out more you can speak to a trained advisor on the exams helpline on 0808 100 8000

Government Invests £340million In Next Generation Aircraft Design And Manufacture

Lord Mandelson today announced that the Government has agreed to support Airbus with up to £340 million repayable launch investment for the development of the A350 XWB

Building on the New Industry, New Jobs agenda as well as our latest advanced manufacturing initiatives announced on 29 July, the support further demonstrates the government’s commitment to the our advanced manufacturing sector, as part of a balanced economy helping to build Britain’s future.

The support, drawn partially from the Government’s £750m Strategic Investment Fund, will enable Airbus in the UK to strengthen its position as a world leader in wing, landing gear and fuel integration systems technologies and ensure the UK plays a leading role in the development of the A350 XWB, as it has done on previous Airbus programmes. This support will create and sustain more than 1,200 jobs within Airbus across Filton and Broughton sites as well over 5,000 within the supply chain across the UK.

Through increased use of advanced composite materials in the construction of the wing and other parts of the aircraft, the A350XWB will be lighter – delivering significant environmental benefits, including around 15% reductions in CO2 emissions - essential to delivering on our low carbon agenda.

Today’s announcement of £340m of support follows on from our commitment to provide £60m of support for GKN to design and develop the rear spar and trailing edge of the A350 XWB.

Business Secretary Lord Mandelson said:

“This agreement is excellent news for the UK aerospace sector and for the thousands of British workers within Airbus and its UK-based supply chain”.

“The UK’s aerospace industry is world-class and capable of competing successfully with companies across the world. We recognise the vital role Airbus, and its supply chain, play in the UK.

“Aerospace is a sector that we are rightly proud of in the UK. It stimulates innovation across industry, demonstrates our capability to work with the most advanced technologies, and provides high-quality, highly skilled employment. It is a sector at the heart of our advanced manufacturing strategy.

“This agreement is further evidence of this government’s long-term commitment to the UK aerospace industry and its future success. Aerospace is one of the UK manufacturing’s crown jewels, and manufacturing is one of the UK economy’s crown jewels.”

Tom Enders, Airbus president and CEO, said

"We welcome the UK government's decision to invest in the A350 XWB, the most advanced, innovative, and eco-efficient aircraft in its market segment. This partnership with the UK government means that the UK taxpayer can expect a sound return on their investment, and ensure the aviation industry continues to thrive in Europe and around the world."

Universities Are Central To Economy And Social Mobility - Lord Mandelson Says In Keynote Speech

In his first major speech on higher education since taking responsibility for it under the Department for Business, Innovation and Skills (BIS), Lord Mandelson today outlined his views on the essential issues facing universities ahead of an HE Framework on the future shape of the sector that he will publish later this year.

To an audience of university vice chancellors and representatives from across the HE sector, he emphasised the crucial role universities play in building a stronger UK economy and responded to some of the key challenges of social mobility raised in Alan Milburn’s report ‘Unleashing Aspiration’ on access to the professions published last week.

Ahead of an independent review on university tuition fees due later this year, Lord Mandelson said the central questions around how higher education is funded cannot be separated from the issue of access to a university education for those from poorer backgrounds.

Speaking at Birkbeck College, London, he said:

“Over the last decade we as a country have invested hugely in our universities. We have actively pursued a policy of widening access. We have put knowledge and science at the centre of our vision of our economic future, and protected its funding at unprecedented levels.

“We have instituted a fees system that has, in my view, been a radical and signal success in strengthening the resources available to universities without sacrificing accessibility to students.

“But we are obviously facing an incredibly difficult decade of rebuilding growth and future strengths in Britain. There are tough decisions ahead. Our graduates face the toughest job market for years. And ultimately those big twentieth-century higher education questions are still with us. For what end? For whom? Paid for how?”

Outlining the key role of universities on the economy, Lord Mandelson said: :

“It seems to me that in defining the economic role of universities we come up with a set of linked challenges all of which are tied to the critical role of universities at the heart of a knowledge economy.

“Equipping people as rounded intellectual beings but also giving them the skills they will need in a global economy.

“Turning more of the knowledge that is generated in UK universities into jobs and growth, especially by bringing businesses and universities together to collaborate.

“These are management challenges for individual universities; but they are a strategic challenge for the UK as a whole. The diversity of mission statements and the autonomy of universities in defining precisely how they serve their students and customers is clearly vital. But there is also a need for a collective strategic vision for the sector and its role in our national economic life. That is the balance we will aim to strike in the Higher Education Framework.”

On social mobility and Alan Milburn’s report, Lord Mandelson said:

“A university education remains the gateway to the professions and a ticket to higher lifetime earnings on average. So I think we have to ask: why, for all the work in the sector and all the seriousness with which it has tackled this question are we still making only limited progress in widening access to Higher Education to young people from poorer backgrounds – especially at our most selective universities?

“We clearly need to look again at how, and how early we identify and engage potential candidates for university. I am attracted to the idea of stronger links between the professions, universities and schools - work experience, early mentoring, clearer lines of communication about what preparing for university and a career in the professions means at every stage of secondary education.

“I agree with Alan Milburn that as well as the usual criteria of standardized testing, there is a strong case for using other more contextual benchmarks for talent spotting that look at the way candidates have exploited the opportunities open to them in their lives. Some universities in the UK are using these approaches. There is good evidence that they work. And any Vice Chancellor that takes a broad and innovative approach to identifying talent will have the firm backing of the government.”

Lord Mandelson made it clear that he would not pre-empt the independent review of fees planned for launch in the autumn. He added:

“I do not believe that we can separate the issues of fees, access and student support. Any institution that wants to use greater costs to the student to fund excellence must face an equal expectation to ensure that its services remain accessible to more than just those with the ability to pay.

“Whatever funding mix for higher education we develop, there must always be a link between what an institution charges and its performance in widening access and supporting those without the ability to pay.”

Stronger Protection For Consumers Borrowing Money

Consumers taking out new deals on credit and store cards and personal loans are set to benefit from enhanced protection.

The Department for Business has today published proposals for draft regulations to take forward the implementation of the Consumer Credit Directive.

These include new requirements to promote responsible borrowing and lending, as set out in the recent Consumer White Paper.

Lenders will have to check consumers’ creditworthiness before they borrow, and fully explain financial products. Consumers will also be allowed a 14-day period within which to withdraw from credit agreements.

The finalised regulations will implement the requirements of the Directive to provide transparent, standardised information - helping consumers compare products, including the cost of credit on offer.

Consumer Affairs Minister Kevin Brennan said:

“These changes will build on the real help we’re already providing for homeowners, savers, pensioners and people with debts.

“Lenders will have to check creditworthiness and provide the information consumers need to make properly-informed decisions before they sign an agreement. Consumers will also have a new 14-day period within which they can opt out if they have second thoughts.”

The provisions are being published in draft form to allow experts to provide feedback on their effect. The intention is for new laws to be introduced by the end of the year – well in advance of the Consumer Credit Directive coming into force in June 2010.

10,000 extra higher education places to help more students go to university this year

An extra 10,000 places are being made available to universities to support more students going into higher education this year, Lord Mandelson announced today.

The Government will pay the student support costs for full time undergraduate entrants to science, technology, engineering and maths subjects - areas which will equip young people with the skills they need for the jobs of the future.

The Government is taking this action to invest through the downturn and build a stronger Britain at a time when applications to universities are at their highest ever.

Today’s announcement builds on the record numbers of students currently at university and the record number of places on offer.

Business Secretary Lord Mandelson said:

“By making available 10,000 extra places in science, technology and maths we are not only helping more individuals with the ambition and ability to go to university but also investing in this country’s future.

“Our expansion of higher education is more important now than ever as we continue to invest in a highly skilled workforce to win the jobs of the future and lead the way in building Britain’s future.”

The Government will fund financial support for the extra students over the duration of their higher education course. For full time students this includes maintenance grants and loans to cover tuition fees. Today’s funding is in addition to more than £5 billion the Government is already spending on student support this year.

This is a fiscally neutral change - the costs of supporting the extra students will be met through reprioritising existing budgets and reducing the optional five year holiday on repayment of student loans to two years.

This additional funding for student support, which will be reprioritised from within existing BIS budgets, comes after discussions between the Government and the HE sector on managing increased demand with institutions having said they are able to recruit more students without compromising the quality of their offer.

Higher Education Minister David Lammy said:

“In tougher times it is right that we continue to invest which is why we are providing funding today to help meet some of the unprecedented demand to study at university.

“This Government has hugely expanded higher education with 300,000 more students at university than in 1997 supported by a 25 per cent increase in funding over the same period.

“We want to support people with the ability and talent to go to university because it is good for those individuals and the future of our economy.”

Toyota to manufacture full hybrid Auris in the United Kingdom

Toyota Motor Europe (TME) today announced plans to manufacture a full hybrid version of its C-segment hatchback, Auris, at its UK-based facility in Burnaston, Derbyshire.

Production of Toyota’s first European-built full hybrid will kick-off at Toyota Motor Manufacturing (UK) Ltd (TMUK) in mid-2010. Engines will be produced at TMUK's facility in Deeside, North Wales.

The announcement, which coincided with a site visit by UK First Secretary of State and Secretary of State for Business, Innovation & Skills Rt. Hon. Lord Mandelson, underlines Toyota’s commitment to expand its offering of low-emission hybrid vehicles to customers in Europe.

‘With today’s announcement, Toyota has taken a significant step forward in ensuring that full hybrids become more accessible to a wider range of customers. Such efforts are crucial if we are to see more low-carbon vehicles on European roads,’ said Tadashi Arashima, CEO and President, TME.

‘Our decision to produce a full hybrid in the UK reflects both our confidence in the quality and commitment of the TMUK workforce and the strength of our long-standing partnership with the UK Government. Today’s announcement is positive for Toyota, our UK suppliers and the local communities here,’ he added.

Business Secretary Lord Mandelson said: ‘This is a welcome and forward-looking investment in Britain from a world class manufacturer. As part of our low carbon industrial strategy we set out to make Britain the best place in the world to develop low carbon vehicles. These commitments, backed by the formidable skills of the UK automotive workers enable companies like Toyota to invest with confidence in low carbon car production in the UK. It demonstrates that the UK's car industry is already making the low carbon transition.’

The Toyota Auris hit the European market place in spring 2007. Since then, it has sold over 370,000 vehicles. Under the new Toyota Optimal Drive technology, Auris now comes equipped with a 1.33-litre dual VVT-I engine and Toyota’s Start&Stop technology, reducing CO2 emissions by 17% (135 g/km) and improving fuel consumption by 19% (48.7 mpg combined cycle).

TMUK started production in 1992 as Toyota’s first manufacturing company in Europe and today employs around 4,100 workers. The plant has produced over 2.5 million vehicles to-date, including the Carina E, Corolla, Avensis and Auris, for sale in Europe and export overseas. TMUK represents a total investment of over £1.85 billion and is one of nine Toyota manufacturing companies in Greater Europe.

Strategy For Low Carbon Businesses to Benefit British Jobs

The Low Carbon Industrial Strategy, launched today, sets out the action the Government is taking to ensure that British businesses and workers are equipped to maximise the economic opportunities and minimise the costs of the transition to a low carbon economy.

The strategy follows from Building Britain’s Future: New Industry, New Jobs, and sets out how the Government aims to ensure that the transition to low carbon is a source of quality jobs and business savings in Britain: from our rapidly developing civil nuclear industry and renewable energy sector, to energy saving in our smallest SMEs.

The strategy identifies a range of low carbon sectors with potential for job creation and growth. These include: wave and tidal power; civil nuclear power; offshore wind; and ultra-low carbon vehicles. It also sets out the Government’s strategy for removing barriers that are blocking the development of Britain’s full potential in these areas.

The strategy recognises that local and regional strengths offer a good foundation to realise future economic benefits for Britain. The first Low Carbon Economic Area in the South West of England will create a business and skills focus on marine energy demonstration, servicing and manufacture.

The strategy also sets out the first investments from the £405 million for low carbon industries and advanced green manufacturing announced at Budget 2009. Key investments include:

• Up to £60 million to capitalise on Britain’s wave and tidal sector strengths, including investment in Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast – and other funding to make the South West Britain’s first Low Carbon Economic Area.

• Up to £15 million capital investment in order to establish a Nuclear Advanced Manufacturing Research Centre consisting of a consortium of manufacturers from the UK nuclear supply chain and universities.

• A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities, including support for suppliers for the civil nuclear industry.

• Up to £10 million for the accelerated deployment of electric vehicle charging infrastructure.

• Up to £120 million to support the development of a British based offshore wind industry.

The strategy also recognises that there are challenges for the workforce particularly for those in high carbon industries. The Government will create a new Forum for a Just Transition to advise on how to address the issues, with representatives from Central Government, national, local and regional bodies, Trade Unions, business organisations, and third sector bodies.

Announcing the strategy Business Secretary Peter Mandelson said:

“There is no high carbon future. But if the transition to low carbon is inevitable, what is not inevitable is that we use the transition as a chance to develop new jobs, new industries here in Britain. This strategy builds on the New Industry New Jobs approach, outlining the strategic role the government will play alongside the private sector, to make the most of the potential benefits for innovation, growth and job creation in the UK.

“Low carbon and environmental goods and services are already worth £3 trillion to the global economy, and in the UK employ nearly 900,000 directly and through the supply chain. With the sector set to grow by over 4% per annum over the next six years we must do all we can to support British businesses and workers in benefitting. Today we are announcing the first investments under the £405M funding allocated in the budget. We must ensure that we equip businesses and the workforce with the capabilities and skills to take advantage of the potential benefits as the world moves towards a low carbon future.”

Life Sciences Blueprint to build a strong and healthy future for Britain

The Office for Life Sciences (OLS) Blueprint sets out to transform the UK environment for life sciences companies and ensure faster patient access to cutting-edge medicines and technologies.

The OLS forms part of the Government’s active industrial policy.

Agreed across Government, and with industry, academia and the NHS, key actions include:

· The Government, with the National Institute for Health and Clinical Excellence (NICE), will introduce an "Innovation Pass", a 3-year initiative that will make selected innovative medicines available on the NHS for a time-limited period. The Pass will be piloted in 2010/2011, with a budget of £25 million; (cf 2.5)

· The NHS Chief Executive will review system levers and incentives, including Payment by Results, to accelerate the uptake of medical technologies; (cf 2.9)

· The Government will reinforce the need for greater emphasis on research and clinical trials in the next NHS Operating Framework; (cf 2.10)

· From 2010, the Society of Biology will begin to accredit undergraduate bioscience degrees to help ensure that graduates leave with the core mathematical and practical skills and competencies required by employers; (cf 3.5)

· The Government will support the formation of a UK Life Sciences Super Cluster to co-ordinate work across industry, Higher Education and the NHS, and to boost international recognition of UK life sciences; (cf 3.9)

· The Technology Strategy Board (TSB) will launch an £18 million “RegenMed” programme of investment to support commercial R&D with additional funding from the Medical Research Council, the Engineering and Physical Sciences Research Council, and the Biotechnology and Biological Sciences Research Council. The TSB has also committed to improve its expertise in the life sciences. (cf 4.8)

· The Government will invest an extra £1 million to promote the UK and NHS brands at flagship life sciences events in the UK and overseas.

Lord Drayson, Minister for Science & Innovation, said:

“The UK life sciences have everything going for them: world-class facilities, talented scientists and entrepreneurial flair. By championing innovation, the NHS can support the life sciences industry in developing ways to improve people’s health. And we are changing how industry, academia, Government and the NHS work together to create jobs and ensure a bright future for this country."

Lord Darzi, Health Minister for Quality and Innovation, said:

“By placing innovation at the heart of healthcare delivery we will help create a pioneering NHS, one that responds to patients expectations, and one where the adoption of new ideas and the diffusion of innovation is encouraged and supported.

"Establishing a culture of innovation is also essential for the NHS to meet any current economic challenges, and the Life Sciences Blueprint will help us continue to support this country's knowledge industries and ensure that we benefit from the competitive edge which they provide.”

Andrew Dillon, Chief Executive of NICE, said:

“Securing a successful future for the life sciences industries is important for patients and the UK economy. NICE is committed to engaging constructively with companies and we are extending the access that companies have to us, as we appraise their products. The Innovation Pass is an opportunity for data to be gathered on potentially important new treatments. NICE has been involved in discussions about the Innovation Pass, and we are looking forward to continuing to play a key role in developing the Pass.”

The Blueprint forms a key part of Building Britain’s Future, the Government’s vision for the country’s future on the other side of the recession. As first set out in “New Industries, New Jobs”, the Government is pursuing a new, more active industrial policy to drive growth and create high-value jobs of the future.

British Innovation Gets Recognition

Call made for all new ideas and innovative companies to enter inaugural iawards

The first Government backed innovation awards, the iawards, were launched today by Science and Innovation Minister Lord Drayson and leading businessman James Caan. The awards, launched at the Science Museum, aim to celebrate the best of cutting edge British science and technology.

Innovation and science will play a key role in building a stronger and more competitive economy able to take advantage of the upturn. The iawards will recognise those people and businesses that will help to do this.

The Prime Minister Gordon Brown said:

“New innovations will help us build for the future and take advantage of new opportunities in low carbon, digital technology, bioscience and advanced manufacturing.

“The iawards will celebrate and recognise Britain’s most innovative entrepreneurs.”

Science and Innovation Minister Lord Drayson said:

“Now more than ever we need to support and celebrate British innovation.

“New ideas and products will get us out of the downturn and provide the foundations on which we can build Britain's future. The next iPlayer, Spotify and Ecotricity are out there and the people that will create these successful companies need to be supported and celebrated. The iawards will do just that.”

James Caan said:

“Britain is home to some of the greatest minds in the world. We are the nation that invented the jet engine, created the code for the Internet and led research on the human genome project. Science and technology will shape the future of our economy. This is why it is so important for the iawards to recognise and honour Britain’s innovators for the vital contribution they make to our economy.”

Entries for the 13 categories are open to all organisations, but must specify the British involvement in any innovation - demonstrating that innovative thinking and development came from a British organisation or team.

The awards categories reflect the greatest challenges we face as country where science and innovation offer the best chance of developing viable solutions. Each entry must demonstrate how its innovative qualities relate to at least one of the following challenges:

• addressing the healthcare needs of a aging society;
• increasing international security from tackling global poverty to minimising the threat of terrorism;
• preserving finite natural resources in the face of population growth and climate change; and
• delivering public services which make best use of new technologies.

They must also demonstrate that the innovation has an impact on one of the Governments grand challenges for science.

The iawards will be run by the Department for Business Innovation and Skills. Siemens will sponsor the ‘Next Big Thing' category and Microsoft will sponsor the best technology start up category.

Winners of the awards will be helped by UK Trade & Investment (UKTI) to meet potential business partners at key industry events such as the giant Medica trade fair in Germany and TechnologyWorld in Coventry this autumn. They will also receive public relations support from the iawards team. All of shortlisted entries and the winners will also have exclusive access to the iawards logo.

Science and technology has been a driving force behind Britain’s export success. Exports for life sciences, for example, rose 19% in 2008. Innovation is also important in keeping the UK as the number one destination for inward investment in Europe. UKTI statistics show that the number of investment projects in creative industries increased by 65% in 2008/9 and in software and computer services by 36%.

Mandelson urges New European Commission to be "Europe's Economic Conscience"

Lord Mandelson has argued today that the new European Parliament and next European Commission must be "Europe's economic conscience", pushing European member states to work together to rebuild Europe's economic strength. Mandelson argued that reforming financial markets and rebuilding sustainable economic growth demanded an even greater recognition of the European dimension of economic policy from European states .

Lord Mandelson, who was European Trade Commissioner 2004-2008 and is now UK Business Secretary said: "No matter how badly a downturn might tempt us to think and act in national silos, the next five years will in fact demand an even greater Europeanism from us".

In particular Mandelson said EU state must guard against using the recession as an excuse to "renationalise" parts of the single market, which he said would be "a huge mistake for innovation, enterprise and growth in Europe...Measures that push the state back into running parts of the economy or put the openness of the single market into reverse are a mistake. This crisis should not become a pretext for resurrecting the protectionist and state interventionist arguments that decades of experience has discredited in Europe".

However Mandelson argued that globalisation required that European states be active in equipping people and the European economy with the resources to compete in a global economy . He argued that the next European Commission should lead a debate on how best to do this by benchmarking best practice in education, training, research and development, infrastructure and the social security systems allowing workers to move easily between jobs and adapt to rapid economic change.

Mandelson described a European competitiveness policy "that looks at individual people, rather than individual jobs, the business environment rather than individual businesses and high levels of productivity rather than individual products".

Mandelson proposed that the next Commission should set a targeted agenda of single market liberalization for the goods and services that will be key to Europe's comparative advantages in the years ahead: low carbon goods and services, business and commercial services, network services like broadband and digital communications. He also said that alongside ending the emergency flexibilities in European state aid rules in 2010, the Commission should take an increasingly tough line in enforcing single market rules.

Mandelson's proposals for the next Commission included:

* Setting an ambitious new European target for apprenticeships;

* A radical refocus of the European budget towards investment in research into green innovation;

* A Commission-led audit of Europe's skills needs and a focusing of the European Social Fund spending on training people with the skills of the future;

* Creating a single European patent system with a fast track for green technologies;

* Drawing up a European action plan for ensuring that every home and business in the EU has access to broadband within a few years.

Lord Mandelson strongly endorsed Jose Manuel Barroso for a second term as European Commission President saying that he had spent his first term as President "pushing us to see the reality of our collective European economic future".