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Welcome to the April BABN Policy and Trade Update.
It has clearly been an important month for the UK in particular, with the EU-UK announcement of the Windsor Framework, the Chancellor's Spring Budget, the newly published government response to the independent Net Zero review, and the announcement of the UK’s accession to CPTT – all important policy developments that helped build up credibility for the UK on an international stage. If the latter is persistent will be shown the third edition of the BAB/ Bain & Company Confidence Index for which they survey has been sent to a selected group of companies. The results will be released as part of the BritishAmerican Business Network Conference on June 13th, 2023 in London. Learn more HERE.
Responding directly the UK’s and US’s recent sustainability policy efforts, BAB released its latest white on paper Pro-Business, Pro-Growth: Recommendations for the US-UK Sustainability Agenda.
See below for a breakdown of policy and trade headlines.
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UK Spring Budget
15 March 2023
In this Spring budget, the UK Government made steps to support business after months of economic and policy uncertainty.
Key takeaways:
- The corporation tax rate raised from 19% to 25%, taking effect from 1 April 2023.
- 12 Investment Zones were announced across the UK as part of the "levelling up" agenda. Each zone will have access to £80m over 5 years.
- Full capital expensing will be available for 3 years, replacing the super-deduction regime.
- £20 billion has been set aside to support carbon capture technology.
- Relief for loss-making R&D intensive SMEs will be available from 1 April 2023.
Our view: BAB is disappointed in the confirmation of the corporation tax increase, but welcome support provided to the business community offered through the new investment zones and much anticipated replacement policy to the super-deduction regime.
Read BAB's full statement in response to the Spring Budget here.
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BAB Sustainability White Paper:
Pro-Business, Pro-Growth
29 March 2023
This month, BAB published our latest white paper Pro-Business, Pro-Growth: Recommendations for the US-UK Sustainability Agenda, outlining recommendations for the US and UK government to support business on the path to decarbonisation and to take advantage of the economic opportunities in the green transition.
With massive recent investments on the climate transition in the US, and newly announced plans for investment in clean energy in the UK, this paper comes at a pivotal moment for transatlantic business and for government.
Key recommendations:
- The US needs to ensure that the Inflation Reduction Act (IRA) can be fully implemented at speed.
- The UK should see the IRA as an opportunity for British business but also respond to the IRA with its own set of incentives.
- The UK and US should put emphasis on clear, consistent and equivalent regulation
- The US and UK should raise the global bar on green trade.
- The US and UK should use existing dialogues and collaboration platforms to further advance overarching objectives on economic collaboration, green trade, and regulation.
BAB encourages policymakers and businesses to consider the opportunity for the US and UK economies to take advantage of the green transition. The US and UK should work together to raise the bar on green trade, energy, sustainable finance, technology, innovation and skills.
Read the newly published paper here.
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'Green Day' and Updated Net Zero Strategy Response
30 March 2023
Following the publishing of the independent Net Zero Review Mission Zero in January, the official government response was released on Thursday, part of a 44 document and 2, 800 page release outlining the government's green plans.
Why it matters: The Mission Zero report published earlier this year pointed to the huge economic opportunities presented by the green transition and American and British businesses across the UK are already seizing this opportunity and driving green, sustainable growth.
At the same time, further support is needed from government in order to unlock the UK's potential as a green superpower. With massive investment in clean growth, energy, innovation and infrastructure in the US and EU, business has been clear in its ask for similar coordination and investment from government in the UK.
The announcements this week are a welcome step towards delivering net zero and making the UK an attractive destination for green investment.
Notable announcements:
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An updated Green Finance Strategy, to capitalise on the UK's world-leading strengths in financial services
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Consultation on the UK's pathway to net zero aviation and transport decarbonisation package
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Net Zero Growth Plan, responding to the Mission Zero recommendations and outlining strategy to deliver net zero and green growth across the economy
Look out for: The BAB Sustainability White Paper, providing recommendations to the UK and US Governments to ensure the efficient implementation of sustainability policies.
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Retained EU Law
Bill
27 March 2023
Update: The REUL bill approaches its next sitting in the House of Lords during its report stage on Wednesday 19th April.
Its impact: Introduced in September 2022, the bill aims to remove all EU law still in UK statute law by the end of 2023, as announced within the Queen's Speech in May 2022. There are serious business concerns regarding the proposed timeline, lack of appropriate consultation, and potential conflict with obligations under the TCA.
BAB will continue to monitor legislative progress, and please get in touch with Sophie Rahemanji ([email protected]) with any specific comments.
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Foreign Influence Regime Scheme
7 March 2023
Update: Proposed amendments for FIRS were accepted in Parliament this month during the most recent House of Lord's sitting.
Key change: Registration is limited to engagement with the UK government which is specifically directed by a foreign power, thus removing the need for American companies to register.
Look out for: Guidance will be published prior to the implementation of FIRS, and there will be an annual review of the scheme.
Read BAB CEO Duncan Edward's statement here.
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2022-23 Trade and Investment Guide
April 18 2023
Keep an eye out for: The 2023 BAB Trade Guide on US investment into the UK will be published next month on April 18.
What is it: The Trade Guide is an annual publication, offering a point of reference for all those who want to make the step across the Atlantic, as well as supporting the growth of those who have already done so. From guidance on the leading industries and growth regions in each country, to practical advice on issues you need to consider as a growing business, these publications are a must-read for any company with transatlantic ambitions.
Finding Your Way is produced by BritishAmerican Business (BAB) in partnership with leading member companies and regional partners. It is endorsed by both the U.S. and UK Governments. For more information about the Guide, or if you'd like to support the release in April, please contact Catharine Carstens (ccarstens@@babinc.org).
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DBT United Kingdom Conformity Assessment Roundtable Series
April - May 2023
What: DBT are holding a series of roundtables with stakeholders from a wide range of sectors in April and May across London Edinburgh, and Manchester. They will help the department to understand how to make the UK's approach to product marking as easy as possible for industry whilst ensuring we continue to protect consumers.
Why: Following Brexit, the UK introduced the UKCA marking as a way of demonstrating products comply with UK product regulations. Further flexibility was provided to industry on product marketing requirements in product sectors managed by DBT by extending recognition of the CE marking and bringing a range of easements into force, making it easier to meet UKCA requirements.
Get involved: To be involved in the stakeholder process for UKCA requirements, sign up for an Industry Roundtable here.
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DBT North America Trade Show
Feb 27 - March 10 2023
Where: The DBT North America Roadshow concluded this month after a successful tour of twelve cities across the UK, reaching all corners from Cambridge, to Edinburgh, to Cardiff.
What: The roadshow sessions offered practical advice sessions for UK small businesses, including on state procurement, doing business in the US and Canada, SelectUSA, immigration, and available support services for SMEs.
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Thank you for reading this month's Policy and Trade Update. If you have any feedback or comments please contact us.
BAB participates in and offers policy and trade support to the BritishAmerican Business Network, a group of over 20 independent trade organisations across North America and the UK. If you would like to learn more about the network and its activities, please visit our website.
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