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Transport secretary, Philip Hammond, has confirmed that the ‘Plug-In Car Grant’, designed to stimulate demand for low carbon vehicles, will go ahead from January 2011. Speaking at the Society of Motor Manufacturers and Traders’ (SMMT) offices, Mr Hammond confirmed that from next year, motorists will be entitled to a ‘Plug-In Car Grant’ of up to £5,000 when buying an electric, plug-in hybrid or hydrogen fuel cell car, providing it meets safety, reliability, performance and warranty standards set by the Office for Low Emissions Vehicles (OLEV) in consultation with industry. Mr. Hammond said: “The coalition government is absolutely committed to low carbon growth, tackling climate change and making our energy supply more secure. We are sending a clear signal that Britain is open for business and that we are committed to greening our economy. This will ensure that the UK is a world leader in low emission vehicles.” The low carbon incentive programme was first announced last year and details were set out of the winners of the ‘Plugged-In Places’ scheme. This initiative saw UK cities and regions bid for investment to further the development of the ultra-low carbon infrastructure. The Plugged-In Places investment will see the installation of over 11,000 charging posts in London, Milton Keynes and North East England.
2. Lord Heseltine to chair approval panel for Regional Growth Fund
Government has announced that Lord Heseltine will chair the Independent Approval Panel for the Regional Growth Fund, which is believed to total £1bn. The new Panel will consider proposals for funding and recommend to ministers which projects should be taken forward. Sir Ian Wrigglesworth will be deputy chair. The Regional Growth Fund has been set up to provide support for projects that offer significant potential for sustainable economic growth and can create new private sector employment. It will aim to help areas and communities currently reliant on public sector employment make the transition to private sector led growth and prosperity. The fund was announced at Budget and will operate over two years. In a consultation government is seeking views on how the fund should be designed to best meet the needs of areas and communities across England.
3. Launch of a ‘Financing a Private Sector Recovery’ paper
Vince Cable and George Osborne have launched a paper to encourage an industry-led recovery by addressing the problems businesses face accessing finance. Government has recognised that businesses must gain access to credit to survive and grow. The current paper says system is not adequately delivering finance to small, growing businesses that are vital to the future of the economy. The business secretary and chancellor want to work with business and the financial community to ensure access to finance is not a barrier for companies looking to invest in the economy. The paper, ‘Financing a Private Sector Recovery’, sets out the finance options for different sized businesses, explores where the market is failing to provide and if there is a role for government intervention.
4. Secretary of state gives evidence at the Transport Select Committee
Philip Hammond, secretary of state for transport, has given evidence at the Transport Select Committee. When asked about road policy, he confirmed government had “ruled out” road tolling for the life of this parliament. While he said it was appropriate to focus on "model shift" in some situations, in the case of many suburban areas the motor car is "hugely important to people". Mr. Hammond later said: "I think we have to be realistic about future transport policy, we have to accept the motor car is an important part of peoples' lifestyle in a prosperous society. I hope it's clear, over coming decades we will be successful through technical innovation in de-carbonising road transport. We will no longer have to look at road transport as an evil in terms of its contribution to greenhouse gas emissions".
5. 5. Trade visit to India aimed at boosting economic relationship
Prime minister David Cameron led a delegation to India of government ministers, including business secretary Dr. Vince Cable and universities and science minister David Willetts, promoting trade and business links between the UK and India. During the two day visit they travelled across the country to highlight the potential economic benefits for both countries of stronger business ties. A series of agreements and formal partnerships were concluded that aim to help boost growth for both nations. Trade and investment, higher education, science, infrastructure projects and the creative industries were high on the agenda as the two business ministers met their counterparts in the Indian government, influential Indian business figures and academics. Dr. Cable said: “This is the first significant business delegation the new Government has sent overseas. That’s a reflection of the importance we place on India as an economic partner. The trade and investment relationship our two countries already have is good – but the Government has much higher ambitions and during this visit we want to lay the foundations for a stronger, more successful relationship.”
6. Experts call for reform of UK's skills system to boost economy
Experts have warned that the UK's economy is set to slide down the international rankings unless its skills and employment systems are fundamentally reformed and improved. The report, "Ambition 2020", published by the UK Commission for Employment and Skills, says that 10 million people need to improve their skills if the UK is to achieve its ambition of being in the top eight countries in the world for skills, jobs and productivity by 2020. It also calls for an increase in the number of apprenticeships available for young people and adults; for prospective students to be given more and better information about the range of courses and qualifications on offer; and for more encouragement for businesses to create highly-skilled jobs. Chris Humphries CBE, chief executive of UKCES, said: "At the moment, our economy is still world-class - quite an achievement for such a small island. But we're living on past glories. Economic success rests on three legs - skills, jobs and productivity - and we are well below average on the first of these. Unless swift and decisive action is taken, we can expect the UK's economy to begin to slide down the international rankings.”
In the first ever Annual Energy Statement to Parliament, energy and climate change secretary Chris Huhne has set out 32 actions of coalition energy and climate change policy. Six illustrative ‘2050 Pathways’ show an 80% cut in emissions is achievable. A wew online ‘2050 Calculator’ enables the public to explore the trade-offs in building a 2050 energy system. The UK’s energy and climate change policy was altered for the long term, supported for the first time by analysis of pathways to a secure, low carbon energy system in 2050. Chris Huhne said: “The coalition brings resolve and stability to energy and climate change policy. Today’s Annual Energy Statement sets out 32 important actions to introduce the transparency, certainty and long-termism needed to unlock investment. The challenge is ambitious but achievable. We’re already on track to cut the UK’s emissions by 34% by 2020, and will do more if we can win the case for greater ambition across the whole EU. But our line of sight needs to extend much further, through to the middle of the century.”