Chair of UK Accounting Standards Endorsement Board appointed

  • Chair appointed to lead new board that will endorse and adopt international accounting standards at the end of the transition period
  • international accounting standards are used in over 125 countries, to increase transparency for investors and facilitate investment
  • the board will ensure the UK can continue to play a key role in the global development of these standards

Pauline Wallace has been appointed as the inaugural chair of the UK Accounting Standards Endorsement Board (UKEB).

The UKEB has been set up to endorse and adopt new or amended international accounting standards on behalf of the UK, when the transition period comes to an end.

The board will conduct research to ensure that the UK is at the forefront of developing opinions in accounting. It will also actively contribute to the development of financial reporting internationally, helping to ensure that UK views are effectively represented in this important area.

International accounting standards are in use in over 125 countries, including all G20 countries, enabling increased transparency, accountability and efficiency in the flow of capital between countries.

And they facilitate investment across borders by making it easier to compare accounts in multiple jurisdictions.

The UKEB will enable the UK to continue to play a leading role in international financial reporting and ensure the UK retains its status as home to one of the strongest capital markets in the world.

Minister for Corporate Responsibility Lord Callanan said:

Effective international accounting standards support vital global investment.

The new UK Accounting Standards Endorsement Board will ensure we continue to have a say in how those standards are set, helping deliver our aim to make our country the best place in the world to start and grow a business.

Pauline has a wealth of experience and knowledge of the UK accounting sector, and I am delighted to be able to appoint her to this important role.

Chair of the UK International Accounting Standards Endorsement Board Pauline Wallace said:

This is a pivotal moment for UK capital markets as we transition to UK adoption of international accounting standards.

I am delighted to have the opportunity to lead the UKEB as it undertakes this important task and to ensure that the UK continues to play a key role in the development of these standards globally.

About Pauline Wallace

Pauline has over 30 years’ experience in the development of accounting standards, both as a practitioner and as a standard setter. As a partner in PwC she established and led the global financial instruments accounting team before heading their UK public policy team. Since retiring from PwC, she served two terms on the Regulatory Decisions Committee of the FCA and is currently a member of the Determinations Panel at the Pensions Regulator. She is also a Director of Paradigm Trust, a multi-academy trust, and Chair of their Audit and Risk Committee.

About UKEB

  • Regulations made in 2019 confer the endorsement and adoption of international accounting standards function to Secretary of State for Business, Energy and Industrial Strategy at the end of the transition period. These powers will be delegated to the UKEB as soon as it is fully operational, which is expected to occur in early 2021
  • this includes the recruitment of seven to 14 Board members, to be selected after an open competition and appointed by the Chair, with approval from the Secretary of State
  • the Secretary of State will be responsible for endorsement and adoption of international accounting standards during the interim period and until the board is sufficiently operational
  • the UKEB’s role includes the endorsement and adoption of new or amended international accounting standards issued by the International Accounting Standards Board
  • it will report to the Secretary of State on technical matters and to the Financial Reporting Council (FRC) Board on its governance and due process procedures. The Secretary of State will lay the UKEB report on the discharge of its delegated functions before Parliament annually. Read further information on the UKEB
  • UK-adopted international accounting standards will be mandatory in the UK for listed companies when preparing their consolidated financial statements for financial years that begin after the transition period. Read further information on the accounting standards for UK companies after the end of the transition period



Prime Minister opening statement – second reading of the UKIM bill

Mr Speaker, I beg to move that the Bill be read a second time

and this House acts to preserve one of the crucial British achievements of the last three centuries: namely our ability to trade freely across the whole of these islands.

The creation of our United Kingdom that has stood for centuries

by the Acts of Union of 1707 and 1801

was not simply a political event

but an act of conscious economic integration that laid the foundations of the world’s first industrial revolution

and the prosperity we enjoy today.

When other countries in Europe stayed divided, we joined our fortunes together

and allowed the invisible hand of the market to move Cornish pasties to Scotland

Scottish Beef to Wales

Welsh beef to England

and Devonshire Clotted Cream to Northern Ireland or wherever else it might be enjoyed.

And when we chose to join the EU back in 1973, we also thereby decided that the EU treaties should serve as the legal guarantor of these freedoms.

Now that we have left the EU, and the transition period is about to elapse,

we need the armature of our law once again to preserve the arrangements on which so many jobs and livelihoods depend.

That is the fundamental purpose of this Bill,

which should be welcomed by everyone who cares about the sovereignty and integrity of our United Kingdom.

We shall provide the legal certainty relied upon by every business in our country

including, of course, in Northern Ireland.

The manifesto on which this Government was elected last year promised business in Northern Ireland – and I quote –

“unfettered access to the rest of the UK”

adding that we would – and I quote –

“maintain and strengthen the integrity and smooth operation of our internal market.”

This Bill is designed to honour that pledge and maintain those freedoms.

When we renegotiated our Withdrawal Agreement from the EU

we struck a careful balance to reflect Northern Ireland’s integral place in our United Kingdom

while preserving an open border with Ireland

with the express and paramount aim of protecting the Belfast (Good Friday) agreement and the peace process.

In good faith we accepted certain obligations in the Northern Ireland Protocol

in order to give our European friends the assurances they sought on the integrity of their single market

while avoiding any change to the border on the island of Ireland.

We agreed to conduct some light touch processes on goods passing between Great Britain and Northern Ireland

in case they were transferred to the EU

and we are conducting those checks in accordance with our obligations,

creating the sanitary and phytosanitary processes required under the Protocol,

and spending hundreds of millions of pounds on helping traders.

Under this finely balanced arrangement

our EU friends agreed that Northern Ireland would remain part of the customs territory of the United Kingdom,

able to benefit from the free trade deals with other countries which we are now beginning to strike

and ensuring that goods not “at risk” of travelling to the EU – and that is the majority of goods going from Great Britain to Northern Ireland – do not have to pay tariffs.

But the details of these intricate arrangements and the obvious tensions about provisions

can only be resolved with a basic minimum of common sense and goodwill from all sides.

I regret to have to tell the House that in recent months the EU has suggested that it is ready to go to extreme and unreasonable lengths

using the Northern Ireland Protocol in a way that goes well beyond common sense,

simply to exert leverage against the UK in our negotiations for a free trade agreement.

To take the most glaring example,

the EU has said that if we fail to reach an agreement to their satisfaction

they might very well refuse to list the UK’s food and agricultural products for sale anywhere in the EU

And it gets even worse.

Because under the Protocol this creates an instant and automatic prohibition of the transfer of our animal products from Great Britain to Northern Ireland.

Mr Speaker, are interlocutors on the other side are holding out the possibility of blockading food and agricultural transports within our own country.

Absurd and self-defeating as that action would be even as we debate this matter, the EU still have not taken this revolver off the table.

I still hope that they will do so

And that we can reach a Canada-style free trade agreement as well

Indeed it is such an extraordinary threat – and it seems so incredible that the EU could do this – that we are not taking the powers in this bill to neutralise that threat but obviously reserve the right to do so if these threats persist. Because I am afraid these threats reveal the spirit in which some of our friends are currently minded to conduct these negotiations.

It goes to what my learned friends would call the intentions of some of those involved in these talks.

As things stands, there are other avenues – in addition to the blockade on agricultural goods – that the EU could explore if they are determined to interpret the Protocol in absurd ways and if they fail to negotiate in good faith, we must now take a package of protective powers in this Bill and subsequently.

For example there is the question of tariffs in the Irish Sea.

When we signed the Protocol we accepted that goods “at risk” of going from Great Britain into the EU via Northern Ireland

should pay the EU’s tariff as they cross the Irish Sea,

but any goods staying within Northern Ireland would not do so.

The Protocol created a Joint Committee to identify with the EU which goods were “at risk” of going into Ireland

This sensible process was one of the achievements of our agreement

and our view is that this forum remains the best way of solving this question.

But I’m afraid some in the EU are now relying on legal defaults to argue that every good is “at risk” and therefore liable for tariffs.

That would mean Mr Speaker, tariffs that could get as high as 90 per cent by value on Scottish beef

Going to Northern Ireland moving not from Stranraer to Dublin

but from Stranraer to Belfast, within our United Kingdom.

Tariffs potentially over 61 per cent on Welsh lamb heading from Anglesey to Antrim

And potentially over 100 per cent on clotted cream moving from Torridge – to pick a Devonshire town at random – to Larne.

Mr Speaker, this is unreasonable and clearly against the spirit of that Protocol

They are threatening to carve tariff borders across our own country,

divide our own land,

change the very economic geography of the UK

and egregiously ride roughshod over their own commitment under Article 4 of the Protocol, whereby and I quote –

“Northern Ireland is part of the customs territory of the United Kingdom.”

Mr Speaker, we cannot have a situation where the very boundaries of our country could be dictated by a foreign power or international organisation.

No British Prime Minister, no Government, no Parliament could ever accept such an imposition.

Last year we signed the Withdrawal Agreement in the belief the EU would be reasonable.

Now, after everything that has recently happened, we must consider the alternative.

We ask for reasonableness, and common sense, and for balance

and we still hope to achieve that Mr Speaker, through the Joint Committee process

in which we always persevere, no matter what the provocation.

What we are seeking to do, is to insure this country, to protect this country, against the EU’s proven willingness to use this delicately balanced Protocol in ways for which it was never intended.

So this Bill includes our first step to protect our country against such a contingency

by creating a legal safety net

taking powers in reserve

whereby Ministers can act to guarantee the integrity of our United Kingdom.

I understand how some people will feel unease over the use of these powers.

And I share that sentiment myself

and I have absolutely no desire to use these measures.

They are an insurance policy

and if we reach agreement with our European friends

which I still believe is possible –

they will never be invoked.

And, of course, it is the case that the passing of this Bill does not constitute the exercise of these powers.

If they were ever needed, ministers would return to this House with a statutory instrument on which a vote would be held.

And we will simultaneously pursue every possible redress under international law, as provided for in the Protocol.

In addition to our steps in domestic law,

we would if we had to make clear that we believe the EU is engaged in a material breach of its duties of good faith, as required under the Withdrawal Agreement and the Vienna Convention on the law of treaties.

We will seek an arbitration, as provided for under the Withdrawal Agreement, and consider safeguards under Article 16 of the Protocol.

It is not a question of if we meet our obligations,

but how we fulfil them.

We must do so in a way that satisfies the fundamental purpose of the Protocol, the Belfast (Good Friday) Agreement and the constitutional position of Northern Ireland.

We will work with the EU on all of these issues

and even if we have to use these powers

we will continue to engage with the Joint Committee

so that any dispute is resolved as quickly and as amicably as possible,

reconciling the integrity of the EU single market with Northern Ireland’s place in the United Kingdom’s customs territory.

But what we cannot do now

is tolerate a situation where our EU counterparts seriously believe that they have the power to break up our country.

That illusion must be decently despatched,

and that is why these reserve powers are enshrined in this Bill.

In addition, Mr Speaker, this Bill will help deliver the single biggest transfer of powers to the devolved administrations since their creation,

covering a total of 160 different policy areas.

Each Devolved Administration will also be fully and equally involved in the oversight of the UK’s Internal Market

through a new independent body, the Office of the Internal Market.

The Bill will maintain our common cause of high standards

where we already go beyond the EU in areas ranging from health and safety to consumer and environmental protections.

And instead of UK taxpayers’ money being disbursed by the EU it will allow this Government to invest billions of pounds across the whole of the UK to level up

Mr Speaker, just a year ago this Parliament was deadlocked,

exasperating the British people by its failure to fulfil their democratic wishes

and, worst of all, undermining by our negotiators

by effectively telling the EU that if they played hardball,

this House would oblige them by weakening our country’s hand

and legally forbid our representatives from walking away from the negotiating table.

Mr Speaker, I hope this House will never make that mistake again

Instead, let us seize the opportunity presented by this Bill to send a message of unity and resolve.

Let’s say together to our European friends

that we want a great future relationship and a fantastic free trade deal

but we will not get there if they seek to divide us.

With this Bill we will support jobs and growth across the UK.

We will back our negotiators in Brussels,

And above all, we will protect the territorial integrity of the UK and the peace process in Northern Ireland

So I urge this House to support this Bill and get back to the business of securing a free trade agreement with our closest neighbours that we all wish to see.

And Mr Speaker, I commend this Bill to the House.




UK-Japan trade deal offers boost to Welsh businesses

Welsh lamb, Conwy mussels and Anglesey sea salt are among 15 iconic Welsh products that could be protected in Japan for first time as part of the UK-Japan trade deal.

The UK-Japan Comprehensive Economic Partnership Agreement was agreed in principle by International Trade Secretary Liz Truss and Japan Foreign Minister on a video call this morning (Friday 11 September).  It is the UK’s first major trade deal outside the EU.

The deal secures additional benefits beyond the EU-Japan trade deal, including a way for Welsh products to be officially recognised. By increasing geographical indications (GIs) from just seven under the terms of the EU-Japan deal to potentially over 70 under the UK-Japan agreement, this would lead to improved recognition of key UK brands in the Japanese market.

Products that could benefit from the new arrangements are: Welsh lamb, Anglesey sea salt, Carmarthen ham, Conwy mussels, Pembrokeshire early potatoes, Traditional Welsh Caerphilly, Traditional Welsh cider, Traditional Welsh perry, Vale of Clwyd Denbigh plum, Welsh laverbread, Welsh beef, Welsh regional wine, Welsh wine, West Wales coracle caught salmon, West Wales coracle caught sewin.

Rhug Estates is one Welsh farm keen to export its Welsh lamb to Japan. One of the biggest organic farms in Wales, its commitment to farming methods which embrace the highest animal welfare standards has led to exporting success around the world, in countries such as Singapore, Hong Kong and the UAE.

The Welsh Lamb brand is globally recognised for its premium quality, and Rhug Estates is the only UK farm to have been granted a royal warrant.

Rhug Estates Owner, Lord Newborough, said:

Our organic Welsh meat is used in Michelin-starred restaurants, and renowned for its quality around the world.

Japan is a market of interest to us, having the second highest number of Michelin stars and strong market demand for Welsh lamb and chicken.

We would welcome a UK-Japan trade agreement which will make it easier for us to trade there.

A deal could increase UK trade with Japan by £15.2 billion, giving a £1.5 billion boost to economy and increasing UK workers’ wages by £800 million in the long run. This will benefit the 277 businesses in Wales that exported to Japan last year and help even more local businesses to sell their goods to Japan for the first time.

The removal of several trade barriers aims to assist the UK’s 8,000 SMEs already exporting goods to Japan, by offering tariff-free trade on 99% of UK exports to Japan.

Other key benefits of the deal include:

  • Cutting-edge digital & data provisions that go far beyond the EU-Japan deal, including enabling free flow of data, a commitment to uphold the principles of net neutrality and a ban on data localisation that will prevent British businesses from having the extra cost of setting up servers in Japan.
  • Improved market access for UK financial services – including greater transparency and streamlined application processes for UK firms seeking licences to operate in Japan. The deal creates an annual dialogue between Her Majesty’s Treasury, UK financial regulators, and the Japanese FSA that will explore ways to further reduce regulatory friction – something that would be impossible were the UK still in the EU.
  • New protections for UK creative industries – British businesses can now be confident that their brands and innovations will be protected. We have gone beyond the EU on provisions that tackle online infringement of IP rights, such as film and music piracy.
  • Strong tariff reductions for pork and beef exports – we have negotiated a deal that sees tariffs fall on pork, beef, salmon and a range of other agricultural exports. We will continue to benefit from access to the low tariffs for key food and drink products covered by quotas, such as Stilton cheese, tea extracts and bread mixes. This forms a pathway to further market access under CPTPP, which has been committed to by Japan as part of our agreement.

International Trade Secretary Liz Truss said:   

This is a historic moment for the UK and Japan. This is our first major post-Brexit trade deal and it goes far beyond the existing EU deal by securing new wins for British businesses including in our great manufacturing, food and drink, and tech industries.  

From our Welsh lamb and Pembrokeshire early potato farmers to our Traditional Welsh cider breweries, this deal will create new opportunities for people throughout Wales and help level up the whole of the UK. 

Strategically, the deal is an important step towards joining the Trans-Pacific Partnership and placing Britain at the centre of a network of modern free trade agreements with liken-minded friends and allies.  

This is the first step towards the UK’s aim to become a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will open up 11 key pacific markets for exporters, reducing tariffs for UK business (95% of goods traded between members are tariff-free).

Secretary of State for Wales Simon Hart said:

This deal is a huge step forward for the UK’s trading relationship with Japan and will benefit businesses in every corner of Wales. It improves access to vital markets for a wide range of industries including financial services, food and drink and the creative sector in which Welsh companies are leaders.

Whether it is Anglesey sea salt, West Wales Salmon, or plums from the Vale of Clwyd, it will be fantastic to see some of the finest Welsh produce on the tables of Japanese household for many years to come.

One Welsh business already experiencing success in the Japanese market is the Penderyn Distillery, which exports its Penderyn Single Malt Whiskies, Brecon Gin and Brecon Five Vodka to a number of premium retailers and venues in the country via Japanese partner Axas Corporation. The Penderyn Distillery exports around 35% of its premium spirits worldwide and over the last two years it has exported over £100,000 worth to Japan.    The company employs 65 members of staff from its site on the southern tip of the Brecon Beacons, chosen because if its supply of fresh natural spring water. Penderyn’s single malt whisky is produced on its unique Penderyn Faraday whisky stills.  

Stephen Davies, Chief Executive of the Penderyn Distillery, said:

Our spirits are attracting growing attention on the world stage which is underpinned by the quality of what we produce here in Wales.

Japan is a very premium and important market for our spirits, especially single malt whisky, where it is very much a priority market for the future.

We are building the brand with growing reputation in what is a very sophisticated spirits market.




Direct Rail Services lifts Environmental Responsibility award

News story

Direct Rail Services (DRS) has won the Community and Environmental Responsibility award at this year’s Rail Freight Group awards.

DRS Class 88 'bi-mode' locomotives

DRS Class 88 ‘bi-mode’ locomotives

Image credit: Direct Rail Services

The prestigious Rail Freight Group awards showcase excellence in all aspects of rail freight and the benefits it brings to the country. This year the awards took on a different feel as they were virtual but it didn’t dampen spirits or detract from the fantastic work happening across the industry.

The Community & Environmental Responsibility award recognises initiatives that demonstrate environmental improvement, for instance, cutting noise, improving air quality and developing new rail freight flows which reduce road congestion, or otherwise reduce environmental impact.

The judges commended DRS’s ‘Zero Harm’ campaign – to protect employees, assets and the environment – the company’s extensive work within the community, the ground-breaking use of their Class 88 bi-mode locomotives, modifying its Motherwell depot to reduce noise for local neighbours, and its work to help reduce emissions across the rail industry.

Chris Connelly, DRS’ Managing Director, said:

We’re absolutely thrilled to be recognised for our community and environmental work. DRS is committed to working within our communities and working to protect the environment.

We’re maximising the use of our excellent Class 88 locomotives, which has cut CO2 emissions by 25% over the last year and produce zero exhaust emissions when running on the overhead lines, and are looking at a variety of ways to reduce our overall carbon footprint. Rail freight produces an average of 76% fewer CO2 emissions when compared to road transport so it is a huge part of helping to protect our environment.

I could not be prouder of all of my colleagues as this is their award and every single one of them has contributed. This is just the beginning and we will be doing all we can to continue this outstanding work.

DRS is a wholly owned subsidiary of the Nuclear Decommissioning Authority (NDA) and supports its decommissioning mission as the UK’s only rail freight operator licenced to transport nuclear material.

NDA Commercial Director and DRS Chair, Kate Ellis, said:

DRS makes a vital contribution to the NDA’s decommissioning mission and I am delighted to see them win such a prestigious award, everyone in the NDA is committed to making improvements to our communities and our environment and it shows we are all moving the right direction.

Published 14 September 2020




Talented transport tech start-ups to receive funding boost of over £1 million

  • creative start-ups to be given a share of £1 million to see ideas brought to life
  • projects that support COVID-19 recovery and decarbonisation to benefit
  • previous winners of funding include firm who developed new satellite antenna to provide reliable high-speed broadband to rail journeys

Innovative transport start-ups with a focus on decarbonisation or COVID-19 recovery can bid for a share of over £1 million (£1,010,000) in Department for Transport funding from today (14 September 2020).

Transport-Technology Research and Innovation Grants (T-TRIG), which is now in its 11th round of funding, is open to entrepreneurs and innovators pioneering new ways of creating a better transport system. Over 60% of grants so far have been awarded to SMEs and 30% to universities.

T-TRIG brings together talented start-ups and policymakers at the earliest stages of innovation and by issuing targeted investments of up to £30,000 for each project, the fund aims to help budding entrepreneurs and academics propel their ideas to market quicker.

Transport Minister Rachel Maclean said:

As we continue to follow our greenprint for a transport recovery from COVID-19, it is imperative we work with startups at the cutting edge of technology to help us build back more sustainably and today’s competition launch will do exactly that.

That’s why supporting innovation is a priority for this government, as we start to travel again safely while also seeking to solve the complex challenge of decarbonising transport.

The government has provided £5.4 million through T-TRIG over the past 5 years to more than 170 technology and innovation projects with successful winners including Wayfindr and Infinect. Wayfindr was able to develop a system that helps blind and partially sighted people navigate towns and cities using Bluetooth-enabled beacons and smartphones. Infinect, which received T-TRIG funding in 2017, has developed a new satellite antenna to provide reliable high-speed broadband to rail journeys, significantly improving the passenger experience.

Investment from this fund has often been a precursor to funding from private investors and over £25 million in additional investment, largely from the private sector, has been secured off the back of successful projects awarded funding since the scheme began.

George Goussetis, Principle Investigator for Infinect, said:

In addition to providing the resource, T-TRIG gave us the credibility and confidence to focus our efforts on addressing the needs of the railway sector using satellite technology. This in turn has led to further funding successes that are supporting technological and commercial developments and we are presently quite excited to be part of an ecosystem that looks to solve tomorrow’s problems with tomorrow’s technology.

T-TRIG 2020 was announced during a roundtable held by Transport Minister Rachel Maclean where she heard about the challenges small businesses face today in commercialising new technology, products and services. The SMEs involved also met with senior government representatives and policy makers, who are actively invested in helping the UK economy thrive by supporting our community.

The Minister also announced at the roundtable a separate £500,000 competition to fund the development of products or services that would improve the ability for disabled people to use the transport network. Bids for the Accessibility-Technology Research Innovation Grant (A-TRIG) will be open until the end of November.