Thirty Ninth Report Contents

Instruments of interest

Draft Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018

CRC Energy Efficiency Scheme (Revocation and Savings) Order 2018 (SI 2018/841)

20.These instruments change the reporting requirements of companies in relation to emissions, energy consumption and energy efficiency and provide for the early closure of one of the UK’s emissions trading schemes. The Department for Business, Energy and Industrial Strategy (BEIS) explains that both measures are part of a package of changes that were announced in the 2016 Budget, with the aim of simplifying what stakeholders view as an overly complex tax and policy landscape. The draft Regulations introduce new requirements for companies from 1 April 2019 to disclose information about their emissions, energy use and actions on energy efficiency in annual directors’ reports or energy and carbon reports. These new requirements will apply to both quoted companies and large unquoted companies. BEIS says that the aim is to deliver greater transparency and consistency in company reporting in this area, and to ensure that reporting on emissions continues following the early closure of the Carbon Reduction Commitment (CRC) Energy Efficiency scheme, as provided for in SI 2018/841. This mandatory trading and reporting scheme was first launched in April 2010 and aims to incentivise energy efficiency and cut emissions in large energy users in both the public and private sector. The scheme was scheduled to operate until 2043 but BEIS explains that it has decided to close it early in response to feedback from stakeholders who regard the scheme as overly complex and difficult to administer. 2018–19 will be the last compliance year for which participants will be required to report their energy use and surrender CRC allowances to cover their emissions. BEIS says that lost revenue from the early closure of the scheme will be recovered by increasing the main rates of the Climate Change Levy, a tax on energy delivered to non-domestic users in the UK, from April 2019. This tax increase has already been put into statute.

Statement of Changes in Immigration Rules (Cm 9675)

Immigration and Nationality (Fees) (Amendment) (EU Exit) Regulations 2018 (SI 2018/875)

21.These instruments5 set up the key features of the EU Settlement Scheme announced in the Government’s Statement of Intent on the EU Settlement Scheme.6 SI 2018/875 sets out the fees for the process, which will not apply in many cases and, where they do apply, will not exceed the cost of a passport (currently £75.50). The Statement of Changes in Immigration Rules introduces the new Appendix EU to the Immigration Rules to provide a basis on which resident EU citizens and their family members, and the family members of certain British citizens, can apply for leave to remain in the UK beyond the end of the planned post-exit implementation period on 31 December 2020. The instrument provides a self-contained set of Immigration Rules for the EU Settlement Scheme, which will, for the purposes of applications under Appendix EU, displace any provision made elsewhere in the Immigration Rules which would otherwise apply. An initial test phase of implementation will begin on 28 August 2018 and will be limited to volunteers from certain specified institutions.7 This provides a group of about 4,000 potential applicants and will enable the Home Office to test the relevant processes and ensure that they work effectively before the scheme is opened more widely. Further legislation will be required to roll out subsequent phases.

5 See also the affirmative instrument on the Immigration (Provision of Physical Data) (Amendment) (EU Exit) Regulations 2018 mentioned in our 36th Report, Session 2017–19 (HL Paper 173).

6 Home Office, EU Settlement Scheme: Statement of Intent. June 2018: [accessed 5 September 2018].

7 (i) A student enrolled for study at, or a person on the payroll of, one of the following institutions: Liverpool Hope University; Liverpool John Moores University; or The University of Liverpool; or (ii) A person on the payroll of one of the following institutions: Aintree University Hospital NHS Foundation Trust; Blackpool Teaching Hospitals NHS Foundation Trust; Countess of Chester Hospital NHS Foundation Trust; East Lancashire Hospitals NHS Trust; Lancashire Teaching Hospitals NHS Foundation Trust; Liverpool Heart and Chest Hospital NHS Foundation Trust; Liverpool Women’s NHS Foundation Trust; Southport and Ormskirk Hospital NHS Trust; The Royal Liverpool and Broadgreen University Hospitals NHS Trust; The Walton Centre NHS Foundation Trust; Warrington and Halton Hospitals NHS Foundation Trust; or Wirral University Teaching Hospital NHS Foundation Trust.

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