A boost to UK growth, CMA’s warning continues, plus government grants to tackle the risk posed by AI
Last week the Chancellor announced plans to increase long-term investment in the UK, the CMA continues to warn unregulated legal service providers to ensure they fully support consumers and the government announces plans to providing funding to tackle the risk posed by AI.
Chancellor reveals new investment bodies to boost UK growth
In her final speech at the International Investment Summit last week, Chancellor Rachel Reeves announced two major initiatives aimed at driving long-term investment in the UK. These moves are designed to create more high-skilled jobs and support growing industries across the country.
New National Wealth Fund
Reeves revealed that the UK Infrastructure Bank will now operate as the National Wealth Fund (NWF).
With a budget of £27.8 billion, the NWF will focus on attracting private investment into key sectors like clean energy, green hydrogen, and carbon capture. The goal is to accelerate the UK’s transition to a greener economy while creating jobs and growth opportunities.
British Growth Partnership
The Chancellor also introduced the British Growth Partnership as part of the British Business Bank (BBB).
This initiative aims to create a new way for BBB and institutional investors to invest together in innovative companies. The BBB plans to start investing through this programme by the end of 2025.
What it means for businesses
These new bodies could bring fresh funding opportunities for businesses. However, with timelines stretching into 2025, it might take a little time before investments start flowing. Businesses should stay informed as these initiatives develop.
See: https://www.gov.uk/government/news/chancellor-announces-new-plans-to-secure-uk-investment
CMA issues warning to unregulated legal service providers amid consumer protection concerns
The Competition and Markets Authority (CMA) is stepping up its efforts to protect consumers opting for unregulated legal services, such as will writing and divorce arrangements, which are becoming increasingly popular alternatives to traditional high street solicitors.
As the use of these services grows, the CMA is acting to ensure that businesses offering them comply with consumer protection laws, safeguarding people from unfair practices.
In its latest move, the CMA has issued letters to seven providers of unregulated legal services, warning them against problematic business practices such as aggressive upselling, refusal of refunds, and failure to address complaints. These companies have been urged to review and revise their contract terms and operational practices, or face the risk of formal investigation, with the CMA set to gain enhanced enforcement powers next year.
If concerns are not addressed, the providers could be subject to further action, including fines and penalties.
Rising demand, growing risks
While alternative legal services can offer cost-effective solutions, especially when budgets are tight, the CMA is concerned that people may not always be fully informed about what they are paying for or the options available.
This is particularly important in situations like writing a will or getting divorced, where services are not frequently purchased, and consumers might be unfamiliar with the process.
The CMA is therefore releasing new guidance for businesses providing these services, outlining their obligations to ensure that they:
- Provide fair contract terms and transparent pricing.
- Deliver services with reasonable care and skill.
- Avoid misleading or aggressive sales tactics.
To boost compliance, the CMA has issued an open letter to all providers of unregulated legal services, urging them to adopt best practices. The authority plans to monitor the sector and conduct a formal compliance review in the near future.
Empowering consumers
In tandem with its guidance to businesses, the CMA has also published consumer guides to help people make more informed decisions when selecting will writing or divorce services. These guides are designed to encourage consumers to ask the right questions and be aware of their rights.
A particular area of concern highlighted by the CMA is pre-paid probate services, which come with significant risks, including the potential for companies to go out of business before the person’s death, leaving their estate unprotected. Consumers are advised to carefully consider these services before purchasing, with additional warnings issued by the Financial Conduct Authority.
Stronger powers on the horizon
The CMA’s intervention follows the introduction of the Digital Markets, Competition and Consumer Act 2024, which will grant the authority stronger enforcement powers. From next year, the CMA will be able to directly determine whether businesses have breached consumer law and impose fines, as well as require firms to compensate consumers who have been harmed by unfair practices.
Hayley Fletcher, the CMA’s Interim Senior Director for Consumer Protection, stressed the importance of compliance, stating: “Unregulated legal services can offer convenient and affordable alternatives to traditional solicitors, but it is essential that businesses treat consumers fairly. Our new guidance empowers both consumers and businesses, helping to ensure that people are not misled or taken advantage of during difficult life events.”
Ongoing monitoring and compliance
The CMA will continue to monitor the unregulated legal services market closely and is prepared to take further action if necessary. Issuing guidance and warnings now, appears to be an initial effort to improve standards, but it seems clear that the authority will take increasingly severe action if this becomes necessary.
For more information on the new guidance for businesses and consumers, see: https://www.gov.uk/cma-cases/will-writing-and-other-unregulated-legal-services
New government grants to boost research on AI risks
Researchers in the UK are being offered new funding opportunities to explore ways of making society more resilient to the risks posed by Artificial Intelligence (AI). These risks include emerging threats such as deepfakes, misinformation, and cyber-attacks, and the funding is intended to support work aimed at ensuring AI’s safe and responsible use.
This initiative, launched last week, is a collaboration between the government, the Engineering and Physical Sciences Research Council (EPSRC), and Innovate UK, which is part of UK Research and Innovation (UKRI). The initiative is focused on exploring how AI systems can be made safer, and will also support research to tackle the threat of AI systems failing unexpectedly, for example in the finance sector.
Why this research matters
AI is considered to hold significant potential to drive long-term economic growth and improve public services. However, there are risks that come with AI, including system failures and misuse.
The government is keen to promote and maximise the benefits of AI across the UK economy and therefore it is looking at ways to ensure that as AI is adopted across different industries, it remains safe, reliable, and trustworthy.
Grant opportunities
The Systemic Safety Grants Programme, overseen by the UK’s AI Safety Institute, has opened applications for its first phase, which is set to distribute up to £4 million in funding.
This programme is part of a broader £8.5 million fund that was first announced at the AI Seoul Summit in May, so further phases of grant funding will become available in the future.
Here are the key details:
- Who can apply: UK-based organisations can apply, but projects may include international partners.
- Funding: Up to £200,000 per project for around 20 selected projects in the first phase.
- Focus areas: The opening phase aims to deepen understandings over what challenges AI is likely to pose to society in the near future.
- Application deadline: Proposals must be submitted by 26th November 2024.
- Timeline: Successful applicants will be notified by the end of January 2025, and grants will be awarded in February 2025.
Final thoughts
For researchers interested in contributing to the future of AI safety, this funding could present a significant opportunity.
If your business is involved in AI development or research, it could be worth considering if you could benefit from this opportunity to apply for grant funding and play a part in the ongoing development of AI and safety in its use.
For more information and guidance on how to apply for the grant scheme, see: https://www.aisi.gov.uk/grants.