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Page 1: In stark contrast to Parliaments return from the Easter ... · Report Stage in the Lords The European Union (Withdrawal) Bill is the Government s key piece of Brexit legislation

DeHavilland Information Services Ltd 2018 0

For more information on DeHavilland and

how we can help with political monitoring,

custom research and consultancy, contact:

+44 (0)20 3033 3870

[email protected]

www.dehavilland.co.uk

\

Page 2: In stark contrast to Parliaments return from the Easter ... · Report Stage in the Lords The European Union (Withdrawal) Bill is the Government s key piece of Brexit legislation

DeHavilland Information Services Ltd 2018 1

In stark contrast to Parliament’s return from the Easter recess last year, there is little prospect of

Prime Minister Theresa May announcing a snap general election outside Downing Street. The result

of it, one that Ms May must surely regret given she failed to secure a majority in Parliament, has

defined the UK political landscape and Parliamentary arithmetic ever since. Reliance on a confidence

and supply agreement with the Democratic Unionist Party continues to pose challenges as the

Government pursues its legislative programme, not least with Brexit-related legislation when

rebellious Conservative MPs decide to flex their bargaining power.

The ramifications of the General Election result were apparent in last year’s Queen’s Speech which,

as commentators highlighted, was a notably scaled-back programme. At the time, Labour Leader

Jeremy Corbyn dismissed the Queen’s Speech as “threadbare”, declaring that the Government had

“apparently run out of ideas altogether”.

Whilst such a criticism was perhaps expected from the Opposition, accounting for the fact that the

current Parliament will sit for a two-year session rather than the usual one, it is true that the

Government’s 27 bills can be judged as being low in number. In comparison, the Government put

forward a total of 51 bills in the 2015 and 2016 Queen Speeches.

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What also became clear from the 2017 Queen’s Speech was the extent to which Brexit-related

legislation will dominate the Government’s agenda. Of the 27 bills announced in the 2017 Queen’s

Speech, eight of these concern Brexit and the implementation of it.

Delivering a statement to MPs following the Queen’s Speech, Ms May said it sought to deliver “the

will of the British people with a Brexit deal that works for all parts of our United Kingdom and that

commands the greatest possible public support”.

However, rather than strengthening her hand in the Brexit negotiations, something which influenced

Ms May’s thinking in calling a snap general election, the resultant Hung Parliament achieved quite

the opposite. Ever since, the Government has had to contend with an emboldened House of Lords,

as well as around 20 pro-EU Conservative MPs, described contentiously by the Telegraph as

“mutineers”, and the European Research Group of around 80 pro-Brexit MPs within its own ranks.

On top of this, there was already an awareness within Whitehall concerning the complexities which

would arise from Brexit-related bills – something which Leader of the House of Commons Andrea

Leadsom explained was a principal factor in the decision to have a two-year Parliament.

As it has transpired, the debates around those Brexit bills introduced so far have proven to be

fraught and charged. This has led to some heated exchanges in Parliament and, aside from the

embarrassment, some significant defeats for the Government by the time of writing.

With the European Union (Withdrawal) Bill, these have manifested themselves both in the

Commons – when MPs backed an amendment in December 2017, tabled by Conservative MP

Dominic Grieve, to give themselves a vote on the final Brexit deal – and in the Lords.

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Regarding the latter, peers inflicted two further defeats at Report Stage only last week after they

backed an amendment requiring the Government to report on the steps it is taking to negotiate a

customs union with the EU, alongside another amendment which seeks to limit the Government's

powers to amend legislation without primary legislation. On top of this, the Government was

defeated twice on the Nuclear Safeguards Bill at Report Stage in the Lords over how it was

approaching the future UK-EU relationship with regards to Euratom.

The turbulence accompanying the European Union (Withdrawal) Bill’s passage through Parliament

shows no sign of abating. The Government is coming under an ever-increasing amount of pressure

on issues ranging from the UK’s membership of a customs union with the EU to a ‘meaningful vote’

on the final Brexit deal.

Given the scale of the defeats suffered by the Government already at Report Stage, ministers are no

doubt expecting more which will ultimately culminate in a tense bout of Parliamentary Ping-Pong in

May. As Mark D'Arcy, the BBC’s Parliamentary Correspondent, says, “MPs should make sure they

have a toothbrush and a few changes of clothes handy because they can expect some long nights

debating”.

Looking further ahead, the Guardian highlights how several pieces of Brexit legislation – ranging

from the Immigration Bill to the Agriculture Bill – have yet to be introduced in Parliament. The

paper argues that this “Parliamentary logjam will mean the Government is likely to struggle to pass

vital legislation paving the way for leaving the EU before the Parliamentary vote on the final Brexit

deal”.

Whilst the Government still has confidence it “can pass the necessary legislation in good time”, the

Times suggests certain ministers, such as Home Secretary Amber Rudd, are facing a growing chorus

of calls to “speed up” the progress of the Immigration Bill.

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Delivering her first speech as Prime Minister outside Downing Street on 13 June 2016, Theresa May

declared that her Government’s mission would be “to make Britain a country that works for

everyone”. She echoed this in her introduction to the 2017 Queen’s Speech, arguing that the

legislative session would, leaving aside “Bills geared towards making a success of Brexit”, also

“contain a number of measures to build a stronger economy so we can improve people’s living

standards and fund public services”.

In this vein, whilst judgements concerning the Government’s success in realising this aim will

depend on an individual’s political viewpoint, there are a series of Bills which have a more non-

Brexit focus. Something which possibly alludes to Ms May’s determination to not let Britain be

“defined by Brexit”, something she is reported to have told her Cabinet in July 2016.

These range from the Laser Misuse (Vehicles) Bill, which seeks to make provision for making it an

offence to shine or direct a laser beam towards a vehicle and the person in control of it, to the

Sanctions & Anti-Money Laundering Bill, which deals with the entirely different subject of detecting,

investigating and preventing money laundering and terrorist financing.

Whilst it was absent from the Queen’s Speech, the Government has also been keen to make progress

with its Domestic Gas and Electricity (Tariff Cap) Bill. Announcing this at the Conservative Party

Conference in October 2017, Ms May described the UK’s energy market as “broken” and pledged “to

end to rip-off energy prices once and for all”. Her declaration that “we will always take action to fix

them [free markets] when they’re broken” could also be viewed as an example of where she is

seeking to advance her fairness agenda, one which she sought to explore a year earlier at the 2016

Party Conference in her remarks about “the good that government can do”. The Draft Tenant Fees

Bill, published in November 2017, could also be regarded as an example of May’s sympathetic

attitude to state intervention where she considers markets are not working. As she said at a speech

marking the 20th anniversary of Bank of England independence, serving the “interests of ordinary

working people”.

However, what must be highlighted once again here is the effect the result of the 2017 General

Election has had in curtailing Ms May’s hopes of pursing a distinctive domestic reform agenda. The

result meant the Conservatives had to pull-back from some of their manifesto pledges, something

Brexit Secretary David Davis admitted at the time when he confirmed that elements of the manifesto

would have to be “pruned away”. This was apparent in the Queen’s Speech where the mooted

reform of the social care funding model, labelled as a ‘dementia tax’ by opponents, and the plan to

lift the ban on the creation of new grammar schools were notably absent.

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Despite the Brexit-weighted legislative programme and the absence of a wide-ranging domestic

reform agenda, there are a series of Government Bills which warrant closer attention – not least

because there will be no Queen’s Speech this year.

DeHavilland has assessed how some of the more significant bills have fared in their journey through

Parliament so far, where debate around them has coalesced, and what, ultimately, they seek to

achieve.

▪ European Union (Withdrawal) Bill

Report Stage in the Lords

The European Union (Withdrawal) Bill is the Government’s key piece of Brexit legislation. The Bill

repeals the European Communities Act 1972 and preserves EU law in domestic law after exit day.

The Bill gives minsters a number of powers to make delegated legislation including: to correct

deficiencies in domestic law after ‘exit day’; to ensure the UK complies with its international

obligations and to implement any withdrawal bill. The Bill grants the devolved authorities similar

powers but with a number of restrictions.

The Bill has already been considered by the House of Commons and is currently being considered by

the House of Lords.

Peers are currently debating the Bill at Report Stage which has proven controversial with a large

number of amendments tabled to the Bill a wide range of issues. The Government now faces the

possibility of additional defeats on top of the two it suffered last week which pertained to a customs

union with the EU and the scope of Government powers to amend legislation.

Some of the other key issues include: giving Parliament a ‘meaningful vote’ on the UK’s withdrawal

agreement from the EU; the devolution of powers to Scotland Wales and Northern Ireland after

Brexit; membership of the Single Market and Customs Union, the impact of Brexit on Northern

Ireland; retaining rights and protections after Brexit and the role of the European Court of Justice.

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▪ Nuclear Safeguards Bill

Entering Ping-Pong stage

Since the UK joined Euratom in 1973, the UK’s nuclear safeguarding has been underpinned by the

Treaty. However, with the UK leaving, the Government is now making plans to establish a new

domestic safeguarding regime which will deliver to existing Euratom standards.

The Nuclear Safeguards Bill aims to expand the current responsibilities of the Office for Nuclear

Regulation so that it can take greater responsibility for nuclear safeguarding.

The Bill does not cover other aspects of the UK’s relationship with Euratom, such as research

funding. The Government argues that, outside of nuclear safeguarding, a new Act of Parliament will

not be necessary to legislate for the remaining areas that Euratom currently has oversight of – such

as nuclear agreements with third countries.

Furthermore, MPs will have to consider amendments to the Nuclear Safeguards Bill, as Peers

inflicted two defeats on the Government recently, including an amendment which ensures that the

Government must request to suspend the UK's withdrawal from Euratom if the relevant nuclear

safeguarding agreements are not in place by ‘exit day’ on the 1 March 2019. Another amendment

requires independent reporting on future arrangements with Euratom.

Expect some Parliamentary Ping-Pong to ensue as the Commons and Lords seek to reach an

agreement on the matter.

▪ Taxation (Cross-border Trade) Bill

Awaiting Report Stage in the Commons

As the UK prepares to leave the EU, the Government has introduced the Taxation (Cross Border

Trade) Bill in order to impose customs duties on goods coming into and leaving the UK, as well as

amend the laws surrounding VAT and excise duty, all in connection with the withdrawal.

Beginning its journey in the Commons, the contentious Bill is currently in what the press has

deemed as a “limbo”, with no date yet set for Report Stage.

This limbo has been put down to the tabling of New Clause 12, put forward by Conservative MP

Anna Soubry and Labour MPs Chuka Umunna and Stephen Doughty, which would “establish a

negotiating objective to secure the UK’s participation in a customs union with the European Union”

and has been tipped for a Government defeat. As such, the Report Stage seems to have been delayed

as Government whips try to find a compromise to satisfy the Conservative ‘rebels’.

The Government has little time, with the deadline for the UK’s exit from the EU looming, the fear of

a defeat could lead to some interesting Government amendments to the Bill before it returns to

Parliament.

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▪ Trade Bill

Awaiting Report Stage in the Commons

The Trade Bill is one of a series of ‘Brexit Bills’ intended to adjust UK legislation for Brexit, in

addition to the European Union (Withdrawal) Bill. Together with the Taxation (Cross-Border Trade)

Bill), the Bill is intended to allow the UK to continue its existing trade policy as far as possible

immediately after Brexit.

The Bill makes provisions about the implementation of international trade agreements; establishing

the Trade Remedies Authority and conferring functions on it; and to make provisions about the

collection and disclosure of information relating to trade.

The Public Bill Committee has completed its work on the Bill and reported it without amendments to

the House of Commons. The Bill will next be considered at Report Stage and Third Reading, the

dates of which have not yet been announced.

While the Bill is important in allowing the transition of existing EU trade agreements, it is relatively

limited in what it sets out to achieve. This can be seen as the reason why the Government has faced

no defeats.

At the end of the Committee Stage, Shadow International Trade Secretary Barry Gardiner said that

“lacunae” remained in the Bill and that the Opposition would return to it on Report.

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▪ Civil Liability Bill

Awaiting Second Reading in the Lords

This long-awaited Bill was only introduced to Parliament in March, and is set to receive its Second

Reading on 24 April. The Bill has two key components which the Government states will save

motorists around £35 per year.

Firstly, to curb the number of whiplash claims by creating a ban on whiplash claims made without

medical evidence, and setting fixed amounts of compensation payable for the claims.

Secondly, the Bill will change the way the personal injury discount rate is calculated, by setting the

rate to better reflect the investment habits of individuals.

The Bill has been long called for from the insurance industry and opposition parties, and is unlikely

to be contentious as it makes its way through Parliament, with the Government hoping to implement

its proposed changes by spring 2019.

▪ Financial Guidance and Claims Bill

Awaiting Report Stage in the Commons

This Bill sets up a new financial guidance body which will make provision about the funding of debt

advice in Scotland, Wales and Northern Ireland as well as making provision for the regulation of

claims management services.

Most of the amendments to focus on would be those made regarding pensions cold calling, with the

Government itself amending the Bill following a report by the Work and Pensions Committee. The

Labour Party have also tabled many amendments relating to debt relief and credit unions, though it

is unlikely that these will pass.

Having passed through the Lords, the Bill is currently awaiting a date for its Report Stage in the

Commons, a debate which has currently been postponed twice.

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▪ Sanctions & Anti-Money Laundering Bill

Awaiting Report Stage in the Commons

The purpose of the Sanctions & Anti-Money Laundering Bill is to allow sanctions to be imposed to

comply with the UN in order to prevent terrorism and to realise better national security,

international peace and security as well as achieve foreign policy objectives.

The Bill makes provision for detecting, investigating and preventing money laundering and terrorist

financing.

Having completed its journey through the House of Lords and its Committee Stage in the Commons,

the Bill is to now enter the Report Stage in the Commons.

There is much anticipation for the so-called ‘Magnitsky’ amendment, following pressure from other

parties, the Government is expected to bring forward this amendment which would introduce anti-

corruption measures to the UK. The belief is that ministers will include powers which could ban

those deemed as corrupt from entering the UK.

It is expected there will be much debate over the amendment, with opposition parties already

signalling that the potential amendment will not go far enough.

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▪ Domestic Gas and Electricity (Tariff Cap) Bill

Awaiting Report stage in the Commons

The Bill places a duty on Ofgem to modify the standard supply licence conditions to impose a cap on

the amount that energy suppliers can charge their domestic customers who are on standard variable

tariffs (SVTs) or default tariffs. Around 11m consumers are currently on these types of tariffs.

The Bill will require Ofgem to consult and impose this cap as soon as practicable after the legislation

is passed, with the Government aiming for the legislation to be enacted by the regulator by the end

of the year.

Potential amendments to look out for are from Conservative MP John Penrose, who is continuing his

call for a relative price cap – or a cap that at least introduces market mechanisms to ensure it is

regularly updated. Interestingly, Labour tabled their own amendment at Committee Stage that

would have introduced a relative cap once the absolute one ends no later than 2023.

However, it is thought likely that it will be altered significantly as there is a clear cross-party

consensus behind getting this Bill through all its Parliamentary stages by the summer recess in July.

▪ Smart Meters Bill

Awaiting Committee Stage in the Lords The Smart Meters Bill is a technical piece of legislation that relates to the Government’s smart

metering implementation programme. Firstly, the Bill will extend existing powers the Secretary of

State has to develop, amend and oversee regulations relating to smart metering. Secondly, it will

introduce a regime for the national smart meter communication and data service provider to ensure

the service continues to be provided if it were to become insolvent.

During Committee Stage in the Commons, the Government introduced its own amendments, which

seek to enable "half-hourly electricity imbalances to be calculated using information obtained from

smart meters”.

However, there are just over 10m smart and advanced meters in operation in the UK, according to

the latest Q4 2017 data from BEIS. The Government then has some way to go to meet its manifesto

pledge of offering everyone a smart meter by 2020.

Labour are also starting to pile on the pressure over delays to the scheme, especially Smart DCC, the

company who manages the data network to connect smart meters energy suppliers and network

operators. However, they are supportive of the Bill, despite these criticisms.

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▪ Data Protection Bill

Awaiting Report Stage in the Commons

The Data Protection Bill is a piece of legislation that aims to update the current data protection laws

and address the new data protection challenges stemming from technological advancement and

digitalisation.

The Government says the Bill is designed to make data protection laws fit for the digital age,

empower citizens to gain better control of their data, support UK business and organisations

through the change, and ensure the country is fully prepared for the future after the UK departs

from the EU.

The Bill was introduced in the House of Lords and will next be debated at Report Stage in the

Commons, although no dates for this have yet to be announced.

The Bill has sparked a substantial level of debate around data exchange with EU/EEA countries after

the UK leaves the EU, the potential impact on journalism, and research. There have been debates

around the resource implications for the Information Commissioner’s Office, and the potential costs

for small businesses and other market players.

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▪ Draft Bill on Property Ownership Register

In January 2018, the Government announced it will publish a Draft Bill to create a new register of

owners of overseas companies that own UK property. The Draft Bill would require overseas

companies that own or buy property in the UK to provide details of their ultimate owners.

The Draft Bill is expected to be published in summer 2018. Once published, the Draft Bill will be

scrutinised by a Parliamentary committee. The Government intends to introduce the Bill to

Parliament early in the second session. Following Royal Assent and the making of secondary

legislation, the Government intends that the register will be operational in 2021.

▪ Draft Tenant Fees Bill

The Draft Tenant Fees Bill was announced in the Queen’s Speech 2017 and was subsequently

published in November 2017. The Draft Bill is intended to make renting in the private rented sector

fairer and easier for tenants by introducing a ban on ‘tenant fees’, fees chargeable to tenants by

landlords and letting agents. The Draft Bill proposed prohibiting all payments with the exception of

rent, security deposits of up to six weeks' rent, holding deposits of up to one week's rent, and default

fees.

The Draft Bill has been scrutinised by the Commons Housing, Communities and Local Government

Committee which published its report on the Bill in March 2018. The Committee welcomed the aims

of the Draft Bill but recommended the maximum amount that can be charged as a security deposit be

lowered from the proposed six weeks' worth of rent and called for more funding for enforcement.

The Government will now consider the Committee’s report before introducing the final bill to

Parliament.

▪ Secure Tenancies (Victims of Domestic Abuse) Bill [HL]

Awaiting Report Stage in the Commons

The Secure Tenancies (Victims of Domestic Abuse) Bill [HL] would make it a requirement that social

housing tenants in England who currently have a life-time tenancy and are fleeing domestic violence

be granted a similar life-time tenancy in their new home. This would apply to both people re-housed

in local authority and in housing association properties.

The Bill has already been considered by the House of Lords and is currently being considered by the

House of Commons. MPs are next due to consider the Bill at Report Stage.

The Bill only includes one substantial clause and has been uncontentious. The remaining debates on

the Bill are expected to focus on the detail of the Bill.

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▪ Automated and Electric Vehicles Bill

Awaiting Committee Stage in the Lords

The Automated and Electric Vehicles Bill would extend compulsory motor vehicle insurance to

cover the use of automated vehicles. The Bill allows for the creation of regulations to require

common technical and operation standards for charge points for electric vehicles. It would also allow

the Government to require the installation of charge points for electric vehicles at motorway service

areas and large fuel retailers.

The Bill has already been considered by the House of Commons and is currently being considered by

the House of Lords. Peers are next due to debate the Bill at Committee Stage.

The Bill has been relatively uncontentious with opposition parties supporting the principle of the

Bill. As the Bill progresses through the Lords amendments are likely to focus on the details of the

Bill.

▪ Draft Bill on drones

In November 2017, the Government announced they would introduce a Draft Bill which will give

new police powers where drone users would need to produce registration documents on request,

ground a drone safely in certain circumstances and the ability to seize and retain a drone’s

components if there is reasonable suspicion of it having been involved in an offence.

The Draft Bill is expected to be published in spring 2018. Once published, the Draft Bill will be

scrutinised by a Parliamentary committee.

▪ Haulage Permits and Trailer Registration Bill [HL]

Awaiting Third Reading in the Lords

The Haulage Permits and Trailer Registration Bill [HL] aims to support UK hauliers to continue to

operate internationally after the UK leaves the EU.

The Bill provides the Secretary of State with the powers to use regulations to introduce

administrative systems for haulage permits, which may be needed once the UK has left the EU. The

Bill also grants ministers the power to use regulations to introduce a trailer registration scheme,

which will be required following the UK’s ratification of the 1968 Vienna Convention on Road

Traffic.

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The Bill is currently working its way through the House of Lords and is next due to be considered at

Report Stage. The Bill was expected to be relativity uncontentious but following a Government

defeat in the House of Lords the Bill may take longer than expected to be approved by Parliament.

▪ High Speed Rail (West Midlands - Crewe) Bill

Awaiting Committee Stage in the Commons

The High Speed Rail (West Midlands - Crewe) Bill provides for the construction and planning of

Phase 2A of High Speed Two from the West Midlands to Crewe.

The Bill has only recently began its journey through Parliament. The Bill is a hybrid bill, having

characteristics of both a public bill and a private bill. This means that although it is of general

application, the content of the bill would significantly affect the interests of certain individuals or

organisations.

As a result, the Bill will be subject to a special procedure, incorporating aspects of both public bill

and private bill procedures. Under this procedure the Bill will be committed to a select committee

which will hear evidence from those affected by the Bill. This Committee has begun its work which

is expected to take several months.

▪ Laser Misuse (Vehicles) Bill [HL]

Awaiting Committee Stage in the Commons

The Laser Misuse (Vehicles) Bill [HL] would introduce an offence of shining or directing a laser

beam towards a vehicle which dazzles or distracts, or is likely to dazzle or distract the person with

control of the vehicle.

The offence would be a strict liability offence, and the Bill would provide persons accused of the

offence with a defence that either they had a reasonable excuse for shining the laser beam towards a

vehicle, or that they did not intend to shine a laser at a vehicle and exercised all due diligence to

avoid doing so.

The Bill has already been considered by the House of Lords and is currently being considered by the

House of Commons. MPs will begin considering the Bill at Committee Stage on 30 April 2018.

This aims of this relatively short Bill have been supported by all political parties. Much of the debate

on the Bill is likely to focus on the detail of the Bill.

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▪ Draft Health Service Safety Investigations Bill

The Draft Health Service Safety Investigations Bill proposes to introduce a new organisation that will

have the power and authority to investigate serious patient safety incidents in NHS hospitals and

Trusts throughout England. The Bill will outline and enshrine the powers that the Health Service

Safety Investigations Body has.

The new agency will be independent of the NHS and “at arm’s” length from the Government. It will

have far-reaching access to investigate serious safety incidents or risks to patient safety in English

hospitals and trusts.

The Bill will also incorporate and continue the work of the current Healthcare Safety Investigation

Branch, a division within the financial regulator NHS Improvement.

A further component of the Bill will give the Health Service Safety Investigations Body the authority

to establish an accreditation system across the NHS, with the intention of supporting trusts who

receive accreditation to conduct safe space investigations of their own.

On Tuesday 17 April, it was confirmed that a Joint Committee on the Draft Health Service Safety

Investigations Bill is to be established. This will report by Tuesday 24 July.

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We hope you found this briefing useful This briefing is an example of the in-depth political information we provide to public affairs and

policy professionals every day.

Our analysts gather vital political news from a range of sources to bring our customers live coverage

tailored to their information needs.

To find out how DeHavilland’s political monitoring and research can help your organisation, and to

request a consultation, visit www1.dehavilland.co.uk/trial or speak to your Account Manager.