All 24 Parliamentary debates in the Commons on 14th Apr 2021

Wed 14th Apr 2021
Wed 14th Apr 2021
Wed 14th Apr 2021
Wed 14th Apr 2021

House of Commons

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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Wednesday 14 April 2021
The House met at half-past Eleven o’clock

Prayers

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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Prayers mark the daily opening of Parliament. The occassion is used by MPs to reserve seats in the Commons Chamber with 'prayer cards'. Prayers are not televised on the official feed.

This information is provided by Parallel Parliament and does not comprise part of the offical record

[Mr Speaker in the Chair]
Virtual participation in proceedings commenced (Orders, 4 June and 30 December 2020).
[NB: [V] denotes a Member participating virtually.]

Oral Answers to Questions

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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The President of COP26 was asked—
Fleur Anderson Portrait Fleur Anderson (Putney) (Lab)
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What steps the Government are taking to promote climate action and a green recovery from the covid-19 pandemic ahead of COP26.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
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What steps the Government are taking to promote climate action and a green recovery from the covid-19 pandemic ahead of COP26.

Alok Sharma Portrait The COP26 President (Alok Sharma)
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The Prime Minister’s 10-point plan sets out our blueprint for a green industrial revolution—a plan to invest in green technologies and industries, leveraging in billions of pounds of private sector investment, supporting up to a quarter of a million green jobs and levelling up across the UK. It is a clear plan to build back greener from the covid pandemic.

Fleur Anderson Portrait Fleur Anderson
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The UK’s credibility as COP President rests on demonstrable climate action at home. The Government have set legally binding net zero targets but they are currently off track to meet their fourth and fifth carbon budgets, which are calibrated for previous, more lenient targets. Scrapping the green homes grant two weeks ago puts us into reverse. How will the right hon. Gentleman seek to progress local, national and international progress on energy efficiency and specifically on green homes in the run-up to and during COP26?

Alok Sharma Portrait Alok Sharma
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The UK has decarbonised its economy faster than any other G20 nation since 2000. We have met carbon budgets CB1 and CB2, we are on track to meet CB3, and of course we are pursuing plans to ensure that we meet CB4 and CB5. Ahead of COP26, we will publish a comprehensive net zero strategy.

Andrew Gwynne Portrait Andrew Gwynne [V]
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The COP President has talked confidently about British leadership, but the Prime Minister’s 10-point plan is full of big words and no real detail. The total impact, by the Government’s own admission, is that they will not meet the fourth and fifth carbon budgets. When we pull back the curtain, there is not much to look at, and we are running out of time. He has just said, in answer to my hon. Friend the Member for Putney (Fleur Anderson), that there will be a net zero strategy. We need it before the summer recess to make the Government’s word credible ahead of COP26. Does he agree with that, and if so, what is he doing about it?

Alok Sharma Portrait Alok Sharma
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As someone who was partly responsible for preparing the 10-point plan, may I suggest that the hon. Gentleman actually reads the detail of it? I have discussed the sector-specific points in it with individuals in different sectors of industry, who have found it quite compelling. Of course I agree that we need to be doing more, and that is why I have committed to publishing the comprehensive net zero strategy ahead of COP26.

Philip Dunne Portrait Philip Dunne (Ludlow) (Con) [V]
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What steps is my right hon. Friend taking, in his extensive discussions with leaders around the world on making progress at COP26, to develop a global standard or taxonomy of climate change impact in financial reporting and in green labelling investment products?

Alok Sharma Portrait Alok Sharma
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As my right hon. Friend will know, the UK has taken a leading role in climate-related disclosures by implementing a green taxonomy and, very importantly, by making TCFD-aligned disclosures—recommended by the Taskforce on Climate-related Financial Disclosures —mandatory across the economy by 2025. In the conversations that I have with Governments around the world, I am urging other countries to follow a similar approach on financial disclosures. My right hon. Friend talks about asset owners in the financial services sector, and we are also encouraging asset owners and asset managers to make net zero commitments.

Ruth Edwards Portrait Ruth Edwards (Rushcliffe) (Con)
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What progress the Government have made on raising international ambition to tackle climate change as part of preparations for COP26.

Alok Sharma Portrait The COP26 President (Alok Sharma)
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When the UK took on the role of the incoming COP26 presidency, under 30% of the global economy was covered by a net zero commitment. The good news is that that figure has now increased to 70% and of course I am pressing all countries to come forward with net zero commitments. However, as colleagues in this House have acknowledged previously, the United Nations Framework Convention on Climate Change’s initial “NDC Synthesis Report”, published in February, showed that we have much more progress to make on the 2030 emissions reduction target, and I am pressing countries on that as well.

Ruth Edwards Portrait Ruth Edwards [V]
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The UK is a global leader in protecting the ocean, as shown by the success of its Blue Belt and 30x30 programmes, but as my right hon. Friend will know, only 1% of international waters currently have effective protection. Will he commit the UK to taking the lead in pushing for a strong global oceans treaty at the United Nations, to establish an international framework for protecting marine biodiversity in international waters?

Alok Sharma Portrait Alok Sharma
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My hon. Friend raises a vital issue, and she will be pleased to hear that the UK is working hard to see negotiations concluded this year on a new UN convention for the conservation and sustainable use of marine biodiversity in areas beyond national jurisdictions. That will enable the establishment of marine protected areas and help to deliver on the 30x30 target.

Matthew Pennycook Portrait Matthew Pennycook (Greenwich and Woolwich) (Lab)
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In a letter to all UNFCCC—United Nations framework convention on climate change—parties this week, the COP President rightly argued that we must halve global emissions by 2030 if we are to keep the goal of limiting global warming to 1.5° within reach, yet he will know that recent UN analysis makes it clear that current national pledges will reduce emissions by just 1% by the end of this critical decade. We need the major emitters to do much more if we are to close the gap. That means a need for deep cuts in American emissions and for Chinese emissions to peak by 2025, but it also means a need for tangible progress on the part of India. With the Prime Minister meeting President Modi later this month, will the COP President tell the House what the UK is willing to put on the table, particularly in terms of climate finance and technological support, to help to ensure that India feels able to increase its ambition markedly ahead of the summit?

Alok Sharma Portrait Alok Sharma
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I agree entirely with the hon. Gentleman but, of course, all countries need to make much more progress when it comes to ambitious, nationally determined contributions to the 2030 near-term emission reduction targets. I have spoken with large economies around the world. As he knows, I met Prime Minister Modi a few weeks ago and, of course, we are working on a number of initiatives with the Indian Government. When the Prime Minister goes to India, I am sure there will be further announcements.

Martyn Day Portrait Martyn Day (Linlithgow and East Falkirk) (SNP)
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What plans he has to arrange for remote virtual participation in COP26 in the event of ongoing restrictions due to the covid-19 pandemic.

Alok Sharma Portrait The COP26 President (Alok Sharma)
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We are working very hard to ensure that we deliver an in-person COP that allows all countries to participate on an equal footing. That is incredibly important, as many parties feel strongly that negotiations must be in person. We continue to explore how technology and other innovations can make the summit more resilient, safe and inclusive.

Martyn Day Portrait Martyn Day [V]
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I am grateful for that answer. Many respondents to the Business, Energy and Industrial Strategy Committee’s survey of expert views, both academics and former COP attendees, highlighted the value of remote participation for otherwise excluded groups, and for reducing the conference’s carbon footprint. Will the COP26 President explore the possibilities of wider virtual participation at COP, in addition to physical attendance at the conference?

Alok Sharma Portrait Alok Sharma
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The hon. Gentleman raises an important point. I have said on a number of occasions that I want this to be the most inclusive COP ever. Absolutely, we are looking at how we can expand our digital programmes to allow for more virtualisation. I hope that, at the appropriate time, I will be able to update the House further.

Darren Jones Portrait Darren Jones (Bristol North West) (Lab)
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A diplomatic source in the British Government is reported in the papers today as saying about the conference:

“No one in Europe thinks it’s going to happen and the US is increasingly sceptical that it can happen without a delay.”

I support the COP26 President’s aim for a physical conference of national delegations but, of course, many stakeholders are politicians, business leaders, NGOs and others. When will the Cabinet Office produce a contingency plan to give clarity to stakeholders about how engagement can take place in November?

Alok Sharma Portrait Alok Sharma
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The hon. Gentleman, again, raises an important point. He will have seen the letter I wrote to UNFCCC members on the progress we want to make over the coming months. COP26 has already been postponed by one year, and the urgency of the climate crisis has not abated. I do not sense any desire among parties for a further postponement, and we are working very hard to ensure that we have an in-person, physical COP, taking into account, of course, any covid-related contingencies.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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What steps he is taking to encourage towns, cities and communities to deliver the UN sustainable development goals at local level in the run-up to COP26.

Lindsay Hoyle Portrait Mr Speaker
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Vice-president?

Anne-Marie Trevelyan Portrait The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)
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Thank you, Mr Speaker. That is a new title. I was happy with international champion, but I am sure vice-president is acceptable, too.

The actions we are taking to tackle climate change support the delivery of a range of UN sustainable development goals. Through the Together for Our Planet campaign and Race to Zero, we are encouraging towns, cities and communities to drive climate action at a local level. This is supported by the COP26 UK mayors and regions advisory council, which includes West Yorkshire Combined Authority and Kirklees Council, and it has set itself an ambitious target of being net zero by 2038.

Barry Sheerman Portrait Mr Sheerman [V]
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Will the Minister and, certainly, the COP26 President, in whom I have great confidence, support what we are doing in Huddersfield to make Huddersfield a sustainable town and a sustainable community by rigorously pursuing the sustainable development goals? We are building a network of towns across the United Kingdom. We are up to about 20, and we need to get to 50 and 500. What can the Government do to help us, because it is about grassrooting and making sure that COP26 is not cop-out 26?

Anne-Marie Trevelyan Portrait Anne-Marie Trevelyan
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It is important that we encourage and, indeed, provide the tools—and the Together for Our Planet campaign is one of those tools—to help our constituents, our towns and our cities to understand and take charge for themselves of the impact they can have in helping to meet our Paris agreement challenge. That involves everything from household choices through to changes in how we run our buses and trains. Every council and every community has a role to play.

Kim Johnson Portrait Kim Johnson (Liverpool, Riverside) (Lab)
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What discussions he has had with Cabinet colleagues on showing leadership on green investment and boosting funding for public transport in the run-up to COP26.

Alok Sharma Portrait The COP26 President (Alok Sharma)
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I have regular discussions with Cabinet colleagues about decarbonisation. My right hon. Friend the Transport Secretary is putting a green recovery for transport at the centre of his Department’s decision making in the run-up to COP26 and beyond.

Kim Johnson Portrait Kim Johnson
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Liverpool city region is developing a project to bring 20 hydrogen-powered double-decker buses to the streets, with the potential for further green investment to scale this up and achieve our ambition of being carbon net zero by 2040. Can the Minister tell us when the £30 billion in planned capital investment as part of the green recovery stimulus will be available to support our ambition?

Alok Sharma Portrait Alok Sharma
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I will ensure that the hon. Lady’s specific point is taken up with my right hon. Friend the Transport Secretary. She will know that, last month, the Transport Secretary launched a multimillion-pound scheme to enable local authorities to roll out zero-emission buses. This funding will deliver 500 zero-emission buses, supporting the Government’s wider commitment to introduce 4,000 such vehicles.

Deidre Brock Portrait Deidre Brock (Edinburgh North and Leith) (SNP) [V]
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There is no joined-up thinking on any issue with this Government, but we would all have hoped for some cross-Department thinking on this issue at least. We are, as usual, disappointed, with even the green homes grant gone after just a few months—so much for building back better.

There is increasing concern voiced internationally, too, about the UK Government’s lack of progress domestically on environmental commitments. Will the right hon. Gentleman show some real leadership and commit today to start seriously lobbying his Government colleagues to join up the dots and start delivering, so that we can look forward to environmentally sound investment, renewed support for a comprehensive charging framework for electric vehicles, real investment in hydrogen technology and marine energy, support for housing improvements and so on? Will he do that, or is he happy to leave us all embarrassed to be hosting COP26 while the UK seems to be striding off in the opposite direction?

Alok Sharma Portrait Alok Sharma
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I say to the hon. Lady that the role of the COP presidency is to ensure that we are working with all 197 parties to ensure that we are making progress on keeping the 1.5° C limit within reach. The UK, like any other country, needs to see what more we can do. I hope that she will acknowledge that we are seen as a leader in the world and that, since 2010, we have decarbonised our economy faster than any other G20 nation.

Tanmanjeet Singh Dhesi Portrait Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
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What steps he is taking to promote action on biodiversity loss alongside climate action as part of COP26 preparations.

Anne-Marie Trevelyan Portrait The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)
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Climate change and biodiversity loss are inextricably linked, which is why the UK has made nature a core priority of our COP26 presidency. We pioneered and launched the leaders’ pledge for nature in September last year, and we are also driving global action to protect and restore critical ecosystems such as forests and accelerating our transition towards sustainable agriculture while mobilising the finance to support this.

Tanmanjeet Singh Dhesi Portrait Mr Dhesi
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In order to tackle biodiversity loss, the convention on biological diversity, COP15, in May, will support new targets on nature. However, with the Environment Bill delayed yet again, how will the Minister ensure that the outcomes from this conference will feed into COP26 in November?

Anne-Marie Trevelyan Portrait Anne-Marie Trevelyan
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The Prime Minister and President Xi have agreed that the UK and China should work together, as respective hosts of the United Nations framework convention on climate change COP26 and the convention on biological diversity COP15, to reinforce and amplify those linkages between climate change and biodiversity loss and to achieve mutually supportive and ambitious outcomes at both summits. We are working closely with our Chinese counterparts and with the UN secretariat of the UNFCCC, the CBD and the United Nations convention to combat desertification to strengthen the links between these conventions to deliver the best outcomes for nature.

Virginia Crosbie Portrait Virginia Crosbie (Ynys Môn) (Con)
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What recent discussions he has had with his counterparts in countries that are the highest emitters of carbon on policy objectives for COP26.

Alok Sharma Portrait The COP26 President (Alok Sharma)
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I have so far engaged with Ministers and negotiators from more than 80 countries and briefed all parties to the UN on a number of occasions. This, of course, includes discussions with representatives of countries, including China, the US, the EU and India.

Virginia Crosbie Portrait Virginia Crosbie
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In the light of Germany’s coal phase-out Act, which states that it will not end the use of coal-powered energy until 2038, how does the Minister intend to use COP26 to promote nuclear power, particularly at key UK sites such as Wylfa Newydd on Anglesey, in order to meet the UK’s net zero targets?

Alok Sharma Portrait Alok Sharma
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My hon. Friend is a consistent and strong champion of both the nuclear sector and the Wylfa site in her constituency, and I commend her zeal. As I have said to her previously, nuclear power clearly has a role to play in our clean energy mix as we work towards net zero emissions by 2050. She will know that, in the 10-point plan that the Prime Minister set out, we are backing large nuclear as well as small modular reactors and advanced modular reactors.

Mark Fletcher Portrait Mark Fletcher (Bolsover) (Con)
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What steps he is taking to consult businesses in preparation for COP26.

Alok Sharma Portrait The COP26 President (Alok Sharma)
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I have engaged with hundreds of global and UK businesses through a combination of speaking at high-profiles events and bilateral meetings, and my COP26 business leaders advisory group. Businesses have a key role to play in tackling climate change, and I encourage them all to sign up to the Race to Zero campaign.

Mark Fletcher Portrait Mark Fletcher
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Derbyshire County Council recently launched a £2 million green entrepreneurs fund for businesses that are interested in green energy and carbon reduction. Does my right hon. Friend agree that this is an excellent example of local government and businesses working together, and will he share my praise for county council leader Barry Lewis and his visionary leadership on this issue?

Alok Sharma Portrait Alok Sharma
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I commend both my hon. Friend and the leader of Derbyshire County Council, Barry Lewis, for championing this excellent initiative. This is precisely the type of scheme we want to see—supporting businesses, growth and jobs while cutting emissions.

David Johnston Portrait David Johnston (Wantage) (Con)
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What steps he is taking to consult with (a) civil society and (b) youth groups in preparation for COP26.

Laura Farris Portrait Laura Farris (Newbury) (Con)
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What steps he is taking to consult youth groups in preparation for COP26.

Suzanne Webb Portrait Suzanne Webb (Stourbridge) (Con)
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What steps he is taking to consult with (a) civil society and (b) youth groups in preparation for COP26.

Alok Sharma Portrait The COP26 President (Alok Sharma)
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I want COP26 to be the most inclusive ever. The voices of young people are vital to this process. That is why I have set up an international COP26 Civil Society and Youth Advisory Council, allowing for a regular dialogue with youth activists, NGOs, indigenous people and faith groups as we plan for COP26.

David Johnston Portrait David Johnston
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I have a pile of letters on my desk from children at GEMS Didcot Primary Academy and John Blandy Primary School, who have written to tell me what they have learned about climate change and what positive changes they saw in the environment during lockdown, and to give me their ideas of things they think the Government should be doing. Will my right hon. Friend tell me how children and young people will be able to feed into the preparations for COP26?

Alok Sharma Portrait Alok Sharma
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I thank my hon. Friend for championing the views of young people in his constituency. I pay tribute to the pupils of John Blandy and GEMS Didcot primary schools for their enthusiasm for climate action. I will be delighted to receive their letters and review their ideas; and, through him, I will respond in writing to his constituents.

Laura Farris Portrait Laura Farris [V]
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My right hon. Friend and I both have the privilege of representing seats in Berkshire, where many young people are passionate about climate change and are active in local groups such as the West Berkshire Climate Action Network. This is their first real opportunity to see UK leadership in action. Will my right hon. Friend confirm how those young people can access the youth council that he just described and other mechanisms to feed their ideas into the COP later this year?

Alok Sharma Portrait Alok Sharma
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I thank my hon. Friend for the work that she does to promote climate action. I would be very happy to hear from young people and youth groups in her constituency. We will be engaging further with schools in relation to COP26 to unleash the enthusiasm and energy of young people across the UK and tackle climate change.

Suzanne Webb Portrait Suzanne Webb
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We all have a stake in protecting our climate, particularly young adults in my constituency, who I hope will be the pioneers of change. As part of the UK-Italy COP26 partnership, what are the plans for the “Youth4Climate: Driving Ambition 2021” event to be held in Milan in September?

Alok Sharma Portrait Alok Sharma
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From 28 to 30 September, the Youth4Climate event will bring together 400 youth delegates from across the globe to discuss topics under a range of thematic areas. The event will culminate in a declaration and discussion between the youth delegates and Ministers attending the pre-COP26 event.

Debbie Abrahams Portrait Debbie Abrahams (Oldham East and Saddleworth) (Lab)
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If he will make a statement on his departmental responsibilities.

Alok Sharma Portrait COP26 President (Alok Sharma)
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If we are to protect our planet from the ravages of climate change, we must support developing countries to respond, but without adequate finance the task ahead is well nigh impossible. That is why on 31 March, the UK presidency convened around 50 developing and donor countries and multilateral institutions to consider how we can get more—and more timely—public finance flowing into climate action. I am pleased that we have secured a range of commitments from the likes of the World Bank, the International Monetary Fund and donor countries to move this vital work forward. It is our moral duty to protect the most vulnerable communities from a climate crisis that they have not caused.

Debbie Abrahams Portrait Debbie Abrahams [V]
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How does supporting a new Cumbrian coalmine, giving new licences for oil and gas exploration, scrapping the green homes grant and reducing incentives for electric vehicles reflect the Government’s stated commitment to reach net zero carbon emissions by 2050—or is this more dad-dancing rhetoric by the Prime Minister, unconvincing and unco-ordinated?

Alok Sharma Portrait Alok Sharma
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The hon. Lady raises a number of points. In previous answers I have set out the ambition that the UK has and the progress that we have made. Specifically with regard to oil and gas licensing, the UK Government will introduce a new climate compatibility checkpoint before each future oil and gas licensing round to ensure that licences awarded are aligned with wider climate objectives, including net zero emissions by 2050.

Cherilyn Mackrory Portrait Cherilyn Mackrory (Truro and Falmouth) (Con) [V]
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Surfers Against Sewage in my constituency are ardent environmental campaigners, particularly on plastic pollution and water quality, and our environment is all the better for their work. The Government have a key role to play on protecting the environment, so can my right hon. Friend assure me that when the world gathers for COP26 in November, protecting and enhancing the environment, particularly for the people of Cornwall, will be at the very top of the agenda?

Anne-Marie Trevelyan Portrait The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)
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The COP26 nature campaign is driving ambitious international and domestic action to protect and enhance our environment, and this will be a high priority at COP26 in November. I commend the work that Surfers Against Sewage are doing on water pollution and water quality, which I hope to see first-hand when I visit Cornwall as part of the G7 summit in June. Protecting the ocean, including through nature-based solutions, provides multiple vital climate change adaptation and resilience benefits.

Edward Miliband Portrait Edward Miliband (Doncaster North) (Lab)
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Last month, the COP President wrote that the world is doing nowhere near enough to limit global warming to 1.5° C, and he is right. A green economic stimulus could make a huge difference to meeting the target, but while we have put it as the top item of the G7 agenda, the sum total of the Chancellor’s measures here in the UK promised just £12 billion of green spending over a decade, and he has already cut £1 billion from that. Our investment is 60 times smaller than President Biden’s green infrastructure plan. Is it not a very significant challenge for COP26 that when it comes to a green stimulus we are telling others to act but not doing so ourselves?

Alok Sharma Portrait Alok Sharma
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The right hon. Gentleman knows that we agree on many of these issues on tackling climate change, but when it comes to Government money, we have also ensured that we leverage in private sector money. It is not just about Government money; it is also about leveraging in private sector money. Ultimately, this is about not just cutting emissions but creating jobs for constituents across the UK.

Edward Miliband Portrait Edward Miliband
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As the right hon. Gentleman will know, as COP26 host, our actions face particular scrutiny, and I think he will know that the international community is increasingly concerned, and not just on green recovery. The Government call on others to power past coal but flirt with a new coalmine; say to others, “Adopt a net zero target”, but are off track on ours; and tell countries to support the world’s poorest but slash aid spending. Rachel Kyte, former special representative of the UN Secretary-General, said this week of our record on climate:

“What the UK is doing is like dad dancing…they are very uncoordinated.”

Is it not time the Government gave up the dad dancing on climate and showed some consistent leadership?

Alok Sharma Portrait Alok Sharma
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The right hon. Gentleman himself is obviously a very good dancer and therefore unlikely to take part in dad dancing; we should try it together at some point.

Of course every country, including the UK, needs to make more progress on cutting emissions. The right hon. Gentleman makes particular reference to coal. He will know that our energy mix with regard to coal has gone from 40% in 2012 to less than 2% last year, and we have been leading the Powering Past Coal Alliance, to which a large number of countries have now signed up. So we are making progress; of course, there is more that we can do.

Stephen Metcalfe Portrait Stephen Metcalfe (South Basildon and East Thurrock) (Con)
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What diplomatic steps has my right hon. Friend taken to engage with international partners on preparations for COP26?

Anne-Marie Trevelyan Portrait Anne-Marie Trevelyan
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We are working closely at many levels with international partners on preparations for COP26 and to accelerate climate ambitions. The COP26 President-designate has met large numbers of Governments. He is already out and about visiting many countries—15 in the past few weeks—and briefing UN member states on a regular basis. I am working with the most vulnerable countries to make sure that they are supported in their ambitions to meet their resilience challenges.

Hilary Benn Portrait Hilary Benn (Leeds Central) (Lab)
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Converting UK homes to zero carbon heating will be a huge task. Does the COP President believe that heat pumps can adequately replace all gas boilers? If there is a need for supplementary heating, what form does he think it should take?

Alok Sharma Portrait Alok Sharma
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I refer the right hon. Gentleman to the 10-point plan, which sets out clearly the progress that we want to make on decarbonising buildings and homes, and heat pumps will of course play a part. We have also set out there our plans on the use of hydrogen for home heating.

The Prime Minister was asked—
Gagan Mohindra Portrait Mr Gagan Mohindra (South West Hertfordshire) (Con)
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If he will list his official engagements for Wednesday 14 April.

Boris Johnson Portrait The Prime Minister (Boris Johnson)
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I know colleagues across the House will wish to join me in paying tribute to our dear friend and colleague, Dame Cheryl Gillan, who sadly died last week. MP for Chesham and Amersham for 29 years, she will be remembered for being a strong voice for her constituents, for being a brilliant campaigner, including her advocacy for autistic people and their families, and for being the first female Secretary of State for Wales. I also want to pay tribute to Baroness Shirley Williams, a pioneer for women in politics and in Government, and to our former colleague Peter Ainsworth, who was passionate about his causes, especially the environment.

This morning, I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.

Gagan Mohindra Portrait Mr Mohindra
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Dame Cheryl represented her constituents with considerable effectiveness for nearly 29 years and is already sorely missed in this place, especially by many of the newer Members, as she was so kind to us in our first months in Westminster. One of her passions was the protection of chalk streams, in particular the River Chess, which passes through my constituency of South West Hertfordshire. Many MPs are increasingly concerned about reports of partially treated sewage being released into our rivers, with knock-on health impacts for both humans and animals. Can my right hon. Friend reassure the House that this Government will actively protect our rivers and streams?

Boris Johnson Portrait The Prime Minister
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My hon. Friend is entirely right to raise the concern we fully share about sewage overflow into rivers such as the Chess. That is why we have set up the storm overflows taskforce to address the matter, working with the water industry, regulators and environmental groups. Last month, we announced plans for legislation to address that very issue.

Keir Starmer Portrait Keir Starmer (Holborn and St Pancras) (Lab)
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May I join the Prime Minister in his remarks about Dame Cheryl Gillan, who I worked with on a cross-party basis and remember with fondness? Ian Gibson also passed away this week. Both commanded respect on all sides of the House and will be sadly missed.

I also pay tribute to Shirley Williams. She was a great parliamentarian, and a formidable Minister and Cabinet Minister. She loved this House, the other place and, frankly, anywhere she could debate ideas and politics. For many years, she was Labour’s loss, but today she is Britain’s loss, and my thoughts are with her family and loved ones.

Does the Prime Minister believe that the current lobbying rules are fit for purpose?

Boris Johnson Portrait The Prime Minister
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I join the right hon. and learned Gentleman in what he said about Ian Gibson.

I share the widespread concern about some of the stuff we are reading at the moment, and I know that the Cabinet Secretary shares my concern as well. I do think it is a good idea in principle that top civil servants should be able to engage with business and should have experience of the private sector. When I look at the accounts I am reading today, it is not clear that those boundaries have been properly understood. I have asked for a proper independent review of the arrangements that we have, to be conducted by Nigel Boardman, and he will be reporting in June. If the right hon. and learned Gentleman has any representations he wishes to make on the subject, he should do so to Mr Boardman.

Keir Starmer Portrait Keir Starmer
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I know that the Prime Minister is launching an inquiry. That inquiry is not even looking at the lobbying rules; I am not sure it is looking at very much at all. Every day, there is further evidence of the sleaze that is now at the heart of this Conservative Government. [Interruption.] They can shake their heads. Let us just look at the latest scandal. A wealthy businessman, Lex Greensill, was hired as a senior adviser to David Cameron when he was Prime Minister. We have all seen the business card. After he left office, Cameron became a paid lobbyist for Lex Greensill. The next thing we know, Cameron arranged access for Greensill to Cabinet Ministers, Ministers and senior officials, and he lobbied for taxpayers’ money on behalf of Greensill Capital.

We also know that the Chancellor “pushed” officials. We know that the Health Secretary met Cameron and Greensill. We know that senior officials met Greensill Capital regularly, and now, even more unbelievably, we know that the Government’s former head of procurement, no less, became a Greensill adviser while he was still a civil servant. Does the Prime Minister accept that there is a revolving door—indeed, an open door—between his Conservative Government and paid lobbyists?

Boris Johnson Portrait The Prime Minister
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This is a Government and a party that have been consistently tough on lobbying. Indeed, we introduced legislation saying that there should be no taxpayer-funded lobbying and that quangos should not be used to get involved with lobbying. We put in a register for lobbyists. There is one party that voted to repeal the 2014 lobbying Act, and that was the Labour party in its historic 2019 election manifesto, which the right hon. and learned Gentleman has yet to repudiate. It did so because it thought the Act was unfair and restricted people’s ability to make representations to politicians. I think that that is absurd. Will he now say that it is absurd to repeal the 2014 lobbying Act?

Keir Starmer Portrait Keir Starmer
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The Prime Minister talks of the lobbying Act. Who was it who introduced that legislation? David Cameron. Who was it who voted for the legislation? Half the Conservative Front Bench. We said that it would not be tough enough, and where did that legislation lead? Two years later, David Cameron camping out in a Saudi desert with Lex Greensill, having a cup of tea. I rest my case in relation to that legislation.

Let me try another very simple question. Is the Prime Minister aware of any other Government official who had commercial links with Greensill or any other lobbying role while working in Government?

Boris Johnson Portrait The Prime Minister
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If the right hon. and learned Gentleman has any such information, he should of course make it available to Mr Boardman; that is the point of his review. It is an independent review. It will be coming to me by June, and it will be laid in the Library of the House of Commons.

The right hon. and learned Gentleman talks about lobbying. He is being advised by Lord Mandelson of Global Counsel. Perhaps in the interests of full transparency, so that we can know where he is coming from, Lord Mandelson could be encouraged to disclose his other clients.

Keir Starmer Portrait Keir Starmer
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I have not heard a defence that ridiculous since my last days in the Crown court. It is called the shoplifters’ defence—“Everyone else is nicking stuff, so why can’t I?” It never worked. I remind the Prime Minister that I not only prosecuted shoplifters; I prosecuted MPs over the MPs’ expenses scandal, so I stand on my record. That line just isn’t going to wash with me.

It was a former Prime Minister—and, I suspect, now a former lobbyist—who once said:

“This isn’t a minor issue with minor consequences… government contracts—worth hundreds of billions of pounds are potentially at stake.”

Can the Prime Minister now answer the question that the Chancellor has been ducking for weeks? How was it that Greensill Capital—a company employing David Cameron—got the green light to give hundreds of millions of pounds of taxpayer-backed loans?

Boris Johnson Portrait The Prime Minister
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While the right hon. and learned Gentleman was prosecuting MPs, I was cutting crime in London by 23% and cutting the murder rate by 50%. He asks about lobbying on behalf of Greensill. Again, I do not wish to embarrass the right hon. and learned Gentleman, but he does not have far to look. There was one person asking for Greensill bank to be able to use the coronavirus business interruption loan scheme, and that was the shadow Defence Secretary.

Keir Starmer Portrait Keir Starmer
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This just gets weaker and weaker. It does take me back to my defence days in the Crown court —just ridiculous. The shadow Defence Secretary—

Boris Johnson Portrait The Prime Minister
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It was rather a good point!

Keir Starmer Portrait Keir Starmer
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It really was not a good point; if you think that is a good point, you have got real problems.

The shadow Defence Secretary was speaking for his constituents and for local jobs. That is a million miles away from being a paid lobbyist texting friends in Government. The Prime Minister says there is going to be an inquiry, but the person he has appointed worked for the same law firm that lobbied to loosen lobbying laws. You could not make it up.

What we need is to overhaul the whole broken system. This afternoon, Labour’s motion calls for a proper parliamentary inquiry into the scandal. If the Prime Minister is so concerned about this, he should welcome the motion. After all, to quote David Cameron, his old school friend:

“Sunlight is the best disinfectant”.

So, will the Prime Minister vote with Labour today for a full, transparent, independent inquiry?

Boris Johnson Portrait The Prime Minister
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I think the right hon. and learned Gentleman would have been better off supporting the lobbying Act and the Labour party would have been better off not campaigning to get rid of it. It toughens up our laws, and I think that his own proposal is simply to have, yet again, politicians marking their own homework. What the country wants—[Interruption.] That is what it is—a Committee of MPs to look at it. It will not do a blind bit of good. That is why we are having a proper, independent review. If the right hon. and learned Gentleman has any representations or allegations to make about what has taken place, he should make them to the eminent lawyer who has been asked to do this, who will be reporting to us by June.

Keir Starmer Portrait Keir Starmer
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The Prime Minister should be voting with us, not blocking a proper inquiry. The Greensill scandal is just the tip of the iceberg—dodgy contracts, privileged access, jobs for their mates. This is the return of Tory sleaze. It is now so ingrained in this Conservative Government. We do not need another Conservative party appointee marking their own homework. Actually, the more I listen to the Prime Minister, the more I think that Ted Hastings and AC-12 are needed to get to the bottom of this one.

We know the Prime Minister will not act against sleaze, but this House can, so can I urge all Members of the House to come together this afternoon to back Labour’s motion, and to start to clean up the sleaze and cronyism that are at the heart of this Conservative Government?

Boris Johnson Portrait The Prime Minister
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That is why we are putting in an independent review. That is why we have tougher laws on lobbying—a great shame that Labour opposes them. Yes, we are getting on with rooting out bent coppers. We are also appointing and hiring thousands more police officers. We are fighting crime. We are fighting crime on the streets of our cities while the Opposition oppose the police and crime Bill, which would put in tougher sentences for serious sexual and violent offenders—absolutely—and they then encouraged people who went out and demonstrated to “Kill the Bill”. We are getting on with protecting the public. That is absolutely correct. We are getting on with protecting the public of this country from crime of all kinds. We are getting on with the job of running this country, of rolling out a vaccination programme—

Lindsay Hoyle Portrait Mr Speaker
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Order. Prime Minister, I think we ought to at least try and address the question.

Dean Russell Portrait Dean Russell (Watford) (Con)
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It is a year this week since I had the privilege of starting to volunteer at Watford General Hospital, and over that time I have been fortunate and privileged to work alongside some inspirational and selfless volunteers. As the nation reflects this week on the importance of schemes to support young people, may I ask the Prime Minister whether he will meet me to explore the creation of an NHS cadet scheme to pay tribute to those who have volunteered over the past year and also create a lasting legacy for generations to come?

Boris Johnson Portrait The Prime Minister
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Yes, indeed. I thank my hon. Friend for what he is doing. I thank everybody at Watford General Hospital for the support they have given throughout the pandemic, particularly the volunteers, who play a massive part in our vaccination roll-out programme. I fully support the NHS cadet scheme—part of our work to establish a volunteering legacy for young people following the pandemic.

Ian Blackford Portrait Ian Blackford (Ross, Skye and Lochaber) (SNP)
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Mòran taing, Mr Speaker. May I associate myself with the remarks of the Prime Minister and the Leader of the Opposition about Dame Cheryl Gillan and Shirley Williams?

The Scottish Government have passed landmark legislation embedding the UN convention on the rights of the child into Scots law, a real revolution in children’s rights. Every party in the Scottish Parliament supported it, even the Scots Tories; it has been welcomed everywhere except here in Westminster. Instead of supporting this new law, the UK Government are, shamefully, taking the Scottish Parliament to court in order to strike it down. Apparently, the only basis of the UK Government’s legal case is that the law constrains Westminster powers. So, Prime Minister, can you do everyone a favour by explaining how protecting children’s rights in Scotland threatens the Tory Government in London?

Boris Johnson Portrait The Prime Minister
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This is complete nonsense. The Government of the United Kingdom ratified the UN convention on the rights of the child 30 years ago. We all supported it. This is nothing to do with the rights of vulnerable children, which we all protect; this is simply an attempt by the SNP to stir up constitutional chaos and create another fictitious bone of contention between themselves and the rest of the country. If they really cared about the rights of the child, they would do much more to improve education in Scotland, where they are so lamentably failing.

Ian Blackford Portrait Ian Blackford
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The rights of the child—this is an Act passed by the Scottish Parliament and supported by every party, and yet the Prime Minister’s Government are taking our Parliament—our Government—to court. There is nothing technical about this, and the Westminster Government want to strip away the rights of children in Scotland. This is a tale of two Governments: we have an SNP Scottish Government delivering the baby box, doubling the Scottish child payment and providing free school meals to every primary school child; at the same time, this Tory Government are robbing children of their rights in Scotland. Quite simply, the SNP Scottish Government have worked, and will continue to work, to ensure that Scotland is the best place for a child to grow up. This legal challenge threatens that; it is wrong and it is morally repugnant, Prime Minister. Will the Prime Minister commit to withdrawing his legal challenge today? If not, we will see you in court.

Boris Johnson Portrait The Prime Minister
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The best thing the SNP can do, as I have said, for the rights of the child in Scotland is to improve their shameful record on education and to tackle the issues that matter to the people of Scotland: to tackle the tax regime they have put in place; and to do better on fighting crime and drug addiction in Scotland. They should be looking at the issues that really matter to the people of Scotland, but instead they are going into the elections next month yet again on a campaign to break up this country. That is all they can think of: break up this country—destroy our country—and call a referendum, in a way that I think is completely irresponsible at a very difficult time when we want to bounce back stronger together.

David Jones Portrait Mr David Jones (Clwyd West) (Con)
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The A55 expressway is of huge importance to north Wales, linking the region to the main motorway network. It is also, as was noted in the recent interim report on the Union connectivity review, the principal freight artery for the port of Holyhead. The road is in desperate need of improvement, and has been for many years, so will my right hon. Friend confirm that the Government will make it a priority to use their powers under the United Kingdom Internal Market Act 2020 to upgrade the road for the benefit of the people of north Wales?

Boris Johnson Portrait The Prime Minister
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My right hon. Friend is completely right. Sir Peter Hendy has rightly identified the potential of the A55, and the best thing the people of Wales can do to guarantee these vital upgrades is elect a Welsh Conservative Government on 6 May.

Lindsay Hoyle Portrait Mr Speaker
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We now go to Vicky Foxcroft. Vicky, I understand you are going to sign; can you speak and sign at the same time for the benefit of all?

Vicky Foxcroft Portrait Vicky Foxcroft (Lewisham, Deptford) (Lab)
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[In British Sign Language] Why is there no interpreter in the room for briefings?If the Prime Minister did not understand that, imagine how those who rely on British Sign Language feel at his press briefings. Some £2.6 million was spent on the new press room, yet there is still no interpreter; what message does he think this sends to disabled people?

Boris Johnson Portrait The Prime Minister
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I am grateful to the hon. Lady, and grateful for the way she has set out her question. I will revert to her as soon as I can.

Sarah Dines Portrait Miss Sarah Dines (Derbyshire Dales) (Con)
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Does my right hon. Friend agree that it is thanks to the sacrifice of the British people during lockdown and the great success of the vaccination programme that lots of small businesses across the whole country and in my constituency of Derbyshire Dales, such as Brocklehursts, which supplied clothing to Prince Philip, can remain open? Will my right hon. Friend join me in a campaign to shop local as we come out of lockdown?

Boris Johnson Portrait The Prime Minister
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I thank my hon. Friend. Yes, I certainly will encourage her and everybody else to shop local as we come out of lockdown, as I very much hope that we will be able to do. My right hon. Friend the Communities Secretary has announced that £830 million of funding from the future high streets fund has been allocated to areas, including my hon. Friend’s, to encourage that shopping that we all hope and want to see.

Ruth Cadbury Portrait Ruth Cadbury (Brentford and Isleworth) (Lab) [V]
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May I extend my condolences and those of my constituents to the Queen and the royal family for their sad loss, and to the families and colleagues of Cheryl Gillan and Shirley Williams? Will the Prime Minister tell the House when he last spoke to former Prime Minister David Cameron?

Boris Johnson Portrait The Prime Minister
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The honest truth—I cannot remember when I last spoke to Dave, but if the hon. Lady wants to know whether I have had any contact with him about any of the matters that have been in the press, the answer is no.

Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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Those who helped to develop, test, approve and manufacture the vaccines deserve our praise. Will my right hon. Friend also recognise that the successful roll-out of the vaccination programme has been based on the dedication of the NHS staff and the myriad volunteers who have made the process so easy for so many people?

Boris Johnson Portrait The Prime Minister
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My hon. Friend is completely right. This has been a colossal team effort. It has been led by the NHS, with GPs very often doing the lion’s share of the work, but they have been supported by the Army, by local council officials, who have also been absolutely magnificent, and, as colleagues have said, by volunteers as well.

James Davies Portrait Dr James Davies (Vale of Clwyd) (Con)
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The interim findings of Sir Peter Hendy’s Union connectivity review are very much to be welcomed. He highlights the improvements that need to be made to the railways in north Wales, linking up with Merseyside and Manchester, as well as the A55. Those improvements, of course, can help to level up the region. Will my right hon. Friend confirm that the projects in north Wales identified in Sir Peter Hendy’s work will receive a fair chunk of the £20 million of development funding as part of the agenda, and will he commit to implementing the findings of Sir Peter Hendy’s final report when it is released in the summer?

Boris Johnson Portrait The Prime Minister
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I thank my hon. Friend. We will look at what Sir Peter has to say. He has come up with some very interesting interim proposals, particularly about improving connectivity along the north Wales coastline—the routes into Merseyside. On the A55, I repeat what I said to my right hon. Friend the Member for Clwyd West (Mr Jones): there is a great opportunity to do that if people will vote Conservative and vote for a Welsh Conservative Government on 6 May.

Hywel Williams Portrait Hywel Williams (Arfon) (PC) [V]
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In 2007, my friend Adam Price, then the Member for Carmarthen East and Dinefwr, proposed the Elected Representatives (Prohibition of Deception) Bill. At this distance in time, it would be unkind to quiz the Prime Minister on the detail, but he is seen as a big thinker, so perhaps he could tell the House what he thinks of the principle of that Bill, which is that on important matters of public policy, politicians must not lie.

Boris Johnson Portrait The Prime Minister
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I have a high regard for the hon. Gentleman and, indeed, remember happy times with his colleague Adam Price. I do not remember the details of his Bill, but I think we would all concur with the basic principle that the hon. Gentleman has just enunciated.

Esther McVey Portrait Esther McVey (Tatton) (Con)
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Former police inspector Kash Singh set up One Britain One Nation, otherwise known as OBON, to bring together all communities, all classes, all ethnicities, races and religions to celebrate being British. OBON Day is held in June. However, next week, on 22 April, will be the launch at a school in Bradford. Will the Prime Minister join me in congratulating Kash Singh on his fantastic initiative for all communities to come together in a common pride of being British? Will he also make a message for the launch next week?

Boris Johnson Portrait The Prime Minister
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Well, I’ll do my best. I fully support what my right hon. Friend is doing and I congratulate Kash Singh on his work. It is incredible at this time that there are people who want to split our country up, rather than bring us together. That is what the SNP want. It is an absolute tragedy that they still think like that. I think they are going to change, but I wish everybody at OBON all the very best.

Kim Johnson Portrait Kim Johnson  (Liverpool, Riverside)  (Lab)
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Contrary to the conclusions of the Commission on Race and Ethnic Disparities report, institutional racism still exists. Forty years since the Liverpool 8 uprisings, black communities continue to suffer racial injustice and the report downplays the structural inequalities that still exist. The Resolution Foundation announced today that the unemployment rate for young black people rose by 35%, compared with 13% for their white counterparts. Can the Prime Minister confirm the allegations that Downing Street redrafted the report to change the narrative? Does he agree that the report should now be withdrawn?

Boris Johnson Portrait The Prime Minister
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Of course, when we look at and read the report in detail, the Government are not going to agree with everything, but there are some interesting observations and some interesting ways of looking at things. We will be responding in due course, but what we say is that nobody should be in any doubt as to the reality of racism and the struggle that too many people face. We will do everything we can to stamp it out, particularly to help young black people get the jobs and the education they need.

Stephen Metcalfe Portrait Stephen Metcalfe (South Basildon and East Thurrock) (Con)
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As my right hon. Friend will know, as we build back better we need to inspire the next generation of scientists and engineers. Will he therefore agree to work with EngineeringUK and Big Bang Digital to provide a short online introduction to this year’s event to reinforce the message that a career in engineering is rewarding, creative and can transform the world around us for the better? Will he recognise the extraordinary contribution that engineers have made and are making in our battle against covid?

Boris Johnson Portrait The Prime Minister
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Engineers and scientists of all kinds have been crucial in the fight against covid, and this is the moment to become an engineer or work towards being an engineer. We are putting a huge £640 billion investment into the infrastructure of this country over the next few years. We will need skilled young people to go into engineering, and that is why we put in the T-levels. I congratulate my hon. Friend on his initiative, and I will do my best to support him.

Matt Western Portrait Matt Western (Warwick and Leamington) (Lab)
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Given his ancestry, the Prime Minister will be more than familiar with the phrase “a fish rots from the head down”—it is a Turkish proverb. Put simply, since he became the Prime Minister the sound of Big Ben’s bongs has been replaced by the cash till sound of big donor bungs. There has been a threefold increase in bungs from property developers. Last summer, we had the case of Richard Desmond and the Communities Secretary. More recently, we have had Ministers dishing the dosh between constituencies, and the Health Secretary handing—or involved in—a contract with his pub landlord for £30 million-worth of PPE. Now, we have a Chancellor and Health Secretary who have sought to grease the wheels of involvement with Greensill and David Cameron. What does this say about the Prime Minister’s leadership of his Government?

Boris Johnson Portrait The Prime Minister
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I am afraid that the hon. Gentleman is simply wrong in what he says, particularly about my right hon. Friends the Chancellor and the Health Secretary; I do not believe that he should have spoken in those terms. What I will say is that there is one party in this place that brought in tough rules on lobbying, and another party that campaigned at the last election to get rid of those rules because of its relationship with the trade unions, because it wanted them to continue in the obscure, opaque way in which they were being run, and because it wanted people to be able to continue to lobby parliamentarians in the way that they always did. Look at the Labour manifesto from 2019. If the Leader of the Opposition repudiates it now, why does he not go ahead and do so?

Gareth Davies Portrait Gareth Davies (Grantham and Stamford) (Con) [V]
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In the past few months, a number of my constituents have taken to the streets to help tackle the problem of littering; I pay particular tribute to constituents in Colsterworth whom I met recently. Will the Prime Minister join me in backing the Grantham Journal’s spring clean campaign? Can he assure my constituents that the Government are doing all they can to tackle littering?

Boris Johnson Portrait The Prime Minister
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I share my hon. Friend’s indignation about litter. I think that it is one of the things on which the whole of the country and, I hope, the whole of the House are united. That is why we are doing the Respect the Outdoors campaign to encourage people to follow the countryside code and pick up their litter. Obviously a lot of people are meeting outdoors at the moment because of the pandemic; they must obey the basic laws of respect for other people—pick up their litter. We are putting money into new litter bins and, yes, we are increasing on-the-spot fines for littering. I know there will be many libertarians in this place who think that is unfair and draconian. Personally, I think it is the right thing to do. I abhor litter, and I urge anybody who sees anybody throwing away a crisp packet to tick them off and tell them to pick it up.

Lindsay Hoyle Portrait Mr Speaker
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I suspend the House for a few minutes to enable the necessary arrangements to be made for the next business.

12:31
Sitting suspended.

Gambling regulation

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
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The petition states:

The petition of residents of the constituency of North Ayrshire and Arran,

Declares that there is significant concern about the recent collapse of the betting firm Football Index following the suspension of the company’s license by the Gambling Commission and its entry into administration; notes that customers collectively have over £90 million trapped in the company with average losses of around £3,000 per customer; further declares that the petitioners understand that the firm operated as a ‘football stock market’, offering customers the ability to buy ‘shares’ in footballers whose price would increase or decrease, and customers could be paid in ‘dividends’ based on player performances; further that, only a few days after the company ‘minted’ new shares in footballers and enticed customers to purchase shares, the company drastically decreased dividend payments by 82%, leading to a virtual market crash on the site which caused significant losses for customers; further that concerns have been raised that the firm operated like a pyramid scheme and that it had been admonished by the Advertising Standards Authority in 2019 for creating the impression that the product was a lucrative investment opportunity; and further that this scandal has called into question the adequacy of gambling regulation in the UK, given the Gambling Commission saw fit to give this company a license and apparently failed to ensure adequate oversight.

The petitioners therefore request that the House of Commons urges the UK Government to launch a full independent public inquiry into this scandal to ensure that gambling regulation is fit for purpose in protecting consumers.

And the petitioners remain, etc.

[P002656]

Return to work after the pandemic

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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David Linden Portrait David Linden (Glasgow East) (SNP)
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I recently met Scope, the disability charity, which expressed concerns to me about a number of disabled people being compelled to return to work from furlough. We know, for example, that just 8.5% of people in the clinically extremely vulnerable category have received both doses of the vaccine, and the Government’s own figures show that 14% of disabled workers are employed in the wholesale and retail trade.

The petition has been presented to me, and it asks that the Government amend the coronavirus job retention scheme so that any disabled worker who is concerned about returning to work during the pandemic has the right to be put on furlough if they cannot work from home. The petitioners therefore request that the House of Commons urges the Government to consider ensuring that people with disabilities can make the decision on whether to return to work or remain on furlough. The onus should be on employees to decide, not the employer.

The petition states:

The petition of residents of the constituency of Glasgow East,

Declares that the COVID-19 pandemic has caused huge changes to the working patterns of many people across the UK, with the furlough scheme helping to support many businesses; further that restrictions across the UK are beginning to ease, with more businesses opening their doors, meaning that many people are returning to work; further that, despite the necessary safety precautions, some people with disabilities do not feel comfortable returning to work as of yet, and would rather wait until infection rates and COVID-19 cases have fallen further; further that the UK Government should ensure that nobody, particularly a person with a disability or health concern, is forced to return to work; further that the Government should commit to ensuring that the onus is on the employee to make the decision over their return to work, not the employer; further that if an employee wishes to stay on the furlough scheme they should be able to make this decision without repercussion and fear of losing their employment.

The petitioners therefore request that the House of Commons urge the Government to consider ensuring that people with disabilities are able to make the decision on whether to return to work or whether to remain on furlough and that this should be the employee’s decision, not the employer’s.

And the petitioners remain, etc.

[P002657]

NHS Pay Award (Report)

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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Motion for leave to bring in a Bill (Standing Order No. 23)
12:35
Carolyn Harris Portrait Carolyn Harris (Swansea East) (Lab)
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I beg to move,

That leave be given to bring in a Bill to require the Secretary of State to lay before Parliament a report on any proposal to award NHS staff a pay rise for 2021/22 below 2.1%; to require the Secretary of State to move a motion in the House of Commons to approve any such report; and for connected purposes.

The last 13 months have impacted all of our lives, through illness, bereavement and financial worries, on top of learning to live with the fear of the pandemic and the limits on our freedoms. We have not all faced the same level of difficulties, but none of us have escaped without our lives in some way being changed by the experience. Some 127,000 people have tragically lost their lives—this is one of the highest death tolls in Europe —and in the past year more than 450,000 have been hospitalised due to severe covid symptoms.

For every one of those people, it has been our amazing NHS frontline staff who have cared for them, fought for them and either celebrated their recovery or held their hand as they took their last breath. Our NHS staff have kept this country going, risking their own health, isolating from their own families, working harder than ever, grieving the lives they could not save and comforting the bereaved. They are the very best of Britain and they deserve to be given the credit and the reward for everything that they have done and everything they have sacrificed to keep the rest of us safe.

Nurses and NHS staff were promised at least a 2.1% pay rise, but the Government have now retracted that and recommended 1% for all NHS staff, with the exception of junior doctors, GPs and dentists. The Government pretend that this is a rise, but they are fooling no one. With inflation forecast to reach 1.7% this year, our NHS staff, who have shown nothing but commitment this last year, are now set to receive a real-terms pay cut. Nurses’ pay has been falling in real terms since the Conservatives came to power 11 years ago, with pay awards consistently lagging behind inflation. Already that is unacceptable, but in the current situation the Government’s proposal to reduce that even further shows a complete lack of respect and gratitude.

For me, the thought of looking a nurse in the eye and telling them that they are worth less this year than they were before the pandemic is outrageously insulting. All of us across this House stood on our doorsteps and clapped for our key workers. We all took to social media to thank NHS staff and tell them what a wonderful job they were doing. We would have all been indebted to them if we had got sick and needed hospital care to help us against this undiscriminating virus, as some on these Benches indeed did. So was this just for show? Were the warm words and platitudes just a tick-box exercise? Or do the Prime Minister and his Government, hand on heart, truly believe that a rule-breaking, unapologetic aide is worth considerably more than the hundreds of thousands of NHS staff who have worked tirelessly and selflessly to battle this viral enemy and save lives?

The promise was clear: a 2.1% increase, as a minimum—it was not dependent on inflation rates or any other economic struggles. That promise has been broken, in yet another ill-judged U-turn by the Government. If the Prime Minister and his Cabinet colleagues have now rescinded that offer and replaced it with an inferior one, they need to come to this House with the revised recommendation and put it to a vote. When Opposition Members clapped on a Thursday evening and pledged our support to the NHS heroes, we meant it, and we still mean it. Those NHS staff have held up their side of the bargain, working diligently and doing everything in their power to save lives. Now it is our turn to hold up our side by voting in favour of a fair, long-term pay deal that reflects their commitment.

A recent survey by the Royal College of Nursing concluded that more than a third of the 42,000 people who submitted responses were considering leaving the NHS because they felt undervalued. These are staff who are exhausted from their efforts over the last year—they have worked unpaid overtime, forfeited their mental wellbeing and, far too often, put our families ahead of their own. The least they expected in return was recognition and fairness, but when it comes to a Government who have consistently failed to deliver on both, it appears that they were expecting too much.

We are on a cliff edge here: we already know that we entered the pandemic with a record 100,000 vacancies across the NHS. If we do not pay the staff what they deserve, we will struggle to retain those we have—let alone fill any vacancies. Even the 2.1% in the long-term plan was a minimum, and a cautious one at that, but 1% is not a pay rise—it is an insult. Trade unions and professional bodies are calling for improved pay offers at varying levels. They know that a fair pay rise would also help to boost staff recruitment and retention.

A 1% pay rise for an experienced nurse equates to £3.50 a week. That is £3.50 for a year of unpaid overtime, unwavering commitment and personal sacrifice—£3.50 for a year of turmoil; of fighting a virus that at times seemed unbeatable; of watching patients die, despite doing everything possible to save them; and of having to keep on going when beyond exhausted.

On the Opposition side of the House, we believe that our NHS is worth so much more. Under this Bill, the Government will be required to present their recommendations for anything below the already approved minimum increase of 2.1%, and to seek agreement from the House on any new proposals. That is the least that our NHS deserves. Our NHS staff have not faltered since the start of the pandemic, and they deserve to be rewarded for that. Unions and stakeholders know it, the public know it and we on this side of the House know it.

Question put (Standing Order No. 23).

12:42

Division 249

Ayes: 222


Labour: 196
Liberal Democrat: 11
Democratic Unionist Party: 7
Independent: 4
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Alliance: 1
Green Party: 1

Noes: 0


The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.
Ordered,
That Carolyn Harris, Keir Starmer, Angela Rayner, Jonathan Ashworth, Dr Rosena Allin-Khan, Mr Nicholas Brown, Liz Kendall, Justin Madders, Alex Norris, Jim Shannon and Jamie Stone present the Bill.
Carolyn Harris accordingly presented the Bill.
Bill read the First time; to be read a Second time tomorrow, and to be printed (Bill 284).

Opposition Day

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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[19th Allotted Day]

Lobbying of Government Committee

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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12:53
Rachel Reeves Portrait Rachel Reeves (Leeds West) (Lab)
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I beg to move,

That the following Standing Order shall have effect until 31 December 2021:

Investigation into the Lobbying of Government Committee

(1) There shall be a select committee, called the Investigation into Lobbying of Government Committee, to consider:

(a) the effectiveness of existing legislation to prevent the inappropriate lobbying of Ministers and Government;

(b) the rules governing all public officials regarding conflicts of interest;

(c) the circumstances surrounding the appointment of Lex Greensill as an adviser in Government and the process by which Greensill Capital was approved for commercial arrangements with Government departments and other public sector bodies; and

(d) the role Government played in facilitating the commercial relationship between Greensill Capital and the Gupta Family Group Alliance.

(2) It shall be an instruction to the Committee that it:

(a) considers whether there are robust transparency and accountability procedures in place and whether existing rules are being adhered to;

(b) considers whether the Advisory Committee on Business Appointments’ regulatory framework and sanctioning powers are sufficient to enforce its advice;

(c) assesses the extent of undue influence that former politicians and advisers have on the policies and programmes of government departments and non-departmental public bodies; and

(d) that it makes a first Report to the House no later than 18th October 2021.

(3) The committee shall consist of 16 members of whom 15 shall nominated by the Committee of Selection in the same manner as those Select Committees appointed in accordance with Standing Order No. 121.

(4) The Chair of the committee shall be a backbench Member of a party represented in Her Majesty’s Government and shall be elected by the House under arrangements approved by Mr Speaker.

(5) Unless the House otherwise orders, each Member nominated to the committee shall continue to be a member of it until the expiration of this Order.

(6) The committee shall have power—

(a) to send for persons, papers and records, to sit notwithstanding any adjournment of the House, to adjourn from place to place, and to report from time to time; and

(b) to appoint specialist advisers to supply information which is not readily available or to elucidate matters of complexity within the committee’s order of reference.

(7) The committee shall have power to appoint a sub-committee, which shall have power to send for persons, papers and records, to sit notwithstanding any adjournment of the House, to adjourn from place to place, and to report to the committee from time to time.

(8) The committee shall have power to report from time to time the evidence taken before the sub-committee.

Mr Speaker,

“The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisers for hire, helping big business find the right way to get its way.”

That is how former Prime Minister David Cameron described the next big scandal to hit British politics, back in 2010. We might think that what David Cameron lacks in transparency he makes up for in fortune telling, except that he had inside information because the person exploiting the loopholes would be the very same David Cameron.

We had a Conservative Prime Minister giving Lex Greensill access to all areas of Government. He was brought in and given privileged access to the heart of Government with the title and the business card of a senior adviser in the Prime Minister’s office. Then—what a stroke of luck—when he was no longer Prime Minister, and just past the required period, when he no longer needed the approval of the Advisory Committee on Business Appointments, David Cameron joined Greensill to lobby the Conservative Government full of his friends.

Having refused to respond to any questions at all for 40 days, David Cameron chose a period of national grief, hoping that there would be less political criticism and less scrutiny. It is cynical and it is shabby, and the statement itself was toe-curling. He is not sorry for his conduct, for the texts and the drinks, but he is sorry he got caught and he is sorry that his shares are now worthless. This is not just a question of why he did not go through the correct channels; it is question of why he was doing this at all.

Let us be really clear: David Cameron was not working in the national interest; he was working in his own personal interest, with the hope of making millions of pounds for himself through the exercise of his share options. But questions cannot just be asked of David Cameron, when it is current Conservative Ministers who have paved the way for this scandal. When it comes to lobbying, it takes two to tango. For every former Minister lobbying, there is someone in power being lobbied. That is why this scandal is not just about the conduct of David Cameron during his time as Prime Minister and in the years afterwards. This is about who he lobbied in the current Government and how they responded.

Lex Greensill was awarded a CBE and was made a Crown representative by a Conservative Government, yet his company’s spectacular collapse now means that over 50,000 jobs are at risk around the world, including thousands in the UK’s steel communities, from Hartlepool to Stocksbridge, from Rotherham to Scunthorpe and to Newport. The steel industry is crucial and the Government must make it clear that our steel industry will not pay the price for the failures at Greensill and beyond.

This Government have set up an inquiry, but just about supply chain finance and Greensill. Such a review is wholly inadequate, and deliberately so. They do not want to explore what needs to change in lobbying or who currently gets access to power, or the wider issue of how to lift standards, which have fallen so far in the 10 years of Conservative Governments. They do not want public hearings. They do not want the disinfectant of sunlight, as David Cameron once urged. They just want this to go away, which is why they have chosen Nigel Boardman to chair the inquiry.

It is a fact that Nigel Boardman is a good friend—a very good friend—of the Conservative Government. Some may suspect that the son of a former Conservative Cabinet Minister might be unlikely to make waves, but let us look at his record. Mr Boardman has been paid over £20,000 per year as a non-executive director at the Department for Business, Energy and Industrial Strategy—a Department with a real interest in the British Business Bank, which lent to Greensill, and the British steel industry, where so many jobs are now at risk. Mr Boardman has already whitewashed the Government’s handling of public procurement during the pandemic and I fear that he will do the same again with this inquiry.

You will remember, Mr Speaker, that I jointly chaired the inquiry into the collapse of Carillion. The fact that Mr Boardman’s law firm made £8 million advising Carillion, including £1 million on the day before the outsourcers collapsed, leaves a terrible taste in my mouth as it should in the mouths of Members on the Government Benches. To cap it all, Mr Boardman was appointed to a prestigious role at the British Museum by—oh, by David Cameron! What is being proposed by the Government is not remotely fit for purpose. It is not an inquiry. It is not independent. It is an insult to us all.



The scope of this inquiry has to be bigger than supply chain financing. It has to be about lobbying, too, and bigger than what rules were broken. If the existing lobbying rules were not breached, that is a big part of the problem, surely. Had the Conservatives backed Labour’s amendments to the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Bill back in 2014, there would have been much more transparency, but they did not. David Cameron and his Government voted them down, and boy are they exploiting them now! We need public service in the national interest, not people viewing the state like some get-rich-quick scheme, with taxpayers treated as collateral damage.

We now learn that the Conservatives are joined in all this by the SNP, whose Rural Economy Secretary in the Scottish Government dined with Lex Greensill in one of Glasgow’s finest restaurants with no officials, no notes, no emails, no texts and no phone records about the meeting. Here in Westminster, we have witnessed the degrading of the ministerial code.

Brendan O'Hara Portrait Brendan O'Hara (Argyll and Bute) (SNP)
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We have absolutely no quibble with what the shadow Minister has been saying, but is she trying to draw an equivalence between what David Cameron did and what Fergus Ewing did in a meeting that was recorded and has been publicly available for a long time on the Scottish Government’s website? There was nothing untoward in what Fergus Ewing did, and in trying to conflate the two, the hon. Lady does a great disservice to herself and her argument.

Rachel Reeves Portrait Rachel Reeves
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Well, the Scottish people can be the judge of that. If the hon. Member thinks that a Scottish Minister dining with Lex Greensill is okay, his party should put that on its leaflets in the elections in May.

Sir Alex Allan resigned as independent adviser on ministerial interests following the Prime Minister’s failure to take action on the Home Secretary’s bullying behaviour. That was five months ago. The Government have not replaced him. They have not even advertised the job. What does that say about how seriously this Government take standards?

Bernard Jenkin Portrait Sir Bernard Jenkin (Harwich and North Essex) (Con)
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I just point out that, when Gordon Brown appointed his Prime Minister’s adviser on ministerial interests, that job was not advertised either because it is not advertised; it is a prime ministerial appointment. The motion proposes to set up a new Select Committee when there are many existing Select Committees. I am Chairman of the Liaison Committee. Why has the hon. Member not consulted any of us about this manoeuvre? I appreciate what Oppositions do, which is to try to embarrass the Government, but she is right that there are much wider issues to address. Should we not try to address those issues in a bipartisan manner?

Rachel Reeves Portrait Rachel Reeves
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I thank the hon. Gentleman for his intervention. The point about Sir Alex Allan is that it is five months later and nobody has been appointed to this role. Whether we advertise the role or not, it has been vacant for five months. [Interruption.] A Member says from a sedentary position that it will happen shortly, but five months is an awfully long time.

I will come on to the issue of the composition of the Select Committee, but like the hon. Gentleman, I had the privilege of chairing a Select Committee. When scandals happened, we looked into them, as we did with the collapse of Carillion, and I know that the hon. Gentleman did so too. The problem is that there is no overarching inquiry planned into not just what happened with Greensill but more widely around lobbying, cronyism and sleaze. I am very happy to work on a cross-party basis to take this forward, and I welcome the comments from the hon. Gentleman over the last couple of days.

As well as the lack of an adviser on ministerial interests, there has been an absence of ministerial interests being published. They are supposed to be published twice a year, but they were published only once last year, in July, and not at all since then. These things matter—they are the foundations on which the standards of government rest, and under this Government, those foundations are being consciously removed. That is why this motion does what the Government should have done but chose not to: it gives the power to this House, not the Government, with a 16-strong Select Committee with clout to investigate this whole sorry scandal. It would have powers to call witnesses and examine them in public, like an effective Select Committee would. The investigation that we propose would look at inappropriate lobbying of Government and what needs to be done to prevent it. It would have the powers needed to demand witnesses and communications. It would examine the Advisory Committee on Business Appointments and whether it has sufficient powers, resources and the right remit. Put simply, this special new Select Committee would aim to tackle the problem staring us in the face, not cover it up.

William Wragg Portrait Mr William Wragg (Hazel Grove) (Con)
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I note the motion and thank the hon. Member for it. I just wondered why she thought it was appropriate that the membership of that Committee be nominated by the Committee of Selection? Why should it be filled with a load of Whips’ stooges?

Rachel Reeves Portrait Rachel Reeves
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I will not comment on how Select Committee Chairs are sometimes elected in this place. But as a former Select Committee Chair, I know how seriously colleagues around this House would take this responsibility, as the hon. Gentleman does. We are prepared to make a concession to Conservative Members. We will accept that this Committee can be chaired by a Back Bencher from the governing party as long as there is cross-party representation on the Committee, as with other Select Committees.

The Conservative party is at a fork in the road. If MPs vote for this motion, a proper investigation can take place, led by a team with the confidence of this House, not someone handpicked from the board of one of the Government Departments embroiled in this scandal. But if they vote against it, as the Prime Minister has told them all to do, I am sorry to say that they too will be part of the Government’s attempt to cover up Tory sleaze. All Members here today should reflect on who they are here to serve: their constituents and their country, or their narrow party interests?

The stakes are high for our democracy and our public life. It was a past Conservative Government—embroiled in sleaze in the 1990s—who eventually recognised the need for standards to rise and to create the Nolan principles. The Nolan principles of public life have to live and breathe through all those in public office serving our great country. Yesterday we learned that the Government’s former head of procurement was an adviser for Greensill while still a civil servant. Incredibly, that was approved. The defence is that it was “not uncommon”. What on earth was happening at the Cabinet Office and at the heart of Government to allow these conflicts of interest to fester? Sir John Major, who witnessed the cash for questions scandal and other Tory sleaze in the ’90s when he was Prime Minister also believes that the rules need to be changed again.

One of the Nolan principles—as you well know, Mr Speaker—is leadership. With that in mind, where is the Chancellor of the Duchy of Lancaster today? Where was the Chancellor of the Exchequer yesterday? What have they got to hide? There is a wider pattern of behaviour with the Conservatives here, in the present as well as in the recent past: a Conservative Government who are more interested in private drinks with the owners of private jets than meeting the families bereaved by covid; a Government who gave a 40% pay rise to Dominic Cummings, but a pay cut to nurses; Tory politicians thinking that it is one rule for them and another for everybody else; personal attention lavished on friends of Cameron, while 3 million people are excluded from Government financial support and cannot even get a meeting with the Treasury.

Rachel Reeves Portrait Rachel Reeves
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If the hon. Member wants to defend all that—be my guest.

Craig Williams Portrait Craig Williams
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On the subject of leadership, the hon. Lady has touched on the Scottish Government. But the Welsh Government have of course been in place for 22 years and there is still no lobbying register, and the Advisory Committee on Business Appointments has recently taken the former Labour First Minister to task over an appointment to GFG. On leadership, may I draw the hon. Lady on those points?

Rachel Reeves Portrait Rachel Reeves
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As far as I am aware, the First Minister of Wales has not appointed a financier as his adviser, nor does he have £30 million-worth of share options that he might fancy exercising. The hon. Gentleman has today abstained in a vote to give nurses a pay rise—put that on your election leaflet at the next general election.

Some £2 billion of public contracts in the last year have gone to friends and donors of the Conservative party, which has been rolling out the red carpet with a VIP fast lane for contracts. Supposedly independent reports have been rewritten by Downing Street. There are undeclared details on who has paid what for a luxury refurbishment of the No. 10 Downing Street flat. Relationships are undisclosed, and there are increasingly frequent breaches and casual disregard of the ministerial code.

Some have asked this week, quite powerfully, “When did we stop caring about honesty and integrity?” That is what this motion is about. What happens in the vote will say so much about our great country, but also about our current Government. That is why I urge all hon. and right hon. Members to do the right thing and back this motion today. Vote for a proper investigation to close the loopholes, to rein in the lobbyists and to lift standards in this great democracy in which we all have the privilege to serve.

13:10
Chloe Smith Portrait The Minister for the Constitution and Devolution (Chloe Smith) [V]
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I welcome the chance to contribute to this Opposition day debate. I am sure that you will appreciate, Mr Speaker, that it is appropriate and possible to do so virtually.

First, may I add my own tribute to those made earlier this week to His Royal Highness the Duke of Edinburgh, whose commitment to the service of this country and to the highest possible standards of conduct was exemplary?

During the extraordinary challenge of covid-19, the Government have worked with people and businesses of all sorts—from private citizens to key workers, from our brilliant small and medium-sized enterprises to multi- nationals. In that monumental effort to protect the public and save lives across the country, civil servants across Government, working under incredible pressure, have achieved extraordinary things.

Even away from times of crisis, this country can be proud of the standards that we uphold. In Transparency International’s 2020 index, which ranks countries, the United Kingdom was ranked above close European neighbours such as France and Ireland in 11th place. We are the first G20 country to establish a public register of domestic company beneficial ownership and the first G7 country to undergo an IMF fiscal transparency evaluation.

This Government value such reputation and will always uphold it. As hon. Members heard my right hon. Friend the Prime Minister say just now, we are concerned about some of what has emerged in recent weeks. Most of what this complex motion proposes is already being done. Indeed, as the policy Minister responsible, it is perfectly sensible for me to respond today on behalf of my Department. The hon. Member for Leeds West (Rachel Reeves) has shadowed me before—10 years ago—and it is good to see her again today in her place.

The motion seeks to establish in Standing Orders a Select Committee with a remit so wide-ranging as to cut across Parliament’s existing Committees and independent bodies that have responsibilities in this area. Let us take the elements part by part. Looking at the effectiveness of existing legislation on lobbying, the Government are already doing this and I shall explain more in a second. On the Greensill affair, an independent review was announced this week, before this motion was laid, and will be effected. On transparency measures and the ACOBA framework, the Cabinet Office is already working to strengthen the former and supporting the reforms of my noble Friend Lord Pickles to bolster the latter. We are opposing the motion today because it seeks to duplicate the work that is already in the gift of Parliament and its Committees and, as I will set out now, work that is already being undertaken by the Government.

Starting with the effectiveness of existing lobbying legislation, we are currently conducting post-legislative scrutiny of part 1 of the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014, which we all know as the lobbying Act. It is looking precisely at the scope and effectiveness of that legislation. The hon. Lady did not mention that—not one whit. That legislation introduced a new statutory register of consultant lobbyists and a requirement that those undertaking paid lobbying on behalf of any third party must register and make clear who they are representing to Ministers and permanent secretaries.

The requirement for consultant lobbyists to declare that work complements the system of self-regulation that lobbyists also adhere to through professional codes of conduct. It makes transparent otherwise hidden lobbying. It remains an important part of the framework, filling an accountability and transparency gap that existed prior to that point. We think that it operates effectively but, as I have said, we are looking at whether further improvements can be made, as is best practice through post-legislative scrutiny. Once that work is complete, we intend to deliver a memorandum to the Public Administration and Constitutional Affairs Committee for further scrutiny. Would it really be constructive for these workstreams to be undertaken in parallel by separate Committees, potentially cutting across one another, sowing confusion? We think that it would not.

While the creation of Select Committees is of course a matter for the House, there are already relevant Committees in Parliament with the powers and capacity to do such work as is proposed. I note that the Chair, and indeed the prior Chair, of PACAC have already spoken today. That Committee is responsible for the examination of the quality and standards of administration across the Government. In this Parliament, it has already undertaken relevant inquiries. Indeed, it has also called the chair of the Committee on Standards in Public Life to give evidence. It has the powers to send for persons, papers and records, and to report to the House—the powers proposed for the new Committee—so I question the necessity of an additional Committee. Indeed, that additional proposed Committee would also cost a quarter of a million pounds.

Her Majesty’s Government has a full framework in place to ensure that public money is spent efficiently, and that those who serve as stewards of those public resources act in accordance with the highest standards and in the public interest. The use of public money is overseen by the Treasury and, of course, Parliament, and the use of public position and information is overseen by the Cabinet Office and rightly held to account by Parliament and the public. Furthermore, all those who work across the public sector are expected to maintain the ethical standards embodied in the seven principles of public life, which underpin the respective codes for Ministers, for the civil service and for special advisors, as well as the code of conduct for board members of public bodies. That requirement to act with integrity means that public office holders must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work, and all holders of public office must declare and resolve any interests.

We are not complacent, neither about the scale of this challenge nor about taking action where necessary to uphold the public’s faith in what we should all stand for. Since 2010, under the coalition and then under Conservative Governments, we have significantly increased transparency on the workings of Government—which the public should rightly be able to expect—from publishing contracts and details of spending, salaries, tenders and meetings to launching that statutory register of consultant lobbyists, far more than ever published under the last Labour Government. This Government have banned the once-endemic practice of Government quangos hiring lobbyists to lobby the Government. They have ensured that taxpayer-funded Government grants are not then used to lobby the Government themselves. They have introduced greater transparency of trade unions and campaign finance controls on third parties seeking to lobby in our elections, so when the Government are being held to account—as is right—it is because a tougher regime of transparency has been in place for over a decade, and is now the norm.

We are going further still to uphold the covenant of trust with the public. I have already touched on the Government’s review of lobbying legislation. In addition, we are reviewing and improving business appointment rules, which I will return to in a moment or two. However, as the hon. Member for Leeds West dwelt upon at some length, the Cabinet Office this week has announced a review on behalf of the Prime Minister into the role in Government of Greensill Capital, the finance company that went into administration last month. The review will look at the development and use of supply chain finance associated activities in Government, and specifically the role of Greensill, including how contracts were secured and business representatives engaged with Government.

The review will be wide-ranging, and will also consider the issues raised by my noble Friend Lord Pickles regarding Mr Bill Crothers’ role at Greensill Capital. The public can be assured that Mr Nigel Boardman, the senior lawyer leading the review, who will pause his activities as a non-executive director at the Department for Business, Energy and Industrial Strategy for the duration, will have full access to the people who were in government at the relevant time and who made the relevant decisions. I would add that the information that has already emerged in recent weeks about Greensill Capital has done so in some part because the system in place is doing its job, and ensuring support for transparency and accountability.

I will not go into great detail further about recent events, because that inquiry will do so, but two further things can be said now about lobbying policy. First, the Registrar of Consultant Lobbyists conducted an investigation into Mr David Cameron’s activities, and has confirmed that those did not require registration under the current legislative framework. For good reason, these rules apply to consultant lobbyists, who may seek to influence policy making on behalf of a third party who would otherwise be hidden. Mr Cameron was working openly in-house as an employee. To complement this law, the meetings of Ministers and permanent secretaries with external organisations are published on a quarterly basis and are made available on gov.uk. That data describes both the purpose of the meeting and the names of the organisations or individuals who are met. That is very important. Regulation must of course balance the need for transparency by lobbyists while not preventing engagement by the voluntary and private sectors.

The second thing is to engage in the politics of today’s Opposition day, although it is a great shame to do so in a period of national mourning. The hon. Member for Leeds West failed to say that Labour now wants to repeal the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014. This was in its manifesto, alongside repealing the Trade Union Act 2016. Who is not to say that the Labour party would simply give favours to the union barons who bankroll it? After the EU referendum, Labour MPs called for tighter controls on third-party campaigning, but their official policy is to rip up these lobbying laws. Indeed, in 2014, at the time of making that law, the Labour party supported amendments that would have placed significant barriers on engagement and required thousands of businesses, charities, non-governmental organisations and trade bodies to pay a registration fee of £1,000 a year to write or speak to Ministers. This could have been detrimental to the public interest during the covid pandemic, when groups across civil society rightly wanted to put their case to Government.

However, I agree with the hon. Lady that transparency and probity are fundamental. I would like to cover one more area on business appointment rules. As I have mentioned, the Cabinet Office is working with Lord Pickles, who is the chair of the Advisory Committee on Business Appointments—ACOBA—to improve and extend the business appointment regime. That applies lobbying bans on former Ministers and civil servants, including special advisers. The business appointment rules seek to protect the integrity of the Government while allowing for people to move on to roles outside government. Although affording ACOBA statutory powers to enforce these rules would be out of line with the general principle of UK law that Ministers and officials are subject to the same legal system and statutory framework as everybody else, ACOBA is able to enforce a range of sanctions for non-compliance. That is very important. The Government support changes being introduced by ACOBA to improve the business appointment process. A framework with a risk-based consideration of cases aims to bring greater transparency and improve the reporting of any breach of the rules, increasing the moral and reputational pressure on those leaving public office. In addition, the Cabinet Office is leading work to improve the scope, clarity and enforcement of the rules, and how consistently and proportionately they are implemented across government. In short, we are taking action on a range of fronts to ensure that we maintain the highest standards in our politics and public life.

We should all condemn the kind of lobbying that gives politics and politicians a bad name in all parts of the House, but this motion does not achieve that. Instead, it sidetracks, proliferates and duplicates. I invite Labour to settle its own view, find its own position, and agree with us that transparency and probity are vitally important. I urge all hon. and right hon. Members to join us in this work to continue to scrutinise these critically important matters through the work of existing Select Committees, through the Committee on Standards in Public Life, and through the inquiry that we have now set up—among other ongoing, unstinting efforts that are of course accountable to this House—and to vote against this unnecessary and unconstructive motion that achieves so little extra. It is incumbent on all politicians to act with integrity as elected Members, as Ministers when we hold such positions, and in accordance with the principles of public life. It is incumbent on all of us in this House to ensure that important issues are carefully and effectively scrutinised. I have explained today how the Government are playing their part in this, and I urge all hon. Members to vote against the motion.

13:23
Brendan O'Hara Portrait Brendan O’Hara (Argyll and Bute) (SNP)
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Mr Speaker,

“I believe that secret corporate lobbying…goes to the heart of why people are so fed up with politics. It arouses people’s worst fears and suspicions about how our political system works, with money buying power, power fishing for money and a cosy club at the top making decisions in their own interest. It’s an issue that...has tainted our politics for too long, an issue that exposes the far-too-cosy relationship between politics, government, business and money.”

Wise words indeed, and I wish they were mine, but they are not. They were said by David Cameron in February 2010, just a few short months before he became Prime Minister. He became Prime Minister with a promise that:

“If we win the election, we will take a lead on this issue by making sure that ex-ministers are not allowed to use their contacts and knowledge—gained while being paid by the public to serve the public—for their own private gain.”

Today, David Cameron, that self-styled great reformer, is up to his neck in the same cronyism, corruption and sleaze that he promised to call out, expose and eradicate while in opposition.

The hypocrisy is breathtaking, and not simply because nothing has changed. We now know that far from taking on the corrosive culture of the nod and a wink and the old boys’ club favouritism, he actually took it into government. We now know that while David Cameron was Prime Minister, Lex Greensill himself became so embedded in Downing Street that by 2012, he even had an official No. 10 business card, describing himself as a “Senior Advisor”.

Almost 10 years to the day after delivering those stirring words and making those great promises, we discover that David Cameron directly lobbied the Chancellor of the Exchequer, the Secretary of State for Health and Social Care and senior Government officials, thereby securing 10 meetings in three months in an attempt to influence the UK Government’s covid corporate financing facility. He did it to benefit Greensill Capital, where he was then working as an adviser and lobbyist for the same Lex Greensill and where he reportedly held share options worth millions of pounds.

I invite Members to compare and contrast that level of access to the Chancellor and the powers that be at the centre of Government with that given to the millions of people and businesses left without any UK Government support during the pandemic, and in particular the group of the excluded—those 3 million self-employed people who have been left without a penny of Government support. What they would have given for just one of the opportunities that were afforded Mr Cameron, let alone the 10 that he got.

I wonder whether Mr Cameron recalled at any point while brokering those meetings his own hollow words of February 2010. He said:

“We all know how it works. The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisers for hire, helping big business find the right way to get its way.”

Of course, now it transpires that the Greensill influence in Downing Street during the Cameron years went even further and deeper than we could ever have imagined, with the astonishing revelation that in 2015, one of Britain’s most senior civil servants was given permission to work part-time as an adviser to the board of Greensill while still serving as the UK Government’s head of procurement.

How is it possible that the Cabinet Office gave the green light for the former Government chief commercial officer at the Cabinet Office to become part of Greensill Capital in September 2015 while still working as a supposedly impartial civil servant? Who authorised such a move? Who approved this appointment? Who thought that that was okay? What questions did the people at the Cabinet Office operating the internal conflict of interest policy actually ask to reach the conclusion that it was perfectly all right for one of the UK’s most senior civil servants to twin-track and work for a private finance company whose owner at that point was swanning about Downing Street, dishing out business cards describing himself as a special adviser to the Prime Minister? It beggars belief.

This is crony capitalism at its worst. It stinks. The closer we get to it, the more it reeks, and that is why we will be supporting a full independent and transparent investigation and why we will support this motion when the House divides this afternoon.

On its own, the Greensill scandal would be bad enough. Unfortunately it is far from being an isolated event. It is just the most recent example of the rampant cronyism that is at the heart and centre of this Government, who seem to be stumbling from one scandal to another as the details emerge of a network of those who have become fabulously wealthy during this pandemic not because of their skill or business acumen but because of their political connections. In November last year, the National Audit Office revealed that companies with political connections who wanted to supply the UK with personal protective equipment were directed to a high priority channel, where their bids were 10 times more likely to be successful that those from companies that did not have links to politicians and senior Government officials.

In and of itself, the existence of this high priority channel is quite remarkable, but it becomes far more sinister when we consider that the NAO also reported that there were no written rules for how this high priority channel should operate, meaning that the companies gaining political support had access to hundreds of millions of pounds of public funds, were not subject to the usual procurement rules and could bypass the essential paperwork that in normal times would be a prerequisite for safeguarding against the misuse of public funds.

No matter how we look at this, it is not a good look. I absolutely agree with Professor Liz David-Barrett of the University of Sussex when she said:

“It’s not clear to me why MPs or peers should have any special expertise on whether a company is qualified to provide PPE.”

She is absolutely right. She went on to make the entirely reasonable point that those who can be described as being linked to politically exposed persons are usually treated as being higher risk and therefore deserving of more scrutiny rather than less.

John Penrose Portrait John Penrose (Weston-super-Mare) (Con)
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I asked a parliamentary question about the standards being applied to people and companies on this supposed fast-track list versus others, to check that the same due diligence standards were being applied to both sides and that there was a level playing field. The answer that I got was that they were and that in this respect the playing field was level, so would the hon. Gentleman care to reconsider his point that the same processes do not apply?

Brendan O'Hara Portrait Brendan O’Hara
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What I would love to happen is for the Committee, when it meets, to examine that in detail to find out exactly whether it is true. What is inescapable is that a company is 10 times more likely to receive a Government contract through a political contact. That deserves careful scrutiny and has to be smoked out to the nth degree.

Jamie Stone Portrait Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
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However we collectively as the body politic got into this situation, may I suggest that it is damaging public trust in elected representatives? The one good thing about this Committee, if it were seen to be put in place, would be that it could restore some of that trust and repair some of the damage to democracy in the UK.

Brendan O'Hara Portrait Brendan O’Hara
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The hon. Gentleman is right. I think we all know from our postbags that, regardless of which side of the House we are on in this debate, we are all tainted by this. Anything that can shine a light on this —admittedly where some might not want it to be shone—would be a very good thing, and I wholeheartedly support it.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
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Is there not another point here, which is that whatever inquiry needs to be done must have the proper powers? For instance, it needs to be able to guarantee that anybody who gives evidence can do so without fear of prosecution, so that if there is a whistle that needs to be blown, it can be blown. It also needs to have subpoena powers, so that people who do not want to give evidence could be forced to do so. So far as I can see, those powers could be provided only by a judge-led inquiry—maybe we should go down that route, but I think it is unnecessary—or by a parliamentary inquiry.

Brendan O'Hara Portrait Brendan O’Hara
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The short answer is yes, and that is something that I will come on to in a moment. That is why this is so important.

It is not just Members of this House who are questioning the corrosive culture of cronyism at the heart of this Government; it has been attracting some fairly high-profile international attention too. At the end of last year, The New York Times decided to investigate how the UK Government managed what it described as the greatest spending spree in the post-war era. It concluded that of the 1,200 central Government contracts worth nearly $22 billion,

“$11 billion went to companies either run by friends and associates of politicians in the Conservative Party, or with no prior experience or a history of controversy.”

That is an incredible amount of money, and any hint that it has been spent at the behest of someone with close ties to Downing Street or for the benefit of companies that have political allies in Government is deeply worrying. It has to be examined—and examined fully, robustly and independently.

While people might understand and accept that things had to happen quickly in the circumstances, and perhaps that normal procurement rules were not sufficiently speedy, they will not accept that a Government have any right to rip up every rule, every standard, every safeguard and to start throwing about public money like a scramble at a wedding, particularly when it is their mates who are there waiting to pick it up.

Alan Brown Portrait Alan Brown (Kilmarnock and Loudoun) (SNP)
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Does my hon. Friend agree that the Committee should perhaps look at other activities that this Government get up to? There are things such as the Brexit contracts—I recall that they gave a contract to a ferry company that had no ferries—and all the appointments to external bodies and regulators, which are further examples of cronyism. We need to look at this in the bigger mix as well.

Brendan O'Hara Portrait Brendan O'Hara
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I absolutely agree with my hon. Friend, and I am sure that will not have escaped those on the Treasury Bench.

The Government’s inquiry, led by Nigel Boardman, simply will not work. It cannot be seen to be independent, as we have heard, because of the baggage and the back story that he has. Mr Boardman may have carte blanche to ask whatever questions he likes to whomever he likes, but they will have carte blanche not to answer those questions. If that is the case, what is the point? I have no doubt that this scandal will rumble on, and when it does, we must have a mechanism that is robust enough to see it.

Back in 2010, in his now risible speech, Mr Cameron said:

“We can’t go on like this…it’s time we shone the light…on lobbying in our country and forced our politics to come clean about who is buying power and influence.”

I wish he had meant it back in 2010. We have to mean it now, and that is why we will be supporting this motion.

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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We have many speakers to get in in what is a fairly short debate, so I will impose a four-minute limit to start with—that will be on the clocks in the Chamber and on the screens of those participating virtually—but it will probably have to go down to three minutes fairly quickly.

I call the Chair of the Public Administration and Constitutional Affairs Committee, William Wragg.

13:37
William Wragg Portrait Mr William Wragg (Hazel Grove) (Con)
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May I thank the Opposition for tabling a motion to establish a Committee, but gently point out to them that one already exists; namely, the Public Administration and Constitutional Affairs Committee, which the House has given me the honour of chairing? I trust that the motion before us is not a vote of no confidence in either me or, indeed, the very independent-minded membership of that Committee.

I can forgive that oversight—momentarily forgetting the existence of that Committee—because, in a week of national mourning, and even on the day of tributes to His late Royal Highness, I did not think it seemly to be prattling about television studios. Nor, for that matter, did I think it was at all seemly for Mr Cameron’s statement to be released at that time. But rest assured that the Committee is and will be giving these matters proper consideration.

Perhaps to labour the point made by the Leader of the Opposition at Prime Minister’s questions—no doubt it will fall similarly flat when I say it—I am more than happy to take up the role of the AC-12 of Whitehall, but the motion proposed this afternoon could be taken from the script of Sunday night’s episode. For the benefit of the tape, I have full confidence in the members of the Committee to discharge their duties and do not require a reorganisation.

The House will note the Committee’s public session tomorrow morning with Lord Pickles, who, as chair of the Advisory Committee on Business Appointments, will doubtless have a vital contribution to make in illuminating matters. We also intend to have the Cabinet Secretary before the Public Administration and Constitutional Affairs Committee within the next fortnight. I ask the House to be assured that we will pursue every possible line of inquiry with our witnesses and shall conduct ourselves without fear or favour.

Without prejudicing these inquiries, I will offer a reflection on the crux of the issue. I wonder whether the attention given to the former Prime Minister, Mr Cameron, is somewhat of a red herring; it is no doubt a tasteless, slapdash and unbecoming episode for any former Prime Minister, but is it the central issue? After all, what is the key attribute of a former Minister or senior official? Surely we are all institutionalised and deskilled by public life; what possibly qualifies a former Minister or senior official? Food for thought.

There are four key areas of questioning ahead. First, the collapse of Greensill Capital has highlighted the shortcomings of the ACOBA rules and their applications. Secondly, does ACOBA’s oversight end completely two years after a former Minister or official has left their post? Thirdly, a senior official appears to have moved from a civil service position to join Greensill without application to ACOBA; is a secondment a technicality or at least a breach of the spirit, or indeed an actual breach, of the rules? Fourthly, Mr Greensill appears to have been a special adviser at 10 Downing Street; as a Spad, he would have fallen within ACOBA’s remit, and if so did he comply with the business appointment rules?

Jackie Doyle-Price Portrait Jackie Doyle-Price (Thurrock) (Con)
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The questions my hon. Friend is posing are accommodated within the rules, but what we are talking about here is behaviour, and does he agree that this is about principles, indeed the very Nolan principles, and if everybody involved in public service viewed them as a code of practice for life we could avoid a lot of this?

William Wragg Portrait Mr Wragg
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It is often the case that if an individual’s attitude and sense of public probity were such, there would be no need for rules, but I fear we are quite often at risk of falling short.

William Wragg Portrait Mr Wragg
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The Chair of the Liaison Committee is indicating that he wishes to intervene.

Bernard Jenkin Portrait Sir Bernard Jenkin
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I rise briefly to make the point that the 2017 Public Administration and Constitutional Affairs Committee report into the ACOBA rules recommended changes to the ministerial code and the civil service so there would be proper conversations about these conflicts of interest as they arise, which do not take place in the current atmosphere.

William Wragg Portrait Mr Wragg
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My hon. Friend is entirely correct, and I believe the whole new Committee entirely endorses the latest, 2017, report of the previous Committee and would wish to see those recommendations taken forward.

Chris Bryant Portrait Chris Bryant
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Will the hon. Gentleman give way?

William Wragg Portrait Mr Wragg
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Yes, but I am at risk of indulging the hon. Gentleman too much.

Chris Bryant Portrait Chris Bryant
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Of course, the Nolan principles are embodied in the code of conduct that affects all MPs, and all this does is raise the danger of bringing the whole of the House into disrepute, so I very much hope that the hon. Gentleman’s Committee will work with mine, the Committee on Standards, as we are reviewing the code of conduct to make sure that it really does work for the modern era.

William Wragg Portrait Mr Wragg
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I thank the hon. Gentleman for his intervention.

Hon. and right hon. Members should always be careful in using the privilege afforded to us in speaking in this House, but I find it odd that the leaked emails should be from the late Cabinet Secretary, which cannot be contextualised or challenged by a man who is dead. We must be mindful of scapegoating, especially when it appears too neat, but neither should we allow conspiracy theories to abound without challenge. In the debate that follows, difficult as it may be, I would ask my hon. and right hon. Friends not to unquestioningly defend the integrity of others if they have doubts or have been asked to do so. Whatever little or imperfect integrity we have ourselves—for we are all fallible—it is the only integrity we can seek to protect.

13:43
Karl Turner Portrait Karl Turner (Kingston upon Hull East) (Lab) [V]
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I do not intend to detain the House for very long, as I know that many of my colleagues want to speak in this very important debate, and for very good reason.

The revelations reported in the press these past weeks of private messages between the Chancellor and the former Prime Minister David Cameron, private drinks between Mr Greensill and the Health Secretary, and a private network of connections between favoured businesses and Government Ministers are an absolute disgrace and a scandal. Sadly, they are just the tip of the iceberg of the cronyism and sleaze that are rife in the Conservative party, which it has now allowed into the heart of our Government. Many small businesses in Hull have had to fight tooth and nail to access financial support during the pandemic, so it is insulting that corporations that can afford a former Prime Minister on the payroll can have cosy fireside chats with those at the very top of Government.

My constituents in east Hull expect better. They expect, whatever party is in power, that the Government should be run on the principles of honesty, decency and commitment to public service—not government by WhatsApp and billions of pounds of public money dished out to the Tory party’s friends and donors. That is why we cannot allow the Government to mark their own homework through a whitewash review whose findings we know before it has even begun. We need a full parliamentary inquiry to get to the bottom of this scandal—an inquiry with power and teeth that will give taxpayers and the many thousands of people whose livelihoods are at risk because of Greensill’s collapse the explanations and the justice that they fully deserve. Those with nothing to hide would have nothing to fear.

Government Members need to think long and hard about which way to vote today. Will they vote to sweep all this under the carpet in the hope that things will just move on, or will they do the decent thing, put standards in public life in this country before their party’s interest, and vote for transparency and fairness? I sincerely hope that we see some backbone from Government MPs when the Division bell rings.

13:47
John Penrose Portrait John Penrose (Weston-super-Mare) (Con)
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There is widespread consensus across the House that this is a very difficult moment that is causing great concern, but widespread disagreement about how to take things forward. I was greatly struck by a point made by the Chair of the Public Administration and Constitutional Affairs Committee, my hon. Friend the Member for Hazel Grove (Mr Wragg): what is being proposed is something his Committee already has the powers to do, and he stands ready to fill in any gaps that his Committee feels might be left as a result of the announcement of an inquiry which has just been made.

In the light of those two things, I see no reason to support the motion. However, because there is such an important underlying issue and there are such important and central questions about the future of our democracy, and the probity and legitimacy of our system, there are some important points that need to be made. I hope the Minister will address them.

Today, I have put on my website my submission to the inquiry of the Committee on Standards in Public Life; the committee will make it public in due course, so I am not pre-empting anything. My submission contains a series of proposals for how we should improve things around lobbying and much else. The Minister for the Constitution and Devolution said earlier that post-legislative scrutiny work, which I have contributed to, is already going on around the lobbying Act, but I will briefly share some things that I believe could usefully be done to improve that Act. It has many strengths and does an enormous number of important things tremendously well, but it is now seven years old and it is time to review it and move it on. There are three or four things we could usefully do, and should do in any case, quite apart from the current concerns over Greensill.

First, as we have heard from several Members, disclosure of whom Ministers meet and when is tremendously important as the foundation stone of transparency. Such disclosures do not happen fast enough, they are not complete enough, and they are not mutually comprehensible, machine-readable and searchable enough. As a result, it is much, much too difficult to link up who Ministers have met, whom the lobbyists are working for and who is donating money to which political party. Those three things should be immediately understandable, immediately searchable and immediately identifiable in order for the system to work well—that is not the case at the moment. This is a sensible change and one we should introduce immediately.

The second thing we should do is capture more people in those disclosures. At the moment, they apply to Ministers, rightly, and to senior civil servants—permanent secretaries and the like. However, there are other people whose opinions matter and who will seek to be influenced by lobbyists no matter who is doing the lobbying. Such people include not only political advisers—Spads—but a slew of other civil servants below the rank of permanent secretary. Their meetings, and the topics, should all be disclosed in the same way.

People will have seen that it is proposed that everybody who is lobbying should be included on the register of consultant lobbyists, but that seems to be overkill, because if someone from Rolls-Royce comes to speak to a Minister, we all know on whose behalf they are lobbying—they are lobbying on behalf of Rolls-Royce. Simply putting them on the register of consultant lobbyists will not improve things, whereas disclosing what they talked about, why they talked about it and any conclusions that were reached would make a huge difference.

Equally, there should be disclosure in respect of foreign agents—people working on behalf of foreign powers who are not part of the diplomatic corps of that country.

My final point relates to the about-to-be-reappointed prime ministerial adviser on special interests. If they had the power to launch independent investigations as well, we would not need debates such as today’s because they would have already opined.

13:51
Ian Lavery Portrait Ian Lavery (Wansbeck) (Lab) [V]
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When David Cameron claimed in 2010 that cronyism was the

“next big scandal waiting to happen”,

I am not sure any of us thought he was quite so committed to making sure his predictions would come so true, yet the Greensill scandal emits a horrid stench, and Mr Cameron and all others involved must be held accountable. It is only a drop in the ocean in what is a tidal wave of cronyism and corruption among the upper echelons of this Conservative Government. This is not just about “dodgy Dave”, as the former Member for Bolsover rightly dubbed him; it is about the cancer of cronyism that has spread through the top level of the Conservative Government, as can be seen from the Arcuri affair, the covid-19 contracts, and now the parasitic lobbying that includes a former Tory Prime Minister. I must say this is hardly a red herring.

Over the past year, there has been a tale of two pandemics in this country, one involving the elites, which have siphoned off billions of hard-earned taxpayers’ money, and one involving the millions of others who have been shielding or working as key workers on the frontline of the pandemic, all to protect the health of this country, or who have lost their job. How did those elites get such a cosy seat at the table? Certainly not as a result of hard work and sacrifice, such as that we have seen from those key workers. The destiny of those elites was written as they walked the halls of their public schools and elite social clubs, making murky connections that propelled them into snug lobbying jobs or even safe Tory seats.

Contrast that with the position of a constituent of mine attending an underfunded local school with huge class sizes and becoming a key worker, toiling each day for an honest wage to keep the country on its feet, only to see their taxes being spent on contracts given to dodgy companies, with no competitive tendering. The very people who have been hit hardest by the pandemic—those who are being put on furlough—are expected to work twice as hard, while the avaricious public school clique see the opportunity to multiply their wealth further.

Today, hundreds of British Gas workers will lose their jobs for standing against a cruel “fire and rehire” scheme imposed by their employers, who seek to lower their wages and to worsen terms and conditions in midst of the global crisis, while those with close ties to senior members of the Conservative Government can simply pick up the phone, call a “jobs for the boys” hotline and bag a million-pound contract, despite having no qualifications so to do.

There are, quite simply, two realities being played out here in modern Britain—one for the elite and one for the rest of us. To get through this pandemic, the people of the country have pulled together and made huge sacrifices to see each other through, yet this Government are not in it together with our constituents. They are more concerned with protecting their lobbying clients’ financial interests than they are with the public health of this country. As a result, they—to put it bluntly—have a lot to answer for.

I support the motion because it is all about transparency. It is about probity, accountability, clarity, honesty, decency, integrity, fairness and equality. There are two sides to this country, and everyone must simply ask themselves, whose side are you on?

13:55
Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (Ind) [V]
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Politics and big money are never happy bedfellows. The first question any politician should ask if they are offered financial incentives or hospitality is, what do the providers want in return?

Legislation in this field has always failed to make any meaningful impact on political corruption. The most recent attempt—the 2014 transparency of lobbying Bill, during the premiership of David Cameron—attempted to provide a narrative of propriety to decontaminate the Tory brand, but in reality, he had a hidden agenda, which was to neuter the trade union movement. I pointed out at the time that those measures would not have dealt with any of the great Westminster corruption scandals of recent decades—donations for dinners, cash for honours, cash for questions, and the ministerial cab for hire of the last Labour Government.

Half a decade on, Mr Cameron is himself embroiled in the latest great Westminster corruption scandal. These revelations raise all sorts of questions, yet again, about the incestuous and damaging relationship between big money and Westminster politics. I give a guarded welcome to the British Government’s decision to launch an inquiry on this case, but I fear the Prime Minister’s true intentions are to kick the issue into the long grass beyond the forthcoming elections, and to settle a personal score against Mr Cameron.

Any serious inquiry would surely have the wider remit of looking at how Ministers have handled all covid contracts, including investigating the National Audit Office’s concerns about the VIP list of suppliers that are 10 times more likely to get a contract. In that regard, I will support the Labour motion.

If Westminster is serious about addressing its tarnished reputation, there must be deliberate moves to reduce the cost of politics. The Americanisation of British politics has resulted in an expenditure arms race. Over recent decades, political parties have had to spend more of their time raising money to compete. If we are serious about addressing corruption in politics, spending caps must be introduced for political parties, drastically reducing the cost of electioneering, with an added bonus of creating a more level playing field and a more plural politics. A wiser person than me once said:

“Nothing in life is free, you always pay in the end.”

I fully support calls to expand the statutory register of lobbyists to include those working in-house, but the UK Government must go further. The Register of Members’ Financial Interests is an important innovation, but the onus is on electors proactively to search for information that should be readily available to them. New protocols could include requirements for BBC Parliament and Parliament Live TV to list details of Members’ interests on screen when they are making contributions. If there is no impropriety, why would anyone object? With slight mischievousness, I would even go as far as to recommend that Members should be required to emblazon their private benefactors on their clothing in the same way that snooker players proudly promote their sponsors on their waistcoats. I suspect such visual exposure might encourage restraint among those who use their role in the House to harvest coin.

I have long believed that Westminster is beyond repair. The time has come for us in Wales to forge a different path, where we can create an honest political discourse based on the noble aspirations of public service as opposed to the promotion of personal enrichment.

14:00
Huw Merriman Portrait Huw Merriman (Bexhill and Battle) (Con)
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Following the suggestion from the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards) that like snooker players—I perhaps look like one right now—we should emblazon ourselves with any sponsors we might have, I am minded to say that I have absolutely nothing to declare in that regard, having never received a penny apart from my very generous MP’s salary since I have been in this place.

With the local elections coming up in May, I am concerned that we are in danger of playing party politics in this Chamber. I should not be naive; that is what this Chamber is always about. At the start of this week, this Chamber was at its very best, and, of course, that is why I am dressed as I am. We referenced the Duke of Edinburgh and warmly referenced how popular he was because he was direct, loyal and non-partisan, and here we are today talking about election leaflets and playing party politics.

Of course, there is a serious point behind this, and I want to make a point in defence of the Select Committee process. I am very fortunate to be Chair of a Select Committee, and I note, as I sit alongside the Chair of the Public Administration and Constitutional Affairs Committee, that we will be in very safe hands in any inquiries that are needed or for any changes that have to be recommended.

It is not very well known that Select Committees can now group together. We have done so for the COP26 scrutiny, so we have Select Committee Chairs all the way across. We have it through the Liaison Committee. We can also move members of one Committee to another, so if there is a great requirement to review across Government Departments or for Parliament to look at an issue, it can be done as the structure is in place.

The Select Committee on Transport met this morning, and it would be fair to say that for even the Under-Secretary of State for Transport, the hon. Member for Witney (Robert Courts), who was appearing before us, it would have been impossible to tell which party each MP came from, because we all united as one in wanting a particular approach. To make a Select Committee more partisan with a sole aim would be poisonous and would diminish the role of Select Committees in scrutinising Government, which, having always been a Back Bencher, I absolutely support.

It is not very political of me— it is perhaps a bit naive—but I am also a firm believer in loyalty. I touched on this at the start of my speech. I first became an MP in 2015 under David Cameron. I found him to be an inspired leader, a genuine man and someone who really wanted the best for his country and for his party. He modernised our party. He took the country from the very desperate economic position that he had inherited in 2010 and worked across the divide with the Liberal Democrats to try to make something better. He succeeded, as we see if we look at the 1,000 jobs a day that he created. There was much he did well, and he was a genuine, sincere and very public spirited man. It may be naive of me to stand up and say this as a politician, because we tend to bury those who go before us, but sometimes in life, loyalty—remembering virtues and trying not to bury those who are no longer here—is a good thing. That would serve us much better as a House than what others seek to do.

14:03
Claire Coutinho Portrait Claire Coutinho (East Surrey) (Con) [V]
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I welcome the independent inquiry and the Government’s broader work on modernising procurement. I do not believe that anyone can say that a new Committee is needed, as proposed by the Opposition today, when an independent inquiry is under way and when many Committees, including the Committee on Standards in Public Life, serve to scrutinise the work of former officials and Ministers. The point was well made by the Chairman of the Liaison Committee, my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin), and by my hon. Friend the Member for Hazel Grove (Mr Wragg).

The Opposition’s proposition today is not about securing an independent and legally minded expert in procurement to look into the matter. We already have that, and we should hear what he has to say. It is, I am afraid, a rather cynical and desperate attempt to prejudge an inquiry that is happening and take the opportunity to make a party political attack. That is why the hon. Member for Leeds West (Rachel Reeves) persistently mentioned the ’90s in her opening remarks, but nothing about the period between 1997 and 2009. That, of course, was when we saw a long list of allegations about the Labour party—from Ecclestone, to cash for honours and the moniker of “Tony’s cronies” when it came to public appointments. It is also why, when the hon. Lady put forward a list of supposedly crony contacts, she included a Labour party donor. When she very much wanted us to secure PPE contracts, those contacts included a football agent company, an historical clothing company and a legal practice.

The Labour party does not want to wait for the facts but will continue with what I think is a rather contemptible policy of smearing people in public life, with scant regard for the truth or their reputations afterwards. That is what the Opposition did with Kate Bingham, until it turned out that she had done an outstanding job in procuring vaccines for this country—a job that she was not paid for, I might add. I am afraid that she has received no apologies from the Labour party for its smears when it tried to label her as a crony—and, indeed, no thanks for her work on the vaccine taskforce. Labour did the same with the race report; it has yet to criticise the Labour MP who likened those educational experts and public servants, who were trying to put forward solutions to improve the inequality situation in this country, to the Ku Klux Klan. It is desperate and quite cynical.

As people have rightly said today, this is a serious matter and it is right that it is being looked into. We should use the existing channels to get to the facts.

14:06
Sarah Olney Portrait Sarah Olney (Richmond Park) (LD)
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The overriding impression that one has received from following every new revelation in the Greensill case is of people making up the rules to suit themselves. First, we had David Cameron, the former Prime Minister, who passed an anti-lobbying Bill while he was in power, which conveniently did not cover the kind of lobbying that he himself then went on to do. Now we find that the Cabinet Office did not require its chief procurement officer to declare his part-time role advising a commercial company that wanted to bid for public contracts, and then—incredibly—did not require him to consult the Advisory Committee on Business Appointments about a full-time role with the same company when he left the civil service, because he was already working there.

As a member of the Public Accounts Committee, I have attended a number of inquiries on the Government’s approach to the pandemic. I have heard time and again about the necessity of circumventing the rules to deliver at speed during the last 12 months. I broadly accept that principle, but again we see that the people benefiting financially from these emergency provisions are close associates of those who decided that the rules could be circumvented.

There often seems to be an aversion to setting rules in our political life: a preference for assuming that a combination of personal honour and political pressure— or “moral and reputational pressure”, to quote the Minister—is sufficient to keep people in line. There is a debate longer than my four minutes will allow to be had about whether our political culture has fundamentally changed to the extent that these principles can no longer be regarded as sufficient. But suffice it to say that the lack of a robust system of rules to which everyone is subjected and for which the penalties are more than just damage to political reputation is a major weakness of our constitution. If there are no rules, or if the rules are made and remade and applied by those in power, there are no effective checks or balances on that power. If the rules can be easily changed or subverted to suit the circumstances, they are not rules and they have no discernible function.

For my own part, I think we are seeing a slippage of standards in public life. Our current Prime Minister has been sacked from two previous jobs for lying, and a former Prime Minister has been hawking his Government connections for personal enrichment. I believe that the behaviour of our elected Ministers has impacted our appointed officials’ perception of what is acceptable.

Doubtless the Government will respond by saying that Opposition parties have indulged in the same behaviour and that everyone is as bad as everyone else—and actually, that could well be true. At the heart of the Government and parliamentary machinery are human beings, and not bad human beings for the most part. But any human being asked to define how conduct should be judged will naturally seek to define that conduct in terms that favour their own actions and judgment. So let us not argue that everyone is as bad as everyone else and that the only arbiter should be the voter—or, if we do, let us accept that we are actually making the argument for a more robust system of rules. If everyone is dishonest, how can the voters use their votes to distinguish between us? If they cannot use their votes in that way, how can they be an effective check against self-interested behaviour?

I support the Labour party’s call for a Select Committee to investigate how Greensill became embedded to the extent that it did and to consider how the rules should be strengthened. Liberal Democrats supported the moves to bring in a lobbying register and rules to register ministerial meetings when we were in government, and we have previously tried to amend companies legislation to require annual company spends on lobbying of up to £1,000 to be declared in annual accounts. We will consider any recommendations carefully and back anything that can improve the current system.

14:10
Ian Liddell-Grainger Portrait Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con) [V]
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I am delighted to take part in this debate. This debate was called by the Opposition, I suppose one could say, to smear the Government by attacking a former Prime Minister. Lobbying certainly does need a proper investigation and that is why I back the Government’s plan for a full inquiry, but this afternoon I must tell the House a more disturbing true story about lobbying.

I represent a part of Somerset. In Somerset, the county council started lobbying the Government for a big change: it wanted to become a unitary council. It invested millions of pounds to run a campaign and found a receptive ear in the Secretary of State for Housing, Communities and Local Government. Of course, my right hon. Friend may have embarrassing experience of being lobbied, but I doubt Somerset County Council would ever stoop to taking money—it is not very good at hanging on to what it has got! One bit of lobbying led quickly to the Government’s decision to consider the idea for a Somerset unitary.

Somerset County Council reckoned it would be a shoe-in. More fool them, I am afraid, because it did not have the widespread support it claimed. The four district councils quickly devised an alternative and infinitely better plan for reform, which they submitted, quite rightly, and lobbied the Secretary of State. The next stage was meant to be a full consultation to discover if either proposal could command “A good deal of local support”. This pathetic and meaningless phrase can be interpreted by Ministers however they or anyone else chooses. The method for measuring local support was decided by my right hon. Friend. He chose an equally pathetic system of online questioning to lobby the local people. People can fill it in from anywhere in the world, with no requirement for the people who live in Somerset to have preference. You can legally respond to it from Beijing or Moscow, as probably they regularly do. I am sorry to say that this is a confidence trick.

The Secretary of State also asked the views of a very limited number of organisations in Somerset and lobbied them. The districts begged him to extend the list in order to be fair. Nothing, of course, happened. Therefore, the four district councils decided to let him know that they would arrange a referendum, with strict rules of participation to provide a meaningful addition to his consultation and lobbying. Instead of gracefully accepting this sensible suggestion, the Secretary of State has, I am afraid, thrown a wobbly. He has written to all four district council leaders rubbishing their idea and threatening them—threatening them, Madam Deputy Speaker—with the law! I have never read such a cold response. I am sorry, but it is not going to wash.

The Secretary of State has turned lobbying on its head. He appears to be using a big stick for those who have different ideas on upholding democracy and fairness. I will tell him straight and publicly right now that his actions should, must and will fail. The district councils represent all the parties we know—except, obviously, the SNP—and they are united against this. The referendum will go ahead and if he uses the law to stop it, then I am afraid lobbying has got a very much more sinister and nasty feel to it in this case. I urge anybody in Somerset to lobby to make sure that we have the voice of the people for the democracy they deserve. So, Madam Deputy Speaker, I say to the Secretary of State: see you in court, or come up and sue me some time.

14:13
Angela Eagle Portrait Dame Angela Eagle (Wallasey) (Lab) [V]
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After 11 years in power, this Tory Government have ended up like all Tory Governments end up—mired in sleaze. What is different about the scandal confronting us today is the sheer scale of the larceny being practised on the public purse by the donors, friends and beneficiaries of the Tory party.

The Greensill scandal, which is egregious and shocking, is only the tip of a very large iceberg. We have seen £2 billion of pandemic procurement contracts given without competition to companies that have donated money directly to the Tory party; VIP procurement lines specifically designed for Tory mates and, if you are the Health Secretary, your local pub landlord; a clutch of senior Government appointments awarded directly without competition to relatives of serving Tory Ministers; and now the announcement of an inquiry laughably described as independent into the Greensill scandal, led by a man who is the son of a former Tory Cabinet Minister and sits on the board of the Department for Business, Energy and Industrial Strategy, which is responsible for the British Business Bank—it was the British Business Bank that gave Greensill Capital access to hundreds of millions of pounds of taxpayers’ money.

This is just not good enough. We urgently need an inquiry that has the power to call for witnesses and papers, take evidence in public and publish its findings. There are many questions we need answers to. Why was David Cameron allowed by serving Cabinet Ministers to lobby so ferociously in his own personal financial interest? Why was Greensill given such untrammelled access to senior civil servants at the height of the pandemic? How did the Chancellor push the team to be more accommodating to Greensill Capital?

Why was Greensill—an unregulated shadow bank with a toxic business model—allowed access to the coronavirus large business interruption loan scheme? Was that pushed by Ministers, senior bank officials or civil servants? If so, at whose request? Did Greensill then exceed its lending authority and put even more taxpayers’ money at risk? Why was Lex Greensill allowed to roam so freely across Whitehall, pushing his financial chicanery? And why on earth was the Government’s senior procurement official, responsible for £40 billion of public contracts, allowed by the Cabinet Office to work part time for Greensill while he was still in the civil service?

The stench is growing. Only the disinfectant of a fully transparent and independent inquiry will deal with it, and that is what the motion before us would create. If Tory Members vote the motion down, as they have the power to do, they should know that they will be voting to try to brush this scandal under the carpet and treating British taxpayers with contempt.

14:17
Craig Williams Portrait Craig Williams (Montgomeryshire) (Con)
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It is a privilege to speak in this debate. After the opening speech by the hon. Member for Leeds West (Rachel Reeves), I was tempted to go straight into a political attack and point out the failures of the Welsh Labour Government, such as not having a lobbying register after 22 years, or list the public bodies in Wales that are led by former Labour Assembly Members, former Labour MPs’ partners or former special advisers. But that will add nothing to public discourse, and it will not help this issue.

I was quite moved by what the Chairman of the Public Administration and Constitutional Affairs Committee, my hon. Friend the Member for Hazel Grove (Mr Wragg), said about his Select Committee. I can attest, as I am sure Members on both sides of the House can, that he will do no favours for the Whips or the Government, and that it is a robust Select Committee. As the Chairman of the Transport Committee, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), said, our Select Committees in this House are robust. The membership is beyond reproach. I jested with my hon. Friend the Member for Hazel Grove about whether this debate was a vote of no confidence in him, but the debate really does not add anything.

My hon. Friend the Member for Weston-super-Mare (John Penrose) raised three pertinent questions, and there are some serious questions around this issue. I welcome the inquiry and the Minister’s tone. I do not want to disparage the many former Labour Assembly Members who chair health boards or are on the sports body. They have a lot to give to public life. Many of them are doing an excellent job. I welcome their positions after frontline politics and I support a lot of them, but in this debate, it is very tempting for people on both sides to start making churlish comments about cronyism, and we have heard other Members say, “Just because of somebody’s political affiliation.” I would of course love to see more former Conservatives appointed to public bodies in Wales. Perhaps not as many Conservatives are appointed as Labour—Labour has been governing for 22 years, so I am sure their contact books make it a lot easier to contact friends—but that does not take anything away from what they are doing in public life in Wales.

Before I sit down, I will echo what my hon. Friend the Member for Hazel Grove, the Chairman of the Public Administration and Constitutional Affairs Committee, said. This should not be about looking at our Select Committee process and saying that it is not independent enough; that will do nothing for it. We should get behind this inquiry. If Members are unhappy with the inquiry, they can go through the Select Committees that are already in place and have the powers. We all have Members on those Select Committees, and there are already avenues open to the parties in this House to take up these serious concerns.

I will conclude and give the final minute back.

14:20
Richard Burgon Portrait Richard Burgon (Leeds East) (Lab) [V]
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The scandal of the former Prime Minister lobbying the Government for his new boss has rightly captured the headlines. I must say that it is really a bit rich for some Tory MPs to attempt to ride their high horse in this debate, because the rot runs much deeper. The whole system is rigged in the interests of the super-rich, and the super-rich spend a lot of money making sure that it stays that way. In the Tory party, they have the perfect vehicle for that.

The pandemic has cast more light on some very questionable practices. While there are 37p benefit increases, wage cuts for millions of public sector workers and tax rises for millions, some, on the other hand, have had a very good pandemic indeed. Vast sums have been handed over to Serco and the like—funds that should have gone to our national health service. Companies with connections to top Tories have been 10 times more likely to get covid contracts than those without such connections. The Health Secretary’s mate, the landlord of his former local pub, won a covid test contract worth a small fortune. I could go on. Instead, I will quote the words of the former Government chief scientist, David King, who said that the process of distributing public money to private companies during this pandemic “really smells of corruption”.

But it is not just in a crisis that the Conservatives look to enrich the super-rich. There was the Housing Minister acting unlawfully over a £1 billion property deal that helped the developer to avoid tens of millions in local council charges. He got his approval from the Conservative Government and, two weeks later, donated £12,000 to the Conservative party. What about the Tory MPs raking in small fortunes on top of their salary—as if being an MP is not a full-time job—making many thousands of pounds doing private consultancy work in a second job during this pandemic? It is shameful and, frankly, it should be banned.

One in three of the UK’s billionaires have bankrolled the Conservative party since 2005, and boy, do they get their money’s worth! There have been tens of billions of pounds in corporate giveaways for the rich from the Conservative party. I will end on the words of David Cameron—himself something of an authority on these matters:

“We all know how it works. The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisers for hire, helping big business find the right way to get its way.”

The stench of corruption has grown ever stronger through this crisis and people across the country are quite rightly fed up to the back teeth of it. People are sick of it. It needs to be stamped out before it does untold damage to our democracy.

14:24
Julie Marson Portrait Julie Marson (Hertford and Stortford) (Con) [V]
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It is interesting to follow the hon. Member for Leeds East (Richard Burgon). In talking about a serious issue with serious implications, he perhaps illustrates the problem for his party, particularly when he talks about the high horse. I, for one, find it impossible to take lectures from him or from his party. Labour Members have either served or evangelised a Labour leader who was famously a “pretty straight kinda guy”, but who exempted Bernie Ecclestone’s Formula 1 from a tobacco advertising ban after a tidy £1 million donation and has had, shall we say, some pretty profitable gigs since leaving office. Or they wanted for Prime Minister the right hon. Member for Islington North (Jeremy Corbyn), who was present but not involved in laying wreaths for Munich terrorists and who presided over an unlawfully antisemitic party. That is without mentioning Labour’s cronyism—union donations—and the fact that the shadow Defence Secretary lobbied for Greensill. As Ted Hastings said, “You’ve got a nerve, fella.”

On the substance of the motion, I absolutely commend the remarks of my hon. Friend the Minister for the Constitution and Devolution, who detailed the action the Government are taking, and of my hon. Friend the Member for Hazel Grove (Mr Wragg), who detailed the activities of his Select Committee.

In response to serious questions on this issue, the Government are acting, and have acted quickly. They are going above and beyond, for example, the information required under the Freedom of Information Act. I also welcome their commissioning of the independent Boardman review, which will thoroughly and transparently investigate the issues around Greensill. That is in addition to the British Business Bank’s review of Greensill’s compliance with the coronavirus large business interruption loan scheme. It is really regrettable that Labour Members seek to disparage and discredit that independent review. I welcome the fact that the Government have been clear that either Greensill’s requests were turned down or that no Ministers were involved in gaining access to coronavirus support loans.

The Government are answering legitimate questions and legitimate concerns and it is entirely right and proper for them to be transparent and accountable; we all want that. They are giving a serious response to serious questions and, at the same time, they are getting on with the serious job of supporting people and businesses through a global pandemic.

14:26
Karin Smyth Portrait Karin Smyth (Bristol South) (Lab) [V]
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The Greensill debacle is, in the truest sense of the word, unbelievable. It is unbelievable that David Cameron was able to lobby with such impunity, unbelievable that Cabinet Ministers were able to engage so freely with him and unbelievable that millions upon millions of public money was bound up in contracts connected with more than one Cameron client. Most of all it is unbelievable that, at this point in time, no actual rules were broken. That speaks to a system that has lost its way, a former Prime Minister who has lost his moral compass, and a general public who have every right to lose what faith they had in this Government. From the top to the bottom, those in government are thumbing their noses at the people and the institutions that they are meant to serve, all the while enabled and protected by the rules, regulations and legislation that they brought in. Instead of accountability —the once vaunted “disinfectant of sunlight”—we have deals done over tawdry text messages in darkened bars and, bizarrely, in front of those lavish lights and fires. Due process has been damned.

I am proud to have worked for the public service and I am old enough to remember the last lot of sleaze from the Tory Government. I am a firm supporter of the Nolan principles—selflessness, integrity, objectivity, accountability, openness, honesty and leadership. The Nolan principles apply to every public office holder and we do have thousands of decent, public-minded people across Government and the public and private sector who wish to see this country do better, and that is our task today. What we are learning goes too wide to be confined to a quick review by the Prime Minister’s nominee. For example, the issues around the NHS do require much more sunlight. Well before the pandemic, in 2018, we had the episode with Babylon. We have had a Secretary of State who clearly did not see the NHS and its public institutions as doing well enough and started to skirt the process with the appointment of Dido Harding, the totally opaque plans for Public Health England, and a new superbody—again, about which we know little—to be headed by the Prime Minister’s friend. It is time to call a halt to this.

We have also seen Mr Greensill’s company get into the NHS—to use its name and trusted reputation to allow staff who cannot wait for payday to get paid earlier. Frankly, if the Secretary of State supported the NHS and paid its staff properly, Mr Greensill would not have yet another money-making scheme on the back of those NHS staff.

I am a proud member of the Public Administration and Constitutional Affairs Committee, and I commend the comments made earlier by our Chair, the hon. Member for Hazel Grove (Mr Wragg). We are ready to serve. We have just completed three covid-19 reports, and all three reports highlight the fact that the governance arrangements have not been clear, and that senior accountability has not been clear. They are damning reports. There is a lack of clarity over the role of the Cabinet Office, covid committees, and the quad in decision making over the covid crisis. There is a lack of clarity over ministerial responsibility, particularly the role of the Chancellor of the Duchy of Lancaster. The scrutiny of the covid inquiry also highlighted issues with inter- governmental relations across the devolved Administrations.

On top of the dreadful loss of life, damage to our economy, and so much of our lives disrupted, people have made great sacrifices. We on the Committee are clear that any review of the Cabinet Office response to covid-19 should include examination of the governance arrangements, including Cobra, the C-19 daily meetings, and the quad and Cabinet committees. It is opaque. We on the Committee have struggled to get the appropriate Cabinet Minister in front of us, and to respond properly, but we will persevere.

14:30
Mark Fletcher Portrait Mark Fletcher (Bolsover) (Con)
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As we operate in these covid times, we have an unusual setup, and we watch many Members from afar. Those of us who have dreamed of sitting on these green Benches, and the responsibility and honour that we have to live by and uphold when we sit on them, may wonder whether some of the contributions that have come from our screens today would have been made if the people making them had been in this room. It feels to me like some of the things I have witnessed on those screens while I have been sitting here have been horribly misjudged.

I think there is general agreement that some of the headlines in recent weeks have raised eyebrows, and that there is a level of concern that is shared across the House, but unfortunately, the Opposition and, in particular, the Members who I have been watching on the screens have decided to run with this in a way that is deeply unhelpful and does not help to solve any of the problems that they are highlighting. I therefore fear that this is much more about party political posturing than it is about clearing up the system, and I urge Opposition Front Benchers to consider that, and to think of ways in which we can work together to improve this system.

I listened to the tremendous contributions from my hon. Friends the Members for Montgomeryshire (Craig Williams) and for Weston-super-Mare (John Penrose). I thought that their speeches had an adult tone and gave something that was deeply needed, which was perspective. I commend both of them, but I commend even more my hon. Friend the Member for Hazel Grove (Mr Wragg), who I thought answered the Opposition’s point rather succinctly and did the Minister’s job for her by saying that what the Opposition are calling for in this motion already exists. The concerns that have been raised are also being independently investigated, and I think that that is what the public would expect. Again, I come back to my fear that what we are debating today is merely party political posturing, and we should be doing better than that.

I would add a note of caution. We as MPs are exposed to an awful lot of voices within our constituency, and that is right: we meet many charities, many individuals and constituents, many councillors, and yes, many businesses. Those conversations help us to know more, to empathise and to understand, and that is an incredibly important part of our job. There is always a concern, when this sort of series of events comes to the surface, that the first thing we should do is stop doing that: stop meeting people, stop hearing other concerns, and stop hearing the concerns of business. That would be a very unfortunate development.

I have worked with partners across the east midlands on our freeport bid, and one of the strengths of that bid has been the fact that we have had academics, businesses, our local enterprise partnership, and our county councils and MPs working together in unison. That sort of behaviour is what is needed to effect change in areas such as the east midlands, and we should not end up in a situation in which we put up too many barriers. I agree that we should have transparency, but not barriers, and it is important that we continue to have conversations with all groups so that we can make ourselves better informed. That is even more true if we happen to be in a position that does not allow us to meet with our constituents more freely, as Ministers are.

Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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I am attempting to get everybody in, but that does mean that after the next speaker, I will reduce the time limit to three minutes.

14:34
Sam Tarry Portrait Sam Tarry (Ilford South) (Lab)
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We have heard many contributions from across this House today and, frankly, I am disappointed that what we have heard makes an absolute mockery of democracy. The general public out there will be seeing not Parliament and government at their best but a revolving door of sleaze. As we have seen time and again, the Government have been rotten in their dealings. Every few weeks, a new shady deal emerges that reeks of cronyism and corruption.

Let us be clear what we are talking about. In the past 12 months alone, we have seen what this Government truly stand for: back-channel conversations, and multibillion- pound contracts awarded, with alarming regularity, to chums in the City with little or no scrutiny.

Let us start with the Health Secretary, who handed out a £30-million contract to his former neighbour and pub landlord, Alex Bourne—a man with no prior experience of producing medical supplies and whose company, Hinpack, was at the time producing plastic cups and takeaway boxes for the catering industry. Despite that, the Health Secretary saw fit to issue a multimillion-pound contract and put our nation’s health in the hands of that company by allowing it to produce millions of vials for the NHS covid test. This did not come about through a formal tender and procurement process. I remind the House that all that was required, by the Health Secretary’s own admission, was a WhatsApp message.

Let us move on to the Housing Secretary, who last summer admitted an apparent bias in reversing a planning decision against Tory donor Richard Desmond’s proposed Westferry Printworks housing development, overruling local officials and saving the property developer an estimated £45 million. Mr Desmond later donated—surprise, surprise—£12,000 to the Conservative party, just weeks after sitting next to the Housing Secretary at a Tory fundraiser.

Then there is the Prime Minister himself, who is also up to his eyeballs in the murky world of lobbying. His former lover Jennifer Arcuri’s firm, Innotech, was awarded £26,000 of taxpayers’ money while he was Mayor of London. Unsurprisingly, that scandal was also whitewashed by this Government.

And now we have former Prime Minister David Cameron, who knew very well what he was doing when he started lobbying for Greensill Capital. We heard from my hon. Friend the Member for Leeds East (Richard Burgon) about David Cameron’s full comments, but we must also remind ourselves that he said that exactly this type of thing was the next big scandal waiting to happen.

Despite that, Mr Cameron saw fit to conveniently forget his own advice when he stood to make £60 million after setting up a cosy drink with the Health Secretary, sending a string of private messages to the Chancellor and, in the process, helping those two Cabinet members commit at least three possible breaches of the ministerial code. It seems absolutely right that the former Member for Bolsover, who is sadly missed in this House, called David Cameron “dodgy Dave” in 2016. He was dodgy then and is dodgy now.

None of this will be taken seriously by our current Prime Minister, who just days ago revealed what he really thinks about the role of big business helping to oil the wheels of this Government, when he said: “The reason we have the vaccine success is because of capitalism, because of greed”. Government Members really are the Gordon Gekkos of the green Benches, who bleed to their very core that greed is good. As a former Conservative Minister told The Guardian:

“A little bit of money goes a long way.”

It is time for that culture to stop.

There now needs to be a Parliament-led, cross-party inquiry, with a new Select Committee formed to investigate the Greensill lobbying scandal, and it should have the power to compel witnesses to give evidence and restore what we need in this country, which is integrity to our democracy, and an end to the grip of corporate spivs and spinners once and for all.

14:38
Lee Rowley Portrait Lee Rowley (North East Derbyshire) (Con)
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Thank you for the opportunity to speak, Madam Deputy Speaker, although I am not sure exactly how to follow that. I remind the hon. Member for Ilford South (Sam Tarry) that I served on the Benches with both the current Member for Bolsover and the previous one, and I will take the current one—my hon. Friend the Member for Bolsover (Mark Fletcher)—any day, as, most importantly, will the residents of Bolsover, who determined that the 50-year tenure of the previous incumbent did not deliver the change they needed or the benefits of what he could have done since 1970.

The speech of my hon. Friend the Member for Bolsover addressed some difficult issues constructively and appropriately—something that we have struggled to see from some Labour Members today. I am disappointed in that, because I have worked with Labour Members over my two terms in this place and we have had some constructive and useful discussions about such issues, particularly on the Public Accounts Committee, on which I previously served.

I very much welcome what the Government are doing. If there is an issue, a challenge or a problem here, let us uncover it, work through it and learn from it. As the Minister said at the beginning of the debate, part of the reason we are even here to talk about this matter today is that the processes have highlighted some of these points. There is a point about due process, because Labour Members stand here today on a motion that states explicitly that they seek to understand this problem and potential issues in more detail, yet every single Labour Back-Bencher who has risen in the debate so far has made a speech that bears absolutely no relation to that motion, because they have already decided. They are the judge, jury and executioner; they know better than the inquiry that they are about to vote for, which is already being covered by a lot of other things that the Government are doing and the independent process that they have set up.

On a slightly broader point, I issue a note of caution, as has my hon. Friend the Member for Bolsover. As I have said, if there is an issue, let us uncover it and learn from it. But this should not be an excuse to say that all business is bad and to go on about Gordon Gekko and all that kind of nonsense, which is what we have just heard from north London. It should also not be an excuse for the hon. Member for Leeds East (Richard Burgon)—I can almost set my watch by him—to come along and tell us that business cannot achieve anything.

On the Public Accounts Committee, I have seen that there is a huge amount of experience and skills that we need from the business community. We need to work together better with business. I have seen where it has not worked and where there have been challenges, but I have also seen the benefit that business brings to our country, to this place and fundamentally to our society—to address the point made by the hon. Member for Leeds West (Rachel Reeves). Yes, let us find where the problems are, but let us not do what we have heard from the Opposition today; it is not an appropriate way of solving these issues.

14:42
Chris Clarkson Portrait Chris Clarkson (Heywood and Middleton) (Con)
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It is a pleasure to follow my hon. Friend the Member for North East Derbyshire (Lee Rowley).

I welcome the announcement of the review into Greensill Capital and its links to the former Prime Minister and civil servants. It is absolutely the right way forward to address legitimate concerns about lobbying and this firm’s interaction with the Government. I also welcome the appointment of Nigel Boardman—an independent legal expert with extensive experience in investigating Government procurement—to conduct this review. I thank my hon. Friend the Minister for making it clear that the review will have full access to all the necessary documentation surrounding supply chain finance and full access to key decision makers during the process. For that reason, I have to say from the outset that I find the Opposition’s proposals today both troubling and typically opportunistic.

Important issues around standards and ethics in public life should not be subject to political committees packed with Labour MPs playing sixth-form politics. It is disappointing that the Opposition seem more interested in scoring political points than ensuring that Government engagement with business, charities and other organisations is conducted in an open and transparent way. There is very little point in replicating the work of the Public Administration and Constitutional Affairs Committee, chaired by my hon. Friend the Member for Hazel Grove (Mr Wragg), which already has the mechanisms available to bring this issue to light. The plans put forward by the Opposition today are yet more tawdry politicking, rather than a genuine desire to improve standards in public life; I will not be supporting the motion.

It is troubling that the Opposition seem to be pre-empting the findings of the review, particularly as they spent 13 years in government and did not once act on concerns raised about lobbying. Indeed, they even voted against the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014, which required consultant lobbyists to register with a watchdog and placed restrictions on third-party campaigning groups; that is despite the hon. Member for Leeds West (Rachel Reeves) demanding that the legislation be strengthened this morning on her tour of the studios—more positions than the “Kama Sutra”, Madam Deputy Speaker.

Lastly, I want to acknowledge what the Prime Minister said—that lessons must be learnt from this episode. In this House there are politicians from all political parties who, when they leave the House, will still want to contribute to public life; and they should be able to do so, as many of them have much to contribute, whether it is sitting on the courts of our great academic institutes, serving on boards of charities or, indeed, entering into businesses, either in an executive or non-executive capacity. The vast majority do this with the best of intentions, abiding by the rules on lobbying and engaging properly with the Advisory Committee on Business Appointments.

The Greensill affair is deeply disappointing, not least for those of us who admire the former Prime Minister and his work, but we should now focus on learning lessons from this, not teaching them.

00:02
Catherine West Portrait Catherine West (Hornsey and Wood Green) (Lab) [V]
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It is a pleasure to contribute to this debate after the hon. Member for Heywood and Middleton (Chris Clarkson). He described elements of the debate as sixth-form politics, but I do not believe that is the case; I think this is a very serious matter. I hope that he, and all non-Government Members, will see their role in this House as extremely important in holding the Executive to account. Whether they are majority-party Members or Opposition Members, every single Member in this House plays a key role in holding the Executive to account. Our Executive are very strong and all of us must play our part in holding them to account.

The Greensill sleaze scandal and the “revolving door” influence of the former Prime Minister is the latest in a long line of questionable practices by the Government. In recent days, the former Government chief scientist Sir David King has warned that the Government are operating a chumocracy and a creeping privatisation of the national health service even as we continue in our communities to battle the covid-19 pandemic, day by painful day. There is the deeply concerning decision to hand London GP practices to the US health firm Centene: a decision that has incensed many of my constituents, who are rightly concerned about the quality of their local healthcare. Our constituents deserve better than this. Time after time, it is one rule for them, another rule for everyone else. While Tory donors and former Prime Ministers have privileged access, the Chancellor denies support for others, like my poor constituent who emailed in regarding their livelihood crumbling during lockdown and said that the Greensill sleaze affair

“is an insult to all self employed and freelancers”.

It is clear that the rules are not fit for purpose. Labour’s amendment to the 2014 lobbying Bill would have caught out David Cameron’s Greensill lobbying and would have ensured that any decisions to handle health contracts were made without the stain of cronyism hanging over financial decisions taken by Government. Ministers have been at pains to point to an inquiry into the sleaze scandal, but it only scratches the surface of what should be investigated, ignoring swathes of dealings worth billions of pounds of public money.

We desperately need to remove the stain of cronyism that hangs over the Government. Today, the Institute for Government has described the head of the Crown Commercial Service, or the head of Government buying, working for Greensill as “eyebrow raising”, and has suggested that following the Robert Jenrick affair—the property development referred to earlier in the debate—the “stench of sleaze” will take quite some cleaning up to be dispelled. We need an anti-corruption and anti-cronyism commissioner and an integrity and ethics commission to clean up, and we need urgent change.

00:05
Jackie Doyle-Price Portrait Jackie Doyle-Price (Thurrock) (Con)
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I do not know about anyone else, but when I stood for election to this House and was fortunate enough to be elected, I took very seriously the Oath that I made when I entered here. I stood for Parliament because I wanted to serve the public and do my bit. I did so because I believed in the integrity of this place and I believed in the integrity of hon. Members. I believe that everybody in this place actually wants to do their best for this country and for the British public.

I am very concerned about what we have learned about the Greensill affair over the past week, but I am even more disappointed by the reaction of Labour Members to this, because it does not just reflect on the Conservative party; it reflects on every single one of us. Those of us who care about the political culture of this country—and we all should, given that we have all stood for election to this place and made great sacrifices to do so—should all be working together to address the very real concerns that have been raised with us. When I drove in this morning, there was a sign attached to the railings outside Westminster that said: “Self-serving liars are destroying our nation”. I do not believe that any Member of this House is a self-serving liar.

I say to Labour Members very gently that we have structures in this House to look at these matters. If they had bothered to talk to my hon. Friend the Member for Hazel Grove (Mr Wragg), they would have learned that we have been reaching conclusions on these matters over the past year. We have realised that ACOBA has no teeth. We have realised that Members of this House are held to greater account for transgressions than Ministers who break the ministerial code. The Parliamentary Commissioner for Standards has more teeth. We have been looking at exactly those matters.

Tomorrow, we are having the chairman of ACOBA before us to look at these issues. We are taking our obligations to this House very seriously, so it is very disappointing not only that the Opposition view what we are doing with no confidence, but that they clearly have no confidence in Opposition Members who are members of that Committee either.

On the issue of whether the rules are strong enough, the fact of the matter is that sunlight is the best disinfectant. We all can reach our own conclusions about the behaviour not only of David Cameron, but other former Prime Ministers. Whatever the rules are, and whatever the limits of sanction are, the one thing that David Cameron will be concerned about more than anything else is the damage to his reputation that has been done by this episode. Frankly, that will be with him for a very long time. Let us be clear: we have some of the best standards in western democracies, we can always do better and we will be doing our bit to make sure we address some of these issues.

14:50
Ruth Jones Portrait Ruth Jones (Newport West) (Lab) [V]
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It is a pleasure to follow the hon. Member for Thurrock (Jackie Doyle-Price), who made some valid and genuine points, and I am grateful to her for those. I am also grateful for the opportunity to speak in this debate, but I am mindful of time pressures, so I will be brief.

Many people across Newport West have been in touch with me in recent days in the wake of the revelations of text messages between the right hon. Member for Richmond (Yorks), the Chancellor of the Exchequer, and the former Prime Minister, David Cameron. Truth be told, there is a really bad smell lingering around this Government and something has to give. The Greensill scandal is just the tip of the iceberg of cronyism rife in the Conservative party now. I welcome the speech by my hon. Friend the Member for Leeds West (Rachel Reeves) from the shadow Front Bench and I will be supporting the motion. Simply put, we can stand for nothing less than the establishment of a full, transparent, Parliament-run inquiry into the Greensill scandal.

I say to the Minister that that inquiry must be far more transparent and open than the Boardman investigation announced by the Conservatives this week—an investigation that has all the hallmarks of a cover-up. I do not think we need to dwell too much on the bullying cases associated with the right hon. Member for Witham (Priti Patel), the Home Secretary, or the Russia report, held behind closed doors and resulting in little or no action from the Prime Minister—a Prime Minister missing in action yet again.

It has been clear from the range of people across Newport West who have written to me about this issue that there is much concern in the community. It is also clear that they do not believe the Tories can be trusted to mark their own homework. My constituents are telling me that they believe all politicians are corrupt and that we all have our noses in the trough. That is what they are telling me on the doorstep and it is what they believe. I do not believe it for a moment, but there is a real danger that the poor standards of some reflect badly on all of us here in this place and that is not good. To open up the process for scrutiny, key players in this cronyism scandal, such as David Cameron, the Chancellor, the Health Secretary and the Prime Minister himself, should appear openly in front of Parliament to answer questions at the earliest opportunity. If they have nothing to hide, what is the problem?

The shadow Chancellor, my hon. Friend the Member for Oxford East (Anneliese Dodds), was clear yesterday that it is important to raise, as she did, that hundreds of millions of pounds of public money was put at risk when Greensill was given access to covid loans schemes. As Greensill has collapsed, thousands of jobs in Rotherham, Hartlepool and my hometown of Newport hang in the balance. Those workers and British taxpayers deserve answers.

It is 2021. We cannot sit back and stay quiet as a Government who supposedly represent our country cut corners, send texts and ignore the Nolan principles at every stage. It is time for a change of culture in this place.

14:53
Steve Double Portrait Steve Double (St Austell and Newquay) (Con)
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The revelations and allegations that have come to light in recent days are clearly concerning and raise a number of very serious questions. That is why I welcome the Government’s decision to initiate an independent and wide-ranging inquiry. I was deeply reassured by the comments of my hon. Friend the Member for Hazel Grove (Mr Wragg) about the role that the Committee he chairs will play in these matters. It is clear that, between the two, there will be robust and comprehensive scrutiny of these events.

I believe that that lays bare the true intention behind the motion: to play politics with the issue. When the Government have already initiated a full inquiry, the Opposition want to go further and establish a Committee to duplicate the role of the very capable Committee already in place, in order to grab a few headlines. Let us not forget that in its most recent manifesto the Labour party stated that it would repeal the legislation that was put in place in 2014 to limit the role of lobbyists. That is typical of what we have come to expect from the current Labour party as it turns somersaults to create a few headlines while trashing the reputation of this place.

We should be proud that our nation’s system of government is among the most open and transparent in the world. There are strict rules in place that Ministers follow. Accountability and openness are guiding principles of the ministerial code. That does not mean that things should not be kept under review and amended as appropriate, but I object to the cynical attempts by Opposition Members to constantly trash our country, our democracy and our Parliament. They do it almost with glee—they cannot resist the opportunity to drag down the great institutions of our nation.

Our nation, this Parliament and our system of government are respected around the world. According to Transparency International’s corruption index, the UK is ranked 11th of 180 countries, on a par with countries such as Canada and Australia. We should not settle for 11th—we should aim to be No. 1—but to suggest that our system of government is corrupt to the core, as Opposition Members seek to portray it, is simply wrong and does a disservice to the people of our country. I know that it fits the world view of the far left. We were told that this Labour leadership was new and different, but time and again we see the truth: it is the same old Labour that despises our country and its institutions.

If wrongdoing has gone on in these matters, I am confident that it will be brought to light. The systems are already in place for that. We do not need another Committee. I will not support the motion today.

14:57
Bob Seely Portrait Bob Seely (Isle of Wight) (Con)
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I agree with much of what my hon. Friends the Members for St Austell and Newquay (Steve Double) and for Thurrock (Jackie Doyle-Price) have said.

There are two facts here that may appear contradictory, but are not. This is basically an honest place and the overwhelming majority of us are deeply honest and straightforward—there are flaws in politicians, but in this country corruption is not necessarily one of them. At the same time, it is sadly true that the UK is an influence peddler’s paradise. I will explain why; it has much to do not only with the weakness around domestic lobbying laws, but with foreign lobbying.

I will not spend much time on the points raised by Opposition Members; for a “loyal Opposition”, I am not sure that they seem particularly good at being either. I know that the Prime Minister wants to do the right thing, so I will make some suggestions, partly based on a report that I wrote earlier this year with the Henry Jackson Society about looking into foreign interference in the UK and models for a UK foreign lobbying Act.

The problem is that the current lobbying rules are not fit for purpose, because there are barely any lobbying rules. In fact, it is very difficult to break the rules, because they are so limited: they are built around a very narrow definition of what it is to be a lobbyist and what a lobbyist does. Most importantly, they do not look at the lobbying done by law firms and reputation managers—the sleaze launderers and reputation launderers. If we look at some of the most corrupting elements in our system and at the relationship that BT had for 10 or 15 years with Huawei, effectively, BT, a corporate entity that had high standards—

Andrew Bowie Portrait Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
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My hon. Friend raises Huawei. Does it not demonstrate his point that there are very strict rules in this country that many companies and individuals stick to, but when it comes to foreign influence in politics, we must go much further? For the Opposition to have made no reference to that in the motion is a matter of deep regret.

Bob Seely Portrait Bob Seely
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I agree. I thank my hon. Friend for his point and hope to build on it. If we look at Huawei and its relationship with BT, effectively, BT became a front entity for Chinese state technology in this country. Another example is Lord Barker, a former Minister who is now in the other place—I think that is the correct expression. We found out about his extensive work for one of President Putin’s most loyal oligarchs, Oleg Deripaska, by reading the US media. Why? Because we have no foreign lobbying accountability laws in our own country, in much the same way as our domestic lobbying laws are very fragile as well.

My hon. Friend the Member for St Austell and Newquay (Steve Double) was right: a lot of us rely on a clean system because we are honest people, but the problem is that it is easy to abuse a system that is still largely based on trust, and it is often difficult to understand the ways in which it is being corrupted. That is perhaps the most significant problem.

We are talking about one individual politician, David Cameron. I am sorry to hear that he has done this, because actually I quite like the guy and hope he can in some way explain himself rather better than he is doing, but we are talking about one individual politician and one or two—a small number of—civil servants. However, the systemic threat of malign covert influence is not necessarily from specific individuals who may or may not be flawed, but is from states that use covert influence to try to manipulate laws and influence public opinion in other people’s countries, and we now have a mini-industry of that in the United Kingdom.

To sum up to ensure others have the time to speak, I will send, if I may, to the Minister my report on foreign lobbying in the hope that when we produce these laws the Government will take into account some of the things the Henry Jackson Society and I have worked on, so we can try to clean up our system and these occasions become even rarer, as they should be.

15:01
Shaun Bailey Portrait Shaun Bailey (West Bromwich West) (Con) [V]
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This has been an interesting debate with thoughtful contributions from my hon. Friends the Members for Isle of Wight (Bob Seely), for Bolsover (Mark Fletcher), for Thurrock (Jackie Doyle-Price), for North East Derbyshire (Lee Rowley) and for Heywood and Middleton (Chris Clarkson).

Let me be clear at the outset: the Greensill affair raises serious issues that need to be scrutinised, answered and accounted for. However, what I say to the Opposition is if they want to talk about sleaze and corruption, they do not need a motion, they need a mirror. The fact is they need to go no further than the Labour-controlled Sandwell Council to find out exactly what that looks like, and what Labour in power is all about, because sleaze affects all my constituents day in, day out, such as the £300,000 spent on silencing a blogger who called out exactly the cronyism that we see the Opposition carping on about today, while we suffer from some of the highest levels of child poverty in the country.

I just say three words to the party opposite: the Wragge report. Perhaps some of them should take a read of it, because perhaps they will see then exactly what it looks like when they are in power, and the sleaze that is there. We know about the ongoing investigations and people should be in no doubt at all that some of the findings are truly shocking, including cover-ups, misuse of public funds, and reports being leaked and the use of private emails to cover-up. And those are not my words, but the words of the previous Labour leader of Sandwell Council.

So before the Opposition start carping on about sleaze, Tory sleaze or whatever else it might be, perhaps they need to look at their own ranks, and perhaps they need to come to Sandwell and see what it is like. As Julie from Tividale put it to me on the doorstep the other day, “Shaun, the only way we are going to sort this is by huffing them out.”

Returning to the points raised today, there has been a theme running through this debate: we in this place, as Members of Parliament, have the mechanisms to scrutinise issues such as this. It is as simple as that; the mechanisms are there. I pay tribute to my hon. Friend the Member for Hazel Grove (Mr Wragg) for the work he does. He has said that he is ready to serve and so is his Committee, and we know full well that he can step up in order to do that. And it is right that he does, because we are sent here to provide that scrutiny of the Executive. The hon. Member for Hornsey and Wood Green (Catherine West) was right: Back Benchers do have that role; we are here to scrutinise and to shed light on situations such as this one.

I am conscious of time and want to keep my remarks as brief as possible without repeating too many of the comments made by other hon. and right hon. Members across this House. We have the mechanisms in the House to scrutinise and to hold such situations to account, and the inquiry is very much welcome, which is why the Opposition should perhaps first also look at their own house and why I will be voting against this motion.

15:04
Olivia Blake Portrait Olivia Blake (Sheffield, Hallam) (Lab) [V]
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I am and always have been exceedingly concerned about value for money, conflicts of interest and the correct use of public funds. I sit on the Public Accounts Committee, and over the past year we have seen the workarounds and the flexibility to deal with the coronavirus pandemic. For me, that has exposed the weaknesses in our systems in the first place. It has exposed who the winners and losers are in our system.

When there is no competition, delayed contract publication or a lack of oversight, as we have seen this year, the fragility of the rules that we have in place is clearly exposed. When there are text messages, dark corners in our democracy and what can only be described as sleaze, the need for change is clearly exposed. This saga should shame us all. We should not have a system that allows individuals to interpret their actions as fair and allowed within the rules. We need to fix those rules and change the law.

Transparency International UK estimates that in-house lobbying could be as high as 80% in the UK. Labour’s amendment to the 2014 lobbying Act would have caught out David Cameron’s Greensill lobbying. We should be united cross-party on this motion. Every one of us has a duty to uphold the offices we are elected and appointed to, and we should never be afraid to answer the questions of colleagues in Parliament on these matters. That is why I support the motion today, and that is why many will view the inquiry as sweeping the issue under the carpet and fear a cover-up.

This issue also raises questions about where decisions should be made. If they were made closer to the people that they affect, would those involved have felt they were able to act in this way? Power and money can clearly be influential to some in this place, but we should remember that we are elected to represent the people, not private interests, and that those private interests should never view public finance as an easy-access cash machine.

15:06
Andrew Bowie Portrait Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
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It is a pleasure to speak in this debate. Before I proceed, I think I speak for the whole House when I say how nice it was to see the Minister for the Constitution and Devolution, my hon. Friend the Member for Norwich North (Chloe Smith), opening the debate. I am sure everybody sends her their best wishes, albeit virtually.

As my hon. Friend and so many others have said already, we all condemn the actions that are alleged to have taken place regarding Greensill and the involvement of the former Prime Minister. It leaves a bad taste in the mouth and, as so many have said far better than I could, it tarnishes us all. We need to ensure that we uphold the best possible standards in public life and that there is transparency in all interactions between companies, individuals and decision makers in Government.

However, that is not at all the aim of the motion in front of us today. The motion, if passed, would do no such thing. It is blatant, tawdry politics. It is ill-thought-through, but even worse than that is the stench of hypocrisy that remains in the air given some of the utterances from Opposition Members. I notice that the shadow Defence Secretary, the right hon. Member for Wentworth and Dearne (John Healey), is opening the next debate. It was he who wrote to the Business Secretary asking him to expand Greensill’s access to Government loans. The hon. Member for Leeds West (Rachel Reeves) opened this debate, speaking about how we should go further and faster in tackling corruption in lobbying. In December—just last year—she said:

“Democracy is deeper than sporadic elections, it is about what happens in between with citizens’ voice, rights and power. That requires guarding the independence and voice of civil society and is why measures in the Lobbying Act which mutes so many, really must go.”

The Opposition want to repeal the lobbying Act. It is frankly astounding.

As I have said, we need to ensure transparency and trust in politics. We need to ensure that the way companies and individuals interact with Government and decision makers is transparent. We must maintain standards in public life. However, the motion in front of us today would do no such thing.

15:09
David Simmonds Portrait David Simmonds (Ruislip, Northwood and Pinner) (Con) [V]
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In 1998, I started my political career as chairman of the Uxbridge planning sub-committee in the London Borough of Hillingdon. The first requirement was to receive advice on how to deal with lobbying appropriately. An eminent member of the Labour party, Mr David Brough, at the time the council’s head of democratic services, gave the sage advice that although we cannot always manage what lobbying we will be subject to, what matters is that, in office, we act in line with the rules and in the public interest in the way we respond. Mr Brough’s advice was good then, and it is good today. The tone struck by my hon. Friend the Member for Bolsover (Mark Fletcher) was exactly right: the good governance of public affairs demands that we all pay good heed to those who want to bring matters to our attention, and that we exercise our judgment about how best to act in the light of this information.

People in office—in Government, in Parliament and in the public and private sectors—are continually lobbied on all manner of issues. Indeed, I first made the acquaintance of many current leaders of the education unions during the weekly meetings that the last Labour Government’s Ministers held with them. That access was not afforded to other key players in the education sector. So, privileged access for friends of Labour? Yes. But provided that Ministers put those union demands into context and acted in the wider public interest, that was not an abuse of process. I am happy, as a Member of this House, to extend the benefit of the doubt to those in the party opposite who lobbied for Greensill and on a huge range of other matters on behalf of other organisations, on the basis that they did so in the belief that they were genuinely acting in the public interest. The same courtesy deserves to be extended to all in public office while evidence is sought and considered.

In the spirit of the constructive suggestions set out by my hon. Friend the Member for Isle of Wight (Bob Seely), it might be helpful to look at the local government training as a model for us in Westminster, to provide some guidance for Members on how to deal with lobbying. In my view, however, the case has not been made by the Opposition for the motion before us today. Calling for cross-party unity on this issue has been a preamble for making unproven and unevidenced allegations against the Government, and that tells its own story. For that reason, I oppose the motion.

15:12
Mary Kelly Foy Portrait Mary Kelly Foy (City of Durham) (Lab) [V]
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Five years ago, Dennis Skinner was ordered from this Chamber for calling the then Prime Minister, David Cameron, “dodgy Dave”. We already knew that David Cameron was callous: his social security and immigration policies showed that. We knew that he was incompetent: the damage that he caused to the Union showed that. And now, thanks to the Greensill scandal, we have further proof that he is indeed dodgy. There is no doubt that David Cameron behaved improperly, but we cannot let this scandal be reduced to the actions of a single disgraced politician. The Greensill scandal involves the Chancellor, the Health Secretary, two Treasury Ministers, a senior civil servant and God knows who else. It also shows just how lax the rules on lobbying are, and how this culture has infected the heart of Government. Greensill is the latest in a seemingly unending conveyor belt of cronyism scandals under this Government. In the past 16 months, we have had the Westferry development and the towns fund scandal. Government contracts have been handed to the Health Secretary’s pub landlord and to firms linked with Dominic Cummings and the Conservative party while billions have been wasted on a test and trace system run by the partner of a sitting Conservative MP. I could go on.

At the start of the pandemic, the Government promised to do everything they could. I assumed that meant everything that Ministers could do to defeat the virus, not everything they could do to make their rich mates even richer. In the Labour party, we listen to the voices of the workers and the disenfranchised. The Conservatives listen to the greed of their chums and their donors. For many of them, this pandemic was simply an opportunity. It makes me sick that the Chancellor pushed officials to help a wealthy ex-Prime Minister while ignoring the excluded. When I raised the struggles of a business in Durham, the Chief Secretary to the Treasury told me that not every single job would be protected. Did the Chancellor tell David Cameron that not every stock would be protected?

We cannot have another classic whitewash where the Government mark their own homework. It is time for a proper inquiry, not just into Greensill but into the culture of corporate lobbying that plagues politics. It is a sad fact that the public do not trust politicians, but when they see this scandal or any of the others overseen by this Government, who can blame them? We need to demonstrate a commitment to ending this lobbying culture that protects the interests of the few at the expense of many, and that starts with a proper inquiry.

I expect my protests will fall on the deaf ears of a Government who cannot hear me or the pleas of my constituents over the words of corporate lobbyists, but David Cameron’s actions have once again shown that Tory Ministers cannot be trusted, so in the absence of the Beast of Bolsover, I will still refer to our former Prime Minister as “dodgy Dave”.

15:15
Christian Wakeford Portrait Christian Wakeford (Bury South) (Con)
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I do not know how to respond to that, really. I will try to be brief, and it is much easier when we take the petty and cheap politicking out of it. What we have here is an issue, and it is right that it is addressed fully, but the best way to do that is via the light of day—through transparency and having a full and frank investigation, which has already been launched by the Prime Minister. What we do not need is a further Committee when we already have one in place. We do not need to reinvent the wheel.

What we have seen today, as my hon. Friend the Member for North East Derbyshire (Lee Rowley) mentioned, is trial by judge, jury and executioner, with people already found guilty before an investigation has actually started, let alone concluded. I think we are now seeing the party of opposition no longer opposing, but just being the party of opportunism. Quite frankly, that is depressing. It is depressing for this place and depressing for politicians across the country, but it is also depressing for the public.

When I go out knocking on doors in the coming weeks in Radcliffe, Prestwich and Whitefield, I do not want to say that we do not trust politicians because of politicians. We do ourselves down, when actually we have done a good work over this year because of the pandemic, and we do a lot of good work because that is what we want to achieve. We want to achieve the best for our constituents and the best for our country, and we do so. However, that does not happen when politicians stop listening to the people they represent. We saw that before the last general election, and that is why we are in this position now. We are a strong Government with a large majority because we did listen to those workers and we did listen to business.

Business does need to be listened to. Business is not the enemy. Big business is not the enemy. Yes, it needs to be reined in every now and then; well, that is not a bad thing. We need to make sure that we do represent everyone, whether that is the shop floor worker in Morrisons, the care worker or, indeed, the chief executive officer of a large multinational. We are here to represent everyone, and we achieve that by working collegiately, not by calling out former Prime Ministers, former Members and former right hon. Members as being “dodgy” or guilty before we even know what they are guilty of. That does this place down.

It is a really depressing day to be having this motion. I will not support the motion, because it calls for something that is already in existence, so I support my hon. Friend the Member for Hazel Grove (Mr Wragg) in allowing his Committee to carry on the great work that it already does, and long may that continue.

15:17
Janet Daby Portrait Janet Daby (Lewisham East) (Lab) [V]
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Over the past 13 months, correspondence and conversations with my constituents have shown how much damage the dodgy dealings of this Government have done to our public trust. The Greensill debacle is not the beginning or the end of the shameful behaviour of the Conservative party. From Dominic Cummings’s brazen breach of lockdown regulations to the Housing Secretary’s involvement with lobbying developers, it is hard to see what integrity this Government have when those awarded the highest positions of authority are allowed to get away with this. The Home Secretary was found in a report to have bullied her staff members, including swearing and shouting, but the Prime Minister determined that this was not an issue.

Now we are hearing that a former Prime Minister has been permitted exclusive access to some of our most senior Government Ministers to further his own financial gains. Journalism is uncovering this scandal, because the public really need to know what is going on behind the closed doors of Whitehall. Throughout the pandemic, again and again we have seen public money being handed out, through lucrative contracts, to the Health Secretary’s friends. We have seen the shambolic failure of the delivery of personal protective equipment after millions of pounds was misspent, not to mention billions spent on the failed test and trace service. Our poorest children have been going hungry because highly essential free school meal contracts were entrusted to a company that sought profits only. Now our Chancellor, the very person we have no choice but to trust with our country’s money, is implicated in these disgraceful underhand dealings.

We must have a parliamentary inquiry that covers the Greensill sleaze affair. The culture in the Conservative party that has allowed it to exploit its power again and again undermines its integrity in office. British taxpayers deserve a transparent investigation so that it is clear what those in high Government office have been doing with their money. After the farce of the Commission on Race and Ethnic Disparities report, named contributors to which said that their words had been twisted to show a racism-free Britain, we will not accept another Government-fixed pseudo-review.

15:20
Peter Gibson Portrait Peter Gibson (Darlington) (Con) [V]
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I am pleased to be called to speak in today’s Opposition day debate about the steps being taken by the Government to increase transparency while at the same time ensuring that businesses, charities and other campaign groups can raise their concerns with Ministers and that our Government can listen. The hypocrisy of the party opposite knows no bounds. Its own Front Benchers have continuously lobbied for companies such as Greensill at the same time as voting against measures to increase transparency and provide a proper legislative framework for lobbying.

Measures that the Government are taking include ensuring that lobbying takes place in a transparent and open way, voluntarily publishing more information than required under the Freedom of Information Act, ensuring that all consultant lobbyists are registered with an independent watchdog, and routinely publishing details of ministerial meetings and Government contracts. That is all being done while ensuring that Ministers are still actively listening to the businesses and charities that have been so badly affected by the pandemic.

I am glad that the Government, far from ducking difficult questions, are taking steps to further increase transparency following on from the 2014 lobbying Act and ensuring that the highest standards of openness and accountability are maintained at all times—steps that in 13 years of power, Labour refused to take. Indeed, in the last general election every Labour MP stood on a clear manifesto commitment to repeal the 2014 lobbying Act, yet the Leader of the Opposition is still taking advice from the former MP for Hartlepool, Peter Mandelson, who was twice forced to resign from the Labour Cabinet over cronyism. Thankfully, the people of Hartlepool will have the chance to elect a Conservative on 6 May and end the years of Labour taking that great town for granted. If we needed an example of Labour cronyism and its commitment to fairness and transparency, we need only look at the stitched- up candidate selection in Hartlepool.

I am glad that Nigel Boardman has been commissioned by the Prime Minister to investigate concerns about lobbying following the revelations of the last week. We are assured that Mr Boardman will have access to all the relevant documents and those people who were involved in decisions at the time.

Today’s debate is nothing more than yet another opportunist attack on the Government as Labour fall behind in the polls while this Government continue to support thousands of businesses across the country. The Opposition are seeking to score quick political points and generate soundbites while failing to address flagrant cronyism within their own ranks.

15:23
Jamie Stone Portrait Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
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What a pleasure it is to come down from the north of Scotland rather than Zooming in, Madam Deputy Speaker.

We are clearly in a spot of bother on Greensill, but I would certainly draw a couple of rays of hope from the debate. I have always had faith in the Chair of the Public Administration and Constitutional Affairs Committee, the hon. Member for Hazel Grove (Mr Wragg), and what I heard from him today confirms my belief that he is doing a good job. I was very much taken by the point made by the hon. Member for Ruislip, Northwood and Pinner (David Simmonds) about the fact that training might be very helpful.

My colleague and good friend, my hon. Friend the Member for Richmond Park (Sarah Olney), made the point, if I picked it up correctly, that we are all in this together. That sentiment was echoed by the hon. Member for Thurrock (Jackie Doyle-Price). My intervention on the hon. Member for Argyll and Bute (Brendan O'Hara) was along the lines that, as others have said, such a besmirchment of democracy is not helpful. To see this happening and to hear people in the streets saying, “You’re all at it—you’re all letting us down” is not at all helpful, and it is dangerous to democracy, which, after all, this place is the mother of.

I am going to take a leaf out of the book of the hon. Member for Bridgwater and West Somerset (Mr Liddell-Grainger) and go local. With your permission, Madam Deputy Speaker, I shall return—mentally, at any rate—to the far north of Scotland. The damage and corrosion to faith in democracy needs to be taken with the local situation that we have up there. For whatever reason, unfortunately, in the vast area of the highlands, public appointments do not seem to reflect the far north. Local knowledge is essential to running services, as how things are done is quite delicate and detailed, and when people are appointed who are not from the area, that is counterproductive.

Finally, we have a Danish billionaire who buys estates in the far north of Scotland as you or I might buy household appliances, Madam Deputy Speaker—he just buys them one after the other. Other Members have heard me talk repeatedly about the great wish of the crofters in north Sutherland to take up the Government’s generous offer of our hosting one of Britain’s space launch sites. It went through planning nem con—unanimously—and all the crofters support it, yet this Danish billionaire who is not elected by anyone will do anything in his power to stop it. If we can get it right in this place on the Greensill front and restore public faith in us, there can be a knock-on effect that will only be good for wider democracy and people feeling that they are actually being heard.

15:26
Kate Osborne Portrait Kate Osborne (Jarrow) (Lab) [V]
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This is a scandal that goes right to the heart of Government and reaches deep into our public services. It is appalling that the ex-Prime Minister, David “Dodgy” Cameron, went looking to make a fortune via Government contracts. This happened at the same time as a senior civil servant started working for Greensill Capital while still the head of Government procurement, essentially wearing both hats for three months with the rubber-stamped approval of the Cabinet Office. This is not just a historical issue. Those caught up in the Greensill scandal include both the Health Secretary and the current Chancellor. They must now come before Parliament to provide full transparency and publish key evidence.

From PPE contracts dished out to drinking buddies to the US health corporation takeover of GP surgeries, Tory cronyism stinks, and interference in our health service stinks. The Health Secretary must face parliamentary scrutiny over his involvement in the Cameron Greensill lobbying scandal, and it must be made public how much access to NHS data and billing Lex Greensill gained during his period of special treatment within Whitehall.

The Prime Minister has said that Nigel Boardman, a former senior partner at the law firm Slaughter and May, will lead an independent review into the Greensill-Cameron affair. This is the same Nigel Boardman who, while working for Slaughter and May in 2018, was one of a number of financial advisers employed by the Government who were found by the Business, Energy and Industrial Strategy Committee to have squeezed money out of Carillion during the company’s dying days. Do we really think that Nigel Boardman is an appropriate or suitable person appointed by the Prime Minister to undertake the review of David Cameron’s behaviour in relation to Greensill? It is not acceptable to allow the Government to pick and choose who they get to lead an independent inquiry into this.

Besides the conflict of interests, the review does not have any legal powers, and it is not expected to come up with recommendations for tightening the system. It is another way for the Tories to sweep a scandal under the carpet in the hope that the British public forget. Whether it was the inquiry into the allegations of bullying against the Home Secretary, covid cronyism or institutional racism in the UK, Government inquiries have either been hidden or led to nowhere in recent times. I urge Conservative Members who wish to stop cronyism, which is rampant in their party and in Government, to vote for this motion, so that we can uncover the truth behind this scandal and put an end to this unaccountable, corrupt capitalist practice.

15:30
Claudia Webbe Portrait Claudia Webbe (Leicester East) (Ind) [V]
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Systematic and structural corruption at the heart of Government. Despite being elected by the people, they govern for the billionaires and the corporate elite. In truth, I am not sure that any amount of transparency or personal integrity can change this culture of stench—I hope it can.

The Greensill scandal, with its implications for NHS privatisation, the former Prime Minister and current Ministers, is particularly shocking as it encapsulates the chumocracy of this Government, yet that scandal is just the tip of the iceberg of the cronyism that defines this Administration. This is a Government of the super-rich, by the super-rich and for the super-rich. Throughout the pandemic, the Government have given billions to private companies in shady deals that have led to accusations of corruption. A National Audit Office investigation of coronavirus procurement found that contracts worth many billions of pounds were given without scrutiny to private companies with little or no experience, and whose only qualification seemed to be a close personal relationship with a member of the Government.

My community of Leicester has been in lockdown or enhanced restrictions longer than any other area of the UK. For a full year, we have not been able to hug our loved ones or participate in anything resembling normal life. Given the immense suffering caused by the pandemic, it is absolutely appalling that some companies see the crisis as an opportunity to be exploited for financial gain. A select few with ties to the Government have profited immensely, while most people have suffered. Worse, the Government have facilitated an unscrutinised handover of public wealth to the pockets of wealthy shareholders. This is a Government who are frivolous when it comes to handing out public money to Tory donors or private companies, but penny-pinching when it comes to bailing out communities across the country.

The Greensill scandal cannot be swept under the rug. That is why it is so important that it is investigated by a full, transparent, Parliament-run inquiry. That is especially the case following recent revelations that the Government’s chief procurement officer started working for Greensill Capital while still employed at the Cabinet Office, with access to Government contracts worth billions. With the scandal likely much worse than it appears, the Government cannot be allowed to mark their own homework.

In recent weeks, we have seen the disastrous consequence of self-assessment with No. 10’s race and ethnic disparities report. Its conclusion that the UK is a world-leading bastion of racial progress was nothing short of state-sanctioned gaslighting. The Government’s investigation, in its current form, will kick the issue of corruption into the long grass. We cannot allow that to happen. The Government must be investigated and held accountable. If they do not want to support the Labour motion, I suggest we have a judge-led inquiry.

15:32
Justin Madders Portrait Justin Madders (Ellesmere Port and Neston) (Lab)
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Every day, things get a little murkier. Every day, some new revelation appears that adds to the general whiff of sleaze that emanates from the Government. Rather than seeking to uphold higher standards, it seems that the Government want to underplay the importance of probity, sideline the principle of transparency, and behave as if the law does not apply to them. It starts with a friendly drink, then a cosy chat, and before we know it millions of pounds of public money is being siphoned off without any kind of open process being undertaken. Never has the phrase, “It’s not what you know, but who you know,” rung so true. Never has the path to riches been so open to a select few, and never has our democracy been so warped by an erosion of basic standards.

These revelations diminish us all in the eyes of the public. That should concern us all, regardless of political persuasion. I urge Conservative MPs who intend to vote against our motion to think about what message they are sending to their constituents. If their constituents are like mine, many will have faced massive financial hardship over the last year. I have written to Ministers about the issues affecting businesses and individuals in my constituency in relation to the covid response, but on far too many occasions I have received a disinterested generic reply six months later.

My constituents and I are disappointed when their concerns are treated with such disdain, but that disappointment turns to outrage when my constituents see that those who have the Chancellor’s mobile number have no such difficulty in getting an audience. The 3 million excluded, the health and social care staff scrabbling around for personal protective equipment, and the millions of people who have given their time to help in the fight against covid have all given so much. When they see that this crisis has been used as an opportunity by some with the right connections to line their own pockets, they are disgusted.

Ministers should remember that they are not only custodians of the public purse; they are responsible for the reputations of the Departments they oversee. One of the schemes that that special access led to was essentially payday loans for NHS employees. More thought should have been given to the implications of that. It is clear that Greensill wanted the credibility that comes from working with the NHS, in the hope that that would enhance its reputation, but what about the reputation of the NHS after being associated with such a scheme? If it is thought that pay is so low that salary advances are needed, perhaps the Government should think again about the real-terms pay cut that they propose for NHS staff.

If we are to have lobbying, we should lobby for the Prime Minister to buy a dictionary, because his definition of “independent” is very different from mine and that of most other people. There is now a pattern whereby anything tricky involving the Government sees them marking their own homework. We know what happens then: reports on bullying never see the light of day, and the breaking of the ministerial code is no longer seen as a reason for resignation. For this Prime Minister, no transgression is too big to ignore, so I say to him, show some leadership, allow independent scrutiny and clean up this rotten mess.

15:35
Rachel Hopkins Portrait Rachel Hopkins (Luton South) (Lab) [V]
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It is a pleasure to follow my hon. Friend the Member for Ellesmere Port and Neston (Justin Madders) and his dictionary reference, because I am going to start with the “Cambridge Dictionary” definition of cronyism, which is

“the situation in which someone important gives jobs to friends rather than to independent people who have the necessary skills and experience”.

Cronyism: the modus operandi of the Conservative party—backdoor dealings, special favours and bending Whitehall to its will. The Conservatives make it more profitable to have the Chancellor or the Secretary of State for Health on WhatsApp than to have a robust, evidence-based case for economic support or a Government contract.

Over the past year, we have only scratched the surface of the Tories’ chumocracy. First, the report on bullying at the Home Office, then Westferry, where the Government rushed through a housing development to help a Tory donor to avoid a £45 million levy. Then there was the appointment of a Tory peer as head of Test and Trace, without real process. Now we have the shady, unregulated firm Greensill Capital exploiting informal channels by employing Government officials and previous Tory Prime Ministers to access taxpayers’ money.

The Government, again, put hundreds of millions of pounds of public money at risk by giving Greensill access to the covid loan scheme—and now thousands of jobs hang in the balance. No one should be able to dodge tax. The company that can deliver the best job should get the Government contract, and companies most deserving of Government support should receive it through the proper channels, but in Tory Britain, that does not seem to be the case, as we see the revolving door between the Government and paid lobbyists.

Many of us were shocked to discover that Bill Crothers was permitted to advise Greensill while in a pivotal Cabinet Office role, but also of interest is the fact that in December 2016, Bill Crothers became a subcontractor to lobbying company Francis Maude Associates—Francis Maude was, of course, a Conservative Cabinet Office Minister from 2010 to 2015. Who was joint founder of Francis Maude Associates? Simone Finn, the former Cabinet Office special adviser to Francis Maude, who is also the current Prime Minister’s deputy chief of staff.

Given that one of the revolving doors in the murky world of Tory lobbying leads directly to 10 Downing Street, will the Government ensure that Baroness Finn fully co-operates with any investigation, sharing all relevant communications? Will they ensure that the role of organisations such as Francis Maude Associates is examined in the inquiry? This Tory Government have ridden roughshod over each of the Nolan principles—the seven guiding principles for public service introduced to combat Tory sleaze in the ’90s. We need a full, transparent, Parliament-run, cross-party inquiry into the Greensill lobbying scandal.

15:38
Anneliese Dodds Portrait Anneliese Dodds (Oxford East) (Lab/Co-op)
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This afternoon, we have heard a story of endemic cronyism—cronyism that has persisted for years and spread right across this Conservative Government and previous Conservative-led Governments. Parallels with the Conservative Governments of the 1990s are clear for all to see: jobs for the boys, all over again. Conservative sleaze is back. But as my hon. Friend the Member for Wallasey (Dame Angela Eagle) said, there is a difference this time—a difference in scale. This time, we are talking about hundreds of millions of pounds of public money put at risk, and thousands of jobs.

What is staggering is the complacent and cavalier attitude of those involved, as so many have said today, not least my hon. Friend the Member for Lewisham East (Janet Daby). A former Conservative Prime Minister thought there was nothing wrong with texting the sitting Chancellor and two of his junior Ministers to ask for special treatment for the financial services firm that was paying his wages. A Chancellor thought there was nothing wrong with pushing his team to see whether they could amend a Government loan scheme to give Greensill access to hundreds of millions of pounds of public money. A Treasury and a Business Department thought there was nothing wrong with Greensill being accredited as a lender under one of the Government-backed schemes, even when it had been rejected by another, and this mere months before the firm collapsed altogether. All this took place when the vast majority of public servants, civil servants and, of course, key workers were working with integrity around the clock on the covid effort.

We know that before that, David Cameron thought there was nothing wrong with setting up Lex Greensill in the heart of Government, with a desk, business cards and his own No. 10 email address, and nothing wrong with giving him access to contracts worth billions of pounds. Indeed, a contract was lined up for Greensill to provide supply chain financing across the public sector, and it was pulled only a few days ago, when this scandal started to break.

Similarly, the Health Secretary thought there was nothing wrong with meeting the former Prime Minister for a drink with Lex Greensill to discuss how their firm could get access to NHS staff pay, packaging up loans as bonds to be sold to investors and trading on the good name of our NHS.

The Government’s former head of procurement thought there was nothing wrong with becoming an adviser to Greensill Capital while he was still a civil servant. I have never before heard of someone using the revolving door before they have even left the building. Ministers cannot wash their hands of that behaviour and say, “It was the civil service; it is nothing to do with us.” As my hon. Friends the Members for City of Durham (Mary Kelly Foy) and for Jarrow (Kate Osborne) made clear, successive Conservative-led Governments have set the tone and the culture that allowed the behaviour we have heard about today—an approach to public office whereby the accountability and transparency that we should all expect have been replaced by a tap on the shoulder here, a nudge and a wink there.

We need a thorough and genuinely independent investigation to get to the bottom of this, one that can take evidence, call witnesses and report publicly. Instead, as we have heard, the Conservatives propose an inquiry run by the son of a former Conservative Cabinet Minister who works for the law firm that advised the Treasury on the design of the loan scheme that David Cameron lobbied for Greensill to access.

As we know, the Chancellor continues to run scared. He has not been seen in the House since the day after Greensill collapsed. Yesterday, we called for him to come to Parliament, but the Chancellor was frit. He seems to have forgotten his enthusiastic communications about his loan schemes. Indeed, at one point he tweeted proudly about CLBILS—the coronavirus large business interruption loan scheme—with the hashtag #AskRishi. We would love to ask Rishi, but we would have to find him first.

In offering excuses for his absence, the Chancellor claims that neither he nor his Department had any oversight—any role whatever—in deciding who got access to the public lending schemes he announced. He must be the first Chancellor in history to go on the record as having no idea about who was getting access to hundreds of millions of pounds of public money and how they were obtaining it. He promised to level with the public, but I did not think that meant the Chancellor telling the public he did not have a clue what was happening with their money.

As the Minister for the Constitution and Devolution said earlier—it was very good to see her via video link—the use of public money is overseen by the Treasury.

Public money is not the Chancellor’s money, and it is not the Conservatives’ money: it is public money, and it should only ever be used in the public interest. It is simply not good enough for this Government to mark their own homework and hide from scrutiny, as my hon. Friend the Member for Luton South (Rachel Hopkins) has just said.

William Wragg Portrait Mr Wragg
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On the point about scrutiny, and following the speech made by the hon. Member for Luton South (Rachel Hopkins), who is indeed a member of the Committee that will be scrutinising all of these matters—of which it is my privilege to be Chair—I wonder if the hon. Lady could seek not to correct the record, but to explain? If she is seeking independence of scrutiny, the motion before us and on which we will vote is deficient, because in paragraph (3) it asks that the members of that Committee be nominated by the Committee of Selection, which is entirely in the control of the party Whips.

Anneliese Dodds Portrait Anneliese Dodds
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My hon. Friend the Member for Leeds West (Rachel Reeves) very ably answered that point earlier: she made very clear the basis upon which our demands are being made. I will be very open with the hon. Gentleman—for whom I have considerable respect—that as so many Members have said this afternoon, it is important for all of us that we clear this matter up and are able to call witnesses, including former Prime Ministers where necessary; that we can do so publicly; and that we can do so about the range of matters that this affair raises. I regret to say that the investigation that has been created by Government simply does not do that. That is why we are calling for the approach set out in today’s motion.

William Wragg Portrait Mr Wragg
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Will the hon. Lady give way?

Anneliese Dodds Portrait Anneliese Dodds
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No, I will proceed with my remarks. The people of this country deserve answers, and they deserve to be treated fairly. That is a point that many of my hon. Friends have made very ably: the Members for Wansbeck (Ian Lavery), for Ilford South (Sam Tarry), for Hornsey and Wood Green (Catherine West), and for Ellesmere Port and Neston (Justin Madders).

Last year, I was contacted by someone I will call Jessica; I am sure that Members on the Government Benches will have been contacted by many people like her. Before this crisis, Jessica had a modest income, but it was a reliable income. She worked as a self-employed tour guide and in short-term, part-time roles. When the crisis hit, she lost all her income, but she did not quality for any of the Government’s support schemes, and as an owner-occupier, she was knocked out of most support from social security as well. She was angry, upset, and worried about how she as a single parent could support her family. Obviously, as we all know as constituency MPs, Jessica was not alone. The campaign group ExcludedUK suggests that there were up to 3 million people like Jessica: people who simply could not understand why the Government refused to fix support schemes so that they could get help. People like Jessica did not have the Chancellor’s phone number. Last year, Greensill got 10 meetings with Treasury officials; the group representing the excluded got one meeting.

Most of the excluded are still waiting for help, and our country is still waiting for a strategy to support those jobs put at risk by the collapse of Greensill. Indeed, our country has lacked a strategy for steel for 10 years. Last week, I visited the Liberty Steel plant in Hartlepool. I was incredibly impressed by the world-class technology and operation there; by the dedication of the workforce; and, in particular, by the enthusiasm and commitment of the two apprentices I met. Their work is good, decent work, manufacturing materials that British businesses need. It is a world away from the kind of complicated financial structures and share options that seem to have been par for the course for Lex Greensill and David Cameron, but jobs are at risk because of Greensill’s collapse and because of that lack of any strategy for the future of UK steel, as my hon. Friend the Member for Newport West (Ruth Jones) made clear.

To conclude, those steelworkers deserve better, and so do the British public. Government Members know that; they know that their constituents are appalled by new evidence of cronyism and the sleaze that seems to be emerging every day under the Conservatives. As the hon. Member for Hazel Grove (Mr Wragg) said, Members should question why they are being asked to defend these events. They should consider the impact that this will have on their integrity. The hon. Member for Bexhill and Battle (Huw Merriman) spoke of loyalty. Loyalty must be to the public interest, not to partisan friends, a point ably made by my hon. Friends the Members for Bristol South (Karin Smyth) and for Sheffield, Hallam (Olivia Blake). Government Members should, as my hon. Friend the Member for Kingston upon Hull East (Karl Turner) said, show some backbone. They should vote today for a full, transparent, Parliament-led inquiry to get to the bottom of this scandal once and for all.

15:50
Julia Lopez Portrait The Parliamentary Secretary, Cabinet Office (Julia Lopez)
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I thank all right hon. and hon. Members who have taken part in this afternoon’s debate for their very valuable contributions and for speaking with such passion on issues that affect us all in public life. The care with which we spend taxpayers’ money matters very deeply to public confidence in Government. The respect that we demonstrate for rules and regulations is rightly a benchmark for trust. The systems and structures of governance in this country must at all times serve, and be seen to serve, those whom we are elected to represent, and not be exploited for narrow, private interest. It is right that we in Parliament probe and scrutinise any concerns raised on such matters and, to be candid, it is in the Government’s interest, as much as anyone else’s, to be able to provide robust assurances. As my hon. Friend the Member for North East Derbyshire (Lee Rowley) said, if there is an issue, let us uncover it. It is for that reason that my hon. Friend the Minister for the Constitution and Devolution set out the existing framework for safeguarding and assuring the public interest. It should be restated that that existing framework, much of which has been brought in since 2010, has largely been very effective.

On the questions raised by the hon. Members for Argyll and Bute (Brendan O’Hara) and for Wansbeck (Ian Lavery) this afternoon about the interactions between Greensill and the Treasury, as the Chancellor set out in a letter to the hon. Member for Oxford East (Anneliese Dodds), the matter was referred by him to the relevant Treasury officials, and following proper scrutiny, Greensill’s requests were turned down. It was through transparency returns and declaration processes that meetings between Greensill and officials were highlighted. In other words, the system in that instance worked as it should, but it would be disingenuous to suggest that this existing framework has not been tested by the extreme circumstances of the pandemic and that the broader issues raised in recent days about Greensill have not posed questions that we are as keen as anyone to probe. Indeed, my hon. Friend the Member for Thurrock (Jackie Doyle-Price) highlighted that the scrutiny work has long ago begun.

Out of necessity and urgency, the Government have, over these past 12 months, interacted with thousands of individuals and organisations offering help. All claim to have had something to offer. Some do and some do not. Some have been referred by Conservative Members; others have been referred by Labour MPs, peers or those from other parties. Some are genuinely public-spirited; others only purport to be. Ministers and officials have had to take decisions that, at times, prioritise swift and decisive action over fulfilling the usual standards on timely and transparent contract publication, but we have been working extremely hard to rectify that latter shortcoming, about which I will say a bit more in a moment.

I also wish to assure you, Madam Deputy Speaker, that we have not been waiting around for the Opposition to table a motion on these important issues before making improvements to our existing propriety and transparency regime. We are currently conducting post-legislative scrutiny of part 1 of the lobbying Act, consulting a variety of stakeholders to get their views on the scope and effectiveness of the legislation. I welcome the contribution from the hon. Member for Weston-super-Mare (John Penrose) and his practical proposals.

Bob Seely Portrait Bob Seely
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Does my hon. Friend understand that many of us want the Government to do the right thing, and are grateful to them for doing the right thing, but understand that the lobbying Act, both for domestic and foreign lobbying, needs to be much broader? We need to take in the law firms involved, the reputation managers and the PR companies. It is not just about a narrow definition of lobbying, but all this lobbying industry that we seem to have built up in this country.

Julia Lopez Portrait Julia Lopez
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I thank my hon. Friend for his question. It is important to understand that we are putting forward a package of things. Some of the changes that need to be made are not necessarily through the lobbying Act, and we are looking at some of the issues of foreign intervention that he has rightly highlighted today.

We are already working with the chairman of the Advisory Committee on Business Appointments, my noble Friend Lord Pickles, to improve the business appointments regime, which applies lobbying bans to former Ministers and civil servants. The committee has been actively seeking to increase the efficacy of the system by introducing a framework for the risk-based consideration of cases, greater transparency and better reporting of breaches of the rules. Members should note that some of the issues discussed in relation to Bill Crothers stem from the transparent publication of our correspondence with ACOBA on gov.uk.

On procurement—to reassure the hon. Member for Sheffield, Hallam (Olivia Blake)—we have published an ambitious Green Paper with legislation to be included in the Queen’s Speech, setting out how we will provide commercial teams with much greater choice in an emergency. It needs to be understood that, at the moment, the options are a direct award, which exposes us to the kinds of claims of cronyism that have been peddled today, or full fact procurement, which takes far too long to turn around in an urgent situation. In relation to this, last autumn, we commissioned an independent expert review into Cabinet Office procurement processes led by Nigel Boardman, probing particular contracts that were raised in the NAO’s report on this subject. The subsequent Boardman report was forensic in its analysis and very hard-hitting in its recommendations, and the Cabinet Office committed to taking forward all of them in full. Meanwhile, I set out with candour in a Westminster Hall debate the challenges that the Government had to navigate at the height of the pandemic and what went well and what, undoubtedly, could have been done better during the period in question. I recommend that debate to those hon. Members who have today raised concerns about the so-called VIP lane. It might make for a more compelling Labour press release to suggest that the story of procurement during the emergency has been one of Tory corruption, but I believe that it is vital that we understand what really happened so that we do not overlook what needs to change.

Far from being a secret referrals lane, officials dealing with the thousands of PPE leads coming in set up a separate mailbox to triage them. It allowed more credible leads to be sifted and it helped manage the correspondence that was coming in from Parliamentarians of all colours who themselves were being contacted by companies and individuals offering help. The Opposition like to suggest that those going through this mailbox were 10 times more likely to secure a contract. The most important thing to note, however, as the NAO does in its report, is that all PPE offers, no matter from where they came, went through the same eight-stage assurance checks. It should also be said that of the more than 400 offers handled by the high-priority inbox, only 47 were awarded contracts, which means that 90% were not.

In relation to the activities of Greensill, Mr Boardman has been commissioned by the Prime Minister once again to apply his scrupulous and dispassionate eye to the role of Greensill Capital. I am very glad to say that the letter from Lord Pickles regarding Bill Crothers will now also be considered. It is right that I do not seek to prejudge his findings. However, I want to address two assertions that have been made: that it will be too narrow in scope and therefore requires a broader Committee-led inquiry; and that Mr Boardman himself is a Government yes man. To those criticisms, I first say that it would be wrong to view this investigation in isolation. It is one work strand of several, which we hope, when pulled together, will make for a much more robust framework. Secondly, I have seen how effective Mr Boardman’s previous Cabinet Office review has been in spurring improvements and I have no doubt that any recommendations from his work on Greensill will not only be unsparing but lead to meaningful change should it be necessary.

It is worth reminding the House that, as soon as any of us are elected to this place, we become all too familiar with the trickiness of handling tactfully uninvited requests of a varying nature from associates, constituents and others. What matters is not necessarily that those requests have been made, but that we reach a decision on them, which is compatible with the principles of public life to which we all must adhere.

There have been claims today that current lobbying laws do not go far enough and should be extended, but I would guard against overly simplistic solutions that risk going too far in clamping down on avenues for interaction between Government and wider society. That point was made very powerfully by my hon. Friend the Member for Bolsover (Mark Fletcher) and others. This is particularly true when we reflect on the current emergency during which some of the most important contributions have come from those working outside Government. Indeed, one of my worries from this past year is that publicly spirited people who want to serve their country in an emergency will look at how the integrity of someone such as Kate Bingham was questioned and think twice before coming forward. What is important always, as I have said before, is that decision makers are able to test and interrogate the credibility of external inputs mindful of their own obligations.

Finally, in relation to the ministerial code, I hope that it will be of reassurance to Members that the appointment to the post of independent adviser on ministerial interests will be announced shortly.

Let me finish by returning to the Opposition motion, which will no doubt shortly be manipulated into a social media campaign that implies that Government Members are pro-cronyism and anti-transparency in imposing their convoluted solution to the issues raised today. There is no point in pushing for the creation of yet another body with a remit to scrutinise the rules on lobbying and, additionally, to look into the Greensill affair when we already have a number of—may I say?—very unforgiving Select Committees, the Boardman review and a whole series of efforts under way to improve our existing framework.

The Government are alive to the sincerely held concerns of part of the public, charities, non-governmental organisations and others about lobbying activities. They are looking precisely at the scope and effectiveness of existing legislation.

In the same vein, it is clearly wasteful for the vital scrutiny that is customarily carried out by PACAC and others to be undertaken by a second Committee. Indeed, my hon. Friend the Member for Hazel Grove (Mr Wragg) has already in this debate applied his sharp and ruthlessly inquiring mind to some of the most vital questions; I thought his contribution was superb. Lord Pickles will appear before my hon. Friend’s Committee tomorrow.

We should focus, as the Government are doing, on strengthening our existing framework to satisfy ourselves and others that the mechanisms in place are sufficiently robust with respect to the conduct of public servants and the stewardship of public resources, and that we uncompromisingly make those decisions in the national interest. Although the Government do not support the motion, today’s contributions have shown the strength of feeling across the House and I thank hon. Members for them.

Beyond the political froth, I do not think that we are in different places on this. We all believe in and want the same thing: transparent government and behaviour in accordance with the seven principles of public life. The Government will continue to engage with parliamentarians of all colours as we set about raising our standards, but we do not need another Committee to do that. That would risk undermining the process and reviews that are already in place and that we should allow to conclude, so I urge the House to reject the motion.

Question put.

16:00

Division 250

Ayes: 262


Labour: 198
Scottish National Party: 44
Liberal Democrat: 11
Independent: 4
Plaid Cymru: 3
Social Democratic & Labour Party: 2
Alliance: 1
Green Party: 1

Noes: 357


Conservative: 356

The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.
Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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I will now suspend the House for three minutes in order to enable the necessary arrangements to be made for the next debate.

16:11
Sitting suspended.

Strength of the UK’s Armed Forces

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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16:14
John Healey Portrait John Healey (Wentworth and Dearne) (Lab)
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I beg to move,

That this House notes the Prime Minister’s 2019 election pledge that his Government would not cut the Armed Services in any form; further notes with concern the threat assessment in the Integrated Review of Security, Defence, Development and Foreign Policy, that threats from other states to the UK and its allies are growing and diversifying; calls on the Government to rethink its plan set out in the Defence Command Paper, published in March 2021, CP411, to reduce key defence capabilities and reduce the strength of the Armed Forces, including a further reduction in the size of the Army by 2025; and calls on the Prime Minister to make an oral statement to Parliament by June 30 2021 on the Government’s plans to reduce the capability and strength of the Armed Forces.

Our thoughts across the House today are with the Queen and the royal family as they prepare for the Duke of Edinburgh’s funeral on Saturday. His distinguished wartime career in the Navy was followed for decades by that same dedication to serving his country at the side of Her Majesty Queen Elizabeth.

We have called this Opposition debate for Members from all parts of the House to debate the Government’s defence and security plans as set out last month in the integrated review, the Defence Command Paper and the defence and security industrial strategy. Our starting point is the Prime Minister. He said at the launch of his 2019 election manifesto on behalf of all Conservative Members here:

“We will not be cutting our armed forces in any form. We will be maintaining the size of our armed forces”.

He may take the pledges that he makes to our armed forces and the public lightly; we do not. The integrated review confirms:

“State threats to the UK…are growing and diversifying”,

yet the defence review is a plan for fewer troops, fewer ships and fewer planes over the next three to four years.

I am disappointed that the Defence Secretary cannot be here to answer the growing chorus of concerns about his defence plans, but for today we entirely accept his attendance at the NATO special meeting on Ukraine. That in itself reinforces the warnings in the Defence Command Paper, which said:

“Russia continues to pose the greatest nuclear, conventional military and sub-threshold threat to European security.”

That heightens the widening concerns about cutting the strength of the UK’s armed forces in the face of growing global threats, instabilities and uncertainties.

There are so many serious flaws in the defence review and the industrial strategy. There is no assessment of current or future capability, no strategic principles or assumptions and nothing about how the Ministry of Defence should be structured or staffed in order to best provide national security. There is no recognition that the UK’s research capacity has been run down over the last decade by deep cuts to defence research and development, and no plan to absorb the £6.6 billion now pledged over the next four years.

There is no system for identifying and supporting the small companies that produce so much of our invention. There is nothing about what defence can get from greater advances in civil industry or what it can provide to civil industry and civil society. There is no explanation of how we will sustain the forward-deployed, front-footed, persistently globally deployed and engaged armed forces with so few ships and transport aircraft. There are no evident contingency plans to replace the losses of key equipment in conflict. There is nothing about mothballing equipment retired from service, like so many other countries do, rather than disposing of it on the narrow grounds that it saves money. I could go on, and I will on other occasions, but for today, our debate and our motion focus on the central concern about decisions to cut the strength of our armed forces in the face of growing threats and in breach of the Prime Minister’s personal pledge at the election.

In view of the interest—I am delighted to see that Members from all sides want to contribute to this debate —I want to make four main arguments and then look forward to what colleagues have to say. First, on numbers, with the threats to the UK growing and diversifying, there is a strong case against, not for, further cuts to the size of our armed forces. The Defence Secretary has announced that the Army’s established strength will be cut by 10,000 to just 72,500 over the next four years. That will be the smallest British Army for 300 years. Ministers can only promise no redundancies because all three forces are already well below the strength that the Government set out was required in the 2015 defence review.

Of course we must develop new technologies in domains such as cyber-space and artificial intelligence, but the British infantry—as the Minister knows better than anyone—has been the foundation on which the defence of the UK has relied for over 350 years. New technologies have always been harnessed to strengthen its capabilities, but they have never replaced entirely the need for boots on the ground.

Bernard Jenkin Portrait Sir Bernard Jenkin (Harwich and North Essex) (Con)
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I have some sympathy for the right hon. Gentleman’s position, because when I was the shadow Secretary of State for Defence, I spent a lot of time criticising the then Labour Government for cutting the size of the infantry and the Army. The clear implication is that the next Labour Government would be spending more than the present Government, so how much more money would a future Labour Government be putting into defence compared to what we are spending, which, of course, has increased already?

John Healey Portrait John Healey
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Sadly we are nowhere near another election at this point. We are at this stage in the parliamentary cycle with these plans on the table, and our interest is in the Government getting this right. The decisions taken now will set the shape of our defence forces for the next 10 years. The decisions taken now will be the framework with which a future Labour Government, after the next election, will have to live.

John Spellar Portrait John Spellar (Warley) (Lab)
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Would my right hon. Friend care to remind the hon. Member for somewhere in Essex—the hon. Member for Harwich and North Essex (Sir Bernard Jenkin)—that one of the reasons there is a big gap is that a previous Conservative Government, in a fit of vandalism, sold off the married quarters estate, costing the Ministry of Defence billions?

John Healey Portrait John Healey
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I would, but my right hon. Friend has just done so for me; I am pleased that it is on the record.

Kevan Jones Portrait Mr Kevan Jones (North Durham) (Lab)
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Will my right hon. Friend give way?

John Healey Portrait John Healey
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I will give way one more time, but then—conscious that nearly 40 Back-Bench Members wish to speak—I will make some progress.

Kevan Jones Portrait Mr Jones
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The hon. Member for Harwich and North Essex (Sir Bernard Jenkin) mentioned budgets, but is not it a fact that the defence budget has been cut by nearly 25% since 2010? Even with the increase that has been announced recently, the defence budget is now 5% lower than it was in 2010.

John Healey Portrait John Healey
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My right hon. Friend is right, of course. There has been an £8 billion real-terms cut to the defence budget since 2010. That is part of the reason that we have seen 45,000 full-time forces cut over the last decade. I will return to some of those points.

For now, I want to make this point: we can destroy enemy forces with technology, but we cannot seize and hold ground without troops. Drones and robots do not win hearts and minds; they do not mend broken societies; they do not give covid jabs. These deeper cuts now planned could limit our forces’ capacity simultaneously to deploy overseas, support allies, maintain our own strong national defences and reinforce our domestic resilience, as we have seen our troops do to help our country through the covid crisis. Other countries have expanded troop numbers even as they develop technology. They do not see this as a “manpower or machines” question, but as personnel and technology together. Although high-tech weapons systems are essential, highly-trained personnel are simply indispensable, and size matters.

These planned cuts are damaging for four reasons. Let us call them “the four Rs”. The first is resilience. Cutting Army numbers reduces the UK’s national resilience by reducing our capacity to react to unforeseen circumstances at home and abroad—not just major wars, but insurgencies such as Afghanistan, international interventions such as Sierra Leone or Kosovo, and emergency support operations such as post terrorist attacks or during covid.

The second “R” is readiness. The rapid response required to the unexpected also requires highly-trained, adaptable, cohesive combat troops, which even the best reserves, called up as last-minute reinforcements, cannot provide.

The third “R” is renewal. The fewer troops and full-strength battalions we have, the less able the Army is to sustain long campaigns. Northern Ireland, Kosovo, Sierra Leone, Afghanistan and Iraq all required the long-term rotation of troops. We are a leading member of NATO. We are one of the P5 countries at the UN Security Council. We may again be called on to deploy and sustain forces away from the UK. We may not seek a major crisis, but we may well face a major crisis that comes to us.

The final “R” is reputation. The current Chief of the Defence Staff said in 2015 that the ability to field a single war-fighting division was

“the standard whereby a credible army is judged”,

yet the fully capable division mandated then, including a new strike brigade, will not be battle-ready for another 10 years according to evidence that the MOD gave to the Defence Committee in the autumn. A former CDS, General Sir David Richards, has said that further cuts to the Army would mean that the UK was

“no longer taken seriously as a military power”

and that this would

“damage our relationship with the US and our position in NATO”.

My second argument is that this is not just about numbers. In the face of growing threats and the increasing ambition for the global role that our armed forces will play, there is a strong case against, not for, some of the Government’s short-term capability cuts. Taking two Type 23 frigates out of service in the next two years will reduce the Navy’s anti-submarine strength. Ending the RAF’s E-3 planes will leave a two-year gap in airborne early warning before the E-7 Wedgetails come into service in 2023. The Army is losing nine Chinook helicopters, 14 Hercules transporter planes and 20 Puma support helicopters.

The third argument is one that I am sad to have to make, and it is this: we are faced now with more of the same. After a decade of decline since 2010, which the Prime Minister called an “era of retreat”, the Defence Secretary promised that this defence review would be different from the last two Conservative defence reviews, which weakened the foundations of our armed forces. They were driven by finances, not by threats, cutting full-time forces by 45,000 and cutting critical defence capabilities and upgrades, alongside plans for full capability forces in the future that have not been fulfilled. I fear that this defence review simply makes the same mistakes of the past.

Fourth and finally, in November, when the Prime Minister announced the extra funding as part of a four-year funding settlement, we welcomed it as promising a long overdue upgrade of Britain’s defences, so we are dismayed now by more defence cuts, despite this £16.5 billion boost. But I guess it is not hard to see why. The defence budget was balanced in 2012, and the equipment programme was fully funded, but Ministers since then have lost control. The National Audit Office has now judged the defence equipment plan unaffordable for the last four years in a row and reports a black hole of more than £17 billion over the next 10 years. This black hole in the defence budget has grown by £4 billion in the last year, on this Defence Secretary’s watch. The MOD’s annual report and accounts suggest that the annual marginal cost for 10,000 Army personnel is around half a billion pounds. This deficit alone each year could cover the cost of maintaining Army numbers three times over.

The new defence budget is not all it seems. Ministers talk about the rise in capital funding but not the real cut in revenue funding over the next four years, which means less money for forces’ recruitment, training, pay and families. It means a possible cut of 40% to the budget of the Office for Veterans’ Affairs. Worse still, over half this year’s £16.4 billion defence equipment budget is revenue-based for equipment support and maintenance. This revenue cut is the Achilles heel of defence plans. No other Whitehall Department is projected to have a cut in day-to-day spending between now and 2024-25. The Defence Secretary should never have agreed it.

This defence review and the defence and security industrial strategy announce nothing new that Ministers are doing to get a grip of the MOD’s budget failings and to make the most of this big, one-off opportunity from the extra funding. So I say to the Minister: get to grips with the budget, consider the concerns raised, rethink the plans and report back to Parliament before the end of June. Britain was promised better, Britain deserves better and Britain needs better from its Defence Department.

Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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Before I call the Minister, I should tell the House that there will be an initial time limit on Back-Bench speeches of four minutes, but that will reduce quite soon to three minutes.

16:30
James Heappey Portrait The Minister for the Armed Forces (James Heappey)
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I thank the shadow Secretary of State for the tribute he paid to the Duke of Edinburgh—one with which I very much agree, and I know all of my colleagues in the Ministry of Defence do too. The military are taking great pride in their preparations for his funeral on Saturday, where they hope to give him the send-off he deserves.

I welcome this debate. We live in a new age of systemic competition where information, data and technology shape conflict every bit as much as ships, tanks and fighter jets. Military hardware can be undermined by cyber-attacks or by the severing of undersea cables, while the use of proxy forces and other covert and deniable activities makes it harder to determine when the threshold of war has been crossed. So we have to think about defence differently.

“The Integrated Operating Concept 2025”, published last year, changes the way we think about our response to conflict. No longer can we have a contingent force sat in the UK waiting for the fight. Instead we must be operating persistently around the globe in forging partnerships, building capacity, tackling insecurity and competing with our adversaries. Make no mistake, however: we recognise that we cannot be upstream of every potential conflict and that we must therefore not only be able to operate but able to fight.

We can all be nostalgic over the force structures that won the wars of yesteryear. Undoubtedly there is a comfort in looking out of the window and seeing row upon row of the capabilities that have kept us safe in the past. But as surely as hoof became wheel and sail gave way to steam, we should all be clear that technology is moving on quickly and industrial capabilities will no longer get the job done alone. We have a duty to the British men and women of our armed forces not to indulge in a game of military bingo, obsessed with the metrics of previous conflicts. Instead we must keep adapting to the threat, because the reality is that if we fail to change, we will be defeated.

Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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My hon. Friend talks about adapting to the threat. We have the technological advantage in Afghanistan, yet Afghanistan has been seen as a failure—something he is more familiar with than many in this House. Now that the United States has declared that it is going to withdraw its troops, could he confirm what will happen to the British troops that are based there?

James Heappey Portrait James Heappey
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As the shadow Secretary of State noted, my right hon. Friend the Secretary of State is not able to respond to this debate in person because he is at the meeting of the North Atlantic Council, along with my right hon. Friend the Foreign Secretary. The decisions on this are being taken this afternoon in Brussels. I hope that my right hon. Friend will forgive me if I do not pre-empt that, but I am certain that either the Defence Secretary or the Foreign Secretary will want to notify the House with appropriate urgency if and when such a decision has been made.

John Spellar Portrait John Spellar
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The Minister was slightly dismissive of looking at the arrays of traditional vehicles. What does he think is now massing on the borders of Ukraine as a direct challenge to NATO?

James Heappey Portrait James Heappey
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If the right hon. Gentleman will allow, I will make some progress with my speech, because I had foreseen that such challenge may come.

Over the past 20 years, as we have been engaged in Iraq and Afghanistan, our adversaries have been watching and learning from how insurgent forces, hopelessly over- matched in a conventional sense, have still been able to impose enormous costs on our military and the militaries of our allies. There has been no sentimentality in the way that they have accelerated into new domains and experimented with new technologies.

The Defence Command Paper captures that reality. Last November, my right hon. Friend the Prime Minister laid the groundwork for the modernisation of our forces by granting defence the most generous settlement since the cold war, with a commitment to spend £188 billion on defence over the coming four years—an increase of £24 billion. Our Command Paper has taken that investment and used it to deliver a more technologically advanced, better integrated and therefore more deadly force that will underpin our nation’s firepower in this new age of systemic competition. Inevitably this has meant some hard choices, but it is worth reminding ourselves, especially given the rather pessimistic view of the inventory set out by the shadow Secretary of State, what is actually still in the inventory.

At sea, we have the best carriers, air defence destroyers and hunter-killer submarines in the world, and our Navy will be enhanced further by the best anti-submarine warships and new general purpose frigates already under construction at Rosyth and on the Clyde. The Royal Navy’s fleet is growing for the first time since the cold war and, with the renewal of our continuous at-sea nuclear deterrent, makes us the foremost naval power in Europe.

In the air, we will have updated Typhoons, brand-new F-35 Lightning stealth fighters, new unmanned systems capable of striking remotely and massive investment in the next generation of fighter jets and swarming drones.

On the ground, while our Army will be leaner, it will also be more integrated, more active and more lethal—pound-for-pound the most innovative and effective in the world, able to make the most of new Ajax vehicles, revamped attack helicopters, brand-new Boxer armoured fighting vehicles, state-of-the-art air defence, long-range precision artillery and new electronic warfare capabilities. It has taken far too long to get these updates, but we are going to have the best-equipped Army in Europe by the end of the decade.

Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I know that the Minister is a friend of Northern Ireland, but recruitment in Northern Ireland has been at its highest level and recruitment to the Territorial Army has maxed out at this moment in time. Can the Minister give an assurance that extra recruitment and places will be made available for Northern Ireland, because more TA soldiers could be recruited?

James Heappey Portrait James Heappey
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The hon. Gentleman is entirely right that Northern Ireland is a rich recruiting ground for people wanting to serve in our armed forces, and especially our reserve. The reserve has an important part to play in the plans the Army, Navy and Air Force have for the future, and I have every expectation that we will be able to extend increased opportunity to Northern Ireland. The detail of that has yet to be confirmed, but I hope that within the next couple of months the hon. Gentleman will get a more detailed answer to his question.

Bob Stewart Portrait Bob Stewart (Beckenham) (Con)
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The Minister has outlined a concept predicated on the armed forces fighting an all-out war—a war where no holds are barred and we use everything. I get that; I understand grey-zone thinking—I am a strategist, too; I read it in great detail at university. However, for 70 years we have never fought anything like such a war; instead, we have had limited operations, we have had counter-insurgency operations, and we have had peacekeeping and peace- making, and this Government are preparing to cut the very people—the lifeblood—that carries out such operations, and that really worries me.

James Heappey Portrait James Heappey
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I thank my right hon. and gallant Friend for his intervention, but I do not agree with his analysis. In this part of my speech I am setting out the conventional war-fighting capabilities because the shadow Secretary of State set out a very pessimistic view of what they would be, but the reality is that the key change being made through the integrated review and Defence Command Paper is to enhance the capabilities my right hon. Friend rightly stresses will be in most demand as we address the challenges of tomorrow, and they are the ones that exist below the threshold of conflict. If he will indulge me, in a couple of minutes he will hear some of the things that I think might answer his question in more detail.

That is why we are investing heavily in the national cyber force, bringing together the resources of the Ministry of Defence and the intelligence community to deceive, degrade, deny, disrupt and destroy targets in and through cyber-space. It is also why we have established a new space command that will enhance our military surveillance and communication capabilities from space, assist in the co-ordination of commercial space operations and lead the development of new low and high orbit capabilities.

Moreover, we know that the threats to UK interests, both in space and in cyberspace, are not just from ones and zeroes. Our adversaries are investing in capabilities that put our undersea fibre-optic cables and our satellites at physical risk as well, so we need the ability to protect and defend our interests in the depths of the oceans and in the heights of space.

Nor are we alone in seeking to modernise. Our adversaries as well as our allies are making rapid headway, and some of the most cutting-edge capabilities are now commercially available, meaning that the highest grade technology is no longer the preserve of the best resourced militaries. So we are investing to stay ahead of the curve and recover our technological edge, putting aside at least £6.6 billion for research and development to supercharge innovation in the next generation of disruptive capabilities, from directed energy weapons to swarming drones.

But it is not just about what you’ve got; it is what you do with it. I have already set out the vision of the integrated operating concept, and over the next year or two the Ministry of Defence will be expanding our forward presence around the world as we shift from a contingent force waiting for the fight to one that operates and competes constantly. In the land domain, some of our most effective work is with small specialised infantry teams developing the capacity of partner forces in the parts of the world that cause us concern. We are reinforcing that success through the creation of the special operations-capable rangers and thus doubling the size of our partnering force. Our fighting brigades, meanwhile, will move to higher readiness so that they can deploy and operate more quickly. They will also gain capabilities that allow them to engage their enemy at greater range, thus reflecting the lessons on close combat learned from recent conflicts in northern Syria and Nagorno-Karabakh.

Tobias Ellwood Portrait Mr Ellwood
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I need to clarify the difference between what the rangers will do and what our Royal Marines do, because the Royal Marines are concerned that they are being put out of a job. Everything that my hon. Friend has just described could be done by the Royal Marines. Let us take an example in Mozambique. Were we to put this rangers brigade in, who would replace them after five or six months? Where is the endurance capability that our armed forces need to provide?

James Heappey Portrait James Heappey
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I am afraid that my right hon. Friend is not right in what he thinks the rangers will do. The distinction is that 16 Air Assault, the Parachute Regiment and 3 Commando Brigade, as high-readiness contingent forces who are there to fight at short notice in hostile contested environments such as the ones he describes, still do exactly that from the air or the sea, depending on whether it is 16 Air Assault or 3 Commando. The rangers will be a special operations-capable partnering force designed to train, advise, assist and accompany partner forces in conflicts around the world, not to be a fighting force in and of themselves. That distinction is one that we have observed from the success of the US Green Berets, which have been very successful, and we are looking forward to having that as part of the toolkit for the UK armed forces in the future.

Needless to say, in increasing readiness and being able to operate more quickly, there is still a requirement for war-fighting mass, and that leads to a long overdue revisiting of what we ask of our reservists. I am very much looking forward to the publication of the reserve forces 2030 review, and I am confident that in the discussion that follows we will come out with an exciting proposition of what it means to serve in the reserve and what value that can add as we generate war-fighting mass.

In the air, we have created a joint squadron with Qatar, and we are looking at how this concept can be extended further with other partner air forces, as well as offering world-leading flying training to helicopter and fast jet pilots from our allies around the world. Meanwhile, investment in the P-8 maritime patrol aircraft, in the E-7 airborne command and control, in the Protector uncrewed surveillance and strike platform and in a network of airfields from which we can operate the full range of RAF capabilities, enhances our capacity to understand our adversaries, find them quickly and strike them wherever they are, all around the globe.

At sea, we have had forward deployed ships in the Caribbean and the Falklands for a number of years, and I can announce to the House that last week HMS Trent arrived in Gibraltar, where she will now be permanently based in order to service the UK’s interests in both the Mediterranean and the Gulf of Guinea. Later in the year, a further offshore patrol vessel will sail for the Indo-Pacific, where she will also be permanently forward based. The maritime forward presence is further enhanced by the restoration of our high-readiness global carrier strike capability and the new littoral response groups providing an at-sea high readiness amphibious response force on NATO’s northern and southern flanks.

However, let there be no misunderstanding: we are clear-eyed on the realities of geography. We are a Euro-Atlantic power and deeply invested in the security of Europe. NATO is the cornerstone of our national security, so our priority is our partnership with other Euro-Atlantic nations and the security of our own backyard, but it is naive in the extreme to think that that means we can ignore insecurity and instability on Europe’s southern flank in sub-Saharan Africa and the middle east.

The UK interest is threatened by violent extremism in the Sahel, the Lake Chad basin and the horn of Africa, and so too is it threatened by Russian proxies massing in Libya and Syria, but those are not problems that would be solved by 10,000 troops on the ground in any one of those places. The lessons of the last two decades show that we must work intelligently to tackle instability upstream and through regional partners. We simply cannot muscle our way to a solution in those places with all-out hard power. Our contribution on those conflicts in the future must be smarter and must develop a capability that will endure even after our mission is inevitably over.

We should also be clear that meeting our global trading ambitions requires both the capacity and the will to protect our sea lines of communication and the wider UK interests in the Indo-Pacific. The Opposition have wrongly characterised that as a switch in emphasis from the Euro-Atlantic to the Indo-Pacific. Instead, it is a recognition that we have the capability, the capacity and the political will to flex hard power into a part of the world where the UK’s strategic interest is growing quickly, so that we can strengthen our alliances, protect our interests and promote adherence to a rules-based international system.

The integrated review and the Defence Command Paper represent the boldest change in foreign, defence and security policy for 30 years, and it is entirely right that we are here debating them today. I know that there is disagreement on both sides of the House about some of the judgments that we have made, but the requirement is to produce a force that is credible: one that can actually fight in the complex and highly digitised battlespace of tomorrow. Some capabilities have run their course, and there can be no room for sentiment in keeping them when they simply are not relevant any more.

Ultimately, this all comes down to two key questions: first, are we offering the men and women of our armed forces exciting opportunities and the equipment they deserve; and secondly, and most important, does all this make the UK safer? I have already looked servicemen and women in the eye and explained to them our vision for our armed forces and the way they will operate, and so too have my ministerial colleagues and the senior military leaderships of all three services. Our people get this: they understand the need for change, and they want it. The reality is that they can see, and I can see, that because of this transformation, our armed forces will be stronger, more capable and therefore better able to protect our country in the decades ahead.

16:47
Stewart Malcolm McDonald Portrait Stewart Malcolm McDonald (Glasgow South) (SNP) [V]
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I join the Minister and the shadow Secretary of State, the right hon. Member for Wentworth and Dearne (John Healey), in paying tribute to the Duke of Edinburgh. I pass on my condolences and those of my party to the royal family, and to those in the armed forces for whom he has undoubtedly been an inspiration, having left behind such a long and distinguished career as a member of the forces. As the Minister rightly says, they will be preparing to give the late Duke of Edinburgh the send-off he rightly deserves, and we wish the armed forces the best in their preparations for that.

Like the shadow Secretary of State, I think it would be normal to decry the fact that the Secretary of State has not responded at the Dispatch Box, but I too entirely understand why he has to be at the NATO meeting on Ukraine. It is worth pausing to reflect on the fact that here we sit, in the north-west corner of Europe, in relative peace, while an ally in the south-east corner of Europe, already annexed and at war, faces a further military build-up on its border. The Scottish National party supports entirely Ukraine’s right to its territorial integrity.

In every defence session we have had—whether Question Time, debates or a statement—all Members across the House have rightly thanked the members of the armed forces who have done so much for us during the pandemic in terms of resilience and, not least in more recent times, the roll-out of the vaccine, which we are all desperate to receive. They have put in some shift, as we would say in Scotland. It is curious that the Government have seen fit to thank the armed forces by telling them that they are going cut up to 10,000 places.

The context here is important, and not just that of the pandemic. Madam Deputy Speaker, you will know—not just as a keen watcher of political events in Scotland, but as a proud Scot yourself—that when it comes to the size of the armed forces, and in particular the things the Government say about them, many promises are made to Scots. That has been the case for quite a few years now, and each and every time, this Conservative Government renege on them. I have mentioned that many times before and I am afraid I am about to do so again.

As the Minister and the Government have confirmed—the Minister reiterated it today—that the cut will go ahead, may I ask the Government to outline to the House, if not today then at some point, and to the people of Scotland, to whom those promises were made, what the impact on the personnel footprint in Scotland will look like? Prior to the independence vote a few years ago, we were promised the permanent stationing of 12,500 Regular troops in Scotland. The Government have never come close to meeting that promise and that target, and it is now obvious that they have no intention of ever trying to, so what will the permanent footprint look like after the cut of up to 10,000 troops is realised?

More broadly on context, it is curious and entirely objectionable as far as I am concerned that the Government would announce such a cut in conventional capability— not just in personnel, but in many of the platforms the shadow Secretary of State mentioned—when they announced their intention to allow an increase in the nuclear weapons stockpile. Now, we could probably have an entire debate on that one issue, but given that this debate is about the armed forces, let me just say this. I am with the Chair of the Defence Committee, whose analysis was spot on. He and I do not agree on the nuclear deterrent and its presence, but he described that increase as an attempt to deflect attention from—indeed, it is a sweetener to allies to cover up for it—the fact that we are having such grave cuts in conventional capability. That is fooling no one.

I plead with the Government to drop the fallacy of trying to play one capability against the other. It is important that we invest in cyber, of course. The new threats that the Minister outlined are real and the Government have our support in trying to meet them, but the shadow Secretary of State was also right: people keep the peace, people deliver resilience, and people put covid jabs into arms—not drones, and certainly not nuclear weapons.

It is curious to see the Government now framing this as though those of us who are against the cuts are somehow old fashioned, and are incapable of assessing modern-day threats and developing an argument on how to meet them. The Minister said earlier that we must not—I think this was the phrase—play “military bingo” when it comes to developing the capabilities needed to meet the threats faced. Well, if it is a game of bingo, like the shadow Secretary of State I would like to read some words from the caller, and the caller is the Prime Minister. During the last election, he said that

“we will not be cutting our armed services in any form.”

During the last general election, he also said:

“We will be maintaining the size of the armed services”.

Why did he say that if he had no intention of delivering? Why did he say it if he knew it would not come to pass? Indeed, the Government have developed that habit when it comes to promises on troop numbers. As I said at the start of my speech, is it not curious that this is how we thank our armed forces after the year they have had, committing themselves to fighting the pandemic?

It is also worth noting that, just after that Defence Command Paper came out, we learned via the media—not via a statement to Parliament or anything we could read in the integrated review paper or its associated documents —that the Office for Veterans’ Affairs is to see a budget cut of up to 40%. It already has a tiny budget—of, I think, around £5 million—and it will be cut. That happened in the same week as the announcement, so why did not one single Minister from a Government who claim to be on the side of veterans come to announce that funding cut to the House? It is also worth noting that that announcement—or the news of the cut, rather, because there was no announcement—came in the same week that the Scottish Government announced that they would spend an extra £1 million on support for veterans who find themselves in Scotland.

The Government should cancel the planned cut in troops, and if that costs more money, so be it. Spend it, invest it. We could come up with a million ways in which the MOD could spend its money better, but I have always said to the Government that when they need more cash from Treasury Ministers and when that is sensible, they would have our support. Indeed, they would have the support of many around the House who do not think that this is a wise way to proceed.

We have talked a lot about how we treat the armed forces, and there is a lot of cross-party agreement on that, but amazingly, we cannot seem to get the Government to act. One thing we should do first is prise from the recruitment process the claws that Capita has sunk in so deeply. It is an expensive mess that does nothing for recruitment. The best people to do recruitment are the members of the armed forces themselves, not the share- holders of Capita, who are growing fat on a failing recruitment system.

Let us have a commission to look at pay and conditions. We know from recent National Audit Office reports that only 45% of serving personnel have any sense of job satisfaction—a staggeringly low figure. We also know that less than half of those living in armed services accommodation are happy with that accommodation. How can it be beyond the wit of the Government or the House to get those two things fixed? We have proposed in the past, and I propose it again today—I am sure you will remember, Madam Deputy Speaker, the Bill on the subject published in the last Parliament by my hon. Friend the Member for West Dunbartonshire (Martin Docherty-Hughes)—the introduction of an armed forces representative body that could be placed on a statutory footing and represent the interests of members of the armed forces to the Government when it comes to pay and conditions. At the moment, they have no such body. They rely on Members of Parliament so to do, and with satisfaction figures as low as they are, the answer clearly does not lie in lobbying MPs whom the Government are ignoring.

It is right that we are having a debate on the specific issue of cuts in the number of members of the armed forces and in other conventional capabilities. We will have plenty of time to dive into some of the other issues in the integrated review, I am sure. As I made clear when the Secretary of State came to the House for the publication of the Defence Command Paper, there is much in there that we understand and indeed support, but there are some things that we do not and cannot support. Such egregious cuts to conventional capability, especially service personnel, are something we cannot support.

When the Minister winds up, I wonder whether he would clarify two things. First, as the Government seek to pivot, in addition to their geographic pivot to the Indo-Pacific region, and to place more emphasis on cyber and on drones and other unmanned devices in theatres of conflict, and as they seek to do more to protect not just people, but data, which the Government rightly identify as an attack surface, where will be the proper democratic and human oversight? Where will be the ideas from Government on how we lead efforts internationally to design treaties and rules of engagement when it comes to cyber, the use of unmanned drones and the protection of data? That debate is woefully lacking. In fairness, it is lacking not just here but in the entire western democratic sphere. We have not heard much from the Government about how they will seek to put that right, and I think it is incumbent on them to bring forward a strategy on those things.

Lastly, if you will allow me, Madam Deputy Speaker—this relates more to current events than necessarily to the subject of the debate—might I tease out from the Government a clarification with regard to Ukraine? The Secretary of State is at the meeting of the North Atlantic Council right now, and rightly so. Will the Government clarify whether he intends to give a statement to the House following that meeting, and will he clarify what implications, if any, the current escalation in tensions might have for Operation Orbital, which is ongoing in Ukraine with United Kingdom armed forces?

The Minister said that he was able to look members of the armed forces in the eye and convince them of the merits of cutting jobs and places among them. That is good for him, but he still has a job to do in convincing voters—voters to whom he and his Government made promises, not just in the general election in 2019, but all those years ago ahead of the independence referendum. I am not sure he could look voters in the eye with the same degree of confidence that he came to the House and espoused today. I am afraid this is just one more example of Scotland’s security being ill served by a Government who do not place high regard on their own interests.

Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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We now have a formal time limit of four minutes. I call the Chairman of the Defence Committee, Tobias Ellwood.

17:01
Tobias Ellwood Portrait Mr Tobias Ellwood (Bournemouth East) (Con)
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I will not tire of saying this, but I feel there is a 1930s feel to the world today. The threat picture continues to grow, diversify and become more complex. We live in extremely dangerous times, and the integrated review confirms that—as did the Prime Minister when he answered questions at the Liaison Committee recently. Russia and China will continue to become more assertive; democracy will continue to decline across the world; the new domains of cyber and space pose ever greater challenges to our security, as does the threat from terrorism, not just in the middle east but now in Afghanistan and Africa; and the wider consequences of climate change will only grow.

During the cold war, defence spending was at 4% of GDP. Few would disagree that the threats today are different, but they are arguably more dangerous and more unpredictable, yet we remain on a peacetime budget of just 2.2%. It is simply impossible for the MOD to meet all the obligations spelled out in the integrated review, hence the sweeping cuts that are now taking place across our defence capabilities, something that has not gone unnoticed by either our allies or our adversaries.

The new US Defence Secretary will shortly be in town. I am sure that No. 10 will gloss over General Austin’s decision to visit Berlin and Brussels before London. We should read the signals: our special relationship requires work. General Austin’s public message in London is likely to be: “Well done on the integrated review. We like the global Britain thing and we welcome your investment in special forces, cyber and space resilience.” But in private, he will be more candid and is likely to say something very different: “Your Navy is now too small. Don’t cut your tanks, armoured fighting vehicles and 10,000 troops; you might be needing them sooner than you think. And please don’t reduce the F-35 order from 138 originally down to 48.” Why? Because the next decade is going to become very busy indeed.

Indeed, look at what the integrated review tries to achieve—help shape the international world order and deploy UK soft power; be a force for good for human rights; tilt to the Indo-Pacific; step up in Africa and the Gulf; lead NATO in Europe; stand up to China’s competition and Russia’s aggression, and create a space force and invest in cyber resilience. That is a formidable charge that we simply cannot achieve under a peacetime defence budget of just 2%, so I have huge sympathy with my hon. Friend the Minister for the Armed Forces, who is in the invidious position of having to make such tough decisions. We have heard about the impact: cuts to our frigates, with capability gaps because the replacement equipment is not ready in time, and similar effects on our land warfare capability and the RAF.

However we look at it, this is a dramatic cut in our conventional defence posture that will limit the UK’s options in stepping forward to assist in conflict prevention, stabilisation, peacekeeping and nation-building skills—things that we have been so good at in the past. I make it very clear that the real threat will come from China—not directly through going to war, but through our being nudged out from favoured nation status across the world. We need to re-engage with our allies, and that requires force presence and upstream engagement. We can do it only with the kind of hard power and the size of force that we had during the cold war.

17:05
Tony Lloyd Portrait Tony Lloyd (Rochdale) (Lab) [V]
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May I place on record my sympathy for the family of Cheryl Gillan, our colleague? She was not in my political party, but she was somebody whom I both liked and respected.

Today’s debate is very important; I am grateful to my right hon. Friend the Member for Wentworth and Dearne (John Healey) for introducing it from the Front Bench. The Minister for the Armed Forces was absolutely wrong to pose it as technology versus the size of our armed forces. That is the wrong calculation to make. It is not about sentimentality, for those of us who have had the opportunity to see our armed forces in operation around the world, in conflict zones and in peacekeeping roles. They do a magnificent job—pound for pound, they are probably among the very best-trained and best operational armed forces on this planet—but they need numbers. We saw that in places such as Sierra Leone, where the numbers of people mattered. We saw it with the rotation of troops in Afghanistan, when our troops came back tired from their tours of duty—too tired, on some occasions. We need numbers there.

To pose the question as being about numbers of Army personnel versus technology is simply wrong. Yes, of course we need investment in the technologies of the future, in cyber, in space and in deep ocean activities, but that does not preclude the need for numbers in our armed forces. The significant reduction that my right hon. Friend pointed out—some 35,000 fewer personnel in our Army by the end of the process—is difficult to comprehend, because it means that we will end up making hard choices.

I put it to the Minister: will those hard choices mean that we cannot engage in a Sierra Leone of the future? Will they mean that our armed forces cannot fill the £17 billion-plus equipment deficit or go into conflict zones properly equipped? Those would be unacceptable hard choices. Will they mean that in future, because of our lack of personnel, we cannot do things we ought to do? As the right hon. Member for Bournemouth East (Mr Ellwood) said, they are choices that we simply should not be making in this period of enormous uncertainty around the world. I appeal to the Minister to appeal in turn to his Government colleagues to think very hard about these cuts.

At the height of the cold war and as we began to come out of it, one thing we learned was that making the world secure for our armed forces was also making it secure for those whom we saw as our adversaries. President Biden has offered President Putin a summit. I have no truck with President Putin and the malign way in which he operates his Government, but we do have to talk. We have to begin to see whether there is any capacity —there may not be—to revive the treaties on conventional forces in Europe and on nuclear deployments.

In the end, making the world a safer place, at least in those areas of activity, will make a material difference in easing some of the pressures on our armed forces and what they do. That is not a pipe dream and it is not pious; it is common sense to say, “Yes, we need the right numbers in our armed forces and we need technologies, but we also need to work to create a safer and better world.”

17:10
Julian Lewis Portrait Dr Julian Lewis (New Forest East) (Con)
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May I warmly endorse what the hon. Member for Rochdale (Tony Lloyd) just said about our late, dear colleague Cheryl Gillan?

It is often said, in the military context, that quantity has a quality all its own. That is perfectly true, but it does not mean that the strength of the armed forces should be measured by their size alone. A revolutionary advance in military technology in the hands of a few can defeat almost any number of assailants; think of the Somme and the mass slaughter of troops by limited numbers of machine guns with interlocking fields of fire—only other new technologies eventually broke that dreadful stalemate. After the end of the cold war, the threat picture finally shifted away from Europe and towards expeditionary warfare, based on carrier-strike, which is air power from the sea, and amphibious capability, which is land power from the sea. Such traditional technologies are still essential for those sorts of campaigns against opponents who are no match for us militarily. Yet against advanced peer opponents armed with hypersonic anti-ship missiles, for example, traditional assets such as surface ships are potentially very vulnerable. As we know, the pendulum has now swung back from countering insurgencies and their sponsors to state-on-state confrontation with major military powers.

As has been pointed out, at the root of our defence dilemma is one inescapable limitation: between 1988 and 2018, defence expenditure halved as a proportion of GDP. The most welcome pledge of an extra £16.4 billion spread over a four-year period should fill a “black hole” in the equipment budget and facilitate investment in critical new areas of technology. What it will not do, sadly, is prevent serious cuts in conventional armed forces. An estimated 2.2% or 2.3% of GDP defence budget is well short of the 3% recommended by Defence Committees past and present, let alone the 4.5% and above regularly allocated during the cold war years. Yet, even if all our dreams came true on the size of the defence budget, we would still be at the mercy of nuclear blackmail and attack if we had not voted in July 2016 to proceed with the renewal of the Trident missile submarine fleet. Given that the right hon. Member for Islington North (Jeremy Corbyn), a former Labour leader, and I have debated such matters good-naturedly for more than 20 years and he is up next, let me conclude with reference to the Government’s announcement that they will no longer reduce the total of our nuclear warheads from a maximum of 225 to a maximum of 180 by the mid-2020s. Instead, they will set a new overall ceiling of 260. This is predictably being denounced as a 40% increase; but the cancellation of a reduction is not an increase. Most probably, it is a recognition that advances in anti-ballistic missile technology might tempt an aggressor to think—probably mistakenly—that he could avoid a devastating response. Why, then, raise the theoretical maximum from 225 to 260? The Government have not said so, but my guess is that it is to cover any temporary overlap when the current generation of UK warheads are replaced by their successors. We have always followed a policy of minimum strategic deterrence, and long may we continue to keep ourselves safe by doing so.

17:14
Jeremy Corbyn Portrait Jeremy Corbyn (Islington North) (Ind) [V]
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This is an important and obviously very timely debate—timely because of the Government’s review of security needs for the future, and because of the vote in the other place last night on the Overseas Operations (Service Personnel and Veterans) Bill. The Government were defeated over issues of ensuring that our political system, our Ministry of Defence, are held to account when allegations of serious offences such as torture or genocide are made against any British forces. We should never put ourselves above the law and should surely support international law, which is what all Governments have said they absolutely do.

The review that has just taken place seems to miss out a number of very important things. But the headline figure was the one about nuclear weapons. Contrary to what the previous speaker has just said, there is an increase in the number of nuclear warheads, which will go up to 260. That is contrary to our obligations under article 6 of the nuclear non-proliferation treaty, originally conceived by the Labour Government of the 1960s.

As one of the declared nuclear weapons states, we are required to take steps towards nuclear disarmament. The Government are proposing to move in absolutely the opposite direction—not just by increasing the capacity, the number of warheads and their firepower, but apparently by changing the strategic basis on which they may be deployed. They seem to be moving away from the “no first use” concept towards using them as a threat—or rather, when they believe there is a threat that has to be met.

Surely we ought to be joining the rest of the world in seeking a global ban of all nuclear weapons, rather than this huge expenditure on weapons that everyone obviously hopes will never be used and that, in effect, do not provide us with any credible form of defence on the real security issues that we face at present.

The coronavirus crisis has shown us how dangerous this world is when it comes to contagious diseases and when it is so divided by the poverty of the majority of the populations of the planet against the minority—and, of course, environmental disaster is coming down the line. Surely we need a strategic approach that deals with those issues—one that protects us from cyber-attacks, obviously, and ensures that we look at the causes of war and that we do not cut overseas aid expenditure but instead increase it, where appropriate, to improve developments around the world and cut down on the enormous gap between the world’s richest and poorest. Because the motor behind the conflicts of the past 30 years has often been human rights abuses, political instability and a fight for resources all around the world.

The last thing I shall say in the few seconds I have left is that instead of reducing the numbers of uniformed servicepeople, as we are, we should be looking at their pay, conditions and treatment over the past 10 years and recognising the enormous work that they have done in peacekeeping operations, as others have pointed out, as well as dealing with crises such as the Ebola outbreak in west Africa, where they performed heroically. Surely real strategic thinking is about making the world a more peaceful and safer place.

17:18
Liam Fox Portrait Dr Liam Fox (North Somerset) (Con)
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Defence reviews and the subsequent spending priorities are not abstract events but relate to identifiable threats. Today the most serious threat to British and European security is posed by Russia. With the main aims of its modernisation programme over the past decade largely met, and with a sophisticated and ruthless cyber-capability and a huge nuclear arsenal, Russia is militarily stronger today than it has been for many years. Just as importantly, with its intervention to support the Assad regime in Syria, its continued occupation of Georgian sovereign territory and the brutal and illegal annexation of Crimea, with its continued threat to the security and sovereignty of Ukraine, there can be little doubt about the Kremlin’s willingness to deploy its military strength in pursuit of its national agenda.

If, in the face of that threat, we are to have a nuclear deterrent, as I believe we must, it must be credible. The increase in the warhead cap to 260 needs to be seen in the context of the French having declared numbers of around 300, the United States 3,800 and Russia some 6,800. I congratulate the Defence Secretary and his ministerial team on having the courage to take this decision.

Russia’s gangster regime under Vladimir Putin has poisoned and murdered opponents on its own territory and overseas, including on UK soil. It carries out a range of hostile activities, including information warfare and cyber-attacks aimed at democratic western states. In July, the United States, Britain and Canada accused a Russian hacking group linked to Russia’s SVR foreign intelligence service of trying to steal covid-19 vaccine research. So it is right that we increase investment in our own cyber-capability. However, cyber-attacks are the tip of the iceberg in Russia’s persistent attempts to penetrate western security, institutions and infrastructure, and it is sadly aided and abetted in some of its strategy by the policy of some of our own allies. I refer in particular to the German attitude towards the Nord Stream 2 project. That pipeline is a Russian geopolitical project intended to divide Europe and weaken European energy security. As President Biden put it, Nord Stream 2 is “a bad idea” for Germany, for Ukraine, and for our central and eastern European allies and partners.

We face many other Russian threats, including to undersea cables, that we simply do not have time to consider today, but the most urgent is the continued Russian aggression towards Ukraine. Russia’s military aggression against Ukraine in 2014, which was planned in advance, resulted in around 10,000 fatalities and over 23,000 people wounded, according to the UN. Over 1.5 million residents of Crimea and Donbass are now internally displaced persons after being compelled to leave their homes—and this on the edge of Europe. Today, large Russian military movements towards the eastern Ukraine border have been widely reported, including the movements of Iskander short-range missiles.

We must act with our allies now to stop Russian aggression before the situation spins out of control, as it so easily could. That is what our political, economic and military strength is for; that is what the Government’s priority must be.

17:21
John Spellar Portrait John Spellar (Warley) (Lab)
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First, may we record that on this day 70 years ago the great trade union leader, Labour Foreign Secretary and patriot Ernest Bevin died? Along with Prime Minister Clement Attlee, he created NATO, the Marshall plan and Britain’s independent nuclear deterrent—all, of course, opposed at the time by the ultra-left, in and out of the Labour party. That is why it was so welcome today that the speech introducing the motion was made by my right hon. Friend the Member for Wentworth and Dearne (John Healey), getting back to those Labour values, not ultra-left communist and Trotskyist delusions but real Labour values—supporting the defence of our country, demanding proper wages, conditions and equipment for our brave men and women in our armed forces, and supporting our own defence industry.

It is a shame that the Secretary of State is not here today, because frankly, his response to some of the criticisms recently has been rather petulant, and I was hoping we were going to get a reset back to a more reasoned debate. We do, of course, understand why he is not here—because of the crisis in Ukraine. Russia, in full soviet mode, is massing armour on the borders of Ukraine, having previously undertaken similar exercises on the frontiers with the Baltic states, and a massive re-equipment and militarisation of Kaliningrad. We also have to recognise, in some of those esoteric arguments that take place about quality versus quantity—we had some of that from the Minister—that mass has a quality of its own, and therefore we undermine that at our peril.

Yet in the face of this, the Government are running down our defences, both in armour and by cutting the number of troops, and also in other platforms, as was rightly identified by the right hon. Member for North Somerset (Dr Fox). At the same time, we have to recognise that previous Conservative Governments have had form in this respect. In the interwar period, the 10-year rule of anticipating no conflict in 10 years, driven by the Treasury, ran down our defences. That not only reduced our equipment and the number of troops, but sent a message that we lacked resolve, so we were lacking resources and resolve. Under Options for Change, we had a massive rundown of our forces. Soldiers were actually made redundant—an appalling problem, which took a long while to redress.

The removal of HMS Endurance from the Falklands—the withdrawal of resources—sent a very clear signal to the Argentine junta that we lacked resolve, and we know the consequences of that. We had the withdrawal from Germany. My right hon. Friend the Member for North Durham (Mr Jones) and I pointed out to Ministers at the time that they would not save any money, and now they are having to go back there. They are taking the forces for granted and running down their facilities.

We all recognise the need to review the increasing requirements for operating in the grey zone and for tackling challenges in cyber-space, but in the earlier stages of the review it was posited that changes had to be cash-neutral, so that dealing with those problems had to be at the expense of conventional military capability and of upgrading. That was a mistake and it should be redressed now.

17:25
Bernard Jenkin Portrait Sir Bernard Jenkin (Harwich and North Essex) (Con)
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I very much share the concerns expressed by the right hon. Member for Warley (John Spellar), but I very much hope that we maintain minimum recoverable capability in all these fields, because the new capabilities that have been brought in by the integrated review are equally or more important than the reductions in the overall size of the armed forces that we have seen. The big surprise in the review was the announcement of the increase in the warhead cap.

I want to reply very directly to the right hon. Member for Islington North (Jeremy Corbyn). May I remind him that, on 18 July 2016, when he was leader of the Labour party, the Government got through the House the maingate of the renewal of the Trident submarines on a vote of 472 to 117? There is no doubt, therefore, that the strength of consensus in this House does not reflect the views of the then leader of the Labour party.

John Spellar Portrait John Spellar
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The hon. Gentleman will recall that that vote was taken about five years later than it should have been because of dithering by his own Government.

Bernard Jenkin Portrait Sir Bernard Jenkin
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I think the coalition had something to do with that. I warned David Cameron about that before we even went into that coalition.

The right hon. Member for Islington North accuses his own country of proliferating weapons of mass destruction, and suggests that we are somehow escalating our numbers, but he does not even mention the fact that, as my right hon. Friend the Member for North Somerset (Dr Fox) said, Russia has—what was it?—6,800 nuclear warheads. They are modernising every single weapons system that they have got. They are in breach of the intermediate-range nuclear forces treaty. That is escalation, and the right hon. Member for Islington North has nothing to say about that whatsoever.

We all know that the British people will support the United Kingdom’s continuous at-sea deterrent for as long as other nuclear weapons states are keeping their weapons and there are other proliferators around. We just need to remind ourselves what extraordinarily good value the continuous at-sea deterrent system actually is. The Library produced a report last month, pointing out that the annual cost of our continuous at-sea deterrent is just 1% of the cost of social security and tax credits—just 1%. So the idea that this is a Rolls-Royce system that we cannot afford is mythical. Nothing could buy us the security and influence that the continuous at-sea deterrent gives us.

The doctrine of deterrence is just as valid as it ever was. Has the right hon. Member for Islington North ever asked himself why major state-on-state warfare stopped in 1945? Well, I can tell him why: it was because nuclear weapons were invented and that kind of warfare became too costly, too destructive, to contemplate. Does he want to go back to that world by getting rid of nuclear weapons altogether? I hope not.

We just need to remind ourselves that our continuous at-sea deterrent can attack any target at any time, so it is always ready to respond to threats. Its location is unknown so it cannot be pre-empted. It does not require to be deployed at a time of international tension and crisis. The technology is tried and tested. It is not in breach of the nuclear non-proliferation treaty; it is completely compliant. It is a sovereign capability, which, if we had to use it, we would. No alternative system could possibly provide all these benefits at such good value, and that is why we should reaffirm our commitment to our nuclear deterrent.

Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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We now go by video link to Marie Rimmer, with a time limit of three minutes.

17:30
Marie Rimmer Portrait Ms Marie Rimmer (St Helens South and Whiston) (Lab) [V]
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The British military is currently engaged in its biggest ever—[Inaudible.]

Eleanor Laing Portrait Madam Deputy Speaker (Dame Eleanor Laing)
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Order. We cannot hear the hon. Lady. Shall we try audio only?

Marie Rimmer Portrait Ms Rimmer
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[Inaudible.]—proving once again that they are the ultimate emergency service.—[Inaudible.]

Eleanor Laing Portrait Madam Deputy Speaker
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Order. I am sorry, but we will try to come back to the hon. Lady later, because the sound quality means that we cannot hear what she is saying.

17:32
Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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The additional £24 billion in the defence resource needs to be recognised and comes after a number of years of challenging Budgets, not forgetting the £30 billion black hole legacy left in 2010. Along with the Defence Command Paper, it serves the vital need to respond to the ever-changing threats, ensuring a stronger and more secure Union. As a member of the NATO Parliamentary Assembly, I can confirm that it has been received very positively by our international allies.

The motion tabled by Labour expresses concern about the size of the Army. Having listened closely to the shadow Secretary of State, the right hon. Member for Wentworth and Dearne (John Healey), I would say that he can play his part, too, if he is genuinely committed in his support. I want to bring the House’s attention to a very local difficulty that the MOD is having in securing the long-term future of the St Athan base in my constituency. The Welsh Government are the landowners and have refused to extend the lease, in favour of a business park.

I ask Labour Members to influence their colleagues in the Welsh Government with regard to supporting the MOD’s plans to house a major Army unit at the site. I am concerned that the Welsh Government do not show the same interest in defence as the right hon. Gentleman does, and I ask for his help. The right hon. Member for Warley (John Spellar) talked about those on the left coming in and out of the Labour party, but it seems that they are alive and kicking in Wales.

The site has been subject to several initiatives. All have failed to materialise. The Red Dragon hangar, completed in 2005 at a cost of £113 million, for maintaining fast jets, was abandoned immediately on construction. The multibillion-pound private finance initiative tri-service technical academy was later cancelled on value-for-money grounds. Several plans to base a number of major Army units there have failed to materialise. To give credit to each Secretary of State since 2010, they have recognised the need to secure the future of that. The defence estate review in 2016 identified St Athan as their key site in Wales. The Welsh Government refused to extend the lease and anyone with local knowledge will know that the alternative sites suggested are wholly unsuitable. The result is that unless the Welsh Government negotiate with a common goal, the future of this base is precarious.

I wanted to get this situation on the record because I am concerned about the serious risks to the St Athan base. The site is hugely valuable to the armed forces and to the community that it is keen to support. In that spirit, I ask the shadow Secretary of State, the right hon. Member for Wentworth and Dearne, and his team to influence the Welsh Government. If they do that, they will, at the same time, improve the footprint of the Army and underline the fact that all parts of the UK play a prominent role in securing our Union.

17:34
Dan Jarvis Portrait Dan Jarvis (Barnsley Central) (Lab) [V]
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Our withdrawal from the EU, the rise of China and the threat posed by Russia has meant that the strategic context in which our armed forces operate has shifted hugely in the decade since I left. The professionalism, resilience and adaptability of those who still serve has not. The Defence Command Paper rightly describes our servicemen and women as “our finest asset”. It is therefore incongruous for the Government to be stripping back the British Army to a level not seen for 300 years.

While the number of service personnel is set to reduce, it appears that what they are expected to achieve will not. The integrated review does not suggest that we will draw down on any of our commitments. The UK will remain the leading European partner in NATO and maintain our responsibilities in the middle east and Africa, while at the same time expanding our role in the Indo-Pacific. In my experience, trying to do more with less rarely works. When the Prime Minister pledged to maintain the size of our armed forces, he was right to do so. We are now being told that size no longer matters because the threat has changed, but as I put to the Secretary of State last month, if the threat has changed so much, so quickly, what is to say that it will not change again? In response, I was told that any future proposals to increase manning would be supported, but of course, it is not that simple.

Retaining talent is far easier and more inexpensive than recruiting it—a principle that is especially true when applied to our service personnel. We would do well to remember that technology evolves; the one thing that remains constant is people. We should also remember that our people are among the very best in the world. They are our ultimate insurance policy. Recent history is littered with examples, from Vietnam to Afghanistan, when technological superiority did not bring about success. Kit and equipment will never be an adequate substitute for strategy and leadership.

To conclude, following the collapse of the Soviet Union, leaders and experts predicted a new period of global peace and prosperity that never materialised. Thirty years on, the world is now more complex, more dangerous and more unpredictable. No one can say with any confidence what it will look like in another 30 years. We live in uncertain times. There are no easy answers, only difficult questions, but now more than ever, Britain must aspire to show leadership. Cutting the one thing that, above all else, gives us our edge—our people—will be to the detriment of our national security and our standing in the world. This decision is short-sighted—

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Order. We have to leave it there; I am sorry, Dan. We will now return to Marie Rimmer.

17:37
Marie Rimmer Portrait Ms Marie Rimmer (St Helens South and Whiston) (Lab) [V]
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The British military are currently engaged in their biggest ever homeland military operation in peacetime: the battle against covid-19. For the past 12 months, they have set up testing sites and vaccine centres and even administered the jabs themselves. Our armed forces have proven once again that they are our ultimate emergency service. I do not wish to pre-empt the inquiry into the covid-19 crisis, but I imagine that there will be a lot of praise for our armed forces. They are logistics and crisis experts—the best we have as a nation. The Government should always draw on this expertise, yet under the defence review, numbers are being cut. Not only are the Government reducing numbers; they are giving our troops a real-terms pay cut.

Since 2010, our armed forces have been reduced by 45,000. The recent defence review cuts come on top of this decade of decline. The size of the Army will be at its smallest since 1714, despite our population being 10 times bigger than it was then. The Prime Minister and Defence Secretary have laid out their reasoning for these cuts. I support modernising our forces, particularly the investment in cyber, and I am glad that the new centre will be based in the north-west, but we do not need to do these modernisations at the expense of armed forces personnel. The Government can invest in future technologies while maintaining the size of our Army. The Prime Minister, the Defence Secretary and all Government Members stood on a manifesto that committed to not cutting the armed forces in any form, but, quite frankly, what was the point? Promises and commitments are broken on a regular basis.

The world is a dangerous place: Russia has amassed close to 100,000 troops on the border with Ukraine; Myanmar is under military rule and innocent citizens are being butchered by the state; China is becoming increasingly bullish towards its neighbours; and the covid-19 crisis and economic woes that go with it have the potential to topple democracies. Maintaining armed forces numbers is essential to our security at home and abroad.

Retired British generals have said that further Army cuts mean that the UK is no longer taken seriously as a military power, and that it would damage our relationship with the US and our position in NATO. Worse still, Lord Richards—former Chief of the Defence Staff—has warned that we almost certainly would not be able to retake the Falklands or prevent genocide like we did in Kosovo.

The next pandemic or crisis that our nation faces could be much worse. The Government should not abandon expertise when we do not know what is around the corner. Now is—

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Order. Sorry Marie; we have to leave it there.

17:40
Emma Lewell-Buck Portrait Mrs Emma Lewell-Buck (South Shields) (Lab)
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It is galling that time and again we hear from the Secretary of State and his Ministers that our people—our forces personnel—are our best asset, yet when there is an opportunity to look after them, the Government cut and freeze their pay, deplete their numbers, and neglect their mental and physical health needs as well as their housing and welfare needs.

The cuts to our Army, Navy and Air Force come at a time of increasing global instability, emerging threats and increasing risks on the back of a decade of decline. There is an urgent need for strong defence, strong strategic direction and strong relationships with our allies—all of which this Government are failing on. Cuts are weakening our defences. The integrated review has rightly been derided by many as contradictory and incoherent, and this Government’s actions are distancing us from our allies. I completely understand the need for us to invest in cyber and new technologies because warfare is always changing. But in this ever-changing landscape, the one constant in warfare throughout history has been—and always will be—our brave forces personnel. To diminish their numbers would be a grave mistake. After all, it is people who will be needed to operate and monitor these new technologies. If not, the technology will be more susceptible to attacks. This is not sentimentality; it is plain fact.

Just yesterday in the Defence Committee, we heard that the integrated review’s promise of identifying, developing and deploying these new technologies and capabilities faster than our potential adversaries is unrealistic, because, as one of our witnesses stated, they “do not see” from this Government

“the pace and level of investment to live that statement”.

We have a Government who have not acted with sufficient pace regarding emerging technologies and cyber at the same time as they have depleted our existing capabilities, leaving us dangerously vulnerable.

Cuts do not strengthen our defence capabilities. Unclear direction does not strengthen our defence capabilities. Acting in ways that increasingly distance us from our allies does not strengthen our defence capabilities. Our forces’ strength lies in their people. That is why we are asking Members on the Government Benches to show today that they share our unwavering respect for and value our forces personnel just as much as we on the Opposition Benches do.

17:43
Damien Moore Portrait Damien Moore (Southport) (Con)
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I welcome today’s debate, but I want Members in this Chamber, particularly on the Opposition Benches, to remember that it was the Labour party—MPs sat on the Opposition Benches, including the Leader of Her Majesty’s Opposition—that wanted to make the right hon. Member for Islington North (Jeremy Corbyn) Prime Minister, so no doubt those Members supported his world view. It was a world view that included abolishing the Army, scrapping Trident, withdrawing from NATO and casting doubt on our world-leading intelligence services.

Ironically, we have heard something different today from the shadow Secretary of State, who is much more positive about the armed forces. I really welcome that, but one of his colleagues on the Front Bench wanted to replace our armed forces with human security services, which would have made our defence policy not a statement of intent, but quite literally just a written statement. I cannot stress enough how important the safety and security of the United Kingdom and our people are. I pay tribute to the hard work of our armed forces, which keep us safe every day.



History has demonstrated that where we do not meet the changing nature of security with equal, robust and pragmatic changes in policy, we leave ourselves vulnerable and open to attack. In the current climate, must we consider not only the threat of newly emerging powers, requiring nuclear weapons, but that of non-state actors, who have shown their intention to cause atrocities on our streets. We must consider the changing nature of these demands. We must adapt to this change. We must ensure that our constituents are kept safe.

I welcome this Government’s commitment to spend £188 billion on defence over the next four years. It shows commitment and that we are protecting our people. We are building new ships for our Navy and new jets for our RAF. The funding will enable the Ministry of Defence to prioritise more than £6.6 billion for research on those new threats. We do not want our armed forces to be technologically disadvantaged. We want to build partnerships that sustain our economic advantage, our strategic advantage and our defence advantage. Right across the United Kingdom, our communities are benefiting from billions of pounds-worth of defence spending. Across this nation, I am proud that our investment in MOD spending is supporting more than 400,000 jobs and providing huge opportunities across British industry for our future.

It is only this party—the Conservative party—that can be trusted to keep our country and our people safe, and I pay tribute to this Government under my right hon. Friends the Prime Minister and the Defence Secretary. They have reaffirmed our commitment. This Government are committed to ensuring that our armed forces have the strength to protect our country.

17:46
Kevan Jones Portrait Mr Kevan Jones (North Durham) (Lab)
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In 1962, Dean Acheson, the former Secretary of State, said:

“Great Britain has lost an empire and has not yet found a role.”

In the 1960s, we concentrated our efforts in defence and foreign policy on protecting western Europe during the cold war and on our commitments to NATO. The integrated review was billed as a way of the Government defining what was meant by global Britain. The review is ambitious, but in a lot of ways, it looks backwards to an age with a certain amount of sentimentality and a rose-tinted view of Britain’s place in the world, without the resources to meet the ambition it outlines. In the maritime space, for example, we have a situation where global Britain is going to be projected by only 19 capital ships, and possibly fewer than that, throughout the mid-2020s. In order to have credibility, global Britain will also conduct operations in areas of the world in which we have never done operations before. We cannot do that without resources and without the people to do that.

I just ask the Government to be honest with the British people. If this integrated review is to be enacted, it needs the resources behind it, but I am concerned that in the race for the Government to meet this nostalgic view of Britain’s place in the world, they will take their eye off the real ball, which is our commitment to NATO and the north Atlantic and the main threat, which everyone agrees is there today—we have seen it today in Ukraine—which is from Russia. We cannot do that without the resources or the people.

Given this Government’s track record in coalition and in Government, the integrated review did not come from a standing start; it was from a start that has seen cuts to the defence budget that mean it is 5% lower than it was in real terms in 2010.

I will finish by saying this: we are all proud of our men and women in our armed forces, but we should not make them empty promises that we cannot deliver. We certainly should not have a situation where we ask them to do things without the resources and the capabilities that they rightly deserve.

00:04
Andrew Selous Portrait Andrew Selous (South West Bedfordshire) (Con) [V]
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The strength of our armed forces does not just rest in the capability of our military hardware. It relies on the skills, dedication and years of experience gained through the training and deployment of the men and women of the Royal Navy, the Army and the Royal Air Force. We do not just need to recruit enough of them to serve in our battleships, armoured personnel carriers and aircraft; we need to retain them for long enough to benefit from the experience and training, which in the case of highly skilled personnel, will have cost millions.

Those brave men and women love their country and the jobs they do to protect us and keep us all free, but they have families who are often massively impacted by the work they do. While service families take enormous pride in the work of their serving family members, it also the case that military personnel put their families through more separation, relocation and danger than any other public servant.

On top of that, when we add into the mix accommodation that is not always of the standard it should be, disruption to children’s education, health services that do not keep up with their frequent moves and the inability of their spouse or partner to keep their job as the result of frequent relocation, many service personnel, although wanting to stay in the armed forces, are not prepared to continue to put their families through those difficulties, so they leave, taking all their experience with them and often leaving major capability gaps as a result.

That is why I was so delighted to be asked by a previous Secretary of State for Defence to write a report on what could be done to improve life for armed forces families. Professor Walker, Dr Misca and I published the report, “Living in our Shoes”, last summer, with 110 recommendations. I am delighted that, at the end of last month, the Government accepted 86 of them in full and 20 of them in part, while only rejecting three, with one being for the armed forces charitable sector to respond to. The report and the Government response are both on gov.uk.

Overall, we called for the whole nation to take its responsibilities to the armed forces families more seriously, and we called for the Prime Minister to make the care and wellbeing of armed forces families a national priority. I am delighted that the Government have accepted that challenge—

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Order. I am terribly sorry, but time is up.

17:51
Jamie Stone Portrait Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
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I want to make two simple points. The work done by the armed forces during the pandemic was welcomed by all of us. In my constituency, the same as in everyone else’s, they did a great job on testing and vaccination, and I am deeply grateful. Talking to armed forces personnel, they told me how much they had enjoyed the work, and they felt they were fighting a real good battle against the virus. I also know, from my own limited service in the TA, that in armed forces life there is a lot of training and an awful lot of waiting, and doing something different can really make life a lot better. Indeed, the SNP spokesman, the hon. Member for Glasgow South (Stewart Malcolm McDonald), talked about the satisfaction of that. I also know that those armed forces personnel who helped rescue refugees found it very satisfying.

So my first point is this. In doing these jobs, the armed forces are actually indirectly saving other arms of Government spending money. I suspect—no, I am certain —that what is being suggested to us by the Government today is of course money-led. It is about the revenue budget. However, I would ask the Government to take a wider look at what is going on here, because I think what the armed forces are doing when they are not actually defending the country is saving other budgets.

In the time available, my second point is this. The shadow Secretary of State, the right hon. Member for Wentworth and Dearne (John Healey), spoke of four Rs. There is a fifth R, which has been touched on, and it is recruitment, but I would like to look at it from a different angle. In my working life, and indeed more recently, I have had a close connection with the oil and gas industry, and one of the biggest problems the oil and gas industry faces is recruitment. Why? Because, unfairly or not, it is seen to be a sunset industry, and young people are not particularly interested in joining as they think there are better careers elsewhere. If we reduce the armed forces by the numbers being suggested, we will take their number below a critical mass. That means people—the brightest and the best, the most capable, the fittest—who might otherwise think about joining our armed forces will think twice and go elsewhere. That would be a tragedy, and it would be the start of a downward spiral leading us on the high road to a very dark place indeed.

Nigel Evans Portrait Mr Deputy Speaker
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I ask Members who are participating remotely to keep an eye on the clock and have an independent timer as well just to make sure, as it is a bit messy when I have to cut them off, but I will cut them off to get more Members in.

17:54
Andrew Bowie Portrait Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
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Thank you, Mr Deputy Speaker; I will endeavour not to be cut off.

It is a pleasure to speak in this debate, which has been very interesting. It is actually a very thoughtful motion that we are considering—much more so than some of the other Opposition day motions we have been used to considering of late. Maybe that is why it has had such a sympathetic hearing from so many of my hon. Friends. We only have to look at what is happening on the Ukrainian border to see that even today, despite all the advancements that we have in technology, mass still matters.

Yet I cannot support the motion, primarily because of the very last sentence where it talks about the Government’s plans to reduce the capability of the armed forces. Unfortunately, that is simply not true. They are reducing the size—the overall manpower—of the armed forces but they are not reducing the capability. In fact, the £24.1 billion investment—the biggest increase in defence spending since the cold war—should be welcomed. The investment in new technologies and in accommodation, supporting forces’ families, is also something that we should all welcome. It is especially welcome in Scotland, where the review and settlement cement the armed forces footprint north of the border, guaranteeing the presence of the armed forces on the Clyde, at Lossiemouth and elsewhere across the country, investing in our shipyards by placing orders for 20 warships to be built on the Clyde, and providing jobs across the country in our world-leading defence industry sector at companies such as Leonardo in Edinburgh, which is providing the UK-led future combat air system.

I thank the Opposition for putting forward a very thoughtful motion. This has indeed been a very interesting debate with good contributions from all sides. However, because of the simple truth that we are not reducing the capability of the armed forces, I cannot—

Bob Stewart Portrait Bob Stewart
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I am sorry to have to disagree with my very good friend. We are reducing the capability of our armed forces. We are reducing their capability to do peacekeeping, limited operations, counter-insurgency and peacemaking. We have not got the men to do it. That is what we are doing.

Andrew Bowie Portrait Andrew Bowie
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I thank my right hon. and gallant Friend—my very good friend—for his intervention. I would never seek to disagree with him on matters of defence, but on this issue, although not wrong, I think that the investment that we are making in technology will allow this country to be at the forefront of expanding our capabilities as a country in doing all the things that he spoke about, which we are very proud that our armed forces do for us and for our allies around the world. That is why I cannot support this motion.

17:57
Mohammad Yasin Portrait Mohammad Yasin (Bedford) (Lab) [V]
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I am grateful for the opportunity to speak in this very important debate.

I wish to urge the reconsideration of the decision to cancel the Warrior capability sustainment programme. Doing so in favour of the German-manufactured Boxer will have a devastating impact on our nation, my constituents, and the men and women in our armed forces. It is crucial that we provide our armed forces with only the very best protection. The Warrior upgrade would have been a significantly enhanced fighting vehicle equipping British Army infantry soldiers to be supported in the most demanding of battlefield environments. The Warrior is the only vehicle specifically designed to provide fire support, and because of its new 40 mm cannon it boasts unique close combat capabilities. The Government must outline what capability trade-offs will be made with the transition to the Boxer and how this may affect our soldiers on the frontline.

Not only are our armed forces put at risk by the Government’s decision, but our economy as well. The production of these armed vehicles would have brought an estimated £1 billion to the UK economy, with the supply chain being made up of 80% British companies. The contract itself would have secured nearly 2,000 jobs. The investment would have boosted the UK economy after covid-19. But instead these vehicles are now to be replaced by Boxer, which is produced by a German manufacturer. I am greatly concerned that this will not bring the same prosperity as Warrior would have done and will only result in a disastrous loss of income and job opportunities for the UK.

More locally, Lockheed Martin provides employment to about 900 skilled workers at its site in Ampthill, as well as offering apprenticeship opportunities to young engineers. The cancellation threatens the viability of this site. It has already been announced that up to 158 people will lose their jobs in the wake of the Government’s decision. The skills lost owing to job losses in this sector will take many years to rebuild. The Warrior programme represented significant investment in some of the UK’s best technology and it advances our capabilities as a military force. I am hugely disappointed by the cancellation of that programme. I am troubled by the damage that might do to our armed forces, the limits it could place on economic growth and the number of jobs at risk. I urge the Government to reconsider this appalling decision.

18:00
Darren Jones Portrait Darren Jones (Bristol North West) (Lab)
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I will focus, perhaps slightly unusually in the debate, on the impact of climate change on our national security and, therefore, the resource allocation in the MOD. We know that, so far, the world has not made climate action plans bold enough to limit global temperature growth to 1.5° C above pre-industrial levels. Obviously, we support the COP26 President, the right hon. Member for Reading West (Alok Sharma), on achieving that at COP26 later this year, but the reality is that climate change will affect our national security irrespective of whether we hit the 1.5° C target. That will translate into a number of issues, ranging from significant global climate migration and shortages of food and water to new conflicts around the world and, potentially, a vastly different geopolitical order.

On some projections, if global warming reaches 3° C we will have a world in which most of the United States, and indeed China, as well as other countries along and near to the equator, no longer survive in their current form due to desertification. Russia could become the largest food-producing country in the world. If we turn our minds to Russia’s approach in leveraging oil and gas to meet political objectives, we can imagine what that would look like in a world in which Russia had a monopoly of fertile land for food production. The future management of the Antarctic, following the lapsing of the current treaty in 2041, and presumably with habitable land following the melting of the polar caps, would become a high-risk flashpoint in a desperate world. All those outcomes present risks to Britain’s national security, the rules-based order and the allocation of our defences.

I wish to focus on the Arctic circle because melting caps produce newly navigable seas. For trade, shipping goods from China to Europe through the Arctic region, as opposed to through the Suez canal, would reduce shipping time, fuel consumption and cost. On security, only last week it was reported that Russia is further expanding its military presence in the polar region, testing air missiles and utilising nuclear submarines to break through ice, and is continuing to build military bases along its Arctic coastline.

On access to natural resources, many countries are trying to claim legal jurisdiction in the area, for drilling purposes. The integrated review says that we will seek to maintain high co-operation and low tension in the region, ensuring the safe, sustainable and responsible management of natural resources. Although I support those ideals, I fear the Government are not fully anticipating the escalation of tensions in our own neighbourhood, not least because so little reference is made to the Arctic circle in the integrated review.

That is, of course, an issue for Scottish independence, because England needs Scotland as much as Scotland needs England in being able to respond quickly to threats in the Greenland-Iceland UK entry point to the north Atlantic. I do not wish to be pessimistic, but I fear that all the climate change signs point to an escalation of risk and to tension in the Arctic circle, yet little attention is paid to that in the integrated review and defence statements, or indeed Government policy. I hope that those on the Treasury Bench might give us more insight to their thinking on the issue later this evening.

18:03
James Sunderland Portrait James Sunderland (Bracknell) (Con)
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It is a great privilege to speak in this key debate, Mr Deputy Speaker, although the concept of strength of the armed forces happens to be a misnomer. First, military force will only ever be as good as the way in which it is deployed. The long asymmetric campaigns in Afghanistan and Iraq, for example, were indicative of attrition, force protection and technology, more so than outright military power, but times have changed, even over this short period, and as the integrated review has made clear, we are now fighting in an era of “persistent engagement” against multiple threats, on multiple fronts and in new domains. It might be that conventional force, far from being the historical solution it was, is now just a solution.

Secondly, the word “strength” is in itself confusing. It is often used to describe disposition or size, so I would agree with the Opposition’s argument that our UK armed forces have shrunk, but that ignores the fact that “strength” can also mean availability of force, utility and, above all, potency. So, I would argue that reducing the size of our armed forces does not necessarily mean that the application of military force is any less credible. Let us be clear that the vast reduction in our armed forces since the second world war is not just a Conservative problem. It is something for which successive Governments must take responsibility.

I shall outline some facts if I may. In 2009, after over a decade of Labour government, there were 46,000 fewer service personnel than in 1997. Over the same period, the three services ended up 6,500 personnel short of the MOD’s trained requirement, a figure that is larger than the delta today. The reality is that HM forces fell in size by at least a fifth under Blair and Brown.

Before I am accused of being blindly partisan, let us not forget that the Conservatives did something similar in 2010. I spent a miserable two years in Andover doing my bit to cut the size of the Army from 102,000 to 82,000, and there were sweeping cuts, too, in the RAF and Navy.

Bob Stewart Portrait Bob Stewart
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I remember that in 2010 we cut the Royal Electrical and Mechanical Engineers hugely, and said we would do the job through civilian personnel. Then, in 2015, we cut those civilian personnel. Who will keep all these highly technical things going if we do not have the people?

James Sunderland Portrait James Sunderland
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I could not agree more with my right hon. Friend, as a Corps man myself. It is imperative that we retain these specialist capabilities so that we can prosecute force using the logistical and engineering support we need.

A decade on, there is no doubt that the Government are serious about investing in defence in a way that has not been seen for years. The massive £24 billion boost over the next four years brings the total to over £188 billion before 2025. This is about military power and strength, particularly in the prosecution of force at range, and when the risks of becoming embroiled in another attritional campaign on land can be mitigated, whereby striking at the heart of enemy command and control is so important.

I am concerned about the 72,000 figure for the Regular Army. Every unit has its challenges with under-manning, the training margin, wider commitments and absence from work due to sickness, compassionate leave or maternity, and my sense is that the Army probably needs an establishment of 82,000 to mobilise a strength of 72,000. I am not convinced that the Army can generate a deployable division with those numbers, and I urge the Minister to do his estimate. However, that is the only note of real caution for me and I welcome the publication of the integrated review—an excellent bit of work.

The dilemma for me and for all of us in this place is whether our focus on coalition operations, higher dependence on technology and the perceived peace dividend since the second world war justify the risks of ever smaller armed forces. But none of us can predict the future—not even politicians—and only time will tell whether this is again a bridge too far.

18:07
James Wild Portrait James Wild (North West Norfolk) (Con)
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I welcome the Opposition’s shift in wanting to have a debate on the strength of the armed forces that focuses on enhancing them rather than weakening them. It would perhaps have been better if the shadow Secretary of State, the right hon. Member for Wentworth and Dearne (John Healey), had been up front about the £38 billion black hole in the defence budget that the last Labour Government left behind—a shortfall that meant painful cuts were required in the 2010 review. I advised the then Defence Secretary on the 2015 strategic defence and security review, which was about investing once again with a budget that was growing. The integrated review and the Defence Command Paper together build on those reforms and highlight the intensifying threats we face, and the need to continue to modernise and adapt our forces, backed by a budget that matches the ambition.

Contrary to the motion, the plan strengthens our defence capabilities and the power of the armed forces, with major investments across the five domains. Opposition Members have spoken about election pledges, and it is fair to say that we have changed our plans. Instead of increasing defence spending by 0.5% above inflation every year, we are going further by committing to an additional £16.5 billion over the next four years on top of the existing plans. That extra funding is welcome to help to put the budget on a sustainable footing, because for too long MOD spending has involved short-term financial management and delays or deferrals that simply increase the budgetary pressure in future years. However, the opportunity to strengthen our armed forces that this multi-year commitment provides does not remove the need for choices, and how could it? The UK cannot do everything, and focusing on what we do best and working with our allies is at the heart of our global Britain approach.

During the debate, there has been an understandable, if slightly misplaced, focus on the arbitrary numbers in the Regular Army, given the changing picture of threat. In my experience, military chiefs are more interested in the ability to generate and deploy forces rapidly, and a more agile Army with technological advantage can have greater effect with fewer people.

This significant increase in defence spending provides an opportunity to deliver for our servicemen and women, as well as taxpayers, and there now needs to be a clear focus from the Ministry of Defence and the commands on implementing these plans. That means a more agile approach to procurement, with better control of costs and programmes. It means addressing the recommendations of the recent Public Accounts Committee report and having robust plans to deliver efficiency savings. Finally, it means an improved offer for everyone who serves our country, and their families.

18:10
Grahame Morris Portrait Grahame Morris (Easington) (Lab)
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I rise to support the motion on the Order Paper, not least because I believe that Conservative promises made to protect our armed forces have sadly been lacking and ring hollow now that they are in government, as is the case with so many of their other promises. At the same time that Ministers want to cut the size of our conventional armed forces, they propose to increase by 40% the UK’s nuclear stockpile. I ask the Minister, what is the strategic reason for that decision? How much will it cost? How will the UK be safer with 260 nuclear weapons compared with 180?

Breaking international law and treaty obligations sacrifices our moral authority when we are dealing with regimes such as Iran’s that threaten our allies in the middle east. Indeed, in 2015 Ministers promised that the strength of the Army would not fall below 82,000. In truth, we will never meet that target, with the Army’s strength standing at 76,350 soldiers. Since 2010, the Conservatives have overseen a reduction in the strength of our armed forces of a quarter, with 40,000 fewer full-time troops now compared with 10 years ago. The Government will weaken the Army further, reducing numbers to 72,500 by 2025.

In 2012, the MOD partnered with private outsourcing contractor Capita to deliver a £1.3 billion recruitment project. I am glad that the contract was not for a new sight for the Army’s rifle, because the number recruited since Capita’s involvement has not hit the target in any year since the contract was awarded. We should be angry about that wastefulness. Every pound lost in profit squeezed out of a failing contract means fewer soldiers, poorer equipment and fewer opportunities for people to make a career in the services.

Technology is important, but having spent time with veterans as a trustee of the newly formed East Durham Veterans Trust, I must agree with the former Chief of the Defence Staff, Sir Nicholas Houghton, who said:

“I would argue most strongly that it is our people that give the United Kingdom’s armed forces our qualitative edge”.

We have seen our military in action over the last year during covid, from reinforcing frontline services to building hospitals, delivering vital equipment and running test centres in my constituency. I know that there are Government Members who care passionately about the armed forces, and I ask that they work cross-party to ensure that our armed forces—

18:13
Chris Clarkson Portrait Chris Clarkson (Heywood and Middleton) (Con)
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Mr Deputy Speaker,

“I hear it a lot on the Tory benches, this idea of a country that ruled the waves. Rule Britannia… I think that’s given way to a nostalgia rooted in the history of the Second World War that somehow says that we’re a small island nation that goes out punching above its weight, without ever really stopping to ask why on earth it is that we’re punching at all.”

Those are the words of the shadow Foreign Secretary, the hon. Member for Wigan (Lisa Nandy), praising a pamphlet that called for the abolition of the Army, its replacement with a gender-balanced security force and the abolition of our submarines.

This volte-face to become the tub-thumping, flag-waving party of our armed forces is about as Damascene as a conversion can be. Not all that long ago, Labour Members were abstaining on giving legal protections to our service personnel while on overseas operations—those who did not actively vote against that. So today’s motion again has the whiff of insincerity about it.

I grew up on JHQ—the joint headquarters—in Rheindahlen in the 1980s, and the size of the forces and the nature of military operations then was light years away from where it is now. At the time the Berlin wall was standing, the Soviet Union was the biggest geopolitical threat and in 1983 the film “WarGames” depicted the science fiction scenario of an automated weapons system being hacked for a nuclear strike. Today, China joins Russia as a pre-eminent threat, the longest remaining section of the Berlin wall forms part of the East Side Gallery, several members of the former eastern bloc are now in the EU, and cyber-warfare is conventional.

The simple fact is that the world has changed; the nature of warfare has changed and therefore the way in which we configure our military must inevitably change. We do not have cavalry officers charging into battle on horseback, swords drawn; the needs of the forces today have changed.

What has not changed is the Government’s commitment to ensuring the men and women who keep us safe have the best support in terms of training, equipment and logistics, and it would be breaking faith with them for them to be under-resourced by adhering to a model designed for decades past. But we are going further, because the comprehensive review rightly focuses on the UK military’s single most important asset, its people. We are enshrining the armed forces covenant into law, we are making improvements to the justice system, and we are delivering a pay and career review to ensure military careers are as competitive as those in the private sector.

Labour stood on a hard-left manifesto which would have seen us led by a man who wanted to scrap Trident and leave NATO altogether. Its nationalist neighbours on the Opposition Benches still want to scrap Trident and wanted to tax service personnel more than in any other part of the UK. Our forces deserve our gratitude and our assurance that their Government will work to the geopolitical realities of the day, not the carping rhetoric of a bunch of crypto-Stalinists dragged up as flag-waving patriots in an attempt to hide the fact that they are hopelessly out of touch with the people whose votes they ignored for so long.

18:16
Charlotte Nichols Portrait Charlotte Nichols (Warrington North) (Lab)
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One really positive advance that we have made this century has been our recognition of the obligations that the state and wider society have to the members of our armed forces for the work that they do for us and the sacrifices that they make. It was the Labour Government who first acknowledged the necessity of an armed forces covenant, although the Conservatives chose not to bring it into law.

Warrington North is the proud home of the 75 Engineer Regiment, based at the Peninsula barracks in Orford, as well as two historic RAF bases at RAF Burtonwood and RAF Padgate, a hugely important part of our town’s heritage and our nation’s success in defeating fascist tyranny in world war two. This morning I was pleased to meet with the Reserve Forces’ and Cadets’ Association for the north-west of England to discuss how I can sign the covenant as an armed forces-friendly employer myself. We should all do what we can to support the military that defends us and our armed forces communities.

However, the Government plan yet another real-terms forces pay cut: a lance-corporal in the Army will see a cut of £445 and a sergeant in the RAF will lose £610. And, unfortunately, while we have seen this progress in society, the Conservative Government have undermined our military capability, marching us back over 300 years in terms of the size of the Army and now proposing still further cuts. Despite assurances that decisions should be driven by threat analysis rather than budgets, this is the third time that the Tory Government have chosen to reduce our capability, breaking the Prime Minister’s election promise that he would not be

“cutting our armed services in any form.”

For him, apparently, a cut to the Army of 10,000 does not count—a worse use of 10,000 men, and indeed women, than the grand old Duke of York.

Ministers say that money is better spent on new technologies. Shiny new tech may be exciting, but leaving aside their repeated failures to deliver over the past decade and to have a procurement policy for defence spending that supports British jobs, tech cannot counter all challenges. In addition to the military threats that we have heard discussed today, in recent years we have needed our armed forces and their expertise as we have coped with increasing floods caused by climate change, and, yes, the covid pandemic as well. Are these strategic threats that Ministers think are either less likely in future or can be addressed with new kit? The first duty of Government is keeping their citizens safe, and reducing our capabilities by this level does the exact opposite.

18:18
Emma Hardy Portrait Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
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Hull and east Yorkshire has always been a high recruitment area for the armed forces and I give my thanks to each and every one of them for their service, particularly those who have gone over and above during the covid pandemic. Yesterday I attended a meeting of the all-party group on apprenticeships and we heard about the number, breadth and variety of defence apprenticeships offered. Hon. Members will therefore understand my sincere disappointment at hearing of the 10,000 cut to armed forces personnel, denying people the opportunities that so many of my local residents have had previously.

Hon. Members will also understand why I found that particularly hard after the news of the closure of the BAE Brough site. The first aircraft factory was created in Brough in 1916. The site entered the service of the Royal Navy in 1959. It continued in active service with the Fleet Air Arm and the RAF over 30 years. It is best known for manufacturing the Hawk, seen the world over being operated by our fantastic Red Arrows aerobatic team. The Hawk T1 training craft is currently being retired, and Britain’s aircraft fleet has shrunk to its smallest in RAF history. Fewer F-35s are being ordered to replace those lost aircraft.

I must convey to the House the sincere disappointment that 104 years of aircraft manufacturing came to an end on Christmas eve 2020, under this Government’s watch. One hundred and four years of aircraft manufacturing; it kept going through both world wars, through continuous change and through Governments of different political persuasions, only to end on Christmas eve 2020. The only positive from this sorry tale is that I can give my thanks to Unite the trade union for the work it did in mitigating redundancies and saving people from losing their jobs during the pandemic. I give particular thanks to the Unite rep Jarrod Rex for the work that he did.

I ask the Government to do the right thing and learn a lesson from BAE, which was able to mitigate some redundancies by allowing people to be remote-based. It allowed people to be officially employed at various other sites around the country while still living in Hull and East Riding, because they could continue to work from home and be registered as employees. That helped save jobs, and BAE is now working with the trade unions to look at the future way of working and see whether more jobs can be offered as more permanent remote opportunities. I urge the Government to look into that in detail, because if it were expanded, it could bring more much-needed high-skilled jobs to areas such as Hull West and Hessle.

18:21
Suzanne Webb Portrait Suzanne Webb (Stourbridge) (Con)
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The strength of our armed forces is in the people who serve in them, and of course this Government’s commitment to them. Any armed forces should seek to reflect the character of the nation, and ours do. They reflect our values of peace and protecting international law, they seek to deter aggression and maintain peace, they help people worldwide with aid at times of crisis, and they protect our trade links, with our Navy protecting shipping from modern-day pirates. Our armed forces fly the flag for UK interests. They reflect our huge soft power as a nation, not just our physical strength.

The discipline and professionalism of our forces is recognised throughout the world as second to none. The British Army has helped train armed forces all over the world, and countries have sent their future officers and leaders to our military training centres for hundreds of years. That ensures that our nation’s values are shared across the globe. That is the strength of our armed forces.

Defence is an ever-changing landscape, with battlefields no longer in trenches but in artificial intelligence technology and cyber capabilities. Importantly, as we face one of the UK’s biggest strategic landscape shifts—leaving the EU—as global Britain, our armed forces will again take the lead. That is not a nostalgic view.

The recent defence review is the widest-ranging and possibly the most significant since the end of the cold war. The review ensures that we will exceed our manifesto and NATO spending commitments. It is a modernisation programme that encompasses the new areas of cyber and space defence, reflecting future threats and future battlefields. It is a symbol that the UK has a global role and a global ambition. It represents a Government—this Government—that understand the nature of the world in which we operate, all backed by a £24.1 billion boost in defence spending, helping to create a stronger, more secure Union.

Compare and contrast that with Labour’s position. The last Labour Government oversaw the Territorial Army’s being cut by almost 40%. Opposition Front Benchers want to replace our armed forces altogether with human security services. I am not sure they respect or have any understanding of the importance of our armed forces. That is not forgetting that Labour had planned shamelessly to use our flag and our veterans to gain votes—it is shameful that it was using our armed forces as a campaign tool, while refusing to take our nation’s defence seriously.

This Government do take the nation’s defence seriously, and they have a proud tradition of protecting their people. Those values are the foundation of our security and prosperity. I thank all those who serve to protect and defend, particularly those from my constituency, for their sense of duty, and of course those I sit alongside on the Government Benches. The armed forces of this great and United Kingdom are one of our finest assets and one of our greatest strengths. Long may they continue.

18:24
Kate Osborne Portrait Kate Osborne (Jarrow) (Lab) [V]
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It has taken just 16 months for the Prime Minister to break his election promise not to reduce the size of the UK’s armed forces. For a party that likes to think of itself as strong on defence, it makes no sense for the Tory Defence Secretary to have announced last month that the Government are cutting the size of the Army, this time by 10,000. That comes on top of the 45,000 cut from the whole armed forces since 2010.

It is a slap in the face for our armed forces personnel, many of whom are recruited from working-class areas like Jarrow, here in the north-east. Under the Conservatives, our armed forces have seen a decade of decline. Forces personnel and their families have been forced to live in substandard accommodation while receiving below-inflation pay rises for the past seven years.

Hidden within the Government’s defence plans is a 2.7% cut in day-to-day spending over the next four years. That translates into a pay cut of £445 for a lance-corporal, with a sergeant in the RAF losing £610. Armed forces personnel deserve so much better. They have helped the country through this pandemic and played a key role in building Nightingale hospitals and assisting in the vaccine roll-out. At one point, 95% of mobile testing centres around the country were run by the military. We owe them a great deal.

There is no doubt that the threats that we face as a country have changed in modern times and that spending needs to be focused accordingly, but as the pandemic has highlighted, highly trained personnel are indispensable. On a wider industrial point, I agree with Unite the union’s response to the Government’s integrated review: the UK already has the skills, capabilities and ambition to be developing the cutting-edge technology needed to meet both today’s and future challenges; the only thing holding it back is a lack of vision, ambition and support from Government.

The Government must produce a long-term plan to boost Britain’s foundation industries, in steel, shipbuilding, aerospace and cyber-security as national assets. That is essential because the defence of the nation is linked with the defence of our national economy. The Prime Minister said in November that he was ending an era of retreat regarding the defence cuts made by previous Tory Governments. But after the integrated review and the defence Command Paper, yet again there appears to be a vast difference between what the Government say and what the Government do.

18:27
Bob Stewart Portrait Bob Stewart (Beckenham) (Con)
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I get the idea of grey-zone warfare. I studied strategy; I realise that we cannot fight the next war as we fought the last war—I get that, too. The real problem is that we are going to have to do the next war in a different way. I get that. But we have not fought a total war as envisaged, and on which the integrated review is predicated, for over 70 years. Instead, we have fought limited engagements. We have done counter-insurgency, peacekeeping and peacemaking. Some 99%—almost 100%, actually—of all operations have required us to put soldiers on the ground. Suddenly, we are saying that everything should be predicated on grey-zone warfare, and that leaves little else.

Having commanded men—and women, by the way—on peacekeeping missions, I can tell hon. Members that there is a real argument in favour of having enough of them. We are going to cut our Army by 12%. That is an enormous loss. I understand that tanks can be taken out from over the horizon. The Armenia-Azerbaijan conflict showed that: the poor devils in those tanks didn’t know what hit them. We have to redesign how we fight and where our tanks go—I get that. But it does seem odd that we are saying tanks are somehow obsolete when we have aircraft carriers that are 500 times bigger and marked from space by a red dot that an intercontinental missile could take out very fast.

I will end by saying how disappointed I am that my Government have cut the regiment I commanded in Bosnia, without even telling me about it in advance—not even one little word. It was dreadful, and it hits me personally. So if I am talking with emotion, so be it. The 2nd Battalion the Mercian Regiment did not deserve that, when you think that, per head of population, each Scot has three times as many battalions as each Englishwoman or Englishman—the Scots have three times more infantry battalions than we do in England.

Kevan Jones Portrait Mr Kevan Jones
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And they’re all Fijians.

Bob Stewart Portrait Bob Stewart
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And indeed, as my good friend says, they are Fijian. Increasingly, those battalions will have to be manned by Englishmen.

I will end on that point. I understand the logic; I disagree with the result.

18:30
Antony Higginbotham Portrait Antony Higginbotham (Burnley) (Con)
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It is a privilege to be called in this debate, particularly because Burnley and Padiham have a very long and proud history of service in the armed forces.

Our starting point with any defence review should always be the threats that we face. I have a huge amount of respect for my right hon. and gallant Friend the Member for Beckenham (Bob Stewart), who just spoke, but threats have evolved quite significantly in recent years. The grey zone is real, and it does require a very real assessment of what those threats are and how we need to address them. We need to move towards a much more agile, smaller type deployment. That is why it is positive to see in the defence Command Paper and the integrated review such things as the Army ranger regiment: small groups of better trained people who can detect, deploy and deter aggression. That is what we are seeing our adversaries do. That is what we are seeing the Russians do with increasing frequency, be it in Ukraine, Syria or other such locations.

There are two big capabilities advancements in the defence Command Paper that deserve a particular welcome and credit to the Government. The first is the National Cyber Force, because cyber-warfare is only going to increase. I am sure you will join me, Mr Deputy Speaker, in agreeing that placing it in the north-west is a very welcome development. The second thing that the Government deserve specific credit for is Team Tempest and investing in the next generation of combat aircraft. If we know one thing, it is that if we do not invest in aerospace manufacturing skills—I say this as a Member of Parliament who represents a proud aerospace manufacturing area—we will lose those skills forever. Tempest gives us the ability to work with allies across the world, currently Sweden and Italy, to develop an aircraft that will put us at the cutting edge of warfare and allow us to deploy manned aircraft surrounded by unmanned assets, building on those small deployments of Army rangers or special forces.

We have heard quite a lot in this debate about what is being cut, but I actually do not think the defence Command Paper and the integrated review are reductions in capabilities. They are actually new capabilities. The National Cyber Force is a totally new capability. Tempest is a totally new capability. The multi-role ocean surveillance ship is a new capability. Type 83 is a new capability. Artificial intelligence is a new capability. So if we are going to have a debate about what force structure we need in the armed forces in the next 20 or 30 years, we should do so.

I will end with the US—

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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Order. Sorry about that, but time is up.

18:34
Matt Western Portrait Matt Western (Warwick and Leamington) (Lab)
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It is a pleasure to speak in this debate; I was not entirely sure that I would get the opportunity.

I am pleased that the right hon. and gallant Member for Beckenham (Bob Stewart) spoke today. His valued comments were missed in our last debate on the subject: it was a real shame not to hear from him on that day, although I cited him in my speech. It was also good to hear from the right hon. Members for Bournemouth East (Mr Ellwood) and for New Forest East (Dr Lewis) and the hon. Member for Bracknell (James Sunderland), all of whose voices I value greatly for the knowledge, expertise and experience that they bring to these debates.

It is not my specialist subject at all, but I have real concerns about where this is going. I have been extremely concerned for a couple of years now about recruitment numbers in our forces. I think that Serco has been managing it—it was almost as if it were being managed such that the numbers would fall, anticipating the Government’s position.

As I mentioned in the last debate, we are talking about an Army that will be as small as the US special forces. We are talking about the British Army! I once considered joining it, and I would have been very proud to represent the country. The notion that the UK could have a smaller force than the US special forces is quite extraordinary.

I hear the point about new technologies, but let us think back to the advent of the aeroplane and the birth of the Royal Air Force, or the introduction of tanks. Did we cut our forces then because of the new technology? No, we built on what we had. We have some fine forces and expertise, and we are well respected and well regarded around the world for them.

My point on this topic the other week was about peace-keeping and the importance of having people who can make the case, who can win hearts and minds, and who are actually trusted, as we saw in Sierra Leone, the Balkans and elsewhere. That is why we should be maintaining our forces and building on them with new technologies. We have to pay for our security—it is as simple as that. The threats are different from 10 or 15 years ago. We must invest in the new technologies, but keep what we have.

00:02
Jim Shannon Portrait Jim Shannon (Strangford) (DUP)
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I thank the Opposition for securing this important debate in which I have much interest—it is a matter of great concern to me. When I asked the Prime Minister in November about the physical forms of war and recruitment, his answer referred to our being “full spectrum capable”, so I want to speak briefly about capability.

What the news reports are saying is that the fat is cut and now we are cutting bone, as I believe The Economist put it. If that is what we are arriving at with the Army, the Navy and the Air Force, we have a real problem. I understand the need to focus attention on technological warfare; that is common sense. Our armed forces have the reputation of being the best of the best, and that has stayed true because of the bravery and intelligence of our personnel, but also because we are always moving forward and looking for better ways with less loss of life and more effective plans. But in my opinion, to allow our trained operatives’ numbers to fall is—I say this gracefully to the Minister—folly. If they determine that they will slog on without enough staff to carry out their workload, in time they will fail. Our armed forces are not a department in which we can accept failure.

I have also read, and defence sources have acknowledged, that the air force cuts would reduce logistics and supply capacity. If I have read it, others have read it. Our enemies will have read it and will be rubbing their hands, whether they be in Russia, China or wherever else in the world. I have great concerns about that.

I will conclude by putting on the record my thanks to the armed forces medics in Northern Ireland for their help during the most pressurised hospitalisations due to covid. Over the years, we in Northern Ireland have had 30 years of conflict. The past few months have indicated that unfortunately the shadow of conflict is never far away from both sides of the community. It is more important than ever, as the police force is put under pressure in Northern Ireland, to know that we have a British Army that we can call upon; the right hon. and gallant Member for Beckenham (Bob Stewart), who served in Northern Ireland, said that as well. I seek that assurance from the Minister today.

18:39
Christian Wakeford Portrait Christian Wakeford (Bury South) (Con)
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Let me start by paying a few tributes. If my hon. Friend the Member for Hyndburn (Sara Britcliffe) was in her place today she would certainly mention the long history of the armed forces, especially the Accrington Pals, in Lancashire. Indeed, one of my proudest moments as an elected representative was in my role as a councillor in Pendle when we gave the Duke of Lancaster’s Regiment the freedom of the borough.

Members from all parts of this Chamber respect our armed forces—I do mean that sincerely—and we have a long history of doing so. We may differ on what we think is needed at a particular time, but we do have a strong respect for the defence of this nation, and rightly so, because that is one of the oaths that we make when we come to this place.

As has been said by many Members—I will try not to repeat what has been said—the nature of warfare is changing; it is constantly evolving. Every time we find a new defence, someone will find a new method of attack. The problem is becoming more global, more cyber and much more biological in its intent, so do we need the same number of forces as we once did? The answer, unfortunately, is no.

Bob Stewart Portrait Bob Stewart
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Forgive me for intervening yet again, but may I point out that, on most of our operations, we cannot win hearts and minds with a drone, with artificial intelligence or with a precision-guided missile? We must have men and women who talk to people.

Christian Wakeford Portrait Christian Wakeford
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I thank my right hon. and gallant Friend for his point because it leads me on to what I was about to say. The nature of our armed forces has very much become part of our soft power in international realms, in that it is a peacekeeping force. We go out to offer support across the world when there are natural disasters and when it comes to peacekeeping in areas that need extra support, and we are proud to carry on doing so.

When we look at the support that we offer across the globe, I hope that we can consider maintaining that 0.7% in international aid. That is a very powerful tool in preventing some of these issues from arising in the first place. With peacekeeping, yes, I agree that we do not necessarily need drones, but we do need to find a way to attack some of these powers that are coming forward and that are increasing in their own nature of warfare. Whether we consider the cyber-attacks from Russia or Iran or the biological weapons from elsewhere, it is clear, unfortunately, that some of these places are not safe to send our soldiers. We must consider the safety of our armed forces. For many years, Governments of whatever party have not got that right. I am thinking specifically here of the war in Iraq.

It is right that we are considering this matter. Warfare is evolving and we need to change to keep up with that. We are increasing our expenditure on the armed forces, more than we have done since the cold war, and it is right to do so. It is right that we consider the safety of our nation, but we need to do so in a technological, biological and evolving way, which is why I will not be supporting the motion as it is today. I say that as a proud Member representing a regimental town. The armed forces have a long history there; long may that continue. It is very unfortunate that, again, we are debating not a motion of opposition, but a motion of opportunism. With elections coming up, I wonder why. We are proud of our armed forces on this side of the House, and that will continue for many years to come.

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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We have to go to the wind-ups now.

18:44
Stephen Morgan Portrait Stephen Morgan (Portsmouth South) (Lab)
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I associate myself with the remarks and tributes made by the shadow Defence Secretary, the Minister and other Members of this House to the Duke of Edinburgh, who was a great friend of Portsmouth, the heart and home of the Royal Navy.

Let me start by echoing the contributions from across the House that have recognised and honoured the continuing commitment and service of our armed forces. From the imminent departure of the Carrier Strike group from my constituency in Portsmouth to supporting frontline services across the UK as they tackle the pandemic, our armed forces have risen to the unique operational challenges presented by the past year, and which continue to present themselves, with courage, integrity and resilience—something that I know we all admire.

We are here today as a direct result of this Government’s broken promises to our armed forces, and this has been an important debate. My right hon. Friend the Member for Warley (John Spellar) reminded us of a catalogue of examples of successive Tory Governments running down our defence numbers and capabilities, a point echoed by my hon. Friend the Member for St Helens South and Whiston (Ms Rimmer). The Chair of the Defence Committee, the right hon. Member for Bournemouth East (Mr Ellwood), also described sweeping cuts and the impact these will have in the busy decade ahead with new threats, and my hon. Friend the Member for Barnsley Central (Dan Jarvis) said so eloquently—as he always does—that retaining talent is so important, and that despite changes to threats, people remain constant.

This Prime Minister promised to end Britain’s “era of retreat”, and that no further cuts would be made to our armed forces. Instead, he has further eroded our fighting strength. Some 45,000 personnel have been cut since 2010; now, the integrated review and Command Paper have confirmed that the Army will be further reduced to just 72,500 by 2025, smaller than at any time since the 1700s. As many Members of this House have already said today, this will sever the historical and prosperous links our armed forces have with communities across the UK and reduce services and pay for those serving, points well made by my hon. Friends the Members for Warrington North (Charlotte Nichols) and for South Shields (Mrs Lewell-Buck). The hon. Member for South West Bedfordshire (Andrew Selous) also stressed the importance of supporting those who serve.

As ever for Conservative Governments, it is cuts today, with the ever-seductive, seemingly undeliverable promise of jam tomorrow in the form of new technology. There can be no doubt that our forces need to modernise, but that leaves our national defences concerningly vulnerable in the medium term. This is particularly worrisome at a time when the integrated review has identified a growing number of sophisticated threats to our national security. While these threats are undeniably evolving and increasingly operate in the grey zone, Russian military build-up on the Ukrainian border is a timely reminder of the need to maintain strong conventional capabilities today as well as to invest for tomorrow. However, the Government also remain silent on any future co-operation with European partners through the common security and defence policy.

As we have heard today, it is not just raw people power that the Army is set to lose; it is set to lose capabilities. Conservative cuts to the conventional strength of our forces with a promise of pioneering technology are nothing new. Tory Ministers promised the same thing in the 2010 and 2015 reviews, yet they failed to deliver. In 2010, they promised a future force by 2020, and in 2015, promised a warfighting division with a strike force by 2025. That is now being promised in 2030. In 2015, the Chief of the Defence Staff said that the ability to field a single warfighting division was

“the standard whereby a credible army is judged.”

However, a recent Defence Committee report on the Army’s armoured vehicle capability says that the division would be “hopelessly under-equipped” and “overmatched” by adversaries.

The integrated review has placed particular importance on carrier strike groups as a platform to project global Britain, yet at least two of the Type 23 frigates that will escort them and specialise in hunting submarines are due to be phased out before the replacements are built, as continued ambiguity around the number of F-35 fighters the Government will order means that we do not have nearly enough to fill both of our aircraft carriers, leaving them vulnerable to missile and drone attacks. In the meantime, as the Royal United Services Institute has pointed out, these sweeping cuts mean that the UK can no longer call itself a tier 1 or full spectrum military power. Despite the Prime Minister’s welcome injection of £16.5 billion in capital funding after a decade of decline, many of the decisions in the integrated review seem to have been driven by finances, as opposed to threats.

It is no secret that successive Conservative Governments have chronically mismanaged the MOD’s budget. The National Audit Office reports a black hole in the defence budget of up to £17 billion, and we are still not clear on how much of the extra money will be swallowed by the deficit in current programmes. After a decade of short-sighted, last-minute decision making and poor procurement practice, our capabilities have fallen behind our allies and potential adversaries, and it is our forces on the ground who will be vulnerable. As right hon. and hon. Members across the House have pointed out, all of this comes at a time when the threats we face are immediate, growing, and complex. My hon. Friend the Member for Bristol North West (Darren Jones) reminded us of the threat that our nation’s security faces from the climate crisis.

Defence of the realm is the first priority of any Government. From the publication of the integrated review and the Defence Command Paper, it is clear that this Government have not only broken their promises on fighting strength but taken a significant gamble with our national security in the medium term. Our adversaries will exploit the continuing holes in our capability, but Labour is determined to ensure that our country can protect itself properly now and in the future. The Government talk up their commitment to our armed forces, but the truth is that they have failed at every turn. Members from across the House have the opportunity to place their concerns on record by voting for this motion, and I hope they will consider our service personnel, still the core of our fighting forces, when they come to vote this evening.

18:50
Johnny Mercer Portrait The Minister for Defence People and Veterans (Johnny Mercer)
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It has been an interesting debate. As you well know, Mr Deputy Speaker, I thoroughly enjoy any debates in the House on military or veterans matters, and today has been another one. There have been some enthusiastic contributions, which is fantastic to see. Some of them were slightly light on detail and facts, but I am not going to work through correcting all of those because I understand the premise of the debate and I will respond to a couple of the points that have been made.

I would just gently say that we must never treat our service people in this country like they are stupid. For Members to claim that everything under a Labour Government has been okay and that the Conservative Government have slashed and burned the military is to treat people who serve and people in this country like they are stupid. It is fundamentally untrue. There have been challenges over the years, and the really uncomfortable and embarrassing truth for Opposition Members who are so loud is that I was actually fighting in the compounds in Afghanistan when the right hon. Member for North Durham (Mr Jones) was a Minister in the Department, and I can tell the House that it was a deeply unpleasant experience that was made more unpleasant by the management and leadership of the Department at the time. So I will take no lessons in party politics when it comes to what has happened with defence.

We all agree that strong armed forces are essential to the wellbeing of our nation. As the Minister for the Armed Forces, my hon. Friend the Member for Wells (James Heappey), mentioned, the reforms we have set out in our integrated review and in the Defence Command Paper will enhance, rather than reduce, the strength of our military to meet future threats. One of my hon. Friends who is no longer in his place talked about the strength of the military and what that strength actually is. I think it was someone rather unpleasant who said that mass had a force of its own, and I am not going to deny that. To deny it would be to scream at the weather.

I have huge sympathy with my right hon. Friend the Member for Beckenham (Bob Stewart), who I have had deep feeling for over a number of years. I have huge respect for his service and for what he did during his time, but it is a truth—a truism—that our people are now more capable and we can do more at reach for a longer period of time with greater strategic effect than we could 20 years ago. That is a truism of global conflict. I totally understand the frustrations, and I apologise to my right hon. Friend that nobody spoke to him before the decision was made on his sub-unit. I will go and investigate what happened there. But it is a truism that we can be more capable and achieve more with fewer individuals in uniform now.

As for the idea that the military is being cut, we have to be honest with the British people. Yes, there are going to be fewer people in the military, but we can now deploy at a far faster rate and at a far greater global reach, and that is what matters today. So yes, mass has a force all of its own, and you will find no Minister in the Defence Department who does not want more money for the Defence budget and more people in the military, but the reality is, as the Secretary of State has said a number of times, that we have to operate within the envelope of our ambition in this country when it comes to the military. In that context, it is a very good and exciting review, and I will come on to talk about the people, because I know that a number of Members raised issues around how people are treated.

I will, if I may, briefly pay tribute to some of the contributions. My right hon. Friend the Member for New Forest East (Dr Lewis) spoke on his traditional theme of CASD. The commitment of those who maintain the continuous at-sea deterrent is extraordinary, and it is a commitment not only from them, but from their families. If we think about what it means to go away on those boats for a prolonged period of time, we realise that separation without any contact is extraordinary, and their commitment endures year after year. We owe them a huge debt for the ongoing security they provide in this country.

The right hon. Member for Warley (John Spellar) again went on about all the mistakes Tory Governments have made over the years. I have addressed that. I think it is disingenuous, and I am not going to say any more on that. My hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin) again talked about CASD and the commitment—

John Spellar Portrait John Spellar
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Will the Minister give way?

Johnny Mercer Portrait Johnny Mercer
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No, I am not going to give way. [Interruption.] No, no, no.

Kevan Jones Portrait Mr Kevan Jones
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On a point of order, Mr Deputy Speaker. I will take your advice, but is it in order to call a Member disingenuous?

Nigel Evans Portrait Mr Deputy Speaker (Mr Nigel Evans)
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If I had heard anything that was out of order, I would certainly have called it into order. It is part of the debate.

Johnny Mercer Portrait Johnny Mercer
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Thank you, Mr Deputy Speaker. I am getting used to it now.

The hon. Member for Barnsley Central (Dan Jarvis) made some really important points. I know that he spent a long time on such operations, as I did, and he actually made a really critical point, which is that there are no easy answers to these debates. None of them is binary: they are calibrated decisions about where the threat is, how we are going to meet it, and what equipment or people we are going to meet it with. I appreciated his contribution.

When it comes to armed forces families, I pay tribute to my hon. Friend the Member for South West Bedfordshire (Andrew Selous) for the important work that he consistently does in the family space and the people space. On that one issue, I can tell the House unequivocally that this review process has put people at the heart of defence. For the first time, we have produced a document that outlines what the offer is to attract and retain this country’s most talented individuals to a career in defence. I would encourage all Members of this House to go and read that, understand the opportunities that are now available, and then go and speak to the people who are serving.

While we will all have a view on defence—based on what we have been briefed on and what intelligence and secret information we have privileged access to—we will all have a different view, including those who have retired. I respect all those who have retired of senior rank and so on, but the crucial things is to go and speak to the people who serve and ask them what they think about the opportunities that are going to be afforded to them with careers in cyber, space, technical training and operations of the sort that were conducted by a very small specialist cohort in the military only 10 or 15 years ago. It is important to speak to them about the opportunities afforded by the future accommodation model or about mental health care now, where they can access a single front door and be totally confident that they will have a secure and coherent care pathway through NHS mental health services.

These lines—these campaign lines—are trotted out, and I understand that. I understand how this place works, but I am afraid I will draw the line when it comes to saying things that are simply not correct about our military, because we already have enough challenges. Everybody knows that I have come to this place to try to reset the relationship between the military and the nation, so I will be honest with colleagues when that line is broken, but this review puts people at the heart of defence. It is a good piece of work, and I am proud of it. I think we can honestly look young people in the eye today in all of our constituencies and maintain that defence remains the No. 1, premier choice of career for our young and talented people in this country.

I thank all Members for their contributions to the debate today. As I say, it has been very interesting and very passionate, and there were a lot of fair points. There is not one school of thought on this, but we do have to operate within the envelope we have been asked to operate within. In that respect, it is a good review. We should get behind it, and be proud of the UK’s armed forces, which remain the finest armed forces in the world.

Nigel Evans Portrait Mr Deputy Speaker
- Hansard - - - Excerpts

I am now going to put the Question, and you will be expected to vote the way you are shouting. Clearly, if I hear one audible and persistent voice, you will have a vote, and a vote is expected.

Question put.

18:59

Division 251

Ayes: 256


Labour: 188
Scottish National Party: 44
Liberal Democrat: 11
Democratic Unionist Party: 7
Plaid Cymru: 3
Alliance: 1
Independent: 1

Noes: 357


Conservative: 358

The list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy, is published at the end of today’s debates.

Business without Debate

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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Delegated Legislation
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Exiting the European Union (Nuclear Safeguards)
That the draft Nuclear Safeguards (Fissionable Material and Relevant International Agreements) (EU Exit) (Amendment) Regulations 2021, which were laid before this House on 25 February, be approved.—(Michael Tomlinson.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Diocesan Boards of Education Measure
That the Diocesan Boards of Education Measure (HC 1259), passed by the General Synod of the Church of England, be presented to Her Majesty for her Royal Assent in the form in which it was laid before Parliament.—(Andrew Selous [V].)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Cathedrals Measure
That the Cathedrals Measure (HC 1260), passed by the General Synod of the Church of England, be presented to Her Majesty for her Royal Assent in the form in which it was laid before Parliament.— (Andrew Selous [V].)
Question agreed to.

Petitions

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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19:10
Patricia Gibson Portrait Patricia Gibson (North Ayrshire and Arran) (SNP)
- View Speech - Hansard - - - Excerpts

The petition states:

The petition of residents of the constituency of North Ayrshire and Arran,

Declares that there is significant concern about the recent collapse of the betting firm Football Index following the suspension of the company’s license by the Gambling Commission and its entry into administration; notes that customers collectively have over £90 million trapped in the company with average losses of around £3,000 per customer; further declares that the petitioners understand that the firm operated as a ‘football stock market’, offering customers the ability to buy ‘shares’ in footballers whose price would increase or decrease, and customers could be paid in ‘dividends’ based on player performances; further that, only a few days after the company ‘minted’ new shares in footballers and enticed customers to purchase shares, the company drastically decreased dividend payments by 82%, leading to a virtual market crash on the site which caused significant losses for customers; further that concerns have been raised that the firm operated like a pyramid scheme and that it had been admonished by the Advertising Standards Authority in 2019 for creating the impression that the product was a lucrative investment opportunity; and further that this scandal has called into question the adequacy of gambling regulation in the UK, given the Gambling Commission saw fit to give this company a license and apparently failed to ensure adequate oversight.

The petitioners therefore request that the House of Commons urges the UK Government to launch a full independent public inquiry into this scandal to ensure that gambling regulation is fit for purpose in protecting consumers.

And the petitioners remain, etc.

[P002656]

19:12
David Linden Portrait David Linden (Glasgow East) (SNP)
- Hansard - - - Excerpts

I recently met Scope, the disability charity, which expressed concerns to me about a number of disabled people being compelled to return to work from furlough. We know, for example, that just 8.5% of people in the clinically extremely vulnerable category have received both doses of the vaccine, and the Government’s own figures show that 14% of disabled workers are employed in the wholesale and retail trade.

The petition has been presented to me, and it asks that the Government amend the coronavirus job retention scheme so that any disabled worker who is concerned about returning to work during the pandemic has the right to be put on furlough if they cannot work from home. The petitioners therefore request that the House of Commons urges the Government to consider ensuring that people with disabilities can make the decision on whether to return to work or remain on furlough. The onus should be on employees to decide, not the employer.

The petition states:

The petition of residents of the constituency of Glasgow East,

Declares that the COVID-19 pandemic has caused huge changes to the working patterns of many people across the UK, with the furlough scheme helping to support many businesses; further that restrictions across the UK are beginning to ease, with more businesses opening their doors, meaning that many people are returning to work; further that, despite the necessary safety precautions, some people with disabilities do not feel comfortable returning to work as of yet, and would rather wait until infection rates and COVID-19 cases have fallen further; further that the UK Government should ensure that nobody, particularly a person with a disability or health concern, is forced to return to work; further that the Government should commit to ensuring that the onus is on the employee to make the decision over their return to work, not the employer; further that if an employee wishes to stay on the furlough scheme they should be able to make this decision without repercussion and fear of losing their employment.

The petitioners therefore request that the House of Commons urge the Government to consider ensuring that people with disabilities are able to make the decision on whether to return to work or whether to remain on furlough and that this should be the employee’s decision, not the employer’s.

And the petitioners remain, etc.

[P002657]

Hammersmith Bridge

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
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Motion made, and Question proposed, That this House do now adjourn.—(Michael Tomlinson.)
19:14
Fleur Anderson Portrait Fleur Anderson (Putney) (Lab)
- Hansard - - - Excerpts

I thank Mr Speaker for granting the debate, because this issue is of such interest to my constituents and to people in many other constituencies surrounding mine throughout south and west London. Hammersmith bridge has been closed for over two years. In that time, we have had a pandemic, moved billions of pounds around the country, and vaccinated half the country, yet we still have not fixed Hammersmith bridge. My constituents are really frustrated by that.

Hammersmith bridge is an early prototype of the suspension bridge. It has a unique historical value, as well as being a major London artery, and we need a unique funding solution to enable a temporary bridge to open urgently, and for the restoration and the future of the bridge to be secured. Hammersmith bridge is not in my constituency, nor in the constituencies of some Members attending the debate, but that shows the wide-ranging impact of the bridge’s closure on hundreds of thousands of Londoners and why its reopening is so important and so urgent.

Our health in Putney is being damaged by the increase in pollution on our high street from the additional 4,000 vehicles a day that are being diverted. Journeys to school, to work and to healthcare appointments are very long. Businesses are suffering. This cannot go on. Time and again, we have put the case to Ministers. I have raised the matter in Westminster Hall debates, at Transport questions and business questions, in written questions, through a public petition and in letter after letter, yet here we are again, and the bridge is still not open.

Felicity Buchan Portrait Felicity Buchan (Kensington) (Con)
- Hansard - - - Excerpts

Does the hon. Lady agree that the primary responsibility for the upkeep of the bridge lies with Hammersmith and Fulham Council, which owns the bridge and has responsibility for its maintenance? My borough has two bridges: Albert bridge and Chelsea bridge. It takes full responsibility for those bridges. Over the last 10 years, it has invested £12 million to £13 million in Albert bridge, and it is about to do work on Chelsea bridge.

Fleur Anderson Portrait Fleur Anderson
- Hansard - - - Excerpts

I am grateful for the hon. Lady’s intervention. It has been said many times in many places that it is up to Hammersmith and Fulham Council, but that is absolutely not the case. Hammersmith bridge is a unique historical structure with a unique bill—£141 million. No council in London could afford that. Therefore, this issue needs a unique funding solution. I will talk about that and the bid that Hammersmith and Fulham Council has made to the Government, but now is the time for the Government to step up, because Hammersmith and Fulham Council cannot do this on its own.

I was on Putney embankment on Easter Saturday on what would have been boat race weekend, but the race could not run on the Thames because of the danger to the boats of going under the bridge. I teamed up with local rowing organisations and hundreds of constituents to protest the continuing inaction about Hammersmith bridge and to call on the Government to step up, play their part and fund its restoration. There were boats from the London Rowing Club, Wandsworth Youth River Club and Putney High School Boat Club out on the water, all of which are affected by the closure. Hundreds of local people came by, and it was not necessary for me to persuade anyone to sign the banner and send a clear message to the Secretary of State for Transport to open the bridge.

Last week, I went out on my first canvass since the start of the pandemic. I knocked on my first door in Roehampton, eager to speak to constituents again, and asked, “What issue is important to you?” The first thing they said was, “Hammersmith bridge.”

Sarah Olney Portrait Sarah Olney (Richmond Park) (LD)
- Hansard - - - Excerpts

The hon. Member is making an excellent speech, and I am extremely grateful to her for bringing the matter back to the Floor of the House for debate once more. I wonder whether she would mind me taking the opportunity to highlight the massive impact that the closure has had on the residents of Barnes in my constituency. She mentioned the difficulties that people have had in getting to work and accessing healthcare. The biggest growing issue that we have had since the reopening of schools at the beginning of March is children getting to school. They have all already suffered massive disruption to their education, but many are finding that, where they could previously walk to school in 10 to 15 minutes, it now takes them upwards of an hour on crowded public transport during the pandemic.

On top of the pressures those children are already experiencing—some with exam stress, and all the uncertainty and disruption that they have faced—they now have the additional anxiety of how to get to and from school in a way that they have never experienced. I want to highlight the massive impact that the bridge’s closure is having on young people on both sides of the bridge and the really difficult experience they are having, and to urge the Minister to come to the table and find a solution.

Fleur Anderson Portrait Fleur Anderson
- Hansard - - - Excerpts

I thank the hon. Lady for highlighting the impact on young people. I have had an email from a sixth-former in my constituency who said that they formerly left from home at 7.30 am but now have to leave at 6 o’clock in the morning. This is having a really bad impact on students across the constituency.

Ruth Cadbury Portrait Ruth Cadbury (Brentford and Isleworth) (Lab)
- Hansard - - - Excerpts

I, too, congratulate my hon. Friend on securing the debate and on her excellent speech. My constituents are also impacted, particularly by the additional road traffic that is finding its way through Chiswick as a result of the closure of Hammersmith bridge—2 or 3 miles away.

May I highlight the concern for the businesses and operators that use the river and have been unable to gain access upstream and downstream of Hammersmith bridge? They may not go under Hammersmith bridge unless the RNLI is on an emergency call, or they have to book in advance for very restricted opening—it has been on Sundays. This has had an impact not only on the RNLI’s training, maintenance needs and refuelling, but on businesses such as boatyards and the commercial tour operators, whose core business is travelling up and down the river. There is effectively a block on that at the moment, and that will continue until Hammersmith bridge is made safe.

Fleur Anderson Portrait Fleur Anderson
- Hansard - - - Excerpts

I agree absolutely, and I thank my hon. Friend for sharing the impact that the closure is having on so many businesses and organisations, and even on the RNLI, in London.

As the Minister will know, the bridge, which is one of the oldest suspension bridges in the world, was closed to cars two years ago and then fully closed to all vehicles in August 2020. The impact that is having in my constituency—and, clearly, in neighbouring constituencies —is catastrophic. However, I am not here to make the case for why the bridge needs urgently to reopen. That is so obvious, and I think it is something the Minister and I can agree on. I am here to spell out to the Minister and her Department that the biggest obstacle to progress at the moment is funding, and that only the Government have the funds, resources and legislative ability to make the changes needed to reopen and restore the bridge and to get south-west London moving again.

I want to make three points: first, about the taskforce; secondly, about Hammersmith and Fulham Council; and finally, about solutions. The taskforce, which was set up in September last year, seems to have morphed into a significant barrier to any sort of progress, instead of making the urgent progress that we need. It is little task and no force. Hammersmith and Fulham Council, Richmond Borough Council and Transport for London have carried out the actions detailed for them in the taskforce meeting, but the Government have not brought the action needed from their side.

Andy Slaughter Portrait Andy Slaughter (Hammersmith) (Lab)
- Hansard - - - Excerpts

My hon. Friend is making an excellent case, but I think she is being slightly too generous towards the taskforce. A letter from the Hammersmith Society, which is a strictly non-political and very civilised body, to the Prime Minister two weeks ago ends by saying that

“the communities on both sides of the river are unified in their anger, their disappointment and their despair at the failure of their government.”

I held a debate identical to this a year ago when the Minister was engaging with the issue and looking at bids. We have actually gone backwards in the past year, and silly political games are being played, as typified by the intervention from the hon. Member for Kensington (Felicity Buchan). What we need is a solution and funding for this major project.

Fleur Anderson Portrait Fleur Anderson
- Hansard - - - Excerpts

I thank my hon. Friend for so eloquently sharing the frustration we are feeling. I think you can understand that, Mr Deputy Speaker, and that you are feeling it from all the interventions this evening.

The taskforce has come up with no workable solutions, although the ferry will be opening in the summer. It has simply trotted out tired statements and has not discussed financing, which is why funding is the focus of the debate.

My second point concerns the financial role of Hammersmith and Fulham Council. Many people have said to me, “Why can’t the council pay for the bridge?” To expect the council to fund the restoration of the bridge and any temporary measures is unfair and unreasonable—and in fact impossible. Hammersmith bridge is extremely expensive to fix compared with other London bridges, as was mentioned earlier, in part because it is London’s earliest remaining example of a suspension structure over the river, and because of the unusual materials it is built from—cast iron, which can shatter, wrought iron and wood—and its suspension mechanisms are unique. That puts the cost of repair at an eye-watering £141 million, which is unaffordable for Hammersmith and Fulham Council, as for any council.

Felicity Buchan Portrait Felicity Buchan
- Hansard - - - Excerpts

Will the hon. Lady give way?

Fleur Anderson Portrait Fleur Anderson
- Hansard - - - Excerpts

I will continue to explain and address the point the hon. Member made earlier.

Since 2010, the Government have cut the council’s annual net budget from £180 million to £124 million this year. Even taking a loan would cause significant cuts to local services or huge rises in council tax, so the cost of repairing the bridge would be more than the council’s entire budget.

Andy Slaughter Portrait Andy Slaughter
- Hansard - - - Excerpts

My hon. Friend is being most generous in giving way. In fact, both Hammersmith and Fulham Council and Transport for London have contributed a sum of about £25 million. The Government have not contributed a penny towards the repair of Hammersmith bridge so far. Hammersmith has come up with schemes for a new temporary bridge, and so has TfL, and for stabilisation and repair. It is all there. The only people who will not engage with this are the Government, and they are doing that for deliberate political reasons.

Fleur Anderson Portrait Fleur Anderson
- Hansard - - - Excerpts

I thank my hon. Friend, and I hope that when the Minister has her opportunity to speak she will not ask again for Hammersmith and Fulham Council to fund an unprecedented 50% contribution to the bridge’s repair. That is clearly unreasonable, especially when the precedent for contributions from councils to national infrastructure projects is 15%. That makes me question whether the Government are genuinely interested in resolving the situation, or are just going to leave it.

Instead, the taskforce suggested in October 2020 that Hammersmith and Fulham Council come up with a financing plan. The council, together with TfL, had made funding applications to the Government in December 2019, February 2020 and June 2020. All three bids were rejected by the Government, and we do not know why. Instead, Hammersmith and Fulham Council went away, talked to experts and came up with a new plan—the “Outline Financial Plan”—which it submitted on 19 February.

I want to pre-empt any answer that the Minister may be ready to give about waiting for Hammersmith and Fulham Council to do more, or any repetition of the response of Baroness Vere of Norbiton to a joint letter from me, my hon. Friend the Member for Hammersmith (Andy Slaughter), the hon. Member for Richmond Park (Sarah Olney) and my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury). The Baroness’s response was:

“I suggest that it would be most beneficial for you to support the local authority in developing its preferred funding option so that we can progress the business case.”

The funding option was submitted on 19 February, seven weeks ago, and we are still waiting for a response. This is not the urgent action we need.

Any response will need the Government to agree to set up a special company or trust fund. It will need Government legislation, financial underwriting and an assurance of future revenue from Government funds or from a toll. The council needs to have that input from the Government to continue. The ball is now firmly in the Government’s court, not that of Hammersmith and Fulham Council. To say that would be to play the type of party politics that local residents are absolutely fed up with.

That brings me to my third and final point, about solutions. I hope that the Minister will shortly announce how the Government will take responsibility for the Government’s vital role in restoring the bridge. The ferry service is a partial solution—it starts in the summer—but it will not address vehicles going through Putney and it will not stop the long bus journeys for Roehampton residents.

Sarah Olney Portrait Sarah Olney
- Hansard - - - Excerpts

Briefly, does the hon. Lady agree that one of the significant disadvantages to the ferry service, welcome though it is, is that local residents will have to pay a fare to use it, as opposed to being able to use the bridge perfectly freely?

Fleur Anderson Portrait Fleur Anderson
- Hansard - - - Excerpts

I thank the hon. Member for mentioning a disadvantage of the ferry. I am concerned that that the taskforce will say, “We’ve done the ferry, and now we are not going to fix the bridge.” Putney residents are concerned about that.

A proposal to build a temporary truss bridge inside the current bridge—so, a double-decker bridge—has been given the green light as feasible, and could be built within a year, as soon as it is funded. We need that funding. The “Outline Financial Plan” was developed by Hammersmith and Fulham Council with a series of sector-leading consultants. That plan would not only see Hammersmith bridge repaired, but offer value for money to national and local taxpayers for the long-term.

The “Outline Financial Plan” was submitted on 19 February. I would like to hear whether the Government agree with the plan and are going to get on with it, or do not agree with the plan and are going to come up with one of their own. Either way, we need urgent funding solutions. It is important that these plans are engaged with and taken forward.

To sum up, my asks of the Minister tonight are fivefold. A lot of Putney residents and constituents from across south-west London will be listening tonight. First, the Government must urgently provide up-front funding for the temporary bridge, so that the original bridge can be restored and re-opened as soon as possible and the traffic diverted out of Putney High Street. Secondly, they must drop the requirement for Hammersmith and Fulham Council to provide 50% of the funding—that is not feasible, and the Minister knows it.

Thirdly, the Government must expedite action on the funding proposals submitted by Hammersmith and Fulham Council on 19 February; they present workable and realistic ways forward and must not be left to simply sit and gather dust. Fourthly, I would like reassurance that the taskforce will start delivering and co-operating, so that Hammersmith and Fulham and Richmond Councils, Transport for London and the Government work together to come up with urgent solutions. Fifthly, I ask that the Secretary of State and the leader of the Government taskforce meet me and other concerned parliamentary colleagues as a matter of urgency.

Enough talk. Our constituents want action. The Government know what they need to do. It is time they delivered on the funding agreement to finance the temporary bridge urgently and the restoration and re-opening of Hammersmith bridge.

19:31
Rachel Maclean Portrait The Parliamentary Under-Secretary of State for Transport (Rachel Maclean)
- Hansard - - - Excerpts

I congratulate the hon. Member for Putney (Fleur Anderson) on securing this important debate on funding for the restoration of Hammersmith bridge and on her detailed speech this evening. I agree with her on the issues that she highlighted, setting out the devastating impact on the physical and mental health of residents and local businesses on both sides of the river, due to the long-standing catalogue of failures and lack of action by Hammersmith and Fulham Borough Council.

The hon. Lady led a protest that took place on Easter weekend, and I commend her for doing so. I want to acknowledge her passion for getting the bridge reopened.

Andy Slaughter Portrait Andy Slaughter
- Hansard - - - Excerpts

Will the Minister give way?

Rachel Maclean Portrait Rachel Maclean
- Hansard - - - Excerpts

I will just make some progress.

I assure Members that the Government wish to see the bridge reopen as soon as is safely possible. [Interruption.] I will take interventions, but I need to correct a number of inaccurate statements before I do.

We want to make sure that Londoners can move around the capital easily by public transport, through active travel and on our roads and rivers. Therefore we want Hammersmith bridge to be reopened, despite having no statutory responsibilities for the bridge—particularly because it is wholly owned by the London Borough of Hammersmith and Fulham. The Government have stepped in to try to work collaboratively to find a solution. That is why we established a taskforce in September, led by Baroness Vere, bringing together all the relevant organisations to agree the best way forward and unblock any challenges.

I reiterate that Hammersmith bridge is owned by the London Borough of Hammersmith and Fulham. That means that the responsibility for maintaining the bridge and making decisions on its repairs and funding lies solely with the borough and not the Government. It is a travesty that we have got to a situation where the bridge has to be closed altogether, given that the council could have prevented the serious safety concerns through regular repairs and maintenance.

I would like to ensure that Members in the House and those watching are clear about what funding has been provided by the Government and what action has been taken. Since the structure was closed to vehicles in 2019, and to pedestrians, cyclists and river vessels in 2020, funding for maintenance and repairs has come from a variety of sources. The London Borough of Hammersmith and Fulham is the highway authority for the section of the A306 that runs over the bridge, so it has funded the acoustic monitoring and temperature control systems to the bridge. Those alert the borough to potential changes and allow it to take informed decisions about the safety of the bridge.

I will correct the first inaccuracy that has been stated. As part of the TfL deal on 31 October 2020, the Government ensured that £4 million—much more than a penny—was committed to start immediate mitigation works on Hammersmith Bridge during the 2021 financial year. That has funded the blast cleaning and a visual inspection of the western pedestals, giving the borough a better insight into the condition of the bridge. That is a vital step before any other engineering works can be undertaken. Members and residents need to understand that.

The funding means that risk mitigation works can begin so that the full repair programme is in the best possible position on cost, schedule and technical risk. As well as that, we have made the ferry service a condition of the TfL bridge deal, so that people, prams and bikes can cross the river safely.

Andy Slaughter Portrait Andy Slaughter
- Hansard - - - Excerpts

Will the Minister give way?

Rachel Maclean Portrait Rachel Maclean
- View Speech - Hansard - - - Excerpts

I want to address one further inaccuracy. If I have time after that, I will take an intervention.

As with any local infrastructure project, the Government expect the local authority to take the lead in promoting the scheme. We have heard from the leader of the council, who does not believe that the borough has the capital funds available to meet the costs of repairing the bridge. Indeed, on several occasions he has said that his residents are not users of the bridge and should therefore not be liable for the works.

In discussions with the leader of the council and my right hon. Friend the Secretary of State, various options for contributions for funding the project have been discussed. Unfortunately, the council seems to look to the national Government with gold-tinted lenses, not understanding that we cannot and will not hand out a blank cheque for the works. How would that be fair to taxpayers up and down the country and to those who have been responsible, such as the constituency of my hon. Friend the Member for Kensington (Felicity Buchan)? This is what councils all over the country have to do when they are carrying out major infrastructure works.

Sarah Olney Portrait Sarah Olney
- Hansard - - - Excerpts

Will the Minister give way?

Rachel Maclean Portrait Rachel Maclean
- Hansard - - - Excerpts

I am afraid I cannot, because I need to clarify a number of inaccuracies.

It has been reported in the press by the hon. Member for Putney that my right hon. Friend the Secretary of State for Transport has asked the London Borough of Hammersmith and Fulham to contribute 50% of the cost. That option was discussed. All that was requested of the borough was that the leader send a plan for the borough’s funding proposal. So far, the so-called bids that have been sent in amount to nothing more than letters asking for an unsubstantiated amount. It is simply not appropriate to ask for funding from central Government on that basis. The Borough of Hammersmith and Fulham should have taken the time to understand what is required to submit a bid to the Government. We stand ready to help. There is plenty of help available for officials to put these bids together, but that has not been happening.

When evaluating any temporary crossing solution, the complexity of procurement and requirement of various consents must be considered. Given these challenges, the borough and the taskforce determined that a ferry service would provide an immediately available alternative river crossing for pedestrians and cyclists. That has been provided and we are very grateful to the London Borough of Richmond upon Thames for its support.

The closure of the bridge has affected not just those who need to cross it, but those who travel along the river beneath it. The taskforce is an essential first step. Contrary to statements earlier, the taskforce has met regularly. It stands ready to meet any Member who would like to meet my noble Friend Baroness Vere in the other place; she is more than happy to discuss in full the detailed complexities that we cannot possibly air in a 30-minute debate in a political environment such as we have here tonight.

These are serious and complex engineering works. I am afraid that it is completely inaccurate to make the point in this House that there is no action from the Government. I will not stand here and let Opposition Members say that. We have taken on additional responsibilities—well over and above our statutory responsibilities—as Opposition Members know. We have gone out of our way to help.

Andy Slaughter Portrait Andy Slaughter
- Hansard - - - Excerpts

I am most grateful to the Minister for giving way. We need £4 million towards investigation work and there is a bill of over £140 million for repairs. Where does the Minister think that money is going to come from? She knows that it cannot come from TfL or from the London Borough of Hammersmith and Fulham. Her speech will be greeted with absolute dismay by people across London and beyond who use this major arterial route. The issue is simply not being addressed, after two years. It is a wholly irresponsible position for the Government to take. Where is that £140 million going to come from?

Rachel Maclean Portrait Rachel Maclean
- Hansard - - - Excerpts

I suggest to the hon. Member that his comments tonight are wholly irresponsible, because they have not reflected the work on the Government side to engage constructively with the London Borough of Hammersmith and Fulham in order to understand its funding position and what it can afford. The borough has not come back on any of the engagements and discussions that we have extended to it regarding realistic sums of money. If it cannot afford that amount of money, it should come back and tell us what it can afford. That is how infrastructure projects up and down the country are conducted. The hon. Member knows that very well.

Sarah Olney Portrait Sarah Olney
- Hansard - - - Excerpts

I am grateful to the Minister for giving way. She referred earlier to fairness to taxpayers. Does she think that this is fair to the taxpayers of Richmond upon Thames, who are the most affected by this bridge closure? Their lives are being ruined, their businesses are closing, they cannot get to school or work, they cannot access medical services, and they have no say over what the London Borough of Hammersmith and Fulham does with its budget, but they understand that £140 million is more than that borough can afford. They are looking to the Government for assistance, and all they ask for is a commitment for the funding. The Minister stands here and talks about all the administrative barriers that are in the way. All we ask for is a commitment.

Rachel Maclean Portrait Rachel Maclean
- Hansard - - - Excerpts

I thank the hon. Lady for her comments. It is not fair to taxpayers in any part of the country that that London borough should think that, due to its lack of a maintenance programme on this bridge over the years, people from outside the borough should be expected to stump up for its failure and incompetence. No, it is not fair to them.

In summary, as we have heard tonight, the closure of the bridge has affected not just those who need to cross it but those who travel along the river beneath it. The taskforce has enabled an agreement between the Port of London authority and the borough to allow limited and controlled river transits from 12 April when work is not being undertaken on the bridge. That is a very important point. It is welcome news for commercial river users, who can now continue operations as national lockdown restrictions ease.

Ruth Cadbury Portrait Ruth Cadbury
- Hansard - - - Excerpts

Will the Minister give way?

Rachel Maclean Portrait Rachel Maclean
- Hansard - - - Excerpts

In a moment. I have given way several times already.

I reassure Members that the Department continues to work closely with all parties involved to reach a funding solution that is fair to national taxpayers. As I have said many times, there are demands on the public purse from all over the country for all kinds of things.

We must ensure that this bridge is reopened as soon as is safely possible. In all genuineness, I encourage the Members on the Opposition Benches to work constructively with the local council to get it to engage with the Government, who are going outside their statutory responsibilities to help to get this bridge reopened so that commuters, people listening tonight, residents on both sides of the Thames, users of the river, emergency services and wider businesses can make use of the crossing and ease pressures on Putney and Chiswick bridges.

We cannot do any more without a detailed funding solution. The buck stops with Hammersmith and Fulham. It needs to present that case to the Government and then we can take action.

Question put and agreed to.

19:42
House adjourned.

Members Eligible for a Proxy Vote

Wednesday 14th April 2021

(3 years ago)

Commons Chamber
Read Full debate Read Hansard Text
The following is the list of Members currently certified as eligible for a proxy vote, and of the Members nominated as their proxy:

Member eligible for proxy vote

Nominated proxy

Ms Diane Abbott (Hackney North and Stoke Newington) (Lab)

Bell Ribeiro-Addy

Debbie Abrahams (Oldham East and Saddleworth) (Lab)

Chris Elmore

Nigel Adams (Selby and Ainsty) (Con)

Stuart Andrew

Bim Afolami (Hitchin and Harpenden) (Con)

Stuart Andrew

Adam Afriyie (Windsor) (Con)

Stuart Andrew

Imran Ahmad Khan (Wakefield) (Con)

Stuart Andrew

Nickie Aiken (Cities of London and Westminster) (Con)

Stuart Andrew

Peter Aldous (Waveney) (Con)

Stuart Andrew

Rushanara Ali (Bethnal Green and Bow) (Lab)

Chris Elmore

Tahir Ali (Birmingham, Hall Green) (Lab)

Chris Elmore

Lucy Allan (Telford) (Con)

Stuart Andrew

Dr Rosena Allin-Khan (Tooting) (Lab)

Chris Elmore

Mike Amesbury (Weaver Vale) (Lab)

Chris Elmore

Sir David Amess (Southend West) (Con)

Stuart Andrew

Fleur Anderson (Putney) (Lab)

Chris Elmore

Lee Anderson (Ashfield) (Con)

Stuart Andrew

Stuart Anderson (Wolverhampton South West) (Con)

Stuart Andrew

Caroline Ansell (Eastbourne) (Con)

Stuart Andrew

Tonia Antoniazzi (Gower) (Lab)

Chris Elmore

Edward Argar (Charnwood) (Con)

Stuart Andrew

Jonathan Ashworth (Leicester South) (Lab)

Chris Elmore

Sarah Atherton (Wrexham) (Con)

Stuart Andrew

Victoria Atkins (Louth and Horncastle) (Con)

Stuart Andrew

Gareth Bacon (Orpington) (Con)

Stuart Andrew

Mr Richard Bacon (South Norfolk) (Con)

Stuart Andrew

Kemi Badenoch (Saffron Walden) (Con)

Stuart Andrew

Shaun Bailey (West Bromwich West) (Con)

Stuart Andrew

Siobhan Baillie (Stroud) (Con)

Stuart Andrew

Duncan Baker (North Norfolk) (Con)

Stuart Andrew

Harriett Baldwin (West Worcestershire) (Con)

Stuart Andrew

Steve Barclay (North East Cambridgeshire) (Con)

Stuart Andrew

Hannah Bardell (Livingston) (SNP)

Owen Thompson

Paula Barker (Liverpool, Wavertree) (Lab)

Chris Elmore

Mr John Baron (Basildon and Billericay) (Con)

Stuart Andrew

Simon Baynes (Clwyd South) (Con)

Stuart Andrew

Margaret Beckett (Derby South) (Lab)

Chris Elmore

Apsana Begum (Poplar and Limehouse) (Lab)

Bell Ribeiro-Addy

Aaron Bell (Newcastle-under-Lyme) (Con)

Stuart Andrew

Hilary Benn (Leeds Central) (Lab)

Chris Elmore

Scott Benton (Blackpool South) (Con)

Stuart Andrew

Sir Paul Beresford (Mole Valley) (Con)

Stuart Andrew

Jake Berry (Rossendale and Darwen) (Con)

Stuart Andrew

Clive Betts (Sheffield South East) (Lab)

Chris Elmore

Saqib Bhatti (Meriden) (Con)

Stuart Andrew

Mhairi Black (Paisley and Renfrewshire South) (SNP)

Owen Thompson

Ian Blackford (Ross, Skye and Lochaber) (SNP)

Owen Thompson

Bob Blackman (Harrow East) (Con)

Stuart Andrew

Kirsty Blackman (Aberdeen North) (SNP)

Owen Thompson

Olivia Blake (Sheffield, Hallam) (Lab)

Chris Elmore

Paul Blomfield (Sheffield Central) (Lab)

Chris Elmore

Crispin Blunt (Reigate) (Con)

Stuart Andrew

Peter Bone (Wellingborough) (Con)

Stuart Andrew

Andrew Bowie (West Aberdeenshire and Kincardine) (Con)

Stuart Andrew

Tracy Brabin (Batley and Spen) (Lab/Co-op)

Chris Elmore

Ben Bradley (Mansfield) (Con)

Stuart Andrew

Karen Bradley (Staffordshire Moorlands) (Con)

Stuart Andrew

Ben Bradshaw (Exeter) (Lab)

Chris Elmore

Suella Braverman (Fareham) (Con)

Stuart Andrew

Kevin Brennan (Cardiff West) (Lab)

Chris Elmore

Jack Brereton (Stoke-on-Trent South) (Con)

Stuart Andrew

Andrew Bridgen (North West Leicestershire) (Con)

Stuart Andrew

Paul Bristow (Peterborough) (Con)

Stuart Andrew

Sara Britcliffe (Hyndburn) (Con)

Stuart Andrew

Deidre Brock (Edinburgh North and Leith) (SNP)

Owen Thompson

James Brokenshire (Old Bexley and Sidcup) (Con)

Stuart Andrew

Alan Brown (Kilmarnock and Loudon) (SNP)

Owen Thompson

Ms Lyn Brown (West Ham) (Lab)

Chris Elmore

Anthony Browne (South Cambridgeshire) (Con)

Stuart Andrew

Fiona Bruce (Congleton) (Con)

Stuart Andrew

Chris Bryant (Rhondda) (Lab)

Chris Elmore

Felicity Buchan (Kensington) (Con)

Stuart Andrew

Ms Karen Buck (Westminster North) (Lab)

Chris Elmore

Robert Buckland (South Swindon) (Con)

Stuart Andrew

Alex Burghart (Brentwood and Ongar) (Con)

Stuart Andrew

Richard Burgon (Leeds East) (Lab)

Bell Ribeiro-Addy

Conor Burns (Bournemouth West) (Con)

Stuart Andrew

Dawn Butler (Brent Central) (Lab)

Bell Ribeiro-Addy

Rob Butler (Aylesbury) (Con)

Stuart Andrew

Ian Byrne (Liverpool, West Derby) (Lab)

Chris Elmore

Liam Byrne (Birmingham, Hodge Hill) (Lab)

Chris Elmore

Ruth Cadbury (Brentford and Isleworth) (Lab)

Chris Elmore

Alun Cairns (Vale of Glamorgan) (Con)

Stuart Andrew

Amy Callaghan (East Dunbartonshire) (SNP)

Owen Thompson

Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)

Owen Thompson

Sir Alan Campbell (Tynemouth) (Con)

Chris Elmore

Mr Gregory Campbell (East Londonderry) (DUP)

Sir Jeffrey M. Donaldson

Dan Carden (Liverpool, Walton) (Lab)

Chris Elmore

Andy Carter (Warrington South) (Con)

Stuart Andrew

James Cartlidge (South Suffolk) (Con)

Stuart Andrew

Sir William Cash (Stone) (Con)

Stuart Andrew

Miriam Cates (Penistone and Stocksbridge) (Con)

Stuart Andrew

Alex Chalk (Cheltenham) (Con)

Stuart Andrew

Wendy Chamberlain (North East Fife) (LD)

Mr Alistair Carmichael

Sarah Champion (Rotherham) (Lab)

Chris Elmore

Douglas Chapman (Dunfermline and West Fife) (SNP)

Owen Thompson

Bambos Charalambous (Enfield, Southgate) (Lab)

Chris Elmore

Joanna Cherry (Edinburgh South West) (SNP)

Owen Thompson

Rehman Chishti (Gillingham and Rainham) (Con)

Stuart Andrew

Jo Churchill (Bury St Edmunds) (Con)

Stuart Andrew

Feryal Clark (Enfield North) (Lab)

Chris Elmore

Greg Clark (Tunbridge Wells) (Con)

Stuart Andrew

Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)

Stuart Andrew

Theo Clarke (Stafford) (Con)

Stuart Andrew

Brendan Clarke-Smith (Bassetlaw) (Con)

Stuart Andrew

Chris Clarkson (Heywood and Middleton) (Con)

Stuart Andrew

James Cleverly (Braintree) (Con)

Stuart Andrew

Dr Thérèse Coffey (Suffolk Coastal) (Con)

Stuart Andrew

Elliot Colburn (Carshalton and Wallington) (Con)

Stuart Andrew

Damian Collins (Folkestone and Hythe) (Con)

Stuart Andrew

Daisy Cooper (St Albans) (LD)

Mr Alistair Carmichael

Rosie Cooper (West Lancashire) (Lab)

Chris Elmore

Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)

Chris Elmore

Jeremy Corbyn (Islington North) (Ind)

Bell Ribeiro-Addy

Alberto Costa (South Leicestershire) (Con)

Stuart Andrew

Robert Courts (Witney) (Con)

Stuart Andrew

Claire Coutinho (East Surrey) (Con)

Stuart Andrew

Ronnie Cowan (Inverclyde) (SNP)

Owen Thompson

Sir Geoffrey Cox (Torridge and West Devon) (Con)

Stuart Andrew

Neil Coyle (Bermondsey and Old Southwark) (Lab)

Chris Elmore

Stephen Crabb (Preseli Pembrokeshire) (Con)

Stuart Andrew

Angela Crawley (Lanark and Hamilton East) (SNP)

Owen Thompson

Stella Creasy (Walthamstow) (Lab)

Chris Elmore

Virginia Crosbie (Ynys Môn) (Con)

Stuart Andrew

Tracey Crouch (Chatham and Aylesford) (Con)

Stuart Andrew

Jon Cruddas (Dagenham and Rainham) (Lab)

Chris Elmore

John Cryer (Leyton and Wanstead) (Lab)

Chris Elmore

Judith Cummins (Bradford South) (Lab)

Chris Elmore

Alex Cunningham (Stockton North) (Lab)

Chris Elmore

Janet Daby (Lewisham East) (Lab)

Chris Elmore

James Daly (Bury North) (Con)

Stuart Andrew

Ed Davey (Kingston and Surbiton) (LD)

Mr Alistair Carmichael

Wayne David (Caerphilly) (Lab)

Chris Elmore

David T. C. Davies (Monmouth) (Con)

Stuart Andrew

Gareth Davies (Grantham and Stamford) (Con)

Stuart Andrew

Geraint Davies (Swansea West) (Lab/Co-op)

Chris Elmore

Dr James Davies (Vale of Clwyd) (Con)

Stuart Andrew

Mims Davies (Mid Sussex) (Con)

Stuart Andrew

Alex Davies-Jones (Pontypridd) (Lab)

Chris Elmore

Philip Davies (Shipley) (Con)

Stuart Andrew

Mr David Davis (Haltemprice and Howden) (Con)

Stuart Andrew

Dehenna Davison (Bishop Auckland) (Con)

Ben Everitt

Martyn Day (Linlithgow and East Falkirk) (SNP)

Owen Thompson

Thangam Debbonaire (Bristol West) (Lab)

Chris Elmore

Marsha De Cordova (Battersea)

Bell Ribeiro-Addy

Mr Tanmanjeet Singh Dhesi (Slough) (Lab)

Chris Elmore

Caroline Dinenage (Gosport) (Con)

Stuart Andrew

Miss Sarah Dines (Derbyshire Dales) (Con)

Stuart Andrew

Mr Jonathan Djanogly (Huntingdon) (Con)

Stuart Andrew

Martin Docherty-Hughes (West Dunbartonshire) (SNP)

Owen Thompson

Anneliese Dodds (Oxford East) (Lab/Co-op)

Chris Elmore

Michelle Donelan (Chippenham) (Con)

Stuart Andrew

Dave Doogan (Angus) (SNP)

Owen Thompson

Allan Dorans (Ayr, Carrick and Cumnock) (SNP)

Owen Thompson

Ms Nadine Dorries (Mid Bedfordshire) (Con)

Stuart Andrew

Steve Double (St Austell and Newquay) (Con)

Stuart Andrew

Stephen Doughty (Cardiff South and Penarth) (Lab)

Chris Elmore

Peter Dowd (Bootle) (Lab)

Chris Elmore

Oliver Dowden (Hertsmere) (Con)

Stuart Andrew

Richard Drax (South Dorset) (Con)

Stuart Andrew

Jack Dromey (Birmingham, Erdington) (Lab)

Chris Elmore

Mrs Flick Drummond (Meon Valley) (Con)

Stuart Andrew

James Duddridge (Rochford and Southend East) (Con)

Stuart Andrew

Rosie Duffield (Canterbury) (Lab)

Chris Elmore

Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)

Stuart Andrew

Philip Dunne (Ludlow) (Con)

Stuart Andrew

Ms Angela Eagle (Wallasey) (Lab)

Chris Elmore

Maria Eagle (Garston and Halewood) (Lab)

Chris Elmore

Colum Eastwood (Foyle) (SDLP)

Ben Lake

Mark Eastwood (Dewsbury) (Con)

Stuart Andrew

Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)

Stuart Andrew

Ruth Edwards (Rushcliffe) (Con)

Stuart Andrew

Clive Efford (Eltham) (Lab)

Chris Elmore

Julie Elliott (Sunderland Central) (Lab)

Chris Elmore

Michael Ellis (Northampton North) (Con)

Stuart Andrew

Mr Tobias Ellwood (Bournemouth East) (Con)

Stuart Andrew

Mrs Natalie Elphicke (Dover) (Con)

Stuart Andrew

Florence Eshalomi (Vauxhall) (Lab/Co-op)

Chris Elmore

Bill Esterson (Sefton Central) (Lab)

Chris Elmore

George Eustice (Camborne and Redruth) (Con)

Stuart Andrew

Chris Evans (Islwyn) (Lab/Co-op)

Chris Elmore

Dr Luke Evans (Bosworth) (Con)

Stuart Andrew

Sir David Evennett (Bexleyheath and Crayford) (Con)

Stuart Andrew

Ben Everitt (Milton Keynes North) (Con)

Stuart Andrew

Michael Fabricant (Lichfield) (Con)

Stuart Andrew

Laura Farris (Newbury) (Con)

Stuart Andrew

Tim Farron (Westmorland and Lonsdale) (LD)

Mr Alistair Carmichael

Stephen Farry (North Down) (Alliance)

Mr Alistair Carmichael

Simon Fell (Barrow and Furness) (Con)

Stuart Andrew

Marion Fellows (Motherwell and Wishaw) (SNP)

Owen Thompson

Margaret Ferrier (Rutherglen and Hamilton West) (Ind)

Stuart Andrew

Katherine Fletcher (South Ribble) (Con)

Stuart Andrew

Mark Fletcher (Bolsover) (Con)

Stuart Andrew

Nick Fletcher (Don Valley) (Con)

Stuart Andrew

Stephen Flynn (Aberdeen South) (SNP)

Owen Thompson

Vicky Ford (Chelmsford) (Con)

Stuart Andrew

Kevin Foster (Torbay) (Con)

Stuart Andrew

Yvonne Fovargue (Makerfield) (Lab)

Chris Elmore

Dr Liam Fox (North Somerset) (Con)

Stuart Andrew

Vicky Foxcroft (Lewisham, Deptford) (Lab)

Chris Elmore

Mary Kelly Foy (City of Durham) (Lab)

Bell Ribeiro-Addy

Mr Mark Francois (Rayleigh and Wickford) (Con)

Stuart Andrew

Lucy Frazer (South East Cambridgeshire) (Con)

Stuart Andrew

George Freeman (Mid Norfolk) (Con)

Stuart Andrew

Mike Freer (Finchley and Golders Green) (Con)

Stuart Andrew

Richard Fuller (North East Bedfordshire) (Con)

Stuart Andrew

Marcus Fysh (Yeovil) (Con)

Stuart Andrew

Sir Roger Gale (North Thanet) (Con)

Stuart Andrew

Barry Gardiner (Brent North) (Lab)

Chris Elmore

Mark Garnier (Wyre Forest) (Con)

Stuart Andrew

Ms Nusrat Ghani (Wealden) (Con)

Stuart Andrew

Nick Gibb (Bognor Regis and Littlehampton) (Con)

Stuart Andrew

Patricia Gibson (North Ayrshire and Arran) (SNP)

Owen Thompson

Peter Gibson (Darlington) (Con)

Stuart Andrew

Jo Gideon (Stoke-on-Trent Central) (Con)

Stuart Andrew

Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)

Chris Elmore

Paul Girvan (South Antrim) (DUP)

Sir Jeffrey M. Donaldson

John Glen (Salisbury) (Con)

Stuart Andrew

Mary Glindon (North Tyneside) (Lab)

Chris Elmore

Mr Robert Goodwill (Scarborough and Whitby) (Con)

Stuart Andrew

Michael Gove (Surrey Heath) (Con)

Stuart Andrew

Patrick Grady (Glasgow North) (SNP)

Owen Thompson

Richard Graham (Gloucester) (Con)

Stuart Andrew

Mrs Helen Grant (Maidstone and The Weald) (Con)

Stuart Andrew

Peter Grant (Glenrothes) (SNP)

Owen Thompson

James Gray (North Wiltshire) (Con)

Stuart Andrew

Chris Grayling (Epsom and Ewell) (Con)

Stuart Andrew

Damian Green (Ashford) (Con)

Stuart Andrew

Kate Green (Stretford and Urmston) (Lab)

Chris Elmore

Lilian Greenwood (Nottingham South) (Lab)

Chris Elmore

Margaret Greenwood (Wirral West) (Lab)

Chris Elmore

Andrew Griffith (Arundel and South Downs) (Con)

Stuart Andrew

Nia Griffith (Llanelli) (Lab)

Chris Elmore

Kate Griffiths (Burton) (Con)

Stuart Andrew

James Grundy (Leigh) (Con)

Stuart Andrew

Jonathan Gullis (Stoke-on-Trent North) (Con)

Stuart Andrew

Andrew Gwynne (Denton and Reddish) (Lab)

Chris Elmore

Louise Haigh (Sheffield, Heeley) (Lab)

Chris Elmore

Robert Halfon (Harlow) (Con)

Stuart Andrew

Luke Hall (Thornbury and Yate) (Con)

Stuart Andrew

Fabian Hamilton (Leeds North East) (Lab)

Chris Elmore

Stephen Hammond (Wimbledon) (Con)

Stuart Andrew

Matt Hancock (West Suffolk) (Con)

Stuart Andrew

Greg Hands (Chelsea and Fulham) (Con)

Stuart Andrew

Claire Hanna (Belfast South) (SDLP)

Ben Lake

Emma Hardy (Kingston upon Hull West and Hessle) (Lab)

Chris Elmore

Ms Harriet Harman (Camberwell and Peckham) (Lab)

Chris Elmore

Mark Harper (Forest of Dean) (Con)

Stuart Andrew

Carolyn Harris (Swansea East) (Lab)

Chris Elmore

Rebecca Harris (Castle Point) (Con)

Stuart Andrew

Trudy Harrison (Copeland) (Con)

Stuart Andrew

Sally-Ann Hart (Hastings and Rye) (Con)

Stuart Andrew

Simon Hart (Carmarthen West and South Pembrokeshire) (Con)

Stuart Andrew

Helen Hayes (Dulwich and West Norwood) (Lab)

Chris Elmore

Sir John Hayes (South Holland and The Deepings) (Con)

Stuart Andrew

Sir Oliver Heald (North East Hertfordshire) (Con)

Stuart Andrew

John Healey (Wentworth and Dearne) (Lab)

Chris Elmore

James Heappey (Wells) (Con)

Stuart Andrew

Chris Heaton-Harris (Daventry) (Con)

Stuart Andrew

Gordon Henderson (Sittingbourne and Sheppey) (Con)

Stuart Andrew

Sir Mark Hendrick (Preston) (Lab/Co-op)

Chris Elmore

Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)

Owen Thompson

Darren Henry (Broxtowe) (Con)

Stuart Andrew

Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)

Chris Elmore

Damian Hinds (East Hampshire) (Con)

Stuart Andrew

Simon Hoare (North Dorset) (Con)

Stuart Andrew

Wera Hobhouse (Bath) (LD)

Mr Alistair Carmichael

Dame Margaret Hodge (Barking) (Lab)

Chris Elmore

Mrs Sharon Hodgson (Washington and Sunderland West) (Lab)

Chris Elmore

Mr Richard Holden (North West Durham) (Con)

Stuart Andrew

Kate Hollern (Blackburn) (Lab)

Chris Elmore

Kevin Hollinrake (Thirsk and Malton) (Con)

Stuart Andrew

Adam Holloway (Gravesham) (Con)

Stuart Andrew

Paul Holmes (Eastleigh) (Con)

Stuart Andrew

Rachel Hopkins (Luton South) (Lab)

Chris Elmore

Stewart Hosie (Dundee East) (SNP)

Owen Thompson

Sir George Howarth (Knowsley) (Lab)

Chris Elmore

John Howell (Henley) (Con)

Stuart Andrew

Paul Howell (Sedgefield) (Con)

Stuart Andrew

Nigel Huddleston (Mid Worcestershire) (Con)

Stuart Andrew

Dr Neil Hudson (Penrith and The Border) (Con)

Stuart Andrew

Eddie Hughes (Walsall North) (Con)

Stuart Andrew

Jane Hunt (Loughborough) (Con)

Stuart Andrew

Jeremy Hunt (South West Surrey) (Con)

Stuart Andrew

Tom Hunt (Ipswich) (Con)

Stuart Andrew

Rupa Huq (Ealing Central and Acton) (Lab)

Chris Elmore

Imran Hussain (Bradford East) (Lab)

Bell Ribeiro-Addy

Mr Alister Jack (Dumfries and Galloway) (Con)

Stuart Andrew

Christine Jardine (Edinburgh West) (LD)

Mr Alistair Carmichael

Dan Jarvis (Barnsley Central) (Lab)

Chris Elmore

Sajid Javid (Bromsgrove) (Con)

Stuart Andrew

Mr Ranil Jayawardena (North East Hampshire) (Con)

Stuart Andrew

Sir Bernard Jenkin (Harwich and North Essex) (Con)

Stuart Andrew

Mark Jenkinson (Workington) (Con)

Stuart Andrew

Andrea Jenkyns (Morley and Outwood) (Con)

Stuart Andrew

Robert Jenrick (Newark) (Con)

Stuart Andrew

Boris Johnson (Uxbridge and South Ruislip) (Con)

Stuart Andrew

Dr Caroline Johnson (Sleaford and North Hykeham) (Con)

Stuart Andrew

Dame Diana Johnson (Kingston upon Hull North) (Lab)

Chris Elmore

Gareth Johnson (Dartford) (Con)

Stuart Andrew

Kim Johnson (Liverpool, Riverside) (Lab)

Chris Elmore

David Johnston (Wantage) (Con)

Stuart Andrew

Darren Jones (Bristol North West) (Lab)

Chris Elmore

Mr David Jones (Clwyd West) (Con)

Stuart Andrew

Fay Jones (Brecon and Radnorshire) (Con)

Stuart Andrew

Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)

Chris Elmore

Mr Kevan Jones (North Durham) (Lab)

Chris Elmore

Mr Marcus Jones (Nuneaton) (Con)

Stuart Andrew

Ruth Jones (Newport West) (Lab)

Chris Elmore

Sarah Jones (Croydon Central) (Lab)

Chris Elmore

Simon Jupp (East Devon) (Con)

Stuart Andrew

Mike Kane (Wythenshawe and Sale East) (Lab)

Chris Elmore

Daniel Kawczynski (Shrewsbury and Atcham) (Con)

Stuart Andrew

Alicia Kearns (Rutland and Melton) (Con)

Stuart Andrew

Gillian Keegan (Chichester) (Con)

Stuart Andrew

Barbara Keeley (Worsley and Eccles South) (Lab)

Chris Elmore

Liz Kendall (Leicester West) (Lab)

Chris Elmore

Afzal Khan (Manchester, Gorton) (Lab)

Chris Elmore

Stephen Kinnock (Aberavon) (Lab)

Chris Elmore

Sir Greg Knight (East Yorkshire) (Con)

Stuart Andrew

Julian Knight (Solihull) (Con)

Stuart Andrew

Danny Kruger (Devizes) (Con)

Stuart Andrew

Kwasi Kwarteng (Spelthorne) (Con)

Stuart Andrew

Peter Kyle (Hove) (Lab)

Chris Elmore

Mr David Lammy (Tottenham) (Lab)

Chris Elmore

John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)

Stuart Andrew

Robert Largan (High Peak) (Con)

Stuart Andrew

Mrs Pauline Latham (Mid Derbyshire) (Con)

Mr William Wragg

Ian Lavery (Wansbeck) (Lab)

Bell Ribeiro-Addy

Chris Law (Dundee West) (SNP)

Owen Thompson

Andrea Leadsom (South Northamptonshire) (Con)

Stuart Andrew

Sir Edward Leigh (Gainsborough) (Con)

Stuart Andrew

Ian Levy (Blyth Valley) (Con)

Stuart Andrew

Mrs Emma Lewell-Buck (South Shields) (Lab)

Chris Elmore

Andrew Lewer (Northampton South) (Con)

Stuart Andrew

Brandon Lewis (Great Yarmouth) (Con)

Stuart Andrew

Clive Lewis (Norwich South) (Lab)

Chris Elmore

Dr Julian Lewis (New Forest East) (Con)

Stuart Andrew

Mr Ian Liddell-Grainger (Bridgwater and West Somerset) (Con)

Stuart Andrew

David Linden (Glasgow East) (SNP)

Owen Thompson

Tony Lloyd (Rochdale) (Lab)

Chris Elmore

Carla Lockhart (Upper Bann) (DUP)

Sir Jeffrey M. Donaldson

Mark Logan (Bolton North East) (Con)

Stuart Andrew

Rebecca Long Bailey (Salford and Eccles) (Lab)

Bell Ribeiro-Addy

Marco Longhi (Dudley North) (Con)

Stuart Andrew

Julia Lopez (Hornchurch and Upminster) (Con)

Stuart Andrew

Jack Lopresti (Filton and Bradley Stoke) (Con)

Stuart Andrew

Mr Jonathan Lord (Woking) (Con)

Stuart Andrew

Tim Loughton (East Worthing and Shoreham) (Con)

Stuart Andrew

Caroline Lucas (Brighton, Pavilion) (Green)

Bell Ribeiro-Addy

Holly Lynch (Halifax) (Lab)

Chris Elmore

Steve McCabe (Birmingham, Selly Oak) (Lab)

Chris Elmore

Kerry McCarthy (Bristol East) (Lab)

Chris Elmore

Jason McCartney (Colne Valley) (Con)

Stuart Andrew

Karl MᶜCartney (Lincoln) (Con)

Stuart Andrew

Siobhain McDonagh (Mitcham and Morden) (Lab)

Chris Elmore

Andy McDonald (Middlesbrough) (Lab)

Chris Elmore

Stewart Malcolm McDonald (Glasgow South) (SNP)

Owen Thompson

Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)

Owen Thompson

John McDonnell (Hayes and Harlington) (Lab)

Bell Ribeiro-Addy

Mr Pat McFadden (Wolverhampton South East) (Lab)

Chris Elmore

Conor McGinn (St Helens North) (Lab)

Chris Elmore

Alison McGovern (Wirral South) (Lab)

Chris Elmore

Craig Mackinlay (South Thanet) (Con)

Stuart Andrew

Catherine McKinnell (Newcastle upon Tyne North) (Lab)

Chris Elmore

Cherilyn Mackrory (Truro and Falmouth) (Con)

Stuart Andrew

Anne McLaughlin (Glasgow North East) (SNP)

Owen Thompson

Rachel Maclean (Redditch) (Con)

Stuart Andrew

Jim McMahon (Oldham West and Royton) (Lab)

Chris Elmore

Anna McMorrin (Cardiff North) (Lab)

Chris Elmore

John Mc Nally (Falkirk) (SNP)

Owen Thompson

Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)

Owen Thompson

Stephen McPartland (Stevenage) (Con)

Stuart Andrew

Esther McVey (Tatton) (Con)

Stuart Andrew

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Draft Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021 Draft Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021

Wednesday 14th April 2021

(3 years ago)

General Committees
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
The Committee consisted of the following Members:
Chair: †Mrs Sheryll Murray
† Badenoch, Kemi (Exchequer Secretary to the Treasury)
Betts, Mr Clive (Sheffield South East) (Lab)
Caulfield, Maria (Lewes) (Con)
Duffield, Rosie (Canterbury) (Lab)
Duguid, David (Parliamentary Under-Secretary of State for Scotland)
† Fletcher, Colleen (Coventry North East) (Lab)
Harris, Rebecca (Lord Commissioner of Her Majesty's Treasury)
Mann, Scott (North Cornwall) (Con)
† Morris, James (Lord Commissioner of Her Majesty's Treasury)
† Oppong-Asare, Abena (Erith and Thamesmead) (Lab)
† Rutley, David (Lord Commissioner of Her Majesty's Treasury)
Slaughter, Andy (Hammersmith) (Lab)
Thomson, Richard (Gordon) (SNP)
Throup, Maggie (Lord Commissioner of Her Majesty's Treasury)
Tomlinson, Michael (Lord Commissioner of Her Majesty's Treasury)
Whitley, Mick (Birkenhead) (Lab)
Williams, Craig (Montgomeryshire) (Con)
Robi Quigley, Committee Clerk
† attended the Committee
Third Delegated Legislation Committee
Wednesday 14 April 2021
[Mrs Sheryll Murray in the Chair]
Draft Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021
14:30
None Portrait The Chair
- Hansard -

Before we begin, I remind Members to observe social distancing and to sit only in places that are clearly marked. I also remind Members that Mr Speaker has stated that masks should be worn in Committee. Hansard colleagues will be most grateful if Members could send their speaking notes to hansardnotes@parliament.uk.

Kemi Badenoch Portrait The Exchequer Secretary to the Treasury (Kemi Badenoch)
- Hansard - - - Excerpts

I beg to move,

That the Committee has considered the draft Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021.

None Portrait The Chair
- Hansard -

With this it will be convenient to consider the draft Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021.

Kemi Badenoch Portrait Kemi Badenoch
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Mrs Murray. The two draft instruments relate to the UK emissions trading scheme or ETS.

At the end of the transition period, the UK ceased to participate in the European Union’s emissions trading scheme. However, the Government remain committed to maintaining an ambitious carbon price to ensure that polluters continue to pay for their emissions, as they should. At the start of the year, we launched the UK ETS, which has been legally established under the Climate Change Act 2008. It is a UK-wide greenhouse gas emissions trading scheme designed to encourage emissions reductions when most cost-effective. It applies to energy generation, energy-intensive industries and aviation.

Reducing emissions while supporting UK industry is central to the Government’s mission to deliver our world-leading net zero target. The UK ETS is key to achieving that goal. The new scheme provides a smooth transition for businesses while reducing our contribution to climate change from day one.

Emissions trading schemes work on the cap-and-trade principle. A cap is set on the total amount of greenhouse emissions covered by the scheme and, within that cap, participants receive or buy emission allowances, which may be traded with other participants as required. The cap is reduced over time, so that total emissions fall. Participants are required to monitor their emissions and to surrender one emission allowance for every tonne of carbon dioxide equivalent emitted. An ETS is therefore underpinned by the creation of a market for emission allowances. Auctioning and trading such allowances leads to the discovery of a market price for greenhouse gas emissions.

The UK ETS was established by the Greenhouse Gas Emissions Trading Scheme Order 2020. That GGETS order was made under the Climate Change Act 2008 on 11 November 2020. It set up a UK-wide emissions trading scheme, as launched on 1 January 2021. The GGETS order regulates the emission of greenhouse gases in the United Kingdom, permits the creation of allowances to emit 1 tonne of carbon dioxide equivalent and sets a cap on the number of allowances that may be created in any scheme year.

The draft regulations we are debating today relate to the auction of emissions allowances as part of the UK ETS. The first of the statutory instruments is the draft Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021. It creates an oversight role for the Financial Conduct Authority, the FCA, in the UK ETS and emission allowance market. It was laid under the European Union (Withdrawal) Act 2018 and makes consequential amendments to financial services law and related matters to provide for the safe and effective operation of the market for UK emission allowances as part of the UK ETS.

The SI amends existing financial services legislation so that it works in the context of a UK-only ETS. In doing so, it ensures that the Financial Conduct Authority can oversee the auctioning and trading of emission allowances and can ensure the soundness and integrity of the market. The instrument has been introduced now so that it may receive parliamentary approval in time for the first auctioning of UK emission allowances in May 2021.

The draft SI establishes the activity of bidding in an emission allowance auction as a regulated activity and establishes UK emission allowances as financial instruments. That means that the FCA has oversight of bidding in allowance auctions, and ensures that the allowances themselves are subject to the appropriate regulatory treatment with regard to issues such as market abuse. The instrument also amends financial promotion legislation, so that the promotion of investments in UK emission allowances can be undertaken only by persons with the correct permissions.

To properly empower the FCA to oversee the regime, the SI also updates rules around the disclosure of confidential information so that the FCA can correctly discharge its functions with regard to the disclosure of information relating to the UK ETS and emission allowance holdings. It ensures that the FCA has the investigation and enforcement powers to fulfil its duties with regard to preventing financial misconduct in the context of the auctioning and trading of emission allowances.

Finally, the SI amends the UK market abuse regulation, known as UK MAR, so that it covers the primary and secondary market trading of UK emission allowances and the secondary market trading of EU emission allowances when those activities are within the territorial scope of UK MAR. In summary, the instrument will ensure the integrity of the UK carbon emission allowances market, in turn facilitating the contribution that the new UK ETS will make as the UK’s leading carbon pricing policy instrument. That will encourage cost-effective emission reductions, and therefore help us to achieve our net zero goal.

Alongside the draft Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021 are the draft Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021, which were laid before the House on 11 February 2021. A correction slip was laid on 15 February 2021 for a minor amendment clarifying that the UK ETS will have an auction reserve price of £22 per tonne of carbon dioxide equivalent, as announced alongside the publication of the draft regulations on 11 February.

The instrument provides for the auctioning of emission allowances to emit 1 tonne of carbon dioxide equivalent under the UK emissions trading scheme and introduces mechanisms to support market stability in the new scheme. The draft regulations are made under the power in section 96 of the Finance Act 2020 to make regulations on the allocation of emission allowances in exchange for payment. The draft regulations make provision under the Act for auctions of allowances to emit 1 tonne of carbon dioxide equivalent created under the Greenhouse Gas Emissions Trading Scheme Order 2020.

Part 1 contains the interpretation provisions. Part 2 provides for the products to be auctioned and sets out how bids are to be submitted and withdrawn, and how the auction clearing price is to be determined. Part 3 makes provision for the auction calendar and when the calendar may be adjusted. It sets out what happens to the volume of allowances at cancelled auctions, what volume of allowances are to be auctioned annually, and provides for a cost containment mechanism, enabling the Treasury to adjust the distribution or volume of allowances to be auctioned in any one year if the carbon price exceeds specified limits.

Part 4 provides for access to auctions. Parts 5, 6 and 7 provide for the appointment and functions of the auctioneer and the auction platform, and their appointment requirements. Part 8 provides for the reporting of transactions. Part 9 provides for the payment and transfer of the auction proceeds. Part 10 provides for the delivery of the auctioned allowances. Part 11 provides for the management of collateral. Part 12 provides for fees and costs.

Part 13 provides for monitoring of auctions, remedial measures and sanctions. Part 14 provides for the publication of auction results and protection of confidential information. Finally, Part 15 makes provision for a right of appeal and the correction of errors. The instrument therefore provides the rules covering both auctions and secondary markets for emission allowances as part of the UK ETS. It also introduces mechanisms to support market stability.

The two instruments will ensure the functionality and integrity of the auctioning and trading of emission allowances due to begin next month, thereby preserving the soundness of the UK ETS market. Together, they are fundamental to the Government’s ambitions to encourage cost-effective emission reductions and ultimately to achieve our goal of net zero.

14:39
Abena Oppong-Asare Portrait Abena Oppong-Asare (Erith and Thamesmead) (Lab)
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Mrs Murray. I thank the Minister for providing an overview of the regulations. As she has said, the regulations take further steps to establish a UK ETS by setting out more detail on how the auctions will operate. The second set of regulations amend financial services legislation to allow the functioning of the new UK ETS and to continue the Financial Conduct Authority’s role in regulating aspects of it.

We do not oppose the regulations, but I wish to make a couple of points and ask the Minister some questions. There has been a long-running debate, not least among the Government themselves, about what should replace the EU ETS as the UK left the EU. Until relatively recently, the Government were considering three options: a stand-alone UK ETS, a linked scheme or a carbon tax. The uncertainty about carbon pricing left many UK businesses in a state of confusion last year. It is welcoming that some clarity is now being given by the Government, but it is far from ideal that they are bringing forward this detail after the UK ETS has already been in existence for over three months. Once again, businesses have been left in the lurch. I am afraid that this sort of last-minute policy making, which does not recognise the long lead-in times that businesses need to operate, is typical of the Government.

We welcome the Government’s decision to stick with the cap-and-trade principles rather than pursue a carbon tax, and we support the creation of a UK ETS. However, we believe it is critical that the UK ETS is linked with the EU ETS. I am sure the Minister agrees that the only way to address climate change is to do so in partnership with countries around the world, and that we need an international approach to reducing carbon emissions. I hope that the Government will not let political or ideological aversion to working with the EU get in the way of doing what is best for the environment.

The Government’s energy White Paper, published last December, said:

“The UK is also open to linking the UK ETS internationally in principle and we are considering a range of options, but no decision on our preferred linking partners has yet been made.”

Can the Minister update us on whether negotiations have started with the EU on this issue? Can she tell us whether the Government are considering linking with other schemes around the world? If so, which ones? We really need some clarity on this vital issue.

I turn now to some specific points about the regulations, which set the auction reserve price at £22 per tonne of carbon. That is an increase from the Government’s previous proposal, but the Minister will know that the EU ETS price has increased considerably in recent months and is currently around £44. Do the Government intend to make any further changes to ARP in the light of this? The auction reserve price must be set at a level that creates a robust market and ultimately drives down emissions.

There is also an issue of market volatility, which has the potential to be especially problematic, given the smaller size of the UK ETS versus the EU ETS. A report by the Climate Change Committee said that

“a standalone UK ETS faces potentially significant challenges in achieving market stability and liquidity.”

Clearly, linking with the EU ETS would mitigate the risk, as would expanding the range of sectors covered by the ETS. It has recently been reported that the Government are considering extending ETS to the agriculture sector. Can the Minister update us on the Government’s thinking on this issue, and can she set out what steps the Government will take to ensure the market functions correctly?

A well-functioning and ambitious emissions trading system will clearly be a critical tool in our path to net zero. It is extremely important that the Government get that detail of the system right, and I hope the Minister can provide some reassurances on this today.

14:44
Kemi Badenoch Portrait Kemi Badenoch
- Hansard - - - Excerpts

I thank the hon. Lady for her contribution to the debate and for the Opposition’s broad support for carbon pricing and the draft instruments. She asked whether we are still interested in linking the UK ETS to the EU ETS. The UK is open to linking the UK ETS internationally in principle. We are considering a range of options, but no decisions on preferred linking partners have yet been made. We are already looking to innovate and create schemes suited to the UK and our climate commitments. We have started by reducing the cap on emissions by 5% compared with what it would have been within the EU, and we will set out further plans ahead of COP26. Having our own scheme means that we can be flexible, now that we are a sovereign nation, and can go further and faster than the EU.

Regarding which option we took, whether a stand-alone UK ETS, a carbon emissions tax and so on, the Government carefully considered the important economic and environmental aspects of each policy ahead of making a decision for a UK ETS. That included the certainty of carbon price, simplicity of the policy and the cost to business. On balance, however, the Government felt that the UK ETS—with a cap on emissions, which we will consult on to enable it to align with net zero, and the continuity it offers participants—offers a better basis for businesses to decarbonise. It is right that, at the moment of leaving the EU, we took the time to prepare properly and consider both a UK ETS and a carbon tax, given that the chosen mechanism will be crucial to meeting our climate ambitions over the coming decades. Preparations for a carbon emissions tax were already advanced due to the contingency planning that took place for the scenario whereby the UK left the EU without a deal and thereby ceased to participate in the EU ETS. As such, additional costs to develop this option further were minimal. I remind the hon. Lady that payment will not be due until April 2022, so I do not accept the assertion that businesses have been left with uncertainty; we have actually given them quite a lot of time to prepare for changes.

The hon. Lady also asked what we will do with the auction reserve price. We have set a floor for that. The Government would be prepared, should prices become exceedingly high, to intervene, but at the moment we will let the market run its course. She also asked about the tax implications for sectors such as agriculture. I say to her that the Treasury keeps all taxes under review.

The draft Recognised Auction Platforms (Amendment and Miscellaneous Provisions) Regulations 2021, laid under the European Union (Withdrawal) Act 2018, will make amendments to financial services law to provide for the safe and effective operation of the UK emissions allowances market, as part of the UK ETS. The draft Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021, laid under the Finance Act 2020, will provide for the auctioning of emissions allowances under the UK ETS. It will also introduce mechanisms to support market stability in the new scheme. Together, these two instruments will ensure the integrity of the market that will underpin our carbon pricing goals and are vital to ensuring that the UK ETS can function as planned.

I thank the hon. Lady for her contribution, and I greatly appreciate the support that has been shown for the draft instruments, which will ensure that the UK has a domestic carbon pricing policy that is fit for the net zero future we have committed to.

Question put and agreed to.

Draft Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021

Resolved,

That the Committee has considered the draft Greenhouse Gas Emissions Trading Scheme Auctioning Regulations 2021.—(Kemi Badenoch.)

14:45
Committee rose.

Petition

Wednesday 14th April 2021

(3 years ago)

Petitions
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Wednesday 14 April 2021

Bank closures in North Ayrshire

Wednesday 14th April 2021

(3 years ago)

Petitions
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The petition of the constituency of North Ayrshire and Arran,
Declares that there is an urgent need to tackle the exodus of high street banks from North Ayrshire; expresses extreme concern about the recent decision by TSB Bank to close its branches in Kilbirnie, Largs and Saltcoats; notes that seven of the ten towns in the constituency of North Ayrshire & Arran – namely West Kilbride, Dalry, Ardrossan, Stevenston, Beith, and now Kilbirnie are now without any high street bank, making it one of the worst hit constituencies in the UK for bank branch closures; declares that many high street businesses are adversely impacted by bank branch closures, as they face increased insurance costs without local access to night safes to deposit cash at the end of the business day; further declares that local communities, particularly elderly and disabled residents who are more likely to face digital exclusion, will suffer because of these decisions which increasingly force consumers to bank online; and further expresses deep disappointment that customers feel they have no choice but to accept online banking, however reluctantly or endure lengthy journeys in order to effectively manage their money.
The petitioners therefore request that the House of Commons urges the UK Government to work in partnership with the banking industry to deliver banking hubs for communities to ensure financial inclusion for all.
And the petitioners remain, etc.—[Presented by Patricia Gibson, Official Report, Tuesday 3 November 2020; Vol. 683, c. 285.]
[P002618]
Observation from The Economic Secretary to the Treasury (John Glen):
The Government thank the hon. Member for North Ayrshire and Arran (Patricia Gibson) for submitting a petition opposing a bank branch closure on behalf of her constituents.
The Government are sorry to hear of her constituents’ disappointment at the planned closure of the TSB branches in Kilbirnie, Largs and Saltcoats. The way consumers interact with their banking is changing. In recent years, two-thirds of UK adults have used contactless payments, 72% have used online banking and 48% have used mobile banking, according to UK Finance. The Government cannot reverse the changes in the market and in customer behaviour; nor can they determine firms’ commercial strategies in response to those changes. Having the flexibility to respond to changes in the market is what makes the UK’s financial services sector one of the most competitive and productive in the world, and the Government want to protect that.
As with other banking service providers, TSB needs to balance customer interests, market competition, and other commercial factors when considering its strategy. Although I can understand the constituents’ dissatisfaction, decisions on opening and closing branches are taken by the management team of each bank on a commercial basis. The Government hope hon. Members can appreciate that it would be inappropriate for the Government to intervene in these decisions.
However, the Government firmly believe that the impact of branch closures should be understood, considered, and mitigated where possible so that all customers, wherever they live, continue to have access to over the counter banking services.
As the hon. Member may know, the major high street banks signed up to the Access to Banking Standard in May 2017, which commits them to ensure customers are well informed about branch closures, the bank’s reasons for closure and options for continued access to banking services. Alternative options for access might include the Post Office which allows 95% of business and 99% of personal banking customers to carry out their everyday banking at 11,500 post office branches in the UK.
In September 2020, the Financial Conduct Authority (FCA) published guidance setting out its expectation of firms when they are deciding to reduce the number of physical branches or the number of free-to-use ATMs. Firms are expected to carefully consider the impact of a planned closure on their customers’ everyday banking and cash access needs, and other relevant branch services and consider possible alternative access arrangements. This will ensure the implementation of closure decisions is done in a way that treats customers fairly.
The petition requests that the Government work in partnership with the banking industry to delivery banking hubs for communities to ensure financial inclusion for all. While banks do have to comply with competition law, there is no specific regulation that prevents them from sharing branches or other premises where their interests require. The Government do not intervene in these commercial decisions, but will continue to encourage banks to think creatively about how they can ensure that consumers can access a wide range of banking services on a sustainable basis.
The Government note the concern for constituents who face digital exclusion. The Government understand that to have a world-leading digital economy we must ensure that as many people as possible can reap the benefits of being online and the technologies that can transform our lives, benefit society and drive prosperity and growth. There are a number of organisations that can help the elderly navigate the online world:
The online centres network, which is made up of over 5,000 organisations based at the heart of hyper-local communities, all working together to tackle digital and social exclusion by providing people with the skills and confidence they need to access digital technology. Constituents can find their local online centre at: https://www.onlinecentresnetwork.org/ournetwork/ find-centre#/map
Age UK also provides help with technology and the internet, and has guides to help people stay safe online and to make the most of the internet. Age UK provide training courses which explain things without technical jargon to get people online. To access these services, constituents can call the Age UK advice line on 0800 055 6112. More information on how to find help is available at: https://www.ageuk.org.uk/scotland/services/
The Government cannot intervene in firms’ commercial strategies in response to changes in the market. However, the Government understand that access to physical banking continues to be important to many communities and will continue to work with industry, the Post Office and the FCA to ensure everyone continues to have access to essential banking services.

Advanced Research and Invention Agency Bill (First sitting)

Wednesday 14th April 2021

(3 years ago)

Public Bill Committees
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The Committee consisted of the following Members:
Chairs: Judith Cummins, Mr Philip Hollobone, † Esther McVey, Derek Twigg
† Baker, Duncan (North Norfolk) (Con)
† Bell, Aaron (Newcastle-under-Lyme) (Con)
Blackman, Kirsty (Aberdeen North) (SNP)
† Butler, Dawn (Brent Central) (Lab)
† Crosbie, Virginia (Ynys Môn) (Con)
† Fletcher, Mark (Bolsover) (Con)
† Flynn, Stephen (Aberdeen South) (SNP)
† Furniss, Gill (Sheffield, Brightside and Hillsborough) (Lab)
† Hunt, Jane (Loughborough) (Con)
† Mayhew, Jerome (Broadland) (Con)
† Metcalfe, Stephen (South Basildon and East Thurrock) (Con)
† Onwurah, Chi (Newcastle upon Tyne Central) (Lab)
† Owen, Sarah (Luton North) (Lab)
Richardson, Angela (Guildford) (Con)
† Solloway, Amanda (Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy)
† Tomlinson, Michael (Lord Commissioner of Her Majestys Treasury)
† Zeichner, Daniel (Cambridge) (Lab)
Sarah Ioannou, Seb Newman, Committee Clerks
† attended the Committee
Witnesses
Tris Dyson, Managing Director, Nesta Challenges
Professor Dame Ottoline Leyser, CEO, UK Research and Innovation
Professor James Wilsdon, Digital Science Professor of Research Policy, University of Sheffield
Professor Mariana Mazzucato, Professor in the Economics of Innovation and Public Value, University College London
Professor Philip Bond, Professor of Creativity and Innovation, University of Manchester
Public Bill Committee
Wednesday 14 April 2021
(Morning)
[Esther McVey in the Chair]
Advanced Research and Invention Agency Bill
09:25
None Portrait The Chair
- Hansard -

Before we begin, I have a few preliminary announcements. Hon. Members will understand the need to respect social distancing guidance. In line with the House of Commons Commission decision, face coverings should be worn in Committee unless Members are speaking or medically exempt. Hansard colleagues would be grateful if Members emailed their speaking notes to hansardnotes@parliament.uk. Please switch electronic devices to silent mode. Tea and coffee are not allowed during sittings.

Today, we will first consider the programme motion on the amendment paper. We will then consider a motion to enable the reporting of written evidence for publication and a motion to allow us to deliberate in private about our questions before the oral evidence sessions. In view of the time available, I hope that we can take these matters formally, without debate. The programme motion was discussed yesterday by the Programming Sub-Committee for the Bill.

Ordered,

That—

(1) the Committee shall (in addition to its first meeting at 9.25 am on Wednesday 14 April) meet—

(a) at 2.00 pm on Wednesday 14 April;

(b) at 9.25 am and 2.00 pm on Tuesday 20 April;

(c) at 11.30 am and 2.00 pm on Thursday 22 April;

(d) at 9.25 am and 2.00 pm on Tuesday 27 April;

(2) the Committee shall hear oral evidence in accordance with the following Table;

TABLE

Date

Time

Witness

Wednesday 14 April

Until no later than 10.25 am

Nesta; UK Research and Innovation

Wednesday 14 April

Until no later than 11.25 am

Professor Philip Bond, University of Manchester; Professor Mariana Mazzucato, University College London; Professor James Wilsdon, University of Sheffield

Wednesday 14 April

Until no later than 3.00 pm

Defense Advanced Research Projects Agency; Wellcome Leap; Professor Pierre Azoulay, MIT

Wednesday 14 April

Until no later than 3.45 pm

Professor Dame Anne Glover, Royal Society of Edinburgh (formerly); Tabitha Goldstaub, CognitionX

Wednesday 14 April

Until no later than 4.30 pm

The Royal Society; Royal Academy of Engineering; Confederation of British Industry

Wednesday 14 April

Until no later than 5.00 pm

David Cleevely, Focal Point Positioning Ltd and the Cambridge Science Centre; Campaign for Science and Engineering



(3) proceedings on consideration of the Bill in Committee shall be taken in the following order: Clause 1; Schedule 1; Clauses 2 to 7; Schedule 2; Clauses 8 and 9; Schedule 3; Clauses 10 to 15; new Clauses; new Schedules; remaining proceedings on the Bill;

(4) the proceedings shall (so far as not previously concluded) be brought to a conclusion at 5.00 pm on Tuesday 27 April.—(Amanda Solloway.)

None Portrait The Chair
- Hansard -

The deadline for amendments to be considered at the first two line-by-line sittings of the Committee, on Tuesday 20 April, is the rise of the House tomorrow.

Resolved,

That, subject to the discretion of the Chair, any written evidence received by the Committee shall be reported to the House for publication.—(Amanda Solloway.)

None Portrait The Chair
- Hansard -

Copies of written evidence that the Committee receives will be made available in the Committee Room and circulated to Members by email.

Resolved,

That, at this and any subsequent meeting at which oral evidence is to be heard, the Committee shall sit in private until the witnesses are admitted.—(Amanda Solloway.)

09:28
The Committee deliberated in private.
Examination of Witnesses
Tris Dyson and Professor Dame Ottoline Leyser gave evidence.
09:26
None Portrait The Chair
- Hansard -

Q1 Before we start hearing from the witnesses, do any Members wish to make declarations of interest in connection with the Bill? Nobody has given notice that they would like to do that. We will now hear oral evidence from Tris Dyson, managing director at Nesta Challenges, and Professor Dame Ottoline Leyser, chief executive officer of UK Research and Innovation. Before calling the first Member to ask a question, I remind all Members that questions should be limited to matters within the scope of the Bill and that we should stick to the timings in the programme order agreed by the Committee. We have until 10.25 am for the first witness session. Tris Dyson, please introduce yourself for the record.

Tris Dyson: Good morning. My name is Tris Dyson. I am the founder and managing director of Nesta Challenges, which was set up in 2013 by the UK Government in partnership with the innovation foundation Nesta. Its explicit purpose is to develop UK expertise in challenge prizes as a funding model for frontier innovation. We have grown significantly over that period of time and are now something of an export; we design and develop challenge prizes for Governments around the world in North America, Europe, Africa and so on, and for companies and foundations. Essentially, the model looks at where you can stimulate innovation and new activity to create new markets, new opportunities and to solve important societal problems.

None Portrait The Chair
- Hansard -

Q Thank you. Professor Dame Ottoline Leyser, please introduce yourself for the record.

Professor Leyser: Thank you. My name is Ottoline Leyser and I am the CEO of UK Research and Innovation, which is an arm’s length body of the Business, Energy and Industrial Strategy Department. We are the major public sector funder of research and innovation for the UK. We fund right across the disciplines and sectors that conduct research and innovation.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

Q Given that this is my first contribution, may I say what a pleasure it is to serve under your chairship, Ms McVey? I look forward to working with all members of the Committee on the Bill, which is important for our future research and prosperity.

I welcome our two witnesses. I have one general question for both of you, given your broad range of experience in research and development: what is the problem that the Advanced Research and Invention Agency is fixing? Professor Dame Ottoline, do you have a clear understanding of the proposed working relationship between ARIA and UK Research and Innovation, and should that be put on a formal footing to provide clarity? Mr Dyson, Nesta Challenges is based on challenges, so what is the role of challenges and missions with regard to the work of ARIA in driving high-risk, high-reward research?

Professor Leyser: I do not actually see ARIA as being about fixing a problem; I see it as adding something new and extra to an already very high-quality research and innovation system. As I have said, UKRI is the major public funder for research and innovation. We invest £8 billion of public money every year in research innovation, and we have a major responsibility to act as stewards for the whole system in the UK to ensure that it has the right capabilities and capacity to conduct the research and innovation that we need for the kind of inclusive and sustainable knowledge economy that is so important for our country.

As CEO of UKRI, I have to think about all parts of the system. I have to think about the people—do we have the right kinds of people in the system, the right mix, the right diversity, the right set of skills, and the right career trajectories and pathways through the system? I have to think about infrastructures—do we have the right balance of institutes, universities, catapults and national facilities, as well as high-quality equipment within institutions and universities, for example? Are we funding the right mix of ideas, starting from the really high-risk, high-gain research, which will be the focus of ARIA? It is also our responsibility to fund the really important work that perhaps does not fall into that transformative, high-risk, high-reward category, but without which the benefits of that high-risk, high-reward research will not be realised and the foundations for the next transformative ideas will not be built. I also have to think about the connectivity in the system, how to join it up and make it all work effectively. Then I have to think about how we can take that and focus it on particular challenges that we face in the country. The work that UKRI does seeks to balance all of those needs and support all of them to create a really high-functioning system for the UK.

I hope that ARIA will do what you might call an extreme or particularly transformative, visionary version of that focus activity, so it will work in a different way from the way in which we typically work. Because of our incredibly broad responsibility for the system, we tend to work in a way that asks the system, in a very broad and open way, how it can best deliver the things that we think need to happen, whereas ARIA will work on the programme manager model, so it will identify a small cadre of visionary leaders who will have extraordinary ideas, we hope, to drive forward the edge of the edge, transformative, visionary ideas, and they will hopefully be empowered to work in very different, agile ways to take forward those kinds of ideas. That is quite experimental. They should be able to experiment with different ways of funding research, including, for example, the challenge model, which Tris is such an expert on. There is a whole range of opportunities. That is how I see it working. It is a small, agile agency that will bring together these visionary individuals to add something on top of a very high-functioning system. It is not about fixing a problem; it is about adding something new at the edge of the edge to push forward those frontiers.

I absolutely agree that it is very important that activity is properly rooted in the research base for which I and UKRI are responsible, because it will depend totally on that research base. The people employed at ARIA will absolutely need to understand deeply what UKRI is doing and what the opportunities are across that research base in order to deliver their vision. I would expect a very close working relationship with ARIA to allow that to happen.

Tris Dyson: I would agree with quite a bit of that. Nesta Challenges produced a report in the summer called “The Great Innovation Challenge”, which we should share with you. We looked at the funding ecosystem. The current funding ecosystem is pretty good and our main funding mechanisms work quite well. It is not wasted. It includes direct financial support through bodies such as UKRI and also the Small Business Research Initiative. It also includes research and development tax credits and the effect that has.

There has, however, as I think the Government have recognised, been an overall need to increase funding in research and development, which is why the target of 2.4% and the promised increases in Government funding are so welcome. In that context, we think that there is an opportunity to explore new avenues and do things slightly differently. Some of the opportunities that that presents, both through ARIA and more generally, is around boosting the diversity of people involved in frontier technology and innovation and improving geographical reach. If we do have a long-standing problem in the UK, it is perhaps with that feed-in to commercialisation and the connection between university R&D and patenting and things that get picked up by the private sector, so that might be something to look at. We do not think that there is a problem, but I guess that this does present, as Ottoline has said, an opportunity for a new, smaller, dynamic agency to add to the current ecosystem.

We think the advantage of ARIA would be that, because it is smaller, it might be able to generate a culture that is a bit more nimble and a bit more agile, take some more risks, look at things about diversity of innovators, and engage with types of innovation and types of innovation funding that ordinarily might be perhaps a little too high risk. It can also be a little more focused and entrepreneurial, but—to consider the second part of the question—it can also look beyond just grants and R&D tax credits, which are overwhelmingly the main way of funding innovation in the UK.

On the role of challenge prizes, challenges get used quite loosely to mean a lot of things, but what we mean by them is outcome-based funding, where you use the combination of technology foresight and insight with some creativity and understanding of how markets evolve and develop, and what opportunities might exist in the future, in order to identify quite specific problems, where there is a real ability to push things forward in innovation but where it is unclear where the most promising innovation is going to come from. For ARIA, I think that this might be quite a useful tool, because, comparatively speaking, you are dealing with relatively small amounts of money, and outcome-based challenge funding gives you a degree of focus but also allows a degree of payment on results. So, you have milestone payments on the basis of ability to solve problem A, B or C, or of demonstrating some traction in the market.

They have other benefits as well, which go beyond the non-financial. You can use relatively smaller amounts of money in a challenge prize model because you might be building up a deal flow for investors, customers and other people who you want to crowd in and bring in additional funding. They are also quite high-profile because of the nature of the competition or the race towards solving x. That means that the publicity and the promotional opportunities for innovators can be quite significant, above and beyond just the financial reward.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much for those responses. It is great to hear such support for our existing science base. A lot of the discussion around the Bill has been critical of the bureaucracy associated with current research, which has served us so well, particularly in this pandemic.

Both of your responses referred to the role of ARIA in looking at new areas, particularly having new areas of focus that may have been missed and addressing them in different ways. The document of intent that the Secretary of State published leaves the choice of areas of research or the overall mission to the programme managers rather than the chief executive of ARIA, whoever that might be. How will that address our country’s research needs, and do you think that the Secretary of State should have responsibility for identifying the overarching missions that ARIA looks at?

Dame Ottoline, there has been controversy with you over exempting ARIA from meeting freedom of information requests. UKRI meets freedom of information requests. Do you find them to be burdensome in going about your objectives, and what proportion of your budget is taken up by them? I will go to Tris first this time, if that is okay.

Tris Dyson: I think that the question about leaving it up to the team that is put together at ARIA is a very good one. When you ask people about the US Defense Advanced Research Projects Agency, the US Advanced Research Projects Agency and so on, you get quite different answers as to what they do—that is probably because they do so much—but one of the common responses is that they have very empowered programme managers who understand and know their fields and are able to pursue agendas with a degree of freedom.

I think that has got to be a model that an agency like this—if it is going to be higher risk-taking and a bit more agile, and is going to look at funding innovation that you might ordinarily overlook—needs to be able to pursue, but it does mean that you need to get the right team in place and empower them appropriately. That means that you need a combination of, obviously, people who understand frontier science and technology; but then you also need a degree of creativity and insight as to what the opportunities might be. You need people also who understand the strengths and abilities within the UK, in order to build on that. So, yes, we are significant advocates of the idea that you would have a small, dynamic, empowered team; but they will also need to be relatively ruthless to stop funding things that do not work quite early on, and stick with things that do. That will have to be a mindset, or a regimen, that is baked in from the start.

Professor Leyser: I absolutely agree with what Tris has said. I think it is widely acknowledged that the success of ARIA—and in many ways the rate-limiting factor—is going to be finding those people. The whole ability of this organisation to operate in this edge-of-the-edge really visionary way that we are all very excited about is critically dependent on those people; and they are in very short supply. So I think the idea of leaving it open to that team of people to decide their focus, to pick the projects that are at the edge of the edge, as it is described, is a really important element.

I also view the notion of this small, agile additional agency as having that freedom in a very positive way. The needs of the country—the priorities that the Government and Ministers set to solve particular challenges for the nation—fall very much within the UKRI remit, and indeed we have very successful programmes doing exactly that, including in a challenge-led model. Those programmes tend to operate on a slightly different basis in the more traditional open call route that Tris describes with grant applications and so on. Again, I would see ARIA as an additional small, agile, free agency that can creatively identify and capture those transformative opportunities that, indeed, are not necessarily thought about in the broader system, and reach parts of the system that our current system does not as successfully reach. It needs to be very experimental and I suppose from that point of view it is not the place where you invest the responsibility for delivering major national priorities.

We are very committed to our freedom of information responsibilities. We get about 30 requests a month and we have a team who deal with those requests and also the other data access requests, and so on, that are part of our responsibility. I am happy to be able to do that. I think that is important for public money, and there is a judgment call about the burden of administration of that, relative to the benefits in transparent use of public funding.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

I will stop there, because I know many Members have questions.

None Portrait The Chair
- Hansard -

I will go to the Minister, and then to Stephen. Can I have an indication—will Members put their hands up—of how many there are? That is four. If you want to ask another question, do you want to ask it now, or come back a little bit later?

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

I will come back later, if that is okay.

Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
- Hansard - - - Excerpts

Q May I say what a pleasure it is to be here under your chairmanship to discuss such an important subject, Ms McVey? I have two separate questions for both the witnesses. The first question, for Tris Dyson, is about funding mechanisms and how they support the R&D system. Do you have some examples of how a range of funding mechanisms support the R&D system?

Tris Dyson: We put together a document in the summer, which we can share with you, that has examples both from Nesta Challenges and particularly from the United States of outcome-based challenge prize funding. That is obviously mainly the space that we occupy. There were some great examples of where it stimulates and creates whole new industries and sectors. There were also some examples of where there can be quite big mistakes, because you go off down the wrong course.

I know there has been quite a lot of inspiration from DARPA and from the US. One example would be the driverless car in the early 2000s. DARPA ran a series of challenge prizes in the desert around the development of driverless cars. It was literally an annual race where teams from universities would compete to develop vehicles that would outperform one another, and there was prize funding associated at the end of it. That is more or less where driverless cars began. The teams that came out of those universities and the individuals have now been picked up by Google, Uber, Apple and everybody else. It is why a lot of that frontier technology is now being developed on the west coast and the rest of the world is playing catch-up.

Another example would be the Ansari X prize, which was about building a privately funded spaceship that would carry two passengers. It had a very specific target about how high a sub-orbit it needed to reach within a two-week period. That created an enormous race for people to build privately funded spaceships, again in the early 2000s. You can see now what has happened in the private space flight industry in the US. The team that won that is now Virgin Galactic and we see every day in our newspapers what has happened to them.

We are a bit newer to this in the UK, but we also have some examples. We concluded a challenge prize just before Christmas that was looking at lower-limb paralysis. It was essentially saying that there have been dramatic improvements in the fields of artificial intelligence, robotics and sensory technology but why has the wheelchair not changed very much in the last 100 years, except for electrification? That was a global challenge in partnership with Toyota that resulted in some amazing breakthrough systems and products for people with lower-limb paralysis all around the world. A Scottish team called Phoenix Instinct won. They developed a wheelchair that moves with the user, anticipates movement using AI and sensory technology, and has a very lightweight alloy frame that is quite revolutionary from the perspective of a wheelchair user. Those are some examples.

Whether you do a challenge prize or not, I think you would need to do the same thing with ARIA, which has got to focus on areas where there is the most opportunity and where you have a decent hypothesis that technology pathways can be developed in order to solve that problem and encourage activity around that singular thing. That is the whole premise of missions or challenge prizes.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Thank you, that is really helpful. My next question is to Dame Ottoline. We acknowledge that there is clearly a role for ARIA, but I think it is important that it does not just fund the usual suspects. What are your thoughts on this? How will ARIA be able to target people and ideas that are not picked up through the current system, for example that UKRI is able to target?

Professor Leyser: Absolutely. I think that the kinds of examples that Tris has just talked about are quite illustrative from that point of view. Typically, the way the current system works is that we would put out a call for applications in a variety of contexts. It might be a completely open call; right across UKRI we run these so-called response-paid funding competitions where people with ideas about what they want to do can apply for funding to do them, whatever they might be. On the whole, those kinds of applications are the sort of bread and butter of really established research organisations: universities, institutes and, through Innovate UK, businesses. A lot of them are also collaborative with industry. It is that kind of grant application process that then goes through peer review, and we try to pick the projects that, as an overall portfolio, will best deliver what the UK needs, both in the short term and, absolutely, in the longer term, building that capacity and capability.

It tends to be established organisations that know the system and how to apply for those kinds of projects, and which have the structures available in their organisations to do that. With ARIA, however, I think there is the opportunity to test a much wider range of models, such as those kinds of competition-type prize approaches that Tris described—he is an expert in those. There is also a fairly well-established system called Kaggle for coding competitions, for example. That potentially reaches a much wider range of people. You do not have to apply; you do not have to have a system that can support that kind of application process. The funding flow is very different: it is a response to the results; it is the winner of the competition. As a result, it may be possible to reach a much wider range of people. In that coding space, for example, there are really extraordinary people working in their homes as freelance coders who would find it very difficult to access the classical UKRI and most of the funders that there are currently.

I very much hope that we would be able to tap into some of the talent right across the UK that is not in the more established places. That would be one really exciting outcome from this with that prize model. Where you have a really clear objective—so it is really clear who has won the money, so to speak—it is possible to do that in a way that does not automatically engage the kind of financial management systems that we have to use. For example, are we sure that this money is being spent on what the applicant said it would be spent on? If you are giving somebody the money for having done the research or having delivered the outcome—the car that goes across the desert—you are in a very different situation.

I do think there is a very interesting possibility for ARIA to reach those people who are talented and can contribute in ways that it is much harder to with the standard systems. I hope that we would learn from that and be able to import some of that expertise into the standard system when it was established and really clear that it was providing good value for money in a robust way.

Stephen Flynn Portrait Stephen Flynn (Aberdeen South) (SNP)
- Hansard - - - Excerpts

Q Thank you Dame Ottoline and Mr Dyson for your answers so far, which have been incredibly informative and helpful. I want to pick up on a couple of things that you have said. You have both mentioned the benefits of a small, agile agency. I guess that raises the question of whether £800 million is a sufficient budget for that small, agile agency. To pick on something that you said, Mr Dyson, about ARIA being quite ruthless in terms of stopping the funding of things quite early on, what would you expect the failure level to be, and how do you expect us all to measure in a reasonable way the success or otherwise of ARIA?

Tris Dyson: Well, more money is better. I think this money needs to be deployed intelligently, so being quite clear on the missions and the focuses is really important. It is even more important with a still significant amount of money but relatively smaller sums. Getting those areas right is really important. The examples that were just given about Kaggle and databased approaches are potentially a useful avenue for some of this, because the R&D investments and sunk costs are relatively low as opposed to building spaceships or something like that. That would be the sort of calculation you might need to make.

You can also use leverage. One of the areas that the UK has been pioneering is around regulatory sandboxes, for example, through the regulators’ pioneer fund, which is administered through UKRI. But some regulators, off their own backs, have also been setting up and developing sandboxes that allow innovators to play with datasets in an environment where the regulator is giving them a little bit more permission than they might have had otherwise. That in itself is an incentive, particularly when you are playing around with datasets.

You can think of examples where we have got significant strengths. One of the things we have talked about a lot during the pandemic—more recently, at least—is the UK’s strengths in genomics research. That means we have got an enormous range of data that could be made available to people through the likes of Genomics England, which in itself is an inducement or an encouragement above and beyond the financial. So being clever—boxing clever—with the money is important.

In terms of ruthlessness, part of this comes to the culture. The ARIA team will have to establish a culture where they trial things out, set targets and objectives and have constant reviews where they get together and decide whether to kill things off. That is clearer when you have defined missions or objectives that you are working towards. It is much harder when you are fostering lots and lots of different things—it is hard to compare X with Y.

Professor Leyser: From my point of view, the question I would ask is not so much how much money should ARIA have but what proportion of the public sector R&D spend should go into this way-out-there, high-risk, transformative research-type project and, of that, how much should be in ARIA. It is a proportionality question and, as Tris said at the beginning, at a time when there is an aim to drive up UK investment in R&D to 2.4%—hopefully beyond that, because 2.4% is the OECD average and I think we should aim to be considerably better than average—that is quite a stretch target for us. We do incredibly well—the quality and amount of research and innovation in this country is extraordinary—given that we currently invest only 1.7% of our GDP. So I think the opportunities to build that really high-quality inclusive knowledge economy, given how well we perform in the R&D sector with such a small proportion of R&D, are incredibly high.

On that rising trajectory, with us aiming for that 2.4% and beyond, I think spending a small proportion of that on this edge-of-the-edge research capacity and capability is the right thing to do. I would look at the budget in that context as a percentage of the overall R&D spend. People have been comparing the current ARIA budget with the budget of organisations such as DARPA, but if you look at it as a percentage, you get a very different number because, obviously, the US spends a much higher proportion of their—anyway—bigger budget on R&D than we do. That is the important question from that point of view.

How will we know that it has succeeded, and what would one expect the percentage failure to be? I agree with Tris that it is incredible difficult to predict. There is also serendipity and other things to factor in. If you set yourself a fantastic target of solving a particular problem or producing a particular new product and you fail to do that, none the less, along the way you might discover something extraordinary that you can apply in another field.

That high-risk appetite feeds into the question, again, of how much money or what proportion of the overall R&D portfolio should be invested in that way. One has to think about risk in R&D in that portfolio way. It is considered generally in investment markets that really high-performing investment portfolios are a portfolio. You invest in stuff that you know will deliver in an incremental sort of way, and then you invest in the really high-risk crash or multiply parts of the system. That is very much how one has to think about ARIA.

In that domain, where you have a very high probability of failure—that is what high risk means—but also an extraordinary probability of amazing levels of transformative success, it is a dice roll. The total number of projects will be relatively small, so it is very hard to predict an absolute number or proportion that one would expect, and one should not need to—that is what high risk, high reward means.

None Portrait The Chair
- Hansard -

Thank you, Dame Ottoline. We have just under 20 minutes. Members need to be around the horseshoe to ask a question—there is a microphone on the corner. I will tell you the order in which I will ask questions, so those who are not in the horseshoe can get there. I will go to Daniel Zeichner first, Stephen Metcalfe second, Dawn Butler third, Aaron Bell fourth, Virginia Crosbie fifth and Chi Onwurah at the end. If anyone else would like to ask a question, please indicate.

Daniel Zeichner Portrait Daniel Zeichner (Cambridge) (Lab)
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Q Thank you, Chair. It is a pleasure to be on this Committee. I will be brief. Good morning, Dame Ottoline. I would like to pursue the funding question. Governments have long had aspirations to raise the level of R&D, but it proves incredibly difficult to do under pressure of circumstances. Things seem to have changed, in the sense that over the last few months we have seen considerable pressures on UKRI budgets and ongoing uncertainty about the cost of being part of the Horizon programme. Given that there is lots of uncertainty, if you had £800 million to spend in the coming period, would you spend it on this?

Professor Leyser: That is an excellent question. Clearly, the economic circumstances of the pandemic have made the choices the Government have to make about where to spend the money extremely challenging. Having said that, the opportunity thrown up by the pandemic and the instabilities put into the system as a result of the extraordinary circumstances make now an extremely good time to invest in that R&D-led recovery and to build that inclusive knowledge economy that I have mentioned several times, which creates long-term, sustainable, high-quality jobs right across the country for everybody.

In terms of taking that chance to invest in R&D—to reach 2.4% and beyond—and having the £22 billion public sector investment that has been discussed, now is the moment to do that. That is a really sound investment for the future. It is a lot of money, but it is how we are going to re-establish that stable, more productive economy that we need to fuel and to fund all the kinds of underlying public services, and so on, on which the country depends, so I think it would be a really wise investment.

I am avoiding the question, because I would rather focus on driving up that investment in R&D than work on the pessimistic assumption that it is not going to happen and therefore that we are going to have to be more conservative in our approach to R&D investment than is optimal for building that overall high-quality system that we need for the UK.

Daniel Zeichner Portrait Daniel Zeichner
- Hansard - - - Excerpts

Splendidly diplomatic answer. I will pass you over to colleagues.

Stephen Metcalfe Portrait Stephen Metcalfe (South Basildon and East Thurrock) (Con)
- Hansard - - - Excerpts

Q It is a pleasure to serve under your leadership, Ms McVey. Good morning to both of you, and thank you for your presentations. I truly believe that ARIA will significantly add to the research and innovation landscape, in an area where we perhaps have not done that before. That does beg the question of where those visionary ideas would have gone up until this point.

The question that I would like to ask is, what role do you believe that ARIA and UKRI have in ensuring that ARIA-funded research becomes a tangible service or product and actually supports the UK economy? If we are investing £800 million, we need to make sure that there is a benefit. I fully accept the high-risk, high-reward model—I think that is an important part of it—but we need to make sure that we support that innovation and that research along the technology-readiness scale to make sure that it turns into something tangible that adds to our overall wealth. How do you see that role playing out?

Professor Leyser: To me, a key question in our R&D system altogether is connectivity. We have a spectacular international reputation for the quality of our R&D base right across the disciplines and in both the public and the private sectors, and we have some fantastic innovative companies creating extraordinary products and services for the UK. However, there is an acknowledged weakness in our system in the middle, so to speak, which is sometimes referred to as the valley of death. There is a lot of analysis as to what is going on there. It is partly to do with getting the right pathway of funding that supports activity across that gap.

I personally think that a bigger problem is our relatively balkanised R&D system. I think that we need to focus very hard on building much higher-quality connectivity and networking, right across the system and across that gap. We tend to think of this as a very linear, translational process, and it does not work that way. It is about joining up all the parts in a way that information, ideas, skills, know-how and, crucially, people—all those things are carried best by people—flow to and fro across that system.

One of the major priorities for UKRI is to consider the dynamic career pathways that people need to follow to connect that system up better and to support researchers in different parts of the system moving to other parts of the system—so from academia into industry and, crucially, from industry back into academia, which our current incentive structures in academia do not adequately support.

I think that that “bridging the valley of death” part is a key role for UKRI. That is exactly what we can do, because we bridge all the sectors and we have some levers on a lot of those incentives that are currently driving balkanisation. If we add ARIA into that properly connected system, then the ideas and innovation that emerge from ARIA will feed into that system in an entirely productive and creative way.

It is not ARIA’s job to think about the system and to build bridges across the valley of death; its job is to push those transformative ideas to try to drive step changes in particular areas and technologies where the experts in ARIA think the best opportunities lie. If those seeds are sown on fertile ground, they will transform into that knowledge economy that I keep talking about. My job is to make sure that the ground is fertile.

Dawn Butler Portrait Dawn Butler (Brent Central) (Lab)
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Q Dame Ottoline, you said earlier that you expect a close working relationship with ARIA. What does that actually look like? Legislatively, what should that look like?

Professor Leyser: It is an interesting question as to the extent to which that needs to be written into legislation. In my experience, the kinds of relationship that one wants to have with key players across the system are not things for which you necessarily legislate. They are about maintaining open lines of communication and building high-quality personal relationships with different actors in the system. There are a lot of players in the R&D system. I spend a lot of my time talking to people who run other agencies—for example, in the charity sector and those who run R&D activities in businesses— connecting them up, understanding what people’s needs are, what the opportunities are and building the joined-up system I have talked of about before.

So I think the personal relationships are going to be almost as important as anything that one can write into legislation. None the less, possible tools for connection, such as seats on each other’s boards, are certainly worth considering, as is observer-type status, rather than formal status, given that high-quality boards tend to be small. Our board worked really well where people were not representative but bringing their skills and expertise round the table. One does not want to bog down the governance structures for a light, agile and out-there organisation with representative requirements. As I have said before, active and engaged communication is going to be essential for ARIA, because it needs to understand the breadth of opportunity in the system to work well. It will be in everybody’s interest for those activities to work well. Because of that, they will happen naturally, in the same way that I spend a lot of time talking with other funders of research and innovation already in the public and private sectors.

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

I agree with you that there needs to be a close working relationship. I do not think we can count on it happening naturally. I have two quick questions, if I may, Ms McVey?

None Portrait The Chair
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Dawn, I am mindful of time. We have seven or eight minutes. I have another three questions and Chi Onwurah to come back. Is it a quick one?

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

Q It was a quick one on why UKRI cannot access the innovators of tomorrow—the people coding at home. I did not understand what was stopping UKRI doing that?

Professor Leyser: At the moment, most of our funding opportunities require people to apply for a research grant. People coding at home have a hard time applying for research grants, because it is a system with financial checks and so on. Applying for a research grant is a non-trivial activity, whereas winning a research prize, where there is no application process and you just get on with it, is doable. We are very interested in that wider range of funding mechanisms and in how we can learn from the work of Nesta, and, in the future, the work of ARIA to reach a wider range of people. But at the moment, we work on a largely open-call process; it is really effective because it is completely open, but it none the less creates barriers for people who do not have the infrastructure and administrative support to help them submit those kinds of grant applications.

Aaron Bell Portrait Aaron Bell (Newcastle-under-Lyme) (Con)
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Q It is a pleasure to serve under your chairmanship, Ms McVey. I thank both witnesses for their time, and Dame Ottoline for her evidence to the Science and Technology Committee, on which Ms Butler and I also serve.

Following on from Dame Ottoline’s answer to Ms Butler, obviously, the purpose is to expand ARIA to cover areas that are not already well covered, but it also seems to be to try to pick up the pace of research and innovation. We have seen that that is possible through crises such as coronavirus. Can you explain how the pace can be picked up by some of the things that you do at Nesta and whether that would carry across to what ARIA is going to do?

Tris Dyson: I think it helps to pick things, to say, “We want to achieve x within the next two or three years” and to give people a degree of certainty about what outcomes you are going to fund and why. It happens naturally, anyway. Coronavirus is a crisis that has created a rush for R&D. It has also shown, on the drug development or vaccine side, what a combination of funding and relatively agile thinking, including from regulators in conjunction, can do in order to improve outcomes and achieve things. A challenge prize creates that in a positive sense; it essentially says, “We are going to solve for x and award funding on that basis.” That helps speed things up.

Related to the previous question, with a grant model approach, you are funding inputs and costs primarily. People put in a proposal for half a million pounds and say, “We are going to do x and this is what the associated costs are going to be.” Inherently, your risk threshold is going to be different, because you are anticipating whether this an investment that means they are going to be able to spend that money well and achieve x. You are going to look at track records, their financial history and their institutional strengths. You are going to make a judgment on whether to fund A versus B. That lends itself more towards funding the usual suspects than an outcome-based model, where you say, “It is not important to us who solves for x as long as somebody does.” In reality, you tend to blend these models. It is not like there is a pure challenge prize model that does not involve other types of funding mechanisms as well.

Aaron Bell Portrait Aaron Bell
- Hansard - - - Excerpts

Understood, thank you. I had better hand on, as we are running out of time.

Virginia Crosbie Portrait Virginia Crosbie (Ynys Môn) (Con)
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Q It is a pleasure to serve on this Committee, particularly as a scientist. Dame Ottoline said one of the challenges was finding the right people to lead ARIA and that they were in short supply. Tris said that ARIA was about identifying visionary leaders with extraordinary ideas. My question to both of you is, how much is the success of ARIA linked to finding the right people to lead it? Are you confident that we can find them?

None Portrait The Chair
- Hansard -

If you are both answering, you have about a minute each.

Professor Leyser: I think it is crucial for the success of ARIA—it is everything. We need to go into the search process with absolute resolve to wait until we find the right people, and not appoint people just because there is a vacancy.

Tris Dyson: I agree with that. I would also say that the primary thing would be the mindset and agility, rather than necessarily focusing on a private sector background, a science background or whatever. You need people with the right creative and entrepreneurial mindset.

None Portrait The Chair
- Hansard -

Those were both short answers so, Chi, we have time for you.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q There are two contradictions that I have spotted in what you are saying. Dame Ottoline, you talked about ARIA needing to deliver transformational research and outcomes, but at the same time you said that it is too small to be entrusted with society’s great challenges. Should not the public interest determine what that transformation is? Mr Dyson, you talked about ARIA having a new diversity of funders—regional as well—yet at the same time we hear that it has got to be people who know people and have lots of experience, and we do not have diversity in the base now. Twenty seconds each on those contradictions.

Professor Leyser: I did not say that it would be too small. My point is that if it is really working on the edge of the edge, it is about capturing the extraordinary opportunities that these people see in the system. Those cannot be straightforwardly dictated. They are not to do with those outside requirements; they are to do with what the opportunities are. The smallness of the agency is to do with what proportion of your R&D spend you put into that activity, given that we have major national priorities that need substantial investment, where the target is driven by those national priorities. It is an opportunity—

None Portrait The Chair
- Hansard -

Order. I am sorry, but I am going to have to stop you there. They had both been concise answers. I am sorry that we did not finally get to hear your further answer, Tris. Thank you both very much indeed for your time, Dame Ottoline and Tris Dyson.

Examination of Witnesses

Professor James Wilsdon, Professor Mariana Mazzucato and Professor Philip Bond gave evidence.

10:25
None Portrait The Chair
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Q We will now hear oral evidence from Professor James Wilsdon of the University of Sheffield, Professor Marianna Mazzucato from University College London, and Professor Philip Bond from the University of Manchester. We have until 11.25 am for this session. Could the witnesses please introduce themselves for the record? I call, first, Professor James Wilsdon—[Interruption.] James cannot hear at the moment, so we are just going to sort the sound. Can I move on to Professor Marianna Mazzucato?

Professor Mazzucato: I am a professor at University College London, where I am the founding director of the Institute for Innovation and Public Purpose.

Professor Bond: Good morning, everybody. I have very unstable internet, so if I vanish, that is why and I apologise. I am Professor Philip Bond and I work as a professional problem solver and inventor. I am the professor of creativity and innovation at the University of Manchester, and I have visiting professorships at the University of Bristol in the computer science department, and also in engineering and mathematics. I am also visiting professor in the applied mathematics department at the University of Oxford.

Professor Wilsdon: Good morning. I am James Wilsdon, and I am professor of research policy at the University of Sheffield, and also director of a thing called the Research on Research Institute, which is based at the Wellcome Trust and does research on research systems, cultures and decision making.

None Portrait The Chair
- Hansard -

Again, I will start with Chi Onwurah, move across to the Minister, and then go side to side between the parties. After I have been to Stephen Flynn, I will ask Members to indicate whether they want to ask a question. I think we will get through everybody, as we were quite successful last time.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q I thank our witnesses for taking the time to join us today and bringing us the benefit of your considerable expertise and experience. Professor Mazzucato, you wrote the groundbreaking book “The Entrepreneurial State” and the more recent “Mission Economy”—perhaps there is a clue in the title, in terms of the emphasis on the benefits that mission-orientated research can bring. Indeed, many thought that this new agency, ARIA, was based on some of your work, yet at the same time it does not seem to reflect some of the important context that you set out for it. Can you tell us whether it will achieve the benefits that you set out in your work? What needs to change? What should the Bill Committee look at changing in order to ensure that that can happen? Similarly, Professor Wilsdon and Professor Bond, based on your work on research and innovation systems—particularly in a UK context—what benefits will ARIA bring and what needs to change in order to improve it?

Professor Mazzucato: Thank you so much for the question and for inviting me to give evidence. Without going into the history of the DARPA model—I am sure you have done that already—I think the really important thing is to ask what it is about the UK system that an ARIA could give benefit to. We need to remember that the whole point of having a DARPA or ARIA-type institution is actually to provide that kind of purpose-driven approach to innovation. It is not a replacement for blue-sky research, funded in the United States by the National Science Foundation or in the UK by the research councils. It is precisely that kind of rare moment where you can do high-risk, high-bet research, very much linked between the basic and the applied; it is neither basic nor applied.

Fundamentally, where it has been successful—let us not forget that other countries have also tried this and it has not always been successful—is when it is on the back of a strong system. For example, DARPA in the US would have failed miserably had there not also been a strong military and defence system.

Secondly, it has to work across Government. DARPA in the US, for example, works with the small business innovation research programme, a procurement programme across all the different Departments, which set aside about 3% of their budgets to do purpose-driven research that brings in, for example, small and medium-sized enterprises. Again, that procurement side means that it is fundamentally linked to how Government works; it is not separate from Government.

Thirdly, it has always been linked with a vision or mission of what is to be done. Again, in the wartime scenario, it is clear that the DARPA model was mainly about military goals, but the Advanced Research Projects Agency – Energy, or ARPA-E, is about renewable energy and a green transition, and the Advanced Research Projects Agency – Health is about strengthening the health system and going after big health innovations.

What questions are we asking in the UK that an ARPA-H and ARPA-E or an ARIA would actually resolve? If we think of one of the biggest successes of DARPA, which is of course the internet, they did not obsess about the internet. They were not saying, “Oh, we need a technology.” They needed to solve a problem. The problem at the time was getting the satellites to communicate, and the internet was a solution for that. There were also many other experiments being done at the time, some of which failed. It is about that kind of willingness to take risks, but those being purpose-driven and problem-oriented.

The first question we should be asking in the UK is: what are the big problems? What questions are we asking that would even require an ARIA? If we do not have enough of a national debate on that, and if we do not have enough of a rethink in Government on things like procurement—the everyday of what Government does—and if we do not have strong systems underlying an ARIA, such as health and energy systems and so on, it will be really hard for this agency to be successful.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Thank you. Professor Wilsdon?

Professor Wilsdon: I agree with everything that Mariana has just said. The one thing that many of us have been calling for since this idea was floated as an option for the UK system is more clarity on its purpose—its mission, in Mariana’s language. It is regrettable, in a way, that it has reached the stage of a Bill without that question having yet been properly answered. There are multiple dimensions to why it is regrettable.

First, it is a recipe for confusion. When it does finally decide what it is for, it has to then negotiate and haggle for space in the wider system, as Mariana said. That is time-wasting and is a source of bureaucracy, which this thing is supposed to avoid. Secondly, the Bill and the debate around it sort of vests the choices about purpose and function in the leadership of ARIA. I agree with Mariana that the role of Government in setting up a new agency is surely to undertake and co-ordinate with the public and wider society a discussion of what this would be for—what big priorities we have as UK society to which a new agency can be directed.

I am fully in favour of a new agency. I think there are lots of arguments, as we have heard already from Ottoline Leyser and Tris Dyson, that in a system that is expanding and doubling its budget over a short period of time, there is definitely scope in the budget to do new things, and I would be wholly in favour of that. Without that clarity, we essentially run the risk of setting it up and then there being a delayed period before it actually does anything very effective.

The final point I would make is that in relying on appointing the leadership as the route to answering the question, all you do is move the source of the problem. If the Government have not been able to resolve the question of what it is for, how do we identify who the right leaders are? We have not yet decided what this thing is for and where it operates in terms of the scale of basic to applied. Does it have domain focuses? I don’t see how you can find the right people. If you do find people, how do you avoid it simply becoming a tool, a plaything, of their prior interests and priorities?

In today’s line-up of witnesses, you are going to hear a number of compelling visions from different people for what this thing could do. I do not have a particular vision to sell you, but those visions map on to the prize and the things that you would expect the CBI or the Royal Academy of Engineering to argue for. If you set something up without resolving that first, you are moving it to the site of the leadership. It is a recipe for capture by particular interests in the system, which I think would be regrettable and quite distorting of the role that this thing is supposed to play, which is to be added to existing things.

I worry generally about the process, as someone who is perfectly happy to support the idea. I don’t think it is being executed in an optimal way to achieve the outcomes that the Government wish to see.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Thank you very much. Professor Bond?

Professor Bond: I thank the previous speakers. I think that the idea is about having radical innovation, which is different from grand missions and grand challenges. Certainly the budgets that have been talked about fit an agency doing radical innovation, rather than some very large-scale grand challenges. The discussion over the need for a directed mission is an interesting one. You can do it both ways. The original ARPA started off with the rather nebulous but powerful mission statement of, “Develop strategic advantage”. That is acceptable if you have a good director who understands what that means. DARPA, for example, or IARPA and so on, have somewhat narrower remits, but that does not necessarily make things easier. A really good director can overcome issues around narrowness of mission statement by using the opportunity to do things that span across many domains. In fact, I think it is a rather liberating thing. The fact that we have not at this point had utter clarity on things I regard as extraordinarily good, not bad.

A defining characteristic of all of the US ARPAs is that they have a strong focus on rotating people in and out—about 80% from industry and 20% from academia, or some balance like that—and they do a lot of work with both. I entirely agree with what was said about a link between applied and more fundamental research, but I want to strengthen that statement by saying that with the industry base there is a focus on getting things done as opposed to publishing papers, and it is important to remember that.

On risk tolerance, a lot has been said about DARPA and taking a lot of risk. I personally think that talking about taking a lot of risk is a poor framing of what they do. What they aim to do is have a significant multiplicative effect on what they achieve. In other words, radical innovation simply says, “We want step change. We want to do things that would create a tremendous impact were they to be done.” What DARPA—all the ARPAs probably, but let’s talk about DARPA in America—has always been good at is managing that risk tremendously well. A large part of the reason they have succeeded is their extraordinarily good management of risk.

In terms of deciding what it is for and whether one should necessarily have a public engagement with that, for some things that is very valuable. For others, opacity is surprisingly effective. Most of the US agencies have some degree of opacity, partly because they work on defence and security, but partly because you are going to ask people to stick their neck out and try to do things that they start out by viewing as probably impossible. Step 1 for an ARPA mission specialist or programme manager is to try to get some evidence that it is not impossible and might be possible. If you are asking people to work like that, shining a spotlight on them is more or less placing them under pressure to step back from that plate and become more conservative. I do not think that is a good thing.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much. Professor Mazzucato, you were very clear that it is helpful not to consider this as a replacement institution. We have already heard some confusion as to whether it is cutting edge or transactional. You were also clear about the need for a strong research base, engagement on procurement, and a vision. What should that vision or mission be, in your view? We have heard from Professor Bond that there might be a trade-off between transparency and risk taking. How would you respond to that?

Professor Mazzucato: I just want to clarify what I understand in terms of challenge orientation, because I think there is also a bit of confusion there. Challenges globally are the sustainable development goals. Every country is actually signed up to them, including the UK, so we should hear a bit more about the SDGs in the UK national debate.

Let us just bring it back to the DARPA or NASA kind of model. Broadly defined, DARPA is, of course, challenge-oriented. The key thing is how it can translate those challenges into missions. Take the moon landing, which I wrote about in my recent book. I talked about both what to copy and what not to copy from it—most of it was what not to copy. The challenge was the space race, the cold war, Sputnik—NASA did not have much to do without that. They transformed that into a mission, which was to get to the moon and back again in one generation, so it would be wrong to say that DARPA and NASA are not challenge-oriented.

The point is that how they are structured is much more specific than that. Those are problems that need solving. They did not just say, “Oh, let’s go and compete in space with the Russians.” Again, it was very specific: getting to the moon and back in one generation. You can actually answer the question, “Did you get there: yes or no?” Lots of different sectors got involved; it was not just one big isolated project—that is the whole picking winners problem. It required innovation in nutrition, textiles, materials, electronics, and the whole software industry can, in some ways, be seen as an output of that. Again, how did they organise the thinking and the purposefulness of the organisation? One of the first things they did was change their own internal structure to be much more horizontal, with project managers, precisely to be purpose-oriented.

I just think there is a bit of a false dichotomy between whether you need a challenge or whether it is about a big radical innovation. DARPA has always been challenge-oriented, and that is why they needed those radical innovations to actually confront those challenges. The questions they were asking were much more specific and were framed in a targeted way, so you could actually answer the question, “Did we achieve it or not?”

In terms of the risk, I absolutely agree that it is not about risk for the sake of risk. In a conference I organised back in 2014, called “Mission Oriented Innovation”, I invited Cheryl Martin, who back then was the second director of ARPA-E, and she said that they actually structured ARPA-E in such a way as to welcome as much high-risk thinking, and that the whole point was to matter in the economy. They would actually measure their success both on whether they took those risks, because if they were going for easy things, they were not doing their job, and on whether their successes, of which there would only be a few—they accepted that there would be lots of failures—would have a big impact in the economy. For example, they ended up being very important for battery storage.

ARPA-E is very different from DARPA. It has a tiny budget of about only $300 million a year. One of its problems—it is also really important for the UK to learn about the problems—is that it has been too wedded to industry. It has focused too much on asking industry what it needs and then it ends up almost being this massive technology office, compared with DARPA, which had a very clear Government customer—basically, the Department of Defence. It is important to ask again who the obvious customer for ARIA is and how that is linked to different Departments, so it does not just become a matter of bringing geeks into government—the line Dominic Cummings mentioned. Yes, you want experts in government, but geeks in and of themselves are not what you want to strive for; you want to solve problems that different Departments of a democratically elected Government put out there.

We should also make sure that those problems are not told to Government by experts like ourselves on this Zoom call, or other Zoom calls, as James rightly said, when everyone will just put forward their own pet project. We need to think about the democratic forums and the different types of the debate that are needed in a country, precisely so that the problems and purpose are shared as widely as possible. That includes winning the war, back in the cold war days.

Chi Onwurah Portrait Chi Onwurah
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Q What do you think ARIA’s mission should be? I will put that same question to the other witnesses.

Professor Mazzucato: I am holding the 2017 industrial strategy, which Greg Clark’s team put together. We very much advised on that and one of my roles was to say stop just making lists of sectors. You will remember that under David Cameron’s team there were five sectors: automotive, aerospace, life sciences, finance/financial services and the creative sector. I said not to make a list of random sectors, which can easily get captured by those sectors with the loudest voice, but to think about what their problems were. They solved that in the industrial strategy—they listened, and I was very happy—and decided on four challenges, namely, healthy ageing, clean growth, the future of mobility and the opportunities that AI and the data economy provide to us.

In terms of identifying the missions underneath those, I set up a commission co-chaired with Lord David Willetts entitled the Commission for Mission Oriented Innovation and Industrial Strategy. We worked very closely with the different challenge teams in BEIS precisely to answer your question. It is definitely not the role of an economist, academic or business person to tell you what the missions are. That must be co-created within Departments alongside different stakeholders, but surely the first answer is that those missions must be those that respond to those four challenges.

On clean growth, the answer must be carbon-neutral cities all over the UK; or take a global challenge such as clean oceans—sustainable development goal 13—and getting the plastic out of the ocean. What is the UK’s contribution to that? What about the digital divide, under the challenge of AI and the data economy? Just think back to when the BBC had a mission. Back in the 1980s, it wanted to get every kid to code, before it was sexy—today it is very sexy to talk about coding. The BBC was doing that back then, and its own procurement strategy helped to deliver that by producing the BBC Micro computer. The BBC did that not because it was obsessed by technology but because it needed it to fulfil that mission. So, this strategy is not completely new to the UK, but we should not pursue it as a siloed project; it must answer the big questions such as the digital divide, carbon neutrality, health ageing and so on. But you have the 2017 industrial strategy, so start there; we cannot keep rethinking from scratch each time.

Chi Onwurah Portrait Chi Onwurah
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Q Thank you. Professor Wilsdon?

Professor Wilsdon: I do not have a mission in my back pocket that I want to push. My argument is simply that the thing needs to have more clarity. I do not really mind what it ends up doing, as long as we go into it with a better sense of what we are trying to get out of it, as Mariana said. It is worth going back to some of the other strategic documents that operate and run the UK system, including the industrial strategy, as Mariana says.

In July last year, the UK Government published its draft R&D roadmap. Again, that is a good idea and it is something that many other countries do. It set out a longer-term planned direction for the system, and tried to explain to the system and to wider stakeholders how the different parts fit together and their different functions. To me, the logical sequence of events would have been to conclude that process—I realise it has been a difficult year for everyone for obvious reasons—and then to identify the particular gaps and priorities to which a new funding mechanism could be directed. What we have done is fixate on a particular institutional model, imported from the US in the late ’60s, and dumped into Britain today, as the way in which somehow, magically, we are going to cut through all sorts of real or perceived barriers and obstacles in our existing research and innovation system. I just think that is a very flawed way to do this.

We are where we are. The Bill is in front of Parliament. We need to focus at this point on how we can amend it, or you can amend it, to improve it. I think that trying to bring more clarity, or at least a sense of how this issue will be addressed through the governance of this new thing, is really important. Otherwise, you or your successors, and we or our successors, will be back here in a few years’ time, asking ourselves why it did not work. I know that it has a tolerance of failure—we are all in favour of that—but the thing has to at least succeed in some respects, alongside its appetite for failure.

Chi Onwurah Portrait Chi Onwurah
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Thank you.

None Portrait The Chair
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Professor Bond, did you want to comment?

Professor Bond: I just want to make a remark, if I may, on scale. Talking in the same breath of putting man on the moon, which cost up to 5% of US GDP, so roughly 60% of UK GDP, and ARIA, for which the figure is £200 million a year, is, I think, an issue.

I agree that there is confusion about challenge. The grand challenges are really better structured in different ways, which is why NASA has a director and why the Manhattan project had very strong, firm leadership. I want to use that to emphasise, first, that ARPA/DARPA mainly does not use challenges. There are some fields where it has done—robotics, autonomous vehicles and a few others—but that is not its main way of doing things. The issue about the word “challenge” is that for some things, particularly in computer science, it can be a very good way to bring together people in different teams that would not normally operate in that way, but it is just a mechanism for doing that.

The question you have asked me is about the mission for ARIA. I totally agree, by the way, with what was said: it is much easier in life if you have a customer. But if a really good director is picked, they are going to go out and get some customers—probably within Government. There is so much that can be done in government; there are so many good things to be done that if you have an imaginative and intelligent director—I am sure that will happen—that person can find plenty of sensible things to do. I therefore think you do not need to be overly prescriptive; you can try to leave it open.

I was also involved in the structuring around the industrial strategy grand challenges. First, they are another step up in scale. Secondly, I do not think we should be binding anyone to having to focus on those at all. It is rather obvious that there are many interesting and important problems societally. It is obvious that there are many, many ways in which somebody could look to do things, whether with education and helping kids to learn better, or with the NHS or anything else. I would leave it up to the director and the mission folk to do. The whole point of a DARPA is really to leave it open.

What you want these people to do is one thing: you want to demand of them that they make their best attempt to do radical innovation—to do things that, were they to work, would mean a step change in what should be done. It is going to be easier if that can get implemented in some efficient and effective way, so how that is done is a great question, especially as it will be a small office. That is somewhere that the office is clearly going to have to work with Government and find customers within Government, and do things that are so impressive that that will work. That is a challenge, but that is why you get a director.

Chi Onwurah Portrait Chi Onwurah
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Thank you.

None Portrait The Chair
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Minister?

Amanda Solloway Portrait Amanda Solloway
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Q Thank you, Ms McVey, and thank you to all the witnesses. I have just one question for Professor Philip Bond. We have tried to balance giving ARIA independence and ensuring good governance. What are your thoughts on the ideal size of ARIA’s board and giving ARIA’s chair the freedom to decide who sits on it?

Professor Bond: I would probably have a board and another structure. Certainly one of the super-important things that works in the US ARPA is that the programme managers are challenged in a sort of dragons’ den. It is a friendly dragons’ den, but they have to convince very capable, technical people that they can do what they do. That is one structure that would need to be slotted into place.

As for the board, I think you could have a slightly unusual board. I do not think it needs to be big; it could be very small. It could be less than 10 people, for sure, but you could also expand it a little bit with something that is a bit like a non-executive director, or NED—somebody from a different area with a rather different take on things. The balance will be important. You want a balance of people; I think you want some very radical thinkers in there, some people who know how things work in industry and some people who know how things work in academia, and so on.

As for the autonomy, I am personally a big believer in giving the chair and the director enormous amounts of autonomy. You pick people you are willing to bet on and then hand them a lot of trust. In fact, if you want to define the ARPA model at some level, it is this: it is a different model of trust. Bureaucracies occur because although we like to trust people, we have to throw up lots of rules and regulations to make sure that things work the way we feel they should work. What you are doing in creating this kind of model is handing trust to people. You want people with high integrity who are brilliant, and then you let them get on with it, and you trust that they will do something that reflects their character.

I do not think the board needs to be big; I think it needs to be very good. There should be a small number of outstandingly good people, who can tap into a broader network and bring in people to give a different vision and view from that which you will only ever get with a small number of people.

None Portrait The Chair
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Before I go to Stephen Flynn, can I just have an indication of who wants to ask questions? I have got Sarah, Daniel, Aaron, Jane—okay. Thanks very much indeed.

Professor Mazzucato: Can I make one super-quick point on what Philip just mentioned?

None Portrait The Chair
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Absolutely, and then I will go to Stephen.

Professor Mazzucato: One of the things that DARPA is very good at is not only turning the tap on, in terms of funding the things that we have been talking about, but knowing when to turn it off. Knowing how to pivot and to be flexible and agile is absolutely necessary. Not only should this agency be free from burdensome bureaucracy, it needs to proactively get an agile and flexible structure, and the metrics that tell you when to turn the tap off, because this is the challenge. You want to be long-termist—going for the difficult things and not the easy ones, which you do not need an ARIA for—and also to have the metrics internally to tell you when things are not going right and when you actually have to stop.

Stephen Flynn Portrait Stephen Flynn
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Q Thank you to the three of you for your information so far; it has been incredibly helpful.

I have a question for James and Mariana, and then one for Mr Bond. James and Mariana, you both clearly want to see a mission. However, I do not think we should necessarily kid ourselves that the Government will be minded to agree to any amendment in line with that. Do you have any other wider concerns about the Bill whatsoever, or around ARIA as an entity? Do you see any positives at all? In a previous evidence session, we heard about the good prospect of it being small and agile. Is that something that you would see as a positive?

Mr Bond, you are placing a lot of emphasis on the director—I think you used the words “people with high integrity who are brilliant”. That is pretty vague, to say the least. I am sure we could all pick people who we think are brilliant and have high integrity, so are there any definitive qualities, or anything at all with a little more substance, that individuals should have, perhaps in relation to scientific merit, or their background and commercial activities?

Professor Wilsdon: You are specifically thinking about aspects of the Bill that can be tightened and improved, accepting that there is only so much that can be done at this stage. The National Academy of Sciences—the Royal Academy—has published a very good and detailed set of probing amendments to the Bill just this week, and I would certainly endorse several of them. They include inserting a clause that requires ARIA to complement the work of UKRI. That would go at least some way to dealing with the concern that persists over boundary skirmishes, shall we say, or fuzziness at the edges of what the big public funding agency is there to do and what this new thing is there to do.

Accepting that it is going to be hard in the middle of the Bill to define the mission—it is the wrong way to go about it—I wonder whether tightening up some explanation in the legislation of how the process of defining the function and orientation will work, whether on a cyclical basis, for example, choosing particular things to focus on over a five-year cycle or whatever, would also help.

I worry greatly about the touching faith that Philip and others seem to place in the capacity of the chief executive and chair to be these sort of omniscient, wise characters and, indeed, in the Government to choose the right people. It is very important when we are spending £800 million of public money that we establish proper mechanisms of transparency and accountability. I do not think that has to inhibit innovation. I do not think there is any supporting evidence that freedom of information or other measures that currently exist are inhibitive of effective innovation. I do not recall any discussion of that coming up during the passage of the Higher Education and Research Act 2017, three or four years ago, which Committee members may have been part of, and when UKRI was being created. It was not a problem to which any discussion was directed, so I am confused. Such provisions apply to DARPA and other bodies in the US system.

When it comes to people, I hope very much that the Government manage to secure talented people. I hear Lex Greensill is available and has impressed many senior figures in Government in the past with his innovative and disruptive approach to various financial mechanisms. That is the point: if we want this thing to survive and persist and be a valuable addition, it needs to be set up in a way that will avoid capture by anyone—by me, by Mariana, by Philip, by anyone. That is the reason why we have the structures. It really is incumbent on Parliament now, through this process, to try to put more of those mechanisms in place. I just do not see the evidence that they will inhibit its effectiveness.

The biggest barrier to effective, creative, high-risk funding of research and development in this country over the past 10 years has been lack of investment, period. That is the issue: lack of investment. It is great—it is wonderful—that the Government are tackling that with its doubling of public R&D by 2025, if they get there. As I said at the start, that creates the space in which new initiatives such as ARIA can thrive—I hope they do—but there is no evidence that I am aware of for some of these unsupported assertions that are being bandied around about bureaucracy in the system and transparency being the problem. I just do not see it. In terms of the legislation, it is very important to try to tighten those provisions.

Professor Mazzucato: I would agree with a lot of what James said on investment. It is very important to remember that the UK continues to have a below-average GERD—gross R&D spending—over GDP, but also a below-average BERD—business investment in R&D. One of the key things that the DARPA model did in the past was precisely through being ambitious in areas that were market creating, not just market fixing, and also really cheap to crowd in business investment. Again, as I mentioned before, we need metrics to make sure that is happening—in other words, that it is actually creating additionality and getting investment to happen that would not have happened otherwise.

Coming back to the big question, which is a very important one, there are three big things we need to make sure we are doing. One is to have a very clear idea of the innovation landscape in the UK and exactly the gap that this new agency would be filling, because even though it might be exciting to form a new agency, if it is not filling a real gap and is just creating a bit of confusion and repetition, or creating something we do not need, that is a huge problem. Personally, I think it is a good idea, especially if we structure it in the right way.

One of the things I did in the European Commission was put forward this idea of mission-oriented innovation. On the back of that, missions are now a new legal instrument within the European Horizon programme. What that does is ensure that the part of the European budget that used to be challenge-oriented in a very vague way now has the concept of missions to guide it. I argued that we needed to make sure we know what we are talking about when we use the word. I argued that five different conditions had to be there.

The first was that missions be bold and inspirational with wide societal relevance. The second was clear direction—targeted, measurable and time-bound. That is the point before: making sure you can answer “Did you achieve it or not?” The third was to be ambitious but realistic, supporting existing research and innovation actions as well as applying them to those difficult new areas, and, again, areas where there is actually a customer basis. The fourth was that they have to be cross-disciplinary, cross-sector and cross-actor. I gave an example where it is not just about going to the moon—a carbon-neutral city would also require all sorts of innovation across multiple sectors. So it is making sure this does not replace a sectoral approach, but really fosters that inter-sectoral approach. The fifth was that it has to stimulate multiple bottom-up solutions. That is where we need to make sure we are not confusing the concept of missions with projects—often pet projects.

Third is the whole point about expertise in Government. Of course we need expertise in Government and we often have that expertise. When we do not have that is also when you are most open to capture. In my recent book “Mission Economy” I dug out some really interesting documents in NASA, during the Apollo programme, where they said “If we stop investing within our own brain, our own R&D, we are going to get captured”—by what they called “brochuremanship”. At the time, businesses did not have sexy PowerPoints, like, say, PwC, Deloitte and so on: companies came in with brochures to argue why they should be working with NASA. They said, “We need to be working with the best businesses out there, and in order to know how even to write the terms of reference with the businesses and know which ones to work with, we ourselves have to be knowledgeable.”

This comes back to the point, do we have a Government who have been, over the last decades, investing within their own dynamic capabilities within the public sector? I think, here, we need to look at what has been recently coming out in the news. Lord Agnew argued that we have been infantilising Whitehall by the over-use of consulting companies. So the lack of investment within Whitehall, within Government, in their own capabilities, is the biggest opener to the possibility of getting captured; because they do not necessarily then know what they are doing in different landscapes.

Lastly, I would argue that one of the things that most distinguishes the UK innovation landscape from the US one, even taking size into consideration, and everything else, is the lack of confidence. Since I have lived in the UK, for the last 20 years—I am now proudly a UK citizen—there has been constant change in names, whether it is the Technology Strategy Board becoming Innovate UK or what is now the Department for Business, Energy and Industrial Strategy having changed its name four times in the past 20 years. If Government do not know what innovation is for, and if they have these constant consultations with others telling them what to do, that exudes—it kind of reeks of—lack of security. I am not saying you should be confident for the sake of it. I do not even think that is necessarily a value to be held; but this idea that actually we do not even know what we are talking about in terms of what the role of BEIS is, or what the different types of institutions are, what their role is and how they can work together with a dynamic, innovative division of labour, instead of constantly changing the names of existing institutions or bringing forth new ones: that is just something that someone is going to have to deal with.

None Portrait The Chair
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Professor Bond?

Professor Bond: I think the question I was asked was about the qualities I might look for in someone. I think that the principal quality that you want in a director, and in the programme managers, is divergent thinking. We have a tremendous system for educating people to become extraordinarily good convergent thinkers. That means they are very good at solving problems in a specialised domain; and that is a valuable set of skills. Here, you need something that goes beyond it. We have heard a lot about NASA. NASA famously realised this in the early days and set about looking for divergent thinkers—and had a test for divergent thinkers. You want someone who shows the ability to be both a very good convergent thinker—a conventional thinker—but also a very good divergent thinker. That is a much rarer thing.

I think you want someone who has shown that they have a real interest in cross-cutting by having done it much of their life. A lot of people talk about it but do not do it. So you want someone who does. When I say cross-cutting I mean across different disciplines—someone who has actually done more than one discipline and someone who has actually worked with industry and academia. That is what I think would be ideal—someone who has an insight into science but also engineering, because you are going to need engineering know-how, and engineering thinking is not the same as scientific thinking. I have worked a lot with Formula 1, for example, and with Rolls-Royce, and it is a different form of thinking.

It is a little closer to what Professor Mazzucato was referring to when she said that you want to combine the thinking of fundamental research with really pushing the limits and boundaries of things. I think you want someone like that. Someone phrased it to me recently as not wanting to see the usual suspects; that is probably one way you can frame it. I think you want somebody who is clearly respected, because people who know them know that at least they have solved some hard problems.

I would like to address the point about avoiding capture. You can talk about people having special interests. Lots of people have come out and said what they think this should do. I have tried rather hard to say exactly what I do not think it should do. I do not think it should do this, that or the other and I do not think that you should necessarily say that it should do this, that or the other, so I am not someone who would want to end up capturing it, in that sense. I want to firmly assert that you put trust in people. When you put trust in people, those people will have some ideas, expertise and background, so you will be making choices. Making choices does not equate to capture, and it is entirely possible to put trust into excellent people and let them do things. We do that with democracy and with Parliament.

In terms of the level of transparency, transparency is a good and wonderful thing in most areas, but if you are asking people to go out on a limb to really push the envelope, I would assert that there is an argument, which has some validity, that you make it psychologically much easier for them if they do not feel that they are under a microscope. Many people tend to step back when they are there. Unless there is some overarching reason for it, I think that they can absolutely be over the size of what is done—they should be and will be—but I do not think it needs to be excessively burdensome in terms of the transparency of what is happening. Again, it comes back to the trust model that you have. The trust model I have is that I believe you can find people you can put trust into, even with £800 million.

None Portrait The Chair
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Thank you very much. I am just going to give the timing because I do not want to run out of time and we have less than 15 minutes left. I have the list of people wanting to speak and I will take it in this order: Daniel Zeichner, Jane Hunt, Sarah Owen and Aaron Bell. Did I miss anybody out? No. I move now to Daniel Zeichner.

Daniel Zeichner Portrait Daniel Zeichner
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Q Thank you very much, Ms McVey. I have two questions; the first is to Professor Mazzucato. You obviously set a lot of store by the 2017 industrial strategy—you waved!—yet its current status seems somewhat uncertain. Were that not to be going forward, does this whole system then work, in your view? What would be the impact of not having those great challenges and goals set out?

Then I have a question for Professor Bond, which was actually posed by Professor Wilsdon in an article he wrote a while ago. He asked:

“What empirical evidence is there of the problems in the UK’s R&D system to which the Aria bill is the solution?”

Professor Mazzucato: Talking about innovation policy without an industrial strategy or an industrial strategy without an innovation policy are equally futile. The problem is what do we even mean by an industrial strategy. I have already mentioned that I think that the wrong kind of industrial strategy is one that makes a random list of sectors, technologies or types of firms, to find SMEs and so on. It is more one that focuses on problems and then gets all sorts of different sectors to solve those problems together and then, for example with SMEs, it gives them extra support because they are small. The support they get is not because they are small, as though small is great quality, but because they become an active member of a transformation strategy in which both the industrial and the innovation side are equally important.

It has been talked about that the UK Government are abandoning their industrial strategy; I do not think that is actually true. I speak to very able civil servants working today in BEIS and I think action on an industrial strategy is going forward. My question is, why have we decided that it is no longer called an industrial strategy? That actually comes back to my previous point about the lack of confidence—perhaps someone decided that it sounds too ideological, although I am not sure why because it is not at all. The US Government are reviving their industrial strategy. Many countries have industrial strategies. The reason that Denmark is the No. 1 provider of high tech green digital services to China, which is spending more than $2 trillion greening its whole economy, is because it has had an industrial strategy.

One thing is to name things for what they are. The UK continues to have an industrial strategy. Wonderful documents have come out about the innovation policy from BEIS, but if we are not calling things what they are, that creates confusion. The way to attract top people to Government is to be clear, as I said before, about what Government are for.

Let us look at the way that the US Government managed to hire a Nobel prize-winning physicist to direct the Department of Energy, Steve Chu. He set up ARPA-E back in 2009, where the first director was Arun Majumdar, who then went on to direct the energy programme for Google. He was not told to come in because he was a geek, or to incentivise business for the sake of it; he was told to come in to help Obama direct the stimulus programme, which was $800 billion, in a green direction. That sounded incredibly exciting and, of course, he was willing to leave Stanford for some years to do that.

The best way to bring top thinkers and experts with different types of expertise into Government is to make it exciting in terms of what Government are there to do. That has to be not just fixing market failures but being actively part of the co-creation and co-shaping, alongside business, of the markets of the future. DARPA has been really good at doing that within its space. It does not matter what the budget is—I would argue for a larger budget for innovation in general in the UK, but even with a fraction of that budget, what is the remit of that organisation? If it is just fixing problems along the way, or asking business what it needs, or being a clear, proactive, mission-oriented shaper of markets, that will definitely impact its success, but especially who will want to work in it with high expertise.

Professor Bond: I was asked, what evidence is there of issues in UK R&D to which ARIA is a solution? First, we have a wonderful science base but it has largely become incentivised to publish papers in fancy journals—that is how you make your mark and get promoted and respected. That is a fabulously good thing, but ARIA can do something quite different. When you work in industry, your goal is to build or make something or move something forward, not worry about publishing it. In fact, usually you do not bother to publish it. For all that we are a tremendous scientific nation, there has been such a focus on that, but we could focus a lot more on doing things rather than feeling that there should be publications. I am not saying that there should not be publications, but that certainly should not be the focus.

A lot of what happens in academia, for perfectly good reasons, is to move things to some low-level prototype at most. There is often a lack of the kind of engineering that companies are required to do. That is not to wave a finger at academia—that is not what it is there to do. You need to do things differently when you are in industry. There is a role to be played by a group that can do those two things very well. Industry also does not necessarily do everything as well as one would like. There are exemplars where everything gets done very well, I hasten to add. It is absolutely possible, as Professor Mazzucato put very well, to link applied research to develop things and to bring in deep expertise when you need it. We can do more of that, and I think this can be an exemplar of a good way of doing it. If you want evidence, it is that the Americans have done that with ARPA and have been really successful at it. We have not had one. I will use that as the evidence.

None Portrait The Chair
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Thank you. Mindful of time, I call Jane Hunt.

Jane Hunt Portrait Jane Hunt (Loughborough) (Con)
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Q Thank you, Ms McVey. It is a pleasure to serve under your chairmanship. My question is to Professor Mazzucato and Professor Bond. In the previous session, it was very interesting what UKRI said about there being almost a language of going through the process of bidding for and gaining R&D funding in the UK, and they do it very well. But they talked about there being an area that could be developed to free up minds. How do we attract fresh ideas and thinking from some of the experts and inventors of our generation who are not always able to engage in the current R&D structure?

Professor Mazzucato: Wow, that is a fantastic question, and of course it also goes back to the education system. This may be too broad a point, but the more unequal an education system is, the less able a country is to access the full range of potential innovators, so we should always be linking up the two. Education should really be the great leveller. There is this big distinction between private and public, and even within the public and state system there are huge differences. One could even look at the whole A-level system. I once asked myself how many people in the UK study mathematics. Only a few do an A-level in maths. Do you even study calculus? In most countries, everyone, whether they become a poet, an engineer, a geologist or an English teacher, studies calculus as part of their training. Going back to the education system and looking at how it is distributed, in terms of the high quality within a country, but also regionally and by class, is a big point.

On the other part of that question, the first point that I made today is that the discussion about ARIA should not get confused with the fact that we always need curiosity-driven research. The National Science Foundation funding or the Research Councils UK funding in the UK really should reward great ideas because they are great ideas, whether or not they are talking about some big societal challenge. That should always be properly funded. Again, if you compare us with some other OECD countries, we are not necessarily on par with that.

We should have a conversation at the same time about what institutions galvanise the mix of thinking between basic and applied. That is why Vince Cable set up the catapult centres, which were modelled on the Fraunhofer institutes. The difference between Fraunhofers and catapults is not only that the German Government spend 10 times as much on Fraunhofers as we spend on catapults, but also that the same person—the same individual human being—goes from being a civil servant to being a businessperson within the Fraunhofers. There is a much less fuzzy distinction that we tend to make in the UK between the bureaucrat and the entrepreneur. That itself is a really interesting function of an agency, coming back to Professor Bond’s point that we should not have these siloed areas, with academies just doing the academies and then businesses on the other side. Finding those interesting corridors, where there is a basic needs supply but the same person breaks down the false dichotomy between bureaucrat and entrepreneur, is something that is perhaps missing in the UK’s innovation landscape.

None Portrait The Chair
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Thank you. Can I just interrupt and say that there are three minutes left and I have two questions left? Can people be to the point?

Professor Bond: I think ARIA cannot and will not address every creative mind that we have in invention, but we can do more as a nation for inventors. We can do something like Kaggle, which is a fabulous way of bringing people together. We can do more easy seeding of things, and we can have a lot more Makerspaces. Those are a couple of ideas. I could keep going on, but we do not have time.

None Portrait The Chair
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Thank you.

Sarah Owen Portrait Sarah Owen (Luton North) (Lab)
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Q It is a pleasure to serve under your chairmanship, Ms McVey, especially in my first Bill Committee.

We have heard a lot of evidence in the two sessions about the need for ARIA to identify what it is for. We should also be clear about what it is not for. Professor Wilsdon, do you think that moral and ethical boundaries need to be placed on ARIA?

Professor Wilsdon: You mean in terms of the research areas it would work in?

Sarah Owen Portrait Sarah Owen
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Yes.

Professor Wilsdon: I am not sure whether one would need to legislate for that. I would expect that most provisions in those areas would apply, but it is a good question and one that bears more thought. It links a bit to my point about accountability mechanisms. As I have said already, the nervousness is that you combine an institution with a fuzzy, ill-defined purpose with very loose mechanisms of accountability. That is a recipe for all sorts of problems down the line, as well as potentially for great things—who knows? It is a model that has very obvious potential flaws. It is not going to work in the defence arena, which is clearly the one, as I understand it at least, that would raise the most issues in that respect. The key thing is the governance structure for this entity, which I see as too loose.

None Portrait The Chair
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I think we are going to hear your question, Aaron, but we will not get the reply.

Aaron Bell Portrait Aaron Bell
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Q Professor Bond, you said that opacity is useful because it avoids too much pressure being put on people. Does that apply to trying to get new people into the space?

Professor Bond: Sorry, when you say “new people”—

Aaron Bell Portrait Aaron Bell
- Hansard - - - Excerpts

Q People we are trying to get in through the challenges and so on.

Professor Bond: Yes, I think so.

None Portrait The Chair
- Hansard -

Perfect. We have come to the end of the time allocated for the Committee to ask questions, and indeed for this morning’s sitting. I thank our witnesses on behalf of the Committee for their evidence. Professor James Wilsdon from the University of Sheffield, Professor Mariana Mazzucato from University College London and Professor Philip Bond from the University of Manchester, thank you very much indeed.

Ordered, That further consideration be now adjourned. —(Michael Tomlinson.)

11:25
Adjourned till this day at Two o’clock.

Advanced Research and Invention Agency Bill (Second sitting)

Wednesday 14th April 2021

(3 years ago)

Public Bill Committees
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
The Committee consisted of the following Members:
Chairs: †Judith Cummins, Mr Philip Hollobone, Esther McVey, Derek Twigg
† Baker, Duncan (North Norfolk) (Con)
† Bell, Aaron (Newcastle-under-Lyme) (Con)
Blackman, Kirsty (Aberdeen North) (SNP)
† Butler, Dawn (Brent Central) (Lab)
† Crosbie, Virginia (Ynys Môn) (Con)
† Fletcher, Mark (Bolsover) (Con)
† Flynn, Stephen (Aberdeen South) (SNP)
† Furniss, Gill (Sheffield, Brightside and Hillsborough) (Lab)
† Hunt, Jane (Loughborough) (Con)
† Mayhew, Jerome (Broadland) (Con)
† Metcalfe, Stephen (South Basildon and East Thurrock) (Con)
† Onwurah, Chi (Newcastle upon Tyne Central) (Lab)
† Owen, Sarah (Luton North) (Lab)
Richardson, Angela (Guildford) (Con)
† Solloway, Amanda (Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy)
† Tomlinson, Michael (Lord Commissioner of Her Majestys Treasury)
† Zeichner, Daniel (Cambridge) (Lab)
Sarah Ioannou, Seb Newman, Committee Clerks
† attended the Committee
Witnesses
Dr Peter Highnam, Deputy Director, Defense Advanced Research Projects Agency
Professor Pierre Azoulay, MIT
Dr Regina E. Dugan, CEO, Wellcome Leap
Professor Dame Anne Glover, Former President, Royal Society of Edinburgh, and Special Adviser to VC, University of Strathclyde
Tabitha Goldstaub, Co-Founder, CognitionX (also Chair, AI Council)
Adrian Smith, President, The Royal Society
Felicity Burch, Director of Innovation and Digital, Confederation of British Industry
Professor Sir Jim McDonald, President, Royal Academy of Engineering
David Cleevely CBE, Chair of Focal Point Positioning Ltd and the Cambridge Science Centre
Bob Sorrell, Chair, CaSE
Public Bill Committee
Wednesday 14 April 2021
(Afternoon)
[Judith Cummins in the Chair]
Advanced Research and Invention Agency Bill
14:00
The Committee deliberated in private.
Examination of Witnesses
Dr Peter Highnam, Professor Pierre Azoulay and Dr Regina E. Dugan gave evidence.
14:01
None Portrait The Chair
- Hansard -

Q27 We will hear oral evidence from Dr Peter Highnam, deputy director at the US Defense Advanced Research Projects Agency; Professor Pierre Azoulay, Massachusetts Institute of Technology; and Dr Regina Dugan, chief executive officer of Wellcome Leap. We have until 3 pm for this session. I call on the witnesses please to introduce themselves for the record.

Dr Highnam: Thank you very much for the invitation. I look forward to your questions.

Professor Azoulay: Good afternoon. Thank you very much for inviting me to testify in front of the Committee. I look forward to the exchange.

Dr Dugan: I am Regina Dugan, the CEO of Wellcome Leap. I look forward to your questions.

None Portrait The Chair
- Hansard -

Thank you for coming to this important evidence session. You are all very welcome. We will start the questions with our shadow Minister, Chi Onwurah.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

Q It is a pleasure to serve under your chairship, Mrs Cummins. May I also echo your thanks to our witnesses for taking the time to join us for this important session? I am in awe of the range and breadth of your experience in innovation and scientific research, and all the more grateful to those of you with experience of DARPA for joining us this afternoon, as the architect of the Advanced Research and Invention Agency, Dominic Cummings, the previous adviser to the Prime Minister, has apparently refused to give evidence to the Committee. We are able to go only by what he has said previously, and there seems to be some confusion as to what ARIA is and whether it should be engaged in cutting-edge research or in the translation of existing research. You might be able to comment on that.

Dominic Cummings said:

“The purpose of ARIA ought to be to sample in this broader design space, to do things differently, and to learn from the things that have been super-productive in the past. That means in very simple terms extreme freedom.”

Dr Highnam, does DARPA have “extreme freedom”? What does that mean in cultural terms? Does complying with, for example, US freedom of information laws or procurement regulations—it is proposed that ARIA would be exempt from them—impact on that freedom?

Dr Highnam: That is a great question. DARPA is an agency in the Department of Defense in the US Government. We have a number of regulations and laws that of course we operate within. We have a number of special authorities that allow us to operate a little faster and with a little more independence, but with oversight. It is a place that moves quickly. As you are probably aware, when you show up at DARPA, you have an expiration date on your badge, as we say, so you move fast and the whole place is geared to do that. The agency now has a record of 63 years of production—again, with oversight at all times. It gets the job done, in that context.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q I will follow up on that and then bring in the other witnesses. You speak about oversight. Would it be possible to give a bit more detail on that? In particular, the UK Government are currently mired in a cronyism scandal; indeed, that is what is being debated in the House today. DARPA is well known for having exchange between itself and the private sector, but how do you prevent projects or programmes from going to friends, mates and those with, if you like, special interests, without some degree of oversight?

Dr Highnam: I can speak only to how DARPA operates. We have very rigorous review processes—technical, financial and others. We have conflict of interest rules and so on that we all follow. There are robust processes and independent looks at those processes. Again, we could not operate any other way.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much. Could I ask our other witnesses to respond?

Professor Azoulay: If I might add one element to the question that the hon. Member asked, the programme managers at DARPA and also at ARPA-E—the Advanced Research Projects Agency-Energy—have a fixed expiration date, which means they will need to go back to academia or to the venture capital firm or large firm that they left, and generally they want to do so with their head held high and their reputation intact. I think that that has created over time a norm of correct behaviour, if you will, and the absence of cronyism. That norm element is also very important, in addition to the formal regulations.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q When they go back, are they allowed, for example, to direct finance at the companies to which they return?

Dr Highnam: No.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

That is very clear.

Dr Dugan: I served as the 19th director of DARPA and echo Peter’s statements that there are indeed oversight and regulations that govern the behaviour at DARPA. We have free and open competitions. One of the things it is important to understand is that part of the reason that innovation is so robust at DARPA is that there is a sense that there is an equal opportunity for many to apply to the programmes and to be fairly judged. As a result, many bring their ideas to DARPA. That is part of the robustness of the ecosystem that has developed around the agency. It is a very important element of the work.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much for your responses. May ask one more follow-up question? I have spoken about some of the concerns about oversight and so on, but may I ask each of you what you think is the key positive element of culture? You have spoken about the desire to return with your head held high. What should we be looking for in the directors and programme managers as the key positive part of the culture that ARIA should seek to build?

Dr Highnam: Honour in public service is top of the list.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Honour?

Dr Highnam: Yes. You join a place like DARPA to change your field and make a difference for defence. We are a defence agency. When you come to DARPA, we give you the lever arm, we help you position the fulcrum, we give you the mass to make things happen, and we give you the processes around you to make sure, as Regina said, you do it fairly, openly and robustly. We do exit interviews when people leave DARPA, and one of my favourite quotes is, “If you don’t invent the internet at DARPA, you get a B.”

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Fabulous.

Professor Azoulay: I second that entirely, but I would also say credibility in both the scientific world and the business world. It is a relatively rare breed of individuals who have credibility in both domains at the same time, but that is to quite a large extent the X factor in the typical DARPA or ARPA-E programme manager.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much. Dr Dugan, I will ask you the same question. The tech sector and science and innovation are not known for their diversity, but we have heard that diversity of thought is very important in the agency. As shadow Minister, I would like to see a broad range of diversity in the people who are recruited, in terms of gender, class and race. I am asking this question of you because you are the last person that I came to. How can the culture promote diversity as well as being positive?

Dr Dugan: Let me take the questions in order. I would add that DARPA and ARPA-like organisations are optimised to create breakthroughs. Those breakthroughs happen at the intersection of some science and engineering that we are pulling forward in service to a new capability or a new problem solution. We design the programmes such that we have a very clear and ambitious goal that is also measurable and testable. Programme directors have a finite period in which they collect a group of performers from a mix of organisations and disciplines in service to that goal, and there is passion, spirit and urgency that comes with that. It cannot be created in the abstract; it has to be real in order to engender the kind of genius and collaboration that is characteristic of these programmes.

The programme directors are themselves scientific or engineering experts. They are great musicians, as you might think, but they are not playing an instrument at the time of conducting the programme; they are rather conducting an orchestra of expert musicians who together make a symphony. That is very important.

What I can tell you about diversity from my own experience, both in Silicon Valley and at DARPA, is that for decades we have known that specificity of goal and outcome is a good way to get more equality and diversity in assessment of ideas and in people conducting or pursuing those ideas. We know that across academic institutions and across companies. One of the things that is important is to set crisp and clear goals, because the ideas are then measured against them, and they can come from many different individuals and organisations. As I said previously, I believe that is central to building that ecosystem out, and for that ecosystem to be diverse and more equitable.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Thank you very much. I know that others have questions to ask so I will leave it there, but I just want to say how inspiring it is to hear such positive reference to the power of public service, science and research, and to oversight as being an enabler rather than a burden.

Amanda Solloway Portrait The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Amanda Solloway)
- Hansard - - - Excerpts

Q It is a great pleasure to serve under your stewardship, Mrs Cummins. I want to acknowledge the excellence of our witnesses and to thank them. With your permission, I will ask one question to each witness.

I am going to start with Dr Peter Highnam. How do you ensure evaluation and scrutiny of DARPA’s programmes outside what is mandated in legislation? What information do you gather to assess when to start and stop projects and programmes, and how are these decisions made?

Dr Highnam: That is a surprisingly big question. The p in DARPA stands for “projects”, which is critical for a place like DARPA. We are not doing technology area x or y just because, and we do not do it for the long term. We have projects that are well defined at the beginning. A case has to be made. They are monitored, they have metrics and all manner of independent evaluation associated with them before we go out to find the best teams we can to participate and to be funded to work on that research. Then that project ends. That is very important: things begin, and they end.

To make the case for a project to get off the ground, we use a structure called the Heilmeier questions, named after the DARPA director in the mid-70s, George Heilmeier. They are five very important questions. They look easy, but they are very hard to answer well. In my view, that is the creative act in the DARPA model—to answer those questions well and make that case. Once the project is approved and teams are onboard, you then have regular evaluations. As things change in the world around us, in science and technology, with us in defence, and in other aspects of our environment, they may be overtaken by events. That is very rare, but it would be grounds for no longer continuing. Were we too ambitious in certain aspects of the programme? Do we need to change it or change some of the people participating in the teams? And so on.

This is a constant process. It is not about starting it up and letting it run until it finishes. It takes a lot of effort to make sure you know what you are doing when you start with taxpayer funding and the opportunity cost that comes with that. Then you keep an eye on it, especially during the transition of the results to our national defence.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Thank you. That was a very precise answer to what I know was a very large question. I would next like to come to Regina Dugan, if I may. As you well know, Wellcome Leap was created as a separate body from Wellcome Trust. Why was that decision made and how will it help Wellcome Leap achieve its objectives sitting outside of the Wellcome Trust?

Dr Dugan: The story of Wellcome Leap actually dates back to about 2018, when the Wellcome Trust, from its unique position in the world, asked, “Is there more we could do to have greater impact?” It did a pretty careful analysis of innovation as it happened in larger organisations in the venture world and also at DARPA. The assessment was that in global human health, there is indeed this innovation gap. That innovation gap is characterised by larger programmes with higher risk tolerance, which are not driven by consensus peer review. This is very much the way we conduct programmes at DARPA—the intersection of a goal and the science and engineering that need to be pulled forward in order to attain that goal. That effort—those large programmes—are what Wellcome sought in the formation of Wellcome Leap. What I have observed in the last year of operation is that, in fact, there is this innovation gap in human health. It is same one that was identified after Sputnik that led to the formation of DARPA. The coronavirus is showing us just how much work needs to be done in human health across policy, equity and the economics, but it also shows us the power of a breakthrough and how tough it is to get one.

I was the director of DARPA when the pivotal investments in mRNA vaccines were made. Many others came to the table to create this success for the world in this time, but we need more breakthroughs like that, and we need them faster. That is why Wellcome Leap was formed.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Thank you very much. That is really helpful. My final question is to Professor Azoulay. In your paper you mention that organisations’ flexibility is essential to the ARPA model. Can you talk a little bit about what that flexibility involves please?

Professor Azoulay: Absolutely, it is essential and I think it happens at multiple levels. It happens in the relative administrative autonomy that those ARPA-like agencies have, relative to their Government Departments of reference, whether it is the Department of Energy for ARPA-E or the Department of Defense for DARPA.

It definitely also happens at the hiring level and in the fact that one can hire programme managers in ARPA-like agencies from very diverse backgrounds, not necessarily a background in the civil service, and pay them according to rules that might not be those of the traditional civil service.

Focusing on programme managers, that matters because they themselves have quite a bit of autonomy in the way in which they delineate and orchestrate their programme. They have a lot more discretion in choosing what projects to fund and assembling the teams that will perform those projects than would be the case in a traditional science funding agency, such as the National Institutes of Health or the National Science Foundation in the United States context or, I would think, UK Research and Innovation in the British context.

None Portrait The Chair
- Hansard -

I call Stephen Flynn, the spokesperson for the SNP.

Stephen Flynn Portrait Stephen Flynn (Aberdeen South) (SNP)
- Hansard - - - Excerpts

Q Thank you, Ms Cummins. It is a pleasure to serve under you as Chair. I thank the witnesses for their comprehensive answers so far. They have been incredibly helpful.

I would like to pick up on a comment made by Dr Dugan, I think, in respect of the intersection of a goal, and using science and engineering to achieve that goal. It would appear, from looking at what is front of us, that the ARIA Bill does not have a goal. There is no mission or bright light that we are trying to get to. What is your collective view—all three of you—in relation to that? ARIA has no mission: is that a good thing or a bad thing?

Secondly, and hopefully briefly, do you think that the UK needs ARIA in order to compete globally when it comes to science and technology research and development?

Dr Dugan: Let me start by clarifying. From its beginning, the mission of DARPA has been very simple: to both create and prevent strategic surprise. Its connection to national defence has been important to its success. The particular goals that I spoke about were related to the programmes themselves. The programmes are constructed such that we have a clear way of measuring success or failure for the programme at the end of the programme. It is those two things that fit together: the programmes with individual ambitious measurable and testable goals, in service to the overall mission.

I have said in previous testimony that there is some wisdom in thinking about ARIA as directed to specific areas of interest in the UK; I think that is worthy of some thought. There is a strong base of expertise in the UK related to health and the life sciences. Therefore, that could be an area of focus within the resources that you have available to you.

To answer your second question with respect to the UK on the global stage, I believe that at this moment there is a historic opportunity in front of your Government to take a position on the global leadership stage. My particular area of focus has been in human health over the last year—that might be a way for the UK to come from the perspective of both national efforts and multinational efforts, in service to a global vision for what we want the world to look like post pandemic and post Brexit.

Professor Azoulay: If I may, I would like to answer the first part of the question. I read the Bill carefully, and I too was looking for a mission, because DARPA and ARPA-E are mission-oriented agencies. Having a high-level mission is very important to define the programmes with the specific goals that Dr Dugan was talking about, which will fit in the overall mission. It is entirely possible that ARIA will be something new in the innovation funding landscape—a UK model that will blaze a new trail. But if we compare it explicitly to something such as DARPA or ARPA-E, in its current form it is lacking a high-level mission. To give an example, for ARPA-E that high-level mission is to overcome the long-term and high-risk technological barriers in the development of energy technologies. It is quite high level. Having that front of mind for everyone in the agency channels the energy and lets people animate or catalyse a community to allow the portfolio of projects to be more than just the sum of its constituent parts.

Dr Highnam: DARPA: defence and national security. Clear mission; clear scope in which to work. Of the ARPA-like entities around that I am aware of, the only one that very closely follows the DARPA model would be the Intelligence Advanced Research Projects Activity in the US intelligence community. When you change what I would regard as the key elements—ephemeral or temporary people, project based, and no fixed assets—that have made DARPA nimble and forward leaning for 63 years now, you get something else. That may be more appropriate for what you need, but if the objective is to mimic or replicate, there is only one example that I know, and there are three key ingredients.

Within that model, DARPA is a very shallow place in the managerial sense. Three layers deep: there is a front office, some tech offices and the programme managers. The overall mission provides the context, but the frequent hiring of office directors and PMs, and front office people too, means that there is always exploration—looking for that advantage. Part of our mission is to impose and avoid technological surprise. That is why we are here. It focuses everything.

Stephen Flynn Portrait Stephen Flynn
- Hansard - - - Excerpts

That is very helpful, thank you.

Stephen Metcalfe Portrait Stephen Metcalfe (South Basildon and East Thurrock) (Con)
- Hansard - - - Excerpts

Q It is a pleasure to serve under your leadership this afternoon, Ms Cummins. Thank you to our excellent witnesses. I am interested in the practical approach. When you have made some breakthroughs on these various high-risk projects, how do you ensure that the breakthrough reaches its full potential? Is it done through the ARPA model, passing it on to someone else to take it to the next stage? Is it the project manager who has a role in ensuring that it goes into safe hands, or is it the churn of people—the revolving door—that helps transfer that knowledge out an ARPA and into business, so that it can create service and product?

Dr Highnam: If I may, I will take the first shot at this one. It is the first two: we do not rely on the churn, as you say, of people for transition, but when you show up—when you come here—you come to make a difference. So you are always focused on transitioning the knowledge that is discovered in a more systems-oriented research programme—the thing or the entity—across into service of the nation. It is part of what you do. I think, as someone said earlier, it is that intersection of managerial and technical expertise, and a passion: those are the people you want at DARPA at any given time to frame and to drive—and not just to drive to discover, but to drive to transition as well. We watch that very carefully and the responsibility belongs to all of us in the agency.

Dr Dugan: We used to say at DARPA—and this is, I think, generally true of most organisations—transition is a full-contact sport, always has been and always will be. It is very difficult. Transitions of breakthroughs that are showing what is now newly possible, or a solution that did not previously exist, require a tremendous amount of effort. I think that it is important to recognise that there are many transition paths that grow out of an organisation that is ARPA-like. Some of the programmes, in the case of DARPA, transition to our military counterparts. Some of them transition to the commercial sector and then are bought back by national security or military. There are many different pathways. In some cases, programme managers go to other Government organisations to help in those transitions. In some cases, they rotate out and go to new things entirely.

It is important to recognise that the breakthrough itself is not sticky through the organisation that it was created in. The breakthrough then gets transitioned to impact and scale in the most suitable organisation in order to create that ultimate impact. I would add, in addition to the passion that many programme managers and directors feel, they are also impact junkies. They really come to make a difference. So the ultimate transition—the ultimate scaling and impact—is the goal. Make the breakthrough, and then transition it to scale.

Professor Azoulay: I want to note that there is a distinction between DARPA and other ARPA-like agencies in different contexts. I am sure Dr Highnam and Dr Dugan will think that it is an oversimplification, but to some extent there is one customer for the projects that come out of DARPA, whereas for something like ARPA-E it is a much more diverse and scattered ecosystem. The breakthrough needs to latch on to the energy system, and there are lots of different actors with lots of different interests. At ARPA-E that has meant that they have created explicitly a tech-to-market group, to try to get ahead of the translation problem of the project that has come out of the agency. I want to say that this is not independent of the mission. To create a good tech-to-market group, you need a certain scale within a certain scope, and to the extent that your projects are too scattered, it is going to be a lot harder to create that scale, and so harder to create the transitions.

Stephen Metcalfe Portrait Stephen Metcalfe
- Hansard - - - Excerpts

Just to follow up briefly, thank you for that; it is comprehensive and helpful. It highlights the fact that you are looking for more than just individuals with some inspiring ideas. They have got to have the ability to own the research and inspire the next stage in its progress. I just think we should put that on record—that programme managers have to be multi-skilled in a number of different areas. So thank you for that.

Dawn Butler Portrait Dawn Butler (Brent Central) (Lab)
- Hansard - - - Excerpts

Q It is great to serve under your chairmanship today, Ms Cummins. Thank you very much to the witnesses today. It is very enlightening. On the back of the last question with regard to managerial content I really like the idea that the transition is an impact or contact sport. You go in, do your best work and get out with your reputation intact. I have two questions about that. First, how do you reach those people who are not known—who may be working on something very creative but are not well known in the industry? Secondly, you have talked a lot about evaluations. Are they peer-to-peer evaluations, and is that evaluation transparent? Perhaps we will go to Dr Highnam first.

Dr Highnam: We do—I am very proud of this—full and open competition to the greatest extent possible. The process is approximately like this. A programme manager has framed a programme, using the Heilmeier questions, and received approval to launch. They put out various announcements in different places. They organise industry days—these are more virtual than in person, but we do both. We put it into the various mailing lists in all manner of technical communities. We push it out through small business and make sure the universities and the vice-presidents for research and development are all aware. We make the maximum push that we can, certainly for unclassified activities.

Then, when proposals come in—we are very clear on what we expect to see in a proposal, which is how we then evaluate proposals; we are very transparent on the requirements for that—we take a look and, surprisingly often, to respond to your point, you will find a technology or a small business had an idea that meets the goal. We do not over-engineer the request for proposals. We say, “Here’s what we want to do. Here are the boundaries, if you like, in terms of technical elements we are interested in. It’s up to you guys. Come back with the best team that you can and the best approach that you can for solving this.” And there is always a surprise. From a PM perspective—Regina and I have both been PMs at DARPA—you always find yourself saying, “Oh, I didn’t think of that. That may be the one that actually wins; we don’t know.”

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

I can see Professor Azoulay nodding.

Dr Highnam: On your second point, about transparency, we have, again, very rigorous processes. These are all fully documented, and feedback is provided in order to engender better proposals next time from those who happen to be unsuccessful in a particular programme.

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

Great—thank you. Dr Dugan, I saw you nodding as well.

Dr Dugan: If we want to get down to some specifics, I think it is important to recognise that the evaluation process for us is very much about separating the abstracts or the proposals into two baskets: those that are responsive to the call and could potentially help us to meet the goal; and those that are not. But it is not an explicit, peer-reviewed consensus rank ordering of those proposals, and the reason why we do not do it that way is that rank ordering tends to favour the most conservative of the proposals. What we seek instead is to take those that could contribute to the goal and, from them, construct a programme, with the appropriate pieces, the right risk profile and the right disciplines and mix of organisations, to achieve the goal.

In this respect, I want to be clear. There are practices and principles that we use here. We can write down some of the rules that we use and give you some elements of the playbook, but there is here a certain mastery of practice and principle that it is necessary to understand, and in that respect the programme construction is fair and equitable but also designed to take the elements of the proposer’s work that most substantively contribute to the goal, even if they are potentially high-risk. That is how you construct a programme that is optimised for breakthroughs.

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

Q My final question is to you all. How important do you think the link should be between ARIA and UKRI in the UK? Perhaps we will start with Professor Azoulay, because you have read the Bill very carefully.

Professor Azoulay: I think that those two modes of funding are complements, not substitutes. It is very important to have an ecosystem of funding. In the US, we are blessed with a very diverse ecosystem. Lots of domains, such as health—there are many, such as agriculture—in some sense are missing the ARPA-like elements, when they have a lot of those other elements.

It is important not to put those two agencies in competition; they both have a role to play. Of course, there is a perfectly legitimate debate about the relative levels of funding, but they would both be doing things that are tremendously important and that would complement each other in the long run.

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

Thank you. Dr Dugan?

Dr Dugan: Pierre makes a very good point. These are important elements of a robust and functioning ecosystem. We talked about the advances in mRNA, which have been so important in the corona pandemic. That relied on basic science, curiosity-driven research that happened mostly through NIH, pivotal investments in this breakthrough mode, this Pasteur’s quadrant style of work that DARPA is famous for, and also the private sector, which was instrumental in bringing it to scale, use and impact.

To Pierre’s point, these things have to fit together in order to create the breakthroughs—that is the innovation gap that is often filled by an ARPA-like organisation—but you must have a foundation of science from which to draw and you must have a mechanism of transitioning to scale, if all of it is going to make sense in impact.

It is very important to understand those things and in appropriate measure. Just to give you a sense of it, DARPA has operated with about 0.5% of the DOD budget for its entire 60-plus-year history. Small investments, relatively speaking, in these breakthrough-focused activities can make a big difference.

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

Thank you. Dr Highnam?

Dr Highnam: I am afraid that I do not know enough about your structures to be able to give a sensible answer.

Dawn Butler Portrait Dawn Butler
- Hansard - - - Excerpts

No problem. Thank you very much.

None Portrait The Chair
- Hansard -

Next, I have Aaron Bell and then Daniel Zeichner.

Aaron Bell Portrait Aaron Bell (Newcastle-under-Lyme) (Con)
- Hansard - - - Excerpts

Q Thank you, Ms Cummins. It is a pleasure to serve under your chairmanship. I thank all our witnesses and those who gave evidence to the Science and Technology Committee, which was greatly appreciated.

I have two related questions for the panel. First, notwithstanding your responses to Mr Flynn about the need for a mission, which it seems is going to be delivered by the chair and the chief executive of ARIA, how important is it that ARIA remains autonomous and free to pursue whatever its aims are, without interference from Government Ministers?

Secondly, what advice can you give the Committee about the funding methods ARIA might use? The Bill envisages potentially grants, loans, prizes, grant-prize hybrids, investments in companies. Could any of you give us advice on what has worked well in other settings? I would like to start with Dr Highnam, please.

Dr Highnam: On the funding mechanisms, we are an agency in the Department of Defense in the US Government, and we have a number of options available to us, which we make use of depending on the context. Of those that you listed, the only one that we do not do is take investment positions in companies. That is not what we do. You can make a proposal to us for research. You may offer a cost-share, depending on whether it is a major company and very systems-oriented work, all the way to a standard research grant to a university or small business, or a combination of those things.

We have a number of other options in between, including a modified form of commercial contract called an OTA—other transaction authority. They are referred to as OTs and are a very useful tool. DARPA was the first user of that about 20 some years ago. It is a great way of doing business.

To the first question, we are an agency in the US Government. We work in the Executive branch. We work and deal closely with Congress on all manner of things. We have flexibilities as an agency. We have ways of doing business and we are very careful to make sure that the wins that we achieve are well-known, and that we work within those boundaries. Again, the Administrations and Congress over the years have watched and helped DARPA, and have been incredibly supportive. The agency—Regina and I can both say this—keeps delivering as a culture and a mission place, because back in ’57,’58, they got a good recipe, and that culture persists despite 25% or higher personnel turnover. It is part of the Government, with all the benefits. All the—“constraints” is the wrong word—rules that come with that are there for a reason, and DARPA gets the job done.

Aaron Bell Portrait Aaron Bell
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Q Thank you. Yes, the culture is so important. Dr Dugan, could you answer on the point about autonomy and funding mechanisms?

Dr Dugan: I want to attach independence and autonomy to desired goals and outcomes here. The reason the agency sits so independently with respect to its decision making is to find this intersection, and get through the Heilmeier questions, as Peter has talked about. I would often refer to it as figuring out how to get a project inside Pasteur’s quadrant—the idea of having a very specific outcome in mind and having the science and engineering to support the idea that you could achieve it. That is a difficult analysis. That is the creativity that Peter is talking about.

You cannot mandate that from outside the agency. That work happens on the part of the technical teams inside the agency who are assessing the state of the science and the engineering. They are working in service to the mission of the organisation with an understanding of national security goals, and they are finding that intersection. It is the single hardest thing that we do in the agency: forming programmes in that spirit. It is not possible to do that by mandate outside the organisation.

That independence of decision making and the crafting of those programmes in that spirit are coupled, and that is part of the reason why the agency has been so successful over years. I think independence is in service to those outcomes and those breakthrough objectives.

Aaron Bell Portrait Aaron Bell
- Hansard - - - Excerpts

Q On the funding streams, could you perhaps tell us a little about how Wellcome Leap works with other bodies to fund or otherwise encourage research?

Dr Dugan: Much as Peter described, we use a variety of strategies. As you may have seen over the last year, one of the things that we did was to build a health breakthrough network, which now has almost 30 signatories on six continents. The goal there is to speed contracting, so that we can move down to days or weeks what would more typically be months or even as long as a year in contracting. The particular way that we work is through contracts; we do not actually do grants. I also think that this position of not taking equity is important, because the non-profit element of it is part of the differentiation, and we have an entire commercial sector that is good at assessing value and figuring out return on investment. That is not what is pivotal or differentiating for the organisation—neither for Wellcome Leap nor for DARPA.

Aaron Bell Portrait Aaron Bell
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Q Professor Azoulay, would you like to comment on either the autonomy point or the funding mechanisms?

Professor Azoulay: Yes, absolutely. First, I second what my colleagues have said and agree wholeheartedly. I would say that in terms of the modes of investment, the track record of Government agencies taking investment positions in companies is not very good, to put it mildly. It is interesting that it is something that neither ARPA-E nor DARPA actually does.

At the same time, it is important to point out that one way for an ARPA project to transition is to give birth to a start-up company. I know for a fact that in the context of ARPA-E, at least, that is something that is happening on a fairly regular basis, and that is actually tracked as one of the outcomes that one could look like, in addition to maybe much more traditional intermediate outcomes such as scientific papers and patents.

The more general point about autonomy is very important. It is really difficult. It requires forbearance on your part because the kinds of missions and impacts that you are trying to achieve at a very high level are long-term goals fundamentally. I might be overdoing it, but I have a sense that if you start ARIA today, you will not know if it has actually fulfilled its high-level mission for at least 15 years, and that might even be too optimistic.

Aaron Bell Portrait Aaron Bell
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Understood. Thank you.

None Portrait The Chair
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Next we have Daniel Zeichner, followed by Jerome Mayhew.

Daniel Zeichner Portrait Daniel Zeichner (Cambridge) (Lab)
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Q It is a pleasure to serve under your chairmanship, Ms Cummins. I thank the witnesses for what has been an extremely interesting insight so far. I represent the city of Cambridge, where, as you can imagine, many of these issues are a frequent source of discussion. From what I have heard so far, I take it there is not one model of ARPA. You have a number of models, depending upon the different sectors. I heard Dr Highnam say earlier that DARPA had not been replicated anywhere else, yet we are trying to model our system on what you have got. How much does it depend upon the context, not just within the sector and whether it is ARPA-E, ARPA-H or DARPA, but in the wider system? We heard from witnesses earlier today about other aspects of the ecosystem—public procurement, things such as the Small Business Research Initiative, which I understand we have a much less successful version of in this country, and having a single client or defence system. If you do not have clarity on any of that, what would be the consequences? Perhaps I could start with Dr Highnam.

Dr Highnam: I said in my previous comment that I am aware of only one example that replicated DARPA intact, and that was the intelligence ARPA in the US, where I served for about six and a half years. It is very true to DARPA as it stands. Others depend on context, which includes the context of discussions like this one where there is certainly the framing of an organisation. It is being pulled and pushed and moulded by many different forces and interests. What you get coming out will, I am afraid, naturally reflect that. In intelligence here, it was a straightforward thing. We wanted something very similar to DARPA. A number of us had come from DARPA and knew what that was.

Daniel Zeichner Portrait Daniel Zeichner
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Professor Azoulay?

Professor Azoulay: ARPA-E is not identical to DARPA, but we certainly try to inspire it to a very large extent. I think the difficulty here is that it is a tight bundle of practices that fit together, so one open question is to what extent can you pick and choose in terms of the menu of practices? What can you undo until you in some sense undo the entire model? It is important for us to level with you that we do not really know the answer to this question, because fundamentally there has been one DARPA, and that is the one we have been able to see for 60 years. One possibility that we might want to have in mind is that it does not take a lot of changes in the model to undo its effectiveness.

Daniel Zeichner Portrait Daniel Zeichner
- Hansard - - - Excerpts

Dr Dugan?

Dr Dugan: I agree with what Pierre just said. I might use an analogy if you will permit me. I think most would agree that Guardiola is a great coach. We could ask him how he has achieved the track record of wins and successes that he has. How has he envisioned a new style of play, constructed a team, coached the players, made decisions on the way in? He could write down some of the principles associated with that. On a day-to-day basis and across the duration of a season, he makes countless decisions, which are in service to these basic principles that create such a winning team. It is those detailed decisions that come from intuition and experience—the mastery of the practices and principles as Pierre would say—that are important to success.

At Wellcome Leap, for example, our first rule is to make as few rules as possible. Part of that is recognising that we have these practices and principles and we need to adjust a lot as we go along in the process. In setting up Wellcome Leap, I think Wellcome did a very good job of saying, “We are going to do the few things that we think are central. We need independence and governance. We need an experienced team to lead it. We need to free it from a profit motive, and then we need to let it do what it does.”

So there is this combination of a few principles that we can write down for you and then many other things that are about the practice of that come from the intuition and experience of leading these types of programmes to breakthroughs.

Daniel Zeichner Portrait Daniel Zeichner
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Q Just to come back on one point there, you say free it from the profit motive. I was quite struck through all of this by this stress on public service and honour, which is wonderful—perhaps we are struggling a bit with that here at the moment. Who owns the intellectual property on all of this? It is a complicated question. Is there a simple answer?

Dr Dugan: The organisations that create the breakthroughs own the intellectual property in the case of Wellcome Leap, and that is usually the case in DARPA. Now we usually also have a backstop, which says we have march-in rights if the entity either chooses not to commercialise it or to transition it to impact. Then we would go and say, “We need to take this in service of national security,” but at its core the intellectual property belongs to the inventor of the breakthroughs.

Dr Highnam: One addendum to that is that we have a notion here of Government purpose rights. Yes, the invention is owned by the creator, but if you receive DARPA funding and the appropriate terms are in the paperwork and the arrangement that we have with you then there are limited rights available to the US Government for those inventions.

Dr Dugan: Just to clarify what Peter is saying, those limited rights are about making sure the invention can be practised in service of national security.

Daniel Zeichner Portrait Daniel Zeichner
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That is really helpful. Thank you.

None Portrait The Chair
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I am afraid this will probably have to be the last question to this set of witnesses. I call Jerome Mayhew.

Jerome Mayhew Portrait Jerome Mayhew (Broadland) (Con)
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Q We are clearly taking a huge amount of inspiration from DARPA in the creation of ARIA. It is an organisation that has many strengths, but every organisation has weaknesses as well. I would like to give you the opportunity, given your huge knowledge and experience of DARPA, to give us advice on what to avoid. To put it more diplomatically, how can we improve on some of the DARPA processes?

Dr Dugan: One can look at any set of processes and ask, “Are they optimised for the outcomes?” I think ARPA-like organisations are very much optimised for the outcome, which is to catalyse breakthroughs. It is not optimised, as my colleagues have said, for multi-decade-type funding that supports basic research that is foundational and builds a body of knowledge and extends incrementally our understanding of the world. Neither is it optimised for commercial success. I think those things are okay, and there are other organisations and other funding mechanisms that are optimised for those types of activities.

Part of what we see is that the programmes very much take on the character of the programme directors. That is good from the perspective of speed, agility and getting the work done. Sometimes people do not agree with all the things the programme director says. That is the nature of the type of work we do, which is high-risk and breakthrough-oriented. We used to say that the good and the bad of DARPA is that it has no institutional knowledge, which means that we can take a shot at something that has been tried before, and most of the people who tried it before are no longer at DARPA. That is good, as it gives us multiple shots on goal in a changing science and engineering landscape.

Jerome Mayhew Portrait Jerome Mayhew
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Q Finally, to Professor Azoulay, DARPA clearly recognises the benefit of greater integration between the public sector and the private sector, but inevitably that exposes civil servants to political accusations of cronyism. How do you protect DARPA and DARPA servants from those kinds of attacks?

Professor Azoulay: I think there are two elements. One is rules—conflict of interest rules are very important in this regard—and the second, which I mentioned at the beginning, is norms. It is a lot about whom you choose to put in those roles. They typically have credibility and a reputation that is established in the world that they come from—it could be academia or the private sector. Serving as a programme manager at DARPA or ARPA-E is a wonderful opportunity to have an impact—

None Portrait The Chair
- Hansard -

Order. I am afraid that brings us to the end of this session, I am sorry. It is a perfect end to the session, but it is the end of the time allocated to the Committee to ask these questions. I thank our witnesses on behalf of the Committee for that evidence. Thank you very much.

Professor Azoulay: Thank you. It was a pleasure.

Examination of Witnesses

Professor Dame Anne Glover and Tabitha Goldstaub gave evidence.

15:01
None Portrait The Chair
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Q We will now hear evidence from Professor Dame Anne Glover, president of the Royal Society of Edinburgh and special adviser to the vice-chancellor of the University of Strathclyde, and Tabitha Goldstaub, co-founder of CognitionX and chair of the AI Council. Could you both introduce yourselves, please? We have until 3.45 pm for this session. Welcome and thank you.

Professor Glover: I am Anne Glover. I have just finished my three-year term as president of the Royal Society of Edinburgh, so I am no longer president of Scotland’s national academy. I am a molecular biologist by background. I have researched how we respond to stress at a molecular level, and I have looked at the diversity of microbes in the environment. I am very interested, and have worked in translating knowledge gained from research into policy making, and as such I was chief scientific adviser for Scotland from 2006 to 2011 and chief scientific adviser to the President of the European Commission from 2012 to 2015. I am currently at the University of Strathclyde.

Tabitha Goldstaub: I am Tabitha Goldstaub, the co-founder of CogX and the chair of the UK Government’s AI Council. We are an independent council created in 2018 as part of the industrial strategy’s AI sector deal. We support the Government via the Office for Artificial Intelligence, our secretariat, in offering independent expert advice, as well as community engagement. I am really here to share the thoughts of those I polled and workshopped with from that AI community. Thank you very much for inviting me.

None Portrait The Chair
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Thank you very much, both, and welcome. Our first set of questions will be from shadow Minister Chi Onwurah.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much to our guests for joining us and bringing your experience. It is a real pleasure to have an all-female panel. It is a real rarity when it comes to discussions of science generally.

There is some confusion about what ARIA should be. Should it be focused on cutting-edge research, should it be about the transformational translation of existing research, or should it bring the two together? What I would like to know from both of you, with your wide experience, is what you think ARIA’s goal or purpose should be. What problem should it fix?

Ms Goldstaub, you have experience of artificial intelligence, which could be a critical area of research. Do you think it is going to change the nature of research, how we research and how scientific research occurs? How should we envisage ARIA responding to that?

Tabitha Goldstaub: First and foremost on your point around focus, really it needs to be about imagining how funding is done to find the breakthroughs that others describe as being at the edge of the edge, with freedom—testing, for example, things like the lotteries, the grants, the speed of contracting, loans, prizes and all the things that we have heard about throughout the whole of today. I really think that ARIA is about exploring these ideas.

If you are looking for a single focus, I believe wholeheartedly in Mariana Mazzucato’s mission-driven approach to innovation. The AI community was incredibly catalysed by the industrial strategy grand challenges. And of course there are these urgent missions. Alondra Nelson said in her first speech post being nominated by Joe Biden that all science should address social inequality. That said, it is still unclear to me if there needs to be one challenge enshrined in law or whether the programme managers should have the freedom; I think we will hear more from others on what their decision is there. The most important thing is that I just kept hearing time and again from the community I spoke to, similarly to what the gentleman from DARPA said, that this is a time to serve. People really want to find a place to do research that saves people’s lives, especially in the AI eco-system.

I think that your question about the impact that AI has on research is a very good one. AI is impacting research, just as it does all areas of the economy, both in disrupting the fabric of its own self and advancing research. We have seen AI create state-of-the-art information-retrieving capabilities, sift through vast amounts of data and speed up the publishing process, so it is changing the process of research, but also in itself it is obviously making discoveries and scientific advancements.

Three per cent. of all peer-reviewed journals are now AI-related and this new trend of AI plus another science is really booming. So biology is currently experiencing its “AI moment”. We saw in the State of AI report that there is a 50% year-on-year increase in papers; 25% of the output since 2000 is a biology and AI collaboration. DeepMind’s AlphaFold is a really good example of that. Demis Hassabis has publicly said that one of the drivers at DeepMind is AI that could win a Nobel prize, so he has already set the bar for an ARIA.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much. And Professor Dame Anne Glover?

Professor Glover: You were asking if the UK’s ARPA or ARIA should have a single purpose, or focus, and in terms of subject area, I would argue not, because you do not know where the good ideas are coming from. It would be really valuable to have quite a wide and informed debate from a very broad spectrum of interests as to where the calls should come from regarding ARIA. Therefore, when they are looking for a call for research, what are the big areas? In a way, this is quite similar to looking at the grand challenges, which Tabitha has already mentioned.

However, there is an opportunity here in looking at grand challenges, because who decides what those grand challenges are? Voices that are very frequently missing in that debate are citizens’ voices. If I think of some of the big grand challenges—certainly a number of those were funded at the European Commission—often they would be narrowed down, so that there would be three absolutely superb proposals in quite different areas of research, which would have come through the review process. Then it would be a decision about which one we should fund. And that is an ideal time to say to citizens, “What is it that you’re interested in?”

Of course that makes the research very relevant; it would tend to make it translatable into the economy, the life/wellbeing environment and so on; it also then has a substantial buy-in from citizens. That is not unimportant, because at the moment we are enjoying a big buy-in from citizens around science, as they see the relevance of what funding science over a period of years actually does, in being able to deliver us—in this case—from a pandemic, and of course there is climate change there, as well. So that is important.

The focus of the purpose needs to be crystal clear, so that there is no confusion with other funding agencies. That would just lead to mini-chaos, or things falling through the gaps and being shuffled around, which is not at all helpful.

The last thing I would say in this context is that there is an opportunity to look at how you fund. For perhaps quite understandable reasons, current research funding is quite formulaic; it is box-ticking to get the funding. What sort of projects will be funded? Normally, low risk. There is an opportunity to look at high risk, high reward. I would hope that the leadership of ARIA considered that, to fund things that are really innovative, you yourself have to be innovative. We will need to think and be imaginative about how you go about sourcing and funding projects, so that we do not just get a modified version of what we are currently seeing, but can fund in a way that is more bespoke. By doing that, we are opening up what I hope would be exciting possibilities.

Chi Onwurah Portrait Chi Onwurah
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Q Just to follow up with two brief questions. The points you raise, though different, have raised similar questions in me. First, in terms of deciding what areas of research and challenges should be addressed, what if we rely on the leadership, as you suggest, Professor Dame Anne? What ARIA seems to support is what I would call the “big man” model of research: choose five or six great men—generally, they are men—and give them the freedom to be geniuses and to choose what they want to research, to have, as Dominic Cummings says, “extreme freedom”.

Ms Goldstaub, you say that AI is changing how research happens, and also the scale, I would say. Is it possible that we can find five or six great people who know all the different potential areas of research, who can make these kinds of choices on behalf of the British people, using public money, and can integrate the changing nature of research, while at the same time being innovative and having, we would hope, diversity of thought and hopefully also of gender, region, discipline, etc? Is it possible to find five or six people like that? What elements of the structure of ARIA are important to promote that?

Tabitha Goldstaub: It is totally possible to find those people. I cannot speak across all science, but I definitely feel there is a generation of young, mid-career AI talent that feel they are in a sort of gap—the fuzzy middle, as Andy Hopper calls it. They are asking themselves, “What am I doing? The planet is burning, I don’t want to work at the big banks or the big tech giants.” They want the academic freedom of the universities but they do not want to work alone. They see the financial reward of successful start-ups, but they want to take long-term bets. Generally, they want to make the world a better place.

It is people like that who fit into the mould that we are looking for. I worry also about the lone genius model. We are well beyond individual success being seen like that. This is all about community. One of the things I have heard time and again is that people do not want to be funded as individuals but as groups of people. It is a community that would come together around a programme manager that is really important.

Yes, we have to find four or five of those individuals, but it is the people who work with them who make a huge difference. It is the open science, open data and spirit of openness that will go a long way to finding those people who will culturally fit and enable us to engage well beyond just those five individuals and find the edge-of-the-edge breakthroughs that we really need. I hear people saying, “I have ideas that I just don’t even put forward right now; they are unthinkable, because they are unfundable.” Once people can come together, you start to unlock that, which saves you from this lack of diversity where you are just funding individual after individual and effectively asking people to compete with each other.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you. Professor Dame Anne?

Professor Glover: Just for easiness, can I ask Committee members to just call me Anne? Otherwise it is a bit of a mouthful.

On the idea of five or six individuals, I would caution on that slightly. I am partly bought into the idea, but if you are identifying five or six individuals, you have already pinned your colours to the mast in what you want. You have already prejudged the areas you want to work in or the ideas that you are interested in.

Where the five or six people might be really important to identify is for the running of ARIA itself. Whether it is the overall director of ARIA or the research leaders in the different themes that might be funded in ARIA, they will be key people and they need to be credible, trusted, very effective at communication and really open-minded. In my view, a large part of the success of ARIA will come from having quite inspirational leaders throughout.

In terms of how you fund and who it is that you are funding, I would go back to what I was alluding to earlier. There needs to be a big conversation about this. There are often older men who have got a reputation in research, so they are naturally the ones we go to, but as I know from bitter experience, as you get older, sometimes your thinking closes off in particular areas and you are less open to ideas. I am thinking of Professor Donald Braben, whose comments the Committee would probably be very interested in. He set up a venture research unit in BP, back in the ’90s I think, and has written several books about this kind of blue skies research area.

What Braben said is that we should look for “irreverent researchers and liberated universities”. Do not look for people who have a research area that we think is really important and we must go there. Debate widely among researchers, of course, but also Government Departments, devolved Administrations, foresighters, businesses, citizens. Let us imagine the future. ARIA could be the stepping stone, if you like, to inventing that imagined future. For a future to exist, you have to imagine it in the first place and you have to convert it into what you would like. There are lots of different ways of doing that. With inspirational leadership, you can move towards that. You can probably increase dramatically your chance of getting it right by having an irreverence around what you do, and not the usual measures of success.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Thank you to our great witnesses. I have one question for both witnesses. What is the importance of giving ARIA independence from Government and Ministers, compared with other parts of the R&D system?

Professor Glover: I would argue that there is huge value in that. Obviously, the funding is coming from Government, but by giving it freedom from Government you might also be giving it the freedom to fail in many ways, and that is exceptionally important. If it is seen as very close to Government—whichever Government is in power—it potentially becomes a bit like a political football, either in what is being funded or in the direction suggested for where ARIA funding should go.

If there are notable failures of funding, which you would expect if it were a high-risk, high-reward funding agency, political opponents will also say, “Well, look, this is a complete disaster under your custodianship. Here are all the failures.” You just want it to be separate from that. It is also part of trying to embrace the unthinkable, if you like, in terms of the research we do and the areas we go into. Necessarily, those will sometimes be difficult areas, and not ones that you should expose Government to either. In the spirit of opening everything up, I would say that keeping that independence is extremely valuable.

Tabitha Goldstaub: I totally agree with what Anne just said—I would have said exactly the same thing. I think that the separateness and independence are really vital to the success of ARIA. The only thing that I would really think about adding here is how important it is that ARIA does have a relationship with Government, because it will need to have many customers, both private sector and public sector. The programme managers will need to create those bonds with central Government Departments individually.

I think that a commitment from Government to remain independent but to become good customers is very important. The health and transport sectors are good examples of where that might work. What is different is that a surprising number of these next big scientific fields, and these next big breakthroughs, such as artificial intelligence, are going to depend on systemic transformation, where you cannot separate the technology from the policy and regulation.

So yes, ARIA has to be independent, but it also needs to ensure that it works really closely with central Government and with regional and local government. Local government spends about £1 billion on procurement, and cities are key investors in infrastructure, so finding a good link with local government, as well as with central Government, is important. This will hopefully end up creating, as Anne suggested, a way that people feel part of this. Regional strengths deliver benefits to actual localities. Even if it is within the next 10, 15 or 20 years, it is really important that government feels part of that, even though ARIA is independent.

Stephen Flynn Portrait Stephen Flynn
- Hansard - - - Excerpts

Q Thank you, Tabitha and Anne, for your detailed responses so far. I have a couple of points, if I may. I think it is safe to say that you seem broadly in favour of ARIA, and you think it will perhaps fill a void. In terms of the resources that ARIA will have, we heard earlier today about the benefits of being a small, agile agency, and £800 million is being allocated. Do you feel that is sufficient for ARIA to meet its needs?

On independence from Government, from looking at your bio, Anne, I can see that you have worked for a few public agencies. If ARIA does not have the public contract regulations and freedom of information in place, will that free it to do what it needs to do? Should we see that as a positive as opposed to a check imbalance, given that we are referring to public money?

Professor Glover: I will deal with that point first—it is an exceptionally interesting point. Initially, when I saw that it might not be subject to FOI, I was thinking, “What are the pros and cons of that?” There is one thing that needs to be fundamental in ARIA, and that is an openness and transparency about what it is funding and why, and how it is doing it. For most things—UKRI would be similar to this—what you provide information on obviously cannot be something that would break the General Data Protection Regulation or that would be commercially sensitive. That should hold exactly true for ARIA as well.

There needs to be some thinking around the whole aspect of openness and transparency, because that brings along with it trust and engagement. If there were any suggestion that Government funding was going into ARIA and it was being syphoned off into particular areas, and we could not find out what those areas were, there would be nervousness. People would, quite rightly, object to that, so there would have to be some greater thought given to how the agency is able to be open and transparent. It might be writing its own rulebook in that area, about what it will provide information on and what it should not.

On whether £800 million is enough, you are asking a scientist and a researcher here, so no, it is never going to be enough, but we have to start somewhere. I cannot make a direct comparison with DARPA’s funding, which is about $3.5 billion or $4 billion per annum, but I might be a bit out of date on that. It does not seem unreasonable to me to start at that level of funding and to start off on the journey to see what is and is not working, where there is greater demand and where you might need more funding to meet it. What you would want to see is that this was such a success that there was substantial demand for funding.

On the other hand, you do not want to get into the situation that standard research funding has—I have certainly visited it many times during its lifetime—where you are putting in 10 research proposals to get one funded. That is an enormous waste of everybody’s time, including the agency that is funding the research. There needs to be a balance between how much money is available and what you hope to do with it.

The last thing I would say is that how that funding is apportioned needs to be carefully thought out, because there needs to be some security of funding. Traditionally in the UK, we have normally had three-year tranches of funding. Long before the end of the three years you have to try to think about how you get continuation of funding. You might hope that ARIA could look at a different model of funding, which might span different timescales depending on what the nature of the project was.

Many projects, particularly ones that are quite disruptive in thinking, will not deliver in a short period—two or three years—of time. Some could do, but some will not, so there needs to be that security of funding over different annual budgets to allow the investment over a period of time.

Tabitha Goldstaub: I will start with the amount of funding. I see the £800 million as just a start. I think that £800 million is sufficient as long as ARIA works in partnership with Government Departments, the private sector and other grant makers. ARIA should not be restricted in matching or exceeding the Government funding with funding from the private sector. There are people in the community that I have spoken to who think that for true intellectual and financial freedom, ARIA should be able to more than double the Government funding. It was good to see in the Bill that the potential for ARIA to take equity stakes in companies and start-ups in a venture fashion could lead to increasing that part over time and making more funding decisions. I see the £800 million as really just a starting point.

On freedom of information, I agree with Anne that openness is key. Transparency fosters trust, and I do not think there is any need to stop freedom of information. We need to keep freedom of information to help with the efforts for connectivity. If the community are going to feel part of ARIA and will it to do good things, they need to be able to use freedom of information. I cannot see any argument against this for the administration costs. Earlier this morning, we heard Ottoline Leyser say that UKRI gets 30 requests a month. If ARIA is 1% of the budget of UKRI, perhaps it could get 1% of the requests, which would be fewer than four a year. I cannot see it, for that reason.

The other reason why there is a desire for secrecy and no FOI is that people traditionally are not comfortable to innovate and fast fail in the open, but that is changing. DeepMind has teams. I have spoken to Sarah Hunter, who is at Google’s moonshot factory, X. She explained how they started in secret and everything felt so appealing, to protect people from any feeling of failure, but what they learned is that there are so many other much better ways than secrecy to incentivise people and to give them the freedom to fail. Actually, allowing for more transparency builds much more trust and encourages more collaboration and, therefore, better breakthroughs.

Anne has spoken about the community. I definitely will speak again about the community, but in addition to the community engagement, ARIA will need to have a press department and media engagement teams that are separate from BEIS, separate from the grid and separate from the Government, to enable it to be agile in its communication and foster a two-way conversation. In order to answer your question, I really think this is the key point: openness and transparency create more trust and more breakthroughs.

Stephen Flynn Portrait Stephen Flynn
- Hansard - - - Excerpts

That is really helpful. Thank you, both.

Stephen Metcalfe Portrait Stephen Metcalfe
- Hansard - - - Excerpts

Q Good afternoon and thank you for joining us and for your excellent contribution. Anne, you made a very interesting point about the independence of ARIA, to avoid it being used potentially as pointing at political failure. If you are investing in high-risk, high-reward research, there will be failure—that is undoubtedly true. May we ask for your advice on how we should measure the metrics of an ARIA over the early years, before potentially there is any output that has demonstrated a transformational benefit to society? On top of that, could you give us some advice on advising project managers on how they should go about selecting projects to explore? Should it be just on the basis of interesting science, or should there be a vision of the commercialisation of that science at the end, to motivate them? We are only going to be able to fund a certain number of projects, and presumably applications will outstrip the funding fairly quickly.

Professor Glover: How we measure success in the early years is a very important question. I am not going to give you an exact answer, but what I might say is that maybe we should not try. That would be unusual, wouldn’t it? That is what I meant earlier about not just following the formula of, “You need to tick these boxes to demonstrate success.” Of course, you would hope that whoever is leading ARIA would have an idea of how you are developing the innovation ecosystem that will be supported by ARIA. They might have some ideas about numbers of applications, where they are coming from, and having a good look at and analysing that, and looking at the amount of interdisciplinary or multidisciplinary research that comes forward. That is always quite hard to fund. Historically, when I have been involved in such things, interdisciplinary research tends to get kicked around different agencies: “This is more for you.” “No, this is more for you.” Everybody is worried about their budget and thinks, “If you fund it, we won’t have to fund this from our budget.” Thinking about the number of applications that could come from a broad range of different disciplines—that would be good. I am not answering your question directly. I am just saying that it is very easy to say, “Let’s have a way of measuring success,” but sometimes that can be stifling.

It is a bit like—perhaps not in the years timescale of ARIA—how it is around the time of year when we plant seeds in our garden or wherever. If you want to measure how well a seed is germinating, if you keep pulling it up and having a look at it you are really going to set it back, so sometimes you just need to think, “I’m hoping that in four or five months’ time this is going to be a broad bean plant with broad beans on it. I just need to wait and see.” I know that that is difficult to do.

The second thing you asked is about commercialisation. I cannot for the life of me remember who said this, but someone once said that there are two types of research: applied research and research not yet applied. That is quite true. There might be some areas where you think that there is a very easy market for this, but if we look back and learn from experience we find that an awful lot of research has been developed. The whole area of medical diagnostics, for example, was pure research. There was no commercialisation; it was just a fundamental biological problem that was being investigated. Some of the outcomes of that research led to molecules called monoclonal antibodies. It is quite a beautiful specific diagnostic—supremely sensitive—that can pick out particular molecules of interest that might tell you if you have a particular disease or have been exposed to a particular compound or whatever.

In renewable energy or an area around that, you might understand that there will be a lot of potential commercial partners and opportunities. In some other areas, perhaps not. This might be an opportunity to think about what the relationships would be like between ARIA and existing research funding, because it might be part of an ecosystem. I would hope that there were distinct roles for UKRI and ARIA but very good communication between the two, as well as very many other stakeholders, in order to identify areas that might not be suitable for UKRI funding but that might have a strong commercial or development potential that ARIA would be much more adept at supporting.

Sarah Owen Portrait Sarah Owen (Luton North) (Lab)
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Q It is a pleasure to serve under your chairmanship, Mrs Cummins. Anne, you talked about citizen buy-in. That would take an element of trust, so my two questions are around that. What could or would good transparency look like without stifling innovation, in both of your opinions? Secondly, if we do not have FOIs and we do not know precisely how this will be reported to us, do we need an ethical baseline to ensure that we are spending public money on the greater good?

Professor Glover: On the citizen buy-in, I think that would be reasonable to consider achieving. I do not think that it would be insurmountably difficult in many ways. If I give you the example of some of the grand challenges that were funded at European Commission level, it was getting down to three brilliant projects. Which one will we fund? If the European Commission made the decision about which one was going to be funded, inevitably different member states would complain: “Why is that getting funded in that member state? This other project was just as good.”

All sorts of problems can arise. Whereas, if you asked European Union citizens which one they would like to be funded, they would say what matters most to them. That is quite an interesting insight into the mind of the European citizen, or it would have been, in that particular instance.

I do not think you are in any way betraying confidences; you are talking about whether it is a project looking at delivering limitless amounts of sustainable energy, or a project in mapping the functioning of the human brain, so that you might be able to exploit that in other ways. You are not saying how you are going to do those things; you are not revealing confidences or information that would be inappropriate or undermining of those doing the research. I think we might be worrying needlessly about that.

As to the ethical baseline, of course this has to be ethical. Tabitha and I are probably agreeing too much with each other, or perhaps we are going back to the same thing. If you are not open and transparent, you will have problems. That is just not rocket science. For example, there are many agencies that are not part of Government but that might receive governmental funding. Scotland’s National Academy, the Royal Society of Edinburgh, is one of those. We are completely independent from Government. We get funding from the Scottish Funding Council, which gets its money from Government. We are not subject to FOI requests but we voluntarily behave as if we are. If we did not do that, people would say, “They’re being directed by Government, so the reports that come out of the RSE will be influenced by Government.”

If we say, “This is how we approach it,” and if somebody comes to us and asks for information, we behave as if it were an FOI. It has never been too onerous. The only onerous time for me with FOI requests was when I was chief scientific adviser to the President of the European Commission, when it became unrealistic, because I had such a small team and there was such a lot of FOI requests. Generally, that is the direction we should be moving in. You do not want to hobble a new agency by making it seem that any aspect of it is secretive. To be able to demonstrate ethical compliance, you need that transparency.

Tabitha Goldstaub: Ethical transparency is key, but we also have an opportunity with ARIA to set a robust, rigorous ethical review process that is fit for the AI era. We do not currently have that.

There has been a tremendous amount of attention on the public-facing ethical principles and frameworks for assessing AI products, but relatively little on the frameworks and practices for assessing research, or how to launch and manage a data science and AI ethics review board, in any way that would cut across disciplines, organisational, institutional or national boundaries, as ARIA would need to.

If ARIA can work with others, such as the Health Foundation, which is in collaboration with the Ada Lovelace Institute, or the Alan Turing Institute, on this problem, ARIA could achieve its mission responsibly, become a beacon for other ARPA-like programmes, and tolerate failure much more safely; because ultimately we need to break new ground and to do so with an ethics review, specifically with research that has anything to do with artificial intelligence. It would enable us to set real international standards, if we can get that right. It is both a risk and a huge opportunity for ARIA.

None Portrait The Chair
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Virginia Crosbie. I am afraid this will have to be the last, very quick question.

Virginia Crosbie Portrait Virginia Crosbie (Ynys Môn) (Con)
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Q Thank you, Chair. It is a pleasure to serve on this Committee. I, too, thank the panel. Tabitha, it is lovely to see you again. You are an inspiration to so many, especially women. My question relates to both your expertise and experience in encouraging the next generation of visionary innovators. What do you see as ARIA’s role in future-proofing the next generation? In Anne’s words, they are the future generation of irreverent researchers. How can we ensure that that is spread equally across the four nations of the UK?

Tabitha Goldstaub: Anne made it so clear that it has to be about engaging with citizens—directly with citizen scientists, but also with citizens who do not care about this yet; we have a real opportunity to excite them. A lot of people say it is really hard, but my answer to that is that it cannot be harder than protein folding. Ultimately, the big challenge for ARIA is to engage with those citizens.

Professor Glover: Briefly, of course I agree with that, but the biggest challenge might be—this will help in engaging with citizens—being up front right at the very beginning that we expect failure, and that failure is part of the measure of success for an agency like ARIA, because if you were not taking any risks, you would not get any failure. The challenge is that, culturally in the UK, and quite differently, I think, from North America, we see failure through an emotional lens, not a scientific lens, whereas I think the opposite is the case in North America. We need to think about that. In a way, just talking about it and saying that that is the case makes it easier for people to understand that we need to fail in order to get the big rewards.

Tabitha Goldstaub: I have heard Anne say in the past—

None Portrait The Chair
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Order. I am really sorry, but I am afraid that that brings us to the end of the time allocated for the Committee to ask questions of this panel. I thank the witnesses on behalf of the Committee for their evidence.

Tabitha Goldstaub: Thank you. Good luck.

Examination of Witnesses

Adrian Smith, Felicity Burch and Professor Sir Jim McDonald gave evidence.

15:46
None Portrait The Chair
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Q We will now hear oral evidence from our fifth panel of witnesses, which comprises Adrian Smith, president of the Royal Society; Felicity Burch, director of innovation and digital at the Confederation of British Industry; and Professor Sir Jim McDonald, president of the Royal Academy of Engineering. We have until 4.30 pm. I would be grateful if the witnesses please introduced themselves for the record. I believe we are waiting for Professor Sir Jim McDonald to appear.

Adrian Smith: I am Adrian Smith, president of the Royal Society, and I have a day job as director and chief executive of the Alan Turing Institute, the national institute for artificial intelligence and data science.

Felicity Burch: I am Felicity Burch, director of innovation and digital policy at the CBI.

None Portrait The Chair
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Thank you very much. I think we are still trying to get Professor Sir Jim McDonald online. We will start off with Chi Onwurah, our shadow Minister.

Chi Onwurah Portrait Chi Onwurah
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Q As my first question was for both the Royal Society and the Royal Academy of Engineers, I will start with a question to Ms Burch. Neither the ARIA Bill nor the explanatory notes refer to private sector investment. Is that an issue, and is it possible for ARIA to achieve its mission without engaging with the private sector? Can you suggest improvements to the Bill or its context in order to ensure that that happens?

Felicity Burch: That is a really important question. It is definitely the view of the business community that ARIA needs to be designed with the business community and the private sector in mind. When we think about some of the challenges that we are trying to solve in the UK, as well as the science superpower ambition and the goal of spending 2.4% of GDP on R&D, we will not hit any of those targets unless businesses are involved and engaged. The design of ARIA will be quite important to whether it will work for businesses or not.

The wording of the Bill is less important than the design and make-up of who is involved in ARIA and in thinking about what challenges the institution is trying to solve. Thinking about the individuals for a moment, we would very much like to see industry represented alongside the science base. Thinking about the design of it, we would be making sure that we do not focus too much on whether we are looking at basic or applied research or commercialisation, but flipping that on its head and thinking about what market problem we are trying to solve, who the end customer is, and then working back and thinking about who you need to engage along the way.

Chi Onwurah Portrait Chi Onwurah
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Q Just to come back briefly, you have made an important point that echoes some of what we have heard already today. In terms of setting out a mission, or where ARIA should be looking, do you feel that more direction needs to come from Government or from public engagement, or should that be left more generally to the executives? As to ensuring private sector engagement, we echo the Government’s ambition to reach 2.4% of GDP spend on R&D; indeed, Labour wants us to go from the average to the excellent, and reach 3%. The private sector is integral to that, so perhaps there could be a little more detail on how to ensure the new agency supports that ambition.

Felicity Burch: Definitely. It is great to hear an even bolder ambition for R&D investment. I am sure the majority of the business community would support that as well.

Thinking about the role that ARIA can play, particularly in the role of missions, what is really exciting about a mission, a problem statement or a challenge is that it not only does gives an opportunity to bring together cross-sectoral players—we just heard about the role that AI and biotechnology can play when you combine them, and having a really clear mission helps to bring together those cross-sectoral players—but it also helps to advertise what you are doing.

One of the really exciting things for me about ARIA is that it is a big play—a big investment—that the UK is saying we are now making in science and innovation: “This is a change in the way that we are doing things, and this is the problem that we are trying to solve.” I do not think it matters, necessarily, if that problem is defined now or by the challenge director, but we need to think quite carefully about what the problem or challenge might be, and about some of the criteria that sit around that.

For me, there are probably two things that stand out as vital. The first is the sense of a market for a product at the end. One of the strengths of ARPA and DARPA in particular in the US is that customer relationship and an end customer saying, “This is the challenge that we need to solve, and probably we will buy it in the end if you do that really well.” The other thing that we want to think about is what challenges we need to solve as a society. What are the really thorny issues, where we know we need some game-changing steps forward in technology and where potentially Government can play a big role and have a big lever? A couple of areas that stand out in conversations with businesses are things like net zero and health, where clearly we have some big commitments that we want to reach as well.

Chi Onwurah Portrait Chi Onwurah
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Q Thank you very much, those are excellent answers. I see that we have been joined by Professor Sir Jim McDonald, so before my next question I want to welcome all three witnesses and say how much we appreciate your joining us this afternoon.

For Adrian Smith and Professor Sir Jim McDonald: we have, very recently indeed, achieved some clarity on this year’s science budget. I know that that was a matter of concern for both the Royal Society and the Royal Academy of Engineering. There has certainly been a sense, and I wonder whether you would echo that sense, that we need long-term funding certainty—that it helps in the support of science and research more generally. Where do you see ARIA sitting in providing that long-term funding certainty, and how do you feel it can or should fit into the wider research environment? I will first ask Adrian Smith, please. It is nice to see you.

Adrian Smith: Thank you. Going back to the allusion to recent uncertainty about next year’s funding and where the Horizon Europe fee would come from, I stress that we need a coherent narrative and plan, not chopping and changing, and creating uncertainty. Uncertainty is bad, both within the community and for those who have to plan in the UK, but also for what we hope and assume will be our narrative of the UK being a global science and innovation player. Clarity of narrative and sticking to the plan is fundamental.

Where does ARIA fit? The starting point that most have accepted and signed up to is that having a new kid on the block in the high-risk and high-reward long-term space is welcome. Even though we have a plethora of agencies in the current ecosystem, there is nothing that sets out defines itself in that way. However, if this is to work, there are a number of things still to be clarified. I will mention a few, and Jim can pick up on this. ARIA has to have operational independence, if we are in the high-risk and long-term space, but it also has to have high focus. If we are aiming for £22 billion by 2024-25, £800 million is not a large sum of money, so if we have a plethora of missions, then I think we will go wrong. ARIA has to have focus of mission and a commitment to the model over the long-term, but also, and fundamentally, leadership.

This is an incredibly difficult agency, given the multiple stakeholders out there, and it will only work if it has the image and the street cred to attract and retain talent. I welcome the addition to the landscape. We need long-term commitment, but the recent experience of uncertainty about next year’s funding, the chopping and changing, and the lack of clarity about Horizon, would not bode well for this. We need absolute clarity on the plan and how this is going to fit into that.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much. Professor Sir Jim McDonald?

Professor McDonald: Just to echo what Adrian has been saying, I welcome Felicity highlighting net zero and health. The additional funding is absolutely welcome. As you have pointed out, there was great concern about the uncertainty around the funding generally. The Government’s commitment to making the UK a science, engineering and innovation superpower is exciting. It is built on what is a genuinely world-class research base here in the UK, but of course traditionally we have not done the D in research and development terribly well, so ARIA coming forward to fit into the landscape is key.

To Adrian’s point on longevity, it would be good to get a planning horizon that was long—10 years de minimis and hopefully even longer, because many of the technological developments that come through these accelerated high-risk, high-reward programmes can take decades to come to fruition. Felicity mentioned the concept of a customer, and I could not agree more. The customer might be a Government Department but, for this acceleration of technology for solving challenges of scale at pace, we would increasingly need to see agencies, companies and industry sectors that can take these technological advances into practice. Late-stage R&D, which costs a lot of money, would be counter-productive. In fact, it would be even more damaging if we start the journey to have this innovation acceleration, this high-risk, high-reward agency, only to discard it within a few short years. I think that would damage business confidence, and we would also miss out on the opportunity to get the translational ability to feed out from the UK’s great research base to create new technologies.

Of course, there are a number of schemes that are suggested—Felicity touched on them—and there is the exciting legal commitment that the UK Government have made to net zero. There is an economy and opportunities to build around that. Healthtech, and the whole piece around global health and how we deal with that, is another great opportunity for the UK to mark out its capability.

ARIA should fit and integrate within the existing landscape. It should be a disruptive innovator, but it should not necessarily damage the existing system, much of which is working well, but there are gaps that ARIA can hopefully fill in the coming years.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Can I follow up briefly with Adrian and Sir Jim? Thank you very much for your responses—[Interruption.]

None Portrait The Chair
- Hansard -

Order. The sitting is now suspended. I shall resume the Chair at 4.9 pm. I apologise to the witnesses; it is how this place works. If you can just hang on, we will see you in 10 minutes.

16:00
Sitting suspended for a Division in the House.
16:10
On resuming—
None Portrait The Chair
- Hansard -

This session will now be slightly extended, for another 10 minutes. It should finish at 4.40 pm. We will start where we left off, with shadow Minister Onwurah.

Chi Onwurah Portrait Chi Onwurah
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Q Thank you very much, Mrs Cummins. I shall endeavour to restart the exact sentence I was saying. It is noticeable that, while the Bill provides a minimum length of time for ARIA’s existence of 10 years, there seems to be no provision for a minimum length of time for funding. Those research scientists who have recently lost their funding at very short notice because of cuts to the overseas development aid budget may not feel reassured by that.

I have three very specific questions. Adrian represents the Royal Society; Jim represents the Royal Academy of Engineering. We have had some discussion about whether ARIA should be looking at blue-skies research or transformational translation. I assume that you both think it should do both. Or maybe not—will you let us know?

Secondly, the Bill makes provision for public sector R&D funding to be spent by ARIA internationally. I understand that there might need to be collaboration —collaboration drives research—between UK and international bodies, but do you think it would be appropriate for ARIA to fund exclusively international research programmes?

Thirdly, do you think the UK should get some kind of tangible return from this level of investment in high-risk, high-reward research?

Adrian Smith: The answer is both, of course. If there were no research element, it would be something we completely understood and all that was left would be to deploy it, in which case this does not seem to be the right kind of agency to do it. I think it starts off with a substantial element of R, but that is perhaps pointless if it does not end up with the D.

Internationally, it is hard to think of anything really, at scale—even if it were only in terms of being a magnet for global talent of one sort or another, an international dimension is almost inevitable and appropriate, but if it were all offshored, that would make nonsense of the agency.

I have now forgotten what your third question was.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Should the UK get a return on this investment?

Adrian Smith: High risk, high return is the mantra, isn’t it? So I think an expectation of substantial transformational return is implicit.

Professor McDonald: First and foremost, ARIA should be a funding mechanism that delivers innovative solutions to ambitious, real-world challenges, bringing together and developing breakthrough research and technology. It is worthwhile reiterating that. Of course, that has to be driven by substantial funding. The flexibility—I am sure we will come back to this—the independence and autonomy for this agency are going to be fundamental to its success.

Adrian has mentioned skills a few times. I absolutely agree with that. While the fundamental research is not viewed as the primary focus of ARIA, it should be keying into a rich base to draw from in the UK research base. Of course, there is an opportunity here for international collaboration as we drive development towards application. However, it is not unreasonable to imagine that ARIA could commission basic research work that emerged as it sought to solve some of these major challenges.

The international connectivity is important, even at the highest level. Telling the world about our ambitions around being a science superpower and trying to become one of the world’s most innovative nations is not something that we should keep to ourselves. We should be promoting that, showing confidence in the UK that we are building on our outstanding research base but we now have another mechanism through which we can drive technologies, find solutions and indeed build economies. So I echo Adrian’s point: this could be a great magnet for talent into the UK and those excellent international individuals who want to come here, some of them pursuing research but many of them also engaging in that exploitation, in that high-risk, high-reward programme. So I would encourage international connectivity, but, speaking as an engineer, I would like to see good outcomes that impact on the economy positively, build industry, support the creation of supply chains, support indigenous supply chains and create new ones around new technologies, whether in net zero, health tech or AI, to build an industry through which we can drive the economy to keep that virtuous circle of driving economic strength so that we continue to invest in science, research and innovation. There is a circularity here, and I would suggest that we do not fragment and see these things in a systems perspective—that is what engineers will propose in any case—but see ARIA as part of a larger system. But driving that through to economic and societal benefits is key for me.

Chi Onwurah Portrait Chi Onwurah
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Thank you very much for your answers.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Welcome to the witnesses—it is lovely to see you this afternoon. I have two questions that are relevant to all three of you, please. Given that we know how important ARIA is to the UK economy, what importance do you put on patience when we think about funding high-risk transformational research? How necessary is it that we have a long-term view?

Felicity Burch: As I know you are aware, I think having a long-term approach to funding R&D matters hugely. From the perspective of the business community, having institutions that are in it for the long run that they know they can come back to and that they are aware exist is really important for their own confidence to invest.

Thinking about the agency slightly more specifically, when it comes to its own patience, one of the things that CBI members have highlighted to me as a particular benefit of the DARPA model is the commitment to funding their programmes for significant periods of time. For example, there might be 10-year funding with three-year gates to check if the project is working. Those commitments, with that 10-year view—so long as everything is going more or less according to plan—is hugely important for bringing business funding alongside that. So if we can bake a long-term view and patience into ARIA from the start, it will certainly help it to be successful.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Thank you. Sir Jim?

Professor McDonald: It is nice to see you, Minister. There is a requirement here to have a significant cultural change—that is embedded in your question—to move away from the value-for-money concept that is deeply embedded in the UK Research and Innovation funding structure. That is important, but of course we would need to innovate the funding model, which is what is being sought here. Value-for-money assessments for disruptive innovation may not be assessed, as you indicated, until decades later, so we will need a longer-term outlook or alternative approaches to assessing value, such as a means of building capability and capacity in both technology and skills.

Of course, projects that were deemed unsuccessful in achieving their goal may produce value in terms of people, skills and lessons learned, so we must take a long-term view. I think we see that notion of patience, but it is about the ability to have that highly driven, focused approach that the executive officers and the board of ARIA will take and—we may come on to this—the ability to fail fast and elegantly and not be punished for failure as long as the process has been driven openly, transparently and with excellence underneath it.

I would say, absolutely long-term vision and drive forward. If everything worked and everything was successful, we should challenge ourselves and think maybe the questions were not quite as challenging as we thought they might be. Failure is not something we should be discouraging—it is about risk and collaborative approaches to driving problems to a solution—but long-term vision is absolutely essential. That is why, as you have heard from Adrian and Felicity, that patience and that long-term view is key. It should become a very natural part of the UK landscape, so that it is something that we boast about and that acts as an attractor for business and investment, and to attract and retain talent.

Adrian Smith: Let me echo everything that Jim said. The scale of mission that we would hope to see from such an agency means that the timescales will be long and we will need to build new research capability over those timescales, in so far as we are interacting with technologies, and perhaps new supply chains. If those are to come out of the woodwork, they need to believe that we are in it for the long term and that there is patience on the part of the funders and others. The timescales are really important, not just in terms of if it is a hard problem, it will take a long term to solve; if it is a hard problem, we will need to build all sorts of new capabilities and capacities. To have the courage to invest in those, we need to know we are in it for the long term.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Thank you. Sticking with you, Sir Adrian, I was thinking that we have heard an awful lot about the importance of ARIA recruiting people from a variety of backgrounds. I wonder how we attract the best people, from industry in particular.

Adrian Smith: Is that a question for me? It is probably a better question for Felicity. Going back to the earlier comments, a fundamental is to trust long-term commitment from the Government that we are really in this, and we have a plan with clear funding milestones and we will stick to that plan. That is what will give the international community the message that we are in it to be really serious. That serves two purposes: for the narrative of the UK, and as an attractor for brilliant people, whether they are in research or industry around the world, to come and join in this long-term challenge.

Professor McDonald: How do we attract them? The scale of the ambition will be a major attractor to someone, with that executive excitement and experience that they will bring. Large-scale ambition and, as we said earlier, a commitment to the long term to making this work for the UK, in that it is a long-term integrated approach. I suggest that the CEO would have to have experience beyond academia; preferably, as you have suggested, Minister, including industrial experience—that ability to take the journey from concept through to proof of concept, demonstration at scale and deployment. Ultimately, commercial exploitation is key.

I can assure you that the engineering community will be well engaged with this as we help to bring forward individuals of the right stature. Industry expertise and understanding should be a prerequisite for ARIA personnel. An interesting example, which many of our colleagues in the Committee will be familiar with, is the vaccine taskforce: bringing together industrial expertise—traditionally competitive companies large and small within their supply chain—with Government officials and the National Institute for Health Research. That was a fantastic microcosm of large-scale, high-risk and ultimately high-reward outcomes. In many ways, that gives us a precursor for some of the approaches and cultural changes that would be needed to take that forward. For the chief executive or chair of the board, it would be great to have industry-relevant background, a commitment to innovation and excitement about the scale and potential impact of the work that they are taking on.

Felicity Burch: I listened to a number of the earlier sessions, and I was delighted to hear about the focus from so many stakeholders on the need to build a diverse team within ARIA, but also thinking about the diversity of the community that we engage in it. One of my reflections is that we are trying to build something that looks a bit like US DARPA, but we are 60-plus years on now, and the international, national and social picture is completely different. We have an opportunity to build something that really excites, for the next generation of researchers and business people.

If you look at businesses that are trying to achieve those same goals and the practices they put in place to try to recruit brilliant people, you will see that, first and foremost, purpose really matters. Clearly defining the mission of what ARIA is trying to achieve when we get the team in place, making sure that it is something that excites people, having a clear market, and also solving national and international social problems will help encourage really bright, brilliant people to get involved.

Secondly, it starts with the senior team. We are building this team from scratch, and we need to make sure when the team is being recruited that it is diverse in the broadest sense possible—that we see women, ethnic minorities, and those with disabilities represented on the senior team for ARIA to really send a signal that the way we want to innovate in the UK is diverse and that we want to make the most of all our talents around the country.

Aaron Bell Portrait Aaron Bell
- Hansard - - - Excerpts

Q I thank all three of you for your time today. I have one brief question for Ms Burch and then one for Sir Adrian. In terms of the funding ideas and streams available through ARIA, would the CBI and your members welcome the potential of investments in companies or joint ventures with ARIA?

Felicity Burch: One of the really exciting opportunities from ARIA is the potential for joint ventures and engagement. Essentially, my answer here is pretty short. Go ahead and do it, but make sure you engage with business communities a bit further down the line in exactly the design of how those funding mechanisms might work. Different businesses at different stages of their journey will be interested in different funding mechanisms.

Aaron Bell Portrait Aaron Bell
- Hansard - - - Excerpts

Q Thank you. Sir Adrian, speaking to your professional interest and expertise as a Bayesian statistician, which I share as a layman, how can we use Bayesian statistics to help decide which projects to fund and also when to pull the plug?

Adrian Smith: I was not expecting that question. The problem with the kind of mission that we would like to see in ARIA is probably that there are very few precedents. So where we are going to get our prior information from to deploy my wonderful Bayesian analysis, I am not quite sure. Let me use that to point out something else. It will be very interesting to see how we creep up on a mission and why ARIA would be appropriate for that mission. There are two things that you will all know about and I am involved in. I am on the board of the UK Atomic Energy Authority, and fusion, you could say, is the ultimate mission of all time. The mechanism there is with an authority and long-term Government funding in a different model. Solving the problem of batteries you could say would be an absolute fundamental mission, but there we have set up the Faraday Institution. I suppose the question as we go along is: what makes ARIA the right kind of place for what mission, given that we have lots of missions and lots of other ways of trying to solve them?

Aaron Bell Portrait Aaron Bell
- Hansard - - - Excerpts

Perhaps we need someone with particular expertise in portfolio management as well, because it seems the risk/reward of these missions is so key. I will leave it there.

Stephen Metcalfe Portrait Stephen Metcalfe
- Hansard - - - Excerpts

Q Good afternoon, all. I have a quick question for Felicity. We heard earlier from Dr Highnam from DARPA about the high level of churn among the project managers and that they move between academia, business and, in their case, DARPA and that creates the right culture. Presumably it requires flexibility from the businesses themselves. Do you see your members embracing that kind of secondment into a research body such as ARIA, even though it may not lead to anything?

Felicity Burch: I have not talked to them directly about this in the context of ARIA, but I can reflect on conversations about business and university collaboration more generally. I think our members do see value in seconding people to research teams to learn new skillsets. Likewise, we would love to see more people from university sectors being seconded into businesses. Were there a world-leading agency like ARIA, being able to say, “My people have worked on one of these teams” would be quite a prestigious thing for businesses. I guess the flipside of that is this: how do we make sure that we build ARIA to be that prestigious body that businesses feel comfortable seconding their people to?

I think that time and again we hear businesses saying that that fluidity of people between the business sector, the university sector and the research sector more generally is really important for successful innovation and building an ecosystem. I am sure that if any business pointed to any one individual, they might not want to lose them, but I think this is much more about how we build a really flexible and really brilliant innovation ecosystem, and to that extent I think that businesses would be really happy to see those moves.

Stephen Metcalfe Portrait Stephen Metcalfe
- Hansard - - - Excerpts

Q Have you any advice on how we should approach building such an organisation?

Felicity Burch: In the sense that it would encourage businesses to second people on to ARIA?

Stephen Metcalfe Portrait Stephen Metcalfe
- Hansard - - - Excerpts

Yes. You said that we have to build an ARIA that encourages that kind of collaboration. What is your advice about doing that? Where are the risks and rewards from an employer’s point of view?

Felicity Burch: One of the challenges is making sure that ARIA has its own clear purpose, so that businesses know why they would second people to it. The truth is that we have a lot of other institutions in the research/innovation landscape, as we have already referred to throughout this conversation, and as you have heard from the previous panels today. However, once ARIA is up and running, has a clear mission, and has some really great people on it who you can point to as being leaders in their field and really pushing the boundaries—when you can tell a clear story about what the organisation is set up to do—it will become a lot easier for a business to make the case that, “Yes, it makes sense for me to put a person on there; they are really aligned to what I am doing,” or not.

Daniel Zeichner Portrait Daniel Zeichner
- Hansard - - - Excerpts

Q A few years ago, we were told that there was no magic money tree. That seems to have been parked temporarily, but I fear that it will return at some point. I detect enthusiasm from all of you for this project, but how much is your enthusiasm dependent upon the money being genuinely new and additional in terms of the wider research environment?

I have a second question. Through the day, we have heard from different witnesses mainly a view that there needs to be a mission but also some difference of opinion as to who should set that mission. Who do you think should be setting it? Maybe I can go to Sir Adrian first.

Adrian Smith: In terms of new money or old money, I think the key thing is really to look at the big picture. The aspiration—the 2.4% aspiration—is aiming at the average of the OECD, which has probably crept up now in any case to 2.5%. In the meantime, the United States is around 3% and Israel is around 4.7%. The big picture stuff is the total amount of investment in the R&D landscape. So I think there would be less warm support for this body if it were at the expense of that wider investment.

As for who sets the mission, I think it is an extremely interesting question. There is an interesting tension between what most of us would see, which is that if this agency is to have real street cred, it needs tremendous operational independence, but on the other hand the thinking behind it is that the mission will be of great benefit to the UK. Clearly, therefore, Government and a multitude of stakeholders have an interest in what the mission will be, and how the leadership of the new organisation will satisfy the desire on the part of all those stakeholders to have a finger in the pie of influencing the mission. I think that will be very interesting to see.

Daniel Zeichner Portrait Daniel Zeichner
- Hansard - - - Excerpts

Q That sounds like a gloriously British response to me, but I agree with it. Felicity?

Felicity Burch: Similarly to Adrian’s response, support for this body comes alongside the fact that it is new money, and we need the new money in order to grow the level of R&D in the UK. The level of Government spending on today’s level—obviously, there are longer-term plans, but at today’s level—would not hit the target. I think we do need new money in the system, and it makes sense that ARIA is one of the places to which that money is directed. But we do not want to undermine other institutions, such as UKRI and Innovate UK, and catapults in particular are hugely important to businesses. We do not want to undermine that, and this is definitely about building up a coherent system.

One other thing to note is that we have tried to create something that looks like ARIA quite a few times before. For a long time, there has been a sense that we needed to do something like this. Initially, when what was the Technology Strategy Board was founded, people talked about it looking like a UK version of ARPA. When we established the industrial strategy challenge funds, people also talked about them being a UK version of ARPA. The difference with ARIA is the legislative approach and the creation of an independent body, which means we are genuinely doing something different. This is a really exciting way to leverage some of the Government’s R&D investment. As to who precisely sets the mission, I understand that BEIS would like the ARIA team to do that. There is a lot of sense in that, but they cannot do that in a vacuum; it needs to make sense to a wider science innovation community, and to society in fact. That comes back to the importance of a long-term market and the social issue that we might want to address with ARIA. We will be looking out for it to do those things.

Daniel Zeichner Portrait Daniel Zeichner
- Hansard - - - Excerpts

Sir Jim?

Professor McDonald: Thank you. Coming back directly to the question, this must be new money to enhance the credibility of what is sought to be done. As you know, we said earlier that the UK’s research, science and innovation base is an absolute national asset. We cannot exploit that research base if it is underfunded and not attracting the very best talent with the very best facilities. This has to be additional investment to complement existing funding.

I agree with some of the implicit elements of your question that that investment must sit within the system perspective, so although this will be a new funding model that brings a new type of leadership into the research and innovation landscape, there must be plenty of dialogue between ARIA leadership and UKRI, BEIS and other entities that Adrian mentioned. There might be some competition, which would be healthy, but there may be some articulation in complementarity that will emerge if we are doing the right things. It needs new money and long-term commitment.

As to who should lead this, I buy into the model of greater independence and autonomy. The customer will exert influence; to go back to the comment about the customer being a Government Department or Departments, and industry as well, they will have an influence and try to prioritise where the CEO and the team and board will take the direction of travel for ARIA. I would like to see it exercise independence and autonomy going forward.

This may have been raised earlier, but I think public communication will be critically important. Let us have the public understand why this is important, and give a voice to the science, engineering and innovation community. They should be accountable for ensuring that the idea is understood by the nation. I am not suggesting that the public would be directly involved in the agenda, but that public engagement would raise awareness of what science innovation is all about and turn some of the Government’s superpower commitments into a reality for individuals out there in society.

New money, please, and a long-term commitment, and let us give this entity independence and autonomy but the accountability that sits behind it should respond to our customers’ drive for new technological solutions. That should be done in a way that drives value into the UK economy.

None Portrait The Chair
- Hansard -

Thank you. We will have a very quick sneaky question from the shadow Minister, Chi Onwurah.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you very much. Adrian, I was very interested in what you said about the number of people in organisations who want to influence the terms of the mission. Obviously, if the Government set the mission, they have a democratic mandate. If the CEO or the director sets the mission, how would you suggest that we can test that he or she is not simply being influenced by their pet projects and preferences? What kind of test could we set out?

Adrian Smith: Whoever is chosen to be the chief executive and whoever surrounds that person in governance must be people the rest of us will trust. They will have the stature to be trusted. Without that, I think we are in trouble.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q So you think it is only trust, and there has to be trust in governance?

Adrian Smith: I think it is an essential element. As I said earlier, I think genuinely that whoever is going to lead this and oversee the governance has to think very hard about how you interact with both the hard-nosed stakeholders and, as Jim and others have alluded to, the public, in terms of taking them along with the idea that this is a mission that is ultimately for the good of all of us.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Thank you.

None Portrait The Chair
- Hansard -

Thank you very much. If there are no further questions from Members, then we are dead on time. May I thank the witnesses for their evidence before we move on to the next panel? Thank you very much.

Examination of Witnesses

David Cleevely and Bob Sorrell gave evidence.

16:40
None Portrait The Chair
- Hansard -

Q We will now hear oral evidence from David Cleevely CBE, chair of Focal Point Positioning Ltd and the Cambridge Science Centre, and Dr Bob Sorrell, chair of the Campaign for Science and Engineering. We have half an hour for discussion. Could the witnesses please introduce themselves? Thank you very much; it is lovely to see you both.

David Cleevely: I am David Cleevely. I am a serial entrepreneur with a background in telecoms and biotech. I have done a lot of work on Government policy, been a board member of the Ministry of Defence and founded networking organisations, including the Centre for Science and Policy at the University of Cambridge. I am glad to see that Bob, who helped me get that off the ground in the early days, is on the panel with me. I am currently chair of the Enterprise Committee at the Royal Academy of Engineering and, for my sins, I am chair of the Cambridge Autonomous Metro Technical Advisory Committee.

Bob Sorrell: Good afternoon and thank you for inviting me to the Committee. My name is Bob Sorrell. I am the chair of the Campaign for Science and Engineering, which is the UK’s leading independent advocate for science and engineering. I come into that with quite a lot of experience in research and development, and I also served two terms on the board of Innovate UK, as well as being a non-executive director in a start-up company, so I have a variety of experience.

None Portrait The Chair
- Hansard -

Thank you very much. I will start the questions with Chi Onwurah, the shadow Minister for the Opposition.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Hi, David and Bob. It is great to see you both and thanks for giving your time. I do not know whether you have been able to follow our evidence sessions, but we have had a lot of discussion about the purpose and remit of ARIA and the extent to which it addresses fundamental failings—if there are fundamental failings—in how the UK chooses and commercialises research. I would like to ask you both your opinion on the remit and purpose of ARIA. What is the failing that you see ARIA fixing? How does it need to change to fix that? Are there things that it is not addressing that it needs to? I will start with David Cleevely.

David Cleevely: Thanks, Chi. I would like to start by saying three things rather briefly. First, serendipity does not happen by accident, so we need systems and processes to enable the network diversity and uncovering the unexpected. I am hoping that the new agency will do all of that.

To begin to address some of your other points, we need to improve the whole of the national innovation system. That means not putting in late stage R&D, translation and, in particular—this is something of a bugbear of mine—procurement. If you do not have revenue and if you cannot get product into market, no amount of R&D at the front end will necessarily get you anywhere. If we do not do that, we are always going to be trapped into saying that we need more and more R&D and simultaneously mourning our inability to translate this into economic growth and productivity.

I have one other thing to say, which is slightly cheeky, but I have been listening to the proceedings so far, and they are extremely interesting—it is one of the most interesting sessions I have ever attended. All the examples given of contributions that make a difference have all been, it strikes me, about engineering, so I suggest that we rename this the “Advanced Research and Engineering Agency”. To be honest, “invention” strikes me a bit like something in the 1950s, with somebody emerging from a shed with a gadget that has just blown their hair off. Peter Highnam pointed out “projects”, so we might actually consider it to be the “Advanced Research and Engineering Projects Agency”. No doubt we will get on to why I might say that. The point is that we need to think about this, as Felicity said, in a coherent way, including all the way through to procurement.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q As a chartered engineer, I am always happy to put engineering in anything. The Advanced Research and Engineering Projects Agency would be AREPA. Your point, which has come up a number of times, is whether this is about, if you like, cutting-edge research, or whether it needs to be looking at transformational translation of existing research, or whether it needs to do both. Certainly, the economist Mariana Mazzucato, as you probably heard, made the point that having the basis there is important, and you seem also to be saying that it needs to look at both, and that it needs to get its purpose right. Let me go now to Bob, and then we will come back.

Bob Sorrell: Thank you very much. Picking up on David’s comments and your question, I am very excited about the potential creation of ARIA. Having something that can respond to the types of challenge that we face, which quite frankly do not respect sector or skills boundaries, is really important today. In particular, there are real opportunities to learn off the back of the covid experience, which has allowed us to really accelerate innovation at quite an incredible pace. If we can take some of that and operationalise that within an ARIA-type environment, that would be a very positive thing.

One thing I have heard, because I have also been listening to the sessions through the day, is mention of crossing the valley of death. For me, there needs to be a matching market pull for the wonderful research products that will come out of ARIA. To get that in place would mean having a really good dialogue between academia and industry and all parties involved to understand what those challenges really are. I also suggest, looking at the DARPA model, that we should back this up by having a really strong public procurement model. Again, we have seen that in covid, and we could see it here, providing a first customer and enabling some of these technologies to be developed. That would be really key.

The final thing I will say is about the personnel involved in this, because that has also come up several times. They really need to have autonomy; they need the ability to make the decisions and choices on what projects they pursue. Equally, they need to be able to start and, critically, stop things. I have much more to say, but I will stop there.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Q Thank you for both of those responses. To follow up, you both emphasised the importance of procurement and market pull. It seems to me that there is such a vast range of areas, issues or challenges that ARIA could look at. What are your views on who should decide what it looks at? Is there a need for a mission, and who should that be set by? If it is left to four, five or six individuals to set the missions, how do we ensure that it is not simply about vanity or pet projects, and that cronyism—we are having some challenges with that at the moment—is not promoted? How do we avoid cronyism and support diversity?

David Cleevely: I notice that this came up in the previous session. I think the answer is, in one sense, very straightforward. I think it is for the Government to set the priorities where they feel that there are specific challenges. We have talked about climate change, for example. That is one, and there may be others that one would want to address, either in health or in other topics. That is the point at which the handover occurs and whoever is running ARIA takes that particular domain or challenge. I have been involved, for example, in the Longitude prizegiving, and it was very interesting how we focused down on antimicrobial resistance and testing. A lot of interesting things came out of that. By the way, all the solutions were engineering.

The point is that we should listen to Peter Highnam’s testimony really carefully. Honestly, that was one of the most interesting insights into DARPA that I have had. He talked about the way in which there is autonomy within DARPA to do things within a general area set by Government. Then, within that, there is a peer-review system that enables us to overcome some of the cronyism that you talk about. The more open you are about what you are doing, the less easy it is to hide the fact that you have let particular contracts and so on, so there ought to be a mechanism within the governance structure of the agency to do that.

There is a two-level thing here, but it is up to the Government to decide where the UK’s priorities are. Are we, for example, really concerned about climate change? Can we specify challenges within climate change that will make a difference? In the same way, for defence it was to not be surprised by innovation and to make sure the technology was available for defence in the United States. Within that, DARPA went ahead and looked for things that met that overall goal.

Bob Sorrell: I think there needs to be an overarching structure set for the areas ARIA pursues. In identifying these grand challenges, there is a list that we could reel off right now that would fit the scope. Earlier, I heard conversations about having six wise people who would make these decisions and cover these areas. I worry about that approach. I think you need people who are really up for engaging people to understand the nature of the problems and translating them into meaningful challenges.

The other part that is often missed in this is the social science aspect, because there has to be a level of public acceptance around the things that people are developing on their so-called behalf, and that part is also incredibly important. We need to have a very open process for how we decide on those projects so that we avoid, as you say, falling into the traps of vanity or pet projects. If you have clear criteria from the outset and stick to them, you will be fine in that regard.

Chi Onwurah Portrait Chi Onwurah
- Hansard - - - Excerpts

Thank you. I could ask you lots more questions, but I will stop there and hand over.

None Portrait The Chair
- Hansard -

The next set of questions is from Minister Solloway.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q It is lovely to see our two witnesses this afternoon. The first question is to Bob. You mentioned in your written evidence to the Science and Technology Committee that a body like ARIA will need an understanding of failure. What does a new understanding of failure look like, exactly?

Bob Sorrell: That is a great question. If you compare and contrast us with the Americans, there is a definite culture in the UK that failure is something that you hide under the carpet, put away and forget, but science is all about failure and pushing the boundaries. If you are not failing, you are really not challenging those boundaries. I think it is about establishing a culture in which we can accept failure and move on.

The problem comes, in both industrial and academic environments, in facing that day, because there is a tendency to keep things creeping along because you have invested so much effort to get them to this particular point. You do not want to kill it, because then you have to stop the project, and people feel emotionally involved in it. That creates a whole series of issues associated with it. It is about making the hard decisions and learning from failures. We describe them as failures, but actually they are some of the most valuable learning experiences that we gain, and they stop us reinvesting in making the same mistakes in the same areas if we are really careful about what we extract from them, and do not just try to shut them off in a box, in a rather embarrassed way, and say, “That’s something that we will leave to one side.”

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Thank you very much for that. I have a more general question to both of you. One of the things we have heard a lot about today is the importance of fitting ARIA into a larger innovation system. What advice do you both have about how ARIA can forge the most productive relationships with a range of public and private sectors, for example?

David Cleevely: As well you know, I am very keen on establishing networks of individuals and making sure there is lots of exchange. Part of the essence of putting an agency like this together is to ensure that you get a lot of cross-fertilisation. There should be a great deal of exchange going with that, and you would, of course, have to have in place the conflict of interest and various other peer-review processes.

It is very important that an agency like this would work closely with the private sector. My first encounter with DARPA goes back to 1977. At that point, I was working for Post Office Telecommunications, which shows how long ago it was. We were discussing the idea of funding this funny thing where you cut information up into packets. A lot of the collaboration that was done on all of that involved a great deal of what was then a monopoly, though a commercial entity, helping to fund those things. That kind of stuff is extremely important and needs to be built into the processes by which this agency operates.

Can I just pick up on the notion of failure? There are two kinds of failure. There is the kind of failure that we have seen with SpaceX, where you send a rocket up and you land it and it crashes or burns up after about 12 minutes because it is leaking fuel. That is one kind of failure. Quite honestly, the private sector got involved in replacing NASA because NASA became too cautious about dealing with that kind of thing.

There is another kind of failure where you have picked the wrong technology—the wrong way of approaching a problem. I think we are talking about the second kind, and about recognising how to stop that. That is a peer-review process; that is a way of making sure you do things. What we need to avoid is reacting to failure where the rocket is crashing on touchdown. That is not really failure; that is simply experimentation.

Amanda Solloway Portrait Amanda Solloway
- Hansard - - - Excerpts

Q Thank you, David. Bob, any further thoughts on the relationship and how to engage with public and private sector?

Bob Sorrell: I would say three quick things. First, ensure that there is a real partnership between industry, Government and academia, in actually shaping the agenda for ARIA. I would have flexibility; we heard that earlier, I think, from a colleague from the CBI talking about models in which we could second people into the ARIA organisation. I think there is an opportunity to do that, and we have had experience of doing that previously.

The other thing is that ARIA provides some really important learnings, and it should be able to integrate those back into UKRI, and vice versa. UKRI has some valuable learnings that it can impart to ARIA. This is an evolutionary process through which both parties will definitely benefit, and it should be framed in that light.

None Portrait The Chair
- Hansard -

Thank you, Minister. Daniel Zeichner.

Daniel Zeichner Portrait Daniel Zeichner
- Hansard - - - Excerpts

Q Thank you, Chair. Welcome, both of you; it is good to see you. I have been struck throughout today by the evidence that we have been looking at an American model, trying to learn lessons from it and importing it into what looks to me like a rather different environment and landscape here. I would like both of you to ignore all that we have heard today and answer the question I would ask at the beginning, which is: what is the big problem facing the UK R&D system? Do you think ARIA, as it is presented, can be bent to fit whatever problem it is that you think needs to be solved?

David Cleevely: What is the big problem? The big problem is that we do not have procurement systems that buy enough stuff from small and medium-sized enterprises. Half the employment growth in this country comes from 7% of the SMEs that are fast growing. If you look at a place like Cambridge, as you well know, Daniel, we have 20 $1 billion companies. Companies that have come into existence that were not even a glimmer in somebody’s eye in 2014 and are now about to be floated.

That is the kind of process we need to understand, and why we do not have more of those successes. In particular, if I may blow Cambridge’s trumpet, we need to understand why we have those things happening in Cambridge, and why they are not being replicated elsewhere. From my personal point of view, having sold a company to an American buyer last November, which, as you can imagine, was an interesting experience, it was because it had innovative technology. We were absolutely the best in the world and hardly anybody from the UK bought anything from us. The majority was being bought by Americans—American defence and security stuff.

It is a great disappointment to me that we do not have the ability to nurture and bring on. The way the Americans do it is that they have that complete system. They have an awful lot of money and effort going into procurement. Somebody spoke earlier about the infantilisation of Government Departments, and the way in which that expertise is not there. I will mention engineering again here. We need more engineers in Government, who can take those kinds of decisions and understand what we need to procure to be able to do things. That strikes me as so important. It is not to detract from AREPA, as we might call it, but in order for it to be as functional and effective as possible, we need to look at the entire system.

Bob Sorrell: That was a great answer from David. I will just pick up on a couple of things. I go back to the fundamental issue of matching the research that is coming out of ARIA with the market pull for it. It is important to define what the challenges are up front. The role of public procurement, as David raised, is critical, as is supporting the growth of the so-called Mittelstand—the mid-sized companies—and understanding what is behind the culture that leads to so many of those companies being sold at around the £50 million level, as opposed to growing to the hundreds-of-millions-of-pounds companies that they could be. How do we support them through that whole growth cycle? There is much more that I think we could do in that space.

Daniel Zeichner Portrait Daniel Zeichner
- Hansard - - - Excerpts

Q To summarise slightly—I do not want to become a grim AREPA—what we need is not only an ARIA that can do the things that we have been talking about today, but possibly other things alongside it to make it work. Would you agree with that?

David Cleevely: It is fine tinkering around with the engine and putting another turbocharger on it, but if the chassis, the transmission system and the wheels will not deliver what you need, all that energy and power is going to go somewhere. In an international system, all we will do is to help to accelerate other countries that are willing to buy our stuff from us. That is fine; I am all for international co-operation, but I really would like to see a bigger contribution to economic growth and productivity improvements in the UK.

Bob Sorrell: To pick up on what David is saying, ARIA is part of the solution. We need all the things that we have, effectively, to put us in a position to lead against the challenges that we face. We would not be in this position if we did not have such a brilliant research community in the UK to start with. It is fantastic that we are having a conversation about how we capitalise on that. It is not just £800 million for ARIA, which is just seed money to start it, but the investment in the overall infrastructure that will make many of these things possible. We need to commit to doing that as well, if the UK is really going to lead and be the test bed and demonstration centre for the technologies that it can lead in and deploy globally.

David Cleevely: I think Bob and I are absolutely in agreement on that.

Chi Onwurah Portrait Chi Onwurah
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Q If nobody else has a question, I will take the opportunity to come back on that point, particularly on procurement. I remember having a great deal of difficulty persuading the Prime Minister that the American Department of Defence was far better at buying stuff from UK small businesses than the UK Ministry of Defence, as the figures show. What do you think we could do, or what should Government be doing, to enable, require or ensure that ARIA, or AREPA, better supports small business growth and, at the same time, addresses the issue of market pull?

David Cleevely: The general thrust of what AREPA—if we are going to adopt that word—is trying to do is right. There are a number of things going on in bits of defence, for example. You have DASA and various others playing around with projects within the different services, for acquiring different kinds of technology. I think the phrase “a bit more coherence” was used by Felicity. I think we need to understand what the map of that innovation system looks like.

I am pretty convinced that people are pretty smart—they will make the right decisions. You just need to give them the right structure, hence my point that serendipity does not happen by accident. These kinds of things happen because you have constructed systems and processes so that people bump into and talk to each other, and will exchange ideas. ARIA is fine as it stands, but it sits within quite a complex system. I would like to see much more recognition within Government about how complex that system is, and how it actually operates. I completely agree with you that it has been far easier, in all my companies, to sell stuff into the United States—particularly into the United States defence market—than it has ever been to sell into the UK.

Bob Sorrell: To build on that, I did a couple of terms at Innovate UK and we tried stimulating public procurement during that period. I think a lot of it is about the culture and getting it right, to allow people to invest in those smaller companies and different technical solutions, to move them away from the existing ones. We got that to work during covid. We managed to get it to work, and we managed to get ourselves investing and procuring things in a different way. That is why I keep coming back to that and looking at what we did differently then that allowed people to make those different choices. I think we have to take some of that learning to see how we can get public procurement to work in a better way going forward.

None Portrait The Chair
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We have one last very quick question from Sarah Owen.

Sarah Owen Portrait Sarah Owen
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Q Bob, you mentioned engagement and trust. We have heard a lot today about accountability and trust. How do you feel that we can get that trust without stifling innovation, and do you think FOIs are the best way to do that?

Bob Sorrell: If you are to get trust, you need to be transparent about the choices that you are making and how you are making them. Then, when you move to the execution phase, you need to allow the programme managers and the people who are driving the programme scenario to make the choices flexibly and in the quickest way possible. I understand in part what you are perhaps playing into, but I think you just need to strike the right balance between transparency on how choices are made and holding to account on that, and allowing people to get on with executing against those programmes once those choices have been made.

David Cleevely: I think the acid test is whether you can explain something to someone who is independent and is one of your peers. If you are happy explaining it back to somebody like that, that is fine. That is the way in which the system works. If you listened to Peter Highnam talk about how DARPA was organised, that was built into the DNA.

Sarah Owen Portrait Sarah Owen
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Q Do you think it would be useful to have that built into ARIA from its inception?

David Cleevely: I think it is essential. I would be very uncomfortable if you had an agency that did not have some degree of—accountability is not exactly the way to describe it, but you have to have a group of independent people reviewing what you are doing, not quite in the same way as you would do an audit, but it is basically that kind of principle. If I have to explain something, as I am having to do for this Committee, it is a lot clearer and more straightforward, and I feel a lot more comfortable about the way in which I can rely on the ideas and what I am doing. I think that process is very, very important.

None Portrait The Chair
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If there are no further questions from Members, I thank the witnesses for their evidence. The Committee will meet again on Tuesday at 9.25 am to begin line-by-line consideration of the Bill.

Ordered, That further consideration be now adjourned. —(Michael Tomlinson.)

00:06
Adjourned till Tuesday 20 April at twenty-five minutes past Nine o’clock.

Written Statements

Wednesday 14th April 2021

(3 years ago)

Written Statements
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Wednesday 14 April 2021

Mortgage Guarantee Scheme: Notification of Contingent Liability

Wednesday 14th April 2021

(3 years ago)

Written Statements
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John Glen Portrait The Economic Secretary to the Treasury (John Glen)
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It is normal practice when a Government Department proposes to undertake a contingent liability in excess of £300,000 and for which there is no statutory authority, for the Minister concerned:

to present a departmental minute to Parliament, giving particulars of the liability created and explaining the circumstances; and

to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the minute, except in cases of special urgency.

I am writing to notify Parliament of a contingent liability that has been created by the Government from the introduction of the new mortgage guarantee scheme. The scheme will be open to new mortgages submitted by participating lenders from 19 April 2021, but the liability will not be incurred until lenders start to submit mortgages to the scheme, which is not expected until May at the earliest.

By way of background, the mortgage guarantee scheme was announced at the Budget on 3 March 2021. The scheme will provide a guarantee to lenders across the UK who offer mortgages to people with a deposit of 5% on homes with a value of up to £600,000. Under the scheme all buyers will have the opportunity to fix their initial mortgage rate for at least five years should they wish to. The scheme, which will be available for new mortgages up to 31 December 2022, will increase the availability of mortgages on new or existing properties for those with small deposits. The guarantee will be valid for up to seven years after the mortgage is originated.

Exposure against this contingent liability would take place in the event that the sum of commercial fees paid by lenders would not be sufficient to cover calls on the guarantee. There will be a cap on the size of the Government’s contingent liability under the scheme of £3.9 billion.

Authority for any expenditure required under this liability will be sought through the normal procedure. HM Treasury has approved this proposal.

I will also lay a minute today on this matter.

[HCWS915]

Events Research Programme: Cancellation Compensation

Wednesday 14th April 2021

(3 years ago)

Written Statements
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Oliver Dowden Portrait The Secretary of State for Digital, Culture, Media and Sport (Oliver Dowden)
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I am tabling this statement for the benefit of all Members of this House to bring to their attention the departmental minute issued today that provides the House with notice of a series of small contingent liabilities created by my Department. This is in relation to a policy to compensate event organisers participating in phase one of the events research programme in the event of their cancellation if public health concerns were to give rise.

The events research programme is running its first phase of 10-15 pilots in April and May to inform decisions around the safe removal of social distancing at step four of the roadmap. The pilots will be run across a range of settings, venues and activities so that findings will support the full reopening of similar settings across multiple sectors.

The Government will provide compensation on a discretionary basis to event organisers should a pilot event be cancelled due to public health reasons.

This compensation will be capped at £300,000 per event and will cover costs incurred in relation to participation in the programme only (e.g. admission of spectators), recognising the fact that these events would have taken place in line with roadmap restrictions should the programme not exist. In the case of the Liverpool events, as these have been put on specifically as part of the programme, the Government will compensate organisers in full should an event be cancelled, but this will be capped at £300,000 in total across the Liverpool events.

The Government do not intend to cancel any event in the programme. However, public safety comes first and therefore it is prudent to provide this assurance to the organisers assisting the Government in reopening the economy.

A copy of the departmental minute is being placed in the Libraries of both Houses.

[HCWS916]

Covid-19 Vaccination Update

Wednesday 14th April 2021

(3 years ago)

Written Statements
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Matt Hancock Portrait The Secretary of State for Health and Social Care (Matt Hancock)
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I wish to inform the House of actions we are taking to improve uptake of vaccines across the adult social care sector.

In February 2021, we published the UK covid-19 vaccines delivery plan setting out the significant programme of work under way to drive vaccine uptake, including actions to improve access and to address the concerns of those who may be hesitant to receive the vaccine.

We have been working to make the vaccination accessible to people living and working in care homes. Vaccination teams have visited all older-age care homes in England and are running a minimum four-visit schedule for each. For those workers who may not have been present when the vaccination team visited the home, access via other vaccination services has been available. We also opened the national booking service for seven weeks so that frontline social care workers could book their own appointments, and care home workers can now arrange vaccination directly through their GP.

We have worked hard to address concerns among the adult social care workforce by delivering an extensive communications programme, running targeted advertisements and issuing a stakeholder toolkit containing regularly updated Q and As, guidance and communications materials. Positive messaging using influencers, leaders and care home workers who have already been vaccinated has boosted confidence and tackled misinformation, as have briefings with different faith groups who have become ambassadors for getting a vaccine.

We continue to do everything we can to increase vaccine uptake. We have targeted support at older adult care homes where vaccine uptake is low, such as in London. As of 4 April 2021, vaccine uptake among eligible workers in older adult care homes in London is 68%, compared to 82% in the south west. Local efforts, by employers, local authorities, public health teams and others, supplement this Government’s support.

Despite efforts, vaccine uptake among care home workers is not consistently at the level that we know from SAGE advice is needed to minimise the risk of outbreak: a minimum vaccination rate of 80% of staff and of 90% of residents in each home—that level must be maintained. Only 53% of older adult homes in England are currently meeting this recommendation.

It is imperative that together we now take every step necessary to reduce the risk of spreading the virus to those most at risk from covid-19 and those who care for them. We must protect people living in care homes, and we must protect the workforce who perform such a vital role.

Vaccination is a safe, effective way of preventing the spread of covid-19. It is therefore right that the Government act now to ensure that those working and assisting in older adult care homes are vaccinated to protect everyone in these settings.

From today, we are consulting on taking steps to require care providers to deploy only staff who have been vaccinated within older adult care homes. This measure would be intended to protect the people most at risk in our society—around 90% of those who died from covid-19 were people over 70.

Making vaccination a condition of deployment in older adult care homes in this way would help to further protect older people living in care homes, who are among the most vulnerable to covid-19, and ultimately save lives. A five-week consultation launches today to help inform decision making around how the change could be implemented and whether respondents think it will be beneficial. This will include areas such as potential impact on staff, safety and who could be exempt. Staff, providers, stakeholders, residents and their families are being urged to take part to have their views heard with an outcome expected by this summer.

I will provide an update to the House, following the completion of the consultation.

[HCWS917]

Domestic Abuse Bill

Wednesday 14th April 2021

(3 years ago)

Written Statements
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Victoria Atkins Portrait The Parliamentary Under-Secretary of State for the Home Department (Victoria Atkins)
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This Thursday— 15 April—the House of Commons will consider the Lords amendments to the Domestic Abuse Bill available on the following link https://publications.parliament.uk/ pa/bills/cbill/58-01/0281/200281.pdf. As we are approaching the end of the Session and further consideration of this Bill is likely to proceed at pace, I am issuing this written statement to set out for the benefit of MPs, peers and others the Government’s position on the various Lords amendments.

The Domestic Abuse Bill will be a groundbreaking piece of legislation. Building on the strong suite of measures already in the Bill as agreed by the House of Commons, the Government proudly welcome many of the Lords amendments (namely, amendments 4 to 8, 10 to 32, 34 to 36, 39 and 44 to 82 and 84 to 86) and worked closely with peers to achieve them. In particular, we support the Lords amendments:

creating a new offence of non-fatal strangulation (Lords amendment 36);

extending the offence of disclosing private sexual photographs and films with intent to cause distress (known as the “revenge porn” offence) to cover threats to disclose intimate images (Lords amendment 35);

extending the controlling or coercive behaviour offence to cover post-separation abuse (Lords amendment 34);

stopping vexatious family proceedings that can further traumatise victims by clarifying the circumstances in which a court may make a barring order under section 91(14) of the Children Act 1989 (Lords amendment 32); and

prohibiting GPs and other health professionals from charging a victim of domestic abuse for a letter to support an application for legal aid (Lords amendment 39).

In addition, as further evidence of our commitment to community-based services, the Government have committed to consult on the provision of community-based domestic abuse services in the upcoming victims’ law consultation to be launched this summer.

We have also listened closely to concerns about misogyny and attitudes towards women and girls, and will ask police forces in England and Wales to record, on an experimental basis, any crimes of violence against the person, including stalking and harassment, and sexual offences where the victim perceives it to have been motivated by a hostility based on their sex.

That being said, there are other amendments made in the House of Lords which the Government are unable to support (that is, amendments 1 to 3, 9, 33, 37, 38, 40 to 43 and 83). These amendments apply to England and Wales only.

Abuse by carers (Lords amendments 1 to 3)

We fully recognise that abuse of disabled people perpetrated by carers is wholly unacceptable and needs to be tackled along with all other forms of abuse. The Government’s definition includes husbands, wives, partners and relatives who act as “carer” for the victim whom they abuse.

These amendments, however, would bring the relationship between a disabled person and a paid or volunteer carer who is not a partner or relative within the meaning of “personally connected”. Extending the scope of the Bill in this way would undermine the common understanding of domestic abuse. Central to this understanding is the manipulation of the emotional bond between intimate partners or family members.

Further, the Government’s approach is consistent with international definitions. The explanatory report to the Istanbul convention declares that domestic abuse or violence covers “intimate-partner violence between current or former spouses or partners and inter-generational violence which typically occurs between parents and children”.

Nevertheless, we are determined to act on the concerns that have been raised in this debate. Accordingly, we are pleased to announce that as part of the Government’s ongoing commitment in this sphere, the Home Office and Department of Health and Social Care, with input from the Ministry of Justice and Cabinet Office, will undertake a review to examine the protections against carer abuse and the support available to victims. The review will apply to England.

Judicial training (Lords amendment 33)

The Government acknowledge the importance of effective domestic abuse training for judges and magistrates involved in family proceedings. Training in domestic abuse for the judiciary is a priority and is included in all family law courses run by the Judicial College both for newly appointed judges and magistrates and as part of their continuous professional development.

Judicial training on domestic abuse is kept under constant review and is updated to reflect key developments. The senior judiciary (including the president of the family division and chair of the Judicial College), have already made clear commitments to further develop domestic abuse training, taking into account this Bill, as well as the recommendations of the harm panel report, and findings from the four recent Court of Appeal judgments in domestic abuse cases (handed down on 30 March).

While the Lord Chancellor will continue to support the judiciary in this area, the provision of training is properly a matter for the Lord Chief Justice, as head of the judiciary, working through the Judicial College. By conferring functions on the Lord Chancellor in relation to judicial training this amendment is fundamentally at odds with the constitutional principle of judicial independence.

Reasonable force in domestic abuse cases and statutory defence of previous domestic abuse (Lords amendments 37,38 and 83)

The Government understand the motivation behind these amendments, but we are clear that the existing full and partial defences are sufficient.

Full defences, such as self-defence, are defences to any crime which, if pleaded successfully, result in acquittal. In the circumstances of domestic abuse, the partial defences relating to “loss of control” or diminished responsibility can also be argued. Additionally, the fact that an accused is also a victim of domestic abuse will be considered throughout the criminal justice system process from the police investigation through to any Crown Prosecution Service charging decision, to defences deployed at trial under the existing law and as a mitigating factor in sentencing.

Moreover, these amendments are open to abuse by those seeking to evade justice, including potentially by a perpetrator of domestic abuse.

Migrant victims (Lords amendments 40,41 and 43)

We agree that all victims of domestic abuse, regardless of their immigration status, should be treated first and foremost as victims and that they should not be deterred from seeking support. We have emphasised this throughout the passage of the Bill.

To recap, migrant victims of domestic abuse who live here on a spousal visa receive help and support through the destitute domestic violence concession scheme. For those victims who are on other types of visa, such as student, visitor or work visas, or who are here illegally, and who are not eligible for existing support schemes such as the national referral mechanism, we have announced a pilot support scheme. The game-changing £1.5 million support for migrant victims scheme will provide access to safe accommodation and specialist services for these victims, who have previously not been eligible for other support. As well as providing immediate support within safe accommodation for those who need it, our new scheme will also provide us with clearer evidence of the needs of victims, so that we can build a sustainable programme of support.

Migrant victims should not be treated as a homogeneous group with similar, if not identical, circumstances and needs. We want our longer-term work to recognise migrant victims as individuals with complex and diverse needs. The scheme for migrant victims will help achieve this.

In relation to data sharing, we are committed to considering existing data-sharing procedures following the publication, on 17 December 2020, of Her Majesty’s Inspectorate of Constabulary and Fire and Rescue Services’ (HMICFRS) report in response to a super-complaint about the police sharing immigration data. HMICFRS recommended that the Home Office conduct a review of the legal and policy framework governing the sharing of information about vulnerable victims of crime, including domestic abuse, and to report on the outcome of the review within six months. We have accepted this recommendation and the review is now underway. This amendment pre-empts the completion of that review which we have commenced in good faith.

Accreditation of child contact centres (Lords amendment 9)

The Government recognise that provision of child contact centres is vital in supporting families and enabling parents to have contact with their children and that these must provide a safe environment for children and parents alike. The existing regulatory framework ensures that this is the case.

High level data provided by the National Association of Child Contact Centres indicates there are up to 400 contact centres, fewer than 15% of which may be unaccredited. However, this figure includes contact centres which may be commissioned by local authorities and which are already subject to extensive safeguarding provision and regulation.

In private law family cases, the judiciary and the Children and Family Court Advisory and Support Service (CAFCASS) have protocols in place to ensure that they only refer parties to child contact centres accredited by the National Association of Child Contact Centres.

In public law family cases, where children are in the care of the local authority, or under their supervision, comprehensive statutory provisions are already in place and emphasise that contact should not undermine the welfare and safeguarding of children. All plans and decisions regarding contact, including the use of contact centres or services, are made by social workers on a case-by-case basis, with detailed safeguarding risk assessments and taking full account of any child protection plan and/or contact order. All local authority activity in relation to child contact must be in the best interests of the child and subject to the relevant statutory provisions, including sections 22 and 34 of the Children Act 1989, the Care Planning, Placement and Case Review (England) Regulations 2010 and the Children and Families Act 2014.

We are also concerned that the definition of contact services would be so broad, that it may create duplicative burdens on a wide range of local authority services, which goes beyond child contact centres.

Management of perpetrators (Lords amendment 42)

The Government agree that high-harm domestic abuse perpetrators need to be effectively monitored and supervised. The current legislation in the Criminal Justice Act 2003 already provides for serial and high harm domestic abuse offenders to be managed under multi-agency public protection arrangements (MAPPA) on either an automatic or discretionary basis. Adding a new category of offenders automatically eligible for MAPPA would add complexity to those arrangements without delivering clear benefits.

There is already significant work in train to improve the operation of MAPPA. As well as strengthening the statutory guidance that supports MAPPA, we are pleased to announce the envelopment of a new multi-agency public protection system (MAPPS). MAPPS, as a modern and efficient subject management system, will facilitate more effective and automated information sharing between MAPPA responsible authorities and their partner agencies, thereby improving the multi-agency risk management of all offenders managed under MAPPA, including those domestic abuse perpetrators whose risk is such that they need to be managed under the MAPPA frame- work. The target is for the new system to be piloted in 2022. Once MAPPS is deployed, it will allow ViSOR (the existing subject management system) to be decommissioned. In addition, the Police, Crime, Sentencing and Courts Bill includes provisions to further strengthen the legal framework governing information-sharing between MAPPA partners and others.

In relation to a domestic abuse perpetrator strategy, we have already committed to bringing forward such a strategy later this year as part of the domestic abuse strategy. We have tabled Government amendments to enshrine this commitment in law (Government amendments 42 (a) to (c).

Tackling domestic abuse is a key priority for the Prime Minister and this Government. Our landmark Domestic Abuse Bill will help to better protect and support victims and their children and bring perpetrators to justice.

[HCWS918]

Covid-19 Local Support Measures: Extension

Wednesday 14th April 2021

(3 years ago)

Written Statements
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Thérèse Coffey Portrait The Secretary of State for Work and Pensions (Dr Thérèse Coffey)
- Hansard - - - Excerpts

The covid-19 winter grant scheme has enabled local authorities in England to provide targeted support to families and individuals, keeping them warm and well fed over the winter period, with the principal focus being on disadvantaged children.



The initial scheme was issued at £170 million and was due to conclude at the end of March 2021. In the first two months of the scheme, covering December 2020 and January 2021, local authorities spent over £86 million, with 94% of that awarded to support families with children and 96% used on the provision of food and support with utility bills. In the same period, nearly 2.4 million awards had been made to vulnerable households through the scheme. The scheme was subsequently extended with an additional £59.1 million of support and was due to conclude this Friday, 16 April.



Recognising that some restrictions on the economy continue, we are extending the scheme until 20 June 2021 with funding of £40 million and re-naming it the covid-19 local support grant. This brings the scheme into line with the Prime Minister’s road map out of lockdown as on 21 June, provided we continue to pass the four steps needed to progress through the road map, most of the remaining restrictions will be lifted.



All conditions of the grant continue, as does the allocation methodology.

[HCWS914]