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Oral Answers to Questions
(8 months, 1 week ago)
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Duncan Baker (North Norfolk) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
My Department does a great deal to support the long-term sick and disabled, including through universal credit and its health element, and through the personal independence payment, which is a contribution to the additional costs of sickness and disability.
Duncan Baker
My constituent Jenifer Picton is currently undergoing extensive treatment for cancer and is consequently unable to work. I wish Ms Picton all the very best with her treatment. She has come to my office, which has helped with universal credit, PIP and the new-style employment and support allowance. She has now managed to get PIP, but given that she is seriously ill, why should she have to come to my office for help? Why do we make it so arduous and difficult for people who need treatment to get help?
Mel Stride
I thank my hon. Friend for his question and the typical assiduity with which he takes up his constituency case. May I send my best wishes, and I am sure those of the whole House, to Ms Picton? I am happy to meet him to discuss in more detail the circumstances that he has described.
Marsha De Cordova (Battersea) (Lab)
Data in responses to my written questions on PIP appeals shows that more than 50,000 ill or disabled people had their appeals upheld at tribunal without the need for new evidence. Given that the UK Government will be examined today by the UN Committee on the Rights of Persons with Disabilities following its 2016 special inquiry that found that the threshold had been met for grave and systematic violations, is it not time to replace the flawed and outdated PIP system with a framework that is fit for purpose?
Mel Stride
Of course, we always keep all benefits under review at the Department, including PIP and the assessment processes. As the hon. Lady points out, there is rightly an appeals process for those who are not happy with the conclusions of those assessments. We keep those under review, and I can reassure her that they represent a relatively small proportion of the total number of applications.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
The Minister for Employment (Jo Churchill)
The regional employment gap is significantly lower than in 2010. Jobcentres take a place-based approach to deliver targeted support that reflects local need and the local economy.
Chi Onwurah
Health Equity North research shows high levels of economic inactivity in the north-east due to disability or ill health—40% above the national average. I visited the jobcentre in Newcastle and was very impressed by the dedication and hard work of the staff, but I know from the Public and Commercial Services union that one in four universal credit managers took time off in 2023 for mental illness, which is three times the figure before 2019. We are the only country in the G7 not to have the same level of employment as before the pandemic. Are those high rates not because of record NHS waiting lists, low staff morale and general Government incompetence?
Jo Churchill
As the hon. Lady found, within our jobcentres we have highly skilled people helping people to find work. We have a higher number of people with disabilities in work than in 2010—more than 2 million—and we intend to ensure that work coaches can work carefully and sensitively and attend to people’s needs.
Stephen Crabb (Preseli Pembrokeshire) (Con)
In recent months, the Welsh Affairs Committee has heard from young adults about their experiences with the benefits system. We have been struck by how this group of young people want to work and feel that they can work, but they have been written off as long-term sick and passed to the long-term sickness benefit roll by jobcentres. They feel incredibly let down. Does the Minister agree that we cannot afford to be signing off so many of our young people on long-term sickness?
Jo Churchill
That is why we have WorkWell, the back to work plan, and the occupational health group, led by Dame Carol Black, looking into fit note reform. It is also why we have youth employment coaches and the youth hubs. We are working to ensure that there is the right attenuated support, including kickstart, the sector-based work academy programme and boot camps. Only last week, I met Steph, who is 27, 10 years out of work and grateful for the help that she has had.
Gordon Henderson (Sittingbourne and Sheppey) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
Jobcentre Plus provides a variety of different support to encourage and support people into work, including training and one-to-one, face-to-face counselling by work coaches.
Gordon Henderson
In February, there were 615 claimants aged 18 to 24 out of work in Sittingbourne and Sheppey. Does my right hon. Friend agree that it is important that schools and businesses work together to ensure that young people have the qualifications and skills they need to progress into work once they finish full-time education?
Mel Stride
I could not agree more with my hon. Friend. It is exactly why we have youth hubs providing advice and support on not just getting into work but other important matters to young people, such as housing, their health and debt management.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
I was talking to the Royal National Institute of Blind People, which represents the blind and partially sighted. It told me of an employee who said,
“I am newly employed and I am unable to fulfil my role. It has been extremely stressful and frustrating”,
and this is because of Access to Work. Does the Minister agree that without having Access to Work in place within the first four weeks of someone entering work, it is incredibly difficult for them to maintain that position?
Mel Stride
I am pleased that the hon. Lady raises Access to Work, because it is extremely effective. The grant can be there year in, year out and be up to a maximum of £66,000. Along with other approaches, it has very much led to our meeting our employment goal for disabled people in half the time that we set in 2017—over a million more disabled people were in work by 2022.
Theresa Villiers (Chipping Barnet) (Con)
What are the Government doing to use apprenticeships to help young people engage with the labour market, to tackle levels of economic inactivity and to give them the opportunities they need to get the careers that they want?
Mel Stride
My right hon. Friend raises economic inactivity, which is lower in our country than in the United States, France and Italy. It is below the average of the OECD, the G7 and the European Union. Apprenticeships play a very important part in producing those good figures, though there is of course always more to be done, not least through our approach of engaging extremely closely with employers, both at the national level and through our jobcentres.
Andrew Gwynne (Denton and Reddish) (Lab)
As somebody who has fought really hard over the last four years to overcome the difficulties presented by long covid, I am sure that the Secretary of State will appreciate that a significant number of the people not in work because of health conditions will have some form of post-viral fatigue linked to long covid. What assessment has he made of the effect of long covid on the workforce, and what is he doing to help people who have it get back to work?
Mel Stride
The hon. Gentleman specifically raises long covid, which is one of many health pressures in our society and post covid in many other countries that were also affected by the virus. We have a number of approaches, including universal support, which places people in employment and gives them critical support for up to 12 months. We also have WorkWell, and we are looking at occupational health and what tax incentives we might put in place to encourage employers to do more on that front. We are doing a great deal.
Alison McGovern (Wirral South) (Lab)
Arguably, the biggest barrier to growth in the UK and to turning around the Prime Minister’s recession is the supply of labour. Following the Chancellor’s “Back to work Budget” in the autumn and all the measures unveiled since then, some of which the Secretary of State has just reeled off, did the Office for Budget Responsibility upgrade or downgrade its forecast on employment growth in the Budget 12 days ago?
Mel Stride
One of the most important figures in the spring Budget economic and fiscal outlook was a recognition by the OBR that there will be a net 200,000 more people in employment as a consequence of that fiscal event and the one that preceded it in the autumn. What the hon. Lady cannot get away from is that economic inactivity in our country is at a lower level than in every year under the last Labour Government.
Alison McGovern
What the Secretary of State cannot get away from is the fact that, as has already been said, our employment rate has not returned to the post-pandemic level. He cannot answer the question because the truth is that the OBR downgraded its forecast: the unemployment forecast is worse. The reason for that is a truth that the British people have known for a long time now: these Ministers sitting on the Treasury Bench have no idea, no plan for jobs, no plan for growth. They are done; it is time for a general election.
Mel Stride
I have already referred to the 200,000 additional jobs that the OBR suggests in its forecast, but the hon. Lady cannot get away from the fact that we have record levels of payroll employment in our country, and near record low unemployment. Let us contrast that with Labour’s record: it always leaves unemployment higher than when it comes into office. Economic inactivity was higher than it is now in each year of the previous Labour Government, and we had more people in absolute poverty after housing costs under Labour as a direct consequence.
Nigel Mills (Amber Valley) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
We are bringing forward a number of important reforms to our welfare system at pace. Phase 1 of our universal support has already been activated, and phase 2 will be later this year. Next month we will announce 15 WorkWell areas—about a third of England—that have been successfully selected, and will be rolled out live this autumn.
Nigel Mills
I thank the Secretary of State for listing all those reforms. The data is clear that after 13 weeks out of work, the chances of someone finding work starts to fall off rapidly. Therefore, there is a need for more intensive and tailored support. Could he update the House on the additional jobcentre support roll-out, and when my constituents might get access to those benefits?
Mel Stride
We are keen to do that. AJS, to which my hon. Friend refers, has been rolled out in parts of the country at six weeks, but shortly will be extended and strengthened for two weeks at the 13-week stage of the unemployment journey. That is part of the more intensive conditions that we apply to ensure that we help—and in many circumstances, require—people to go back into work.
Tim Farron (Westmorland and Lonsdale) (LD)
Some of the poorest people I know in my constituency work for themselves. Hill farmers have seen a 41% drop in their income over the last four years. The welfare system does not work for them, because they are paid less than the minimum wage. Access to universal credit is less for them, because of the minimum income floor. Will the Secretary of State urgently look at that, so that small business owners—especially hill farmers in my constituency —are not made even poorer because of the Government’s rules?
Mel Stride
The hon. Gentleman is right inasmuch as universal credit for the self-employed has to recognise the fact that sometimes there are inconsistent levels of income month to month. That is why we have a minimum income floor and the arrangements around that. I know he has a rural, agricultural constituency; I recognise some of those issues, and I am looking closely at them.
Margaret Greenwood (Wirral West) (Lab)
The Minister for Disabled People, Health and Work (Mims Davies)
[In British Sign Language: “Happy Sign Language Week everybody.”] It is a key priority for the Department for Work and Pensions to provide effective support for our vulnerable customers. We provide training on how to support customers’ mental health, and we have a six-point plan for supporting claimants who may be at risk of suicide or self-harm. The DWP regularly reviews processes to make improvements through colleague and customer feedback, and through the work of the serious case panel.
Margaret Greenwood
The Government estimated that 3% of households on legacy benefits would fail to move to universal credit under managed migration. However, by last December, 21% had not managed to do so and, as a result, had their benefits stopped. This is a matter of real concern. The DWP will now ask more vulnerable people who are wholly reliant on benefits to transfer. What will the Government do to ensure that those vulnerable people do not fall out of the social security system?
Mims Davies
I thank the hon. Lady for her point about vulnerable customers who have come into our curtilage and purview. The Minister for Employment has reminded me that we will take this very slowly, and will engage with and support customers. Customers can speak to help to claim advisers at Citizens Advice, and we will ensure that we listen to them.
Justin Tomlinson (North Swindon) (Con)
In addition to the financial support provided to personal independence payment claimants, what progress is being made to refer claimants proactively to the widest support available in their community?
Mims Davies
I thank my hon. Friend for highlighting this point. There is the household support fund, help to claim, and opportunities to pop into the local library to get additional support, for example. There is also an extra £500 million out there on top of the £1 billion through to the end of this month. I would say to anybody: “The benefits calculator is out there, and do talk to the CAB and your local council”—perhaps in Swindon.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Today the Government are in Geneva defending their policies to the UN committee that is investigating the UK for breaches of the convention on the rights of persons with disabilities, including article 28 on the right of disabled people to social protection. Given that drastically cutting disabled people’s social security support between 2012 and 2019 and austerity were found to be responsible for 148,000 avoidable deaths, how will the new wave of austerity announced in the Budget affect the health and wellbeing of disabled people?
Mims Davies
I am pleased to have this opportunity to make it clear to the House that the Government are committed to the UN convention on the rights of persons with disabilities and we look forward to outlining the UK’s progress on advancing the rights of disabled people across this country. Our national disability strategy and the disability action plan are delivering tangible progress. This includes ensuring that disabled customers can use the services they are entitled to, as we have spelled out today. Disabled people’s needs are better reflected in planning for emergencies as well. We are making sure that this country is the most accessible and, importantly, equal place to live in the world.
Dean Russell (Watford) (Con)
I truly welcome and am personally grateful for my hon. Friend’s support for my campaign for parity between mental and physical health in the workplace, and for the recent publication of the national suicide prevention strategy, which referenced two of the points I have been campaigning on. I understand acutely that the Health and Safety Executive has worked hard on updating first aid guidance, and I would be grateful if the Minister could please update the House on this.
Mims Davies
The DWP is also proudly committed to becoming a more trauma-informed organisation, and we will be world-leading on that. I was pleased to see that in Hastings. The HSE continues to work with us, as does the Department of Health and Social Care, to support the suicide prevention strategy for England. I can confirm that the first phase of mental health guidance on the HSE website has been revised to include text that emphasises the importance of, and the need to consider, parity of risks to either mental or physical health.
David Duguid (Banff and Buchan) (Con)
The Minister for Employment (Jo Churchill)
The jobcentre team are providing a broad range of support, including partnering with Morrisons and the Co-op to fill local vacancies in my hon. Friend’s constituency and delivering targeted outreach at Banff library with local providers.
David Duguid
My hon. Friend is aware of the very low unemployment in Banff and Buchan and the difficulty in filling vacancies with local people, particularly in the food and drink sector. The seafood sector in particular is still in a transition away from dependency on overseas workers, which could take some years. What data can the DWP provide on the measures that local businesses have taken to maximise the employment of local people, and what other support can the Department offer to attract workers to areas of low unemployment such as Banff and Buchan?
Jo Churchill
There are the wages paid through the rise in the national living wage, my hon. Friend’s local jobcentre and the range of access to support. I am sure we will be discussing all these issues tomorrow at the roundtable with seafood processors that I will be attending along with the Minister for Legal Migration and the Border, my hon. Friend the Member for Corby (Tom Pursglove).
Sir Stephen Timms (East Ham) (Lab)
A large number of people in Banff and Buchan are economically inactive. They are not claiming benefits so they are not eligible for employment support from jobcentres, but the Select Committee recommended last summer that such people should be eligible. Would that not be in their interests and in the interests of employers struggling to fill vacant posts at the moment, and therefore supportive of much-needed economic growth?
Jo Churchill
We always take these matters very seriously and keep them under full review.
Mr Virendra Sharma (Ealing, Southall) (Lab)
Gen Kitchen (Wellingborough) (Lab)
The Secretary of State for Work and Pensions (Mel Stride)
Food banks are independent organisations, with DWP having no direct role in their operation. We do, however, monitor the use of food banks through the family resources survey, and the next instalment of that will be later this month.
Mr Sharma
Nearly 50,000 people needed help from Ealing Foodbank last year. Some 38% of them were children under 16. It is amazing that the food bank and its volunteers are there to help, but it is a national shame that it is needed. What are the Government’s plans to reduce dependence on food banks?
Mel Stride
This is the Government who have overseen a 400,000 reduction in the number of children in absolute poverty since 2010. Despite the chuntering from the Opposition Front Bench, unfortunately the figures were far worse under the last Labour Government than they may be at the moment. The hon. Gentleman asks directly what we are doing. We are again putting up the national living wage by substantially more than inflation this April. The Chancellor has already brought in national insurance cuts that will be worth £900 to the average earner. Benefits themselves are going up by 6.7% next month. We have also changed the arrangements for local housing allowance, which means that 1.6 million people, many of whom are on very low incomes, will be better off by an average of £800 a year.
Gen Kitchen
While on the campaign trail, I met the Daylight Centre and SERVE Rushden. Both have seen their service users increase in number, even with the extension of the household support fund, which they both welcome. What can the Secretary of State do to expand the eligibility of the fund, improve uptake and increase the value of the healthy start payment?
Mel Stride
May I welcome the hon. Lady to her place? In answer to her question, I will simply point out that there was much speculation before the spring Budget about whether the housing support fund was going to be extended. In my opinion, the Chancellor took exactly the right approach, and the fund has now been extended for a further six months.
Kirsty Blackman (Aberdeen North) (SNP)
Research from the Trussell Trust reveals the devastating truth: more than half of people receiving universal credit ran out of food in January and could not afford more, and 2.4 million universal credit claimants have fallen into debt because they could not keep up with essential bills. Will the Secretary of State back the Trussell Trust’s joint campaign with the Joseph Rowntree Foundation, and commit to legislate for an essentials guarantee in universal credit to reduce food bank use and ensure that everyone has a protected minimum amount of support in order to afford life’s essentials—yes or no?
Mel Stride
The most important thing is that this Government recognise that the best way out of poverty, and the best way to address the circumstances that the hon. Lady describes, is through work. That is why the Chancellor reduced taxation, making work pay ever more, and why the national living wage is to be increased by close to 10% this April, following a similar increase around this time last year. Benefits are going up by 6.7% and increased by 10.1% this time last year. I have already mentioned local housing allowance, and of course we have now had eight consecutive months of real wage growth as inflation has fallen.
Peter Gibson (Darlington) (Con)
The Minister for Employment (Jo Churchill)
The team are working tirelessly with Darlington Borough Council, Tees Valley Combined Authority and other partners to deliver through job fairs, SWAPs and skills bootcamps.
Peter Gibson
I thank my hon. Friend for her answer, and may I be the first in the Chamber to wish her a very happy birthday? In addition to the issues that she has highlighted, may I highlight the wonderful work that Darlington jobcentre has done in setting up its Facebook page? Does she agree that it is a template for others to follow, and will she come to Darlington and meet my fantastic work coaches?
Jo Churchill
I thank my hon. Friend—it is seemingly quite a large number on my birthday cards today.
My hon. Friend has been a fantastic champion of his local jobcentre, and has campaigned vigorously to ensure that Darlington is at the forefront of innovation. I will be meeting his team in April. I have been to seven jobcentres since the last DWP questions, and I will make sure that his work coaches are at the top of my list.
Jim Shannon (Strangford) (DUP)
The Minister, in her response to the hon. Member for Darlington (Peter Gibson), has emphasised what she will do for his local jobcentre. Whatever she will do for Darlington, she will also do for the rest of the United Kingdom, including my constituency of Strangford. Across this great United Kingdom of Great Britain and Northern Ireland, how can we work better with further education colleges to get our young people ready for the jobs that become available?
Jo Churchill
I talk regularly to colleagues in the Department for Education, ensuring that those skilled boot camp SWAPs make people job-ready, because they have not only the experience but a guaranteed interview. That is the way we are driving those numbers up.
Mrs Heather Wheeler (South Derbyshire) (Con)
Greg Smith (Buckingham) (Con)
Mr Louie French (Old Bexley and Sidcup) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
In 2023-24 we will spend over £152 billion on benefits for pensioners in Great Britain—5.9% of GDP—including a forecast £125.4 billion on the state pension.
Mrs Wheeler
I thank my hon. Friend for his reply. South Derbyshire pensioners have been in touch with me following the Budget, emailing to say that it seemed to offer them nothing. Would he be kind enough to set out today the help that the Government have given and are giving to pensioners, to help them realise that “nothing” is far from the reality of what a Conservative Government are giving them?
Paul Maynard
I am grateful for that question. The answer could not be further from nothing. This is a Government with a proven track record of supporting pensioners, including our commitment to the triple lock. In April we will see the state pension raised by 8.5% this year, after an increase of 10.1% last year, meaning that it will be a full £3,200 higher in cash terms than it was in 2010.
Greg Smith
I very much welcome the record on supporting pensioners that my hon. Friend has just outlined. A number of pensioners in my constituency have contacted me about the effects of fiscal drag—they may have a very modest private pension that is now being dragged into tax when they never expected it to be. What steps is my hon. Friend taking in conjunction with the Treasury to ensure that we can get pensioners on modest private pensions out of tax?
Paul Maynard
This is the Government who have nearly doubled the personal allowance since 2010, ensuring that most of the lowest earners do not pay income tax. Indeed, thanks to the personal allowance, around 30% of individuals do not pay tax, and of course any pensioner solely reliant on the state pension does not pay income tax.
Mr French
Does my hon. Friend agree with me that while the Conservatives proudly continue to support pensioners in their hard-earned retirement with the triple lock and other cost of living support measures, it is disgraceful that the Labour Mayor of London has hammered pensioners and working people in Bexley by increasing council tax by approximately £200 per year, and ultra low emission zone charges to £12.50 per day?
Paul Maynard
I am sure my hon. Friend agrees with me that the Mayor of London seems to spend more time paying extremely expensive salaries to some of his key employees around Greater London. Of course ULEZ has an effect on pensioners: whether they are going to the shops, visiting their family or attending hospital appointments, they will be the ones to pay the price for the Mayor’s overweening ambition.
Kate Hollern (Blackburn) (Lab)
In early December, my constituent was informed by the DWP that they must renew their personal independence payment entitlement. They were told that if the necessary forms were not returned by 13 January, their PIP could be stopped. On Christmas day, the DWP informed my constituent that, as the forms had not been returned, their PIP entitlement had been stopped and they owed some money. My constituent returned the forms in early January, long before the deadline, but they have had no response since then, and nor have they received their benefits. Could I implore the Minister to intervene in this astounding case and work out exactly how this error could have occurred?
Paul Maynard
I thank the hon. Lady for her question. If she writes to me with further details, I will ensure that the relevant Minister is able to look into the case.
Steve McCabe (Birmingham, Selly Oak) (Lab)
With more than 9 million pensioners now paying income tax —many, as we have just heard, as a result of frozen allowances—and almost 1 million not receiving pension credit to which they are rightly entitled, does the Minister think it might be time to improve the uptake of pension credit?
Paul Maynard
I am pleased to be able to say that applications to receive pension credit are currently increasing, quarter on quarter.
Paul Maynard
If the hon. Gentleman will wait and listen to the answer, I will explain what we are doing to increase uptake of pension credit. Not only do we have major nationwide campaigns, our latest one featuring Harry Redknapp; we are also carrying out experimental campaigns, such as writing to all those pensioners who are in receipt of housing benefit, to make sure that those most likely to be eligible for pension credit are being targeted to take it up.
Alison Thewliss (Glasgow Central) (SNP)
It is all very well people applying for pension credit, but The Well advice centre in my constituency has identified massive delays in people getting the pension credit for which they are eligible. One constituent got in touch with me in February, having applied for pension credit in August 2023, and they were still waiting for the application to be resolved, resulting in a backdating of more than £8,000. Would that money not have been much better in the pocket of a pensioner who needed it right then, rather than waiting indefinitely for the DWP to get back to them?
Paul Maynard
I am obviously disappointed to hear of that constituent’s experience, but it is not something I hear very often about pension credit. We have an excellent delivery record and an extremely low level of complaints.
Anna Firth (Southend West) (Con)
Southend’s indomitable pensioners and WASPI women Frances Neil and Deborah Dalton came to see me on Friday on behalf of the 10,000 WASPI women across Southend. With the ombudsman’s final report due within weeks, will the Secretary of State please commit to coming to the House to make a statement so that these issues can be fully aired?
Paul Maynard
As I am sure my hon. Friend is all too aware, I am not able to comment until the Parliamentary and Health Service Ombudsman’s report is published.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
When will this miserable Government wake up to the fact that there is a shortage of skilled labour in this country, and at the same time that we have an army of pensioners who could be retained in the workforce if they were given the right incentives to carry on working? There is a good relationship between work and staying healthy, so will the Minister act?
Paul Maynard
I am not sure whether the hon. Gentleman is volunteering himself for a post-Commons career, but there are many job opportunities for pensioners across the country. Indeed, many people working on attendance allowance in my part of Blackpool are in their 70s and 80s, and they are doing a fantastic job. We put an awful lot of effort, not just through the mid-life MOT but through the older worker support in our jobcentres, to make sure that we match jobseekers to the right job for them.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
Time and again, pensioners have been let down by this Government. They suspended the triple lock, breaking a key manifesto promise; their disastrous mini-Budget knocked hundreds of billions of pounds from pension pots; and their failure to get a grip on the cost of living means that pensioners are mainly living in cold homes over the winter and have a choice between heating or eating. Against this backdrop, is the Minister at all surprised that almost one in five pensioners are now living in poverty?
Paul Maynard
It is as if the shadow Minister has not noticed the almost £900 of cost of living payments made to pension credit recipients across the country over the last year. I know the Opposition have relied on last week’s Resolution Foundation report to criticise what we are doing, but this is what the report actually says:
“‘Pensioners used to be by far the most likely to be in poverty…now they are the least likely.’ This change in the relationship between old age and low income is one of the most profound social and economic changes this country has seen”.
We achieved that under this Government, not under our failed Labour predecessors.
Hywel Williams (Arfon) (PC)
The Secretary of State for Work and Pensions (Mel Stride)
We are bearing down on poverty, not least by incentivising work within the benefit system. As the hon. Gentleman will know, we have reduced the universal credit taper, for example, which has led to a record level of payroll employment and near record low unemployment.
Hywel Williams
I commissioned a poverty report for the Arfon constituency from the highly respected Bevan Foundation—copies are available online in Welsh and English. One finding is that, of the people receiving both universal credit and housing benefit in Arfon, 35% are paying the bedroom tax, compared with 21% across Wales. This is cushioned to some extent by the Gwynedd local authority’s discretionary help, but will the Minister review the differential negative effects of the bedroom tax between communities, particularly those with a diminished housing stock because of, for example, high levels of holiday homes?
Mel Stride
I thank the hon. Gentleman for referring to that report, which I will look at with interest. Of course, there is no such thing as a bedroom tax, as it is not a tax at all; it is a spare room subsidy. It is there for very good reason: to free up additional space for those who need it. On the housing front, as I said earlier, local housing allowance has been improved such that 1.6 million people on low incomes in the private rented sector will be, on average, £800 a year better off come April.
Virginia Crosbie (Ynys Môn) (Con)
One of the best ways to tackle poverty in rural areas such as Ynys Môn is through jobs fairs. Will the Secretary of State join me in thanking Alwen Gardiner and my brilliant Ynys Môn DWP team for organising an excellent tourism and hospitality jobs fair, which was attended by over 150 jobseekers in Llangefni and companies such as Tredici Butchers & Deli in Beaumaris, and the Breeze Hill in Benllech? Diolch yn fawr.
Mel Stride
I thank my hon. Friend for drawing attention to her jobs fair. She is a local dynamo in standing up for her constituents. When I arrived there recently thinking I was very special to support yet another jobs fair—a disability jobs fair—I was quickly reminded of the fact that I was the 32nd Minister to have been to her constituency in, I think, the past 12 months.
Jane Hunt (Loughborough) (Con)
The Minister for Disabled People, Health and Work (Mims Davies)
The Supported Housing (Regulatory Oversight) Act 2023 brings reforms to the supported housing sector to improve quality and value for money. Any changes to funding models would need to be considered in the context of those broader reforms, but we keep the subsidy policy under review.
Jane Hunt
Charnwood Borough Council currently contributes £1.5 million a year to subsidise the supported housing benefit payment to local charities, which are unable to become registered social landlords. The charities provide excellent support and accommodation to those suffering from addiction, or ex-offenders undergoing rehabilitation. However, the cost to the council is unsustainable. Please will my hon. Friend look at funding those services, as the Department for Work and Pensions currently does for similar organisations that are registered social landlords?
Mims Davies
I thank my hon. Friend for raising this issue. The challenging fiscal environment means that we need to prioritise resources and ensure that support is targeted effectively to maximise impact for citizens. I chair a cross-Government group with the Department for Levelling Up, Housing and Communities on quality issues and other matters, such as subsidy loss, which she raises. We will continue to review and monitor the concerns that she and other local authorities have raised. However, I point to the local housing allowance uplift, which is a central focus for me.
Alistair Strathern (Mid Bedfordshire) (Lab)
The Minister for Disabled People, Health and Work (Mims Davies)
We treat all claimants individually, recognising the differing needs of health conditions and disabilities, and the impact on claimants’ daily lives. The length of time for an assessment is not included in the contract between the DWP and providers, but I can confirm that the average time for 2023 was 63 minutes.
Alistair Strathern
I was heartbroken to hear the experience of a constituent who had to go through an enhanced medical assessment for PIP. A bowel cancer survivor with severe arthritis, she was made to stay on a phone call for over three hours to be assessed. That meant that, due to her needs, she had to suffer the indignity of soiling herself just to complete the assessment. How on earth can that be okay? I would like to understand what steps are being taken to reduce the times of these assessments and to hear what can be done to ensure they are finally undertaken with basic human compassion.
Mims Davies
I thank the hon. Gentleman for raising a distressing case. The DWP is committed to assessing people as quickly as possible. I am happy to look into that particular situation to see why, in this case, the support the claimant was entitled to did not come promptly. Prioritising the reduction of processing times to maximise the number of assessments completed without affecting quality is key, but I am very happy to take that case away.
Vicky Foxcroft (Lewisham, Deptford) (Lab)
The Department for Work and Pensions has a staggering 288,000 outstanding PIP claims. The average clearance time is currently 15 weeks. People are waiting almost four months for a decision, which can have a significant impact on physical and mental health. What is the Minister doing to improve clearance times, so that people are not left in limbo, worrying about whether they can afford the extra costs associated with their disability or long-term health condition? The Government urgently need to get a grip.
Mims Davies
Claimants’ satisfaction has remained above the service level of 90% or higher as of the three-month average that began in September 2016. The end- to-end clearance time from registration to a decision being made is currently 15 weeks, which has been reduced from 26 weeks in August 2021. [Interruption.] The hon. Lady asked very gently what we are doing. We have multi-channel assessments and I am engaging regularly with my officials twice a month to ensure that we are assessing the queues and the delays and, as I said at the start of this question, that we are treating everybody individually and in a tailored and suitable way.
Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
The Secretary of State for Work and Pensions (Mel Stride)
We are reducing child poverty through the use of a large number of measures, not least ensuring that work pays, hence our increase in the national living wage in April and the reduction in the national insurance tax that my right hon. Friend the Chancellor announced recently.
Stuart C. McDonald
A total of 100,000 children will be kept clear of poverty this year thanks to the Scottish Government’s policies—primarily the Scottish child payment. Surely the Secretary of State must now look to rolling out some of our policies in other parts of the UK and, at the very least, ditch the two-child limit, which deliberately forces children into poverty.
Mel Stride
The limit to which the hon. Gentleman refers is there for a very good reason, which is that people in those circumstances should face the same basic decisions as those not on benefits. That is an important matter of fairness across those who receive benefits as well as the many who are paying tax. As for the number of children in poverty, that has fallen by 400,000 since 2010.
Gavin Newlands
Many of those people are in work, Secretary of State. Some £14 million has been paid to more than 10,000 children’s families in Renfrewshire thanks to the widely praised Scottish child payment. Praise has come from the Institute for Public Policy Research Scotland, which says that the Scottish Government are making employment for parents central to their child poverty strategy, but it says that devolved employment support programmes are
“held back by responsibility being split across governments and a reserved Jobcentre system which is more often focused on compliance than helping people reach their full potential.”
It recommends the full devolution of employment support to tackle child poverty. Will the Secretary of State listen to the experts?
Mel Stride
I am always very interested in listening to the hon. Gentleman and any ideas that he has about how we should improve our welfare system, but I point to the fact that this country has seen a considerable drop in absolute child poverty, after housing costs, of 400,000 since 2010.
Richard Graham (Gloucester) (Con)
What correlation does the Secretary of State see between children in poverty and workless families? Given that there is no age restriction on most apprenticeships, and today’s announcement that there will be 20,000 more apprenticeships and that the apprenticeship levy can be spent on greater numbers of contractors and sub-contractors, what opportunities does he see for his Department to highlight those opportunities for people who are of working age and who may have children in poverty?
Mel Stride
My hon. Friend refers to workless households. He is absolutely right about the correlation: a child is five time more likely to be in poverty if they are growing up in a workless household. He was right to draw attention to the announcement that has been made today about even greater investment in apprenticeships, and also the change in the way that the apprenticeship levy works so that supply chains can benefit to a greater degree.
Sir David Davis (Haltemprice and Howden) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
May I join the House in saying happy birthday to the Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill)? It should be a national holiday as far as I am concerned—perhaps that is an idea for a private Member’s Bill, or something similar.
I am pleased that, since the last questions, we have published our review into autism employment, and I place on record my thanks to my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland) who did such excellent work in bringing that useful report forward.
Looking forward from April, we will see benefits generally rising by 6.7%, the state pension by 8.5%, the national living wage by around 10%, and the next tranche of the household support fund being brought forward. As I have already set out, our plan is working. It means more employment, historically low unemployment and an economic inactivity rate below countries such as the United States, France and Italy.
Sir David Davis
The economic inactivity rate is now very high, with 2.8 million people citing long-term sickness as a reason. Some 17 million days of work are lost, at a cost of £13 billion to the economy. Has the Secretary of State seen the Policy Exchange report published today, with policy proposals backed by two of his predecessors, David Blunkett and my right hon. Friend the Member for Norwich North (Chloe Smith)? What steps are the Government taking to improve the provision of workplace health services through occupational health pathways and vocational rehabilitation, and will he consider the 15 proposals in the Policy Exchange report?
Mel Stride
I will of course look closely at the report that my right hon. Friend refers to; indeed, I reached out to him recently to invite him to the Department to discuss that and other matters. With regard to long-term sickness and disability, we are working on an array of interventions, including occupational health support within businesses; WorkWell, bringing together medical interventions with work coaches; universal support to help people into work, and to stay in work with that support; and fundamental reform of the work capability assessment, such that the OBR says that 371,000 fewer people will go on to those benefits going forward.
Liz Kendall (Leicester West) (Lab)
In the Budget, the Chancellor said that he wants to end national insurance contributions because the
“double taxation of work is unfair.”—[Official Report, 6 March 2024; Vol. 746, c. 851.]
People’s NICs records help to determine their entitlement to the state pension, so if national insurance is scrapped how will they know what pension they will get?
Mel Stride
I am not surprised that the hon. Lady brings that up, because I am well aware of the position that her party has taken on the announcements that we have made. She will be clear in her own mind that the Chancellor has not guaranteed that we will reduce at one stroke national insurance contributions; it is an aspiration that has been spoken about as occurring over a number of years, if not Parliaments, so the problems that she is conjuring up to frighten pensioners are nothing short of political scaremongering.
Liz Kendall
The Secretary of State can bluster and deny all he likes, but the Prime Minister told The Sunday Times:
“We want to end this double taxation on work”.
It is there in black and white, so let me try again. How will people’s pension entitlement be determined if NICs are scrapped, and if the Government are going to merge NICs with income tax what will that mean for pensioners’ tax bills? Is the truth not that their unfunded £46 billion plan to scrap NICs is yet more chaos from the Conservatives, and Britain’s pensioners deserve so much better?
Mel Stride
The hon. Lady quoted from The Sunday Times, and I scribbled it down:
“We want to end this double taxation”.
Of course we do, but that is not the same as a near-term pledge; it is a longer-term aspiration—[Interruption.] We have been quite upfront, quite unlike—[Interruption.] If she would care to hear me out, it is quite unlike the £28 billion firm commitment that her party made, and subsequently U-turned on, which was nothing short of fiscally reckless, and would have led to increases in interest rates, inflation, unemployment, and so on.
Henry Smith (Crawley) (Con)
The Minister for Disabled People, Health and Work (Mims Davies)
I am delighted about the regional roundtables, including in the leisure and hospitality sector, oil and gas, and education, among others. They are informing the sector work of the menopause employment champion, and her one-year report is now available, showcasing a variety of stakeholders’ perspectives, and outcomes for women who need support.
Kirsty Blackman (Aberdeen North) (SNP)
The Resolution Foundation highlights that scrapping the two-child limit would be one of the most efficient ways to drive down child poverty rates, and would lift 490,000 children out of poverty overnight. Surely one child growing up in poverty is one child too many. The Secretary of State should reverse course on this, and the Labour party should also commit to scrapping the two-child limit. Does the Secretary of State agree that no child should grow up in poverty, and will he take action to ensure that that stops now?
Mel Stride
The hon. Lady raises the same point as her colleague, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), about the two-child limit. I will not detain the House by repeating exactly the same answer, other than to agree passionately with her that one child in poverty is one too many, and to say that, although we have further to go, it is important to recognise that we have reduced the number of children in absolute poverty, after housing costs, by 400,000 since 2010.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (Con)
Mims Davies
I am delighted to welcome Sign Language Week, which is marking its 21st anniversary of recognising British Sign Language as a language in its own right. I encourage Members to join the British Deaf Association reception after these questions have ended.
Dan Carden (Liverpool, Walton) (Lab)
The Minister for Employment (Jo Churchill)
The plan is to roll out those migration notices by 31 March. We intend to publish data for the hon. Gentleman’s constituency. We are committed to ensuring that the transition works as smoothly as possible for everyone.
Mr Laurence Robertson (Tewkesbury) (Con)
Jo Churchill
We are working with other Departments, employers and stakeholders to isolate where those vacancies are, and on sector-based work academy programmes. We have put over 266,000 people through construction, care, tourism, hospitality—all those gaps that we need to fill.
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
Of people currently claiming tax credits, 20% are not moving over to universal credit in the migration. The Department tells us that those who are not claiming would have got a median amount of £3,200 a year. Will the Minister assure me and the House that she is doing everything she can to ensure that people are getting the money that they are owed?
Jo Churchill
I assure the hon. Lady that we are keeping a close eye on the issue, but ultimately it is the customer’s responsibility to claim. I gently point out that we have been rolling out the migration in her constituency since May ’23, with not one complaint. There is plenty of help available to those people as they transition.
Mrs Sheryll Murray (South East Cornwall) (Con)
Mel Stride
I thank my hon. Friend and near neighbour for her question—I know that she cares deeply about the issue that she has raised. We work closely with other Departments. For example, we work with the Department of Health and Social Care on NHS talking therapies, of which we have announced 400,000 more over the next five years, as well as on WorkWell, which I have mentioned, and on fit note reform. With the Department for Levelling Up, Housing and Communities, we are working closely on housing—I have spoken about the local housing allowance changes coming through—and with the Department for Education we are working on SWAPs, and on training and apprenticeships.
Grahame Morris (Easington) (Lab)
Schools, general practitioners, social services, charities and housing associations can all refer their clients to a food bank in an emergency, yet this Government, who are responsible for benefit sanctions, have ordered DWP staff to stop referring claimants to food banks. How can Ministers justify this decision to the families of the 4,027 children living in poverty in my east Durham constituency?
Jo Churchill
May I make it clear that that was just scaremongering? The DWP has not changed its policy. There are merely improvements being made to the signposting slip, so that we comply with our obligations under the GDPR. We continue to provide guidance to customers, signposting them to emergency support, as is right.
Gordon Henderson (Sittingbourne and Sheppey) (Con)
Mel Stride
I thank my hon. Friend for raising this matter. I obviously cannot comment on an individual case. However, I am very happy to look closely into the matter he has raised, and either I or a relevant Minister will be happy to meet him.
Andrew Bridgen (North West Leicestershire) (Ind)
The number of the long-term sick has risen from 2.1 million pre-pandemic to 2.8 million today. This huge increase started in spring 2021, at the same time as the roll-out of the experimental, emergency-use vaccines—or does the Secretary of State have an alternative explanation for the unprecedented rise in long-term sickness in the UK since spring 2021?
Mel Stride
Among the major drivers of the increase to which the hon. Gentleman refers are mental health issues and musculoskeletal issues. I am not entirely sure that he is accurate when he says that the upward trajectory in the number occurred just as vaccination occurred—I think it predated that moment—and I certainly do not subscribe to the view that vaccination is in any way unsafe.
Neil O’Brien (Harborough) (Con)
Jo Churchill
I thank my hon. Friend, but I would like to inform him that at the moment there are no plans to recommence the publication of those statistics.
Mike Amesbury (Weaver Vale) (Lab)
The last Labour Government lifted 1 million children out of poverty. After 14 years of Tory Government, we have 1 million children in destitution. What has gone wrong?
Mel Stride
I have to take issue with the hon. Gentleman. He needs to look more closely at his party’s record in government. Fact No. 1 is that the Labour party always leaves office with higher unemployment. Fact No. 2 is that economic inactivity in our country is lower than in any year in his party’s time in office. Fact No. 3 is that absolute poverty has declined in our country since his party was in office. Fact No. 4 is that there were more children in workless households on his watch than there are on ours. Perhaps most tellingly of all, during his party’s time in office, over 1 million people languished on long-term benefits for almost a decade. That is a disgraceful record.
Bob Blackman (Harrow East) (Con)
Jo Churchill
I thank my hon. Friend for that question. I would ask people to go to their jobcentre, which can help them build their CV and their confidence. We have 50PLUS champions across all districts, and midlife MOTs. I for one think that working in my 50s—and now my 60s—is a very good idea indeed.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
The two wellbeing hubs in my constituency, in Brora and Dunbeath, are crucial to the wellbeing of pensioners. They signpost the best mix of benefits and are a last safety net, but their future is uncertain because of the vagaries of NHS Scotland finance. Will a Minister meet me to discuss how we can safeguard the future of these two centres?
The Parliamentary Under-Secretary of State for Work and Pensions (Paul Maynard)
I am always happy to have a debate with the hon. Gentleman. We sit next to each other almost every morning in Portcullis House, and I am sure that we can have a conversation.
Rob Butler (Aylesbury) (Con)
Aylesbury is a wonderful place to live, work, visit and invest in, but sadly we have some areas of economic deprivation. Opportunity Bucks, run by Buckinghamshire Council, has identified Aylesbury north and Aylesbury north-west as areas for extra attention, where we could improve education, training and skills. How can my hon. Friend’s Department assist such initiatives in getting more Aylesbury residents into work?
Jo Churchill
We are working with employers and jobcentres on the sector-based work academies programme and boot camps, but I am more than happy to visit my hon. Friend in Aylesbury, and to talk to his jobcentres and employers, to see how we can provide more encouragement.
Points of Order
(8 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
Dehenna Davison (Bishop Auckland) (Con)
On a point of order, Mr Speaker. Over the weekend, I saw on social media that a number of Labour Members had the good judgment to visit the beautiful Bishop Auckland constituency, and while I am grateful to the one Member who gave me notice of their visit, that was in stark contrast to the four Members—the right hon. Member for Ashton-under-Lyne (Angela Rayner), and the hon. Members for Washington and Sunderland West (Mrs Hodgson), for Blaydon (Liz Twist), and for Newcastle upon Tyne North (Catherine McKinnell)—who did not have the good judgment to follow your advice, Mr Speaker, and notify me as the sitting MP. I have let them know of my intention to raise this issue in the Chamber today. Could you advise the House once again on how we can ensure that Members give notice of a visit to another Member’s constituency?
Mr Speaker
I am grateful to the hon. Member for giving me notice of this point of order and informing the Members concerned. The courtesies apply to any visits made in an official capacity. I know that election fever has taken over, but I remind the House once again that, as I said on 29 November and 22 January, when a Member intends to visit another constituency other than in a private capacity, they should make every reasonable effort to inform the Member representing that constituency. Boundary changes do not take effect until the next election, and in the meanwhile we must observe the convention of not involving ourselves with other Members’ constituencies. I have had complaints from Members on both sides of the House. Please do the right thing and stick to the conventions that we expect each other to follow.
Rushanara Ali (Bethnal Green and Bow) (Lab)
On a point of order, Mr Speaker. On Thursday 14 March, during business questions, in response to a question from the hon. Member for Colne Valley (Jason McCartney) about council spending, the Leader of the House said that Labour had a “legacy” of “vote-rigging” in Tower Hamlets. That is a false claim. I wonder if the right hon. Lady got her parties confused, as there was a widely reported case in 2015 in which the Election Commission and Richard Mawrey voided the mayoral election of 2014 under the Representation of the People Act 1983 on the grounds of corrupt and illegal practices, but that related to the activities of a party named Tower Hamlets First, and had nothing to do with Tower Hamlets Labour party or the national Labour party. Can you offer advice, Mr Speaker, on whether and when the Leader of the House can come to the House to set the record straight?
The Leader of the House of Commons (Penny Mordaunt)
Further to that point of order, Mr Speaker. I take such matters extremely seriously, and in the past when I have misspoken or got a fact wrong, I have corrected the record. However, if I am guilty of anything in our exchange last Thursday, it is of underplaying the situation. The incident that the hon. Lady refers to did indeed involve an independent politician, although backed by Ken Livingstone. However, in the year 2018 alone, there were 40 new cases of corruption under the then Labour Mayor John Biggs, and the incident I referred to was Labour’s legacy because just a few weeks ago, Government inspectors were called in again to investigate Tower Hamlets. I fully understand it if the hon. Lady does not want to take my word for it, so I direct her to a letter written to her party’s national executive committee in 2016 about a local selection. It was written on behalf of members of the local Labour party. It said:
“on behalf of a number of distressed members the Tower Hamlets Labour Party who have been victims of intimidation, bullying, harassment and blackmailing by members of John Biggs’ campaign team; some of whom are senior and leading figures of the local Labour Party”.
If she looks up the letter and sees who is signatory to it, she may be more persuaded.
Supply and Appropriation (Anticipation and Adjustments) Bill
Motion made, and Question put forthwith (Standing Order No. 56), That the Bill be now read a Second time.
Question agreed to.
Bill accordingly read a Second time.
Question put forthwith, That the Bill be now read the Third time.
Question agreed to.
Bill accordingly read the Third time and passed.
Safety of Rwanda (Asylum and Immigration) Bill (Programme) (No. 2)
Motion made, and Question put forthwith (Standing Order No. 83A(7)),
That the following provisions shall apply to the Safety of Rwanda (Asylum and Immigration) Bill for the purpose of supplementing the Order of 12 December 2023 (Safety of Rwanda (Asylum and Immigration) Bill: Programme):
Consideration of Lords Amendments
(1) Proceedings on consideration of Lords Amendments shall (so far as not previously concluded) be brought to a conclusion at 8.00pm at today’s sitting.
Subsequent stages
(2) Any further Message from the Lords may be considered forthwith without any Question being put.
(3) Proceedings on the first of any further Messages from the Lords shall (so far as not previously concluded) be brought to a conclusion two hours after their commencement.
(4) Proceedings on any subsequent Message from the Lords shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement.—(Aaron Bell.)
Question agreed to.
Safety of Rwanda (Asylum and Immigration) Bill
Monday 18th March 2024
(8 months, 1 week ago)
Commons ChamberRead Full debate Safety of Rwanda (Asylum and Immigration) Act 2024 View all Safety of Rwanda (Asylum and Immigration) Act 2024 Debates Read Hansard Text Watch Debate Amendment Paper: Commons Consideration of Lords Amendments as at 18 March 2024 - (18 Mar 2024)
19:58 - The House divided: - Ayes: 328 / Noes: 250 - Question accordingly agreed to.
20:13 - The House divided: - Ayes: 324 / Noes: 253 - Question accordingly agreed to.
20:25 - The House divided: - Ayes: 324 / Noes: 253 - Question accordingly agreed to.
20:37 - The House divided: - Ayes: 321 / Noes: 252 - Question accordingly agreed to.
20:48 - The House divided: - Ayes: 322 / Noes: 249 - Question accordingly agreed to.
20:59 - The House divided: - Ayes: 324 / Noes: 251 - Question accordingly agreed to.
21:11 - The House divided: - Ayes: 320 / Noes: 250 - Question accordingly agreed to.
21:23 - The House divided: - Ayes: 318 / Noes: 255 - Question accordingly agreed to.
21:35 - The House divided: - Ayes: 320 / Noes: 251 - Question accordingly agreed to.
21:46 - The House divided: - Ayes: 312 / Noes: 255 - Question accordingly agreed to.
Mr Speaker
I can confirm that none of the Lords amendments engage Commons financial privilege.
Clause 1
Introduction
The Minister for Countering Illegal Migration (Michael Tomlinson)
I beg to move, That this House disagrees with Lords amendment 1.
Mr Speaker
With this it will be convenient to discuss Lords amendments 2 to 10, and Government motions to disagree.
Michael Tomlinson
This Bill is an essential element of our wider strategy to protect our borders, and to stop the boats to prevent the tragic loss of life at sea caused by dangerous, illegal and unnecessary crossings of the channel. There are 10 Lords amendments. First, I turn to amendment 1. It implies that the legislation is not compliant with the rule of law, but I can confirm that it is. I do not accept that the Bill undermines the rule of law, and the Government take our responsibilities and international obligations incredibly seriously. There is nothing in the Bill that requires any act or omission that conflicts with our international obligations.
Stella Creasy (Walthamstow) (Lab/Co-op)
The Minister will understand that many of us are deeply concerned that the Bill undermines the Good Friday agreement. He has told us previously that it does not, but he will also know that the Irish Parliament has been considering this matter. Indeed, on 20 February, the Irish Prime Minister admitted that the Irish Government were concerned and were following this debate closely. For the avoidance of doubt, can the Minister tell us when the UK Government consulted the Irish Government about this legislation, and about our obligations under the Good Friday agreement? What was the outcome of that consultation?
Michael Tomlinson
I am concerned with this Government and this Parliament. As for our obligations, nothing in the Bill requires any act or omission that conflicts with our international obligations. In fact, this Bill is based on compliance by both Rwanda and the United Kingdom with international law in the form of a treaty that recognises and reflects the international legal obligations of both the United Kingdom and Rwanda.
Jim Shannon (Strangford) (DUP)
At least the Minister responds to our questions and tries to address the issues. The last time I asked a question on this matter, he tried to answer it, but the fact is that because of Northern Ireland’s border with the Republic of Ireland, it has special circumstances. We were reassured then about Northern Ireland’s circumstances; the hon. Member for Walthamstow (Stella Creasy) referred to the Good Friday agreement, which is one example, but there is also the matter before us. Can the Minister confirm that the concerns that the Democratic Unionist party put forward in our last debate on this issue have been taken on board? We do not see that from the legislation before us tonight, and if we do not see that, it will be hard for us to support the Government.
Michael Tomlinson
I do recall our earlier exchange across the Chamber, and the hon. Gentleman may know of my exchange with his hon. Friend the Member for Belfast East (Gavin Robinson) and the subsequent correspondence. The Government continue to believe that there is no incompatibility between the Bill and article 2 of the Windsor framework. I know the hon. Gentleman has been concerned about that, but I hope he was reassured by some of the details set out in the letter.
Sammy Wilson (East Antrim) (DUP)
I must say I am surprised that the Government are not concerned about the clash between the Bill and article 2 of the Windsor framework and the Northern Ireland protocol, given that the High Court in Belfast has ruled that legislation of this nature cannot apply in Northern Ireland because it is incompatible with the obligation in article 2 to accord with European law.
Michael Tomlinson
I understand the right hon. Gentleman’s concerns, but I repeat that there is no incompatibility between article 2 and the Bill. He is right to cite the judgment, but there is to be an appeal, so it would not be right to debate it further at this stage. The Government’s position on this point is very clear, as set out in previous exchanges and also in the letter that is now in the House of Commons Library.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
Rwanda cannot be deemed a safe country for refugees simply as a result of a unilateral declaration by the Government in the face of the courts and other independent organisations that have proved the contrary to be the case. But let me get this straight: it will cost nearly £600 million for just 300 refugees to be sent on a plane to Rwanda, which amounts to an eye-watering £2 million cost per person to the public purse. Does the Minister agree that that is precisely why this political gimmick of a Rwanda Bill is extortionate, unethical, unworkable and unlawful?
Michael Tomlinson
I disagree entirely with all the points that the hon. Gentleman has made; I know that he is patient, and he will hear me respond to each and every one.
Kevin Foster (Torbay) (Con)
Like me, the Minister has always believed that immigration should be dealt with on a UK rather than a Great Britain basis, for obvious reasons. Given the comments that we have just heard, does he agree that there is plenty of precedent within our own law for deeming certain claims for certain citizens inadmissible? That has applied to the EU, and surely it is not a problem to extend it further, because we already have the principle that we can say a claim is inherently unfounded when a country is clearly safe.
Michael Tomlinson
I agree entirely with my hon. Friend, who speaks with great experience and authority. He will be aware of other instances in which we have legislated and continue to legislate, and have deemed countries to be safe.
Richard Graham (Gloucester) (Con)
My right hon. and learned Friend is making a good case for the importance of the Bill and the irrelevance of the amendments offered by the other place to what we are trying to achieve. Does he agree that when people criticise the Bill on the ground of the cost of sending people to Rwanda, they entirely miss the point that this will act as a huge disincentive to people in families and communities, predominantly in the middle east, who fundraise vast sums of money in order for their children to arrive here in the UK and not end up in east Africa? Does he also agree that the accusations based on cost hugely underestimate the actual cost of housing current illegal immigrants in hotels across the country?
Michael Tomlinson
My hon. Friend is entirely right on both counts. I will develop the point about the deterrent effect in a few moments, because it is a point that is missed repeatedly by the Labour Members. He is also right about the cost, and the cost of not acting—not least the human cost of not acting.
Several hon. Members rose—
Michael Tomlinson
I am going to make some progress now.
The Bill is based on the compliance of both Rwanda and the United Kingdom with international law in the form of the treaty, which itself reflects the international legal obligations of both the UK and Rwanda. Along with other countries with similar constitutional arrangements to ours, we have a dualist approach; international law is treated as separate to domestic law, and international law is incorporated into our law by Parliament, through legislation. This Bill reflects the fact that Parliament is sovereign and can change domestic law as it sees fit, including, if it is Parliament’s judgment, by requiring a state of affairs or facts to be recognised. That is the central feature of the Bill, and many other provisions are designed to ensure that Parliament’s conclusion on the safety of Rwanda is accepted by the domestic courts.
The treaty sets out the international legal commitments that the UK and Rwandan Governments have made, consistent with their shared standards associated with asylum and refugee protection. We have made it abundantly clear that we assess Rwanda to be a safe country, and that we are confident in the Government of Rwanda’s commitment to the partnership in order successfully to offer safety and protection to those relocated under the treaty.
I am unable to accept Lords amendment 2 as is it simply not necessary. Rwanda has a long and proud history of supporting and integrating asylum seekers and refugees into the region. The Government of Rwanda, the African Union and the United Nations High Commissioner for Refugees signed an agreement to continue the operations of the emergency transit mechanism centre in Rwanda, which temporarily accommodates some of the most vulnerable refugee populations, who have faced trauma, detentions and violence. Rwanda has showcased its willingness and ability to work collaboratively to provide solutions to refugee situations and to crises.
It is worth reflecting on the policy statement and some of the evidence that has been put forward in relation to this debate and previous debates, because there it is clear that the EU has announced a €22 million support package to the emergency transit mechanism. The ambassador has said that it
“is a crucial life-saving initiative to evacuate people…to safety in Rwanda. It is a significant example of African solidarity and of partnership with the European Union.”
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
The point the Minister has not mentioned is that the European scheme is voluntary. Are the Government intending the same sort of parameters within this scheme?
Michael Tomlinson
On the safety of Rwanda, the ambassador was very clear about his assessment; I am going to continue reading the quote, but there are others. There are more than 135,000 refugees safely in Rwanda and being looked after. The ambassador went on to say:
“We are grateful to the Government of Rwanda for hosting these men, women and children until such time, durable solutions can be found.”
There is evidence of the safety of Rwanda.
Yasmin Qureshi (Bolton South East) (Lab)
The Minister says that he is accepting the word of the Rwandan Foreign Minister that the country is safe, yet our judges in the highest court of our country have decided that Rwanda is not safe—so is our Minister saying that the highest judges in our land are wrong?
Michael Tomlinson
No. Respectfully, I encourage the hon. Lady to listen to the debate, because I read out the words of the EU’s ambassador, not of any representative from Rwanda. That is a powerful independent voice, which is why I cite it here in this Chamber.
The implementation of all measures within the treaty will be expedited. Indeed, since our previous debate on this matter, the legislation required for Rwanda to ratify the treaty has passed through both Houses of the Rwandan Parliament. Once ratified, the treaty will become law in Rwanda. The implementation of these provisions in practice will be kept under review by the independent monitoring committee, whose role was enhanced by the treaty and which will ensure compliance with the obligations as agreed.
Kevin Foster
Does the Minister recall that the Supreme Court judgment hinged on the issue of refoulement and not on whether or not refugees were safe in Rwanda? It might benefit some to have listened to its judgment.
Michael Tomlinson
I am grateful indeed to my hon. Friend; I will turn to refoulement and non-refoulement, and that important issue, which is exactly the basis of the Supreme Court judgment, and how we have met it through evidence from subsequent to the time when the Supreme Court was looking at the facts on the ground.
The implementation of these provisions in practice will be kept under review by the independent monitoring committee. As is stated clearly in clause 9 of the Bill, the provisions will come into force when the treaty enters into force, and the treaty enters into force once the parties have completed their internal procedures.
The Bill’s purpose is to make it clear that Rwanda is safe generally and that decision makers, as well as courts and tribunals, must conclusively treat it as such. The amendment as drafted would open the door to lengthy legal challenges, which will delay removal. It therefore follows that I cannot support the amendment. We are confident in the Government of Rwanda’s commitment, and I am clear that Rwanda is a safe country.
I turn to Lords amendment 3, which is also unnecessary. The Government will ratify the treaty only once we agree with Rwanda that all necessary implementation is in place for both countries to comply with the obligations under the treaty. As I said, the legislation for Rwanda to ratify the treaty has now passed through both Chambers of the Rwandan Parliament. Once ratified, the treaty will become law in Rwanda. It therefore follows that the Government of Rwanda would be required to give effect to the terms of the treaty in accordance with their domestic law as well as in international law.
In relation to the monitoring committee, it was always intended that the committee be independent to ensure a layer of impartial oversight over the operation of the partnership. Maintaining that committee’s independence is an integral aspect of the policy’s design. The treaty enhances the role of the previously established independent monitoring committee and will ensure that obligations to the treaty are adhered to in practice. The details of the monitoring committee are set out in article 15 of the treaty, and it, in turn, will report to a joint committee made up of both United Kingdom and Rwandan officials.
There will be daily monitoring of the partnership for at least the first three months—the enhanced period of time—to ensure rapid identification and response to any shortcomings. The enhanced phase will ensure that there is comprehensive monitoring and reporting and that that takes place in real time. The amendment risks disturbing the independence and impartiality of the monitoring committee and therefore should be resisted.
I turn to Lords amendments 4 and 5, and the issue of Rwanda’s safety. We have already touched on this, but it is clear that the Bill’s purpose is to respond to the Supreme Court’s concern and enable Parliament to confirm the status of Rwanda as a safe third country to enable removal of those who arrive in the United Kingdom illegally. To the point made by my hon. Friend the Member for Torbay (Kevin Foster), it is the treaty, the Bill and the published evidence pack that together demonstrate that Rwanda is safe for relocated individuals and that the Government’s approach is tough but fair and lawful. The Government are clear that we assessed Rwanda to be safe, and we have published evidence to substantiate that point.
Joanna Cherry (Edinburgh South West) (SNP)
With reference to the point made by the hon. Member for Torbay about the basis of the Supreme Court’s decision, I am sure that, like me, the Minister will have read the decision carefully. Does he agree that paragraphs 75 to 105 make it clear that there were three reasons for the Supreme Court’s decision? It was based on evidence: first, about the general human rights situation in Rwanda; secondly, about the adequacy of Rwanda’s current asylum system; and thirdly, about Rwanda’s failure to meet its obligations in a similar agreement regarding asylum seekers with Israel in 2013. Will he tell me what has happened since the Supreme Court’s decision to improve the general human rights situation in Rwanda? He will be aware that the Home Office published a 137-page document dated January this year detailing concerns about human rights in Rwanda.
Michael Tomlinson
In fact, that document supports the Government’s position, because the evidence put forward is balanced. The accusations from Opposition parties that somehow partisan evidence has been put before the Chamber are completely wrong and are refuted by the hon. and learned Lady’s own point. She, as Chair of the Joint Committee on Human Rights, has just been to Rwanda to see for herself—we had an exchange on that last week—and I look forward to her Committee’s report. The answer is the treaty, the Bill and the published evidence pack. In the Bill is the conclusive presumption that Rwanda is generally a safe country.
Joanna Cherry
My question was this: in January this year, the British Government, through the Home Office, published a 137-page document about the human rights situation in Rwanda, detailing serious concerns from such august bodies as the US State Department about the protection of human rights on the ground in Rwanda, so what has changed since the Home Office published that note in January? The Minister has not answered that question. If he cannot answer it, then this House cannot say that Rwanda is a safe country.
Michael Tomlinson
The answer is that the hon. and learned Lady must not cherry-pick her evidence. The evidence must be looked at in the round. As I say, it is the treaty, the Bill and the published evidence together. The hon. and learned Lady may not have confidence in our international partners to abide by their treaties, but this Government do. The Government of Rwanda will abide by their treaty.
Michael Tomlinson
I will not give way. There is a conclusive presumption in the Bill that Rwanda is generally a safe country. There is a series of facts reinforced by statute. The courts have not concluded that there is a general risk to the safety of relocated individuals in Rwanda. Rather, as we have repeatedly set out, the treaty responds to the Supreme Court’s findings. The assurances we have had, since negotiated in our legally binding treaty with Rwanda, directly address the findings. They make detailed provision for the treatment of relocated individuals in Rwanda, ensuring that they will be offered safety and protection with no risk of refoulement. Respectfully, that responds directly to the points that were raised.
Dr Luke Evans (Bosworth) (Con)
Is the Minister aware of the United Nations High Commissioner for Refugees’ comments? It says:
“UNHCR will build on the favourable protection environment through continued advocacy and technical support to”
the Government of Rwanda. It goes on to say that it is moving from a humanitarian approach to a developmental approach, so that people will be able to have the chance of a livelihood and a safe environment to build their life for the future. Is this not exactly what Rwanda want to put across to people who find themselves there?
Michael Tomlinson
My hon. Friend proves the point I just made, that it is the evidence in the round that must be considered. I am grateful to him for drawing that to Parliament’s attention.
Michael Tomlinson
I have given way twice to the hon. and learned Lady, so I will make progress. We have been clear that the purpose of this legislation is to stop the boats, and to do that we must create a deterrent. That goes to the point of my hon. Friend the Member for Gloucester (Richard Graham).
Michael Tomlinson
I have already given way to the hon. Gentleman, so I will make progress.
That shows that if you enter the United Kingdom illegally, you will not be able to stay. We cannot allow systematic legal challenges to continue to frustrate and delay removals. Those Opposition Members who support this amendment do not mind if there are continuing legal challenges that frustrate and delay removals, but we on this side are not supporting the amendments. It is right that the scope for individualised claims remains limited.
Michael Tomlinson
No, I am going to move on to amendment 6.
Amendment 6 seeks to enable United Kingdom courts and tribunals to grant interim remedies. As I have previously stated, one of the core principles of the Bill is to limit the challenges that can be brought against the general safety of Rwanda. This amendment completely undermines the purpose of the Bill and is not necessary.
Mr Dhesi
I thank the Minister for giving way. The Rwanda plan will not work as the deterrent that Ministers claim it will, not least because it will only account for less than 1% of all those seeking to cross the channel irregularly. Where is the plan for the other 99%? Will the Minister concede that instead of fixing their broken asylum system, the Conservatives have spent an eye-watering £5.4 billion on this, including over £4 billion on asylum hotels and accommodation? That is what is at the crux of the matter, and that is what they need to resolve.
Michael Tomlinson
On deterrence, which I think was the thrust of the question, the Albania scheme brought into effect by the Prime Minister back in December 2022 proves the deterrent effect. Crossings on small boats by those from Albania were down 90% as a result of that agreement. That shows the deterrent effect.
Lords amendment 6 completely undermines the purpose of the Bill. It is unnecessary because the Bill already contains appropriate safeguards to allow decision makers and the courts to consider claims of an individual person in particular circumstances, if there is compelling evidence.
Jim Shannon
The House will know that I am the chair of the all-party parliamentary group for international freedom of religion or belief. The people who go through the system and go to Rwanda need to have their religious beliefs protected, whether they be Christians, or belong to other religions or no religion. My concern is that when they get to Rwanda, that protection may not be as strong as that which they have here. Can the Minister give some assurance that people’s religious beliefs will have the same protections?
Michael Tomlinson
I know how seriously the hon. Gentleman takes this important issue. There is a policy of non-discrimination in the Rwandan constitution, which will provide some reassurance. The monitoring committee is also there on a daily basis. I am grateful to the hon. Gentleman for raising that point. We have made it clear that we cannot continue to allow relocations to Rwanda to be frustrated and delayed as a result of systemic challenges on general safety.
On amendment 7, we need a strong deterrent to stop people putting their lives at risk by crossing the channel. While creating that deterrent, it is important that the Government take decisive action also to deter adults from claiming to be children.
Mrs Natalie Elphicke (Dover) (Con)
My right hon. and learned Friend is right that it is essential that protections are in place to ensure that adults do not masquerade as children, to safeguard all those concerned. However, he will be aware, as was raised in the Lords, that the age assessment criteria were to be introduced in 2022—[Interruption.] My right hon. Friend the Member for Witham (Priti Patel) and my hon. Friend the Member for Torbay (Kevin Foster) agree. The criteria still have not come into effect at the border in Dover and Manston. Will the Minister assist the House by explaining how there can be confidence about age assessment and how it can be gamed if the amendment is agreed?
Michael Tomlinson
I noted some vigorous nodding from my right hon. Friend the Member for Witham (Priti Patel) and my hon. Friend the Member for Torbay (Kevin Foster). My hon. Friend is right that we need to introduce scientific age assessments. Our European and international friends and allies do so, and we must get that scheme up and running. There is nothing in amendment 7 that directly affects that or the 2022 policy, so I encourage her to be reassured on that point. I will take away her encouragement to expedite that and I am grateful for her intervention, because she is right.
My hon. Friend anticipated my point that assessing age is inherently difficult and there are obvious safeguarding risks if adults purporting to be children are placed in the care system. It is important that we take clear steps to deter adults from claiming to be children and to avoid lengthy legal challenges to age-assessment decisions to prevent the removal of those who have been assessed to be adults. However, the amendment would result in treating differently those who are to be removed to Rwanda from those removed to another country. We consider the provisions in place entirely necessary to safeguard genuine children and to guard against adults who seek to game the system by purporting to be children.
On Lords amendment 8, the House will be aware that the Home Office regularly publishes statistics on migration levels in the United Kingdom. It is not necessary to report the number of removals to Parliament in the manner proposed. We do not consider an obligation to report to Parliament on operational matters to be appropriate.
Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
Reverting to the previous amendment on the facts that Parliament should be given, can the Minister confirm the reports in the paper that the Home Office is now seeking to pay people to go to Rwanda in order to fill the flights? Can he also confirm that if people take up that Home Office proposal, they will be subject to exactly the same very substantial payments to the Rwandan Government? Will they also be covered by the capacity questions in the treaty?
Michael Tomlinson
Respectfully, that is not directly relevant to amendment 8. The answer to the question on voluntary removals is yes, this will happen in exactly the same way. There have been voluntary removals—including 19,000 last year—all the way back to the dawn of time or possibly before. There is nothing new. The novel part is that there will be voluntary removals to Rwanda; that is absolutely right. Specifically in relation to amendment 8, it is not necessary to report the number of removals to Parliament and we do not consider obligations to report to Parliament to be appropriate.
Michael Tomlinson
I am going to continue.
Amendment 9 would act to impede provisions already recently passed in the Nationality and Borders Act 2022 and the Illegal Migration Act 2023. The amendment is unnecessary. It is important to be clear that the Government of Rwanda have systems in place to safeguard relocated individuals with a range of vulnerabilities, including those concerning mental health and gender-based violence. Furthermore, under article 13 of the treaty, Rwanda must have regard to information provided about relocated individuals relating to any specific needs that might arise as a result of their being a victim of modern slavery or human trafficking, and must take all necessary steps to ensure that those needs are accommodated.
In relation to amendment 10, the Government greatly value the contribution of those who have supported us and our armed forces overseas. That is why there are legal routes for them to come to the United Kingdom. It remains the Government’s priority to deter people from making dangerous and unnecessary journeys to the United Kingdom. Anyone who arrives here illegally should not be able to make the United Kingdom their home and eventually settle here. A person who chooses to come here illegally, particularly if they have a safe and legal route available to them, should be liable for removal to a safe country.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The Minister seemed to try to brush over some of the costs involved. Is he aware that Virgin Galactic can send six people into space for less than this Government want to spend sending one person to Rwanda? Is it not time to rethink this absurd policy and its extortionate costs?
Michael Tomlinson
We had a debate on Thursday on the costs of the scheme and not a single Labour Back Bencher was there. There was only the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), who proposed the debate, and the shadow Minister. Of course, I do not treat the right hon. Lady as an ordinary Back Bencher, because she is the Chair of the Home Affairs Select Committee. It was her debate, and not a single other Labour Back Bencher was there. That shows the lack of priority that Labour Members give to this matter.
In relation to amendment 10, section 4 of the Illegal Migration Act, passed last year, enables the Secretary of State, by regulations, to specify categories of persons to whom the duty to remove is not to apply, whether temporarily or permanently. For those who are not in scope of the IMA, the Home Secretary has discretion to consider cases on a case-by-case basis where circumstances demand it. I want to reassure Parliament that once the UK special forces and Afghan relocations and assistance policy review has concluded, the Government will consider and revisit how the IMA and removal under existing immigration legislation will apply to those who are determined to be eligible as a result of the review, ensuring that those people receive the attention that they deserve. The Government recognise the commitment and the responsibility that come with combat veterans, whether our own or those who showed courage by serving alongside us, and we will not let them down.
The Bill and the legally binding treaty will make it clear that Rwanda is a safe country to which we can swiftly remove those who enter the United Kingdom illegally. It addresses the factual concerns identified by the Supreme Court. It provides for clear, detailed and binding obligations in international law on both parties. It will prevent systematic legal challenges about the safety of Rwanda from frustrating and delaying removals. As my hon. Friend the Member for Gloucester (Richard Graham) set out, it provides a strong deterrent and a clear message to illegal migrants and criminal gangs that if people come to this country by unlawful means, they will not be able to stay.
Stephen Kinnock (Aberavon) (Lab)
I rise to speak in favour of all 10 of the Lords amendments that are before us today. They each serve to make this shambolic mess of a Bill marginally less absurd and, as I will come to in a second, they would serve only to put in statute what Ministers have promised from the Dispatch Box. Not one of the amendments is designed to prevent the departure of flights to Rwanda, as the Prime Minister has repeatedly and wrongly implied.
We all want to end the Tory small boats chaos, and I am proud that the Labour party has consistently put forward a smart, pragmatic and sensible plan to do so, starting by going after the criminal smuggler gangs at source through a new cross-border police unit and a new security partnership with Europol. However, this Bill and the treaty that accompanies it will not contribute in any way to achieving that aim.
Dr Evans
Since 2020, we have seen 82 gangs disrupted and more than 400 people arrested because of the actions of this Government. I am keen to understand Labour’s idea about smashing the gangs. How much more would that cost, and what would it look like as a total percentage of numbers?
Stephen Kinnock
We will eradicate the activity of the criminal smuggler gangs by having a proper security partnership with our European partners and allies. I remind the hon. Gentleman that his party has spent the last eight years trashing and destroying our relationships with our European partners and allies. What we would have with a Labour Government is a basis of trust to get the results that we need to see for the British people—that is what sovereignty is all about.
The entire Rwanda debacle has absorbed a vast amount of time, energy and money that should instead have been focused on taking back control of our border security from the criminal gangs who trade in human misery. Let us not forget that more than 100,000 asylum seekers have crossed in small boats since 2020, with 40,000 arriving on this Prime Minister’s watch alone. The chaos must end, and this Government are clearly unable to restore order at the border, so it is time for them to get out of the way so that Labour can get the job done.
Before I get into the substance of the amendments, I would like to pay tribute to the noble Members of the other place, who tabled them. In so doing, they were fulfilling their constitutional, democratic and patriotic duty by scrutinising and seeking to amend the Bill, just as they would with any other piece of legislation that comes before them. They have not been intimidated or sidetracked by the Prime Minister’s mistaken assertion that the Bill should have some kind of special status or treatment, which would somehow allow Ministers to railroad it through Parliament and to drive a coach and horses through Britain’s long-standing democratic conventions. Indeed, this profoundly dismissive attitude has manifested itself in the way in which the Government have point blank refused to engage with the Lords amendments. They have rejected every one of them, rather than seeking to use them and see them as a basis for negotiation and compromise.
Sir William Cash (Stone) (Con)
On amendment 1, is the hon. Gentleman aware that the Constitution Committee of the House of Lords, which has a significant number of Members of the other place, has explicitly stated that it is clear and unambiguous in the words used in the statute that international law gives way to the supremacy and sovereignty of the United Kingdom Parliament? The Committee said that in paragraph 58 of its report, which was published only last year.
Stephen Kinnock
I would remind the hon. Gentleman that the Supreme Court—the highest court of our land —has ruled unanimously and in no uncertain terms that Rwanda is not a safe country to which to send asylum seekers. I know that he is very taken with parliamentary sovereignty, and that is very important, but parliamentary sovereignty must be based on having due regard to the findings of our judiciary. It is to be exercised with caution and moderation, which is why it is so important that our colleagues in the other place have played their role.
Sir William Cash
I am extremely grateful, because this question goes right to the heart of the matter. Paragraph 144 of the Rwanda judgment itself is unequivocal: the President of the Supreme Court ruled to dismiss one of the cases— that of ASM, an Iraqi—on very specific grounds. He said that the consequence of the sovereignty of Parliament with respect to the legislation—the immigration Acts and the Retained EU Law (Revocation and Reform) Act 2023—was that the Court had to dismiss his claim. The supremacy of Parliament prevailed in that judgment for the very reason I have just given, as set out in paragraph 144 under the principle of legality.
Stephen Kinnock
I thank the hon. Gentleman for his intervention, but at the end of the day, we cannot legislate to turn dogs into cats. We cannot legislate for the sky to be green and the grass to be blue. That is a basic tenet of the respect with which our institutions should be treated, and putting this kind of absurd legislation before us is frankly turning our institutions into a laughing stock. I respectfully suggest that the hon. Gentleman keeps that in mind.
Let us be clear: the only special or unique status that can be found in the Rwanda Bill and the treaty that accompanies it is in its extortionate implementation costs, its unlawful nature and its glaring unworkability. Indeed, as I turn to address the details of the amendments, it is important to point out that since the Bill was last debated in this place, even more evidence of the astonishing unaffordability of the scheme has come to light. This failing scheme was already costing the British taxpayer almost £400 million, even though not a single asylum seeker has been sent to Rwanda, but every new detail is more astounding than the last. We recently learned that the first 300 asylum seekers to be sent to Rwanda would cost the British taxpayer an extra £200 million, earning an invoice of £570 million from the Rwandan Government for just 1% of the 30,000 asylum seekers who crossed in small boats last year. That is almost £2 million per asylum seeker. Let that sink in for a moment—£2 million to send just one asylum seeker from the UK to Rwanda, and then another £182,000 per person on top of that. In comparison, processing an asylum seeker in the UK costs just £21,000.
Rushanara Ali (Bethnal Green and Bow) (Lab)
My hon. Friend will be aware of the thousands of asylum seekers who are being dispersed up and down the country, with very little support given to local services. While the Government are obsessing over gimmicks, they are not dealing with the real problems in local communities and supporting those communities to host the people they are dispersing up and down the country. This crisis continues, and the Government need to get a grip on it.
Stephen Kinnock
My hon. Friend is absolutely right that the smoke and mirrors that have been used about clearing the backlog—lots of administrative withdrawals and other ways of just getting people out of the backlog—are being combined with shortening the eviction period, which is leading to a staggering increase in homelessness among those who have been granted asylum. What is happening is frankly a stain on the conscience of our country. A total lack of co-ordination between the Home Office, the Department for Levelling Up, Housing and Communities, and our colleagues in local authorities is leaving those local authorities high and dry.
Sammy Wilson
Although the hon. Gentleman and I might not share many views on this Bill, does he share my surprise that the Government have refused to accept Lords amendment 8, which would require them to report on this Bill’s success? As the Government do not want the number of removals to be reported to Parliament, does he suspect that they know this Bill will not be as effective as they think?
Stephen Kinnock
I thank the right hon. Gentleman for his excellent question. Sometimes the mask slips in the Government’s response to amendments. Perhaps they have decided, very disrespectfully, to refuse to engage on any of the Lords amendments because, exactly as he says, they worry that lifting the lid on this box might show a total failure inside.
Mr Dhesi
The shadow Minister is making an excellent speech. Let us not forget the history: the Tories’ Rwanda Bill is the third new law on channel crossings in just three years. The first law has been partly suspended, because it had so many problems and actually made things worse, and the second Bill has still not been fully enacted. This third Bill is another gimmick costing the public purse £2 million a person. Does my hon. Friend agree that, rather than constantly chasing gimmicks and trying to dupe the British public, the Government finally need to get a grip on the situation?
Stephen Kinnock
I agree with every word my hon. Friend says.
Just imagine if the amount of time, money, resource, energy and political capital burned on this hare-brained Rwanda scheme had been used to do things that might actually deliver, and just imagine if the Government had listened to Labour’s plan for delivering the change we need to see. We might have made some progress and seen things working. By the way, we supported what the Government have done with Albania. Why do we not see more of that, rather than this utterly ridiculous government by gimmick? What a waste of time and money.
The level of waste and this Government’s cavalier attitude to taxpayers’ money are utterly staggering. Where, oh where, is the plan for the remaining 99% of cases that the Government say will be inadmissible? Tens of thousands of people who are now ineligible to be processed and ineligible to claim asylum cannot be sent to Rwanda either. That backlog, the so-called perma-backlog, currently stands at 56,000 people, with most of them living in one of more than 300 taxpayer-funded hotels across the country, costing millions of pounds every single day.
Neil Coyle
My hon. Friend is making a very powerful argument against this Government’s wasteful policy. Is he aware that the £2 million cost of sending each person to Rwanda would cover 67 new police officers or 72 new nurses in my constituency to fix the horrendous backlog created by this shambolic Government?
Stephen Kinnock
My hon. Friend has done his maths on the £2 million. I particularly enjoyed his analogy with the Virgin Galactic spacecraft, which shows that the Rwanda plan is a galactically wasteful policy. He is right that so much of this is about choices and priorities, and the Government’s choices and priorities are simply wrong in wasting valuable taxpayers’ money that would be much better focused elsewhere.
That is why we support Lords amendment 8, a Labour Front-Bench amendment in the name of my noble Friend Lord Coaker. The amendment would require the Government to report on the timetable for removing inadmissible asylum seekers under the Illegal Migration Act 2023. We need to see accountability on the inadmissibility provisions that have created the perma-backlog of 56,000 small boat asylum seekers who are stuck in limbo and are unable to be processed.
If 99% of the people crossing in small boats are not likely to be sent to Rwanda, perhaps the Minister can tell us what will happen to them. Will he admit that, despite all his bluff and bluster, they will simply be let into our asylum system after all? No? The premise of inadmissibility was always that it is a one-way street to limbo and shambles, as my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper), the shadow Home Secretary, and I have continually warned Ministers in this Chamber over the past two years.
Of course, there is an alternative. I hope that Conservative Members have been listening because, for the past 18 months, my right hon. Friend and I have been absolutely clear from this Dispatch Box how Labour will prevent the dangerous and life-threatening channel crossings, and how we will fix our broken asylum system. I have already mentioned how we would redirect the money set aside for the Rwandan Government into a cross-border police unit, an intelligence-sharing security partnership with Europol, in order to smash the criminal smuggling gangs upstream.
Kevin Foster
I thank the shadow Minister for giving way. He says he wants removals to a safe third country. Which one?
Stephen Kinnock
I am very sorry, but would the hon. Member mind repeating that?
Kevin Foster
It is always good to listen to an intervention, but I will repeat it for him. He said that one part of his plan was to remove people to a safe third country. Simply question: if not Rwanda, which one?
Stephen Kinnock
I apologise; I should have said “home country.” I would like to correct the record. It was “home country”. Apologies; I mis-spoke.
Labour’s common-sense, pragmatic plan will smash the business model of the criminal gangs, deter dangerous journeys and tackle the backlog.
With your permission, Mr Speaker, I will now run through the remaining nine amendments from the other place. We support each of them for the reasons I will now set out.
Stephen Kinnock
As I have already said—I do not know if the hon. Member was listening—this is about repurposing the vast quantities of taxpayers’ money that are being squandered on the hare-brained Rwanda plan. The re-channelling of that money will fund the clearance of the backlog, sort out returns and smash the criminal gangs.
I would first like to focus on Lords amendment 10, tabled by the noble Lord Browne, which seeks to exempt individuals who have worked in support of the UK Government or armed forces from removal to Rwanda under the provisions of the Bill. The amendment is driven by a moral imperative: we owe a debt of gratitude to those who have supported our defence, diplomacy and development abroad, not least in Afghanistan. It beggars belief that the Government would even consider sending this cohort of heroes, who are fleeing the Taliban, to Rwanda. Britain’s commitment towards these loyal-to-Britain Afghans is, of course, felt most strongly by our own armed forces, but the Government have continually shirked their responsibilities towards Afghans, including by leaving thousands who have a right to be in the UK stranded in Pakistan for more than a year. It is little wonder that they have resorted to making desperate journeys across the channel. Operation Warm Welcome has become “Operation Cold Shoulder.”
Alexander Stafford (Rother Valley) (Con)
The hon. Gentleman says that he wants more Afghan people to come from Pakistan to the UK. How many more immigrants does he want to come to the UK from Afghanistan?
Stephen Kinnock
The amendment is about stopping them being sent to Rwanda, but let us be absolutely clear: there are many, many Afghans, identified by the Government under the Afghan relocations and assistance policy and the Afghan citizens resettlement scheme, who are languishing in Pakistan. We remember the Prime Minister’s memo to Whitehall saying, “By the way everybody, let’s slow peddle on these Afghans who are in Pakistan and have been identified for resettlement under the ACRS and ARAP.” If the hon. Member wants to know the number, I recommend that he goes to his own Government and asks how many have been identified under ARAP and ACRS.
Rushanara Ali
In my constituency I have met one family in a similar situation. The constituent’s husband had been killed in Afghanistan, but the family were still in limbo because of the delay in decision making. Is my hon. Friend aware that Pakistan is now forcing Afghan asylum seekers back to Afghanistan? There are tens of thousands of people in that situation, some of whom worked to support our forces during the war in Afghanistan.
Stephen Kinnock
My hon. Friend is absolutely right. The scope of Lords amendment 10 is specifically for those who served shoulder to shoulder with our armed forces and in our diplomatic and development efforts in Afghanistan. These are people to whom the United Kingdom owes a debt of honour and a debt of gratitude. I am not sure whether honour is a word that we can apply very easily to those on the Conservative Benches, but that is what this is about.
Lords amendment 9, in the name of the noble Baroness Butler-Sloss, is also based on a moral imperative, as it would prevent the removal of potential victims of modern slavery to Rwanda until they receive a decision from the Government on whether there is credible evidence that the person is a modern slavery victim. It really should go without saying that modern slavery victims should not be sent to Rwanda but, sadly, with this Government, basic moral decency is a scarce commodity.
John McDonnell (Hayes and Harlington) (Lab)
Let me speak to Lords amendments 9 and 10. Those of us who have dealt with trafficked victims and those who served us in Afghanistan feel that there is some loss of moral compass somewhere. Those who served us in Afghanistan, in a whole range of different functions, have only just survived getting out of the country. They have been chased by the Taliban and their families have been harassed. Some of them got to Pakistan and were then threatened with force back over the border again. They have got to us traumatised, and we are going to traumatise them again by sending them to Rwanda. That cannot be right. I cannot believe that any hon. Member who has dealt with such cases could not support these amendments, because it is human suffering in the extreme, and for those who have served us, it is human suffering brought about by their loyalty to us.
Stephen Kinnock
I thank my right hon. Friend for that intervention. He makes the case with passion and conviction. I know that he has a number of asylum seekers and refugees in his constituency and he does a huge amount of work on their behalf. He is absolutely right: there are some issues that should really transcend the day-to-day political considerations that we have in this place, because they are issues that are based on moral imperatives. It is deeply disappointing that, in Lords amendments 9 and 10, the Government have refused even to use them as the basis for negotiation or some kind of compromise. We find that deeply disappointing.
Sammy Wilson
With regard to the earlier question of how many, does the hon. Member not agree that the simple answer is, “All those who served and who risked their lives to help us in a war that required the support of the local population”? We have records of the help and support they gave. Surely we cannot turn our back on those people if they are in danger.
Stephen Kinnock
I thank the right hon. Gentleman for what he has said. What a contrast there is between his intervention and that of the hon. Member for Rother Valley (Alexander Stafford) from the Conservative Benches. I genuinely believe that when the hon. Member for Rother Valley reflects, he will regret making his intervention and perhaps reflect on what the right hon. Gentleman has just said.
We on the Opposition Benches are profoundly concerned about unaccompanied children being inadvertently sent to Rwanda. For this reason, we support Lords amendment 7, in the name of the noble Baroness Lister, which reverses changes to age assessment procedures established by the Illegal Migration Act 2023 in relation specifically to removals to Rwanda. It restores the ability of domestic courts and tribunals to fully consider suspensive judicial review claims regarding removal decisions taken on the basis of age assessment of unaccompanied children.
Lords amendments 1 to 6 all relate to the rule of law. We support all of those amendments, and they are all principles with which Government Ministers have said they agree. Indeed, the simple question that should be asked in relation to each one of these amendments is this: if Ministers believe that Rwanda is a safe country, then why are the Government refusing to support these amendments? They say that the Bill abides by international law, so why not make that clear in the Bill? They say that Rwanda is a safe country and is meeting its obligations, so let us see the evidence and agree a “trust but verify” mechanism. In that spirit, Lords amendment 1 is a Labour Front-Bench amendment that places a responsibility on the Government to comply in full with their current obligations under domestic and international law.
Mr David Jones (Clwyd West) (Con)
Does the hon. Gentleman not accept that amendment 1 is entirely otiose? In terms of compliance with domestic law, the Bill when enacted will be an element of domestic law. In terms of compliance with international law, is it not the case that the Bill is predicated on international law—that is to say, the Rwanda treaty?
Stephen Kinnock
If that is the case, why will Ministers not accept the amendment? Those in the other place, who have a great deal more constitutional expertise than I have, are simply seeking reassurance that our democratic conventions and obligations in relation to alignment with the rule of law will be respected. If that is the case, as the right hon. Gentleman suggests, surely the amendments should be perfectly acceptable to the Government.
Stella Creasy
Perhaps I can help to shed light on this. The Minister has just shown that the Government are not abiding by their international obligations. The Good Friday agreement explicitly commits us to working together—those words are in it—with the Irish Government when it comes to the rights of individuals in Northern Ireland. The Bill will deny rights to individuals in Northern Ireland, yet the Minister admitted that the Government have not even consulted the Irish Government. Does my hon. Friend agree that our word is our bond as a country, and if we show that we cannot be trusted to stand up for international law, it is right that this place demands that the Government put it in the Bill?
Stephen Kinnock
I agree with my hon. Friend, who makes a very clear case. A lot of rhetoric has accompanied the Bill around the European convention on human rights and the United Kingdom’s obligations under international law. The implications of that for the Good Friday agreement are truly chilling. The way in which Government Members are prepared to sabre-rattle, and to use rhetoric in a way that undermines our reliability as a partner that can be trusted to respect our international legal obligations, is frankly shameful and deeply concerning, not least in the case of the Good Friday agreement.
Lords amendments 2 and 3, in the name of the noble Lord Hope, state that Rwanda may be considered a safe country only if and when the measures set out
“in the Rwanda treaty have been fully implemented”
and the monitoring committee has established that that is the case. The Government claim that the measures in the treaty address concerns in the Supreme Court’s recent ruling, so there is absolutely no reason why Ministers should refuse to accept Lord Hope’s amendments.
Lords amendments 4 and 5, in the name of the noble Lord Anderson, state that Rwanda can be considered a safe country unless there is
“credible evidence to the contrary”,
as determined by a court or tribunal. Following the Supreme Court’s ruling, the Government themselves accepted that the situation in Rwanda is not static but evolving, as it is in every country on the face of the Earth. If the Government accept that Rwanda could one day become safer for asylum seekers who are sent there from the UK, they must by definition accept that it could one day deteriorate. Lord Anderson’s amendments simply provide a basis for assessing the situation on the ground in Rwanda and acting accordingly.
Margaret Greenwood (Wirral West) (Lab)
A joint statement signed by over 260 civil society organisations has branded the Bill
“a constitutionally extraordinary and deeply harmful piece of legislation. It threatens the universality of human rights and is likely in breach of international law, striking a serious blow to the UK’s commitment to the rule of law.”
Does my hon. Friend agree that the Bill represents an unethical gimmick that will potentially put very vulnerable people at risk and harm the UK’s reputation on the world stage?
Stephen Kinnock
My hon. Friend is absolutely right. If the amount of time and energy that has been wasted on this madcap Bill, which is also a constitutional outrage, unaffordable, unlawful and unworkable, had been put into addressing some of the challenges that we face in a pragmatic way, just think where we could have got to by today.
Finally, Lords amendment 6, in the name of the noble Baroness Chakrabarti, allows Government Ministers, officials and courts to consider whether Rwanda is safe on a case-by-case basis. Given that the Government have accepted that some appeals will be allowed, we see no reason for them to reject that amendment.
Several hon. Members rose—
Mr Deputy Speaker (Sir Roger Gale)
Order. The Government and Opposition Front Benchers have, perhaps understandably, taken a certain amount of leeway in a broad-brush approach to the debate. Before we proceed, I remind Back Benchers that we are now debating Lords amendments; this is not a Second Reading debate. I call Sir Jeremy Wright.
Sir Jeremy Wright (Kenilworth and Southam) (Con)
Thank you very much indeed, Mr Deputy Speaker. May I begin with an apology to you and others for the fact that I will not be in the Chamber for some part of the debate because of other parliamentary business that I have to attend?
I start my remarks by recalling that the fundamental purpose of the Bill is to locate with Parliament—rather than with decision makers in individual cases or with courts reviewing those cases—the decision on whether Rwanda is a safe country to send people to. A number of the amendments before us would undermine that fundamental purpose by transferring decisions on that question away from Parliament and back to the caseworkers and courts, so they are, I am afraid, wrecking amendments. They are incredibly elegant wrecking amendments, and they come from an honourable and fundamental opposition to the purpose of the Bill—an opposition that I entirely understand.
I confess that I did not find voting for this legislation a comfortable choice. It comes very close to the line on rule-of-law acceptability, but in my view stays just the right side of it. Crucially, it asserts parliamentary sovereignty on an issue of huge political significance, where that issue is central to the delivery of a key Government policy. That significant and central issue is whether the Government of the day are entitled to pursue a policy on illegal immigration that contains an element of effective deterrence, and I think the Government must be able to do that. For a deterrent to be effective, it must be clear. To economic migrants seeking to reach the UK under cover of our asylum system, the deterrent is that they might end up in a different country—in this case, Rwanda. For that deterrent to be meaningful, the prospect of transfer to Rwanda must be a real one that it is not easy to evade, which means that the headline judgment on Rwanda’s safety must be clear to all, subject of course, as it should be, only to persuasive individual circumstances.
I think that approach is worthy of support for two reasons. First, illegal migration is a huge problem, and the Government must be able to pursue innovative solutions to it, especially in the absence of credible alternatives.
Dr Luke Evans
My right hon. and learned Friend is making an excellent point about how we must be innovative. Is that not the reason why other countries are looking at what the UK is doing? The likes of Austria, Germany and Italy have all talked about using third nations because there needs to be a solution to the problem, as he is so eloquently setting out.
Sir Jeremy Wright
I am conscious, Mr Deputy Speaker, not to transgress into Second Reading territory, but I think my hon. Friend is right about that. as our right hon. and learned Friend the Minister has pointed out, other international agencies also make use of Rwanda for these purposes.
Secondly, Parliament is as able as any other body to make judgments about the safety of Rwanda. I am grateful for the information with which we have been provided, including the country information note that was referred to earlier in the debate, which in my view supports the conclusion that Rwanda is safe for the purposes of the Bill. But Parliament’s decision making on the safety of Rwanda must have integrity not just for now, but for the future. I am, I have to say, troubled by what I might describe as the absolutist, if not the eternalist nature of the wording of the Bill, which says that Rwanda is safe and must be taken as such for a variety of purposes, and Parliament’s judgment on that will stand, as far as I can see, until new legislation is passed.
That is why the noble Lord Hope’s amendments—Lords amendments 2 and 3—are interesting, although I cannot support them as they essentially transfer authority to the treaty’s monitoring committee to determine whether Rwanda remains a safe country, based on compliance or otherwise with the treaty. That cannot be right, as the Bill is intended specifically to give Parliament that authority, and Parliament should, in theory at least, retain the option to consider breaches of the treaty and nevertheless conclude that Rwanda remains a safe country for the purposes of the Bill.
Sir Robert Neill (Bromley and Chislehurst) (Con)
My right hon. and learned Friend makes a very powerful point, with which I have much sympathy. Between now and future stages of the Bill, could the Government not think about how they can reconcile that with the legitimate concerns expressed in Lord Hope’s amendments, which I think are fair and honest? Facts change, and if Parliament sets itself up as an arbiter and decider on fact, it must have a means of changing its decision if the facts change, just as anything else would. I say to the Minister that Keynes comes to mind. Can we find a way forward?
Sir Jeremy Wright
My hon. and learned Friend anticipates my conclusion, and I agree with him entirely. In fact, he agrees with me entirely, in advance.
Mrs Elphicke
In light of what my right hon. and learned Friend says, how does he see Parliament’s role in assessing any future breaches of the treaty?
Sir Jeremy Wright
Essentially, Lords amendments 2 and 3—flawed as they are—raise the valid issue of what happens if Rwanda at any point falls below the standards expected of it to justify its safe country status. The Bill would establish in legislation the largely unchallengeable conclusion that Rwanda is a safe country for the purposes of the Bill because Parliament says so, without any mechanism for Parliament to say differently if the facts change—save, presumably, for fresh primary legislation.
Yasmin Qureshi
I see two contradictions, almost, in what the right hon. and learned Gentleman is saying. He talks about the sovereignty of Parliament and whether Rwanda being designated as safe can be changed, but our Supreme Court, the highest court in the land, said after reading all the evidence that Rwanda was not safe. Yes, Parliament is sovereign but it has become almost a dictatorship because this is a bit like saying “Person A was found guilty in a criminal court but because we in Parliament do not like that, that person must be returned to court and be sentenced.” That uses parliamentary sovereignty in a most nonsensical way.
Sir Jeremy Wright
I am afraid I do not accept what the hon. Lady says. First, as the Minister made clear, the Government have not ignored the conclusions of the Supreme Court, which we must remind ourselves were made in 2022: they have responded to those concerns and new information is now available for Parliament to consider. My point is that this is, on the Government’s invitation, for Parliament to decide. It is for Parliament to determine whether we consider that Rwanda is, on the evidence available to us, a safe country. We may all reach different conclusions about that but the premise of this legislation is that, taking into account the concerns the Supreme Court has expressed, it is none the less for Parliament to determine whether Rwanda is a safe country for the purposes of the legislation. But it is simply not sensible for Parliament not to be able to say differently, save through primary legislation, if the facts were to change. We all hope, perhaps expect, that Rwanda will remain a safe place for migrants to go, but if we could guarantee that indefinitely we would not need the treaty the Government worked so hard to secure or the monitoring committee designed to scrutinise compliance with it.
Although the Government are entitled to reject the amendments, they should give some thought to the situation of the Bill, because it breaks new ground by giving Parliament specific authority over a judgment that will bind many but that Parliament cannot easily revise even if it comes to believe that revision is necessary. The treaty and the monitoring of its terms provide a mechanism for Parliament to be alerted to significant changes in compliance, and I ask my right hon. and learned Friend the Minister and his colleagues in the other place to consider how Parliament might be given further scope to engage with that judgment if the need arises. I do appreciate that the Government retain means by which they can revise their judgment of the safety of Rwanda, but the Bill clearly and deliberately transfers the judgment on safety to Parliament. If it is a judgment in Parliament’s name, it must be right for Parliament to retain the capacity to reconsider and if necessary revise it.
Alison Thewliss (Glasgow Central) (SNP)
It remains the position of the Scottish National party that this is an irredeemably awful Bill. We do not support the Rwanda plan; we think it is both an offence to humanity and an egregious waste of public money, particularly at a time when many of our constituents are struggling to feed themselves. I thank the Lords for their work on the Bill and for at least trying to make it in some way better, and we would support all the Lords amendments and what they attempt to do with the Bill.
Lord Coaker’s Lords amendment 1 would add a measure to comply with domestic and international law. That should be basic; any legislation in this place should abide by domestic and international law. It seems ludicrous that we have a Bill before us that does not abide by international and domestic law. It is a bit of a cheek for the Minister to talk about Rwanda abiding by treaties and its loyalties while at the same time the Tories go about the business of undermining the UK’s own international commitments in international agreements that we helped to draft. The European convention on human rights, the refugee convention, the international covenant on civil and political rights and the Council of Europe convention on action against trafficking in human beings, as well as customary international law and domestic laws, are all things we have created here that the Government have set about undermining. It is absolutely ludicrous. It brings into question the Government’s commitment to international agreements, and particularly the European convention on human rights, which underpins so much. We have heard from Members about the significance of some of the legislation to the Good Friday agreement and Scotland’s devolution settlement. The Government see fit to undermine all that through their actions.
Joanna Cherry
I am sure that my hon. Friend will have read the report of the Joint Committee on Human Rights on the Bill. We noted that other nations may be influenced by how the UK treats its international treaty obligations. In particular, we noticed that the Prime Minister of Pakistan has referred to the UK’s Rwanda policy in defence of his country’s decision to expel from Pakistan hundreds of Afghans who had fled from the Taliban regime. Does my hon. Friend agree that it is most regrettable that he can refer to the UK’s cavalier attitude towards international law in support of his own cavalier attitude?
Alison Thewliss
I absolutely agree. Other countries around the world have looked to the UK as an upholder of rights—as a beacon of democracy and human rights— but following this tawdry Bill, we can see other countries looking at the UK’s dissent from international norms that we set up.
Shailesh Vara (North West Cambridgeshire) (Con)
Will the hon. Lady give way?
Alison Thewliss
I will make a little progress, because I am mindful of what Mr Deputy Speaker said about time. I want to touch on the misinformation that the Minister put forward about Rwanda and the United Nations High Commissioner for Refugees. The transit agreements are not the same at all as people being permanently relocated to Rwanda. The UNHCR has mentioned that Norway, Sweden, Canada, France, Belgium, the Netherlands, Finland and the USA have taken people from the transit camps. People have come from 10 countries, including Sudan and Cameroon, to Libya and to the transit camps in Rwanda, and then are being moved on elsewhere. They are not staying in Rwanda permanently. Indeed, reports from the transit camp have highlighted that people have no desire to stay in Rwanda in transit camps, because of the conditions in which they are living, so the Government are not at all talking about the same thing there. They should be absolutely clear on that and not mislead the House with points that suit their arguments.
Lords amendment 2 in the name of Lord Hope of Craighead would ensure that Rwanda could be designated as safe only if the treaty was adhered to. It states that Rwanda
“will be a safe country when, and so long as, the arrangements provided for in the Rwanda Treaty have been fully implemented and are being adhered to in practice.”
Among the Supreme Court’s concerns about the matter was the fact that Rwanda is not yet in a place where it can adhere to all those arrangements in practice. Perhaps it will in future, but it is not safe now. To declare it completely safe in all circumstances right now is a false argument.
Lords amendment 3 would create an obligation on the Government to report to Parliament on the terms of the treaty and how those are being monitored. That is perfectly reasonable. What are the Government afraid of? After all, if they think Rwanda is safe and fine, why do they not want scrutiny of the situation? It needs monitoring. There are continued reports of what the Rwandan-backed M23 rebels are doing on Rwanda’s borders. This legislation is a poor way of gauging safety. It is not flexible or reasonable, and cannot take account of changing circumstances. Circumstances can change rapidly and unexpectedly, but we are legislating to say that Rwanda is safe in all circumstances in perpetuity. That is clearly ludicrous and giving a hostage to fortune; the Government should be aware of that.
Dr Caroline Johnson (Sleaford and North Hykeham) (Con)
The hon. Lady makes the point that things change with time. Does she accept that many measures have been put in place by the UK Government and the Rwandan Government since the judgment of the UK Supreme Court last year?
Alison Thewliss
It is difficult to tell, because scrutiny mechanisms are not in place that would allow Committees of this House to ascertain whether that is entirely the case. The Committee that my hon. and learned Friend the Member for Edinburgh South West (Joanna Cherry) is on has been to visit Rwanda, and she has information about that visit that she hopes to share with the House. I understand that the hon. Member for Sleaford and North Hykeham (Dr Johnson) was on that trip, too, but that is not good enough. There needs to be further, continued scrutiny, and it is important that Parliament has the opportunity for that.
I know from the Chair of the Home Affairs Committee, the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), that even information on the deal has been difficult to come by. Last week, in the Chamber, we discussed the obfuscation and secrecy surrounding the costs of the plan. If this is how the Government are beginning this journey, we can have no confidence—on this side of the House, certainly—that they can be trusted, which is why Lords amendment 3 is so important. The House needs a scrutiny mechanism.
Alison Thewliss
I am conscious of what you said about time, Mr Deputy Speaker, and I should like to make some progress.
In Lords amendment 4, Lord Anderson of Ipswich proposes to add to the words
“Every decision-maker must conclusively treat the Republic of Rwanda as a safe country”
the words
“unless presented with credible evidence to the contrary”.
I agree that evidence is important. If judges and other decision makers are not allowed to make decisions on the basis of evidence, rather than relying on a bit of legislation drawn up in a short period, the Government have zero credibility. They are asking people to blindfold themselves to any other circumstances, and not to heed any evidence or proof. There must be an opportunity for every decision maker to treat the evidence with the due diligence that we would all expect.
Lords amendment 5 would remove the parts of the Bill that state that Rwanda should automatically be considered a safe country; it provides a rebuttal mechanism for the assertion of safety in Rwanda. Liberty says that the amendment corrects
“a deficiency in the Bill whereby Parliament is asked to state that Rwanda is and will continue to be safe, and there is no mechanism by which this can be revisited. This is a moderate safeguard”.
If the Government thought about this fully, they would surely conclude that the amendment would enhance the Bill; but they are, of course, rejecting all amendments, regardless of their source.
Lords amendment 6 effectively restores the power of the courts to make a factual judgment on the safety of Rwanda in an individual case, or for a group of people who share characteristics, such as LGBTQ people. I think it telling that the Minister said that it completely undermined the purpose of the Bill. “Well, good,” is all I can say in response. We should be trying to undermine the purpose of the Bill if its aim is, for example, to ship LGBTQ people off to a country that may not welcome them in all circumstances, without allowing them to check the position first. I think it perfectly reasonable to provide the ability to make judgments of this kind. I recall that at the back of the Illegal Migration Act 2023 was a list of countries with exemptions for particular groups of people—in some cases specifying men or women—but the Bill does not even do that. I think it entirely reasonable for there to be some way of questioning this power in the Bill.
Lords amendment 7, tabled by Baroness Lister, concerns issues related to the age of unaccompanied children, which I consider to be of the utmost importance. The treaty makes provision for what happens if a child somehow mysteriously ends up in Rwanda by mistake, but that only happens if the Home Office has made an error of some kind in sending the child there in the first place. We know from medical professionals that some of the age assessments are effectively pseudo-science. We know that when children have come here, having crossed seas, continents and war zones in very difficult circumstances, it may be more difficult to assess their age, because they have had a much tougher paper round than my son, for example. We also know that not all children look exactly the same or present themselves in exactly the same way, although they may be the same age. We can all remember that when we were at school, there was always some great big guy with a beard and a hairy chest when the others were knee-high to a buttercup.
Alison Thewliss
That is another question, I suppose. The point is that everyone is different. We cannot reliably look at someone and tell their age. The Bill should contain more protections to ensure that children who have already gone through incredibly traumatic experiences are not sent to Rwanda.
Alison Thewliss
As I have said, I am conscious of what we have been told about time. I am sure that if the hon. Lady wants to make a speech on this subject later, we will all listen to it.
Lords amendment 8 adds a mechanism for a report to Parliament. Under the heading
“Removals to Rwanda under the Illegal Migration Act 2023”,
it states:
“Within 60 days of the day on which this Act is passed, the Secretary of State must lay before Parliament a statement”.
Again, that is an important scrutiny mechanism. We in this Parliament should know who is being sent to Rwanda and the timetable for those removals, as this Lords amendment suggests.
Most importantly, proposed new paragraph (c) in amendment 8 deals with the arrangements in place for people not sent to Rwanda. We know that only the tiniest percentage of people who end up here will be sent to Rwanda; it is entirely unrealistic to suggest that more than a few hundred people will ever get sent there, so we need to know what happens to the people who end up in immigration limbo—those who are inadmissible. Where are they? Who looks after them? Where do they live? How do they survive? What do they eat? We need to know what happens to the people this Government are committing to immigration limbo; it is important, and the Government should update Parliament on it. The Minister talked about publishing immigration statistics, but I think we need more than that; this House needs to hold the Government accountable for the people they send to Rwanda, and the people they do not send there.
The point about the timetable of removals is also important, because I am aware of people in Dungavel who are keen to leave the UK, yet the UK Government are taking an age to arrange the mechanisms for them to do so. Even when people want and have reason to go somewhere else, the Government are not facilitating that. Worryingly, the Minister said it was not necessary to report on that to Parliament. I disagree; it is entirely important and necessary to report on that to Parliament, so that we can hold the Government accountable. Again, if they think that this will go so well, surely they will want to tell us how many people they have sent away, rather than about those they have not.
Lords amendment 9 is about victims of modern slavery and human trafficking being removed without their consent. That is a deep concern for many organisations who support people who have been trafficked and have been through absolute hell. It is important that those people are not removed to Rwanda without their consent. Redress has provided a briefing about torture in Rwanda, and it highlights that there have been cases of it. Human Rights Watch’s reports on Rwanda, published in 2023, 2022 and 2021, all include examples of torture. There is list in the Redress briefing that I urge all Members to have a look at, although I will not detain the House with it now.
The briefing highlights that in the Supreme Court case, it was pointed out that
“evidence of human rights violations ‘raises serious questions as to its compliance with [Rwanda’s] international obligations’, since this has occurred despite the country having ratified many international human rights agreements”.
Furthermore, the British Medical Association’s briefing raised concerns about the ability of Rwanda to support those who have been victims of torture. Rwanda is on the list of countries experiencing a healthcare worker crisis; it is on the list of countries that the UK is not supposed to recruit from. Again, that calls into question whether people can be supported when they go to Rwanda. The BMA briefing states:
“Medical reviews of 36 people under threat of removal to Rwanda revealed that 26 displayed medical indicators of having been tortured, with 15 having symptoms or a diagnosis of PTSD and 11 having experienced suicidal thoughts while in detention.”
We are talking about an incredibly vulnerable group, and they deserve specific support. It is important that we recognise that Lords amendment 9 should stay in the Bill
I come to Lords amendment 10, in which Lord Browne of Ladyton proposes a change to protect supporters of the UK armed forces and their families from removal to Rwanda. That is a significant amendment, particularly in the context of Afghanistan. I have talked many times in this House about Afghans, such as the Triples, who supported the UK’s endeavours in Afghanistan and have been despicably left behind. I continue to get regular emails from a woman who was trained by UK forces and worked alongside them in Afghanistan. She is increasingly frustrated and terrified, but most of all she is despondent that the UK has let her down and has not kept the promises that she felt she had been made.
Yasmin Qureshi
On the hon. Lady’s point about the UK letting down people who were working for us and with us, that is all because of this gimmicky legislation, which is designed to appeal to a certain percentage of voters, from a Government who are bankrupt of any real ideas for tackling the real issues of concern in our country. This legislation is just a gimmick.
Alison Thewliss
The hon. Lady is correct: it is a gimmick. It has no basis in fact and there a lot of doubt about whether it will even work, but it appeals to a certain section that the Government think need to be appealed to. It is not so much a dog whistle as a foghorn, but it is definitely there.
To continue with the point about Afghans, the Migration Observatory at Oxford University has pointed out that more Afghans have come by small boats than in any of the UK’s schemes. In fact, between 1 January and 30 June last year, nine times as many Afghans arrived by small boats as under the routes that the Government specifically set up. The ARAP and ACRS are failing to deal with this issue; they are supposed to be safe and legal routes that prevent and dissuade people from getting in small boats, but they do not work. They take too long, they are inefficient, and they do not provide the security that people require to come here, so people take things into their own hands. Who can blame them in the circumstances?
I have seen far too many cases in my constituency. When Afghanistan fell, we had about 80 people in touch who had relatives in Afghanistan, but I know of only a handful who managed to get their family over here. That is despicable. I worry about those people all the time. I do not know where they are, and I do not know whether even their families know where they are. It is telling that so many people will come by small boats because they cannot rely on UK Government schemes to get them here safely.
The Bill is full of contradictions: it is a deterrent, but Rwanda is also safe; it undermines our own obligations internationally and our domestic courts while telling Rwanda that it must keep to its obligations; it is not tough enough for the far-right of the Tory party but too harsh for the more reasonable wing. It is a circus. It is a deflection from a broken Home Office that cannot even get the basics right—that is beset by delays, under investigation by the Information Commissioner’s Office and wasting money hand over fist.
The Rwanda Bill is not Scotland’s values. In Scotland, we see the humanity in people. An alternative is set out clearly in the Scottish Government’s papers on the issue. We cannot trust the failed Westminster parties to dismantle the hostile environment that they created. Scotland must have these powers urgently. We must have independence to play our part in the world.
Sir William Cash
I signed the Government’s motion to reject Lords amendment 1 and am happy to support them in it. The fact is that the Lords amendment would add to clause 1(1) the words:
“full compliance with domestic and international law.”
The problem is that that would make the clause one of the most serious and dangerous clauses I have seen in recent statutory history. It would contradict one of the most fundamental principles of our constitutional law.
As my right hon. and learned Friend the Minister for Countering Illegal Migration said, we have a dualist system—I have referred to it several times in the past—and it is fundamental. That is unlike Germany, as article 26 of its constitution states that international law is the most fundamental part of its constitutional arrangements; articles 65 and 66 of the Dutch constitution contain a similar provision. We have a dualist system, and the sovereignty of our Parliament is imperative. Over many generations—in fact, going back centuries—all the court cases, whether in the House of Lords or in the Supreme Court, make it absolutely clear that where words used in statute are clear and unambiguous, and where Parliament’s explicit intention is clear, parliamentary sovereignty means that the supremacy of Parliament can override international law and should do so. The “should do so” is equally important. Indeed, I would go further and say that in our courts, sovereignty—with those clear and unambiguous words—trumps international law.
As I mentioned in an intervention on the Labour spokesman, the hon. Member for Aberavon (Stephen Kinnock), the House of Lords Constitution Committee, including the likes of the noble Lord Falconer, Lord Robertson and various others, clearly stated in paragraph 58 of its report last year on the rule of law:
“Parliamentary sovereignty means that Parliament can legislate contrary to the UK’s obligations under international law.”
That fundamentally disagrees with what is contained in Lords amendment 1, so what—if I may say—the heck is going on? The Lords had a very important decision to take, and paragraphs 54 to 60 of that report contain the very carefully detailed reasoning that led the Committee to the conclusion I have just read out.
I have mentioned in a previous debate the judgment of Lord Hoffmann in a case called R v. Lyons. I want to quote from it, because he clearly says that international law is trumped by the supremacy of the sovereignty of Parliament. Parliament has to be the key determinant. What he says is so important—I would not bother making my point in this way if it were not for this amendment. I am not sure whether the Leader of the Opposition really intends to achieve the objectives set out in clause 1; it worries me very much indeed if he is complicit in this operation. This was a Labour amendment and had a majority of 102 in the House of Lords, so we are going to have to take it seriously, which means we also have to deal with it seriously.
Lord Hoffmann said,
“English courts will not (unless the statute expressly so provides) be bound to give effect to interpretations of the treaty by an international court, even though the United Kingdom is bound by international law to do so.”
He went on to say,
“The sovereign legislator in the United Kingdom is Parliament. If Parliament has plainly laid down the law, it is the duty of the courts to apply it, whether that would involve the Crown in breach of an international treaty or not.”
Nothing could be more explicit. Nothing could be clearer.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Will the hon. Member give way?
Sir William Cash
No. Amendment 1, put forward by the House of Lords, completely contradicts that principle, because in its wording it makes both domestic law and international law combined a matter of full compliance. I would go so far as to say that it is impossible in many circumstances to actually arrive at a point where there could be full compliance with domestic and international law according to our constitutional principles.
Sir John Hayes (South Holland and The Deepings) (Con)
I am extremely grateful to my hon. Friend for again making a powerful argument about the sovereignty of Parliament, and he will understand why the sovereignty of Parliament is so fundamental. In democratic polity, Parliament speaks for the people and is given legitimacy by the people, and lawmakers here are answerable to the people. International obligations and treaties matter, but they do not matter more than the people’s will.
Sir William Cash
I am bound to say, with no disrespect to the noble Lords, who passed this amendment with a majority of 102, that they do not have that legitimacy because constitutionally they are unelected; that is a fundamental point that needs to be taken into account. They have a function to perform, but it is our intention and the Government’s clear, stated objective, to overturn the amendment. The issue goes much further and deeper, in my opinion, than just the question of the Rwanda Bill, but it is in the Bill. In my 40 years in this place, or in my constitutional legal practice beforehand, I have never seen any statute that purports to include words that are so all-embracing as the words in the amendment. I do not know who devised the amendment but, with a majority of 102, we had better look to our merits and make quite sure that we turn it down.
The people who are behind amendment 1 are internationalists. That worries me, too. There is a cohort of internationalists in various Government Departments: the Home Office and the Foreign, Commonwealth and Development Office in particular. Being a mere Back Bencher, I am more than happy to castigate those who want to internationalise the sovereignty of our country. I had a bit of trouble—a local difficulty, as one might say—over our leaving the European Union. These internationalists wanted us to be part and parcel of this great European Union, and I have never been happier in my life than on 23 June 2016, when we decided to reject the proposals, as I had been arguing for—shall we say, for a year or two?
The European Union itself is in a terrible bind over the global problem of illegal migration. I have not yet discovered what Germany will do about its own constitution in this respect. It is not just the European Union but the United States of America—day in, day out we see the problems they face on the Texas border. It is beyond imagination. What that country is trying to do about the numbers of people flowing in raises all the same kind of questions on the international refugee convention. This issue affects not just the United Kingdom, but we are taking a stand. I say to my right hon. Friend the Prime Minister that by rejecting the amendment we will enhance our international reputation—by using our unwritten constitution to make it clear that what the people want and what the principles of common sense demand is that we just cannot allow illegal migration to overtake our entire national interest.
I have been to Madrid for a summit of the Conference of Parliamentary Committees for Union Affairs of the Parliaments of the European Union, as the British representative and Chairman of the European Scrutiny Committee, and I hope to go back again in a few weeks’ time. There was sheer consternation at the last conference, which is comprised of the chairmen of the European affairs or scrutiny committees of the 27 member states; they were appalled by the proposal by a majority vote to accept quotas and compulsory fines if they were to have any sensible arrangement in the European Union, which they cannot have because it is inconsistent with their constitutional arrangements. It is inconsistent with the charter of fundamental rights. That is why we need to focus on the European convention on human rights in this particular context. I am not going to make a speech about that, because that would be outside the terms of this debate.
Dame Diana Johnson (Kingston upon Hull North) (Lab)
It is almost two years since the Rwanda scheme was first announced by the then Home Secretary in April 2022. This is now the third piece of legislation connected with that scheme. When this Bill had its Second Reading in the Commons at the end of last year, I noted that the challenge of stopping dangerous boat crossings was real and, despite what the Minister says, I think it is one that every Member of this House wishes to address.
The Home Affairs Committee’s report on channel crossings was clear:
“There is no magical single solution to dealing with irregular migration.”
Instead, our report recommended:
“Detailed, evidence-driven, fully costed and fully tested policy initiatives…to achieve…incremental change”.
It also recommended:
“Close co-operation with international partners”.
Those remarks are still relevant, and it is interesting to note the new tone of the Home Secretary in saying that this policy on Rwanda is now only a part of the solution to small boat crossings. As we know, however, it is very expensive and uses up a huge amount of time in this place and a great deal of political capital.
In the absence of any pre-existing evidence that the UK-Rwanda partnership will deliver on its primary objective to deter small boat crossings, the need for careful, considered and responsible planning and lawmaking is even more acute, and that is what the amendments under consideration today seek to address. I remind the House that the Lords as a revising Chamber have an important job to do in scrutinising legislation and improving it where necessary, and I think it is helpful for this House to see what improvements the other place is suggesting to legislation from this place.
Amendment 1 adds a requirement to maintain
“full compliance with domestic and international law.”
I note that the Minister today and the Minister in the other place have argued that the Bill is already compliant with the rule of law and that it is predicated on compliance with international law in the form of the treaty. The Government commented:
“The treaty sets out the international legal commitments that the UK and Rwandan governments have made consistent with their shared standards associated with asylum and refugee protection.”
This is the same treaty that the House of Lords agreed a motion not to ratify on 22 January. It is the same treaty for which the Government refused to allow time for Members of this House to debate and reach a view on, despite a request from the Home Affairs Committee.
The time period for objections is over and the Government can ratify the treaty as long as they lay a statement setting out why they are doing so despite the decision of the Lords. If the Government want us to accept their assurances that the treaty is itself evidence of compliance with international law, they should really have given this House the opportunity to debate that treaty. In the absence of such an opportunity, amendment 1 would provide the reassurance of compliance with domestic and international law. As the Government insist that the treaty and Bill already satisfy the criteria, it stands to reason that there should not really be any issue with the amendment.
Dame Diana Johnson
I am going to carry on. The hon. Gentleman spoke at length, and I want to get through a number of amendments.
I turn to amendments 2 and 3, which also relate to the treaty. In the other place, Lord Hope argued that Rwanda being declared a safe country should be dependent on the arrangements provided for in the treaty being “fully implemented” and “adhered to in practice”, with amendment 3 setting out what that would actually look like and giving the independent monitoring committee a significant role in reporting on this. In response, the Minister in the Lords set out that the Government would ratify the treaty only
“once we agree with Rwanda that all necessary implementation is in place”.—[Official Report, House of Lords, 4 March 2024; Vol. 836, c. 1358.]
As we know, the Bill will come into force only once the treaty has been ratified. Again, it would have been helpful and beneficial for this House to have had the opportunity to debate the treaty, yet scrutiny of its provisions did not happen in the Commons, just as financial details of the UK-Rwanda partnership had been held back from Parliament until very recently. As highlighted in last week’s estimates day debate on asylum and migration, the Home Office repeatedly refused the Home Affairs Committee’s requests for basic financial information about the scheme, and disclosed some of the costs only after our Committee joined forces with the Public Accounts Committee to request a National Audit Office investigation.
We now know that the core costs are very expensive: £370 million for the economic transformation and integration fund, an additional £20,000 per individual relocated, a further £120 million once 300 people have been relocated and, on top of all that, £150,874 for each individual relocated to Rwanda. There is a direct cost to the Home Office of £28 million by the end of 2023-24, with £1 million per year in staff costs and £11,000 for the flight cost of each individual relocated, and I still do not know whether the Home Office has been able to enter into a contract with an airline to deliver the removals to Rwanda. Crucially, though, we still have not been told the costs for implementing the provisions in the treaty, such as a new asylum appeals body. Is there money available, and has it been allocated to pay for that?
We already know that the Home Office budget is under acute pressure. On 1 February this year, the Home Secretary requested an emergency drawdown of £2.6 billion from the reserves, because the Department had run out of money before the supplementary estimates had been approved. With serious questions still to answer about how the Government will fund the implementation of the treaty, and about its practical implementation, I believe that the amendments help to provide some necessary assurances that the Government have hitherto failed to provide to Parliament.
Amendments 4 and 5 would make it possible to argue that Rwanda is not a safe country on the presentation of “credible evidence to the contrary” and would allow appeals to be brought on that basis. Responding on behalf of the Government, the Minister in the Lords said:
“We have been clear that the purpose of this legislation is to stop the boats, and to do that we must create a deterrent that shows that, if you enter the UK illegally, you will not be able to stay.”—[Official Report, House of Lords, 4 March 2024; Vol. 836, c. 1378.]
The Home Affairs Committee has repeatedly asked both Ministers and senior officials what evidence there is for the deterrent effect of the Rwanda scheme. The permanent secretary, Sir Matthew Rycroft, required a ministerial direction for the scheme, because there was no evidence that it would provide value for money. When he gave evidence before the Committee last year, he said that this was because
“the value-for-money judgment depends on the amount of deterrence that the policy will produce.”
He noted that although the number of people crossing the channel is falling, it
“is very hard to tell how much of that is the possibility of being relocated to Rwanda, particularly, as you suggest, before the first flights to Rwanda have taken off.”
The truth is that we actually do not have any idea whether the policy that this Bill facilitates will have the deterrent effect that the Minister cites. As I highlighted in Committee of the whole House, it does not seem sensible for the Government to propose that the status of Rwanda as a safe country should be fixed for ever more, which would, by extension, make Rwanda the only country on Earth in which nothing ever happens or changes. Amendments enabling the presentation of evidence relating to those changes and their implications for safety in Rwanda therefore seem eminently reasonable and, indeed, necessary.
Amendment 6 deletes clause 4 and introduces into the Bill a new clause that allows much wider grounds for legal challenge. The Home Affairs Select Committee has always recognised that appropriate legal challenge is a necessary part of any functioning asylum system. Amendment 7 disapplies section 57 of the Illegal Migration Act 2023, meaning that people claiming to be children could appeal against a decision that they are over 18. The noble Baroness Lister, who tabled that amendment, explained that it was intended to
“minimise the risk of any unaccompanied child being sent to Rwanda”.—[Official Report, House of Lords, 6 March 2024; Vol. 836, c. 1577.]
During the Home Affairs Committee’s channel crossings inquiry, we heard multiple examples of safeguarding processes failing across various parts of the asylum system, including cases of children being mistaken for adults. Section 57 of the Illegal Migration Act refers to the process of age assessment in the Nationality and Borders Act 2022. The Committee’s channel crossings report noted that that Act contains a number of provisions relating to age assessment, including a new national age assessment board and powers for the Home Secretary to make regulations specifying scientific methods for age assessments. Our report notes:
“The provisions are controversial because there is broad consensus that age assessment should not rely exclusively, or for some stakeholders, at all, on analyses of the skeleton or the teeth.”
I am concerned that without the amendment tabled by Baroness Lister, the Bill could produce a situation where a child is wrongly assessed as being an adult and sent to Rwanda.
Dame Diana Johnson
I am going to carry on, because I want other Members to be able to speak.
Amendment 8 relates to the timetable for removals under the Illegal Migration Act. It would require the Home Secretary to lay before Parliament a statement setting out all the individuals whose asylum claims have been deemed inadmissible since that Act received Royal Assent. The statement would have to include the number of individuals due to be removed to Rwanda and the timetable for those removals, as well as the arrangements for those individuals not being removed to Rwanda.
Again, that is information that the Home Affairs Committee has already tried to glean from the Home Office. Indeed, when the Home Secretary appeared before the Committee in January, I asked him how many individuals whose asylum claims had been deemed inadmissible since the Illegal Migration Act received Royal Assent would be sent to Rwanda. He replied:
“That will depend on which other countries we have returns agreements with.”
Despite pressing him several times on that point, our attempts to ascertain any further information were unsuccessful. As the noble Lord Coaker said when moving his amendment, this is a subject on which it would be good to have some facts. That is why his amendment has significant merit.
Dame Diana Johnson
The hon. Lady is trying to get in, so I will give way, but I am keen to finish.
Mrs Elphicke
I am grateful to her for giving way, because I was hoping to intervene on the SNP spokesperson, the hon. Member for Glasgow Central (Alison Thewliss), on a similar point.
When it comes to facts, I am concerned that those being presented are slightly selective, particularly in relation to age assessment. In the House of Lords, the evidence that was brought before their lordships was that—as the right hon. Lady knows—the Age Estimation Science Advisory Committee, the expert committee that is independent and has been set up independently, has proposed that the accuracy of age assessment will be improved in multiple ways: not just using one biological method, but a range of methods alongside the existing one. I am concerned that partial evidence about age assessment is being presented in today’s debate, and I would be very grateful for the right hon. Lady’s confirmation that she supports the inclusion of those important methods of age assessment that the committee has recommended, in order to support accurate age assessment for safeguarding children.
Dame Diana Johnson
Very briefly, I am reporting what the cross-party Home Affairs Committee decided and put in our report on cross-channel small boat crossings. We produced that report nearly two years ago—this matter has been going on for some time. I am reporting our concerns, which are widely shared among all members of the Committee, about the problems that exist. It is very difficult to assess the correct age of a person who claims to be a child, so it is worth reflecting that this is not easy, and the Home Affairs Committee is mindful and concerned about it.
Several hon. Members rose—
Sir William Cash
On a point of order, Mr Deputy Speaker. I in no way wish to seem churlish, but the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) refused to accept an intervention from me on the grounds that I had talked for too long. She has just managed to exceed the length of my speech by five minutes—
Mr Deputy Speaker (Sir Roger Gale)
Order. I have to say to the hon. Gentleman that that is not even a nice try. I call Alexander Stafford.
Alexander Stafford
It is a pleasure to speak in this very important debate, which is about defeating these awful amendments from the House of Lords and then getting the Bill through Parliament, the flights off to Rwanda and the wheels down in Kigali. The hon. Member for Aberavon (Stephen Kinnock) claimed that Labour supported the Lords amendments not in order to wreck the Bill, but to help it along and make it better. Yet we also heard from the hon. Member for Glasgow Central (Alison Thewliss), speaking from the SNP Front Bench, that they want to upset the Bill. These are clearly wrecking amendments—there are no ifs or buts about it.
My hon. Friend the Member for Stone (Sir William Cash), in his rejection of Lords amendment 1, made clear the dangerous precedent it would set—not just for this Bill but for all Bills—for the supremacy and primacy of this House, and that is the first thing we need to reflect on properly. This Parliament is sovereign. The House of Commons is sovereign. By taking that sovereignty away from us, we upset everything. Lords amendment 1 talks about compliance with the rule of law. How can it be against the rule of law when the democratically elected body of this House wants something, and the free and independent sovereign country of Rwanda wants something? By rejecting the amendment, we will enhance our sovereignty and the Bill.
It is clear that the Bill is needed, but why is it so needed and why is it essential that we stop these wrecking amendments? For far too long we have had far too many illegal immigrants coming into our country. Those illegal immigrants, who are jumping the queue by going outside the rules and regulations on how they should come into our country, are making it harder and harder for people in this country. The Bill is necessary, needed and proportionate. Illegal immigrants are putting a huge strain on public services. They are putting a huge strain on the things that everyday people use: doctors, GP services, schools. The human cost of people being killed as they travel across the channel needs to stop. The financial cost to residents in Rother Valley and across our areas needs to be curtailed. The amendments try to wreck the Bill, and that is why we need to double down.
For some reason, we have had a lot of debate about how many people will go to Rwanda. That is clearly out of the scope of the Bill, but many Opposition Members mentioned it. We have heard estimates of 150 or a handful. I sincerely hope that the number will be in the thousands and tens of thousands, to get rid of the backlog and stop the illegal immigrants coming here. Fundamentally, the point of the Bill is to stop illegal immigrants coming here. Any attempt to wreck it is an open-door policy to let human traffickers traffic people illegally into our country and upset our local communities. Ultimately, more people will die if the Bill does not pass, because of the loss of life in the channel.
No one has really talked about the Bill’s deterrent factor. A similar process worked in Australia, where illegal immigration rapidly decreased due to the deterrent effect, and it is important that we reflect on that. If we stop people coming here in the first place, we will save lives and save money, so it is so important that we get the Bill through.
Sir John Hayes
My hon. Friend refers to the Australian system, which was known as Operation Sovereign Borders. It is true that the offshore processing that Australia enjoyed was only part of the solution, and the Government have always acknowledged that. Rwanda is not a be-all and end-all, but it is a critical part of our policy, as it was in Australia. I wonder whether he might comment on this: it seems to me that the House of Lords is either careless about the threat of our borders being breached with impunity, or clueless because it does not know it is happening. Which does he think it is: careless or clueless?
Alexander Stafford
I would not wish to comment on what is going on in their lordships’ minds, but clearly they do not care about the concerns of the average person in Rother Valley about the high levels of illegal immigration, which I hear about when I knock on doors. Their lordships clearly do not care about the people dying while trying to cross the channel. They clearly do not care about the cost to the public purse of hundreds of thousands of illegal immigrants coming over here. They clearly do not care about the everyday person in the street. Their lordships, ultimately, are not democratically elected and answerable to the people. We are, and that is the crucial point: we are the voice of the people, we are answerable to the electorate, we are answerable to our constituents, and we need to get this stopped.
There is so much more in the Lords amendments that will upset and disrupt the Bill, so I will touch on a few more of them. First, I want to talk about Lords amendments 4 and 5, which talk about whether Rwanda is a safe country. I would be very careful about some of the words used by Opposition Members to describe Rwanda. Fundamentally, Rwanda is a safe country. Not only are we in this House declaring it to be safe, but it is patently true. To say that Rwanda is not safe is a fundamentally colonialist attitude to other parts of the world. We are saying to another country, “Your country is not safe; your country is not good enough.” We on the Government Benches are saying that Rwanda is safe. The 1.4 million tourists who went to Rwanda last year—
Patrick Grady
If Rwanda is such a wonderful place to be deported to, why would the prospect of being deported there be a deterrent?
Alexander Stafford
That is an interesting point. I am under no illusion that Rwanda is a great country, but I will tell the hon. Gentleman a country that is even better than Rwanda: the United Kingdom. So of course they want to come to Britain, because we are a better country. That does not mean that Rwanda is not safe, or that it should not be safe.
On Lords amendments 4 and 5, the Government have already completed a detailed assessment that Rwanda is a safe country. We need to accept the facts of that assessment and start to take even more action while the boat crossings are low. And they are low: they were down 36% last year. As my right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) mentioned, that is because of the other stuff we are doing such as the Albanian deal, which is working, and stopping the boats physically getting to the sources.
Mrs Elphicke
Does my hon. Friend agree that another safe country is France?
Alexander Stafford
I thank my hon. Friend, who does so much work on this issue in her constituency. Indeed, France is a very safe country—as are Spain, Italy, Germany and so many countries crossed by illegal immigrants. They should claim asylum in the first safe country. They have no duty or right to come over this way, but we do have a right and duty to protect our country, protect our borders, protect our sovereignty and protect our people. That is why we need to have a clear idea of who is coming here and ensure that we can deport the people we do not want or do not need, and process them elsewhere.
Turning back to Lords amendments 4 and 5, we cannot allow individuals to challenge their removal grounds on the basis that Rwanda is not a safe country. The UK Government have made the assessment and we cannot let the amendment allow for individuals to challenge their removal grounds. New international treaties mean that our decision cannot be second-guessed, and that is vital in moving forward with this legislation.
I disagree with Lords amendments 6 and 9, as Rwanda has its own safeguarding system to ensure the safety of individuals who will be relocated to Rwanda. If we start questioning each claim and whether to send them to Rwanda, we are adhering to the idea that Rwanda is not a safe country, which contradicts the safeguarding processes that Rwanda has already introduced. We have already identified that Rwanda is a safe country, so it should not be up for interpretation based on an individual’s claim that they cannot be sent there.
I also disagree with Lords amendment 7, as it can incorrectly favour individuals who want to abuse our immigration system. We need robust measures to be implemented to ensure that the Rwanda plan is executed with efficiency to prevent those who want to play the system. We need to ensure that this is the toughest legislation ever. We need to do everything we can to prevent individuals from impersonating children to bypass the Rwanda scheme. We have already discussed checks on whether people are children. To protect children, we need to make sure who is a child and who is not. There are safe and independent ways of verifying a person’s age. That goes on in other countries. I believe German and maybe France use similar processes, and I do not think any of us is claiming that France or Germany are not safe countries. If it is good for them, it is good for us. We heard how the legislation in Germany and France is different from ours, but if they can have such checks, then so should we. They will safeguard the British people but also genuine child refugees, to make sure they are not put in an awful situation.
Sir John Hayes
I am extremely grateful to my hon. Friend for giving way on two occasions. He will remember that when we were debating an earlier piece of legislation with the then Minister, my right hon. Friend the Member for Newark (Robert Jenrick), this issue of age verification was raised. My hon. Friend is right to say that other countries use it. On that occasion, my right hon. Friend explained why it is so important; it is because the oldest so-called asylum seeker found to be here claiming to be a child turned out to be 42 years of age.
Alexander Stafford
I thank my right hon. Friend for that apposite intervention. That is the concern. Having a situation where some people can claim they are children when they are 42 years old is not good for anyone. We have been debating the Rwanda scheme in one shape or form for two years, and, at every step of the way, Opposition Members have been wrecking it. These amendments are just the latest of their objections to it.
Mrs Elphicke
Does my hon. Friend share my concern that the SNP objected to the regulations on age verification, while the Labour party did not even vote on the regulations, which had to be carried by Conservative votes?
Alexander Stafford
I thank my hon. Friend for that observation. That is shocking, and it just shows where the care and safeguarding of children lies in their priorities. As a local Member of Parliament, I know what Labour thinks about safeguarding our girls in Rotherham. We should be able to look after everyone. This Bill will ensure that we look after the people in Britain, that we give sovereignty to our people and that we control our borders. We have had two years of dither and delay, of wrecking amendments, of planes not taking off, of people being pulled off planes, and of Opposition Members trying everything possible to stop this well-needed, well-liked and well-supported policy going forward. Anybody trying to support the amendments is no better than those who want to wreck the Bill and have an open-door policy. I say to all Members of this House that we must reject the Lords amendments, we must stand up for Britain, we must stand up for our sovereignty and we must get wheels down in Kigali as soon as possible.
Joanna Cherry
I rise to support the Lords amendments. Lords amendments 9 and 10 because they are basic humanitarian amendments designed to exempt from the process of being sent to Rwanda the victims of modern slavery and human trafficking, as well as our agents—our allies—who have supported His Majesty’s armed forces overseas and persons who have been employed or indirectly contracted to provide services to the UK. It would be shameful if this House did not support those amendments.
I will direct most of my remarks to Lords amendments 1 to 6. Lords amendment 1 relates to whether the Bill is fully compliant with the rule of law, and Lords amendments 2 to 6 broadly deal with the issue of the safety of Rwanda. As has been adverted to earlier in the debate, I visited Rwanda last month as part of the Joint Committee on Human Rights delegation. We will be reporting in due course on our findings as part of our inquiry into the human rights of asylum seekers. Therefore, although I am Chair of the Committee, any comments that I make today are in a personal capacity, because the Committee has not yet deliberated.
I am firmly of the view that Rwanda cannot be described as a safe country for the United Kingdom to send asylum seekers to. That is based on what I observed there, but also based on objective evidence about such arrangements as presently exist in Rwanda for asylum seekers—not refugees on their borders, but asylum seekers—the degree of expertise among its immigration officers, lawyers and judiciary, and, crucially, evidence that the Joint Committee on Human Rights has received about the state of human rights in Rwanda, and perhaps, most importantly, information, collated by the Home Office, which I referred to earlier, about the state of human rights in Rwanda. I will come on to that in a moment.
When we were in Rwanda, we met many Government officials and organisations, most of whom meet with Government approval, and naturally they had a good story to tell us. Like the Supreme Court, I believe that they are in good faith, but we need to weigh that against the evidence of what we have heard from others, the evidence collated by the Home Office about human rights abuses in Rwanda and also a recognition of how long it will take Rwanda to put in place the arrangements required by the fresh treaty, and for them to bed down. In connection with that, I remind Members of this House what the House of Lords International Agreements Committee said when it undertook its scrutiny of the new treaty in January. It said:
“While the Treaty might in time provide the basis for such an assessment”—
of Rwanda as a safe country—
“if it is rigorously implemented, as things stand the arrangements it provides for are incomplete. A significant number of further legal and practical steps are required under the treaty which will take time”.
The International Agreements Committee listed those. It went on to say that
“the arrangements put in place by the Treaty need time to bed in to demonstrate that they operate in practice. The Home Office has been unable to offer any clear timeline for implementation, but we”—
the House of Lords International Agreements Committee—
“agree with the evidence we received that the Treaty is unlikely to change the position in Rwanda in the short to medium term.”
Several hon. Members rose—
Joanna Cherry
Let me just develop this point, and then I will take some interventions. I agree with the House of Lords on that. It fits with what I observed on the ground in Rwanda, which I will come on to in a moment. Importantly, the hon. Member for Bosworth (Dr Evans), who is no longer in his place, earlier referred to what he described as the views of the UNHCR. When I met UNHCR officials on the ground in Rwanda, they said that they did not believe that Rwanda is a safe country for asylum seekers. They said that it will take systemic and structural change to happen first and then that change will need to cascade through the system. That will take time. I also believe that a greater commitment to meaningful human rights protection is required.
Sir John Hayes
The hon. and learned Lady is making, as she usually does, a considered argument based on her visit to Rwanda. I have not been there. I wonder whether, in making that argument, she is mindful that previously both the United Nations and the EU have designated Rwanda as a suitable place to accept refugees. What does she make of that?
Joanna Cherry
The Rwandans host more than 100,000 refugees on their border who have come over from neighbouring countries such as Burundi and the Congo because of conflict in those countries. They are people from neighbouring countries who have the ambition to go back to their own country as soon as they can, and they live in refugee camps on the border. They are a completely different category from asylum seekers who have sought to come to the UK and who are going to be sent to Rwanda. That is not just my view; that was the view of the UNHCR.
Joanna Cherry
I will give way to the hon. Member who is a member of the Joint Committee on Human Rights.
Jill Mortimer
I thank the hon. Lady for giving way. I was also in that meeting with the UNHCR. Is it not also true that when we questioned the officials about their motivation for why they felt that we should not be sending our asylum seekers there for processing, they were very clear that it was because they felt that we were shirking our responsibility, that we should be taking all those asylum seekers, and that we had the capacity to. Is it not also true that, in that meeting, they agreed that they based their emergency transit base there, that they sponsor scholarships in Rwandan universities for refugees. It is a very safe place. Let me quote from my own notes. I said, “So, it's nothing to do with safety. It was because you feel that we should be doing this ourselves.” And they said, “Yes.”
Joanna Cherry
I, too, have detailed notes of our meeting with the people from UNHCR. The hon. Lady is right to say that the UNHCR said quite clearly that it thinks that the United kingdom is shirking its responsibilities, and actually so do I. That is my personal belief. I base that on the number of refugees there are in the world: there are more than 100 million displaced people and more than 36 million refugees in the world. Really quite a small number of them make their way to the shores of the United Kingdom. There will be a hell of a lot more in the years to come because of climate change, and my very firm belief is that the United Kingdom needs to shoulder its responsibilities as one of the richer countries in the world, rather than shuffling these people off on to a country such as Rwanda which, as we saw, has made great strides, but it cannot be compared with the United Kingdom in wealth.
A little more about why I do not believe that Rwanda can yet be described as a safe country: I mentioned in an intervention that it is important to read the United Kingdom’s Supreme Court judgment in its entirety, particularly paragraphs 75 to 105. The decision was based on a number of things: evidence about the general human rights situation in Rwanda, the adequacy of Rwanda’s current asylum system, and Rwanda’s failure to meet its obligations under a similar agreement regarding asylum seekers with Israel in 2013. There was a lot to the judgment. It is very rich in detail. The Court considered a lot of evidence over a long period. It is really not an adequate acknowledgment of the exercise in which the Supreme Court was engaged to simply say that a few months later an Act of Parliament can change the reality on the ground and solve all the legitimate concerns that the Supreme Court had about the situation in Rwanda.
Yes, the United Kingdom Government have entered into a new agreement, but the trouble is that none of the new measures to which Rwanda and the UK have agreed are yet properly in place. The UK Government’s insistence that, since the Supreme Court’s considered judgment last year, Rwanda has miraculously become a safe country for asylum seekers can only be described as a legal fiction. Nothing I saw on the ground in Kigali led me to doubt that. When we were there, the relevant legislation was still going through the Parliament. The legal reforms and new systems agreed had yet to be put in place, and although training had commenced it was still very much in its infancy.
The Supreme Court found that the Rwandans were acting in good faith, but that
“intentions and aspirations do not necessarily correspond to reality”.
Having spent some time in Rwanda, and met with Rwandan Government officials, healthcare workers, Ministers, lawyers, those who will deliver the legal training, its national commission for human rights and non-governmental organisations, I think that the Supreme Court got it right: the Rwandans are acting in good faith, but intentions and aspirations do not correspond to reality.
We heard a very interesting fact: owing to their recent history, 80% of Rwandans have themselves been refugees. As I said, on their borders they accommodate well over 100,000 refugees and displaced persons from neighbouring countries. Many of the Rwandans I met were at pains to emphasise to me that they see refugees as their friends, their brothers and their sisters. I was very struck by how their attitude contrasts with the UK Government’s hostility towards asylum seekers and desire to offload both their legal and, I believe, their moral responsibilities to asylum seekers on to others.
When the Joint Committee on Human Rights considered the UK Government’s original agreement with Rwanda and the Illegal Migration Act 2023, we expressed concern that the policy
“could be seen as an outsourcing of the UK’s own obligations under the Refugee Convention to another country.”
I know that not everyone will agree with that, but given the number of displaced persons and refugees in the world compared with the tiny fraction we take, I think that we are not living up to our moral obligations. Clearly, there is a legal argument that we are not doing so. The Joint Committee on Human Rights also said, back when we considered the original agreement with Rwanda and the 2023 Act:
“Removing asylum seekers to a state where they face a real risk of serious human rights abuses, or of being sent on to a dangerous third country as a result of an inadequate asylum system, is inconsistent with the UK’s human rights obligations”.
Joanna Cherry
I give way to the hon. Lady, who was also on the visit to Kigali.
Dr Johnson
The hon. and learned Lady says that the UK is taking a tiny number of refugees and asylum seekers. I am not sure that that is true, but I would be interested to know what she considers to be a reasonable number—or whether she believes that there is not one.
Joanna Cherry
I do not have time to get into redesigning the system, but—[Interruption.] Well, during our inquiry, as the hon. Lady will recall, the Committee heard very detailed evidence about what might be a reasonable number, and how the number we take compares with the number of refugees in the world. We heard very detailed evidence from the chief executive officer of the Refugee Council, Enver Solomon, about what might be a compassionate but reasonable way for the United Kingdom to approach its moral and legal obligations.
Let me focus on why I support the amendments that relate to the lack of a safe situation in Rwanda. Many of those I met in Rwanda were very keen to emphasise that their written constitution contains good human rights protections, which it does, but few of them were able to point to any case law showing people in Rwanda taking advantage of those protections, as we are—at least for the time being—able to in this country. I also found out when I was in Rwanda that in 2016, the Rwandan Government withdrew the right of individual petition to the African Court on Human and Peoples’ Rights because they were unhappy with the way in which it handled claims brought by Rwandan dissidents. I could not help but see an echo in that of the UK Government’s attitude towards the European Court of Human Rights when it makes decisions that they do not like.
Mr Carmichael
Would there not be some sense in allowing Home Office decision makers to take account of the Home Office evidence that has been gathered together in the way that the hon. and learned Lady describes?
Joanna Cherry
The document was withdrawn for a while and updated in January, so I only saw it and read it in detail just before my trip to Rwanda. I was really quite appalled that Government Ministers could continue to state that Rwanda is a safe country from a human rights perspective in the face of the evidence that they themselves collated. I really want to hear a colourable answer to that point.
Before the Joint Committee on Human Rights left the UK, we took steps to find out about the human rights situation in Rwanda. The evidence that we heard gave me great cause for concern about the curtailment of freedom of expression in Rwanda for those who wish to criticise the Government. The US State Department, Amnesty International and Human Rights Watch have reported evidence of unlawful or arbitrary killings, disappearances and torture. One area of particular concern for asylum seekers sent from the UK is the protection of same-sex-attracted and transgender people. The Foreign Office travel advice for Rwanda warns British gay people and British trans people that individuals
“can experience discrimination and abuse, including from local authorities. There are no specific anti-discrimination laws that protect LGBT+ individuals”.
When I put that to Government officials and others with whom we met, I was reassured that the Rwandan constitution contains a general protection against discrimination, which it does, but sexuality and gender identity are not listed there. Crucially, nobody was able to show me any evidence that a gay or transgender person has ever availed themselves of the anti-discrimination protections in the constitution. People were at great pains to tell me that homosexuality and transgenderism are not criminal offences in Rwanda. Sorry to be light-hearted, but whoop-de-doo. As a lesbian, I can tell the House that the mere fact that one is not criminalised is only the start of the story.
I think Rwanda is where the UK was on LGBT rights about 50 years ago. Yes, it is ahead of many other African countries because it is not illegal to be gay or trans in Rwanda, but there are no positive rights and no equal rights protections. We need to acknowledge that, because there are people who come to the United Kingdom because they are gay, transexual or transgender, and they know that we in the United Kingdom have great, world-class equal rights for gay and transgender people. If they are coming here for those protections, they are perfectly entitled to be concerned about being sent to a country such as Rwanda, where no such protections exist.
Many others come to this country because they were dissidents in their country—they have criticised their Government. They come to the United Kingdom, because —so far at least; touch wood—we still have freedom of expression. I am not sure that Rwanda can be described as having the same freedom of expression protections that we enjoy in the UK.
Asylum seekers also come to this country who have been human rights defenders in their country and have been persecuted for it. Again, touch wood, we in this country still have full human rights protections. That, based on the evidence of the Home Office itself, is not the position in Rwanda.
Jill Mortimer
I thank the hon. and learned Lady for giving way again. The anti-discrimination law in the Rwandan constitution is not something that just ethereally hangs there. In fact, is it not true that, because of their recent history of genocide, it is a deeply ingrained feeling among Rwandans that everybody is equal and there is no discrimination? The law does not even allow asking someone whether they are Tutsi or Hutu. They are very, very sensitive to anybody discriminating about anything. Is it not also true that the heads of two non-governmental LGBT organisations we spoke to were very clear? We had a very good dig into this. My hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) asked them whether it would be okay for gay people to hold hands walking down the street in Rwanda, and their answer was, “Yes, of course.” The hon. and learned Lady then asked if there might be—
Mr Deputy Speaker (Sir Roger Gale)
Order. That is a speech, not an intervention. I am terribly sorry, but I must ask the hon. Lady to resume her seat.
Joanna Cherry
My answer to the hon. Lady is that, as I said at the outset of my speech, in assessing whether Rwanda is a safe country for asylum seekers, particularly LGBT asylum seekers, we need to consider what we heard from people when we were there, as well as the objective evidence. She will recall that I questioned several people on this subject. No one was able to give me an example of any gay or transgender person ever availing themselves of the law to protect their rights. There is a difference between that and the position in the United Kingdom, where anyone who is same-sex attracted or transgender is protected by the Equality Act 2010 and by the European convention on human rights; if they lose their job or are refused housing, for example, they can go to court.
We need to look at what we heard in Rwanda. We heard very positive things from two Government-approved LGBT rights non-governmental organisations, but there is also evidence—again, particularly in the Home Office note—suggesting that the situation is rather different. [Interruption.] The hon. Member for Hartlepool (Jill Mortimer) may scoff, but that note was prepared by her Government.
Caroline Lucas (Brighton, Pavilion) (Green)
The hon. and learned Lady is making a case about the importance of evidence. Does she agree that there is evidence right in front of us in the fact that the UK Government accepted asylum claims from a number of people from Rwanda at the back end of last year? If it really is the paradise that we have just been hearing about, and if we can guarantee that into the future, it is quite surprising that people from that country are claiming asylum in the UK.
Mr Deputy Speaker (Sir Roger Gale)
Order. Before the hon. and learned Member for Edinburgh South West (Joanna Cherry) resumes her speech, I remind her that we are beginning to go very wide again. I would be grateful if she could come back directly to the amendments, although I understand the context in which she is trying to make her remarks. While I am on my feet, may I say that, although I appreciate that she is being very careful, we are getting on to fairly thin ice when we start talking about a JCHR report that has not been published yet? We need to be a little careful.
Joanna Cherry
I was crystal clear at the start of my speech that I am speaking in a personal capacity, just as anything that I have written about my trip to Rwanda was written in a personal capacity. The reports that I referred to were historical reports of the Committee. I have gone out of my way to make it clear that I am speaking in a personal capacity. I explained in some detail that the Committee will deliberate, and will report on its trip to Rwanda in future. These are my personal reflections, but they are evidence-based, and I stand by them. I think that they are an important contribution to this debate—[Interruption.] And I do not intend to be shouted down by the right hon. and learned Member for Northampton North (Sir Michael Ellis), or anyone else who does not want to hear a lawyerly, evidence-based contribution. [Interruption.] I am terribly sorry if I am boring him, but he will be pleased to hear that I am coming to the end of my speech very soon.
To sum up, based on the evidence that I have read and that the Joint Committee on Human Rights has heard so far, and based on what I heard and saw on the ground in Kigali, I remain of the view that Rwanda is still not a safe country for asylum seekers, which is why I support Lords amendments 2 to 6. I am fortified in doing so by knowing that the House of Lords International Agreements Committee was of the same opinion when it undertook its scrutiny of the treaty, as was the UNHCR on the ground, which told me that systemic and structural change needs to happen in Rwanda, and then needs to cascade. I believe that that will take time, and that a greater commitment to meaningful human rights protections is required.
Several hon. Members rose—
Mr Deputy Speaker (Sir Roger Gale)
Order. I said that we were skating on fairly thin ice because other, equally impressive legal advice suggests that there are three members of the Joint Committee in the Chamber who have come fairly close to quoting reports that have not yet been published. I hope that the hon. and learned Member for Edinburgh South West (Joanna Cherry) will accept the admonition in the terms in which it was offered. I call Dr Caroline Johnson.
Dr Caroline Johnson
I rise to support the Government in rejecting the Lords amendments. I will focus particularly on amendments 6 and 7.
Amendment 6 states that
“the Secretary of State or an immigration officer”
could decide
“if Rwanda is a safe country for the person in question”.
It is clearly a wrecking amendment. I wonder whether those immigration officers will go to Rwanda, as I and other members of the Joint Committee did last month, because if they do, their position on Rwanda may change.
During our visit to Rwanda, I saw in Kigali a beautiful city, and we met many very welcoming people. As the hon. and learned Member for Edinburgh South West (Joanna Cherry) said, many people in the Rwandan population are refugees, and as such, they are keen to support refugees and give them the best future. We saw the housing and education provision that the Government of Rwanda have made, jointly with the UK Government, to support refugees on arrival, and the level of detail with which they had considered what people may need when they arrive.
We saw a country that has welcomed people from Burundi, the Democratic Republic of the Congo and transit camps in Libya, and accommodated an entire medical school from South Sudan, a girls’ school from Afghanistan and a large number of LGBT individuals from across African nations, because of its relative safety for them. We also saw a country, scarred by the genocide 30 years ago, that is keen and ambitious to work together for a cohesive and successful future.
As for what we heard on our visit, in the words of Her late Majesty the Queen, “Recollections may vary.” I think it would be helpful, as we have heard contrasting opinions, to give a little information about LGBT protections. Under proposed subsection (1)(b) in Lords amendment 6, a court or tribunal would be able to say that
“Rwanda is not a safe country for the person in question or for a group of persons to which that person belongs”.
I was very keen to see what LGBT rights there were in Rwanda, and to learn whether it was indeed a safe country. While we were out there, we learned from a Supreme Court judge, the President of the Rwanda Bar Association and the chief executive of the Legal Aid Forum in Rwanda that Rwanda has an anti-discrimination law in its constitution, which can be litigated on, if need be.
We visited Kepler, a higher education college, where we spoke to students and staff, including the chief executive, who has moved to Rwanda from Canada, and the diversity officer for the institution. We heard from all those people—the students, staff, chief executive and diversity officer—that it was a safe place for LGBT individuals to live. They did say that there were some who were what they called “quietly disapproving”, among some of the older populations in Rwanda. I note that, while we have been talking, there has been a debate in Westminster Hill about LGBT content in the curriculum, which suggests, sadly, that the same may be true in this country.
Sir John Hayes
My hon. Friend, as I and many other Members of this House did, sought to strengthen this Bill, including clause 4, knowing that people’s individual circumstances as they game the asylum system can be acquired, altered or amended, and frequently are. However, Lords amendment 6 to which she refers not only does not strengthen the Bill; it weakens it. It makes clause 4 even weaker, and the interim orders that would be issued as a result of that amendment would delay, obfuscate and make a nonsense of the intentions of the Bill. She knows that—she has articulated it very well, as she always does—and the Lords knows it too. This is a wrecking amendment: nothing more and nothing less.
Dr Johnson
I completely agree with my right hon. Friend. It is, as he says, one of many wrecking amendments that the Lords have passed. We understand that those in the other place wish to do so, but as a democratically elected Chamber, we need to send the Bill back to the Lords with a very clear message that this is what the people of the United Kingdom want to see.
I want to clear up an issue relating to our meeting with the UNHCR, based on the contemporaneous notes that I made in Rwanda and have with me in the Chamber today. The UNHCR representative in Rwanda was asked why there is an apparent contradiction between its desire to bring refugees to Rwanda from other nations, but specifically not from the UK—what is it about a person having come from the UK that makes them less safe in Rwanda than a person who has come from Afghanistan directly, which does not seem to make sense to me?
The lady said very clearly that Rwanda is a welcoming country. She said this had “nothing to do with the safety of Rwanda”, and she felt that the UK should keep its own asylum claimants and was concerned about Rwanda’s capacity. She also said that she thought the UK had a more experienced system, and she felt that, because most of the current refugees Rwanda is accommodating—95% of them—are from Congo or Burundi, there is a similar culture, and a similar ethnic and religious population. She thought there would therefore be greater inclusion more quickly, and that people would integrate more quickly. I asked her to expand on whether the UN would be more supportive of the scheme if all the individuals relocated were of such origin, but she was not willing to answer that question.
I want to touch on Lords amendment 7. There has been much talk this afternoon about the safety of children in Rwanda. The Government clearly have a duty to protect all children, but one of the challenges is that we know that there are people who will pretend to be a child when they are not; my right hon. Friend gave the example of a gentleman who did that at the age of 42. The Government have to protect children by preventing them from being deported to places they should not be deported to, but they also have a duty to protect children in the United Kingdom from being accommodated or educated with people who are not children, and who may therefore cause them harm. In my view, the Government have a duty to make their best efforts. These systems are not perfect, but they are the best we have, so it is right that the Government make their best efforts to ensure that they do assess the age of children using the most important medical interventions we have at the moment. I am pleased to say that I will be supporting the Government this evening.
Several hon. Members rose—
Mr Deputy Speaker (Mr Nigel Evans)
Order. We are introducing an eight-minute limit straightaway. I am hoping to get the Minister on his feet to respond no later than 7.50 pm. Clearly, if we finish before then, the Minister may have more time.
Claudia Webbe (Leicester East) (Ind)
This Government remain in disarray for all the wrong reasons over this horrendous Bill. I applaud the noble Lords in the name of decency and humanity for bringing forward these amendments. The decision to force those seeking refuge here on to a cramped barge, the Bibby Stockholm docked at Portland port, was rightly condemned by human rights groups as inhumane and dangerous, and it has already seen at least one suicide. Yet this Government want to outdo themselves in their contempt for human rights and life by sending vulnerable asylum seekers, who have already been through a living and torturous nightmare to get here, to a country that our Supreme Court has ruled cannot be considered safe.
The Government are now resisting amendments from the other place that are clearly designed to prevent injustice and to stop the Government exploiting the Illegal Migration Act 2023 to truncate the process of forcing refugees to a country that does not become safe simply because it is called safe. That is how profound the Conservatives’ contempt for justice and the rule of law is. The idea that Rwanda becomes safe simply by declaring it so is self-evidently nonsense. It is nothing more than a manoeuvre to scrape for votes by pandering to racism. If the Government declared tomorrow that Gaza is safe—a safe destination—would that mean no more bombs, bullets or starvation there? It seems that the Government think they can make juggling knives safe simply by declaring it safe; presumably any fingers chopped off would be someone else’s fault—anyone else’s—as long as our Government get their way.
As the Lords amendments make clear, the Bill remains clearly at odds with human rights law and our commitments under international conventions. Thus, the Lords amendments are an attempt to mitigate some of the worst harms of a manoeuvre that shames our nation. It is one that in effect tries to opt the UK out of international human rights law by saying that the courts cannot take it into account, all while the Prime Minister tries to save face by saying that the UK will not actually be leaving those international agreements. Amnesty International has rightly condemned this assault on human rights as
“callous, immoral and an attack on the basic protections that keep us all safe.”
It is also a hugely expensive one. This wicked scheme has already cost the UK £240 million in payments to Rwanda, with at least another £130 million to come. The Bill fails to understand that there is no such thing as an illegal asylum seeker, and that safe and legal routes are needed to better protect all asylum seekers.
This Bill is ridiculous and toxic, racist and cruel, and it shows contempt for our legal system. The Government would have us believe that such attitudes reflect British values, but surely the people of this country stand for something better than stoking fear and hate towards desperate refugees alongside disdain for our legal system. I believe this whole Bill should be rejected, but I support all the amendments sent from the other place, as they go at least some way towards reducing its poison.
Priti Patel (Witham) (Con)
All Members who have sat through debates on these matters in recent years must be feeling a strong sense of déjà vu today. It is almost two years ago today that we were considering Lords amendments to the Nationality and Borders Bill, some of which fitted closely in with this debate and the amendments that have come back from their lordships. They touched on processing asylum claims for third parties, issues around the safeguarding of children, and, obviously, the safety of asylum seekers. This debate and these Lords amendments should be focusing on the provisions in this Bill, and ensuring that the migration and economic development partnership—that is what it is called—with Rwanda can be operationalised and delivered as planned.
The House of Lords has a vital role to play in providing challenge and scrutiny. I—like, I hope, all Members—have read the contributions from the debates in the other place. Lord Baker of Dorking, who understands these issues, having been Home Secretary in the 1990s, made some insightful comments on dealing with migration and the challenges and on the wider issues around asylum seekers, criminality and all those points that encapsulate the challenge confronting the Government. Today’s debate about the amendments should be a balancing act, recognising that there are political choices that have to be made.
We have to recognise that some of the international conventions and agreements on human rights that have been mentioned were designed in a different era. The UNHCR has been mentioned and I have had many direct conversations with its director. It subscribes to the EU’s position of burden sharing across countries around the world, but that is not a position we subscribe to and we should continue to uphold that and stand up for our own positions. The Government, through their proposals, are trying to put forward solutions.
I noted that the Lord Bishop of Durham spoke in measured and thoughtful terms about the developments and commitments from Rwanda, but he raised concerns over the opportunities that would exist for those transferred to Rwanda. That is why we negotiated this partnership. It is an economic and migration partnership. It is an innovative approach, as I was the first to say when I launched it from the Dispatch Box. It is novel and it is innovative but, importantly, we put security and scrutiny measures in place. The monitoring committee, which has not been discussed enough today but is mentioned in the Lords amendments, basically does what this House has asked for, as their lordships themselves will know. I am very concerned that some of the amendments are intended to derail the Bill and what is a pragmatic and innovative—I should stick with that word—approach to tackling these issues.
I want to touch on a few of the amendments, but many have been debated already so I will not cover them all. My hon. Friend the Member for Stone (Sir William Cash) touched on amendment 1 and I am in complete agreement with him. Lords amendment 7, tabled by Baroness Lister, on children has been subject to debate. We must recognise that it was the Nationality and Borders Act 2022 that put forward amendments and changes around safeguarding children in our education system and local government system. That is vital. The Lords tabling this amendment offers us a moment to reflect on implementing these measures and proposals; that is absolutely vital, as these were important provisions.
Dr Caroline Johnson
Does my right hon. Friend agree that measures to assess the age of children are necessary as there are adults who will pretend to be children?
Priti Patel
My hon. Friend is absolutely right. When I was Home Secretary, the case was brought to me of a 42-year-old who was masquerading as a child, and that became a national story. Through that, we looked at the age assessment measures and worked with scientists, and we looked at EU countries and what they were doing. I urge the Government to get on and implement the provisions. Time has lagged too long now; almost two years have passed, and these safeguards and protections are absolutely critical.
John McDonnell
The right hon. Lady mentioned the Afghan scheme. I understand that the debate is about the safety of Rwanda, but I have a concern about this, and I have dealt with Afghani refugees as the right hon. Lady knows. Many of them are on the edge of real mental health issues as a result of the trials they have experienced, and I think the experience of them coming here and being put at risk of being deported again to another state will push many of them over the edge. That must be taken into account as a factor, and that is why the amendment from the Lords is so significant.
Priti Patel
I absolutely and fully understand the right hon. Gentleman’s position on this, but this is a moment of reflection for the Government, too, particularly around those who served our country and worked alongside us in Afghanistan. The Government need to clarify how they have aided and continue to aid those people, some of whom are on the border of Pakistan, which has a range of migration and governance problems right now.
To conclude, we are at a pivotal moment with this legislation. We are also at a crucial moment in our relationship with the Government of Rwanda, who have been a solid and respected partner, diligently working with us. Obviously I speak with full experience, as the original architect of the migration and economic development partnership. We have to go back to the basics of that partnership. As I said last week in the House, things have moved beyond some of the core principles of the original partnership. I urge the Government to do what they need to do in this House today and to settle some of the issues, but really they need just to knuckle down and work on the operational delivery of the scheme.
Mr Carmichael
It is a pleasure to follow the right hon. Lady, particularly given the context she gave to this debate, which is important and worth reflecting on for a second or two. She reminds us that this is in fact the third Bill in this area in this Parliament. Indeed, as the shadow Minister, the hon. Member for Aberavon (Stephen Kinnock), pointed out towards the end of his remarks, we now have another innovation: people are to be offered a cash payment to take the opportunity of going to Rwanda.
What do three Bills and a still evolving political situation and portfolio of arrangements tell us? They tell us that this Government have no strategic purpose in how they are tackling this problem, and that has become apparent from a number of the interventions today.
We have spoken an awful lot about the rule of law. To be honest, this Bill and this debate are not about the rule of law; they are an entirely political exercise. I am pretty certain that the Government will win the votes tonight, that they will face down their lordships, and that they will get their way. I would be astonished if any of the legislation makes any significant difference at the end of the day, because this is not about the law or even about a meaningful approach to the problem of boats in the channel; it is all about politics in the run-up to the election.
One of the most telling interventions came from the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright) and his point about permanence, which was absolutely on point. It is not without significance that nobody has chosen to pick it up, because I do not think there is an answer—or, at least, no good answer. On the question of permanence, let us not ignore the context of where Rwanda is and where Rwanda has been politically and in relation to its neighbours. In January, the US State Department was saying to Rwanda and the Democratic Republic of the Congo that they had to walk back from the brink in the conflict between them. If either or both of them choose not to, where will that leave the safety and stability of Rwanda as a destination for us to send people? The determination, as the shadow Minister said, to legislate to say that somehow or another the sky can be green and the grass can be blue takes no account of those real challenges that are coming down the track.
The Government should look at the authors of the amendments that they will knock back today. One is Lord Hope of Craighead. I remember when he was first appointed as Lord President in Scotland, and I have watched his progression through to being head of the Supreme Court. This is not a man given to making grand political gestures. This is no wide-eyed radical. When he comes up with an amendment to say that the purposes of the Bill should be done in accordance with domestic and international law, that makes perfect sense.
It is not to be forgotten that the roots of this legislation are to be found in a Supreme Court judgment. That caused enormous frustration in Government circles, and we do not forget that, but obeying the law is not an optional extra for any Government. Even if what we are trying to do here is to circumvent the scrutiny of the courts, to resist an amendment that says that decision-makers should treat Rwanda as safe
“unless presented with credible evidence to the contrary”
simply defies any sense of logic.
The hon. and learned Member for Edinburgh South West (Joanna Cherry) made extensive reference to the Home Office guidance on human rights in Rwanda. Her point was good, but it is a nonsense, surely, that in the Home Office, people are beavering away, working out the human rights position in Rwanda, while in another office in the same building, people are drafting clauses saying that the people who will then make the decisions should not allowed to take any account of it. That makes no sense.
If we were serious about finding a solution to the problem and breaking the business model of the people traffickers, the Government would be taking in the Opposition, the Scottish nationalists, ourselves and all parties to try to find a common way forward. In fact, they are doing the opposite. They are seeking to manage the issue politically in such a way as to increase division and not to build consensus. In the time remaining to them in government, they will be able to win votes like this, but they will not do anything to stop the traffic. Ultimately, they will have to be replaced by those who will.
Sir Michael Ellis (Northampton North) (Con)
I rise to reject and oppose all 10 of the Lords amendments. In the other place last week, peer after peer spoke of this Bill as an outrageous affront to the law or “international law”. With great respect, there seemed to be a collective amnesia that it is Parliament that is sovereign and that Parliament secured sovereign authority over generations from what had previously been an absolute monarchy. It probably stems from the Glorious Revolution of 1688. Parliament for centuries now has had sovereign authority to pass any law whatever.
No law that Parliament passes can be “outside the law”. In our system, it is Parliament that is supreme. Despite the misnomer of the court that Tony Blair invented, it is Parliament that is supreme, not lawyers or judges. That is unlike the United States, for example, where judges can strike down a law passed by Congress as unconstitutional. In fact, the UK legislature could do the opposite of that, and strike the Supreme Court down out of existence, if such were Parliament’s will. That is, after all, what Tony Blair himself did when he abolished the 150-year-old principle of the Law Lords and the House of Lords as our highest court and created the Supreme Court just a few years ago. Many think that was an act of constitutional vandalism, and I happen to agree, but whether or not one does, it is axiomatic that what Blair did, one of his successors can at least in theory undo. That is the nature of our system.
As my hon. Friend the Member for Stone (Sir William Cash) said earlier, Parliament derives its authority from the people, and that is why parliamentary sovereignty is so important. It is not an aggrandisement. The law is a living, fluid concept. People change and people’s views change, which is why it is right that the people’s elected representatives in Parliament can have sovereignty over decisions that are made. Two hundred years ago, drawing graffiti on Westminster Bridge was an offence punishable by death; now people can block ambulances on Westminster Bridge and receive no more than a small fine. The law has changed in 200 years, and it is imperative that we bear in mind that it is a fluid concept. It has to keep up with the wishes and will of the people.
Mr Deputy Speaker (Mr Nigel Evans)
Order. If the right hon. and learned Gentleman could mention the amendments now and again, that would be very useful.
Sir Michael Ellis
Thank you very much, Mr Deputy Speaker.
That arrangement is entirely reasonable—and, as I said at the beginning, the amendments are relevant to this whole concept. If one comes to this country illegally, one should not have the ability to repeatedly prevent one’s removal, at vast expense to the taxpayer. However, because of Labour votes that were no doubt whipped by the Leader of the Opposition, the House of Lords defeated the Government 10 times on amendments, seeking to neuter the Bill and ensure that no one was ever sent to Rwanda. They did not vote down the Bill, and did not vote for these 10 amendments, because they want it to work; they did so because they do not want it to work.
What none of those peers on the Opposition Benches did was provide an actual alternative to the Rwanda partnership. None of them could say how they would deter people from getting into overloaded dinghies on the beaches of northern France, or prevent the deaths that will surely follow. In voting against the Bill, the Lords were therefore constitutionally, legally and morally wrong, and I urge the House to overturn their amendments.
Caroline Lucas (Brighton, Pavilion) (Green)
I am grateful for the opportunity to take part in the debate.
This Bill is an affront to the principle that human rights are universal and belong to all of us by virtue of our humanity. The amendments from the other place are an attempt to stop the Government violating that principle and, I would argue, undermining not just Parliament but the courts and the rule of law in the process. Despite unacceptable and unparliamentary pressure from the Prime Minister, who urged peers to rush their scrutiny and simply go along with his dangerous, authoritarian Bill, they have rightly inflicted 10 defeats on the Government. They have done so by large majorities, signalling profound opposition to the Prime Minister’s deeply illiberal, deeply inhumane Rwanda legislation. The Home Secretary’s motions to disagree are consistent with this Government’s track record of cruelty towards people seeking asylum. We saw another example of that very recently in the Home Office’s jaw-dropping admission that it does not routinely inform family members when asylum seekers die in Home Office care.
Lords amendment 1, tabled by Lord Coaker, simply adds maintaining full compliance with domestic and international law to the purpose of the Bill. One might have imagined that that would not be up for debate, and it is a measure of how low this Government have sunk that they are opposing an amendment which simply says that their Bill should comply with the rule of law, something I had thought Conservative Members were meant to believe in. In particular, the amendment is needed to stop the disapplication of the landmark Human Rights Act, something I believe we should be proudly defending. It is also needed to protect interim measures—a vital human rights tool under international law, issued on an exceptional basis in extreme circumstances when individuals face a real risk of serious and irreversible harm.
The Bill states that
“the Parliament of the United Kingdom is sovereign”
and that
“the validity of an Act is unaffected by international law”,
and we have heard a great deal more of that from Conservative Members this afternoon. I think that Ministers should stop misusing the concept of parliamentary sovereignty, which is not embodied by riding roughshod over the courts. Let me draw their attention to a point made very clearly by Professor Mark Elliot, chair of the faculty of law at the University of Cambridge. As he explains,
“Parliament can be meaningfully sovereign only within a functional legal and constitutional system—and such a system can only exist if its other component elements are permitted to play their proper part.”
I suggest that that is exactly the principle that the Government are seeking to trample over with the Bill, which brings me to the way in which the Government are attacking parliamentary sovereignty by undermining the jurisdiction of the courts.
Lords amendment 6, in the name of Baroness Chakrabarti, is vital. It would allow our courts to play their proper part: to hear evidence and scrutinise the legality of Government decisions, allowing our system to protect individuals from risk to life or inhuman or degrading treatment. Likewise, Lords amendments 4 and 5 at least allow for the presumption in the Bill that Rwanda is safe to be rebutted. Without these amendments, the Bill directs courts to ignore the facts that are in front of them. The amendments are a modest reprieve for facts and evidence in what remains a thoroughly vile Bill.
It is extraordinary that the Government can be so fearful of evidence. Why would they not want to look at the evidence before them? Let me refer them to the recently published World Report 2024, which deals with human rights in Rwanda and makes pretty grim reading. It states:
“Commentators, journalists, opposition activists, and others speaking out on current affairs and criticizing public policies in Rwanda continued to face abusive prosecutions, enforced disappearances, and have at times died under unexplained circumstances.”
I also urge Members to consider how constitutionally and legally astonishing the Bill is. The Joint Committee on Human Rights has been explicit about how extraordinary it is, stating that
“Requiring the courts to conclude that Rwanda is safe, even though the evidence has been assessed by the UK’s highest court to establish that it is not, is a remarkable thing for a piece of legislation to do.”
That brings me to Lords amendments 2 and 3, which stand in the name of Lord Hope of Craighead, the former Deputy President of the Supreme Court. There has been much discussion about them, but they require monitoring of the safety of Rwanda, while accepting the assertion that the treaty makes Rwanda safe. Let us suppose for a moment that we suspend our disbelief and our notice of all the evidence now that suggests Rwanda is not safe. Even if it were safe, how on earth can we be legislating that it will be into the future, for any degree of indefinite time? Much in this Bill is an affront to common sense, but that seems to be in a league of its own. Facts change and when they do, we need to change our view of those facts—to do anything less is moving towards a moment of madness.
I want to be clear that although I will vote to uphold these Lords amendments, because they are an improvement on this dreadful Bill, I maintain my view that seeking to legislate by assertion that Rwanda is safe is as dangerous as it is ridiculous. The Government cannot sign a quick treaty one week and legislate the next to make a country safe, when the highest court in the land has said just the opposite. The facts on the ground are what matter and these amendments say that the facts should be monitored. What kind of Government would oppose that?
To conclude, I will vote to uphold Lords amendments 1 to 10 because they make this Bill slightly less constitutionally transgressive and inhumane. The Home Secretary’s motions to disagree with the Lords are laughable, coming just days after he has been exploiting the desperation of vulnerable people by offering them £3,000 to go to Rwanda voluntarily. Amended or not, the Bill remains a grotesque waste of money that is neither practical nor strategic; it is no less than a piece of performative cruelty from a dying Administration.
John McDonnell
Leaving aside the decision of the Court, on Lords amendment 9 we are in danger of reversing the work that this House has put in to ensure the protection of victims of modern slavery and trafficking; removing the amendment makes them vulnerable again, particularly to re-trafficking. I cannot for the life of me understand why there is not support from the Government for Lords amendment 9, which merely asserts the decision maker’s opportunity to assess the impact on the physical and mental health of the individual and their potential to be re-trafficked.
Caroline Lucas
I thank the right hon. Gentleman for his intervention and he is absolutely right in what he says. It is ironic that by refusing these amendments, the Government are, in a sense, going back on pledges and commitments they have made on trying to uphold issues relating to human trafficking; this Bill is hugely damaging on so many levels. Others have spoken about amendments to provide at least some possible protection for unaccompanied children or for victims of modern slavery and those at the highest risk of harm if removed to Rwanda. We must consider what voting against those amendments means, just as we must do in respect of Lords amendment 10, which relates to the people in Afghanistan who have done so much for us, putting their own lives at risk for our Government and our country. On the idea that we would simply send them off to Rwanda, the right hon. Gentleman has already made a powerful intervention about what that would do for people who are already so vulnerable.
I sum up with a message that I hope that peers in the other place will consider. It is, of course, right and fundamental that the House of Lords should act in accordance with its subordinate position in relation to this elected House of Commons—that is the usual way in which we proceed. For the other place to override the Commons, the bar must be an extraordinary and profound attack on the very fabric and operation of our constitutional democracy. I regret to conclude that this Bill is just that and so the other place would be well within its rights—indeed, this is its responsibility—to uphold the amendments it has already put in place. This Bill is demeaning and degrades both Houses by ignoring the rule of laws that we have passed.
Furthermore, the Bill seeks to legislate facts and prevent courts from considering them. Fixing the facts on which the law is to be applied is the kind of thinking that dangerous conspiracies are based on. That way lies authoritarianism. I urge those in the other place to put a stop to this Bill, and I urge everyone in this House to vote in favour of the amendments tonight.
Sir Robert Buckland (South Swindon) (Con)
I note your strong exhortation to address the amendments, Mr Deputy Speaker, and I will address them in turn. It is tempting to get into a debate about whether the Bill offends the rule of law. “The rule of law” is used as an absolute term, but it is in fact a political term; it is an important principle that underlies much of our constitution, but it is sometimes misused and elevated in a way that does not do it or the debate justice. Inevitably, we have had wider discussions about the safety of Rwanda as a country, and about the geopolitics, but that misses the point. The point is whether we can be satisfied that the Rwandan Government are meeting the obligations they agreed to in the treaty of late 2022. That treaty was underpinned by a Government Command Paper and is, in effect, the basis of the Government’s answer to the exam question put to them by their lordships in the Supreme Court.
In the other place, Lord Howard of Lympne spoke powerfully about the need for the arms of the constitution to respect each other, and I entirely agree with him on that. I have said the same here in debates on this issue. We are perhaps not in the place that constitutionalists like me want to be in, but none the less, we are dealing with a judgment of the Supreme Court, based on the merits of the case and the test that it is allowed to apply: was there was a risk of a breach of the European convention of human rights—or, in this case, more a risk of refoulement as set out under the refugee convention? The Supreme Court decided that there was a risk, and the Government have rightly tried to take action to fill that gap.
I simply ask the Minister: is he satisfied that the helpful steps outlined by their lordships’ International Agreements Committee in its report of 17 January are being undertaken? I refer to those nine points that Ministers in the other place were pressed on repeatedly by, among others, Lord Carlile of Berriew, who made the point powerfully. I will not recite the nine steps, but they relate to making sure that Rwanda’s process for dealing with claims is fair, transparent and in accordance with the treaty that it entered into. It is important that the Government and the Minister address that point.
Lords amendment 1 just adds more potential justiciability and legal argument to a clause that, as I have said on other occasions, I despise, because it is full of declaratory law at best, and it creates a lot of legal opportunities for my colleagues in the profession; I declare an interest, of course. I do not think that we can perfect the clause by adding Lords amendment 1. However, Lords amendments 2 and 3 seem to have force, because if we are to go down this road of using deeming provisions, it is vital that we do not end up in a position where the law goes so far ahead of reality—say, through Rwanda’s failure to carry out its treaty obligations, or its slowness to do so—that we create that legal fiction that a lot of us are rightly worried about. I am therefore minded to support Lords amendments 2 and 3.
Sir Jeremy Wright
I am grateful to my right hon. and learned Friend for allowing me to intervene before he moves off Lords amendments 2 and 3. As he knows, I share his concern about the artificial finality that the Bill’s drafting presents. When it comes to the treaty, does he agree that the problem with amendments 2 and 3 is that they give all the authority to the monitoring committee? They allow it to determine that there has not been adequate compliance with the treaty, and under the amendments, that automatically feeds through to a statement that Rwanda is no longer a safe country. Under the rubric of the rest of the Bill, that decision should remain with the House of Commons and the House of Lords, not with the monitoring committee.
Sir Robert Buckland
My right hon. and learned Friend makes a powerful point. The amendment is capable of perfection. The suggestion that I think I made on Report was that the Bill should not to come into force until a Minister of the Crown was satisfied that Rwanda had met its treaty obligations both internationally and domestically. I take his point—more can be done—but there is force in their lordships pursuing that point, so that we marry up the reality with what we want to achieve legally. Unless that is done, I am minded to support Lords amendments 4 and 5, because I am yet to be satisfied that we are in a position where a deeming clause, although not unprecedented—they have been used on a number of occasions—or unconstitutional, is reflective of the reality.
The Lords amendments relating to clause 4 complicate the position. That clause is clearly drafted to deal with individual cases, and I do not think that we should upset that. Lords amendments 7 and 8 do not take matters significantly further. However, Lords amendments 9 and 10 have some force. Exemptions relating to modern slavery should be clear. We have led the world in our modern slavery legislation, and have a proud record on it. That work was led by my right hon. Friend the Member for Maidenhead (Mrs May) and others in their lordships’ House. It would be unfortunate, to say the least, to end up with the Bill riding a coach and horses through our important provisions on modern slavery; I am sure that is not the intention of my colleagues on the Front Bench.
Finally, on the Afghan provision, both my right hon. Friend the Member for Witham (Priti Patel) and I were in the trenches, working on that issue, back in the summer of 2021. I was helping to get judges out of Afghanistan, while she was working day and night to ensure that we saved people who had risked their lives for our way of life. I take her point and, in fact, would go further: although I expect the Government to be sensible and sensitive to the position of any future Afghan refugees and not put them into this scheme, it seems to me that we would lose nothing by accepting amendment 10.
For the reasons that I have given, the Lords amendments are a curate’s egg, as all Lords amendments will be, but there are times when it is important that a point is made. I am afraid that this is one of those occasions when I will make that point.
Sammy Wilson
The Democratic Unionist party supports the Bill, wishes it to come to fruition, and hopes that it achieves its objectives. I will not rehearse all the reasons why, which have been given plenty of times in other debates, but we must tackle the criminal gangs. We cannot go on with the pressures and costs that mass illegal immigration puts on society, the Government and the taxpayer. For that reason, we will oppose most of the Lords amendments. As the Minister and other speakers have pointed out, many of the amendments are designed to weaken the Bill, undermine it, and ensure that it does not work, so that we remain with the old, flawed system that we have been trying to put aside.
The Minister said that the Government oppose the Lords amendments because they do not want the Bill weakened, and he is right, but the Bill is already weakened in respect of one part of the United Kingdom. I seek assurances from him; how does he come to the conclusion that pushing the Bill through will safeguard all parts of the United Kingdom against illegal immigration that is being channelled through different parts of it? The Government promised in “Safeguarding the Union” that the Bill will apply to the whole of the United Kingdom, but that was written in full knowledge that following a court judgment in Northern Ireland, the Bill could not apply there because of section 7 of the European Union (Withdrawal) Act 2018 and article 2 of the Windsor framework. Two more court judgments since then have made it quite clear that because of article 2, the Bill cannot apply to Northern Ireland, where the full weight of EU law and the full protections of the European convention on human rights and the European charter of fundamental rights apply. That means that many parts of the Bill will be disapplied in Northern Ireland. There are three court rulings on this.
The Government know what is in the Windsor framework, the withdrawal agreement and the withdrawal Act, yet they continue with the argument that, despite all that, the Bill applies to Northern Ireland. I would like to hear from the Minister where that assurance comes from, given that he knows the terms of the legislation and the Windsor framework, and about the three court judgments—from October, February and the end of February.
If Northern Ireland becomes the weak spot, the policy becomes meaningless. People think, “The boats aren’t going to come from France across the sea to southern Ireland on a 24-hour journey, and people will not come up through to Northern Ireland,” but it must be remembered that of 77 cities in the United Kingdom, Belfast already has second-highest number of illegal immigrants per 10,000 of population. There is already a channel through the Republic into Northern Ireland and then, of course, into England. That needs to be addressed, because a promise has been made in a Government deal, and because of how that could undermine the whole immigration policy. Of course, if Northern Ireland does become that channel, the real danger is that we finish up not just with a border for goods, but with passport controls for people moving from Northern Ireland.
Mr Deputy Speaker (Mr Nigel Evans)
Order. Could you mention some of the amendments as well?
Sammy Wilson
Yes, I am doing so, Mr Deputy Speaker. The point I was making was that we will support the Government in rejecting Lords amendments 1 to 6 because they weaken the Bill, but the Government must recognise that their own inaction is also weakening the Bill.
I am surprised at the attitude that the Government have adopted to Lords amendment 8. Since the policy is designed to assure people that the Government have got on top of illegal immigration, I would have thought they would have welcomed the opportunity to publish daily the number of people who have been removed from the United Kingdom. In fact, I would have thought they might have done a Ken Livingstone: put a banner on the building across the river and published daily, “This is how many people we have removed.” Is the reality that the Government know that the Bill will not have the wanted effect, and that the publication of such information would be an embarrassment? We support that amendment, because we believe that there should be a very public way of judging the success of the policy.
I really cannot understand the Government’s attitude to Lords amendment 10, either. We have a duty to those who served with the Army in Afghanistan at difficult times, putting their life in danger, and who are now in danger of losing their life under the brutal Taliban regime, which wants to take revenge. It is not that people could use such a provision to sneak their way into the United Kingdom; we have good records on those who served the Army. They and their families are at risk, and surely we have a duty to them.
I remember speaking to people from Northern Ireland who served in Afghanistan. They spoke glowingly of the folks who interpreted for them, and the folks who gave them background knowledge, supplied them with information, went out with them on patrol daily and so on. We have a duty to those people. I cannot understand why the Government would resist Lords amendment 10. We will certainly be supporting it, because we believe we have that obligation. I would like to hear from the Minister how the promise made in paragraph 46 of the “Safeguarding the Union” deal will be delivered in Northern Ireland, given that courts have judged and ruled that the Bill cannot apply in Northern Ireland. If it cannot apply in Northern Ireland, are the Government aware of the consequences for Northern Ireland of being further isolated from the rest of the United Kingdom?
Kevin Foster
It is always a pleasure to follow the right hon. Member for East Antrim (Sammy Wilson). I agree with much of what he said, but I will differ from him on the one or two amendments he plans to support.
It is worth remembering the purpose of the Bill. It is about dealing with one of the knottiest problems in illegal migration policy, which is what we do about those who leave a safe and democratic country to come to the UK, as a choice, who we then cannot return to their home country—either because of the domestic policy of the country, which the Minister will know about, or because it is a country we are realistically not going to be able to engage with on immigration removal. Then they seek to take advantage of our asylum system. In many cases, that is the core of the people traffickers’ business model. These people can include those who have had lawful residence in another safe, democratic country but then come to this country and apply for refugee status. For me, the Bill has to be about delivering a process that breaks the people smugglers’ business model.
My right hon. and learned Friend the Member for Kenilworth and Southam (Sir Jeremy Wright)—I am pleased to see him in his place—really summed it up: these amendments are not about making the Bill work better or getting this process in a better place. They are about creating routes to challenge, delay and block up. I listened to the points he made, such as on permanence. Of course, Parliament is always free to take a different view on legislation presented. No Parliament can bind another constitutionally, so a future Parliament could take a view that Rwanda is no longer safe, but for now we are quite entitled to take a view as to whether it is. Particularly with the treaty obligations and the work being done, we can say that Rwanda is safe for a refugee to be transferred to.
The core of the Bill is about working with another country that is an expert in resettlement, and being able to provide for people with a genuine safety need or who are seeking safety. It is not about allowing the continuation of the idea that if someone pays a trafficker, they can choose where that safety need is met—that is, here in the United Kingdom. Lords amendment 6 allows a range of challenges to the idea that Rwanda is not safe. Again, I look at the fact that Rwanda is working with the UNHCR on refugee resettlement. If it were inherently dangerous to take someone to Rwanda or there were a massive danger of refoulement on to a country where they would face persecution, that system could not exist.
It is perfectly reasonable that we can come to our own agreement with Rwanda that will be effective and respected, and that we can rely on in defining the country as safe. I sadly do not have time to go into all the elements touched on in the debate, such as the issues we had with our age assessment system, but it is similarly perfectly reasonable to say that with new processes coming in, we can take a view. A lot of challenges are raised up not because they will ultimately succeed but because they delay removal.
I am going to disagree a little bit with what the right hon. Member for East Antrim and others said about amendment 8. First, it says “referring to all individuals”. In a strict interpretation of that, we would list everyone’s name and address, which would clearly not be appropriate at all, neither would it be appropriate to list the timetable for the removal of individuals from this country. That would involve going into a publication of data that the Government would not normally go into, for fairly obvious reasons. The idea that we will not get reports and constant commentary on how the process is going without amending the Bill does not stand up.
Like my right hon. Friend the Member for Witham (Priti Patel), I worked on Op Pitting, and I saw the work we did to get people out of Afghanistan. Yes, we do need to look at how we can unblock some of the ARAP process, but a lot of that is to do with finding places to settle here in the UK. It is one of the biggest issues with many of our resettlement schemes. One of the great successes of the Ukrainian scheme was people coming forward, but with the Afghan one we were reliant in many cases on local councils to offer spaces, which—unsurprisingly, given the well-known housing pressures—not many rushed to do. There is a debate to be had there, but it is not resolved by amending this Bill and providing another route to challenge or make a claim, when there is a likelihood that that route will be used by those who perhaps never had anything to do with our forces but see it as a way to not be transferred to Rwanda.
I do find interesting some of the counterintuitive arguments we have heard from the Opposition Benches that this is all a bit of a gimmick and is not going to work. If that was the case, why waste time amending the Bill? Why not let it go through, let the Government get their legislation and then spend the rest of the year saying, “Look, it didn’t work”? We know what the real fear is: it is that if the Bill goes through, this plan will work. The Bill can be perfectly credible and go forward. Some of the objections we have heard sit with me and go against the fact that the UNHCR itself is taking people to Rwanda in very large numbers, as has already been mentioned.
Without the Bill, and without it being an effective Bill—that is, a Bill without these amendments—what is the plan B? What is on offer to try to break this fundamental part of the people smugglers’ business model? We are told about cracking down on gangs, but my hon. Friend the Member for Bosworth (Dr Evans) rightly pointed out that there have been a lot of prosecutions, arrests and convictions already, and he asked how many more the Opposition are proposing. There was no real answer. The answer is that their opposition is just a soundbite, nothing else. It is like the claim that all we need to do is walk in the door and we will get a great deal out of France. Well, good luck with that. I know from my own dealings with authorities on the continent that it is not just a case of walking in the door, making a demand and suddenly getting everything we want.
As was said earlier, the amendments may be very elegant and well worded, but at the end of the day they are nothing but wrecking amendments, intended to obfuscate the process, bung it up, delay it, and reopen routes to challenge that the Bill is specifically looking to shut down. The Bill looks to transfer people to a perfectly safe country that is an expert in resettlement, works with other groups on resettlement and is perfectly able to work with the United Kingdom. Parliament is perfectly able and right to take the view that it is safe to do so.
Patrick Grady
We have all heard the admonitions about speaking to the amendments, but it is worth reflecting on the absence of any amendments in lieu on the amendment paper. During earlier stages of the Bill there were star chambers, the five families, propositions to strengthen the Bill and all kinds of dark mutterings about what might happen if it was not strengthened sufficiently, but the Bill cleared this House without any amendment. Now consensus appears to have broken out on the Conservative Back Benches that the Bill does not in fact need any further changes and should remain unamended—so it does not need strengthening after all. Perhaps that is because this is a Bill that nobody really wanted. All it has done is create problems for the Government and the Prime Minister that did not have to exist in the first place.
The Bill creates significant new precedents, undermines established principles and conventions, and moves the UK away from a framework and structure of international law that has protected our freedom and human rights for nearly 80 years since the end of the second world war. It is not really the Safety of Rwanda Bill; it is the safety of the Prime Minister Bill. It has all been designed to try to keep certain elements of his Back Benches happy, and on that test it seems to have failed, just as it has failed in practically every other criterion it could be assessed against. The evidence of that is before us in the 10 amendments that have been made on a cross-party basis by Members of the House of Lords. As we have heard in all the Opposition speeches today, many of these are completely reasonable, sensible tests and requirements. If the Government were genuinely confident about the effectiveness of their policy and the safety of Rwanda as a place for the deportation of asylum seekers, they should be able to accept the Lords amendments without difficulty.
The amendments to clause 1, proposed by Lord Coaker and Lord Hope of Craighead, simply lay out the criteria by which Rwanda should be judged safe, and on the Government’s own terms based on the treaty that they have signed. I agree with the points made by the right hon. Member for Orkney and Shetland (Mr Carmichael) about the significance of Lord Hope adding his name to the amendments—I declare an interest because, many years ago, he conferred an undergraduate degree on me when he was chancellor of the University of Strathclyde.
The amendments to clause 4 in some way get to the heart of the debate and the issues at stake in the Bill. The debate is not really about whether Rwanda is safe in general terms. As I said on Second Reading, I visited Rwanda, as have a number of Members who have spoken, in 2018 with the Commonwealth Parliamentary Association. It is a beautiful country with huge potential. Its people have had to live through incredibly difficult circumstances. For wealthy tourists who fly in, go on safari and stay in nice hotels—or those who go on Select Committee or CPA visits—Rwanda is a safe and welcoming country. However, citizens who speak up too loudly with questions about the regime, who ask why international observers have been unable to report that presidential elections have been free or fair, or who belong to the LGBT community in that country, or Rwandan citizens living in London under the protection of the Metropolitan police because they are being stalked by their country’s intelligence services, might not find Rwanda quite as safe and welcoming.
The question is not whether Rwanda is generally safe, which is how the FCDO official travel guidance describes the country—it will be interesting whether it will update that guidance on the basis of the Bill. The issue is whether it is safe for asylum seekers and, even then, not for asylum seekers generally as some amorphous mass but every individual asylum seeker who might be sent there. Everyone’s personal circumstances are different; everyone’s story is unique. As the Refuweegee charity says, “We’re all fae somewhere.” Lords amendment 6 recognises that and provides for consideration and review of individual claims and cases. Those kinds of checks and balances ought to be expected in any kind of decision- making system, especially ones that make fundamental choices about the lives of the individuals concerned, but Ministers do not like to individualise the issue. They have lost sight of—or perhaps they have never really cared about—the wellbeing of the human beings at the centre of this debate.
Last week the Minister kindly accepted an invitation to visit Glasgow—something none of his predecessors has been prepared to do. I hope that when he comes, he will meet and listen to some of my constituents who are supported by the Maryhill Integration Network, Refuweegee, Glasgow Afghan United and other organisations that work with refugees and asylum seekers to make them welcome in the city. He will see how people who have come here on small boats, on the backs of lorries or through other irregular means have not done so for purely economic reasons. They have come fleeing war, climate change, persecution and many other situations barely imaginable to many of us who live in relative comfort and safety in Scotland and in the UK. All they want is to be safe and to be able to contribute to their new community and society.
There is nothing good about the Bill. It should be scrapped in its entirety. It is unnecessary, unworkable and unloved by all sides of the Conservative party and the House. The Lords amendments provide something in the way of mitigation, and the House should support each of them tonight. I hope that it has the chance to divide on each of them, too. The Government, their Back Benchers and everyone else who supports the Bill ought to be made to work for it. If they think walking around the Lobby for two hours is tough, they should try getting on a small boat or on the back of a lorry and see how they feel about that.
If the Government use their majority to send the amendments back, the Lords ought to think carefully about how their amendments in lieu might achieve similar aims, and not simply cave at the end of the first round of ping-pong. The Bill was not in the Government’s manifesto or even in the King’s Speech, so there is no convention, principle or anything else stopping the Lords from continuing to insist on versions of their amendments. We on the SNP Benches are not supporters of an unelected second Chamber, but if Members on the Government Benches—and, more pertinently, on the official Opposition’s Benches—think that an unelected House of Lords is a good idea and has a role to play in the UK constitution, they ought not be prepared to see the Lords simply cave in on this kind of legislation; Opposition Members should ensure that their colleagues in the House of Lords continue to hold the Government to account in the way that they think the UK constitution ought to work.
In reality, all this is getting us further away from the SNP’s vision of an independent Scotland with an open and welcoming asylum and immigration system—and the more that the Government and the official Opposition continue to push that divergence, the closer that independent Scotland will come.
Mr Deputy Speaker (Mr Nigel Evans)
Order. I intend to call the Minister to wind up at no later than 7.50 pm. I expect 10 votes, starting at 8 pm or before. Those who have participated in the debate should make their way to the Chamber now. Mr Shannon, I am not putting the clock on you, but I ask you to resume your seat by 7.50 pm.
Jim Shannon
It is a real pleasure to speak in this debate, Mr Deputy Speaker. I thank right hon. and hon. Members for their comments. This is no doubt a contentious issue on which we all have opinions, but ensuring safety for all is everyone’s main priority. My right hon. Friend the Member for East Antrim (Sammy Wilson) set out the position of the Democratic Unionist party.
I want to make three points in the next five minutes. The first relates to Lords amendment 10 and those who helped us in Afghanistan. In February 2022 I met an Afghan national who served alongside one of my constituents in an Army role. I do not want to go into any more detail about that, other than to say that that man and his four children are under threat in Pakistan. I have done everything in my power as an MP, along with other MPs, to try to get him home. We have got him a house and job. The hon. Member for Torbay (Kevin Foster) said that all they are getting is a place, but we have got him a house and a job in a company in Newtownards. We will get his children integrated into school, because we have done that already with Syrian refugees. We took them in, and they are established and do not want to leave. My first question to the Minister about ensuring that we can do that.
Secondly, I refer back to my earlier intervention about the Northern Ireland court ruling. A legal decision has been taken in Belfast, and the Minister clearly responded that it will be challenged. I wish the Minister well on that challenge, and I hope that the ruling can be overturned. If it is, Northern Ireland will be the same as every other part of the United Kingdom. If not, we are clearly different. I hope the Minister will come back to me on that.
Thirdly, I said earlier that I am the chair of the APPG for international freedom of religion or belief, which is an important issue for me and for many MPs in this House, and some Members of the House of Lords. We have 174 members—MPs and peers—which indicates the importance of the issue. Ensuring that religion is respected is so important to me and others. I am going to speak to some of the Lords amendments, as everyone has done in their own way. Clause 2 would require decision makers conclusively to treat Rwanda as a safe country. If that presumption is made, it is crucial that the same presumption applies to how members of certain communities will be treated once there. We can have all the freedom of religious belief in this great United Kingdom of Great Britain and Northern Ireland, but if they do not have it in Rwanda, the whole object of the exercise has been defeated. I seek that assurance.
Lords amendment 6 would further allow decision-makers to determine whether Rwanda can be deemed a safe country for certain individuals or groups of similar persons. I am pleased that this protection has been addressed, because it could protect certain groups of people of a particular religion, to ensure their safety. The only concern is that if there is more scope for granting injunctions that delay removals, we could see ourselves in a similar position of a long list of delayed Home Office decisions that could take months to be concluded.
I am pleased that protections are being considered for victims of slavery or human trafficking. Given that victims are brought to the UK involuntarily, their circumstances should be assessed differently to ensure their safety. Under-18s may not have a parent with them, so special provisions must be in place. In the short time that the Minister has, I ask him to ensure that protection is given to them so that they are not taken advantage of—that is critical.
It is always important to debates these issues thoroughly, as they have been by Members on all sides of the Chamber, with slightly different opinions. Other people’s lives are in our hands, and these issues are paramount. There is no doubt that we have a problem with illegal migration in this country, as my right hon. Friend the Member for East Antrim said. No one in the Chamber, from whatever party, can ignore that issue, but there are exceptional circumstances for some people, and consideration must be given to them. No matter where they are being deported to, it must be a safe place for those with specific religious beliefs. They must be protected. If we can protect them and their freedoms, human rights and religious beliefs wherever they may be, that will be a step in the right direction for me, as the chair of the APPG for international freedom of religion or belief. More importantly, it will be a step in the right direction for those people who are making the choice to go to another country.
Michael Tomlinson
May I start by thanking every single right hon. and hon. Member who has contributed during the course of this debate? It has been detailed, thorough and constructive, and I am grateful to each and every one who has contributed. I shall start in reverse order with the hon. Member for Strangford (Jim Shannon), who is so often left until the end. It was delightful to see him without a time limit on the clock at least. I will come back to his point on amendment 10 at the end, as a number of hon. Members have mentioned it. On the question of under-18s, article 3.4 of the agreement does not cover unaccompanied children. I know that he will be partially reassured by that.
On his important comments on religion and faith, I point him to articles 11 and 16 of the constitution of Rwanda. I know that he will look at them, and I hope he will find reassurance there.
Turning to the penultimate speaker, the hon. Member for Glasgow North (Patrick Grady), to whom I always listen carefully, he has renewed his invitation and I accept once again. I confirm that I look forward to my visit with him to Glasgow.
Going back to the beginning of the debate, perhaps one of the most instructive parts was the exchange between the shadow Minister, the hon. Member for Aberavon (Stephen Kinnock), and my hon. Friend the Member for Torbay (Kevin Foster). It contained the foreshadowing of a comment made time and again by my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton), who is in his place and who repeatedly makes the point that it is incumbent upon anyone who disagrees with this policy to come up with their own solution to the problem of how we should deal with people who enter the country with no legitimate, credible case for claiming asylum and being granted safe haven but who cannot be returned to their home country. That point was made powerfully today by my hon. Friend the Member for Torbay, but once again, answer came there none.
I agree with the opening remarks of my right hon. and learned Friend the Member for Kenilworth and Southam (Sir Jeremy Wright) and with hopefully more than just the first half of his speech, but certainly the first half of it. He characterised this debate, this Bill and this issue incredibly well and I encourage Members to turn to his speech. I agree with his assessment of amendments 2 and 3. He is right to say that they would transfer authority on to the monitoring committee rather than on to Parliament, which is the right place for it to be. He tempted me to delve further into issues that he rightly acknowledged are not strictly part of this debate—at least not today—but I will consider them carefully, as he knows. I am grateful to him for his contributions.
On the last occasion that the hon. Member for Glasgow Central (Alison Thewliss) and I exchanged views on this Bill, I undermined her credentials by not disagreeing with each and every one of her submissions. I will start to make amends today and pick her up on two issues. On the emergency transit mechanism, it is a treaty—it is an agreement that has been signed by the African Union, the UNHCR and the Government of Rwanda. It is important. It is supported and backed by the EU to the tune of €22 million and has been warmly welcomed by the EU ambassador with words that I do not have time to repeat now, but I read them out at the outset of the debate. I agree with the hon. Lady when she said that the amendments were designed to undermine the purpose of the Bill. She was very plain and open about that, in stark contrast to those on the Labour Benches.
My hon. Friend the Member for Rother Valley (Alexander Stafford) also made that point powerfully, as did the hon. Member for Brighton, Pavilion (Caroline Lucas). They confirmed that these are wrecking amendments. If anyone wants to put a stop to the Bill, they should support these amendments. My hon. Friends the Members for Stone (Sir William Cash) and for Rother Valley talked about sovereignty of Parliament. My hon. Friend the Member for Stone talked about clear and unambiguous language and cited the famous paragraph 144 of the Supreme Court judgment. He also cited Lord Hoffmann. I agree with him when he speaks about the strengths of our unwritten constitution.
Can I gently push back on something that the Chair of the Select Committee, the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), said? My hon. Friends the Members for Gloucester (Richard Graham) and for Rother Valley tackled the deterrent effect powerfully at the outset. The deterrent effect is there. Albania has already shown that: numbers have dropped by over 90%. Can I also gently push back with her on scrutiny and respectfully point out once again that both myself and the Minister for Legal Migration and the Border, my hon. Friend the Member for Corby (Tom Pursglove), were in front of her Committee within hours of being appointed? Indeed, so much did my hon. Friend enjoy that experience that he was back in front of her Committee again last week. Having read the transcripts and seen the reports of it, I know that it was a constructive and instructive exchange between the Committee and the Minister, and rightly so. We had the debate last week and we have had the debate again today: scrutiny, scrutiny, scrutiny—something I very much welcome and that I know my hon. Friend the Member for Corby welcomes, having appeared twice before the Committee in quick succession.
The hon. and learned Member for Edinburgh South West (Joanna Cherry) spoke about her visit to Rwanda. May I gently say that I disagree fundamentally with her assessment? I suggest that the evidence needs to be looked at in the round. It is a powerful thing that evidence has been put forward that represents the spectrum of views, but it needs to be looked at in the round. In relation to Rwanda, I disagree with her because we on this side are confident in the Government of Rwanda’s commitment to implement this partnership. We are clear that Rwanda is a safe country.
There were some instructive and powerful interventions on this from my hon. Friend the Member for Hartlepool (Jill Mortimer). I am also grateful to my hon. Friend the Member for Sleaford and North Hykeham (Dr Johnson) for her speech, having just been to Rwanda, and for giving her powerful assessment of where we are.
I am grateful to my right hon. Friend the Member for Witham (Priti Patel), who talked about the monitoring committee. What she said was absolutely right, and not just because one member of that committee is a former Solicitor General. It is an important institution. Paragraph 101 of the policy statement sets out more detail on that. My right hon. Friend is the author and architect of this and therefore speaks with great authority. I am grateful to her for reminding the House about this. I also have time to mention the economic partnership, which she mentioned last Thursday as well. That is something we should not forget, and it was mentioned on Second Reading.
I am very grateful to my right hon. and learned Friend the Member for Northampton North (Sir Michael Ellis) for his intervention. He spoke about the essence of democracy: the law is our servant. I heard a “Hear, hear” from another former Solicitor General at the back of the Chamber at that point, and he was right to say so. As my right hon. and learned Friend said, this Bill is the constitutionally appropriate response to the Supreme Court judgment—respectful, listening and responding to the concerns contained therein.
The monitoring committee is the one thing that I would mention to my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland). I would gently point out to him, as my right hon. Friend the Member for Witham did, that the right checks and balances are in place. My right hon. and learned Friend the Member for South Swindon spoke about amendments 2 and 3, saying that they would transfer authority from Parliament to the monitoring committee, and he is right.
In response to the right hon. Member for East Antrim (Sammy Wilson), I only have time to repeat that the Bill applies across the entirety of the United Kingdom, but I am grateful to him for his intervention.
On amendment 10, I repeat that the Government recognise the commitment and the responsibility that come with combat veterans, whether our own or those who have shown courage by serving alongside us. We will not let them down.
These amendments either seek to undermine the primary purpose of the Bill or are simply unnecessary, as they do not support the purpose of the legislation.
Question put, That this House disagrees with Lords amendment 1.
Mr Deputy Speaker (Sir Roger Gale)
Order. Before we proceed, I am informed that a Member swore at one of the Doorkeepers this evening, who on my instruction locked the doors. If that person is identified, the consequences will be very severe. We now come to Lords amendment 8.
After Clause 5
Removals to Rwanda under the Illegal Migration Act 2023
Motion made, and Question put, That this House disagrees with Lords amendment 8.—(Michael Tomlinson.)
Clive Lewis (Norwich South) (Lab)
On a point of order, Mr Deputy Speaker. I put on record my apologies to the Chair, to Members, and to members of staff for an earlier outburst that I had. Let me very quickly explain. I received a message that caused me some consternation and surprise, to which I made an outburst in general at no one specifically. If I could do it again, I probably would have said something like, “My giddy aunt!” rather than what did come out of my mouth, and for that I apologise. To clear the air, I put on record the fact that it was directed at no one in particular.
Mr Deputy Speaker (Sir Roger Gale)
I appreciate the hon. Gentleman’s candour in identifying himself and the fullness of his apology, which is accepted.
Business without Debate
Mr Deputy Speaker (Sir Roger Gale)
Before I come to motions 4 to 13 on the Order Paper, I should draw the attention of the House to an error under item 11 in the printed version—it has been corrected online. The version of the Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024 that is before us today and that was considered by the Delegated Legislation Committee is the draft laid on 1 February 2024, not the draft laid on 10 January 2024, which has been withdrawn and replaced.
Delegated Legislation
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Local Government
That the draft Combined Authorities (Overview and Scrutiny Committees, Access to Information and Audit Committees) (Amendment) Regulations 2024, which were laid before this House on 19 February, be approved.—(Suzanne Webb.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Education
That the draft Tertiary Education and Research (Wales) Act 2022 (Consequential Amendments) Order 2024, which was laid before this House on 22 January, be approved.—(Suzanne Webb.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Pensions
That the draft Occupational Pension Schemes (Funding and Investment Strategy and Amendment) Regulations 2024, which were laid before this House on 26 February, be approved.—(Suzanne Webb.)
Question agreed to.
Electricity
Motion made, and Question put forthwith (Standing Order No. 118(6)),
That the draft Electricity Supplier Obligations (Excluded Electricity) (Amendment) Regulations 2024, which were laid before this House on 22 January, be approved.—(Suzanne Webb.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
That the draft Renewables Obligation (Amendment) (Energy Intensive Industries) Order 2024, which was laid before this House on 23 January, be approved.—(Suzanne Webb.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
That the draft Electricity Capacity (Supplier Payment etc.) (Amendment and Excluded Electricity) Regulations 2024, which were laid before this House on 22 January, be approved.—(Suzanne Webb.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
That the draft Energy-Intensive Industry Electricity Support Payments and Levy Regulations 2024, which were laid before this House on 22 January, be approved.—(Suzanne Webb.)
Question agreed to.
Companies
Motion made, and Question put forthwith (Standing Order No. 118(6)),
That the draft Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024, which were laid before this House on 1 February, be approved.—(Suzanne Webb.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
That the draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024, which were laid before this House on 19 February, be approved.—(Suzanne Webb.)
Question agreed to.
Motion made, and Question put forthwith (Standing Order No. 118(6)),
Sanctions
That the Russia (Sanctions) (EU Exit) (Amendment) Regulations 2024 (SI, 2024, No. 218), dated 26 February, a copy of which was laid before this House on 28 February, be approved.—(Suzanne Webb.)
Question agreed to.
Committee of Public Accounts
Ordered,
That Sir Jeremy Quin be discharged from the Committee of Public Accounts and Matt Warman be added. —(Sir Bill Wiggin, on behalf of the Committee of Selection.)
Petition
Cadet Expansion Programme
(8 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
James Sunderland (Bracknell) (Con)
It is a huge privilege to lead tonight’s Adjournment debate on the cadet expansion programme, and I am grateful to the Minister for responding to it.
Almost exactly 40 years ago, when I was a young Army cadet in Guildford, the combined cadet force at my school deployed to Okehampton for its Easter camp. During that week, cadets participated in a night navigation exercise across the notorious Dartmoor. Given the cold weather and awful terrain, that would have been a challenge at any time, but we had barely left Okehampton when thick fog engulfed us, to the point that you could not see your hand in front of your face. Sensing the danger, the three of us in my group used all the training that we had been given not just to get off the moor, but to complete the exercise together.
The young cadets alongside me were Hamish Walker and Graham Atkinson. I will never forget the experience. Anyone who is familiar with military service will know that heightened sense of vigilance and excitement when travelling cross-country at night. Totally confident in what the map and compass were telling us, and meticulously counting our paces, we worked together to double-check our navigation and agree every decision we made—this was long before sat-nav. We were utterly blind because of the fog, but we trusted our instincts, training and the compass needle, and that potent combination of teamwork, resilience, informed judgement, competitive spirit and confidence that one gets with military service saw us succeed against the odds, even as 13-year-old kids.
This, however, was typical of what cadets still do. Whether abseiling down dams, building shelters, learning to ski or shoot, escaping from a capsized canoe, preparing an ambush or cooking in the field, the skills I acquired as an Army cadet, for five years at school and for a further three years in the university officer training corps, were pivotal to everything I am today. While the cadet movement does not exist to recruit people for a military career, it was so formative for me that it gave me the skills to thrive at the Royal Military Academy Sandhurst, which I now represent as the local MP, and throughout a 27-year military career. My response to almost everything that has been asked of me since leaving the cadets probably has its foundation in my time with the cadets, so it has made a huge difference to me personally.
What of the cadet forces themselves? The Ministry of Defence sponsors five different types of cadet forces. The sea cadet corps, the volunteer cadet corps, the Army cadet force and the air training corps are single service in nature, not tied to schools, but the fifth, the combined cadet force, offers more tri-service balance and is hosted in schools, with adult volunteers often coming from the teaching staff. All these units are voluntary organisations that offer challenging and enjoyable activities for young people, and prepare them to play an active role in their community while developing life skills. While they do model their traditions and ethos on their parent service, they are not actually part of HM forces and do not of course have any formal military role.
The sea cadets consist of over 14,000 young people and 5,000 adult volunteers in 400 units across towns, cities and ports, undertaking activities such as sailing, boating and coastal navigation. The volunteer cadet corps offers something very similar, but is more tightly connected to naval families. It consists of around 460 cadets and 150 volunteers, located in eight naval bases across southern England and Scotland. The Army cadet force has over 37,000 cadets and 9,000 adult volunteers, and it celebrated its 150th anniversary in 2010. The fourth of the non-school units is the air training corps, which consists of over 44,000 cadets and volunteer staff in over 900 squadrons across the UK, encouraging participants to take an active interest in aviation and the Royal Air Force.
Jim Shannon (Strangford) (DUP)
I commend the hon. Gentleman for bringing forward the debate; we spoke beforehand. The schools cadet expansion programme in Northern Ireland has gone from success to success, with Kilkeel High School in the constituency neighbouring my Strangford constituency becoming the newest cadet force. This week, 139 pupils from schools across Northern Ireland entered the cyber-skills challenge competition, which is fantastic. Does the hon. Gentleman agree that Northern Ireland is very much setting the targets for other cadet forces across the United Kingdom to try to match up to? Does he also welcome the fact that almost as many Roman Catholics are now joining the cadet forces in Northern Ireland as Protestants?
James Sunderland
I thank the hon. Member for his intervention, and I completely agree. What is happening in Northern Ireland is an exemplar for the cadet movement. It is quite something that we have a balance between Catholic and Protestant children in these units. This is about cohesion and community, and what is happening over there is commendable.
As for the combined cadet force, units exist in over 260 schools across the UK. Traditionally, they are the preserve of independent schools, with over 200 of them hosting detachments, but there are now at least 60 units in state schools too. They offer young students a broad range of exciting, adventurous and educational activities that complement the normal school curriculum during the evening, at weekends and during the holidays. Like the other cadets units, they help to develop personal responsibility, leadership, teamwork and self-discipline. In my view, it is no coincidence that many young cadets emerge to be highly successful in their chosen career fields.
In Berkshire, I am proud that we have a strong pedigree with the military presence there. I could again mention the Royal Military Academy at Sandhurst, the headquarters of 77 Brigade at Hermitage, the Household Cavalry Regiment and the 1st Battalion of the Coldstream Guards in Windsor, 7 Rifles in Reading and so much more, but I really want to highlight the Royal County of Berkshire Army cadet force. This currently supports over 600 cadets and 120 adult volunteers in 18 detachments, many of which I see on Remembrance Sunday and at special events alongside the lord lieutenant. I give a big shout-out for 7 Platoon in Bracknell, which does so much locally, trains and plays hard in equal measure, and always looks so smart.
While we do not, sadly, have a sea cadets unit in my constituency, Bracknell is home to 2211 Squadron of the Air Training Corps. I met several of the cadets recently, and it never ceases to amaze me just how much is on offer. It is even possible for cadets to go flying and set themselves up to gain pilot licences. To anyone watching from Bracknell Forest I say: please do consider joining the Army Cadet Force or Air Training Corps locally; it is a real opportunity.
As for the Combined Cadet Force, there are two detachments in my constituency. Wellington College has an established military presence and a proud history of service. While I have not yet been invited to visit, it is a good one by reputation. At Brakenhale School in Bracknell, I have watched with wonder as a fledgling detachment has evolved under the superb leadership and vision of both Second Lieutenant Bury and Second Lieutenant Gildersleve. Getting that off the ground from virtually nothing is quite an achievement, and the detachment serves as an exemplar for the cadet expansion programme, with over 100 pupils in Bracknell now being given the opportunity to wear uniform, train with the British Army, get adventure training and learn life skills that they may otherwise not have done. I cannot commend Brakenhale School enough for everything that it is doing, and I am looking forward to the annual inspection later this year.
So what of the cadet expansion programme itself? It was first launched on Armed Forces Day in June 2012 by the then Prime Minister David Cameron, with the aim of delivering 100 new cadet units in English state-funded schools by September 2015. This target was reached six months early, in March 2015, and following that achievement, the Government committed an extra £50 million from LIBOR fines to further increase the number of cadet units in schools across the UK, bringing the total to 500 by 2020. Phase 3 is now under way, and the Minister is sure to provide a progress report later.
The cadet expansion programme is part of the Government’s aim of promoting the military ethos in schools; instilling values in young people that will help them to get the most out of their life and contribute to their community; and fostering those essential qualities of resilience, independence and teamwork that will assist young people on their chosen career path. Mirroring what has already been achieved in the private sector, state schools that have set up cadet units are offering significant benefits to their young people; there are also benefits to the school and the local community. Headteachers report that they have seen significant improvement in attendance and behaviour, attainment, commitment, self-confidence and discipline, and that relationships between staff and students have improved. The sense of pride that some students feel is also palpable, and given that the Government are a champion of aspiration, opportunity, ambition and enterprise, I want to see this programme developed further and faster, so that all pupils, irrespective of their background, can have better access to these superb opportunities.
Before I close, I want to highlight a number of areas where I feel that we can do better. First and foremost, it would be massively positive for all our adult volunteers to be given a financial incentive for their time. Not only would that be positive for recruitment and retention, but it would send a clear signal that the Ministry of Defence is taking the broader benefits more seriously. Our volunteers are the lifeblood of the cadet movement, and it would be remiss of me not to formally thank and pay tribute to everyone who runs our detachments for their huge contribution.
We should invest more in our cadet infrastructure, repair our older halls, build new ones and provide better facilities such as ranges and accommodation. It goes without saying that higher operating costs should be mitigated, that more transport should be made available, that more opportunities should be provided to train alongside our regular forces, and that better adventure training and more updated equipment should be made available. While it is a considerable outlay for the Ministry of Defence to provide uniforms, weapons and personal kit, it should be possible for serviceable ex-military equipment that would otherwise be disposed of to be provided to cadet units. Closer tie-ups with regular and reserve units through the affiliation process should help to ensure that greater localised support is available for those detachments that need it.
Lastly, as someone who got so much out of the Combined Cadet Force and Officers’ Training Corps, I was always hugely privileged to visit and inspect local cadet units in Berkshire, Surrey and Hampshire, particularly when serving as a commanding officer in Aldershot and at Sandhurst. Our cadets are our future, and whether they choose to join His Majesty’s forces or not, their service in uniform will leave a lasting legacy throughout their lifetime, and their personal skills will be called upon, as were mine.
I also wish to thank the many organisations that continue to enable the cadet movement, not least: our single-service branches, such as the cadets branch at Army Headquarters Regional Command in Aldershot, which forms part of home command; the national cadet training centre at Frimley Park, which does so much to train our adult volunteers; and our reserve forces and cadet associations, or RFCAs, which support our cadet forces so well behind the scenes. Indeed, today I am wearing the distinctive tie of the South East Reserve Forces and Cadet Association, which I have worked alongside for many years; I ask them to please keep up the great work locally.
I conclude by paying tribute to the other youth movements across the UK that do so much to promote the essential values that we have commended this evening. They are far too numerous to list, so I hope that I can be forgiven for not doing so, but we have the police cadets, St John Ambulance cadets, the scout and guide movement, venture scouts, youth sports clubs, young Crusaders, religious clubs, breakfast and after-school clubs, environmental groups, online networks, voluntary organisations and at least 8,000 more established groups than can easily be found with a quick search online.
I am often told by parents and teachers in my constituency that there is nothing for young people to do locally, that the Government are not doing enough, that that is a key reason for antisocial behaviour, and that many are bored. My answer is usually the same—“Really?”—but while there is always more that we can and must do locally and nationally, we should also be proud of what we have, not least in our cadet forces. Extending such opportunities more broadly across our society is a complete no-brainer for so many reasons, and I hope that the Minister will not disappoint us.
The Minister for Defence People and Families (Dr Andrew Murrison)
What a pleasure it is to respond to the contribution of my hon. and gallant Friend the Member for Bracknell (James Sunderland) this evening. I hope that we will be able to reflect on a huge success in our country. It is a wonderful thing for our communities to have cadets. I have seen them in my constituency, and they are an important part of the local fabric, supporting occasions from Remembrance Sunday to Armed Forces Day and beyond. We are lucky to have them.
I pay particular tribute to the volunteers who make that possible. So many of our institutions have, I am afraid, suffered as a result of the pandemic, and it has been extremely difficult for them to get going again, yet cadets seem to have bounced back and be flourishing, and the reason is that there are people who are prepared to give up their time and shoulder a fair amount of inconvenience to serve their communities in that way. We all owe them a great deal.
The benefits that our cadet programmes offer to young people and society as a whole are well known and well rehearsed. I agree wholeheartedly that the MOD-sponsored cadet forces provide brilliant opportunities for our young people. They have been catalogued by academics from the University of Northampton, to whom I am grateful for their rigorous appraisal, which gives scientific objectivity to what we all understand instinctively to be the case, namely that cadets are a force for good.
Participation in cadets has been shown to build character, self-discipline and self-reliance. It improves teamworking, problem solving, leadership and social skills. It provides a boost for physical and mental health—benefits that I am sure my hon. Friend will know about from his time as a cadet, which he described so well. I have to say that my time was not quite as happy as his. I remember joining the air cadets briefly. I was told I was going to fly aircraft. After about two months, it dawned on me that that was not going to happen; it would be marching up and down for as long as I could put up with it, which was not very long. I have to say that I parted company from the cadets much sooner than my hon. Friend, but there it is. I am sure it benefited me on some level.
Headteachers of schools that have established cadet units report that their cadets have improved attendance and academic attainment, as well as behaviour and self-confidence. Some headteachers use cadets as a central part of their strategy to reduce exclusions. Cadet programmes are also a gateway to new skills, new qualifications, and even employment. They are also a valuable way of making young people aware of the further opportunities available in defence and defence-related industries, although, as my hon. Friend made clear, cadet forces are not meant to be recruiting tools. As our military footprint has shrunk, however, cadets have assumed an even more important role in at least providing some sort of presence in many communities where otherwise there would be none. They benefit the whole of society by building links between different communities, boosting social mobility, and strengthening young people’s resilience to becoming involved in antisocial behaviour, criminality and even extremism. In short, joining the cadets is a springboard to success, as well as being a powerful engine for social mobility and levelling up.
The cadet expansion programme is a joint Ministry of Defence and Department for Education initiative to expand cadet participation in schools. It has been a fantastic success since its launch by the then Prime Minister 12 years ago. By March 2015, ahead of schedule, the Government reached their target of establishing 100 new combined cadet force units in state secondary schools in England. In November 2019, again ahead of schedule, we reached our further target of establishing 500 new cadet units across the United Kingdom. Funded with £50 million from LIBOR fines, the expansion programme benefits many schools in less affluent areas.
To give renewed impetus to the programme, the Government had by this time outlined a further aspiration to increase the number of cadets in school units to 60,000 by April 2024. However, cadet units require a significant amount of personal commitment from school leaders and volunteers, and in spite of successes, about 50 of the units established since 2012 have failed, often as a result of changes to a school’s leadership or priorities. That is a pity, but it in no way detracts from the leadership and drive of school teams that have advanced the cadet programme, to whom I pay tribute. As we approach April 2024, although cadet numbers in schools have increased by 15% since April 2020 to more than 54,000, it is clear that covid has had an impact on this as on so much of our national life, and that we will not reach our 60,000 aspiration within the challenging timeframe that we set.
However, it is not only the direct impact of the pandemic that has slowed progress. In addition to cadet activities being halted or limited by covid restrictions, participation has been affected by the resulting change in school priorities, with many understandably reorientating themselves from extra-curricular activities to prioritise catching up on lost learning. Given this context, the fact that we have already achieved 90% of our ambition to have 60,000 cadets in schools is a great credit to every individual and school involved in our expansion programme.
We have also made progress on a number of other fronts to provide the greatest support for school cadet units that we can. In the last year, we have developed a Combined Cadet Force engagement and communication framework. We have worked with the single-service cadet forces to improve the delivery model, and have extended funding for regional school cadet expansion officers. According to a report produced by academics at the University of Northampton, more than 91% of headteachers surveyed considered their cadet units to be a good investment for their schools, and a whopping 98.9% reported an improvement in the resilience of participants. Most recent estimates have calculated the cost of participation at £836 per cadet, and I call that a fantastic value-for-money investment in their future, our future, and the future of our country. However, Members do not have to take my word for it: the academics who conducted the study concluded that
“school based cadet units are delivering excellent value for money”—
as well they should, given that the estimate of the Institute for Public Policy Research is that the cost of just one school exclusion is £392,000.
Jim Shannon
One impressive thing about the cadet force in my constituency is that there are as many young girls there as young boys, whether we are talking about the Army, sea or Air Force cadets. It is encouraging to see that, and I know that the Minister would like that, too. Are the Government and the Minister trying to promote that?
Dr Murrison
I absolutely do. As the proud father of five daughters, each of whom has been involved at some level in the cadets, I can certainly endorse the hon. Gentleman’s remarks. I am impressed all the time by the number of young women engaged in the cadets and looking to a future in defence. Although of course this is not a recruiting exercise, the cadet force is increasingly female in its composition, and that has to be a positive thing.
I remain determined to do all I can to ensure that we continue to grow the number of cadets in our schools; as we recover from the pandemic, we must meet our 60,000 aspiration as soon as possible, so that schools such as Brakenhale School in the constituency of my hon. Friend the Member for Bracknell can continue to flourish. The schools programme is, of course, complementary to the very successful community cadet forces, to which he referred. I pay tribute to the very active units in my constituency, and to the volunteers who sustain them. These community cadet forces are as popular as ever with our young people; the numbers mirror the growth in our school programme. The most recent figures show that we have more than 83,000 community cadets, which represents a 14% increase on the previous year.
Of course, none of this can happen without the selfless and invaluable contribution that adult volunteers make. The good news is that they can indeed receive some remuneration for their efforts, depending on the activities that they are engaged in. Historically, cadet units have had to put up with some fairly basic accommodation, and my hon. Friend touched on that. However, we continue to make considerable efforts to improve facilities for cadets, not least through the ongoing reserve estates optimisation programme.
School cadet units have been transforming the lives of our young people for more than 160 years. Once the preserve of independent schools, 65% of units are now in the state sector, which is a reversal of the previous situation, in which 75% of cadet units were in independent schools. Like the rest of our modern cadet forces, school cadet units embody the ethos of the armed forces, and are laser-focused on helping young people to develop and reach their full potential, in whatever walk of life they choose. Covid has slowed our ambitions somewhat, but thanks to our cadet force 2030 strategy, the Government have plans in place, as well as the commitment, to deliver their continued growth, ensuring that our cadet units, in schools and communities, will continue to transform the lives of more and more of our young people for many years to come.
Question put and agreed to.
Financial Assistance to Industry
(8 months, 1 week ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Chair
It may help if I clarify from the Chair that what we are debating in this Committee—for up to 90 minutes, as Members will be aware—is the content of the motion in the name of Ms Ghani, which is listed on the Future Business section of the Order Paper. The House itself will be asked to pass the motion without debate after the text has been reported from this Committee later today.
The Minister for Industry and Economic Security (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the motion, That this House authorises the Secretary of State to undertake to pay, and to pay by way of financial assistance under section 8 of the Industrial Development Act 1982, a grant or grants exceeding £30 million and up to a total of £75 million to BMW to support the production of electric Minis at Plant Oxford.
It is an honour and a privilege to do this under your chairmanship, Mr Pritchard.
The UK’s automotive sector is a global success story, contributing £14 billion to the UK economy annually, with some of the highest productivity levels among the major European automotive-producing nations. The sector currently employs 182,000 people in manufacturing, with an estimated 780,000 jobs supported by the sector in the wider economy. Major global companies such as Jaguar Land Rover, Nissan, Toyota and BMW have a significant manufacturing presence in the UK.
On 11 September 2023, BMW announced a £600 million investment in its Oxford plant for the production of two new electric Mini models, to start in 2026. BMW requested £75 million of funding from His Majesty’s Government via the exceptional regional growth fund to support that £600 million investment. It is that Government funding that we are debating now.
The exciting decision by BMW to invest in the future of the UK’s automotive sector is a prime example of how industry and Government are working together to meet new challenges. BMW’s investment in new tooling and machinery, and in re-training and upskilling of employees, will create and safeguard jobs in its Oxford and Swindon facilities and in the wider supply chain.
This support to BMW builds on our existing winning formula, which has delivered significant investment success. I am confident that BMW’s decision is among the first of many such investments that will drive the future of the sector in the UK. This Government will continue to work towards maintaining the competitive environment necessary to stimulate growth and productivity in the sector and ensure that the UK continues to be one of the most competitive locations in the world for automotive manufacturing. I commend the motion to the Committee.
Sarah Jones (Croydon Central) (Lab)
It is a pleasure to serve under your chairmanship, Mr Pritchard.
The Minister has laid out the case for this legislation clearly, for which I thank her. As she says, Britain boasts a world-leading automotive sector, which supports hundreds of thousands of jobs across the country and contributes billions to the economy. We are proud to host a whole ecosystem of major international players: JLR, Nissan, Toyota and of course BMW, whose manufacture of BMW Minis in Oxford has become an iconic institution, supporting thousands of highly skilled, highly paid jobs, with more than 100 years of history in the area.
It is vital to communities, to our economy and to our global leadership position in the green transition that the UK retains and develops our automotive manufacturing capabilities. For those reasons, while Labour has major concerns about the Government’s overall approach to this issue, we will not reject the measure under consideration today.
The motion would, as the Minister has mentioned, authorise the Secretary of State to pay a grant of up to £75 million to BMW to support the transition of its Oxford plant to the manufacture of electric Minis. The grant would be paid under section 8 of the Industrial Development Act 1982, which provides for financial assistance to be given to businesses outside the assisted areas, of which Oxford is not one.
We accept that significant changes are needed to adapt the plant to EV production, such as capital investment, as the Minister says, in new tooling, new machinery and new skills for workers at the plant. The case has been reviewed by the Industrial Development Advisory Board, which has supported the proposal, and the report by the Competition and Markets Authority’s subsidy advice unit accepts that the Government have made an adequate case that the project would not have been undertaken in a similar form, manner and timeframe without the subsidy.
As such, and given the strategic importance of supporting electric vehicle manufacturing in the UK, Labour is not opposing the motion. We do have some concerns that it would be helpful for the Minister to address, not least because this is a substantial amount of money that we are handing over. First, while we are pleased that the Industrial Development Advisory Board has reviewed and supported the proposal, it is slightly unclear what that body’s role and function is. If we look on the Government website, the only documentation this body has published in the last three years has been a statement on its membership, as far as we can see.
Can the Government explain what the IDAB is doing, and will they republish its report on this grant or the minutes of the decision it came to? There is advice on the website that people can make a freedom of information request to get information, but perhaps the Minister can save us having to do that and see whether we can get the information from that body.
Secondly, the report by the Competition and Markets Authority’s subsidy advice unit concluded that, while it is absolutely right that overall the positives outweigh the negatives,
“in our view the Assessment would be strengthened if it followed the Statutory Guidance more closely in explaining the relevant market failures and providing supporting evidence. The Assessment has not clearly demonstrated the existence of positive and negative externalities constituting market failures that require government intervention.”
The unit does accept that the subsidy will not be used to finance something that would have been financed anyway if the subsidy had not been there, but it asks some questions and it would be helpful if the Minister could perhaps answer them.
Thirdly, the Government have said that the grant will be subject to performance on employment key performance indicators. Will the Government make public the details of those KPIs, or at least explain a bit more about what they are and against what timeframe BMW’s success or failure will be judged? More specifics on those three areas would be very helpful.
It is important to note briefly the wider context of this discussion. The reality is that this deal was a near miss. The money from Government came after BMW had publicly announced its plans to relocate production to China, bringing us to the brink of what would have been an historic loss for British manufacturing capacity. We on the Opposition side think that getting ahead of those kinds of crisis situation, by having a strategic industrial strategy to help businesses to invest in this county and deliver the economic growth we all want to see, would be a more stable and longer-lasting approach and, in the end, would help the automotive industry much more.
Ms Ghani
I thank the hon. Lady for her contribution to this debate. As she says, we are discussing a large sum of money—although of course the larger sum is the £600 million overall investment, which is key to ensuring those supply chains continue and that we remain the most stellar place to come in and invest in the auto sector.
Beyond that £600 million, the largest sum is the settlement we received from the Treasury in the last Budget but one for the advanced manufacturing plan, under which £2 billion will be allocated to the automotive sector. We have a fantastic automotive sector here in the UK, and the commitment made by this particular company, like so many others, speaks of their huge confidence not only in their workers, but in the supply chain.
This investment comes on the back of some fantastic successes to date, including the Tata Group’s £4 billion investment in a new gigafactory, which will be one of the largest in Europe, Nissan and Envision delivering up to £2 billion of new investment in Sunderland, with two new electric models, and Ford’s £380 million investment to manufacture electric drive units. I am pleased that the hon. Lady has made clear that the Opposition are not objecting to, but welcoming, the support being provided.
I turn now to a couple of points the hon. Lady raised, starting with the Competition and Markets Authority’s report. Those reports are published and we respond to them. We submitted our assessment to the CMA, as is our legal obligation, and the CMA did not recommend any adjustment to the grant award. We have reviewed its recommendations thoroughly and updated our internal documentation accordingly. We are satisfied that the award meets the subsidy control principles, and that is supported by the evidence.
On the issue of support for the company, the grant was assessed and tested in accordance with the Government’s Green Book appraisal guidance, which provides a framework for ensuring that due diligence is done. That included a rigorous assessment of the minimum Government intervention needed to swing the investment decision in favour of the UK and scrutiny by the Industrial Development Advisory Board. Those initiatives and frameworks are independent, to ensure that decisions receive due diligence. On top of that, there was third party due diligence by KPMG.
This Committee is meeting today because we are providing substantial support of up to £75 million, but we must not forget that the overall package is £600 million. I confirm that the Government will continue to support the automotive sector by giving businesses the confidence to invest and innovate in the UK. This grant is just another example of that.
Question put and agreed to.
Draft Reporting on Payment Practices and Performance (Amendment) Regulations 2024
(8 months, 1 week ago)
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The Minister for Industry and Economic Security (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Reporting on Payment Practices and Performance (Amendment) Regulations 2024.
It is a pleasure to serve under your chairmanship, Mr Stringer.
The draft regulations were laid before the House on 10 January. The Government have declared 2024 to be the year of small businesses. Small and medium-sized enterprises are the backbone of our economy, making up to 99.9% of UK businesses, employing millions of people and enriching our everyday lives. So far this year, we have further improved our Help to Grow campaign and established a Small Business Council, and today we are here to extend the Reporting on Payment Practices and Performance Regulations 2017.
Tackling late payment is critical to the UK economy’s growth and productivity; 56 million hours are wasted each year by businesses chasing late payments, and small businesses are being let down. Late and long payments contribute to an estimated 50,000 UK business closures each year. The Reporting on Payment Practices and Performance Regulations and the Limited Liability Partnerships (Reporting on Payment Practices and Performance) Regulations 2017 were introduced to bring transparency to the payment practices of large businesses. The regulations require businesses above a certain size threshold to publish information twice yearly on their average payment times, how frequently they pay suppliers late, and their standard payment terms. Those regulations and the transparency they have brought mean that payment times across the UK have gone down. That is good news. We want to continue that trend by extending the requirement to report and to improve transparency through the introduction of new metrics.
Last year, my colleague the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), who is the Minister for small business, launched a consultation seeking views from the public about the existing regulations and how we can improve them. Trade associations and businesses across the economy endorsed our proposals to extend the regulations and to introduce new reporting requirements. I will now briefly outline the draft statutory instrument.
The first objective of this draft instrument is to extend the 2017 regulations beyond the expiry date of 6 April this year until 6 April 2031. The extended 2017 regulations will be subject to a further statutory review in April 2029, before their new expiry date. In 2017, the regulations were to sunset without extension, which would remove payment time transparency entirely. Without these reporting requirements, we would deprive small businesses of crucial information that helps them to decide who to enter into business with, and arms them in renegotiation of payment terms that suit.
The second objective of the draft regulations is to require large companies and limited liability partnerships in the scope of the 2017 regulations to disclose additional information and report to new payment performance metrics. One of the new metrics is that businesses are to be asked to state the value of the invoices paid during the reporting period. Small businesses told us that they wanted even more clarity about how large businesses act. The other new metric is a requirement for businesses to report on the percentage of invoices that they dispute. Small businesses are concerned that the practice of raising frivolous disputes to avoid making payments on time is becoming more common, so we are taking action to address that.
The third objective of the draft regulations is to clarify the reporting requirements when supply chain finance is used by large businesses. This amendment will change reporting to make sure that the use of supply chain finance by businesses is more accurately reflected in the reporting data.
I thank the 137 respondents to last year’s consultation on the draft regulations. They included small and large businesses, as well as representatives of trade bodies, who provided us with the support that we need to extend and improve the reporting requirements. I hope that the Committee can see the benefits that the regulations will provide.
Nigel Mills (Amber Valley) (Con)
I support the idea of disclosure of invoices that are disputed. Businesses in Amber Valley commonly tell me about that pretty naughty trick to avoid paying—people just pay late because they dispute the bill. What will the data published show? Will it literally show, for example, that this person disputed 10% of their invoices? Will it show how many of the disputes were resolved with full payment being made, showing it was a scam? Or will it just show that straight percentage, which might be quite meaningless?
Ms Ghani
My hon. Friend makes a very good point, which reflects the strain that can be put on small businesses when payments are delayed, although the issue of scams may be a little bit outside the scope of the draft instrument. This is fundamentally about ensuring that we have the right framework in place, are encouraging good practice, and doing what we can to bring down payment times. Already, payment times have been brought down to, I believe, 35.6 days. This affirmative instrument will drive that good effect even further. I commend the draft regulations to the Committee.
Rushanara Ali (Bethnal Green and Bow) (Lab)
It is a pleasure to serve under your chairmanship, Mr Stringer.
Late payments are a scourge on small businesses. At any time, UK small businesses are waiting for over £20 billion worth of overdue invoices. As the Minister has pointed out, that is a huge challenge. Research by Smart Data Foundry using Sage accounting data found that in 2021 a typical small business was owed approximately £22,000 in late payments. Larger firms failing to pay on time denies businesses in their supply chains the valuable cash that they need to pay staff, buy materials and deliver on future orders. As the Minister said, 50,000 businesses go under every year in the UK because of hold-ups in their cash flow.
The eye-watering increases in rent, energy bills and suppliers’ costs make the need to take strong action on late payments more urgent than ever. Late payments are crippling businesses and therefore limiting crucial growth in our economy. They impact on businesses of all sizes, but particularly on small businesses and microbusinesses; such businesses are especially exposed to liquidity problems when they do not receive payments on time, which then limits their ability to invest in future growth. Research from Barclays shows that businesses in the UK are more concerned about the impact of late payments on their business growth than businesses in any other economy in Europe. Two in every five SME owners say that their mental wellbeing has suffered as a result of late payments, and over a third have had sleepless nights.
I welcome these amendments to the 2017 regulations, as they are a positive step in the right direction. We will not stand in the way of measures that will help businesses to grow, scale up and invest. However, it has taken a very long time for the Government to tackle this deep-seated problem, so I hope this is the beginning of the rapid action that is needed to ensure that we prevent small and medium-sized businesses from suffering from the scourge of late payment.
There are stark power imbalances between small and big businesses. These reforms and the increased transparency will go some way to tackling that gap, but as the impact assessment shows, the risk remains that power imbalances will continue to limit suppliers’ capacity to negotiate fairer terms. Transparency is only one element of the negotiation, and wider issues will remain in certain sectors. I would be grateful if the Minister clarified what steps will be taken to protect and empower small businesses in the negotiation of fairer terms with big businesses. I know that the Minister for small business is looking into those issues.
Ministers are still waiting for the outcome of the ongoing Financial Reporting Council review on non-financial reporting to see if payment performance data should be a requirement in businesses’ annual reports. I urge the Government to ensure that that requirement is included to increase transparency in the business community, to ensure that businesses prioritise prompt payments and consistently focus on good performance, and to achieve a culture change in the business community to tackle late payment. I would be grateful if the Minister clarified the timeline for that report and when we can expect an announcement on the requirement to include payment performance data in annual reports.
Richard Thomson (Gordon) (SNP)
It is a pleasure to serve under your chairship this afternoon, Mr Stringer. I will be brief.
Cash flow is quite clearly the lifeblood of any business, but especially of small and medium-sized enterprises, which tend to be more vulnerable to late payment. The requirement to report in this manner is clearly proportionate, seems to be having the desired effect, and is popular. It also helps to tilt the balance of power back towards those SMEs and away from companies that, through their scale and importance, are in a position to delay payment unduly for their own advantage and at the expense of other smaller players in the marketplace. These regulations will help to make the economy more creative and competitive, by giving everybody a better chance of being treated fairly when they engage in it. On that basis, we are also happy to give our support to this instrument.
Ms Ghani
I am grateful for the contributions made by colleagues across the Committee, and of course for their support. We are all incredibly keen to do everything we can to support small and medium-sized enterprises. Some very good questions have been raised.
Both I and my hon. Friend the Minister for small business consistently champion small businesses, and we believe that this legislation is critical in applying pressure and encouraging large businesses to improve their payment culture. Likewise, the draft regulations will arm small businesses with even more information than before about the behaviours of their customers, thereby equipping them to decide who they do business with and helping them to negotiate better terms with their customers.
I will quickly address some of the questions raised by the Opposition spokesperson, the hon. Member for Bethnal Green and Bow, and my hon. Friend the Member for Amber Valley. On giving small businesses more authority, we have established a Small Business Commissioner, and in our prompt payment and cash flow review we have committed to giving them increased powers to tackle businesses that persistently pay late; however, that will require primary legislation and depends on the legislative timetable. We have chosen to prioritise the extension of the existing reporting requirements to ensure that they do not expire, but we remain committed to fulfilling the actions to improve payment practices across the UK that we set out as part of our review.
Another point was raised about providing more authority, especially how we empower small businesses beyond the regulations. Of course, we have the prompt payment code, and this instrument will increase its effectiveness and provide more information for small businesses that will help them better manage their cash flow and negotiate payment terms; it also strengthens the powers of the Small Business Commissioner and equips them better to deal with businesses that pay late.
This instrument is really good news. The 2017 regulations would have sunsetted without this extension, and that is why we are here today. It is our aim to end the practice of late and long payments. We want to make the UK the best place in the world for both large and small businesses to operate. I commend the regulations to the Committee.
Question put and agreed to.
Draft National Minimum Wage (Amendment) (No. 2) Regulations 2024
(8 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kevin Hollinrake)
I beg to move,
That the Committee has considered the draft National Minimum Wage (Amendment) (No. 2) Regulations 2024.
It is a pleasure to serve with you in the Chair, Mr Hosie. The purpose of these regulations is to raise the national living wage and national minimum wage rates on 1 April 2024. They were laid on 13 January and approved by the House of Lords on 12 March.
We are delighted to say that this uplift will see the achievement of one of our core pledges: for the national living wage to reach two thirds of median earnings by 2024. The target was set with the intention of ending low hourly pay, in line with the OECD definition, for those eligible. Now, on the 25th anniversary of the minimum wage, that target will be met—a genuinely historic moment.
We have achieved that on time, in spite of the difficult global conditions of the past few years—the huge economic impact of the pandemic, the shockwaves of the war in Ukraine and recent cost of living challenges. That is something that the Government, and every parliamentarian, should be proud of. Indeed, we should also be very proud of the contribution from businesses, who have obviously borne the greatest burden of paying it.
I will turn shortly to the detail of the regulations, but I will first thank the Low Pay Commission. We have once again accepted all of its recommendations for the national living wage and national minimum wage rates. Its diligent approach to conducting detailed analysis and carrying out a range of stakeholder engagement has continued to pay dividends, enabling the Government to strike the right balance in giving millions of workers a well-earned pay rise, without harming businesses—the lifeblood of our economy—or adversely impacting the balance of the UK’s labour market. I extend my thanks to all of the commissioners, including Bryan Sanderson, whose term as chair ended around the turn of the year. I look forward to continuing to work closely with the Low Pay Commission, including the newly appointed chair, Baroness Stroud.
Turning to the rates themselves, once these regulations have secured parliamentary passage, the national living wage will increase on 1 April to £11.44 an hour—a record 9.8% cash increase of £1.02. As well as hitting our goal of seeing the national living wage reach two thirds of median earnings, we are also delivering on our pledge to extend eligibility from workers aged 23 and over to those aged 21 and over. By including 21 and 22-year-olds in the national living wage, these regulations will put more money into the pockets of more workers.
Given that younger workers remain more susceptible to economic shocks, the national minimum wage rates for those under 21 years old will remain in place. However, in making its recommendations, the LPC noted that employment among workers aged between 16 and 20 has been strong in recent months, and that the previous large increases to the national living wage have widened the gap to those younger workers entitled to the national minimum wage at lower rates. We are therefore pleased to deliver a significant uplift to the other national minimum wage rates.
These regulations will increase the rate for 18 to 20-year-olds to £8.60 an hour—a rise of 14.8%, or £1.11. The minimum wage for workers above school leaving age, but under 18 years old, will increase to £6.40 an hour—up by £1.12, or 21.2%. The same applies to the apprentice national minimum wage rate, which applies to apprentices aged 19 and under or in the first year of their apprenticeship. The accommodation offset, meanwhile, which is a daily rate, will increase by 9.8%, or 89p, to £9.99.
The Government published a comprehensive impact assessment when these regulations were laid, including an equalities assessment. Hon. Members will note that this impact assessment has once again received a green, fit-for-purpose rating from the Regulatory Policy Committee. I also note that the net cost to business is £217 million per annum.
Chris Stephens (Glasgow South West) (SNP)
I am very grateful to the Minister for showing his customary politeness in giving way. In the impact assessment, I do not see any reference to UK Government employees. Does the Minister know how many UK Government employees will benefit from the provisions he is laying out today?
Kevin Hollinrake
I do not know that figure, but the hon. Gentleman raises an interesting point. He is not just talking about the overall number of Government employees—I do not know that number either—but the ones that are on national living wage. I am very happy to look at that, and I will be interested to hear his reflections later. Perhaps he will enlighten us on what he believes that number to be.
We estimate that three million workers will receive a direct pay rise as a result of this uprating. The increase to the national living wage will represent a boost of more than £1,800 to the gross annual earnings of every full-time worker on the national living wage compared with this year, and a boost of £8,600 compared with 2015, when the policy was first announced. To put that in context, when this year’s uprating comes into effect in April, the national living wage will be approximately 70% higher than in 2015. Meanwhile, the consumer price index has increased about 30%, so it has increased at over twice the rate of inflation.
Finally, I remind hon. and right hon. Members of one further important change we have introduced to the minimum wage regulations. The Low Pay Commission recommended that minimum wage exemption for live-in domestic workers, which the Employment Appeal Tribunal had found amounted to indirect discrimination against women, should be removed. Due to legislation we passed earlier this year, it will be removed from the statute book from 1 April, protecting more of the UK’s vulnerable workers from exploitation.
We recognise that businesses and workers alike remain keen to hear about the future of the minimum wage. I can therefore confirm that we will be publishing the 2024 remit to the LPC shortly. The remit will ask it to provide recommendations for the national living wage and national minimum wage rates to apply from April 2025. The Government and the LPC will continue to monitor closely the impacts of these increases on the economy, and carefully consider our future ambitions.
Justin Madders (Ellesmere Port and Neston) (Lab)
It is a pleasure to see you in the Chair this afternoon, Mr Hosie. I thank the Minister for outlining the changes these regulations make to implement the new rates of minimum wage, as recommended by the Low Pay Commission, to which I also pay tribute for its sterling work. I will refer to some of the findings from its annual report during my contribution.
I also—he should really steel himself, because I do not do this often—congratulate the Minister on delivering the promise to match the minimum hourly rate to two-thirds of median wages. I think that has been eight years in the offing, but we have got there. In achieving this figure, the Low Pay Commission recommended a rise that represents the largest increase in cash terms since the introduction of the minimum wage. That is clearly welcome news for those working in minimum wage jobs, as is the extension of the entitlement to all those over the age of 21. It represents a 9.8% increase for those older than 21, with the hourly rate of the main rate—the so-called national living wage—now at £11.44 an hour. That equates to an annual increase of just over £1,800 for someone working a 35-hour week, and clearly we in the Opposition welcome that.
While I understand the Government are keen to celebrate this year’s levels, I would caution them not to be too overconfident, because anyone who has taken the time to study the Low Pay Commission’s report will see that much more needs to be done before work in this country pays in the way that it should. There are clear warning signs in the report about the persistence of insecure work and in-work poverty.
No one here will need reminding that the rates of inflation we have had to endure in recent years have thrown workers—and, indeed, everyone in this country—into a cost of living crisis. Inflation rates peaked at 11.1% in October 2022 and have been hovering around 4% and 5% even now. Between April 2021 and April 2022, household bills doubled, and the price of essential goods and services increased at a magnitude not experienced since the 1970s and 1980s. The Low Pay Commission report notes that energy, food and transport costs were at the “highest rates recorded” since the CPI series began, way back in 1989. Even in September last year, when inflation was beginning to come down, energy prices were still increasing by 5% and food inflation was 12.2%.
Last year I raised concerns that, in the face of such high levels of inflation, the minimum wage uplifts were not large enough to prevent a real-terms cut to the rate. That has been confirmed by the Low Pay Commission report, which states that the past two years’ increases in the minimum wage have in fact represented a cut in real terms due to inflation. I am pleased that the commission is confident that today’s increases will restore the value of the minimum wage in real terms, but I am also aware that the increases do not undo the previous two years, when pay did not keep up with the cost of living and hardship has endured as a result.
Kevin Hollinrake
As I said, the national living wage has outstripped inflation twofold during the period since its implementation. At one point in time, the Opposition talked about a national living wage of £15 an hour. Is that still the hon. Gentleman’s policy? Is that his personal policy or the Opposition’s policy?
Justin Madders
That very interesting question is some way outside the remit of the regulations. Of course, if the Minister wants to talk about what our policies will be, he should advise the Prime Minister to call a general election—but perhaps we are not quite there.
My question for the Minister is about the inflationary spikes of the last couple of years. What mechanisms are being looked at to ensure that the minimum wage increases at a rate that reflects those in real time? The evidence gathered by the Low Pay Commission on how workers have been affected is truly sobering. In Belfast, the commission found that supermarkets had introduced payday pantries, which provide food for workers in the run-up to payday. A care worker in Manchester told the commission,
“Most of my colleagues are using food banks.”,
and stated that that was not a new, post-pandemic problem. Such examples chime with responses in trade union surveys. In autumn 2022, Unison found that 17% of respondents had skipped meals and that 20% had asked for a loan from family or friends. In May 2023, USDAW found that 46% of its members surveyed were worried about food bills, 15% had turned to food banks and 42% had missed meals in the last year to pay for bills. If anything, the situation has been getting worse. The Joseph Rowntree Foundation’s yearly poverty report states that the proportion of households in poverty with at least one working adult increased from 61% in 2021 to 64% in 2022. The poverty rate across the country as a whole is now more than one in five, and poverty has not fallen for 20 years.
It is worth saying a few words about why, despite the Minister’s comments, minimum wage increase have not eradicated in-work poverty, which is what we would like to see. Of course, I commend the Government for reaching their 2016 pledge to increase the minimum wage to 60% of median wages by 2020 and to two thirds of median wages by this year. Indeed, the impact has been that the number of employees on low hourly pay has fallen consistently; the fall since 2015 is estimated to have been about 20%.
However, the graph on page 62 of the Low Pay Commission report reveals that on two issues we still have an awful long way to go. It is hard not to be struck by the large disparity between men and women in terms of low pay—a point I shall return to—and the persistence of low weekly pay as opposed to low hourly pay. That instructive graph shows that increasing the minimum wage floor is only one of the tools needed to tackle problems in the labour market, and that it has largely left unaffected the issue of low pay for those on weekly earnings. There is clearly an issue about the number of hours people are working.
The Low Pay Commission annual report highlights the wide gap between men and women. Consistently since 2011, roughly 15% of men in employee jobs have been on low weekly pay, despite the increases in the minimum wage. The percentage of women on low weekly pay is double that of men, at roughly one in three. That has fallen gently since 2011, when the rate was around 41%, but that large disparity is still there. Will the Minister say whether there are any plans to deal with that gender pay gap and the question of hours worked?
To adequately address the problems in our labour market, we have to consider not only the number of hours but the quality and insecurity of work. Citizens UK has estimated that there are 6.1 million workers currently trapped in insecure forms of work, 3.4 million of whom are on low pay. That amounts to 19% and 11% of the total workforce respectively on low pay. Low pay is not an inherent condition for those in insecure work, however; those on low pay are around five times more likely to be in insecure jobs.
It is noted in the Low Pay Commission’s report that those insecurely employed struggle to get adequate hours, still receive late shift notices and are on zero-hours contracts. Respondents noted that workers in sectors such as hospitality had to take on multiple jobs to obtain full-time hours, which brings the challenge of having to juggle their availability in order to be accessible for both.
In its fieldwork, the Low Pay Commission found that workers continue to struggle to get contracts that reflect their actual hours worked. It was also noted that employers are still allocating shifts with as little as a day’s or just a few days’ notice, with some workers interviewed even stating that they had had shifts cancelled on the day they were meant to be in work. That is clearly a problem that is not going away. I ask the Minister this: how is someone supposed to plan for the future when they do not know how many hours they will work from week to week or month to month? What can a worker do if they are told they are surplus to requirements on a particular day when they might have already paid out for childcare or transport costs? Such practices erode the gains that we have made on the minimum wage.
As I say, I will not be entirely negative—the Minister would not expect me to be so. Positive steps have been made this year. We particularly welcome the removal of the 21 to 22-year-old age category. That measure was found to have broad support among those contacted by the Low Pay Commission. But as I mentioned last year, we are sad to see the Government continuing to support age discriminatory bands for those over the age of 18. Why should someone’s age determine their pay? A young adult is unable to go to their landlord and demand lower rent or to tell the cashier at the supermarket that they should have a discount because they are under the age of 21. Their bills are no cheaper than anyone else’s, yet for some reason we expect young people to make ends meet on lower pay.
That is accentuated by the fact that the rates have grown more slowly for younger workers. The gap between the main rate and the 18 to 20-year-old rate has grown massively since the Conservative party came to power in 2010. The Low Pay Commission report shows how the 18 to 20-year-old rate hovered around 85% of the value of the adult rate throughout Labour’s time in office. It then fell to below 80% between 2011 and 2013 and has continued to fall since 2015.
The minimum wage rate now for those aged 18 to 20 is just over 70% of the adult rate—around 15% lower than it was under the Labour party, rubbing salt into an already unjust situation. I appreciate that the Minister has referred to an above-rate increase for 18 to 20-year-olds this year, but is that part of a concerted plan and strategy to bring back the differential that existed under the Labour Government?
Eligibility is only half the battle. Unfortunately, entitlement to a minimum wage does not translate directly into securing that rate of pay. Enforcement is key and the right to be paid a minimum wage remains an important part of the enforcement universe. Questions, therefore, ought to be asked about the effectiveness of enforcement, as too many workers still report being underpaid.
Data from the annual survey of hours and earnings shows that, despite the total number of people reporting being paid less than the minimum wage having fallen since 2019, last year 365,000 workers were still being underpaid by their employer. As a share of the minimum wage coverage, that has increased since 2019, at a rate of 23.4%. That means that of those who earn on or around the minimum wage, around a quarter of them are not actually receiving it. That is certainly something that we need to see more action on.
From what we have seen from the Low Pay Commission’s report, workers in certain sectors are impacted more than others. I spoke last year in the same debate about the impact in the social care sector and raised the findings that Unison had shared with me about the exploitation of domiciliary care workers. I mentioned then that 73% of those workers were being underpaid. They were not being paid for the travelling time. I also stated that record keeping by employers was found to be way below the standards expected and that the complexities of those pay calculations made it incredibly difficult for employees to establish whether they had in fact been underpaid.
It was therefore pleasing to see that the Low Pay Commission had dedicated some space in its annual report this year to discussing those issues. It noted that the amount of arrears that His Majesty’s Revenue and Customs recovered for non-payment of the minimum wage
“pales into insignificance when compared to the average amount of arrears that Unison secures”
for social care workers—well done to the trade union Unison, but should it not be HMRC’s job to recover arrears and ensure the minimum wage is paid properly in the first place? Is it the case that HMRC is unable to properly decipher the records, or is it going lightly on social care employers?
The Chair
Order. I know that the Low Pay Commission report and recommendations are in the paperwork we have been given, in the impact assessment, but enforcement and so on are slightly wide of the scope of this very narrow SI, which is simply about a change to rates. I am sure the shadow Minister will reflect that in his soon-to-be brief closing comments.
Justin Madders
I understand what you say, Mr Hosie, but this is the only occasion we get to debate the Low Pay Commission report and, as you correctly point out, it is instructive in setting the minimum wage. I will, of course, be guided by your comments.
I will just say a little more about the naming and shaming scheme. I am pleased to see that we have managed to get two rounds of it in the last year. However, one problem is that we are talking about historical breaches—one of them in the last round was from 2012. There are evidently problems with the naming and shaming system. Employers that do not pay the minimum wage must feel that they will face the obloquy of the naming and shaming scheme quickly—much more quickly than they do now. When will the Minister be able to update us on how the enforcement and naming and shaming schemes will be operating faster?
I will skip over the questions on procurement that I raised last year, Mr Hosie, but I want to raise a couple of final points mentioned in the Low Pay Commission report. One was about the number of commissioners. There has been a gap in that number, and the commissioners expressed some frustration that they were not at their full complement. I think there is still a vacancy on the commission. Can the Minister update us on when that is likely to be filled?
Finally, the commission noted that the labour force survey was becoming less reliable. What plans does the Minister have to ensure that in future, when the Low Pay Commission is setting its rates, it can do so on the basis of a robust dataset? I recognise that he has made comments about the remit being issued for 2024 shortly, but it is probably lacking a little bit of detail. Does he have anything to share with us about the Government’s plans and ambitions for raising the minimum wage in the next decade?
Chris Stephens
It is a pleasure to see you in the Chair, Mr Hosie. I direct the House to my entry in the Register of Members’ Financial Interests, as I will be raising some issues pertinent to it.
I have been present at every Delegated Legislation Committee since 2015 that has discussed the national minimum wage and its rates. Year after year, those of us who have argued about age discrimination have been mocked, traduced and told that we were talking nonsense. We were told that those aged 25 or over had higher bills than those aged 21. I made the point then that that was a nonsensical position, but was told that I was talking nonsense. However, it turns out that the Low Pay Commission finally agrees with those of us who believe that those aged 21 have the same bills as those who are older.
I welcome that change. Will the Minister take the opportunity, on behalf of his colleagues in years gone by—some of whom are in the Cabinet now, I note—to apologise to those of us who argued the position on age discrimination? I note that age discrimination still exists in relation to national minimum wage rates, and I believe that is nonsensical. Two workers working beside each other, one aged 17 and the other 37—let us say they are flipping hamburgers at a McDonald’s franchise—should get paid the exact same wage for doing the exact same job. I hope the Minister will explore that with the Low Pay Commission to ensure there is no future age discrimination, despite the welcome change that the Government have made.
Sir Desmond Swayne (New Forest West) (Con)
Will the hon. Gentleman give way?
Chris Stephens
I give way to a good friend I served with on the Work and Pensions Committee.
Sir Desmond Swayne
The hon. Gentleman makes a fair point, but—I have employed young people myself—is it not right to allow employers the discretion to discriminate between various employees on the basis of their ability and readiness to work, and indeed to pay a younger employee, perhaps, marginally more for their greater efficiency than another employee, rather than constrain all employers within the tight rules he would impose?
Chris Stephens
I thank the right hon. Gentleman for that point. That provision already exists, but we are talking about the minimum wage rate—the very floor—and that should not be subject to age discrimination. He is correct that some employers have grades and spinal column points, and that is allowed. That reflects people’s experience, how long they have been with the employer and all the rest of it. That does happen, but I do not believe the bottom line—the absolute minimum that a worker can be paid—should be subject to any age discrimination at all. We cannot have two workers doing the exact same job on different wage rates because of their age, not because of their experience. There is a difference between age and experience.
I listened intently to the hon. Member for Ellesmere Port and Neston, who is correct about the economic conditions and the fact that in-work poverty still exists. The Government have failed to implement the report that they asked Matthew Taylor for: only seven of the 59 recommendations have been enacted. Now, I do not want every single one of those recommendations to be enacted, but to do only seven out of 59 is disgraceful.
As the hon. Gentleman said, wages are being dragged down in this country through shifts being cancelled and because people are in what I would argue is bogus self-employment—zero-hours contracts. I note that those issues are covered in a private Member’s Bill to be debated on 26 April, the Workers (Rights and Definition) Bill, which is in my name. I hope the Minister and shadow Minister will welcome the Bill and indicate that they will support it.
When I intervened on the Minister, I made, I think, a very important point. I asked how many UK Government workers will benefit from this delegated legislation. I again refer to my entry in the Register of Members’ Financial Interests: I am the chair of the PCS parliamentary group. To the best of my knowledge, there are tens of thousands of UK Government workers who are paid the national minimum wage, including some employed by the Department for Work and Pensions. I invite the right hon. Member for New Forest West, who sits on the Work and Pensions Committee, to have a look at that, because it is a serious issue that so many workers in the Department for Work and Pensions have to rely on the benefits they are administrating because they are on the national minimum wage. I invite the Minister to write to all Committee members and tell us how many Government employees are paid the national minimum wage.
It is not just the DWP—incredibly, some of those on the minimum wage are employed by HMRC. Some of those employed to chase tax avoidance and evasion, and perhaps to tackle multinational companies that do not pay the rates they should, are paid the national minimum wage. Will the Minister write to tell us how many UK Government employees are being paid the national minimum wage? That is important, because the wage increases he has announced today are what UK Government employees will be getting. That will be their only pay increase this year, and I hope he will take that away.
I want to mention enforcement, because it is important that the Government outline how they will enforce this delegated legislation laid today. My concern is that there are far too many vacancies in the national minimum wage rate compliance unit; perhaps the Minister can tell us how many there are. If there are vacancies, they will lead to the backlog referred to by the shadow Minister and the chasing of unpaid wages for years. I hope the Minister will be able to answer those points when he sums up.
Kevin Hollinrake
I thank hon. Members for their contributions. The passage of the regulations will provide a boost to the incomes of 3 million workers, rewarding many of the lowest paid people in society for their contribution to the economy and protecting them from exploitative wage levels.
The shadow Minister, the hon. Member for Ellesmere Port and Neston, talked about the increases in the living wage. There is not just an increase above inflation over that period of time; it is more than double the rate of inflation. I invite him to again clarify exactly where he thinks it should go. On whether we will raise the expectation above two thirds of the medium wage, that is again something that I am sure we will set out in our manifesto. From a personal perspective, having talked to many businesses around the country, as we have done today at our SME Connect event, I know that many, particularly in hospitality, social care and other sectors, are finding life difficult right now. We should always bear in mind the needs of businesses and try to strike a balance between the impacts on businesses and the benefit that people get from higher wages.
The hon. Member raised a point about the gender pay gap. I note that, according to a recent report by the Office for National Statistics, the gender pay gap has
“decreased across all major occupational groups”
over the past two years, and the accountancy firm BDO said it decreased over the past six years, so that gap is definitely narrowing. He raises the valid point that more women are on the national living wage, but of course they benefit disproportionately from an increase because there are more of them. I do not think that any of us will rest until that gap is narrowed further. The hon. Member talked about predictable hours. We have legislated on predictable hours in line with the Taylor review. I think the actual term is the right to request predictable terms and conditions.
Justin Madders
On the Minister’s point about how the minimum wage has increased over the past eight years, why is it still the case that so many people are in in-work poverty? How many people have actually made that request for predictable hours under the legislation?
Kevin Hollinrake
There has been a significant decrease in the number of people in absolute poverty—millions of people since 2010 and 400,000 fewer children in absolute poverty, which we all welcome. As I said before, in pushing the national living wage as high as we have done, we are putting burdens on businesses. We want to ensure that we strike a balance, and that is our concern with this. We always take into account the concerns of employers as well as workers.
Sir Desmond Swayne
I entirely accept the point the Minister makes with respect to the definition of poverty, but the hon. Member for Glasgow South West makes a fair point in drawing attention to the number of people, particularly those employed by Government, who are claiming benefits notwithstanding being paid the minimum wage. It behoves Government to make some analysis of the extent to which the taxpayer is subsidising low wages, albeit one of the principal concerns drawn to my attention by small businesses is every increase in the minimum wage.
I accept that this is a very difficult equation to have to deal with, but I have always suspected that the former Chairman of the Work and Pensions Committee, Frank Field, was right in his assumption that universal credit, like tax credits before it, was actually just subsidising a low-wage economy that would not otherwise exist. There are clearly costs that are not worth incurring here.
Kevin Hollinrake
My right hon. Friend is right to say that part of the rationale behind the national living wage is to ensure that wages that employers pay are not being subsidised. The total cost of the welfare system is around £303 billion, some of which is a result of the issue he raised. To me, that is wrong and that is one of the reasons why we would like to see the national living wage increased. Nevertheless, we do not want to see that at the detriment of jobs in our economy.
There is still a balance to be struck on making sure people have the opportunity for predictable hours. That is covered in the legislation we have introduced. I understand that the policy of the hon. Member for Ellesmere Port and Neston is that anybody who has been in work for 12 weeks and is on a contract can request those hours in terms of as a permanent position. I think that is the policy that the Opposition are going to introduce. It will be interesting to see what impact that will have on employers, particularly employers of seasonal workers.
There is a balance to be struck between business and workers. I point out that there are 4.2 million more jobs in our economy than there were in 2010. That is a huge success story. There are 1.2 million fewer people unemployed and looking for work. That is a huge achievement. Some of the policies that Labour always tend to bring forward end up costing jobs. Every single time we have had a Labour Government, unemployment is higher at the end of their term than it was at the start.
Justin Madders
Is the Minister aware that an election is about to be called, because he has spent the last couple of minutes talking about Labour policies rather than the statutory instrument? If he is so convinced that our policies are bad, why won’t he let the public decide?
Kevin Hollinrake
I am purely responding to the points that the hon. Gentleman raised, to try to make him understand there is a balance to be struck in the economy between jobs and pay. That is the balance we are trying to strike.
The hon. Gentleman and the SNP spokesman, the hon. Member for Glasgow South West, made points about enforcement, which we take very seriously. We have doubled the compliance budget between 2015-16 and today to £27.8 million. We have ordered employers to reimburse £100 million to 1 million workers. We take this very seriously.
The naming and shaming scheme was suspended during covid. I understood why, but I was very keen to reintroduce it. It is the principal deterrent. I reassure the hon. Member for Ellesmere Port and Neston and other members of the Committee that, whenever we are about to do a naming round, we write to all the employers and tell them that they are going to be named. We get a lot of push-back, and we push right back again. There is no excuse for not paying the minimum wage. We have named a total of 3,200 businesses since 2013, including more than 500 just last month.
The hon. Gentleman raised the point about the vacancy in the Low Pay Commission. We are actively seeking candidates for that; if anybody is out there listening, I am very happy for them to come forward. I am very confident that new chair Baroness Stroud will do a fantastic job.
The SNP spokesman said that he wants a higher living wage, which I completely understand. He is very willing to nail his colours to the mast, unlike the Opposition, about where he thinks that should be, but I gently push back to him as well on the balance we need to strike here. The hospitality sector in Scotland is struggling as well as ours, and others are too. We must make sure we get that balance right. I have to say that in Scotland the failure rate in hospitality is even worse, being 30% higher than it is in England. That is partly down to the fact that Scotland has not passed on the rates money for those hospitality businesses, as has been done in England. The average pub in Scotland is £15,000 a year worse off because of that policy.
Chris Stephens
Surely, the big problem in the hospitality industry is the fact that worker after worker is being discriminated against in that industry. Zero-hours contracts are rampant—people turn up for a shift and they are told the shift has been cancelled. Surely that is the big problem. The Minister is not seriously defending bad employers, is he?
Kevin Hollinrake
I would never do that; as a former employer myself, I would never do that. However, I do not accept the picture that the hon. Member paints. The hospitality sector is a fantastic sector in this country, with many good businesses and many good employers. For him to trash the reputation of the sector in that way, saying that zero-hours contracts are “rampant” in the sector—I think that he should just check his language. That sector does a fine job under very difficult circumstances, and the circumstances are far more difficult in Scotland.
Regarding the Low Pay Commission, the hon. Member made the point about younger workers on lower pay. That is a very fair point; he raises it time and again. It is our position and the position of the Low Pay Commission that younger people are more susceptible to a weaker labour market. That is why we have different rates. I declare my interest—I have daughters of that age who earn the lower rates of the minimum wage and I am very happy that that is the case, because I would rather that they had a job than no job at this point in time.
The minimum wage and the national living wage are floors, not ceilings. If good employers pay more, and many do, clearly we welcome that.
I will just conclude—
Chris Stephens
Before the Minister concludes, can he answer this question about UK Government employees? How many of them are on the national minimum wage? Can he say whether the Government have a plan to deal with that situation?
Kevin Hollinrake
As I said before, I do not know the answer to that question; if the hon. Gentleman wants to put down a written question on the subject, we can give him an answer to it by separate means.
This debate is an important reminder of the good that Government can achieve—a sentiment that I am sure will be echoed by Committee members. I thank the Low Pay Commission once again for its advice this year, which has been as expert as ever, and I commend the regulations to the House.
Question put and agreed to.
Resolved,
That the Committee has considered the draft National Minimum Wage (Amendment) (No. 2) Regulations 2024.
Westminster Hall
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Relationships Education: LGBT Content
(8 months, 1 week ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Peter Dowd (in the Chair)
I would like to inform Members that the parliamentary digital communications team will be conducting secondary filming during today’s debate for its series of procedural explainers—welcome.
Elliot Colburn (Carshalton and Wallington) (Con)
I beg to move,
That this House has considered e-petitions 630932 and 631529 relating to LGBT content in relationships education.
It is a pleasure to serve under your chairmanship, Mr Dowd. Let me begin as usual by reading out the prayers in the petitions. The prayer in e-petition 630932 reads:
“We believe kids shouldn’t learn about this at an early age. I am sure there are many parents who do not want their or other children taught about LGBT in primary school.”
The petition closed on 12 July 2023 with 249,594 signatures, including 490 from Carshalton and Wallington. It did receive some attention because of the person who started it, so I want to clarify that they were a UK resident and that the Petitions Committee therefore felt it was appropriate to schedule this debate on the petition.
The prayer in e-petition 631529 reads:
“We believe kids should learn about this at an early age. I am sure there are many parents who want their and other children taught about LGBT issues…There is a petition to remove this content, which we believe is discriminatory. LGBT people exist, they have the same rights as the rest of us and kids should know them…without judgement or issue. Despite what their parents might believe.”
The petition closed on 20 July 2023 with 104,920 signatures, including 151 from my constituency.
In their replies to the two petitions, the Government stated that they had no intention of revising their guidelines, but they have since commissioned a review of relationships and sex education, or RSE, as I will refer to it throughout the rest of the debate. Today I want to make the case for why we should not go backwards and allow a return to the days of section 28, and to make the positive case for an inclusive, age-appropriate RSE curriculum. This is a policy the Government should be proud of rather than backing away from.
First, I want to share a little of my own story. I was at school before mandatory RSE and certainly before LGBT+ inclusive RSE. I came out very early in my secondary school career at Carshalton Boys Sports College to a few select peers and staff who I trusted. If that had happened in the days of section 28, I would of course have had to be turned away by my teachers and told to shut up about it. Instead, I was part of a school that was well ahead of its time and that not only taught us about healthy relationships and safe sex, but made sure that that teaching was inclusive of all identities, including LGBT+ people like me. I want to be clear: it was not some graphic exposure of how to have sex or the various things that people might want to do with each other behind closed doors; it was simply about the fact that LGBT+ people exist and can form loving relationships with each other just like any other person and about the precautions they should take, but it was also about how to access specific advice and support if we needed it. That was it.
I now want to set out the current framework for RSE in England, and I want to thank the House of Commons Library, Brook, the Sex Education Forum and others for their helpful briefings in advance of today’s debate. The Government’s RSE guidance of 2019 advises schools to plan a developmental and age-appropriate curriculum. Relationships education is therefore approached in ways that are relevant to the age and maturity of the pupils. For example, teaching about “Families and people who care for me” in primary school can be an opportunity to talk about the fact that some people have two dads and some have two mums.
Key messages taught throughout relationships education include that people do not have to conform to narrow stereotypes and that discrimination, bullying and prejudice are harmful and wrong. Indeed, that principle is woven throughout the British values element of school teaching, the aim of which is to encourage and foster respect, kindness, equality and inclusion. Those are British values: they are intrinsic to the ethos of most schools, and families are supportive of them.
Primary schools are not required to teach sex education or explicitly teach about LGBT+ issues; it is more about families and relationships. Parents also have the right to withdraw their child from the sex education part of RSE up to the age of 16.
The Government ask for a whole-school approach from our schools as a vehicle to deliver strategies to tackle violence against women and girls, sexual harassment —which, as we know from Ofsted reports, is rife—peer-on-peer abuse, bullying, forms of hatred such as racism and religious abuse, and much more. My concern is that removing LGBT+ content from relationships education would conflict with the existing obligation on schools under the public sector equality duty and the community cohesion duty and undermine the Government’s strategies to deliver on both.
Paul Blomfield (Sheffield Central) (Lab)
I thank the hon. Member for the way in which he has introduced the debate, which was made more powerful by his sharing his own experience. Some 512 of my constituents signed the second petition, and I am sorry I cannot stay for the whole debate, but I want to pick up on the point the hon. Member just made. Does he recognise the significant academic research demonstrating that, where we have LGBTQ+ inclusive curricula, there are higher levels of safety for individuals, lower levels of bullying in school and lower levels of adverse mental health reporting?
Elliot Colburn
I am grateful to the hon. Member for that intervention, and I absolutely agree with him; in fact, that is the part of my speech I am moving on to, so I am grateful to him for giving me an opening. It is true that research has found that LGBT+ inclusive curricula are associated with reports of greater safety for individuals, lower levels of bullying at school and fewer reports of adverse mental health among all young people, irrespective of their gender identity or sexual orientation. That was set out in a report by Goldfarb and Lieberman in 2021.
High-quality, inclusive RSE is vital for children and young people to live safe, healthy and happy lives, and that can be demonstrated by young people themselves. Young people who took part in the Sex Education Forum’s research told us that their relationships education is not sufficiently inclusive of LGBT+ people, with 38% reporting that their RSE failed to provide any or adequate information about sexual orientation, and 44% reporting that it failed to provide any or adequate coverage of gender identity and information relevant to trans people.
I will share a couple of quotes from some of those young people. One of them said:
“We need to be told more about LGBT…I am a lesbian and growing up I never knew you could have sexual diseases”
from same-sex activities
“until the age of 15 when I started myself”.
Another said:
“Educate children on the LGBTQ community and same sex relationships. There will be someone in each class that it’ll be relevant to and children”
should learn
“to be more accepting. Queer people have and always will exist and children”
should be taught.
In addition to learning at school, children learn about relationships from their families, communities and wider media. The Sex Education Forum surveyed more than 1,000 young people between the ages of 16 and 17 and found that they were more likely to have learned about LGBT+ identities from social media, at around 30%, than in school, at just 25%. Parents were identified as the main source of learning for just 4% of respondents.
That leads me on to a key point that I want to make. Rather than going after LGBT+ identities as part of their review into RSE, I urge the Government to focus on the quality of the content, the resources available to schools and the training available to teachers to provide RSE in a safe and age-appropriate way. Again, research back in 2018 demonstrated that only 20% of teachers said they felt extremely confident in delivering inclusive RSE, with 10% reporting that they were not confident at all. A later survey, conducted in 2019 by the National Society for the Prevention of Cruelty to Children and the National Education Union, found that almost half of teachers said they did not feel confident delivering statutory RSE.
Since RSE became statutory, the Government have invested about £3.2 million of their planned £6 million in implementing the statutory RSE curriculum. However, that is only a fraction of what schools say they need to be able to do so safely, which sits at a best estimate at around £29 million. The voices of those children and teachers are clear: they need the tools to be able to deliver this effectively and appropriately, and I hope that that is what the Government’s review will focus on.
I want to address some of the criticisms surrounding an inclusive RSE policy, especially in the area of parental oversight and engagement and the appropriateness of materials used in the classroom. A number of the statements the Government have made recently about parents’ right to see RSE materials suggest that the issue is somehow new, but that is not the case. Schools have always been encouraged to share RSE resources with parents and carers.
Dame Andrea Jenkyns (Morley and Outwood) (Con)
I have a constituent whose school will not show the materials. It will show a summary, but not the actual materials, so she has taken her child out of that school. I agree that we need complete transparency and that parents have a right to that. Does my hon. Friend agree?
Elliot Colburn
That is absolutely appropriate. If the school has done that, it is contrary to current Government guidelines. I do not disagree with my hon. Friend at all.
The Government’s own statutory RSE guidance outlines obligations for parents and carers to be consulted on the development and review of schools’ RSE policies. It explicitly states that, as part of that process, parents and carers should be able to see “examples of the resources” that schools will use. Many schools should ask parents and carers to come in, view the materials and have a chat about the context in which they will be used. That is there in black and white, so if that is not happening, it absolutely should be called out. I do not think anyone would disagree that parents have a right to know.
With regard to the accusations of extreme, inappropriate, highly sexual material or similar, there simply is not the data to back up many of those claims, and that includes a lack of statistical data on complaints that have been escalated to the Department for Education. Many teaching organisations and people representing education unions, for example, have said that they have struggled to find any evidence of a widespread problem.
Elliot Colburn
I suspect that I will come on to both Members’ points. I will finish this point, and if they still want to intervene, I will gladly give way.
Many of the examples that have been used come from other jurisdictions—one is from the Isle of Man, and many are from the United States of America—and others are anecdotal claims that have not been backed up with any evidence. Indeed, in the case of the protests outside schools in Birmingham, a High Court judge ruled that what was being taught in schools was being grossly misrepresented.
That is not to say that sometimes things do not go wrong, and I will come to that, but the research suggests that the opposite is often the case: schools are not teaching young people key aspects of the curriculum, rather than going to the other extreme. The Sex Education Forum’s polling of young people aged 16 and 17 found that basic mandatory aspects of the curriculum, such as healthy relationships and how to access sexual health services, are frequently missed, with close to three in 10 young people saying they had not learned how to tell, for example, whether a relationship is healthy.
When providing a universal service such as education, it is naive to think that things sometimes do not go wrong, and I acknowledge the comments from the chief inspector of Ofsted that that has happened on occasion. There may well have been occasions where inappropriate things have been said or brought into classrooms, which is not acceptable, but there is a framework in place to deal with that, and we do not have to jump to erasing LGBT people entirely.
Stephen Doughty
The hon. Member is giving a characteristically powerful and important speech. I, too, have seen myths going around in my own constituency, in Wales, about what is allegedly being taught in schools, and they are simply not borne out by the facts. Does he agree that the important thing is for parents, or indeed anybody else, to speak with schools? My schools have been working with families and across school clusters to ensure that parents are involved and understand what is going on. Of course, parents can also often access the information online—for example, the Welsh Government’s curriculum is there for everybody to read online. It is important to base discussions on the facts, not on the myths that are circulating.
Elliot Colburn
The hon. Member is absolutely right. It comes back to the point I have been trying to make throughout: there may well have been occasions where things have gone wrong, but that is where we need to ensure that schools engage with parents and carers, fulfilling the statutory guidelines and allowing parents and carers to see the curriculum and help develop it. We also need to have these discussions based on fact.
Nick Fletcher
I thank my hon. Friend for what he has said so far. He has said that there is not enough evidence of this material. Will he meet me later this week so that I can set out all the evidence we have? I have also shared it with the Department for Education, because to say it is not out there is completely and utterly wrong. It is out there, and in my speech I will be mentioning all the different companies that are sharing it. I am afraid some it is completely abhorrent.
Elliot Colburn
I am always happy to meet my hon. Friend. We sit on the Petitions Committee together and I am sure we can happily have that chat. To clarify, I am not saying that the material is not out there. I think I have made that clear in my speech so far, but I apologise if I have not. I want to be crystal clear that with a universal service that everybody gets, such as education or health, it is inevitable that sometimes things go wrong. What I am saying is that there is no statistical data to back up the idea that this is a widespread problem, so rather than trying to erase LGBT people from existence in schools, we need to look at why teachers do not feel confident delivering such material and why, on occasion, people sometimes invite inappropriate stuff into the classroom. I agree with my hon. Friend that if material is not age-appropriate, it should absolutely not be in our classrooms. The point I was trying to make was about ensuring that schools feel confident delivering the information and that parents feel empowered, but I am always happy to meet my hon. Friend.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
Does the hon. Gentleman agree that there is often a conflation between all the material an organisation might produce and the material that is used in schools? Disney produces adult movies as well as children’s movies; the children’s movies have children’s content and the adult movies have adult content. An organisation might produce adult materials and children’s materials. Just because an organisation produces a range of materials does not mean that is evidence they are being used in schools. The evidence is what teachers are doing and what children are reporting, which is broadly positive.
Elliot Colburn
I absolutely agree with the hon. Member, who makes a good point. Many people who produce children’s content might also produce adult content. For example, many authors write books that are aimed at adults and books that are aimed at children; that it is not unusual. Any assessment needs to reflect what is going on inside the classroom. We need the DFE to be well equipped so it has the expertise needed to ensure that any complaints that come forward can be thoroughly investigated, and that it has adequate resources in place to deal with issues when things go wrong, which is inevitable in a universal service. I would like to hear more from the Minister about that.
I will bring my remarks to an end by focusing on the societal change from the days of section 28 to where we are now. Section 28 was the ban on the teaching or “promotion”, as it was called, of LGBT+ issues. Since those days, we have been allowed to marry, to obtain a gender recognition certificate and to adopt, and we have gained many other hard-won rights. What does that mean in practice? It means there will be LGBT+ people at the school gates dropping off their much-loved children. Are we seriously suggesting to the Government that a child will have no ability to discuss why someone has been dropped off by two mums or two dads at the school gate? Of course not. Are we seriously suggesting in a digital age, when LGBT+ people are allowed to go about their lives out of the closet and in the knowledge that the state has protections against discrimination in place, that there is a way of preventing children from finding out that LGBT+ people exist? As we saw in the data, more children find out from social media than they do from schools or their parents.
It would be next to impossible to hide from children the fact that LGBT+ people exist. The Government think so, too. Their guidance for gender-questioning pupils explicitly said that it was not appropriate to continue to ask schools to hide a student who was questioning their gender from a parent because it would be next to impossible for that parent not to find out anyway in the digital age. If the Government agree with that when it comes to gender-questioning pupils, they have to be consistent and agree with that when it comes to LGBT content in the RSE curriculum.
When such content is done right, it has benefits for all. It tackles discrimination, promotes healthy relationships and reduces poor mental health. In his reply, I hope the Minister will offer a categorical assurance that the review will be focused on materials and training, and not on erasing LGBT+ people from existence. I can tell the Minister and the House quite clearly, as I am sure many others will, that no matter how hard some people might try, we are not going back in the closet. We exist, and there is nothing extreme about knowing we exist. In the RSE review, the Government should commit to examining why teachers lack the confidence to teach the subject, invest in materials to support the teaching of the subject, and not try to erase LGBT+ people from existence in the eyes of the students that teachers are there to look after.
Peter Dowd (in the Chair)
I remind Members to bob if they wish to be called. I also ask Members to address the Chair.
Sarah Champion (Rotherham) (Lab)
It is always a pleasure to serve under your guidance, Mr Dowd. I thank the hon. Member for Carshalton and Wallington (Elliot Colburn) for his very reasoned speech and for sharing his own experiences; it was a very powerful way to open the debate.
When I was first elected, I was focused on trying to prevent child abuse and putting child protections in place. I set up a campaign called “Dare2Care” with about 40 organisations, charities and survivors of abuse. We looked at how we could keep children safe. The one thing we all felt to be the most powerful was relationship education from primary school age. I was incredibly proud —I think it will probably be my biggest achievement—that in June 2017, we got cross-party support for making relationship education mandatory from primary school and for making sex and relationship education mandatory from secondary school. I know that that is already empowering children.
What we are talking about with RSE, particularly in primary school, is teaching children to respect themselves and respect others. That is what we are discussing today, because relationship education is about equipping all children to be safe, to recognise abuse and exploitation, and to know how to report it and seek help.
LGBTQ+ people, children particularly, must be recognised and included in the same way as heterosexual people are in relationship education, quite simply because LGBTQ people exist. They will experience relationships, sex and emotional connections good and bad in the same way as everyone else, and they have the right to be educated on the joys and dangers that come alongside those things. Avoiding mentioning the very existence of LGBTQ people in front of pupils and denying them the access to relationship education that their peers will get does nothing to safeguard them. It also does nothing to protect them from the hatred that, appallingly, seems to be getting worse and worse in this country.
I want a UK—a world—that is tolerant and respectful, and that appreciates and celebrates difference. To exclude that leads us to a very dark place. We know that from our recent history, because there are distressing echoes of section 28. Section 28 was repealed in 2003, because parliamentarians understood the great harms caused by the legislation and the chilling effect and discriminatory culture that rippled out from it. Those lessons from section 28 have informed successive Governments’ policies ever since, and they inform the cross-party support for LGBTQ+ inclusivity in guidance on relationships, health and sex education. They informed a generation of teachers who want to do better by their pupils and a generation of parents who want their children to access LGBTQ+ education.
Those who seek to exclude LGBT content will argue that it is not appropriate or necessary to teach it to primary-aged children, but I wonder what they actually think is being taught. Why is it so scary to them? Why do they not trust teachers in this respect? In key stage 1, being LGBTQ+ inclusive is as simple as acknowledging different families, parents, carers and other family members who may be lesbian, gay or trans. Those people and families exist, and children in our school communities need to know that any family that provides love, security and care is a valid family.
If children already know that they are gay, as many adult LGBTQ+ people say they did right back in the early days of primary, they need to know that all the safeguarding messages in school are for them, too. No child should be excluded, made invisible, or made to feel that they are “other” or not deserving of support from a trusted adult, because that opens the door for exploitation and their abuse.
By key stage 2, when children are going through puberty and studying it, they will have their own questions about the relationship between their bodies and sex. Opponents of inclusive LGBT+ education claim that it sexualises children, but that reflects a very narrow view of LGBTQ+ people. We cannot read through a briefing from the anti lobby without hearing about particular sex acts, as though being LGBT+ and being highly sexualised are synonymous—the total of someone’s identity.
That also reflects a fundamental misunderstanding of inclusive relationship education. The lessons that I have campaigned for have always been about helping children to understand the core values that underpin healthy relationships: mutual respect, self-respect, kindness and trust. It is also about knowing how, where and when to seek help with safeguarding and mental and physical health. The lessons are not pushing an evil agenda to corrupt young minds. They are preparing all children for the world as it is, where LGBTQ+ people exist and relationships happen, and also the world where it is dark, with some pretty awful haters out there.
It would be a travesty in this place if we were to unlearn all that we saw during the horror of section 28 and go back to a place of suspicion and hatred, which would leave our LGBTQ+ young children feeling alone and fearful once again. We must ensure that the current generation of young people leaving school—all young children leaving school—have the tools, skills and support that they need to be safe, happy and respectful, not to tolerate hate and extremism, and to engage in healthy relationships that enable them to thrive in our society.
Adam Holloway (Gravesham) (Con)
It is a pleasure to serve under your chairmanship, Mr Dowd. There are impassioned calls for the Government to remove LGBT content from the primary school curriculum and equally impassioned calls that children of 11 and under should be taught about LGBT relationships—the two petitions we are debating today. They reflect real anxiety over this hugely sensitive issue. Feelings run very high, and understandably so. Some worry about exposing young children to age-inappropriate material and foisting adult preoccupations on them, while others feel strongly that some children will not be able to make informed decisions about health, wellbeing and relationships without developing an understanding of LGBT issues at a fairly young age. I will make a few brief points on the issue, which chiefly relate to the teaching of transgender ideology.
My points are informed by a very unhappy experience in my constituency, where an academy trust developed a syllabus designed for primary school children promoting transgender ideology. The ideas at the heart of the teaching materials that were proposed and the manner in which the matter was handled caused massive upset among the parent body and a catastrophic breakdown in trust. We all have loads of WhatsApp groups, and the busiest WhatsApp group that I have is the group in my constituency, which the parents have entitled “protect our children”.
Thankfully, there has now been a resolution of sorts, with parents rightly being put back in control of what their primary-age children are taught, but the episode has impressed on me the need to remember that our understanding of transgender theory is by no means settled and that there is not a consensus of opinion.
Dame Andrea Jenkyns
As the mother of a primary-age schoolchild, I do not want him or other children, straight or gay, to learn about sex full stop. I also do not want young children in primary school to be taught about changing gender. I have no problem with whatever people want to do when they are older—life is short; be happy—but does my hon. Friend agree that we need to protect the innocence of children and their childhood, especially at primary school age?
Adam Holloway
Indeed, as well as respect parents. Because the long-term emotional consequences of transition are not properly understood, we should be careful about teaching contested concepts to young, impressionable children. We would not be doing right by the majority of parents if we failed to acknowledge that the idea that sex is assigned at birth is not a universally held view, but the complexities of explaining that to children aged 11 or under are pretty obvious. I also struggle to see how that issue could be taught honestly and objectively without explaining that there may be other reasons why a person feels uncomfortable about themselves or their body. Teaching that to primary-aged children is clearly hugely problematic. Instinctively, for those reasons, I feel that the complex issue of transgender ideology has no real place on the primary school curriculum.
It is, however, unrealistic to think that issues relating to gender will not crop up—of course they will. Some children will question their gender, and many will meet transgender adults. Where primary schools feel that such education does need to be included—which will not be everywhere—we need to support teachers in navigating the sensitivities, and to ensure that schools are safe places for everybody. Therefore, the Government need urgently to issue clear and prescriptive guidance on content, and as anticipated in the current review, take a firm grip on the materials that schools use.
I would prefer that what was taught reflected the fact that there is a divergence of views on the issue of transgender. However, at primary school level, what is taught about that need not go much further than emphasising that the choices people make should never be the subject of unkindness. The emphasis on parental engagement with the curriculum is welcome. Communication and trust between parents and schools is important, but while it is sensible to let parents see what their children will be taught before lessons are delivered, and while a parental opt-out may be useful, children are bound to discuss the topics among themselves. The focus must be on teachers getting it right and ensuring that the message primary-aged children receive is not confusing, age inappropriate or sexualised.
Lloyd Russell-Moyle (Brighton, Kemptown) (Lab/Co-op)
I rise to support the second petition, but it is important that we recognise the concerns of those who signed the first petition. I hope those concerns can be allayed.
Let us remember what we are really talking about: age-appropriate education for children. It is not the first time that people have deliberately used age-appropriate education to try to ban wider education; in fact, that is one of the ways that section 28 was introduced. People will remember “Jenny Lives with Eric and Martin”, a rather dull and boring book about a little girl who goes and has ice cream and walks through a park with her two daddies. That was one of the books that caused the furore when it was stocked by the Inner London Education Authority and it was suggested that it should be in schools. I do not think anyone in the Chamber would now suggest anything other than that the book is appropriate for children aged three to five, as it was designated at the time.
The book was rather dull and boring, as these things should be in many respects. People’s boring and dull lives in all their different aspects and orientations need to be explained to children, and we can see that if we look through children’s libraries in schools at the moment. There is the fantastic “And Tango Makes Three”, where two father penguins are raising a penguin child, which is actually a true story based in a zoo. There is “What Does a Princess Really look Like?”, which is for nought to three-year-olds, and is about how anyone can be a princess if they want and how everyone is flawed. The book ends with the father and the child realising that we are all flawed, but we are all striving to be good people. “Love Makes a Family” contains pictures of loving families in all their diversity—mixed race families, where the grandparents are raising the children, and so on. From “’Twas the Night Before Pride”, which is four to eight-year-old appropriate, children can learn about why people of all different backgrounds celebrate Pride. There are other books for older age groups.
Those books are in school libraries. Would I give “’Twas the Night Before Pride” to a two-year-old? No, because it is stated quite clearly on the book’s cover that it is appropriate for four to eight-year-olds. The same is true of teaching materials; we use different materials and different levels of education for different ages. However, I am afraid that there is no starting point where children need to start to realise that there are lots of different families, or to realise that gender and sex are important dividing points in society.
I think that children in lower primary school—infant school—generally should not be divided very much by sex at all. At that age, they should be taught, “Actually, you can be anything you want. You can play with any of the toys you want. You can do all of the sports activities that you want.” We should have almost no gender-specific activities or separation at that age, and I think that it is a great shame that we now see adverts for Lego that are gendered, whereas only 30 years ago they would have no gender attached to them. I think that we have gone backwards in many respects for infant and lower-primary-school age groups.
That does not mean that we should be blind to differences. It does not mean that we should not say, “When you get older, sometimes, girls and boys do separate off and do different activities,” but that that should be dealt with in an age-appropriate way. Of course, when we talk about bits of the body, as well—children of a very young age are curious—that should be described in an age-appropriate manner.
To ignore differences in that sense is actually to raise our children to be oblivious to what is appropriate—to what parts of their or others’ bodies are appropriate to show or to touch. If we do not get that across, we create children who are less safe, because when people then do have inappropriate relationships with them, they have not been taught that that is wrong. If we just talk about it in the sense of “mummy and daddy,” then we also set up a relationship danger, where we are not explaining to children that, “As you get older, your older brother and sister, and your older aunts and uncles, might also have different forms of relationship that are healthy and that are safe.” Therefore I do think it is important that that is done.
Where I think we have gone wrong, particularly in this area, is in the lack of proper guidelines when relationships education was rolled out initially. When some of the Birmingham protests were happening, we expected teachers to engage with the community without proper, clear guidelines from the Department for Education about what was and was not appropriate. Teachers had to go to bat for what were often very sensible policies without the defence of, “We are following the national guidelines.” Those guidelines have now been out for a little while, and it is perfectly sensible for those guidelines to be reviewed from time to time to make sure that they are still working.
I also think that that parents should be encouraged to see the text of the work in all aspects of education. In maths and in English, we should not have secret education, where we say to parents, “Oh, well, you want to know what literature your children are studying at the moment? No, I am afraid you can’t do that.” We should be open about it: “Here’s the book that we are studying, and here are the resources.” That is partly because we want to encourage parents to go on a learning journey with their children. We know that children perform best in schools when the parents are working at the same pace with the children. That sometimes means the parents learning as well. When I have taught nieces and nephews or worked with other younger children, and I have tried to help them with maths, sometimes, I learn as much as them. They do long arithmetic nowadays very differently to how I did it. It is perfectly acceptable to say that, as a minimum, we expect parents to see the resources. I do not think that is unusual. We should not be targeting LGBT specific RSHE in that discussion, but talking about it as a wider school community.
There is also a case for schools to ask parents to come in to learn about the RSHE the school is providing. I actually think we should encourage schools to offer those activities for wider parts of the curriculum as well. We know that children from highly educated backgrounds often have an advantage because their parents are able to engage easily in the curriculum, while parents who do not have that same academic background might not be able to do so. Schools inviting people in to engage with that is therefore something that we should encourage.
Stephen Doughty
My hon. Friend is making some important points. Does he agree that additional safeguards can be put in place? In Wales, the curriculum specifically says that material has to be “developmentally appropriate” for young people. We have to take into account not only age but knowledge, maturity, additional learning needs and physiological and emotional development to ensure that materials are provided at the right stage for every young person.
Lloyd Russell-Moyle
I totally agree. We also need to be clear that these considerations should apply not only if there is a trans child at the school; they are of wider importance. I remember this issue at my primary school, not with relationship education but with education around different religions. My year group was almost exclusively of a white and Christian background, but we learned about Buddhism and Hinduism, with all the different festivals. There is a danger of thinking that we should teach these things only if there happens to be somebody in the class with a gay family member, or an older sibling who is transgender. I benefited hugely from the school trips we took to the synagogue, even though I think I am right in saying that there were no Jewish children at my school. It was really important for me to understand the different backgrounds that different families have, and then, when I went to secondary school and mixed with a bigger group of people who were from different groups and had different backgrounds, I understood where they were coming from.
I want to touch briefly on a point I made in an intervention earlier. I think we have got waylaid in this conversation by condemning organisations that produce different age-specific materials. It is quite right that sex and relationship-based organisations that specialise in the subject will produce materials for adults and materials for children, and on their website they will publish all those materials. It is totally right that they will do that. It is, of course, totally wrong for a teacher to pick adult material and use it for activities with younger people. When we had this debate last time, I remember several Members on the opposing side of the argument reading out a number of rather adult activities, but when we got to the bottom of it there was no evidence that those activities had been run in any primary school in this country. To this day I have seen no evidence that schools have run those activities.
I am sure the exception will prove the rule in the sense that the outrage of one example out of the 100,000 schools across our country will be one where it needs to be age-specific, but that is why we need a better system for the Department for Education to share the books, educational resources and organisations that it recommends. Diversity Role Models is one organisation that does great work. It recently released a set of great cartoons that touch on all these different issues, which it launched only a few weeks ago at the Disney headquarters here in London. That is the kind of thing the Department should be signposting. It would ensure that teachers and parents have that reassurance, but most importantly that children can learn about the glorious diversity of the world they are growing up in, and that when they get to the right age, they are equipped and prepared to keep themselves safe and to have a happy and wonderful life.
Peter Gibson (Darlington) (Con)
It is a pleasure to serve under your chairmanship, Mr Dowd. I congratulate my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) on leading this debate on behalf of the Petitions Committee in his usual exemplary manner. Both the petitions that prompted the debate were clearly very popular. On the one hand, there are those who want to see LGBT content on school curriculums, and on the other, those who do not. In Darlington, one petition was signed by 211 people, and the other by 293 people.
I know how alone I felt as a gay teenager growing up—like I was the only one. I was scared of people knowing and of what exactly it would mean for me if they did. LGBT issues were not discussed at school and sex education, such as it was, was largely confined to some lessons in the biology lab. Thankfully, that has improved and, although not perfect and still somewhat controversial, sex, relationships and LGBT issues are taught in the context of a range of issues. These issues should be taught at an appropriate age. The material used should be appropriate, too, and subject to the inspection and approval of parents.
I welcome this debate, which in my view is timely, coming so soon after the debate on the private Member’s Bill proposed by the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle), and the debate that we sadly did not have on Friday on the Bill proposed by my right hon. Friend the Member for South West Norfolk (Elizabeth Truss). I have spoken openly many times about my support for lesbian and gay people and those with gender dysphoria. This debate is an important opportunity to set out, in the context of what it is appropriate for children to know, my views on these issues. I passionately believe that children should not be subjected to conversion practices, just as I do not believe that children should be medicalised. However, particularly while we are discussing what it is appropriate to tell young people, those who are experiencing gender dysphoria should be able to access appropriate counselling, challenging conversations and support, free from legislation preventing them from having such care.
While I am putting these matters on the record, on a topic that to my mind should not be a political football, I believe it is possible to stand up for the protection of safe spaces for women so that they are safe and comfortable, at the same time as having respect for those with gender dysphoria. I also believe that women should be entitled to compete in sports with other women. For the record, I respect trans people and want them to be free from discrimination, but I respect women, too, and they are entitled to have their spaces in which they are safe and comfortable.
The language of respect, tolerance and understanding is so important for young people to hear. If we do not teach our young people that people in society are LGBT, how will they have the understanding and knowledge to navigate these issues for themselves in society? Surely we want our young people to be tolerant and understanding and to have respect for everyone—core British values. We are unlikely to achieve that by keeping them in the dark.
Our children live in our communities, where families come in all forms, shapes and sizes. But the one thing that ensures that young people have the best upbringing is that they grow up with love. People in our communities, and indeed in our children’s families, are LBGT, and to my mind it is right that children learn about the society in which they will grow up and live, in an age-appropriate way. The point made by the hon. Member for Cardiff South and Penarth (Stephen Doughty) about that being developmentally appropriate is entirely right too.
It is a fact that young people have sex and experiment. We should not ignore this, but address it head on. We must ensure that schools have the resources needed to educate young people about how to have sex safely, so that we are more likely to be able to deal with the worrying rise we have seen in sexually transmitted diseases. If we had taken that approach in the 1990s, we might not have seen the extent of issues that we did with HIV. Although I commend the Government for all they are doing to bring about zero transmissions of HIV by 2030, improving and extending safer sex education is a key part of fulfilling that objective.
We have sadly seen increases in hate crimes and discrimination towards LGBT people. Hate and discrimination come from ignorance and intolerance. If we tackle those issues with education and understanding, we set the groundwork for reductions in those problems in the future.
Stephen Doughty
The hon. Gentleman is making a characteristically powerful speech. Of course, it is not just hate crime in society that matters; does he agree that it is also about what is happening in schools for young LGBT+ people? A 2021 study by Just Like Us found that 91% of LGBT+ young people would have heard negative language about being LGBT+, and that they were twice as likely to have been bullied. Inclusive education is a critical way of tackling that.
Peter Gibson
I could not agree more. Tackling homophobia, transphobia and bullying in our schools is absolutely key, and educating people about those they will meet in society is absolutely key to that.
Teaching our kids that LGBT people exist does not and will not make them so, but it may help those young people who are questioning who they are, and who they are going to be, not to feel so isolated and excluded. To my mind, it will also increase the understanding, tolerance and acceptance of those around them. I have spent a great deal of my time in schools in my constituency, and some schools in Darlington are doing some fantastic work in this subject area, for which I commend them. I particularly highlight the work of Wyvern Academy with its alliance group, which provides mutual support under the guidance of teaching staff.
In conclusion, I believe it is right that we teach our children about the world that they will become citizens of—as is appropriate to their age—free from conversion practices, free from medicalisation, and underpinned by appropriate and robust counselling. We will help to improve tolerance, understanding and acceptance; we will help to reduce hate and discrimination; we will help to reduce sexually transmitted diseases; and we will underpin British values of individual liberty, mutual respect and tolerance of others.
Mr Ben Bradshaw (Exeter) (Lab)
I left school just over 10 years after homosexuality was decriminalised, and there was certainly nothing like LGBT affirming or inclusive sex and relationships education. Consequently, I did not know anyone at school who was openly gay. I certainly did not come out as gay until after I left school and found the relatively safe space of the University of Sussex, and I was fortunate enough to have a very supportive family and group of friends. I was therefore very moved when I visited one of my local schools in Exeter a few weeks ago. I was invited by a group of LGBTQ+ students for their weekly safe-space hour, when they get together and talk about their lives, feelings and so forth. It was an extremely moving experience for me because I thought of all the people of my generation who had been through experiences at school and who would have benefitted from living in a more enlightened age.
Of course, section 28, to which a number of colleagues have referred, was very much a backlash against the increasing visibility of lesbian and gay people after decriminalisation at the end of the 1960s. What is happening now, with the backlashes we are seeing against LGBT inclusive and affirming education in schools, is something rather similar—that visibility has continued, particularly when it comes to trans and non-binary young people. I just hope that we will resist the backlash, because some of the arguments that I am hearing now are very similar to ones that I heard back then—that we can make somebody gay or lesbian.
Now, people are saying that we can make somebody trans, and that it is an ideology. That phrase has been bandied around in this debate a number of times already, and it puzzles and upsets me. Being trans is not an ideology; it is who they are. It is something innate. Gender dysphoria is a condition that has been recognised for decades, if not hundreds of years, in human society. I worry that we are going back to pathologising and demonising people who simply want to be themselves, and young people in particular deserve the right to be respected and supported.
Although I am delighted to say that these days the vast majority of families are supportive and affirming of their children and other young LGBT people in general, we know that sadly some still are not. I do some work with an LGBTQI charity that works with young homeless people. Thirty per cent of young homeless people in this country are LGBTQ+, having been rejected by their families for being open about their sexual orientation or gender identity. Those young people need a safe space in school, and what schools have so brilliantly provided in recent years is that safe space. I have to say that whenever I pick up feedback or criticism about SRE in schools, particularly from young people themselves, it is that it is not affirming or inclusive, is not of good enough quality or is lacking altogether. The criticism I hear from young people shows that we need to build on what we have achieved and treat everyone with respect.
As I prepare to leave this House after 27 years, having come in at a time of moral panic about gay people and having myself been part of some of the fantastic progress made in this country in becoming a more tolerant, accepting and humane place, it saddens me that the consensus has somewhat broken down in recent years. I hope that the election this year will help to draw a line in the sand and that we can move on to a more hopeful and optimistic future in which not only all our young people, but everybody in this country—whatever their sexual orientation or gender identity—is supported and treated with respect.
Nick Fletcher (Don Valley) (Con)
It is a pleasure to serve under your chairmanship, Mr Dowd. I thank my colleague on the Petitions Committee, my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn), for his opening remarks.
Currently, up and down the country, we have schools teaching our children that girls can be boys and boys can be girls. It is hard to believe, and that is the issue that I will specifically focus on today. Let me start with an analogy. If we told our children that two plus two equals five enough times throughout their education, would we be surprised if some—not all but some—started to believe it?
Sarah Champion
We do trust teachers to teach that two plus two equals four, so if we trust them in that respect, why do we not trust their judgment in all respects?
Nick Fletcher
I thank the hon. Member for her contribution. I will come back to my speech—I do not want to spoil the flow of it, as it were. From what I have heard, the consensus here is that what we are teaching children should be transparent and age-appropriate. I believe it should also be grounded in truth. There have been remarks from lots of people here saying that the literature being shown to our children is not there and that there is no real evidence of it. Members are literally burying their heads in the sand on this issue. If they did not and they actually worked with myself and maybe the Department for Education and looked at all the evidence I have, maybe we would not have to go on social media and say, “Look what our kids are being taught. This is abhorrent,” and then somebody jumps on my page and so on and so forth. If all the adults in the room sat down with the Minister and said, “Look, this is what is happening”—I have examples in my folder, but we cannot show pictures in debates.
Adam Holloway
I will give an example. One primary school in my constituency was using a book that included a picture of a grandfather in a gimp suit.
Nick Fletcher
I thank my hon. Friend. There is so much evidence out there of bad actors in this field, and I will come on to them.
I thank the hon. Member for Rotherham (Sarah Champion) for her earlier intervention. Would we be surprised if some—not all but some—children started to believe that two plus two equals five, especially when told by one of the main influences in their life, their teacher? We could put that together with many on social media also saying that two plus two equals five. Then, let us say, that people start wearing lanyards saying that two plus two equals five. Perhaps they do not really believe it, but they think it is a kind thing to do in order to make people who believe that two plus two equals five feel included. Then, let us say that the same people start putting two plus two equals five on their email footers for similar reasons. That thought gets compounded further when perhaps an irresponsible broadcaster through one of their main soaps has a storyline where an adult tells a 12-year-old that it is okay to think two plus two equals five. Then, let us say, that private businesses start putting posters up, again saying that two plus two equals five, and that there are flags flying down the high street saying two plus two equals five.
Then, let us say, some people start to stand up and say, “No, it doesn’t. Two plus two equals four. Let’s tell the truth.” Let us say that those individuals are called bigots and are silenced by venomous individuals on social media. If that scenario took place, would we be surprised that we would have thousands of young children believing that two plus two equals five? That is exactly where we have got to through teaching gender identity in our schools. Should our children be exposed to material that states they can be a boy or a girl depending on how they feel? No, they should not.
I agree 100% with the petitioners who want to remove such content from our schools. Children should not be subject, under any circumstances, to unscientific ideological material that leads to harm. I believe there is nothing more abhorrent then misleading the young, and it must stop.
Stephen Doughty
I seek a point of clarification. The hon. Gentleman says that he agrees with the petitioners, but the petition explicitly calls for the removal of LGBT+ content. Is it just the T that the hon. Gentleman wants to remove, or does he want to remove all LGB content as well?
Nick Fletcher
It is the T that I am discussing today, but I believe that the sexualisation of our children should stop within schools—all of it. I do not think there is any need for it, especially in primary schools. I genuinely do believe that there is absolutely no need for it.
Lloyd Russell-Moyle
I am very interested in the hon. Gentleman’s analogy, but it is a bit unclear. Is he saying that we should not teach what two plus two equals at all? In other words, is he saying that we should not teach anything around relationships, including straight relationships and that there are parents, mothers and fathers? Or is he saying that he wants that to be taught, but that the only outcome he wants is that people have to be straight? That is what is not clear.
Every book, whether it be Enid Blyton, Harry Potter or whatever, mentions relationships and we talk about them when we teach literature to children. In primary schools, children are taught about how a hen lays an egg, and the egg hatches—
Lloyd Russell-Moyle
It would be great to know what the hon. Gentleman wants: only straight, or nothing?
Nick Fletcher
I thank the hon. Member for his speech. I said right at the beginning that I would be speaking specifically about trans, and what I was trying to say is that I believe there is an untruth there. Two plus two equals four, but we seem to be teaching that two plus two equals five when it comes to gender. I believe that boys are boys and girls are girls, and that they cannot change sex.
Stonewall, Mermaids and other bad actors in this field have lobbied schools into subscribing to their ideologies, which are not grounded in anything factual. We have mainstream publishers such as HarperCollins publishing school textbooks that tell children:
“Myth 1—the world is divided into men and women.”
HarperCollins actually teaches children:
“Trans women are women and trans men are men.”
If that were so, that would be the end of female-only sports.
We have Stonewall teaching children:
“Everyone has a gender identity.”
I do not, so that cannot be true. We are lying to children. We have Brook teaching that a man who identifies as a woman is
“A woman of trans history”,
or even simply, “A woman.” If that were so, that would be the end of female-only spaces. We have some teachers, who have written to me, who are too scared not to teach those lessons, when they know that what they are teaching is wrong. That cannot and should not continue.
The Department for Education has quite rightly written a letter to schools telling them to let all parents see what their children are being taught. However, we have evidence that some schools are ignoring that and continuing regardless. Parents who have been shown what is being taught have sometimes seen only part of the material, or they have had to go into schools to see it and are then told they cannot photograph or copy it. Copyright issues have trumped our children’s safety. Be under no illusion—this is happening across the country. Swindon Borough Council produced its own material for use across local schools and it is quite clearly abhorrent. A staff member from Pop’n’Olly who explains to primary school children that he is trans and non-binary claims to have spoken to 100,000 children. Jigsaw says it has worked in 7,000 schools.
In 1994, we had 12 children suffering with confusion about their body and attending gender clinics. Now, we have 5,000 on a waiting list and we ask: why? I will tell you why: it is because our schools have been captured by bad actors in despicable business making huge sums of money out of feeding our children this ideology. We should not have to put legislation in place to deal with this. We as a nation should be playing no part in this. However, if individuals are too weak or too scared to stand up and say no to this ideology, I am afraid we must legislate. We must put legislation in place to deal with this with immediate effect. In 10 to 20 years’ time, this will be the next contaminated blood scandal or Post Office scandal. I hope all who have been pushing this will be dealt with accordingly.
Peter Gibson
Will my hon. Friend clarify something for me? His views on this particular subject are well documented and well circulated. Does he believe that the diagnosis of gender dysphoria in somebody who is identifying as trans simply does not exist?
Nick Fletcher
My hon. Friend and I are on opposite sides of this argument. I know he does not agree with me. We have, however, both been able to speak to each other on this with respect, which I really do hope continues. I do genuinely believe that there are people out there who are struggling with gender dysphoria—
Peter Dowd (in the Chair)
Order. Could the hon. Gentleman speak through the Chair?
Nick Fletcher
Sorry, Mr Dowd. I do genuinely believe that there are people out there who are struggling with gender dysphoria, and I think we should treat all these people with respect and kindness. As long as we do not have biological males in single-sex spaces, as long as we do not have biological males in women’s sport, and as long as we are not indoctrinating our children with this, I have not got an issue. I genuinely believe there are people out there who are confused with this. They should be able to go to people and seek help, but I do not think they should be going to people for it to be affirmed; they should be able to have an open and free conversation about this. But there is a time and a place for it, and our schools are not the time or the place.
I and several colleagues have recently written to the Department for Education to request that parents can withdraw their child from RSHE lessons. At present, children can only be withdrawn from sex education. However, we have an industry that seems set on teaching our children that they can be the opposite sex to what they were born. They have published this material in the relationships part of their textbooks, and therefore children cannot be removed from these lessons. Parents must be able to protect their children from this ideology. They must be able to do it now, before more children are affected by this teaching. At present, we have absenteeism levels not seen before within our schools. This material is not helping.
I ask the Minister, why are we allowing this in our schools? It is a false idea with no basis in science, leading some vulnerable children to seek puberty blockers, then cross-sex hormones, then invasive, risky surgery. Those practices impact bone and brain development. They chemically castrate children. They leave vulnerable children, vulnerable young people, living with lifelong, irreversible complications.
I can see why parents would choose not to send their child to a school that is teaching this—I would not either —so what is the answer? I believe this teaching has to stop in our schools. We need to take this literature out of our schools completely, change the RSHE guidance and allow parents, as a safety net, to withdraw their children from RSHE. As a society, we should call out every organisation that is taking part in this. Individuals who are joining in with this rhetoric should stop and think, “Where does this end?” They should stop and think with regard to trans-progressive flags, the lanyards and the pronoun email footers, because where does it end for our young children when they see this? They should stop and think about fuelling confusion in society and especially in the minds of our children.
If we encounter any person who is personally struggling with this, we just need to be kind. We should not have to legislate for kindness; we should all just be decent and treat people with respect. But sometimes we also have to be cruel to be kind. Sometimes we just have to say no. Parents, teachers, every adult just needs to be strong and say no to children—no, they are not born in the wrong body.
Let me say this one more time. There are few things more dishonourable than misleading the young, and I for one will play no part in it. I hope this Department will really step up now. The Department of Health and Social Care is beginning to see the light. The Home Office is, too. I hope the Department for Education can as well.
Catherine McKinnell (Newcastle upon Tyne North) (Lab)
It is a pleasure to serve under your chairmanship, Mr Dowd. I thank the hon. Member for Carshalton and Wallington (Elliot Colburn) for bringing this debate forward on behalf of the Petitions Committee. As a former Chair of the Petitions Committee, I appreciate how important it is for people to have their say on the issues that they care most about, and I am glad that we are having this discussion today. It is good to be in this debate with so many of my former fellow Petitions Committee members.
I pay tribute to my hon. Friends the Members for Rotherham (Sarah Champion) and for Brighton, Kemptown (Lloyd Russell-Moyle) and my right hon. Friend the Member for Exeter (Mr Bradshaw), who have spoken about their views. As hon. Members have set out, it has been a legal requirement for all primary schools in England to teach relationships education and for all secondary schools to teach relationships and sex education since September 2020, although schools were able to delay that for a year because of the pandemic. Under the legislation, primary schools can choose to teach age-appropriate sex education in addition to relationships education. Many primary schools choose to teach sex education tailored to the age and physical and emotional maturity of their pupils, but the main focus is on ensuring that children have the building blocks for positive and safe relationships, starting with family and friends, how to treat one another with kindness and recognising the difference between online and offline friendships.
The legislation provides for the right of parents to withdraw their children from sex education, while providing children approaching 16 with rights to opt in, and gives schools, including faith schools, flexibility on their approach. Schools are required to consult parents when developing and reviewing their policies on relationships education and RSE, but when and how that content is taught is a decision for schools. Importantly, the regulations provide that a school’s policy must be published online and must be available to an individual free of charge, so that parents can be confident about what is being taught. That is also important so that parents can be available to their child at home to talk about what might be being taught in school, and be prepared for any questions or discussion points that might arise with their child.
Labour has put great focus on the relationship between schools and families, and open and transparent communication on these issues forms an important part of that. Of course, these positive relationships in our education system begin with how the Government approach these things. We have too often seen a combative approach with schools, which can filter down to a combative approach between schools and families. Labour wants to see a much more positive and constructive approach to the education of our children and young people.
On LGBT specific content, the guidance states:
“At the point at which schools consider it appropriate to teach their pupils about LGBT, they should ensure that this content is fully integrated into their programmes of study for this area of the curriculum rather than delivered as a standalone unit or lesson.”
Labour agrees it is important that LGBT issues are taught as part of sex and relationships education in a way that is inclusive and respectful to all.
The Department for Education announced a review of the statutory guidance last year in the context of a variety of developing concerns, including a worrying increase in sexual harassment, violence against women and girls, developments in activities online, and a worrying deterioration in young people’s mental health. A consultation on guidance for schools and colleges on gender-questioning children also closed last week, with the Government response due later this year.
There are strong and sometimes conflicting views on these issues, as we have heard in the debate today. Teachers and school leaders have therefore been very clear on their need for guidance from Government on the approach to take when teaching young people about relationships and sex. Teachers are not clinicians, mental health professionals or campaigners. They are educators who are required to educate within a clear framework that complies with equalities legislation and ensures that all teachers feel confident and well informed about the content which they are to teach.
It is therefore right that the issue went out to consultation. I know that organisations and people with a range of opinions will have fed back to the Government. I look forward to seeing how the diversity of opinion is reflected in the final guidance. I hope to hear more detail from the Minister on the timetable for the publication of consultation responses and the final guidance.
Labour is the party of equality. The last Labour Government did more to advance LGBT equality than any other in British history, making it illegal to discriminate on the grounds of sexual orientation, allowing lesbian and gay couples to adopt and making homophobia and transphobia hate crimes. In that spirit, we must redouble our efforts to ensure that conversations are held with the utmost respect and compassion and careful consideration for those potentially affected by our deliberations and decisions. The issues should not be used as a political football in our politics, which we have unfortunately seen too much of in recent years.
Labour is keen to ensure that the school curriculum ensures every child feels represented and receives a high-quality and enriching education. Our expert-led curriculum and assessment review will look at how we will deliver a broad and balanced curriculum that reflects the whole of our society. We will learn from international best practice and expert research in doing so. That is all part of Labour’s mission to break down the barriers to opportunity for everyone.
Once again, I thank the hon. Member for Carshalton and Wallington for securing this debate and the constructive way in which he set out his arguments. I look forward to hearing the next steps from the Minister.
The Minister for Schools (Damian Hinds)
It is a great pleasure to see you in the Chair, Mr Dowd—in my case, for the first time—and a pleasure to be here for this well-attended debate in Westminster Hall. I thank my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) for opening the petition debate on whether lesbian, gay, bisexual and transgender content should be included in relationships education in primary schools. I also thank the petitioners involved in the two petitions.
The subjects are, as my hon. Friend the Member for Gravesham (Adam Holloway) said, sensitive. We have heard different perspectives and had a passionate but respectful and reflective debate informed by constituency experiences and, in multiple cases, colleagues’ own personal experiences, which they have shared today. I thank everyone who has taken part: my hon. Friends the Members for Carshalton and Wallington, for Gravesham, for Darlington (Peter Gibson), and for Don Valley (Nick Fletcher); the hon. Members for Rotherham (Sarah Champion), and for Brighton, Kemptown (Lloyd Russell-Moyle); the right hon. Member for Exeter (Mr Bradshaw); and the Opposition spokesperson, the hon. Member for Newcastle upon Tyne North (Catherine McKinnell). I also thank those who took part through interventions.
When we brought in the relationships, sex and health education statutory guidance from September 2020, it was the first update to that guidance for 19 years. In the intervening period, a lot had changed. A lot had changed in our society, and the law had changed in important ways. Technology and new media had changed, and continues to change, both what happens in our society and what our children are exposed to in ways that continue to develop.
It is essential to support all pupils to have the knowledge they need to lead happy, safe and healthy lives, and that they are able to understand and respect difference in others. That is not just my view. It also comes from extensive engagement with teachers, parents and others: we issued a call for evidence and a consultation on RSHE back in 2018. Colleagues across the House have repeated it, including my hon. Friend the Member for Darlington who did so rather powerfully.
High-quality, evidence-based and age-appropriate teaching of RSHE can help to achieve exactly what I have just set out. It can prepare pupils for the opportunities and the responsibilities of adult life, and it can promote pupils’ spiritual, moral, social, cultural, mental and physical development. In that context, we want all children to understand the importance of respect for relationships and the different types of loving and healthy relationships that exist in our society.
In primary schools, age-appropriate relationships education involves supporting children to learn about what healthy relationships are; about mutual respect, trustworthiness, loyalty, kindness, and generosity; as well as, crucially, keeping safe both online and offline. That then provides the basis for relationships and sex education at secondary school, where pupils are taught the facts around sex, sexual health and sexuality, set firmly within the context of relationships.
We do need to strike the right balance. We do not want teaching inadvertently to fast-track children into engaging in, or exploring, adult activities, rather than enjoying childhood and being children. To teach young people about same-sex relationships does not mean teaching children in primary schools about sex.
It should focus on teaching children that society consists of a diverse range of people, that families come in many shapes and sizes, and that it is all right to be different. Some children in the classroom may, of course, have lesbian, gay or transgender family members and will rightly want to feel included in lessons about positive, healthy and trusting relationships.
Crucially, if this content is not covered in the classroom, it does not mean that children are not going to come into contact with it. Most frequently, they will either turn to their peers—in fact, they do not even have to turn to their peers; they will get it from them anyway—or to the internet. My hon. Friend the Member for Carshalton and Wallington reiterated the fact that, as we all know, that can be a dangerous and distorted place. The RSHE statutory guidance is clear that it is for schools to decide at what point in their pupils’ education it is appropriate to cover content related to LGBT—
Dame Andrea Jenkyns
Eighteen months ago, when I was very briefly in the DFE, I raised with civil servants my concern over constituents not being able to see the actual materials and being shown a summary only. I was reassured then that all schools would be emailed to say that materials must be shown to parents if requested. It was not done while I was there. Can the Minister confirm whether it has been done since?
Damian Hinds
It has, and later in my remarks I will come on to this very matter. As I was saying, the statutory guidance is clear that it is for schools to decide the point in their pupils’ education at which it is appropriate to cover matters related to LGBT.
Sarah Champion
I thank the Minister for his speech, and for all the work that he has done in this area. However, there is something that I have found increasingly frustrating. All schools were meant to have the necessary training by September 2021. I think that what we are hearing today are concerns that some teachers are not equipped, so they may be drawing on their personal experiences. Without giving every teacher the training, the Minister is leaving them somewhat exposed.
Damian Hinds
I recognise that there are questions around training. In truth, it is also the case that we cannot just say, “If only there was more training then none of these issues would arise.” That is just not the case. It is something that one looks at, and I recognise the issue, and the related issues around materials and their quality. I will touch on both of those later.
The RHSE statutory guidance is clear that it is for schools to decide the point in their pupils’ education at which it is appropriate to cover matters related to LGBT. That means that primary schools have discretion over whether to discuss sexual orientation or families that have same-sex parents. Earlier, the hon. Member for Rotherham outlined what the statutory guidance says. When we talk about LGBT in primary schools it is in the context of relationships and, in particular, families. The statutory guidance says:
“Families of many forms provide a nurturing environment for children. (Families can include for example, single parent families, LGBT parents, families headed by grandparents, adoptive parents, foster parents/carers amongst other structures.)”
There is no statutory content on LGBT in the primary curriculum tables.
Similarly, it is for primary schools to decide whether to teach any sex education. The RHSE guidance does not provide a definition of what relationships and sex education should include, but it is clear that it should be
“tailored to the age and the physical and emotional maturity of the pupils. It should ensure that both boys and girls are prepared for the changes that adolescence brings”.
Primary schools that do teach sex education must set out the details of what they will teach in their relationships and sex education policy, on which they must consult in advance with parents.
Secondary schools should provide an equal opportunity to explore the features of stable and healthy same-sex relationships, and ensure the content is integrated throughout the relationships and sex education curriculum. We trust our teachers to deliver this content in a suitable and age-appropriate way, respecting the beliefs and values of all pupils in the school. Our guidance says that schools are free to determine how they cover LGBT-related contented, and
“we expect all pupils to have been taught LGBT content at a timely point as part of this area of the curriculum.”
The majority of teachers do that well, and adapt to the circumstances of their pupils.
Some people may feel that covering LGBT matters contradicts tenets of their faith. I am conscious that religious faith is itself a protected characteristic. However, schools with a religious character can teach the distinctive faith perspective on relationships, and pupils should be able to have a balanced debate about issues that are contentious. A good understanding of pupils’ faith backgrounds and positive relationships between the school and local faith communities help to create a constructive context for the teaching of those subjects. Religions teach tolerance and respect, and those subjects are designed to help children from all backgrounds and faiths build positive and safe relationships.
We worked closely with the Catholic Education Service, the Church of England, the Board of Deputies of British Jews, and the Association of Muslim Schools on the support for implementing the curriculum. I know that some of those organisations develop their own materials that align the new curriculum with their faith prospectus. There is no reason why teaching children about the society that we live in, and the different types of loving, healthy relationships that exist, cannot be done in a way that respects everyone.
I also know that some parents are frustrated that they cannot withdraw their children from relationships education, as opposed to sex education; that came up earlier in a contribution from my hon. Friend the Member for Don Valley. They believe that the boundaries can be blurred with sex education, from which there is a right for a child to be withdrawn, and I recognise those sensitivities.
I also recognise that parents are the first educators of their children and may want to withdraw their child from lessons so that they can first discuss some topics with them outside school. All pupils should be taught about caring friendships and respectful relationships, and they need to understand how to keep themselves and others safe and what to do when they feel unsafe. It is important that parents know what their child will be taught in advance of it being delivered in the classroom, which is why there is a requirement on schools to publish their relationships, or relationships and sex, education policy. Schools must consult parents as they develop and renew that policy.
There has been concern, which has come up again today, over the materials that some organisations have prepared to teach relationships and sex education in schools. It is for schools to make decisions about what materials to use, and it is their responsibility to ensure that what is taught is safe and age-appropriate. For clarity, it is worth reiterating that it has long been the case in our school system that schools decide what materials they use for everything. We do not have a top-down system where some mandarin decides, “This is the textbook for such and such a subject,” and everybody learns from that. There has always been diversity, which sometimes creates challenges, but having it is a strength of our system. However, parents must have confidence that what is taught is safe and age-appropriate. We believe that transparency is the best—indeed, the only—way to be absolutely sure of that, so it is essential that parents know what is being taught in the classroom and what resources are being used.
My hon. Friend the Member for Carshalton and Wallington was absolutely correct when he said that those requirements are already set out and clear. However, following concerns about things such as barriers because of copyrights, the Secretary of State has now written—twice—to all schools to remind them of the responsibility to make available materials, including relationships education materials, where parents want to see them, and that copyright law does not prevent them from doing that. We will ensure that the content of those letters is reflected in the revised RSHE statutory guidance when it comes out.
Nick Fletcher
The Department has written to schools, but I have evidence that they are ignoring the guidance. Will the Department write to the producers of this literature and tell them their responsibilities? There are fewer of them than there are schools, so that is probably the best way forward until we completely review what we are teaching our children and, hopefully, get in place a full right to withdraw from RSHE materials.
Damian Hinds
We think it is a good thing that there is a diversity of material to support all subjects. I mentioned that some religious organisations, for example, produce materials to support RSHE, as do many other organisations, such as commercial organisations and so on. Oak National Academy has committed to produce materials to support the teaching of RSHE in the future. Oak has had significant investment from Government, not so that it can replace other sources, but so that it can be a trusted and—from a teacher’s point of view—time-saving producer of those materials. However, we do not get involved in the production, or as a gatekeeper, of materials, and we will not do that with Oak either; it will do that independently. Our relationship is with the 22,000 schools that we have in this country and with the trusts and local authorities that they are part of; they make the decisions about what to teach with. Again, however, we think that the surest guarantee in this area is absolute transparency. That is the most important thing for everybody’s confidence in the system. As I said, the Secretary of State has already written to schools, and that will be reflected in the new guidance when it comes out.
Peter Gibson
Could the Minister provide a bit of clarity? If a school seeks to share with parents the information it will use in its classes, but the provider of that information refuses it permission to do so, could it legitimately terminate the contract with that provider, and should it do so?
Damian Hinds
I am not a lawyer; I will not start commenting on commercial contracts. However, in any circumstances, if a parent wants to see what their child is seeing in relationships and sex education, they should absolutely be able to do so.
Nick Fletcher
I thank my hon. Friend the Member for Darlington (Peter Gibson) for his comment. As I say, we agree on certain things, and it is important that we come together. I have a similar question: if parents see material they are not happy with—I have a folder full of material here that thousands have seen and are not happy with—what redress do they have? What can they do from that point forward, and what if the school will not listen?
Damian Hinds
In my experience, schools do listen. They want to listen, and they want to be in communion with their community and the parents at the school. I am not in the business of trying to create or encourage conflict; we want people to talk. We cannot legislate for everything; we cannot say that there is no circumstance in which an unsatisfactory outcome will pertain, but it is my firm belief that, when people talk to each other and try to understand each another, as a general rule, sensible ways forward can be found. Again, transparency is the key thing underpinning that. If we do not have transparency, we risk not having trust in what is actually happening.
To further strengthen the content in the RSHE statutory guidance, the Secretary of State brought forward a review of the guidance and appointed an independent expert panel to advise on the ages at which sensitive topics should be taught in the curriculum. We have also invited parents into the Department to share their experiences of school engagement and access to RSHE materials.
We are currently working through recommendations and expect to have the revised statutory guidance out for public consultation at the earliest opportunity. We are looking at how to be clearer about the distinctions between the subjects, and about the content taught in each of them, to support decisions about whether to withdraw children, including from relationships education. We will consult on those changes, and parents and other interested parties will have the opportunity to present their thoughts on the curriculum when the revised RSHE statutory guidance is published for consultation.
We know that young LGBT people are more likely to be bullied and discriminated against, and to suffer with mental ill health. The Department’s school omnibus survey of 2017 showed that after gender, being or being perceived to be LGBT is one of the main reasons why pupils face bullying. “Keeping children safe in education” is the statutory guidance that all schools and colleges must have regard to when carrying out their duties to safeguard and promote the welfare of children. Among other things, the guidance sets out how schools should protect children from harm and what to do if they have concerns about a child. In addition, all schools have to comply with the relevant requirements of the Equality Act 2010 and to ensure that topics in RSHE are taught in a way that does not discriminate against pupils or amount to harassment.
Over three years, the Department provided £3 million to fund five anti-bullying organisations to support schools to tackle bullying. That included projects targeting bullying of particular groups and projects supporting victims of hate-related or homophobic bullying. Anne Frank Trust UK has developed a “Different But The Same” project and supported nearly 80,000 young people and their teachers and schools to tackle bullying focused on protected characteristics.
Colleagues including the hon. Member for Sheffield Central (Paul Blomfield) and my hon. Friend the Member for Carshalton and Wallington raised the important topic of young people’s mental health. To support the mental health of pupils, the Government have committed to offer all state schools and colleges a grant to train a senior mental health lead by 2025, enabling them to introduce effective whole-school approaches to mental health and wellbeing. As at December 2023, 15,000 settings had claimed a grant, including more than seven in 10 state-funded secondary schools. The Department is also expanding mental health and wellbeing support for school and college leaders, and from April will begin funding a three-year mental health and wellbeing support package.
Our consultation on the different but related subject of gender questioning and related guidance has recently closed, and we will publish the Government response to the consultation alongside the guidance itself in the coming months. I want to reiterate today that the safety and wellbeing of children will always be our primary concern, which is why it is at the heart of that guidance. The new RSHE curriculum has been taught in schools for less than four years. We want to know what parents, teachers and, of course, pupils think, and our public consultation will give everyone the opportunity to tell us. In addition, we have sought the views of school leaders, teachers and pupils through an independent research project that has undertaken quantitative and qualitative research to look at how useful the statutory guidance is, the challenges in implementing it, pupils’ engagement, and teachers’ confidence in delivering it. The final report will be published shortly and support the review process.
The Government understand that parents are the primary educators of their children and that all will want to preserve the innocence of childhood until they feel the time is right to teach them about the society in which they are growing up. These children are our future business owners, doctors, dentists and politicians, and they need to understand and respect the diverse population of the country in which we live. The RSHE curriculum is there partly to help them to do just that.
Elliot Colburn
I thank you, Mr Dowd, the petitioners and, of course, every colleague who has contributed today. You will be happy to hear that I will not take us through to 7.30 pm. I thank the Minister for his considered response and all colleagues for the calm way in which we have held this debate. I just want to reiterate, as the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) said, that it is important that we know about healthy but boring, although “boring” is not an adjective I would ever use to describe the hon. Member, despite the many other things we may have called each other. There is nothing extreme about knowing that different people and different kinds of healthy relationships exist.
I look forward to the Government engaging with all stakeholder groups as part of the RSE review, because it is clear from the pupils, teachers and parents who have engaged so far, in the short time mandatory RSE has been on the statute book, that there is a need to review these policies. It is good to review them and to keep them up to date, but it is clear from teachers, pupils and parents that there is dissatisfaction about how they are being implemented or not implemented. There is clearly still a lot to work through, as we would expect with any new guidance going through a teething process. I look forward to that, and to engaging with the Government on it. I will not detain us any longer, Mr Dowd.
Question put and agreed to.
Resolved,
That this House has considered e-petitions 630932 and 631529 relating to LGBT content in relationships education.
Written Statements
Tackling Intimidation in Public Life
(8 months, 1 week ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Deputy Prime Minister (Oliver Dowden)
Vigorous and robust debate is at the heart of British democracy and is essential to its health.
However, in recent years, elected representatives and other public figures have been subject to increasing levels of intimidation and abuse, aimed at them and their families. As the Prime Minister set out on 1 March, council meetings and local events have been stormed, and MPs do not feel safe in their own homes. On 21 February, protesters threatened to force this House to have to “lock the doors of Parliament” and highly divisive slogans were projected on to the walls outside. The Government remain committed to ensuring that those who commit acts of evil or promote mob rule over democratic rule will never triumph.
It is important to distinguish between strongly felt political debate on the one hand, and unacceptable acts of abuse, intimidation and violence on the other. British democracy has always been robust and oppositional, but there can never be an excuse to try to shout down democratic process or deliver social change through force, rather than force of argument.
Free speech within the law can sometimes involve the expression of political views that some may find offensive. But a line is crossed when disagreement mutates into intimidation, which refuses to tolerate other opinions and seeks to deprive others from exercising their free speech and freedom of association.
Three years ago, my right hon. Friend, the Member for Norwich North (Chloe Smith) set out the steps that the Government are taking to tackle intimidation in public life—9 March 2021, HCWS833. This followed the then Prime Minister’s 2017 commission of the Committee on Standards in Public Life to undertake a review into abuse and intimidation in elections and the subsequent Government response.
With scheduled elections in the UK on 2 May, I wish to update hon. Members on the Government’s wider programme of work in this area.
Attachments can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2024-03-18/HCWS348/
[HCWS348]
Delivering Rural Opportunity: Report
(8 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Robbie Moore)
Today, the Government will publish their third annual rural proofing report on www.gov.uk. The report, titled “Delivering Rural Opportunity” examines the progress made in addressing the specific needs of rural communities and businesses.
In June 2023, the Department for Environment published “Unleashing Rural Opportunity”, a comprehensive plan comprising 25 key actions aimed at supporting a thriving rural England. This year’s rural proofing report will reflect on the progress made in delivering these commitments within the four priority areas outlined below.
Growing the rural economy will unlock the countryside’s rich human and natural capital, providing skills, jobs and opportunities to local communities. Since the publication of the URO, many commitments have already been achieved. In December 2023, as promised in the report, the smaller abattoir fund was launched, providing £4 million to boost competition and sustainability in the sector. Planning processes were reviewed in the consultation on permitted development rights and a Government response will be made in due course. DEFRA has also streamlined customer interactions with DEFRA’s agencies, and the services they offer, to make it easier for rural communities to engage with them.
Improving connectivity will expand the possibilities for rural businesses to grow and the opportunities that people in rural areas have. The Government committed to delivering the shared rural network, which has increased 4G coverage across Great Britain to 93%. Project Gigabit continues to make good progress, with gigabit coverage in England rising by 1.5% since September 2023. The rural connectivity accelerator, which will provide £7.3 million to test new ways to provide access to fast, reliable connectivity in remote areas for the first time by bringing together satellite, wireless and fixed-line internet connectivity is currently in the discovery phase. The Government also wants to improve connectivity between communities through improving public transport. In October, the Department of Transport published “Future of Transport”, highlighting how innovation in transport technologies and services has the potential to enhance rural transport and support a higher quality of life for people in rural areas.
It is also important that we build homes in rural areas where communities want them and provide those homes with affordable energy. That is why the commitment to include a rural exception site policy in the new national planning policy framework, published in December 2023, is so important. The “Connections Action Plan” outlines how the Government plan for transmission connection dates for viable, net zero-aligned projects to be on average no more than six months beyond the date requested by the customer, and the Government consulted last year on providing community benefits for those near transmission infrastructure. That consultation has closed, and guidance will be provided this year. Improving energy efficiency is also key to reducing costs in rural areas, and under the home upgrade grant 64% of measures installed by the scheme have been delivered by local authorities classified as rural. The second phase of the grant has allocated up to £378 million in grants ringfenced for rural local authorities.
The Government continue to support thriving rural communities. In January, it was confirmed that the rural services delivery grant will see its largest cash increase since 2018-19, and the second successive year of above inflation increases, to ensure that local authorities can deliver needs that are typically more expensive in rural areas. In February 2024, the platinum jubilee village halls fund began offering grants from £2,000 to £5,000, fulfilling our commitment in unleashing rural opportunity to make the fund accessible to smaller scale projects. The Government have also committed to preventing rural communities from becoming littered with illegal waste, laying regulations in January 2024 to ringfence the use of income from litter and fly-tipping penalties, which councils keep, for enforcement and clean up only. The regulations are due to come into force on 1 April 2024, and funding councils across the country to directly intervene at fly-tipping hotspots.
The rural proofing report goes into detail about how these commitments were achieved, and how close we are to completion of other promises. The report also examines other commitments made in recent years.
[HCWS353]
British Council Annual Report and Accounts 2022-23
(8 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs (David Rutley)
The British Council is the UK’s international organisation for cultural relations and educational opportunities. It supports peace and prosperity by building connections, understanding and trust between people in the UK and countries worldwide. It does this by uniquely combining the UK’s deep expertise in arts and culture, education and the English language, its global presence and relationships in over 100 countries and its unparalleled access to young people and influencers around the world.
In 2022-23 the British Council received £165 million grant-in-aid from the FCDO.
With a total reach of 600 million people in 2022-23, the British Council creates mutually beneficial relationships between the people of all four nations of the UK and other countries. Such connections, based on an understanding of each other’s strengths and shared values, build an enduring trust. This helps strengthen the UK’s global reputation and influence, encouraging people from around the world to visit, study, trade and make alliances with the UK.
Copies of the British Council’s annual report and accounts for the 2022-23 financial year have been placed in the Library of both Houses. The annual report can also be found at the British Council’s website:
www.britishcouncil.org/about-us/how-we-work/corporate-reports
[HCWS352]
WHO Framework Convention on Tobacco Control
(8 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Health and Social Care (Dame Andrea Leadsom)
Between 5 and 10 February, the Deputy Chief Medical Officer (DCMO) led the UK delegation at the 10th conference of the parties (COP10) of the World Health Organisation (WHO) framework convention on tobacco control (FCTC) held in Panama City, Panama.
International leadership on tobacco control
This was an opportunity to showcase our international leadership on tobacco control following the Prime Minister’s smoke-free generation announcement, which has the potential to be one of the most significant health policies in a generation. The DCMO made a key intervention to confirm that we will shortly be introducing legislation to:
Create the first smoke-free generation, so that children turning 15 this year or younger can never legally be sold tobacco;
Further crack down on youth vaping by providing powers to restrict flavours, point of sale and packaging for vapes and other consumer nicotine products; and
Ban the sale and supply of disposable vapes.
During the conference, the DCMO also clarified the UK’s position on heated tobacco products. She confirmed that the health advice is clear: we do not recommend their use and the Government encourage users to quit all forms of tobacco. There is no safe level of tobacco consumption, and all tobacco products are harmful. There is also clear evidence of toxicity from heated tobacco in laboratory studies. The aerosol generated by heated tobacco also contains carcinogens, and there will be a risk to the health of anyone using these products. In the UK, heated tobacco products are regulated as a tobacco product and are covered by our strict tobacco advertising and promotions ban—and they will be included in the new smoke-free generation policy.
Outcomes of COP10
COP10 committed to protect the environment from the harms of tobacco and to address cross-border tobacco advertising. COP10 also adopted decisions related to the promotion of human rights through the WHO FCTC.
COP10 also adopted the Panama declaration, which highlights the significant conflict between the tobacco industry’s interests and the interests of public health. The declaration stresses the need for policy coherence within Governments to comply with the requirements of article 5.3 of the WHO FCTC, which aims to protect public health policies from commercial and other vested interests of the tobacco industry. At the conference, the delegation made clear the UK’s commitment to this article.
The COP has been a helpful way of keeping strong tobacco controls at the top of the global health agenda. It is also a very useful forum for sharing best practice. As a world leader in tobacco control, the UK remains committed to seeing the FCTC implemented worldwide. At the same time, we are clear that the UK’s sovereignty is of paramount importance, and we will continue to take policy decisions that serve the UK’s national interests.
[HCWS349]
London Housing Delivery
(8 months, 1 week ago)
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The Secretary of State for Levelling Up, Housing and Communities (Michael Gove)
Today, I am using my powers in the Greater London Authority Act 1999 to direct the Mayor to review the London plan. I have also announced planning support to boost housing delivery in the capital.
On 12 February, I set out changes Government are consulting on making in national policy to unlock more brownfield development, alongside a number of other major interventions in London. I am confident these reforms will help reverse the chronic under-delivery that has occurred in London, but they will not on their own be sufficient to provide the homes that London desperately needs.
The Greater London Authority is consistently underdelivering on housing: to tackle the backlog of housing delivery and meet the targets set out within the London plan, the rate of delivery would need to increase from an average of 37,200 to more than 62,300 homes per year. The Greater London Authority’s data also shows a steep reduction in the number of residential units being approved between 2018-19 and 2022-23. I have repeatedly warned the Greater London Authority that its London plan, which sets out how and where homes will be built, is holding back housebuilding due to its complexity.
That is why I am using powers under section 340 of the Greater London Authority Act 1999 to direct a review of the policies specified below in the London plan that I fear are holding delivery back and require urgent action.
Industrial Land
The Mayor reported last year that there is an estimated 6,800 hectares of land in industrial use in London and 736 hectares of land in industrial and related uses in the planning pipeline that could potentially change to non-industrial use. Keeping our capital running of course requires the right industrial land in the right places, supporting and servicing residents and businesses across the city—and some of these activities need to take place within London. Stakeholders have, however, told us that the Mayor’s policies on designation are too inflexible, which in effect is discouraging developers from bringing forward other measures such as industrial intensification, co-location and substitution—all of which could enable additional residential development without compromising the capital’s industrial needs. To illustrate, every 1% of SIL/LSIS land released for housing could have a capacity for 5,000 new homes for London if we assume 80% of each plot is developable with a density of 150 homes per hectare.
I am therefore directing the Mayor to review whether policies E4—land for industry, logistics and services to support London’s economic function, E5—strategic industrial locations, E6—locally significant industrial sites, and E7—industrial intensification, co-location and substitution—remain fit for purpose, and are making the most efficient use of land in light of London’s acute housing needs. This should include consideration of the opportunities to strengthen support for increased delivery of housing on industrial land, particularly in areas well-served by public transport.
Opportunity areas
The Mayor identified 47 opportunity areas in the London plan, which he deemed as having the potential to each deliver at least 2,500 homes or 5,000 new jobs, or a combination of the two. While there is clear merit in focusing effort on those areas with the greatest potential, too many have made almost no progress and others appear to have plateaued. This suggests that the opportunity areas policy (SD1) is not doing enough to unlock growth and regeneration potential in all these areas, with some areas having made almost no progress. The 2017 strategic housing land availability assessment (SHLAA) stated that there was the potential for over 460,000 homes to be built by 2041 in opportunity areas, but at the current annual rate of completions of 13,275 in 2022-2023 this target will be missed—unless delivery is significantly ramped up in later years. I am therefore directing a review of how this policy can be amended to maximise the scale of ambition and accelerate housing delivery, particularly in areas such as Euston, which are well connected and hold the potential for thousands of homes. The review of SD1 should also consider whether the current list of opportunity areas is correctly targeted, how other policies in the plan that constrain capacity or delivery might be appropriately adjusted where they are applied in opportunity areas, and whether there is a role for a single planning framework to accelerate housing.
Planning S uper S quad
In London, we want to ensure that our capital has the housing it needs. Today, I can confirm that following discussions with Greenwich and Newham, I am prioritising these boroughs for assistance from my Department’s new planning super squad. This team, which will comprise leading planners and specialists whose talents will be used to unblock major developments, will provide Greenwich and Newham with £500,000 worth of specialist support in 2024-25, helping to unlock over 7,000 homes.
Recognising that more needs to be done to enable boroughs across the capital to overcome specific issues that are holding back delivery, I have also asked the super squad to focus some of its early efforts on working strategically across London on complex blocked sites and strategic issues.
[HCWS351]
Motoring Improvement Measures
(8 months, 1 week ago)
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The Secretary of State for Transport (Mr Mark Harper)
In October 2023, this Government announced “The plan for drivers”, setting out 30 measures that will improve the experience of driving by: smoother journeys; stopping unfair enforcement; easier parking; cracking down on inconsiderate driving; and helping the transition to zero-emission driving. We continue to implement these measures, taking action to ensure that drivers are treated fairly. Today we are publishing the latest series of guidance, consultation and research findings, which will help motorists and other road users to benefit from smoother journeys and reduced congestion, with local people getting a stronger voice on road schemes that affect them, thanks to:
New guidance on low-traffic neighbourhoods—following the recent LTN review, this sets out the requirements on local authorities, including particularly that, via engagement and consultations, an authority should be confident that a scheme is capable of carrying the support of a majority of the community before introducing it;
The 20 mph speed limit guidance—strengthened guidance restricting 20 mph limits to where they are sensible and appropriate, not on all roads indiscriminately, and with safety and local support at the heart of the decision. Other factors we would expect traffic authorities to consider include journey time, the needs of all road users, and impacts on the local economy;
A call for evidence on restricting a local authority’s ability to profit from enforcing traffic restrictions—seeking evidence on the way local authorities carry out enforcement and how any surpluses generated should be used;
Bus lane guidance—ensuring they operate only when it makes sense, for example when traffic is heavy enough to delay buses;
Consultation on allowing motorcycles to use bus lanes by default—so journeys are quicker for those who choose two wheels, a further initiative to reduce congestion and speed up journey times;
Lane rental schemes guidance—making it easier for councils to charge utility companies that slow drivers when conducting street works, and allowing the funds generated to be used to repair potholes;
The £50 million investment to upgrade traffic signals— £30 million to replace outdated equipment, and £20 million to reduce poor traffic light performance through innovative technology that responds to live traffic conditions, for 80 local highway authorities across England to improve journey times and reduce congestion caused by red lights;
Consultation on removing the right of uninsured drivers to claim compensation for property damage—a matter of fairness for law-abiding road users and something that we can now do having left the European Union; and
Noise camera research—showing local authorities the success of this technology to secure evidence to prosecute those who have illegally modified their vehicle’s exhaust.
These measures demonstrate our intent that drivers should be treated fairly, and that the wishes of local people should be taken into account when decisions on traffic management are considered by local authorities. Further action on these measures and others in “The plan for drivers” will be announced later this year.
[HCWS350]
Grand Committee
Arrangement of Business
The Deputy Chairman of Committees (Baroness Fookes) (Con)
My Lords, I am obliged to point out that if there is a Division in the Chamber, we will have to adjourn immediately and resume after 10 minutes. It seems highly unlikely to me.
Terrorism Act 2000 (Code of Practice for Authorised Officers) Order 2024
Lord Gascoigne
That the Grand Committee do consider the Terrorism Act 2000 (Code of Practice for Authorised Officers) Order 2024.
Relevant document: 12th Report from the Secondary Legislation Scrutiny Committee
Lord Gascoigne (Con)
My Lords, in addition to the draft Terrorism Act 2000 (Code of Practice for Authorised Officers) Order 2024, I shall speak to the following three draft statutory instruments: the Proceeds of Crime Act 2002 (Search, Recovery of Cryptoassets and Investigations: Codes of Practice) Regulations 2024; the Proceeds of Crime Act 2002 (Investigative Powers of Prosecutors: Code of Practice) Order 2024; and the Proceeds of Crime Act 2002 and Terrorism Act 2000 (Certain Information Orders: Code of Practice) Regulations 2024.
Before I address the contents of these SIs, I will give some background. The Government are firmly committed to tackling all forms of economic crime. We already undertook unprecedented action to prevent kleptocrats and organised criminals abusing our open economy when we expedited the passage of the economic crime Act through Parliament in 2022. The Home Office measures in that Act reformed the unexplained wealth orders regime to improve transparency of ownership structures and to allow more time for law enforcement to review material relating to unexplained wealth orders.
Building on that Act, the Economic Crime and Corporate Transparency Act 2023 contains a wide range of reforms both to the Proceeds of Crime Act 2002 and to terrorist financing legislation through the Anti-terrorism, Crime and Security Act 2001 and the Terrorism Act 2000. These reforms include: powers to allow the effective seizure of both criminal and terrorist crypto assets; reforms to enable targeted information sharing to tackle money laundering and remove reporting burdens on businesses; new intelligence gathering powers for law enforcement; and provisions to reform outdated criminal corporate liability laws.
The reforms to the unexplained wealth orders regime and corporate liability laws and reforms to enable targeted information sharing and reduce reporting burdens are already in force. The new offence of failure to prevent fraud will be brought into force once government guidance has been published and businesses have familiarised themselves with it. We intend to publish the guidance shortly. Most of the remaining Home Office measures will be commenced on 26 April 2024.
Today, we will debate the statutory instruments that underpin the codes of practice for those measures. Therefore, with respect, I do not intend to cover the powers themselves, as they were debated extensively in both Houses during the passage of the Act.
Four draft affirmative instruments, including one laid by the Attorney-General’s Office, are required to update six codes of practice. Four existing codes of practice are being revised and two new ones are being made. This includes a search, seizure and detention of property code, issued by the Home Secretary to guide the exercise of search and seizure powers in the context of criminal confiscation investigations for officers operating in England and Wales. It also includes two codes to guide the exercise of search and seizure powers. One is issued under the Proceeds of Crime Act 2002 and the other is issued under the Terrorism Act 2000, in relation to powers in the Anti-terrorism, Crime and Security Act 2001. These codes are to guide law enforcement in the use of these powers for civil forfeiture and counterterrorism investigations. These codes are also issued by the Home Secretary. It also includes two codes to guide the exercise of powers to investigate suspected criminal property. One code is issued by the Home Secretary and an equivalent code for prosecutors is issued by the Attorney-General for England and Wales and the Advocate-General for Northern Ireland. The final code being introduced by these draft instruments is a new code to guide National Crime Agency officers on the appropriate use of new information order powers. This code is issued by the Home Secretary under both the Proceeds of Crime Act 2002 and the Terrorism Act 2000.
The codes clarify the circumstances in which the powers may be exercised to ensure that they are applied consistently. This is of vital importance given the broad range of law enforcement agencies to which the powers apply. The use of the powers in these codes of practice may impact upon individuals’ rights and should therefore be proportionate to the outcome sought. Guidance on the exercise of the powers in these codes is required to safeguard against improper use.
The Proceeds of Crime Act 2002 and the Terrorism Act 2000 mandate that the Secretary of State must publish a draft code, consider any representations made and modify the draft in the light of such representations, prior to laying revised codes. The draft codes we are debating were therefore subject to separate public consultations. Information on the consultations can be found in the Explanatory Memoranda that accompany these statutory instruments.
In conclusion, these four draft instruments are required to deliver on the Government’s objective to complete commencement of the 2022 and 2023 Acts. This will ensure that all necessary legislation is in place and that there is legal certainty for the judiciary, respondents and the legal profession as to how cases will be dealt with before the courts. I beg to move.
Lord Coaker (Lab)
My Lords, I thank the noble Lord for his helpful introduction to these detailed and important SIs. He is right to highlight the importance of tackling economic crime, which is something that we all believe we could and should be doing more about.
The four SIs that we are discussing this afternoon follow on from the Economic Crime and Corporate Transparency Act and the previous Act, the Economic Crime (Transparency and Enforcement) Act. As the noble Lord pointed out, there are six new or revised codes of practice on how various authorities use their powers when tackling money laundering and terrorist financing. Consultation on these changes took place last summer. I have a number of questions, which I hope the noble Lord can answer for us.
Given that the consultation on these changes took place last summer, why is it only now that the changes are being implemented, some nine months later? Given that, for some of these instruments, the consultation took place before the Economic Crime and Corporate Transparency Act was passed, will further changes be required?
The Economic Crime (Transparency and Enforcement) Act, which gained Royal Assent over two years ago, and the Economic Crime and Corporate Transparency Act left a significant number of changes to be made through secondary legislation. The noble Lord may have mentioned this, but what is the timetable for implementing all these various changes? There were many provisions in the primary legislation that referred to secondary legislation that would be forthcoming in due course, but what does that actually mean? When can we expect all of that, given—and the noble Lord talked about the importance of tackling economic crime—we need the supporting secondary legislation to be passed as soon as possible?
The Economic Crime and Corporate Transparency Act spans several departments. How is the Home Office working with other departments, such as the Department for Business and Trade, to bring about the effective implementation of these changes?
Can the noble Lord outline for us what assessment will be made of how the Government believe these two Acts are working in practice, and what further steps, if any, need to be taken to combat economic crime?
In reading the various codes of practice, I noticed that they refer to different law enforcement agencies. How is their activity to be co-ordinated? We have the National Crime Agency, the City of London Police as the lead for economic crime, and then we have the individual police forces. How will all that work be co-ordinated, so that it is as effective as we would all want it to be?
The Minister mentioned the impact that we hope to have on Russia-related economic crime, but what else needs to be done, given the impact that we hope economic sanctions have on Russia, particularly with respect to the conflict in Ukraine?
When I raised the issue of enforcement in respect of economic crime, I should have asked what the Government are doing to monitor the effectiveness of the Act. Have they ensured that the consultation outcomes are easily accessible from the consultation web page, as recommended by the Secondary Legislation Scrutiny Committee? I did not find it the easiest consultation response to access, and clearly the Secondary Legislation Scrutiny Committee also had some trouble, so can the Minister say anything more about that?
Is there any oversight of the use of these powers? I understand that, with respect to the terrorism codes of practice, it is presumably the Independent Reviewer of Terrorism Legislation. Can the Minister confirm that and say whether there is any other oversight of these particular powers?
Can the Minister explain the differences in the proceeds of crime statutory instruments and their different application to the nations of the UK? The Minister will know that that is a favourite topic of mine, but I am not trying to be awkward. Clearly, for the territorial extent of the terrorism codes of practice before us, that is relatively easy because the application of those powers is UK-wide. But, on the other territorial application, some parts of the statutory instrument related to England and Wales, while other parts related to England, Wales and Northern Ireland. Can the Minister give a general explanation for all that, particularly, as always, with respect to Scotland? If it is devolved and a matter for the Scottish Government—I suspect that will be the Minister’s answer—how will we ensure that the work that Scottish law enforcement does with the other law enforcement bodies across the rest of the UK has the co-ordinated effectiveness that we want?
We of course support the moves that the Government are making. We all believe that economic crime needs to be more effectively tackled, which is why we supported the various provisions contained in the primary legislation. I look forward to the Minister’s responses to my questions because, as I say, we want this to be effective and we want economic crime to be tackled in a better way than perhaps it is presently.
Lord Gascoigne (Con)
My Lords, I am grateful to the noble Lord, Lord Coaker, for his support. Although it is literally a debate between him and me, he obviously made a good, thoughtful and insightful contribution, as expected. I do not wish to go back through the points I made in my opening, but I will seek to address a number of the noble Lord’s questions. I am afraid I do not have answers to some of them at this moment, but I will answer as many as I can, although I will not be able to do justice to a number of them. I assure the noble Lord that I will write to him on those. I will address his questions in no particular order.
On the timing from when the Act received Royal Assent through to this stage, the noble Lord will know that, in this case, the consultation had to be carried out on the codes, and consideration had to be given before the codes could be finalised and laid before the House.
Lord Coaker (Lab)
That is very helpful. I am talking about the proceeds of crime oversight SI, as I assume that the terrorism SIs will have the normal oversight of the terrorism independent reviewer.
Lord Coaker (Lab)
The point about Russia is also quite important, for obvious reasons; I would appreciate it if the noble Lord could look into that and see what impact the Government think this may have on the sanctions that we are trying to impose on Russia.
Lord Gascoigne (Con)
I thank the noble Lord and give him that undertaking.
I am very grateful for the noble Lord’s comments and thank the Committee for considering these instruments, which are necessary to deliver the Government’s objective to complete commencement of the Economic Crime (Transparency and Enforcement) Act 2022 and the Economic Crime and Corporate Transparency Act 2023. I beg to move.
Proceeds of Crime Act 2002 (Search, Recovery of Cryptoassets and Investigations: Codes of Practice) Regulations 2024
Lord Gascoigne
That the Grand Committee do consider the Proceeds of Crime Act 2002 (Search, Recovery of Cryptoassets and Investigations: Codes of Practice) Regulations 2024.
Relevant document: 12th Report from the Secondary Legislation Scrutiny Committee
Proceeds of Crime Act 2002 (Investigative Powers of Prosecutors: Code of Practice) Order 2024
Lord Gascoigne
That the Grand Committee do consider the Proceeds of Crime Act 2002 (Investigative Powers of Prosecutors: Code of Practice) Order 2024.
Relevant document: 12th Report from the Secondary Legislation Scrutiny Committee
Proceeds of Crime Act 2002 and Terrorism Act 2000 (Certain Information Orders: Code of Practice) Regulations 2024
Lord Gascoigne
That the Grand Committee do consider the Proceeds of Crime Act 2002 and Terrorism Act 2000 (Certain Information Orders: Code of Practice) Regulations 2024.
Relevant documents: 12th Report from the Secondary Legislation Scrutiny Committee
South Yorkshire Mayoral Combined Authority (Election of Mayor and Transfer of Police and Crime Commissioner Functions) Order 2024
Lord Gascoigne
That the Grand Committee do consider the South Yorkshire Mayoral Combined Authority (Election of Mayor and Transfer of Police and Crime Commissioner Functions) Order 2024 Consideration in Grand Committee.
Relevant document: 15th Report from the Secondary Legislation Scrutiny Committee, special attention drawn to the instrument
Lord Gascoigne (Con)
My Lords, this order was laid before the House on 7 February. If approved by both Houses, it will transfer police and crime commissioner functions from the South Yorkshire PCC to the Mayor of South Yorkshire. It will also bring forward the next scheduled mayoral election in South Yorkshire from 2026 to May 2024, thereafter taking place every four years, so that the South Yorkshire mayoral election cycle is aligned to the existing PCC election cycle. We are grateful to the incumbent mayor, Oliver Coppard, for providing his consent to the transfer and to the amendment of his current mayoral electoral term to enable this alignment.
This first mayor to exercise PCC functions in South Yorkshire would do so following the next mayoral election, which is to be rescheduled for Thursday 2 May 2024. This maintains the direct democratic accountability for policing and crime in South Yorkshire, as the mayor will be elected by the people of South Yorkshire on the basis that they are to exercise the functions of the PCC in that area. The incumbent PCC for South Yorkshire will continue to exercise the PCC functions until the end of his elected term of office. The person elected as mayor, from the point of taking office on Tuesday 7 May following the mayoral election, will act as the single, directly elected individual responsible for holding the chief constable and police force to account. They will be accountable to the people of South Yorkshire for this.
Their functions would include issuing a police and crime plan; setting the police budget, including the PCC council tax precept requirements; appointing and, if necessary, suspending or dismissing the chief constable; addressing complaints about policing services; providing and commissioning services for victims and vulnerable people; and working in partnership to ensure that the local criminal justice system is effective and efficient.
Part 1 of the Government’s review into the role of PCCs cemented the Government’s view that bringing public safety functions together under the leadership of a combined authority mayor has the potential to offer wider levers and a more joined-up approach to preventing crime. The Government’s levelling up White Paper, published in February 2022, sets out the Government’s aspiration to have combined authority mayors take on the PCC role where feasible. By working in partnership across a range of agencies at local and national level, mayors can ensure that there is a more holistic, unified approach to public safety.
As is required by Section 113 of the Local Democracy, Economic Development and Construction Act 2009, the Home Secretary launched a public consultation on the proposed South Yorkshire police and crime commissioner functions transfer on 20 December 2023; it ran for six weeks to 31 January. Just over 3,000 responses were received to this public consultation and the Home Secretary considered the views gathered when deciding whether to lay this order enabling the transfer of PCC functions to the Mayor of South Yorkshire.
It is this Government’s view that incorporating PCC functions into the role of the Mayor of South Yorkshire, who is elected to deliver across a range of other functions, will bolster their mandate to bring greater join-up across the responsibilities that they are accountable for and help to facilitate a whole-system approach to crime reduction. It preserves the democratic accountability that underpins the PCC model while, at the same time, reducing the risk of competing democratic mandates within the South Yorkshire Mayoral Combined Authority area, providing greater clarity for the electorate on who is responsible for public service functions in their area.
The exercise of PCC functions by the Mayor of South Yorkshire is a significant step towards realising our ambition for more combined authority mayors to take on PCC functions, as is already the case in Greater Manchester and West Yorkshire. It means that people in South Yorkshire will be served by a mayor with a range of functions and levers comparable to the Mayors of Greater Manchester, West Yorkshire and London, and will be able to hold their mayor to account for this enhanced range of responsibilities. I beg to move.
Lord Coaker (Lab)
My Lords, I thank the Minister for the careful way in which he outlined the case and reasons for the order before us, on the South Yorkshire Mayoral Combined Authority. He will know that, the other day, concerns were raised with respect to the West Midlands—that will follow its course, notwithstanding the judicial review of it—but this order refers to South Yorkshire, which is a totally different situation. We support the Government’s proposition here for the reasons that the Minister outlined.
I do not have much to add to what the Minister said. I just want to ask him this: what steps do the Government propose to take in order to inform the people of South Yorkshire of the proposed changes and the reasons for them? Also, can the Minister explain to us the Government’s view on the discussions they intend to have with the various local authorities in South Yorkshire, Members of Parliament and other local representatives? For these sorts of changes, we make the decision here—in this case, we support what the Government are doing—but it is of course important for us to consider how we both take it forward and explain, to local residents as much as anybody else, what we are doing.
With those brief comments, I have nothing further to add to the important points that the Minister made.
Lord Gascoigne (Con)
Yet again, as ever, I am grateful to the noble Lord, Lord Coaker, for his comments and his support in this. He is absolutely right to mention the debate on the West Midlands the other day; I am personally glad that this debate has not been as excitable as that one.
I want to try briefly to run through a few things. One thing that I want to set out concerns the public consultation; it relates specifically to the noble Lord’s question on what engagement has been done and some of the local views that were expressed.
Lord Coaker (Lab)
It is very helpful to hear that the mayor, the PCC and the local MPs were in favour of this. That is an important consideration for us all. My other point was that, while it is obviously important for the Government to work with MPs, the mayor and the PCC, they should also continue to inform the public about the different changes that are made. Obviously, this is quite a big change in their area, and it would be helpful for the Government to work with local representatives and support them in making sure that the public are fully informed about and aware of the changes and the reasons for them.
Lord Gascoigne (Con)
Yes. To clarify one point, MPs were engaged in and aware of the consultation, but that does not mean that all of them supported it, as I am sure the noble Lord is aware. However, they were certainly aware of it. The point I was making earlier is that the mayor and the PCC were both in support of it.
Lord Coaker (Lab)
I accept that. The mayor and the PCC were in favour and all the local MPs were consulted; that is right. The point I am making is that the Government have taken the decision they have. We support that decision, but I ask them to consider how they will work with the mayor, the PCC and all those MPs, whatever view they took, in taking this proposal forward, if it is passed by Parliament. I also ask them to consider how they will work with all those representatives to make sure that the public are fully informed about the changes and why they are happening.
Lord Gascoigne (Con)
The noble Lord is absolutely right. There is also a read-through to the next SI; there is a constant lesson to be learned in terms of what engagement is done. Obviously, it is very good that there is significant local support for this, but there is certainly a lesson for us always to be aware of the need for public buy-in for any changes that we make. As I tried to say, part of the mission here is to ensure that the electorate are always kept in mind; that they are involved; that there is accountability in terms of the public services that they want; and that they have the chance to vote for whoever their representatives will be.
I am more than happy to take this away and write to the noble Lord, but hopefully that clarified some of his points. I am grateful yet again for the noble Lord’s comments and support. With that, I beg to move.
North East Mayoral Combined Authority (Establishment and Functions) Order 2024
(8 months, 1 week ago)
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Baroness Scott of Bybrook
That the Grand Committee do consider the North East Mayoral Combined Authority (Establishment and Functions) Order 2024.
The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Scott of Bybrook) (Con)
My Lords, with the agreement of the Committee and its Chairman, I would like to say a few words in tribute to Paul Rowsell, who was head of the governance reform and democracy unit within DLUHC. He died suddenly on Thursday on his way to work at the age of 71. Paul had worked as the head of that unit since it was formed in 2011. Before that, he had dealt with all things to do with local authority governance since the 1990s.
Paul and I worked together on a weekly basis in the early 2000s on the Wiltshire unitary bid; he became a good friend of mine, and I hope I became a good friend of his. I will miss him terribly—including his not sitting behind me today. Paul was a wonderful public servant and he will be very sorely missed, not just by his colleagues in DLUHC but by the many people in local government whom he met and supported over the years. May Paul rest in peace.
Baroness Taylor of Stevenage (Lab)
With permission, I would like to respond to that tribute. I have been in local government for nearly 30 years now, and I knew Mr Rowsell for most of that time. He was a formidable public servant, as the noble Baroness, Lady Scott, said. He was one of the great experts on local government finance—there are not many of those. Paul probably knew more about local government finance than anybody else in the country. I remember the trepidation that you would feel—I was a deputy leader of the LGA for many years—when you went into a meeting with him because you knew, however good your arguments were and however well you had been briefed by the LGA, he would pick it apart in five minutes and decimate your argument.
In spite of his tough approach to those of us who came up against him in meetings, he was very much a trusted member of the team in DLUHC and its predecessor departments—it has had many names over the years. I first encountered him way back when we were working on some of the “best value” initiatives. He was trusted, effective, incredibly knowledgeable and a consummate professional. His public service to this country in the local government department—that is what I will call it—was exemplary. I hope that he will rest in peace and that, for those who knew him personally, his memory will be a blessing. I thank him from our side of the Committee for his wonderful service to local government.
Lord Shipley (LD)
My Lords, it is deeply sad news to learn of Paul Rowsell’s death. I think back to the advice that he gave me during the passage of the Localism Act in the period of the coalition Government from 2010 to 2015. He had the ability to listen, to explain and to stay very polite, even if I was completely wrong on the issue. He had the ability to make things clear so that the understanding of those of us who were dealing with legislation was improved. It is a sad day for local government. He will be sorely missed. I appreciated his presence as part of the Bill team so many times. You knew that if Paul was leading a team, the work had been done and was of an enormously high, professional standard. It is with deep regret that we say that we will miss Paul profoundly.
Baroness Scott of Bybrook (Con)
My Lords, the purpose of this order is to implement the devolution deal agreed between the Government and seven councils across the north-east—County Durham, Gateshead, Newcastle upon Tyne, North Tyneside, Northumberland, South Tyneside and Sunderland—on 28 December 2022.
We have been working closely with these seven councils. On 2 February 2024, they consented to the making of the order. The institutions that are to be abolished by the order—the two existing combined authorities and the North of Tyne Mayor—consented to the making of this order, which also provides the foundation for the deeper devolution deal for the north-east that we announced in the Budget on 6 March 2024. This trailblazing deal deepens and extends the devolution settlement in the north-east and provides new tools for the future mayor and local leaders to drive regional economic growth.
The order provides for the establishment on 7 May 2024 of the north-east mayoral combined authority, comprising as constituent councils the seven north-east councils. It simultaneously abolishes the existing North East Combined Authority and the North of Tyne Combined Authority, together with the office of Mayor for the North of Tyne. It provides for a new mayor for the whole of the north-east to be elected by local government electors across the area of the seven constituent councils with the first election to take place on 2 May 2024.
That elected mayor will take up office on 7 May with a four-year term ending after the next mayoral election in May 2028. Thereafter, there will be elections every fourth year to be held on the ordinary election day for that year—that is, the first Thursday in May. Following the enactment of the Elections Act 2022, the mayoral election will use the first past the post voting system.
Baroness Quin (Lab)
My Lords, I welcome the opportunity to speak in this debate. I welcome this order, although it is very sad that it coincides with the death of Paul Rowsell, to whom tribute has rightly been paid across all sides of the Committee.
This is an important step for the north-east. I represented a north-eastern constituency in the other place for many years and was always conscious that, while each of us spoke up for our constituents, there was a need for an overall voice to articulate the needs of the north-east and be heard at a national level in all our political and economic institutions. In many ways, the fact that this gives a voice to such a large part of the north-east is almost as important as the various powers that the Minister rightly outlined.
Lord Beith (LD)
My Lords, it is a pleasure to follow the noble Baroness, resident as she is of the constituency I used to represent. She is a tireless supporter of the north-east. I particularly endorse her point that the creative industry and cultural work have a very important place in the economic successes of the region, and could much more into the future. Of course, we are both veterans of the referendum to which she referred, when the Labour Party sought to introduce a measure of devolution. In my view, it was a very underpowered one, which did not help to achieve success in the referendum. It was opposed tooth and nail by the Conservative Party, so it is a slightly strange experience to be discussing a scheme of devolution put forward by the Conservative Government. This has the same problem of being underpowered in some important respects.
I tend to view this from the standpoint of the more rural and remote parts of the region, partly because of where I live, in Berwick-on-Tweed, and partly because we are so outnumbered and outvoted in the region as a whole. I tend to look at what is proposed here as, in some respects, an enlargement of local government or a more distant local government, which we have already seen with the amalgamation of authorities—things are decided far away, not locally to us, and dominated by an urban area that is 60 miles away and obviously far more numerous in population. In fact, many parts of the area we are discussing today are 120 miles from where I live.
When we look at functions, we must see that there are dangers and limitations in what is proposed in this order. For example, if you take transport, which the Minister rightly referred to, there are quite a lot of things that cannot be done under this order. The continuing failure to deal with the A1—a subject of constant promises and abandonment of promises by successive Governments—is outside the remit of the authorities created by the order. The slashing of train services from Berwick—I have just come directly from a meeting with a Minister about the halving of train services from Berwick-on-Tweed—will be outside the remit of the bodies we are discussing in this order. There is more scope for the provisions in the order to be used for the problems of operating rural bus services, but I am worried that they will be outnumbered by the need to deal with the urban bus problems.
The Minister made reference to skills and adult education, and she said this was tailored to the needs of the area. Well, there is no college of further or adult education in north Northumberland at all, and those who seek further or adult education find themselves involved in 50-mile or 60-mile journeys each way, if they are able to persevere with getting the qualifications they need for their work. All we have is one or two outstations of a college 50 miles away, dealing with hairdressing, the construction industry and one or two other things like that. But the absence of any centralised institution that is even partly centred locally seriously limits people becoming equipped to do jobs or change jobs, which is one of the functions that adult education seeks to meet.
Clearly, I hope that this new authority will address these and other concerns, but I fear that it does not have the resources to do that. The figures the Minister produced sound very good until you work out over how many years they are to be spent, and recognise that the cost of a small piece of new road soon eats up a large part of the sort of figure she cited.
I worry that we will be constantly outnumbered and outvoted when rural and remote area needs are considered. I worry that this is a concentration of power in one person. I supported a regional assembly, and I would have supported a trimmed-down regional assembly on a slightly smaller scale if it had the powers. With the powers, I will accept almost any system that is genuinely democratic. But I am worried by a heavy concentration of power in one person, who is elected because of legislation we have already passed by the first-past-the-post system, which again limits the influence of the remoter and minority areas. I have hopes for what will be done, but I have anxieties about some of the problems inherent in what we are agreeing today.
Lord Shipley (LD)
My Lords, I first welcome the comments of the noble Baroness, Lady Quin, whose experience as an MP in the region, and of living in Northumberland, have been extremely helpful to the cause of the north-east in economic development terms. I agree with a number of the comments of my noble friend Lord Beith. He said that the order is underpowered, which is true, but I think it can become more powered over time—that will need to be done. I have always shared his concern about the concentration of powers in one person, and I am also concerned by those major potential capital investment projects that are outside the remit of this mayoral combined authority, not least the A1 and trains.
As this is such a big geographical area—I think it is the biggest of any of our mayoral combined authorities—there are issues around the availability of skills training, particularly in further education, and of T-levels. One thing that it would be helpful for the Government to pursue is whether the availability of T-levels is as successful in the rural and coastal areas of this combined authority as it is in the urban areas.
That said, I congratulate the north-east mayoral combined authority on getting to this stage. Having been the leader of Newcastle City Council, a regular member of the Association of North East Councils and a board member of the regional development agency One North East for seven years, I think that this measure is a tribute to its vision, ability and willingness to work together over such a large geographical area. I see what is happening as a partial return to the status and powers that regional bodies had just a few years ago.
This is an important step for the north-east. It is particularly pleasing to see the successful all-party work that has gone into its delivery to this stage. Durham County Council has a Liberal Democrat leader; Northumberland County Council has a Conservative leader; and each of the five Tyne and Wear local authorities has a Labour leader. It helps drive public confidence and consent when the leadership across the region has such a common purpose, despite their political differences. That is because political consent is vital, as we know from recent debates on the West Midlands.
As the Minister said, this order generated more than 60% support across the north-east, which is very encouraging. That consent needs to be maintained; I hope that this new mayoral combined authority will reflect on the problems that have arisen further south, in Tees Valley. I hope that the north-east mayoral combined authority will review its procedures on scrutiny, audit and risk to ensure that they are sufficiently robust. That said, I strongly welcome this further step towards devolved powers in the north-east of England.
Baroness Taylor of Stevenage (Lab)
My Lords, I too congratulate the seven authorities involved in negotiating this deal with the Government. We are all aware of the additional challenges that, as the noble Lord, Lord Shipley, said, were present in the north-east in achieving consensus across political, geographical and demographic boundaries. Not only has that been achieved but the deal has gained trailblazer status, which will hopefully enable it to attract the high levels of funding needed to tackle the many challenges faced by the north-east.
I am grateful to my noble friend Lady Quin for bringing her great experience in the area to this debate. As she said, having a single voice for the north-east will be helpful. We on this side are committed to devolution, so we will not put any obstacles in the way of a deal that has been subjected to such thorough and intense negotiation and collaboration at local level, but that does not mean that we do not have some questions for clarification purposes. I appreciate that, as I did not submit them to the Minister in advance, it might be necessary for some of them to be answered in writing. I would be quite happy with that.
It is good to see that, in the negotiations that took place over this deal, local government put place before party; that has always been my experience and it certainly shines out from this deal. That is the real power of devolution. We recognise the potential benefits of creating this new combined authority, which will have functions to grow the whole economy of the north-east. We are hopeful that, if our outstanding candidate for the mayoral election, Kim McGuinness, is successful, she will soon be working across the areas of her seven local authorities to grow the economy for all its people and businesses.
Baroness Scott of Bybrook (Con)
My Lords, I thank all noble Lords—in particular, the noble Baroness, Lady Quin, and the noble Lord, Lord Beith—for their input into this because of their long experience of living and working in the north-east. We do not always get the voice of the area so it is lovely to hear it. I thank them very much for taking part.
As we have heard, this order is widely welcomed by the people of the north-east. It is a significant development for the whole area. Unifying two combined authorities into a single cohesive institution and uniting seven councils to build on a history of collaboration to shape the north-east as it has never been shaped before—or been given the opportunity to shape itself before—is a significant step in English devolution and in furthering this Government’s levelling-up agenda. We have heard that in the debate; I thank all noble Lords for supporting this move for the north-east.
I will address a few specifics. The noble Baroness, Lady Quin, mentioned culture, which is really important. As I said in my opening speech, Crown Works Studios is investing in Sunderland. Perhaps this will be the catalyst for culture, as well as for joining up culture across the north-east. I look forward to that investment, as I am sure the noble Baroness does. Other things are also being done. In Durham, £19.9 million from the future high streets fund has been granted to support the town’s culture, heritage and visitor economy. Things are beginning to come in for the cultural industries in that area; I wish them all well.
The noble Baronesses, Lady Quin and Lady Taylor of Stevenage, mentioned levelling up. Levelling-up funds have been made available to a number of individual councils. For example, in round 1, Durham got £20 million to improve transport connectivity, particularly between rural areas and around the areas of Bishop Auckland, and £20 million was given to the Gateshead Quays conference centre. Levelling-up funds, together with other government funds such as the town deals funding that I mentioned, show commitment to a large number of other investments coming to the north-east.
The noble Lord, Lord Beith, who knows the area so well, mentioned transport decisions. I quite understand his point that not all transport is covered, but this deal gives a very strong voice to the mayor and the mayor’s team when any other transport decisions are being made. On local funding, particularly for rural transport —having come from Wiltshire, I know all about rural transport and the issues it brings—this is an opportunity for the mayor, working with the individual councils, to plan that in a proper way that is efficient and effective for rural areas in the north-east. They may not get all the money, but there is a huge opportunity to change the transport systems. I encourage them to lobby hard on those decisions being made by others.
Lord Shipley (LD)
Before the Minister sits down, can I add one thing to her list? In relation to the mayoral development corporations, she talked in terms of scrutiny and audit and said that guidance will be issued at some point—I hope sooner rather than later. However, it is not just the question of scrutiny and audit; it is also about risk. In my view, mayoral development corporations should quite separately think about their structures for assessing risk. Scrutiny tends to come slightly after an event as opposed to alongside a decision being made. Audit normally comes significantly after, in practice. It is that management of risk in a mayoral development corporation to which I think greater attention needs to be paid.
Baroness Scott of Bybrook (Con)
I absolutely agree; I think that is the same in all local authorities, however small or large. I see that as part of the overview and scrutiny. We have used “scrutiny” too often without using the word “overview” before it. I would expect that the overview, before anything is delivered, should look at the risks of delivering.
In conclusion, this order, which is strongly supported locally, is a significant step forward for the north-east, for its businesses and its communities. It is key to the future economic development and regeneration of the area, and it will enable local leaders to effectively invest in and address local priorities. I commend the order to the Committee.
House of Lords
Introduction: Lord Banner
Introduction: Lord Jamieson
Medical Research Techniques
(8 months, 1 week ago)
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Baroness Bennett of Manor Castle
To ask His Majesty’s Government what steps they are taking to promote the use of human-specific medical research techniques, such as “organ-on-a-chip” and computer modelling, in place of animal testing.
The Parliamentary Under-Secretary of State, Department for Science, Innovation and Technology (Viscount Camrose) (Con)
The Government provide significant funding for the development of these technologies through UKRI, primarily to the National Centre for the Replacement, Reduction and Refinement of Animals in Research. We are doubling our investment in this area next year to £20 million and this summer the Government will publish a plan to accelerate the development, validation and uptake of methods to reduce reliance on the use of animals in science.
Baroness Bennett of Manor Castle (GP)
I thank the noble Lord the Minister for his Answer, but of course animal testing is not working well. Less than 6% of cancer drugs proceed past the first small phase 1 trials, and more than 99% of Alzheimer’s drugs have failed. There are some very exciting possibilities, such as the liver-on-a-chip device that correctly identified 87% of drugs that caused liver toxicity after they passed animal tests. Many other countries are racing ahead on this: the USA has passed the FDA Modernization Act, the Netherlands has a transition programme and India has new rules for drug trials. Do we not need to go much further and look towards legislative change and a much bigger injection of funds to see real progress if we are to be world-leading in the future in this biotechnology field?
Viscount Camrose (Con)
That is a wide-ranging question, and I will do my best to cover some of those points. With respect to the effectiveness of clinical trials, on the whole they cannot take place without toxicology trials and most of those, sadly, have to be done on animals. We very much welcome any technology that allows for in silico methods of assessing toxicology and it is true that more of those are emerging, but they have to be validated in order to be assumed safe and usable in clinical trials.
Lord Clement-Jones (LD)
My Lords, the Government produced a previous report on a road map for non-animal technologies from six UK government funders, including MRC, EPSRC and Innovate UK way back in 2015. How will they ensure that this new road map does not get left on the shelf again? Will DSIT set up an independent strategic advisory board with the key stakeholders to provide direction and oversight, as suggested by the RSPCA?
Viscount Camrose (Con)
DSIT continues to be led on its approach to creating non-animal methods in clinical trials, toxicology trials and so on by the UK’s NC3Rs—the National Centre for the Replacement, Refinement and Reduction of Animals in Research—for toxicology and other scientific research, and that continues. There was a decrease of 10% in animal testing from the previous year, according to our most recent records, and that will continue. DSIT meanwhile has no plans to add a new oversight executive body to those already in existence.
Lord Turnberg (Lab)
My Lords, I express an interest as a past chairman of NC3Rs. During the time I was chairman, we saw a marked reduction in the number of animals used in research, and that continues with certain types of animals, such as dogs, cats and so on. It is essential, though, for new drugs to be tested on animals and regulatory authorities rely on that. Is there anything we can do to help those authorities relax a little?
Viscount Camrose (Con)
First, let me pay tribute to the work of the NC3Rs, which is an extremely important body. Nobody feels comfortable doing a lot of animal tests; they simply are necessary for human safety in too many cases. For example, UK REACH follows the last-resort principle where, as far as possible, it is able to waive animal tests for chemicals. That kind of work will further accelerate the work of the NC3Rs.
Lord Kamall (Con)
My Lords, the noble Baroness, Lady Bennett, spoke about other countries that were looking at alternatives to animal testing. What conversations has my noble friend’s department had with other countries on how they can encourage more alternatives to animal testing?
Viscount Camrose (Con)
DSIT continues to engage on life sciences research with a wide range of other countries, including countries that have tried to accelerate further. Recently, in particular, the Netherlands and the United States have not always been able to succeed in their goals of accelerating the date by which non-animal methods of research become the only way forward. On the other hand, steady progress towards the greater use of non-animal methods through the three Rs seems to be bearing fruit, albeit not as fast as anybody would like.
Baroness Hayman of Ullock (Lab)
My Lords, we know that there is a fast-growing global market for human-specific technologies. The size of that global market in 2023 was around $2 billion, so it is huge. Does the Minister have any views on the economic potential of human-specific technologies for the UK as a leader in this field?
Viscount Camrose (Con)
Yes, indeed; the economic potential is absolutely enormous. As with any medical devices, they need to be put through proper pharma-covigilance procedures, validation and testing, to make sure that by the time we are ready for clinical trials, all the toxicology testing has been properly done. Where it is possible to find an alternative to animal testing, that should always be followed. We always aim to use the minimum number of animals for the scientific benefit to be achieved and minimise the potential harm to animals for that benefit.
Baroness Bennett of Manor Castle (GP)
My Lords, in responding to me the Minister referred to the apparent necessity of animals for toxicity tests. Of course, the case I had cited was one where liver drugs had passed animal toxicity tests and then were found to have problems with a human-specific technology. Canada has passed a Bill to phase out animal-based chemical toxicity testing and the European Commission is committed to developing a road map in that direction. As the noble Baroness on the Front Bench said, human-specific technologies have enormous potential. Will the Government look at getting an Act to provide a framework so that the UK could get ahead in this area and end toxicology testing on animals, as other countries are looking to do?
Viscount Camrose (Con)
The noble Baroness mentioned an Act—there are widespread protections under the Animals (Scientific Procedures) Act. We have the three-tier licensing system, including significant training and assessment for licensees, and a range of other safeguards. Different jurisdictions are taking a range of approaches to this; I am not aware of any jurisdiction that has yet been able to set a timeline for the absolute removal of animal tests because, sadly, they do remain critical for the development of medicines.
UK Tradeshow Programme Closure
(8 months, 1 week ago)
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Lord Leong
To ask His Majesty’s Government what recent assessment they have made of the impact of the closure of the UK Tradeshow Programme on the ability of small and medium-sized enterprises to export to new markets
The Minister of State, Department for Business and Trade (Lord Johnson of Lainston) (Con)
Although the DBT has closed the specific Tradeshow Access Programme, it still provides considerable support to small and medium enterprises to attend trade shows, ranging from training in language and culture and pitching and negotiations to networking receptions that use our embassies overseas and Meet the Buyer events.
Lord Leong (Lab)
My Lords, the Tradeshow Access Programme provided vital support to thousands of SMEs to attend international trade events. The return on investment was remarkable; then the Government closed it. Last year, UK exports were £860 billion—well short of the £1 trillion target. Does the Minister agree that we need to get out there and sell, sell, sell? Can he tell the House when the replacement programme for SMEs and their respective trade associations—the beating heart of our export economy—will be announced?
Lord Johnson of Lainston (Con)
I thank the noble Lord for his mantra of sell, sell, sell. Mine is ABC: always be closing. The DBT is doing this. It is unfair to say that we closed this programme; it was not necessarily yielding the benefits we hoped for. We must look for value for money; we have instead gone to a more targeted approach, where the UK will take a pavilion and crowd in businesses in specific instances. Recently we have been to Mobile World, led by my noble friend Lord Offord; the World Defense Show in Saudi Arabia; Bett, the education show; and the Hydrogen show in Chile. Although the Tradeshow Access Programme looked like a good idea and was very popular among certain businesses, it was not used in the way we wanted. This approach is far more effective for getting to our £1 trillion target.
The Earl of Effingham (Con)
My Lords, there are 5.5 million firms listed in Companies House, but only 9% of them currently export, which seems low, optically. What does the Minister believe is an achievable percentage to aim for and what is the Government’s strategy to reach that target?
Lord Johnson of Lainston (Con)
My noble friend is absolutely right. We have a cultural issue with companies in this great nation of ours actually deciding to export. The total is about 300,000, and we have a target of 500,000—the 500 club that was inspired by my noble friend Lord Offord. We will do this in a number of ways. The UK Export Academy is an important mechanism for teaching businesses and business leaders how to export. We have 160 international trade advisers around the country whose specific task is to hold the hands of these companies when it comes to exporting abroad. We have thousands of agents around the world, underneath our HMTCs, whose job is to help them on the ground and help them find distribution partners, most importantly. We have the Help to Grow programme, the export support service, and we now have growth hubs as well. There is more we can do, but we have made a phenomenal start and are starting to see the benefits of a very coherent action plan.
Lord Razzall (LD)
My Lords, will the Minister acknowledge that there has been a significant reduction in export sales by SMEs and small businesses since Brexit? Will he also acknowledge that, to take advantage of the limited number of trade deals that his department has managed to sign since Brexit, it is necessary to give significant help to SMEs and small businesses, if the gap is going to be closed?
Lord Johnson of Lainston (Con)
I would say two things to the noble Lord. First, exports are up over the past year by 13%—and tomorrow we have a debate on the CPTPP, which will allow this country to join an £11 trillion trading network, which will result in significant benefits to our businesses immediately and into the future.
Lord Lansley (Con)
My Lords, I remind my noble friend that, many years ago, I secured the outsourcing of the export marketing research scheme to the British Chambers of Commerce from the then department; that was very successful for over 20 years, and continues as a scheme under the department. That plus the grant support for introduction into markets provides a significant benefit to small businesses. Can my noble friend say whether he and the department are working very closely with trade associations and chambers of commerce to ensure that they are also delivery vehicles and multipliers for the work that the department is doing?
Lord Johnson of Lainston (Con)
I am very grateful to my noble friend for all the work that he has done to help exports and trade in this nation over his many years of service in this House and the other place. I draw attention to the fact that the British Business Bank also provides funding for small businesses to give them the training and skills to export, and UKEF provides billions of pounds to ensure that they have the capital to enable them to export. But my noble friend is absolutely right: we can do more with the chambers of commerce, and we have a specific group structured to enable us to have strong relationships with those organisations. On the ground, particularly in harder-to-reach markets such as China, they play an invaluable role, and I personally do everything I can to co-operate with and encourage them.
The Senior Deputy Speaker (Lord Gardiner of Kimble)
My Lords, the noble Lord, Lord Campbell-Savours, is taking part remotely. I invite the noble Lord to speak.
Lord Campbell-Savours (Lab) [V]
My Lords, with post-Covid demand for exhibition space now returning and with seed-corn start-ups reliant on new customer contact and wider market awareness, why cut or compromise this programme? Since the 1970s, we have had valuable DTI support for small business. Labour promoted it—indeed, all Governments have done so. Such programmes have helped a generation of young entrepreneurs penetrate export markets and build many of today’s successful companies. Why the restraint? Surely we should be expanding these programmes. The Minister referred to targeting, which too often leads to cuts, as we all know.
Lord Johnson of Lainston (Con)
I am always grateful to the noble Lord for the challenge but, actually, I believe that we have come to the right conclusion, which is to crowd in significant numbers of businesses to single and key focused trade shows. We provide a great deal of support beforehand, including language and culture training and skills training to make sure that these businesses are prepared. During the mission, a Minister normally accompanies the businesses to get greater penetration into the market that we are trying to sell into.
It is no good just giving a few hundred pounds to a small business to have a small trade stand in a very large trade show. What you need is to put a proper front on. Great Britain is selling its wares to the world and, by concentrating that firepower, we have far greater effect. I also believe that we have better value for money. It is worth talking to some of the businesses that have participated in these trade shows, where the feedback has been excellent. I say this without prejudice, but other countries are jealous of the extraordinary quality of the stands that we build, which project the union jack across these wonderful events.
Earl Attlee (Con)
My Lords, what are the Government doing about the problem of de-banking less popular businesses, such as defence and the oil and gas industry?
Lord Johnson of Lainston (Con)
I am not entirely sure whether that is a question for me, but the noble Earl touches on defence, and I would say that we have been doing a huge amount on defence and security exports to promote our industries. New arrangements, such as AUKUS, are also incredibly powerful in driving our exports in that area. I also draw this House’s attention to the Saudi Great Futures event, which will launch on 14 May. Over the past few days we have sent out literally thousands of invitations to businesses, and we will fly a huge quantity over to Riyadh in the middle of May to celebrate the enormous opportunities that we see in that country, working on projects such as NEOM. Across the board there is an enormous amount that we are doing. I shall have to refer the question about banking to one of my colleagues.
Lord Anderson of Swansea (Lab)
My Lords, the Minister has just said that there will be “significant benefits” to this country from the trans-Pacific partnership. How significant is “significant”? Does he recognise that the Government estimate that the benefit to our GDP will be 0.08% and the OBR believes it will be 0.04%? Should the Government not be careful not to overegg their pudding?
Lord Johnson of Lainston (Con)
Since many of our exports are going to be food and drink, I think overegging the pudding is precisely what we should be doing when it comes to encouraging our exports. The opportunities that CPTPP presents are, first, a new trade deal with Malaysia, which we do not have; far better arrangements around rules of origin, which noble Lords opposite who have been involved in motor manufacture will see the benefits from; and very important new opportunities to export our agricultural goods. CPTPP is not a single trade deal but a living agreement. We hope new members will join which are aligned to our ambitions. That will allow us to have access to even greater markets. I am very proud of this Government’s record of negotiating trade deals, but there is more to do, so I am excited about the future too.
Baroness McIntosh of Pickering (Con)
My Lords, will my noble friend thank the department for sending a representative to local businesses in North Yorkshire to sell the business advice that they give from the new hub in Darlington? How widely known is the hub, and how available are such things to give such advice?
Lord Johnson of Lainston (Con)
I thank my noble friend for that point. Absolutely, promoting our activities is one of the key issues we face and we rely on chambers of commerce, and indeed the general body politic, to do that. There is always more work to do and I am grateful to her for amplifying our message.
Lord Watts (Lab)
My Lords does the Minister agree that we need to do much more to support small and medium-sized businesses, bearing in mind that there is no chance that we will do a deal with America, with China or with India in the foreseeable future, as we were promised under Brexit?
Lord Johnson of Lainston (Con)
I totally agree. Indeed, my own Secretary of State has made this the year of small business, very ably led by my colleague Kevin Hollinrake. As we speak—although it may have just finished—the Prime Minister has been hosting a very successful SME event in Coventry, which I hope will continue to amplify our message that we are doing everything we can to see this vital sector grow and flourish in this great nation of ours.
Prison Officer Pension Age
(8 months, 1 week ago)
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Earl Attlee
To ask His Majesty’s Government what estimate they have made of the cost to public funds of bringing prison officer pension age into line with that of firefighters, the police and armed services.
The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Bellamy) (Con)
My Lords, the Government currently have no plans to change the pensionable age of prison officers, which is set under the Civil Service-wide pension scheme. Any estimate of the cost of doing so would require complex actuarial calculations to determine the higher contributions that would need to be met by the employer and by current and future members.
Earl Attlee (Con)
My Lords, I thank my noble and learned friend the Minister for that reply. Is it correct that Treasury Ministers are responsible for setting the pension age and not MoJ Ministers? Is it also correct that for a newly recruited prison officer, the pension age is 68 years old? Is this policy not really one of “lock until you drop”?
Lord Bellamy (Con)
My Lords, on the first question, the Treasury has overall responsibility for setting pension arrangements for the Civil Service; that is not an MoJ responsibility, and my noble friend correctly makes that point. As for “lock until you drop”, can we please distinguish between the age at which you get a full pension and the age at which you can retire, which is something quite different? A prison officer does not have to work to the age of 68 to qualify for any pension; he can retire earlier on a smaller pension and then, unlike most situations in the armed services, he can return to work—in a less front-line role, typically. He will continue to work and earn a pension, as well as the other pension he has already accrued. It is not at all clear that prison officers under the present scheme are worse off than they would be if they were in the armed services, especially given the higher contributions the latter have to make.
Lord Woodley (Lab)
My Lords, prison officers are, unfortunately, banned from taking industrial action and the Government are, in my opinion, exploiting this unjustifiable restriction. Lifting the pension age to 68 is a classic example of this, and looking after violent, overcrowded and understaffed prisons is not a job for older workers. Does the Minister agree that this policy, which is “lock until you drop”, is reckless, dangerous and plain wrong?
Lord Bellamy (Con)
The Government are unable to agree with the somewhat colourful language used by the noble Lord. The Government have the highest regard for our prison officers, who stand on the front line in prisons and are some of our finest public servants.
However, it is as well to remember that the pension contributions paid by prison officers are much lower than those paid by other uniformed services—between 4% and 6% for prison officers, as against 12% to 15% for other services. These days, if you are a young person in your 20s or early 30s entering the prison service, you are not necessarily thinking about what you are going to get when you are 68. You may be more than satisfied with a lower pension contribution now.
Lord Balfe (Con)
My Lords, undoubtedly, people want prisons, but they should not forget about the people who have to run them. It is a very dangerous profession. There was a settlement in 2016 which, unfortunately, because it was wrapped up in other settlements, was rejected by the prison officers. Last year, it was indicated that the Secretary of State would hold talks about talks with the Prison Officers’ Association, but there does not seem to have been much movement towards negotiations since then. Does the Minister agree that this section of the benefit—mainly pensions, including, if necessary, increased contributions—should be revived in the interests of these most hard-working servants of the state?
Lord Bellamy (Con)
My Lords, I entirely agree with my noble friend that it was a great pity that the arrangements negotiated in 2016 were rejected by the Prison Officers’ Association in 2017. Since then, Ministers have done their best to reopen the matter. As my noble friend Lord Attlee said in opening, it is a matter ultimately for the Treasury. The Treasury is currently besieged by many calls on its resources, including in the pensions sphere, with very large sums of public money being taken up by the McCloud Remedy, which I can explain to noble Lords in more detail—if your Lordships would remain awake. The overall position is that, of course, this matter should continue to be pursued.
Lord McNally (LD)
My Lords, in this House, 68 may seem only early to mid-career, but the general public will be worried at the thought of prison officers of that age carrying on in a very difficult and dangerous job. As part of a broader programme of prison reform, should the Government and the service not be thinking of allowing an earlier retirement age and using the experience gained in other parts of the prison and probation service in the proper through-treatment of prisoners?
Lord Bellamy (Con)
My Lords, I take the point the noble Lord is making. When I had the honour to join this House, I was told that life begins at 70, which has a certain amount of truth in it these days. What the noble Lord suggests is very close to what is currently happening. A typical position is for an older officer to step back from front-line duties, be re-employed by the Prison Service and continue to earn a pensionable salary, as well as having his earlier pension. I am not completely convinced that that is not a perfectly sensible solution to the problem.
Lord Ponsonby of Shulbrede (Lab)
Does the noble and learned Lord not agree that our job is not like the job of prison officer? We do not face the same danger as they do on a daily basis. He described prison officers as the finest public servants, and of course, we agree, but does he not think that the Government’s policy is short-sighted? One of the criticisms that the Prison Officers’ Association continually expresses to us is the lack of retention of experienced prison officers. Retention is the key to maintaining prison officer morale. Will the Government look at this policy again?
Lord Bellamy (Con)
My Lords, the Government will certainly continue to look at this policy. As the noble Lord says, the job of a prison officer is absolutely not like our job. On retention and short-sightedness, the Government currently have no evidence that the pension arrangements as such are affecting initial recruitment or are a factor in retention. There are many factors that affect retention, but pensions do not seem to be very significant in that package. The fact that lower contributions are paid is very attractive to a young man, who does not necessarily worry about what will happen when he is 68.
Lord Davies of Brixton (Lab)
My Lords, this situation goes back to the report of my noble friend Lord Hutton back in the early years of the last decade, in which he specifically mentioned that police officers should have a lower retirement age. The issue the noble and learned Lord needs to address is that, surely, the comparable profession for prison officers is police officers. The differential in respect of police officers, who fully merit their early retirement, applies equally to prison officers. Mentioning pension arrangements for the Armed Forces in the same breath illustrates the hole that the Minister is digging for himself.
Lord Bellamy (Con)
My Lords, my understanding is that the 2011 Hutton report to which the noble Lord refers made a distinction between certain uniformed services—the Armed Forces themselves, the fire service and the police—and everybody else. Part of the problem we are discussing has occurred because the noble Lord, Lord Hutton, put prison officers in the latter category, so they were brought into the general Civil Service pension scheme that came in in 2015, which, in fact, is quite a good scheme. For the reasons I have already given, the Government do not accept that prison officers are as badly off as is sometimes claimed. On the other hand, the Government are perfectly prepared to continue to consider and reflect on the points that have been made.
Independent Schools
(8 months, 1 week ago)
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Lord Black of Brentwood
To ask His Majesty’s Government whether they have made any assessment of the contribution of independent schools to the education sector.
Lord Black of Brentwood (Con)
My Lords, I beg leave to ask the Question standing in my name on the Order Paper. In doing so, I declare my interest as chairman of governors at Brentwood School.
The Parliamentary Under-Secretary of State, Department for Education (Baroness Barran) (Con)
My Lords, independent schools are a small but incredibly important part of our school system. The independent sector is extremely diverse: it includes large, prestigious schools which are household names, but also many settings that serve dedicated faith communities and special schools that provide much-needed support to some of our most vulnerable pupils. The sector also brings valuable international investment to the UK, with over 25,000 pupils whose parents live abroad and who attend UK schools.
Lord Black of Brentwood (Con)
My Lords, I thank my noble friend for that Answer. I agree with her that independent schools play a vital role, both in our education and in our economy. More than 600,000 children attend them, saving hard-pressed UK taxpayers more than £4 billion each year, because those pupils are not in the state sector. They are modern, diverse and inclusive, with a quarter of them, including many faith schools, being small schools educating fewer than 155 pupils, often with special educational needs.
Is my noble friend aware that 75% of independent schools, including schools such as Brentwood, are engaged in fantastic partnerships with the state sector and with their local communities, covering everything from well-being and sports to teacher training, and that more than 8,700 projects were delivered in the last academic year? Would she agree that imposing new tax burdens on independent schools would simply undermine such partnerships, to the detriment of thousands of children, and threaten hundreds of small schools delivering specialist provision to vulnerable pupils?
Baroness Barran (Con)
I absolutely agree with my noble friend, and I thank Brentwood School and other schools involved in the types of partnerships that he described. We have such an asset in our independent schools, and this Government are focusing on encouraging more partnership work and understanding how all our pupils can benefit from that.
The Earl of Clancarty (CB)
My Lords, following on from the previous question, does the Minister agree that, in the perceived ideological tussle between state and private, it is sometimes education itself that is forgotten? The currently less restricted independent sector can be an incubator for forward-looking educational ideas; for instance, those of Rethinking Assessment, which submitted valuable evidence to the Education for 11-16 Year Olds Committee that school education as a whole can profit from such thinking.
Baroness Barran (Con)
I agree with the noble Earl. Independent schools have shown themselves to be areas of great innovation, but we also see important innovation in our state sector. Particularly where the two come together, we see some of the best results.
Baroness Wilcox of Newport (Lab)
Over nine in 10 students study at state-funded schools. Teacher recruitment is in crisis, there is poor mental health support for pupils and school buildings are collapsing. If the Government will not support Labour’s pledge to end tax breaks for private schools, can the Minister tell the House how they intend to fund solving the multitude of problems facing the state school sector?
Baroness Barran (Con)
I remind the noble Baroness that teacher numbers are at an all-time high. I do not deny that there are recruitment challenges, but it is important to be fair about the context. I also remind her that pupil funding next year will be at an all-time high in per-pupil terms. I refer her to the recent results of our pupils in the international leagues tables for both reading and maths, and the dramatic improvement in their performance over the last 14 years.
The Lord Bishop of Worcester
My Lords, I draw attention to my interest as president of the Woodard Corporation, one of the largest Christian education charities in the country. The noble Lord, Lord Black, drew attention to the partnership between Brentwood School and other schools in the area. That is built into the very DNA of the Woodard Corporation, with 12 private schools, six academies, 12 affiliated maintained schools and overseas schools, as schools work well together. Does the Minister agree that this mixed model, which values co-operation between different providers, is a very good one that benefits all children? Does she agree that it would be good to encourage such a model?
Baroness Barran (Con)
I absolutely agree with the right reverend Prelate. I know of a number of independent schools and their local state schools that are considering just the sort of arrangement that he described.
Baroness Garden of Frognal (LD)
My Lords, many independent schools host the Combined Cadet Force, and 70 independent schools share cadet forces with local state schools. I declare an interest as a former chair of the cadet health check team. The cadets is an excellent way of teaching self-confidence, leadership, resilience and life skills. If the proposed VAT policy sees schools close and lose resources, we may lose those vital collaborations. What can be done to ensure that independent schools can continue to support these excellent cadet programmes?
Baroness Barran (Con)
As my noble friend behind me said, vote for a Conservative Government—but the noble Baroness might not entirely agree with that, and she is obviously entitled to her views. I absolutely agree with her on the importance of schemes such as the cadets. I was in a school on Friday, where I met a number of cadets, and was very struck by the value of a programme such as that.
Baroness Eaton (Con)
My Lords, does my noble friend the Minister agree that, should Labour enter government and introduce the 20% VAT on private school fees which was mentioned earlier, it would have a massive knock-on impact on local government, specifically for local authorities that have children in care who are supported by local independent schools?
Baroness Barran (Con)
I think my noble friend is referring to children with special educational needs and disabilities. My understanding of the Opposition’s proposed policy is that children with an education, health and care plan would be exempt from the fees. However, my noble friend is right: there are almost 100,000 children in independent schools with special educational needs and without an education, health and care plan. This will push those parents into seeking an EHCP, with all the knock-on effects on local authority finances that we can see around the country.
Lord Aberdare (CB)
My Lords, what are the Government doing to try to close what seems to be an alarmingly growing gap between independent and state schools in the teaching of arts and creative subjects?
Baroness Barran (Con)
There are a number of ways in which the Government are thinking about this. A number of your Lordships, including my noble friend Lord Black, have pointed to the partnerships, and I know that many independent schools work closely with their state school neighbours to ensure that facilities can be shared and giant performances are put on. Our focus on a knowledge-rich curriculum, with breadth, and on our cultural education plan will contribute to this.
Baroness McIntosh of Hudnall (Lab)
My Lords, one thing is quite striking in listening to the answers in this Question. The thing that most independent schools have in common has barely been mentioned, with the possible exemption of one of the Minister’s noble friends who touched on it: almost all of them charge fees. The charging of fees is necessarily discriminatory. While I entirely applaud the efforts that independent schools are making to make available to some maintained schools some of what they have available, would the Minister agree that, none the less, the vast majority of maintained schools do not have access, particularly in arts and music but in other subjects as well, to the range, diversity and richness that are available to people who are able to pay?
Baroness Barran (Con)
Of course independent schools charge fees, which parents pay for out of income that has already been taxed. The question here is why pick on independent schools to charge VAT, rather than other forms of education such as tutoring, for example.
Lord Hamilton of Epsom (Con)
My Lords, the noble Baroness made the point that the surpluses that were going to be created by raising VAT on private schools would be spent in the state sector. Does my noble friend agree that if too many independent schools close and pupils are transferred to the state sector, there will not be any surplus whatever?
Baroness Barran (Con)
That is a real risk. Your Lordships may have seen recent research published by the Adam Smith Institute that pointed this out.
Baroness Barran (Con)
Noble Lords opposite can heckle from the Front Bench, but there is a serious question about how many parents will decide that they can no longer afford the fees. Given how a school’s cost structure works, it takes only a few parents, particularly in a smaller school, for that school to have to close for all pupils.
Gaza: Hunger Alleviation
(8 months, 1 week ago)
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Baroness Helic
To ask His Majesty’s Government what steps they plan to take to alleviate hunger in Gaza, following the latest report of the Integrated Food Security Phase Classification, which found that 30% of Gaza’s population are currently experiencing catastrophic hunger and that famine is imminent.
The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)
My Lords, we recognise that the desperate humanitarian situation in Gaza is deteriorating rapidly, and we are doing everything we can to get more aid in as quickly as possible, most importantly by land but also by sea and air. We have trebled our aid commitment to the Occupied Palestinian Territories this financial year to just under £100 million. Given that delivering aid through land routes continues to prove challenging and is being blocked, we are working closely with Jordan and other partners to open a Jordan land corridor and are now also working with partners to operationalise a maritime aid corridor from Cyprus. We are clear that Israel must take action to open up more land routes and support the UN to distribute aid effectively, and my right honourable friend the Prime Minister and my noble friend the Foreign Secretary are pressing Israel directly on this. We have said that there must be an immediate stop in fighting now, progressing to a sustainable ceasefire. Everyone needs to act, and that is what the UK Government are doing.
Baroness Helic (Con)
I thank my noble friend for his reply. The bar to declare a famine is high. It means that at least 20% of the population is affected, with about one out of three children acutely malnourished due to outright starvation or the interaction of malnutrition and disease. It means that families are deploying every coping strategy available and are still starving to death. The Famine Review Committee said that:
“All evidence points towards a major acceleration of deaths and malnutrition”.
The UN relief chief has said that humanitarian access to Gaza
“is treated as optional, or indeed wielded as a weapon of war”.
This famine can still be prevented. The IPC calls for an immediate ceasefire
“together with a significant and immediate increase in humanitarian … access to the entire population of Gaza”
to ensure the provision of food, water and medicine and to restore health, water, sanitation and energy. Ad hoc and small aid deliveries, however well meaning, are not enough to meet the scale of this manmade disaster. Will the Government do everything possible, using every legal route, to press Israel to open up border crossings and allow a sustained supply of aid relief to enter the entire Gaza Strip by road? Otherwise, a preventable famine will take place on our watch, and with full warning.
Lord Ahmad of Wimbledon (Con)
My Lords, I agree with my noble friend that, as we have all said from various parts of your Lordships’ House, land routes are the most important and need to be utilised; indeed, all border crossings need to be fully operationalised. The delivery of aid through maritime and air, while important, delivers only a fraction of what is required. We are talking about more than 2 million people who need food, medicine and basic nutrition. I read the report briefly, and we agree with some of the recommended actions about restoring humanitarian access to the entire Gaza Strip. We agree with the calls to stop the deterioration of food security, health and nutrition, and for the restoration of health, nutrition and WASH services, and we stand ready with other partners to do just that. I have been to the Erez border point near Gaza and have seen the backlog of trucks. That issue needs to be resolved right now. Both the Foreign Secretary and I stressed that point to Minister Gantz when he visited recently; indeed, Minister Gantz heard that point very clearly from across the pond in the United States as well.
Lord Austin of Dudley (Non-Afl)
My Lords, how is it possible to ask or answer a Question about the situation in Gaza without mentioning Hamas? It bears responsibility for this because it started the war, it hired weapons and terrorists in densely packed civilian areas, and it steals food and fuel meant for humanitarian relief. The quickest way to get food into Gaza is for Hamas to lay down its weapons and stop the fighting. Failing that, Israel has to defeat the terrorists for there to be any prospect of peace in the future.
Lord Ahmad of Wimbledon (Con)
My Lords, I believe that I, my right honourable friend and indeed His Majesty’s loyal Opposition, if I may speak for them, have all been consistent in our line on this. We need this fighting to stop, which means that Hamas needs to stop launching the missiles, which it has done consistently. We agree that the events of 7 October were shocking and abhorrent—I have been very clear about that. Of course, we have met consistently with hostage families. As I left the Foreign Office today, my noble friend was meeting with hostage families, and I and the Prime Minister met with some of the hostage families two weeks ago. We know the pain directly from them, because they tell us quite directly. But I can also say, from the hostage families I have met, that they are also clear—I am sure the noble Lord agrees with me—that we need this fighting to stop now.
Lord Hannay of Chiswick (CB)
My Lords, can the Minister perhaps tell the House how the consideration of the problems that arose over UNRWA are coming along, given that the new financial year starts about two weeks from now? Will we, like a number of other western countries, thereafter be able to resume the distribution of aid through UNRWA, which the Minister’s noble friend the Foreign Secretary said had an unparalleled capacity for distribution?
Lord Ahmad of Wimbledon (Con)
I totally agree with my noble friend. I assure the noble Lord that our decision to pause future funding to UNRWA has had no impact on the UK’s overall contribution to the humanitarian response. On the specifics of what the noble Lord raises, we want to see three things in order to consider lifting the funding pause: the interim findings of the UN Office of Internal Oversight Services, the interim report findings of the independent investigation into UNRWA—led by the former Foreign Minister of France, Catherine Colonna—which is due this week, and a time-bound action for UNRWA to set out detailed management reforms. I stand by what my noble friend the Foreign Secretary said. UNRWA has provided valuable support to Gaza through the distribution of food, medicines and other services. We were shocked and horrified by the reports made against UNRWA. The Secretary-General acted very swiftly in removing those against whom those reports were made.
Lord Collins of Highbury (Lab)
My Lords, last Tuesday the Foreign Secretary said that, as the occupying power, Israel has a responsibility to allow humanitarian aid into Gaza. He said we would examine how that was happening and its compliance with international law. We have heard constantly that Israel has the commitment and capability. We need to assess whether it is complying. Last week I asked the Foreign Secretary whether we were going to ensure that the Israelis comply with the provisional measures of the ICJ. Why are we not doing so now?
Lord Ahmad of Wimbledon (Con)
My Lords, I assure the noble Lord that, in all our interactions with the Israeli Government, we make the point, as we have said in your Lordships’ House, about the importance of complying with the ICJ decision on provisional measures. This is central to the issue of humanitarian aid. Security Council Resolution 2720, which the UK championed, also focused on ensuring the full and sustainable access of humanitarian aid into Gaza, which is needed now.
Baroness Hussein-Ece (LD)
My Lords, the European Union, along with hundreds of countries around the world, has now officially accepted that Israel is starving Gaza. At the weekend the EU foreign policy chief, Josep Borrell, said:
“In Gaza we are no longer on the brink of famine, we are in a state of famine, affecting thousands of people … This is unacceptable. Starvation is used as a weapon of war. Israel is provoking famine”.
As we heard last week, and as the noble Lord, Lord Collins, has reinforced, Article 50 of the Geneva convention places a requirement on the occupying power not to hinder the application of food, medical care and protection for children, pregnant women and other vulnerable people. Do His Majesty’s Government also consider that these deliberate blockages are potentially being used as weapons of war under the Geneva convention? What legal advice have the UK Government had in their support of the Israeli Government, who are actively blocking the inward supply of vital life-saving aid and creating this famine?
Lord Ahmad of Wimbledon (Con)
My Lords, on the projections of famine, the report says that one in five households faces an extreme food shortage and one in three children is acutely malnourished. Famine is projected to occur in the northern part of Gaza
“anytime between mid-March and May 2024”.
The issue of food insecurity is very clear. Previous assessments of compliance with IHL have been documented in your Lordships’ House. We regularly review advice about Israel’s capability and commitment to IHL and will act in accordance with that advice.
Lord Leigh of Hurley (Con)
My Lords, I visited Kerem Shalom, as disclosed in my register of interests. All the operatives we met have either been killed or abducted and the equipment destroyed. However, Israel—which has never denied Gaza humanitarian aid—now has the capacity to pass 44 trucks per hour into Gaza. On 10 March, 150 lorries passed through, supplying 3,750 tonnes of food, equivalent to four pounds per person. If we are to seek peace, reconciliation and a ceasefire, does the Minister not agree with me that it is very important not to have disinformation, particularly about Israel? It has always sought to ensure that humanitarian aid is supplied wherever it can. The problem has been the UNRWA distribution thereof.
Lord Ahmad of Wimbledon (Con)
My Lords, we have been very clear about the importance of aid entering Gaza unimpeded. There have been claims and counterclaims. The United Kingdom has been very clear that Israel is not letting enough trucks through the crossing. The number that my noble friend quotes is factual, but it is also true that 500 trucks were entering before the war. Some statements have been made that commercial items were included within that. Yes, they were, but there was also food grown in Gaza, which is no longer possible. That is why there is an acute need. The 500 that is consistently stated is not a high threshold but the minimum threshold, and it is needed now.
Lord Turnberg (Lab)
My Lords, is the Minister aware how much of the aid is getting through but not being distributed because it is being siphoned off by Hamas? Does he have any figures at that end of the scale?
Lord Ahmad of Wimbledon (Con)
My Lords, all the aid that gets through is checked first and foremost by the Israelis themselves at the various checkpoints including, as my noble friend said, at Kerem Shalom, which has a very enhanced capacity that needs to be fully utilised. On the issue of aid within Gaza, undoubtedly, with the current chaos in Gaza there is no infrastructure. The roads are no longer fully operational. There are some military roads, which have allowed certain countries —including recently, as reported, Morocco—to deliver aid to the north of Gaza. We need consistent support from the Israeli authorities on the ground to ensure aid distribution. UNRWA provided a vital function. I have reiterated our shock, horror and abhorrence at the reports about UNRWA, and UNRWA is taking action. We have not yet resumed funding, but we are looking at that very carefully.
The difference between Hamas, a terrorist organisation, and Israel, a Government, is that under IHL Israel has obligations that it needs to fulfil as a Government with responsibility to the Geneva conventions. Many in Israel, including many NGOs, are very reflective of that. I have met with many hostage families who are shocked by what they see in Gaza, notwithstanding the horror that they are continuing to face themselves. That is why we are clear: stop this fighting now, release the hostages, let humanitarian aid enter Gaza unimpeded. Then we can talk about the medium to long term on peace and security, which is an equal right of Israelis and Palestinians.
Lord Bird (CB)
I do not meet many people in the course of my life who are not influenced by what is happening in Gaza. I can honestly say that most of the people I meet and talk to, people from all walks of life, are appalled at what Israel is doing. Is somebody going to tell Israel about the damage it is doing not only to its own people but to people throughout the world? Jewish people throughout the world are having a hell of a time because of what is happening there. This is the worst form of foreign policy ever; it is terrible. The amount of anti-Semitism you see around the world is because Israel is thinking not about the next five or 10 years but only immediately.
Lord Ahmad of Wimbledon (Con)
My Lords, I assure the noble Lord that we are very clear to Israel, as a friend and partner—for example, with Mr Gantz—about Israel’s responsibilities in the appalling humanitarian situation in Gaza and the importance of acting with the rights of all its citizens. Let us not forget that 21% or 22% of its population is Arab, Christian and Muslim. Israel is a democratic state and has important security concerns that need to be directly supported, but equally we are very clear that the only way of securing peace, stability and security in the region is to ensure an immediate stop in the fighting now, to get the hostages released and to let in humanitarian aid. A lot of work is being done, including directly by my noble friend the Foreign Secretary and me on the diplomatic front, to ensure that we can address this shocking chapter in the history of Israel and across the Palestinian territories quite directly and bring peace, stability and security through the two-state solution. I assure the noble Lord that we are working diplomatically and extensively on that point.
Business of the House
(8 months, 1 week ago)
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Earl Howe
That, in the event of the Supply and Appropriation (Anticipation and Adjustments) Bill having been brought from the House of Commons, Standing Order 44 (No two stages of a Bill to be taken on one day) be dispensed with on Tuesday 19 March to allow the Bill to be taken through its remaining stages that day.
Earl Howe (Con)
My Lords, on behalf of my noble friend the Lord Privy Seal, I beg to move the first Motion standing in his name on the Order Paper.
Business of the House
(8 months, 1 week ago)
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Earl Howe
That Standing Order 44 (No two stages of a Bill to be taken on one day) be dispensed with on Tuesday 19 March to enable the National Insurance Contributions (Reduction in Rates) (No. 2) Bill to be taken through its remaining stages that day and that, in accordance with Standing Order 47 (Amendments on Third Reading), amendments shall not be moved on Third Reading.
Earl Howe (Con)
My Lords, on behalf of my noble friend the Lord Privy Seal, I beg to move the second Motion standing in his name on the Order Paper. It may assist the House if I set out the plan for this Bill agreed in the usual channels.
The Bill’s Second Reading will take place today, with the debate in the name of my noble friend Lady Vere on the Spring Budget. Noble Lords have until 11 am tomorrow, Tuesday 19 March, to table amendments for Committee on the Bill, and should approach the Public Bill Office in the usual way. Committee and all remaining stages will take place tomorrow. If there is a need to have further substantive stages after Committee, these will be announced in the Chamber in the usual way.
Gender Recognition (Approved Countries and Territories and Saving Provision) Order 2023
(8 months, 1 week ago)
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Baroness Barran
That the draft Order laid before the House on 6 December 2023 be approved. Considered in Grand Committee on 12 March.
National Minimum Wage (Amendment) (No. 2) Regulations 2024
(8 months, 1 week ago)
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Lord Harlech
That the draft Regulations laid before the House on 31 January be approved. Considered in Grand Committee on 12 March.
Lord Harlech (Con)
My Lords, on behalf of my noble friend Lord Offord of Garvel and with the leave of the House, I beg to move the Motion standing in his name on the Order Paper.
Criminal Justice Act 2003 (Suitability for Fixed Term Recall) Order 2024
(8 months, 1 week ago)
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Lord Bellamy
That the draft Order laid before the House on 22 February be approved.
Relevant document: 16th Report from the Secondary Legislation Scrutiny Committee
The Parliamentary Under-Secretary of State, Ministry of Justice (Lord Bellamy) (Con)
My Lords, in October 2023, my right honourable and learned friend the Lord Chancellor said in the other place that the Government would review the use of recall to ensure that the prison system is working effectively and consider how to safely manage any risk posed by offenders, while not having people in prison any longer than necessary. That is the purpose of this statutory instrument.
Recall, as your Lordships know, is a preventive measure available to the Probation Service to bring an offender managed on licence in the community, following release from prison, back into custody. There are two kinds of recall. The first is known as fixed-term recall, which is for a period of 14 days if the offender’s sentence is less than 12 months, or of 28 days if they are serving a sentence of over 12 months. The other is standard recall, where offenders are recalled to prison and remain in custody until the end of their sentence, unless released earlier by the Parole Board.
Unfortunately, pressures on the Parole Board mean that it is sometimes quite a long time before a prisoner’s further release comes up for consideration. In the case of offenders already serving less than 12 months, the delays in the Parole Board might mean that it does not get round to considering their case before they are due for release anyway. This means that in the case of offenders serving less than 12 months, a recall is quite a severe consequence.
Between 2017 and 2023, the number of people in prison on recall rose by about 85%. In that period, there was a major decline in fixed-term recalls—20% in general and 27% for those offenders serving less than 12 months. The purpose of this statutory instrument is to rebalance that situation and mandate the use of fixed-term recall for lower-level offenders—those on less than 12 months, subject to certain exceptions that I will come to—so that they are automatically recalled for 14 days and then rereleased. Of course, they would then remain on licence until the end of their custodial period being served out in the community.
That is the essential purpose of the statutory instrument. I accept that it is against the general background of pressure on the prison estate at the moment but, in the Government’s view, this measure is fully justified in its own right, in fairness to offenders serving less than 12 months and as a way of rebalancing the system in the way I described.
As your Lordships know, probation can recall offenders if their risk while on licence increases because they fail to keep in touch, do not observe the curfew, have been under the influence of alcohol if the conditions forbid alcohol, et cetera. However, as I said, for those serving short sentences, the reality is that one recall might mean that they serve the rest of their sentence, are held in custody for too long, and when they come out they are not on licence as their licence has finished. It is much better, in general, for the short-sentence offenders to remain on licence when they are released back into the community for the balance of the sentence period.
The order will apply to lower-level offenders aged 18 and over serving custodial sentences of fewer than 12 months and assessed as requiring recall. It will not apply to the more serious offenders who are managed under what is known as MAPPA at levels 2 and 3, or those who have been charged with a further serious offence under Schedule 18 to the Sentencing Act 2020.
As my right honourable and learned friend the Lord Chancellor and the noble and learned Lord, Lord Stewart of Dirleton, updated the Houses the other day in their Statements on “Prisons and Probation: Foreign National Offenders”, we are preparing the Probation Service to be ready for increased demand, introducing changes to operating procedures that will allow front-line staff to maximise supervision of the most serious offenders and to deal with intervention and engagement at as early a stage as possible.
I take the opportunity to express our deep gratitude to all those working in the criminal justice system, including in prisons, probation and the police. They deserve enormous credit for their commitment. They are under heavy pressure and managing magnificently. I hope that this statutory instrument will further ease that burden and rebalance the system in the way I hope I have described. I beg to move.
Baroness Jones of Moulsecoomb (GP)
I can sort of see the rationale for this, but it is completely misguided. Every time the Government talk about tougher sentences and being tougher on crime and the causes of crime, they start packing out the prisons. Of course, there is now no capacity. This is a rather cynical move to clear out the prisoners so that we can pack other people in.
I have a much better idea, which I will come to in a moment, but I do not understand why the Government are wafting this statutory instrument through yet find it impossible to do something fairly fast for IPP prisoners. I would like an explanation from the Government.
Part of the problem is that we tend to send people who committed low-level drug abuse crimes to prison. I suggest a constructive way forward, which is that we automatically release anyone in prison for low-level drugs offences, because they are less dangerous to other people and really only dangerous to themselves. Please could we have some rationale about the prison system, which is crumbling with this Government and could be better?
Lord McNally (LD)
My Lords, apparently it is my turn. In a way, this is a continuation of the Question put by the noble Earl, Lord Attlee. The Minister knows the crisis in our prison system. That crisis has been made partly by legislation that we have passed in this House over the last decades.
I remember that, when I went into government with the noble Lord, Lord Clarke—Ken Clarke, who I still consider my friend—we had some ideas about reducing the prison population, which had then crept over 80,000, double what the noble Lord had experienced 20 years before when he was Home Secretary in the early 1990s. We sent a little package across to the No. 10 Politburo, but the message came back: “Not politically deliverable”. That has been the problem with Governments of all shades over the last 20 years: not being able or willing to try to bring down our prison population.
The noble Baroness is right that this is gesture politics, but it is a gesture in the right direction and therefore we support it. There is a concern that it is another example of central government moving responsibility to local government and local voluntary services, which then find themselves under pressure. If more probationers are in society and still needing supervision, will there be any more help for the voluntary services?
Apart from pointing out the ridiculous idea of putting in prison too many prisoners who do not need to be there and could be better managed in society, my argument, going back to the Question put by the noble Earl, Lord Attlee, would be to look at the whole process of managing the way out for prisoners at the end of their sentences, which is expensive, difficult and almost impossible in an overcrowded prison. It came up in that Question—and the Minister indicated that it may already be happening—that some of the experience and wisdom of prison officers towards the end of their careers could be used in a management and mentoring role. Otherwise, we give this SI our support.
Lord Ponsonby of Shulbrede (Lab)
My Lords, I apologise for arriving late for the Minister’s introduction of this SI. We too support the SI as far as it goes, but I agreed with the noble Baroness, Lady Jones, when in the first part of her speech she pointed out quite rightly that, on the one hand, here we are reducing prison sentences while, on the other hand, other legislation down the other end of the corridor is increasing prison sentences. Of course, we have the overarching problem of a Prison Service running at capacity while the Government are struggling to build new prisons. That overarching problem will confront whichever party is in government; I need to acknowledge that.
The central point is about support for prisoners as they come out of prison, so that we do not have a revolving door. As the noble Lord, Lord McNally, said, various charitable and voluntary organisations working with local authorities can properly support prisoners as they come out of prison. As we also know, the most difficult cohort is prisoners who are on relatively short sentences; they are the prisoners most likely to reoffend.
As the Minister knows, I myself am a sentencer. I do short sentences—that is part of our bread and butter within the magistrate system—and it is always with great regret that I give an offender a short custodial sentence, but the reality is that we have found ourselves in a position where we have no alternative. Very often those offenders have been on multiple community sentences beforehand, so we as sentencers feel we have no choice.
Lord Bird (CB)
I want to make a few comments. The renaissance should actually start somewhere else. It should start—I have certain experience with this—with all the naughty boys who later become naughtier boys and men; they should be addressed and supported. The noble and learned Lord, Lord Bellamy, and I have talked about this. What we are largely doing with our young now, although there are some wonderful projects and initiatives, is warehousing them. When I was a young person in the custodial system, if I wanted to climb Mount Everest then, as long as I did not rob an old lady on the way, they were happy to help me. They were happy to help me to do O-levels and that kind of thing.
We have to stop just responding to the problem as it is. There will always be a need to respond to an emergency, but you have to back it up with prevention. That means dealing with our children, largely from the same class that I come from, who fail at school. When I go to Pentonville, the first thing I ask is, “How many people did well at school?”, and only a couple of people put up their hands. The rot starts early on. These children are inheritors of poverty.
Until we have some thinking, we cannot deal with the emergency just by dealing with the emergency. We have to grow up and start creating a system that, first of all, helps the children who come through it. At the same time, we have to look at the social engineering that is necessary to stop producing children who fail at school and whose only inheritance is poverty.
Lord Bellamy (Con)
My Lords, I compliment the noble Lord, Lord Bird, on his intervention. Personally, I think it is full of common sense. We know that a large number of people in prison, particularly in the male estate, are dyslexic. That almost tells you all you need to know about why they are in prison—they have fallen through the various protections. That is somewhat outside the scope of today’s debate, but it is a point well made that all Governments should be thinking about profoundly. We must consider how to tackle this problem as early as we can through a different way of approaching the social problems that lead to the situation that we are in. I thank the noble Lord for those comments.
I thank the noble Baroness, Lady Jones, for her comments too. I hope this is not a cynical move, although I entirely see the potential contradiction in some ways that we are involved in. The Government’s general policy, and probably that of most Governments, is to try to be tougher on the more serious offences but to think harder about how to tackle the less serious ones. Today, we are talking about the less serious offences.
We will come to IPP prisoners on Report of the Victims and Prisoners Bill—we discussed it the other night. Automatic release for low-level drug offenders is a very creative idea; it is some way away from the thinking of the present Government, but is another thing to put on our list of things to think about, if I may put it that way to the noble Baroness in thanking her for her intervention.
Finally, I thank the noble Lord, Lord McNally, who, with great distinction, discharged the office that I now hold, so I regard myself as his grandson in a way. His approach with my noble friend Lord Clarke of Nottingham was no doubt very sensible at the time but, as all Governments know, one has to deal with the political framework that one finds oneself in. In putting forward this order, the present Government are, I hope, producing a practical solution to a very pressing problem.
Of course, I agree with the noble Lord, Lord Ponsonby, that support for the Probation Service—perhaps even its renaissance—is something devoutly to be wished. We have to do what we can, as we can, with the resources we have, but the overall goal is, I think, one that most Members of this House share. So, unless there are any other points I have not dealt with, I now commend this order.
Supply and Appropriation (Anticipation and Adjustments) Bill
Monday 18th March 2024
(8 months, 1 week ago)
Lords ChamberRead Full debate Supply and Appropriation (Anticipation and Adjustments) Act 2024 View all Supply and Appropriation (Anticipation and Adjustments) Act 2024 Debates Read Hansard Text
Spring Budget 2024
(8 months, 1 week ago)
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Baroness Vere of Norbiton
That this House takes note of the Spring Budget 2024.
The Parliamentary Secretary, HM Treasury (Baroness Vere of Norbiton) (Con)
My Lords, it is a pleasure to open this double-header in your Lordships’ House. It is an opportunity to discuss and debate the measures brought forth by the Chancellor in the Spring Budget and to consider the National Insurance Contributions (Reduction in Rates) (No. 2) Bill, or the NICs Bill.
I start by taking this opportunity to welcome my noble friend Lord Kempsell to your Lordships’ House. He brings much experience and expertise, and I very much look forward to hearing his maiden speech today. But, before I delve into the measures announced in the Spring Budget, I shall first touch on the wider economic context.
In recent times, the UK economy has felt the impacts of a financial crisis, a pandemic and an energy shock, caused by the war in Europe. Yet, despite the most challenging economic headwinds in modern history, since 2010, growth in the UK has been higher than in every other large European economy. Unemployment has halved, absolute poverty has gone down and there are 800 more people in jobs for every single day that this Government have been in office.
The Government remain steadfast in their support for the independent Monetary Policy Committee at the Bank of England in its action to bring down inflation. Supported by the MPC’s actions and the Government’s fiscal policy, inflation has fallen significantly from its peak and is forecast to return to the 2% target in the coming months. Because of the progress we have made—because we are delivering the Prime Minister’s economic priorities—we can now help families not only with temporary cost of living support but with permanent cuts in taxation. We do this because lower tax means higher growth, and higher growth means more opportunity, more prosperity and more funding for public services.
With the pandemic behind us, we must once again build up our resilience to future shocks. That means bringing down borrowing so that we can start to reduce our debt. The OBR has confirmed that, based on the measures announced at the Spring Budget, debt will fall in every year of the forecast to 94.3% of GDP by 2028-29. Underlying debt, which excludes Bank of England debt, will be at 91.7% of GDP in 2024-25, according to the OBR, rising slightly before falling to 92.9% in 2028-29. The Government will have final-year headroom of £8.9 billion against the fiscal rule to have debt falling in the fifth year of the forecast. Our underlying debt is therefore on track to fall as a share of GDP, meeting our fiscal rule. We also meet our second fiscal rule, for public sector borrowing to be below 3% of GDP, three years early.
This is a budget for long-term growth. The ONS reported last week that GDP rose by 0.2% in January, and the OBR expects the economy to grow by 0.8% this year and 1.9% next year. We have well and truly turned a corner. Since 2010, we have grown faster than Germany, France or Italy—the three largest European economies—and, according to the IMF, we will grow faster than all three of them cumulatively in the next five years. That means we must stick to our plan of more investment, more jobs, better public services and lower taxes.
I turn first to investment. At the Autumn Statement, the Chancellor announced that the Government would introduce permanent full expensing, a £10 billion tax cut for businesses that gives the UK the most attractive investment tax regime of any large European or G7 country. At Spring Budget, we went further by announcing that the Government will soon publish draft legislation for full expensing to apply to leased assets, a change that we will bring in as soon as it is affordable.
This Government are on the side of small businesses, the backbone of our economy. As well as the business rates support and work on prompt payments announced in the autumn, the Government will provide £200 million of funding to extend the recovery loan scheme as it transitions to the growth guarantee scheme, helping 11,000 SMEs to access the finance they need. The Government will also reduce the administrative and financial impact of VAT by increasing the VAT threshold from £85,000 to £90,000 from 1 April. This is the first increase in seven years. It will bring tens of thousands of businesses out of paying VAT altogether and encourage many more to invest and grow.
Turning now to the Chancellor’s growth industries, these sectors remain a key focus of the Spring Budget. For clean energy, we will allocate up to £120 million more to the green industries growth accelerator to build supply chains for new technology. For advanced manufacturing, we have announced over £270 million of joint government and industry investment into innovative new automotive and aerospace R&D projects. For artificial intelligence, we will invest up to £100 million over the next five years in the Turing Institute, our national institute for AI and data science. We recognise that the benefits of tomorrow’s technology rely on investing today.
For life sciences, we will support research by medical charities with an additional £45 million. This will go into a wide range of diseases, including dementia, cancer and epilepsy, and, because of the Government’s support in this sector, AstraZeneca has announced plans to invest £650 million in the UK. Finally, for creative industries, we are making permanent the 45% and 40% rates of tax relief for theatres, orchestras and museums and galleries, and will be introducing a tax credit for UK independent films.
Turning to public services, in 2010 schools in the UK were behind Germany, France and Sweden in the OECD’s PISA education rankings for reading and maths. Now, we are ahead of them. Burglaries and violent crime have halved over the last 14 years and we have invested in 20,000 more police officers. Our Armed Forces remain the most professional and best funded in Europe, with defence spending already more than 2% of GDP. Overall spending on public services has gone up since 2010 and, in the case of the NHS, by over a third in real terms. However, the best way to improve public services is not always more money or more people; we also need to run them more efficiently. That is why the Chancellor has announced a landmark public sector productivity plan that restarts public service reform and changes the Treasury’s traditional approach to public spending.
Ahead of the pandemic, between 2010 and 2019, productivity in the public sector was increasing by just under 1% a year. However, today, public sector productivity is estimated to be 5.9% below pre-pandemic levels. If we can return to pre-pandemic productivity levels, the OBR states that this could save the equivalent of £20 billion.
This Government can deliver these efficiency savings. The cornerstone of our public sector productivity programme is comprehensive investment in the NHS to transform its technology, upgrading it for the years ahead. That is why the Government are providing £6 billion of additional funding to the NHS, including funding to cover the productivity plan in full.
When it comes to taxes, the Government have consistently maintained that those with the broadest shoulders should contribute a little more. That is why the Government will abolish the current complicated tax system for non-doms, getting rid of the outdated concept of domicile and the remittance basis in the tax system, and replace it with a modern, simpler and fairer residence-based system. From April 2025, individuals who opt into the new residence regime will not pay UK tax on foreign income and gains for their first four years of UK tax residence. This is a simpler, more modern regime and is highly competitive with other similar residence regimes in Europe. But after four years, those who continue to live in the UK will pay the same tax as other UK residents.
To ensure that these changes are introduced in a careful and responsible way, we will put in place transitional arrangements for individuals who are affected by these changes. This will include a two-year temporary repatriation facility from April 2025, whereby individuals can bring their foreign income and gains that accrued while they were taxed on the remittance basis to the UK, at a 12% tax rate, so that it can be invested here. This transitional arrangement will attract an additional £15 billion of foreign funds to the UK and generate more than £1 billion of extra tax. Overall, abolishing non-dom status will raise £2.7 billion a year by the end of the forecast period.
Touching further on tax measures, to discourage non-smokers from taking up vaping, we will introduce an excise duty on vaping products from October 2026. To maintain the financial incentive to choose vaping over smoking, we will also make an additional one-off increase in tobacco duty alongside introducing the vaping products duty. We are also making a one-off adjustment to rates of air passenger duty on non-economy flights only, to account for high inflation in recent years. Perhaps most importantly, we are providing HMRC with the resources it needs to ensure that everyone pays the tax they owe; this will lead to an increase in revenue collected of over £4.5 billion across the forecast period.
The Government will use this increased revenue to help cut taxes on working families, including those who rely on child benefit. Child benefit helps with the additional costs associated with having children and, when it works, it is good for children, good for parents and good for the economy. However, the current system is confusing and unfair. That is why the Chancellor has announced a consultation on moving the high-income child benefit charge to a household-based system, to be introduced in April 2026. In the meantime, the Government will introduce two changes to make the current system fairer. First, from this April, the high-income child benefit charge threshold will be raised from £50,000 to £60,000. Secondly, we will raise the top of the taper at which it is withdrawn to £80,000. This means that no one earning under £60,000 will pay the charge, taking 170,000 families out of paying it altogether. According to the OBR, this change will see an increase in hours among those already working, equivalent to around 10,000 more people entering the workforce.
This is not the only support the Government are providing to families. At the Budget, the Chancellor announced a six-month extension to the household support fund, meaning that vulnerable households will benefit from its support until September 2024. In addition, alcohol duty will remain frozen until February 2025. The Chancellor will also maintain the 5p cut in fuel duty and freeze it for a further 12 months, saving the average car driver £50 next year and bringing total savings since the 5p cut was introduced to around £250.
Because of the progress we have made in bringing down inflation, because of the additional investment that is now flowing into the economy, because we have a plan for better and more efficient public services, and because we have asked those with the broadest shoulders to pay a bit more, this Government are once again able to reduce taxes. From 6 April, the main rate of employee national insurance will be cut by another 2p, from 10% to 8%, and the main rate of self-employed national insurance will be cut from 8% to 6%.
That brings me to the NICs Bill before your Lordships’ House today. It has two measures. The first is the reduction of the main rate of employee class 1 NICs, announced by the Chancellor at the Spring Budget. This cut builds on the changes to NICs made at Autumn Statement, and we will once again support working people by reducing the main rate of employee class 1 NICs by 2 percentage points, to 8%, on earnings between £12,570 and £50,270, from 6 April 2024. This will cut taxes for over 27 million employees.
Secondly, the NICs Bill contains a further reduction in the main rate of class 4 NICs for the self-employed. The Chancellor announced at the Autumn Statement that the main rate of class 4 would be reduced from 9% to 8% from 6 April. With the introduction of this Bill, we are cutting the class 4 main rate further, by 2 percentage points, from 8% to 6%, from April 2024. As a result of the cuts to class 4 NICs at the Spring Budget, an average self-employed person on £28,000 will see a total saving of £310 in 2024-25. Combined with the cuts from the Autumn Statement, including abolishing the requirement to pay class 2 NICs, this will save an average self-employed person £650 a year. Together with the Autumn Statement cuts, this is an overall tax cut worth over £20 billion per year—the largest ever cut to employee and self-employed national insurance.
The Government are committed to tax cuts that reward and incentivise work, and which will grow the economy in a sustainable way while ensuring that inflation remains under control. These measures will not only benefit those already in work. According to the OBR, the NICs cuts announced at the Spring Budget will increase total hours worked by the equivalent of almost 100,000 full-time workers by 2028-29.
The Government are supporting not just working people. This April, pensioners will benefit from an 8.5% increase in the state pension, on top of the 10.1% increase from last year. The full yearly amount of the basic state pension is £3,700 higher, in cash terms, than it was in 2010. I am sure that all noble Lords across the House will welcome these measures.
I have outlined only some of the measures announced by the Chancellor in his Spring Budget and have touched briefly on the details of the NICs Bill, but there is certainly much more to cover. During the debate on the Autumn Statement, I listened very carefully to many noble Lords as they encouraged the Government to spend more or to make other costly changes. I noted in my closing remarks that few noble Lords set out how they planned to pay for their proposed changes. This Spring Budget is carefully balanced to focus on growth, and it is prudent, given the economic headwinds we have faced, and which have impacted our growth and level of debt. But we have now turned a corner.
As the noble Lord, Lord Macpherson, said this weekend:
“It’s very easy to get depressed about the British economy but the plain fact is that it generally grows … There is more money in people’s pockets, the worst of the energy crisis is behind us. If anything I would expect the economy to outperform expectations for the rest of this year”.
I would, too. I beg to move.
Lord Eatwell (Lab)
My Lords, debating the Budget Statement carries a great temptation to focus on the short term—on immediate tax and spend decisions—but today we can avoid often misleading short-term analysis and make an informed assessment of Conservative economic policy, relying on the fairly accurate data of the past 14 years. No forecasting is necessary; the facts will do.
The crucial fact with respect to the growth performance of the economy is growth per capita—not the number used by the noble Baroness, which is, as we know, growth driven by the highest level of immigration into this country in modern times. Since 2008—that is, prior to the global financial crisis—UK income per capita has grown at less than one-fifth of 1% per year, one of the worst long-term performances since the war and one of the worst in the G7. Consequently, average real household disposable income after taxes and benefits is lower today than it was 16 years ago, and that is the worst economic performance since the war. Today, following year after year of Tory-led economic failure, we have a no-growth, high-tax, high-debt economy, a crumbling public realm, with education underfunded and an NHS in near collapse.
Of course, there were worldwide economic shocks to navigate—the global financial crisis, the pandemic, the war in Ukraine—but much of Britain’s economic misery was self-inflicted. Consider the following. In the first half of 2010, the UK economy was on the road to recovery from the impact of the financial crisis. In the months before the May election, the economy was growing at a rate approaching 3% per annum. Conservative austerity killed that growth stone dead. The five years of austerity resulted in higher unemployment and lower investment, both public and private. The UK did not recover pre-2008 levels of income until 2015. Germany recovered it four years earlier.
Austerity was defined by an assault on the public sector. For a decade, real spending per capita on health actually fell, and it has still barely recovered. Real education spending per pupil fell by 8%. The police force, the justice system and defence have been criminally underfunded. Then there is the attack on local government: 14 years of swimming pools closed, libraries closed, youth services cut and local skills initiatives cut. The Conservative Party has hollowed out the facilities and institutions that define communities. For so many, they have destroyed hope.
Then came Brexit. In the Economic and Fiscal Outlook, the OBR has taken the opportunity of newly available data to confirm its view that the impact of Brexit is a permanent 4% reduction in GDP. That translates into lost government revenue this year alone of £42 billion. In an attempt to manage the disruption of Brexit, the Conservatives launched an industrial strategy in 2017, complete with glossy brochures setting out 180 diverse policy measures and commitments. In 2018, they created an independent Industrial Strategy Council, chaired by Andy Haldane, to offer evaluation and advice. Unfortunately Haldane’s rather chilly evaluation was too much for the Government. In 2021, the then Secretary of State for Business and Industrial Strategy told the other place that he was abolishing the council, arguing:
“I have read the industrial strategy comprehensively, and it was a pudding without a theme … I am very pleased to announce to the House that we are morphing and changing the industrial strategy into the plan for growth”.—[Official Report, Commons, 8/3/21; col. 678.]
Thus spake Kwasi Kwarteng. A year later, his plan for growth inflicted devastating damage on the British economy. Now, we have Jeremy Hunt’s plan, as echoed by the noble Baroness. The foundation stone is set out in the Budget speech:
“Conservatives look around the world at economies in North America and Asia and notice that countries with lower taxes generally have higher growth”.—[Official Report, Commons, 6/3/24; col. 848.]
Unfortunately, years of academic and policy research have demonstrated quite conclusively that the proposition is simply false. For example, a week after the Budget, the free market Institute of Economic Affairs—close supporters of the Conservative Party—commented,
“tax cuts do not generate sustained higher rates of economic growth … when we compare growth rates averaged over long time frames between different countries there is little correlation, negative or positive, with tax burdens or marginal rates”.
Yet Jeremy Hunt clings on to “Truss-Kwarteng lite”, even citing the Laffer curve—a reference that eliminates any suggestion his thinking is serious.
Commentators across the political spectrum agree that the next Government will inherit from today’s Conservatives a uniquely dire economic situation. If the new Government should be Labour, it is argued that the economic fundamentals are so bad that Labour will be forced to abandon all its economic and social goals. Fortunately, that prediction is incorrect.
Economic history tells us that beginning from the worst can lead to the best. Four policy ingredients are required: a Government with a comprehensive commitment to long-term investment; a vision of the commercial demands of the future and the technologies to meet them; a private sector corporate structure geared to long-term investment; and a financial system that funnels resources to long-term investors. A better characterisation of Keir Starmer’s missions for Britain will be difficult to find: a commitment to the rebuilding of material and human capital; a focus on the inevitable demands for new green technologies as the world faces up to the costs of climate change; legal reforms to stimulate the private sector; and a new national wealth fund to channel investment that fulfils long-term goals.
However, let us go back to this scorched-earth Budget. The past 14 years suggest that the Conservative Party should join “Economics Anonymous”. The party should admit its horrible errors, identify their origin in defective ideology, and rethink its way back to economic sanity. A decade or so in quiet opposition is required.
Baroness Bowles of Berkhamsted (LD)
My Lords, I declare my interests as in the register.
The economy is in the doldrums, which gave the Chancellor little room for manoeuvre. I will address two mendable reasons for the doldrums. One issue will come as no surprise; it is the double-counting cost disclosure that is killing the investment trust sector. The Mail’s “This is Money” led yesterday on over 130 investment company directors—representing some £120 billion of assets—writing to the Chancellor about the urgency of changing EU rules that the UK is applying in a draconian, gold-plating form.
I know that it is gold-plating and not law because 10 years ago, while I was chair of the European Parliament’s ECON Committee, I suggested exempting investment trusts from the PRIIPs definition. I was told by EU officials I could not exempt what was not covered. In Ireland, legal opinions were obtained that investment trusts were not covered. Interaction with MiFID requirements—also gold-plated—has created the disaster of a shutdown in fundraising and daily news of investors leaving the sector.
Every day, long-only managers suffer redemptions and net outflows of funds from portfolios which hold investment trusts. Every day, there are weak share prices with deep discounts to NAV across all categories. Every day, there are scarce bids in the market, and those that there are, are mainly arbitrageurs with shorter time horizons than the usual long-term investors such as wealth managers and pension, charity and multi-manager, multi-asset funds. Every day, British assets are snapped up cheaply by overseas purchasers. Every day, independent financial advisers, local authority pensions and charity funds scrub investment trusts from their advice or portfolios because “It’s too complicated to explain that the high costs aren’t true”.
Some £7 billion-plus a year of critical funding into UK infrastructure has been wiped out, with projects being starved, sold and bust, and jobs lost and businesses closing in the real economy. I am sure the Chancellor would have liked to announce £7 billion a year of investment that did not cost the taxpayer anything. Instead, it is being killed.
I know the Minister will say that the Government are working at pace to replace EU legislation, but I really do not understand why UK-specific gold-plating is not just taken away for an instant solution. This has been going on at critical levels now for two years, and damage may be irreversible, with habits changed. How will the Government redress that? It poses the question of what on earth can ever be done, truly at pace, when there is an emergency. Something is badly wrong, and it is not just because it is retained EU law; actually, it is only retained FCA interpretation. Of course, there are other headwinds on trusts, but this is the big one, and the correctable one.
The second topic is that which was raised by the noble Lord, Lord Hague, and Tony Blair in their joint report: initial procurement from young UK businesses and the need to have a buyer of first resort. One of the reasons tech companies go to the US to list—to the detriment of our wider economy—is to obtain sufficient core procurement to establish themselves. Success is not all about investment, or loans; they are more plentiful here than procurement.
Lack of UK procurement is endemic across the private and public sectors both for young innovative companies and for those big enough to be in the public eye. One example is Graphcore. Given the UK’s desire to be a leading nation for AI, why is it missing out on opportunities in favour of more established overseas companies? Can the Minister name any domestic procurement success stories?
Newer, smaller technology firms first have to seek grants, often offering below minimum wage daily rates once the cost of applying is factored in. Then innovation procurement in the public sector is not really available. Instead, they are offered open competitions for crossover support, such as commercialisation grants, which use up time and resources, but do not end in procurement.
Underpinning this malaise is that it is far easier for a department to procure a large consultant than it is to procure a young technology business. Barriers include fear or lack of willingness to trial a new technology, concern about becoming stuck with the new technology provider, and fear that the technology not working will be seen as a failure. The fact that departments already end up stuck with the usual suspects, plus failures, via the usual consultants, seems not to feature. The syndrome of “can’t be blamed for choosing them” seems to dominate, whether the procurer is government, via tier 1 contractors or management consultants, or the private sector.
The economy needs procurement from the ground up: the vital first £1 million contract win, which will then grow with such a business if it shows good product or service quality. This is the route to a broader, more competitive supplier market and a wider knowledge universe. Over time, it will reduce reliance on a procurement process that always gets dominated by incumbents and foreign competitors. It will eventually lead to homegrown talent staying and listing at home.
Lord Macpherson of Earl’s Court (CB)
My Lords, I worked on seven pre-election Budgets over my life sentence at the Treasury, so I feel for any Chancellor having to deliver one. He has to reconcile the usually unrealistic demands of his supporters with the need to retain integrity by doing the right thing.
There is much in the Budget and this Bill to approve of. First, on the economy, prospects seem a little brighter: inflation is falling, real wages are finally rising, and unemployment remains low. Secondly, there are some sensible tax-raising measures. As the Chancellor confirmed in his Budget speech, reforming the rules on residents and domiciles has been under discussion for 40 years or more; I welcome him finally grasping the nettle. I doubt whether it will raise quite as much money as the OBR estimates—seriously rich citizens of the world are notoriously footloose—but it is right in principle.
If you are going to cut taxes—I recognise that that is a big “if”—prioritising national insurance reductions over income tax is the act of a courageous Chancellor. In the old days, rentiers and capitalists tended to face higher tax rates than workers, who received earned income relief. That was turned on its head in the 1980s and, since then, successive Chancellors have tended to raise national insurance rates, in effect, to pay for income tax reductions. Occasionally, they felt a little guilty.
Both Lord Lawson and Gordon Brown reformed national insurance at some considerable cost, but the trend was clear: the basic rate of income tax has fallen from 35% in the mid-1970s to 20% today. Meanwhile, the effective rate of employee national insurance contributions rose from 5.5% in the mid-1970s to a peak of 13.25% in 2021. That benefited the old at the expense of the young; it privileged investment and rental income over wages and salaries. Whenever I tried to get a Chancellor interested in cutting national insurance—I worked on a package to help the low paid with the then right honourable Norman Lamont— I would get a pitying look. I was told that it would not work politically. Voters did not like paying income tax, but they thought that national insurance was paying for their pension or the NHS and so objected to it much less.
The Chancellor has turned that on its head: he is raising income tax, while cutting national insurance. It is the right thing to do; it focuses relief on those who need it and should improve labour supply. However, I worry about the number of people in modestly paid jobs—police sergeants and senior nurses come to mind—who are being dragged into higher-rate tax. Although prioritising national insurance is the right thing to do, I worry about its affordability. I welcome the Chancellor’s ambitions on public service productivity, but, having seen many an efficiency review come and go, I would be surprised if this one moves the dial sufficiently to offset rising pressures on public spending.
These matters have been set out at length by the OBR in its excellent Fiscal Risks and Sustainability report—further proof, if any were needed, that George Osborne was right to strengthen the institutional framework supporting sensible macroeconomic policy. The fact is that the demographic pressures that the likes of the noble Lord, Lord Fowler, worried about in the 1980s have already materialised and will only get worse in the years ahead. The triple lock has made things worse. Add in the increasing cost of social care, and we have a real problem.
Then there is the national security situation, which has deteriorated considerably over the last two years. Although generally approving of Mr Hunt’s time as Chancellor—we should all thank him for preventing the British economy from falling into the abyss in October 2022—I was disappointed by the Budget’s silence on defence spending. I do not know whether we will end up having to spend 0.5% or 1% more of national income on defence; either way, we are talking about at least £15 billion more of spending pressures. Add to that the pressures on health, social care and pensions, and we are looking at tens of billions more.
So, at some point in the coming decade, whichever party is in power, the Government are going to have to look again at a health and social care levy. As and when it is introduced, I recommend that the Government use the income tax base rather than the national insurance base. It is right that all citizens with the necessary income pay it, rather than just those who are working.
Finally, I would like to say a few words on the Chancellor’s plan for a retail offer of NatWest shares. As the accounting officer at the Treasury when RBS was taken into public ownership, I have always taken an interest in trying to get as much money back for the taxpayer as possible. The RBS share price was trading in line with the price we paid for it—around £5 in current prices—when the late Alistair Darling left office in 2010. Since then, the price has languished, partly because of wider banking reforms, partly because of low interest rates and partly because of problems specific to RBS/NatWest.
I support the principle of selling NatWest—it needs the state off its back—and hitherto the Government have secured a competitive price for it through their trading plan in the wholesale market. I fear that a successful retail offer will require a heavy discount, which means that the taxpayer will be subsidising retail investors. The case for subsidising share ownership is much weaker than it was in the 1980s, shareholding is more widespread and history suggests that banks are perhaps not the best entry point to shareholding.
I know that the Chancellor has said that any sale will be
“subject to … value for money”,
but VfM is in the eye of the beholder. Can the Minister commit to publishing the accounting officer’s advice on VfM as and when the sale goes ahead?
Lord Lamont of Lerwick (Con)
My Lords, as the noble Lord, Lord Macpherson, has said, the Chancellor faced a very difficult set of conflicting challenges. Having myself delivered one Budget on the very eve of a general election, I particularly appreciate the almost intolerable pressure that was on the Chancellor—although I think he delivered a Budget that was both responsible and constructive.
In the recent past we have been fed an unremitting diet of gloom, which has caused a certain outbreak of schadenfreude in some quarters. But this Budget contains some modest rays of hope. There are definite grounds, as the Minister said, for believing that we are turning a corner. Fifteen months ago, the Bank of England was forecasting that the economy would contract by 4.1% last year. The OBR was saying much the same. If we had been told then that both of them were going to be proved wrong, that growth would pick up this year, that inflation would be expected shortly to reach its 2% target and that the government deficit and debt were now expected to edge down over a five-year horizon, I think we would have been both sceptical and rather pleased.
Growth may be modest, as has been emphasised already, but so it is everywhere in Europe. Now, as the Minister said, the UK is forecast by the IMF to experience faster growth than any major European economy over the next five years. GDP per capita, which the noble Lord, Lord Eatwell, chose to concentrate on, is forecast to increase by 1% to 1.5% per year, way above the figures he was quoting. That is better than the economy has achieved over the last five or 10 years. Even Bloomberg, hardly an enthusiast for the post-Brexit UK, declared, “Britain Isn’t a Basket Case After All”, and its chief economist announced that Britain might surpass the official forecasts this year.
The centrepiece in the Budget was the reduction in national insurance contributions. It was a bold decision, of course, to cut a tax not paid by the retired, but I think it was the right one because of the overriding need to incentivise work.
History, as we all know, consists of a series of exceptional events. But, when contemplating our present discontents, people are inclined just to dismiss or forget as excuses the extreme exceptional events of the last five years, which have been referred to in this debate. Covid resulted in a drop in GDP of some 10% and consequent expenditure of £500 billion on supporting the incomes of people through the crisis. After the energy price hike, it was always inevitable that living standards would fall for a period. If I have a criticism of the Government, it would be that they did not make that clearer at the very beginning.
Our situation is not different from those of other countries. Living standards have fallen in Germany and in Italy in the last few years. Some critics complained that the Chancellor in his Statement was not bolder and should have announced larger tax cuts. Anyone who advocates such a course needs to explain how they would deal with what the IFS has called the most challenging fiscal situation for 80 years, with our debt just below 100% of GDP, and debt interest which not so long ago reached a figure of £100 billion a year. Tax cuts do not automatically pay for themselves—although I do not entirely agree with Lord Eatwell about the Laffer curve.
If you spend £500 billion—50% of one year’s tax revenues—on Covid measures supporting people’s living standards, it is almost inevitable that the tax burden will increase somewhat. Our tax burden after this involuntary forced increase is still below those of major European countries. Of course it is still too high, but it is not a decision the Government made easily, willingly or with great enthusiasm. It does not mean that living standards cannot in time begin to recover, as we are seeing. Wages have risen by 10% in the last two years, and the national insurance reductions have cut in half the effects of freezing tax thresholds up to this point. We have been through a tsunami but we have weathered the storm, and I hope that, geopolitics permitting, calmer waters might lie ahead. Sustained growth does not come from turbocharging demand: experience teaches us that turbocharging usually ends badly. Sustained growth has to come from the supply side, from being more competitive, including competitive taxes of course, alongside innovation and an adequate labour supply.
On that point, a major challenge for the economy is the degree of economic inactivity. Some 9.3 million people of working age are currently economically inactive. The tax measures in the Budget and other measures increase the labour supply over the survey period by the equivalent of nearly 200,000 full-time employees. But these figures, impressive though they are, are dwarfed by the increase in the number of incapacity benefit claimants, up from 2.5 million in 2019-20 to 3.1 million in 2022-23. Two-thirds of claims for incapacity benefit now involve mental and behavioural disorders. I do not want to cause any offence, but I think the Prime Minister was quite right recently to ask: is the country really three times sicker than it was a decade ago? Can the Minister say what action the Government will take to tackle this crucial issue? I read in the newspapers that the Secretary of State for Work and Pensions is examining the capability assessments and thinks that, over time, this might release several hundred thousand people on to the labour market. I would be grateful if the Minister could give us some details of this.
A very significant further measure in the Budget was the productivity plan for the NHS. It is appalling that the UK public sector is less efficient than it was in 1997. The Chancellor believes that by investing 3.4 billion, the plan could unlock £35 billion-worth of savings in the NHS, 10 times the original sum. This, in theory, makes a lot of sense. Pouring an increasing amount of money into a broken system is pointless, as Wes Streeting has said.
I know that this is not a PR stunt but a serious initiative on which the Cabinet Office Minister has been working for some time. However, can we be absolutely sure that the Government really can deliver these productivity gains on the stated timeline? The Government’s record on productivity-enhancing IT systems is poor. If the productivity gains fail to materialise, the Government’s spending projections —already very tight—will become unrealisable and unaffordable. It is vital that these targets are met.
I welcome this Budget. It achieves the right balance in a difficult situation and gives a modest boost to the economy. I commend it to this House.
Baroness Lister of Burtersett (Lab)
My Lords, the message I get from anti-poverty, children’s and women’s organisations in response to the Budget is one of weary disappointment. They are weary because here is yet another Budget that fails to put first the interests of those for whom they speak, and there is disappointment because, as the cost of living payments come to an end, living costs are still a life-sapping struggle for those on low incomes—witness the unprecedented numbers turning to food banks, and the evidence of tired and hungry children in schools. These organisations had hoped for more.
There are some welcome crumbs, including the abolition of the debt relief order charge and the extension of the universal credit budgeting advance loan repayment period, although the latter touches only the surface of UC’s deeper problems. Welcome too is the last-minute reprieve for the household support fund, but giving local authorities only 26 days’ notice and then creating a new cliff edge in September is not an effective or efficient way to plan local crisis support. It is particularly alarming for those living in the 37 English authorities that no longer run a discretionary local welfare assistance scheme, which replaced the national Social Fund.
Rather than lurch from cliff edge to cliff edge, would it not make sense to integrate the temporary fund with local welfare assistance, creating a single statutory scheme, centrally funded, on a multiyear and ring-fenced basis, with clear guidance, but still providing local authorities with some discretion as to how the money should be spent? I should be grateful if the Minister could take this suggestion back to the relevant department.
The additional money announced for the next two years for childcare will certainly help—Commons Ministers seem to have forgotten that it was the previous Labour Government who first recognised government responsibility for childcare—but it will not fill the gap between what providers receive per hour and the real cost of delivering those hours. This is according to the Women’s Budget Group, of which I am a member, wearing my academic hat.
I welcome the rise in the child benefit high income charge threshold and the smoother taper. However, while I certainly recognise the unfairness created by the present system, I do not believe that the answer is to jettison the important principle of independent taxation. After all, this was pioneered by a Conservative Government back in 1990, and endorsed by the Minister the other week. Moreover, as tax experts have warned, and the Chancellor has conceded, it will require significant reform to the tax system. Such reforms are likely to pose considerable administrative problems. If introduced on a cost-neutral basis, they would create as many losers as gainers, according to the IFS. I ask that the consultation include the option of abolishing the charge altogether.
As the Minister said, and to quote the Chancellor, child benefit
“is a lifeline for many parents because it helps with the additional costs associated with having children. When it works, it is good for children, good for parents, and good for the economy because it helps people into work”.—[Official Report, Commons, 6/3/24; col.850]
In the words of Sebastian Payne of Onward:
“There would be no greater sign that Hunt and Sunak are on the side of families”.
Reversion to universal child benefit, supported by the Conservative Party in the past, would also do more for the simplification the Chancellor seeks, according to his letter to Peers.
The traditional rabbit in the hat, which jumped out prematurely this year, was the cut in NICs. True to form, this particular rabbit favoured the better off rather than the worse off and men rather than women. It is difficult to see how this could have been a priority over investment in our crumbling public services, social care, housing and a social security system which fails to provide genuine security. As it is, according to the Resolution Foundation, the scale of cuts to unprotected departments is equivalent to almost three-quarters of the size of those inflicted in the first austerity Parliament. This will mean more cuts for local authorities. I speak as a citizen of Nottingham, which faces the heartbreaking destruction of vital public and voluntary services, jobs, parks, the arts and libraries, hitting women in particular, as workers, service users and unpaid care providers.
The Chancellor has made clear his longer-term ambition to scrap NICs altogether. We now learn that the Prime Minister hopes to fund this through a further squeeze on social security benefits, as mentioned by the noble Lord, Lord Lamont. This again is a repeat of how social security claimants were demonised and how benefit cuts paid for tax cuts at the height of austerity, leaving a social security system not worthy of the name.
Moreover, in framing the scrapping of NICs as a simplifying tax cut, the Government appear to be indifferent to the implications for not just pensions but working-age contributory benefits. It took the Daily Telegraph to observe that:
“It would completely remove even a semblance of the contributory principle”.
As a letter to the i newspaper warned, this could represent a nudge towards private insurance, the only alternative being means-tested UC, with potentially damaging implications for women in couples’ independent social security entitlements. Can the Minister please clarify what the Government think this will mean for contributory benefits for working-age people, as well as pensioners?
Whether the Budget represents the final or penultimate fiscal event of what Tim Bale calls this “fag-end Government”, it underlines the need for a strategy that prioritises social justice in the interests of people in poverty, especially children, together with women and other marginalised groups.
Lord Young of Cookham (Con)
My Lords, I welcome two announcements in the Budget, one of which was touched on by the noble Baroness, Lady Lister.
Last month, along with other noble Lords, I called for an extension of the household support fund, which was otherwise due to expire at the end of this month. This is money from the DWP to local authorities to help households struggling with food and energy costs. Some £2.5 billion has been invested in this scheme since October 2022. It is the largest investment in the capacity of local authorities to deliver crisis support following the abolition of the Social Fund. Local authorities, the budgets of which are under pressure, would not have been able to find the £900 million to carry on with the scheme, so top marks to the Chancellor for listening to those requests and for extending it.
However, it is now due to expire at the end of September, just before a general election and during the Labour Party conference. I am surprised that none of the spads in the Treasury spotted this elephant trap. I hope that, between now and then, the Government will either bring the support into line with other local government funding and run it through to the end of the year or work up some alternative scheme to replace it, such as what was mentioned by the noble Baroness, Lady Lister; otherwise, it will become a very hot political issue.
I welcome the introduction of a British ISA, which has not been mentioned so far in our debate, and notwithstanding some of the negative comments in the press. The Times said:
“Why backing British comes at a cost”.
The Sunday Times money section said:
“Jeremy Hunt’s new Isa is a nonsense”.
That appeared a few pages after the business news the very same day had a share tip that said:
“Clean up with this firm”,
backing a UK firm making cleaning products.
There is a good pedigree for this initiative—the business expansion scheme, the enterprise investment scheme and venture capital trusts. All these are aimed at encouraging investment in UK companies. The British ISA extends the principle to smaller investors and UK-quoted companies. I take the point about definition, on which the Government are consulting, but can my noble friend tell the House whether the scheme will be up and running before the general election?
I want to raise a point about stamp duty and the abolition of multiple dwellings relief, on which I have written to the Minister. I take the point about abuse, which was mentioned in the Budget debate, but there is an unforeseen consequence. In our housing debate last Thursday, I made the point that we need to get long-term institutional finance into the private rented sector to replace the private landlord who is now exiting. Such institutions often buy large numbers of properties before converting them into purpose-built flats. Those hoping to invest in student accommodation could be affected. Can my noble friend have a look at this and see whether the collateral damage might be avoided?
I agree with the noble Lord, Lord Macpherson, that it was right to cut national insurance, although when he, a former civil servant, described a Government’s decision as “courageous”, it took me back to several episodes of “Yes Minister”. On the ambition to abolish national insurance, I think a more achievable goal would be to merge it with income tax. The two are now sufficiently similar that merging is a plausible option, bringing increased transparency and reduced administrative and compliance costs—though there are some potential obstacles, such as the contributory principle.
My concern about the Budget is about not this year but the future. Real per capita day-to-day spending for unprotected departments is set to fall by 13% over the next five years—nearly as much as in the so-called years of austerity. Those are justice, with the problems with the prisons and courts; local government, with growing pressure on adult services and many local authorities at risk of going bankrupt; and pressure on the Home Office and policing. I ask myself whether those reductions are really achievable, and how the public might react were they to happen.
Finally, over the weekend I was rereading the Ministerial Code and came across paragraph 9.1:
“When Parliament is in session, the most important announcements of Government policy should be made in the first instance, in Parliament”.
No one doubts that the Budget Statement is such a policy, so is the country not fortunate to have such perceptive economic correspondents in all our newspapers and media that, independently, they all came to the same conclusion that the only logical thing for the Chancellor to do was to cut national insurance by 2%, and that they then persuaded their editors to back their hunch with a splash and a lead story? I leave the alternative explanation hanging in the air.
Baroness Goldie (Con)
My Lords, it is always a pleasure to follow my noble friend Lord Young of Cookham.
I looked back at what I said in November when we debated the Chancellor’s Autumn Statement. At my stage in life, that is a wise precaution—an aide-memoire is helpful. For this non-dogmatic, non-ideological, pragmatic, prudence-supporting and, I hope, compassionate Conservative, the Autumn Statement was an affirmation of my beliefs. I remember criticism from opponents and even some Conservatives. Predictably, the Labour Party found it tame; not spending enough—no surprise there. Some Conservative colleagues found it dull; not exciting enough.
I do not want the steward of our economy to be some flash Harry putting headlines, gimmicks and show above substance and prudence. Nor do I want a wand-waving wizard treating the economy as some giant experimental laboratory. My noble friend Lord Lamont of Lerwick could never have been described as either in his role as Chancellor and, mercifully, neither can Jeremy Hunt, as he quietly demonstrated in November and confirmed with his Spring Statement. The real test is market reaction, which remained stable.
I remember, in the November carping and criticism, that context was a glaring omission. There was no reference to the extraordinary challenges we have faced—the pandemic, energy price hikes and inflation on the back of the illegal war in Ukraine. Because of the steady approach to the economy by the Prime Minister and the Chancellor, I am clear that context is now being acknowledged and that people understand that. They needed, and got, help with soaring energy bills. They know that there is not a magic money tree, but they are benefiting from falling inflation. They have felt the support offered by the measures in the Autumn Statement and can see how that has been built on by the Spring Statement.
Reaffirming the importance of context, the sobering economic reality is, quite simply, in paragraph 1.1 of the OBR’s Economic and Fiscal Outlook, published earlier this month. It gives an objective assessment of the challenges facing the Chancellor, confirming how tight his envelope is—another helpful confirmation of why the last thing we need is either a flash Harry or a wand-waving wizard. That is why I am reassured by the Chancellor’s approach. In case anyone thinks I am wallowing in a warm bath of self-delusion, let us look at the facts.
At the beginning of 2023, we identified three economic priorities: halve inflation, grow the economy and reduce debt. As my noble friend the Minister indicated, inflation has fallen from 11.1% to 4%, the economy has performed better than forecast and outperformed European neighbours, and debt is on track to fall as a share of GDP to 92.9% in 2028-29, so the steady progress predicted last autumn is happening and there is now scope to help further.
As other contributors have indicated they were, I was very pleasantly surprised by and supportive of the NIC changes to both the employee main rate and the self-employed main rate. The combination of what we did in the autumn and what we do now will make a real difference to the working population, with wider benefits, as the noble Lord, Lord Macpherson of Earl’s Court, pointed out. That is why I will certainly support the NIC Bill at Second Reading later. To grow the economy, we have to make it worth while for people to work. We have to let them keep more of their own money. This delivers that encouragement.
We also have to support people in work, get them back to work and encourage new entrants into work, which these measures, plus changes to the child benefit scheme, will encourage. No one likes paying tax, but measures to help working families and be a catalyst to growing the economy justify putting a bit of the load on some of the broader shoulders. The changes in tax treatment of non-doms are sensible and, recognising the extraordinary increases in receipts for the oil and gas sector, extending the energy profits levy to 2029 with the safety valve of the built-in regulator, because it is there, does not seem oppressive.
The other measures that my noble friend the Minister covered are helpful and sensible for business and offer support in still challenging times for millions of households. The continued work on investment zones is spreading benefit across the whole UK.
Looking ahead, and anticipating that a steady hand continues at the Treasury helm, the IMF forecasts that the UK will grow faster than Japan, Germany, France and Italy cumulatively over the next five years. The OBR confirms that the economy grew last year and will be bigger at the end of the forecast period than it predicted last autumn.
We now need to think strategically about opportunities and innovation as to how we find money. I will look at defence spend, and I want to repeat what I aired in the recent foreign affairs debate in this House. This is the most threat-ridden world we have known since the Second World War. We have to work with partnerships and provide leadership. For NATO, that has to mean looking way beyond 2% of GDP.
During these highly charged times, extraordinary measures are called for if we are serious about the defence and security of this country. That investment would be not just to fund potential kinetic military activity; we need to resource intelligence and cybersecurity measures. There is not much point pouring billions into a more productive health service if activity is wiped out by a hostile cyberattack.
For the next term there is an argument, for a finite period, to top-slice the defence budget to give greater certainty about operational capability. I also believe that the Treasury can be more imaginative in how it procures money to fund defence. My suggestion was to consider the issue of patriot bonds. If we can issue green savings bonds and the still popular premium bonds, why can we not replicate that model for defence? I think there is an appetite for it. I realise that the history of war loan stock might make the Treasury shudder, but surely Treasury expertise can find a model that boosts defence funding, balanced with security and an attractive return to the investor. I do not expect my noble friend the Minister to respond to all that, of course, but I ask her to use a sharp elbow when she returns to the Treasury and to point out that this is not a gentle nudge from a friend; it is a cri de coeur as a matter of necessity.
In conclusion, there is one person for whom the Autumn and Spring Statements create a headache— the shadow Chancellor. In November I questioned the problematic £28 billion borrowing pledge. It has now gone. What next? No one knows. Despite the heroic efforts of the noble Lord, Lord Eatwell, Labour’s economic policy and fiscal proposals remain opaque and incoherent. By contrast, the Prime Minister and his Chancellor, Jeremy Hunt, have set the satnav, we are travelling the journey, the scenery is inviting and the destination is exciting.
Lord Bird (CB)
I want to talk about the 9 million people who the noble Lord, Lord Lamont, spoke of as being economically inactive—I think it was 9 million or just over, if I got that right. It is interesting—is it not?—that, if you look at what a bank does with its money, you will find that 80% of its transactions are all about the buying and selling of property. That means that 20% is about business. These are the high street banks. That is where we keep our family jewels. It is where we keep all the property. All the prosperity seemingly has to pass through owning property. In Germany, it is the opposite: 20% of what banks spend is on the buying and selling of property. So, we have this really weird world.
What I want to talk about is social housing. Some 19% of people in the UK live in social housing. We do not have enough: 1.5 million people are waiting to be put into social housing if it comes along. We need to build social housing, and affordable housing, so that we can break the situation where housing seems to be everybody’s obsession, whether it is the children of the middle classes or the people who inherit poverty from their parents. I find that so interesting.
The other thing I find interesting is that only about 2% of people who get social housing ever have social mobility. Only about 2% will get their school leaving certificate and go to college or university or get a job such that they can skill themselves away from poverty. We have this enormous problem: we do not have churn in social housing. The Government need to look at why, while we invest in social housing, it is not the basis of building a life for a family; it is about building a life to guarantee that for the next 100 years, the children, grandchildren and great grandchildren will be living in poverty.
If we are talking about creating a growing economy, we need to look at what is actually happening in social housing. Statistics today show that about 60% of people who use A&E come from social housing and from poor housing stock. Some 50% of NHS costs are spent on trying to keep the poorest among us as healthy as possible.
I am not an economist, but I am determined to raise the question again and again. If we are to have social housing, it has to be on the basis of accommodating potential. It should not be simply warehousing people: putting them into social housing where they then become hard on themselves, less and less able to live full human lives.
Lord Kempsell (Con) (Maiden Speech)
My Lords, it is a privilege to follow the powerful speech of the noble Lord, Lord Bird. It is with a strong sense of responsibility that I rise to speak for the first time in this Chamber.
Excellence in debate characterises your Lordships’ House, and we have already heard many outstanding speeches in this debate. For my part, I carefully observed the work of the House before venturing to engage in its deliberations. In that process, I certainly benefited from the advice of noble Lords from all parties and none. I thank all those who have been so generous in welcoming me and granting me the benefit of their wise experience. I particularly thank my introducers, my noble friends Lord Mott and Lord Lancaster of Kimbolton. I extend my thanks to Black Rod, the doorkeepers and all the staff of this House. As we all know, their guidance and support are invaluable.
I turn to the important matter before us. Perhaps the House will allow me to focus on an aspect of this Budget for which I have a personal passion. It is an area in which I have direct experience as an adviser to Ministers, and an area that noble Lords across the House have already touched on today. It is the question of the proper evaluation of government spending.
During my time working in the Downing Street Policy Unit, I led efforts to establish the Evaluation Task Force, a Treasury and Cabinet Office team that works to better understand and embed evidence in government spending decisions. It is right that we devote significant time and effort to debating levels of public spending, but seldom do we discuss the lacuna that lies at the heart of government intervention: we simply do not understand whether many government interventions, often expensive, actually succeed in bringing about the outcomes that they are intended to achieve. I am glad that the Evaluation Task Force is working on that, ensuring that evidence is more available and better understood across government.
I therefore welcome the Treasury document published alongside this Budget, called Seizing the Opportunity: Delivering Efficiency for the Public, which was released with the public sector productivity plan. It notes that, since the foundation of the taskforce, it has worked with more than 300 government programmes, with a total value of around £140 billion, to ensure that there is robust evaluation in place.
I also highlight the Evaluation Registry, which will become a publicly available online database of policy evidence, and the £15 million Evaluation Accelerator Fund, which will tackle the most pressing evidence gaps ahead of the next spending review. I hope these reflections illuminate some of my main policy interests, which are the process of government policy-making and, connectedly, the reform of government.
In concluding, I will touch on my own background, which perhaps is a small example of the good that a reforming Government and landmark Budgets can do. It was a Conservative Government instituting careful tax cuts and sensible deregulation that ultimately enabled my parents to become small business owners in Hertfordshire. So aspirational was my grandfather that he would hold up a copy of the newspaper in front of him at the breakfast table even though he could not properly read. In just two generations, his grandson would go on to graduate from the University of Cambridge and would be published in many such newspapers as a journalist—and, I say with apologies to my noble friend Lord Young of Cookham, sometimes as a source briefing government policy. Either way, it was a trajectory surely unimaginable to my forebears.
So, when I stood up a few moments ago to speak for the first time in your Lordships’ House, I felt propelled by decades of their hard work and aspiration. That is why I believe that the crucial formula that should be at the heart of every Budget is natural human ambition coupled with the innovation of private enterprise, matched by the springboard and the safety net of the public sector, and strengthened by the solidarity of family and community in a free society. That is the formula that will transform opportunity into success.
I therefore welcome the Bill before us today, in which the Government bring forward measures to allow people to keep more of what they earn by their own efforts. It is only by widening economic opportunity that we can defeat a pernicious myth that I am afraid is increasingly told to my generation: the false narrative that the road to success is somehow no longer open in this country to those who aspire to it. I know that was also the vision of the former Prime Minister who put me forward me to serve in this place. I pay tribute to him today, just as I pay tribute to my former team in the Conservative Research Department, which I had the privilege to lead.
Since we are in an election year, I will close by recalling a poster which sums up something of this spirit. It said something like, “What did the Conservative party do for a boy from Brixton? It made him Prime Minister”. So I say today, what did a passion for policy and debate do for a boy from Stevenage? It would lead him to serve in your Lordships’ House, and that is where I intend to contribute diligently, with the benefit of the guidance of noble Lords on the questions before us today and, I hope, many more days to come.
Lord Howell of Guildford (Con)
My Lords, I am delighted to have the chance to follow that excellent maiden speech by my noble friend Lord Kempsell. He is absolutely right about the secret—I think he called it the lacuna—at the heart of government, which many commentators overlook. Promoting grand new programmes and promising this, that and the other is pretty easy; you can get very imaginative about future spending, particularly in the speech- writing department. But the harsh implementation—the actual details of getting these programmes through and evaluating whether they are getting anywhere near achieving the objectives one starts out with with such high hopes—is quite another thing.
I cannot remember whether it was von Moltke or von Clausewitz who said that the best-laid strategy never survives the first encounter with the enemy. There is so much talk about long-term strategy, but events, as Mr Macmillan long ago reminded us, tend to intervene, especially in a populist age when the Government are pressed every day, in this Chamber and the other place, to do more and more, yet have less and less control to be able to do so. These are the dilemmas of our times and I greatly look forward to hearing my noble friend’s counsels, based on his experience, on these numerous problems.
Turning to the Budget, the popular cry—and it is correct—is that we need more investment. What does the Budget do, what is the thinking surrounding it, and what steps are planned in changes in central Government to reinforce long-term public, private and public/private investment in the infrastructure of this nation, which gives it the strength and the momentum to go forward?
What encouragement for UK pension and insurance funds is there in the Budget or in government thinking? The Government may be a bit short of funds; they thought they were short of funds in 2010 and that there was no more money, but outside government there is a great deal of money. Pension and insurance funds have trillions ready to invest, and so do the sovereign wealth funds of other countries. I declare an interest as I advise one of the biggest. Of course, every time it comes to discussing where to invest, the need is to find investible projects. It is no use talking vaguely about long-term investment and social benefits; they are important and cost money, but when it comes to a return, what the private investor wants are investible projects—no white elephants or Sizewell C nuclear power stations, which I am disappointed to see is being planned. What are needed are clever arrangements with government backing on the public sector borrowing side as well as the private sector side. We have been halfway there, with the private finance initiatives of 20 and 30 years ago—they had a bad side but also some very good ones. This is where new creative thinking will be needed, under whatever Government, in the next few years.
Secondly, and following that, there is no hope of getting real momentum in our long-term investment structure, wherever the finance comes from, until the centre-of-government mess we have in this country is cleared up. We need to see the creation of a new office for management of the Budget reinforcing the Prime Minister’s cross-cutting control of major projects, as my noble friend Lord Maude recommended in his excellent report, which has not been evaluated and discussed nearly enough. It reflects very long-standing Conservative thinking; some of us were urging half a century ago that this is a necessary stage to get the whole of government infrastructure investment moving.
My noble friend Lord Maude’s recommendation was that:
“A new Office of Budget and Management (OBM) should be created. This would include HM Treasury’s current responsibilities for the allocation and control of public expenditure, together with the centres of the major cross-cutting functions—financial management, commercial procurement, digital, project delivery, human resources”.
I say “Hear, hear!” to that, as I have for decades. We will not get the infrastructure investment needed and real momentum behind it until that split in the Treasury is made and the Prime Minister’s strategic position is greatly reinforced.
Thirdly, what about the Chancellor’s growing commitments, which I listened to and greatly welcome, to increased retail investment in the financial sector, as well as investment from pensions and so on; for every family in the land to be shareholders; for wider ownership of all kinds; for shared community ownership, as is being developed in many other countries but not fast enough here; and for employee share ownership, which is widespread in the United States? The noble Lord, Lord Macpherson, mentioned the NatWest sale. I hope that is an opportunity for imaginative schemes to be developed. I think we will hear about just one of them later on from the noble Lord, Lord Lee of Trafford, which might help greatly.
Finally, economists all talk about raising productivity and ideas abound on how this should be done. There is one quite simple answer that gets overlooked: to encourage ourselves to be a nation that is highly attractive, even more than we do, for foreign direct investment. It has not been too bad but is not as powerful as it should be. I ask my noble friend: have we learned from the success of 1970 to 1990 in attracting an enormous wave of Japanese inward investment, which had the direct effect of increasing productivity? New machinery came in but, better than that, the old restrictive practices then being pushed much too hard by the trade unions were thrown out. The Japanese refused to work with those. Our car industry was rescued from its poor state, and from the last attentions of Mr Benn and others, and transformed. Our electronic industries were transformed and a lot of new investment was brought to the Welsh valleys.
These are the areas where the new momentum is now required. My noble friend Lord Harrington’s excellent report makes some very useful recommendations on how to do it. They all point in the same direction of a much more powerful push at the centre than we have had in the past.
We need to become a financially literate nation—a nation that understands that investment means savings, which means organising those savings and drawing on them in a way that attracts in a steady stream. If we can get investment up, the benefits of it must be far more widely shared. Politicians mouth the phrase that capitalism must work for everyone; well, it clearly does not. It must be made to work for everyone and it can, in contrast to the distorted state capitalisms of Asia, such as the Chinese state capitalism, or the mafia gangster capitalism of Moscow.
We need to hear a lot more from the Conservative Government we have now, although I would hope to hear it from all parties and all Governments in this post-socialist age, about sharing the benefits of asset growth and investment for the people. That is the path we should be on, and I believe we should concentrate on it with much more vigour, whoever is in charge politically at Westminster, than we have in the last 50 years.
Lord Davies of Brixton (Lab)
I congratulate the noble Lord, Lord Kempsell, on his excellent, informative and measured maiden speech. I am sure he will be an asset to the House. I mainly want to question the Government about their proposals on national insurance, which are clearly a major part of the Budget and have given rise to the Bill before us today. I would like to make a couple of other points first.
First, I point out that no serious independent commentator thinks that the Government’s fiscal rule makes any sense whatever. The Government claim that it demonstrates that they are behaving responsibly, but it is clearly nonsense. Any parameter that depends on the difference between two enormous and uncertain figures is not going to work in any practical way but, even on its own terms, we have fantasy income—the treatment of the fuel levy is only one example—and fantasy expenditure. Rather than demonstrating the Government’s responsibility, their fiscal rule actually illustrates their irresponsibility.
Secondly, the Government claim they want a tax system that rewards and incentivises work. If that were anywhere near true, how does it explain the continued favourable treatment of what, to the older ones among us, used to be called unearned income? Income from rent and property is taxed significantly lower than income from work. If the Government were interested in incentivising work, the burden of taxation could be shifted from work on to these other areas, which are currently taxed at lower rates.
I am a strong supporter of the national insurance scheme. It has lasted for 113 years since it was first introduced as a term by Lloyd George. It was brought into full effect by the post-war Labour Government under the leadership of Jim Griffiths, who I suggest needs to be honoured as much as another leader in that Government, Aneurin Bevan. I am a strong supporter of national insurance because it provides a system of paying contributions while you are at work. You then receive benefits when you cannot work, whether because of illness, unemployment or retirement. That was the system that was established; the fact that we still use the term national insurance demonstrates the support that that approach to providing social benefits continues to enjoy.
As a strong supporter of national insurance, I would like the Minister to tell us what on earth the Government are up to. The proposals floated since the Budget bear all the hallmarks of a bright idea from a Tufton Street Astroturf think tank. They are ill thought out, ill considered and ill formed. Someone has a plan; we do not know what it is, but we are entitled to know. It is absolutely wrong for the Prime Minister or the Chancellor to float ideas without explaining the full implications of what they are saying. Unless they provide us with those full implications, their ideas are worthless.
There are two key questions that arise from removing one leg of the national insurance arrangement—the contributions. First, they must tell us where the money will come from. Will it be from massive economic growth, which would suggest that the entire focus of economic growth will be devoted to removing national insurance contributions? There are more important priorities than that, so the Government need to tell us where the money will come from. Secondly, they also need to tell us what the implications are for contributory benefits, as my noble friend Lady Lister of Burtersett said. We have a contributory system: if you remove the contributions, you have to tell us what you will do with the contributory benefits. My main focus is pensions, but this applies equally to pre-retirement benefits. I hope the Minister can explain a bit more about what the Government have in mind because unless they provide further information and clarity about the idea, they are seriously misleading people about their intentions.
Baroness Lawlor (Con)
My Lords, I am glad to follow the noble Lord, Lord Davies of Brixton, and to hear his analysis and comments on NICs. I have a long interest in the contributory system and how it developed in the interwar and post-war years, but I will not speak on NICs today. I also welcome the noble Lord, Lord Kempsell, whose maiden speech brings a flavour of the thoughtful approach to improving government policy that he has deployed in his different roles, most recently in the Prime Minister’s Office; I look forward to his fresh insights in your Lordships’ debates, as he shares his knowledge and experience, including that of the conduct of the country’s affairs at one of the great moments of recent history.
I am grateful to my noble friend the Minister for her helpful discussion of the Budget. I set my comments in the context that was outlined by the noble Lord, Lord Lamont: the modest economic improvements we have seen are to be welcomed and UK growth, although not terrifically high, is better than in many European countries, and our tax burden, although still too high, is less burdensome and onerous than the tax burdens of many of our fellow citizens in Europe. That is the context in which I put my questions to my noble friend.
UK GDP growth has not been very high. By 2028, it is projected to be 1.7%, against an inflation figure of 2%. The ONS estimates that GDP per capita decreased by 0.7% in 2023. The OBR suggests, as highlighted in the Library Note by the Lords research team, for which I am very grateful, that the fall is because of the increase in population. Our population is now over 67 million people. In 1950, it was 50 million people, and it is projected to be 70 million in 2026. Given that the 2023 figures indicate net migration of 672,000 people for this year, can the Minister elaborate on the link between rising population and a decrease in GDP per head and how the Government see projections for GDP per capita and for immigration?
I will move on to public debt and borrowing. I welcome the projected cut in public sector net borrowing as a share of GDP from 3.1% of GDP today to 1.2% in 2028-29. None the less, the figures for public sector net debt, excluding the Bank of England, are more disappointing. It is expected to rise to 93.2%, as a percentage of GDP, by 2027-28 and to fall slightly to 92.9% in 2028-29. Public spending, at 44.5%, is still too high, for the reasons the Minister gave, and because public spending, at these levels, and public debt, require high levels of tax to service both the public spending and debt interest. The Government announced tax cuts in the Budget, but rather than prioritising these, should we not be taking the scythe to the overall levels of public spending and public debt? I do not think this will have a terrific impact on the provision of public services, given that the UN Human Development Index reveals that countries with lower public spending as a proportion of GDP very often have a better output and better public services. Countries such as Switzerland, Canada and other European countries do far better, in health and education outcomes, with far lower levels of public spending as a proportion of GDP.
It is reassuring to hear that inflation is now on the downward trend, but I urge that never again must the Bank of England and its official advisers be permitted to turn a blind eye to the growth of money, and the quantity of money supply, each year; they must be obliged to take account of it. The Economic Affairs Committee of this House recommended in its November 2023 report that to address the errors made in the conduct of monetary policy by the wider central banking community, including the Bank of England, it had heard evidence from a number of witnesses, including those who pointed to the failure to take account of the money supply. The committee recommended:
“The Bank must do more to foster a diversity of views and strengthen a culture that encourages challenge”,
and, given the
“absence of any detailed discussions about money supply in the Bank’s published Monetary Policy Reports … that the Monetary Policy Reports should include discussion of the main monetary aggregates, accompanied by an analysis of their relevance to the Bank’s inflation outlook and the various scenarios the Monetary Policy Committee considers. This would ensure adequate transparency in how the Bank approaches its monetary policy decision-making”.
This advice echoed that of Tim Congdon, an author whom I published—I declare an interest as research director of Politeia. Professor Congdon proposed that whenever money growth is too high or too low, relative to the 2% inflation target, the Governor of the Bank of England be obliged to write a letter to the Chancellor of the Exchequer explaining why the deviant behaviour of the quantity of money will prove compatible with future inflation close to the 2% target that my noble friend the Minister is determined to meet. I conclude by asking my noble friend the Minister what steps have been taken, in light of the Economic Affairs Committee’s recommendations, and whether the Governor of the Bank’s open letter system might now include references to money and require an explanation about why rapid money growth or money contraction will not lead to inflation far beyond the permitted band.
Baroness Jones of Moulsecoomb (GP)
I too welcome the noble Lord, Lord Kempsell, and congratulate him on his maiden speech, which was concise and interesting. That bodes well for future contributions.
I recognise the scenario that the noble Lord, Lord Eatwell, put forward. I did not really recognise the scenario that the Minister put forward. I think that we are in a terrible mess in this country, and this Budget does nothing for it. This is not really even a debate at all, because we have two parties arguing over the same set of policies, while the general public see their taxes misspent on a mix of corrupt contracts and privatised services. It does not seem very fair, really.
The reality of the UK today is that a lot of hard-working people will get paid less than they did a decade ago, while the very richest get even richer. There has been no austerity for Conservative Party donors or the friends of Cabinet Ministers; they came out of Covid richer, as a result of fast-track PPE contracts, and now of course they are paying less tax, with fewer regulations and with the ability to stow away their money in offshore trusts.
Brexit has failed to benefit Cornish fishermen or voters in Sedgefield, Wrexham or Leigh. Levelling up is an excuse that enables the Government to channel public money to marginal Conservative seats. The whole Thatcher project has failed, yet politicians of both major parties treat it as a sacred text. For example, North Sea oil and gas has made Norway one of the richest countries in Europe, from the 1980s onwards, with an oil fund worth approximately $1.4 trillion. Revenue from the fund accounts for one-fifth of government spending. The UK should be even better off, but we handed it all over to the private sector. The result is energy customers being ripped off in the past two years, with record high energy bills and record high profits for the oil and gas industries.
Instead of coming out of the last 50 years with a thriving economy, we live in a country where things are falling apart and nothing works. Anyone who walks around towns will see the lack of investment, as councils are struggling and going bust up and down the country. NHS waits are getting longer and dentists cannot be found. These headline tax cuts will do nothing to reverse the decades-long real-terms wage freeze that most workers have faced under successive Conservative Governments. You have to ask where all the money that we had when Margaret Thatcher took power went.
We have 171 billionaires now, which we did not have before and which is obviously something that we should all be proud of. Why is a wealth tax not the number one priority for both parties, especially the Labour Party, at the next election? It would enable this country finally to invest in large-scale renewables and the insulation of homes. A wealth tax could deliver cheaper energy and lower bills, which is exactly what the majority of us need.
Rail privatisation has led to far higher fares, at a time when the climate crisis dictates that we need lower fares, more trains and fewer cars. Water privatisation has given us sewage in our rivers, higher bills and a collapsing infrastructure. Water bills are due to go up another £125 on average this year to generate the £56 billion needed to fix our leaky pipes and overloaded sewerage system. Oddly, that is a very similar amount to what the water companies have paid out in dividends. They took the money and did not do the work, and I do not see any penalty for that from the Government. There have been a few fines, but they pay those happily. Instead of asking for fines, we should be taking shares. The solution to our economic decline is not privatisation, of the NHS or anything else; it is public ownership of railways, water and the NHS, and the end to taxpayers being ripped off by dodgy contracts.
The Green Party wants this country to have its future back, which means changing the way in which we manage our economy and the environment that we live in. It means clean water, clean air and clean politics. The Green Party is putting together a manifesto at the moment for the general election, which will have a fully costed budget, which I am happy to share with all political parties. We need a bit of forward thinking in all our decisions over the next few years. We are in trouble as a human race. Somehow, nobody seems to get this—they just do not understand the urgency of what we have to do. I would argue that this Budget is fairly useless. I look forward to sharing the Green Party budget with everybody, so they can see what good ideas look like.
Lord Lee of Trafford (LD)
My Lords, it gives me no pleasure to describe our country today as pothole Britain. For years, we have lived beyond our means, compounded, of course, by Covid and Brexit. Most public services are in dire need of greater resources. National morale is very low indeed.
I am supportive of some of the individual measures in the Budget—support for creative industries, changes to child benefit, and a focus on life sciences and artificial intelligence, and I understand the politics of the 2% reduction in national insurance. However, I believe that the money that has been saved there would be much better spent on defence, where the argument to spend more is compelling at the present time, as well as on our prisons, dentistry, youth services and the police, and on social housing, as referred to by the noble Lord, Lord Bird.
My focus today is on two things: the disposal of the NatWest shares and ISAs—the British ISA, referred to by the noble Lord, Lord Young. The noble Lord, Lord Macpherson, referred to the disposal of NatWest shares.
I think we all agree that financial education in our schools has been lamentable. The NatWest disposal of the Government’s around 30% holding gives the country a unique opportunity to improve financial education. If the Chancellor goes down the “Sid” route, which is what he is talking about, I believe that there is a real opportunity here, which myself and a number of senior Members of your Lordships’ House, including the noble Lords, Lord Lamont and Lord Howell, have put to government. Our idea is that government gives by way of gift something like £5,000 of NatWest shares free to all our state secondary schools, if they would like those shares. With just over 4,000 state secondary schools, that would probably cost around £22 million, assuming full take-up, which, frankly, is a pretty small amount of overall government spend.
These shares would have to be held for the long term. A £5,000 NatWest shareholding would give, at present, a dividend to the school of about £350 a year. Our idea is that the pupils would be empowered to decide how that £350, or the annual dividend, is actually spent. They might decide, for example, to spend it on something for the school, to subsidise a school trip, to support a local charity, or even to reinvest it in some form. But it would be their decision. Of course, because the school would own the shares, it would be able to participate in the national NatWest AGM. Indeed, NatWest may well send speakers into the schools to spread the word on financial education. This scheme would be transformative. It would, for the first time, begin to encourage and make youngsters aware of what banks are, what the stock market is and what dividends are.
In the Treasury Select Committee last Wednesday, John Baron asked the Chancellor about this scheme, which has been put to him, and his reply was that it was under consideration. Obviously, I very much welcome that. If such a scheme is actually implemented, we could build on it by encouraging regional public companies to give a small proportion of shares to state secondary schools in their locality, where their employees’ children go, and indeed where they recruit from.
Turning to ISAs and the concept of a British ISA, I have been a great supporter of this whole concept, starting to invest when PEPs, the precursor of ISAs, came in, in 1987. ISAs have developed into probably the best tax-free wrapper in the western world. Many of my overseas, foreign friends are envious of the ISA. It has been a very successful savings medium, and the newspapers over the weekend have been full of ISA content. I would be very supportive of anything that gives a boost to the UK stock market, but I have to say that the £5,000 British ISA suggested in the Budget is, frankly, something of a damp squib. It will be administratively very difficult and complex: we are probably talking about having to run two ISAs. It will obviously appeal only to the very wealthy, who will be able to put in something like £20,000 a year—£20,000 plus the £5,000. Frankly, it hardly produced a flicker in stock market interest: there were no movements at all. I am pleased to say that my own ISA is 100% invested in UK stocks—which perhaps explains its rather poor performance in recent years.
More seriously, there is a fundamental choice here. If individual savers and investors want to invest in overseas stocks, by all means let them—that is their decision—but I do not believe that we should give tax incentives, via ISAs, to those who invest overseas. Why should we? It does not make sense. Therefore, while I think it would be difficult retrospectively to argue that people should dispose of their overseas holdings, from now on those who take out new ISAs, whether they be for £20,000, £5,000 or whatever figure, should actually be restricted solely to UK stocks. If they want to invest in overseas stocks, that is their decision, but there should not be tax breaks supporting that.
Baroness Noakes (Con)
My Lords, I will start by being positive about the Budget and talk about the things that I like. First, tax cuts are good, so I support the reductions in national insurance contributions. This will increase incentives to work.
Secondly, the longer-term ambition to eliminate employee national insurance contributions is excellent and will help to simplify the tax system. The contributory principle has been a fiction for a very long time, although I note that the Benches opposite have not yet caught up with that. I hope that the Chancellor will also look at employers’ national insurance, which is a tax on jobs and therefore a disincentive to job creation. I find it bizarre that we tax people-intensive businesses more highly than capital-intensive ones.
Thirdly, I support the focus on increasing public sector productivity. Too often, fingers are pointed at the private sector when discussing the UK’s poor productivity performance. The 20% or so of our GDP generated in the public sector has often been in negative territory and has been a significant drag on our overall performance. Because the NHS sucks up so much of our public sector resources each year, it was inevitable that the Chancellor would look there first, but my heart sank when I heard him talk about stuffing several billion pounds into NHS IT. The NHS’s history is littered with IT failures and, if the Government go ahead with this, they really must hold NHS England to account and not let it off the hook this time.
Fourthly, I was thrilled that the Laffer curve has been embraced. I have often extolled this in debates in your Lordships’ House. I agree with the noble Lord, Lord Eatwell, on many things, but on this I definitely do not. The reduction in the capital gains tax rate on residential property is pretty small beer in the overall Budget arithmetic, but it is a start, and I hope that the Chancellor will pursue tax rate reductions with more fervour in future. The OBR recognises the dynamic effects of tax changes only to a very limited extent, and the Chancellor must not let the OBR be a roadblock to more reductions in tax rates in the future.
I really wanted to find more things to praise in the Budget. I tried very hard, but I failed. This is yet another Budget which delivers very little to break out of the low-growth, low-productivity rut in which we find ourselves. We have a high-tax economy. Tax at 37% of GDP by 2028 is nothing to be proud of. We have fiscal drag, high marginal rates for individuals, a high rate of corporation tax and windfall taxes, all piled on top of a vastly complex tax system, and these are just some features of our current tax landscape. It is no wonder that, in last year’s tax competitiveness index, the UK was ranked 30th out of 38 countries, three places lower than the previous year.
We also spend too much. Public expenditure is way over 40% of GDP, and while it is on a downward trajectory, nobody really believes that this will last, absent detailed plans of how that is to be achieved. It is possible to get public expenditure down, but it will not be achieved by productivity gains alone. At the end of the day, we will have to stop doing some things. It will be very hard work, but I can see no evidence in the Budget papers of a commitment to doing it.
The Chancellor labelled his Budget
“a Budget for long-term growth”,—[Official Report, Commons, 6/3/24; col. 840.]
but the truth is that it lacks a single-minded focus on growth. The Chancellor’s speech was complacent on our recent dismal growth figures, and failed even to acknowledge that we seem to have slipped into a technical recession in the second half of last year. The Chancellor seems to think that bullying pension funds into investing in UK equities amounts to a pro-growth policy, but I think it amounts to a sub-optimal pensions policy. While I rarely agree with the chairman of the National Infrastructure Commission, he hit the nail on the head last week when he emphasised that pension funds need to invest for the benefit of current and future pensioners, and that means investing in the best investment opportunities wherever they are found.
The new UK-only ISA announced in the Budget is not much more than a gimmick. Apart from its being unlikely to have any significant impact on anything, the consultation shows that this is just another complicated scheme in an already complicated savings landscape. There are already five different types of ISA; we do not need a sixth, especially one which could well prohibit savers from making rational investment decisions. Growth will not come from this tinkering.
A key plank of supply-side reform is deregulation, especially for smaller businesses. It cannot be said too often that businesses just want to be left to get on with running their businesses. Every minute spent on the complex web of regulation which successive Governments have spun around the business world is a minute not spent on wealth creation. Large companies love regulation, because it squashes smaller competitors. A proper Conservative Government would smash through this, but there was not even a mention in this Budget.
I am used to being disappointed by Budgets produced by Conservative Chancellors. This one was no exception.
Lord Skidelsky (CB)
My Lords, I am afraid I do not share the admiration the noble Baroness has for the Laffer curve, as I shall try to explain a little later. The opportunity given to this House by a debate on the Budget is not to vote on its proposals, as we do not have the power to do that. However, it is to probe the fiscal philosophy which underpins it and see whether it makes any sense. That is what I would like to do.
It is not an easy task. Walter Bagehot said of a well-known 19th-century politician that his success lay in leaving out the premises on which his arguments depended. One can say the same about Jeremy Hunt; he is no Nigel Lawson, who had no fear in displaying his premises. In his Mais lecture of 1987, Lawson said it was the task of macro policy to control inflation, and of micro policy to secure full employment, reversing the Keynesian wisdom of his day. This has been roughly the philosophic stance of British Governments—both Conservative and Labour—ever since.
The Bank of England was entrusted with the control of inflation; reforms in the product and labour markets, like deregulation and weakening trade unions, were relied on to reduce unemployment to its “natural” level—that is full employment, as it was subsequently understood to be. If we look at the Hunt Budget from this point of view, one fact stares out: his assumption that the British economy is now at full employment. The headline unemployment rate is 3.8% and is forecast to stay at 4%—that is at about 1.5 million of a total labour force of 32 million—for the next two years. It is the lowest rate for 16 years, as the Chancellor was quick to point out. Surely, it is about as good as it gets.
What it seems to show is that there is no spare capacity in the British economy: our problem is a shortage, and not a surplus, of labour. This is a statistical miasma, however. Around 9.25 million of the working-age population is classed as economically inactive, giving an inactivity rate of 22%. To argue that in this situation the economy is at full employment, and that there is no spare capacity, seems perverse. It is much more in line with common sense to say that a proportion of that 22% would want to work if there was a demand for their labour.
In short, I would argue that we have a Keynesian problem of deficient demand and not just one of insufficient or inefficient supply. It does not show up in the headline unemployment numbers but in the withdrawal of part of the population from participation in the economic life of the community. It is worth remembering that Keynes did not talk about unemployment equilibrium—that was a later phrase —but underemployment equilibrium. We have had this situation for a number of years. Whatever the supply-side contribution to it—and I understand the rise in poverty, disability, and mismatch of skills and jobs—insufficient demand has also played a part.
We are told that inflation is on the downward trend, due to the Bank of England’s high interest rates and the Government’s sound fiscal policies. Completely ignored in this assessment, however, is the influence of energy prices on inflation. Has the OBR factored in the increase in energy costs which would follow from, for example, the closure of the Suez Canal? That is a real possibility. We need to remember that inflation is not caused just by expanding the money supply at full employment; we had stagflation in the 1970s, when inflation was due to a supply-side shock.
An important aspect of the sound money policy the Chancellor credits with bringing down inflation was the fiscal austerity practised by successive Conservative Governments after 2010. I quote from the Budget speech:
“It was only because we responsibly reduced the deficit by 80% between 2010 and 2019 that we could provide the £370 billion to help businesses and families in the pandemic”.—[Official Report, Commons, 6/3/24; col. 839.]
The alternative view, which I share, is that the austerity policy prevented a full UK recovery from the great recession of 2008-10. Had George Osborne not slashed public spending, the UK would have been in a much better fiscal position to face the pandemic. As I wrote in the Financial Times in 2010:
“Austerity in the capital budget is the worst possible remedy for a slump”.
I stick by that.
Now we come to the Laffer curve: lower taxes mean higher growth. To justify his claim, Jeremy Hunt produced the Laffer curve like a rabbit out of his hat. However, as the noble Lord, Lord Eatwell, pointed out, there is no correlation over time between tax rates and growth rates. The most prosperous period in modern history was the three decades after the Second World War, when the highest marginal tax rates were at 90%, and literally no one was allowed to become a billionaire—even becoming a millionaire was quite difficult.
My last point is that although Labour has rightly been critical of this Budget, it occupies much of the same intellectual territory as the Conservative Government. It has been common territory since the Lawson revolution of the 1980s. It means that while the Conservatives offer what we might call old-fashioned supply-side policy, Labour offers new supply-side policy, which Rachel Reeves called “securonomics”. To my mind, it is a weak position, because it invites the question of where the money is to come from. Unless you believe there is a demand shortage, you cannot face that problem, and it has been followed by the withdrawal of the pledge to spend a large sum of money on green investment.
I remind the House that practical men are all slaves of economists—who said that? Economics will have to do better to provide a philosophical underpinning for public policy.
Lord Leigh of Hurley (Con)
My Lords, I join in the congratulations offered to the noble Lord, Lord Kempsell, on an excellent and inspirational maiden speech. I welcome this Budget as yet another example of prudent management of our economy while trying to stimulate growth which—I am afraid I disagree with the noble Lord, Lord Skidelsky—comes mainly through lower taxation wherever possible.
The Chancellor is under huge constraints from all sorts of directions, not least the OBR. The OBR this year had at least the grace to say:
“Inflation has receded more quickly than we expected in November and markets now expect a sharper decline in interest rates. This strengthens near-term growth prospects and should enable a faster recovery in living standards from last financial year’s record decline”.
Despite that, however, it seemed to impose a rigour on the Treasury which has frustrated it from being more generous in reducing the tax take and thus reducing the take from the state which we all want to see—certainly, on this side of the House, as was most eloquently put by the noble Baroness, Lady Noakes.
We all understand why the OBR was created. It followed a spending spree when Gordon Brown took the government debt in July 2007 from 35.5% of GDP to 56.8% in just two years. It was the beginning of all our difficulties. The noble Lord, Lord Desai, who is not currently in his place, frequently reminds us that comparing debt to income, as we always do when quoting the level of government debt, is not the best way of evaluating debt. However, many have commented that the OBR is now so obsessed with fiscal headroom that it distorts all decision-making.
Who predicted Covid, Ukraine or the Middle East war? How can anyone reasonably claim to predict what will happen in some five years’ time, least of all economic forecasters, who, as JK Galbraith reminded us, are there to make astrologers look respectable?
The forecasting errors over the years have been enormous—some £400 billion out over the last two decades, according to some—and this dependency on the OBR is no longer healthy. We must look at better ways to allow sensible policymakers to take a view on the forecasts and determine what they think is right, rather than just hoping that a few folk in the OBR, which has a very weak track record, might have cracked it this time. The OBR itself says:
“We continue to emphasise the uncertainties around our forecast in the light of rapidly changing economic conditions and the possibility that any of our key judgements could prove significantly too optimistic or”
too
“pessimistic”.
Turning to specifics, as the chairman of the Finance Bill Sub-Committee, which is a sub-committee of the Economic Affairs Committee of your Lordships’ House, I welcome HMRC’s decision to create an expert advisory panel to advise it on what is true and proper research and development. To remind your Lordships, the latest estimate of the R&D tax credit costs is some £6.5 billion, and there is so much fraud and inaccuracy in the claims in respect of R&D that HMRC’s own accounts had to be qualified over this specific uncertainty.
The change in the non-dom regime may not be quite as harsh as one might have first thought from the Chancellor’s speech. With the transitionary rules and overseas work relief being retained, and the rebasing of capital gains tax to 2019 values, it might not be too bad. Certainly, the ability to bring into the UK stockpiled gains outside of trusts at 12% is helpful, and the taxation of protective trusts has to be the right step forward if the scheme is going to work. Likewise, the inheritance tax scheme for non-doms seems fair, and a 10-year window is quite generous. I am pleased to see that the Government are open to extensive consultations on this issue, which I believe have already started. The OBR reckons this will yield some £5 billion a year, but with migration, as will inevitably happen, and other tax-planning measures, this will drop by some £2 billion to a net £3 billion, in its opinion. It is very hard to know how it could possibly have arrived at this. As it acknowledges itself, it really does not know.
We know that this deprives Labour of one of its main sources of extra income—albeit that it may have spent it several times over. It leaves Labour with only VAT on schools, which will probably lead to a net increase in cost to the Treasury, as we heard in Oral Questions this afternoon, as pupils transfer to the state system; and with taxation on carry at higher rates, which I hear Labour is already rowing back on, as it realises it will not yield extra revenue. It would be good to learn from the Labour Front Bench today, or soon, how it plans to raise extra taxes for all its extra expenses, as it is clear that its employment proposals will almost certainly lead to a huge increase in unemployment, as they always do with each and every Labour Government, meaning more strain on government resources.
I will touch on what was not in the Budget, and what might have been. I will spare my noble friend a plea for a digital services tax to try properly to tax online retailers such as Amazon, as her predecessors have clearly decided against this. I will also spare her any further reference to, as she puts it, my favourite minority sport, EIS. Again, there was nothing in the Budget, which there should have been, to raise thresholds and reduce restrictions now we are free from the yoke of the EU.
Turning to VAT, I worked with a number of Peers from across the House on the Economic Crime and Corporate Transparency Act, which was a great success in tightening up Companies House after the registration of some 11,000 companies to one flat in Wales. However, we really did not focus on why people were doing this. The answer is, of course, to evade—not avoid—VAT.
Great progress has been made in forcing online offshore retailers to pay VAT, but we really are not done yet. The National Audit Office has started an investigation into this area, and I wish it well, as we have seen many examples of companies using other people’s VAT details—even companies that are shown as not trading on Companies House. There are hundreds of companies all connected to one source of stock, with each company staying below the radar and folding if caught. The issue has not been dealt with and remains a problem.
One thing I ask my noble friend to consider is removing VAT checks on items valued £135 or less entering the UK. This is not helpful, and there is huge evasion going on. HMRC assumes that any non-UK seller who sells into the UK will sell on an online marketplace, where VAT is now collected, or register for VAT in the UK and pay the VAT direct to HMRC. This is just not happening. It is a ridiculous assumption, and there is nothing that will make a non-UK seller register for VAT in the UK, particularly if it sells on websites or marketplaces outside the UK. It is an enormous gaping hole in the UK’s virtual customs border, and it is astonishing it was ever allowed. Other European countries have removed this £135 exemption, and we should as well. I appreciate it is a bit much to ask my noble friend for a response today on this matter, which is not covered in the Budget, so I look forward to a later reply.
Finally, I end with a sentence from the Chancellor’s speech, remarked upon by my noble friend Lady Noakes, which should be cut and pasted on every wall in the Treasury:
“The Treasury and the OBR have … concluded that if we reduce the higher 28% rate that exists for residential property, we would in fact increase revenues”.—[Official Report, Commons, 6/3/24; col. 849.]
Lord Sikka (Lab)
My Lords, I too welcome the noble Lord, Lord Kempsell, to this House and look forward to hearing from him again very soon.
For the last 14 years, seven Chancellors, carrying red boxes rather than red noses, have promised to rejuvenate the economy, eradicate poverty, cut taxes and improve public services. What they have actually delivered are lower living standards, higher taxes and worse public services, and they have transferred wealth to the rich. This year’s Budget is no different.
No one can grow an economy by depressing household incomes. The real average wage is stuck at the 2007 level. In February 2024, according to the ONS, the median annual pay was £27,972. The Joseph Rowntree Foundation estimates that a single person needs an income of £29,500 to have a minimal standard of living, and a couple with two children needs at least £50,000. A large part of our population is therefore below the level of a decent standard of living.
Rather than helping, the Government have piled on the agony. Since March 2021, 4.2 million more individuals have been dragged into paying income tax because tax thresholds have been frozen. By 2028-29, another 3.7 million workers will be forced to pay income tax at the basic rate of 20%, another 2.7 million at 40% and another 200,000 at 45%. The Government will collect £41.1 billion extra, which no doubt will be handed to more billionaires.
A rise in personal allowance at least in line with inflation would have helped lift millions out of poverty, but the Government chose not to do that. The 2 pence national insurance cut gives zero benefit to the 17.8 million adults with an income below £12,570. When I raised that point with the Minister on 21 February, she said:
“Does the noble Lord want me to give them a tax cut for taxes that they do not pay?”—[Official Report, 21/2/24; col. 665.]
I have news for the Minister: the poorest fifth pay 28.3% of their disposable income in indirect taxes such as VAT, whereas the richest fifth pay 9%. Can the Minister explain what the Budget offers to the 17.8 million poorest, and why indirect taxes such as VAT have not been slashed to help them?
The Budget extends the high-income child benefit threshold from £50,000 to £60,000, and the taper is extended to £80,000. Some 500,000 families will benefit by around £1,300 next year. In sharp contrast, the two-child benefit cap, which hits the poorest, depriving 402,000 families of around £3,200 a year, has been retained. Can the Minister explain why the two-child benefit cap has not been abolished?
Wages and salaries are taxed at the marginal rates of 20% to 45%, but capital gains are taxed at much lower rates. Instead of ending this discrimination against workers, the higher rate of capital gains tax on residential property disposals has now been capped, from 28% to 24%—a tax break for multiple property owners such as the Chancellor himself.
Recipients of capital gains do not pay any national insurance, even though they use the NHS and social care. Tens of billions of pounds can be raised by simply aligning the taxation of capital gains with the taxation of wages, but the Government do not want to upset their rich friends.
Since 2010, local council funding has been cut by 23.3% in real terms. Between 2010 and 2023, councils have sold 75,000 public assets for £15 billion to maintain some semblance of public services. Assets such as town halls, libraries, playgrounds and community and youth centres have been sold and are now lost for ever to future generations. That has enabled the Government to privatise numerous services by stealth, but young people now roam the streets and have nowhere to go. Can the Minister provide an estimate of the damage done to community building by the cuts to council funding?
The Government have raised the VAT registration threshold, but nothing has been done to simplify the anarchic VAT rules that are forcing many retailers to shut their shops. Here are some examples; I hope the Minister will take note. Toilet rolls are subject to 20% VAT, but caviar—a luxury—is zero-rated. Potato crisps have 20% VAT, but prawn crackers and tortilla chips are zero-rated. Cakes and biscuits are zero-rated, but if they are “wholly or partly covered” in chocolate they become subject to 20% VAT—I do not know what “partly” means here. There is 0% VAT on unshelled nuts but 20% VAT is levied on shelled nuts, with the exception of peanuts, even when they are out of their shells. Roasted nuts in shells are zero-rated for VAT, but if the shell is removed from the roasted nuts or they are salted, they become standard-rated for VAT. If the nuts are toasted, they are free from VAT altogether. Can the Minister explain to the House what the principles are here and why, after 14 years in office, the Government have failed to simplify the VAT rules, which would reduce administration costs for retailers by millions of pounds?
Overall, the Budget will do absolutely nothing to chart a course for a future that we would be proud to pass on to our future generations. It is simply carrying on with the same misery of the last 14 years.
Baroness Moyo (Con)
My Lords, like many others, I saw some encouraging measures to address investment in Britain in the Chancellor of the Exchequer’s Spring Budget. There is, after all, a widely recognised view that Britain needs much more investment to power its economic growth plans. In this debate, I will reflect on what more needs to be done to make the UK an attractive destination in the eyes of investors, noting that a burden of regulation and bureaucracy is not an attractive elixir. My comments are influenced by my roles as a corporate board member and a member of the Oxford University endowment investment committee, as I have disclosed in the register of interests.
We are all familiar with the prevailing narrative of the UK’s anaemic economic growth. Although Britain’s GDP doubled in the generation from 1995 to 2020, with economic growth averaging 3% per year, the outlook for the years ahead is weak. Specifically, UK economic growth is not expected to exceed 2% between now and 2028, according to the IMF. Meanwhile, the Government’s policy levers are hampered by high public debt and deficits, notwithstanding the constructive trend line mentioned earlier. For example, at the end of September 2023, UK government debt was 100% of GDP, compared with less than 40% of GDP 20 years ago. Of course, the economy remains plagued by a cost of living crisis, with inflation remaining stubbornly at 4%, twice as much as targeted by the Bank of England—things that we are very familiar with. The economy is further constrained by interest rates at 5.25%.
However, it is not only the UK’s macroeconomic picture but the UK’s investment landscape that is challenged. Put simply, Britain is not attracting sufficient capital from investors—retail, institutional, domestic or international—to keep the UK’s companies and capital markets as strong as they should be to propel economic growth. As the Chancellor himself acknowledged, domestic share ownership by institutional investors, such as UK pension funds, is worryingly low, having fallen from 32% in 1992 to a record low of 1.6% in 2022. As someone who grew up in the emerging markets, people always said to me, “Before you invest, think about what the locals are doing”. The fact that even UK pension funds will not invest in this economy, for whatever reason, is an incredibly damning sign.
Furthermore, just 23 initial public offerings took place on the London Stock Exchange in 2023, the lowest since 1995. Think about that for a moment: we have had a pandemic and a financial crisis, and last year was worse for IPOs than any of those periods. International investment flows are also bleak; for example, foreign direct investment into the United Kingdom was just 1.4% of GDP in 2022, according to the World Bank. That contrasts with the period of 1995 to the 2008 global financial crisis, when UK foreign direct investment was regularly 5% or more of GDP.
According to a recent study, UK equities have been trading at a 40% discount to stocks from the rest of the world, underscoring the lack of appetite from investors for investing in the UK. It is critical that UK companies can once again be at the forefront of investors’ minds when they are allocating capital and that the stock market becomes attractive to companies seeking listings. I welcome the Chancellor’s new measures to channel more investment into UK equities and to introduce a new UK ISA to support savers. That has the potential to attract up to £4 billion a year of investment capital from retail investors.
I am also aware that the Chancellor has previously laid out commitments to attract higher levels of pension fund capital to unlisted UK companies, particularly in his Mansion House speech. Some have raised the question of whether it is right to compel investors to allocate capital to UK equities or whether it is in fact better to incentivise them. With that question in mind—and recognising my noble friend the Minister’s earlier comments on full expense leasing, small business support and VAT threshold changes—I would like her to state what specific plans this Government have to address the UK’s underperformance in attracting investment. What specific plans do the Government have to incentivise institutional investors, both domestic and international, to allocate more capital to UK equity markets and UK companies?
Baroness Bennett of Manor Castle (GP)
My Lords, in introducing this debate and Bill, the Minister spoke—several times, I think—of a long-term plan. In the current political climate, that might be taken as a definition of optimism. Yet perhaps the Minister is right that what we are talking about is a long-term plan, because what we have heard and expect to hear from the Labour Benches is that they are broadly planning to follow the Tory economic plan. They will allow the rich to keep getting richer and to keep their ill-gotten gains, as my noble friend Lady Jones of Moulsecoomb so clearly and passionately set out. There are things that the Labour Party has said it will follow the Government on. It has pledged that it will not introduce a wealth tax if it forms the next Government, so it will not see the broadest shoulders bearing their fair share of the weight of repairing so many things that need to be repaired, as many noble Lords have said.
The Labour Party has said that it is not going to address the issues raised by the noble Lord, Lord Macpherson of Earl’s Court, about the inequality of taxation between wages and unearned income, something that has simply got worse and worse over the years to the benefit of the rentier class. Labour has also said it that does not plan to think about redistribution; instead, just like the Government, it is focused on growth. It does not acknowledge that borrowing to invest is sound economics. I find this, frankly, astonishing; the most recent Labour comments state that it intends to pay for its plans—for the NHS and school breakfasts —through savings to public spending. This is despite the state of our public services and our public infrastructure, as so many speakers reflected on. The noble Lord, Lord Lee, brought up potholes, which is in the traditional range of the Lib Dems, so I am going to refer to our public services being like ships holed below the waterline.
I have recently been reflecting a great deal on the NHS. Its treatment over recent decades is one of the great political failures in the UK. We have also seen, since Margaret Thatcher, an enormous failure from British politics to remember what the economy is for. It is there to serve people, to deliver a decent, healthy and economically and environmentally sustainable society. At the weekend, we had reports from head teachers from schools in the north-west about families that cannot afford a bed for their children to sleep in—that cannot afford cleaning products for the bathroom. We are talking big macroeconomic stuff, we are talking economic theory, we are talking figures—but we are doing that in a society where children do not have a bed to sleep in.
The noble Lord, Lord Lee, was just talking about the problems in our financial sector. The Labour Party has pledged to unashamedly champion the UK financial services sector, despite the fact that it is obvious we have too much finance—an unbalanced economy—and, of course, we are the global fraud capital. More finance means more fraud. That is a simple fact.
I am afraid even when it comes to the climate emergency, I find now, as opposed to a couple of years ago, considerable similarities between the plans of the Labour Party and those of the Government. The Labour Party had a green investment plan—£28 billion per year; you might remember it. It is not there any more. Yet a recent London School of Economics study from a group of leading economists said that the UK should invest £26 billion per year—a similar figure—to revive prosperity. It said that investment in energy infrastructure, transport and the natural environment would have a rapid boosting effect, with public investment at that level generating double the returns for the private sector.
That is the big-picture stuff, but what about something that really deserves more attention? That is fuel duty. I do not know where the sudden burst of optimism came from in the OBR after the last fiscal event, when it based its forecasts on the assumption that fuel duty would be raised despite the fact it has not been raised since a freeze was introduced as a temporary measure in 2011. That and the 5p cut in fuel duty have cost the Treasury £90 billion since 2021. Figures just out today point out that, with the rise in electric cars, 2025 will see the absolute level of fuel-duty returns to the Government fall. In 2011, fuel duty was 4.5% of gross receipts. In 2023, it was down to 2.4%—and all that for the grand saving for the median driver of £13 per month.
What could we be doing instead? One of the answers—beyond local buses, which desperately need investment—is railways. My noble friend Lady Jones and I have asked many Written Questions to the Government about railway upgrades that would allow hundreds of thousands of people to get off the roads and on to rail. I have a question for the Minister, who is currently not in her place: given that there were no announcements in the Budget about railways, am I wrong to suggest there will be no significant progress with the Restoring Your Railway Fund and other rail programmes before the general election? Practical examples include a rail capacity upgrade at Haughley and Ely junctions, where Adrian Ramsay and the Suffolk Chamber of Commerce have been calling for progress. The Government said that they are committed to these upgrades, but where is the money? Another area worth probing is the Stonehouse Bristol Road station, which will unlock a direct connection between Stroud and Bristol. The Green-led Stroud District Council submitted a strategic outline business case in autumn 2022, yet it has been stonewalled when asking for updates from Ministers. It hopes they will arrive in due course.
I declare my position as a vice-president of the Local Government Association. The household support fund was due to lapse on 30 March this year, but 190 council leaders wrote to the Government begging for this essential fund to continue for a year so that they could plan. What did we get? It was better than nothing: we got six months, so in six months the councils will have to come back with the begging bowl again. It is not exactly a long-term plan.
Lord Horam (Con)
My Lords, as an economist as well as a politician, I have always believed that the economy should work for everyone. As a northerner, I am also keen on levelling up, because I am conscious that the rest of the country has fallen behind London and the south-east over the last few decades. From that perspective, I thought it was a good Budget, and the points were made by my noble friend Lady Vere with her usual vim and vigour.
Despite one slug of money for Canary Wharf, there was a lot going for many provincial areas where it is badly needed and will be greatly appreciated. The 2p off national insurance was a sensible help to ordinary people when the economy needs a bit of a stimulus. There was also £3.4 billion of help for improving productivity in the NHS. As a former Health Minister, I can see where that can be used, although it will probably be misused in some respects. As we know, public sector productivity is a big problem. Raising some money by abolishing the current regime for non-doms was fair. I have always thought that the nom-dom arrangement was both antiquated and indefensible.
The Government can also take credit for the heavy lifting of taxation over the last few years. The general level of tax needed to be raised, and a pragmatic Conservative Government have done what is necessary. That is conservativism at its best: realistic and responsible. The level of tax is high by UK standards but still a lot lower than our European neighbours. Therefore, in the short term, the Budget gains high marks, but if you take a longer-term perspective, I am afraid some of the remarks made by the noble Lord, Lord Eatwell, cannot be ignored.
On nominal gross domestic product, we are the sixth-richest nation in the world. But looking at GDP per capita, we drop down to 21st. If you measure GDP per capita by purchasing power parity, we drop even further down to 27th. The Taiwanese and the Singaporeans are now richer than the Brits, and the South Koreans have caught up. In Europe, we are the second-richest nation after Germany on nominal GDP, but 12th on GDP per capita. If you combine that with the huge increase in inequality that has developed over the last few decades, you can see why many citizens in the provinces are pretty disenchanted with politics and politicians. Just look at the result of the Rochdale by-election; that will tell noble Lords a great deal about ordinary people’s view of politics and politicians. What can we do about this? The first thing to do is get the framework for policy right. Only if you get the framework right do you get the right policies.
The first thing I would do is to abolish the Office for Budget Responsibility. That was put in place to assure the markets that the Government were being responsible, but it has now become a problem in itself. As Martin Sandbu said in the Financial Times, it encourages “opaque and erratic” political games and
“undermines serious debate about what the economy needs”.
As my noble friend Lord Leigh pointed out just now, it also quite often gets its forecasts wrong. I would replace it with something like the Council of Economic Advisers, which helps the US President. This should be staffed by businesspeople and economists with a remit to enhance economic growth. Positioned like the OBR, it should be able to nudge the Treasury away from for ever balancing the books in a candle-end sort of way to taking a more growth-oriented view. I believe that the markets would respond well to a Government who were obviously doing sensible things rather than tying themselves to the Procrustean bed of the OBR.
Incidentally, I think we should have only one Budget every year. The noble Lord, Lord Hammond, tried to do that but got swept away by the politics. Having more than one Budget every year reinforces uncertainty and often produces underexamined tax changes and too many short-term spending decisions.
We also need a worked-through industrial strategy. Alongside the macro view of the council of economic advisers, this should be looking at the micro view of where growth can be best assisted by public support. Greg Clark was quite right about that when he was the Minister responsible for business affairs; Kwasi Kwarteng was quite wrong.
We also need more urgent action on skills. This has been said often enough, but we still have not given this the priority and financial support required. The apprenticeship levy is not working well enough, and we still do not fund further education as well as we could.
Finally, we need to do something about the large number of our fellow citizens who are not working: 9.3 million are not in work. The problem has been made worse by Covid and it needs urgent analysis, as the noble Lord, Lord Lamont, pointed out. Britain is a great place to do business, as I know from personal experience, having helped to establish a very successful company. But the fact is that we are not fulfilling our potential and we will not do so, despite this excellent short-term Budget, until we have a firmer, clearer and more comprehensive long-term strategy.
The Lord Bishop of Worcester
My Lords, I congratulate the noble Lord, Lord Kempsell, on an excellent maiden speech, which was thoughtful and brief—and, as we all know, concision is next to godliness.
I have learned a lot in this debate, including the operation of the VAT regime on nuts—probably more than I would have wanted to have known. However, I will not concentrate my remarks on that.
It is clear that the Chancellor had a difficult task in producing the Budget, as has been observed by one of his predecessors, the noble Lord, Lord Lamont, who knows better than anyone. I want to pay tribute to the many good things in the Budget: the continuation of the household support fund, the reform of non-dom status, the increase in public services spending by 1% above inflation, and the welcome reduction in national insurance, to name but a few. However, I was very disappointed by one lacuna, to which I want to address my remarks now. That is, that the aid budget was not increased.
The Government have consistently maintained that they would restore the UK’s aid budget to 0.7% of GNI “when fiscal circumstances allow”. I believe I speak for very many in expressing dismay that the Chancellor did not use any of his fiscal headroom to do so, thus restoring a manifesto commitment. The dismay is felt because of the impact of the cuts, which have been set out by the Independent Commission for Aid Impact. It noted that cuts have led to less focus on poverty reduction in trade programmes, and that programmes focused on gender equality in places where this is much needed have been heavily impacted.
The starkest impact of the cuts has been on least-developed countries. The amounts of bilateral overseas aid going to least-developed countries dropped by £961 million in 2021—that is 40%. That is far greater than those to lower- and middle-income countries, which received a cut of £339 million, or 29%, and upper-middle income countries, which saw reductions of £117 million, or 17%. Of the 10 countries that received the biggest cuts, six were lowest-income countries. This is surely a heartbreaking way to prioritise overseas aid spending. As if the cuts were not bad enough, we now know that they were focused on countries least able to respond to or mitigate a reduction in funding.
If the Government will not restore a manifesto commitment when fiscal circumstances allow, which surely must be now, I am not sure what they have in mind. The White Paper on development had some good themes and ideas, but without a funding boost it is extremely difficult to see how Britain can be re-established as a world leader with a great reputation for development—because that reputation has been severely damaged of late. The White Paper also does not promise any primary legislation, which left many in the development sector wondering what its purpose was.
The 0.7% of GNI commitment is not just about the actions we take but the aspirations we set ourselves and our reputation for sticking to our commitments. That 0.7% was and remains symbolic of our values and our commitments to some of the poorest people on the planet. We do them and our international reputation a disservice by continuing to break a basic promise in this way.
Baroness Sheehan (LD)
My Lords, my contribution to this debate will be from the perspective of my role as chair of the Environment and Climate Change Committee and will ask whether the measures in the Spring Budget demonstrate that this Government accept the need for action today if we are to avert far greater costs tomorrow, both to mitigate against climate change and to put in place measures to reduce its impact.
Just yesterday, I received in my inbox the FT “Climate Capital” newsletter, titled: “Are we the boiling frog?” The opening paragraph says:
“Since March 2023 oceans have begun to warm to previously unseen levels and now we’ve hit 365 days of consecutive daily highs. Every day of the past 12 months has set a global record. Let that sink in. The global average sea surface temperature tipped to the 21.2C record this week. While the cyclical El Niño warming effect of the Pacific Ocean is starting to show signs of weakening, global ocean temperatures remain unusually high”.
Jim Skea, chair of the UN body of scientists known as the Intergovernmental Panel on Climate Change—IPCC—said recently that the rise in the average global temperature over the past year meant that the world was in “unknown territory”.
Just as new heat records are reached, it is ironic that companies are taking a step back in terms of corporate accountability for global warming. The FT “Lex” column said a few days ago on 15 March:
“Corporate backsliding … can’t be justified”.
Companies, however, argue that Governments have not created the policy frameworks needed to achieve the emissions reductions. Do they have a point? Judging by the lack of ambition on green matters demonstrated by this Budget, I would say that they do.
Given the incontrovertible real-life data, not modelled forecasts, on ocean warming—to take just one key indicator of global warming—one would have thought that the opportunity presented by the Budget would work to deliver a financial environment that would grab the challenge of transforming our economy to make it fit for purpose to meet our statutory green commitments.
Why is this not the case? Economically it makes sense. The UK has already demonstrated that growth and decarbonisation can go hand in hand. We have reduced our greenhouse gas emissions by nearly half since 1990, while our GDP has increased by around 70%. More recent analysis by the Energy and Climate Change Intelligence Unit and CBI Economics found that the net-zero economy saw 9% growth in 2023 and that the economic opportunities created by the net-zero economy are benefitting all UK regions. Net-zero jobs are also more productive—around 1.6 times higher than the UK average.
The latest Climate Change Committee progress report warns that game-changing interventions from the US and Europe are leaving the UK behind. Global investment in clean energy alone is estimated to have risen to $1.7 trillion in 2023. The Government’s announced increase in the green industries growth accelerator of £120 million—taking the total to £1.1 billion—is just not in the same ballpark. A report by the UK Sustainable Investment and Finance Association found that 87% of businesses agree that policy changes to planning rules, grid capacity and energy price mechanisms could unlock £115 billion of investment and allow the UK to compete globally for green investment.
Let us not forget the risk of not protecting our natural capital. The Government’s third national adaptation programme outlined that, without early action to adapt to physical climate risks, the costs to England’s economy could be between 1% and 1.5% of GDP per annum by 2045. However, acting now to adapt to climate impacts could deliver up to £10 in net economic benefits for every £1 invested.
This Budget is a missed opportunity to lay the framework needed to invest in our future. The tax system is an important tool, alongside clear policy, regulation and spending, for supporting the transition to a low-carbon and nature-positive economy.
In conclusion, I have three questions for the Minister. First, will the Government reconsider producing a tax road map to make it clear to business and consumers that the fiscal trajectory supports net zero, allowing an adjustment period for where there will likely be greater tax costs? Secondly, how do the Government measure and evaluate the effect that taxes have on their environmental objectives? Thirdly, in the net-zero growth plan of March 2023, the Government said:
“HMRC will explore options to further strengthen the analytical approach to monitoring, evaluating, and quantifying the environmental impacts of tax measures, including their wider impacts”.
Can the Minister provide an update on this commitment?
Lord Northbrook (Con)
My Lords, I start by highlighting some positive decisions in the 2024 Budget. The 2% cut in national insurance is good. I also welcome the cut in capital gains tax and the increase in the limits for full and partial child benefit. The fuel duty freeze continuation is sensible. The introduction of the £5,000 annual ISA in UK shares is innovative. The new tax on vaping products has health benefits, as well as being a pragmatic measure. The increase in the VAT threshold for small businesses is also a good move. On the broader economy, the fall in inflation back towards its 2% target can be considered useful progress. That is the good news.
However, like my noble friend Lady Noakes, overall I found the Budget a big disappointment. With the party 20% behind in the opinion polls, it needed much more to change the public mood towards the Government. Opinion polls since the Budget have shown no change in this position. On the broader economic front, growth forecasts are disappointing. It is interesting to note that the OBR is much more optimistic than the Bank of England and slightly more than the independent forecasters surveyed in February. It is worrying that the OBR reports that 2022-23 remains the fiscal year with the largest year-on-year drop in living standards since ONS records began in the 1950s.
Looking in more detail at government income, I find it depressing that the tax take from business rates is forecast to increase by 33% in the next five years— a huge extra burden on already struggling businesses. When items such as welfare expenditure are forecast to rise by 38% and funded sector public pension schemes by 25%, it can be seen that the revenue is needed. However, business rates need reform to make sure that the larger out-of-town warehouses pay a fairer share and that smaller ones are not clobbered.
Further, on the government receipts side, the figures disprove the statement that, overall, taxes are being reduced for the individual. Of course this is the case with the national insurance reductions, but the freezing of tax allowances for the next five years much more than cancels that out. OBR figures show that the extra tax due in this period, due to fiscal drag, amounts to £187 billion, which is offset by the NI reductions only to the extent of £105 billion, hence taxpayers are on the hook for an extra £81 billion. Central government debt interest merely stabilises at a still worrying annual £110 billion in 2028-29, as against £111 billion in the last tax year.
On the government expenditure side, I note that, according to the OBR, the net cost to the taxpayer of unwinding quantitative easing, assuming interest rates remain the same as now, is forecast to be £104 billion. If gilt yields go up by 1%, the OBR says that this will increase to £157 billion; if they go down by 1%, it will be only £47 billion. This is a worrying extra black hole for the taxpayer. This is a huge incentive for any Government to keep inflation under control, so that interest rates may be reduced.
I turn to individual tax measures. I cannot see the sense in getting rid of the non-domiciled status. In my view, this was a political move to outsmart the proposed policy declared by Labour, without fully thinking through the economic consequences. The forecast of the extra tax gain is highly optimistic, as these non-doms can easily move to countries such as Italy and Portugal which offer them attractive regimes. The UK also loses the benefits of these non-doms running businesses and employing people, as well as VAT on their spending on goods and services. Does not the Minister believe that, overall, the UK is likely to lose tax revenue because of this move?
Secondly, I believe that the Government missed a huge opportunity through timidity by not changing inheritance tax. As the respected political commentator Andrew Pierce pointed out recently, when George Osborne announced in 2007 that the limit before IHT was due was to rise to £1 million, the Labour lead in the opinion polls collapsed and it stopped Gordon Brown calling a general election. Despite advice from Conservative Peers and others, the Chancellor brushed the idea aside—as I understand it, he felt it was too elitist a measure. I think he underestimated the overall popularity it might have gained, as evidenced by Osborne’s 2007 decision. Can the Minister comment?
The next disappointment was the failure to reinstate tax-free shopping for foreign visitors. In November 2020, the OBR forecast that the abolition would generate a £1.8 billion saving to the Treasury, with the caveat that the figures are highly uncertain. Why could not the Chancellors have continued the scheme to clarify this uncertainty? A key challenge for the OBR analysis, highlighted by economic forecasters such as Oxford Economics, is that the research did not examine the impact of TFS schemes on retail expenditure and its broad multiplier effects—for instance, increased economic activity in other sectors beyond retail, such as tourism and more job retention and creation.
The modelling by Oxford Economics of the decision’s impact suggests that the reintroduction of duty-free shopping would have a significant positive effect on GDP, tax yield and job creation. It is not just economic forecasting organisations that support this reinstatement. In August 2023, the Mail on Sunday stated that 350 retailers had backed its campaign—it is now up to 500— along with 40 Conservative MPs. Why should it not be introduced, even on an experimental basis? If I am asked how these tax changes should be financed, how about looking at the welfare budget, which is forecast to increase by nearly 40% over the next five years?
While the Labour Party would likely produce no better tax measures, this Budget was a chance to put blue water between the political parties. Sadly, after careful review, I feel that the Chancellor has missed a huge opportunity to demonstrate that we are a low-tax party. We seem to have forgotten this, as now, despite the NI cuts, we are the most highly taxed since the Second World War.
Lord Tugendhat (Con)
My Lords, in his great novel Anna Karenina, Tolstoy remarked that:
“Happy families are all alike; every unhappy family is unhappy in its own way”.
How true that is of the situation in Europe today. Whether one looks at the Netherlands, Germany, France or Sweden, one sees Governments and society coping with severe problems, economic and social, that are very similar to our own. I make that point because there is a tendency in this country, which has been reflected during this debate, to assume that the problems with which we are confronted are somehow unique to us and the result of particular British circumstances. That is why my noble friends Lord Lamont and Lady Lawlor, and the noble Lord, Lord Macpherson, were right to draw attention to how, in a variety of areas, the British economy has outperformed forecasts and performed better against other countries than many people suppose. I agree very much with the points that they made and will not repeat them.
In the short time available to me at the end of a long debate, I had intended to make only three points. Before I make them, I would like to refer to something which my noble friend Lord Horam said when he was talking about GDP per head and GDP itself. He linked what he was saying to the very considerable rise in equality in this country and the effect that this has had on people’s attitudes to their own position, as well as to politics in general.
I turn to my three points. First, I congratulate the Government on shifting the balance of benefits in favour of those of working age and away from pensioners. Pensioners have done very well in recent years, as I and many other Members of this House know from our own experience. However, as my noble friend Lord Lamont said, there is a great need to encourage more people back into work. Making work pay is an important part of doing that. It is an important carrot; sticks are needed as well, but it is a very desirable policy change to promote work in this way. An additional advantage is that, if we could encourage more people back to work, we would have less need of immigration in order to fill so many of our public services, especially the NHS.
My second point is to congratulate the Government on the £3.4 billion that has gone to the NHS, specifically to improve productivity. I spent some years as chairman of the Imperial College Healthcare NHS Trust. Although it was some time ago, I can see how important this initiative by the Chancellor is. The effects of digitising operating theatre processes could be dramatic— the same number of consultants could do an extra 20,000 operations a year. This is exactly the sort of initiative that the NHS needs, and it provides a precedent for other public services.
Having praised the Government on two points, I am afraid that my third point is to criticise. In the defence debate last September, I called for a start to be made in increasing defence expenditure. Since then, the world has become a good deal more dangerous, as a result of events in the Middle East. In their rhetoric, the Government recognise the change that has taken place and continue, quite rightly, to send considerable quantities of military equipment to Ukraine. They are quite right to do that, but the effect is to deny our own forces that equipment. It will take a long time to fill the gaps. The Government talk a great deal in other circumstances about the increased dangers in the world, but they are not putting their money where their mouth is. An ambition to increase defence spending to 2.5% when economic circumstances permit is all very well, but, unfortunately, the dangers to this country do not follow the same rhythm as our economic circumstances. I regret that the Government did not take advantage of this Budget to take a first step towards increasing our defence expenditure.
The fact that the Secretary of State for Defence cannot even fly anywhere near the Russian border because his aeroplane does not have the right kind of equipment to prevent the Russians interfering with it is one example of the situation that we are in. The embarrassments that are being caused by our aircraft carrier are another. I very much regret that the Government did not take a first step. I hope that my noble friend the Minister can say something about that in her wind-up.
Lord Sherbourne of Didsbury (Con)
My Lords, it is a great pleasure to follow my noble friend Lord Tugendhat. I echo many of the remarks made by other Members of the House, including the noble Lord, Lord Lamont, a former Chancellor of the Exchequer, the noble Lord, Lord Macpherson, a former head of the Treasury, and many others, in being very optimistic at the start of my speech.
The economy, which was so badly hit by the pandemic, the war in Ukraine and so on, is now beginning to show signs of recovery. Inflation is falling, interest rates look set to fall and the prospects for growth are good. There has been a positive reaction to the Budget. I have some quite interesting figures which show popular reaction to those proposals; the approval ratings range from 56 %, 63 % and 76 % to 81 %. I can only hope that it will not be long before these figures are reflected in more important opinion polls in the country.
There was an optimistic theme running through the Chancellor’s speech, and it was the same in the published Budget Report—the Red Book—although all 36 paragraphs of the executive summary had so upbeat a theme they were almost Panglossian: the best of all possible worlds.
However, I was struck by one other thing in the Budget Report. The text was not in black but in light grey—making it slightly more difficult to read. It is as if the Treasury were trying to tell us, “Well, it is not all black and white. The pale grey is sending a subliminal message that what we, the Treasury, say is nuanced with cautious subtexts”.
I will take one example: government borrowing. The Chancellor, in his speech, and my noble friend the Minister in her speech this afternoon, talked about falling national debt. It is forecast to fall every year from now until 2028-29. That, of course, is national debt, not the annual deficit, but what determines the national debt is the deficit—or surplus, if we ever get back to those days—and the deficit depends on two variables: revenue coming into the Government and spending by the Government. Both are highly variable.
Public spending depends on many events outside the control of government. We have seen already, as I have said, the pandemic, the war in Ukraine, and the oil and energy crisis. On the home front, much of the public spending is also outside government control. Here is something that the OBR says, which I think everybody in the House knows, and which should worry us all:
“The number of inactive working-age adults is … 9.3 million … 700,000 more than before the pandemic … Around one third of the working-age inactive population cite long-term illness as their principal reason for not being in the labour force”.
This should set alarm bells ringing, not just about the cost to the public purse, but about the nature and causes of these illnesses and the economic loss to the country. This requires serious analysis because, ultimately, it is unsustainable.
For these reasons and many others, the forecasts of public spending and borrowing are bound to become ever more speculative with every future year, which is why we need a substantial contingency reserve. This year, it is forecast to be £9.2 billion. Is this enough? Is it based on the recent experiences of the crises we have had?
Even without the predicted pressures on public spending there will be increasing further demands on the health service and, as my noble friend has said, on defence. Looming ahead there is one other horror, if there were a Labour Government—the rolling back of the trade union reforms brought in by previous Conservative Governments, which were broadly accepted by the Blair/Brown Governments but which would be repealed by a Starmer Government. I wonder whether the noble Lord, Lord Livermore, who served in No. 10 when Gordon Brown was Prime Minister, is a whole-hearted supporter of his party’s proposals to ditch these trade union reforms.
Finally, and quite separately, I make two simple pleas to the Treasury. First, despite the voluminous information published in the OBR report and in the Chancellor’s Budget Report—or perhaps because of it—it is sometimes difficult to find the most basic information. Hardly anywhere is there a table setting out clearly, side by side, government revenue and government spending. The nearest you get to it are the two pie charts stuck away in an appendix on the very last two pages of the Budget Report—pages 93 and 94. We need more of a plain man’s guide to help the general public understand the basic realities.
My second plea echoes what my noble friend Lord Horam said. It may be just me, but I am losing track of Budget Statements, Autumn Statements and Spring Statements. Again, this seems to make it more difficult for lesser mortals to understand the relationship between public spending and taxation. Surely it is possible to have just one Budget Statement a year setting out public expenditure, tax rates and government borrowing.
Baroness Kramer (LD)
My Lords, as the first of the winding-up speakers, I start with three very quick comments. To the noble Lord, Lord Kempsell, who is racing to get back into his place, I say: what an excellent maiden speech. But I suggest that his taste for the nitty-gritty in evaluation and analysis means that he is in the right House and the right portfolio. We look forward to his engagement in the future.
I say to my colleague, the noble Lord, Lord Lee, that his proposal that some of the NatWest shares currently in public hands should be shared with secondary schools as part of inspiring financial education and creating a new way of looking for so many of our young children is a brilliant idea, and I hope that the Government will take that up.
I say to the noble Lord, Lord Bird, who made those comments on social housing—in effect, that it should be a launchpad and not a trap—that that was an important piece of discussion in this debate.
Perhaps I should say sorry to the noble Lord, Lord Sherbourne, because of his most recent comments, but most normal people have already forgotten what is in this Budget. The Chancellor’s headline measure —a reduction in the rate of national insurance contributions—has been dismissed, as people realise that it is just a reduction in a relentless tax rise driven by the freezing of thresholds. Indeed, I quote the OBR:
“Tax as a share of GDP is forecast to rise to 37.1 per cent of GDP in 2028-29, 4.0 per cent of GDP higher than the pre-pandemic level”.
Meanwhile, public borrowing will increase by
“an average of £8 billion a year”.
Frankly, it leaves us in a fiscal vice.
The IFS—the Institute for Fiscal Studies—describes living standards as remaining “dismal”. I pick up on the excellent discussion of the noble Lord, Lord Horam, which others have mentioned, about GDP per capita by comparison with other countries. It is a woeful position to be in at this moment in time. Looking at a narrower group, pensioners, the Resolution Foundation forecasts that they will, on average, be £1,000 worse off per year by 2027-28.
My party will not oppose the national insurance rate cut, given the ongoing struggle of so many people with the cost of living. But the focus for the Liberal Democrats remains the dire state of the NHS and the missed opportunity in this Budget to provide it with the resources needed; closing loopholes in the oil and gas windfall tax, which noble Lords may remember was extended but the investment loophole through which everybody storms had been left wide open; attacks on share buybacks, as most of us wish to see investment not share buybacks, which have become increasingly popular; and restoring the levy on banks, which, frankly, have been raking it in thanks to high interest rates, and not passing it on to savers. All those kinds of sources could have helped us make a real difference on resources for the NHS.
However, we had two debates around most of those issues in February and I do not want to rehash all the things I said then—I am sure most people are tired of them. I want to look forward, and I do so with a certain real anxiety for what the UK faces. I want to understand what this Conservative Government plan for public services and for local government, recognising the dire state that most are in. We have a few pieces of information. The Government have instructed the OBR that real departmental spending on public services will fall by 1% of GDP over the next five years. According to the IFS, this means a fall in public capital and infrastructure spending of £18 billion a year in real terms, and a fall in day-to-day departmental spending for the unprotected departments, again in real terms, by £20 billion a year. That number is absolutely huge. I pick up the concerns of the noble Baroness, Lady Lister, about local authority cuts.
The Government constantly tell us that they have a plan for public services. What I am now asking the Minister is: show us that plan. When I look for where these public spending cuts will be replaced with new public productivity, the only thing I can really see is some vague notion that artificial intelligence or other kinds of digital change will deliver this kind of extraordinary efficiency. I share the scepticism of the noble Lord, Lord Lamont, about productivity improvements coming so easily, and the noble Lord, Lord Macpherson, told us how he had seen many an efficiency plan come and go. I say to the Government: tell us the plan and tell us in detail so that we can judge how credible that crushing reduction in expenditure and investment in public services is going to look.
We also have a promise from the Chancellor that national insurance will be abolished. It is not in the Budget, but in effect it accompanied it. That step would remove £46 billion a year in revenue from the Exchequer. Will that mean huge new borrowing? Will it be 7p on the basic rate of income tax? Will it again mean a decimation of public services? If so, which and when? That amount is virtually the whole schools budget, or that for justice and defence put together. We need to understand where the money to replace that national insurance abolition will come from.
Once, innocently, I thought the Government’s freezing of tax thresholds was a temporary, emergency measure, but it is now becoming clear to all of us that using threshold freezing to bring the lowest earners into tax is actually a key part of the Conservative plan. I remember the days of coalition: lifting tax thresholds to remove tax from lower earners was a central Liberal Democrat policy, and many on the Conservative Benches—I see some here; you know who you are—were furious with the Liberal Democrats for forcing it on the coalition because they felt very strongly that tax cuts should go to top earners, not people down at the bottom. It now seems this is actually the Conservative plan: to return to a focus on low-income people as a major source of new tax revenue. Indeed, it is well under way: we have seen the freezing of the thresholds and it carries on now for further years. Perhaps the Minister will openly confirm the change of direction: lower earners to pay more and more tax.
I end by turning to the vital issue of economic growth. The OBR is more optimistic than other forecasters, but even it sees only the most anaemic growth—here I pick up the comments of the noble Baroness, Lady Moyo—of 0.8% this year rising to 2% in the middle of the decade, and that estimate depends on immigration higher than previously anticipated. UK businesses are desperate for skills. Where is there anywhere in this Budget or in policy a proper reform of the apprenticeship levy? The Government announced some useful steps today, but they are not the fundamental overhaul that is absolutely needed to drive up the quality of skills in this country. The post-Brexit fall in trade intensity was initially forecast at 15%. It now looks as though the actuality is significantly worse. Our trade in services is strong, but the UK’s growth in goods trade is well below expectations and well behind the rest of the G7. That in turn has a huge impact on productivity.
Where is the trade plan that means reviving our trade with Europe? Let us not pretend that the new trade deals, although they are much vaunted, are more than, frankly, a rounding adjustment with some modest potential. Where are the mechanisms to seriously raise investment in UK businesses and infrastructure? Many in this debate focused on that issue—the noble Baroness, Lady Moyo, perhaps most particularly—but in a sense it was the subject of the speech by my noble friend Lady Bowles, focusing on investment trusts, which are a key vehicle that is disappearing because of slow government action. Where are these mechanisms to help us increase that investment? The new British ISAs and the Edinburgh reforms are useful but let us be frank: neither is a game-changer. The Government seem to have made some useful changes on the definition of SMEs, but could the Minister please tell us what the scope is of that and what the implications are? She can write if she does not have that to hand.
Behind this scattering of limited changes, there is no long-term policy certainty and no meaningful commitment to priorities. Every policy is unstable. That includes tackling the major crisis that my noble friend Lady Sheehan focused on: climate change. The number one request from businesses, according to research by the Business Magazine is:
“A clear and concise industrial strategy”.
Will the Minister please tell us why we do not have one?
We have a workforce shortage made far worse by NHS waiting lists of 2.7 million people. Others have talked about the huge number—9 million—who are of working age but inactive. The economically inactive range across the young as well as the old. As the noble Lord, Lord Sherbourne, said, most of them, or a very good number of them—one-third—are inactive because of long-term sickness. Few measures would drive our economy forward more rapidly than fixing the NHS, which is the mechanism to get so much of our inactive population back to work.
Andy Haldane, the former chief economist of the Bank of England, described these Budget measures as “macroeconomic marginalia”. I thought that a brilliant description. I suspect most of your Lordships agree. I say to the Minister: this is not a Budget that meets the needs of our times.
Lord Livermore (Lab)
My Lords, it is a privilege to take part in this debate on both the Spring Budget and the national insurance contributions Bill, and to listen to and learn from contributions from so many genuinely expert noble Lords. I join others in congratulating the noble Lord, Lord Kempsell, on his excellent maiden speech, bringing his valuable first-hand experience of policy-making to your Lordships’ House. I look forward to his further contributions.
The Budget was delivered against the backdrop of an economy that had fallen into recession. Its context was an economy that is now smaller than when the current Prime Minister took office. It revealed forecasts for an economy that, rather than bouncing back, will do little more than bump along the bottom this year.
In his Budget Statement, the Chancellor set out his own definition of economic success—the yardstick by which he wishes to be judged. He said he wanted
“not just higher GDP, but higher GDP per head”.—[Official Report, Commons, 6/3/24; col. 837.]
How should we judge the Government against this measure? In the past year, GDP per head shrank in every single quarter. In fact, the latest ONS figures show that it has fallen for seven consecutive quarters. In per capita terms, our economy has not grown since the first quarter of 2022. As my noble friend Lord Eatwell observed, that is the longest period of stagnation that Britain has seen since 1955.
This year, GDP per capita is again set to shrink, not grow. As a result, it will be lower at the end of this year than it was at the start of this Parliament. In the Budget, we learned that forecast GDP per capita growth has been revised down in four of the next five years—not perhaps the success the Chancellor was looking for.
Many noble Lords mentioned the comparative performance of the UK economy, including the noble Lords, Lord Lamont of Lerwick, Lord Tugendhat and Lord Sherbourne of Didsbury, and the noble Baronesses, Lady Goldie and Lady Lawlor. Our country has undoubtedly gone through a difficult time these past few years, and the origins of many of the crises we have faced are, of course, global: pandemic, war, and the energy crisis. But other countries have also experienced those shocks. If the UK economy had grown at the OECD average since 2010, it would now be £140 billion bigger than it is today. That is equivalent to £5,000 per household every year and would mean an additional £50 billion in tax revenues to invest in our public services.
Why have we fared so much worse? Because each time a crisis has hit, Britain has found itself acutely exposed due to the choices this Government have made over 14 years: the austerity mentioned by the noble Lord, Lord Skidelsky, which choked off investment; then Brexit without a plan; and then the disastrous mini-Budget, which crashed the economy, sending interest rates soaring to a 15-year high, and saw mortgage payments rise by an average of £220 every month.
Yet, having crashed the economy, the Government seem not to have learned the lessons and are now apparently intent on re-running the disastrous Liz Truss experiment. As my noble friends Lady Lister of Burtersett and Lord Davies of Brixton said, at the end of his Budget Statement the Chancellor, reiterated by the Prime Minister as recently as today, announced a £46 billion unfunded plan to abolish national insurance contributions. Both the Prime Minister and the Chancellor have repeatedly refused to explain how this will be funded. Will it be paid for by yet more tax rises for working people? The Chancellor refused to rule out raising income tax to pay for it when asked to do so by the Treasury Select Committee. Will it be paid for by higher borrowing? Or will it be paid for by cutting spending on vital public services—our schools, hospitals and police?
There are also genuine concerns about pensions that need to be addressed. National insurance contributions determine people’s entitlement to the basic state pension, as well as other contributory benefits. If national insurance contributions are scrapped, how will working people know what their future entitlement to the state pension is? If the plan is instead to merge national insurance and income tax, what will this mean for pensioners’ tax bills, including the taxes they pay on their savings?
The Government’s previous reckless and unfunded tax plan crashed the economy, and working people are still paying the price. Taxes are still rising, prices are still going up in the shops and mortgages are still higher. Britain cannot afford to repeat that ill-fated experiment. We support tax cuts for working people, but in order to be sustainable and genuinely make people better off, they must be fully costed and fully funded. This is an irresponsible, unfunded spending commitment without any plan to pay for it, and which risks crashing the economy all over again. And once again, it will be working people who pay the price.
Many noble Lords focused today on the cuts to national insurance contained in the Bill that we are also debating, including the noble Lords, Lord Macpherson of Earl’s Court, Lord Young of Cookham, Lord Horam and Lord Northbrook, and the noble Baronesses, Lady Goldie and Lady Noakes. We have been consistent over the course of this Parliament in saying that taxes on working people should be lower. Two years ago, when the current Prime Minister tried to increase national insurance, we opposed it. We supported the last cut to national insurance, and we support the measures announced in the Budget, contained in this Bill, to bring it down by a further 2%.
Ministers have previously been rebuked by the chair of the UK Statistics Authority for repeatedly making misleading claims about their record on tax. So let us be clear: these measures come in the context of a rising, not falling, tax burden. The tax burden is now set to rise every single year for the next five years, rising to the highest level in 70 years, making this the biggest tax-raising Parliament since the Second World War.
While the cuts in national insurance are welcome, they are more than eclipsed by the tax increases the Government have previously announced. Tax thresholds are still frozen, increasing taxes by £41.1 billion over the forecast period, creating, as my noble friend Lord Sikka pointed out, 3.7 million new taxpayers by 2028-29. As a result, for every £10 the Government are taking in higher tax, they are giving only £5 back, and by the end of the forecast period, the average family will be £870 worse off. As Paul Johnson, the director of the Institute for Fiscal Studies, has said:
“This remains a parliament of record tax rises.”
As the Resolution Foundation has said, this will be the first Parliament ever to see living standards fall.
Having spent years defending the indefensible, in the Budget the Government belatedly performed a welcome U-turn and recognised the importance of closing the non-dom tax loophole. We have long made the simple patriotic argument that, if people make Britain their home, they should pay their taxes here too. In the Budget, the Office for Budget Responsibility confirmed that the steady-state revenue raised by the non-dom policy is £3 billion per year. So why did the Government not U-turn sooner? My right honourable friend the shadow Chancellor first called for that loophole to be closed two years ago, meaning that we have missed out on £6 billion in tax revenue—money that could have been invested in our public services.
If further proof were needed that Labour is winning the battle of ideas, it is the further extension of the time-limited windfall tax on the oil and gas producers. Yet, even now, the Government have still left gaping loopholes, meaning that many energy giants will still pay less in tax.
We are under no illusion about the scale of the challenge we may inherit, nor the scale of the task of rebuilding our economy and our country. Labour’s economic plan will be built on the pillars of stability, investment and reform: stability, guided by strong fiscal rules and robust economic institutions; investment, brought about in partnership with business through a new national wealth fund to invest in the industries of the future; reform of our planning system and the skills system—and a genuine living wage.
In contrast, the stark reality of this Budget is clear: taxes rising, living standards falling, growth stalling. The harsh reality the Government must face is that the damage is done. Nothing they can do now will compensate for the fact that people are worse off: working people paying more, pensioners paying more, homeowners paying more.
The questions people ask ahead of the next general election are simple: are they and their families better off after 14 years of this Government? Do our schools, hospitals, police or transport work better than when this Government came to office 14 years ago? Frankly, does anything in our country work better than it did 14 years ago? The answers are always a resounding “No”. Only Labour can provide the change our country so desperately needs.
Baroness Vere of Norbiton (Con)
My Lords, it is a pleasure to close today’s debate on the Spring Budget and the Second Reading of the NICs Bill. As anticipated, it has been a spirited debate with very thoughtful contributions from all Benches. I am particularly grateful for the support of noble Lords on the Benches behind me—or some of them, anyway.
In particular, I welcomed the contribution from my noble friend Lord Kempsell. His maiden speech was excellent, and I appreciate his nerdy focus on the evaluation of public spending; there cannot be enough nerds in your Lordships’ House. The Evaluation Task Force of which he spoke has already proved very useful in thinking about the evaluation evidence we use at the heart of all government decisions. It was used during the spring 2021 spending review, and I am sure it will continue to be key in future decision-making.
I was very much hoping that the noble Lord, Lord Livermore, would respond to the challenge from the noble Baroness, Lady Bennett, and set out how the Labour plan—I call it a plan but that might be stretching it—is different from the well thought-through plans of this Conservative Government. Once again, sadly, it was not forthcoming.
The noble Lord, Lord Livermore, bemoaned the fact that mortgages are high—I am not sure he understands why interest rates are high; it is to bring down inflation—and he was concerned about prices going up in the shops. I am sure he recognises that wholesale prices going down in the shops across the board is actually a very bad thing, but I will leave that there. I will say that when the Chancellor delivered this Spring Budget the markets were stable, there were warm words all round, and I think it was the sort of Budget that we needed.
It is worth reflecting on growth, which many noble Lords have talked about. Many noble Lords have reflected that the performance recently demonstrates that the economy has turned a corner, and that reflects the decisions that this Government have taken. I think the doldrums narrative and some of the words being used by the Opposition are not landing any more because they do not quite reflect what is going on in reality. My advice would be to find some slightly different wording there.
We know that our economy suffered, like other economies. My noble friend Lord Tugendhat talked about the similar internal factors and wider externalities that impacted many other economies. We also know that the combined impact of the Autumn Statement and the Spring Budget will provide a permanent 0.7% increase in the level of potential output by the end of the forecast.
There are many factors that go into GDP per capita. This Government are going to focus on how we can improve our GDP per capita, and I will come on to that in due course, but it is important that we look at wider factors as well. For example, real incomes have been growing stronger than expected this year. Real wages are now higher than pre-pandemic levels and have risen for the past seven months. The OBR now expects living standards, as measured by real household disposable income per person, to grow by 0.8% in 2023-24 and to continue to grow in all financial years over the forecast horizon. I hope the noble Lord, Lord Sikka, will at least welcome that, if almost nothing else that I have to say today.
My noble friend Lady Lawlor noted the impact of migration, as did a number of noble Lords. We are clear that migration must always benefit the UK. The UK has experienced unprecedented levels of migration since the Covid pandemic, which is why we have introduced our five-point plan. We need to think about the extent to which we support our important public services such as health, social care and education but to balance that by ensuring that we attract the best and the brightest. Highly skilled migrants contribute highly to the UK’s tech sector: 49% of the UK’s fastest- growing businesses and nine of the UK’s 14 unicorns have at least one foreign-born co-founder.
To come back to the issue of increasing the number of people contributing to the GDP of our nation, the question of getting the inactive back to work was raised by my noble friends Lord Lamont and Lord Tugendhat and the noble Lord, Lord Skidelsky. It is really important that we encourage these people back to work. That is why in the 2023 Autumn Statement the Government announced a new back to work plan, worth more than £2.5 billion, to expand employment support for the long-term sick and disabled—that includes people who have poor mental health—as well as support for the long-term unemployed. This built on a £7 billion employment package previously announced in the 2023 Spring Budget. We recognise that there is a problem that needs to be fixed. I recognise that there is probably not one silver bullet but, my word, if we can make some inroads into getting those people back into meaningful employment, that really will be a game-changer.
On inflation, I think all noble Lords will agree about the work of the Monetary Policy Committee at the Bank of England in keeping interest rates high in order to reduce inflation, which sadly has a knock-on impact on mortgage rates. We welcome the OBR’s forecast for where we think inflation is going to be. I listened with interest to the contribution from my noble friend Lady Lawlor. I will read with interest the recommendations of the economic committee that she mentioned, and the Treasury will respond as appropriate.
On the point raised by the noble Lord, Lord Skidelsky, the impact of the disruption in the Red Sea is included in the OBR forecast, which shows an increase in inflation of about 0.2% in the central case.
I will briefly go back to the issue of government debt and why we are in the situation we are in. Sometimes I refer to the unprecedented challenges of the Covid pandemic and the energy crisis spawned out of the war in Ukraine. Let us go back to the pandemic. I was a Minister throughout the whole of the pandemic, and I saw vast quantities of money propping up our economy, our society and our health system. We often talk about the furlough scheme that protected nearly 12 million jobs. That was enormous, but we do not always think about the £2 billion culture recovery fund that we put in place. Public transport systems were my old patch, and I think I managed to spend part of the £12.8 billion that we put into that. The health service got an extra £81 billion of ring-fenced Covid funding, while £5 billion went towards academic recovery.
That all needs to be remembered when noble Lords turn around and criticise what has had to happen in the forecasts for our tax rates. It has to be repaid. Next time I am closing one of these debates, because it might be quite interesting, I might go through Hansard so that my speech can literally just quote all the times when various noble Lords on the Opposition Benches wanted us to spend even more or shut things down for even longer. In those two circumstances, we would be in a much worse situation than we are now.
We emerged from the pandemic quicker than many other similar nations, but I accept that it has meant we have had to make some difficult choices on tax. We have made those choices, and now we are able to make other choices that improve the situation on tax. Let us be absolutely clear, to quote the noble Lord, Lord Livermore: the cumulative impact of the tax changes over the last four fiscal events reduces the tax burden by 0.6% from what it would otherwise have been. I think that is completely clear—super clear. I absolutely accept that the tax burden is too high, that it is going up and that there are massive underlying reasons why the tax burden is as it is. I also know that many noble Lords opposite would have had us in an even worse position had we listened to them.
We have had to take a fair approach to repairing the public finances. It is the case that we have asked everyone to contribute a little more through keeping tax thresholds fixed. It is also the case that if one enters a new tax threshold, one is earning more money; one does not get there by accident. As we know, wages are going up faster than inflation, and therefore in real terms you would be earning more money.
We have now decided that the best way to grow the economy, while ensuring that inflation is kept under control, is to reward those in work. When I first heard about taxing people twice on work, it took me a little while to get it but then I thought, “Oh my goodness, that’s absolutely true”. I have been in this game for quite a long time but I had not thought about the fact that if you are a worker, you get charged tax twice. It is right that we make the tax system fairer and simpler and reward hard work in the UK. I welcome the comments from the noble Lord, Lord Macpherson, and my noble friend Lord Lamont that we are right to focus on NICS versus income tax. I tried to follow the noble Lord, Lord Davies, but I think he was calling for a large income tax rise for unearned income so I did not go down that route.
Many noble Lords have said, “This is terrible, it is an unfunded tax cut”. I am sorry. Political parties, Governments and all sorts of people state their ambition, their vision, all the time. That is simply what the Government are doing. We want to end the unfairness whereby if you get your income from a job, you pay two types of tax—NICs and income tax—but if you get it from another source, you pay only one. Therefore, it is perfectly reasonable for us to set out a long-term ambition to abolish employee and self-employed NICs entirely and end this unfairness that sits within the tax system. It is also perfectly reasonable for us to say that we will not do this overnight; it can be done only in a fiscally responsible way and when it can be achieved without compromising high-quality public services. I do not understand why that is difficult to grasp.
On the comments of the noble Baroness, Lady Lister, I recognise that some people may be concerned that this will have an impact on state pensions or contributory benefits, and would like to reassure her that it does not. We believe in the contributive principle; cutting NICs does not affect anyone’s entitlement to the state pension or contributory benefits, nor does it impact decisions on funding for the NHS. The fact that the money still goes into the national insurance fund is a bit of smoke and mirrors; as all noble Lords know, the Treasury retains the ability to top up the fund. It is not a requirement that the two go hand in hand; reducing employees’ national insurance does not mean that contributory benefits change. That is the way it is.
I appreciated the comments by the noble Lord, Lord Sikka, on the taxes on nuts. I agree that sometimes it can be a little confusing but, having been in the VAT game as a finance director, I know that systems can cope with these sorts of things. VAT has been designed as a broad-based tax on consumption; where there are exceptions to the standard case, they are strictly limited to legal and fiscal considerations. It is widely viewed as quite an economically efficient and non-distortive way of raising revenue.
I very much welcomed the insights from my noble friend Lord Leigh on VAT and VAT evasion. I will take his comments back to the Treasury and HMRC, and as I think he suspects, I will be writing.
The noble Baroness, Lady Lister, spoke of the high-income child benefit charge. I understand where she is coming from and that she would like to abolish it completely. I suspect that that will probably not be on the table at this time. I also recognise the challenge that she raised. Changing from a principle to ensure that we remove an unfairness can sometimes be okay. That is why we are consulting on how that removal will take place, and I think it will be a very interesting consultation.
To continue on the tax theme, my noble friend Lord Northbrook asked about tax-free shopping. The Government’s latest estimate for the cost of a new worldwide scheme based on 2022 costings is around £2.5 billion a year. The Government are grateful to the OBR for its review of the original costing of removing tax-free shopping. We are considering the OBR’s findings, alongside industry representations and broader data, so I encourage industry to bring forward as many data points as it can and we will consider them alongside the OBR’s findings.
My noble friend Lord Northbrook also talked about inheritance tax. The Budget was very much focused on reducing taxes on work, so we were not able to make changes to inheritance tax at this time.
I listened to my noble friend Lord Young on multiple dwellings relief, and we will engage very closely with stakeholders to make sure that it does not have any unforeseen impacts. I will raise the issue with the department and ensure that we will do what we can.
I welcomed the welcome of my noble friend Lord Leigh for the changes to non-doms. I agree that these changes are pragmatic and achieve the right balance between ensuring that those who are resident in the UK pay tax in the UK and encouraging those with high wealth to come to the UK and invest their funds. That was the balance that we were keen to achieve; we believe that introducing a new residence-based regime brings the UK into line with other countries with similar schemes, such as France, Spain and Italy, and makes us more competitive than places such as Germany and the US that do not have those schemes. The detail of the operation of the scheme will become clear in due course after consultation. I recognise that there is uncertainty around the costing: the OBR has certified the costing as reasonable and central, but as with any of these costings, some will include more uncertainty than others. My noble friend Lord Northbrook questioned its attractiveness, but as I said previously, I think we have got the level of attractiveness right versus other places.
On public spending, I shall not repeat the oft-quoted government lines about where we are. Of course, we recognise the need for good public services; we have committed to grow departmental spending 1% on average in real terms beyond 2024-25. The noble Baroness, Lady Kramer, asked for a plan. As she knows, the plan will be set out in due course, and I will write further if I can. We believe that productivity must be part of the plan. It is an unfortunate feature of modern politics that the extent to which one is perceived to care about one public service or another is measured by how many millions, hundreds of millions or billions one is seen to be spending on them. In the private sector, that would be regarded as completely and utterly nonsensical. Nobody in the private sector would increase inputs and expect outputs to come flooding out. It does not guarantee the right outcomes. We need to take stock of this. It is vital that we change our attitude by becoming relentlessly focused on outcomes and not only inputs, because it is only by providing better public services that we can provide better value for money for the taxpayer.
Many noble Lords mentioned the NHS productivity plan. I commit that we will hold the NHS leadership’s feet to the fire on this—it will be accountable for delivering the plan and its savings. There is a further £800 million going into other public services, including special free schools, police technology, children’s homes, the justice system and the DWP. The leadership will be accountable for delivering the savings that it says it can get.
My noble friends Lady Goldie and Lord Tugendhat and the noble Lords, Lord Macpherson and Lord Lee, all mentioned defence spending, and as the daughter of an Army officer, I too have a lot of interest in it. I appreciate all the comments on our Armed Forces and defence spending more broadly. We recognise that we need our forces to be ready and resilient. We remain committed to increasing defence spending to 2.5% of GDP as soon as conditions allow. The Prime Minister has been clear that the target and the path for getting to that 2.5% will be set out at the next spending review. I will write to the right reverend Prelate on official development assistance.
On the household support fund, I shall take back the comments of the noble Baroness, Lady Lister. I note too the comments of my noble friend Lord Young but will say that the household support fund is just one of the many interventions that we can make to protect the most vulnerable.
I will write to various noble Lords on local government funding. There have been pressures and the Government have stepped up to try to relieve them. There has also been some pretty poor decision-making in some local government areas, and the consequences of those sometimes come through the system.
I will write to the noble Lord, Lord Bird, on social housing and to the noble Lord, Lord Sikka, on reducing poverty because I want to spend a couple of minutes on infrastructure investment, which was mentioned by my noble friend Lord Howell. Infrastructure was also mentioned by my noble friend Lady Moyo, who focused on effective public and private infrastructure.
We absolutely recognise that high-quality infrastructure is crucial for delivering economic growth, productivity and competitiveness. I welcome the comments from my noble friend Lord Horam on investment across the UK. What we potentially do not talk enough about, because it is not a new thing, is that we are spending £600 billion on public sector investment over the next five years. That is enormous but we do not talk about it because there is a plan and it is all just going ahead, but it is possibly worth reminding noble Lords that this money continues to be spent. That is exactly where we are putting our money. We are also speeding up the planning system for significant infrastructure projects and looking at grid reforms, which will be critical, particularly for the green economy.
The UK has attracted the third-highest amount of greenfield foreign direct investment since 2010. It is about £500 billion, behind only China and the US. Indeed, in that time we have attracted more greenfield FDI than Germany and France combined. We can attract FDI and my noble friend Lord Harrington’s review identifies how the Government can go further. We are taking that review very seriously.
Allied to that, we have to think about how we are going to not only unlock the money in our pensions but improve the functioning of our capital markets. My noble friend Lady Moyo asked for specific plans and I will write to her with those, because a number of esteemed experts within the City of London have written good reports for us. These build on the Edinburgh reforms and the Mansion House reforms, which the Chancellor has already announced.
I will write to the noble Baroness, Lady Bowles, on investment companies. I do not have much of an update yet, but I promise her that I am pushing it as much as I can.
The noble Lord, Lord Lee, mentioned the NatWest shares for schools. It is right that financial literacy is supported at a young age. The Chancellor set out in his recent letter that there would be really significant delivery challenges with gifting NatWest shares. I am not entirely sure it is the right solution to a problem that the noble Lord probably recognises is there, but the Government are very committed to ensuring that financial literacy is absolutely key.
I will write to the noble Lord, Lord Macpherson, about the NatWest retail sale; I apologise for not getting to that. I will also write to the noble Baroness, Lady Sheehan, on the green economy because I have quite a lot to say on that, particularly on the green finance strategy and how to align the financial system to investment in the green economy, which is critical.
I say to my noble friend Lord Young that the Chancellor made it clear at his TSC appearance last week that there were some unintentional leaks in the lead-up to the Budget. It is disappointing that, for not only this fiscal event but the last few fiscal events, it has been very difficult to keep a lid on measures.
I have absolutely overrun and I will send a letter but, to conclude: this Spring Budget is one more step in the Chancellor’s clear plan to put us on a path to economic growth. The NICs Bill, also the subject of the debate in your Lordships’ House this evening, ensures that working people can feel the benefit of a tax cut as soon as possible.
National Insurance Contributions (Reduction in Rates) (No. 2) Bill
Monday 18th March 2024
(8 months, 1 week ago)
Lords ChamberRead Full debate National Insurance Contributions (Reduction in Rates) Act 2024 View all National Insurance Contributions (Reduction in Rates) Act 2024 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 13 March 2024 - (13 Mar 2024)