Written Statements

Wednesday 22nd January 2025 Written Statements

Wednesday 22 January 2025

Competition and Markets Authority: Appointment of Chair

Wednesday 22nd January 2025 Written Statements

[The Secretary of State for Business and Trade (Jonathan Reynolds)]

This Government have a clear mission to drive economic growth and aim for the highest sustained growth in the G7. The Prime Minister has been clear that he expects regulators to play their part in delivering these ambitions.

The Government are today announcing the appointment of Doug Gurr as the chair of the Competition and Markets Authority on an interim basis. This follows the resignation of Marcus Bokkerink, which has been accepted by the Secretary of State for Business and Trade. Doug will join the CMA board, working alongside Sarah Cardell in her role as CEO.

The Government are grateful to Marcus for his leadership of the CMA over the last two and a half years and wish to place on the record our thanks for his efforts, achieving the ambitions he set at the start of his tenure and more. All regulators, including the CMA, have a key role to play in driving growth, and this transition will enable a fresh strategic vision at the heart of our competition authority. Doug brings with him experience as an entrepreneur and in the technology and groceries sectors, as well as non-executive leadership, including in artificial intelligence—skills and experience that will be critical as the CMA takes on the challenges of the modern economy. The Government are confident that with fresh leadership on the board, as well as the existing strong leadership and the welcome commitments made by the CMA to supporting economic growth, the organisation will be well positioned to play its part in our collective mission to grow the UK economy.

[HCWS380]

Fire Safety of Domestic Upholstered Furniture

Wednesday 22nd January 2025 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I am notifying Parliament today of the publication of a policy paper providing an update on progress in reviewing the fire safety of domestic upholstered furniture.

The policy paper sets out important changes we are making now to amend the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (the FFRs), and our plans moving forward.

The regulations were introduced as a safety measure to respond to the increasing number of furniture fire-related deaths from the 1960s to the 1980s. The FFRs have significantly contributed to the reduction in the number of fire deaths since their introduction, but it is important to update the regulations to keep pace with product innovation. Evidence has also emerged over a number of years about the risks associated with the chemical flame retardants used to pass flammability tests.

The paper sets out the Government’s intentions for the implementation of a new regulatory approach, highlights areas of broad stakeholder consensus and provides an update on the outstanding challenges. We will work with businesses, trade associations and other key stakeholders this year to finalise key elements of the policy.

Ahead of that work, the Government will act now to remove a number of baby products from scope of the FFRs. The products being removed are not exposed to the same risks of accidental ignition, by cigarettes or similar ignition sources, as the items of furniture that will remain in scope. This change enables us to reduce the risk of exposure to chemical flame retardants to babies and young children at a significant stage in their development, where the fire risk is lower than the chemical exposure risk. The fire safety of these products will still be regulated, by the general product safety regulations.

We will also remove the requirement to attach a display label, reducing labelling costs to businesses without impacting on consumer safety and increase the time limit for enforcement authorities to institute legal proceedings from six to twelve months.

Alongside the policy paper, we will also publish a summary of responses to the consultation “Smarter Regulation: The new approach to the fire safety of domestic upholstered furniture”, held last year by the previous Government.

I will place copies of the policy paper in the Libraries of both Houses, and it will be published on gov.uk.

[HCWS379]

Charter for Budget Responsibility

Wednesday 22nd January 2025 Written Statements

[The Chancellor of the Exchequer (Rachel Reeves)]

Today I have laid before Parliament the charter for budget responsibility. The charter sets out the new fiscal framework announced at autumn Budget 2024.

The new fiscal rules will put the public finances on a sustainable path and prioritise investment to support long-term growth. The charter also strengthens fiscal stability and transparency via a series of reforms including enhancing the role of the OBR in scrutinising the Government’s fiscal policy.

In accordance with the Budget Responsibility and National Audit Act 2011, the charter was first published in draft alongside the Budget on 30 October as it includes modified guidance to the Office for Budget Responsibility. No further changes have been made to the charter since it was published in draft.

A debate and votes in the House of Commons on the charter and the level of the welfare cap, will be scheduled in due course.

[HCWS381]

Future of the Listed Places of Worship Grant Scheme

Wednesday 22nd January 2025 Written Statements

[The Minister for Creative Industries, Arts and Tourism (Chris Bryant)]

The Government are extending the listed places of worship grant scheme until 31 March 2026, the end of this spending review period. This will continue to enable religious organisations to claim grants covering eligible VAT costs paid towards repairs and renovations.

Nearly £350 million has been awarded under the scheme since 2010, supporting listed churches, synagogues, mosques and temples across the UK. The scheme receives around 7,000 applications a year, of which more than 70% are for £5,000 or less.

Against a tough financial background and bearing in mind a wide range of competing priorities for expenditure within DCMS, we have made the difficult decision to implement an annual limit of £25,000 on the amount individual places of worship can claim in the coming year, and to limit the fund to £23 million. We believe that this will continue the widest distribution of the scheme’s benefits within the available means. Based on previous scheme data we expect 94% of claims to be unaffected by this change.

Places of worship are a key part of our built heritage, central to local communities’ wellbeing, pride in place and identity. In addition to the benefits to their congregations, listed places of worship often also provide facilities for the wider community including foodbanks, community halls and music venues and rehearsal spaces. I am pleased that despite the challenging fiscal context we are able to continue the scheme for a further year.

[HCWS382]

Post-legislative Scrutiny of the Counter-Terrorism and Border Security Act 2019

Wednesday 22nd January 2025 Written Statements

[The Minister for Security (Dan Jarvis)]

The Government have today submitted a memorandum to the Home Affairs Committee regarding post-legislative scrutiny of the Counter-Terrorism and Border Security Act 2019.

The Home Office has carried out the post-legislative scrutiny, working with key Government and operational stakeholders. The memorandum includes an assessment of how the Act has worked in practice and sets out its findings in a Command Paper to the Committee.

The memorandum has been laid before the House as a Command Paper (CP 1249) and published on gov.uk. Copies will also be available from the Vote Office.

[HCWS377]

Local Government Best Value

Wednesday 22nd January 2025 Written Statements

[The Minister for Local Government and English Devolution (Jim McMahon)]

All hon. Members will recognise the importance of having well-functioning local councils that provide essential statutory services that local residents rely upon. To ensure this, we need to get the basics right, resetting the framework to ensure the sector is fit, legal and decent. Government will continue to work directly with a small number of councils in difficulty, and this should be done in a way that is not punitive and is based on genuine partnership to secure improvements.

Today, I would like to update the House on the steps we are taking to improve governance and local accountability in the London borough of Tower Hamlets. On 12 November, I informed the House that I was satisfied, having considered the inspection report of Tower Hamlets council by lead inspector Kim Bromley-Derry CBE DL and assistant inspectors Suki Binjal, Sir John Jenkins and Philip Simpkins, that the council is failing to comply with its best value duty. They found insufficient evidence that the organisation is open and transparent, and values the constructive criticism required to drive improvement. I proposed a statutory support package to secure the council’s compliance with that duty, and gave the council until 25 November to make any representations it wished on the inspection report and my proposal for intervention.

I have now carefully considered the representations the council has made. I have also considered afresh the inspection report and have had appropriate regard to other representations that I have received about my proposed intervention. While I am grateful for the constructive engagement I have had with the council, who have accepted the inspection report’s findings and are committed to working in partnership with Government to deliver the change needed for local people, I remain satisfied that the council is failing to comply with its best value duty in relation to continuous improvement, governance, leadership, culture and partnerships. I have therefore concluded that it is both necessary and expedient for me to exercise intervention powers in the Local Government Act 1999 as I have proposed, with some minor amendments. Accordingly, I have today given the council the necessary directions under section 15(5) of the 1999 Act to implement the proposed statutory support package.

That support package, to be in place until 31 March 2028, is centred on putting in place a team of ministerial envoys to work comprehensively within the council, acting as advisors, mentors and monitors, to oversee its improvement work. I have nominated Kim Bromley-Derry CBE DL as ministerial envoy, and Pam Parkes and Shokat Lal as assistant envoys—all experienced and talented professionals who understand that transparency and accountability are vital to the functioning of local democracy. Enlarging the team to include two assistant envoys rather than one will bring greater diversity of thought to the team and ensure that their approach to the challenges and best practice for local authorities is current. The envoys will report on the council’s progress against its improvement agenda after the first four months, and then regularly as we agree is appropriate.

In summary, the directions I have issued today require the council to:

Work with the ministerial envoys to reconfigure the council’s existing transformation advisory board and draw on existing and additional members to appoint independent and external leads for leadership, governance, culture and partnerships.

Undertake recruitment of a permanent appointment to lead the improvement work in the council.

Prepare and agree with the board a fully costed continuous improvement plan, and report regularly and in public to the board on its delivery.

Co-operate with the ministerial envoys and board leads to prepare and implement comprehensive programmes of cultural change and political mentoring, and report regularly and in public to the board on its delivery.

Have regard to, and respond promptly and in public to, any recommendations from the board with respect to the continuous improvement plan and its implementation.

Work with the Local Government Association to agree a follow-up review visit to the 2023 corporate peer challenge.

Report to the Secretary of State on the delivery of these directions, with these reports having been considered by full council, at six-monthly intervals, or at such intervals as the Secretary of State may direct.

I have also directed the council to co-operate with the ministerial envoys, and to allow them all reasonable access to their premises, documents, employees or members in support of their work. The council is also required to pay the envoys’ reasonable expenses and such fees as I determine.

This support package acknowledges the political mandate the mayor holds, while recognising the need to tackle deeply rooted and persistent issues. It is designed to strengthen and expand the improvement work that the council has already begun, and demonstrates how this Government are committed to resetting the relationship between local and central Government through genuine collaboration and engagement.

This action is not undertaken lightly, and I remain committed to working in partnership with the London borough of Tower Hamlets to provide whatever support is needed to ensure its compliance with the best value duty. I hope that with focus and oversight, the necessary improvements will come at pace, but I have not ruled out the possibility of further action in the future, in the interests of Tower Hamlets residents, should this prove necessary.

I will deposit in the House Library copies of the documents I have referred to, which are also being published on gov.uk today. I will update the House in due course.

[HCWS378]

Public Authorities (Fraud, Error and Recovery) Bill

Wednesday 22nd January 2025 Written Statements

[The Secretary of State for Work and Pensions (Liz Kendall)]

I would like to inform the House that today the Government are taking steps to deliver on their manifesto commitment to safeguard taxpayers’ money through the introduction of the Public Authorities (Fraud, Error and Recovery) Bill.

This Bill brings forward reforms to help identify, prevent and deter public sector fraud and error, and enable the better recovery of debt owed to the taxpayer. This Bill is expected to deliver benefits of £1.5 billion over the next five years, as scored by the independent Office for Budget Responsibility.

Fraud against the public sector is a significant and constantly evolving challenge which requires a robust and resolute response. This Government will not tolerate fraud or waste anywhere in public services.

I previously informed the House on 8 October 2024 of the Government’s plans to bring forward legislation that will extend and modernise the powers of the Department for Work and Pensions to stop fraud in its tracks, recover money lost to fraud and, crucially, help protect claimants who may already be on the edge financially from racking up debt. These powers will be tough on criminals, fair for claimants and provide confidence to the taxpayer that money spent is reaching those who need it, and not those who seek to exploit the system.

Fraud and error in the social security system currently costs the taxpayer around £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled. This Government are committed to preventing fraud and error from happening in the social security system and, where it cannot be prevented, we will identify those committing fraud and recover the debt owed. Just as we do not tolerate tax evasion, this Government will not tolerate fraud against the social security system.

The DWP measures in this Bill will:

Modernise DWP’s investigation powers to help prove or disprove suspected fraud more quickly. Some of the powers which DWP relies on to investigate fraud are over 20 years old—DWP needs to keep pace with offenders who exploit the social security system and improve our access to information. New independent oversight will review and report on the use of the new investigation powers.

Allow DWP to take greater control in our investigations into serious organised crimes through new powers of entry, search and seizure. New independent inspection and complaints procedures will be included to ensure the appropriate use of these powers.

Bring greater fairness to debt recovery by allowing DWP to recover debts from individuals who can pay money back but have avoided doing so. It will also enable DWP to apply to the court for a suspended driving disqualification order, to disqualify a debtor from holding a driving licence, where all other attempts at recovery have failed.

Through our eligibility verification measure, require banks and other financial institutions to examine their own data sets to highlight where someone may not be eligible for the benefits that are being paid. This will help us to identify incorrect payments and prevent debts accruing for claimants. DWP’s use of the powers will be overseen by an independent person whose report will be laid before Parliament. The powers will not give DWP access to any claimant’s bank accounts, or any information on how claimants spend their money. DWP will not share any personal information with banks or other financial institutions and a member of DWP staff will always be involved in any further investigations and decisions.

Update the penalties regime by extending the penalties we can apply for fraud to non-benefit payments—for example, grants—to ensure there is fairness in dealing with fraud across the social security system.

Introduce new and important safeguards on the face of the Bill, including reporting mechanisms and independent oversight to ensure the powers are used proportionately and effectively. As is the case now, any decision taken about someone’s benefit entitlement will always be made by a human being.

We will ensure that every pound of taxpayers’ money is spent with the same care with which working people spend their own money.

Today I can also confirm that this Bill will now go further to tackle fraud, error and debt across the public sector by also giving the Public Sector Fraud Authority within the Cabinet Office powers to investigate and address fraud against the public sector on behalf of other departments and public bodies. These powers are based on similar powers held by other Government Departments, specifically His Majesty’s Revenue and Customs and the Department for Work and Pensions. The public sector response to fraud and error has historically focused on the areas with the highest known losses—generally tax and social security. This remains a priority. However, this focus has meant that some Government Departments have limited powers and resources to act on fraud and error. As a result, outside of tax and social security at least £3 billion per year is being lost to fraud and error.

Fraud against the public sector remains unseen, and all too often, those who attack our public services for their own gain face limited consequences, but it is not a victimless crime. Public services suffer, and the taxpayer is the victim. These losses are unacceptable, and waste enormous sums of public money that could be put to good use to improve lives. It is essential that all parts of Government have access to the capabilities and tools required to tackle fraud, error and debt.

The PSFA—within the Cabinet Office—measures in this Bill will:

Give the Cabinet Office information sharing and information-gathering powers that will enable the PSFA to compel the production of information from information holders as part of a fraud investigation.

Allow the PSFA to take control of investigations into public sector fraud at the request of the affected public authority, reducing reliance on the police and ensuring that all parts of Government have access to the capabilities necessary to tackle fraud.

Improve the Government’s ability to recover losses, as a result of fraud or suspected fraud against public authorities, through new debt recovery and enforcement powers. This could be directly from an individual’s earnings or bank accounts to recover fraud-related debt identified through PSFA investigation, or from an application of a penalty on behalf of a public authority.

Introduce new clear, strong non-criminal sanctions to provide an alternative to prosecution to reduce the dependence on costly, time-consuming criminal routes. This will also serve as an important deterrent against fraud in the public sector.

Extend the time limit for covid frauds so that we have 12 years to take action, preventing the time period for claims against some fraudsters ending potentially as early as March 2026.

Introduce independent oversight to ensure the powers are used proportionately and effectively.

This Bill will provide confidence to taxpayers that the Government are taking every step to protect public services and taxpayers’ money by stopping those who exploit the system.

[HCWS383]