Security and Intelligence Agencies: Contingencies Fund Advance
Alex Burghart Excerpts(8 months, 2 weeks ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Minister of State, Baroness Neville-Rolfe DBE CMG, has today made the following statement:
The security and intelligence agencies have presented a supplementary estimate for approval to Parliament in the central Government supply estimates booklet (HC 500, published on 27 February). Full details can be found on www.gov.uk. As it will be some time before the associated legislation receives Royal Assent, the agencies are seeking an advance from the Contingencies Fund in order to meet contractual commitments.
Parliamentary approval for additional resource of £5,295,000, capital of £96,261,000 and cash movement of £66,444,000 has been sought in a supplementary estimate for the security and intelligence agencies. Pending that approval, urgent expenditure estimated at £168,000,000 will be met by repayable cash advances from the Contingencies Fund.
As the security and intelligence agencies are non-ministerial Departments, I am making this statement on behalf of their accounting officer to ensure that Parliament is informed of this advance from the Contingencies Fund.
[HCWS316]
Transforming for a Digital Future: Progress Update
Alex Burghart Excerpts(8 months, 3 weeks ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
In June 2022, the Government published “Transforming for a digital future: 2022 to 2025 roadmap for digital and data”. This set an ambitious plan that by 2025, we will deliver a transformed, more efficient digital Government that provides better services for the people of the United Kingdom.
In September 2023, I published an update to the road map to ensure we are keeping pace with emerging trends, challenges and opportunities.
At the request of the Public Accounts Committee, I am now updating Parliament on progress made against the road map including progress made by individual departments. Key recent achievements include:
16 of the top 75 services have so far reached great, well on the way to our target of 50
29 Government services are now live with gov.uk One Login and over 3.3 million people have so far proven their identity through the new system
The Government digital and data profession has grown from 4% to 5.4% of total civil service headcount, close to our target of 6%, bringing in the key skills we need
The generative AI framework for Government has been published, to provide detailed guidance, resources and tools for the safe and secure usage of generative AI
There is much work still to be done, but I remain confident that under this Government’s plan we are on course to meet the commitments set out in the road map by 2025.
We will be depositing a full copy of “Transforming for a Digital Future: Government’s 2022 to 25 roadmap for digital and data, February 2024 progress update” in the Libraries of both Houses.
[HCWS299]
Oral Answers to Questions
Alex Burghart Excerpts(8 months, 3 weeks ago)
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Peter Aldous (Waveney) (Con)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The landmark Procurement Act 2023, which this Government passed last year, will deliver simpler and more effective public sector procurement and help small and medium-sized enterprises across the country secure a greater share of that expenditure, which totals approximately £300 billion every year. The Act includes a new duty on contracting authorities to have regard for the particular barriers faced by SMEs and consider what can be done to overcome them.
Mark Pawsey
Small businesses are the lifeblood of our economy. There are 5.5 million of them in the UK, making up over 99% of all businesses and 61% of private sector employment. However, currently only a fraction of 1% offer their goods and services to the public sector. Could the Minister say a little more about the work that is being done to encourage more of them to enter tender processes?
Alex Burghart
I would be delighted to, because the Government are entirely committed to ensuring that SMEs get a bigger share of that pie. The latest published SME spend figures show that UK small businesses received £21 billion of work, which was an increase of £1.7 billion on the previous year’s figures. That is the highest since records began, and the fifth consecutive year that Government work won by small businesses has increased. Crucially, that is before the effects of the Procurement Act kick in.
Peter Aldous
As my hon. Friend has said in his reply, the Procurement Act is I hope the solution to many of these problems, but it is not due to come into force until the beginning of October. Can he confirm that it will definitely come into force then, and that the necessary secondary legislation is in hand?
Alex Burghart
I am pleased to be able to report that, despite the fact that this is complex legislation that requires workstreams in a number of areas—not just secondary legislation, but learning and development for those working for contracting authorities, and a new online platform that will make procurement much easier and better for both those supplying services and those procuring them—we are on track to meet our targets.
Sarah Edwards (Tamworth) (Lab)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Government’s “Cross-Government Fraud Landscape Annual Report 2022” includes data from the first year of the Government’s response to the pandemic. The report suggests that in 2020-21, Government Departments and arm’s length bodies reported a total of £124.6 million of detected procurement fraud. The same report showed that at the end of March 2021, some £88.2 million of fraud and error had been recovered within covid-19 schemes. Since then, crucially, further funds have been recovered and the Government will continue to update the House as fresh data becomes available.
Justin Madders
When people think back to the sacrifices they made during the pandemic, the greed associated with the personal protective equipment scandal really jars with them, so will the Minister commit to following the Labour party’s lead and appoint a covid corruption commissioner to chase down and claw back every penny of taxpayers’ money that was wasted?
Alex Burghart
This Government take PPE fraud extremely seriously. To remind the House of the figures, 1.8% of expenditure on PPE was lost to fraud at a time when there was the most extraordinary public crisis in several generations and we were competing in an extremely overheated international market. To date, we have recovered more than a quarter of that 1.8% and the fight to recover more continues. PPE procurement is subject to ongoing contract management controls, active dispute resolution and recovery action. The law is on our side and we are using it.
Sarah Edwards
The covid procurement scandal upset many people, and rightly so. I spoke with a fantastic local business in Tamworth, Wearwell (UK), which was manufacturing PPE as part of the regional procurement but was cut out of the process during the pandemic. The UK must be prepared in the event of another pandemic, and British manufacturing offers a greater response time and a more stable supply chain. When will we return to regional procurement to ensure that local businesses are prioritised when providing PPE for the nation?
Alex Burghart
I welcome the hon. Lady to what I think are her first Cabinet Office questions. She is right to draw attention to the fantastic textile manufacturing that exists in the region in which her constituency sits. She will have heard me talk about the Procurement Act 2023, which was passed last year and will make sure that small and medium-sized enterprises, which by their nature are often local enterprises, will have a bigger share of public procurement.
Jonathan Ashworth (Leicester South) (Lab/Co-op)
We have not just had the infamous Baroness Mone scandal; at the time, there were reports of a hedge fund in Mauritius that got a £250 million contract for face masks that could not be used and a jeweller in Florida that got a multimillion-pound contract for gowns that could not be used. The Government had to incinerate billions of pounds-worth of faulty personal protective equipment. That is taxpayers’ money literally going up in smoke. In the pandemic the then Health Secretary, the right hon. Member for West Suffolk (Matt Hancock), told me at the Dispatch Box
“where a contract is not delivered against, we do not intend to pay taxpayers’ money”.—[Official Report, 23 February 2021; Vol. 689, c. 758.]
But taxpayers’ money was spent, wasn’t it? Why was that promise not met?
Alex Burghart
I gently refer the right hon. Gentleman to the answer I just gave. The fact is that, although problems arose with PPE procurement in this uniquely difficult environment in which officials were working unbelievably hard for the public good, PPE procurement is still subject to ongoing contract management controls, active dispute resolution and recovery action. The fact of the matter is that this Government took it seriously during the pandemic. The Department of Health and Social Care realised the risk of fraud early on, and the Government established a counter-fraud team to counter that threat. We are using all the legal tools at our disposal to get taxpayers’ money back. The House should be in no doubt that the Government’s speed of action during the crisis enabled many lives to be saved and for the country to overcome the covid-19 crisis.
Tonia Antoniazzi (Gower) (Lab)
Wendy Chamberlain (North East Fife) (LD)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
Gov.uk is among the UK’s most recognised and trusted digital services. It is constantly monitored to assure and improve the service it provides to its users through data analytics, user research and feedback, while the latest gov.uk strategy prioritises proactively reaching more people in more places.
Wendy Chamberlain
Government processes need to work if our democratic system is to have the trust of our constituents. We know that many people who use Government IT systems to manage their tax payments, national insurance credits or benefits experience errors in how their accounts of money are handled, which is unacceptable. Will the Minister accept that a cross-departmental review of how those IT systems work needs to be carried out so that constituents can trust that the Government are not losing their hard-earned money?
Alex Burghart
I am pleased to tell the hon. Lady that polling at the end of last year found that 76% of respondents were satisfied with gov.uk, 78% agreed that they could typically find what they wanted and 74% trusted the information they found. Obviously, we keep all our systems under review, but gov.uk is a trusted brand and it is getting better every day.
Munira Wilson (Twickenham) (LD)
Tonia Antoniazzi (Gower) (Lab)
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
Until this moment I had not thought of drawing up a list, but as the hon. Lady will have heard us say on a number of occasions, artificial intelligence provides a remarkable opportunity to create supplementary capacity and capability for the civil service and the Government. I have been very pleased to pilot a new programme called “red box”, devised by a fantastic young crack AI team, which summarises long documents and makes the work of my private office easier. However, it is enhancing capability, not replacing it.
Daniel Zeichner (Cambridge) (Lab)
Damien Moore (Southport) (Con)
May I ask my hon. Friend what work is being done to ensure that the Government give value for money for the taxpayer when it comes to the Government estate?
Alex Burghart
I am pleased to say that one of our major Government functions, the Government Property Agency, is constantly looking at how we can refresh the Government estate to make sure not just that our offices are fit for purpose and are wonderful working spaces for our excellent civil servants, but that we are not hanging on to outdated buildings that are expensive to run. We are very mindful of achieving value for money in this area.
Dame Diana Johnson (Kingston upon Hull North) (Lab)
Interim payments are, by their very nature, interim; they are paid before final payments. Perhaps the Minister might be able to help me to understand. He just said that works are going on at pace, so when will the interim payments, recommended by Sir Brian Langstaff in April 2023, to parents who lost children and children who lost parents be paid before the final payments are made?
Alan Brown (Kilmarnock and Loudoun) (SNP)
Why do this Government think it is right that Church of England bishops in the House of Lords can have greater say on legislation affecting Scotland than the Scottish Parliament, and when will there ever be meaningful reform to the bloated House of Lords?
Alex Burghart
As the hon. Gentleman will have heard me say in a Westminster Hall debate not so long ago, it remains a great pity that the SNP refuses to play in the House of Lords. The fact is that the people of Scotland rejected the idea of an independent Scotland some time ago, and it would have been to the benefit of his constituents and others around Scotland if his party had had the good sense to ask for people to be put in the upper House.
Christian Wakeford (Bury South) (Lab)
On the contaminated blood scandal, why have the Government not named the experts?
Caroline Nokes (Romsey and Southampton North) (Con)
We know that the Cabinet Office is often focused on making sure that procurement contracts go to small and medium-sized enterprises, but can my hon. Friend tell me what work is being done to make sure that female-led businesses get a chance at those contracts?
Alex Burghart
I think my right hon. Friend is referring to social value, which is obviously an important part of our procurement regime. Social value was discussed extensively during the passage of the Procurement Act 2023, and contracting authorities in local areas must pay regard to it.
UK Integrated Security Fund 2024-25
Alex Burghart Excerpts(8 months, 4 weeks ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Minister of State, Baroness Neville-Rolfe DBE CMG, has today made the following statement:
I wish to update the House on the launch of the UK integrated security fund (ISF) announced in the integrated review refresh (IRR) by the Prime Minister on 12 March 2023. The integrated security fund (ISF) will succeed the existing conflict, stability and security fund (CSSF) in April 2024.
The ISF is a cross-Government fund developed to tackle the highest-priority threats to UK national security at home and overseas. The ISF will use official development assistance (ODA) and non-ODA funding to enable the delivery of National Security Council priorities. It will take an integrated, agile, catalytic, and high-risk approach to find solutions to the most complex national security challenges outlined in the IRR 2023.
Through integrating domestic and overseas national security programming, it will aim to have real-world strategic impact, bring value for taxpayers’ money, and demonstrate UK innovation.
The ISF will build on the important work supported by the CSSF. New areas of ISF programming will reflect the priorities set out in the IRR and will add additional priorities, including maritime security, economic sanctions and emerging and disruptive technology such as AI and quantum computing. The ISF has allocated almost £1 billion for FY 2024-25, bringing some existing economic deterrence and cyber programmes into the single fund. In FY 2022-23, the CSSF invested £830 million as set out in the CSSF annual report FY 2022-23.
The report demonstrates how CSSF programmes have delivered clear results. In the Lake Chad Basin region in West Africa, data collection, analysis and co-ordination between the military and police improved the response to the threat from improvised explosive devices to local communities. Violent extremist groups operating globally pose a threat to the UK and to our allies. To counter the increase in the threat of Turkish-manufactured converted blank-firing weapons on UK streets, CSSF programmes invested in capacity building and advice, resulting in changes to firearms legislation in Turkey. This resulted in a drop in the sales of blank firearms in Turkey and a decrease in imports of blank firearms into the UK.
These examples highlight the fund’s tangible contribution to enhance UK national security through integrated programmes across 12 Government Departments and agencies, with a presence in over 90 countries and territories.
[HCWS291]
Covid-19 Inquiry Response: Costs
Alex Burghart Excerpts(9 months ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Minister of State, Baroness Neville-Rolfe DBE CMG, on 9 February 2024, made the following statement:
Throughout the pandemic, the Government acted to save lives and livelihoods, prevent the NHS being overwhelmed, and deliver a world-leading vaccine rollout which protected the nation. In establishing the UK covid-19 inquiry, the Government recognised the unprecedented and wholly exceptional circumstances of the pandemic, and the importance of examining as rigorously as possible the actions the state took in response, in order to learn lessons for the future.
As such, the inquiry is unprecedented in its scope, complexity and profile, looking at recent events that have profoundly impacted everyone’s lives.
Following the publication by the covid-19 inquiry of its costs for Quarter 3 of the 2023-24 financial year on 5 February 2024, I would like to update Parliament on the UK Government costs associated with responding to the UK covid-19 inquiry.
The figures provided below include input from a number of Government Departments, including the Cabinet Office, the Department for Health and Social Care, the UK Health Security Agency, the Home Office and HM Treasury, many of which are supported by the Government Legal Department (GLD).
The figures we are publishing reflect those that the inquiry publishes—legal counsel and solicitors costs, and secretariat staff costs. The figures are based upon a sample of departmental costs, and are not a precise figure for accounting purposes and are therefore subject to change. While every effort has been made to ensure a robust methodology, complexities remain in trying to quantify the time and costs dedicated to the inquiry alone.
Total inquiry response unit legal costs (April-December 2023).
Inquiry response units across Government Departments are supported by the Government Legal Department, co-partnering firms of solicitors, and counsel. Associated legal costs—excluding internal departmental advisory legal costs—for April-December 2023 are below.
Total legal costs: £20,900,000
Breakdown of staff and costs (April-December 2023).
The Government’s response to the UK covid-19 Inquiry is led by Inquiry Response Units across Departments.
Number of UK covid-19 Inquiry Response Unit staff: 249 Full Time Equivalents (as of Q3).
Cost of Inquiry Response Unit staff: £12,900,000
It should be noted that alongside full time resource within Departments, inquiry response teams draw on expertise from across their organisations. The Senior Civil Servant staff costs associated with appearing as witnesses, preparing witnesses and associated policy development work on the Covid inquiry are significant. Early estimations place these at least £120,000 for Cabinet Office for preparatory work for Modules 1 and 2, but further work is under way to produce a more accurate figure. Those costs are not included in the figures above.
[HCWS262]
Infrastructure Procurement
Alex Burghart Excerpts(9 months ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
It is a very great pleasure to be given the opportunity to speak in this Adjournment debate on infrastructure procurement this evening.
The hon. Member for Kilmarnock and Loudoun (Alan Brown) and SNP Members—and the many scores of hon. Friends behind me—will be delighted to hear that the Government recently published the national infrastructure and construction pipeline, reflecting our commitment to economic growth and productivity. Over the next decade, the pipeline estimates a planned and projected £700 billion to £775 billion overall investment in infrastructure projects across the country. This is going to provide great certainty to industry, and it makes clear the need to invest in new skills and new talent to the sector.
The new Procurement Act 2023, which I had the pleasure of taking through this House, will create a simpler and more transparent system that delivers better value for money and reduces costs for business and the public sectors, and learns the lessons of recent years. Specifically, in the infrastructure procurement space, the construction playbook sets out how contracting authorities can now ensure that this ambitious programme of public investment is delivered in a way that maximises value for money. The playbook provides guidance and best practice on a range of topics including early supply chain involvement, risk, effective contracting, modern methods of construction, bid evaluation, and creating successful relationships with our supplier base. One in every £3 of public money—some £300 billion a year—is spent on public procurement. By improving the way public procurement is regulated, the Government will save the taxpayer money and drive benefits across every region of our country.
Following the UK’s exit from the EU, we have seized the opportunity to develop and implement a new procurement regime in a way that simply was not possible while we were members of the EU. The Act helps deliver the Prime Minister’s promise to grow the economy by creating a simpler and more transparent system that will deliver better value for money and reduce costs to businesses and the public sector. Crucially, it will provide new opportunities to small and medium-sized enterprises to get a bigger share of that £300 billion a year prize, a great achievement.
Alan Brown
What procurement processes are the Government doing now that they were not able to do when they were part of the EU and what difference is that making?
Alex Burghart
I am extremely sorry that the hon. Gentleman missed every single stage of the Procurement Act 2023. We have created a brand-new regime in consultation with businesses of all sizes, who absolutely welcomed the decisions that we have made that will reduce bureaucracy and make it easier, removing the hurdles to small and medium-sized enterprises. That is why when we did our consultation it was very warmly welcomed, because people could see it would reduce the costs of entering procurement and reduce the barriers to those businesses getting a share of that public money. I have to say it was welcomed on both sides of the House, by both—[Interruption.] The hon. Member for Kilmarnock and Loudoun (Alan Brown) can refer back to Hansard in his own time, but, having explained how it improves—
Alex Burghart
I am still answering the previous intervention so the hon. Gentleman will have to wait. [Interruption.] I have got all night; I have had my supper and I can talk about this. The hon. Member for Kilmarnock and Loudoun would like us to rehearse everything we went through in the Procurement Act; if he wants to go back and look at it, he will discover that the Act makes it possible for—[Interruption.] The Act makes it possible for—
Alex Burghart
That is because I have been interrupted many times, but I am happy to repeat the first clause of my sentence over and over again until the good gentlemen are ready to put a sock in it, but if they are not, I am not hungry and I am not tired and I am happy to fill up column inch after column inch of Hansard with this rubbish.
If the hon. Member for Kilmarnock and Loudoun wants to go back and look at the debates that we had in Committee and on Report he will understand that it is possible for both contracting authorities and suppliers to work through pipelines and framework arrangements that make it easier for suppliers to see what business is coming forward and make it easier for them to prepare, with the result that the conversations that he alluded to between contracting authorities and suppliers happen earlier and contracts are more appropriate and less likely to break down. That is one reason why the legislation we brought through the House was so widely welcomed by businesses and by contracting authorities.
I am very pleased to say that we are making great progress towards introducing this new regime in October. We have a huge plan of learning and development that will be going on across the country. We have a new digital online platform for procurement which is being built and which is eagerly anticipated. We are also constructing the new national security unit for procurement, which will make sure that it is much harder for hostile actors to enter sensitive parts of our supply chain. It is a really great achievement.
In addition to this fantastic new legislation that was brought in following wide-ranging public consultation and stakeholder engagement, we have brought forward legislative proposals to establish the new regime. These measures and the training we will roll out to support them will deliver greater value for the public purse not just in infrastructure, with huge road and rail construction projects, but across public procurement from IT software by the NHS to services by local councils.
Alex Burghart
In a moment.
On value for money, the Procurement Act 2023 provides greater flexibility to contracting authorities to design efficient, commercial and market-focused competitions, and removes overly prescriptive rules contained in the existing regulations in a way that simply could not have been done while we were in the EU. The 2023 Act also embeds transparency throughout the commercial lifecycle, and we will ensure that the spending of taxpayers’ money can be properly scrutinised. With more consistent commercial data, we will see increased competition, collaboration and accountability.
The 2023 Act confirms that value for money remains paramount during contracting, while also encouraging buyers to take account of relevant wider social and environmental considerations that the supplier may bring. That goes alongside the construction playbook, which is one of four sector-specific commercial playbooks produced by the Government and designed to improve how we assess, procure and manage Government contracts to maximise value for money and deliver better outcomes. Those playbooks are systematically changing how we approach risk, sustainability and innovation across portfolios, projects and programmes, with the goal of creating productive, profitable, sustainable and resilient sectors.
The construction sector faces unique challenges, and the Government are committed to updating the construction playbook annually in collaboration with Departments, arm’s length bodies and, critically, industry. The Infrastructure and Projects Authority also applies oversight, scrutiny and support to the most important major projects being delivered by Government. As well as tracking performance data on projects on the Government’s major projects portfolio, it provides independent gateway assurance reviews, expert advice and support on the project delivery, commercial, financial and sector-specific aspects of major projects.
The IPA’s standards, tools and training for the Government’s projects help ensure that projects are set up for success, including delivering to cost. The IPA’s expert advice, cost estimation guidance, transforming infrastructure programme and the development of the benchmarking hub are already helping to reduce the costs of projects.
You would think, Mr Deputy Speaker, that hon. Gentlemen on the Opposition Benches who profess to care about procurement, value for money and timeliness would be chomping at the bit to be involved in this work. Alas, no. When the moment came, when they were given the opportunity to sign up to the new procurement regime that delivers all those things, what did they do? They slunk away. They snuck back to their dark corners. They were frit of change and frit of opportunity. Instead, they stuck with the old ways—the bad ways that have led previous Governments into failure. They did not want success; they wanted to stick with failure. That is to the loss of the Scottish people. The good people of Northern Ireland joined our regime. The great people of Wales did the same, and the poor small and medium-sized enterprises in Scotland will be deprived of access to our brand-new regime. That is why we know that the hon. Gentlemen do not take this issue seriously.
Mr Deputy Speaker (Mr Nigel Evans)
There we go. Just for the record, I have not eaten and I am tired.
Question put and agreed to.
UK Statistics Authority Contingencies Fund Advance
Alex Burghart Excerpts(9 months, 2 weeks ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
The Minister of State, Baroness Neville-Rolfe DBE CMG, has today made the following statement:
I hereby give notice of the statistics board’s intention to seek an advance from the Contingencies Fund totalling £28,500,000 to enable cash expenditure ahead of the passage of the Supply and Appropriation Act.
The cash advance is required to support additional resource expenditure associated with the future population and migration statistics programme, the public sector productivity review, various budget cover transfers and lease payments recognised as non-cash items at main estimate.
Parliamentary approval for additional resources of £23,500,000 and additional cash of £5,000,000 will be sought in a supplementary estimate for the statistics board. Pending that approval, urgent expenditure estimated at £28,500,000 will be met by repayable cash advances from the Contingencies Fund.
The cash advances will be repaid upon receiving Royal Assent on the Supply and Appropriation Bill.
[HCWS250]
Digital Economy Act 2017: Debt and Fraud Powers Statutory Review
Alex Burghart Excerpts(9 months, 2 weeks ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
I am pleased to announce that the report of the review of the Digital Economy Act (DEA) 2017 Debt and Fraud Powers is to be laid before (i) Parliament, (ii) the Scottish Parliament, (iii) the Welsh Parliament, and (iv) the Northern Ireland Assembly.
The Debt and Fraud Powers, as contained in Chapter 3 and Chapter 4 of the Digital Economy Act 2017 respectively, allow specified public authorities to disclose information for the purpose of managing and reducing debt owed to a public authority or to the Crown and combating fraud against the public sector.
These powers must be reviewed as soon as reasonably practicable three years following their coming into force in 2018, for the purpose of deciding whether they should be retained, amended or repealed. As part of this review I am required to publish and arrange for the laying of a report on the review before (i) Parliament, (ii) the Scottish Parliament, (iii) the Welsh Parliament, and (iv) the Northern Ireland Assembly. The report is to be published on www.gov.uk.
The report highlights significant progress that public bodies have made in reducing debt and combating fraud. Since September 2018, data sharing using the DEA has saved the public purse a minimum of £137 million in combating fraud and recovering debt, with £132 million having been fully audited and checked for veracity for fraud and £5 million in recovered debt. The powers have been used by 17 Departments and Executive Agencies and 70 local authorities, resulting in over 100 data sharing pilots that are registered on www.gov.uk. This review shows the effectiveness of this legislation, and how it can lead to strong, measurable outcomes.
There is of course more to be done which is why, based on the evidence provided in this report, I am pleased to announce that I will be retaining the powers in their current form.
[HCWS243]
Ministerial Severance: Reform
Alex Burghart Excerpts(9 months, 2 weeks ago)
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The Parliamentary Secretary, Cabinet Office (Alex Burghart)
I would like to begin by wishing the hon. Member for Putney (Fleur Anderson) a very happy birthday. We are delighted to be spending it with her in these conditions.
We can only imagine the scenes—the absolute scenes—in Labour HQ that preceded this debate: the heirs to Bevan, Attlee, Wilson and Mandelson wrestling with the great issues of the day and wondering what they would bring to the mother of all Parliaments for this Opposition day debate. Would it be the war in Ukraine, the future of NATO, conflict in the middle east, the situation in the Red sea, Children’s Mental Health Week, the failure of the NHS in Labour-run Wales, the collapse of Labour-led Birmingham, National Apprenticeship Week, the Mayor of London’s failure to control crime, deepfakes and the future of democracy, the strength of UK manufacturing or the halving of inflation? No, the eureka moment, when it came, was reform of the Ministerial and other Pensions and Salaries Act 1991. Yay! They have waited 33 years for this moment, and now they are going to strike. We can imagine the panic giving way to relief as they set about handing out their lines to eager Back Benchers.
This motion has given the country something it did not have before: that rarest of beasts, that most elusive of fowl, the red squirrel or red-footed booby of politics—a Labour policy. To be fair, it is not utter chod. The truth is that the legislation from 1991 has been on the books for a very long time—a third of a century—and it is due for review, and when that time comes, it will be right to consider a number of things. It will be right to consider the length of service and severance pay, it will be right to consider those who swiftly re-enter work after a period out of it, and it will be right to consider the status of those who are under investigation when they lose their job. I say “consider” very specifically, because—as you, Mr Deputy Speaker, and the whole House will know—that is how we legislate in this place: we consult, we debate and we consider. When this subject is next considered, there will be other issues that Labour did not have time to put in its motion as it was scrabbled together at the last minute.
My hon. Friend the Member for North East Bedfordshire (Richard Fuller) asked whether there should be severance pay at all, and that would need to be debated. My hon. Friend the Member for Bracknell (James Sunderland) asked whether the law on over-65s and severance pay is right, and that needs to be considered. A number of hon. Members questioned the status of former Prime Ministers, and that should be considered. There will be other issues—many other issues—and, as I say, when the time comes to do this, the Government will consult, consider and allow proper time for debate, not the less than two hours that the Labour motion would give for Committee stage of this legislation. It is an absolutely ridiculous way of going about trying to pass legislation.
Alex Burghart
It is, as my right hon. Friend says from a sedentary position, amateur.
This Government are not going to legislate on this issue before the general election, not because the issue is not important, but because there are other things that are more important. It is because we understand priorities and we understand our constituents’ priorities, which was a point very well made by the Minister without Portfolio, my right hon. Friend the Member for Tatton (Esther McVey). We will be legislating to support renters and leaseholders, to back a free press with our Media Bill, and to strengthen law and order with our Sentencing Bill, the Criminal Justice Bill and the Victims and Prisoners Bill. We will be strengthening animal welfare, strengthening our economy with the Digital Markets, Competition and Consumers Bill and the Data Protection and Digital Information Bill, and giving greater power to our national security forces with the Investigatory Powers (Amendment) Bill. We are doing all these things and more, because they are our priorities and they are our voters’ priorities.
We look forward to the next Conservative Government after the next general election having a chance to consider these and many other issues, but it will be done properly, not in a panicked Opposition day debate by a desperate Opposition scrabbling for something to say. As my hon. Friend the Member for Southend West (Anna Firth) said, this is a “smokescreen” for a lack of policy. It is a political game, and this Government will not support it.
Question put.
Draft Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations 2023
Alex Burghart Excerpts(9 months, 3 weeks ago)
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The Chair
Before I call the Minister to move the motion, I remind colleagues that today’s debate is exactly, per the regulations’ title, on the deduction of union subscriptions from wages in the public sector. It is not a general debate on Government economic policy, strikes, the merits or otherwise of trade unions, or anything else. I will be calling Members to order if they go out of scope. It is a serious piece of work that is in front of us, and it needs to be treated with respect.
The Parliamentary Secretary, Cabinet Office (Alex Burghart)
I will have to jettison a large part of my speaking notes now, Mr Paisley!
I beg to move,
That the Committee has considered the draft Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations 2023.
To cut to the chase, the Trade Union (Deduction of Union Subscriptions from Wages in the Public Sector) Regulations, also known as the check-off regulations—not Anton Chekhov, the 19th-century Russian playwright, but check-off—stem from section 15 of the Trade Union Act 2016. It is the last piece of secondary legislation to be brought into force as part of that Act.
The regulations aim to modernise industrial relations in the UK. They define a relevant public sector employer for the purposes of section 15 of the 2016 Act. That provision requires relevant public sector employers that allow employees to pay union subscriptions directly through payroll—a process known as check-off—to charge trade unions a cost substantially equivalent to the cost they incur for providing the service. In addition, public sector employers must be satisfied that there is an alternative way of union members paying their subscriptions aside from check-off, such as through direct debit.
Should employers not be able to secure payment substantially equivalent to the costs of providing check-off, and there is an alternative payment available to employees, employers must cease to provide check-off. That will ensure that check-off services are provided by public sector employers only where there is no cost burden to the taxpayer and to guarantee members have choices about subscription payment methods.
The regulations will not come into force until a reasonable transition period has elapsed to allow everyone adequate time to make arrangements to comply with the regulations. To that end, the regulations will come into force on 9 May 2024, six months after laying. That is a generous transition period, considering that the regulations were previously due to be laid in 2017, so employers have had a significant period of awareness of the impending changes.
Chris Stephens (Glasgow South West) (SNP)
The Minister has said that six months is an appropriate period, but during the debates on the Trade Union Bill in Parliament, the Government committed to a consultation period of 12 months, not six months. Will the Minister explain why the Government’s position has changed?
Alex Burghart
The hon. Member will be aware from my opening remarks that the Bill that floated this idea was given Royal Assent in 2016. A few international events got in the way of our completing the passage of the secondary legislation, but we think that given how much time has elapsed and how aware everyone is of the changes, there is no great problem in moving from 12 months to six months.
The Government have also provided to the House the explanatory memorandum and a full impact assessment, and we have published on gov.uk guidance to be issued to public sector employers to help them to familiarise themselves and comply with the regulations. The check-off regulations will deliver value for money for the taxpayer. The impact assessment has identified that the intervention will equate to a present benefit saving of approximately £1.5 million a year. However, I wish to be clear that the regulations stem from the Trade Union Act 2016, which was introduced in response to a 2015 manifesto commitment. As such, and despite delays owing to other Government priorities relevant to the UK’s exit from the European Union, the coronavirus pandemic and so on, this has been a long-term ambition of the Government in our aim to modernise industrial relations in the UK.
Alex Burghart
I thank all those who contributed to the debate. The hon. Member for Llanelli says that this is not a pressing issue, and I am inclined to agree with her, because that is why it has taken us the better part of eight years to get to this point. We put this relatively minor measure on hold while we were dealing with much larger issues.
The hon. Lady talks about it being a matter of a few pence. At £1.5 million a year, I am not sure I agree with her definition of a few pence, but if it is just a few pence, I am sure that the trade unions will be able to cover the cost, as they justly should. They all have a choice to make on whether to pass the cost on to their members, but they may wish to consider the size of their expense accounts before doing so. The main thing here is the principle that the public services should not be providing for the trade unions a service that is unremunerated. This delegated legislation will help to embed that principle.
Regarding challenges, our view is that there are existing and well established processes for resolving disputes between our public services and the trade unions which will be fit for purpose in this instance. The hon. Member for Manchester, Gorton raised a question about the ECHR. The regulations deny no one the right to join a trade union, so that issue will not arise.
I am pleased to be able to tell my former colleague on the Work and Pensions Committee, the hon. Member for Glasgow South West, that Scotland was consulted on the scope of the regulations. The Minister for the Cabinet Office wrote to relevant Ministers. This is obviously and clearly a reserved area—
Afzal Khan
Can the Minister explain why the Government failed to consult the unions? The instrument clearly affects them.
Alex Burghart
I am pleased to be able to tell the hon. Gentleman that the trade unions were consulted as part of the work we did during the passage of the Trade Union Act 2016. To be clear: for a lot of people, direct debit is much more effective. It is often much better for trade unions, too. Going back over Hansard, I noticed that in 2016 a number of trade union websites were actively encouraging members to move to direct debit, because they thought it was a better process.
Chris Stephens
Trade unions were doing that because at that time the Government had stopped their members’ rights to have their subscriptions come off their wages. The Minister said—after his distasteful attack on trade unions, which I hope he will reflect on—that this is clearly a reserved area. I accept that, unfortunately, employment law is reserved to this place—it would be far better if it was under the aegis of the Scottish Parliament—but industrial relations are not. Industrial relations are between employer and employees. Why should the Government interfere in the voluntary arrangements between an employer and a trade union?
Alex Burghart
The hon. Gentleman has answered his own question. This is a matter of the relationship between the public sector employer and its employee. That is why it is a reserved matter.
In his closing remarks, the hon. Gentleman said that membership of trade unions leads to higher wages. That was not necessarily the lesson of the 1970s. I hope he will reflect on that part of history. As for his reference to Stalinism, I should probably take that in the spirit in which it was delivered, but as we are having a political dust-up, I will remind him what Stalinism was. Real Stalinism involved the death of tens of millions of people at the hands of perhaps the most brutal regime the world has ever seen, and that was the result of socialism.
Alex Burghart
I am happy to respond to the hon. Gentleman. If he wants to know whether a trade union will bring legal action, he had better ask the trade union. We believe that the regulations are fit for purpose.
Dame Nia Griffith
I would like the Minister to clarify the issue of the employer setting a rate and the trade union disagreeing with that rate. There is no mechanism for that. The Minister mentioned “the usual”—going to ACAS or whatever—but the fact is that the legislation needs some redress or balance. It is all stacked in favour of the employer, who picks the figure, and the trade union has to take it or leave it. Perhaps the Minister could give us a better answer on that point.
Alex Burghart
I refer the hon. Lady to the answer I gave a few moments ago. She will know that there are existing, well established processes for dispute resolution between trade unions and public sector employers, and we believe that those will serve in this instance.
The Chair
Before I put the question, I remind colleagues that paragraph 13.2 of the rules of debate states that Members are entitled to speak as many times as they wish.
Question put.