Financial Services and Markets Bill [HL]

Debate between Baroness Altmann and Baroness Lawlor

Committee stage
Wednesday 8th July 2026 Grand Committee

[Baroness Lawlor (Con)]

I thank the noble Lord, but he was speaking about 2022, which was light years away for the financial sector. Things have moved on and have changed. We have different regimes in place now. As my noble friend Lady Noakes has explained, the banks are now resolvable. There are other schemes that will avoid the problems for the taxpayer. That should be borne in mind.

I had better finish quickly. That is my objection. It is about who decides for businesses. If you have a ring-fence, ultimately, no matter how much you relax it, the Government are never going to have the knowledge of the sector, and the detailed tactical and strategic ability, to be ahead of the game and make businesses grow. They will always play slightly safe, but maybe they are over-safe.

I will finish on why we need to repeal the ring-fence, not just why Clause 39 is not good enough. In a sense, we are seeing the inhibition of risk-taking and a structure that inhibits it. As other noble Lords have pointed out, we do not have parallels in other economies. I know that there is the Volcker rule in the US, but Switzerland has solved its “too big to fail” problem without a ring-fence and it has a very instructive banking sector. France and Germany have it individually but not the EU, which rejected it. Australia reviewed it again in 2019 and rejected it on the grounds that noble Lords have mentioned. It is well worth going back to the famous Skeoch review, which contends that, in the longer term, we will not need the ring-fence and we will have resolution schemes in place. For those reasons, I support my noble friend’s opposition to the clause standing part of the Bill and her Amendment 160A.

[Baroness Altmann (Non-Afl)]

My Lords, I support Amendments 159 and 174 in the names of the noble Baroness, Lady Neville-Rolfe, and the noble Lord, Lord Altrincham. I would be concerned about abolishing the ring-fence for similar reasons and concerns as those expressed by the noble Lord, Lord Vaux. However, I believe that a review of the workings of the alternative protections, such as the higher capital cushions and the bail-in regimes, would be appropriate. I also think that consultation would be advisable rather than simply removing these clauses. We are talking about taxpayer risk; that is basically what the ring-fencing is designed to mitigate. When it comes to consumer deposits, we have done an awful lot for retail savings to make sure that there is protection.

I apologise that I have been unable to participate fully in Committee, but I would like to put on record that there is another risk to the taxpayer in the form of retail pensions. In particular, I have concerns about the lack of any underpinning for the Financial Services Compensation Scheme around annuities, which are assumed to be 100% protected. There is a risk to the taxpayer, which I hope the Minister may consider or take back to the department to ensure that some of those issues are addressed through this Bill. Currently the implicit 100% guarantee can be met only by the taxpayer, and offshore operators of bulk annuities pose a serious risk to the retail pension sector.

Illegal Migration Bill

Debate between Baroness Altmann and Baroness Lawlor

Report stage
Wednesday 28th June 2023 Lords Chamber

[Baroness Lawlor (Con)]

My Lords, I am concerned that the amendments in this group would, in their different ways, undermine the purpose of the Bill, which is to deter people and prevent them using unsafe and illegal routes. The date from which it will apply is 7 March 2023. I disagree with the noble Lord who has tabled Amendment 6 and others to change that date: 7 March is very clear and not subject to the time your Lordships’ House devotes to scrutinising the Bill, often until the late hours of the day or the early hours of the next morning. Tackling this sort of migration is an urgent matter. People are losing their lives. It is to be dealt with now, not delayed or put off to another date.

On Amendment 10, on unaccompanied children who reach the age of 18 in this country, removal at 18 will in some way deter this sort of illegal immigration for those not removed before the age of 18. The problem of unaccompanied children is one I take very seriously. These are very unsafe routes. It is wrong to tolerate and, in effect, encourage them. If unaccompanied children are allowed to remain, there will be an incentive to send them here, despite the risks on these routes. The assumption will be that the children will be housed, fed and educated in the UK, and that this may bring them advantages in life even if they are removed at 18, perhaps providing grounds for their families to join them.

There is a further complication in that Amendment 10 introduces the idea of judging the best interests of the person at the age of 18. Though I accept that the measure of “best interests” has been adopted in this country in many cases, it can and does give rise to subjective judgments that raise more questions than they resolve, and I am not sure it will not do so in this Bill. More to the point, we do not owe it to anyone who enters the country in defiance of immigration controls to act in their best interests, when doing so has financial costs that must be borne by others. I therefore have grave reservations about these amendments, given that they would remove the clarity about when the measure comes into force and when and to whom it applies.

[Baroness Altmann (Con)]

My Lords, I had not intended to speak but I ask noble Lords to indulge me for a moment. I have great sympathy with my noble friend Lord Clarke and, indeed, with the words of my noble friend Lord Hodgson. However, for me, a resolution is available, but it would require this country, if necessary, to show global leadership and co-ordinate across the globe the actions that we can all take; all countries have the same problem. Rather than sitting here as an island and saying, “You’ve got to go somewhere else”—where else?—I would hope that we can find a way to show global leadership and organise safe and controlled measures that will deal with this international problem without needing, as the noble Baroness, Lady Kennedy, said, to break international commitments we have made.