(2 years, 5 months ago)
Lords ChamberMy Lords, I shall add a word, while apologising that I was unable to take part in earlier stages on this Bill because of involvement in other legislation, as a number of colleagues know. But this amendment and this debate touch on a matter central to the relationship between the devolved Administrations and the Government in Westminster, and this matter is critical to the future of relationships between the nations and these islands.
Is it not in the Government’s own interest important to find a way in which there can be a meeting of minds in matters such as this? If there is not a meeting of minds on issue after issue, we are stoking up the fires that will lead to a break-up of the United Kingdom—not just a change to the United Kingdom as we know it now. Many of us who want radical change would be able to live with a United Kingdom that has a confederal relationship, and so on, and where there is a mutual understanding. But not acknowledging the role of the Government in Scotland and Wales—and, to the extent that Northern Ireland comes into this, in Northern Ireland—is inevitably driving the relationship in that direction. I cannot see what the Government could lose by coming to a conclusion that the consent of the Governments in Cardiff and Edinburgh would be needed for some of the provisions covered by this Bill. I should have thought that it was in the Government’s own interest; it seems common sense to me. Is it too late now to act on that basis?
My Lords, I sincerely hope that the noble Lord, Lord Grimstone, is progressing well. He seems to have fallen to the unfortunate propensity of the BEIS team to suffer from Covid. From experience, I hope that he gets through it quickly and I pass on my best wishes. I am very sorry that he is not here for the concluding comments around the Bill. I thank the noble Baroness, Lady Bloomfield, for her introductory comments, which were delivered with clarity on the matters that we are considering.
I think many of us who have been involved in this Bill throughout its passage will recognise that it has not been the finest moment for legislation coming through the House. It was the first Bill that I was involved with, so it was quite a steep learning curve for me—but it has been described as chaotic. Indeed, it is quite extraordinary that the Bill was introduced without knowing which professions were actually in scope in the first place. Many concerns have been expressed about the Bill in its stages across the House. We note the considerable number of amendments that have gone through and gone to the other place—as the result, probably, of poor drafting in the first place. Of course, we do not wish to open the debate again on all those and other issues, but it is right to emphasise that particular concern was expressed right at the start with regard to the lateness of consultation, especially with devolved authorities. As was predicted at the time, I believe that it is that which has led to the lengthy delays and, of course, to the devolved authorities formally rejecting the Minister’s reassurances in early January.
On Report, we took a decision not to divide the House based on the assurances made by the noble Lord, Lord Grimstone, that he would continue to work on the Bill to secure support from the devolved authorities. We note the further work that has been undertaken, as outlined by the noble Baroness, Lady Bloomfield, to seek legislative consent from the devolved authorities and to overcome the impasse that still exists. As has been expressed, this is indeed regrettable.
We note the amendments tabled today and the further assurance from the Minister of the Government’s intention to work collaboratively and transparently with all the devolved authorities. We understand that the amendments are designed to introduce the enhanced consultation duty and to formalise the Government’s standard good practice in consulting devolved authorities before making regulations, as discussed on many occasions in this House.
Along with many other Members of this House, I am a passionate believer in devolution. Real devolution requires trust, transparency, honouring commitments and, above all, respect. Sadly, there are too many instances, across many policy areas, where government is falling short. I hope we can have further assurance from the Minister that timely consultation will become the norm and that any concerns arising from discussions will be dealt with transparently and in good faith. We recognise that the amendments are a step forward. With these comments, and noting our continuing interest and concerns, we recognise that the amendments will lead to the Bill moving on to be accepted.
(2 years, 6 months ago)
Grand CommitteeMy Lords, I shall speak to Amendment 72, which I think is linked with this amendment. It refers to the responsibility of the CMA to act in an even-handed manner when carrying out its functions, particularly with regard to the Scottish Ministers, the Welsh Ministers and a Northern Ireland department.
I ask the Minister how on earth one can reject the requirement to act on an even-handed basis. It seems common sense that any action by the CMA would have to be on an even-handed basis. If that is the case, what is the problem with including these words in the Bill? If the argument is that the CMA may not sometimes act on an even-handed basis, that needs further exploration, which perhaps we can come to at a later stage; but if the Government are rejecting Amendment 72, I would like the Minister to clarify on what possible basis they can do so.
My Lords, I am grateful to the noble Lord, Lord Purvis, for tabling these amendments. At Second Reading and over the past three and a half days of Committee, we have repeatedly come back to how the new subsidy regime interacts with the broader provisions contained in the United Kingdom Internal Market Act.
As we know, the Government have clearly classified subsidy control as a reserved matter, but there a number of sectors where local or devolved interests may conflict with the wider interests of the internal market Act. The Government repeatedly come back to the notion that the new regime should facilitate the smooth functioning of the internal market. However, if we return to Monday’s discussions about Northern Ireland’s unique position and the inclusion of agriculture, we have to accept that those issues have raised more questions than answers when it comes to how the new regime will balance competing interests.
It is fair to say that some of the responses that we have had thus far have not been entirely convincing, and some of the answers given by the Minister seem to have highlighted the complexity of the issues that we are discussing and, therefore, the need to raise the matters in these amendments.
The wording “even-handedly”, as raised in Amendment 72 and used in other legislation, is particularly interesting. What is the Minister’s personal interpretation of that? How will it be administered and who will make the judgments, if it is deemed that unfairness is built into some of the decisions that are made?
We are repeatedly told when debating this Bill as well as when discussing whole rafts of government policy in other areas that there is a commitment to devolution and that is the most important thing—but, in the same breath, the Government say that subsidies must not undermine the internal market. How can both those statements be true?
(2 years, 7 months ago)
Grand CommitteeMy Lords, Amendment 14 was tabled by my noble friend Lord McNicol.
We always know in this environment that timing is everything. We must be extremely mindful when debating these elements of the Bill that today the Government published the levelling-up White Paper. It is critical that we bear that in mind as we discuss these important issues, particularly on economic deprivation. We must go back to the lengthy debate that we had on Monday and focus on the benefit that the work we will do here will bring to our communities across the United Kingdom, and focus on the purpose, on what really matters as a result of the improvements that we can make to the Bill. This is an illustration of the importance of joining up key pieces of legislation. Since coming down to the Palace of Westminster I have noticed that this is a work in process and this legislation is something that we can assist with.
Bearing that in mind and being very much aware that a lot of the work that has gone into the levelling-up White Paper has already been released in the media—many noble Lords, I am sure, have had sight of the proposals—I will concentrate on Amendment 14 and refer to the extended list of amendments that have come into this group since Monday afternoon.
As I said, the third group on Monday facilitated an interesting debate on economic deprivation and a number of related issues. It is worth returning to the topic today as the Minister’s responses were not convincing. There is more work to be done on these areas. Some of the amendments in this group go beyond a laser focus on economic deprivation, allowing us to probe slightly broader issues, such as whether and how the concept of social value, used in relation to procurement, will be applied to the subsidy regime. We are grateful to the GMB union for its input on these texts.
The noble Lord, Lord Lamont, made a very powerful contribution on Monday, making the point that areas of high deprivation need a degree of certainty, and that is one of the focuses that we need to bring to bear. Sadly, I have to say that, at first glance, the announcements on levelling up do not provide that certainty. The confirmation of various missions mentioned in the White Paper provides a marginally clearer idea of what the Government want to achieve, but we are still largely in the dark as to how the various 2030 targets will be met.
We have staggering examples of discrepancy in funding. For example, transport in London and the south-east of England received £882 per head in the year 2019-20, while in the north-east it was only £315 per head. Analysis in the Guardian of funds allocated so far through the future high street fund, the community renewal fund and the towns fund also suggests that the wealthiest parts of England are being allocated, in some cases, up to 10 times more money per capita than poorer and, I have to say, often Labour-controlled councils—that point is perhaps best discussed alongside Amendment 35 later today. IPPR North points out that funds allocated to the north thus far amount to an investment of £32 per head, which compares to a £413 per person fall in annual council service spending between 2009-10 and 2019-20. We also have the comments from the National Audit Office, which suggest that grants from two different funds were not based on evidence. We very much want levelling up to be a reality and would support proposals being brought forward that would achieve this end. We have to make sure that, through the work that we are doing in this Bill, we contribute to that end.
Amendment 14 would make clear that streamlined subsidy schemes can be made to support areas of economic deprivation. This would not be a requirement, but would focus the Secretary of State’s mind once the new regime is up and running. Clarity would support the goals of facilitating quicker and more efficient awards of low-risk subsidies. I am sure the Minister will talk up the inbuilt flexibility of the new system, but here is an opportunity to send a signal to the communities that we want to help. I am sure that the noble Lord, Lord Ravensdale, will make the case for his Clause 18 stand apart amendment, which looks at relocation subsidies through an economic development lens, but I hope that Amendments 27 and 28 will at least give us some clarity on how that prohibition will work. Are we talking about movement within or between local authorities, regions and nations of the UK, or does it depend on context? The current drafting is not clear, and this kind of area should not be left to guidance and therefore to different interpretations.
Amendments 34 and 36 seek to move the discussion on to the social value to be derived from subsidies, which might be an alien concept to some considering this legislation. We must avoid always viewing matters purely in terms of the economic bottom line. We all want to create jobs and fuel economic growth, but there is a need to do that in a fairer manner, ensuring job security, good pay and strong employment rights across all sectors and, of course, as we have already discussed, ensuring that we bring in environmental benefits.
In recent years, the Government have spent billions of pounds subsidising a wind sector that sustains a relatively modest number of jobs and has not always supported UK suppliers, including the steel industry. Wind is an increasingly important part of the energy mix, and key to reducing emissions. It is clearly worthy of subsidies, if that is what it takes to make cleaner forms of energy more attractive, and of course to create new jobs. However, the TCA, and international agreements, give scope for the inclusion of social objectives when giving subsidies. We want to understand whether the Government intend to use that flexibility, and if so exactly how.
Amendment 36 draws on the concept of social value, which authorities are compelled to consider under the Public Services (Social Value) Act 2012 when undertaking procurement exercises. Do the Government plan to include similar provisions in the Bill?
There are a great many questions for the Minister to answer on this group. I hope that he will be able to address most of the points today, but I would be pleased to receive further written answers if that is more appropriate. I do not wish to pre-empt other contributions this afternoon, but it feels as if there is much more work to be done in these areas before Report.
Amendment 23 in my name has been included in this group. That is a slightly odd grouping, and perhaps I should have pressed for my amendment to be de-grouped. I shall speak to it in a moment, but first may I endorse entirely the comments made in opening this debate? It is vital that we ensure a decent standard of living and income per head throughout these islands. It is not enough to compensate people for being deprived of many of the aspects of life that are valuable to them. We need the economy to be able to sustain populations at a level of income that enables them to get benefits of the sort that are enjoyed in, for example, south-east England.
Let us compare the GDP per head of Kensington and Chelsea and that of the valleys of Gwent, or of Anglesey. Chelsea’s figure is eight times higher. We need economic solutions, not just for Anglesey and Gwent but for the north-east of England, Lancashire and other areas—all the old industrial areas. We need to get the economies working, to ensure that the other benefits that the people of those areas have a right to expect can be delivered.
My Amendment 23 seeks to include in the Bill an assurance that nothing in it prevents a public authority from giving financial support aimed at achieving cultural or environmental objectives. I draw attention to my registered interests with regard to cultural dimensions in which my family is heavily involved. I do not think the amendment should be necessary, for it is a long-standing feature of the cultural scene that grants and subsidies are necessary to underpin activities that otherwise might not be viable. Clearly, in making grant payments to one body, organisation or even company, the Government are in effect giving it a competitive edge over others that do not get such support; the marketplace is hardly designed to support and sustain such activities. Yet many aspects of the arts are inevitably dependent on such interventions, and nothing in this legislation should be open to accusations of undermining cultural viability.
Equally, the objectives of environmental policy must also, surely, be exempt from any restrictive limits placed on public bodies from maximising our ability to reach environmental targets. This is a probing amendment, and I trust the Minister can give me the assurance I seek.