(1 year, 3 months ago)
Lords ChamberMy Lords, I must inform that House that, if Amendment 48 is agreed to, I will not be able to call Amendment 49 due to pre-emption.
My Lords, I will speak to the cross-party Amendment 48 in my name and those of the noble Baronesses, Lady Parminter and Lady Hayman of Ullock, and the noble Lord, Lord Duncan of Springbank. As always, it is a great pleasure to follow the noble Earl, Lord Caithness; he gave me a namecheck in his speech which I hope to add to my CV, so that for my next job application I can say, “As quoted by the noble Earl, Lord Caithness”.
I support in large part what he said about the importance of rigorous scientific evidence to underpin policy—he referred to the environment, but I would say more broadly. I will add a note of caution from my personal experience. As many noble Lords will know, I was responsible for instigating the randomised badger culling trials, the so-called “Krebs trials”, which were meant definitively to determine whether killing badgers was a good way of controlling bovine tuberculosis. The trial was probably the largest ecological experiment ever done in this country; it did produce results, but it did not settle the arguments or the policy. So science has an important role to play, and I support the noble Earl’s amendment, but we must recognise that political decisions come in as well.
I turn now to Amendment 48. I want to keep it brief so I will say what it is not and what it is. It is not an attempt to block any change. It is also not an alternative to the earlier proposals that came from my noble and learned friend Lord Hope of Craighead to involve Parliament in future decisions. It is not either of those. It supports the Government in their declared ambitions for the environment and for food. In doing so, it also ensures that the Government make good decisions rather than bad decisions. The amendment is about protecting the environment and consumer interests in relation to food.
These two areas—food and environment—are crucial to the REUL Bill, as between them they account for approximately half of the 4,900 regulations that come under REUL according to the current dashboard. At its board meeting in December 2022, the Food Standards Agency noted 800 items related to food and feed. The REUL dashboard reports about 1,700 items related to Defra, most of which concern environmental protection. These two areas are also crucial because of public concern. You have to think only of sewage in rivers, outbreaks of food-borne illness or GM foods to realise that these areas—environment and food—resonate with the public. These two areas also attracted a great deal of debate from your Lordships in Committee.
The amendment that I have proposed has three elements: first, non-regression—which we have already heard about from the noble Lord, Lord Lucas, and the noble Baroness, Lady Bennett of Manor Castle. Any future changes, according to Amendment 48, should not reduce or water down current levels of environmental protection or food safety standards. Nor should they contravene any international agreements to which the UK has committed.
My second point is expert input. This resonates with the amendment in the name of the noble Earl, Lord Caithness. Regulations should not be changed without consulting the relevant experts. These should include the Office for Environmental Protection, the Food Standards Agency and their cognate bodies in Scotland.
The third element is transparency. The amendment would require the Government to publish a report showing how any changes do not reduce environmental or food protections and what advice was received from the experts consulted. As a further transparency measure, the amendment also requires the Food Standards Agency, together with Food Standards Scotland, to report on the impact of any changes resulting from the implementation of this Bill on food safety and other consumer interests in relation to food.
The proposals in these three areas—non-regression, expert advice and transparency—are totally in line with the Government’s own commitments. They have said over and over again that they do not want to weaken environmental protection or compromise food safety and standards. The noble Lord, Lord Benyon, who I am delighted to see is going to respond to this grouping, has himself said that on more than one occasion in your Lordships’ House. This amendment simply formalises these commitments in the Bill. As we heard earlier, Clauses 13, 14, 16 and 17 leave Ministers a great deal of discretionary power. While, of course, we totally trust current Ministers to keep their word, who knows who will be in charge in future? This amendment will ensure that, in the future, Governments will build on the good work that has been done up to now and the promises that have been made.
Outside this House, who supports this amendment? Let me give noble Lords some examples. I asked the Food and Drink Federation whether it supported the food parts of this amendment. The FDF, with more than 1,000 members ranging from global brands to innovative start-ups, represents the UK’s largest manufacturing sector. It says in writing that it is happy to be quoted as supporting this amendment. If the Government wish to be business friendly—and I have heard that said—here is a good place to start: accept an amendment that has the weight of nearly half a million jobs behind it.
Equally, non-regression of environmental protections is supported by the Government’s statutory advisers, the Office for Environmental Protection and the Climate Change Committee, which both said in recent written statements that it is important that the REUL Bill includes a non-regression clause.
The amendment applies to the whole of the UK, and in that context it is noteworthy that the Scottish Government have also written to express their support for Amendment 48.
I hope that in this brief introduction I have said enough to convince your Lordships that this amendment is sensible, proportionate and fully supportive of the Government’s declared commitments on the environment and food. Indeed, I cannot see why on earth the Government would not accept it, and I very much look forward to the Minister agreeing with me. However, if that agreement is not forthcoming, and recognising from Committee that there was widespread support from across the House for the areas of environmental and food protections, I will wish to test the opinion of the House.
(3 years, 1 month ago)
Lords ChamberMy Lords, there has been extraordinary support from the United Kingdom Government to the devolved Administrations, Scotland not least, both financial and practical. Indeed, I believe the UK Government have provided around 55% of tests in Scotland. However, I return to the fundamental point. I shall not comment on the performance of the devolved Administrations as I do not think that is appropriate, but they have devolved authority to act on public health within their borders.
What assessment have the Government made of the impact of the relaxation of Covid restrictions in England on the other parts of the UK when the inevitable behavioural changes impact on the devolved nations? Did that include cost estimates? Has consideration been given to transport systems moving people from one part of the UK to another? Will the transport police be supported in ensuring that passengers respect the infection control measures that are greatest along the route of the journey, whether the origin or the destination country?
My Lords, my advice is that everybody should respect the rules in place. Rules are normally clear in whichever part of the United Kingdom. Further announcements are being made as we go along. My right honourable friend the Transport Secretary made an announcement on travel this morning, for example, and there will be further announcements next Monday. Of course all public health factors are taken into consideration.
(3 years, 2 months ago)
Lords ChamberMy Lords, I am delighted to be able to speak to this Bill, and I am delighted that the noble Lord, Lord Bird, has adopted the Well-being of Future Generations (Wales) Act 2015. I shall reflect on the six years that that has been in place, because I live and work in Wales. It has acted as a checklist for public bodies about the way that they behave. It has created an undercurrent of different thinking. As the noble Baroness, Lady Blower, said, it has built on the model from New Zealand.
The Act set seven goals. The first is to have a resilient country. Many things of course are completely out of our control, and it is to plan for the unexpected, as the noble and learned Lord, Lord Mackay, pointed out, that we need to create the skillset and thinking in the next generation.
The second goal was better health, as the noble Baroness, Lady Bull, has said, which is completely compatible with the Health Foundation paper. The third is greater equality, which fits the Government’s levelling-up agenda. The fourth is to have cohesive communities, supporting each other and improving our relationships all together. The fifth is having a thriving culture, recognising the creativity and identity—in Wales, of course, this includes the language—that creates a community that can be self-supporting.
The sixth goal is to be globally responsible. Has that not just come home? We have an Environment Bill at the moment, and I suggest that that must be completely compatible with this aim. As the noble Lords, Lord Wigley and Lord Bourne of Aberystwyth, said, climate change is upon us and staring us in the face.
The seventh goal is prosperity. That goes far wider than money; it is about the value of relationships, of work, of safe housing and of better mental and emotional health, and so on, in our society. My noble and learned friend Lord Thomas of Cwmgiedd pointed out that the Welsh legislation does not contain duties and enforcements, but that has not stopped the legislation changing thinking.
I hope that this Bill will give us an opportunity to protect children from violence. I would like to see an amendment to provide greater protection to children because, if we repeal the legal defence of “reasonable punishment”, we will do a great deal. The battery of a child cannot be justified on the grounds that it constitutes reasonable punishment. There is strong and consistent evidence from good-quality research that physical punishment is associated with increased childhood aggression and anti-social behaviour.
I hope the Bill has a fair passage through Committee. The future is about today. It cannot be put off into the future, because today does indeed come from the past.
(3 years, 2 months ago)
Lords ChamberMy Lords, I am very familiar with that particular issue. In fact, my last private trip aboard before the pandemic was to see “Das Rheingold” in Berlin. I look forward to such things resuming. I will take away the particular point he mentions. DCMS has established a working group with representatives from across the sectors looking at these particular problems in a high level of detail. I will make sure that that is drawn to the attention of those involved.
My Lords, the time allowed for this Question has elapsed. My apologies to noble Lords who were unable to ask their questions. We now come to the third Question to the Minister of State. I call the noble Lord, Lord Foulkes of Cumnock.
(3 years, 2 months ago)
Lords ChamberMy Lords, I have indeed looked at that evidence. It is extremely interesting in all kinds of ways. Obviously, we talk directly to many of the groups which have submitted evidence. When I look at the views expressed by the business group, I am struck that it recommends solutions which we ourselves have put forward. We have put forward a proposal for the veterinary agreement based on equivalence, for a trusted trader scheme, for arrangements for pharmaceuticals, and so on. I think we have a good common understanding of the problems. The difficulty is in developing a constructive negotiation that gets us towards solutions.
My Lords, the time allowed for this Question has elapsed. I apologise to the noble Lords, Lord Dubs and Lord Moylan.
(3 years, 2 months ago)
Lords ChamberMy Lords, we are here to debate the annual Finance Bill, introduced in the other place following the Budget on 3 March. My right honourable friend the Chancellor of the Exchequer outlined a Budget with three key objectives: first, to protect jobs and livelihoods and provide additional support to get the British people and British businesses through the pandemic; secondly, to be clear about the need to fix the public finances once we are on the way to recovery and to start that work; thirdly, as we emerge from the pandemic, to lay the groundwork for a robust and resilient future economy. This Finance Bill enacts changes to taxation that support all those objectives.
The House will of course be aware of the severe public health and economic shock caused by the pandemic; at its peak, the economy shrank by 10%, the largest fall in more than 300 years. The Government have responded with an extraordinary package of support for the economy which, taking into account measures introduced in the 2020 Budget, is now estimated at £407 billion for this year and last year. This has been essential. Thanks to it and the rapid rollout of vaccinations, the Office for Budget Responsibility and other independent authorities now expect a swifter recovery than had previously been forecast. Indeed, the OBR expects the UK economy to recover to pre-crisis levels six months earlier than it did previously—in the second, rather than the fourth, quarter of 2022.
Our first objective is protecting jobs and livelihoods. There are positive signals that we are now on the right path, but it is crucial that we continue to support the economy over the coming months and deliver on the Budget’s first aim of protecting jobs and livelihoods. That is why the tax measures outlined in the Bill go further to support the economy. We are extending the 5% reduced VAT rate until 30 September to protect almost 150,000 hard-hit hospitality and tourism businesses which employ over 2.4 million people. To help those businesses manage the transition back to the standard rate, VAT will then increase to an interim rate of 12.5% from October until the end of March.
The Bill ensures that any business that took advantage of the original VAT deferral new payment scheme will be able to pay that deferred VAT in up to 11 equal payments from March 2021, rather than by one larger payment due by 31 March 2021. For those businesses that have been pushed into losses, the trading loss carry-back rule is being extended from the existing one year to three years for losses of up to £2 million. This will deliver a significant cash-flow benefit for eligible businesses.
The Bill also puts into legislation the temporary cut in stamp duty land tax, with a residential stamp duty nil rate band remaining at £500,000 in England and Northern Ireland until the end of June. This will be followed by a phased transition back to the normal rate. From 1 July 2021, it will fall to £250,000 until the end of September, before returning to £125,000 on 1 October. This extension helps buyers and supports jobs which rely on the property industry.
As well as protecting jobs and livelihoods, the Bill takes important steps to deliver on the second of the Budget’s key objectives: to strengthen public finances as we emerge from the pandemic. The coronavirus response, as we all know, created unprecedented challenges for the Exchequer. The first outturn estimates from the Office for National Statistics show borrowing for last year is estimated to have totalled £300 billion, or 14.3% of GDP. As we continue our response to this crisis, borrowing is forecast by the Office for Budget Responsibility to be £234 billion this year, which is 10.3% of GDP. This means we are forecast to borrow more this year than during the financial crisis, an amount so large it has only one rival in recent history—last year. The Government need to balance this enormous support provided to the economy in the short term with the need to start to fix the public finances in the longer term. The Bill takes forward a number of measures to do this responsibly.
First, the income tax personal allowance will rise with the consumer prices index, as planned, to £12,570 from this month. This level will then be maintained until April 2026. The higher rate threshold also rises to £50,270 from this month and will then be maintained at this level until April 2026. These changes are a fair and progressive way to meet the fiscal challenge presented by the pandemic. For example, it is worth noting that the 20% highest-income households will contribute 15 times that of the 20% lowest-income households.
Secondly, the inheritance tax thresholds, the pensions lifetime allowance and the annual exempt amount in capital gains tax will be maintained at their 2020-21 levels until April 2026. Maintaining the pensions lifetime allowance at current levels affects only those with the largest pensions—those worth more than £1 million.
Thirdly, the Bill legislates for the rate of corporation tax paid on company profits to increase to 25% from 2023. Businesses have been provided with over £100 billion of support to get through this pandemic, so it is only fair to ask them to contribute to the overall recovery. Of course, since corporation tax is charged only on company profits, businesses that may be struggling will, by definition, be unaffected. The increase will not take effect until two years’ time, well after the point when the OBR expects the economy to have recovered. This measure protects small businesses with profits of £50,000 or less by including a small profits rate, maintained at the current rate of 19%. The effect of this is that 70% of companies, or 1.4 million businesses, will not see an increase in their tax rate.
The third goal of the Budget was to lay the foundations of our future economy as we emerge from the pandemic. This requires that the Government encourage business investment now, to help spur growth and drive productivity in the coming years. That is why the Bill contains the innovative new super-deduction measure. In most cases, this measure will allow companies to reduce their taxable profits by 130% of the cost of investment they make, equivalent to a tax cut of up to 25p for every pound they invest. It is expected to lift the net present value of the UK’s plant and machinery allowances from 30th among the countries of the OECD to first. This will bring forward investment; the OBR has said that, at its peak in the financial year 2022-23, the super-deduction will incentivise an additional £20 billion of business investment.
The Bill also contains clauses that will enable the creation of free-port tax sites. In these sites, businesses will be able to benefit from a number of tax reliefs, including a stamp duty land tax relief, an enhanced structures and buildings allowance and an enhanced capital allowance for plant and machinery. This tax offer will be combined with simpler import procedures and duty benefits in customs sites to help businesses trade, along with planning changes to give a green light to much-needed development and spending to invest in infrastructure. This comprehensive package will allow free ports to play a significant role in boosting trade, attracting inward investment and driving productive activity.
I have talked about how this legislation delivers on the core objectives of the Chancellor’s Budget. However, as might be expected in the annual Finance Bill, it also takes forward a number of other measures to progress the Government’s long-term aims to ensure a flexible, resilient and fair tax system. As part of the United Kingdom’s commitment to be a global leader on tax transparency, the Bill allows for the implementation of OECD reporting rules for digital platforms. This will help taxpayers in the sharing and gig economies get their tax right and help HMRC detect and tackle non-compliance. It will enable the extension of Making Tax Digital requirements to smaller VAT businesses from April next year, building on the successful introduction of Making Tax Digital for VAT businesses.
It implements reforms to the penalty regime for VAT and income tax self-assessment to make it fairer and more consistent, and harmonises interest for VAT and income tax. It tackles promoters of tax avoidance through strengthening existing anti-avoidance regimes and tightening rules. Importantly, it introduces an exemption from income tax for financial support payments for potential victims of modern slavery and human trafficking made by the UK Government and devolved Administrations.
I turn to how the Bill helps us deliver the important commitments the Government have made on the environment and carbon reduction. The new plastic packaging tax will encourage the use of recycled plastic instead of new plastic in packaging. For plastic packaging that contains less than 30% recycled plastic content, the rate of the tax will be £200 per tonne. This will transform the economics of sustainable packaging. To help tackle climate change and improve the UK’s air quality, the Bill reforms the entitlement to use red diesel from April next year. This will help ensure that the tax system incentivises users of polluting fuels such as diesel to invest in cleaner vehicles and machinery, or just to use less fuel.
To conclude, the coronavirus pandemic has presented an immense challenge to this country and delivered a dramatic shock to our economy. The Government have met that shock with a determined and sustained response, but the work is not yet done. This Finance Bill continues to support the lives and livelihoods of families and businesses. As we emerge from the pandemic, it will set the ground for an investment-led recovery and for strong public finances in the coming years. The Bill delivers a number of measures for a fairer and more sustainable tax system in support of the work needed to tackle climate change. For these reasons, I commend it to the House.
My Lords, I remind all in the Chamber that we are expected to be masked when seated.
(3 years, 4 months ago)
Lords ChamberMy Lords, while sitting here listening to this debate, I could not help but get the feeling that there had been a drawing of lots in the Government Whips’ Office when they were preparing to take on these amendments and the noble Lord, Lord True, lost. All of the issues here are good and real issues. If these amendments were accepted and brought forward, they would probably make our lives that little bit better.
Before I bring my full attention to the amendment brought forward by the noble Lord, Lord Young, I will say that we deserve to hear at least about a plan of action to deal with all these issues. If the Minister cannot provide that now, giving some idea of when they will be considered is very important. They are real issues; please deal with them. That is what we are here for. The only justification for us being in this Chamber is to deal with them, so can we hear about that?
When the noble Lord, Lord Young, first raised the issue in his amendment, I said that he had put his finger on an absurdity. I have not changed my mind. I think that the noble Lord, Lord Blunkett, basically said that the cock-up school of history is alive and functioning. The rest of us who were in Parliament at the time and involved in those Bills take our share of the blame because we did not spot it either. Can we change this?
The noble Lord, Lord Young, made about half a dozen arguments in his speech for why the amendment should be accepted or acted on. The most convincing one was that, for a comparatively modest sum of, say, £3,000, you have about four or five days-worth of paperwork. That is paperwork that you might not be very good at and which you might have to repeat, over and again, to get the money out—and usually the person doing the paperwork to get the money to support the child put that money in the bank in the first place. This is beyond belief; it is Kafkaesque. Will the Minister make sure that the people who put the money in to support a child can take it out to do so? What method are the Government taking? The law does not allow it at the moment, but we change the law all the time—we are doing it now. Please can he give us a plan of action on this?
The noble Lord, Lord Young, said that he did not expect to vote on this. The ball is of course firmly in his court on this one, but, dependent on what the Minister says, I hope the noble Lord will decide whether that is the correct approach here. I know it will annoy the Whips if we have a vote on this, but if the Minister cannot give him something that is at least in some way positive, I will certainly herd my colleagues through to support it.
My Lords, I will speak to Amendment 37C in this group. I declare that I chair the National Mental Capacity Forum. I hold the noble Lords, Lord Young of Cookham and Lord Blunkett, in the highest esteem, and I am most grateful to the noble Lord, Lord Young, for the time he spent talking through my reservations about this amendment as drafted.
The discussions relating to child trust funds have come about through the best of motives: trying to ensure that money can be accessed easily when a fund matures if the person for whom the fund was established lacks the mental capacity to access it and manage their money. Around 55,000 funds matured monthly since last September. To date, about 7,000 of these are held by young adults aged 18 who lack mental capacity. Some 80% of these funds are for amounts of under £2,000. The Court of Protection processes may seem daunting to many parents and so, in trying to resolve this, a process has been developed by some but not all providers.
As the noble Lord, Lord Young, said, the amendment is modelled on the 1997 Law Commission report that was behind the original Mental Incapacity Bill—a Bill which did not proceed. That report suggested a small payment scheme, which was not progressed because there were concerns that it could be stretched more widely to cover other financial products and that it would not respect the requirement that there should be proper judicial authority to act on behalf of another person in handling their affairs if they have not been able to designate that authority themselves.
Following the important work of noble Lords on child trust funds, the Court of Protection has been looking at its rules processes and is due to meet shortly, on 20 April, to explore ways to simplify the application forms. It is important to note that the application fee has already been waived and that any form marked for urgent business goes before the urgent business judge on the same day. There is no need for a solicitor to be involved, and there have been seven applicants to date whose applications have gone through successfully without using a solicitor, so there is no need for any costs for the applicant, nor should there be delays. I hope that the noble Baroness, Lady Altmann, will assist Mikey’s parents to apply under the urgent provision, as it should be processed very rapidly as he is terminally ill.
However, there is a fundamental principle here. One person cannot access another adult’s money or possessions without their permission, or, if the person lacks capacity, can access funds only with legal authority. Although this money is called a child trust fund it is not accessible to the person until they turn 18—in other words, when they become in law an adult. That means that we are talking about somebody else accessing an adult’s money. The role of the Court of Protection is to ensure that the money accessed is limited to this fund and possibly other clearly identified funds that are the property of the 18 year-old, and to guard against misappropriation of the money.
Let us take the case of a child who has been hit by a car and sustained catastrophic head injuries. On turning 18, the trust fund money is there and there may also be a settlement for very large sums in compensation to provide for their future care. I do not see how this amendment, as drafted, would prevent larger sums than the trust fund being drawn in, and therefore how it could prevent larger sums of money being misappropriated and used by others for purposes other than the care of the person. The amendment would not restrict who can apply for this money as it does not specify that only parents or responsible carers can apply under the proposed scheme. Could cousins, siblings or others who pretend to have the person’s interests at heart access money?
Another difficulty is what happens if the person later regains some capacity. Take, for example, a person with a catastrophic head injury acquired at the age of 16 and who, with rehabilitation, may have regained enough mental capacity by the time they are 20 or 21 to be able to be involved in their own financial decisions, particularly over smaller sums of money.
Sadly, these instances that we have heard about and that have received press coverage should never have happened in the first place. In my role as chair of the National Mental Capacity Forum I have been working to raise issues around transition, highlighting the need for planning to happen when a young person is in their mid-teens, so that when they have reached the legal age of majority at 18, everything is in place to allow future decision-making to happen, with the oversight of the Court of Protection through a court-appointed deputy.
This amendment would affect Scotland and Northern Ireland, as well as England and Wales. Therefore, I wonder what discussions have happened with the devolved Governments over this amendment. Across the UK, young people, on turning 18, rightfully have access to their trust fund, currently under judicial oversight it they lack capacity.
(3 years, 6 months ago)
Lords ChamberMy Lords, I am glad to be following the noble Lord, Lord Wallace of Saltaire. I welcome the Government accepting amending the Bill. I listened very carefully to the very wise words of the noble Baroness, Lady Hayman, today and the comprehensive tutorial on development from the noble Lord, Lord Winston.
This Bill concerns maternity allowances for Ministers. For a group to be protected by the law, they must be properly identified in the law, and all I would like to say is that I feel that this amendment is a start.
My Lords, I too warmly welcome the Government’s decision to accept my noble friend Lord Lucas’s amendments. I join everyone in this House who in the last debate offered the Attorney-General their best wishes. Having a child is one of the most magical moments in a woman’s life and it is right that a Minister should be allowed to take maternity leave.
I particularly thank the Minister for his understanding and his realisation that many women felt offended. I also thank the noble Baroness, Lady Noakes, who, as the noble Lord, Lord Winston, would say, had the testosterone to start this most important debate.
It would have been ironic if, having spent years as a commodity broker, asserting myself and my rights as a woman in a male-dominated environment, I had found that 30 years later women had become a neutral object, neither man nor woman but a person. This is the ideology of the madhouse—or, to put it another way, we might as well have declared that biology was to be struck from the school curriculum. It is a plain fact of human existence that only women can become pregnant and that therefore this piece of legislation could not have been gender neutral. It would have amounted to acquiescing to the obsessive “woke” culture infesting so many aspects of our lives.
There is another issue. As my noble friend Lord Cormack and others pointed out, it is also a matter of language. English is not my mother tongue—or maybe I should say my “person’s tongue”. In fact, it is my third language. Maybe it is for that reason that I appreciate its beauty, its richness and, compared to other European languages I know, its greater flexibility. English is a language that adapts itself to law, to business and to humour better than most others. That is why so many want to learn English. Our schools and universities are a huge source of income and soft power.
Things have moved on a lot since the gender-neutral protocol in 2013 but not all for the better. We are on a slippery slope towards the complete debasement of our language. As the noble Lord, Lord Hunt of Kings Heath, said in his passionate speeches, words and phrases such as “chestfeeders”, “birthing bodies” and “menstruators”—my autocorrect does not even recognise that last one—are truly unacceptable. I am not sure whether many foreigners will want to continue sending their children to learn English in the UK if we allow this kind of gender derangement to run riot through our language. It is bad enough to see grammatical mistakes, even commonly on the BBC, but corrupting the English language to this extent and demeaning women with reference to a gender-neutral person was just a step too far. I am delighted that the word “person” has been changed and will be “mother” in the Bill. Let us not continue down this dangerous path.
(3 years, 7 months ago)
Lords ChamberMy Lords, I declare my interests in Wales and in Cardiff University.
In the Trade Bill debate, many warned of the long-term consequences of the UK Government’s approach to the devolved Administrations in recent times. Responding, the noble Viscount, Lord Leckie, stated that the Government are now listening. Communications improved in the autumn but must now be maintained and accelerated, with reinstated regular scheduled meetings between First Ministers in the devolved Administrations and the Prime Minister, to share issues of concern early to return stability to the union.
The Bill to implement the agreement was pushed through with remarkably little scrutiny. Power has been amassed in Whitehall with little regard for the checks and balances needed for the functioning of the internal market, yet this morning’s news already is of problems at ports—the very routes for our trade for livestock and fish. I remind the House that Wales is the route to Ireland.
Research and innovation is crucial to UK science. We must not slip. Our collaborations must be re-established and strengthened through Horizon Europe, European Research Council initiatives, Erasmus and scientific training opportunities.
For individuals, medical difficulties are already emerging. Take medical cannabis, the supply of which must be unlocked urgently for children with refractory epilepsy, for whom repeated episodes of uncontrolled fits risk further brain damage.
The treaty commits the UK to the use of the precautionary principle, but it will come under pressure from other trade negotiations, notably the US, to abandon this principle, and from developments such as the decision to start investigating gene editing. Can the Minister explain how this obligation set out in the agreement will be fulfilled and how the agreement will be honoured?
(3 years, 8 months ago)
Lords ChamberAt end insert “but do propose Amendment 50E in lieu—
50E: Clause 50, page 41, line 27, at beginning insert—
“(A1) Subsections (1), (2) and (3) shall take effect when the Welsh Ministers, the Scottish Ministers and the Northern Ireland Executive have agreed with the Secretary of State a common framework applicable to the United Kingdom to regulate the provision of subsidies by a public authority to persons supplying goods or services in the course of a business or, if agreement cannot be reached, 18 months after the passing of this Act.””
My Lords, I shall speak to Motion G1 and move my Amendment 50E to Clause 50. At this stage I am minded to seek the opinion of the House, particularly because I wonder whether the House wants to have a conscience vote on some of these issues. I have found the Government’s response to our deliberations worrying. I remain concerned that the damage to the union that will come about as a result of their refusal to commit to a process of codesign of a future subsidy regime will come back to haunt us all.
We are of course a revising Chamber. We asked the Commons to think again, and after many hours of debate we gave clear messages through large majorities on key aspects of the Bill. We have seen some concessions and they were essential changes, but the huge problem of the current approach to the devolved Administrations remains unresolved. Given the Government’s current difficulties with the pandemic and unknowns over the end of the transition period, less than three weeks away, I fear that any stand-off with the devolved Administrations will compound and massively magnify them by fuelling the break-up of our union within only a few years. I say this because, as someone living in Wales and with family in Scotland, I see the Bill acting as a recruiting sergeant for separatist movements.
It is imperative to recognise the common frameworks, and we have signalled that clearly. As part of “taking back control”, the devolved institutions must have at least as much latitude—or call it “control”—as they felt they had within the EU to deal with the question of state aid. To establish durable intergovernmental working with the devolved Administrations, there must be clarity and certainty that the differing needs across the UK will be acknowledged and are seen as a joint responsibility that listens from the ground up and gives decision-making to the devolved Administrations.
As I understand it, neither Parliament nor the devolved Administrations had legislated on state aid in the past as these decisions were taken at EU level and regulations were directly applicable. Now that the EU mechanisms have been removed, it is still unclear where the decision-making now happens. State aid was not on the list of reserved powers and it has never been tested in the courts; indeed, such a test would do untold damage to relations between the constituent nations of the United Kingdom.
I hope I misheard the Minister, or that it was a slip of the tongue. If I heard him say “dissolved competence” instead of “devolved competence”, I am really worried.
My noble friends and I have listened to the objections that three years is too long to wait to put a framework in place, so we have reduced it to 18 months and I am currently minded to seek the opinion of the House on this. Eighteen months is scarcely longer than it would take the Government to consult on a framework and bring forward the legislation to enact it. This could be far speedier should the Government accept the offer from the Scottish and Welsh Governments to proceed rapidly on developing a clear process for them to be part of the codesign of state aid, establishing the consensus through a seat at the table from the outset of such deliberations.
Of course, I share the House’s clearly stated support, restated again today, for the common frameworks process. That is essential, and I do not wish to jeopardise that in any way, as we must move forward together. Yet I believe that the Government will try to say that state aid is already reserved—in fact, I believe that is what I have already heard—and that to include it in the common framework process might somehow jeopardise that position of constitutional principle.
I would be very happy to accept a clear assurance that the Government will make every effort to ensure that the consent of the devolved Governments to a subsidy regime will be secured and will make a statement to Parliament when introducing the necessary legislation if they should override that process. To summarise, I believe that this House will want to hear that the Government will seek to agree with the devolved Governments any new subsidy framework and will explain to Parliament whether they have succeeded or not and, if not, why not. I believe that that is the minimum we can expect. I beg to move.
My Lords, I will speak to my Amendment 50F and Motion G2, which I may wish to move. I also support Amendment 50E and Motion G1. Amendment 50F looks to the stage at which there may be changes to state aid provisions, whether that be changes in definitions, remedies, or the scope of exemptions, or introducing conditions or time limits on approval. I agree with the Minister that at the moment they are gone, but might not alternatives be introduced, or some aspects reintroduced? I think that would also constitute a change.
The EU state aid provisions were indeed the subject of a statutory instrument recently, and they end at the end of the transition period. But, as the Minister has informed us previously, the UK will follow WTO rules and consult and report on whether any wider scope is to be introduced. If the outcome is a recommendation for going wider—some kind of policy change—it begs the question of how it will be introduced.
My proposal is not made instead of consultations and approvals with the devolved Administrations, which we support; it is in recognition that the full range of public authorities and businesses are affected wherever they may be. Therefore, the detail of how any post-consultation policy change is implemented is of significant interest.
The withdrawal Act was used to make the changes that happen at the end of the transition period. But it would seem inappropriate for that to be used for any new policy. A new policy other than moving to the WTO default should surely have the scrutiny of primary legislation.
I know the Minister may say that how policy is to be implemented can be a point in consultation, but my submission is more constitutional than convenience. Parliament should be able to scrutinise and amend, and to spot those weaknesses and problems that this House in particular has the experience to iron out, especially at the first time around of making independent, post-Brexit state aid rules.
Therefore, my Amendment 50F seeks to put on the face of the Bill that changes to the test for harmful subsidy remedies, the scope for exemptions or the conditions or time limits on approvals may not be done by regulation. I do not seek to prevent policy change being made by the Secretary of State; I am just saying that, at least first time around, it should be made by primary legislation. It may be that the Minister can put my mind at rest, and I await his response with interest.
My Lords, I am most grateful to all noble Lords who have spoken in this debate. I start by commenting on the amendment proposed by the noble Baroness, Lady Bowles. She highlighted the constitutional issues here and that this is ahead of its time.
As my noble and learned friend Lord Thomas of Cwmgiedd said, we need a unified state aid scheme and we need something in the Bill to strengthen and not weaken the union, because the devolved Administrations must be fully involved. I appreciate the passion of the noble Lord, Lord Adonis, for supporting the devolved Administrations. The noble Lord, Lord Fox, made some very important points about who is in the driving seat and heard clearly and reiterated the threat that some of us see to the union, as well as the need for co-creation. I appreciate very much the support that he has offered.
The noble Lord, Lord Stevenson, is right that there has been a good discussion, but I am not convinced that we have really heard enough from the Minister. While the Minister certainly works with the devolved Administrations—and I am not disputing that—I was listening very carefully for the words that “consent” would be sought over agreements and that there would be “agreement”. Simply consulting is not enough; one can consult and then reject and ignore whatever is said.
Being at a distance in the hybrid House, it is difficult to feel the atmosphere in the Chamber or know what the feeling of the House is. Some may disagree, but my feeling is, from where I am now, that many in the House are unionists and feel passionately that we must not jeopardise that union and must strengthen, however we can, the working between the devolved Administrations and Westminster. Therefore—hesitantly, but I feel that there is a need for it—I wish to test the opinion of the House, because I wish to give all Members of the House, whichever Bench they sit on, the opportunity to vote according to their conscience over the threat that this poses to the union going forward. I beg to move.