House of Lords (Hereditary Peers) Bill

Debate between Baroness Stowell of Beeston and Earl of Erroll

Report stage
Wednesday 9th July 2025 Lords Chamber

[The Earl of Erroll (CB)]

My Lords, I have seen two of these instances happen before. On legal advice given to a Minister not being revealed to this House, I can remember a huge row about it, and the House adjourned for 10 or 20 minutes while everyone recovered their composure because the row got so bad. It has been longstanding legal advice, and whether it is a good or a bad thing, this is probably not the place to break it, unfortunately. I do agree that it would have been very helpful to the House on the other occasion if the Minister had been able to say what that advice was. It is a good question whether we should do it, but I do not think this is necessarily the place or time, although there is long precedence for that.

On the question of powers of attorney or legal capacity, I have met this too to do with a will and things like that. The answer, very simply, is that you get advice on the question of legal capacity. If you want to push it far enough, it can end up in the courts or the Court of Protection; probably, the power of attorney would end up in front of the Court of Protection, if someone wants to push it that far, and it would be very unfortunate. If, in the George III case, the person recovered somewhat and two years’ later said, “No, I wish I had not been chucked out”, I am afraid he would not have been sitting for two years, so he would be disbarred from the House by reason of non-attendance. So that might just solve the problem.

[Baroness Stowell of Beeston (Con)]

My Lords, I rise to support my noble friend’s amendment. I want to make a slightly different point in addition to the legal arguments that have already been made. It is a shame to be speaking before hearing the Leader of the House set out her case, but, as my noble friend said, she was very clear in Committee that she takes this matter very seriously, as I know she does. As we discussed in Committee, all of us who have led our groups or been Chief Whips have had to deal with this issue, and I think we are united in knowing that it needs addressing.

The thing I find hard to understand is why we would not use the opportunity we have right now to put this matter beyond doubt. There are very few opportunities to do that, and one is presented to us right now, so I hope that the Leader of the House will take it. If she does not and my noble friend presses for a Division and is successful, I hope that, in the period between now and the Commons considering any amendments we pass, she will use the opportunity to make the case for this amendment to the Prime Minister and his Cabinet colleagues. As the Leader of the House sometimes reminded me when I was sat where she is, the Leader has a responsibility not just to bring the Government’s arguments to this House but to represent the arguments of this House back to government. This is one of those occasions when the House would look to her to take that lead.

I would simply add that, on this occasion, this is not political or partisan; it is about serving the public interest, not just the interests of us as individual Members. I hope that the Leader of the House will act in accordance with that if my noble friend divides the House and is successful in passing his amendment.

Employment Rights Bill

Debate between Baroness Stowell of Beeston and Earl of Erroll

Committee stage
Wednesday 21st May 2025 Lords Chamber

[The Earl of Erroll (CB)]

Very briefly, because we are talking about the time periods here, you have to be very careful because accrued holiday goes into that, and if you do not give people notice before the holiday is up, you cannot get rid of them. So be careful: it should be three months or less, and actually you have to knock off another week or so. This is from experience.

The other thing is the headmaster issue. I know one small school which had terrible trouble because the headmaster was incompetent. He knew it, so he got depressed and went on permanent sick leave, and of course the school was then saddled with the costs. There are a lot of problems such as that. It would be nice to clean them up at the same time if we could, but I do not think it will happen in this Bill.

[Baroness Stowell of Beeston (Con)]

My Lords, I support the amendments in this group and endorse most of the arguments that have already been advanced. I will focus just briefly on tech scale-ups.

Noble Lords will, I hope, remember that the Communications and Digital Select Committee published a report just a few months ago on AI and Creative Technology Scaleups. These businesses are incredibly important to our economic growth. They represent the innovation that comes out of our universities and the talent that exists in this country, but they need a huge amount of support to get from being start-ups to scale-ups. However, if they are successful, the return that they then deliver to our economy is huge.

Our inquiry found that the UK is, in effect, an incubator economy. What we are seeing now is that increasingly the kinds of businesses that have the potential to turn into unicorns, or indeed become unicorns, are galloping away. They are doing so because of many things. Sometimes it is about access to capital growth and to highly competitive workforces. But one of the biggest challenges that we face is that our regime, whether it is regulatory or investment, is not supporting risk-taking. As my noble friend Lady Noakes said a moment ago, the measures in the Bill about day-one rights on unfair dismissal, along with many other things, are undermining risk takers.

As part of our inquiry—before the Bill was published—witnesses told us, in the context of hiring, that the costs of hiring and firing are already much higher in the UK than anywhere else, which is putting UK businesses at a disadvantage. In the context of the Bill and the day-one rights around unfair dismissal, the Startup Coalition, which represents the start-ups, talked in its briefing note about the chilling effect that these day-one rights around hiring and firing would have on start-ups, seriously undermining their potential for growth. TechUK, which represents tech businesses of all sizes, has raised a lot of concerns about some of these day-one rights, but in the context of unfair dismissal, one of its concerns, which I do not think we have heard much about so far, is the risk of fraudulent claims.

In the Government’s response to our report—while I am on my feet, I add a bit of advertising: the debate on the report is on Friday 13 June, so I urge any noble Lords who are interested in this to sign up and contribute—they referred a lot to their AI action plan and the forthcoming industrial strategy, saying that jobs will be “at the heart” of that strategy. If that is the case, I urge the Minister to think again in the context of what I have just argued. If jobs are to be at the heart of that strategy, and the Government are as keen to support tech scale-ups as they have declared themselves to be and have put this part of the economy centre stage in all their growth plans, but these kinds of measures are making it impossible or so difficult for these businesses to be willing to take the risks to hire in the way that they need to in order to scale, then the Government are introducing measures which are self-defeating and which will undermine their own objectives.