Covid-19: Scientific Advice

Baroness Wheatcroft Excerpts

Wednesday 17th June 2020 Lords Chamber

[Lord True [V]]

My Lords, I could not catch all the details of the noble Lord’s question. I apologise on the record to him for not answering fully a previous question he asked. If he does not mind, I will write to him on the subject. I remind the House, having caught enough of his question, that this was an evolving crisis and the Government have done a great deal to procure and deliver testing—now over 200,000 a day—and provide places in hospital beds.

[Baroness Wheatcroft (Non-Afl) [V]]

My Lords, a SAGE paper of 11 February made it clear that stopping large gatherings and, more particularly, the closure of pubs, nightclubs and similar venues would slow the spread of the infection. That did not happen for more than another six weeks. Can the noble Lord tell the House whether that advice was not acted on immediately as a result of putting it before focus groups? Can he say how many elements of SAGE advice have been subject to focus groups before being adopted, or not adopted?

[Lord True [V]]

My Lords, I cannot answer on focus groups; the focus group I care about is Parliament and responding to it. The advice from SPI-M-O on public gatherings was actually rather more equivocal than the noble Baroness suggests. However, the policy evolved and many of those who follow the public press conferences will remember the Deputy Chief Medical Officer talking about a number of the different factors involved. It is important to recall what stage of the crisis we are talking about: 11 February, when there were eight confirmed cases.

Beyond Brexit (European Union Committee Report)

Baroness Wheatcroft Excerpts

Tuesday 12th May 2020 Lords Chamber

[Baroness Wheatcroft (Non-Afl)]

My Lords, I thank the noble Lord, Lord Boswell, for this excellent report. Reading it provides a clear reminder of how intertwined the UK is with the EU. After more than 40 years of membership, that is not surprising, but the report is also a reminder of how many issues have to be settled if our final split from the 27 is to be relatively smooth.

The political declaration refers to three overarching areas where agreement is necessary: the economic partnership, the security partnership and the institutional arrangements. Achieving agreement on all that by the end of this year was never going to be easy but Covid-19 has rendered it virtually impossible. Governments have had to give their full attention to a single priority—tackling the virus—but even if the current fragmentary negotiations could produce a consensus, business simply will not be able to cope with the radical changes that final departure must bring.

The UK is no longer a member of the EU—that is not up for debate—but we need to remain in lockstep for a little while longer. Business cannot cope with sorting out the effects of the virus while simultaneously preparing for a new, but as yet unknown, relationship with the EU. The transition period must be extended, as many noble Lords have said; the sooner that happens, the better for business. The Government have said that they will not ask for an extension, in part because business needs the certainty of the December deadline. That is simply nonsense. There is no certainty in a departure into the unknown. The EU 27 share the pressures that a December rupture would create. An extension is in their interests too. If we wish to remain friends with the EU, let alone retain influence in it, a request for an extension must happen immediately. In the light of the changes wrought by Covid, why do the Government refuse to contemplate an extension?

European Union: Negotiations (European Union Committee Report)

Baroness Wheatcroft Excerpts

Monday 16th March 2020 Lords Chamber

[Baroness Wheatcroft (Non-Afl)]

My Lords, I am delighted to follow the noble Lord, Lord Cormack, because as I listened to the speeches this afternoon, I have been amazed by the determined intention to keep calm and carry on. I admire a degree of sanguinity, but it seems to me that this is not the time to display it. I was delighted to hear the noble Lord, Lord Lea of Crondall. It is true that he does not always keep calm and carry on, and this afternoon he most certainly was not. I do not think that we should and I do not intend to. As the noble Lord, Lord Cormack, has said, we are in an extraordinary time. The Prime Minister’s broadcast this afternoon has made that clear. The stock market could not make it clearer: it is now lower than it has been since 2011 and who knows where it is going. That is people’s pensions and their futures.

When the referendum took place, coronavirus was unheard of. When the general election took place in December, it was not in sight; indeed, had it been, that election might not have taken place. Let me reassure the noble Lord, Lord Hamilton of Epsom, that I will not dwell on what might have been: we have left the EU. What is now to be determined is the future relationship. I support the amendment in the name of the noble Baroness, Lady Hayter—that Parliament should have appropriate scrutiny of those negotiations—and the Motion in the name of the noble Earl, Lord Kinnoull, whose committee’s report highlights the fact that it will be more difficult to negotiate a deal now that the parties, particularly our Government, have moved so much further away from a political declaration.

Right now, the 27 countries of the EU have a far more pressing concern than their future relationship with the UK. They are trying to protect their public, their country and their economy from the ravages of this virus. Our Government, in their own way, are doing the same. This will be the case for many months. This does not seem to be the background against which to insist on a timetable for negotiations, which was always seen as demanding. The Command Paper states:

“The Government will not extend the transition period provided for in the Withdrawal Agreement. This leaves a limited, but sufficient, time for the UK and the EU to reach agreement.”


It may have been a limited, but sufficient, time back at the beginning of the year, but it is certainly not so now. Given how the UK has moved away from the political declaration, that timetable looks even more optimistic now than it did then—and that was before the virus hit. The Government’s priority now must be to concentrate all their efforts on protecting the people, the country and the economy from the previously unforeseen threat of the virus. Just as the Government have asked industry to turn its efforts to creating more vital appliances for our hospitals, so Ministers must redirect their efforts to looking to the country’s future under this virus.

I have just one question for the Minister: can he categorically assure the House that, in the Government’s efforts to cope with the virus, absolutely nothing will be off the table, including considering asking for an extension to the transition period? If that will help the country and the rest of the EU through this extraordinarily difficult period, the Government absolutely should do it. The EU and the UK now have a common enemy; it is, as the noble Lord, Lord Lea, put it, the elephant in the room. It would be unforgivable for many future generations if this Government, in pursuit of an ideological Brexit, were allowed to distract themselves and the countries of the EU in any way from what is now truly a life-or-death battle.

Online Material: Identification of Promoters

Baroness Wheatcroft Excerpts

Thursday 7th June 2018 Lords Chamber

[Lord Young of Cookham]

I am sorry that my noble friend was distressed by some communications during the recent local government elections, but the Law Commission is reviewing online abusive communication, and analysis of that will be published by the end of the year, with recommendations to follow. There are also other initiatives on online safety, with the Internet Safety Strategy Green Paper last year and a White Paper to come later this year. If my noble friend’s communication was on paper and related to the recently held elections, I think that the Electoral Commission would be interested to see a copy of it.

[Baroness Wheatcroft (Con)]

My Lords, it is clear that propaganda from Russia flooded social media during the EU referendum, as it did during the US election. Can my noble friend tell the House how he proposes to put an imprint on that?

[Lord Young of Cookham]

That is a challenging question which will be addressed in the forthcoming consultation. On fake news, tackling disinformation is a key pillar of the digital charter. I have seen no evidence of successful intervention in our democratic process, but the Government are not complacent and are engaging with the social media platforms to make further progress.

European Union (Withdrawal) Bill

Baroness Wheatcroft Excerpts

Tuesday 30th January 2018 Lords Chamber

[Baroness Wheatcroft (Con)]

My Lords, this House knows what is expected of it. I trust that we will not cower at the lurid threats of tumbrils at the gate voiced by my noble novelist friend Lord Dobbs. We have a duty to perform, summarised on Parliament’s own website, which declares our role to be:

“Checking and shaping draft laws and challenging the work of Government”.


As many noble Lords have already said today, in this instance the work of government really needs challenging.

The Bill is not merely the “cut and paste” of EU law that it has been portrayed as. It changes the balance of power between the UK Parliament and the devolved Administrations; it confers sweeping, wildly undemocratic power on Ministers; and, in Clause 9, it makes provision for “implementing the withdrawal agreement”. Given its implications, we would be failing the country if we did not challenge the Bill’s imperfections. To let fear for our own future prevent us would be self-interested cowardice, not constitutional propriety. My noble friend Lord Dobbs quoted Sir Winston Churchill; two can play at that game. I remind the House that it was Churchill who said that our task was,

“to re-create the European Family, or as much of it as we can, and provide it with a structure under which it can dwell in peace, in safety and in freedom”.

We risk throwing away his legacy.

We are told that the Bill brings business the certainty it craves. It does not. It gives no clarity on where the country is headed after Brexit. Business is clear that it wants to remain in the single market and the customs union. Here I declare my interests as listed in the register. Business knows what the Government are failing to tell the country but BuzzFeed helpfully did this morning: under any scenario other than staying in the single market and the customs union, coming out of the EU will make Britain significantly poorer. As others have said today, Britain did not vote for that.

By the Government’s own reckoning, there are 132,000 companies in the UK that export only to the EU. Far from being the bureaucratic nightmare we keep hearing about, the single market actually works. We will pay a high price for leaving. The Government could assure business now that they are intent on preserving the benign trading environment we enjoy for goods and the all-important services—the arrangement that has produced such prosperity. Instead, all we are promised is a transition deal—but to what? We leave the EU to enter limbo land, while we try to hammer out a deal with no negotiating power. We stride out on to what my noble friend Lord Bridges called,

“a gangplank into thin air”.

Parliament needs to be told, and soon, just what the Government are aiming to achieve, and in terms much more specific than the “deep and special relationship” we hear so much about. That is what we have now. Hope does not equate to policy. To extend the Article 50 process while we negotiate a deal, rather than walking off that gangplank, might be a great deal more sensible.

Ministers must also scrape away the fudge that was so liberally ladled over the issue of Ireland. My noble friend Lord Empey accepts that the issue is “difficult”, albeit he thinks those difficulties minor. But I can see no way of providing Ireland with the borderless, frictionless trade that has been promised other than the UK remaining in the single market and the customs union. If the Minister has found one, perhaps he could spell it out. To a simple soul like me, trade between an EU member state and the independent UK cannot continue post Brexit without a border. Again, hope does not equate to a policy. We need details.

Finally, I join with those who believe that before this country takes the momentous step of leaving the EU, it may be that the people will need to have their say on the terms that are on offer. Opinion polls already show that a significant majority favour such a vote. While I share the view of my noble friend Lord Patten of Barnes that referenda should be avoided, I suspect that if a referendum got you into this mess, the only way out may be another referendum. This may not be the Bill which mandates such a vote, but the time may well come when it is inevitable. The government position seems to be that we have made our bed and we will jolly well lie in it; no matter how uncomfortable this turns out to be, we must get on with it. I find that somewhat perverse, and I suspect the majority of voters would too: let us find a better bed.

Building More Homes (Economic Affairs Committee Report)

Baroness Wheatcroft Excerpts

Thursday 2nd March 2017 Lords Chamber

[Baroness Wheatcroft (Con)]

My Lords, I am delighted to follow the right reverend Prelate. I sympathise with his compassionate comments, particularly on rural housing. As a member of the Economic Affairs Committee I would like to echo the words of others in thanking the staff for the extraordinarily good work they did and also the chairman, the noble Lord, Lord Hollick, for his skilful chairmanship.

The debate has been wide-ranging already and many of the topics that were in our report have been addressed, so I will restrict myself to just two issues. First, the government White Paper accepts that we need to build more homes, faster. Much has been said about more, but not much about faster. We need to make sure that planning permissions are developed speedily. There is far too long between permission being granted and housing being built—not that it is always built, given that about one-third of planning permissions are never fulfilled. The Government have to look at how to get planning permissions turned into real developed houses in the shortest possible time. That may mean some sort of penalty, which the committee certainly thought was worth investigating.

However, there is another aspect to building houses faster that we should be doing more about: modern methods of construction. Some of those have been going on, but not nearly enough. We need to get momentum going if that is to take off. It could make a huge difference to our housing situation. The Building Societies Association has said that MMC could be a game-changer, but that it will not happen unless the Government really get behind it. There is too much nervousness among consumers and a lack of knowledge among lenders. We need to get enough of those houses built to demonstrate that this is the way forward. The current method of housebuilding, bricks and blocks, has been unchanged for virtually 100 years, and of course it is very vulnerable to the weather. Fabricating large parts of a house in factories and then moving it to site could make huge savings. The steel construction industry reckons that 75% of the labour costs could be taken out if we got MMC working properly. As the Building Societies Association said, we need to see the Government backing this. Major projects such as Northstone, where there are plans for 10,000 houses and the Government are taking the lead, would be the perfect place for MMC techniques to work. The big housebuilders have projects under way and are investing in factories, but much more needs to be done. I would very much like to hear from the Minister his plans for putting government support behind MMC.

My second point concerns spending by local authorities and their ability to borrow to fund public sector housing. In our report we called for the cap to be loosened. Local authorities told us over and over again that they wanted to be able to borrow more. They said they thought it a nonsense that they could borrow to build swimming pools but not the housing that is so badly needed in so many parts of the country. The Minister told us in our private meeting that there is a little more flexibility in that area now, but as the noble Lord, Lord Sharkey, pointed out, it is nowhere near enough. Yet while these local authorities are being restricted in what they can borrow to build housing, they are having a high old time borrowing to buy commercial property. In recent years councils have become really big players in the market, outbidding private sector investors in many cases. They have been buying shopping centres, bingo halls, service stations, hotels, offices—you name it, councils are now the proud owners. The biggest deal so far was Spelthorne Borough Council, which spent £360 million of largely borrowed money buying BP’s office complex at Sunbury-on-Thames. It is very pleased with the deal—but just think how many houses it could have built for that much.

The explanation for this hunger for commercial property is that local authorities are trying to bridge the gap between what they have now and what they have lost in the government funding that has been taken away. By buying property at low interest rates and letting it at higher rates, they hope to pocket a sizeable margin that they can use to spend on other things—which is fine for as long as the margin persists. They are able to do so because of the low interest rates at which they borrow. We may wonder how they manage to do that. A recent article by John Plender in the Financial Times explains exactly how it works. Councils are borrowing from the Public Works Loans Board, a very low-cost lender with average loans last year of 3.2%. It has plenty of money to keep on lending, too. In March last year it had loans of £65.3 billion outstanding, but its headroom goes up to £95 billion; so councils with an appetite for funding have plenty of it to go for. The Public Works Loans Board is run by the UK Debt Management Office, which is controlled by the Treasury—the very same Treasury that will not allow our local authorities to borrow large amounts of money to build the council housing they need. There seems to be a bit of a contradiction. I can see why local authorities are doing what they think they need to do, even though they would like to borrow to build social housing; they ought to be given more options.

Is it not somewhat strange that, just last year, Portsmouth City Council bought shops in Redditch, a ferry terminal, a Mercedes showroom in Southampton and a warehouse near Gloucester? It may be that Portsmouth has lots of information and knowledge about the commercial property market; we can only hope so. That goes for all the other local authorities that have been building up these vast portfolios. I am prepared to believe that local authorities know a lot about social housing, but I am not convinced of their knowledge about Mercedes showrooms or ferry terminals. Therefore, I would like the Minister to tell me, if he can, whether he is comfortable about the investments—I hope they are investments—these local authorities are making, or whether he can see a way to make more of that money available to invest in the social housing we so badly need.

Policing and Crime Bill

Baroness Wheatcroft Excerpts

Committee: 4th sitting (Hansard - part two): House of Lords
Wednesday 9th November 2016 Lords Chamber

[Lord Rosser]

My Lords, the noble Lord, Lord Moynihan, has explained the purpose of this amendment and the extent of its provisions. It is a very timely amendment: the Olympic Games in Rio were overshadowed by doping scandals. Russia was banned from the Paralympics, but did not receive a blanket ban from the main Olympics, despite the state-sponsored doping that had been exposed.

Now, a recent report from the World Anti-Doping Agency independent observers has highlighted failings in the anti-doping checks and procedures at Rio, which the report indicates put an almost unmanageable strain on drug testing during the Olympics. The result was that on Sundays, up to half of all drug tests did not take place because athletes could not be found at the athletes’ village or competition venues due to lack of support, training and information given to chaperones, whose job it was to notify athletes of testing.

Apart from management failings, the report also blamed the failings on budget and operational cutbacks. About 500 fewer drug tests were carried out at Rio than were planned, albeit failing a drugs test at the Games themselves suggests a competitor or their aides who are not particularly conversant with the ways of covering up the taking of drugs. In addition, more than a third of athletes competing in Rio were not subject to drugs testing before the Games in 2016, and of these, nearly 200 were competing in one of the 10 high- risk sports. Despite this report, the International Olympic Committee stated a day later that the report showed that it had been a successful Olympic Games with a successful anti-doping programme.

Doping issues are not, of course, confined to the Olympic Games. The Tour de France has not exactly been immune from them, and neither has tennis or football in this country, to give just three other examples. I suspect that most of us, including, not least, myself, just do not appreciate the full extent and breadth of prohibited substance-taking across different sports.

Prohibited substances, as the noble Lord, Lord Moynihan, has said, are taken to gain an advantage in sport over fellow competitors. They are taken to produce a false result which is not determined purely and solely by the skill and unaided effort of each competitor. That false result will at the very least be influenced—and at the worst determined—by the taking of a substance that improves performance unrelated to the skill or effort of the competitor concerned. It is a form of fraud. It is cheating—cheating not just fellow competitors but the public who paid to come watch the sporting event in the belief that they would see a fair competition with competitors competing on a level playing field.

The purpose of the amendment is, through a series of measures—including the creation, as in some other countries, of a criminal offence carrying, in exceptional circumstances, a custodial sentence—to throttle the deliberate and intentional use of drugs in sport by any person in this country or by any person in this country who,

“knowingly takes anywhere in the world a prohibited substance with the intention of enhancing his or her performance”;

or by any person, deliberately and intentionally, among other things, providing or administering to an athlete prohibited substances with a view to enhancing the performance of that athlete. The amendment also lays a responsibility on an organising committee.

The amendment would also require the Secretary of State to submit an annual report to Parliament which would include documenting the performance of the World Anti-Doping Agency in general in its effectiveness in preventing the offences provided for in the amendment, together with a requirement on the Secretary of State to determine whether the Government should remain a member of and continue to support the World Anti-Doping Agency.

The events before and during the Rio Olympics and the ever-increasing range of sports apparently affected by the use of prohibited substances suggest that doping in sport, including state-sponsored doping, is still not being taken sufficiently seriously by those at the most senior level who are in a position to stamp it out. The amendment is intended to toughen up our approach in this country to the serious problem of doping, including by people from this country competing, or assisting those competing, elsewhere in the world. We most certainly support it and hope that it will find favour with the Government.

[Baroness Wheatcroft (Con)]

I support the amendment. I cannot claim to be an expert on sport, but my noble friend Lord Moynihan most certainly is. His sporting legacy to this country is extraordinary, not least the performance of our team in the London Olympics, which was engineered by his work as chairman of the British Olympic Association, but also the extraordinary performance of our team in Rio. At first glance, the amendment appeared to be radical but, having heard the argument, I understand that we are lagging behind on this important front. That is not the right position for this great sporting nation to be in.

Beyond that, I fear that by not taking strong action against the use of drugs in sport, we are sending the wrong message to our youngsters, who look on sport as a career opportunity and wonderful thing, and to those who play sport as their great heroes. If people are banned from sport for a year or two and then come back, that seems to be acceptable. A prison sentence would be in a different league. That would send a message to our youngsters that this is something that they should not tolerate, and certainly not toy with. That is a very important message for this House to send. I support the amendment.

[Lord Harris of Haringey (Lab)]

My Lords, I, too, support the amendment. Like the noble Baroness, Lady Wheatcroft, I do not claim to be an expert in or have anything much to do with sport under most circumstances, but the amendment moved by the noble Lord, Lord Moynihan, is extremely important. This is about the confidence of the public and the importance to them of feeling that the sporting events they watch or participate in are genuine and not distorted in the way described. It therefore sends a powerful signal and if it indeed brings us back into line with other countries around the world, it is an extremely important thing for us to be doing.

My question—the noble Lord may have answered it in his remarks but if so I did not catch it—is: how broad are the sporting activities which the amendment covers? He talked about international sporting events, and we all have memories of what happened in the recent Olympics, in particular with the Russian team. However, as I understand it, the amendment covers all competitive organised sporting events where they are subject to a governing body. I should be grateful for that clarification and the extent to which it extends right the way through, because the governing bodies of the sports of which I have some knowledge are increasingly seeking not only to arrange the high-profile events but to encourage more people to participate at a lower level in local, regional or county events. It may be less likely that performance-enhancing drugs are used in those environments. However, I assume that this legislation is intended to pick up on those issues as well. It would be helpful if we had that clarity because it is important for people to have confidence in all sporting activities in this country, not just those at the highest level.

Bank of England and Financial Services Bill [HL]

Baroness Wheatcroft Excerpts

Tuesday 15th December 2015 Lords Chamber

[Baroness Wheatcroft (Con)]

My Lords, I echo the words of the noble Baroness, Lady Kramer. It seems that the Government have now moved to strengthen the role of the non-executives. That four of them should be able to call for a review answers many of the queries that have been raised. I completely agree with the noble Lord, Lord Turnbull, that nobody in the past accused the Treasury Select Committee of being a toothless body.

[Lord Myners (CB)]

My Lords, I declare an interest as a former member of the Court of the Bank of England. I support the amendment proposed by the Minister and I do not support the amendment to it proposed by the noble Lord, Lord Eatwell, largely for the reasons identified by my noble friend Lord Turnbull.

The functionality of the court has improved markedly since I was a member—no doubt the two are directly related. There was a dominance of the court by the executive, and the non-executives were, quite frankly, confused about their role. They did not manage to organise themselves in a manner that effectively challenged the Chancellor. I and one or two members of the court became so concerned that we felt the need to report that the court was not working effectively—but we then struggled to find out to whom we should report it. I remember going to see the Permanent Secretary to the Treasury and then the Chancellor of the Exchequer and saying, “The Bank of England is not working well because it is too detached from the real world of what is happening in banking, and it acts as the sole voice of one person—namely, the governor”. I believe that it is now a far more democratic institution.

However, I struggle to understand why this power requires to be reflected in law. I would have thought that the effective functioning of a board of directors, on which we have based the court, would allow the court to establish a sub-committee to do anything that it chose to do and that it did not need specific authorisation in law to do so. If the Government’s view is that that power does not exist for the court, we need to be very clear that the Government are telling us that the court should in no circumstances be considered to be on a par with the board of directors of a company in terms of holding the executives to account.

Bank of England and Financial Services Bill [HL]

Baroness Wheatcroft Excerpts

Monday 9th November 2015 Lords Chamber

[Baroness Kramer]

My Lords, I added my name to this amendment because this is a crucial discussion and an important opportunity to draw the Government’s attention to these issues. This Government, like many others and almost every speaker on financial issues in this House, have expressed their frustration with the short-termism that dominates the British financial services industry: a search for short-term profits rather than understanding the longer term perspective. Indeed, the Chancellor has often voiced frustration at the fact that UK pension funds are very unlikely to invest in the kind of long-term infrastructure projects he sees as essential for our country. Canadian pension funds will gladly invest, but not UK ones. We suffer from this ongoing blight. Of course, the ultimate frustration is that many of those who put their money into such pension funds would be absolutely delighted to see it invested in infrastructure, renewable energy and sustainable projects, because they are often looking for a 30 to 40-year horizon regarding the return on the money they invest. However, that is not the way the system works.

When the Bank of England was given responsibility for financial stability, there was an assumption that part of the thinking would then extend into that long-term arena, and that the Bank would be freed from the narrow and short-term issues of stability. In fact, I think the Chancellor talked about avoiding the stability of the graveyard and looking at the much longer term horizon. So far, the Bank has not used its wide range of powers or its influence to enter into that territory. Whether it is sustainability as defined by projects such as renewable energy, rail infrastructure or broadband, a wide range of projects need a response from the UK’s financial services. That surely requires the Bank to take some role, and to take cognisance of this issue. I hope that debates such as this will persuade the Treasury and Government to engage much more extensively in those conversations with the Bank in its various and many parts, and to consider whether the relevant committees should at least have regard to those priorities, and potentially see them as obligations and duties, given the important role that long-term investment plays in the future of the UK.

[Baroness Wheatcroft (Con)]

My Lords, listening to the debate this afternoon, it is clear that many have concerns about the power and influence of the Bank of England. However, I cannot help but feel that this amendment takes that concern a step too far. Much as I have great admiration for Mark Carney, I cannot imagine how he is expected to predict the effect of artificial intelligence. The duties we are putting on the Bank are already extremely far-reaching. The responsibilities now placed on the Financial Policy Committee are deep and will have a huge impact, but to ask it to range as far as this amendment is surely to demand something beyond common sense.

The role of ensuring financial stability is crucial. It means keeping our financial institutions on the straight and narrow, and watching out for problems. However, to ask for those decisions to be taken in the light of what may be happening 20 or 25 years from now is surely a step too far. The role of Government in thinking about such issues is clear, but we would be in very dangerous territory if we thought of the FPC as the arm of government to influence such decisions.

[Lord Davies of Oldham (Lab)]

My Lords, I would like to join in this debate because, although I respect the expertise of the noble Baroness who has just contributed, I am rather more in sympathy with the arguments of my noble friend Lady Worthington and the noble Baroness, Lady Kramer. I hear what was said about placing obligations on the Bank, but we should also appreciate that we have the benefit of the present governor—on whom I have not lavished many plaudits this afternoon as I was rather concerned about the future structure of the Bank, for which he will be responsible. Nevertheless, we all recognise the governor’s merits in taking a wider perspective on aspects of the economy than has perhaps been the case heretofore. Certainly, the speech that he made not so very long ago, in September, to Lloyd’s of London, in which he said that climate change is the “tragedy of the horizon”, ought to wake all of us with alarm, but also make us ask how we can adjust and make responsive our institutions to the anxieties that obviously flow from the developing and clearly established dangers of climate change.

Algorithmic Trading

Baroness Wheatcroft Excerpts

Monday 6th July 2015 Lords Chamber

Asked by

[Baroness Wheatcroft]

To ask Her Majesty’s Government whether the effects of algorithmic trading are being monitored and sufficiently regulated.

[The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley)]

My Lords, regulators continue to watch carefully and act when required in this fast-growing area of activity in financial markets. Investment firms and trading venues using algorithmic trading in the UK are already regulated and supervised by the Financial Conduct Authority and the Prudential Regulation Authority. From 2017 they will need to abide by the rules on algorithmic trading in the EU Markets in Financial Instruments Directive II.

[Baroness Wheatcroft (Con)]

My Lords, I thank my noble friend for his reply and declare my interests as listed in the register. MiFID II will undoubtedly improve regulation, although I welcome my noble friend’s assurance that the regulators will have the resources to implement those rules. However, does he share my wider concern about algorithmic trading—that it operates to the detriment of ordinary investors and is the antithesis of the long-term investment we should be encouraging? What can he do to address this?

[Lord Bridges of Headley]

My noble friend speaks with a lot of experience on these matters. I would point her to the very interesting Foresight research carried out by the Government, which looked into this. As a result of that, we do not think that the long-term investment decision-making by companies is undermined by high-frequency traders, which should be differentiated from algorithmic trading in the round. That said, during the last Parliament, in response to the Kay review, the Government initiated a broad review of reforms to address long-standing concerns that short-termism on the part of investors has impeded the creation of sustainable value by British companies. The Government are considering what steps are appropriate to make further progress in shifting the culture of equity markets towards long-termism.