(1 year, 8 months ago)
Lords ChamberI want to make one point on the quality of building, in particular the safety of new-build homes. In 2021, the average new-build property had 157 defects, up 96% from 2005. Would the Minister care to tell me when he thinks we might get back to the defect levels of 2005 and how the Government will achieve that?
I would love to tell the noble Baroness how that is to be done. I will consult my officials and do my best to do so.
(1 year, 8 months ago)
Lords ChamberMy Lords, with apologies, and being aware of the hour, I will be brief. I oppose in the strongest terms the amendment moved by the noble Lord, Lord Naseby.
The City of London is the last rotten borough. The elections to the City of London can in no way be described as democratic. There is also the City of London cache, a massive fund amassed over many centuries and explicitly excluded from freedom of information. The last figure that I have, from 2012, is of a £100 million per year income.
The rights of the City of London go back to William the Conqueror, who said that he would maintain all the rights and privileges that the citizens had hitherto enjoyed. It is about time that we finally modernised and got past that. In 1894, it was recommended by a royal commission that the City of London Corporation be abolished. I put on the record my desire to work with any noble Lord who wishes finally to reach that obvious conclusion.
My Lords, as my noble friend has explained, Amendment 178A seeks to remove voting restrictions on either housing issues or related planning decisions applying uniquely to members of the common council of the City of London who are also tenants of the City of London Corporation. Sections 618(3) and (4) of the Housing Act 1985 mean that, while an individual can be a councillor of the City of London if they are a housing tenant of the corporation, they cannot apply for a dispensation to vote on housing or related planning decisions. Voting in breach of Section 618 is a criminal offence. This is not dissimilar to the regime that applies under the Localism Act 2011 which also creates a criminal offence where a member fails, without reasonable excuse, to comply with the requirements to declare their disposable pecuniary interests, and takes part in council meetings.
Councillors in any authority elsewhere in England, operating under the disposable pecuniary interest regime in the Localism Act 2011, can apply for a dispensation to vote on matters where they have a declared interest—but there is no such discretion for the City of London to grant a dispensation where Section 618 applies. In short, this means that City of London councillors are being treated differently from all other councillors in England. I am aware that the City of London has raised the issue on previous occasions. I am grateful to my noble friend for his amendment. Between now and Report, I undertake to give the matter proper consideration and would be happy to arrange a discussion with my noble friend if he would find this helpful.
(1 year, 8 months ago)
Lords ChamberMy Lords, this group of amendments relates, as we have heard, to transport functions and associated arrangements of combined county authorities. Before I address the amendments, I say to the Committee in response to those noble Lords who question the Government’s commitment to levelling up in the area of transport—in particular the noble Baroness, Lady Hayman, but also the noble Lords, Lord Berkeley and Lord Stunell, and the noble Baronesses, Lady Randerson and Lady Bennett—that the Government are committed to delivering improvements to transport across the north and across the piece. Let there be no doubt about that. We are committed to supporting all forms of transport. Indeed, between 2020-21 and 2022-23 we have invested over £850 million in active travel alone. The Transpennine Route Upgrade is the Government’s biggest single investment in upgrading the country’s existing railway, and is part of our continuing commitment to transforming rail connectivity across the north of the country. I plead with noble Lords to have some faith in the Government’s commitment in this area.
Amendment 92 tabled by the noble Baroness, Lady Hayman of Ullock, looks to place a requirement on the Secretary of State to publish an annual report on any differences in integrated transport authority functions conferred on combined county authorities, and the rationale behind them. It is of course important to help interested parties understand differences in conferral of transport functions between CCAs. Once established, the combined county authority will become the local transport authority responsible for managing public transport in the CCA’s area.
The functions conferred on combined county authorities from an integrated transport authority to enable the CCA to be the local transport authority will be a merger of those currently possessed by the CCA’s constituent local authorities, with their agreement and consent. These will be agreed with the local authorities as the combined county authorities are established, and this approach will be consistent across all CCAs. Therefore, as this clause relates only to powers already held locally, there is no need for the Secretary of State to produce such an annual report because there will be consistency across CCAs. The Explanatory Memorandums to the secondary legislation will also provide an explanation of transport powers that the combined county authority will be responsible for.
Amendment 93, tabled by the noble Baroness, seeks to allow residents in the area of a combined county authority with transport functions to be able to petition their CCA and the Government for new transport infrastructure. We support residents having the ability to push for new transport infrastructure for their area; indeed, this is already possible. The residents of an area with transport functions are already able to petition their local authorities, including for transport infrastructure, and this will be the same for combined county authorities once created. Therefore, creating this additional requirement relating to transport specifically for CCAs is unnecessary.
I come now to Amendment 94, tabled by the noble Baroness to require a combined county authority to publish an assessment within 90 days, if they are transferred certain functions, on whether transport infrastructure in their area is sustainable. An assessment of infrastructure sustainability in a CCA’s area already forms part of a local transport plan. Where a CCA has been given transport functions, it will include this assessment as part of its local transport plan anyway, so we feel there is no need for a separate time-limited assessment.
Amendment 95 tabled by the noble Baroness, Lady Hayman, would require a combined county authority to undertake an assessment of any company operating a train franchise in its area. There are already contractual reporting arrangements between train operators and the Government, and the train operating companies report their performance publicly on their websites and with key strategic partners, such as CCAs. In line with the Government’s commitment to not create additional bureaucratic burdens, we would not expect to mandate a report on any CCAs. Furthermore, if the CCA feels that it wishes to undertake such an assessment, we would expect it to utilise the existing reporting mechanisms. Given the existing reporting already in place, I hope that she will feel satisfied that the measures are sufficient.
I am wondering how this fits in with local government reporting, in the context of Britain’s legally binding net-zero obligations. This brings to my mind a broader question, but I will understand if the Minister wants to write to me later. How do the actions of the CCA fit within the overall framework of delivering net zero?
If the noble Baroness will allow me, I will write to her on that, because I do not have an answer that would satisfy her in my brief.
Amendment 96, tabled by the noble Baroness, Lady Hayman, would require combined county authorities to notify the Secretary of State of any plans to begin a local travel survey within 30 days of being transferred functions under Clause 19. There is no legal requirement surrounding a combined county authority’s use of local travel surveys. Creating a legal requirement on CCAs for the reporting of their use within 30 days to the Secretary of State would, I suggest, place an unnecessary burden on CCAs, relative to the benefit.
Noble Lords may be interested to know that the Department for Transport conducts a national travel survey. We would expect CCAs to conduct further work locally to gather evidence in developing their local transport plans. However, we feel that mandating the use of local surveys in this way would be disproportionate, so I am afraid we do not feel we can accept this amendment.
I turn to Amendment 97, tabled by the noble Baroness, Lady Taylor of Stevenage. It would allow the Secretary of State to make regulations to confer on a combined county authority a power to designate railways, bus routes and cycle paths as key routes. The purpose of a CCA designating a route as part of its key route network is to enable the mayor to direct local councils in how they should use their powers as the highway authority for that route, if they are not carrying out actions agreed under the local area transport plan. For example, a combined county authority mayor might direct local authorities to build a particular bus lane on part of the key route network, which would have strategic, area-wide benefits for the CCA as a whole.
CCAs will already be able to designate bus and cycle lanes that form part of a highway in their area as part of the key route network under the existing Clause 22. The powers that local authorities have as highway authorities do not extend to railways, so allowing CCAs to designate them as key routes would have no effect on their operation. Given that CCAs will be responsible for the local transport plan for their region, we would expect them to identify their key transport routes and plan how to manage these, including railways.
Amendment 98, tabled by the noble Baroness, Lady Taylor, would enable the Secretary of State to confer a power on a combined county authorities to designate their area’s transport infrastructure as in need of regeneration. I would like to reassure her that, once established, combined county authorities, like existing local authorities, will have multiple means through which to petition the Government for improved transport infrastructure for their region. For example, Network Rail is responsible for maintaining the railway and for any renewals to ensure a safe and efficient-running railway. When it comes to enhancements being sought for railway improvements, we follow the rail network enhancements pipeline policy, which sets out how areas can engage with government on rail improvements.
On local roads, the Department for Transport provides local highways maintenance funding through the highways maintenance block and the potholes fund, which provide annual funding for eligible local highways authorities, including future combined county authorities, to locally prioritise investment in local roads and associated infrastructure, such as bridges and lighting columns. The Department for Transport will also maintain regular contact with combined authority areas, which will provide ample opportunity for areas to make the case for transport infrastructure improvements.
(1 year, 8 months ago)
Lords ChamberMy Lords, as we have heard, this group of amendments covers preconditions for establishing, and indeed disestablishing, a combined county authority. This process is locally led and it aligns with the process for a combined authority that we have seen successfully used in many areas to date.
Amendment 61, tabled by the noble Baroness, Lady Taylor of Stevenage, seeks to insert a requirement into Clause 7 that the Secretary of State can establish a combined county authority via regulations only if they deem there to be at least 60% support from local residents in the area to be covered by the CCA. In a similar vein, Amendment 127, tabled by the noble Baroness, Lady Bennett of Manor Castle, seeks to insert a requirement into Clause 44 for there to be a referendum before the Secretary of State may make regulations to establish a combined county authority, and for this question to be approved by a majority of local government electors.
We do want to ensure that the local public, in the broadest sense, are consulted on a proposal to establish a combined county authority in their area. This desire on the Government’s part is already captured by the requirement for a consultation provided for in Clause 43. Clause 43(4) states that, prior to submitting a proposal for a combined county authority to the Secretary of State, the local authorities proposing the establishment of a CCA must undertake a public consultation on the proposal in the area that the CCA will cover.
The noble Lord, Lord Shipley, asked, perfectly reasonably, what a proper consultation would look like. One important element is that it would have to cover the waterfront, as it were, in terms of stakeholders, to get a real sense of the strength of feeling and the climate of opinion in an area, and the extent to which an authority has taken the trouble to represent the scope of that opinion and feeling in the submission it makes. Once the consultation has happened, the authorities must submit a summary of consultation responses to the Secretary of State alongside their proposal.
When deciding whether to make the regulations to establish a combined county authority for an area, one of the tests the Secretary of State must consider is whether the area’s public consultation is sufficient. That is a judgment the Secretary of State must make in the light of the information presented, but if they conclude that it has not been sufficient, Clause 44 provides that the Secretary of State must undertake a public consultation before any regulations can be made.
I noted the point made by the noble Baroness, Lady Hayman, and will take advice on why that clause is worded as it is. I suggest to her that there is nothing sinister in it—it is the way that these legal provisions have to be drafted—but the net effect is as I have described, because what we wanted to introduce was a safety net, as it were, of a further Secretary of State-initiated consultation if that was deemed necessary. I hope the fact that we have done that demonstrates the importance which the Government attach to the consultation process.
We believe that the existing clauses provide for sufficient local consultation. I hope the way I have outlined the provisions and what we intend them to do in practice has persuaded the noble Baroness, Lady Bennett, that a referendum would be unreasonably burdensome. What we want, above all, is transparency of local opinion and that I hope we will get.
Many examples are flashing through my head, but I am thinking about one particular local government consultation that I saw, which happened to be around the city of Chester. The consultation asked, “Do you want to build on the green belt in areas A, B, C, D or E?”. Many local people pointed out to me that they wanted to say, “None of the above”, but there was no space in the box or provision to do that. So can the Minister reassure me that part of the Secretary of State’s examination of the summary of consultation responses will look at whether the consultation truly gave the space for local opinion to be expressed?
That is certainly the aim. I do not know whether the noble Baroness would agree with me that one of the downsides of referendums that we have seen in the past is that people are asked to take a binary decision. That very often does not allow for the nuances and subtleties of an issue to be presented in the question, to put it at its mildest. So we think the consultation model is more appropriate for this type of situation, particularly as the different constituent elements of a community will have different interests and viewpoints on the issue in question.
(2 years, 8 months ago)
Lords ChamberI do not contradict the noble Lord in any respect as to what he said about trade unions. I say again that I cast no aspersions on trade unions or their practices at all. I am simply saying that it seems unfair and undemocratic to have this distinction made in the way the noble Baroness seeks to do in her amendment.
Fundraising is a legitimate part of the democratic process. There is no cap on political donations because parties, candidates and other types of campaigner have strict limits on what they can spend on regulated campaign activities during elections.
The other amendment in the noble Baroness’s name—
Before the Minister goes on to the next amendment, I asked whether he agreed that there should be any limit. If we imagine an election campaign, one party’s spending limit is about £20 million. Does the Minister think it appropriate that one person can donate £20 million for an entire election campaign? What does he think that would do to our democracy?
My Lords, there are two issues there: one is the question that the noble Baroness seems to be asking, which is whether there should be a limit on donations, and the other is whether there should be a limit on spending. There is a limit on spending in general elections, as she well knows. If she is asking whether I think there should be a cap on donations, I have to say that I do not.
Sorry, perhaps I was not clear. To put it another way, should there be a maximum percentage that one person can donate to one party’s campaign? If a campaign is funded to the maximum spending limit by one person, it is one person’s campaign. Does the Minister think that would be appropriate?
That is a highly hypothetical question. I would be happy to give it consideration. For the moment I have to say that the answer is no, but I will reflect on it.
The other amendment in the noble Baroness’s name, Amendment 212B, seeks to place new obligations on donors to report donations to the Electoral Commission where the aggregate total for the year is over £5,000. Yes, there should be transparency around any significant amount of money funding parties and election campaigns, but that does not mean putting the burden on donors. It is for political parties and candidates—the recipients of the donations, who are familiar with the rules—to keep accounting records and report donations over the relevant thresholds to the Electoral Commission. Placing any unnecessarily bureaucratic responsibility on donors such as individual citizens could lead to a chilling effect and discourage people from making donations.
Amendment 212DA, tabled by the noble Lord, Lord Stunell, seeks to cap donations to political parties at £10,000 per calendar year. Perhaps inadvertently, it would require that every penny in a collection box be recorded and attributed to someone, effectively spelling an end to small donations. Even more significantly, the Government cannot, on principle, support caps on donations as this would only lead to taxpayers footing the bill for the inevitable funding shortfall. There is absolutely no public support for expanding the level of public funding already available to political parties. Public funds should be focused on delivering world-class public services and levelling up communities across our country.
The noble Lord asked about the recommendations in the report from the Committee on Standards in Public Life. The Government responded to the report published by the CSPL on regulating election finance in September last year. The Elections Bill already contains measures that closely link to recommendations made in that report, such as the new requirement on political parties to declare their assets and liabilities over £500 on registration, and a restriction of third- party campaigning to UK-based or otherwise eligible campaigners. However, as the Government response stated, the recommendations in the report deserve full consideration, and more work must be done to consider the implications and practicalities, which, I hope the noble Lord will acknowledge, are very considerable.
In conclusion, controls on electoral funding and transparency of electoral funding are a key cornerstone of the UK’s electoral system and contribute to a healthy democracy. UK electoral law sets out a stringent regime of donations controls to ensure that only those with a legitimate interest in UK elections can make political donations and that political donations are transparent. The Government absolutely recognise the risk posed by those who wish to evade the rules on donations. That is why there are existing provisions which explicitly prohibit money being funnelled through permissible donors by impermissible donors, and why it is an offence for donors and campaigners to purposefully evade the rules.
It is right that voters and organisations with a legitimate interest in UK elections be able to donate to political parties, candidates and campaigns. Our democracy is strengthened by people donating to campaigns that they believe in. I am, of course, aware that stories about political donations are never far from the newspapers, but rather than being indicative of a broken system, I firmly believe that this is a sign of the system working. The checks that parties and other campaigners are required to carry out and the reports published by the Electoral Commission allow the press and the public to scrutinise political donations. It is very important to balance the need for parties and other campaigners to generate funds against the cost of actually carrying out checks on donations to ensure they come from permissible sources. The current rules are proportionate and achieve that balance. I hope that, on that basis, noble Lords will feel able not to move their amendments when they are reached, and that the noble Baroness, Lady Hayman, feels able to withdraw her amendment.
(2 years, 8 months ago)
Lords ChamberMy Lords, the noble Baroness, Lady Bennett, has brought us back to issues that we debated in Committee and I understand her concern about propriety in the deployment of public funds. I have no problem with the idea that Ministers and public servants should do all they can to ensure that public money is used effectively for the greater good. That is what they are obliged to do anyway. However, I do not feel that this duty is best served by accepting the amendment, even though it has been newly worded.
In my answer in Committee, I described how during the pandemic we learned about the importance of speed and flexibility in the way that we respond to a crisis. I suggest that this amendment would impede the Government’s ability to provide emergency support to critical providers. That does not mean handing out money willy-nilly. Any use of the power will be subject to the usual scrutiny and safeguards around the use of public funds, as set out in Treasury guidance on Managing Public Money and Accounting Officer Assessments.
There is a fundamental problem with the proposition that the noble Baroness has advanced. The amendment refers to “day-to-day operations” but there is no single accepted definition of that term. Any company could find itself excluded from receiving critical funding depending on how its accounts and finances are structured. For example, there are potential scenarios where the Government could ask providers to carry out activities at pace which may involve them in creating unavoidable debts, for which they would need reimbursement. In that situation there would be nothing improper in any government funding being used to repay that debt, but even if there were no such debts involved, the problem remains that any private company would be prevented paying dividends, as it would be logically impossible to disassociate the long-term effects of the assistance from the ability of the company to pay such dividends. I understand the concerns of the noble Baroness about unscrupulous people and fraud, but the amendment as worded is not well conceived.
Turning to Amendments 146 and 147, again, nobody can be comfortable with the idea of rogue investors or unscrupulous care providers. However, I made clear in Committee that the Government are committed to ensuring that we have a sustainable care market. We have already set out a number of planned actions, most notably in the People at the Heart of Care: Adult Social Care Reform White Paper, to achieve this objective. Noble Lords are aware that the adult social care sector is complex, as it contains both the public and the private sector. One thing that the two sectors have in common is the need to maintain not only quality of care but financial stability. To ensure that these businesses provide the care that they are required to, local government and regulators, such as the Care Quality Commission, monitor, regulate and support the sector.
As I mentioned in Committee, the CQC has market oversight responsibility, and in discharging those responsibilities, it performs comprehensive financial sustainability analysis for each provider in the scheme, including some private equity ownership structures. Debt leverage and capital structure are important components of this work, but consideration is also given to current and future trading trajectories, cash headroom and market positioning.
We also have in place the CQC-operated market oversight scheme, which monitors the financial health of the largest and most difficult-to-replace providers in the adult social care sector, ensuring that people’s care is not interrupted due to provider failure, which must be a proper concern. Since its establishment in 2015, there have been no major business failures of care providers that have resulted in the cessation of care.
We have always been clear that fraud is unacceptable. We are acting against those abusing the system; 150,000 ineligible claims have been blocked on the Covid-19 schemes, and £500 million was recovered last year. The HMRC tax protection task force is expected to recover an additional £1 billion of taxpayers’ money. Therefore, even if cash is diverted fraudulently, there is still the ability of the authorities to recover such cash.
I assure the noble Baroness that the Government will continue to keep the measures which I have outlined under review but, at present, we do not believe that the proposed and very prescriptive amendments are either proportionate or necessary. I hope she feels that she can come back to this matter at a future date. With that, I am clear that these amendments should not be accepted.
My Lords, I thank all noble Lords who have taken part in this debate, and the Minister for his typically comprehensive response. It is interesting that the Minister very much focused on the issue of fraud and fraudulent transactions. I go back to the words of the noble Lord, Lord Howarth of Newport, who referred to what is happening as “legalised theft”. None of these amendments seeks to deal with things that are illegal; they seek to deal with things that are now an established part of our financialised, privatised system, which has all this simply built in.
I thank the noble Baroness, Lady Brinton, particularly, who provided a pre-answer in advance of the Minister’s response to Amendment 145, by saying that it was very difficult to separate out day-to-day operations and debts versus financialised debts. In demonstrating what the Charity Commission has done, the noble Baroness showed an effective example of how that can be done and different kinds of debt can be identified. The Minister said that you might need to create some special new financial structure to deal with an emergency situation. I think we know the practical reality of the financial-type structures that we are talking about, and that they are not created under those sorts of situations; they are created in a way to hide where the money is going—to ship the money offshore. That is not something that you would do in a situation where you are simply trying to rescue something.
The point made by the noble Baroness, Lady Tyler, about the inherent instability really brings home the point that what we are talking here, with regard to care homes, is people’s homes. I am glad to see that the noble Lord, Lord Kamall, is in his place, because in another discussion I raised with him the fact that people who are forcibly moved when homes are closed can actually die as a result of it happening. I hope he has made himself more aware of that situation and the risk it presents to people’s lives.
The noble Baroness, Lady Tyler, focused on some of the difficulties that the National Audit Office has had in scrutinising this whole situation. She highlighted the facts that I was talking about—how, when the National Audit Office is able to scrutinise situations, all we get is complaint. The noble Baroness highlighted how it is not even able to conduct scrutiny in this sector because of the kind of financialised structures that we have.
I am pleased that the Minister finished by noting that I am likely to come back—he perhaps even invited me to come back on these issues. It is something that I certainly intend to do. These are very complex areas, as I acknowledge, and this is an attempt to take on some extremely well-funded organisations and professional groups. Just to conclude, it is interesting that the noble Lord, Lord Howarth of Newport, as I did, contrasted the Russian kleptocrats we will talk about on Wednesday versus what we are talking about here. Of course, it is possible that they are not two groups and there might be some overlap. I invite any investigative journalists listening to have a look at whether we might be able to see an overlap there.
At the moment, it is my intention to withdraw the amendment, but I do not regard this issue as in any way dealt with or finalised. I beg leave to withdraw the amendment.
(2 years, 9 months ago)
Lords ChamberI raised the issue of the lack of public trust in tap water and the fact that that is a public health issue and could be magnified. Could the Minister comment on that and suggest what the Government are planning to do about it?
I apologise to the noble Baroness, because she was making a significant point. I am not sure that I share her perception that those who buy bottled water in supermarkets necessarily do so as a reflection of their lack of trust in tap water; a lot of it has to do with some myths around the benefits of bottled water. However, be that as it may, I will take advice and write to the noble Baroness. I am not sufficiently sighted on the issue she raised and the evidence behind it, so it is probably appropriate if I look into it and write to her.
(2 years, 10 months ago)
Lords ChamberMy Lords, as I was about to say, the 2012 Act does provide for the ability of the Secretary of State to intervene when that is necessary for the smooth and effective running of the system. Furthermore, we should not exaggerate the extent to which this Bill modifies the 2012 provisions. As the noble Lord said, we will debate the powers of direction on a future occasion but, when we come to do so, my colleagues and I on the Government Benches will contend that the powers of direction, such as they are, are very narrow and specific in their scope. They have been deliberately framed in that way to reflect experience over recent years. I would not be in favour of reopening this piece of drafting, given its history and the effort that noble Lords from all sides of the House made to build an effective consensus in respect of the 2012 Act.
The noble Baroness, Lady Brinton, asked about dental access. The department is working closely with NHS England to increase levels of service as quickly as possible. Practices are continuing to prioritise patients based on clinical need. Dental practices are now being asked by NHS England and NHS Improvement to deliver at least 85% of contracted units of dental activity—UDAs—between January and March 2022 to provide improved access for patients. These updated figures are based on what many practices have been able to deliver to date. They take into account adherence to the latest infection prevention and control guidance. I hope that this is helpful to the noble Baroness.
I hope also that I have explained to the noble Baroness, Lady Bennett, why I cannot entertain her amendments, but also that I have reassured her that the accountability chain between health services, Ministers and Parliament, which lies at the centre of her concerns, remains intact.
My Lords, I thank the Minister for his response and thank all noble Lords who have taken part in this debate. I particularly thank the noble Baroness, Lady Brinton, for her support. She stressed how this is very much about restoring a public health system with full public accountability.
I was a little surprised, not so much by the direction as by the emphatic nature of the comments from the noble Baroness, Lady Wheeler, given that it was members of her party who moved the amendments in the other place. To address the Minister’s comments—this also picks up the point raised by the noble Lord, Lord Hunt—we are talking about a significant change in relation to power of direction; a power that we will be discussing further, at great length, and about which we have seen considerable expressions of concern. I come back to the way I framed my speech: if you have more powers, you have more responsibility. If you say, “We covered all this in the 2012 Act—it’s all fine”, once could argue that the 2012 Act did not work out fine, but we are in a new situation, creating very new structures.
Thinking about the success or otherwise of accountability, some issues where we have failed in terms of accountability—and we will see amendments on these later—are workforce planning and, as the noble Baroness, Lady Brinton, highlighted, dental provision.
This is about ensuring that people have faith, know who to look to and cannot be fobbed off, as the noble Baroness, Lady Brinton, said, by this terrible, complex diversity of funding and arrangement structures. Like other Members of your Lordships’ House, I took part in the public debate in 2012, not in this place but in the public domain, and I have given many speeches on this issue. The complexity must not be allowed to cover over the fact that what people want to know is that the healthcare is there when they need it, and if it is not that they know who to point to.
I will of course withdraw the amendment at this point, but I reserve the right to consider this and come back to it at a future point.
(3 years, 7 months ago)
Lords ChamberMy Lords, as I set out in our earlier debate, the Government agree that effective oversight of the regulation of our financial services sector and consultation with a diverse range of stakeholders are crucial to the sector’s ongoing success. As we have discussed previously, Parliament has a unique role to play in that oversight function.
In that context, I will set out the existing mechanisms that ensure effective independent oversight of the sector and its regulation by a diverse range of stakeholders. I will not repeat my previous remarks on the regulators’ arrangements for publishing consultations and the manifold ways in which they are already held to account by various panels and Select Committees.
I understand that this amendment is partly inspired by Finance Watch in the EU, an organisation which conducts research, monitors financial services legislation inside the EU and advocates on financial services issues. As the noble Baroness indicates in her amendment, we do not have a body in this country that performs an equivalent role; were we to have one, I imagine it would be made up of industry stakeholders of various kinds. As noble Lords will know, parliamentary committees can and do seek input from a wide variety of experts. In doing so, they can bring together the existing expertise of academics, think tanks and industry stakeholders.
Nothing prevents the creation of such a body in this country without a legislative basis; indeed, the EU organisation was not created by EU law but was simply set up as a non-profit organisation under Belgian law. It is funded by a combination of contributions from its members and philanthropic foundations and grant funding from the EU, for which the group has to bid.
The Government and the regulators regularly consult on their plans and proposals, and interested parties, including those from the backgrounds set out in this amendment, are free to respond. The Government and regulators consider all responses to such consultations carefully and consider how the views expressed should influence final policies and rules. I am concerned that this amendment would therefore duplicate existing practices in a very real sense.
In addition, it would appear to duplicate the work carried out by the Financial Policy Committee of the Bank of England. The FPC acts as the UK’s macroprudential authority; it identifies, monitors and acts to remove or reduce systemic risks to the UK financial system. It may make recommendations to the Treasury, the FCA and the PRA, and is required to publish a financial stability report twice a year setting out its view of the outlook for UK financial stability, including its assessment of the resilience of the UK financial system and the main risks to UK financial stability.
Given this, and the existing processes that I have set out in previous debates today that offer ample means for achieving the outcomes sought by this amendment, I hope the noble Baroness will feel able to withdraw it.
My Lords, I thank the Minister for his response and all noble Lords who have taken part in this debate.
The noble Baroness, Lady Noakes, suggested that what this amendment covers is actually a core function of the Treasury. That is very much not the case. The Treasury is the definition of the establishment, part of the Government; this is an outside, independent oversight body. She also said that Parliament takes a keen interest in financial regulation. That conclusion can be questioned by looking down the lists of speakers through the progress of this Bill and contrasting them to the lists of speakers for, for example, the Domestic Abuse Bill.
(3 years, 9 months ago)
Grand CommitteeMy Lords, I thank the Minister for his comprehensive answer, although I ask again, how can the Government justify having included climate change considerations in the then Pension Schemes Bill last year, but not in this far larger, more significant Bill in 2021?
I want to respond to what the Minister said: that there is no evidence that greener means prudentially safer. I hope I am quoting him accurately. I refer specifically to the fossil fuel companies that the noble Baroness, Lady Sheehan, mentioned earlier, as well as to mining companies with a substantial role in environmental destruction. As the UNEP report to which I referred earlier said, this is unlikely to continue to be tolerated on the international stage. Surely the Government are aware and are taking account of the Carbon Tracker Initiative, which is responsible for popularising the term carbon bubble, if not for inventing it. The excess of carbon beyond climate limits is termed unburnable carbon, some of which is owned by listed companies. This has the financial implication of potentially creating stranded assets and destroying significant shareholder value.
The Carbon Tracker Initiative says that valuations tend to be based on near-term cash flows, which are less likely to be affected by climate-related factors. However, exposure varies, and some companies will be in a far worse position than others, as the demand for fossil fuels and the ability to burn them reduces. Surely, this is a potential concern and a risk that the greening of companies can tackle.
My Lords, I failed to cover the Pension Schemes Act. I apologise to the noble Baroness. The Act provides a power to bring forward regulations, placing various obligations on pension schemes relating to climate change risks. The provisions in the prudential package of the Financial Services Bill do something slightly different. They place a duty on the regulators to have regard to certain matters and to explain how they have been considered, given that the Bill imposes duties on the regulators to make rules relating to Basel and the IFPR. I reassure the noble Baroness that my officials and I have considered these provisions carefully, as we have the other amendments discussed today.
As regards her main question, my point was simple. As yet, there is no international agreement on what the term “green” means. Therefore, we cannot say with certainty that greener means prudentially safer. I do not say that we will never be able to, but it is not possible at present.
(3 years, 9 months ago)
Grand CommitteeI have received one additional request to speak after the Minister, and I call the noble Baroness, Lady Bennett of Manor Castle.
My Lords, I thank the noble Lord the Deputy Leader for his full response in our previous discussion, but there was one figure that he raised in that response that I wanted to ask him about the source of and justification for. That was the claim that the financial sector contributed £76 billion in tax receipts. I am basing this question on work done by a fellow Member of your Lordships’ House, the noble Lord, Lord Sikka, who may not be joining us until later—so I wanted to raise this point now. I understand from his work that this figure comes from a report prepared by PricewaterhouseCoopers and includes £42 billion borne by customers in the form of VAT and paid by employees in the form of income tax and national insurance contributions. The remaining £33 billion is an estimate, and the report says that PwC
“has not verified, validated or audited the data and cannot therefore give any undertaking as to the accuracy”.
Could the Minister tell us what further justification the Government have for that figure?
My Lords, this is clearly a detailed and analytical question, which is probably not appropriate for Grand Committee. I would be happy to write to the noble Baroness, giving her chapter and verse as far as I am able to do.
(4 years, 8 months ago)
Lords ChamberGovernment figures say that there have been 477,000 new universal credit claims in the past nine days, and social media is full of accounts of some 30,000 or 40,000 people being in the queue just to apply. What steps will be taken to ensure that everyone can get access to the provisions to which the Minister has referred?
I am aware that self-employed claimants will not be required to attend a jobcentre; universal credit can be claimed online or via the telephone. Self-employed people who are unable to work because they are directly affected by Covid-19 or are self-isolating will also be eligible for contributory employment and support allowance. As announced in the Budget, this is now payable from the first day of sickness rather than the eighth. I recognise that we are likely to see a wave of applications and that the system can cope with only a certain number at a time, but I am aware that the system has been geared up to expect that wave. I can only assure the noble Baroness that the officials and civil servants involved in this process are as keen as anyone else not to let anyone in need go without.
(4 years, 9 months ago)
Lords ChamberMy Lords, this House is I hope aware that since 2000, the Green Party has won in general elections between 1.8% and 4.3% of the vote, yet my noble friend Lady Jones of Moulsecoomb and I make up less than 0.3% of the membership of this House—I am aware noble Lords may think we are more. Will this be addressed and reviewed for the Green Party and other underrepresented parties?
(4 years, 10 months ago)
Lords ChamberTo ask Her Majesty’s Government what plans the Constitution, Democracy and Rights Commission has to engage with civil society.
My Lords, the commission will examine the broader aspects of the constitution in depth and develop proposals to restore trust in our institutions and in how our democracy operates. We anticipate a wide degree of engagement, and the Government will ensure that civil society’s valuable role in informing the work of the commission is not overlooked. Careful consideration is needed on the composition and focus of the commission, and further announcements will be made in due course.
I thank the Minister for his Answer. On the question of the commission’s focus, the City of London Corporation enjoys many special privileges and perks in the UK constitution. For example, the corporation has the unique right to propose private legislation via its own parliamentary agent, the remembrancer. Will the Minister commit that the constitution review will consider the position of the City of London—the last rotten borough, which gives so much power to our banking sector—and bring the City of London into line with all other local authorities?
My Lords, I understand completely the noble Baroness’s desire for clarity on the issues she refers to. However, I am afraid that it is too soon for me to be able to provide her with answers, as much as I should ideally like to. No decisions have been taken on either the composition or the focus of the commission. Once we are able to make an announcement, we will do so.