(1 year, 7 months ago)
Commons ChamberWith permission, Mr Speaker, I would like to make a statement to update the House on the infected blood inquiry.
The Government welcome the publication of the infected blood inquiry’s second interim report, and I would like to thank Sir Brian Langstaff and all those who have contributed. The infected blood inquiry has done a huge amount of work on an intensely complex issue, ensuring that victims’ voices are heard. I have been deeply moved by the testimonies outlined in the latest report, and the victims’ bravery in coming forward should not be overlooked.
The issuing of a second interim report specifically on compensation was not anticipated by the Government until we were informed of it by the inquiry in February this year. However, we very much appreciate and welcome Sir Brian taking this approach. The Government are considering intensely the recommendations outlined in this report, and work is under way at pace across all relevant Departments to respond fully.
My right hon. Friend the Member for Maidenhead (Mrs May) announced the infected blood inquiry in 2017 to examine the circumstances that led to individuals being given contaminated blood and blood products in the UK. The inquiry, chaired by Sir Brian Langstaff, commenced on 2 July 2018, and I would like to reiterate our total endorsement of my right hon. Friend’s point that the
“contaminated blood scandal of the 1970s and 80s…should simply never have happened.”
In tandem with the ongoing inquiry, my right hon. Friend the Member for Portsmouth North (Penny Mordaunt), then Paymaster General, commissioned Sir Robert Francis KC to produce a compensation framework study in anticipation of a recommendation from the inquiry to set up a compensation scheme. The findings of this study were published in June 2022.
Shortly after that, in July 2022, Sir Brian published his first interim report of the infected blood inquiry. In his report, Sir Brian recommended that the Government make interim payments to infected individuals and their bereaved partners. The Government accepted this recommendation in full on 17 August 2022, and interim compensation payments of £100,000 have been paid to those infected individuals and their bereaved partners registered with existing support schemes.
As I said to the House in December:
“We have much to do, but I wish to assure the House…that this is a priority for the Government and we will continue to progress it.”—[Official Report, 15 December 2022; Vol. 724, c. 1251.]
I would like to assure the House that this commitment absolutely remains.
Sir Brian’s most recent report sets out what the inquiry recommends as an appropriate means of compensating both those infected and affected, and the mechanism for delivering that compensation. In doing so, it sets out the complexity of what is a multi-layered issue. The recommendations in his report outline that those infected and affected should be granted legal support, and infected and affected people and the estates of infected people should be able to claim for categories of loss against five awards: injury impact award, social impact award, autonomy award, care award and financial loss award. This is rather than claiming on an individual assessment of each application. In addition, those dissatisfied with their compensation payments should have redress through an appeal to a structure outside the compensation scheme.
The report has also proposed mechanisms that Sir Brian thinks will ensure the fairness of the compensation scheme. He has recommended that the scheme be administered by an arm’s length body, chaired by a High Court judge or equivalent, and advised by legal and medical professionals, as well as the beneficiaries of the scheme. In addition, Sir Brian has proposed that the route through the courts should still remain open to beneficiaries.
Sir Brian has agreed with much of Sir Robert’s study, but there are also differences in approach. For example, Sir Robert outlined in his study that the scheme should be delivered locally in each of the four nations as this was the preference of the victims. Sir Brian has recommended that the scheme be delivered by a central body, while continuing the support provided by the existing infected blood support schemes, which should be continued and guaranteed for life
“by legislation or secure government undertaking”.
There is also divergence in the consideration of scope of those eligible for compensation payments, including the extension of payments to those with hepatitis B, and not providing payments to the estates of those affected.
Sir Brian’s interim report is detailed, and it is only right that the Government will need to consider the complexities it sets out thoroughly when preparing our response. The House will recognise that health is a devolved matter, and I will be discussing the report with my colleagues in the devolved Administrations.
As I said at the start of my statement, the Government welcome the publication of the infected blood inquiry’s second interim report to assist its ongoing work. However, we do not underestimate the complexity of these recommendations, which do need careful consideration. For example, Sir Brian recommends an arm’s length body in which His Majesty’s Government would have no ongoing role beyond providing taxpayer funds as required by the body. On anything like this scale, this would be a new departure, and it does have implications for Government accountability that will need careful consideration alongside how its financial implications will be managed.
However, I would like to reassure the House that while the Government are progressing work to ensure that we are in the best possible position to respond fully at the end of the inquiry, every recommendation by Sir Brian, including in relation to timing and a further interim payment, is receiving intense focus.
My colleagues in the Department of Health and Social Care are aware of issues that Sir Brian has raised in relation to psychological support. Under the current psychological support scheme for England, there is provision for a grant of up to £900 a year, for established beneficiaries and family members, for counselling and talking therapy. The Department of Health and Social Care is undertaking research to look at the psychological support needs so that decisions on commissioning a bespoke service are based on robust evidence and meet the requirement.
In closing, I would like to reiterate the need for pace. People die every week as a result of the impact of the scandal. This Government want to deliver resolution, and we are working at pace across all relevant Departments to consider the recommendations as outlined in this latest report and to ensure that we are best placed to respond to the inquiry’s final report. I commend this statement to the House.
I thank the Paymaster General for providing an advance copy of his statement. I would like to begin by paying tribute to the brave victims and their families, who, while working through their own personal ill health, grief and trauma, have campaigned tirelessly for justice—without their strength, we would not have reached this stage—and of course to my right hon. Friend the Member for Kingston upon Hull North (Dame Diana Johnson), who has been a stalwart of the campaign.
The continued work of the infected blood inquiry is crucial to ensuring that victims’ voices are heard. I had the privilege of meeting victims of this scandal last month, and their stories will stay with me forever. No one should have to experience the pain and anguish they have faced and are still facing. Justice delayed and its continuing delay is justice denied. While we await the conclusion of the report and inquiry, those who were given contaminated blood products are dying at a rate of one every four days. Families have suffered decades of health issues, financial loss and stigma.
Victims—those affected and infected—will have watched the Minister’s statement today with heavy hearts, disappointment and some degree of anger. There seems to be no commitment from the Minister to respond to the second report until the final report is published in the autumn. The interim report was published so that the Government do not have to wait until the final report to take action. We all understand the complexities of this scandal, but I hope the Minister can see that many individuals directly affected still feel angry and unrecognised. Today’s statement does not provide any certainty for the families or children of victims.
To finish, I have five questions for the Minister. First, does he agree with Sir Brian’s statement in the interim report that
“Time without redress is harmful. No time must be wasted in delivering that redress”?
Can he confirm that the “intense focus” he talked about is to achieve the recommendation in the report that the scheme is
“set up now and…should begin work this year”?
Secondly, how can he provide more reassurance to family members of victims, including parents who lost children and children who were orphaned when their parents died?
Thirdly, the Paymaster General talked about work under way. If the Government plan to accept these interim findings, officials must start verifying and registering directly affected people and their families urgently to understand the size of the group and to speed up the payments. Can he confirm whether that is already taking place? Fourthly, will he commit to more regular updates on progress and the direction of travel on this issue ahead of the inquiry’s final report later this year? We should not have to keep squeezing this information out of the Government, because it compounds the pain of the victims.
Finally, will the Paymaster General agree to meet me and the shadow Chancellor of the Duchy of Lancaster, my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner), so that we can work together to deliver the justice the victims deserve?
I thank the hon. Lady for her remarks. She was right to pay tribute to many MPs in the House, including the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) and my hon. Friend the Member for Worthing West (Sir Peter Bottomley) who have campaigned tirelessly on this issue over a long time. I am grateful for the work of the all-party group on haemophilia and contaminated blood, and some members of the media have also been at the forefront of pushing this issue for a long time.
Above all, the hon. Lady is right to refer to the victims, and I am very conscious that there will be tens of thousands of people watching this statement who are desperate to see a resolution. Every time there is another iteration, or a cause for me to be in this place, it is a source of anxiety, concern and worry. I am sure that there is disappointment every time there is another statement and we do not have the final resolution, but we have travelled a long way. This inquiry was announced six years ago, and Sir Brian started work five years ago. I am very grateful to him for producing this interim report. A lot of it is similar to the report by Sir Robert Francis, but there are differences.
We do need to do the work, and on the points the hon. Lady raised, we have been focused on ensuring that at the conclusion of Sir Brian’s inquiry, we are able to come forward in the best place possible, but that does not preclude doing something earlier if we are able and have the means to do so. Registration is not as yet taking place, but I am mindful that whereas for the previous interim payment there was a defined set of people and bereaved partners, if this recommendation is to be taken forward it will require registration, and that inevitably takes time, as we are all aware.
Right hon. and hon. Members will be aware that this statement is no more than an update. I was keen to come to the House to hear the views of hon. Members, and I commit to doing so again as appropriate and as we continue through this process. Work will continue, and of course it would be a pleasure to meet the hon. Lady and the shadow Chancellor of the Duchy of Lancaster if they would like to discuss this matter.
I call the Chair of the Health and Social Care Committee.
In his second interim report, Sir Brian Langstaff makes it clear that the Government have everything they need to implement the compensation framework now. I repeat the pertinent quote that the shadow Minister pulled out from the report:
“Time without redress is harmful.”
I suggest that that is rather underplaying it. During “time without redress”, people are passing away. Currently, the infected blood support schemes make regular ex gratia payments to those who are affected and bereaved partners. Will the Government make that provision statutory?
I do not dispute for a second Sir Brian’s comment that time without redress is harmful, to which my hon. Friend and the hon. Member for Putney (Fleur Anderson) referred. We want progress, which is why we are working at pace to deliver it. Sir Brian makes a specific recommendation that the ongoing ex gratia payments should be put on a statutory basis, or receive a similarly strong Government commitment. I am not in a position to respond to recommendations today. It has been eight working days since the report landed, but all the recommendations will be taken seriously.
May I put on record my gratitude for advance sight of the statement, and for the work of the infected blood inquiry? I suspect there will be a considerable amount of consensus in the House on this issue. Over the years, I have been appalled at the personal testimony that I have heard from my constituents about 40 years of struggle, and the realisation that this scandal could have affected any one of us. It is a tragedy that simply should never have happened, and it has been made worse by decades of delay, first in preventing further use of contaminated factor products and identifying victims, and then in delivering compensation.
As we know, the infected blood scandal took place before devolution, while healthcare in Scotland was the responsibility of the UK Government. Financial powers to deliver compensation still lie with Westminster. It is therefore entirely appropriate to have a scheme delivered by a central body, as recommended by the inquiry. Over the years, too many delays and denials have impacted victims and their families. Sir Brian Langstaff is spot on when he says in the interim report—we have heard this a couple of times already, but I make no apology for repeating it—that:
“Time without redress is harmful. No time must be wasted in delivering that redress.”
It is therefore imperative that the recommendations to widen the interim compensation payments are carried out, and that should be done before the final compensation scheme is set up. Will the UK Government accept the inquiry’s recommendation that interim compensation payments are widened and delivered without delay? Finally, when will the compensation system’s independent chair be appointed, and can we have a detailed timescale for that?
I thank the hon. Gentleman for his comments and for his welcome for the concept of a central body. That was not an area of dispute, but there was a slightly difference emphasis in Sir Robert’s report and Sir Brian’s report regarding whether the payments should be delivered locally through each of the four schemes or through a UK scheme. The hon. Gentleman is right to say that this happened in the ’70s and ’80s, long before devolution, and there is a clear recommendation from Sir Brian, which I am glad he endorses.
The hon. Gentleman raises two points about the interim compensation payment being widened and there being no delay in its implementation, and about the appointment of individuals. This all depends on the Government’s response to each of the recommendations—he will accept that—but a number of things could be done to speed up the process. If we were to agree with Sir Brian’s recommendation to have an arm’s length body, there are mechanisms whereby individuals could be appointed on an interim basis, prior to the ALB being formally constituted. All that is in the mix as we work through our response to the report.
I call the Father of the House.
The main views from the all-party group will come from the right hon. Member for Kingston upon Hull North (Dame Diana Johnson), but we recognise that a great deal of work needs to go into this. As a minimum, may I put to the Minister that he should come back to the House before the summer break to say how far the Government have got in considering the recommendations, and which ones they will accept?
Will he set up a register so that those who think they have claims can put their names forward and be able to receive updates from the Government directly, rather than just through the mainstream media?
The words of former Secretaries of State for Health, that the totality has been a failure by the British state and that the pain and suffering has gone on for far too long, are endorsed across the House and by the country as a whole. We want the action that Sir Brian Langstaff has asked for, which is that the scheme should be set up this year.
I thank my hon. Friend for recognising that there is a great deal of work to be done. I have already referred to the point about the register. Were we to adopt the clear recommendation from Sir Brian about an interim payment that goes more widely than the last scheme, that would require a registration scheme. I appreciate that that would take time, and it needs to be established at an early stage if that recommendation is accepted. I will return to update the House as appropriate, which I hope will certainly be before the summer break.
I thank the Minister for his statement, but really, after thousands have died, decades of campaigning, a five-year public inquiry with more than 500 people dying during that period, a review of compensation frameworks by Sir Robert Francis which was delivered to the Government last February, a first interim report from Sir Brian Langstaff, and now a second interim report from Sir Brian Langstaff setting out the clear case for compensation, enough is enough. Sir Brian Langstaff is clear in his report that the scheme need not await the final report to begin work. He states:
“It will clearly take political will to act quickly but the circumstances here warrant it,”.
Will the Minister explain to me, and to the thousands of people who will be watching this statement, what exactly is the problem? Why is there not the political will from this Government to deliver justice to this group of people?
The right hon. Lady has been a constant and incredibly effective champion for those affected and infected. It was about time, but it was this Government who instituted this inquiry. We have made a huge amount of progress in having an inquiry, and in having clear recommendations on compensation from Sir Brian. We want to act at pace and we want to act swiftly, but it is also vital that this is done properly. There is a huge amount of work. The nature of the report and the recommendations Sir Brian makes are unprecedented for an unprecedented circumstance, but that requires detailed work and detailed analysis. We will bring forward a response as soon as we can. As I say, we are focused on the inquiry’s conclusion, but that does not preclude coming forward before then if we are able to do so and we decide that that is the right course of action.
I add my voice to those thanking Sir Brian Langstaff and the whole team for the work they have done. We all recognise the complexities of delivering a scheme that is effective. I am grateful to the Minister for repeatedly coming to this House and for committing to come to the House again, but will he repeat from the Dispatch Box the moral case for compensation, which has effectively bound the Government to act and to follow the recommendations for compensation? Of course it takes time to put that into practice, but what is vital for people to hear today is that, in principle, the Government are going to make it happen. For many years that commitment was not there and it needs to be repeated now.
My right hon. Friend speaks with a great deal of knowledge on this subject. I am very grateful—I repeat this, as did he—to Sir Brian for producing a comprehensive and thorough appraisal of what the compensation scheme should look like, but we need to go through it in detail. As my right hon. Friend would accept, it needs to be effective and it needs to work, but I am pleased that he has given me the opportunity to reiterate what I said last December in this place: we fully accept that there is a moral case for compensation in this circumstance, absolutely.
As I said in the debate in 2017, I remember, as a young surgeon, when this scandal began to break in the early ’80s. That is 40 years ago. My entire medical career has passed while people have been fighting for justice and recognition. Dragging that out has added financial hardship to the suffering people were already going through. As the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) said, enough is enough. The Minister talked about how long things will take and we recognise that, but when will they start? When will registration of bereaved parents and children start? When will the framework actually start, so that, as Sir Brian Langstaff called for, people can expect to see action this year and not wait any longer?
The hon. Lady is very clear, as is Sir Brian in his report. There is no dispute over what Sir Brian is recommending. I cannot give that commitment now. There are processes across Government, as she will understand. We are working at pace and we are going through the report in great detail. As I say, it has been a short period of time since that report landed with all of us. It is detailed, it is comprehensive and it does need work, but we will be coming back to the hon. Lady and to this House.
My first portfolio as a shadow Minister, in 2006, was health, so I met many of the victims. The situation started in the ’80s, but we did not really know until the ’90s what was creating it—I am no expert, but that is what was coming forward—so I am very proud that the Government have done something that I promised we would do for the victims, but it has taken too long. The moral position is that the victims and their loved ones are still suffering. People have lost their loved ones. It is not just a financial issue; it has broken people’s hearts and minds. Their scepticism might be fuelled by the fact that the Government initiated an inquiry by Baroness Cumberlege into the Primodos debacle and disaster, but they literally ignored their own inquiry, so can the Minister understand the concerns of victims and Members who are a little bit sceptical about delay, delay, delay?
My right hon. Friend is absolutely right. This has been a long, long-term scandal. It started in the ’70s and ’80s, and it has taken many, many years to get to this stage. But the stage we have got to now is that a very distinguished High Court judge has spent five years working through the circumstances. He is at an advanced stage with his inquiry and has produced a thorough report on compensation. As I said to the House and say again, the moral case for compensation is fully accepted by the Government. We need to go through it to work through exactly what the implications are—they are multiple. As I said before, this is an unprecedented circumstance which requires unprecedented means of address and that is what is reflected in the report, but it does require work to go through it.
We had the report set out by Sir Brian Langstaff, which says how the compensation should be delivered and the framework for delivering it. The Minister said that the Government are considering this recent report “at pace”. He also said that he wants to come back and update the House. If we are moving at pace and we have all the detail in place that we need, when will he come back to the House?
It will be a great pleasure to return to the House with more substance when I can. It is important, even though we received the comprehensive report only eight working days ago, to give Members an opportunity to share their views on that interim report at the earliest possible opportunity, but the hon. Gentleman will realise that it does require work to come back substantively to say which recommendations are being accepted and how we will be progressing them.
I welcome the Minister’s statement, but does he agree that, notwithstanding the complexity he outlined in relation to the compensation scheme, two things should happen? First, the Government should move urgently to the design of the compensation scheme. Secondly, in the design of the compensation scheme, there should be engagement with victims or the groups representing them to ensure alignment between the compensation scheme and the expectation of victims.
I totally understand where my hon. Friend is coming from. It is critical that the answers we produce in response to the report are readily understood and have the buy-in of all those who suffered so grievously as a result of these scandals. I am very keen to engage with the victims. Sir Brian has been doing an exceptional job in ensuring that he fully understands, listens to and takes on board the comments made by the victims and engages with them. It is, I think, impossible for any of us who have not suffered from this personally to understand fully the anguish the victims have been put through. Sir Brian has done his utmost to reflect that in the report he has produced.
I, too, would like to thank the Minister for coming here today, and pay tribute to Sir Brian for the work he has done. Not long after I was first elected in 2017, I received a letter from a constituent whose family had suffered as a result of the infected blood scandal. What they have been through is heartbreaking. Although progress has been made and we have the interim report, we are now six years further on and they are no further on in receiving compensation. As others have said today, can we please get on with it and ensure that the suffering of families is put to an end?
I totally understand where the hon. Lady is coming from. We all have constituents in that situation. There are tens of thousands of people who are affected across the whole of the UK. We want to do so at pace. Any scheme we adopt must be effective, must work and must be appropriate. There is work ongoing. We will get there and report back to the House on our response to Sir Brian’s recommendations.
I welcome the Minister’s intense focus on this matter, but I join Members from across the House—not on a personal basis, because I think the Minister is one of the best in the Government—on behalf of my constituents in saying that this has taken a long time. Of course, it has to be thorough—I put on record my thanks to Sir Brian and Sir Robert—but can the Minister assure the House that their difference of opinion on how the compensation may be delivered, whether nationally or through the devolved Administrations, will not cause further delay? Post the final report being published, can he reassure the House that there will not then be a further consultation on whether it is devolved or national?
On children affected who have lost their loved ones and parents, could there be quicker interim payments? Some of them are really suffering financially, let alone from the loss of their parents. On the five categories, the Minister mentioned social impact; clearly, the loss of a parent is the biggest social impact of all.
Let me reassure my hon. Friend that although I referred in my statement to areas where Sir Robert and Sir Brian presented different nuances and views, I would not wish that to be overstated. Sir Brian had the benefit of Sir Robert’s report; I think he would say that he found it extremely useful that that study was undertaken, to enable him to consider Sir Robert’s report when coming up with his own recommendations. We must not allow any difference between the two—mainly of nuance—to get in the way of our proper and full consideration of Sir Brian’s report.
My hon. Friend referred to interim payments, as did other hon. Members. All I can say is that there is a clear recommendation from Sir Brian. We are working through all that, and we will return to the House in due course, having had an opportunity to review fully those recommendations.
My constituent’s father died following an infected factor VIII treatment. The family did not feel that they could grieve openly because of the stigma around HIV and AIDS at the time of his death. My constituent has told me that although a compensation payment would not bring back their father, it would finally give the family a sense of closure. Does the Minister accept the symbolic importance of compensation payments? Will the Government now commit to including children who have lost a parent in the scope of the compensation scheme, as recommended by Sir Brian Langstaff?
One of the worst of the many dreadful aspects of the scandal is the stigma to which the hon. Lady refers. For a child to go through the circumstances of parents being extremely ill and worried about the stigma and moving house, school or work, is deeply shocking to read now, and in many cases we are 20, 30, or 40 years on from the circumstances. These people went through absolute hell, with the stigma laid on top of dreadful circumstances. I am grateful to the hon. Lady for reminding us of that. I am afraid that I am not in a position to make piecemeal comments on Sir Brian’s recommendation. As I have said, it was vital that he produced the report—a comprehensive report that we need to go through thoroughly, and it is important that we produce our response in due course when we have had a chance to do so.
The length of the scandal can be summed up by the fact that my predecessor spent 18 years pursuing cases, and I have spent the last eight years pursuing the same cases, to try to bring them to resolution. The Minister rightly says that there is work to be done following the recommendations, but what timescale has he set to prepare a response? What work has been done to prepare for the potential recruitment of people to deal with cases via the structure proposed? I know from experience with another complex compensation scheme stretching over decades that that is far easier said than done.
My hon. Friend raises a good point. Work was undertaken prior to the release of the second interim report, based on Sir Robert’s original study, which helps us considerably. We are now working at pace to go through the changes and what the Government’s stance will be overall. I will not say the timeline for that, but we are working at pace.
My hon. Friend raises a good point about recruitment: if an arm’s length body is the way forward, no time should be lost in finding a route for good people with expertise to be brought into the process prior to the formal establishment of an ALB, if that is the route we go down.
The gut-wrenching truth of the matter is that people are decaying and dying while this Government dither and delay. The people concerned in this scandal will have heard nothing new today from the Minister. For their benefit, so that they know he is fighting for them, can he confirm that the recommendations to widen the scope of the payment should be agreed? Will he fight for those compensation payments to be made this year to the people affected?
It would be wrong to characterise the circumstance today as one of no progress. The fact that Sir Brian Langstaff has produced this report is a huge step forward. It is fantastic that he has come forward with a second interim report specifically on compensation. I speak on behalf of the Government and, on their behalf, I accepted the moral case for compensation back in December. We now need to go through what Sir Brian has written, which has been the culmination of many years of work, take decisions on that and come back to the House.
I welcome the Government’s clear determination, as shown by the Minister today, to move faster towards a just resolution to this sad and terrible scandal. As an MP representing a Huntingdon family devastated by this affair, who were long concerned by the inability to engage with Ministers, will my right hon. Friend confirm that ongoing engagement with victims’ families will take place with proper understanding of their tragic plight?
I can confirm that. Most of us in our constituency capacities have been aware of the victims of this dreadful scandal. Through the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) and her APPG, I had the privilege of meeting representatives of those affected, and I am more than willing to do so again as we continue to progress our work.
The Minister is absolutely correct—tens of thousands of people are fixed to their televisions today, expecting a resolution to this inquiry. I will tell him why they are disappointed: because they do not have time on their side. Hundreds have already died and more are dying on a week-by-week basis. They do not have time on their side. We need to ensure that the Government respond fully to this report and set out a clear timetable on actions from the report. Remember, people are dying as the Government are dithering and delaying.
The hon. Gentleman is right that, alas, the victims continue to die. Sir Brian makes a comment in his second interim report that we do not know the full scale of the medical impact of what went on in the ’70s and ’80s. Conditions are, in some cases, worsening. The point is well made. The hon. Gentleman says that we must respond fully—we must and we will do so when we have done the work required.
On behalf of my constituents affected, I welcome the sensitivity with which the Government have been dealing with this situation. However, the lack of urgency is undermining the good will of victims and their families, and it is letting them down every single day. How long will it be between accepting one of these points and implementing them? Would it not be easier to implement them now? Listening to Members today, I think that the best thing to do would be to implement them and work on getting the support to families as soon as possible.
I can assure my hon. Friend that there is urgency in our response. The report was produced eight working days ago; we are working at pace to go through it and we will continue to do so. We need to determine our view on all the recommendations, but that does not necessarily preclude us taking individual steps between now and the conclusion of the inquiry, and we will continue to work.
Please do not delay any longer. The Minister will say that it is complicated, as he said at the last statement. The Government have known about this scandal for a long time and should have been preparing. Bereaved families such as the Smiths in my constituency, whose case has been waiting for 18 years, need interim payments now. Does the Minister really get that those who have waited years for justice and redress cannot afford to wait any longer?
I am familiar with the hon. Lady’s constituency case, which she has raised many times. I am familiar with the sad story, which is one of so many around this House. I cannot add to what I have already said. I recognise the strength of feeling in the House and in the infected and affected communities. I am grateful that in Sir Brian’s report we have really thorough analysis for us to work through.
Does the Minister accept that the uncertainty of when the Government will fully respond to this report risks damaging people’s mental health? I am thinking about a number of constituents who have contacted me to say that there is a real impact on mental health. Can the Minister set out a timetable, or does he have a timetable in his head, for action? Does he accept the principle of making interim payments to bereaved parents and children, many of whom gave up their working careers or did not meet their educational and academic potential because of the years they spent caring for their loved ones?
On the timetable, we are determined to be in the best possible place to respond to the inquiry when it concludes. As I have said to other hon. Members, that does not preclude us taking other steps earlier, if that is what we determine to do, as a Government. We are working at pace to go through all the implications of the report.
On the hon. Gentleman’s second point, he will appreciate why I cannot go through individual recommendations at this stage, but I recognise the extremely strong case that Sir Brian has made for a number of those who have been affected, including carers who have given up a great deal to support others.
One of my constituents contracted hepatitis C from a botched blood bag in the 1980s. Her daughter wrote to me last year:
“I am furious that you have grudgingly decided to pay interim compensation after she finally could fight no longer, seven weeks after she died…In the meantime, I’m left with grief and nothing else to show for all the misery.”
In addition to all the horrors that my constituent and her mother went through, the daughter is not eligible for compensation as she is not a bereaved partner. Does the Minister think that is fair?
I am very sorry to hear about the loss of the hon. Lady’s constituent. It was a significant and positive step forward that the Government accepted in full Sir Brian’s recommendation about those infected and bereaved partners and brought forward the £100,000 of compensation, which was paid last October. It is tragic that, for the reasons stated earlier in relation to the scale of ongoing loss from this scandal, individuals will have missed out on that compensation because of their death between the announcement and the payment of the compensation. I really feel for the family of her constituent.
The hon. Lady referred to payments beyond the interim payments that were made last year. Sir Brian has made a very specific recommendation on that. We are not responding to that today, but it is one of the many recommendations that we are working through.
My constituent’s father died in England in the late 1970s and she tells me that she is his only surviving next of kin. Will the Minister confirm when my constituent, and many others like her, will obtain the compensation that they are clearly due? What proof will be required to access it, given the notorious related scandal around medical records? Bereaved people in these circumstances do not need more barriers—they need compensation after all they have suffered.
The hon. Lady raises an extremely good point about the evidence to be produced to access any future compensation scheme. There is a minor point of difference between the two reports by Sir Robert and Sir Brian in terms of the evidential test. However, given the history of records not being available and the length of time that has passed, Sir Brian has been clear that an appropriate approach must be taken and a compensation scheme must be established that does not preclude people who have no means of showing their eligibility because of factors completely beyond their control.
As many colleagues across the House have already said, the children of those lost as a consequence of the scandal feel particularly unseen and unheard in the progress that has been made so far. So can the Minister assure them that they will be a focus for the Government not only in recognising their loss but in delivering compensation payments to them through the scheme as a priority?
As I said before, children are a particularly harrowing aspect of the scandal. Sir Brian has made specific recommendations. We are not responding to those recommendations today, but we are working through them and I assure the hon. Lady that we will continue to do so.
I express sympathy and solidarity with my constituents who have been affected. Does the Minister accept, as the questions are demonstrating, that the longer it takes to implement compensation, the more complicated that process will become, not least because the question of estates and surviving relatives will increasingly come into play? Do the Government recognise the need to confirm the individuals who are due compensation and pay them as quickly as possible?
The hon. Gentleman will appreciate that that is exactly the process we are going through. We are working through Sir Brian’s report and his specific recommendations, including about the eligibility of estates—he recommends that the estates of those infected should be included in any scheme. The hon. Gentleman is not wrong to say that these are all complicated risks which are becoming more complicated. We want to make certain that we make progress and come to a resolution in our consideration of the report.
When I entered this House, my young constituent was in the nursery and we all hoped the scandal would be resolved quickly. She then graduated to primary school, and now she is about to go into secondary school. The loss of her father to this terrible infected blood scandal was absolutely devastating. I have two questions. First, will she receive compensation? There seems to be a question about whether children will get compensation. Secondly, the psychological research looking at support needs is being done only now. After all these years, how can it be that the research about commissioning a bespoke service is beginning only now? Will he apologise for that delay?
I cannot confirm the details of what will be in the compensation scheme when it comes forward, simply because that is the work we are undertaking now. I recognise the urgency represented by the hon. Lady.
In terms of the psychological needs, different progress has been made around the United Kingdom. There are schemes established in Scotland, Wales and Northern Ireland, and there is £900 available every year in England. Work is being undertaken now to ensure that there will be an appropriate tailored scheme. That work is ongoing and we expect to hear over the next few months what the answer will be on the psychological support scheme. That work is being conducted by ministerial colleagues in the Department of Health and Social Care.
I am afraid that it is simply not good enough. It is like groundhog day for our constituents who have been impacted by the contaminated blood scandal. When there has been so much time and so many reports, it is not good enough to come to the Dispatch Box with so little to say to constituents such as my constituents Vera Gaskin and Linda Cannon.
Linda emailed me last night:
“The consequences for me have been devastating. My life has been ruined beyond belief. I lost my husband of 37 years under horrendous circumstances which were hard to bear.”
Decades have gone by and nothing has been done. Of course we welcome the reports, but the Minister must not use them to hide behind and kick the can down the road for the victims. There is clearly cross-party support for taking interim measures, so why does he not get on and do that?
The hon. Lady is absolutely right that this has been going on for decades. That is why it was vital that the inquiry was set up in 2017 by my right hon. Friend the Member for Maidenhead. This is a significant moment in the course of that inquiry: an interim report dealing specifically with compensation was delivered eight working days ago. It is extraordinarily important that that has been produced. It is a thorough report and we need to go through it.
I recognise the determination in all parts of the House to see a resolution to the matter. I also recognise the frustration of the hon. Lady, who I know is reflecting the frustrations of her constituents and many others, but it was only during the Easter recess that the report was delivered. We need to work through it, and we need to come back to the House when we have done that work.
Today’s statement is incredibly light on substance and actual commitments. There is no reason why the Government could not begin verifying and registering those affected in preparation for the publication of the final report and for the swift delivery of compensation. The Minister’s statement reiterates the need for pace, yet there is no commitment to even beginning that work, nor is there a vague timeline for when it might begin. At a time when victims are dying every week and we are in a sustained cost of living crisis, justice delayed is justice denied. Why are the Government causing further unnecessary delays with their inaction? Have the victims and their families not already suffered more than enough?
I recognise the determination of the hon. Lady. In respect of the registration of those who may be eligible for a future compensation scheme, it is fair to say that they would have varied between the Sir Robert Francis study and the report produced by Sir Brian Langstaff. We need to do the work: we need to ensure that we have absolute clarity on the approach we are taking, ensure that that is announced and ensure that there is clarity for the victims. There will be no unnecessary delays, as the hon. Lady puts it; there is, however, a necessity to do the work to make certain that we have an effective, proper and appropriate response to what is a very thorough report.
I have a constituent called Brian Ross; I have his permission to use his name in this Chamber. His family have been known to mine for generations. He received contaminated blood in the 1980s and, like so many others, has been left susceptible to cancer. I have sat down with him and talked about the stress and the fear—the really black fear—that surround him and his family. For Brian Ross’s sake, may I ask the Minister to make sure that nothing impedes a scheme for him? We do not know how long he has got. In working with the victims and their legal representatives and with the devolved institutions, which the Minister mentioned, let us make sure that there is no glitch. Please do this, for Brian Ross’s sake.
The hon. Gentleman speaks from the heart. I totally recognise the issues that he raises on behalf of his constituent, Mr Ross. I can only reiterate that we have come a long way. The inquiry was set up in 2017; we now have a thorough report that is specifically on compensation. That is a major step forward from where we were at any stage prior to eight days ago. We will do all the work and ensure that we come back with a proper, full and appropriate response.
My constituent’s son received infected blood in the ’80s. The trauma and cost for the family are incalculable, as many hon. Members have described today. Time is not on the side of many of these families. I ask the Paymaster General a specific question, because he seems to have avoided giving any specific facts about what is going to happen now: is it not unreasonable to have a compensation scheme up and running by the end of this year?
That is what Sir Brian recommends. Sir Brian believes that it is possible to achieve that; we need to work through and produce our response to Sir Brian. I am not in a position as yet to confirm timings or what our response will be, but the hon. Lady is absolutely right: Sir Brian Langstaff recommends that we should be in a position to get a scheme in place by the end of the year. We need to do the work and come back to this House.
First, may I argue in favour of the importance of the independence of the compensation scheme? Many people here, although perhaps not all, would argue that the Windrush compensation scheme, for example, was hindered by not being at arm’s length from the Home Office.
Secondly, in anticipation that the Government will accept the recommendations about the scope of the compensation scheme, will the Minister look to use information from the infected blood support schemes right now to start registering and verifying those who will qualify, to save time further down the line?
As part of the work to which I have alluded, we are looking at a whole range of compensation schemes that come in different shapes and sizes. The hon. Gentleman refers to Windrush; there has also been the armed forces compensation scheme from the Ministry of Defence, and there has been tribunal work. The solution of having an arm’s length body, wholly separate from the Government, to pay out the schemes is an innovative approach to an unprecedented issue. It would have the independence to which he refers, but would also have consequences in terms of accountability for expenditure. We are working through all those issues, which he is wise to raise.
On the point about registering potential beneficiaries, I believe that the current infected blood schemes were the basis for the interim payments made last year to those infected and to bereaved partners. Sir Brian is very clear in saying that to widen registration we would need a new scheme that goes further and recognises others who have been infected but who are not included in the infected blood scheme. The hon. Gentleman raises a good point.
I thank the Paymaster General very much for his statement. I especially commend the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) for her dogged determination at every stage: every one of us whose constituents have suffered because of contaminated blood owes her many thanks. We thank her publicly in this Chamber today.
I am very pleased that, ahead of the final report, the chairman has issued the recommendation that compensation be given. On compensation for health issues, the reality for many people is that each week that passes means worsening health and more care needed. Compensation would greatly enhance the quality of the end of life for some people who are coming to that stage. The Paymaster General is a Minister with compassion who understands the issue, so while we await the rest of the report, I respectfully ask him to consent to fast-tracking that recommendation, particularly for end-of-life claimants.
I thank the hon. Gentleman and all hon. Members who have contributed today. He makes a powerful point, as he does so often, and the same point comes out from Sir Brian Langstaff’s report. We will do the work and will come back to this place having done so. Sir Brian is making a powerful case, but the work needs to be undertaken. We need to do that properly, and I look forward to coming back to the House in due course when we have made more progress.
(1 year, 7 months ago)
Written StatementsI am today publishing reports on the performance of Departments and agencies based on substantive replies to correspondence received from Members of Parliament and peers in 2022. While individual Departments and agencies are accountable for their own performance, the Cabinet Office is publishing this data to improve transparency and highlight where the Government have handled correspondence effectively.
The footnotes to the table provide general background information on how the figures have been compiled or how they have been affected by departmental restructuring.
The Government attach great importance to the effective and timely handling of correspondence, and recognise that the right of parliamentarians to take up issues with those in Government underlines our accountability as Ministers.
A copy of these reports will be deposited in the Libraries of both Houses in Parliament.
[HCWS701]
(1 year, 8 months ago)
Written StatementsIn August 2022, Bain & Company and its global affiliates were excluded from bidding for UK Government business. Following the decision, Bain & Company has co-operated with our investigations and provided considerable additional information on its self-cleansing actions. It has also agreed to a period of rigorous monitoring for a minimum of two years, during which its continued compliance will be assessed. Given the progress made since the exclusion, we can confirm that although Bain & Company South Africa Inc. will remain excluded from UK Government business, Bain & Company Inc. and its affiliates outside South Africa are no longer excluded from bidding for Government work.
Following robust and intensive dialogue with Bain & Company since the exclusion decision was made in August, which has received the full co-operation from the company, we have concluded that Bain & Company Inc. and its affiliates outside South Africa, including both Bain & Company Inc. United Kingdom and BuyingTeam Ltd—trading as Proxima—can bid for UK Government work.
Since the exclusion decision in August 2022, Bain & Company has responded by producing detailed evidence of the measures it has taken internally—including related to the way Bain & Company handles bids for UK Government work—which was not available to the Cabinet Office previously.
This decision is subject to a regular and thorough period of close monitoring, for a minimum of two years, so that we can be satisfied that the company continues to uphold the measures it has now put in place.
During the monitoring period, Bain & Company has agreed that it will engage further with the Cabinet Office to provide evidence that its governance, organisation and internal processes are now working, and will continue to work, as they should do to prevent anything similar happening again.
Bain & Company South Africa Inc. remains excluded from bidding for UK Government procurements until 4 January 2025, given the findings of the Zondo Commission on its prior involvement with the South African Revenue Service. Bain & Company South Africa has acknowledged that it did not fully clarify the facts and circumstances regarding its work for the South African Revenue Service in a comprehensive manner.
Bain & Company has previously apologised for the fact that Bain & Company South Africa’s work in South Africa contributed to damaging a critical public institution and acknowledged that its co-operation with investigating authorities fell short.
We will review any new information that comes to light, including as a result of any potential reconsideration by the South African Government of their decision to ban Bain & Company South Africa.
Bain & Company has welcomed this robust external challenge, to help ensure that going forward its governance is of a consistently high standard, that the self-cleansing actions put in place are operational and that any new issues arising are being managed and communicated transparently.
We strongly condemn corporate malpractice and will not hesitate to exclude suppliers should they be found not to be upholding the highest standards.
[HCWS658]
(1 year, 8 months ago)
Written StatementsToday the Government are publishing the 2020-21 fraud landscape report. This follows the establishment of the new Public Sector Fraud Authority (PSFA) in August last year to raise the Government’s ambition across the public sector in understanding risks and reducing fraud.
The report continues to push the Government’s transparency agenda by publishing data on the level of detected and estimated fraud and error in the public sector. The report estimates fraud and error losses for central Government—excluding those relating to tax and welfare, which are published separately by His Majesty’s Revenue and Customs and the Department for Work and Pensions.
In 2020-21, fraud detection figures grew by 7% on the previous year, with Departments and public bodies detecting £243 million of fraud, in line with the Government’s objective of continuing to focus on identifying and reducing fraud. These figures include fraud related to schemes in support of the pandemic.
The report shows how the Government adjusted the counter-fraud function to focus on fraud around the covid-19 schemes. This was achieved by establishing a covid-19 intelligence hotline, utilising data analytics and assessing the levels of fraud in all covid-19 schemes, so that the centre of expertise was able to co-ordinate a unified approach to countering fraud.
The Government have continued to develop their capability to take action on fraud. There are now 7,011 individuals, from 35 organisations, who are members of the world’s first counter-fraud profession meeting our target.
In 2020-21, an additional 99 counter-fraud colleagues from across Government were trained in the new discipline of fraud risk assessment. This has helped us to better understand fraud at the commencement of Government initiatives—a particularly helpful skill in the wake of the pandemic.
This Government attach importance to transparency and the improvements they can bring in fraud detection and prevention right across the public sector. While efforts to support Departments and public bodies during the pandemic delayed work on this report, the PSFA intends to publish a bulletin with the data from 2021-22 in the first half of 2023.
[HCWS657]
(1 year, 8 months ago)
Commons ChamberThe UK and its international partners stand shoulder to shoulder in implementing sanctions against malignant actors on the international stage. This includes the most severe sanctions ever against Russia, which represents over £18 billion in assets frozen and reported to the Office of Financial Sanctions Implementation. Contracting authorities must comply with our sanctions, which have legal force.
On the question of procurement more widely, the British Chamber of Commerce found that, in 2021, small and medium-sized enterprises were receiving a relatively small amount of direct Government procurement money compared with five years ago. Can the Minister explain why SMEs are being increasingly sidelined from access to public procurement under his Government?
Far from sidelining SMEs, the Government are absolutely focused on ensuring that they get a fairer share of the Government procurement pie. I am delighted that the Procurement Bill will put an obligation on contracting authorities to have regard to what their tenders will do for SMEs. That will ensure that, right at the early stages of the process, as well as displaying a long pipeline notice, contracting authorities think through how they can make certain that those tenders are best adaptable to SMEs and their requirements.
In November, it was revealed in The Guardian that the company Infosys was still operating in Russia, eight months after it announced that it would withdraw. Just a month later, that company was awarded a lucrative contract worth £1.7 million of taxpayers’ money. Was the Minister aware of that when that contract was awarded, and do the Government believe that public money should be going to those who are operating in Russia?
We set out in policy procurement note 01/22 our approach to public procurement and links with Russia. That PPN speaks for itself, and I am sure the hon. Lady is familiar with it. It requires contracting authorities to check from whom they are receiving goods and services. It is primarily aimed at those who are Russia or Belarus-based, or who have significant control. I do not know the particulars of the circumstances that she mentions, but the Government’s approach through PPN 01/22 is very clear.
It is always a pleasure to share good news with you, Mr Speaker. Just three years into our 10-year programme, we have already hit 50% of our target to relocate 22,000 roles from London across the UK. Therefore, more than 11,000 roles have been relocated from London, spreading prosperity and opportunities across the whole of our United Kingdom.
Does my right hon. Friend agree that Devon is the natural habitat for the Department for Environment, Food and Rural Affairs and that, if we are keen to ensure our food security, surely we should locate the Department among our farmers, fishermen and the Met Office, not to mention our world-class universities specialising in climate and marine sciences, and where rurality is an immersive experience?
Departments select places for role relocations using workforce and locational analysis, as well as many other factors, which I am sure would include those referred to by my hon. Friend. As she knows, DEFRA already has 550 full-time employees in Devon and nearly 2,000 across the south-west more widely. I know from previous experience as a Minister that she is a fantastic advocate for her constituency and I am certain that she will continue to make her case.
Yesterday, I joined striking PCS workers on their demonstration, some 130,000 of whom were on strike for better pay and conditions. Irrespective of where in the UK civil servants have been relocated to, their pay and conditions are still determined at Westminster, leading to industrial action across all four nations. When will the Government finally deliver a pay uplift reflecting the work of civil servants throughout the UK?
Individual Departments determine the pay and conditions for their civil servants. There are ongoing discussions with officials. I also met members of the PCS in January. We want to get a resolution. We want to get people back to work, but no one is helped by the current range of industrial action that hits some of the most vulnerable people in our society.
I thank all those who attended the meeting of the all-party parliamentary group on haemophilia and contaminated blood chaired by the right hon. Lady last week. The Government acted on an interim compensation proposal for those infected in the autumn, paying out more than £450 million, and have accepted that there is a moral case for compensation. I am truly delighted that Sir Brian Langstaff has announced his intention to produce a second interim report, which, as I understand it, will be published before Easter. That will help the Government to meet our objective to be able to respond quickly when the final report is published in the autumn, although I do not wish to understate the complexity of the work involved in addressing the impact of the scandal.
I thank the Paymaster General for attending the meeting with the all-party parliamentary group; we very much appreciated his input. What also came out of that meeting was a desire from those who have been infected and affected to have further information about what the Government are doing in preparation for the reports from Sir Brian—the final report particularly —later this year. I wonder whether the Paymaster General will set out how he feels he can best engage with those infected and affected in the coming months to show that progress is being made and set out a plan for that involvement with those infected and affected.
The right hon. Lady makes a reasonable challenge. She has battled on this issue for many years. I am focused on that interim report from Sir Brian. We have already had the benefits of the Sir Robert Francis study, which I am sure has informed the work of Brian Langstaff and his team. When we see the interim report, it will be incumbent on us to give an immediate reaction—a reaction as soon as is practical—to it, and then to set out what we will be doing to build towards the final report, which, as I say, will be published in the autumn. I know that it has been a long wait for those infected and affected. It is not over yet, I am afraid. There is an awful lot of work to be done, but we are approaching the endgame as these reports come through.
The Infrastructure and Projects Authority’s standards, tools and training for Government projects help to ensure that projects are set up for success. The IPA’s transforming infrastructure performance programme is helping to reduce the cost of projects.
It came as a shock to one of my constituents recently when I pointed out that more than 9,000 public sector workers are paid more than the Prime Minister, including £620,000 being paid to the chief executive of the continually failing HS2 Ltd. It is all public money, so does the Minister agree that we have to demand value for money from such appointments and cap excessive salaries from the public purse?
I agree with my hon. Friend that it is essential that we get value for money from the investments we make in our people. There is a role for well-paid people to deliver important projects for the people of this country, but I assure him that any payments above £150,000—that covers the entire remuneration package, not just the salary—must be not only justified by the relevant Department, but personally signed off by the Chief Secretary to the Treasury, who takes a very close interest in such matters.
Ministers have lifted the cap on consultancy spending for Government Departments at a time when many members of the public are struggling to pay bills or put food on the table. Uncapping the spend on consultancy fees, rather than investing in building and nurturing internal civil service talent, may be short-sighted. Will the Minister reinstate the cap and instead focus on the internal development of skills?
There is a difference between a cap and a control, and it is up to Departments to ensure that they are getting value for money in what they spend. Cutting bureaucracy and cutting exercises that take up a lot of civil service time but that are not productive is a good thing. There is a role for consultancy, alongside growing and nurturing the resources inside the service. It is important that we always get value for money, but that is best generated by having a Department that is laser-focused on value for money in what it is spending and on why it is spending it.
Civil service pay is determined at delegated levels between the Departments concerned. At the senior ranks of the civil service, it is more of a Cabinet Office responsibility. I have met the leadership of the PCS—I did so in January. There are ongoing discussions between officials in the Cabinet Office and the unions. We want to see this resolved, but I do not believe that matters are helped one iota by people going on strike and having an impact on the very people they are employed to serve, and I know do serve with great commitment and dedication.
Can the Minister outline what immediate plans the Government have to relocate civil servants out of London? Does he agree that my Cleethorpes constituency and neighbouring Grimsby, as major centres for the renewable energy sector, would be an ideal location for officials who oversee that sector?
The good news to share with my hon. Friend is that we have already got halfway to our target of 22,000 jobs moved out of London around the UK, and a huge number of those jobs have gone to the north of England. I am sure that my hon. Friend will make his case for his constituency in his normal, incredibly effective way.
I echo the earlier question from my right hon. Friend the Member for Kingston upon Hull North (Dame Diana Johnson) about the contaminated blood scandal. The inquiry is coming to an end, and another interim report is due shortly. I just reiterate that it is so incredibly important for those affected, including bereaved parents such as the Smiths in my constituency, that we know that the Government are preparing now and are ready to act quickly on compensation for those people who have waited so long.
The hon. Lady has campaigned vigorously on this on behalf of her constituents. I am aware of her absolute focus on this matter of major concern. There is work ongoing; I think we will be helped a great deal by Brian Langstaff’s second interim report, which I believe will address compensation. That will help us get that underpinning. It is an incredibly complex issue, as I am discovering, but I can assure the hon. Lady that work is being conducted in Government to make certain we are ready for the second interim report, and then the final one.
In 2016, Hinkley Point C was estimated to cost £18 billion. The latest update is that it is going to cost £33 billion. The UK Government want to replicate Hinkley Point C at Sizewell C; why, then, are they still estimating the cost of Sizewell C at £18 billion? When are they going to come clean about the real cost of Sizewell C?
Some of the precision of that would be better answered by my colleagues in the relevant Department, but what I will say to reassure the hon. Gentleman is that the Infrastructure and Projects Authority learns with every single project that we do. I have discussed this with the IPA, and there will be a huge amount of learning from the planning that has already gone on as to how we can make certain that future projects learn from experience and are more cost-effective. That was the case with how we have built schools: right across the Government service, we are finding ways of learning and applying that more regularly.
I am going to have another go. Will the Paymaster General agree to a series of update meetings with those infected and affected by the contaminated blood scandal in the months leading up to Sir Brian Langstaff’s final report? That is a specific question.
The next point in this process will be the second interim report, and when that is published, I will meet the right hon. Lady and her colleagues from the all-party parliamentary group if that is helpful. That is about two weeks away, in the Easter recess.
(1 year, 8 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
(Urgent Question): To ask the Paymaster General if he will make a statement on the impartiality of the civil service in the light of the proposed appointment of the second permanent secretary to the Department for Levelling Up, Housing and Communities as chief of staff to the Leader of the Opposition.
I can confirm that, following a media report the previous day, Sue Gray, formerly second permanent secretary to the Department for Levelling Up, Housing and Communities and to the Cabinet Office, resigned from the civil service on Thursday 2 March. This resignation was accepted with immediate effect. On Friday 3 March, a statement from the Opposition announced that the Labour party had offered Sue Gray the role of chief of staff to the Leader of the Opposition.
The House will recognise that this is an exceptional situation. It is unprecedented for a serving permanent secretary to resign to seek to take up a senior position working for the Leader of the Opposition. As hon. Members will expect, the Cabinet Office is looking into the circumstances leading up to Sue Gray’s resignation in order to update the relevant civil service leadership and Ministers of the facts. Subsequent to that, I will update the House appropriately.
By way of background, to inform hon. Members, there are four pertinent sets of rules and guidance for civil servants relating to this issue. First, under the civil service code, every civil servant is expected to uphold the civil service’s core values, which include impartiality. The code states that civil servants must
“act in a way which deserves and retains the confidence of ministers”.
Secondly, rules apply when very senior civil servants wish to leave the service. Permanent secretaries are subject to the business appointments process that, for most senior leavers, is administered by the Advisory Committee on Business Appointments. ACOBA provides advice to the Prime Minister, who is the ultimate decision maker in cases involving the most senior civil servants. Once the Prime Minister agrees the conditions and the appointment is taken up, ACOBA publishes its letter to the applicant on its website.
The business appointment rules form part of a civil servant’s contract of employment. The rules state that approval must be obtained prior to a job offer being announced. The Cabinet Office has not, as yet, been informed that the relevant notification to ACOBA has been made.
Thirdly, civil servants must follow guidance on the declaration and management of outside interests. They are required, on an ongoing basis, to declare and manage any outside interests that may give rise to an actual or perceived conflict of interest. Finally, the directory of civil service guidance states:
“Contacts between senior civil servants and leading members of the Opposition parties…should…be cleared with…Ministers.”
Having set out the relevant rules, I finish by saying that, regardless of the details of this specific situation, I understand why Members of this House and eminent outside commentators have raised concerns. The impartiality and perceived impartiality of the civil service is constitutionally vital to the conduct of government. I am certain that all senior civil servants are acutely aware of the importance of maintaining impartiality. Ministers must be able to speak to their officials from a position of absolute trust, so it is the responsibility of everyone in this House to preserve and support the impartiality of the civil service.
To echo my right hon. Friend’s comments, many of us are surprised and, frankly, deeply disappointed about the particular circumstances that have emerged. This is not about the character or quality of Sue Gray. Having had the pleasure of working with her over a number of years, I can testify, along with many others, to those qualities.
This is, as my right hon. Friend said, about the fundamental trust that has to exist between impartial civil servants up to the highest level—and here we are dealing with a permanent secretary—and the Ministers they serve. That has been the position since at least the Northcote-Trevelyan report of the mid-19th century, and it must be the position in future, particularly if the Labour party is serious about wishing to achieve power. This Government are prepared to defend that impartiality, but the activities of the Leader of the Opposition might suggest that he is not prepared to defend that impartiality.
I am grateful to my right hon. Friend for clarifying the position on the application to ACOBA. Will he confirm that this appointment, if it is to be taken up, cannot be taken up before it is formally approved, following advice from that committee? Secondly, is it correct that the prevailing ACOBA advice for civil servants has a potential waiting period of between three months and two years? Thirdly, will a lobbying prohibition be imposed in this case? Finally, will a restriction on the passage of official information to the Labour party be imposed in this instance?
I say again that trust and impartiality are vital if this system of government is to work. I would hope that in this case those issues will be defended.
I thank my right hon. and learned Friend for that. I share his disappointment; whatever the merits of the individual, I stress that it is critical that we all, on both sides of the House, do all we can to support the impartiality of the civil service. He asks about three points in particular. He asks whether there is a three-month to two-year period, and he is right. ACOBA also has the ability to recommend that no such appointment would be appropriate—it can go further—but there is a standard three-month waiting period in the contracts of employment for permanent secretaries. ACOBA generally goes up to two years but it can go further.
There is a lifetime requirement on all civil servants, which I know they take hugely seriously, to respect the confidentiality of the work they do. It is right that that is in place. Lastly, ACOBA is in an advisory position. I have not been impressed by the Labour party over this saga. I trust that the Labour party would indeed follow recommendations from ACOBA—unless Labour is going to cast even more doubt on its credibility.
Thank you. Mr Speaker. As I was saying, after this question I will go back to my office to help people who are struggling with the cost of living, with getting an NHS dentist and with paying their energy bills. All of those things are the result of 13 years of this failed Conservative Administration. While they play games, we are getting on with tackling the real issues facing the country. When will they do the same?
Having heard from the right hon. Lady, I see that she has clearly been advised that attack is the best form of defence. I quite understand why the Opposition feel in need of some more advisers and some new advisers, given her tone today.
I understand the dilemma faced by the Leader of the Opposition. Having looked inside his tent, I understand why he is reaching so far outside of it. After so many rebrands, I appreciate why the right hon. Lady and the Leader of the Opposition require someone who can do joined up. However, the Labour party talks about rules, transparency and standards in public life, and given all that constant talk it is time that it walked the walk. I ask the right hon. Lady to go away and think: why are the Opposition refusing to publish when they met with Sue Gray; why are they being evasive; and why can they not tell us what they discussed, where they met, and how often they met? Their refusal to do so prompts the question: exactly what is Labour trying to hide?
Many across the House have noticed that the Leader of the Opposition has a tendency to claim a self-righteous monopoly on morals, but there are now serious questions as to whether Labour, by acting fast and loose, undermined the rules and the impartiality of the civil service. Labour Members must ask themselves why the Leader of the Opposition covertly met a senior civil servant and why those meetings were not declared. They believe that ACOBA rules should be tightened, but why were the current ones not followed? It is incumbent on everyone across the House to uphold and preserve the integrity and the perceived impartiality of the civil service.
This is about trust, Mr Speaker, and it is the Labour party that risks damaging that trust with an offer of appointment. However, the Opposition can help restore that trust. They can do the right thing: they can publish the list of meetings between themselves and Sue Gray; they can publish who attended those meetings; and they can publish when they started speaking to Sue Gray. There is nothing in the ACOBA rules that stops them doing so today.
I call the Chair of the Public Administration and Constitutional Affairs Committee.
May I say how heartened I am to see the Chamber so well-attended for a Cabinet Office urgent question on matters of constitutional propriety? It has not always been like that in here.
On a personal note, may I say that I consider this appointment to be somewhat ill-judged? I think that those who are of reasonable mind on all sides of this argument would accept that. Does my right hon. Friend share my confidence in our noble Friend Lord Pickles and his Committee, the Advisory Committee on Business Appointments, to discharge their functions correctly? I wonder also whether he has any more thoughts about making ACOBA rulings underpinned in statute. Finally, given the individual at the heart of this, it is important to ask whether he shares my concern that it is wrong to impugn an entire civil service for political bias, and that it is important that he asserts that from the Dispatch Box?
On my hon. Friend’s most important point, I absolutely back him up on the standards of the civil service. We are lucky and fortunate to have good people working throughout the civil service. I know that a large number of them will be very concerned by these events, because they know the critical importance of the bond of trust between a Minister and their most senior advisors. I totally respect the work of ACOBA and all members of the committee. I know that they will consider their processes, that they will go through this thoroughly, and that, in due course, the Prime Minister will receive their advice.
On my hon. Friend’s wider point, clearly, the Government have received recommendations from his own Committee, PACAC, from Sir Nigel Boardman, and from the Committee on Standards in Public Life. The process of coming up with a Government response is well advanced, and I expect to share that with the House in due course.
I am glad to hear the Minister talking about the hard work that the civil service does and being clear, in agreeing with his colleague the hon. Member for Hazel Grove (Mr Wragg), that Ministers and Secretaries of State would be nowhere were it not for the constant hard work of impartial civil servants. It is very important that the Minister talks to his Back-Bench colleagues and ensures that, in making statements about individuals, they are not tarring the entire civil service with some of the allegations that they are bringing forward.
I have asked repeatedly about anti-corruption champions, and while we are standing here talking about issues relating to breaches or potential breaches of the ministerial code, it is important that the Government get their house in order and ensure that we have an anti-corruption champion in place. Will the Minister therefore both talk to his Back-Bench colleagues to ensure that their language is moderated when talking about civil servants, and ensure that the ministerial code is adhered to so that we can be viewed in a better light internationally?
The anti-corruption strategy is run by my right hon. Friend the Minister for Security; I know he works actively on that, and an anti-corruption champion will be appointed in due course. With deference to the hon. Lady’s position, I think that is a very different scenario from what we are talking about today. For a start, we are talking about the civil service code, not the ministerial code. However, I agree that we always need to support and not undermine the impartiality and the perceived impartiality of the civil service. That applies to all of us, including the Leader of the Opposition.
Is my right hon. Friend aware whether a contract, written or unwritten, has been entered into between the parties concerned? This important question asked by my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland) raises questions not only of constitutional propriety and impartiality, but of confidentiality between the persons concerned. Furthermore, I would like to know whether there is any question of any involvement of taxpayers’ money in these arrangements, as part of the Short money that will be involved in the office of the Leader of the Opposition.
As my hon. Friend will appreciate, I am in no position to know whether there is a contract, either oral or written, between Sue Gray and the Labour party. Nor am I in any position to judge how her putative post, if it were to go through, would be funded. Those are both questions that can only be answered by those on the Opposition side of the House, and it would be in the interest of transparency and clarity if they were to be cleared up, along with a timeline of events on when the meetings started, who took part and where they took place.
On the question of impartiality, Sue Gray has resigned, and I can assure the Minister that she was just as resolute in seeking to protect standards in public life and the ministerial code when I was a Minister as she has tried to be under this Conservative Government. Are not her professionalism and integrity just what Britain needs after the debasement of our standards in public life over the past 13 years?
I am deliberately not getting drawn into matters related to individuals, nor should I. I am happy to be drawn on whether there is a right way of making this kind of appointment. This is a totally unprecedented offer of appointment; at a permanent secretary level this has not, as far as I am aware, ever been undertaken before. It is important in those circumstances that the rules are followed appropriately. We are checking to make certain what exactly was the run-up to her resignation.
Many people may say that Ms Gray is a splendid woman —I understand she even fed the cats in the Cabinet Office—but does it not smash to pieces the idea of an independent civil service when we know that one of the most senior civil servants in the country was conniving in secret meetings with the party of Opposition? Does that not devalue years of advice and reports that she has given, her views on devolution, which were known constantly to be soft, and her report into my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson), which we now know was done by a friend of the socialists? Does this not undermine all her previous work and the idea of an independent civil service?
Order. I say to the right hon. Gentleman that, as I said, I do not want anybody creeping into the report—[Interruption.] I know you were careful, but this is just a marker. I do not want this to be a creeping feast.
I have two points to make to my right hon. Friend. First, we need to make certain that this does not damage the impartiality—or the perception of impartiality—of the civil service as a whole. I am sure he would agree that that is incredibly important, and we need to ensure that it is retained. I am deeply worried that the approach made by the Labour party may serve to threaten that and put it at risk. We must not tarnish the whole civil service due to one appointment, but the Opposition are playing fast and loose with a set of rules designed to protect the impartiality of the civil service, which we all know is so constitutionally important for our country.
Here today we have Conservatives demanding that Labour observes the recommendations of ACOBA, when previous Conservative Chancellors and Foreign Secretaries bypassed the process before taking up appointments, and we have Labour stretching the process to breaking point by operating in the shadows. Is it time that we gave ACOBA some teeth?
My right hon. Friend the Prime Minister is considering proposals made by PACAC, the Committee on Standards in Public Life and Sir Nigel Boardman about how we could improve the business appointments process. There is a lot of sympathy with the idea that we should look at those rules, and we will report to the House about how they could be amended or improved. It is an irony, though, that the Opposition have consistently called for those rules to be tightened when they do not seem to be quite aware—or may not be fully aware—of what the rules are today.
The civil service’s response to this issue amplifies and underscores, to the comfort of all of us, the importance that it attaches to its impartiality in serving Ministers of the Crown, irrespective of the colour under which they stand for election.
I will echo the growing theme, led ably by my hon. Friend the Member for Hazel Grove (Mr Wragg). For ACOBA to put the recommendation to the Prime Minister always puts the Prime Minister in an invidious position, but particularly in this case. If he says no, he looks churlish. If he says yes, he makes the civil service, which is already anxious about the attack on its impartiality, still more anxious. I urge the Minister to speed up the process of response to the suggestions that have been made about formalising the committee’s recommendations.
I have said what I said about the Government considering how the procedures for business appointments could be improved. I have a lot of faith in the ACOBA process, and in Lord Pickles and his committee. We look forward to him looking through this process. Sue Gray will put through her application—if that is a confidential process, I presume that it is happening—and the committee will need to take a decision on that basis and then provide advice.
The faux outrage and wild conspiracies from the Conservative party are kidding nobody. I remind the Minister of the words of a predecessor of his as Cabinet Office Minister, the noble Lord Maude, who said that he had worked with Sue Gray for five years and never had the
“slightest reason to question either her integrity or her political impartiality”.
He added that the Leader of the Opposition is
“fortunate to have secured her services”.
He is right, isn’t he?
The hon. Gentleman obviously knows faux outrage when he sees it; he has a long experience of seeing it, in the mirror. I am grateful to him for reminding me of the words of my predecessor as Minister for the Cabinet Office and, indeed, as the Member of Parliament for Horsham. I, too, have worked with Sue Gray. I have admired her advice and have had no reason to question her integrity. That does not mean, however, that this is the way we should conduct things in these circumstances. I am very disappointed in the actions of the Labour party. I am very disappointed in how this has come through, and there are real concerns about the impact that it may have on the perception of impartiality more broadly.
Is my right hon. Friend aware that on my appointment as a Minister, I, like many Members, was advised by Sue Gray on the steps that I needed to take in order to avoid any perception of a potential conflict of interest? Does he therefore understand why her appointment has caused such anger right across the civil service, as it undermines that very principle of the perception of conflict?
I do. My right hon. Friend is right to draw on the fact that many senior civil servants are troubled by this. They know the vital importance of the bond of trust between Ministers and civil servants, and anything that might serve to undermine that is not healthy and is not good for the way we do business.
Mr Speaker, we are experienced Members of this House, and I understand that very early on in your remarks, you rumbled what was going on in terms of the number of requests for this to be debated this afternoon. Is it not a fact that this is a shabby little manoeuvre from the shabbiest Government that I have seen in 40 years—[Interruption.] Rather than this being spontaneous, let me just say that I was walking over here with a respected Back Bencher from the Government side who said, “I’m not going over. They’ve been trying to get everyone here this morning. The Whips have set a five-line Whip.” [Interruption.] They don’t like it, Mr Speaker. The suggestion that the civil service is up in arms is nonsense. This comes from the Prime Minister and this shabby Government—[Interruption.]
The whole situation surrounding this appointment is quite extraordinary, and many will say that it is outrageous. Does my right hon. Friend agree that appointing such a senior and high-profile civil servant to this post under such circumstances is questionable, and does he agree that what is of deep concern is the timing of this appointment and when she was approached? Where meetings were held, the details must be published.
I believe that transparency would help. It is important that processes are followed, because this is an unprecedented appointment, and in those circumstances, it is not too much to ask for the details of the meetings to be published: who met whom, when, where, and what was discussed. To return to the points that have been raised, it is absolutely right that this is gone through, and that the Labour party publishes exactly what took place.
The impartiality of senior civil servants was called into question a long time ago during the Brexit debate and the events subsequent to that, but these negotiations obviously did not take place the morning after Sue Gray resigned—they have been going on for some time. I suppose the question for the House is this: what sensitive political issues was she involved in during those negotiations, and does the Minister agree that no amount of bluster from Opposition Front Benchers will ever hide the double standard of lecturing about accountability and transparency, while at the same time not being prepared to answer a straightforward question as to when they started talking to Sue Gray?
The right hon. Gentleman puts it rather well. It would be very simple to help put minds at rest by publishing the data, setting out when the meetings took place—who met whom, when and where. That will help reassure the House; it will not reassure the House completely, but at least there will be proper transparency and some more clarity.
This is about impartiality and trust, and it saddens me to see the deputy leader of the Labour party, the right hon. Member for Ashton-under-Lyne (Angela Rayner), who is in such a senior position, defending this in the way that she did. If the rules have not been followed and a lengthy period of time—that is, two years—has not elapsed, Sue Gray has had access to highly confidential and very personal information that she is in a very powerful position to use, not just with anyone but with the Opposition party, and with a general election looming.
My hon. Friend is correct. Clearly, Sue Gray has access to a lot of information, but that does not mean she would put that information to ill use. The ACOBA guidelines talk about sensitive information and how someone can avoid the perception that they have been put into a difficult position in those circumstances. ACOBA obviously has a job to do.
Which bond of trust or aspect of impartiality was broken when Sue Gray was a senior civil servant—the same Sue Gray who was praised by the Government as being almost the best thing since sliced bread? What is the problem or issue now?
We are conducting analysis to find out the facts that led up to the resignation of Sue Gray and to ensure they can be set out. It would help dispel concerns, worries and problems if the Labour party could simply set out the facts itself. There is no reason why it could not do that today.
The permanent secretary at the Department for Education recently highlighted the detail of the civil service code to all her staff. She said that
“if anybody receives contact from the Leader of the Opposition or a member of the Shadow Cabinet you should tell your Permanent Secretary right away”.
Is the Minister aware of when Sue Gray informed her permanent secretary of the initial discussion she held with the Labour party before announcing her resignation?
As I have said, there is work in progress to ensure that all the facts are identified, but I am not aware that there were any such discussions prior to Thursday last week.
Not that long ago, the Advisory Committee on Business Appointments found that the former Member of Parliament for Aberconwy, a former Defence Minister, committed a clear breach of the ministerial code by not asking for ACOBA advice when taking up a position. Can the Minister remind us what actions were taken against the former Member for a breach that was described at the time as totally unacceptable? What was done?
The hon. Gentleman refers to a former Member of this House, a former Minister and a former member of the Conservative party—I think he had had the Whip withdrawn at that stage. I do not know what actions ACOBA took and I am not sure what actions it has available, because it is an advisory body. However, I think it behoves all of us who wish to respect the values of impartiality within the civil service and to respect the rules, to ensure that we follow them to the letter.
I think this is an important urgent question. Something about this desired appointment does not feel right to me. To echo the Chair of the Select Committee, my hon. Friend the Member for Hazel Grove (Mr Wragg), who is no longer in his place, I do not think it passes the reasonable test, but we are where we are for now, although I expect there is a lot more to come on this. The Minister confirmed that the Cabinet Office is looking at the circumstances of the job offer. Can my hon. Friend say when we might expect that to be complete? Will he be asking Sue Gray herself, who has every interest in transparency, the “Who met whom, when and where” question?
We will be trying to wrap this up as soon as we can. I do not know how long it will take—hopefully it will be done shortly. It would ease that process if the Labour party would just come clean as to exactly what meetings took place. There is no reason why that should not be made public and why we should be not fully transparent—at least, no reason of which I am aware.
I do not know Sue Gray; I know her only by virtue of her reputation. I do weigh on the words of Lord Maude, which we heard just a moment ago, that she is a person of the utmost decency. I am aware of various civil servants who have joined this place as Members of Parliament on all sides. Therefore I am surprised really at the concern from Government Members, because this is a person of the utmost integrity. Given the high esteem in which she is held, why does the Minister think that the right hon. Member for Uxbridge and South Ruislip (Boris Johnson) never considered appointing her?
As I said earlier, I am not trying to engage in a discussion about a particular individual. I have noted what my predecessor Lord Maude said. As I say, I have personal, direct experience of working with Sue Gray, and have no reason to question her integrity in any way, but this urgent question is about the process; we need to understand it. This is an unprecedented appointment of a permanent secretary to this position. When very senior civil servants choose to leave the service, it is incredibly important that everything is done appropriately. Analysis of that is being undertaken. We need to establish the facts, and it would help if the Labour party assisted us with that.
Does the Minister agree that if the shoe was on the other foot, the Labour party would be asking exactly the same questions? All that we have seen today from those on the Opposition Benches is rank hypocrisy. Does he also agree that the line put out by the Labour party that somehow the Leader of the Opposition’s most senior adviser and chief of staff would not have a role in a general election campaign is utterly ridiculous?
My hon. Friend makes a good point. I have attended a number of urgent questions in this House, and I have rarely seen the Opposition Benches as empty as they are today.
Why are this Government happy to attack civil servants through this urgent question, yet unwilling to pay them properly?
To be clear, we on the Government Benches have no desire or intention whatsoever to attack civil servants. We want to protect the impartiality of the civil service, and protect it from any shift in perception of its impartiality; and we want to hold the Opposition to account, and ask them to be a bit more transparent about their dealings.
The Leader of the Opposition was best friends with the right hon. Member for Islington North (Jeremy Corbyn), but dumped him as soon as the latter lost the election. The Leader of the Opposition was pro a second referendum, but when Labour lost the election, he dumped that. He made 10 pledges in order to become Leader of the Opposition, and dumped them. There has been rebrand after rebrand. The Labour party clearly has a grubby deal going on behind the scenes. The Leader of the Opposition talked about integrity, openness and honesty. Why cannot he evaluate those three things, and tell us: who, where, when and why?
I very much agree that those questions need to be answered by Opposition Members.
I do not know how familiar the Minister is with Matthew 7:3-5:
“How can you say to your brother, ‘Let me take the speck out of your eye,’ when all the time there is a plank in your own eye?”.
Contrary to what the Minister says, this move is not without precedent. Lord Sassoon was a senior civil servant on the same grade as Sue Gray. He resigned in the same month that Lehman Brothers collapsed, only to join George Osborne as his economic adviser three weeks later. In time, he became a Tory Government Minister. Will the Minister confirm that, and correct the record?
I regret to tell the hon. Gentleman that I cannot recall that appointment. There are other appointments that I can think of, but none where the individual concerned had such a prominent role in Government, and was at the centre of affairs in the Cabinet Office and, in this case, the Department for Levelling Up, Housing and Communities. I understand why people inside this House and outside want to ensure that processes have been followed correctly.
The damage has already been done. The Minister keeps telling us about the impact this will have on the civil service, but it has already had an impact. It might also be noted that Sue Gray was chairing the infected blood inquiry; many of us in this House have written to various Minister about that inquiry, to see if we can get answers. What is the status of that very necessary inquiry?
My hon. Friend asks an excellent question. Sue Gray was actually the sponsor of that inquiry inside the Cabinet Office, and I am looking forward to meeting members of the infected and affected community tomorrow. Sue Gray had an incredibly important role in corralling that across Government, and we will need to fill that post. I have not been able to do so to date, but that is a huge priority for me. It requires a lot of work and there are very serious stakes.
I thank the Minister for his answers. Does he accept that impartiality is not just a desirable quality, but an essential quality for any investigation? Does he believe that the test for impartiality was met in this case before any news of later jobs had emerged?
I do not want to prejudge the analysis of the facts. Clearly, ACOBA has to do its work and come to a conclusion. I am sorry to repeat myself to the hon. Gentleman, but more clarity as to what happened when would really help speed up that process.
I confess to feeling a little sorry for the deputy leader of the Labour party, because she has been sent here today to defend the indefensible. We have rules for a reason, and as has been rightly observed across the House, Sue Gray had knowledge not only of some of the most sensitive policy making, but of the legitimate personal interests of Ministers. It is for those very good reasons that we should abhor this decision. Can I agree with my right hon. Friend about the importance of establishing the dates on which these meetings, which undoubtedly would have taken place over weeks if not months, took place? Can I also ask whether he will consider amending senior civil service contracts as well as the civil service code to prevent future such occurrences, because this strikes at the core of the integrity of the civil service?
I thank my right hon. Friend. Work is being undertaken at the moment to look at the conclusions we will draw from the work by Sir Nigel Boardman, PACAC and the Committee on Standards in Public Life, and I would not wish to pre-empt any of those discussions. I do not know—I say this in all candour to my right hon. Friend—whether that has been considered, but there will be a further opportunity in this House, when we come forward with our proposed reforms in due course, for such matters to be raised.
Is it not ironic that Sue Gray was the head of the Cabinet Office’s propriety and ethics team, and it is she who has put the civil service under a dark shadow—a shadow that need not have existed? Is it not also the case that this was therefore bad judgment by her, but also bad judgment by the Leader of the Opposition, who, when asked 10 times this morning to give more information about when the discussions began, evaded it 10 times?
I thank my hon. Friend. I think it may well have been a miscalculation by the Leader of the Opposition. He can do his best to rescue that by being fully open about the facts.
I start by saying that I have worked with many fantastic civil servants in my time as a Minister, and those relationships are built on trust. I have also had a very good working relationship with Sue Gray in the Cabinet Office. Does the Minister agree that this appointment by the Leader of the Opposition is politically naive? It is hard enough for Ministers not knowing which of their WhatsApp messages are going to be leaked to journalists by Members on their own side, but surely this appointment now places all civil servants working with Ministers in a very difficult position in terms of trust and impartiality.
I thank my right hon. Friend. When he says he had a good working relationship with Sue Gray, I know he speaks for many Ministers, me included, and I see other right hon. Friends nodding their heads in agreement with that phrase. However, that makes it all the more shocking that fast-and-loose approaches could be taken to the rules, it appears to me, and that that could therefore bring into doubt the really important relationships of trust that exist between Ministers and civil servants. As my right hon. Friend knows, this is so important for the way we do business, and I think people should think very carefully before they risk doing anything that might call that into question or jeopardise that incredibly important relationship.
I care very deeply about this place, and we have been plunged into a constitutional crisis. Members of this House, whether they are Ministers or not, need to be able to talk to senior civil servants without fear that that information is going to be used for party political purposes. This has done immense damage to the civil service and I do not know whether it will be able to recover, but it is not about Sue Gray; it is about the Leader of the Opposition. We would not be here today if he had not asked her to become his chief of staff. Does the excellent Minister agree that the person to be criticised here today is the Leader of the Opposition?
I concur. I fear that the Leader of the Opposition, in making this appointment, perhaps blundered in his approach and did not really realise or think through the consequences of someone right at the heart of Government being invited to take up a position in the heart of the Labour party, shifting from incredibly important ongoing work to then working in a more party political guise, which obviously has implications.
This latest grubby scandal from the Labour party has cast a dark stain on democracy. Does my right hon. Friend agree that the Leader of the Opposition should come out of hiding, come clean and publish the details of the meetings?
That would help. I have been pondering the earlier question about the efficacy of people moving from the civil service into party political roles. Clearly that cannot be deemed an impossibility, and many of us have benefited from time in the civil service before taking on political roles. But there are ways of doing this; that is what is so important, and it would be very helpful if the Labour party could transparently set out exactly what took place.
The House and the country should know that on 7 September 2019 I witnessed Sue Gray, then permanent secretary at the Department of Finance in Northern Ireland, discuss with a special adviser to the UK Cabinet Office how to exclude solutions other than high alignment with EU law and regulation from consideration by the Government in respect of Northern Ireland and the withdrawal agreement. A month later, the Government proposed the Northern Ireland protocol, which subjected Northern Ireland to EU law and regulation. Since then, Sue Gray has been the civil servant specifically responsible for advising on Union considerations in Government. It was reported this week that Sue Gray was present at the briefing of Cabinet Ministers on the Prime Minister’s Windsor framework, which, among other things, appears to confirm and embed the application of EU law and regulation in Northern Ireland—
The only saving grace for colleagues in any honest, fair and unbiased investigation is the senior civil service. In the light of the appointment by the Labour leader of a senior civil servant who has been involved in many investigations of colleagues, does my right hon. Friend agree that if the process looks like a rotting, stinking fish, smells like a rotting, stinking fish and tastes like a rotting, stinking fish, chances are it is a rotten, stinking fish?
My hon. Friend has expressed his view in his own style. He knows me and will know that my style is to say I am going to await the conclusions that come out of the factual inquiry we are going through now—but he has made his point, as ever.
When I was a Minister at the Department for Levelling Up, Housing and Communities I will have had several conversations with Sue Gray on the basis of confidentiality and impartiality, so I am slightly unnerved to feel she may have simultaneously been having discussions with the Leader of the Opposition. Is the Minister able to tell us when the Secretary of State for Levelling Up, Housing and Communities, my right hon. Friend the Member for Surrey Heath (Michael Gove), became aware of the negotiations between Sue Gray and the Leader of the Opposition?
My hon. Friend refers to conversations he had with Sue Gray, and says that he does not know whether Sue Gray was having conversations with others at the same time. I am not aware of anybody in Government being informed of those discussions before last Thursday, but that could easily be cleared up if the Labour party were just to publish the timeline this afternoon.
I believe in the integrity, diligence and value of our most unique civil service. All civil servants, as with everybody else, have a right to a political view, and they can exercise that privately at the ballot box. I want to put on record that I rigorously defended Sue Gray as she did her work on partygate last year. But in this case what is important is the job that has been left, the time in between, and the job that has subsequently been taken up. I do not need to make the House aware that the events of last year are not just dust that has settled; they are still hanging thick in the air. I am asking, on behalf—
Yes. Thank you, Mr Speaker—my apologies. I am asking a question of the Minister, from the men and women on the normal Clapham omnibus: does this smell right?
I thank my hon. Friend, who is very succinct. We do need to get the facts out and to know exactly what took place. We are doing that work, and it would help if the Labour party were to assist us in that process.
The civil service code states that officials must retain the confidence of Ministers as to their political impartiality. Now that Sue Gray, with knowledge of the most sensitive details of Ministers, has agreed to work in a political capacity for the leader of the Labour party, how can the Government ensure that other Ministers are protected from political stitch-ups?
I am grateful to my hon. Friend. There are rules in place. As I have already said, there is a means by which civil servants who choose to leave the world of the civil service—and even take on political roles—can do so. It is just really important that we know, and that Ministers know, that the rules will be followed in those circumstances, and that we know that they have in this case. That is why we are looking at what took place, and the Labour party could help us with that.
Madam Deputy Speaker,
“The Labour Party has offered Sue Gray the role of chief of staff to the leader of the opposition.”
That statement was issued by the Labour party on Thursday 2 March 2023. Does my right hon. Friend agree that any reasonable person would call into question the impartiality of that person, as of 1 March and any day before?
My hon. Friend raises a fair question, but it is one that we need to explore, given the questions that we are now asking about the timeline towards the resignation of Sue Gray. As I have said repeatedly in this place, why can the Labour party not just tell us when the first meeting took place, and how long the meetings have been happening? It might have been a very short period of time, or it might have been much longer, but I think we would all be reassured to know. They can tell us this afternoon.
Regarding the timing of the approach, the Leader of the Opposition failed around 10 times this morning, on LBC, to answer the actual question. Listeners will be questioning whether “Mr Rules” missed the rules. I also note that today’s Daily Telegraph contains a piece from the constitutional expert Sir Vernon Bogdanor, who says:
“The issue is important, since, if the approach was made before publication, the hope of future employment might—even if only subconsciously—have influenced its content. So it would not be possible any longer to regard Sue Gray as an impartial investigator.”
Does the Minister agree that perceptions matter?
I thank my hon. Friend for his question. I, too, read the article by Sir Vernon Bogdanor. He raised interesting questions. It is why we are taking this issue so seriously. It is why we are exploring and want to get to the facts.
Not only is impartiality important; honesty is important. The Leader of the Opposition seemed a little foggy about dates today. It seems as if perhaps the dates are being scribbled on the back of a fag packet as we speak. If any dates are declared to the Minister, can we trust that they are accurate?
I understand that the Leader of the Opposition may be short of a chief of staff at the moment, but I am sure he has someone who keeps an eye on his diary. I am sure there is someone who could inform this House what the dates were, when the meetings took place, where they took place, and what was discussed and with whom. It is not too much to ask and it would help to clear this up. It would save the Leader of the Opposition the embarrassment of being asked about these things on repeated occasions and not being able to be clear.
Maintaining complete political impartiality is absolutely key to maintaining credibility within the civil service, so does my right hon. Friend agree that if even one meeting or one conversation took place between Sue Gray and the Labour party and the Leader of the Opposition in advance of her resignation about the job offer for such a hugely political job, surely Sue Gray’s political impartiality in her role in the civil service has to be brought into question?
I set out the rules in response to the urgent question. They are there in Hansard and people can read through them. There are protections in the rules to try to ensure that impartiality, and perceived impartiality, is not jeopardised. We will explore exactly what happened in these circumstances.
In the debate on standards in public life in June last year, the hon. Member for Brighton, Kemptown (Lloyd Russell-Moyle) complained to the deputy leader of the Labour party, the right hon. Member for Ashton-under-Lyne (Angela Rayner), that Sue Gray had been asked to come before the Public Administration and Constitutional Affairs Committee, but that the request had been refused several times. The deputy leader of the Labour party replied that she agreed with the complaint and that it showed the then Prime Minister had “no regard for transparency”. Does my right hon. Friend agree that the deputy leader of the Labour party should live up to the standards she was extolling then and be transparent with all the facts?
The right hon. Member for Ashton-under-Lyne says we should follow the process, and I agree with her. It is always important to follow the correct processes. I am sure that when the Labour party reveals all the data, as I am sure it will, we will be able to see whether the processes were followed.
In his response to the Sue Gray report on 25 May last year, the Leader of the Opposition said:
“I have been clear what leadership looks like... I have not broken any rules”.—[Official Report, 25 May 2022; Vol. 715, c. 298.]
If he did not consult ACOBA before announcing this appointment, has he still not broken any rules?
I will conduct the analysis first and then I will be better informed as to exactly what took place, but as I say, this could be cleared up by the Labour party quite swiftly.
A woman of integrity and a self-proclaimed Mr Rules. Does my right hon. Friend agree that in refusing to publish the timeline of the meetings, they have trashed both of those reputations?
I think that is the case, sadly. I think it is, but it could easily be changed by simple publication.
I have already been contacted by the hard-working civil servants who work in my Jobcentre Plus in Maltby and Dinnington who were horrified to hear on LBC Radio this morning the Leader of the Opposition refuse to say 10 times when he was contacted first by Sue Gray in connection with a political job. Does the Minister agree that if any contact took place between her and the Leader of the Opposition or any member of the Labour party, it calls into question not only her current work and previous work, but, unfortunately, the impartiality of the whole civil service? We need to have the dates of the meetings now.
I respect the work of those hard-working civil servants in my hon. Friend’s constituency. Right across the civil service, there is an absolute desire to retain their reputation for impartiality, which they all live in their daily work. That is how they work and they are determined to work for Ministers with a relationship of trust. That is incredibly important. We are not asking much of the Labour party—just to produce that timeline of dates so that we can start to put this matter behind us, with greater transparency.
Does the Minister share my concern that the appointment severely weakens trust in our senior civil servants? The media have now shone a light on Sue Gray and her decisions, such as her appointment of an adviser who told all his Twitter followers to join the Labour party. To the public, this looks farcical. Does he agree that, as a result, only a full disclosure of meetings and conversations will suffice in this grubby affair?
The tragedy is that a public servant’s hard work over a long period of time is called into question, given the nature of the process that appears to have taken place. That is incredibly unfortunate, but the Labour party could help to fix that by being a bit transparent, very open and saying, “This is what actually took place; these are the dates; this is who met and this is where they were.”
This is nothing to do with Sue Gray—the lady could be our first living saint, for all I care—but it is about the roles that she had in government. I could not think of a more sensitive position than head of propriety and ethics, where Ministers need trust. It is not about my party, either—seven Labour MPs have been sentenced to jail over the past 10 years. If they had been in government, I think she would have been quite busy with them, too. It is about those on both sides of the House being able to trust Ministers. I have to agree with colleagues that the trust is already broken. We cannot now have a discussion with someone in that position and be sure that they will not cross over to the other side. Is it time to look at introducing regulations to ensure that this kind of thing cannot happen in such sensitive roles?
My hon. Friend closes this urgent question by noting that it is not necessarily about Sue Gray and her actions. She is a public servant who has, for many decades, worked hard at the heart of government. It shows a miscalculation and a misstep by the Leader of the Opposition. I can only assume that it was inadvertent—I have to hope that. This matter has caused more problems, because in some people’s minds it has called into question the perceived impartiality of the civil service. That was a misstep and a mistake; the Leader of the Opposition should accept that and set out transparently what happened and when, so that we can have absolute clarity on what took place.
On a point of order, Madam Deputy Speaker.
Further to that point of order, Madam Deputy Speaker. I am happy to clarify. If that was the impression that I gave the hon. Gentleman, it was not my intention. The Conservative party took no disciplinary action in respect of that matter. It was a Brexit vote, as the hon. Gentleman will recall. I thank him for the opportunity to put that on the record.
(1 year, 9 months ago)
Commons ChamberLast year we established the Public Sector Fraud Authority as a centre of excellence to work with Departments and public bodies to understand and reduce the impact of fraud. It does so by providing expertise and best-in-class tools to prevent and detect fraud, including in contracts. The Procurement Bill will also fight fraud through extending the grounds for exclusion and by establishing a Department list.
The covid pandemic exposed several conflict of interest problems in public sector procurement. The Government’s Procurement Bill is an excellent opportunity to address those, but it does not pick up all the issues raised by the Government’s own independent inquiries. What will the Minister do to improve on that?
I beg to differ slightly with my right hon. Friend because, as the Parliamentary Secretary, Cabinet Office said, we are absolutely determined to ensure that the Procurement Bill is a step forward in transparency and how we handle conflicts of interest. I believe that it will help to give more reassurance on exactly that topic, but I am more than happy to meet my right hon. Friend if he has further ideas.
Recording and building on best practice is vital to improving how government operates. That is a challenge in a complex digital world where information and data are created at unprecedented rates, but one that we need to get right. I assure my hon. Friend that the civil service is required to maintain records that can be used to spread best practice.
If we do not learn the lessons of history, we can end up repeating the mistakes of the past. Given that Ministers and senior officials in Departments are regularly changing posts, will the Government ensure that each Department has a corporate memory so that new Ministers and officials can see what worked and what did not, and what lessons were learned, to help us to have the most efficient government that we can have in this country?
My hon. Friend asks an excellent question. Under the civil service code, it is absolutely the case that proper records must be maintained so that people can learn from the past and pass that on, and I would always expect there to be professional handovers between teams. On his wider point, I am keen for civil servants to remain in post longer so that they can be judged on outcomes and have the time to follow through on projects, which is particularly important for senior responsible owners. There is also a role for departmental boards to be a repository of institutional knowledge and to ensure that that is communicated to new Ministers and officials as they come through.
It is a pleasure to take it, Mr Speaker. I thank my right hon. Friend for his question. He referred to the rapid response unit; what it was doing during the course of the pandemic was entirely sensible—trawling the whole of what is available publicly on social media to make certain we as the Government could identify areas of concern particularly regarding disinformation so that correct information could be placed into the public domain to reassure the public. I think that was an entirely reasonable and appropriate thing to do. I do not know about the specifics that my right hon. Friend asks about; I would rather not answer at the Dispatch Box, but my right hon. Friend has asked me to write to him and I certainly will.
My hon. Friend is absolutely right that that needs co-ordination. I am delighted to say that my right hon. Friend the Secretary of State for Levelling Up, Housing and Communities has regular meetings to make certain that that co-ordination happens across Government. The levelling-up missions themselves are jointly monitored by my right hon. Friend and by the No. 10 policy unit to ensure that they are effective and we get bang for buck.
I know that my hon. Friend has campaigned long and hard on this issue, and I congratulate him and his area on achieving that huge goal. It is part of a process: since September last year 8,000 jobs have been relocated away from London, with all the associated benefits of people being close to the communities that they serve.
There is, literally, one rule for all normal MPs and another for Ministers in relation to transparency. All ordinary MPs must declare all their financial interests within 28 days, whereas, as has already been revealed, Ministers do it considerably later, if at all. Why do we have to wait until May to know what Ministers’ financial interests are? Only a few weeks ago, when we had a vote on this matter, the Leader of the House promised that she would ensure that all Ministers were held to the same timetable as other MPs. When is that going to happen?
There are a number of ways in which we are taking back control in this place following Brexit. The most obvious example is what is taking place in Committee Rooms in the House even as we speak, as my hon. Friend the Parliamentary Secretary has said. The Procurement Bill is a major step forward: it increases flexibility, and will help smaller companies for many years to come.
The Institute for Government has suggested that publishing more policy advice from officials, publicly, would improve transparency, ministerial engagement and analysis. What assessment have Ministers made of that recommendation, and will it be implemented?
Every Minister relies on good and honest advice from our officials, and we are blessed with just that. It is up to Ministers to determine how that policy is then prosecuted, and to stand up to represent and defend it, and I believe that we need to preserve the privacy between the advice received and the decisions made by the Government. We as Ministers are responsible. I am grateful for the advice I receive, and I do not expect civil servants to defend it. I have to take the decision and I have to defend the advice, and I would rather stick to that position when it comes to how we are accountable to this place.
One in 10 people in the ex-services community face financial difficulties, as the Minister knows. According to research from the Royal British Legion, that is about 430,000 people. In the current crisis, the situation is only getting worse, and I am aware of that as well from my constituency. What steps will be taken to ensure that those former members of the armed forces are not left behind?
(1 year, 10 months ago)
Written StatementsI wish to update the House on the publication of the annual report of the Conflict, Stability and Security Fund (CSSF) for financial year 2021-22, as well as to announce the initial regional and thematic allocations for this financial year (2022-23). Allocation Non-ODA ODA Total Middle East North Africa 33.327 56.894 90.221 Eastern Europe, Central Asia 43.765 45.100 88.865 Africa (sub-Saharan) 34.759 37.000 71.759 Western Balkans 11.097 29.400 40.497 Overseas Territories 21.289 4.869 26.158 South Asia 10.172 30.145 40.317 Asia Pacific 3.526 11.200 14.726 Americas 0.000 8.000 8.000 Regional Total 157.936 222.608 380.544 Counter Extremism 14.674 20.526 35.200 Serious and organised crime 8.531 12.620 21.151 Cyber 14.531 11.550 26.081 Multilateral Strategy 3.581 4.387 7.968 Gender, peace and security 0.578 5.000 5.578 Migration 1.156 5.000 6.156 International state threats 11.560 2.000 13.560 National Security Communications Team 3.581 0.000 3.581 Thematic Total 58.192 61.083 119.275 Peacekeeping 234.159 76.466 310.625 ANISOM 30.000 0.000 30.000 MOD UN Ops Africa 28.617 0.000 28.617 MOD UNFICYP 6.263 0.000 6.263 Non-discretionary TOTAL 299.039 76.466 375.505 Corporate delivery support & other (this includes joint funds unit and pilot activities) 6.936 6.934 13.870 Total CSSF 522.103 367.091 889.194
The CSSF is a cross-Government fund which uses official development assistance (ODA) and non-ODA funding to enable the integrated delivery of National Security Council priorities. In 2021/22, the CSSF spent £858.7 million against a final cross-government allocation of £864.2 million, representing 99.4% spend. A further breakdown of spend against regional and thematic allocation, by Department and by discretionary and non-discretionary spend is included in the FY 2021-22 annual report.
The report outlines how the fund evolved to deliver against the priorities set out in the integrated review of security, defence, development and foreign policy, including through the introduction of two new portfolios: international state threats which aims to improve the UK’s ability to detect and deter hostile state activity, and the gender peace and security portfolio, which seeks to use innovative approaches to addressing gender in post-conflict reconstruction work.
The report further demonstrates how CSSF programmes have delivered against the fund’s core principles, including through further improvements in the monitoring and evaluation of results to ensure value for money and effective delivery.
During this reporting period, the fund continued to adapt to address the ongoing impact of the covid-19 pandemic and played an important role in the UK’s response to Russia’s invasion of Ukraine.
A copy of this document will be deposited in the Libraries of both Houses of Parliament and published on gov.uk.
The CSSF has allocated £889 million to portfolios for financial year 2022-23. This includes some over-allocation, following best practice, to ensure full spend by the end of the financial year.
[HCWS525]
(1 year, 10 months ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
(Urgent Question): To ask the Chancellor of the Duchy of Lancaster if he will make a statement on his Department’s processes for vetting ministerial appointments and managing conflicts of interest.
I thank the right hon. Lady for her question, to which it is a pleasure to respond.
To start with ministerial appointments, appointments made to His Majesty’s Government are a matter solely for the Prime Minister in line with his constitutional position as the Sovereign’s principal adviser and the head of the Government. It is for the Prime Minister to recommend individuals for appointment. In considering potential appointments, the Prime Minister may receive advice from the civil service on matters of propriety and potential conflicts of interest. The civil service has no role in approving or vetoing appointments as appointments are a matter for the Prime Minister. It would not be appropriate for me to comment further on the advice that may be given during the appointments process.
It is critical that all Prime Ministers are able to receive advice in confidence. I would not want to do anything to erode that ability. Once an appointment is made, the process for the management of conflicts of interest and potential conflicts is clear and robust, and follows the processes set out in the ministerial code. It is the responsibility of all Ministers to ensure that no conflict arises, or could reasonably be perceived to arise, between their role and their private interests, financial or otherwise. That is ultimately incumbent on the individual and it is clearly set out in the ministerial code. Ministers should declare and manage potential conflicts of interest, working with their permanent secretary and the independent adviser on Ministers’ interests. They are under an ongoing duty to further declare relevant changes to their interests.
Hon. Members will be aware that the Prime Minister has appointed Sir Laurie Magnus as his independent adviser on Ministers’ interests. Sir Laurie will be taking forward the work on the declaration of Ministers’ interests in line with his published terms of reference. As the Prime Minister confirmed this morning, the independent adviser will also be conducting an investigation to establish the facts surrounding the matters concerning my right hon. Friend the Member for Stratford-on-Avon (Nadhim Zahawi) that have been subject to media reports over the weekend. I know that Sir Laurie will bring integrity and rigour to the role of independent adviser and the outcome of his work will be made public in due course.
Thank you, Mr Speaker, for granting this urgent question. We may have a carousel of Ministers, but it is the same old excuses every single time. Reports that the then Chancellor of the Exchequer agreed a settlement with HMRC, including a penalty, raise serious concerns about not just that case but standards in this entire Government. Can the Minister tell us if the vetting process raised flags to the former Prime Minister about the original appointment and when exactly did the current Prime Minister know? Does he know if and how this conflict of interest was managed, and why was it kept secret? Is there no system in place to prevent a person being actively investigated for unpaid tax from being appointed to run the UK’s tax system? Maybe it is that absurd that no one would ever think it would happen. While we understand the confidentiality of the honours process, surely where a serving Minister is blocked, there is an overwhelming case for sounding the alarm. So did that happen and where is the report? If not, why is there a lower bar to get into this Cabinet than there is to get a knighthood?
No. 10 apparently still does not know if other Ministers are in dispute over their own taxes, so what is the Prime Minister doing about it? Last week, he told the House that all questions had been answered and he was told there were no outstanding issues, yet now the independent adviser is investigating. So will he publish the terms of reference, and why does the Prime Minister need an adviser to tell him that this conduct is unethical? If this is not a breach of the ministerial code, surely the code itself is wrong and it is the Prime Minister’s job to fix it.
If the Prime Minister came clean about what he knew and when, and took responsibility for the conduct of his own Cabinet, would we need yet another investigation into another member of his top team? Even now, No. 10 says that the party chair retains the Prime Minister’s full confidence. How can the Prime Minister claim to deliver the integrity, professionalism and accountability that he promised while his Conservative party chair still sits in his Cabinet?
We follow a proper process under the ministerial code. Interests are required to be declared. They are required to be shared through the ministerial code process and discussed with permanent secretaries. I am absolutely confident that the usual process will have been followed in the appointment process by this Prime Minister for my right hon. Friend the Member for Stratford- on-Avon (Nadhim Zahawi). If there are issues to be raised in respect of historic activities, as was suggested by the weekend’s press, that is a matter for the independent adviser to look at. The summary of his findings will be published in due course. Integrity and accountability are critical, as is professionalism, and the Government will wait and hear the facts before taking decisions based on those facts. The right hon. Lady would do well to do the same.
It is a great shame that the processes of the propriety and ethics team of our civil service are being called into disrepute by the comments of the right hon. Member for Ashton-under-Lyne (Angela Rayner). We have to accept in public life that there are times when you may be asked to serve in government. When you go through that process, you are required, rightly, to disclose absolutely everything that might cause conflict with you being a Minister of the Crown. Does my right hon. Friend agree that that process can survive only when there is both confidentiality about disclosures and tolerance on all sides while that process is completed?
I thank my hon. Friend for what he said. He is absolutely right. For people being called into government, there is a proper process and there is a requirement for full disclosure. For that process to continue to be meaningful and to work for decades into the future, we need to retain confidentiality. That has to be part of it and the right way forward when an issue has been raised is for the independent adviser to look into it, as he is doing.
Here is what we know about the appointment of the BBC chair. The BBC chair Richard Sharp helped to arrange a £600,000 loan for the right hon. Member for Uxbridge and South Ruislip (Boris Johnson), weeks before he was chosen by the former Prime Minister to become BBC chair. Mr Sharp appeared before the Digital, Culture, Media and Sport Committee, on which I sit. We grilled him about his £400,000 gift to the Conservative party. However, he did not disclose his role in getting the man appointing him a huge loan. Mr Sharp, the former Prime Minister and the cousin offering the loan dined together at Chequers pre-loan and pre-appointment—and the former Prime Minister’s spokesperson says, “So what? Big deal.”
The Cabinet Office ethics team told the former Prime Minister to stop talking to Mr Sharp about his finances. Ministers told other applicants not to waste their time applying; the appointment was to go to the friend of the right hon. Member for Uxbridge and South Ruislip, the Tory donor. Even by the grubby standards of this Government, it is all a bit banana republic, is it not?
I thank the hon. Gentleman for his question. As he knows, there was a very robust process in place for the appointment of the chairman of the BBC, including a pre-appointment hearing. I read the transcript this morning, in which he played his usual prominent role in grilling the appointee, pre-appointment. It was an incredibly robust process, with an independent panel of five members going through that process. To reassure the House, I understand that the Commissioner for Public Appointments is going to double-check that that process was absolutely consistent with the proper governance expected of these appointments. I know that the chairman of the BBC has invited the BBC’s senior non-executive director to discuss the matter with the board to make certain that all relevant conflicts of interest were properly disclosed. So there are two processes ongoing. But this was a very robust process.
I am astonished, though I should not be, at the brass neck of the shadow Leader of the Opposition in suggesting that the Prime Minister did not need to ask his independent adviser about the matter when the Opposition spent months calling for an independent adviser to be appointed. Is my right hon. Friend the Minister aware of any plans that the independent adviser has to publish an updated list of ministerial interests?
My hon. Friend is absolutely right. Opposition Members have been calling for an independent adviser for months. When one is appointed, it is not good enough; then they say that the Government should take all decisions by themselves, without all the facts. It is useful to have an independent adviser to deal with these issues when appropriate. I reassure my hon. Friend that my understanding is that the independent adviser plans to issue a publication on ministerial interests before his report in May.
The Public Administration and Constitutional Affairs Committee, of which I am a member, is ready to help, and looks forward to meeting the new ethics adviser. The Prime Minister has said that there are questions to be answered. The Minister has been very careful to say that declaring interests under the ministerial code is up to the individual, which is correct. Did the Prime Minister know that the right hon. Member for Stratford-on-Avon (Nadhim Zahawi) was due to be investigated?
The usual appointment process was undertaken, so the Prime Minister will have had the benefit of full disclosure of the interests that my right hon. Friend the Member for Stratford-on-Avon declared when the Prime Minister appointed him chair of the Conservative party.
The Prime Minister correctly asked his independent adviser on ministers’ interests to establish the facts. Does my right hon. Friend agree that we must not prejudge the outcome, and should allow the process to conclude?
I agree. That is the purpose of having an independent adviser. He has been asked to investigate, and to work out exactly what the facts are. It would be ill-judged to make a decision before knowing all the facts that pertain.
I am sure that we all remember the Prime Minister’s first speech from Downing Street, in which he promised us
“integrity, professionalism and accountability at every level.”
Unfortunately, we have seen precious little evidence of that so far. This weekend, yet more doubt has been heaped on the minds of the electorate, certainly in my constituency, as to whether they can trust politicians. Does the Minister accept that unless something is done very quickly about the vetting and management of conflicts of interest, further damage will be done to the British public’s confidence in this place?
We have the Nolan principles and the ministerial code. Both are extremely important documents, and extremely important approaches. The hon. Lady rightly refers to professionalism, but part of professionalism is being certain to take decisions based on all the facts. I know that she will respect the point that it is useful to have those facts established, but I concede that they should be established swiftly.
Does my right hon. Friend agree that under their bluster, what Opposition Members are really saying is that there are various questions to which they do not have the answer, and issues that they do not have the facts about, not least because His Majesty’s Revenue and Customs does not comment on people’s tax affairs? It is absolutely right that the independent adviser be allowed to collect and publish those facts, to set the record straight.
Indeed. I have absolutely no doubt that my right hon. Friend the Member for Stratford-on-Avon will co-operate in every way with the independent adviser to make certain that all the facts are known. In due course, the independent adviser will come to his conclusions, and the summarised conclusions will be published.
The Prime Minister stood on the steps of No. 10 Downing Street and promised the nation that he would act with integrity, yet here we are again. Is this whole affair not yet more proof that there are far more likely to be conflicts of interest when we have a Government of the super-rich, for the super-rich?
I would never have guessed that I would get a question along those lines from the hon. Gentleman. The important thing, as the Prime Minister said, is integrity, accountability and professionalism. That is absolutely right; that absolutely underpins this Government. Part of that is about making certain that we have the facts—and that is what we are undertaking to do under the auspices of the independent adviser.
The ministerial code seems now to be a set of guidelines. This is starting to sound like a script for “Pirates of the Caribbean”. If someone has disclosed that they are in dispute with the Inland Revenue about their taxes, is it appropriate to appoint that person as Chancellor of the Exchequer? Surely the matter should have been resolved before such an appointment took place.
The hon. Gentleman will have to excuse me: I do not know what was disclosed, and nor does the hon. Gentleman. That is why we have an independent adviser making certain that we have the facts addressed.
The current chairman of the Conservative party went on television before he settled his tax debt and said that his tax affairs were “fully paid and up to date”. We now know that that statement was untrue, do we not?
I have a great deal of respect for the right hon. Gentleman, but he knows that I do not know the answer to that question—I genuinely do not. But I have no doubt that the work of the independent adviser will establish the facts and that that will be reported to the Prime Minister.
The challenge here for the Minister is that the original allegations arose in July of last year, publicly. Indeed, there was subsequent evidence that lawyers were instructed to try to suppress those allegations, well before any appointment was made by his political party, or indeed by the Prime Minister. The Minister talks about allegations arising this weekend. Whose due diligence was lacking: was it the Cabinet Office’s, was it the Conservative office’s, or are we just not being told the whole truth in this matter?
The full process would have been undergone, in terms of the appointment of my right hon. Friend the Member for Stratford-on-Avon to the Government as chairman of the Conservative party or his appointment to the Cabinet Office, when he was appointed by this Prime Minister. That was clearly in a period after the July commentary in the press. I do not know what was disclosed; I imagine that everything was disclosed, but that is a matter for the independent adviser to ascertain.
BBC journalists have to spend a great deal of their time defending the BBC’s impartiality and integrity from criticism from all sides in this country. How is their job made easier by the revelation that the current BBC chairman involved himself in the private financial affairs of the then Prime Minister before he was appointed to the job? That was something that, under civil service rules and BBC rules, they should both have disclosed to the independent Commissioner for Public Appointments, but apparently—according to the former commissioner Sir Peter Riddell—neither did.
My understanding is that my right hon. Friend the Member for Uxbridge and South Ruislip (Boris Johnson) and the gentleman in question have both said that no financial advice was provided from one to the other. That is my understanding. I do know that the chairman of the BBC has invited the senior non-executive at the BBC to look into his disclosures to make certain that everything was done properly. That process will also be undertaken by William Shawcross as Commissioner for Public Appointments, to make certain that the process, which appeared to be an extremely robust one—indeed, it involved a grilling in front of the Select Committee, before the right hon. Member for Exeter (Mr Bradshaw) and others—was absolutely consistent with the Government’s rules on these appointments.
Actually, the Minister is making an interesting point. Before the candidate appeared before the Select Committee, he had to fill in a questionnaire and answer the question, “Do you currently or potentially have a business, financial or non-pecuniary interest or commitment that might give rise to the perception of a conflict of interest if you are appointed?” Does the Minister agree that helping to arrange an £800,000 loan for the person ultimately responsible for the appointment was something that should have been declared in response to that question?
The hon. Gentleman is making a statement about helping to arrange a loan. I do not know the basis on which he makes that assertion, but I know that all matters to do with any conflicts of interest or perception of conflicts of interest will be looked at by the BBC under the process established by the chairman.
On Wednesday the Prime Minister stated that there were no outstanding issues. By the weekend, he had ordered an independent internal investigation. Can the Minister ensure that all the information that escalated this from “nothing to see” to an investigation of this kind is placed in the Library of the House?
What is absolutely the case is that a summary of the findings of the independent adviser and the outcome of that work will be shared with the House.
A person is 23 times more likely to be prosecuted for benefit irregularities than to be prosecuted for tax irregularities, but tax irregularities lose the economy nine times more. Have the Government any plans to redress that imbalance?
As I know from my work in the Cabinet Office, there is a huge focus across Government on ensuring that we go after tax evasion in all its forms. It is incredibly important that we do so and that we cut waste across Government, particularly when it results from fraudulent behaviour. That is what we do every day, and HMRC is responsible for following it up and making certain that people pay the tax that is owed.
I am hearing from constituents that they are heartily sick and tired of incessantly reading stories about tax irregularities, cheating and fraud, and the self-serving elite. Faith in politics and in this institution is at an all-time low, as is faith in the BBC in the light of these revelations. The one common denominator is the Conservative party, and this will only ever be cleared up once that lot are out of the door and out of government.
I am not certain what the question was, but I certainly disagree with the tone taken by the hon. Gentleman. I think that we have an incredibly valuable organisation in the shape of the BBC. I for one support it, and I think it is unfortunate to start making allegations about the BBC as a whole on the basis of something the facts of which are disputed.
Are any other Ministers currently in dispute with HMRC about their tax arrangements?
It is a matter for individual Ministers to go through the proper process under the ministerial code, and that is what everyone does. It is a requirement under this Government, as it has been a requirement under all Governments. There is full disclosure in that process. The Minister needs to talk to his or her permanent secretary, and it is critical that no conflicts of interest or, indeed, perceived conflicts of interest are established.
Will the inquiry confirm the nature of the agreement between the right hon. Member for Stratford-on-Avon (Nadhim Zahawi) and HMRC?
I have every confidence that my right hon. Friend the Member for Stratford-on-Avon will be totally open with the independent adviser who will be producing a report for the Prime Minister so that the facts can be fully established.
With respect, the Minister is attempting to balance on the head of a pin when it comes to Richard Sharp’s involvement in the loan to the former Prime Minister. He may not have provided advice and he may not have arranged it, but he was clearly involved in the introduction. On that basis, should he not have made the declaration referred to by my hon. Friend the Member for Cardiff West (Kevin Brennan) when he appeared before the Committee?
Obviously Mr Sharp felt that that was not required, and that that was not the case. I understand that a process was put in place to separate him from the loan arrangement. As I have said, Mr Sharp has asked a senior non-executive director at the BBC to ensure that all matters relating to disclosure were followed correctly by him in this process.
Can the Minister tell us whether any Ministers were informed that the Conservative party chair had been blocked from receiving an honour? If so, did the Government take any action after receiving that news?
I genuinely do not know the answer to that question. There is a process for honours and awards, which is kept highly confidential. I do not know whether my right hon. Friend was up for an award or whether that was blocked. It would have been a very tight process and I do not know if there is any ministerial involvement in that process.
Here we go once again, having a debate after being angered by the lack of ethics and the alleged serious wrongdoing of Government Ministers. Despite the Prime Minister making big promises about integrity, professionalism and accountability, we know that he will do diddly squat about it because he is too weak and he is beholden to those very Cabinet Ministers to cling to power. Does the Minister not think that the British people will smell a rat when they see that the Conservative party chairman, when he was Chancellor, was supposed to be in charge of the Government’s finances at the same time as trying to strike a multimillion-pound tax deal with HMRC for alleged serious wrongdoing?
The hon. Gentleman’s view of the Government and mine come from different perspectives. I have a huge amount of time for my right hon. Friend the Prime Minister, who is leading this Government in the right direction. The hon. Gentleman is unwise to take a view on the outcome of an inquiry that has not yet properly commenced. But it will—the independent adviser will get there and will establish the facts.
Can the Minister confirm whether the right hon. Member for Stratford-on-Avon (Nadhim Zahawi) will make his tax affairs transparent to an investigation by the independent adviser, and will he confirm that the Prime Minister will set that as a requirement of the investigation?
As I have made clear, I cannot imagine circumstances under which my right hon. Friend the Member for Stratford-on-Avon would not wish to be fully transparent with the independent adviser. That will be necessary for the independent adviser to do his job and it will enable him to establish the facts.
I will not get into the specifics of the individuals concerned but, following on from the question from the hon. Member for Guildford (Angela Richardson), I want to know why we do not yet have in the public domain the financial interests of all Ministers. The list on the website is 243 days old. It is not even an accurate list of Ministers. It is not even an accurate list of the last set of Ministers or the one before that.
This Government have been in place for 90 days. There are now Ministers who were not even a Member of either House back then and who do not appear anywhere. Surely, the public ought to know within a week or so of a Minister being appointed what all their financial interests are. Why can we not have that? Why must we wait another three months—that is what the Minister said earlier—before we find out all the financial interests of Ministers? We should know that now.
It may be three months, but it may be three hours. My understanding is that it will be by May. I cannot commit to a date because I am not the independent adviser. He has work to do to publish it, but my understanding is that an updated list of financial interests will be published before his report is out in May.
(1 year, 10 months ago)
Commons ChamberI beg to move, That the Bill be now read a Second time.
At some £300 billion, public procurement accounts for around a third of all public expenditure every year. By improving the way we procure, we can save the taxpayer money, drive innovation and resilience, and deliver benefits across every region of the country. We have an opportunity, post our departure from the European Union, to create our own regulations that can help to drive transparency, prosperity and growth. The Procurement Bill seizes that opportunity and reflects three years of policy development, public consultation and detailed intensive engagement. This has included local government, the education and health sectors, businesses of all sizes, and the social enterprise sector, among others.
To ensure that the new regime is truly world leading, the Bill will fundamentally improve the UK’s public procurement regime, driving a relentless focus on value for money. It will create a simpler, more flexible commercial system that better meets our country’s needs.
The Minister is starting out with the message that the Government are somehow able to do this because of Brexit, but it was nothing to do with European regulation that the Ministry of Defence decided to contract for naval vessels from other countries. In doing that, it was no way acting like any other European country. It was a Whitehall choice and a ministerial choice. The Government had the choice, and they should stop using this as a smokescreen.
I referred to the right hon. Gentleman as my right hon. Friend because he is so familiar from my appearances at the Dispatch Box in my Ministry of Defence role, and it is lovely to hear the same lines being produced again. I am no longer in that role and I am not here to speak for the Ministry of Defence, but I think he must be referring to the fleet solid support ship programme—a prospect that will rejuvenate Harland & Wolff and really get Appledore working again. I believe that it will deliver 1,500 jobs to the UK shipbuilding industry, helping to recreate the skills that were so foolishly lost in the last round. The decisions that were made under the last Labour Government in 2005 left us with fewer yards than we would all like, and I think it was a positive decision from the Ministry of Defence to award the FSS contract as it did. I wish Harland & Wolff and the rest of the British designers the very best with it.
But is the Minister clear, now that he has left the Ministry of Defence, that the contract is not with Harland & Wolff, but with the Spanish shipbuilder Navantia and a British shell company set up only last June? There is no assurance that this work will go to British yards.
The right hon. Member refers to Team Resolute, and I am delighted that it won the tender. The majority of that work will be undertaken in British yards—[Interruption.] We could continue to make this a discussion on defence procurement, but I think the rest of the House wants to discuss the Bill before us, as I certainly do.
The Minister says that he is here to talk about a modern procurement system for the UK, but The Guardian is saying today that a Conservative peer who advised the Government during the pandemic helped a company to secure a £50-million contract after being introduced to the firm by another peer with financial interests in that company. Can the Minister tell us exactly which clause in the Bill he is putting forward today would have prevented that extreme example of cronyism from happening?
Alas, it is a great loss to me, but I have not read The Guardian today and I am not in a position to comment in detail on what the hon. Gentleman has said. If he goes through the Bill in detail, as I and other Members have, he will find the parts that refer to declarations of conflicts of interest. These are issues that we will be significantly improving through the Bill to ensure that there can be no doubt that integrity lies at the heart of our procurements. That has always been the case, but it will be even more entrenched as a result of the provisions of this Bill.
I hope that the hon. Gentleman will allow me to make some progress. If I give two chances to every Member, we will be here for a much longer time.
There are currently hundreds of procurement regulations spread over four different regimes for different types of procurement. We will consolidate them into a single regime. This will remove duplication and create one rulebook that everyone can understand and use, with sectoral differences only where absolutely necessary, such as for reasons of defence or national security.
Which line in the Bill will prevent, say, a future landlord who has a close relationship with a future Minister from securing a contract worth millions of pounds for personal protective equipment, or prevent someone who produces underwear, who happens to be in the other place, from securing a contract via a conversation via a VIP lane? Which line in this Bill will close that down?
If the hon. Gentleman has not read the Bill, I recommend that he does so. There is a lot of it, but it is a good read and he will find it has a range of measures to ensure transparency at the heart of our procurement. I do not accept the premise of his question—if his question has a premise—that previous procurements were incorrectly awarded; far from it. If he wants to see a Bill that enhances transparency, that ensures there are always proper procedures in place to address conflicts of interest and that ensures the best propositions win tenders, he will support the Bill this evening, as I hope the rest of the House will.
Perhaps I could mention something that is in the Bill, rather than not in the Bill.
I welcome the Bill, and particularly how it will benefit our small and medium-sized enterprises and the local sustainability of good-quality British products, but clause 65 was helpfully added by the noble Lord Alton and a cross-party alliance in the other House to make sure that we do not procure from countries found guilty of genocide or human rights abuses, particularly China. Can the Minister confirm that the Government not only support clause 65 but will extend it beyond just surveillance technology? We should not procure goods and services from countries found guilty of genocide or human rights abuses, such as China in Xinjiang, as verified by a vote in this House. We should just not deal with them.
It is a pleasure to respond to a question about a clause in the Bill, for which I thank my hon. Friend. We are thinking through the Lords amendments, and there will be further time to discuss them in Committee. Anything that is added to the Bill must be deliverable and workable. I stress that the Bill already contains much-enhanced provisions to ensure we can prevent inappropriate suppliers from coming into our production chain, not just as primes at the top level but right through the supply chain. For example, we will be able to debar companies for misconduct or illegality. We are taking far more powers than we had under the old EU regime, which should be welcomed by all Members of this House.
My right hon. Friend was making a point about ethics, so I will make a point about dependency. Do the Government accept that they have purchasing power to reduce our dependency on authoritarian states, and do they accept there are lessons to be learned from the Ukrainian war, our economic and energy dependence on Russia and our economic dependence on China? Will they accept an amendment, tabled by me or by others, so that, as well as having ethics at the heart of this Bill, we can discuss how to reduce our dependency on states that seek to harm us, be it Russia, China, North Korea or Iran, etc.?
I would welcome the opportunity to speak to my hon. Friend about any amendment he might table, and we would, of course, look at it seriously. I recognise the general point that this country has realised, as have all our friends, through covid and subsequently that it is incredibly important to understand our supply chains and to understand where our procurement comes from. The Bill will help us do that by enabling us to look through the entire supply chain—not just the top level, but deep inside—to make certain that we are able to stop suppliers that are effectively in misconduct, and to make certain that resilience is part of our thought process in procurement. I believe all those valuable assets are incorporated in this Bill, but I am more than happy to have further discussions with my hon. Friend.
I hope the House will forgive me if I make a little progress. Running through this Bill is a theme of greater transparency. Through the Bill, we will deliver world-leading standards of transparency in public procurement. It covers contracts awarded across the public sector, including by central and local government, arm’s length bodies, education authorities and health authorities. It also covers contracts awarded by publicly funded housing associations and by companies in the water, energy and transport sectors.
The Minister is being generous in giving way. Can he indicate whether the Government will accept the amendments made in the other place requiring contracting authorities to maximise environmental benefits when awarding contracts, and particularly to ensure compliance with the Climate Change Act 2008 and the Environment Acts? Does he accept that that should not be optional, as the climate emergency is so urgent that it ought to be required by this Bill?
That urgency is why we have published procurement policy notes on our commitment to net zero, just as we have published them on social value. We are keen for the Bill’s wording not to be very prescriptive, because the Government will have to announce procurement policies from time to time. I totally accept that there is a case for ensuring that our net zero commitments are met, but putting them in the Bill, which would create a big, laborious process for SMEs and procurers, be they local councils or central Government, is not the right way forward.
This Bill sets out a strong framework that gives us far more powers, but it is then open to the Government to set out, through a national procurement policy statement, the focus on social value or environmental concerns. I hope the hon. Lady accepts that the procurement policy notes we have already published show our commitment to doing just that.
The Minister is being incredibly kind in giving way, and I recognise his generosity.
What measures in the Bill will protect the supply chain from collapse, as we saw with Carillion? Project bank accounts, which are already used across Government, would protect the supply chain. Thousands of small businesses went out of business or lost hundreds of thousands of pounds during Carillion’s collapse, so will the Minister introduce something like that? There is also a question about protections for retention money, so will that be included?
That is a matter not so much for the Bill as for the operation of commercial practice. The outsourcing playbook has been used effectively since Carillion, and we have since seen other examples of public suppliers getting into difficulty. They are carefully monitored across Government. We will not always spot everything, but there is close working across Government to monitor our suppliers and to ensure that we can act, and act swiftly, where a supplier falls into problems.
National Highways, for example, uses project bank accounts to protect its supply chain as a matter of course, and it says that they are its preferred option. If the Department associated with National Highways is doing that, why cannot they be used across all Government Departments?
I am not familiar with the specifics of project bank accounts, to be perfectly frank. We have put measures in place to protect supply chains in the event of the collapse of a prime supplier, but I will take this up with my officials and write back to the hon. Lady.
In recognition of the specific needs of defence and security procurement, and to help deliver the defence and security industrial strategy, a number of provisions specifically apply to defence and security contracts. These provisions will provide flexibility for contracts to be upgraded to refresh technology and avoid gaps in military capability. There will continue to be special rules for certain social, health and education services, to be identified in secondary legislation, that may be procured as so-called light touch contracts, recognising the particular domestic and social aspects that should be captured in such procurements.
The interaction with regulations being prepared under the Health and Care Act 2022 was the subject of particular attention when the Bill was considered in the other place, and it may well be of interest to this House. The Bill will apply to most areas of NHS procurement of goods and services to help drive efficiency and value for money. However, the Health and Care Act regime is intended to address the specific requirements of the health and care system and to fulfil the Government’s intention to deliver greater collaboration and integration in the arrangement of clinical healthcare services.
Let me be clear that the Bill strengthens the NHS’s ability to deliver. The reforms to healthcare commissioning in the Health and Care Act will give commissioners more flexibility in how they arrange services so that both procurement systems can work effectively and deliver care for patients.
The Bill sets out the key principles and objectives of public procurement. These place value for money, public benefit, transparency and integrity at the heart of our procurement system. As well as competition and efficiency, there must be good management to prevent misconduct.
Public procurement is one key way in which the Government can set a framework whereby employers’ standards can be driven up and a good example can be given to other employers. So will the Minister accept an amendment that gives priority when awarding Government contracts to the many thousands of companies that pay their staff the real living wage?
I do not think this is the process whereby we tell employers what they should be paying their employees; that would be a big reach too far. The hon. Gentleman will be pleased that this Bill contains provisions that ensure that we can prevent companies that commit misconduct from taking part in procurements, and that can be in any range of areas. However, this is not the Bill by which we are going to be regulating employees’ pay.
I welcome this Bill, particularly because, as the Minister rightly points out, it introduces far greater transparency and competition, precisely as I was calling for two years ago in the Government-commissioned report on competition policy. I am delighted to see the Bill coming forward with those measures. May I push him on value for money, which he mentions and which is clearly important? The evaluation task force, which exists jointly between his Department and the Treasury, is a tiny unit that covers a tiny fraction of Government procurement spending. Will he pledge, either today or later in the Bill’s progress, that its role will be expanded to cover far more of what we are buying, in order to make sure that we are buying things that genuinely work and it can say that things have been evaluated and either they have produced the goods or they have not, and therefore should or should not be renewed or rolled over in future?
I thank my hon. Friend for the ideas he threw in our direction, which have been picked up. He is right to say that greater transparency is absolutely reflected in this Bill, and I thank him for the work he did. There has been a long lead-up to get to this Bill and we thank him very much for his support. I am proud of the evaluation task force and the work it does, not only on procurement, but on other areas of policy, looking into them to make certain that they are delivering what we intended when they were announced. That is an important tool for all Governments. I would love to see the evaluation task force grow. It is growing in experience and in the amount of projects it is taking on. It has covered a fair bit of the waterfront, but I appreciate that it is merely a small element at the moment and I would like to see it grow. However, he will forgive me if I do not start making commitments of that sort at the Dispatch Box—
When we talk about NHS procurement and the challenges for small and medium-sized enterprises in dealing with the NHS, we are talking about small companies dealing with a vast organisation. PolyPhotonix, a company in my constituency, gave me an example of the frustration involved. It created a light therapy mask to help treat diabetic retinopathy, and I have been supporting the company. The NHS procurement process has been extremely complex, although the company got the mask approved. There was NHS investment in innovation to develop it, but it became used in the private sector before the NHS, because the NHS procurement could not get it right or could not make the approvals. Those were finally obtained and the mask is now active, fabulous and a great product. The other NHS trusts all want to approve it themselves, so surely there is an opportunity here. If something is approved by one NHS trust, surely it does not need to be approved by every other one before it can be used. Is there some opportunity in the Bill to facilitate that greater ease for SMEs?
I recognise the frustration of the company in my hon. Friend’s constituency. He should take up the specifics of that with my right hon. Friend the Health Secretary, but more generally he raises an extremely valuable point, not just in the health sector, but more broadly, about the ease of doing business with Government for SMEs. The Bill contains a range of measures on this: it puts a duty on procurers to ensure that they are considering the specific needs of SMEs; it ensures there is a 30-day payment period; it ensures that pipelines are put out well in advance; it says, “You don’t need to be insured to do the job before you have won it”; and, above all, it provides for one entry point and allows companies to set out in one place what they are as a smaller company before they even start thinking about the tender they are applying for. All those are incredibly valuable components to make it easier for an SME to thrive.
I will not give way at this stage. I thank the hon. Gentleman for the offer, but I think I should be making a little more progress.
In delivering value for money, the Bill will require procurement teams to take account of national priorities, as set out in a new national procurement policy statement. These are national priorities such as improving supply chain resilience, enhancing skills, driving innovation and, of course, protecting the environment. Procurers will be able to give greater weight to bids that support such priorities. I know that in the other place there is a strong desire to pursue particular interests and include a range of policies in the Bill. The Government instead believe that that is a purpose of the NPPS. We want to keep this legislation as clear and simple as possible; the intention is that we allow procurement to keep pace with evolving policy priorities and we do not swamp contractors and SMEs in paperwork.
The Bill will accelerate spending with small businesses. New duties will require contracting authorities to have regard to SME participation. Public sector buyers will have to look at how they can remove bureaucratic barriers and level the playing field for smaller businesses. Commercial frameworks will be made more flexible, with the new concept of an open framework, which will allow for longer-term frameworks that are reopened at set points, so that small and emergent businesses are not shut out for long periods. These measures build on existing policy, which allows procurers to reserve competitions for contracts below the thresholds for SMEs and social enterprises based in the UK, taking full advantage of the new freedoms following our exit from the EU.
We are determined to improve the prompt payment of small businesses in our supply chains. As I have mentioned, 30-day payment terms will apply contractually throughout the public sector supply chains and be implied into the contract, even when not specifically set out. The Bill provides for new improved procedures for the award of public contracts, supported by greater flexibility. Buyers will be able to design procurement processes that are fit for purpose and will create more opportunities to negotiate with suppliers so that the public sector can work in partnership with the private.
We will also take tougher action on underperforming suppliers.
On partnership between the public and private sectors, the steel industry is a crucial aspect of that. Does the Minister agree that the Government should be looking to set indicative targets for the amount of domestically produced steel that we are putting into Government-funded projects? That would enable us as a country to make, buy and sell more in this country, which should surely be a strategic objective of the Bill.
The hon. Gentleman treads a well-trodden path. Through steel procurement, we are always keen to set out the pipeline and provide every assistance we can to the domestic steel industry. However, as he knows, there are also international obligations, of which we are mindful and I know he will also be mindful, in respect of how we conduct our public procurement. I am not certain whether what he suggests would be consistent with the Government procurement agreement. [Interruption.] On pipelines, we are doing everything we can to help the domestic steel industry see the opportunities ahead of it and engage with public procurement. This is something we definitely and warmly appreciate.
We will also take tougher action on underperforming suppliers or those who present risks through misconduct. The Bill puts in place a new exclusions framework that will make it easier to exclude suppliers that have underperformed on other contracts. Through the Bill, I am pleased to say that we are targeting those who benefit from the appalling practice of modern slavery and, in doing so, undermine our own industrial resilience. The Bill makes explicit provision to disregard bids from suppliers known to have used forced labour or to perpetuate modern slavery in their supply chain. Contracting authorities will now be able to exclude suppliers where there is appropriate evidence of wrongdoing, whether in the UK or overseas.
I wholeheartedly support the Minister on that. I want to take him back to a previous point about late payments and the 30-day term. How will the Government monitor those and ensure adherence? Will that be done through audited accounts? What will be the punishment if there is not adherence?
Ultimately, this is contractual. On the prime, that is easy: we will be paying the prime contractor within the 30-day period. People in the supply chain will be aware of the contract under which they are supplying to the prime, and we expect that 30-day payment to trickle all the way down the chain. It is the first time that such a measure has been incorporated. It really will be for primes to be held to account. I say to hon. Members of this House that if partners to a contract are not being paid without good cause, it will call into doubt the contract with the prime supplier, so it will be very much in the interest of the prime supplier to deliver. Every effort the Government have made to improve the payment terms through the supply chains has so far been adhered to pretty well by industry. Across Government, we have seen a significant improvement in payments out to industry, and we are expecting a ripple-down effect as a result of the Bill.
We will also create a new debarment list, accessible to all public sector organisations, which will list suppliers who must or may be excluded from contracts. This approach will ensure the high standards that we expect in the conduct of suppliers who benefit from public money. Embedded in the Bill is our commitment to creating an open and transparent system. Everyone will have access to public procurement data: citizens will be able to scrutinise spend against contracts; suppliers will be able to see the pipeline of upcoming contracts so that they can identify new opportunities and develop innovative solutions; and buyers will be able to analyse the market and benchmark their performance against others on, for example, their spend with small and medium-sized enterprises.
The Bill contains key provisions to enable these new levels of transparency, along with the statutory obligation on the Government to deliver a single digital platform to host this data. The Bill will strengthen existing obligations on contracting authorities to identify and mitigate the conflicts of interest in procurement decision making. These new requirements will ensure that conflicts of interest are managed transparently and in such a way that maintains the integrity of the public procurement regime. Additional safeguards include mitigations that may be required of suppliers by contracting authorities and for procurement teams to record and maintain a written assessment of conflicts.
In common with all procurement regimes, provision is made in the Bill for direct awards in a limited number of special circumstances—for example where extreme urgency means that there is no time to run a competition. Ministers will now be able to make provision for contracts required in a rare emergency event when action is necessary to protect life or public safety. This must be kept under review, revoked when no longer necessary, and is subject to the necessary parliamentary scrutiny in both Houses through the affirmative procedure. The Bill also requires that, before a contracting authority directly awards a public contract using any such regulations, a transparency notice must be published. These are major safeguards that did not previously exist.
The Bill fully honours implementation of our international trade agreements, including the World Trade Organisation agreement on Government procurement, which provides UK businesses with access to procurement opportunities collectively worth an estimated £1.3 trillion per annum.
The Minister mentions trade deals. Both the Australia and New Zealand trade deals have a large procurement element. That will fall away if the Bill becomes an Act. I note that the Trade (Australia and New Zealand) Bill has not yet received Second Reading in the other place. May I urge him to hold discussions with business managers with a view to manipulating things so that we get Royal Assent for this Bill rather than for the Trade (Australia and New Zealand) Bill to avoid the very small problem—a problem of just a few weeks—of trade deals being done within a new set of rules that will very quickly become obsolete?
I thank my hon. Friend for a most ingenious comment. I had not considered the calendar of the two Bills. It is an interesting point. I will raise the matter with business managers.
We will continue to support UK businesses so that they can continue to be successful in competing for public contracts in other countries around the world by protecting reciprocal arrangements and guaranteeing market access, treating each other’s suppliers on an equal and fair footing.
Turning finally to territorial application, we have prepared the Bill in a spirit of co-operation between the nations of the United Kingdom. As part of the policy development process, we welcomed policy officials from Wales and Northern Ireland into our team so that they had a critical role in shaping this legislation from the very beginning. As a result, the general scope of the legislation applies to all contracting authorities in England, Wales and Northern Ireland. This will ensure that contracting authorities and suppliers can benefit from the efficiencies of having a broadly consistent regime operating across constituent parts of the UK.
I regret to say that the Scottish Government have opted not to join the UK Government Bill and will retain their own procurement regulations in respect of devolved Scottish authorities. Many in the House will regret that and would no doubt welcome our Scottish friends joining the new regime, which will benefit taxpayers and public services alike across Scotland and the whole of the UK.
There has never been a piece of UK procurement legislation as comprehensive as this. It is a large and technical Bill. I accept that there may be some areas that will merit further consideration, which we will debate in more detail in Committee, but I am confident that these significant reforms open up a new chapter for public procurement in this country and will boost business, spread opportunity and strengthen our Union. I urge all Members of this House to support the Bill.
Before I call the Opposition Front-Bench spokesperson, I wish to draw colleagues’ attention to the fact that, while we are not desperately pushed for time, there is quite a lot of interest in this debate, so my recommendation for Back-Bench speeches is about eight minutes. We also have a maiden speech. If Members follow my recommendation, I will not need to impose a time limit. I call the Deputy Leader of the Opposition.
I absolutely agree with my hon. Friend. As he says, using public money to make, buy and sell more in Britain can also be achieved through our defence spending and by spending on steel and vital infrastructure in the UK. As the party of working people and trade unions, we in Labour know that, when done well, defence procurement strengthens our UK economy and our UK sovereignty, but this Bill fails to direct British defence investment first to British business, with no higher bar set for any decision to buy abroad.
Labour wants to see our equipment designed and built here. That means our national assets, such as the steel industry, our shipyards and our aerospace. That is fundamental for Labour, and we will amend the legislation to secure it. My right hon. Friend the Member for Wentworth and Dearne (John Healey), the shadow Defence Secretary, made it clear that that is a priority for Labour, when he announced at our conference in September that Labour in government would build the navy’s new support ships in Britain.
As my right hon. Friend the Member for Warley (John Spellar) mentioned, the Conservatives announced that the £1.6 billion fleet solid support ship contract would be awarded to Spanish shipbuilders, meaning at least 40% of the value of the work will go abroad. Ministers have confirmed that there is no limit on how many jobs will be created in Spain and that there are no targets for UK steel in the contract. That is frankly a disgrace and a wasted opportunity, when the use of procurement could have been a force for strengthening our UK economy and our security at the same time.
I hope the Minister is listening and will openly work constructively with me to amend the Bill and ensure that British defence investment is directed first to British industry, as well as carrying out a review of the contract for fleet solid support ships.
I hope the right hon. Lady will welcome the fact that, as a result of the FFS award, we will see revitalisation of Harland & Wolff, we will have additional shipyard capacity and we will be rebuilding the British shipyards left in a dreadful state after the last Labour Government. We are seizing opportunities. It is unfortunate that we have to reskill some of our workers and that we have to use opportunities coming from abroad to ensure that we recreate another yard in the UK as well as supporting Appledore, but it is important that we have the right equipment for our armed forces and that defence can seize those opportunities.
I thank the Minister for that contribution, but he should put it in the Bill. He should work with us to ensure that we build in Britain and support British industry and the steel industry. We discussed earlier today the difficulties that UK industries face, and I believe this Bill does not go far enough to support our industries. I want to see that support and I will happily work with the Minister on that.
The Minister has also pledged to use this Bill to make procurement quicker, simpler and more transparent. We need look no further than the pandemic for the clearest example of why we desperately need a more agile and transparent procurement system. The Tory VIP lane exposed the true weakness in the system, enabling the shameful waste of taxpayers’ money and profiteering by unfit and unqualified providers.
As a result, the Government have written off £10 billion of public funds spent on unusable, overpriced and undelivered personal protective equipment. More than £700,000 a day of taxpayers’ cash is currently being used to store unused gloves, goggles and gowns—enough to pay for 75,000 spaces in after-school clubs or 19,000 places in full-time nursery care.
I am still waiting to see whether the Government will respond to our Humble Address and come clean about the murky case of PPE Medpro, which saw £203 million handed to a company with links to a Tory politician. Will the Minister use this opportunity to confirm whether his Government are still procuring PPE or other goods using the emergency rules enacted during the pandemic?
There is no doubt the pandemic presented a unique situation, placing huge strains on our procurement processes but, while all countries faced similar pressures and shortages, many countries conducted their emergency procurement in a far more open, effective and cost-efficient manner. The Government must learn the lessons of those mistakes, and what better opportunity than within this Procurement Bill?
I wait with anticipation to see how the Government might go about shutting down the VIP lanes, tightening the leash on Ministers’ freedom to award contracts directly and hard-wiring transparency into the system. Instead of straining every sinew to root out waste and cronyism, the Minister is pushing a Procurement Bill that would allow the same mess to happen all over again—handing more power over direct awards to Ministers, not less. I am sure the Tory party’s cronies watching these proceedings will be rubbing their hands with glee at a Bill that puts their VIP fast lane on to the British statute book. I am also sure that former Ministers from previous Conservative Governments, who grasped the opportunity to do the right thing and clean up politics after years of sleaze, will be disappointed by this Bill.
Yes. Clause 41 allows Ministers to use urgency as a new justification for granting direct awards—directly allowing the VIP lane yet again. I ask the hon. Gentleman to look at the Bill and at exactly what that would mean for the future of our procurement. I am sure Government Members, including Ministers, will be disgusted at the billions of pounds that we have seen wasted through that process. I am willing to work with the Government to identify and close those loopholes.
If life and public safety are at risk, does the right hon. Lady really think that there should not be an urgent procurement procedure—particularly one approved by this House—in that situation?