Queen’s Speech

Lord Ahmad of Wimbledon Excerpts

Wednesday 25th May 2016 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Transport and Home Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, it is a huge privilege and a pleasure to have the job of closing this debate, which ends the debates in your Lordships’ House on Her Majesty’s gracious Speech. We are on day four of those debates, and today we are just shy of another six hours of debate, with 50 speakers. Looking around the Chamber, I can detect a palpable sense of relief that we are nearing a conclusion. I am reminded of what Churchill once said:

“The head cannot take in more than the seat can endure”.

Perhaps many of us feel that. Although it has been quite a long haul, it has been an absorbing debate, covering five departments. It has been an extensive, thought-provoking and well-informed debate across the Chamber.

I take this opportunity to thank my noble friend Lord O’Neill, who opened the debate so eloquently. I also thank my noble friend Lady Williams for her support from the Front Bench.

It would be remiss of me not to immediately align myself with the many comments that have been made in congratulating the right reverend Prelate the Bishop of Newcastle on her excellent maiden speech. As we all know, delivering a first speech in this House is quite an achievement, but doing so in such a high-profile debate is doubly impressive. We have learned a great deal about the right reverend Prelate, including the fact that she is a marathon runner. I welcome her to her first marathon in your Lordships’ House, although, as she will appreciate, this is one that you have to do sitting down. She has already made a significant contribution to the diversity of the House. As we all know, she is the second woman Church of England Bishop to take a seat in your Lordships’ House. I know I speak for everyone across the Chamber and beyond when I extend the warmest of welcomes to her. I look forward to working with her on a range of issues in the coming months and years.

I also wish to thank all noble Lords who have contributed today, and over the past few days, to the debate on the gracious Speech. We are blessed with the experience and wise words of your Lordships’ House.

I begin by touching on the EU referendum. The noble Baronesses, Lady Bakewell, Lady Bowles and Lady Kramer, the noble Lord, Lord Cotter, and others talked about the EU referendum—in or out. As I have said from the Dispatch Box, the Government’s position is absolutely clear that the United Kingdom’s place in a stronger, safer and more prosperous Europe is within the European Union. It is just shy of a month until the referendum and I hope that the debate that takes place in the next few weeks, irrespective of which side one is on, is based on the facts and not on fear or fiction.

Her Majesty’s gracious Speech was about building a stronger, more resilient, more secure and more modern Britain. I cannot agree with some noble Lords who suggested that this is not happening. We believe that hard work should be rewarded and opportunity enjoyed at every stage of life by all, in a country fit for the future, no matter what challenges we face. If we have learned anything from the past decade, it is that we need to be more responsible during times of plenty, living within our means—a point well made by my noble friend Lord Flight—bearing down on our debts and planning for a surplus so that we can cope during difficult times. Certainly we will take no lessons from the last Labour Government who left what was a pretty big mess before the coalition Government took up the reins.

In the last Parliament, we had to make some tough economic decisions, but they were the right economic decisions. They helped make us one of the fastest-growing major advanced economies in the world. The noble Baroness, Lady Jones, perhaps painted a rather bleak picture. However, new figures published last week show that more people are in work than ever before: 31.5 million people in the United Kingdom have jobs. That means that the employment rate has risen to 74.2%, the highest since records began in 1971. The deficit is down by almost two thirds as a share of GDP and the OBR forecast is that it will be eliminated by 2019-20. However, I accept, as several noble Lords have pointed out, that there is more to do and our work is not yet complete. That is why, with the global economy slowing, it is even more vital that we stick to the long-term strategy behind our economic plan. Let me assure noble Lords that this Government will continue to focus on that as our main objective.

If I may, I will take each area in turn. I say at the outset that if there are questions that remain unanswered by the time I have finished my contribution, I will of course write to noble Lords.

Among others, the noble Baroness, Lady Jones, and the noble Lords, Lord Rana and Lord Smith, as well as my noble friends Lord Flight and Lord Leigh, raised the issue of tax avoidance, et cetera. The Government established the Pensions Regulator as an independent body to provide effective and proportionate regulatory oversight of work-based pension schemes. We have already announced that during this Parliament we will legislate for over 25 further measures on avoidance, evasion and aggressive tax planning that are forecast to raise £16 billion by 2021. We have also given HMRC an extra £800 million to fund additional work to tackle tax evasion and non-compliance by 2020-21. The UK’s percentage tax gap is also one of the lowest in the world. In 2009-10, the tax gap was 7.3%; in the first four years of the last Parliament, it fell to 6.4%.

The City of London came under some scrutiny during various contributions. However, we should be proud of the City of London. It is world-beating, and we need to ensure its competitiveness on the world stage.

We are committed to supporting savers at all stages of their lives. We have already made ISAs more generous and flexible, resulting in more than £20 billion more saved in ISAs in 2014-15 compared with the previous year. But the noble Baroness made some important points about the importance of financial literacy in education. That is certainly something that the Government continue to work on.

The noble and learned Lord, Lord Morris of Aberavon, and the noble Lord, Lord Giddens, raised the issue of steel. It should suffice for me to say that my right honourable friend the Secretary of State for Business, Innovation and Skills, as many know, was in India today. He has been involved in important discussions in this respect. I am sure that the House will be updated in due course.

The noble Lords, Lord McFall and Lord Oates, talked about the banking sector and particularly issues of transparency and accountability. Earlier this month, Parliament passed the Bank of England and Financial Services Act, which will fundamentally reform the financial sector. Notably, as many noble Lords will know, it will strengthen the governance, transparency and accountability of the Bank of England. It will also ensure that senior managers across the financial services industry can be held accountable for failings on their watch through the extension of the senior managers and certification regime.

My noble friend Lord Leigh asked a question about the Transatlantic Trade and Investment Partnership agreement which is currently being negotiated by the EU and the US. The recent amendment tabled on TTIP in the other place to the Motion supporting the Queen’s Speech was prompted by concerns that TTIP is a threat to the National Health Service, but the Government are quite clear that it is not a threat. I assure noble Lords that when it comes to issues around the economy, it remains a key priority for this Government and we aim to continue to build an even stronger, more resilient and prosperous Britain fit for all and fit for the future.

I turn to several cross-departmental themes. We have heard today about the work across five different departments and how this is helping to prepare Britain for the challenges ahead. What this debate has shown is that as we embark on the second year of this Parliament, strong themes connect each department and apply right across government. We will be looking at overhauling planning, giving cities and regions power over their destinies and rebalancing our economic geography, so we can share growth and opportunity across the United Kingdom. I accept the point that has been made that for far too long, the focus has been concentrated in the south-east.

The right reverend Prelate the Bishop of Newcastle, in her maiden speech, along with other noble Lords, including the noble Lords, Lord Shipley and Lord Shutt, also raised the issue of the northern powerhouse. I say to the noble Lord, Lord Shutt, specifically, that much is happening on the northern powerhouse. The Government are investing £20 million a year in the northern powerhouse skills strategy, for example, committing £161 million to accelerate the transformation of the M62, and £75 million to improve other road links across the north. From May 2017, 54% of the population of the north will be covered by elected mayors, backed with over £4 million of new funding. That will give local areas control over key powers including skills, transport and housing. That is perhaps why the shadow Home Secretary wants to put himself forward as the mayor of Manchester. Perhaps he needs to reflect on his own Front Bench responsibilities vis-a-vis the opportunities that are being offered to all from our decision to devolve powers.

There was a question about this Government but let me assure noble Lords that I only need to look to my left and right to see strong powerful advocates for the north. I assure noble Lords that the Government are also well represented across the board in ensuring that we build a stronger economy across the whole of the country. The noble Lord, Lord Shipley, made a point about Gateshead. Of course we will be speaking to Gateshead because it is important that we see collaboration in our regions. The noble Lords, Lord Shutt, Lord Kirkham and Lord Giddens, also raised issues about the Cities and Local Government Devolution Act that made its way through Parliament and will pave the way for places to take greater control and responsibility over policies such as transport, housing, skills, and key public services such as health and social care.

I can also assure noble Lords that in this year’s Budget the Chancellor gave a green light to HS3 between Leeds and Manchester, along with £60 million to develop detailed plans to reduce journey times as well as plans for the rest of the northern powerhouse rail network. Moreover, the Government have committed £150 million to implementing smart and integrated ticketing and £50 million to Transport for the North over the lifetime of this Parliament.

Perhaps I may turn to the DCLG. There are two new Bills which we have talked about today. We have already seen a revolution in neighbourhood planning, with 193 plans approved involving nearly 2,000 groups and covering around 10 million people. The new neighbourhood planning and infrastructure Bill will further empower communities, and let me assure my noble friend Lady Scott of Bybrook that it will give them a stronger voice while getting houses and infrastructure delivered as quickly and efficiently as possible. The Bill will also support our ambition to build 1 million new homes while protecting what we value the most—the green belt.

Several noble Lords, including the noble Baronesses, Lady Bakewell and Lady Thornhill, raised issues about housing and new homes. Reforms have already resulted in the granting of planning permissions for 253,000 homes in the past year. However, this debate has again illustrated how much further we want to go so that everyone who works hard in this country can have a home of their own. The noble Baroness, Lady Thornhill, also asked about affordable social housing. I assure her that we have protected the visibility of homelessness prevention by funding local authorities to receive support totalling £315 million by 2019-20.

I turn to other housing and planning matters. The noble Baroness, Lady Jones, talked about moneys which are being handed back through provisions we are making in business rates revenue which currently stand at around £26 billion. These reforms will mean that all income from local taxes will go on funding local services. The Government remain focused on delivering 1 million new homes of all different types and tenures, making neighbourhood planning an even simpler and more streamlined process. The noble Baroness, Lady Bakewell, talked about housing, planning and flood defences. We have delivered more than 277,000 affordable homes since April 2010 and we have committed to spending £8 billion to deliver 400,000 affordable homes by 2020-21. With regard to flooding raised in the context of pre-commencement planning conditions, the measures would not restrict the ability of local planning authorities to propose conditions that are necessary.

The second new Bill is the local growth and jobs Bill. We have seen a radical effect on local government in this country. It would allow us to fulfil our commitment to devolve spending to the regions so that local government as a sector can retain 100% of local taxes to spend on services by the end of this Parliament. Various other questions were raised by my noble friends Lord Young and Lord Caithness around issues related to homelessness and CPOs. Perhaps I may write to noble Lords in those respects. The noble Baroness, Lady Young, also raised an issue about adult social care funding. The Government are committed to providing support of up to £3.5 billion to ensure that councils are able to support their oldest and most vulnerable residents.

The noble Lord, Lord Shipley, talked about housing inequalities in the proposed Bills and why there can be devolved mayors in some areas but not others. If business rates are not sufficient to fund the local authority in an area, it will be necessary for the Government to adjust for those areas. On his other related questions, I shall of course write to him.

My noble friend Lord Kirkham talked about online companies and business rates, as well as the privatisation of the Land Registry mentioned by the noble Lord, Lord McKenzie. Again, in the interests of time I shall write to both noble Lords and copy in others.

I turn briefly to energy and climate change. We will introduce measures to deliver our manifesto commitment to increase competition and consumer choice in the energy market. The Government want to give consumers more power and choice through faster switching and more protection when things go wrong. Between 2010 and 2015 we reduced the UK’s domestic greenhouse gas emissions by 17%, the biggest reduction in a single Parliament. Moreover in Paris last year, as several noble Lords noted, we secured the first truly global legally binding agreement to tackle climate change. The noble Baroness, Lady Jones, and the noble Lord, Lord Morris, also talked about climate change. It is right to say that Paris was a great success and I pay tribute to my right honourable friend the Secretary of State for Energy and Climate Change, Amber Rudd, in this respect. The UK will provide £5.8 billion in climate finance over the next five years—50% more than the previous spending review—and has a clear plan of carbon budgets to reduce emissions.

The noble Lord, Lord Stunell, and the noble Baroness, Lady Featherstone, also raised a question about action on climate change. It is not true to say that we are not ambitious on climate change. We are phasing out coal, investing in renewable heat technologies, insulating 1 million homes and offering smart meters to every home by 2020. My noble friend Lord Holmes asked about Hinkley Point. It is not often I say this to my noble friend but I disagree with him. Hinkley Point is a vital part of our energy strategy. It will provide reliable energy at affordable costs, powering nearly 6 million homes for 60 years, and creating 25,000 jobs. The noble Lord, Lord Bruce, raised issues about supporting the oil and gas industry. The Government remain committed to supporting that industry, which plays a vital role towards our energy supplies.

Turning briefly to Defra, we are setting out ambitious plans to protect Britain’s environment to boost our farming and food industry. Defra’s 25-year vision is to make this country one of the healthiest and most beautiful places in which to live and raise a family. Our specific commitments include planting 11 million trees, completing a blue-belt network on marine protected areas by 2020, establishing clean air zones for five English cities and an ultra-low emission zone for London. We have seen growth across our economy over the past six years. While rural districts already generate billions of pounds for the UK, we are determined to do more to support jobs and opportunities in the countryside.

The food and the farming industry is an £109 billion industry that provides employment for 3.9 million people. Defra, as I have said, is currently finalising a 25-year plan for Britain’s food and farming industry. The noble Lord, Lord Palmer, and other noble Lords, also raised issues about GM crops, and I will write in that respect and with regard to questions raised by the noble Baronesses, Lady Parminter and Lady Featherstone, on the dairy industry.

The noble Baroness, Lady Parminter, also raised the issue of abstraction reform in the Queen’s Speech. In January 2016, the Government set out their proposed approach to reforming the abstraction system. I can assure the noble Baroness that the Government remain committed to implementing reform in the early 2020s. The noble Baroness and the noble Lord, Lord Trees, talked about the review of the EU birds directive. The UK Government want to ensure that the fitness check of the habitats and wild birds directive is both robust and maintains a momentum, and leads to positive changes for both business and wildlife. There are various other issues relating to Defra which my noble friend Lord Inglewood also raised, and I shall, of course, write in that respect, too.

Turning finally to transport—they say you should leave your own until last—for decades, we have seen Britain slipping down the global infrastructure league table. We have watched as our roads grow more congested, trains become more overcrowded, and our towns choked with traffic. Now we are climbing the infrastructure league table. We are ahead of France, Japan and Germany. Overall transport spending will rise 50% this Parliament. That means we can invest more than £15 billion to maintain and improve our roads, and we are spending more than £38 billion—the greatest expenditure on our railways since the Victorian era.

HS2—I thank the noble Baroness, Lady Kramer, and others for their support—remains at the centre of our transport revolution. It is the biggest infrastructure scheme since the motorways. It will provide extra capacity and the connectivity we need to meet growing demand.

Mention was also made of the infrastructure commission. This is a start for infrastructure that will make Britain one of the world’s leading transport investors. Her Majesty’s gracious Speech also supports legislation to establish the independent National Infrastructure Commission on a statutory basis. Indeed, the commission’s influence is already being felt. I assure noble Lords, including the noble Baroness, Lady Jones, that, following its recommendations, we have already invested £300 million to improve northern transport connectivity. I also assure the noble Lord, Lord Kirkham, and my noble friend Lord Caithness that we have given the green light to HS3 between Leeds and Manchester, and allocated £80 million to help fund the development of Crossrail 2. A point was made about promises not being delivered. Construction of Crossrail 1—or the Elizabeth line, as it will now be called—is more than 70% complete. It is on time and on budget.

Another Bill that will be introduced under transport is, of course, the modern transport Bill, which featured in Her Majesty’s gracious Speech. It is focused on the future—a Bill to pave the way for the technologies and transport of tomorrow. Some specific points were made, which I of course acknowledge—I welcome the constructive comments of the noble Baroness, Lady Ford, in that respect—while others perhaps questioned the merits of a spaceport before other infrastructure projects have taken place. It is important to emphasise that many of these things can run in parallel and that we should not take away from a sector that will be important to the UK’s positioning in the years ahead.

Many comments were made about the Bus Services Bill. I will not dwell too long on that. Suffice to say that I welcome the interaction we have had thus far with noble Lords. Yesterday we held a very constructive meeting. I underline again the Government’s intent to engage fully on ensuring that the Bus Services Bill truly does provide the new powers to local authorities to improve bus services and increase passenger numbers. It is our belief that stronger partnerships will allow authorities to agree a new set of standards for bus services. I look forward to working with all noble Lords, including my noble friend Lord Attlee and the noble Lord, Lord Berkeley, among others, to ensure a positive passage for this Bill through this House. It will receive its Second Reading I believe—I look towards the Chief Whip—on 8 June when we come back from the Recess.

I will give an assurance to noble Lords. Other questions have been raised on transport and other areas that we have covered today, but I feel that my popularity—if, indeed, I have much remaining—may be much lower if I carry on for much longer, not least with my two noble friends who sit behind me. Let me assure all noble Lords that the Government welcome, through the debate that we had today and over the last few days, the contribution of all noble Lords. We accept that it is for the Government to make their case for their Bills in this Chamber and in the other place, but we look forward to a constructive dialogue with all noble Lords across the Chamber to ensure that we move forward on our legislation.

To conclude, let me assure noble Lords that this is a Government who put the national interest before anything else, and nothing is more important to our national interest than a strong, stable and growing economy—one which provides the opportunities that people need to get on and achieve their ambitions. As the right reverend Prelate the Bishop of Portsmouth reminded us in his very thoughtful contribution, mention has been made of other places. Indeed, the Trump factor has been talked about. Do you know what? I am proud of Britain. Notwithstanding the challenges that we have, we provide opportunity for all. It does not matter who you are, where you come from or what background, culture, community or faith you have: you have an opportunity to progress. Those are the kinds of values that this Government wish to protect. I know that that is a sentiment shared across the Chamber.

A strong, stable and growing economy provides the jobs that families need to feel secure and the services that communities and businesses rely on. But what this debate over the past week has shown me clearly is that we are looking forward beyond the economic recovery, making the reforms that will deliver the long-term prosperity that our nation needs. As I said, I look forward to engagement across the House in this respect, and not just in the area of transport—I speak for all my colleagues in government. We look forward to our exchanges in this Chamber and beyond to ensure that, together, we make Britain a stronger, safer, more competitive nation, with the infrastructure to ensure that it remains a leader among the nations of the world.

Motion agreed nemine dissentiente, and the Lord Chamberlain was ordered to present the Address to Her Majesty.

Queen’s Speech

Lord Ahmad of Wimbledon Excerpts

Wednesday 11th June 2014 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

My Lords, I ask all noble Lords who are leaving the Chamber to do so quietly because other noble Lords are waiting to hear from the noble Lord, Lord West.

Anti-social Behaviour, Crime and Policing Bill

Lord Ahmad of Wimbledon Excerpts

Tuesday 12th November 2013 Lords Chamber

[Baroness Hamwee (LD)]

My Lords, the Government have moved forward a great deal, as have the police and the CPS, in understanding that in some cases, particularly in cases of trafficked people, those who may at first be seen as a perpetrator—often of relatively small crimes, but sometimes of bigger ones—are in fact victims and have done what they have done as a result of the way that they have been treated. It seems to me that what the noble Baroness proposes is absolutely in line with that thinking.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I thank the noble Baroness for her comments and join with her and the rest of the House in wishing my noble friend a very happy birthday. My appearance at the Dispatch Box may be one of the best presents that I can give my noble friend, who is doing a gallant job as my Whip today. This may well be part of the Conservative birthday present allocation.

As the noble Baroness, Lady Thornton, has explained, Amendment 1 would require a court making sexual harm prevention orders in relation to under-18s to have regard to,

“their emotional, welfare and behavioural needs, therapeutic or educational support”.

Schedule 5 makes provision to replace the current sexual offences prevention order, foreign travel order and risk of sexual harm order with sexual harm prevention orders and sexual risk orders. The new sexual harm prevention order can be applied where an individual has had a conviction for a specific sexual or violent offence and the court is satisfied that the prohibitions are necessary to protect the public in the UK or children or vulnerable adults abroad from sexual harm. The new sexual risk order can be applied to individuals without a conviction but who have committed an act of a sexual nature and, as a result, the court is satisfied that prohibitions are necessary to protect the public in the UK or children or vulnerable adults abroad from sexual harm.

--- Later in debate ---

[Baroness Hamwee]

I hope that neither this amendment nor the two that I have in the next group will cause the Minister to run to and from the Dispatch Box. I see that he is already confident enough that that will not be the case. Amendment 2 takes us to violent offender orders, and my noble friend will, I hope, already know what my point is.

Clause 106, the new clause to be inserted in the 2008 Act, will allow the Secretary of State by an affirmative order to amend the list of specified offences, either by adding to or subtracting from the list—the specified offences being those which can trigger the order. It seems to me that this is a very wide power. As I said, it would require an affirmative resolution, and the Delegated Powers and Regulatory Reform Committee has not chosen to share any concern about this because it is an affirmative power. However, I think that it would be helpful to understand how the Secretary of State will be expected to go about making such a change. Of course, we always have to remember that, although there may be a benign Secretary of State this month, next month or next year the Secretary of State may be less benign in the eyes of some Members of the House.

In order to probe this, my amendment would provide for consultation, before an order is made, with such persons as the Secretary of State considers appropriate. I cannot believe that any Secretary of State would undertake such an act without consultation, but you never know. It would be good to have confirmation on record as to the means that would be followed. I beg to move.

[Lord Ahmad of Wimbledon]

My Lords, I thank my noble friend for raising this issue. Amendment 2 would, as she has outlined, require the Secretary of State to consult those deemed appropriate prior to making an order to amend the list of specified offences for a violent offender order.

Clause 106 gives the Secretary of State the power to amend the list of specified offences through secondary legislation, subject to the affirmative procedure. Models of offending change over time, and this change will help to ensure that the legislative powers for managing violent offenders can be updated to reflect changes with the appropriate parliamentary oversight.

My noble friend asked specifically about the consultation. I reassure her and the Committee that any changes to the list of specified offences will be considered in close consultation with the police, the National Offender Management Service and others to help to ensure that the police and NOMS are able to manage the risk posed by serious violent offenders. Specialist input will be sought as a matter of course. We do not consider that specific requirement to consult is required on the face of the Bill. I hope that this reassures my noble friend that appropriate consultation will take place and that she will be prepared to withdraw her amendment.

[Baroness Hamwee]

My Lords, that is helpful. It has only just occurred to me that I should have asked whether any change is in mind at the moment. I do not know whether the Minister’s briefing allows him to answer that question.

[Lord Ahmad of Wimbledon]

As I have highlighted, there is NOMS and the police will be involved. Additional experts will be sought as part of that process.

[Baroness Hamwee]

I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Thornton]

I was not completely clear what these amendments concerned when I read them and I assumed they were probing. They are both legitimate questions and I look forward to hearing what the Minister has to say about them.

[Lord Ahmad of Wimbledon]

My Lords, first, I reassure my noble friend that her curiosity is always welcome on these Benches. That is well acknowledged by my noble friend Lord McNally.

Turning to her specific amendments, as she rightly said, we are moving on to the subject of forced marriages. This is an important subject to address. It is unfortunate that we have to address it but it is a reality that exists. As my noble friend said, we will move on to other elements of this. I say from the outset that the Government take this particular issue very seriously. It tragically impacts on people in this country and it needs to be tackled and dealt with. I hope that through our discussions this afternoon we will be able to throw further light on what is a very important matter.

The new offence of the breach of a forced marriage protection order mirrors closely the existing offence of the breach of a non-molestation order in Part 4 of the Family Law Act 1996. This approach of closely following the non-molestation order precedent is the proposal on which the Government consulted in 2012, as noble Lords will know, and with which a large majority of respondents—71%—agreed.

Consistent with the existing offence, new Section 63CA of the Family Law Act provides that, first, a person can be guilty of an offence under Section 63CA only in respect of conduct engaged in at a time when the person was aware of the existence of the order and, secondly, where a person is convicted of a breach of a forced marriage protection order, they cannot be punished subsequently for contempt in relation to subsections (3) and (4).

--- Later in debate ---

[Baroness Hamwee]

My noble friend Lady Berridge is not in her place at the moment, but I know, from a very short conversation I had with her yesterday, that her Amendment 11 is intended to address the second problem to which the noble and learned Baroness referred. When I first read it, I thought it was simply about annulment but she tells me that it is, in fact, about property.

[Lord Ahmad of Wimbledon]

My Lords, I thank the noble Baroness, Lady Thornton, and my noble friend Lady Hussein-Ece for tabling the amendment. The noble and learned Baroness made a point about forced marriages. As I said when we moved on to this part of the Bill, there is evidence to suggest that this is a reality and we have to deal with it. I can assure her that the Government take this very seriously. The issue of unregistered marriages which take place abroad or even on home soil, and which do not provide the protections afforded by the rule of law, is one that must be looked at and the Government are looking at how this can be done. An example of good practice within Muslim communities is where the nikah—one aspect of Islamic marriages—is not performed by the imam until a registration certificate is provided. Many Muslim communities adhere to that principle and we should be encouraging that kind of practice across the board.

I turn to the amendments which concern the publication of guidance for front-line professionals working in this area. We know how important guidance is if the new legislation is to work effectively. I join other noble Lords in saying that this must not just be issued but, as the noble and learned Baroness, Lady Scotland, said, adhered to as well. I align myself with the comments of the noble Baroness, Lady Thornton, on the Forced Marriage Unit and pay tribute to the work done in this field, over many years, by the noble and learned Baroness, Lady Scotland.

First, I will explain the existing statutory provisions in relation to guidance. These are contained in Section 63Q of the Family Law Act 1996, which was inserted into the 1996 Act by the Forced Marriage (Civil Protection) Act 2007. I join noble friends in paying tribute to my noble friend Lord Lester of Herne Hill whose Private Member’s Bill resulted in the 2007 Act and provided a widely used civil remedy for victims and potential victims of forced marriage. Subsection (1) of Section 63Q of the 1996 Act provides that the Secretary of State may, from time to time, prepare and publish guidance to such descriptions of persons as the Secretary of State considers appropriate about, first, the effect of Part 4A of the Family Law Act 1996, and, secondly, about other matters relating to forced marriages.

Clause 107 amends Part 4A to make the breach of a forced marriage protection order a criminal offence, so the preparation of guidance about the new breach offence is already covered by the power to issue guidance provided for in Section 63Q. Clause 108 creates a new offence of forced marriage which is undoubtedly a matter relating to forced marriages, so the preparation of guidance about the offence in Clause 108 is also already covered by Section 63Q.

--- Later in debate ---

[Baroness Thornton]

I am grateful to the Minister for giving this detail, but can he clarify whether the Department for Education regards forced marriage as a safeguarding issue?

[Lord Ahmad of Wimbledon]

Safeguarding and the protection of people in schools or elsewhere are central to every department of government. The Department for Education takes that responsibility very seriously. As I have already said, schools work very closely with the Forced Marriage Unit and children’s services at a local level. It is right that decisions are taken with the full consultation and engagement of schools, and intervention will be available to them if they require it.

Perhaps I may address the other points that were raised. The noble Baroness mentioned legal aid, a subject that has occupied your Lordships’ House at various levels over the past few years, but there was a reality to address. I am conscious that my noble friend Lord McNally is sitting to my left but I will not ask him to take over the Dispatch Box; he has answered many a question on this issue. However, there was a reality and a challenge that needed to be faced. However, I assure the noble Baroness that we have retained legal aid in key areas impacting on women—in particular, in relation to injunctions to protect victims from domestic abuse and in private family law cases in which domestic violence is a feature. Legal aid is also available for victims of forced marriage, who can seek a forced marriage protection order.

Finally, as my noble friend Lady Hamwee pointed out, given that we will come on to discuss elements of a later amendment that relate to forced marriage—a subject raised by the noble and learned Baroness, Lady Butler-Sloss—I hope that, given my explanation, the Committee is assured that there is appropriate provision for guidance and that the Government are fully committed to addressing and tackling this issue. We are looking to update existing guidance to support professionals in the field. This is not just about passing laws but about applying them too. I therefore hope that the noble Baroness will agree to withdraw her amendment.

[Baroness Thornton]

I thank the Minister for that detailed and comprehensive answer. I also thank my noble and learned friend Lady Scotland, the noble and learned Baroness, Lady Butler-Sloss, and other noble Lords who have taken part in this debate, as well as the noble Baroness, Lady Hussein-Ece, for her support.

This has been a useful discussion because this issue is important. I had a look at the guidance, which, as my noble and learned friend Lady Scotland pointed out, is comprehensive and impressive. Were it to be implemented in the way that is intended, it would be extremely effective. It is detailed and tells all public officials how they should deal with this issue and what they should say. The guidance is very impressive but implementation is the point. I also agreed with the noble Lord when he told the House that this is also about cultural change, changes in community and so on.

I might say to the noble and learned Baroness, Lady Butler-Sloss, that I come from a community in Bradford, have links across West Yorkshire and have spoken about this issue to many different groups of women in those areas. I have to say that the enthusiasm for criminalisation, which we will come on to talk about, is not by any means uniform among the groups, including, for example, a group of Somali women in Halifax with whom I had conversations only in the past year. Criminalisation of breaches of the Forced Marriage Act is important, as I think everyone would agree. However, the discussion that we are going to come on to is slightly more nuanced.

I should be grateful if the Minister could answer the question mentioned by his noble friend Lady Hussein-Ece about free schools. He does not need to answer now; a letter would be sufficient. Do the rules relating to this issue apply also to the new free schools? I should like to read what the noble Lord has said about the Department for Education’s role in this and about the safeguarding issue. We may need to have discussions and return to it at a later stage. However, I beg leave to withdraw the amendment.

--- Later in debate ---

[Baroness Thornton]

The noble Baroness makes a very fair point. What we are being presented with here, as the result of the proposal of my noble and learned friend, is a choice about how to deal with the crime of forced marriage: which is the best way to deal with it? At Second Reading I think I indicated to the Minister that the Government would have to make a good case for going down the road they are proposing. They need to have a robust justification for criminalisation. As yet, the Government have not produced the evidence that would be the justification for doing so.

My noble and learned friend has done the Committee a great favour here, because she has said that there are two ways of achieving this. This side of the House is very keen to strengthen the law on forced marriage; indeed, my right honourable friend Yvette Cooper and my honourable friend Gloria De Piero—my new boss, the shadow Equalities Minister—have both said that we are keen to do so.

I would like to ask a couple of questions, because I know that some of us are quite keen to have our lunch. In what way did the Government examine this as an alternative route to the criminalisation that is on the face of the Bill? What was the discussion? Where did it take place? In particular, was this discussed with the CPS and police and what were their views on the most effective route to take? If the Minister thinks it is appropriate, we may need to have further discussion about this.

[Lord Ahmad of Wimbledon]

My Lords, first, I thank all noble Lords who have taken part in a very detailed and expert debate on this issue, as the noble Baroness, Lady Thornton, has already said. On a lighter note, I will address a point made by the noble and learned Baroness, Lady Scotland, who knows I have a deep respect for her professionally and personally. She talked about how parents would react to children who said no to them. I can assure noble Lords that as a father of two myself, that is a regular occurrence in the Ahmad household. A firm line—more from mother than father—normally does the trick. However, we are on a serious subject and it is important that we have had this detailed debate.

I join other noble Lords in thanking the noble and learned Baroness, Lady Scotland, for all the work that she has undertaken both in and out of government to end forced marriage. We have different perspectives on this. Let me also assure the noble Baroness, Lady Hussein-Ece, and the noble Baroness, Lady Uddin, who is not in her place at the moment, that this Government are building on what has been done already. I am sure that I speak for all in the Committee and in your Lordships’ House when I say that we are at one in trying to get the best solution on this most important issue. I am therefore very grateful to the noble and learned Baroness for raising her important points and I welcome the opportunity to explain to the Committee how we have considered these points fully in the development of the Bill and will continue to take them into account as we move forward on the issue of forced marriage.

Let us be absolutely clear: we all agree that forced marriage is a fundamental abuse of human rights and needs to be tackled. We are as one on that. In criminalising forced marriage it is the Government’s intention to prevent this appalling abuse, to protect victims and prosecute perpetrators. By criminalising forced marriage, we are sending a very strong message that this abuse will simply not be tolerated and we are empowering the victims, who are at the centre of what we are proposing, to come forward in the knowledge that this issue is being and will be taken seriously, and perpetrators will be punished.

The proposal is to replace the new offences of forced marriage in England, Wales and Scotland with provisions that would make the same conduct an aggravating factor when sentencing a person found guilty of another offence. I would like to reassure the noble Baroness that the Government have considered making false marriage an aggravating factor for sentencing. However, in England and Wales, the courts already have an overarching guideline on the principles of seriousness which they are required by law to follow. Within this guideline, abuse of power, position, trust and the deliberate targeting of vulnerable victims already apply, as supplemented by a guideline on domestic violence issued by the Sentencing Guidelines Council, which courts are required by law to follow. The guideline uses the current definition of domestic violence which covers forced marriage. It is therefore difficult to see how the amendments of the noble and learned Baroness would make any difference to the way in which the courts currently sentence forced marriage—the behaviours often associated with it are already aggravating factors.

--- Later in debate ---

[Baroness Scotland of Asthal]

My Lords, I hesitate to interrupt the Minister but can he tell me whether Imkaan’s submission was counted as one or 48?

[Lord Ahmad of Wimbledon]

I shall come to that. I will ask the officials to look into that and respond accordingly. Some 297 responses were received in total. People who looked at this issue are on the front line and deal with these issues day to day. Aneeta Prem from Freedom says:

“One of the arguments is that, if you criminalise forced marriage, you will drive it underground. Well, it already is underground. Nobody advertises that they are forcing their son, daughter or anybody else into a marriage. It could not be further underground than it is already. People are using that as an excuse”.

Jasvinder Sanghera from Karma Nirvana writes:

“Criminalising forced marriage will give the police more effective, formal powers, but it would also send out a very strong message that it is child and public protection”.

I recognise that there is a fear that criminalisation could serve as a deterrent to victims. Tragically, as I have already said in a previous debate on this subject, it is already there, it is happening—it is underground, it is tragic, it is real. The question is what we are going to do about it. Forced marriage is already a hidden underground practice. While we take these concerns very seriously, I do not believe the answer is to avoid criminalising forced marriage.

In drafting this Bill, we have sought to provide the best possible protection for victims. That is why we have made provision to establish jurisdiction over new forced marriage offences where they are committed overseas by or against a UK national or where they are committed by or against someone who is habitually resident in England and Wales. The amendments would then result in these provisions not being available for the protection of the victims at the centre.

In answer to the question raised by the noble and learned Baroness, Imkaan’s submission was counted as one response. However, Karma Nirvana submitted 3,000 responses in the same vein in favour of the Government’s proposals and we also considered those 3,000 responses as one.

The question is one which, of course, taxes—

[Baroness Scotland of Asthal]

I am sorry to press the noble Lord further but I want to make it plain to him why I am concerned. I am sure he will want to deal with this. My worry is that the list of 48 covers the national front-line agencies that have been dealing with this issue for a very long time. Women’s Aid operates throughout our country and represents thousands and thousands of women, as do the Jewish societies and Refuge. I estimate that all those organisations counted in the 48 would account for millions of voices as opposed to thousands. I would be very grateful if the noble Lord would look with a greater degree of acuity as to the quality of the list of the 48.

[Lord Ahmad of Wimbledon]

As I always assure the noble and learned Baroness, I listen attentively when she speaks. I take on board what she has said and will write to her about it.

To those who say that this is going underground, and in respect of the cultural pressures that exist, I would say that young women and, indeed, young men may not take the issue forward because of the fear of being ostracised in their community and for fear of shopping their parents or close relatives. I say that with some understanding of the cultural challenges faced by some communities across Britain. Although I do not claim any expertise in the field, I certainly travel quite widely, along with other noble Lords, and I hear about and deal with some of these cases directly.

Irrespective of whether it goes down a criminal or a civil route, the step forward is a difficult one. That is the focus and the emotion that the noble and learned Baroness, Lady Scotland, spoke about with such eloquence. It is the first step. We are leaving the civil route open but, equally, we need to ensure that the deterrent of this being a criminal offence is also available for the victim. I defer to the noble and learned Baroness’s expertise in this field but the difficult part for anyone involved is taking that first step of reporting this kind of coercion or abuse, irrespective of what route is available. That is what we need to overcome. We need, as a responsible Government, to address that issue. As I am sure the noble and learned Baroness will acknowledge, I have listened to her words quite carefully. I reassure noble Lords that, in drafting the Bill, we have sought to provide the best possible protection for victims. That is why we have made provision to establish jurisdiction over the new forced marriage offences, whether they are committed overseas or against a UK national.

The noble and learned Baroness raised several other questions, which I shall address briefly. In respect of the emotional element in decision-making, Clause 108(1)(a) covers any other form of coercion, which includes emotional coercion or emotional blackmail. That forms part of the mischief that we are seeking to address via criminalisation. However, in practice, the CPS will prosecute in cases only where it is in the public interest to do so. That will also involve an analysis of all the facts of the case, including the gravity of the offending behaviour and the harm caused. The definition of force in the Forced Marriage (Civil Protection) Act 2007 already addresses coercion by other psychological means, which could encompass emotional coercion and emotional blackmail. This is not a new proposition but something that Parliament has already endorsed. The inclusion of emotional coercion is also consistent with the non-statutory cross-government definition of domestic violence.

The CPS has existing guidelines on the selection of charges in cases where a number of different offences have potentially been committed, and our expectation is that the CPS will apply that existing guidance. We will, of course, consider carefully with the CPS whether any additional bespoke guidance is required in this context to deal with the new forced marriage offence.

The noble Baroness, Lady Thornton, asked whom we discussed this with outside of the general consultation that I and the noble and learned Baroness, Lady Scotland, have referred to. Discussions were held with ACPO, the CPS and the Attorney-General’s Office about how this offence could work in practical terms. The Government considered the option of making it an aggravating factor, but we took the view that this was already adequately covered by the guidelines issued by the Sentencing Council, to which I have already referred.

The noble and learned Baroness’s amendments to Clause 109 would make identical provision for Scotland. This is a devolved matter and Clause 109 has been included in the Bill at the request of the Scottish Government. I cannot, as noble Lords will appreciate, comment on behalf of the Scottish Government. The noble and learned Baroness is, of course, also aware of the convention that the UK Parliament does not legislate on devolved matters in Scotland without the consent of the Scottish Parliament.

As I said in responding to the amendments tabled by my noble friend Lady Hamwee, to complement the legislation, the Government’s Forced Marriage Unit is rolling out a nationwide engagement programme to support practitioners such as those that the noble and learned Baroness highlighted in tackling forced marriage. The unit also continues to give direct assistance to victims and potential victims. Last year, for example, the unit provided advice or related support in almost 1,500 possible forced marriage cases.

My noble friend Lord Hussain talked about education and about Pakistani dramas and Bollywood. I certainly did not expect that element but nothing surprises me in your Lordships’ House. He is right, but I would ask how many of these families watch these films and dramas, watch this man fall in love with a woman who is the wrong caste or even religion and say, “Oh, it’s tragic isn’t it?”. Yet what do they practise themselves? Why do they not have the same emotions as when they watch what are often fictional accounts? That is the education that needs to be given to the community—to realise that, whether this is about Islam, Hinduism, Buddhism, Christianity or humanism, what should prevail above all else is the rule of law, which prohibits coercion in marriage. That is what the Government are seeking to address through their proposals.

I pay full respect to the experience of the noble and learned Baroness and, once again, acknowledge the hard work that she has undoubtedly, historically and over many years, put into the area of forced marriage. I know that she will continue to share her expertise in the field, and I hope that, based on the explanations I have given, she will be minded to withdraw her amendment.

Economic Prosperity and Employment

Lord Ahmad of Wimbledon Excerpts

Thursday 18th July 2013 Lords Chamber

[Lord Kirkwood of Kirkhope]

My Lords, it is a pleasure to follow the noble Lord, Lord Mitchell, in his interesting and powerful speech, with which I entirely agreed. This is an important and timely debate. The thing that I am picking up from the debate—I hope that the Government are picking it up —is that things are really seriously changing, not just economically but technologically, in a way that is often hard to grasp. Governments need to make plans on the basis of a much longer-term perspective to try to accommodate some of these changes. We have heard that from the noble Lord, Lord Monks, with whom I agreed, the noble Lord, Lord Skidelsky, with whom I agreed as well, and the noble Lord, Lord Giddens. All of them made important analytical speeches and all were looking forward and trying to understand the significance of the extent of the change that we have seen. I certainly think that investment banks and digital revolutions are part of that consideration and analysis.

The role of Government is twofold. First, we need to start thinking about managing expectations better in terms of what the future is realistically likely to hold. As part of that discussion, we need to consider how sustainable growth will look and can be provided in the middle to longer-term future. I have real fears that the rather loose assumption that we are going back to the trend levels of growth that we have known in the past is likely to be wrong. The Government need to be brave enough, if they believe that the analysis justifies it, to start discussing these issues in a grown-up way with the public and shaping people’s expectations about wages, growth and living standards over the middle to longer term. That is a very important role for the Government at the moment because of the exponential levels of change that we may be witnessing.

Secondly, the Government need to plan a little more coherently and systematically what the future policy framework is. We had some powerful speeches from colleagues earlier about the need for continuity. Two or three colleagues mentioned the importance to SMEs of continuity. I agree with that. As a foot soldier in the modern coalition Government, I struggle sometimes to understand what the growth policy is. I understand what the austerity policy is because that hits me in the face every time I turn a political corner, but I struggle to understand exactly where the five to 10 year programme is heading. I am a little surprised that the important work of the noble Lord, Lord Heseltine, No Stone Unturned, has not been referred to more often today. I wonder whether the Government are founding their thinking on that. Many of the recommendations of the noble Lord, Lord Heseltine, are correct and should be pursued.

How are all of these major programmes—whether it is No Stone Unturned, the European structural funds, apprenticeships schemes or the Work Programme—melded into a vision that the coalition Government can put forward with confidence at the next election in answer to the middle and long-term challenges? That vision is absent at the moment. It is going to be quite difficult because the election is looming and that makes it harder for any sensible policy-making to be worked through and promoted.

The other thing is that in the spin and the stunts that are used to announce important policies—we had an announcement this week about the pupil premium—the policy gets lost in a lot of noise. The Government should really be much clearer in what they are saying. They need more focus, they need more persistence, and they need to concentrate more on delivery than on making public announcements. They need to separate the signal from the noise. I looked at the Financial Sustainability Report, which was published yesterday. Its long-term views about demographic assumptions, climate change costs and a decline in North Sea oil revenues compound my fear that there are some real problems that we are not yet properly addressing.

Finally, I turn to some issues which are second order but are very important to me. They come into the category of inequality to which the noble Lord, Lord Skidelsky, rightly referred. The Government need seriously to address long-term and youth unemployment. Incidentally, if people are trying to address the housing benefit budget in a meaningful way, we need to have some plans for development of social sector housing units over the next five to 10 years. There is a huge agenda that the Government need to be addressing in the middle to longer term. If we do not do that, in the near future we shall find ourselves during an election with only half a story to tell. That would not be in our interests as a coalition Government and it would not be in the long-term interests of the country.

[Lord Ahmad of Wimbledon]

Before we continue, I remind noble Lords that this is a time-limited debate. When the clock strikes five, noble Lords should be looking to make their concluding remarks.

European Union Membership (Economic Implications) Bill [HL]

Lord Ahmad of Wimbledon Excerpts

Friday 25th November 2011 Lords Chamber

[Lord Ahmad of Wimbledon]

My Lords, yet again the question of Europe is one which we find dominating headlines. Indeed, it is impacting daily lives and for this reason and others, I join in the chorus of approval and tributes being paid to the noble Lord, Lord Pearson of Rannoch, today. His timing of this debate is quite impeccable.

“What we should grasp, however, from the lessons of European history is that, first, there is nothing necessarily benevolent about programmes of European integration; second, the desire to achieve grand utopian plans often poses a grave threat to freedom; and third, European unity has been tried before, and the outcome was far from happy”.

Those are the words of my noble friend Lady Thatcher.

We see the currency born of the European ideal today fighting for its mere survival and economies of Europe that led the world as proud nation states looking across the world, perhaps, to emerging and developing nations with envy at their growth rates and investment levels. Yet as turbulence grips Europe, Britain, as ever a proud nation in Europe, continues to play a pivotal role in seeking to provide assistance, guidance and, most importantly, leadership and financial contribution where and when it can. This is notwithstanding the backdrop of our own economic challenges on the domestic front. We are supporting neighbouring European economies to ensure our treaty commitments.

Therefore I find recent reports of warnings being issued by the President of the European Commission to my right honourable friend the Prime Minister to put the European ideal first and not to think of the UK, particularly with reference to the benefits of the vibrant City of London, quite frankly a ludicrous proposition. Indeed, I should perhaps declare an interest as someone who currently serves in the City of London. Does the President of the European Commission really believe that the argument that we shall be left behind will resonate with our Government and, more importantly, with the British people? It will not.

Economic and monetary union and the birth of the euro brought with them similar cries of: “a two-track Europe”; “Britain will no longer have influence”, which many noble Lords have said; and “Frankfurt will become the economic capital of Europe”. Has any of these propositions come true? No. We were right not to join the euro then, and we are right today to defend the City of London against prohibitive taxes for the benefit not only of the City and what it brings to Britain but of Europe as a whole.

Let me recount the time of the launch of the single currency. I remember talking about this. One concept that was often raised was how we remember who is going in and who is going out. If you throw Greece into the equation, a baffling acronym came about: PIGS. I say no more. Price stability was one qualifying criterion. Others were successful membership of the ERM, interest rate convergence and fiscal prudence—and let us look towards prudence. One of the criteria was a 60 per cent ratio of government debt to GDP. Was this strictly met? You need only look at Belgium at 122 per cent and Italy at 121 per cent. Those criteria were not strictly adhered to.

Then there was the cost of the introduction. One of the elements was fiscal policy spillovers. A European-wide interest rate would mean that EU countries would have to increase their intra-EU transfer payments to help others. How Greece would have loved no competitive devaluations in the current climate. These are no longer downside risks or doomsday scenarios; they are a living reality facing the single currency today. Monetary union without fiscal union was never going to be a sustainable proposition. That has proved correct. There are many in business and in public life now who rather than lecture the country should eat a bit of humble pie.

I turn briefly to the EU’s proposed tax on the City of London. According to some reports it might mean that 80 per cent of the revenue would come from London. The director-general of the CBI said that it is,

“a Brussels revenue-raising exercise, and one that will hit London disproportionately hard”.

The City of London is our jewel in the crown. It has been a big asset for the UK and, indeed, for Europe. If we are asked to be good Europeans, should good European not defend what is good about Europe? The City of London is good about Europe. However, rather than be proud Europeans and proud of this European centre, officials in Brussels are seeking to price the City of London out of the market. It is therefore right that voices are raised and resistance is shown at these blatant attempts to target the heart of our economy.

We are a proud nation with a rich history and a country which has demonstrated on the world stage that it fights for freedom, democracy and the promotion of strong trade. Standing up for Britain does not mean that we are against Europe. The countries of Europe remain among our largest trading partners. However, it is right that we should stand against giving further powers away. I was therefore pleased to support the European Union Bill which passed through your Lordships' House earlier this year, because it called time on the juggernaut of European integration. We need to look at the virtues of a proposal before we forgo any national interests for some perceived general good as conceived by a Brussels bureaucrat. Indeed we need to repatriate powers as the Government are seeking to do. We have also found, perhaps, an unlikely ally in Chancellor Merkel, who only yesterday said that the new Commission proposals on eurozone countries submitting their budgets for approval to Brussels to solve the euro crisis are “extraordinarily inappropriate”.

In conclusion, there should be a simple message to those who seek to move towards greater European political and economic union: you integrate further if you want to; our country is not for further integration. However, that should not mean that we are against Europe. It should be the Government’s role to establish perhaps a third way in Europe where membership of the EU is not a journey to a federalist Europe, but one which seeks to establish the role of nation states in Europe where we stand and play our part as an independent country in Europe, not as a region of an integrated union.

Economy: Government Policies

Lord Ahmad of Wimbledon Excerpts

Thursday 24th March 2011 Lords Chamber

[Lord Ahmad of Wimbledon]

My Lords, I join other noble Lords in thanking the noble Lord, Lord Lawson of Blaby, for bringing forward this debate at an important time for our country. I, too, wish to pay tribute to the maiden speeches of the noble Baroness, Lady Stedman-Scott, and the noble Lord, Lord Hussain. One touched on the issue of youth engagement and youth employment, and the other on community cohesion and fighting extremism—issues which, I can assure both noble Lords, resonate with your Lordships’ House.

The Budget just delivered in the other place by my right honourable friend the Chancellor was about sustaining confidence in the markets; it was about demonstrating a willingness to continue to make difficult decisions to tackle the burden of debt; it was about implementing measures which are not governed by short-term headlines but aimed at long-term growth. I believe it achieves all three. Indeed, the influential ITEM Club has already alluded to the fact that the Government have achieved the aims of both controlling expenditure and increasing revenues.

It was interesting to follow a former City Minister after hearing him respond, in part, to my noble friend Lord Risby, who asked, “What is the alternative?”. I noted that he said that the Conservative Party and the coalition Government believe in small government. We do. What is the alternative—big government? We have had enough of that already.

At the height of this global economic downturn, I wish to focus on the City of London and its crucial role. Financial services account for a 10 per cent share of UK GDP—more than in many other major economies. On employment, UK financial services across the country employ more than 1 million people, with 3,000 people employed in financial services in more than 62 constituencies in the UK. Financial services generated a trade surplus of more than £36 billion in 2010, and the tax take of UK financial services amounted to £53.4 billion in the year 2009-10, accounting for approximately 11 per cent of the UK tax receipt. As regards UK GDP, we can see that the contribution that the UK makes with its financial services sector is greater than that of both France and Germany. At a time when the coalition Government are rightly making difficult decisions on expenditure, with the vital contribution made by the financial services industry to the Exchequer, even as the effects of the crisis wade across institutions in the City, the industry has demonstrated resilience in these challenging global economic conditions.

We need to ensure as a Government that we work with firms operating across the financial and professional services to see that the UK remains as a good place in which to invest and work towards creating a sounder environment for growth. Indeed, I welcome recent statements from the City in the preamble to the Budget about firms that have said that they would stay the course and remain in London. They recognise that steps were necessary in regulating certain markets and they see the need to address wider economic conditions. That means that they need to be part of the solution. We should move forward and stop blaming banks. The coalition does not blame banks, as was said earlier by noble Lords opposite, although we do hold the previous Government to account. But it is not about blaming banks; it is about working with banks.

Indeed, I am reminded of my early years. The noble Lord, Lord Hodgson, talked about credit scoring now becoming the core activity for banks—and banks need to look at that again. I am reminded of my own career. When I started and I walked into my first job as a lending officer within a bank, I was told, “Tariq, what you need to apply is Campari and ice”. As a teetotaller and a young trainee, I thought that was a rather strange acronym to put forward. It was a matter of looking at each small business, its character and ability and means to pay. We need to get banks focused on that style of lending. Therefore it is right that the current Government are working with the banks to ensure that we create the right conditions for small businesses and large corporates to prosper. We can take the example of Goldman Sachs and the programme for 10,000 small businesses, with free business and education courses. SMEs are reliant on bank lending, yet debt capital markets are another option. We need to work hard in ensuring that we remove some of the hurdles and barriers to diversify the financing sources for SMEs.

We are seeing new actions announced in the Budget, with reforms to the enterprise initiative scheme; raising income tax relief to 30 per cent from April; and the big society bank, dealing with the need to increase civil organisations’ financing through social finance intermediaries. On bank financing, there will be £190 billion in new credit for businesses and £76 billion to be allocated to the SMEs. We heard the noble Lord, Lord Sugar, allude earlier to those SMEs that have no collateral and those businesses that have no track record. The review and the extension of the enterprise finance guarantee in new lending, which should raise more than £2 billion in this Parliament, is also to be welcomed. Then there is the business growth fund for established SMEs with high growth potential. The UK banks have increased their contribution, bringing the total size of the fund to £2.5 billion. That is due for launch in May 2011. Then we will be working with the BBA to restore bank business relationships, which may have faltered, and to improve standards with lending and business mentoring. That demonstrates the willingness of this coalition Government to work with banks to deliver the solutions our economy and our country needs.

It is my belief that this Budget tackles the debt legacy left by the Labour Government. We have heard a string of Labour spokesmen offering us advice, but as my noble friend Lord Risby said, the only advice they can offer is that we are doing all of this too quickly. No alternative is offered. The approach of the coalition Government, with George Osborne as Chancellor, does not carry the support of the Benches opposite but it carries the support of institutions such as the IMF, the OECD and the IFS. It is a Budget of growth, focused on the long term and on the recovery of our economy and our country.