Financial Services Bill

Lord Bishop of St Albans Excerpts

2nd reading & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords
Thursday 28th January 2021 Lords Chamber

[The Lord Bishop of St Albans]

My Lords, it is right to underline the importance of the financial services sector in our country and the huge contribution it makes. There are many laudable things in this Bill: the strengthening of money laundering regulations; encouraging saving; and the creation of parity between white collar crimes, such as market manipulation, and general fraud by extending the maximum sentence.

I was disappointed, however, to hear that the Commons amendment exploring the whole issue of ethical investment with reference to genocide did not make it into the Bill. I understand the Government’s reservation—they do not want to politicise the FCA. Nevertheless, I hope that “global Britain”, as laid out by the intentions of the Bill, will also be very much “ethical Britain” as we place ourselves in the world under the new freedoms that we have. I also note, with other noble Lords, the concern that there seems to be so little clarity on the question of parliamentary scrutiny. I am sure we will return to this as the Bill passes through your Lordships’ House. Of course, fundamental to this whole future is that the FCA is adequately resourced to fulfil its task.

I touch on just one major issue, which takes up a major part of the Bill: the Gibraltar authorisation regime. The issue of Gibraltar’s lower corporation tax rate of 10% was raised during the Commons Report stage as a significant issue, and it is one that warrants raising again. During his evidence session, the Minister said that corporation tax rate was not a factor in relocation to Gibraltar. While I recognise that relocation can be costly and that operating in London has many benefits not offered by Gibraltar, nevertheless there are significant tax advantages.

This has become all too clear in another area of work that I have raised repeatedly in your Lordships’ House—the issue of the tax avoidance of many companies, including gambling firms, which are a particular focus I have had. For example, in 2019, the Daily Mail revealed that 32Red, based in Gibraltar, paid just £812,000 in corporation tax over a 10-year period—an effective UK tax rate of 3%. William Hill, with its six subsidiaries in Gibraltar, is expected to pay 12% in corporation tax in 2020. Ladbrokes Coral is not required to disclose its tax rate, but one of its two licences to operate in the UK is registered in Gibraltar. While these relate particularly to a very focused area of my interests, of course this mechanism applies equally to financial firms.

These arrangements predate our departure from the EU and, given the likelihood that Gibraltar continues to be used in this matter, I am not placing the blame on this new Financial Services Bill. However, during the progress of this Bill, there will be an opportunity to examine again what the appropriate rules would be, particularly within the financial sector, to prevent Gibraltar being simply a place where firms and companies are reducing their tax bill. Will the UK Government commit to publishing an annual report assessing the consequences of the Gibraltar authorisation regime on tax receipts from the financial industry, as well as outlining how they intend to work with the Gibraltarian authorities to ensure there is a fair tax settlement for both territories?

Ministerial Code

Lord Bishop of St Albans Excerpts

Tuesday 24th November 2020 Lords Chamber

[Lord True (Con)]

No, my Lords, I do not agree, because I do not consider that that generalised charge against people in public service is justified. I find high standards of probity among the colleagues I work with and among the people I have had the honour of opposing in the past when they were in government.

[The Lord Bishop of St Albans]

I am proud to be part of a House that places such emphasis on standards and codes of conduct when working with civil servants and staff, and I take this opportunity to thank those who serve us so brilliantly in every aspect of this House. The Civil Service needs to attract the brightest and best, and at the moment it is in competition with many other organisations which, equally, are trying to attract young people. If it is widely perceived that they will not be valued and respected, will that not, in the long run, affect recruitment to the Civil Service?

[Lord True (Con)]

My Lords, I am grateful for the right reverend Prelate’s first comment. It is not the case that this Government do not value civil servants. Indeed, the joint letter sent out by the Prime Minister and the Cabinet Secretary yesterday reaffirmed their admiration for the work of civil servants.

Covid-19 Lockdown: Economic Support

Lord Bishop of St Albans Excerpts

Wednesday 4th November 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

I share my noble friend’s concern about small businesses: it is absolutely ghastly for all these people. I want to explain to him that all eligible businesses in retail, hospitality and leisure will pay no business rates in England for 12 months from 1 April 2020 until March next year. This support is worth almost £10 billion to business, and an estimated 735,000 retail, hospitality and leisure properties will be included in this over that period. There is no rateable value threshold on the support; businesses large and small can benefit. In addition to the business rates holiday, the Government have announced further measures in response to the second lockdown: as I mentioned to the noble Baroness a moment ago, cash grants of up to £3,000 a month, and the extension of the Coronavirus Job Retention Scheme until 2 December.

[The Lord Bishop of St Albans [V]]

My Lords, there has been a particular problem in the rental market, whereby renters and landlords have suffered as a result of these latest measures. Given the temporary protection from eviction for those living in tier 2 and 3 areas, could the Government confirm whether an eviction ban will now be extended across the country and whether they will now develop a strategy to help tackle arrears brought on by Covid to avoid a tragic spike in homelessness?

[Lord Agnew of Oulton (Con)]

My Lords, we will keep all these issues under review. As the right reverend Prelate will probably be aware, we have extended payment holidays on mortgages and certain consumer credit products to take pressure off individuals. In relation to his rental suggestions, we will keep them under review and will keep the House notified.

EU Exit: End of Transition Period

Lord Bishop of St Albans Excerpts

Wednesday 15th July 2020 Lords Chamber

[The Lord Bishop of St Albans [V]]

My Lords, most larger businesses will have the personnel and resources to advise and steer them through the transition period. However, some SMEs are very worried about how they will navigate complex regulations with little support. One feature of the lockdown is that it has often been impossible to speak to an adviser on a helpline and people have been directed to websites that are difficult to use. Can the Minister assure the House that there will be sufficient resources, including helplines staffed by knowledgeable people who can help SMEs as they go through this process?

[Lord True]

My Lords, unfortunately, I could not hear absolutely clearly. I will say, first, that the advertising campaign will certainly be directed to both businesses and individuals. The right reverend Prelate makes the wise point that specialist advisers will be available to help; it will not be simply a question of looking at a website, although I think the government website is to be commended.

Employee Shareholding and Participation in Corporate Governance

Lord Bishop of St Albans Excerpts

Thursday 11th October 2018 Lords Chamber

[The Lord Bishop of St Albans]

I thank the noble Lord, Lord Haskel, for securing this debate. With such limited time, I shall make just a few comments about the purposes of business in general and then make one or two observations about the very specific themes raised in the debate.

All too often, business and commerce are viewed as though their main aim was simply to make the most money possible. This rather reductionist view of business fails to take into account wider questions raised in Christian theology, as well as by many others, such as how everyone can contribute to the common good, issues of justice and fairness, and particularly the sort of values we wish to celebrate and promote as a society. The best businesses, I believe, are those that balance the need to make money with a high priority on the flourishing and thriving of their workforce and a concern for human dignity.

Unfortunately, debates such as this can all too easily focus on differences between left and right. Looking at who is speaking in this debate and who is not, in terms of political parties it seems we have something of an echo of that here, sadly. My most reverend friend the Archbishop of Canterbury wrote recently in a much-publicised book:

“God is neither left-wing nor right-wing but stands above all such forms of political or economic ideology. God relates to human beings, loves the poor, the widow and the orphan, endows the earth richly with goods and fruitfulness enough to satisfy every human need, and judges our selfishness and self-seeking”.


In Christian theology, work is a positive activity and not something to be scorned or avoided. That is why the concept behind universal credit, for example, has been supported by the Church: making work pay is a good thing, even if we have serious concerns about the practicalities of its implementation. Nevertheless, the most reverend Primate was right to observe that we have a crisis of capitalism. Anger at our economic system, brought into sharp relief by the 10th anniversary of the financial crash, should be at the forefront of our minds. True dignity at work begins with a fair workplace environment, where employees have a meaningful stake in the companies they work for and where all share an interest in eliminating overwork and underpayment. To do this we need a new social contract to address low pay and poor working conditions.

Defenders of the gig economy will point to how new freedoms and flexibilities in the labour market enable many more people to fit work around the circumstances of their lives, and that is obviously good in this form of self-employment for some people in the workforce. At the same time, we risk normalising a level of insecurity in our workplace unseen since the 1930s. It will therefore not surprise noble Lords that I support the IPPR commission report’s proposals to have more workers on boards. Surely, all the evidence points to the fact that allowing employees a part to play in corporate governance can be a very positive step. I support moves towards increased transparency, towards greater gender balance and increased employee shareholding, especially if it is designed so that people are holding their shares for a significant period, for long-term investment in the company in which they work.

Giving employees an opportunity to see the fruits of their labour, in the form of shares, must surely be considered as soon as possible by this Government. While neither employee shareholding nor workers on boards are silver bullets, they are, I believe, steps in the right direction. However, without a new social contract they are unlikely to deliver the change we so urgently need.

Working-age Benefits

Lord Bishop of St Albans Excerpts

Thursday 16th November 2017 Lords Chamber

Asked by

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government what is their assessment of the impact of rising inflation on families affected by the freeze of working age benefits.

[The Lord Bishop of St Albans]

My Lords, we are at risk of failing a substantial number of children and some of the most needy people of this country. If a society is to be judged by how it treats its most vulnerable, unless we are prepared to put aside party differences and make common purpose in addressing inequalities in our system of social security we will surely be found wanting. So what are the principles we should use when assessing the design and implementation of benefits policy, particularly the freeze on working-age benefits? We on these Benches are not ignorant of the Government’s substantial financial challenge. An ageing population, a sizeable deficit, and the need for additional expenditure on the NHS and on our education system put limits on the Chancellor’s options.

Understanding these challenges, the Church of England’s General Synod in a debate in 2009 asked that policies intended to reduce the deficit be judged against three principles: fairness, generosity and sustainability. The first of those principles, fairness, I know is important to many Members of this House, although we might have different ideas about what fairness is. Nevertheless, a fair benefits system needs to be transparent and consistent. On this point, I simply note that treating those in receipt of benefits fairly will require recognition of their individual dignity and sensitivity to individual circumstances.

Secondly, the notion of generosity in welfare provision is contentious. As I said in a debate earlier this week, this point is illustrated in the Bible where the community is called to ensure the welfare of the widow, the orphan and the stranger, although, as St Paul so succinctly put it, a person who is not prepared to work should not expect to eat. It was Archbishop William Temple who popularised the phrase “the welfare state”, and it is right to want fellow citizens to thrive and flourish. As such, the welfare system should be an instrument that facilitates mutual responsibility, especially for those who for reasons beyond their control do not have enough to survive on. To that end, profitable companies and the wealthiest members of society should seek to fulfil rather than avoid tax obligations, even if their activity meets the letter of the law. After all, the reason why so many international companies do so well here in the UK is that they benefit from an educated, healthy workforce and a world-class social infrastructure. In return, they need to make a fair contribution towards the funding of these things.

Thirdly, the welfare state should be sustainable. Incentivised reliance on the welfare system inhibits individuals’ ability to flourish, yet a society that allows large numbers of its citizens to live in poverty risks social disorder and disintegration.

All this brings me on to the current welfare system. The four-year freeze in most working-age benefits was announced by the then Chancellor in the 2015 Budget to last from 2016-17 to 2019-20. The stated intention of the policy at the time was to correct perceived policy issues: first, an alleged unfairness that benefits were rising at a faster rate than wages and, secondly, to make sure that people were better off in work than out of it. Despite this, in part owing to stagnating wages and rising prices, we find that benefit cuts are making families, even those in work, worse off. According to the IFS, absolute child poverty is projected to rise by four percentage points between 2015-16 and 2021-22 and relative poverty by around seven percentage points, primarily due to the impact of the continued freeze of benefits. A rise in absolute child poverty in this country is unprecedented, and I must say that it is unacceptable. That the burden of the freeze weighs disproportionately on children is revealed when it is estimated that in the same timeframe pensioners will see a 2% decrease in absolute poverty and their relative poverty will remain unchanged. This is fundamentally an unfair burden for children to bear.

At the same time, the impact of the freeze is intensified by rising inflation. Yesterday the ONS announced the most recent inflation statistics, reporting that food and non-alcoholic drink prices last month were 4% higher than in October last year. That is the fastest rate of growth since September 2013. Gas and electricity prices are also up by 6%, hitting the poorest families hardest. The cost of essentials has been rising faster than inflation since 2006. While benefits and tax credits will have risen by only 3% over the seven-year period between 2012 and 2019, prices are expected to rise by at least 13% on average over the same period. Families relying on benefits to supplement their income are simply unable to keep up with the rising cost of living.

The effects of this policy are felt intensely by the families affected. Its impact is huge, equivalent to taking £7 billion every year from family budgets, yet this is easily overlooked because its effect is incremental and works not by reducing the amount of benefits or tax credits that people receive but by reducing what they can buy. Families may be receiving all the benefits they are normally entitled to but are able to stretch them less and less far. Moreover, the majority of affected families are working families, which undermines the Government’s objective of making work pay. The National Audit Office reported in September this year that the freeze in local housing allowance rates has contributed to private rental properties becoming less and less affordable for families, which in turn is likely to be contributing to rising homelessness. Shelter estimates that the freeze on local housing allowance puts more than 1 million households at risk of homelessness by 2020. Since 2006, the maximum award for childcare costs that can be claimed under tax credits has been fixed. This effectively amounts to a decade-long freeze in the refundable element of childcare costs for low-income families. As the cost of essentials rises and families have less money for childcare and housing, the benefits freeze actually serves as a barrier to work rather than enabling it. The status quo is unsustainable.

There is room for reassessment. The benefits freeze will actually save considerably more than originally anticipated due to rising inflation. Ending the freeze a year early or uprating benefits by 1% a year for the next two years could still achieve the same overall savings originally planned. I hope that all parties will commit to making this change. Raising the personal tax allowance is not an effective solution because most of the benefits go to better-off households. Only £1 in every £6 spent on raising the personal tax allowance will go to households in the bottom half of the income distribution, with a negligible impact on poverty.

On Tuesday, the Governor of the Bank of England, Mark Carney, warned that the lack of a Brexit deal could see inflation rise further, putting even greater pressure on poorer people. A fundamental reconsideration of the benefits freeze, in light of the principles that should guide welfare policy, is urgently needed. I hope that the Minister will not only assure the House that Her Majesty’s Government are listening but will respond by committing Her Majesty’s Government to reconsider the freeze, which is already causing so much misery.

Building More Homes (Economic Affairs Committee Report)

Lord Bishop of St Albans Excerpts

Thursday 2nd March 2017 Lords Chamber

[The Lord Bishop of St Albans]

My Lords, my thanks go to the noble Lord, Lord Hollick, for tabling this Motion and giving us the opportunity to discuss the Building More Homes report. I am grateful also for the contributions from a number of members of the Economic Affairs Committee, which have been both helpful and enlightening.

My right reverend friend the Bishop of Newcastle has already set out some of the concerns from these Benches but I want to echo her comments, particularly the concerns she raised about the supply of social housing, and the key issue of whether we are building communities or just bricks and mortar. That is a fundamental issue for us and we need to remember some of the hard-learned lessons of the past. Like some others in your Lordships’ House, I am particularly keen to see the Government lift the restrictions on local authorities’ ability to borrow to invest in new social housing stock. I hope that the Minister will be pursuing this issue with the Government.

The Building More Homes report was prescient in a number of ways and, as has already been pointed out by a number of Members of your Lordships’ House, including the noble Lord, Lord Forsyth, it is to the Government’s credit that many of the points raised by the Economic Affairs Committee have been taken on board in the recent White Paper. I am particularly glad to see that concerns about starter homes, which were expressed in the report and here in this House, have to some extent been calmed. The Government’s decision not to implement the requirement for starter homes at this time will help local authorities sustain a mix of affordable housing tenures, while the decision to extend restrictions on the onward sale of starter homes to 15 years will help protect starter home affordability.

I want to say a few things about rural housing. Housing supply is one of the greatest challenges facing rural communities, and here I must declare an interest as president of the Rural Coalition. Rural affordable housing supply is critically low, while much of the existing housing stock tends to be unaffordable to the vast majority of local people. One of the continuing problems is that many new properties built in the countryside are often unsuited to the needs of rural communities. There are simply too many large, expensive houses being built that do not reflect the needs of those local rural communities. We are not good at building three-bedroom family homes at a price that means that people such as teachers, nurses and other skilled workers can stay in rural communities as their families grow up. This is a fundamental issue of rural sustainability: how we can ensure that our rural communities are living communities. Neither are we good at building the small, one or two-bedroom homes that enable local people to downsize when the time is right, as the Building More Homes report rightly points out.

I hope that in this regard, the Government’s proposed reforms in the White Paper will be beneficial. A more accurate housing needs assessment and more detailed local plan should facilitate the development of housing that is more suitable to local needs. Plans to give local authorities greater powers to encourage developers to build, hence preventing land banking, are also to be warmly welcomed, even if they do not go as far as the committee report proposed in permitting the levy of council tax on uncompleted sites.

For some of the most significant proposals in the White Paper, however, the devil will inevitably be in the detail. I am thinking particularly of the proposed review of Section 106. While simplifying the process by which planning authorities and developers decide on affordable housing contributions is of course desirable, it is vital that this review improve the tools local authorities have to bring forward affordable housing, rather than hindering them. I would hope that in the course of this review, Ministers will pay particular attention to the use of Section 106 in rural communities, where smaller developments yield much smaller Section 106 contributions—that is, if they yield any contributions at all. Recent planning policy changes to exempt smaller developments from Section 106 requirements seriously imperil the already limited supply of affordable rural housing, and I for one am not convinced that the Government have quite appreciated how serious this problem is.

When it comes to rural affordable housing, I am also still not convinced that the Government understand how policies such as starter homes and right to buy could affect the provision of land for real affordable housing. If the affordable housing built on rural exception sites is liable to be eventually lost to the open market, the incentive, for example, for a philanthropic landowner to provide land for homes for the local community will be lost. This is not a theoretical concern. I know a number of landowners who have talked specifically about this problem and I hope that Her Majesty’s Government will take steps to address it. Regardless of those outstanding concerns, however, the Government have been bold in accepting many of the recommendations of the Economic Affairs Committee and are rowing back on some of the more contentious proposals included in the Housing and Planning Act. I pay tribute to them for that and hope that we will continue to move rapidly in the same direction.

Queen’s Speech

Lord Bishop of St Albans Excerpts

Tuesday 24th May 2016 Lords Chamber

[The Lord Bishop of St Albans]

My Lords, in response to Her Majesty’s gracious Speech I will make just a few points on the subject of human rights, rights which from my perspective arise from the inherent and God-given dignity of every human being. In 1213, St Albans Cathedral was the setting for the first meeting of the bishops and barons which was to lead, two years later, to the sealing of Magna Carta, the 800th anniversary of which we celebrated just last year as a foundational document in the history of human rights.

However, the proposals for a British Bill of Rights to replace the Human Rights Act make me question whether the celebrations last June were something of a missed opportunity. When would there have been a better chance to educate the public about Britain’s historical and intellectual contribution to the European Convention on Human Rights, or to dispel the myths and misperceptions that surround the Human Rights Act? It is deeply to be regretted that this educational opportunity was missed. I appreciate that what has been announced now is merely a period of consultation on the Bill of Rights. However it is difficult to imagine what the Government can hope to achieve. At best, the Bill of Rights will be the Human Rights Act dressed up in expensive new clothing or, at worst, it will seek to curtail rights already enshrined within the European convention, a position which would be wholly opposed to the spirit of Magna Carta, a major part of which was to hold the Executive to account.

I am as aware as anyone that human rights are not always easy for Governments. I am sure it can be very tedious when the possibility of inhumane treatment prevents the Government from extraditing those who would bring harm to our country. However, treating our enemies with the fundamental human dignity that they would seek to deny to us is exactly the sort of British value that I hope this Government will promote, whatever form the Bill of Rights eventually takes.

Finally, I will comment briefly on three further Bills that I hope will also place human rights concerns at their very heart. First, I hope that, within the very welcome proposals on prison reform and prisoner rehabilitation, there might be an opportunity for us to think afresh about the voting rights of prisoners. I recognise that this has been a contentious, and indeed very unpopular, issue. However, there is a positive case for voting reform that has perhaps become lost among wider angst at the perceived activism of the European court. If we are serious about the process of rehabilitating prisoners, part of that must be to help them exercise their democratic rights.

Secondly, I highlight my concern that, unless we simply roll over and the terrorists win, the counter- extremism Bill has to guard free speech, and promote and find a way to adequately define British values. That will not be an easy task. Indeed, we need to look very closely at definition, which will be the sticking point over this Bill. How are we going to define extremism in a culture where we want people to have strong debate?

Finally, I want to highlight the Investigatory Powers Bill, which is already before the other place. Clearly, it is no easy task to find the right balance between the rights of the individual to live free from state intrusion and the needs of the state to maintain surveillance capacity in a rapidly changing technological environment. Given the ease with which surveillance matters can become politicised, I particularly welcome the increased role for judicial oversight of powers, and I hope we can think of ways to strengthen this oversight as the Bill passes through Parliament.

Civil Society

Lord Bishop of St Albans Excerpts

Thursday 11th June 2015 Lords Chamber

Moved by

[The Lord Bishop of St Albans]

That this House takes note of the role played by civil society, in the light of the pastoral letter from the Church of England’s House of Bishops, Who is my neighbour?

[The Lord Bishop of St Albans]

My Lords, there is much in our nation for which we can be profoundly grateful. Next week, as we mark 800 years since the sealing of Magna Carta, we give thanks for the long, yet sometimes tortuous, path that has led us to becoming a modern democracy. That moment was if not the birth then perhaps at least the conception of civil society at the beginning of a long gestation.

Last month, we celebrated 70 years of peace since the end of the Second World War, by which time civil society as we know it today was coming of age. As a nation, we have experienced extraordinary levels of economic growth over recent decades. Life expectancy has increased significantly and, importantly for this debate, in many communities in our nations, civil society is still strong and thriving. I for one am immensely grateful to be living in modern Britain and do not want to give any time to sentimental talk about a bygone era that probably never existed.

Nevertheless, some trends in society and in our political life are worrying and we cannot ignore them. Everyone here in Westminster is only too aware of the decline in the levels of voting and of increased apathy about politics. Those are not party-political issues: they are things that affect us right across the political spectrum. There are also the well-documented declines in volunteering, a decrease in the proportion of income that we give to charity and some evidence that charts a decline in our levels of well-being and happiness.

Those were just some of the issues that the House of Bishops raised in our letter, Who Is My Neighbour? As the letter stresses, we deliberately, and I believe successfully, avoided a document that was party political, although I know that some noble Lords do not agree and feel that we trespassed on to territory that they wish we had stayed away from. However, this morning I want to be absolutely clear that I tabled this debate not to attack the Government or indeed any political party. I sought this debate in an entirely non-partisan spirit, not wishing to single out any side as being particularly culpable, but rather to highlight the need for a fresh approach to politics that transcends tired polarisation. I hope that this debate will give us space and time to think about what can be done to strengthen our political life and reinvigorate civil society.

I am convinced that there is urgent work to be done to establish a new politics that seeks the common good. Indeed, I am keen that we will be able to explore the forms that such an approach to politics might take and the role that churches, charities and voluntary organisations, and indeed all intermediate institutions, can play in moving us in that direction.

I have already mentioned that we are marking the 800th anniversary of the sealing of Magna Carta next Monday. As noble Lords may be aware, the first meeting about Magna Carta took place in 1213 in St Albans Abbey, which today is my cathedral, although it was another two years before King John had his arm twisted to seal it. That sealing marked a major shift in devolving power and so strengthened the role of civil society. The church was deeply involved in those events leading up to the sealing of the charter led by Archbishop Stephen Langton’s opposition to King John. Part of the charter relates to the protection of the rights and responsibility of groups other than the barons, including the church. So we perhaps might frame today’s debate in terms of how the legacy of Magna Carta can be both developed and strengthened further in our time.

I return to today. We are all aware of the widespread and well-documented disillusionment with the current state of political discourse. Politics of the common good was not much on display during the general election campaign. Rather, I suggest, identity politics prevailed, with headline policies repeatedly demonstrating the belief that voters are fundamentally driven by self-interest. That is not to say that politicians deliberately go around driving wedges between different social groups. Nevertheless, we have all seen how this retail politics generates even more entrenched polarisation, closing the door on potentially constructive collaboration. Such tribalism also ignores the diversity of participants that we urgently need in order to bring long-lasting social, economic and political change.

As the House of Bishops’ letter pointed out, disillusionment with politics has been expressed in falling turnouts at general elections since the Second World War to below two-thirds of the population. The declining number of people exercising their democratic right to vote reflects a worrying level of non-participation. Many are choosing instead to boycott the established democratic channels, as evidenced in interventions made by Russell Brand and more recently by Charlotte Church, for example, and the concomitant rise of single-issue politics through online and social media campaigns.

Alongside voter disillusionment and apathy, there is also widespread concern among politicians, social commentators and community leaders over the gradual weakening of civil society in the western world, as attested to in research such as that provided by the British Social Attitudes survey. This decline can be discerned in the decreasing number of people who are willing to be actively involved in their communities, such as by volunteering, being on a PTA, being a school governor, leading scouts and guides, or being part of a neighbourhood watch scheme. While everyone seems to agree that these are eminently sensible and good things, fewer people are prepared to personally undertake them.

As part of this declining sense of mutual responsibility and community life, we have also experienced growing levels of loneliness and isolation, especially among the elderly through the more general loss of what the House of Bishops’ letter terms “neighbourliness”. The loneliness, solitariness and isolation that we have diagnosed as a significant feature in our society are also related to aspects of our welfare system. We are all aware of and agree that we are facing profound challenges, and it is not likely to help us find a way forward if we all lapse into familiar defensive positions. We need a new rationale for state welfare that is about incentivising human connectivity. Like all rationales for welfare, it rests of course on a tension or a paradox: how do you support those who cannot fully support themselves without creating disincentives for others to be self-supporting? How do you introduce incentives for neighbourliness without generating dependency in others?

All welfare policies have to negotiate these paradoxes. We require a justification for welfare policies that encourages more community involvement, promotes local neighbourliness where possible, and turns to state provision only where there is no community to mediate care and support. In other words, where there is nothing between the individual and the state, it can be dehumanising. If we are to increase levels of neighbourliness, our welfare strategies need to be geared towards that end just as much as to other areas of policy. All of us, including the churches, need to think beyond a case-by-case opposition to welfare cuts; rather, we need to commit to rethinking what welfare ought to be for our times, and how this can promote and not erode neighbourliness.

The decline in neighbourliness is linked at least in part with our politics. As many people have experienced an increasing sense of disfranchisement and powerlessness, there has also been an increase in the centralised nature of much of the power in this country. This is utterly counter to the spirit of Magna Carta, and there is much agreement across the political spectrum that accumulations of power, whether those of the state, corporations or individuals, are fundamentally unhealthy.

We must therefore seek to reverse these accumulations of power, if we are going to enable civil society to play its proper part, by involving people at a deeper level in the decisions that affect them most. This entails the recognition of the unique contribution of each citizen, not only out of a desire to honour the dignity of each human person but as an acknowledgment that viable solutions to the social problems that we all contend with require broad participation.

In this, I advocate a return to the principles of subsidiarity and solidarity that undergirded and predated the big-society agenda of the 2010 election campaign. We must not dismiss those ideas on the basis that they did not achieve at their last airing all that we might have hoped. The big-society sense of community and common life has been described by the academic Robert Putnam as “social capital”. The call for power to be devolved must not be mistaken for simply enabling citizens to secure their own narrow interests more directly. If more and more power is given to local communities, we cannot automatically presume that they will use that power for the greater good of everyone in that community—they might use it to increase nimbyism. For example, as we are faced with a shortage of housing in this country, on what basis can we presume that devolving greater powers to local areas will break the logjam? Indeed, some people argue that devolving the planning of housing could just as easily stop building.

As we devolve power more locally, we need it to be accompanied with a higher level of what Putnam terms “bridging social capital”, which he differentiates from “bonding social capital”. Bridging social capital is about the common good. I will elucidate that distinction a little, if I may, because it is quite helpful. Bonding social capital is where a group of people have such a strong sense of identity that they look after one another. For example, in clubs and associations, members may lend each other their mowers, do each other’s shopping or babysit for one another. That is all very good, but bonding social capital can be exclusive and does not necessarily look out for people who, for example, are new to the area. Communities based on bonding social capital can quickly become cliques of like-minded people who are extremely friendly, but—this is the important point—they are friendly just to each other.

In contrast, bridging social capital is demonstrated where a club or a group of people is so confident in itself that it can reach out to people who do not belong to it. This form of social capital is inclusive, giving people the confidence to meet strangers and encountering those who are different. Bridging social capital is evident in the existence of many of the institutions that comprise our national lives, such as our schools, hospitals, hospices and so on.

The church continues to be the locus for myriad contributions to civic society. In my diocese, we run centres for the homeless in Bedford, Luton, Watford and St Albans. We are involved with key partners in a homelessness project in Stevenage. We have four debt advice centres. We are involved in a number of credit unions; indeed, just a few weeks ago a leading credit union opened a new branch in one of our churches in Bedford. Noble Lords will also be aware of the large number of food banks that have been set up all over the country.

I mention those not to blow our own trumpets, because I am profoundly aware of how little we are able to scratch the surface. Nor do I want to get into a discussion in this debate about why, for example, we have food banks. That is not what I think this debate is primarily about. The question I am asking today is: what can we do to encourage the development of more intermediate institutions, which are the places where we are most likely to build bridging social capital? The acceptance of the imperative to devolve power leaves us with questions of how we ensure the presence of strong communities that can accept this power and use it for the common good. Thus, intermediate institutions play a foundational role, as neighbourhoods are built on institutions that are strong enough to enable people to move away from the language of “I” and “me” to the language of “us” and “we”.

I very much hope that this debate will be a constructive forum in which we can explore how to go forward in facilitating the mutual flourishing of communities and how we might strengthen our political life as a nation. I beg to move.

--- Later in debate ---

[The Lord Bishop of St Albans]

My Lords, as a bishop of the Church of England and as a Member of this House, I am used to having some pretty strange titles, so I was grateful to the noble Lord, Lord Anderson, for creating a new one for me—“noble troublemaker”. I cannot respond to all the points made but I am grateful to noble Lords for their wide range of contributions—significantly, from all Benches in this House. People really have sought to rise above simply reiterating party-political points and have tried to think about some of the more long-term and deeper questions underlying our political and civic life.

I would be the first to acknowledge that Who Is My Neighbour? does not deal with many issues. The noble Baroness, Lady Barker, and the noble Lord, Lord Anderson, raised issues which we were not able to address. However, I need to mention in passing that there was a section on environmental sustainability in the report. I also say to the noble Lord, Lord Griffiths of Fforestfach, on his concerns about one or two of the statements on unemployment, that I would be delighted to send him the background statistics if he wants them. I simply reiterate that I am of course delighted by the decline in levels of unemployment and the creation of new jobs. I have said that on a number of occasions, including in this House, especially where those jobs are permanent posts. We need to acknowledge that and be grateful for it.

Finally, the noble Lord, Lord Patten, was just a little disappointed when he turned to the conclusion. The pastoral letter was one to members of the Church of England, and we invited others to eavesdrop on our conversation, but we were clear that we wanted it to be part of a larger debate. That is what we have been doing today. We hope that this will not be the end of it and that others will engage. I hope that it signals the intention from the Bishops on this Bench that, during the coming years, we want to play a full part in those debates as we think about how we can strengthen our political institutions, and reboot and restrengthen our civic life to the benefit of all those who live in this nation. I thank noble Lords very much for their contributions.

Motion agreed.

Voter Registration: Students

Lord Bishop of St Albans Excerpts

Wednesday 11th February 2015 Lords Chamber

[Lord Wallace of Saltaire]

My Lords, we have switched from group registration to individual registration, but the Government are working with the Student Forum, which brings together universities, student organisations and representatives of FE colleges, to raise awareness through a whole range of activities for students arriving in universities. There were pilots in Sheffield and Manchester linking registration at university with registering to vote—so we are very active in this area.

[The Lord Bishop of St Albans]

My Lords, I am grateful to the Minister for referring to last week’s National Voter Registration Day. As part of that, I went into Townsend School in St Albans with two dynamic members of Bite the Ballot, who were able to bring the whole thing alive in an interactive and very lively session. They handed out registration forms at the end and offered to take them back in—so they are already doing this sort of work. Have Her Majesty’s Government considered supporting that organisation and other similar ones that are already doing this work in a very creative way?