National Crime Agency Investigation: Javad Marandi

Lord Browne of Ladyton Excerpts

Wednesday 17th May 2023 Lords Chamber

[Lord Sharpe of Epsom (Con)]

I would be very happy indeed to meet the noble Lord to discuss his amendment. I remind noble Lords that, as I say, any suspected breaches of the law are a matter for the Electoral Commission or the police. It is not appropriate to comment on individual cases or ongoing investigations, but if a donation is from a permissible donor, it is for the recipient to decide whether or not they want to accept that donation.

[Lord Browne of Ladyton (Lab)]

My Lords, the Minister will be aware of Operation Branchform, the Scottish police investigation into the finances of the Scottish National Party. What he will not be aware of is that earlier today, Alexander Burnett, the Conservative Whip in the Scottish Parliament, wrote to the Presiding Officer demanding a parliamentary inquiry into that while that investigation is going on. In a published statement, he said that such a new committee would

“give the public confidence that the whole truth around this increasingly murky affair involving Scotland’s ruling party will be laid bare once and for all”.

What advice would the Minister give his parliamentary colleague, who speaks for the party: that maybe he should have removed the plank from his own eye before suggesting that, or that this is a good idea, and what is sauce for the goose is sauce for the gander?

[Lord Sharpe of Epsom (Con)]

The noble Lord will not be surprised to know that I was not aware of the Scottish dimension to this subject, so I will refrain from further comment.

Economic Crime and Corporate Transparency Bill

Lord Browne of Ladyton Excerpts

Committee stage
Tuesday 9th May 2023 Grand Committee

[Baroness Blake of Leeds (Lab)]

I add my thanks to everyone who has put so much effort and work into this issue over a significant amount of time. I thank everyone for their contributions, which have given powerful testimony of those who have suffered. We should note the fact that so many noble Lords in this Committee alone personally know people to whom this has happened.

I confirm that we support this amendment and I look forward to the Minister’s comments about the request for creating an office for whistleblowers. As has been said throughout the debate, it is clear that facilitating whistleblowing would go a significant way to tackling economic crime, whether fraud, money laundering or other crimes. I thank the noble Baroness, Lady Kramer, in particular for her comments about the importance of the earliest possible notice of wrong- doing, which is a key point in this discussion.

I emphasise that the stakes remain too high for an informed insider wanting to blow the whistle. This amendment would be a good starting point. I am not convinced that it will solve all the problems, but we need to see some progress. Too many people are suffering and we need to recognise those individuals as well as the impact on the businesses involved. As the noble Baroness, Lady Altmann, said, the sad truth is that too many people wait until they are leaving a company—either moving on to another or, in the case she mentioned, retiring—before finding the courage to stand up.

I understand there is going to be a review, but surely we have an opportunity now, with this Bill, to make some bold change. I thank the charity, Protect, for its briefing under Speak Up, Stop Harm, which has some very important information that we should all consider. To reference the debate that took place in the Commons, there was strong cross-party support, encouraging support and advice for whistleblowers. I am concerned that the government line remains that taking these important steps is too expensive. I really cannot understand that line of argument. Surely, we should regard this as an investment and not a cost. Tom Tugendhat MP promised more discussion on these matters as part of the debate. Can the Minister inform us where this has got to?

We support the creation of an office to give encouragement and support making reports. We want an ability to provide advice and, most particularly, to act on evidence of detriment to whistleblowers where we know that it occurs. The point in the amendment about making an annual report to Parliament is also important. One area on which I think it would be possible to move is to bring forward the requirement for all organisations to have a proper policy in place as a vital and effective route to preventing crime, which would mean that the courts could use evidence of this as good practice.

As I am sure all noble Lords have seen, 65% of callers to Protect’s confidential advice line say that they have suffered for speaking out, which of course is in direct contravention to the Public Interest Disclosure Act and, therefore, as amended, the Employment Rights Act. This is a very serious issue, which should be picked up and dealt with immediately.

On furlough payments, 41% of clients who contacted the advice line who suspected that fraud was taking place were ignored; 90% attempted to raise concerns with their employer before going to the helpline but, unfortunately, many small organisations still have nowhere to go. It is a matter of how these changes could support businesses that want to do the right thing but do not have the wherewithal to do it.

I look forward to the Minister’s responses to all the points that have been made today. Let us treat this issue with the seriousness that it deserves, as it is an important way in which we can help those who have received information that they want to act on. In the spirit of the Bill itself, it is a vital and effective route to preventing crime.

[Lord Browne of Ladyton (Lab)]

I support the amendment and commend the noble Baroness for tabling it, as well as those who support it. I do not intend to go over anything that anybody else has said about whistleblowing, but I agree with them. I am not in any sense an expert on whistleblowing, but I am speaking because I think I have anticipated in two areas what the Government’s response will be. First, I think that we are all conscious that a review of whistleblowing has been instructed. However, I cannot find in any commentary about it or any of the announcements from the Government whether the possibility of that review recommending the setting up of an office of whistleblower is part of its remit. It does not seem to be—and that brings me to the point that I really want to make.

Some of us contributed to the debate on the Private Member’s Bill on the protection of whistleblowing in the name of the noble Baroness, Lady Kramer on 2 December—I think its formal title is the Protection for Whistleblowing Bill—and because Part 2 of that Bill related to the setting up of an office of the whistle- blower, we have had the benefit of the noble Lord, Lord Callanan, telling us what the Government’s position is. I expect to hear that the Government’s position is that the existing framework provides 80 prescribed persons to whom people can legally blow whistles, many of whom are regulators, that the very diversity of that framework does not need this overarching body because it would not be able to deal with the complexity underneath it, and that should a new body have such a function,

“it would require significant staffing resources, with diverse expertise across a range of sectors, to enable it to carry out these functions effectively”.—[Official Report, 2/12/22; col. 2044.]

In other words, it is not necessary.

That can be said, and that framework exists, but to test whether that is right, I ask the Minister in response to tell us just how effective the framework is. What do these existing regulators and others actually do? What does the data show of their effectiveness? How attractive are they to whistleblowers? How many successful processes have there been—how much criminal or other wrong activity has been uncovered by them, say in the last five years or so—and just how effective have those processes been?

I spoke in that debate on 2 December and I spent quite a bit of time looking for that data, but it does not seem to exist anywhere—there does not seem to be any data that shows how successful the existing framework is. Does the Minister have the data on the number of cases that pass through the current regulatory system, as well as the data on the impact of that? If that data shows what I suspect it does—but only from anecdotal evidence because there is no empirical evidence—then this process is ripe for complete restructuring.

For all the reasons shared with your Lordships’ Committee by the noble Baroness, Lady Kramer, so competently and in such an informed way, the obvious restructuring is to follow the success of the United States of America, where the creation of an office for whistleblowing has dramatically improved the effectiveness of whistleblowing to an extraordinary degree.

It seems that the fundamental problem—this is part of the problem we have got ourselves into with economic crime—is that the infrastructure we have in any part, either to prevent, detect or prosecute it, is just not of the scale of what is going on in our country. We need something that concentrates some very special resources in a way that makes whistleblowers comfortable to deal with them, protected by the state when they blow the whistle, and where the information they give is properly acted on so that it has the results that we need. I hope that when, as I expect, the Minister pushes back on this amendment, he will be able to tell us where that is in the existing framework. If it is not there, we need an office for the whistleblower, and when we get it is just a question of time.

This is an opportunity we have now. Most of us in your Lordships’ Committee have experience of just how difficult it is to get opportunities for legislation that makes this sort of fundamental change. We should grasp this one when we have it. If we have to build upon it beyond economic crime later on, so be it, but we should do it now.

[The Minister of State, Department for Business and Trade (The Earl of Minto) (Con)]

My Lords, I first draw attention to my interest as set out in the register, as a non-executive chairman of Not Another Bill Limited. Secondly, I want to thank noble Lords for their warm welcome to the hot seat, which is much appreciated.

I am pleased to be able to represent the Department for Business and Trade in my new role as Minister of State. I thank all noble Lords for their inputs into the debates so far and express my pleasure at being able to speak today on this amendment. I also thank my ministerial colleague and noble friend Lord Johnson of Lainston, who is indeed in Hong Kong, for his support in preparation for today’s debate.

Moving on to the Bill itself, I thank the noble Baroness, Lady Kramer, for raising the important matter of whistleblowing. As a former co-chair of the All-Party Parliamentary Group for Whistleblowing, she has continuously highlighted the important role that whistleblowing plays in shining a light on wrongdoing. The Government have a significant interest in ensuring that our whistleblowing framework is robust. An effective whistleblowing framework is a vital part of the UK’s ability to tackle corruption and all forms of economic crime and illicit finance. As these acts are by their very nature often covert, those working for an organisation can be a key source of intelligence for authorities.

My concern with this amendment, however, is two-fold. First, these reforms risk duplicating elements of the existing framework, leading to a confused landscape, and potentially at considerable cost. As I understand it, this position was explained by my noble friend, Lord Callanan, during Second Reading of the noble Baroness’s Protection for Whistleblowing Bill in December last year. So I will not go into detail here but, just to recap, the Government are concerned about how such an office would interact with the role of regulators. As has been mentioned, a new body could also come at a considerable cost, as it would require significant staffing resources, with diverse expertise across sectors, to enable it to carry out these functions effectively.

Secondly, it would be premature to make legislative change ahead of the review of the whistleblowing framework, which everybody has mentioned. The review, which the Government launched on 27 March this year, will examine the effectiveness of the whistleblowing framework in meeting its intended objectives—that is, to enable workers to come forward to speak up about wrongdoing and to protect those who do so against detriment and dismissal.

The noble Baronesses, Lady Kramer and Lady Altmann, asked whether the review will consider the merits of establishing an office for the whistleblower. The review will consider evidence related to the effectiveness of the whistleblowing framework in meeting its intended objectives. This is to enable workers to come forward to speak up about wrongdoing, and to protect those who do so against detriment and dismissal. As the right reverend Prelate explained, proper protection is needed against terrible misery and personal risk.

The review will consider a number of topics that are central to the whistleblowing framework. These include: how workers are defined for whistleblowing protections; the availability of information and guidance for whistleblowing purposes; and how employers and prescribed persons respond to whistleblowing disclosures, including best practice. The research for the review will conclude in autumn 2023. The full terms of reference for the review are published on GOV.UK.

There have been a number of very specific questions. I think that I have written down all those on data so, if it is all right with noble Lords, I shall respond swiftly in writing to some of the specific questions that were asked. There is no doubt that there is a lot of data behind this amendment; it is important that proper answers are provided.

[Lord Browne of Ladyton (Lab)]

I thank the Minister for giving way. On 2 December, I asked the noble Lord, Lord Callanan, whether he could provide the data on the performance of regulators and other prescribed persons in relation to whistleblowing, specifically asking the same question that I asked the Minister. He did not answer it then and he has not written to me. Does this data exist? I suspect that it does not.

[The Earl of Minto (Con)]

I do not know whether it exists; if it does, I shall find out and let the noble Lord know. I think it must exist, but we will have to see. The other important issue was the expense of going to a tribunal, which is a very serious issue. My understanding is that the review will certainly take that into consideration.

Not long after taking office, my ministerial colleague the parliamentary Under-Secretary of State, Kevin Hollinrake MP, committed during the Public Bill Committee in the other place to get this review moving. We have followed up on this commitment and continued to deliver on whistleblowing policy. On 17 October last year, the Government laid before Parliament the most recent update to the prescribed persons order. This came into force in December and is a significant improvement to the framework, adding six new bodies and all Members of the Scottish Parliament to the list of bodies and individuals that a worker can blow the whistle to. I hope that demonstrates to noble Lords that the Government are very serious about whistle- blowing.

I welcome the continued constructive engagement on this topic, and I know that Minister Hollinrake has valued the discussions to date with parliamentarians and organisations representing whistleblowers in preparing for this review. However, this amendment could create a confused landscape for whistleblowing, potentially at considerable cost. It would also pre-empt the ongoing review of the existing framework. I therefore respectfully ask the noble Baroness, Lady Kramer, to withdraw it.

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[Lord Browne of Ladyton (Lab)]

My Lords, I am pleased to follow the noble Lord, Lord Agnew, in this part of our debates on the Bill because I recently corresponded with him about many of these issues. It was prompted by the publication on 30 March 2023 of the National Audit Office’s report, Tackling Fraud and Corruption Against Government. He helpfully drew my attention to some aspects of that and persuaded me that there is an opportunity in this Bill to take advantage of a degree of cross-party co-operation and leadership in an area of public policy, the like of which I have never seen in 25 years in the other place and your Lordships’ House.

The degree of informed cross-party leadership in the House of Commons is unique, in my experience. I do not think that I have ever seen so many well-informed people who have spent years working in this area leading together, in an utterly non-partisan way, the revision and improvement of a piece of legislation. It has been an utter pleasure to be able to contribute a small amount to your Lordships’ Committee and to listen to genuine experts in this Committee talking both about their experience and how it can be brought to bear to improve the Bill. I have no doubt that the Minister welcomes the fact that there is such support for the Government’s ambition.

However, my sense is that the government machinery resists being helped too much in relation to this legislation. I was an enthusiastic amateur in relation to the first part of the Bill because I have no expertise in the workings of the Companies Act. There were a number of people in the Committee who were able to inform me about how the process worked. The whole point of those debates on Companies House was to change culture; the whole point of this legislation seems to me to be to change culture in all aspects and areas that it touches in relation to economic crime. The culture that we want is one of transparency and accountability, which is why it is called the Economic Crime and Corporate Transparency Bill. It seems utterly ridiculous that the visa report is in the hands of the Home Secretary, who now has responsibility for a large part of the Government’s policy given the changes in government structure that took place not so long ago. She is holding on to an important report—a review of how we got into the position where this well-intentioned visa process became a machinery of deep corruption in our society at high levels because the money for corrupt purposes was moving quite significantly up the ladder of those who make decisions into the policy world.

What justification can there be, when the Home Office substantially has responsibility for a large part of this Economic Crime and Corporate Transparency Bill, which is designed fundamentally to change our approach, for one of the principal Ministers in charge of this area of law to be sitting on this report without explanation? There is no explanation. We are entitled to conclude that there must be something that she does not want the light of transparency to reveal. The noble Lord, Lord Fox, has already suggested what that could be—it probably is that.

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While the Government are not able to support this amendment, the noble Lord should be commended for raising this important issue. The Government remain committed to holding the perpetrators of corruption to account. Ownership of international treaties and jurisprudence sits with the FCDO, and I know that my ministerial colleagues there have noted the interest in this amendment and would welcome further exchanges with the noble Lord to consider the options available to accelerate international action.

[Lord Browne of Ladyton (Lab)]

I am conscious that I did not contribute to the debate on this, but is it too late to get the word “anti-corruption” into the communique for the pending G7, which takes place between 17 and 23 May in Hiroshima? That word is nowhere in the Foreign Ministers’ communique on 19 April after they met, I think, in Japan. The communique covers almost everything in which one can imagine we would be interested in involving those countries that share our values, but that is not there.

[Lord Sharpe of Epsom (Con)]

The noble Lord will not be surprised to know that I do not know, but I will ask.

The Government will endeavour to update your Lordships’ House on their plans for progressing international action on corruption in due course. I hope the noble Lord, Lord Hain, and the noble Lord, Lord Oates, on his behalf are reassured by the Government’s commitment to combatting corruption. We look forward to further discussions on this subject and to setting out our plans in further detail at an appropriate time. I therefore ask the noble Lord to withdraw his amendment.

Turning to Amendment 106A, tabled by the noble Baroness, Lady Bennett, the Government care deeply about tackling tax evasion and avoidance. My ministerial colleagues continue to work closely with the various sub-committees that sit within the UN’s Economic and Social Council. However, standard-setting powers on tax currently sit within the Organisation for Economic Co-operation and Development’s inclusive framework and global forum, and the UK believes that this is the mechanism best placed to deliver consensus-based reforms aimed at tax avoidance and evasion.

The inclusive framework and the global forum have wide and diverse memberships of more than 140 and 160 countries respectively. Furthermore, the OECD holds strong technical expertise in matters of international tax avoidance and evasion, and a potential UN convention on global tax evasion as envisaged by this amendment would duplicate and be likely to hinder the OECD’s work. This would delay the co-ordinated global response and effort to address tax evasion and avoidance and combat harmful tax practices, as well as creating divergence in international tax standards.

Having said that, the UK will engage constructively with the upcoming report by the UN Secretary-General. We want to find ways to improve international co-operation, as I have said, but to do that we want to ensure that this captures the full range of existing mechanisms for international tax co-operation and considers creatively how they could be improved better to meet developing countries’ needs. We have submitted evidence to the UN Secretary-General demonstrating these points.

Having said all that, obviously I ask the noble Baroness not to move her amendment.

Police: Restoring Public Confidence

Lord Browne of Ladyton Excerpts

Wednesday 3rd May 2023 Grand Committee

[Lord Browne of Ladyton (Lab)]

My Lords, it is an honour and a privilege to follow the noble Lord, Lord Lexden. I congratulate him on an excellent opening speech for this debate and agree with almost every word he said. I pay tribute to him for once again affording us the opportunity to examine the current state of the relationship between the police and the public in our country and, more generally, for his indefatigable work on, and commitment to, this area of policy.

This relationship is fundamental: a nation state in which trust between the police and the public has broken down is itself broken. Max Weber suggested that the defining feature of the modern state is its possession of the monopoly on the legitimate use of force, and in that definition “legitimate” does a lot of heavy lifting. If we are to continue to operate according to the nine Peelian principles that underlie our model of policing, power is legitimate only where it is perceived by the public so to be. Public trust is not merely desirable but an essential precondition for our policing system to work effectively.

To focus on the Met just for a moment or two, it is evident that across large swathes of London the Metropolitan Police no longer enjoys that trust. To supplement the statistics on polling of the public that the noble Lord, Lord Lexden, shared with the Committee, a recent YouGov survey commissioned by the BBC found that 42% of those surveyed either somewhat or strongly distrust the Met as an organisation, that 43% thought more negatively of it compared with the same time last year—so this is a deteriorating relationship —and that 73% felt that some groups were treated differently from others. Perhaps most worrying, however, is the absence of surprise that has greeted those alarming statistics. They were a dismal confirmation of what we already knew rather than an unwelcome surprise.

Some of the reasons for this are obvious and rightly have received extensive media attention. They are the tragedy of Sarah Everard’s kidnap, rape and murder by a serving police officer; the verdict of an inquest that failures by the Met contributed to three of the four murders by Stephen Port; and the complete absence of appropriate vetting and oversight that allowed David Carrick to rape and sexually assault multiple women while continuing to serve as a police officer. But the Baroness Casey Review, published six weeks ago, makes it clear that there are deeply embedded structural issues that compromise both the ethical standing and the operational effectiveness of the Metropolitan Police.

Reading through the noble Baroness’s findings, one paragraph seems to exemplify these failings. It is rather extensive but I make no apology for reading it:

“There is currently no plan for the workforce beyond bringing people in, and no sense of how the thousands of new recruits will breathe fresh life into the force after years of austerity. The vetting system is broken, there is minimal supervision, training and development is not taken seriously, there are no training records and the Met do not know what their workforce needs. People are doing jobs they are not trained to do. Initiative after initiative keeps everyone busy, creating … teams and moving people around but ultimately gets in the way of the core job of keeping Londoners safe and prevents the development of fully developed plans for change”.


The noble Baroness, Lady Casey, goes on to conclude that, when we measure the Met against the Peelian principles that continue to guide its operation “Public consent is broken”, a finding that speaks directly to the Motion we are debating in the name of the noble Lord.

It is important to widen our focus beyond the Met, to the situation across the country. Police are currently solving the lowest proportion of crimes on record, with, according to the latest Home Office figures, only 5.4% of crimes resulting in a charge. That is equivalent to just over one in 20 offences being solved. As my right honourable friend Yvette Cooper pointed out in a recent debate in the other place, nearly 70% of the public now believe, as a direct consequence of this parlous record, that the police have given up on trying to solve crimes such as burglary or shoplifting altogether. In fact, given that we now know that fraud accounts for 41% of crime on the person and that only 1% of police resources are devoted to it, the Government themselves have even given up on referring to these statistics regarding the amount of crime in the country.

What of crimes that disproportionately affect women? A recent report compiled by the charity Victim Support found that over half of women lack confidence that the police will properly investigate their reports of domestic abuse. This is not merely a measure of confidence but of the lived experience of dealing with the police, with four in 10 women who had reported a crime in the last two years saying they had felt “let down” by the police investigation into their case.

I prepared this speech when the time allotted to us was much shorter than it presently is. I therefore felt forced to adopt a somewhat pointillist approach, adducing specific statistical examples rather than going into this issue more comprehensively. I am even more pleased that I follow the noble Lord, Lord Lexden, because he did that for us, so I will not extemporise on that, but these individual data points, taken together, create a truly sobering image of a police service that is losing trust across all sections of the population.

Disappointingly, the Government’s response to this has been to focus on the recruitment of 20,000 new police officers, to replace a comparable number of officers that they themselves—although they were in coalition—previously dismissed on the grounds of economic necessity. Ironically, quite apart from the fact that the fiscal situation in which we find ourselves currently is, to put it mildly, not appreciably better than that which apparently compelled the Government to institute these mass dismissals, there are also deeper structural implications. This extraordinary staff churn has not only compromised the institutional memory of the police force but exposed the weaknesses of the vetting process which has contributed to the stories of misconduct among serving officers.

Last week, the Policing Minister proudly announced that the College of Policing had just finished consulting on a new statutory code of practice for vetting which “will be adopted shortly”. This should be juxtaposed with the verdict of Matt Parr, His Majesty’s Inspector of Constabulary, who said that, owing to weak vetting procedures, there are police officers numbered

“in the hundreds, if not low thousands”

who should have been disbarred but are now serving officers. Instituting a new vetting procedure after one of the most rapid recruitment drives in police history is patently absurd. It is rather like watching a gang of thieves load the last of your possessions into the getaway vehicle and only then deciding to put a lock on your door and investigate the idea of installing a burglar alarm.

While I understand the underlying principle of operational independence, it seems that, in the interests of devolving accountability, the current structure of policing is deliberately fragmented. It is this that has led to so many of the challenges that we are debating. I remind your Lordships that, when first establishing the Met Police, Robert Peel reflected on this issue, candidly admitting that his legislation was driven by his

“despair of being able to place our police upon a general footing of uniformity”.—[Official Report, Commons, 28/2/1828; col. 793.]

I support entirely the call for a specific action plan, and support even more that it be in plain English so that, in terms of accountability for Parliament, we know exactly what to expect of it. However, to conclude, I pose three specific short questions on which it would be helpful to hear from the Minister. First, what work is his department doing to ensure that the structural weaknesses identified by the Casey review are not reflected in other forces across the country that have not have the same level of scrutiny as the Met? Secondly, does he feel that the frenetic drive to meet the recruitment target of 20,000 new police officers is a tacit admission that the earlier austerity-driven wave of dismissals was just a mistake? Lastly, what reflections does he or, more importantly, his department have as to the ability of current nationwide policing structures, including PCCs—I am quite sceptical of them—to ensure uniformity and coherence in policing across this country?

Economic Crime and Corporate Transparency

Lord Browne of Ladyton Excerpts

Committee stage
Thursday 27th April 2023 Grand Committee

That is enough from me. I apologise for going on so long, but I promise that I shall remain for the remainder of the sitting of the Committee, unlike on Tuesday. I urge my noble friend the Minister to take a deep breath and to accept that if he agrees with me, my noble friends Lady Morgan, Lord Sandhurst and Lord Agnew, the noble Lord, Lord Fox, and, no doubt, other noble and noble and learned Lords, he will never find a friendlier group of collaborators. I urge him—perhaps while nobody is looking—to grasp this opportunity and move corporate criminal law somewhere close to the 20th century, even if he will not come as far as the 21st.

[Lord Browne of Ladyton (Lab)]

My Lords, I associate myself entirely with the remarks of appreciation and thanks made by the noble and learned Lord, Lord Garnier, to the Minister and his team for their engagement on all aspects on the Bill—to the extent that I have been engaged in them, but I think I speak for everyone when I say that.

To summarise in a blunter way what the noble and learned Lord, Lord Garnier, was saying, I suspect that if we in this Committee voted on this issue, and indeed on all the amendments tabled by members of the Committee, the Minister would find himself in a minority of two. My sense—to the degree to which I can be relied upon to have the ear of Parliament—is that, when this comes back on Report, it will not be difficult to persuade a substantial majority in your Lordships’ House to vote for these. There is also a strong echo of support coming from the other House; anyone who has read the Commons Report stage from 25 January will know that there is overwhelming support there for this trend, if not the specifics.

I intend to restrict my remarks to the two halves of the loaf described by the noble and learned Lord, Lord Garnier, but I support all the other amendments. I do not need to go through them, although I may have something to say before I sit down about the amendments from the Select Committee that I had the pleasure to serve on, since for personal reasons I may need to leave the Committee earlier than I would have hoped.

As we have heard, the new clauses are welcome in so far as they impose a duty to prevent fraud in large organisations. Helpfully, the main amendment and consequential amendments from the noble Lord, Lord Fox, would invert the Government’s approach whereby we can amend to remove the applicability to large organisations. I have to say that the existence of that provision suggests that the Government think they may need to do that. Instead, the amendments would extend the Government’s failure to prevent offences to all relevant organisations regardless of size.

If the Bill is to fashion the real cultural change that has been promised, that approach is surely better calculated to achieve a sweeping change, analogous to that achieved by the Health and Safety at Work etc. Act, which has been referred to in debates. It is not just about imposing these measures on the companies and associates themselves, but ensuring that this becomes part of public, business and, in particular, corporate consciousness, empowering individuals to identify and report crime—particularly fraud and money laundering, which are the main crimes being committed in the economic crime environment—they feel is taking place.

In support of the remarks of the noble Lord, Lord Fox, about the vulnerability of SMEs to crime, I shall refer to a couple of headline statistics that could be useful for context. For example, the US-based Association of Certified Fraud Examiners found that private companies and small businesses have the most fraud simply because of the lack of internal controls, which we see as a regulatory burden, but they do not need to be as they would help these businesses to protect themselves from fraud. Fraud was proportionally significantly greater in these businesses than it was in larger companies.

On 25 January, on the second day of Report in the other place, John Penrose’s argument in his intervention on Stephen Kinnock is an interesting one, in that it fundamentally challenges the Government’s assumption about a duty to prevent imposing an unreasonable and unbearable burden upon small businesses. It suggests instead that a simple duty to prevent could not only reduce the burden of criminality but

“sweep away a raft of largely ineffective and deeply costly measures, and replace them with something that is simpler”

and “more effective” for small businesses.

In a statement on 11 April, Spotlight on Corruption stated:

“The carve out for SMEs is … desperately short-sighted and entirely unnecessary … By including this exemption, the government has deprived the corporate sector as a whole of the full benefit of this offence. SMEs are known to be at a high risk of fraud, and encouraging them to have appropriate anti-fraud procedures would not only help prevent fraud, but also better protect them from becoming victims of fraud”.


As Robert Buckland reminded the Minister on 25 January, the 2015 Conservative manifesto

“rightly committed the Government to make it illegal for companies to fail to put in place measures to prevent economic crime”.—[Official Report, Commons, Economic Crime and Corporate Transparency Public Bill Committee, 25/1/23; cols. 1057-61.]

In what respect does that commitment not find an echo in calls to ensure that this failure to prevent is in operation throughout the economy, rather than just in companies that sit above what appears to be an arbitrarily drawn threshold?

The Government’s attempt to draw a false dichotomy between corporates and smaller companies fails to appreciate that all these sectors are inextricably linked. There is no Chinese wall between corporates and small businesses. In terms of fraud and money laundering, money is directed to where its origins and purpose will get the smallest amount of scrutiny. It would be extremely easy for companies to restructure themselves to ensure that they could limbo under the bar of meeting the test of being a large organisation and ensure that they avoid being subject to this duty to prevent. There is certainly no shortage of people out there who seem willing to enable them to restructure their businesses in ways that achieve this objective, directing them to where the origins and purposes will receive the smallest amount of scrutiny.

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I thank my noble and learned friend Lord Garnier for tabling Amendment 100, which would reform the mechanism for corporate attribution—the “identification doctrine”.

[Lord Browne of Ladyton (Lab)]

I apologise to the Minister; I should have intervened slightly earlier. If the Minister has data on the likely cost of the extension of the provisions in the Government’s amendment to small and medium-sized enterprises, I think that all Members of the Committee would like to see it, including how it could be disaggregated. To make a proportionate decision, surely it would need to be accompanied by the Government’s estimate of the loss to small and medium-sized enterprises caused by fraud. Given the scale of fraud in this country, it must be significant. Personally, I would like to have the opportunity to compare what this is likely to cost against what fraud already costs small and medium-sized enterprises.

[Lord Sharpe of Epsom (Con)]

The noble Lord makes a good point. As I have said, I will endeavour to find some more figures and share them more broadly. I do not know whether it will take into account the precise analysis that the noble Lord seeks, but the fraud strategy is imminent and it would be strange to publish a strategy without saying what the strategy is there to address. Once again, I am piling all my faith into the fraud strategy—possibly misplaced faith, who knows?

Hate Crime

Lord Browne of Ladyton Excerpts

Monday 24th April 2023 Lords Chamber

[Lord Sharpe of Epsom (Con)]

On the noble Baroness’s latter point, she is right: in the year ending March 2022, there was a 26% increase compared to the previous year. Although the latest data does indicate that increase, the most recent Crime Survey for England and Wales figures, which were published in 2020, indicate a downward trend in overall hate crime incidents over the past decade. It is felt that the biggest driver for the increase in police-reported crime is likely to be general improvements in the recording of the crime. The police are also better at identifying whether a crime is a hate crime, along with increased victim willingness to come forward. As regards the publication of the data that we are collecting as of 1 April, I cannot say for sure yet. It is for 2023/24. It is voluntary at the moment, but it will be part of the annual data requirement. The Home Office statisticians will make an independent judgment as to whether it is fit for publication or not.

[Lord Browne of Ladyton (Lab)]

My Lords, hate crimes have developed incrementally. First, they were targeted at racially motivated offences, before broadening into the five strands to which the noble Baroness’s Question alludes. So this should remind us that their current state is a snapshot in time. We must always review these things to extend further protections where they are necessary; that is how we got to where we presently are. So surely the routine disaggregation of annual data by sex would enable us to review whether there is a necessity of extended protections offered by hate crime laws to women and girls, in a way that is better informed than it apparently is at present?

[Lord Sharpe of Epsom (Con)]

The noble Lord raises a good point. Of course, the Law Commission did look into this—a subject to which I am sure I will return. But the recording for hate crimes in terms of the sex of the perpetrator is actually very complex. The Ministry of Justice holds court criminal data; the sex of perpetrators is published for all crimes prosecuted that are specified in legislation, including hate crime offences such as racially and religiously aggravated assault, as the noble Lord has suggested. But where a sentence uplift is used because there is evidence of a hate element in the offence, it will be recorded under the offence legislation, not the uplift. Therefore, the sex of the perpetrator, while published, is not always linked to hate crime. Consequently, the data is not a complete representation of all hate crime and will not provide an accurate picture of the sex of the perpetrators.

Asylum Seekers

Lord Browne of Ladyton Excerpts

Tuesday 17th January 2023 Lords Chamber

[Lord Murray of Blidworth (Con)]

Yes. Any such revised guidance will take into account input from a whole range of stakeholders, no doubt including those of the type mentioned by the noble Baroness.

[Lord Browne of Ladyton (Lab)]

My Lords, I know from my own experience when I was Minister for Immigration that when backlogs are large it is imperative to look after the most vulnerable people in custody. Why then did the Home Secretary end the system of annual investigations into the treatment of vulnerable adult detainees? Is the detention system working so well now that these investigations are no longer necessary, or are there some other protections for those people to ensure that the welfare of vulnerable adult detainees has not been compromised?

[Lord Murray of Blidworth (Con)]

Certainly the inspection of detention facilities will continue. I am not aware of any change in policy in relation to the particular category of detainees that the noble Lord mentioned, but I will make inquiries in the department and write to him on that.

Police: Employment and Discipline

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Monday 9th January 2023 Lords Chamber

[Lord Sharpe of Epsom (Con)]

From memory, there is a face-to-face aspect to the vetting and interviewing process—if I am wrong on that, I will come back and correct myself. On the report to which the noble Lord referred, he will be aware that there is a requirement for policing bodies to provide a response to the recommendations in that report within 56 days of its publication. Those responses will be imminent, in that case.

[Lord Browne of Ladyton (Lab)]

My Lords, the Met’s own figures show that the number of officers suspended from duties on full pay has risen by almost 600% over the last three years. This excludes a growing number of others subject to management or restricted duties owing to concerns about their performance or conduct. This is not a statistical quirk but a consequence of systemic issues with the disciplinary procedures. This needs to be addressed urgently, because it affects forces across the country and compromises the safety of the people whom these police officers serve. We do not have time to wait for a review; it needs to be dealt with now.

UK Asylum and Refugee Policy

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Friday 9th December 2022 Lords Chamber

[Lord Browne of Ladyton (Lab)]

It is a privilege to follow the noble Baroness, Lady Nicholson. We have heard three excellent maiden speeches: I thank my noble friends Lady Twycross and Lord Sahota and the right reverend Prelate the Bishop of Leicester for their excellent contributions. I thank the most reverend Primate for the opportunity to debate this important question today. It is timely for many reasons: in addition to the seasonal context offered to us by the noble Lord, Lord Cormack, my noble friend Lady Chakrabarti reminded us that tomorrow is Human Rights Day.

Only two weeks ago, the Home Secretary admitted that we have “lost control” of our borders. In that loss of control, we have a gridlocked asylum system: 144,000 people are awaiting an initial decision on their asylum applications. For six months or more, 70% have been unable to work, to access key services or accommodation and, most importantly for a significant proportion of these people, to live without the fear and torment of being sent back at the risk of persecution and torture. Over a third are from five countries with grant rates of 80%, meaning they will likely have a legitimate claim to asylum.

As the noble Lord, Lord Carlile, emphasised, within this appalling chaos, there are children at risk. In the year to September, of those who applied, over 14,000 were children, including 5,152 who were unaccompanied, and far too many have gone missing and disappeared, including 39 child refugees in Kent. The Home Office has a legal duty to safeguard the welfare of those children, which it is failing to do. Not only have children gone missing but there was a 212% rise in age disputes this past year. It is worth emphasising that the Home Office policy on this was revised so that those who look “significantly over 18” are treated as adults, a policy which has resulted in children as young as 14 being placed in immigration detention or alone in adult accommodation facing significant risk of harm. That is a breach of our duty of care and of the provisions of the UN Convention on the Rights of the Child and our own consequent legislation.

I will now ask the Minister a question that he must have anticipated. I will quote Tim Loughton’s question before the Home Affairs Select Committee on 23 November. He role-played as follows:

“I am a 16-year-old orphan from an east African country escaping a warzone and religious persecution, and I have a sibling who is legally in the United Kingdom … What is a safe and legal route for me to come to the United Kingdom?”


If he is unable to better the Home Secretary’s floundering and seeming inability to provide a coherent answer and her Permanent Secretary’s offer that they should engage with the UNHCR—while, at the same time, admitting that there are many countries in Africa and, indeed, elsewhere where it is not possible to apply for asylum via the UNHCR—should we infer that the principles informing contemporary UK asylum and refugee policy are not in compliance with the refugee convention and that that is by design?

My final point is about the Government’s now-notorious Rwanda policy: an immoral policy that shames Britain. On the release of government documents about the process by which Rwanda was selected for the offshoring of asylum seekers, we saw the degree to which the then Prime Minister and the Home Secretary overrode the concerns of senior officials, their own equality impact assessment, the UNHCR, the British high commissioner in Rwanda and the UK’s Global Ambassador for Human Rights. So we have spent £140 million, but what have we received in return? The answer is: the prospect of years of ongoing litigation, disquiet among many of our key allies and partners, the disapproval of the UNHCR and other supranational agencies, and a further erosion of our reputation for compassion and adherence to international law.

In its latest country report, the US State Department said that among the things that characterise Rwanda are arbitrary detention, ill treatment, torture in official and unofficial detention and the fact that fair trial standards are routinely flouted. Last Sunday, the US Secretary of State called President Kagame. He reported having

“discussed credible reports indicating that Rwanda continues to support the M23 rebel group and has its armed forces inside the DRC”.

In an Oral Question yesterday in your Lordships’ House, the noble Lord, Lord Goldsmith, twice reminded us that this egregious behaviour in sponsoring conflict in a neighbouring country undermines peace efforts and is causing insecurity and significant human suffering there, so much so that the FCDO has raised its concerns at the highest levels with Rwanda. How do our assessments of the robustness of judicial systems, the likelihood of arbitrary arrest and the propensity for agents of the state to use torture in Rwanda differ from that of the US State Department? I am interested to know whether we have a superior methodological practice that might explain this disparity in outlook.

Of course, the Government are right to emphasise the importance of breaking the grip of people smugglers, but there is no evidence at all that the Rwanda policy will accomplish that. Since it was announced, the number of arrivals has gone up, not down. Cynics may be forgiven for thinking that the Government are happy to invest money in a policy that is purely symbolic. Small boat arrivals continue at record levels, due in part, at least, to a lack of safe and legal routes for asylum. We face significant systemic challenges to our immigration and asylum systems, and it is time we confronted them constructively and not just symbolically. I welcome this debate as a step towards doing exactly that, and I commend the most reverend Primate’s proposals as a good starting point, particularly when they are read in the context of the detailed interviews with my right honourable friend Yvette Cooper.

Metropolitan Police: Crime and Misconduct

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Thursday 1st December 2022 Lords Chamber

[Lord Browne of Ladyton (Lab)]

My Lords, it is a pleasure to follow the noble Lord, Lord Gold, and I thank him for sharing his experience with us. Like others, I want to take the opportunity to thank the noble Lord, Lord Lexden, for securing this important debate. These issues affect millions of people’s lives every day. I commend him also for in a short time—10 minutes—making a compelling case for action now. In a sense, the rest of us are just corroborating witnesses to his introduction.

The thread that links together the concerns we have heard is accountability and it takes many forms: the accountability of those guilty of misconduct, of senior officers, including the Commissioner, to the Mayor of London and to the Home Secretary, and of all police officers to the public they serve. Surveys reveal that public confidence in the police has been in a downward trend from 2017.

Today, I want like others to focus on the accountability that the Government face for political decisions that may have exacerbated, and in some cases have exacerbated, the difficulties faced in holding to account officers guilty of misconduct and, much more importantly, ensuring that those likely to commit offences are debarred from joining the police force in the first place.

A key principle of good government is consistency. The last decade of Conservative Government—first in coalition and then straightforwardly—has seen an approach wildly at variance with that principle. Police numbers have been slashed: 23,500 police were cut because of the political decision to pursue austerity-related measures, only to be followed immediately by two years of equally grave announcements of the urgent necessity to increase police numbers back to the level at which they existed in 2010.

In the year to March 2022, we saw the hurried recruitment of over 12,000 new police staff, on top of a record increase the previous year. That extraordinary staff churn not only compromised the institutional memory of police forces up and down the country but exacerbated already weak vetting and disciplinary processes, as well as appalling and systemic levels of misconduct and crime among serving officers.

This is not just a problem for the Met. The Conservative PCC for Bedfordshire described the vetting process as being “massively overwhelmed”. The chair of the National Police Chiefs’ Council said that the process is overwhelmingly manual and that it must become automated for it to be appropriate for modern procedures. The HMIC recommended that the system be made more coherent, with mandatory procedures put in place in all forces.

On 2 November, reporting on his investigation into vetting, Matt Parr revealed that, of the 725 files examined, in 131 the decision to grant clearance was at least “questionable”. He found successful applicants who had criminal records, had been suspected of serious crime and had family links to organised crime or substantial debt. He found serving officers who had attracted allegations of serious misconduct who had transferred to the Met from other police forces across the country. His report also revealed significant faults with misconduct investigations into serving officers, some of whom had gone through these inadequate vetting procedures. In a fifth of cases he examined, in a masterpiece of understatement, he described himself as “unimpressed” by their decision-making. In previous statements, the inspector criticised the promotions system in the police as “inconsistent”, “ineffective” and “unfair”.

Clearly, there are structural weaknesses throughout policing: a vetting system that is weak and inconsistent; a defective complaints system allowing a minority of serving officers, with impunity, to create a toxic work culture riddled with corruption, casual racism, homophobia, misogyny, prejudice and a lack of care and sensitivity towards victims of violence against women and girls; and a promotions system which is far from meritocratic.

There are many hard-working and principled officers who remain within the system—including Sir Mark Rowley, the focus of this debate, and others—and I hope the Government will give serious thought to how they can best aid them in improving the institutional resilience and culture of our police service nationwide.

Scammers

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Tuesday 15th November 2022 Lords Chamber

[Lord Sharpe of Epsom (Con)]

I absolutely agree. I also point out that banks are heavily involved with the awareness campaigns. Many noble Lords will no doubt have seen a recent advert put out by Santander to stop scammers which features Ant and Dec, when they are not busy in the jungle. Also, the Scams Prevention and Support Programme, delivered by Age UK and funded by Lloyds Bank, is aimed at older people and helps them to spot and understand scams, and to take action to protect themselves from becoming a scam victim. Of course, I also agree that it is emotionally devastating to be a victim of these crimes.

[Lord Browne of Ladyton (Lab)]

My Lords, today the National Audit Office published a report on fraud, which says in terms that the Government do not have the data they need to understand the full scale of the problem and are unable accurately to measure the impact of their own policies on this growing area of crime, which is 41% of crime in this country. A spokesperson for the Government said, as we can expect:

“This government is absolutely committed to cracking down on fraud and economic crime”


and that the NAO’s recommendations will be “reflected” in the “upcoming fraud strategy”. What on earth use is a fraud strategy based on data that is now six years old?

[Lord Sharpe of Epsom (Con)]

My Lords, the noble Lord is quite right: the Home Office is leading work on a fraud strategy. The Prime Minister referred to it in the other place as recently as 2 November. We intend to publish on that shortly. It will consider all the possible tools required to go after fraudsters and to protect those who are most vulnerable. The strategy’s other aims will be to stop and block frauds being carried out, and to improve law enforcement. Considerable money is being invested in improving data collection, as well as law enforcement capability.