Cabinet Manual
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(1 month, 1 week ago)
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Baroness Neville-Rolfe (Con)
I hear what the noble Baroness says. Indeed, we have made it clear that draft material will be made available to both the Constitution Committee and PACAC in the other place before the second version of the Cabinet Manual is finalised.
Lord Foulkes of Cumnock (Lab Co-op)
Our Constitution Committee, of which I am a member, in the same report in which we recommended the revision of the Cabinet Manual, also welcomed the promise by the Cabinet Secretary to rein in improper expenditure by the Scottish Government. That has still not been done. Will the Minister tell the Cabinet Secretary, Simon Case, that if he does not do it soon, I will find every opportunity to raise the issue again and again?
Baroness Neville-Rolfe (Con)
I will make two points. First, I told the noble Lord that we were looking at this issue and that we might issue guidance on the subject, because the Cabinet Manual is about bringing conventions and rules together, rather than creating them. Secondly, much of the Cabinet Manual is on matters specific to the UK Government and reserved matters. However, my noble friend the Foreign Secretary—to mention him again—has written to the First Minister of Scotland about the importance of a reserved area for foreign affairs and how that should be conducted.
Scottish Government: Devolved Competences
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(1 month, 2 weeks ago)
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Lord Foulkes of Cumnock
To ask His Majesty’s Government what discussions they have had with the Scottish Government regarding any activities it is undertaking that fall outwith its devolved competences.
The Minister of State, Cabinet Office (Baroness Neville- Rolfe) (Con)
My Lords, I start by welcoming my noble friend Lord Cameron of Lochiel and congratulate him on his recent appointment. I am sure he will prove to be a valuable Member of this House, and I look forward to working with him on all these issues.
It is a matter of public record that my right honourable friend the Foreign Secretary wrote recently to the Scottish Government to raise concerns about the need for FCDO representation when their Ministers were meeting overseas Governments. More broadly, as I set out in the House last month, the Government are also in the process of considering what further guidance may be needed for civil servants working in the devolved Administrations.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, that is all very well, but there is fury all over Scotland at the Scottish Government spending money outwith their responsibilities, particularly on vanity projects and jaunts overseas, while the services at home for which they are responsible are being cut again and again. I have had promises from the Cabinet Secretary himself that action is going to be taken. I have had Minister after Minister, including this current one, say that they are sympathetic to the point I am raising. When is someone going to grasp the nettle—I suppose grasp the thistle is more appropriate—and take some real action? If it is the noble Lord, Lord Cameron of Lochiel, then I will welcome him. Somebody has got to take action to stop this abuse of taxpayers’ money.
Baroness Neville-Rolfe (Con)
I hope the noble Lord, Lord Cameron, and myself will be able to take on the challenge of the thistle. I reassure the noble Lord that there have been official-level discussions on these matters, as you would expect. I am afraid that it would not be appropriate to provide a running commentary, but I will update the House in the coming months on the outcome of this work.
Devolved Authorities: Expenditure outwith Competences
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(2 months, 3 weeks ago)
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Lord Foulkes of Cumnock
To ask His Majesty’s Government whether they expect to receive a report from the Cabinet Secretary on the arrangements for ensuring expenditure by the devolved authorities is spent in accordance with their competences and, if so, when.
The Minister of State, Cabinet Office (Baroness Neville-Rolfe) (Con)
The Government agree with the House of Lords Constitution Committee that the principle of a single Civil Service across England, Scotland and Wales should be maintained. The Government are in the process of considering what further guidance may be required for civil servants working in the devolved Administrations. I anticipate that this process will be completed in the coming months.
Lord Foulkes of Cumnock (Lab Co-op)
But my Lords, it is now more than six months since Simon Case gave that commitment to the Constitution Committee. We have had fine words from the Dispatch Box—we have them again today—yet the Scottish Government have actually intensified their spending on reserved areas, with a campaign for independence, overseas embassies and a whole range of other things, as if they are deliberately defying the UK Government. When will the Government at last take their courage in their hands and take some action on the ground to back up their fine words?
Baroness Neville-Rolfe (Con)
I know there are strong feelings about this, and people in Scotland want both their Governments to concentrate on the issues that matter most to them: growing the economy, gripping inflation and improving public services. On the point about timing, as I said, the Government only recently, on 24 January, responded to the committee’s inquiry, reiterating the work that is under way. I am delighted that the Cabinet Secretary is back; these issues are being given active consideration.
Cabinet Manual
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(9 months, 1 week ago)
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Baroness Neville-Rolfe (Con)
I thank my noble friend. As I explained, it is to some extent an outline document. There is guidance on ministerial correspondence, which he may not be aware of; I will certainly send him a link to it.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, when the last Cabinet Manual was considered and the Scotland Act was passed through both Houses of this Parliament, it was never envisaged that a Scottish Government would stray into reserved areas, as they are now doing. Therefore, there are no sanctions that the UK Government can impose on that kind of action. Could this be considered when the Cabinet Manual is revised?
Baroness Neville-Rolfe (Con)
I will certainly take that point away. It is obviously a UK Government document; it is signed off by UK Ministers, who are accountable to the UK Parliament. However, one of the revisions that will be needed relates to the changes in the devolution settlements. I think there have been two Wales Acts and two Scotland Acts since the manual was last revised.
Covid-19 Inquiry
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(10 months, 4 weeks ago)
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Lord Foulkes of Cumnock
To ask His Majesty’s Government what range of information they have now agreed to provide to the COVID-19 inquiry.
The Minister of State, Cabinet Office (Baroness Neville-Rolfe) (Con)
My Lords, we have provided, and will continue to provide, the inquiry with all relevant material as requested. Following the request of the chair, the Cabinet Office will share a schedule of WhatsApp messages by the end of this week, and additional witness statements will follow. We have provided enormous quantities of material to the inquiry so far and will continue to do so. We remain determined to provide any potentially relevant material that the chair requests so that we can learn the lessons from this dreadful pandemic.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, this is a total shambles—and there is more to come. As well as this totally futile dispute, I understand that the noble and learned Baroness, Lady Hallett, has met with Lord Brailsford, who is chairing the separate Scottish report. Members will recall that the separate guidance and response in the different countries of the United Kingdom caused confusion and distress. Two separate reports could cause additional confusion and distress. Will the Minister give a clear indication as to when the reports will be published so that those whose relatives died needlessly will know who was responsible?
Baroness Neville-Rolfe (Con)
It is indeed the case that the Scottish Government are doing their own separate inquiry, and they organised separate arrangements during the pandemic. The inquiry is in the hands of the noble and learned Baroness, Lady Hallett. She is doing a very wide-ranging inquiry, and the timing of its results depends on her work, which, as I have explained, we are trying our very best to progress. We are providing a huge amount of support from right across government.
Security of Government Devices
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(1 year, 1 month ago)
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Baroness Neville-Rolfe (Con)
I do not have anything to say specifically on the review of the Ministerial Code; it is of course kept under review, and we now have a new ethics adviser. These sorts of matters are certainly being considered in the context of the new guidance on the use of non-corporate forms of communication, and I look forward to making a public statement on that in the not too distant future.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, the Minister said in reply to a question from my noble friend on the Front Bench that Ministers are given security advice. But that is useful only if they take notice of the advice they are given. How can we believe that they do that, when Boris Johnson, when he was Foreign Secretary, went to parties in Italy as a guest of Alexander Lebedev, and then later on promoted Alexander Lebedev’s son, Evgeny—the noble Lord, Lord Lebedev—to the House of Lords, against the advice of the security services? Surely that gives some evidence that he may well have been compromised.
Baroness Neville-Rolfe (Con)
I always resist commenting on individual cases. Of course, that comment does not necessarily take account of the steps we have made on briefing Ministers, including new Ministers, on security matters. The evolution of social media has been beneficial in many ways; I am sure that noble Lords use it for non-security matters, and we believe that that is perfectly all right on people’s private phones as a complement to the use of government phones for government business. We are very clear that, where people use private phones for government business because they cannot do anything else, it is important that substantive government exchanges are passed on to the private office or elsewhere, so that they are added to the public record. You have to have a balance in this system; we have to have rules which make sense and respect security but are also workable.
WhatsApp: Ministerial Communications
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(1 year, 1 month ago)
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Lord Foulkes of Cumnock
To ask His Majesty’s Government what assessment they have made of the extent of the use of WhatsApp for ministerial communications.
The Minister of State, Cabinet Office (Baroness Neville- Rolfe) (Con)
Ministers use a variety of channels of communication. This may include non-corporate communication channels as well as conversations in person and telephone calls, as has long been the case. Arrangements and guidance are in place for the management of such communications to ensure that official records are kept where it is considered necessary for good governance, but it remains the case that official decisions are made and recorded through proper processes, including ministerial boxes and Cabinet committees.
Lord Foulkes of Cumnock (Lab Co-op)
My Lords, I am really grateful to the Minister for her very helpful reply. However, is there any evidence that Ministers are using WhatsApp for government business on their personal phones rather than their work phones? Also, are they using the so-called “disappearing messages” that are removed after a set period, and, if so, is that consistent with government rules about record keeping? If the Minister is not able to deal with all those points today, could she write to me?
Baroness Neville-Rolfe (Con)
Of course. As I have said, if communications are substantive in nature, they need to be captured on government systems. But there is no requirement to retain every single communication, and that would include social media. As to disappearing WhatsApps, we will be producing new guidance shortly on the use of WhatsApp and other forms of communication, and that will include advice on the use of the facility for disappearing. As I have said, formal decisions must be recorded, but existing policy requires ephemeral and trivial information to be deleted.
Peerages: Letters Patent
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(1 year, 5 months ago)
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Baroness Neville-Rolfe (Con)
I am so grateful to my former boss for that excellent point of clarification. I shall listen very carefully throughout the Norton debate, and bear in mind the need to look at the detail and be very careful.
Lord Foulkes of Cumnock (Lab Co-op)
May I suggest that the Minister visit the Members’ Cloakroom downstairs, where she will see eight red boxes containing seals that have not been collected by a number of Peers, including the noble Lord, Lord Lebedev? Would one way of achieving the excellent proposal from the noble Lord, Lord Burns, for reducing the size of this House be to find a way to get rid of the Peers who fail to turn up regularly without reasonable excuse?
Parliament: Deferred Peerages
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(1 year, 5 months ago)
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Baroness Neville-Rolfe (Con)
She was an MSP—but the point is that she was nominated in Boris Johnson’s Dissolution List of 31 July 2020 and her Letters Patent, to respond to the noble Lord, were issued on 16 July 2021. She was introduced to the House later that month.
Baroness Neville-Rolfe (Con)
The point I was making right at the beginning, which I will reiterate, is that the Government are aware that there are some precedents for individuals delaying taking up their seats. However, this is limited and related, as in this case, to particular circumstances.
Immigration White Paper
Debate between Lord Foulkes of Cumnock and Baroness Neville-RolfeClimate Change: Fracking
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(7 years, 7 months ago)
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Baroness Neville-Rolfe
I think the key thing is to have a proper regulatory system of controls. We have learned from US experience in setting up our system. We are also focused on all the Kyoto basket of gases, which includes methane. I assure the noble Baroness that that is an important part of our thinking. But I return to my first point, which is that we need a mix of energy in the transition to 2050.
Lord Foulkes of Cumnock (Lab)
My Lords, will the noble Baroness try again to answer the question of my noble friend Lady Royall: what amount of leakage is acceptable?
Baroness Neville-Rolfe
I think this is a matter for the experts concerned in the particular circumstances. Our regulatory system is site specific. You go to the particular site and work it out. Clearly, you want to minimise the emissions of all six of the Kyoto basket of gases. I think that would be an agreed objective.
Consumer Protection: Online Ticketing
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe
Baroness Neville-Rolfe
I think my noble friend’s comment shows how careful people have to be. Of course, the Euro 2016 tickets are not covered by this legislation. One of the good things in Professor Waterson’s report is a list of hints and tips to help consumers. I should not anticipate our response but I hope that the project group will move forward in that area.
Lord Foulkes of Cumnock (Lab)
Might the Minister look into whether we can learn from practice in other countries—Iceland, for example?
Baroness Neville-Rolfe
The ticketing system underpins the success of our events and our tourist events, in music as well as in sport, and I am sure the secondary sites will be a good source of tickets for Icelanders as they progress through the tournament.
Nuisance Callers
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe
Baroness Neville-Rolfe
Caller identification can work, and more and more phones now have that option. We have allocated £500,000 of the fund set up by the Chancellor to the National Trading Standards scams team to provide call-blocking devices to vulnerable people. Generally, we are putting more money into awareness campaigns. Nuisance calls are a blight for the elderly, and this is an area where we all need to work together to try to do something about it.
Lord Foulkes of Cumnock (Lab)
My Lords, I congratulate the noble Baroness, Lady Seccombe, on her clairvoyance in putting down this Question so timeously, but I say to the Minister that it is not just a matter of calls from unscrupulous people and criminals, nor just a matter of calls to the elderly and vulnerable people. All of us are getting call after call, day after day, week after week, and we are getting fed up with it. What is the Minister going to do about it?
Baroness Neville-Rolfe
As the Minister, I share the noble Lord’s frustration and am gradually trying to do something about it. We have raised the fines and are changing the regulations, and the evidence from Ofcom is that the volume of unsolicited marketing calls has fallen as a result. But of course there is more that we have to do.
Intellectual Property
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe
Baroness Neville-Rolfe
I have no wish to adopt the US system here. We are working hard to improve the arrangements on a worldwide basis. Copyright is 70 years —that has been agreed internationally. People have different views as to whether that is right or wrong but it helps our creative sector enormously.
Lord Foulkes of Cumnock (Lab)
My Lords, with no disrespect to small businesses which suffer from losing intellectual property rights, does the Minister agree that it is even more worrying and tragic when employees lose their pension rights because of the actions of a magnate—an entrepreneur—with no concern for the rights of their workers, such as Sir Philip Green?
Baroness Neville-Rolfe
Obviously, I share the noble Lord’s concern about pension rights. There was a lively debate in the other place on this issue yesterday which merits reading.
Trade Union Bill
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe
Baroness Neville-Rolfe
I think the arrangements on nuclear decommissioning are still under consideration. I can certainly come back to the noble Lord on the question of past disruption. It is clearly an area where it does seem important that strikes should not be entered into lightly. As I have said, there will be regulations, they will be subject to the affirmative procedure and this is on the list with good reason. The noble Lord will understand that we are looking very carefully at the arrangements and we have not come to a final view. I am sorry that on the question of timing I cannot give a firm answer, but I can say that we will be bringing an affirmative resolution forward.
Lord Foulkes of Cumnock (Lab)
But surely all the private schools—or as you call them in England, public schools—are even more important. If the teachers go on strike in them, where are we going to get our Prime Ministers or our Chancellors of the Exchequer from? It would be an absolute disaster for this country if the teachers in those schools, a lot of whom are untrained, did so. The Minister has misrepresented and misunderstood the dangers that we would face.
Baroness Neville-Rolfe
I am very sorry to disappoint the noble Lord but there is no evidence of strike action in those institutions having a major impact or, I think, of strike action at all. I am seeking to explain the difficult decisions that we have taken and set out in our consultation paper for the benefit of the House this evening. Perhaps I may continue, as it is getting late.
I believe members of the public would agree that strikes in the crucial services that I have outlined should take place only when there is a reasonable level of support. Restrictions on Article 11 of the European Convention on Human Rights are permitted where they are justified by a legitimate aim and are proportionate. The courts have made it clear that they will respect the margin of appreciation accorded to each national Government to decide on industrial relations policy. I hope I have assured noble Lords that we have thought carefully about where the threshold should apply, and that the specified services are justified.
“Essential services” of course means something very different. They are referred to by some of the reports of the ILO supervisory bodies in respect of services where it may be legitimate in certain situations to limit or prohibit strike action. Amendments 5, 10, 12 and 13 would wrongly align the 40% threshold with the ILO’s interpretation of “essential services”. The threshold is about ensuring that strikes can go ahead if they have a strong democratic mandate; it does not prohibit strikes. The Government have therefore deliberately chosen the term “important public services” to describe the services covered by the 40% threshold.
Baroness Neville-Rolfe
My Lords, I thank noble Lords for the debate and note the passion that has been expressed. I am particularly grateful to the noble Baroness, Lady Morgan of Ely, and to the noble Lord, Lord Hain, for the useful meeting we had last week and for the trouble that they took in taking me through how they see the impact of this Bill applying to devolved public services and public bodies in Wales. I thank the noble Baroness for explaining the legislative consent Motion debate in the Welsh Assembly that took place two weeks ago, for giving her views of the implications this evening, and for reminding us of the forthcoming elections in Wales, where, last year, this party made good progress. I thank the noble Lord, Lord McAvoy, for doing the same service this evening for Scotland.
The Bill will ensure that strike action can go ahead only with a strong and recent mandate from union members. It will increase protections for non-striking workers against intimidation, and increase transparency for union members and taxpayers. It will create an appropriate regulatory environment for unions. It is clear that the benefits this will bring to the wider public should apply consistently across the whole of Britain.
Employment and industrial relations law are clearly reserved matters, as has been said, under the devolution settlements with Scotland and not conferred in Wales. The noble Baroness, Lady Morgan, referred to the Supreme Court judgment in the Agricultural Sector (Wales) Bill, where the court held that the case relates to multiple subjects and thus fell within the competence of the Welsh Assembly. The Supreme Court ruling concerned a completely different situation, where the devolved subject of agriculture was specifically in play. By contrast, this Bill has nothing to do with the regulation of public services. It is squarely concerned with industrial relations and how trade unions are regulated.
The issue of competence is a fact-specific question that can be answered only by careful analysis of the statutory and factual context. In another Supreme Court case in the area of deciding the competence of the Welsh Government—re recovery of medical costs—the Supreme Court followed the same approach as in the agricultural sector case, but came to a completely different conclusion. It decided that the area in play was not devolved.
It would be unworkable to have different employment laws applying in the different jurisdictions in Great Britain. This was recently considered by the Smith commission for Scotland, and it concluded that employment and industrial relations law should remain reserved.
The noble Baroness, Lady Morgan, asked about legal advice. As noble Lords would expect, the Government have taken legal advice on the measures in the Bill relating to a number of areas. The Government do not, as she probably knows, disclose such advice; nor do we comment on leaked documents. The Government are committed, in implementing the Trade Union Bill, to fairly balance the right to strike with the rights of millions of people to go about their normal lives. Having said that, it will come as no surprise to noble Lords that I am always keen to explore areas of potential agreement, but the measures before us do reflect our manifesto and were supported by a clear majority in the elected Chamber.
The noble Lord, Lord Hain, said that he was less interested in the substance of the Bill than in the constitutional issues. As it is late, I will not go through the amendments clause by clause—although I can respond if that is wanted. I just point out that many employers will have staff across some or all of these regions. Business leaders have rightly raised concerns that this could create administrative complexities and could result in differential treatment of different groups of employees. This is not a matter of minute detail. The Government’s objective is to drive productivity and growth across the United Kingdom. These amendments could generate a lot of confusion and additional costs for both employers and unions and make it more complex for businesses to expand into other regions.
The Trade Union Bill is not the right forum for pushing forward the frontiers of the devolution settlements. Employment and industrial relations are reserved matters and the Bill, which deals with employment and industrial relations law, should respect that.
Lord Foulkes of Cumnock
Before the Minister closes the debate, she has not dealt with my suggestion, which comes from the Scottish Executive, that, at the very least, regulation-making powers for check-off and facility time might be given to Scottish and Welsh Ministers. That does not take away our powers here in the United Kingdom Parliament over employment law. We are still making the law; all that we are saying is that these regulation-making powers for those two areas should be given to Scottish and Welsh Ministers. If the Minister really is in listening mode, she does not need to agree to that today; all she needs to say is that she will look at it, discuss it with her colleagues and come back on Report.
Baroness Neville-Rolfe
My Lords, in the tradition of this House, I do not want to close the debate without saying that we are open to further discussion. We are, of course, open to discussing implementation of the Trade Union Bill in Wales and Scotland. To answer, as far as I can, the questions from the noble Baroness, Lady Randerson, and the noble Lord, Lord Wigley, my colleague Nick Boles spoke only last week to Roseanna Cunningham, Cabinet Secretary for Fair Work in the Scottish Government, and to Leighton Andrews, Minister for Public Services in the Welsh Government; both “stars” who have already featured in this evening’s debate. Of course, discussions are still going on in the context of the Scotland Bill, which is being scrutinised by a Committee of this House, and the draft Wales Bill, which the Government published in October. They are also part of a complex picture and need to be taken into account.
My Lords, it is late, we have discussed this at length and I ask noble Lords to withdraw their amendments.
Small Business, Enterprise and Employment Bill
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe
Lord Foulkes of Cumnock (Lab)
Before we begin the main business of the day, anyone wishing to participate in my QSD on Thursday about the ridiculous practices and procedures in this House will have found a great deal of evidence in our proceedings so far.
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Baroness Neville-Rolfe) (Con)
My Lords, I start by saying that I am delighted to see my noble friend Lady Harding of Winscombe and am much looking forward to her maiden speech.
Over 200 years ago, Napoleon said that the British were a nation of shopkeepers. He was nearly right. If he had expanded his vision slightly and said that Britain was a land of small businesses he would have been spot on. Small businesses have always been the lifeblood of our economy—and recently there has been some good news. At the start of 2014, there were a record 5.2 million small businesses in the UK, 7% more than at the start of 2013, representing the largest annual increase in the business population since the business population estimates began in 2000.
The coalition Government have led the way in their support for small business. Among the measures taken are the cut in corporation tax from 28% to 20% by 2015, the doubling of business rate relief for small firms and the doubling of the annual investment allowance. But we recognise that it is not sufficient just to offer help. People also need to be able to discover easily what help is available. We have therefore streamlined the support though the GREAT business website, giving a single point of access for advice. Similarly, we will bring together schemes for small firms into a single service, so they can access a wide range of support in one place, tailored to their needs.
The Bill before the House builds on the Government’s commitment and is designed to make the UK the best place in the world to start and grow a business. I will briefly tackle the content of this long Bill using five broad themes: making life easier for small business; improving the climate for business; improving company transparency to deliver on our 2013 G7 commitments; encouraging better employment practices; and—to pubs—helping beer drinkers and the publicans who serve them.
On my first theme, helping small businesses, one of the most daunting things for a small business is to start trading as a company. The Government propose to make the whole process easier by streamlining the company registration process, and the Bill requires this to be in place by May 2017. Especially since the economic downturn, another key challenge for businesses starting up or trying to grow is securing the finance that they need. The Bill promotes greater competition in the banking sector by opening up the market to alternative finance providers. Some 71% of small businesses approach only one finance provider when seeking finance. The Bill will require the big banks to share information on small businesses that they reject for finance with online platforms, when the small business would like them to do so. This will help them gain access to alternative finance providers.
Nine out of 10 small businesses still use paper cheques. The Bill will provide for electronic imaging via smartphones and other mobile devices, allowing cheques to be deposited remotely, thereby speeding up the process in the banks, in addition to—not, of course, separate from—more traditional methods. This will dramatically reduce clearing times, from up to six days at present to less than two, increasing convenience and providing net benefits of nearly £94 million a year.
Cash flow is particularly crucial for small businesses and is often the difference between success and failure. It is not right that small and medium-sized businesses are, according to figures published by the Experian payment performance index in July, owed nearly £40 billion in late payments. This affects 60% of UK small businesses, with the average small business waiting for over £38,000 in overdue payments. The Bill introduces measures that will give small businesses more information on what payment practices to expect from their customers. These changes will incentivise larger companies to improve their payment policies and practices. Business representative bodies, including the Federation of Small Businesses and the Confederation of British Industry, have welcomed this work.
We should not forget the public procurement market. It is worth £230 billion and is important to small business. Alongside other measures being brought forward through secondary legislation in the new year that will transpose the new European Union procurement directive into UK law, the Bill will further help small businesses to access public procurement opportunities. The measures will extend across the public sector, including local authorities and the NHS, and make an important change for small business.
My second theme is the business climate. This Government’s regulatory reform agenda has been at the heart of making the UK one of the best places in the world to do business. The World Bank’s Doing Business 2015 report ranked us eighth out of 189 economies—an improvement in our performance of two places on the previous year. Within the European Union we are behind only Denmark. We have reduced the annual cost of domestic regulation by over £1.5 billion since January 2011. For new regulations, our “one in, two out” policy seems at last to have led to something of a culture change in Whitehall. I have known and worked in Whitehall for nearly 40 years, in one form or another. The Bill will strengthen small businesses’ confidence in government by introducing a business impact target to be set at the beginning of each Parliament, which the Government will report transparently on. It will be used for the independent scrutiny of economic impact assessments related to this target.
Where regulation is essential, we know the regulators implementing it do not always enforce it properly; 63% of businesses have, at some point, disagreed with a regulator’s decision, but have never appealed. The Bill provides for small business appeals champions to be established in the non-economic regulators—ranging from the Environment Agency and the Health and Safety Executive to bodies such as the DVLA—to improve the handling of complaints and appeals and, most importantly, to ensure that the process works, particularly for small business. For the financial services sector, the existing independent Complaints Commissioner will be required to report annually on the regulator’s complaint-handling procedures.
There are 2.9 million home businesses in the UK and they are of growing importance to the economy, with an increase of 500,000 in their number since 2010. The Bill will amend the Landlord and Tenant Act 1954 to ensure that starting a business from home will not create a business tenancy, thereby encouraging further growth in this thriving sector.
The business community, along with all parents in employment, needs access to good-quality and flexible childcare. The Bill will make it easier for schools and other providers to offer more early education and childcare. The measures will promote a prosperous and growing market to meet the needs of working families.
The UK labour market is also dependent on having a properly skilled workforce to meet its demands. Until now, Governments have not done enough to track a person’s progress through their school life and into the labour market. The Bill will enable the effectiveness of education providers in preparing pupils for employment to be assessed. The additional data we will secure will be invaluable to young people and their parents, and will focus educators on employment outcomes, as well as performance tables.
My third theme is company law. As I have said, the UK is an outstanding place to start and grow a business. However, there is a clear link between illicit financial flows and company structures. Measures in the Bill will therefore help ensure that UK companies are not used to facilitate criminal activity, such as money laundering and tax evasion. The Bill will establish a register of “people with significant control” over each company, increasing transparency around who ultimately owns and controls UK companies. The Bill will abolish bearer shares, directly removing an easy means of facilitating illegal activity. This meets an important G7 commitment. At the same time, we are simplifying the current filing requirements for companies, removing duplication and improving the accuracy and integrity of our public companies register.
Unfortunately, a natural consequence of a competitive market is that sometimes some businesses become insolvent. The Bill makes a number of changes that strengthen and modernise our insolvency regime.
My fourth theme is encouraging better employment practices. Part 11 of the Bill deals with these matters. We should not forget that this Government have secured great achievements in job creation. There are now more than 30 million people in employment, which is a record high. Since 2010, an additional 2.1 million private sector jobs have been created. Within these totals, small businesses employ an estimated 12.1 million people. Therefore, for small businesses to succeed we must ensure that those employed are treated fairly and that businesses playing by the rules are not disadvantaged by those which do not.
The Bill will provide assurances to people who step forward and whistleblow that action will be taken. Last year, a report by the University of Greenwich and Public Concern at Work found that 75% of whistleblowers believe that nothing was done about the wrongdoing they reported. The Bill will require regulators or professional bodies dealing with whistleblowing to publish an annual public report.
The Bill will also improve confidence in the ability of the employment tribunal system to deliver justice by incentivising payment of awards and addressing the current position that there are no significant consequences for non-payment. The Bill will also reduce the delays in the tribunals process caused by frequent postponements, addressing the costs to business that often arise from these delays.
The Government are committed to ensuring that employers are penalised if they fail to pay the national minimum wage to their workers. On 7 March this year we increased the penalty percentage from 50% of total underpayments owed to workers to 100% and the maximum penalty from £5,000 to £20,000. The Bill goes further: it sets the maximum penalty to apply on a per-worker rather than per-notice basis.
Finally on employment, I know that there are strong views in this House on zero-hours contracts. Used correctly, I believe that such contracts support business flexibility and they are often welcomed by those employed on them. Recent research carried out by the Chartered Institute of Personnel and Development suggests workers on zero-hours contracts are more content than their counterparts in permanent employment. However, we want to make sure that these contracts are not abused and we recognise that exclusivity clauses sometimes included in zero-hours contracts are wrong, as they prevent people seeking work elsewhere. This is not in line with free-market or any other type of economics. I am pleased that the Bill addresses the problem by making such clauses invalid.
Finally, I turn to the subject of pubs. In my immediate family there are five adult males and me. That fact has many important consequences, one of which is that the majority view of the family is very much in favour of pubs. The pub industry makes a significant contribution to the UK economy. It is made up of many small businesses run by hard-working people and employs hundreds of thousands of people. While it is an industry which has suffered due to societal change, it contributes substantially to community spirit and cohesion, and it is one that we want to see grow and flourish.
The Bill will address the imbalance in bargaining power between pub-owning companies and their tied tenants to ensure that the latter are treated fairly and are no worse off than they would be if they were free of tie. For the first time, tied tenants will have a statutory code that they can rely on, based on the industry’s own voluntary code. It will be enforced by an independent adjudicator, who will have real sanctions at his or her disposal.
Noble Lords will be aware that this issue has a long history. Over the course of a decade there have been four Select Committee investigations into unfairness in the relationship between pub-owning businesses and their tenants. The Government have received, and continue to receive, a huge amount of correspondence from tenants about problems in their relationship with their pub-owning business. Research by the Campaign for Real Ale appears to show that 57% of tenants tied to large pub companies earn less than £10,000 per year, compared with just 25% of tenants who are free of tie.
Industry self-regulation has brought a number of improvements, and there is evidence that there is much responsible practice in this industry, yet some tied tenants continue to face unfair treatment and hardship. The Government gave self-regulation ample opportunity to succeed but the truth is that it has not delivered.
Noble Lords will know that there was much lively debate on this subject in the other place. Members there voted against the Government to include in the Bill a market rent only option. This provision requires large pub-owning companies to offer their tied tenants the right to go free of tie in certain circumstances. The Government resisted this proposal partly on the basis that it could have unintended consequences for the sector. However, we recognise that a majority of Members in the other place believe strongly that pub-owning companies need the threat of tenants going free of tie before they will offer their tenants a fair tied deal. The elected Chamber has spoken by voting this into the Bill and the Government have listened.
On that basis, I can confirm today that the Government intend to accept in principle the introduction of a market rent only option. Our focus now will be on making this option workable to ensure that tied tenants are no worse off than free-of-tie tenants and to minimise the risks of unintended consequences, such as job losses.
Ticket Touting
Debate between Lord Foulkes of Cumnock and Baroness Neville-Rolfe(9 years, 5 months ago)
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Baroness Neville-Rolfe
The noble Lord is right to express concerns but I think the House needs to understand that we have brought in new regulations as recently as June, and we have been working with the online marketplaces so that consumers are protected. The four main resale sites now go way beyond what they used to do. They are refunding or replacing unusable tickets and working with the RFU and all the other sporting bodies to make sure that things are okay. I saw the RFU yesterday and was very impressed by the action it is taking for the 2015 Rugby World Cup in using anti-forgery designs and a ballot system. We have to make progress in the real world, where consumers want to get tickets and attend games and concerts.
Lord Foulkes of Cumnock (Lab)
My Lords, will the Minister confirm that the statistics she gave in her original Answer were for England and Wales? What discussions is she having with her counterparts in Scotland—which thankfully is still part of the United Kingdom—about co-operation and exchanging experience?
Baroness Neville-Rolfe
My Lords, I have so far not had discussions with Scotland on the Bill but I am very willing to engage and to do so. I thank the noble Lord for raising that excellent point.