Overseas Companies: UK-registered Subsidiaries

Lord Purvis of Tweed Excerpts

Monday 17th March 2025 Lords Chamber

[Lord Leong (Lab)]

I thank my noble friend for that question. As I mentioned in my earlier answer, the Government have appointed Tom Hayhoe as the Covid Counter-Fraud Commissioner. He will work across all government departments and will draw on the expertise of the Public Sector Fraud Authority, the Government Commercial Function and the Department for Health and Social Care, and will use every means possible to recoup public money lost in pandemic-related fraud and contracts that have not been delivered.

There is evidence to suggest that our standing within international public procurement has been diminished because of what happened during Covid. I assure my noble friend that the Procurement Act 2023 has improved and strengthened public procurement and will prevent all VIP lanes in the future. Section 42 of the Act will ensure that public contracts awarded via direct award will be for only a limited time.

[Lord Purvis of Tweed (LD)]

My Lords, on the concerns of the noble Lord, Lord Sharpe, about value, for any country that we have an FTA with, regardless of how restrictive its domestic procurement laws are, we have to afford it full access under our liberalised procurement laws. This is a concern. The Minister said he would be very happy to look at this, and I am glad he would. I had an amendment to the then Procurement Bill under the previous Government to try to prevent this, but it was knocked back by the previous Government. If the Minister has an open mind on how to resolve the Question of the noble Lord, Lord Sharpe, could it include looking again at the amendment I tried to persuade the previous Government to adopt?

[Lord Leong (Lab)]

What a question. I am afraid I was not in the House when what is now the Procurement Act was going through. Nevertheless, we will bring the noble Lord’s concern to officials in my department.

Hong Kong Democracy Activists

Lord Purvis of Tweed Excerpts

Thursday 6th March 2025 Lords Chamber

[The Minister of State, Home Office (Lord Hanson of Flint) (Lab)]

The answer to the noble Lord’s first two questions is yes. Representations have been made by my right honourable friend the Foreign Secretary at the highest level, and Ministers who have visited China have also made representations. We will continue to make representations on this matter because it is a serious issue, and the Government need to ensure that the Chinese know that there is widespread concern among the populace and the Government. On FIRS, the noble Lord will know that we announced yesterday that the state of Iran is being included in FIRS. The scheme will become live during the summer. We will keep all nations under review but at the moment our announcement has only been in relation to Iran.

[Lord Purvis of Tweed (LD)]

My Lords, I have met someone who has a bounty on them. This is clear transnational repression because it not only seeks to intimidate the person who has the bounty placed on them, which is a clear breach of our law, but is designed to intimidate family members and the wider community back in Hong Kong. Transnational repression needs to be rooted out totally from the United Kingdom. Therefore, there should be no encouragement to any of the state bodies that currently could have preferential access to key parts of the British economy, especially financial services. Will the Home Office Minister make sure that those Ministers who will visit Beijing seeking wider trade and investment with China are fully aware that any state enterprises that have any involvement, especially in a potential new embassy in London, will be committing not only a domestic legislation offence but transnational repression, which is an international crime?

[Lord Hanson of Flint (Lab)]

I am grateful for the noble Lord’s comments. He will know that the UK Government will challenge the Chinese authorities where we think there are transgressions; this is one of those occasions. We will also co-operate with the Chinese authorities when we believe that we can work together and trade with them when we believe it is appropriate. However, his points are valid.

On the embassy, a planning application is in and will be determined under planning laws like any other planning application. It will be with my colleagues in the department for local government. The Home Office have already submitted a security note on it, as part of the planning application, and that will be considered in due course. I reassure the noble Lord that we take this matter extremely seriously and representations have been made, and will continue, at the highest level.

India and Southeast Asia: Free Trade Agreements

Lord Purvis of Tweed Excerpts

Thursday 6th March 2025 Lords Chamber

[Lord Purvis of Tweed (LD)]

My Lords, I am very grateful to the noble Baroness for bringing this debate to us and the very sensible way in which she opened it. It is a regrettable fact, notwithstanding the excellent work of the noble Lords and noble Baronesses who have contributed to UK-India and wider regional trade, that we are punching below our weight when it comes to seizing the opportunities for trade in this area. It is just three years since the boosterism of what had been claimed would be a five-star agreement by Diwali in 2022. The reality of trade policy is such that there are difficult trade-offs—literally—and hard choices to be made.

In that regard, I wish the Government well in the talks that are under way. I believe there is now a sense of reality, not of boosterism. Even under the previous Administration, the anticipated 15-year gains to UK GDP of an FTA with India were forecast to be between 0.00% and 0.08%. Nevertheless, in the very sectors that the noble Baroness, Lady Anelay, mentioned, we can see sector-by-sector growth.

One aspect that has not been mentioned in the debate so far, which I raised in the debate we had in 2022, is trade diversion. We have to be very mindful that if we have an FTA with India, which I would support, then even on the previous Government’s figures almost all of the potential gain in extra trade with India would be off-set by reduced trade with other countries in the ASEAN region through trade diversion. Any tariff benefits for one nation could well be at the cost of others, especially for Bangladesh. I hope that the Minister can say that trade diversion is a key part of the discussions that we are having with India.

It has also been raised that there are areas of complexity in our relationship with India, whether it is India in BRICS, the war-games with Russia that they have been carrying out over the last year or the rupee-rouble swap, where certain sectors of the Indian economy have profited from sanction circumvention on Ukraine. There are also the barriers that many noble Lords in this House have worked hard to reduce over many years, especially within the financial sector, FDI, lack of consensus on greenhouse gas emissions, nuclear energy, farming subsidies and policies, et cetera. I hope all these areas can be addressed in the talks.

Finally, regarding the wider area, just before the February recess I and other parliamentary colleagues visited Singapore and Malaysia through the Commonwealth Parliamentary Association. The Minister is held in very high regard. At every meeting we had, people asked us to pass on our regards to him. That leads to one of our observations, which the noble Baroness, Lady Verma, touched on. We are not sending a sufficient number of Ministers, high-level officials and delegations to this region. Human-to-human discussion is very important when it comes to facilitating trade and soft power, and we should be doing more of it. I am very pleased that Minister West will be in the region; I wish her luck for the visit. It was also very clear to us that Malaysia’s presidency of ASEAN and its green vision for renewable energy and green technology are an enormous opportunity for the UK.

I close with an appeal to the Minister. I suspect that he will not be able to respond to me today. There is an economic integration programme that the UK Government fund, looking at how we promote trade within ASEAN. That is scored as official development assistance because it is technical assistance. I very much hope that with the decisions to cut official development assistance by more than half, those areas of technical support—for trade promotion, for the very growth that we wish to see—will be protected and not cut.

Iranian State Threats

Lord Purvis of Tweed Excerpts

Thursday 6th March 2025 Lords Chamber

[Lord Davies of Gower (Con)]

My Lords, I thank the Minister for bringing the Statement to the House today and I welcome the Government’s recognition of the growing threat posed by Iran to our national security. The escalation of Iranian state-backed plots against UK residents and the targeting of dissidents, Jewish communities and journalists is deeply concerning. I join Ministers in paying tribute to our intelligence services and law enforcement officers who work tirelessly to thwart these threats.

While we welcome the measures outlined today, I must ask whether they go far enough. The danger posed by the Islamic Revolutionary Guard Corps, the IRGC, is clear and escalating, as Iran has supported Putin’s barbaric and illegal invasion of Ukraine. Are this Government acting decisively enough on proscription? The Foreign Secretary has ruled it out, despite overwhelming evidence of the IRGC’s involvement in malign activities. Does the Minister now acknowledge that proscribing the IRGC is a necessary and overdue step? If not, can he explain how the measures announced today will be as effective in tackling this threat?

I welcome the decision to place the entire Iranian state on the enhanced tier of the foreign influence registration scheme. However, given Iran’s well-documented use of proxies, how do the Government intend to enforce these requirements effectively? Can the Minister provide assurances that those who fail to register will be swiftly identified and prosecuted?

The role of Iranian-linked organised crime networks is another crucial issue. The Government have pledged further sanctions and action against these networks, but we need clarity. Will the Minister commit to a specific timeline for additional sanctions and further crackdowns on the IRGC’s financial networks in the United Kingdom?

Finally, while it is right that we strengthen our domestic resilience, we must work closely with our allies to counter Iran’s destabilising activities internationally. Can the Minister outline what further steps the Government will take to enhance security co-operation with our Five Eyes partners and European allies in tackling Iranian aggression?

The threats we face from hostile states require more than just words—they require action. The Government must match their rhetoric with decisive steps to protect Britain from Iranian intimidation and ensure that those responsible for such threats face the full force of the law.

[Lord Purvis of Tweed (LD)]

My Lords, just last week in the Chamber we debated the unacceptable practice of the Iranian regime holding joint nationals in detention. My noble friend Lady Brinton spoke powerfully in that debate. Therefore, these Benches support what the Government are doing and how they are doing it. We join others in giving thanks for the work of our intelligence services and our law and order community, the men and women who work every single day to keep us safe.

However, we need constant vigilance. We have seen the unacceptable practice of the intimidation of BBC journalists, and individuals within this country who have been targeted by the Iranian regime, as it continues to do. Placing Iran on the enhanced tier scheme is welcome.

We are all aware that, given the economic crisis and tense political situation in Iran, it is likely that the regime will seek to export further attempts to destabilise and disrupt neighbouring countries, and countries such as the United Kingdom. The persecution of individuals in Iran is heightening, especially that of women and girls. As the Minister taking the Statement is from the Home Office, I ask him not to have a closed mind with regard to potential safe and legal routes for those who are persecuted within Iran, for whom we can provide refuge in the United Kingdom. There is currently no safe and legal route, but it would be a very strong signal of support for the human rights of people within Iran.

Of course, however, the first duty of government is to protect those within the United Kingdom. We have seen the use of proxies: we have seen the use of agencies and we have seen the use of other countries’ nationals. So I also wish to ask: when it comes to the implementation of the enhanced scheme, as well as the policing, how vigilant are we about those from other countries who are paid by the Iranian regime to carry out actions on its behalf? It is, of course, not the case that it will always be Iranian nationals who will be carrying out this work.

We have a country-wide Iranian sanctions regime, which is welcome, but the question I asked when we scrutinised that regime was about other bodies whom the Iranians are paying and who are nationals of other countries. That is a grey area when it comes to our legislation, so I would be grateful if the Minister could reassure us that nationals of other countries acting on behalf of the Iranian regime will also be covered by the enhanced tier element.

[The Minister of State, Home Office (Lord Hanson of Flint) (Lab)]

My Lords, I am grateful for the questions from the noble Lords, Lord Davies and Lord Purvis of Tweed. I will try to answer them as best I can. First, it really sends a strong signal that His Majesty’s Government, the Official Opposition and the Liberal Democrats all broadly support the actions taken today. That support means that, actually, Iran is the first country we placed into the FIRS scheme which, as I said in earlier answers to an earlier Statement, will be operational from the summer of this year. The signals that we have sent by placing Iran on the enhanced tier and announcing that yesterday, via my right honourable friend Dan Jarvis, and today is extremely important.

I can give comfort to the noble Lord that those who subsequently are proved not to have registered when the scheme goes live in the summer will face the potential penalty of a five-year jail sentence for the failure to register. That is a stiff sentence which, again, is outside my gift—it will be for the criminal justice system to pursue—but it is a very stiff sentence which, I hope, will send a very strong message to those who wish to do this country harm and who are sponsored by the Iranian regime.

I should also say to both noble Lords that there will be significant new training for all front-line police officers. We are going to explore further sanctions against criminal groups linked to Iran, and this goes to the point that the noble Lord, Lord Purvis of Tweed, mentioned. The Zindashti criminal gang has already been sanctioned, and that has therefore sent a strong signal, but we will look at further sanctions against criminal groups linked to Iran. That could include a number of other potential measures such as travel bans, which are key. We want to make sure that not just Iranian interference in the United Kingdom, in whatever form it takes—be it by the state or by proxies—is examined and clamped down on. We will certainly be taking those measures. The points that the noble Lord has mentioned are certainly ones of which we are cognisant.

The noble Lord also mentioned safe and legal routes. There are safe and legal routes which, again, are potentially operational, but, again, this country is a haven for asylum, and if individuals wish to claim asylum, that will be considered along with the position that government asylum policy has in place as a whole.

We are also looking at the issues with Jonathan Hall, the terrorism reviewer. We have asked him to look at both counterterrorism laws and the question of proscription, which, again, is an option we never rule out but on which I cannot comment in detail today. It is always an option for government in these areas.

I welcome the broad support and hope that we will monitor this. Obviously, as this scheme goes live in the summer, we will be able to monitor its impact on both those who register and, in the event of anybody who does not register, those who do not. We can monitor the effectiveness of this, but it is put in place for the simple reason that we cannot accept the level of activity by the Iranian regime in the United Kingdom against both Iranian citizens here and British interests. That is why we introduced this measure yesterday and I am pleased it has the support of the two main Opposition parties in this House.

Syrian Asylum Applications

Lord Purvis of Tweed Excerpts

Wednesday 29th January 2025 Lords Chamber

[Lord Hanson of Flint (Lab)]

It is not for me to determine or judge whether an individual wishes to apply for asylum from their country of origin to the United Kingdom or any other country. Our job is to assess such claims against the criteria that we have about persecution and the need for refugee status to be granted. There may be individuals who, in a future Syria, feel that they need to seek asylum from that regime— I do not know. That would be for those individuals to determine and apply, and for this Government to adjudicate accordingly.

[Lord Purvis of Tweed (LD)]

My Lords, the Government of Syria are a proscribed terrorist organisation under British law. The Minister suggested, if I heard him correctly, that the pause will be in place until there is clarity about a permanent, stable Government of Syria, which may not be for a considerable time. Given that we have already seen instances of the persecution of women in Syria in certain geographical regions, I hope that the Home Office is not making a decision now that Syria is a permanently safe country.

[Lord Hanson of Flint (Lab)]

I assure the noble Lord that people can still apply for asylum from Syria; what they cannot do is have a decision. There is nothing to stop people applying, but they cannot have a decision. That is because we need to review the situation in Syria, partly for the reasons the noble Lord has mentioned and partly because we need to look at the long-term situation in Syria. There may be individuals who currently have applications and who wish to return, and there is a mechanism for them to apply for support from the UK Government to cease their applications and return. There may be other individuals who wish to leave Syria for a range of reasons. This is not a unilateral action by the UK Government; it is one that is supported by Austria, Belgium, France and other European countries, and the pause has the support of the United Nations Refugee Agency. It is a serious assessment of the situation, and I hope the noble Lord will bear with us until we can resolve that.

Refugees (Family Reunion) Bill [HL]

Lord Purvis of Tweed Excerpts

Committee stage
Friday 17th January 2025 Lords Chamber

I will speak briefly on my final two amendments, Amendments 26 and 27. Amendment 26 proposes the removal of the reference to “de facto adoption” from the Bill. Although adoption is a recognised legal process with clear safeguards, de facto adoption lacks the same formal standards and could be open to abuse, and it would be expensive and cumbersome to—

[Lord Purvis of Tweed (LD)]

Time.

[Lord Jackson of Peterborough (Con)]

It is an advisory time limit. I thank the noble Lord for that.

It would also be impossible to ascertain the veracity of a claim in foreign jurisdictions.

This amendment would ensure that family reunion rights were extended only to those whose adoptive status had been legally verified. Such a change would protect vulnerable children while ensuring that the system was not exploited; in fact, it would specifically protect children and young people from being trafficked for sexual or other exploitation.

Amendment 27 would introduce a requirement for medical health assessments for all applicants before their family reunion status was approved. This is a common-sense measure that ensures the health and well-being of those entering the UK. Early health assessments can identify any medical issues requiring treatment, ensuring that appropriate support is provided, and additionally, these assessments protect public health by identifying and addressing any communicable diseases. This policy is pursued by many countries across the world and is sensible and responsible. Such a policy is not only practical but humane, reflecting the UK’s commitment to safeguarding both incoming refugees and the wider community.

In conclusion, these amendments demonstrate a commitment to ensuring that the Bill is both compassionate and practical. They would uphold public confidence, protect national security, and promote fairness and transparency in the immigration system. I urge the Committee to support these thoughtful and necessary provisions.

United Front Work Department

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Tuesday 17th December 2024 Lords Chamber

[The Minister of State, Home Office (Lord Hanson of Flint) (Lab)]

The first answer is that the Government will take a long-term, consistent approach to China and the dealings we have with it. It is important that we co-operate where we can on international matters such as climate change, and compete where we need to on business and on trade. When UK national security is at stake, it is really important that we challenge robustly any influence or actions by the Chinese Government on security matters. This House needs to understand that.

The noble Lord mentioned FIRS. We inherited the Act that passed in 2023, which was jointly supported by the then Official Opposition and His Majesty’s Government. That scheme is under development now. We anticipate having it in place by summer next year. Within that, we will take action accordingly to designate specific countries if the United Kingdom’s security is threatened. We will make decisions on that and announce them to the House in due course. I hope I can reassure the noble Lord that the United Kingdom takes all threats seriously and will be robust in its actions on those threats, including from any nation state that seeks to advance its aims in a subversive way versus the interests of the United Kingdom.

[Lord Purvis of Tweed (LD)]

My Lords, both the intelligence services and the courts have decided that the individual in the news recently has acted against

“the safety or interests of the United Kingdom”.

This is the legal test in Section 66 of the National Security Act 2023, which the Minister’s noble friend Lord Coaker and I and others scrutinised in great detail in this House. Surely the Government will apply this test not on economic grounds but only on the safety and security interests of the United Kingdom. Can the Minister assure me that the timing of any decisions about placing countries on that list will not be affected by the visit of the Chancellor of the Exchequer to Beijing? This is a legislative process, so it is not simply a case of announcing the Government’s view to Parliament. It is for Parliament to legislate, so all information should be provided with regard to those countries. Clearly, China should be part of that. When will we receive the orders for consideration with regard to the enhanced list?

[Lord Hanson of Flint (Lab)]

The enhanced list will be brought forward, as will FIRS, for summer next year. If there are issues that we wish to bring forward on an enhanced list, we will do that but not announce it strictly in advance. I anticipate early in the new year looking at some of those issues in more detail. The noble Lord asked whether we take economic factors and visits by British Ministers into consideration. We do not. The most important issue is the security of this United Kingdom, and if there are threats we will take action. A pragmatic approach is still necessary, however. There are areas of co-operation with countries of all types that have difficult records and which potentially seek harm to the United Kingdom. There are areas where we need to examine those, and we will take a pragmatic approach. As the Prime Minister has said, we will co-operate where we can, challenge where we can, and do business where we can, but national security is paramount.

Asylum Seekers: Hotel Accommodation

Lord Purvis of Tweed Excerpts

Monday 25th November 2024 Lords Chamber

[Lord Hanson of Flint (Lab)]

I can help the noble and learned Baroness on that point. Between 5 July and 28 October this year, which is the only time that I can account for as Minister, the Government have returned 9,400 people who have no right to be here. Of those 9,400 returned, 2,590 were enforced returns, which is a 19% increase on when the noble Lord, Lord Murray, held this post not 12 months ago.

[Lord Purvis of Tweed (LD)]

Uniquely in the OECD, the previous Government made the decision to overturn many years of UK practice to score as 100% official development assistance the first-year immigration costs, including hotel costs. This has meant that the ODA budget has been massively squeezed, to the extent that under the previous Government in their last full year, more ODA was spent in the UK on immigration costs than on bilateral programmes abroad, in direct contravention of the 2002 legislation. Many people thought the new Labour Government would reverse this calumny, but they have not—in fact, they are doubling down. Can the Minister tell me what the ODA costs are for the first year of immigration under this new Government and why they have taken the decision to penalise the most vulnerable and poorest around the world for the failures of the previous Government?

[Lord Hanson of Flint (Lab)]

With due respect to the noble Lord, I will look into his point, but we are four and a half months into this Government. The focus the Government have had so far—and I say this genuinely—has been the removals of people with no right to be here, putting extra resources into speeding up the asylum system, stopping this failed Rwanda scheme, and putting money into border security. These things take time. I will reflect on the points he has made, but it is not the long-term aim of the Government to spend the overseas aid budget on supporting issues to do with asylum in the United Kingdom. The aim of this Government is to speed up the asylum system, stop people fraudulently coming, and welcome people who, as my noble friend Lady Lister said, deserve and require asylum under our legal obligations. But we have to try to move this tanker in a very slow and difficult way. The tanker is slowly and surely being moved. I hope the noble Lord will recognise that.

Illegal Migration Act: Northern Ireland

Lord Purvis of Tweed Excerpts

Wednesday 15th May 2024 Lords Chamber

[Lord Sharpe of Epsom (Con)]

That may be the case, but, as I have repeatedly said, the Government intend to appeal the decision. Until that appeal is heard, I do not know that there is much else to say on this.

[Lord Purvis of Tweed (LD)]

My Lords, the Illegal Migration Act gives Ministers the power to detain those who have arrived in small boats. My understanding is that that is still not yet in force after a number of months—since last July. What prevents anybody who has arrived on a small boat since last July then travelling to Northern Ireland?

[Lord Sharpe of Epsom (Con)]

My Lords, we do not believe that this will induce people to go to Northern Ireland. The cohort we are detaining has been considered under existing legislation, so those who are part of that cohort can and will be removed to Rwanda. There would be no benefit to their going to Northern Ireland to avoid this removal. The NABA cohort is anyone who arrived in the UK on or after 1 January 2022 and who received a notice of intent prior to 29 June 2023, which informed them that their asylum claim may be considered inadmissible and that they may be removed to Rwanda.

Russia

Lord Purvis of Tweed Excerpts

Tuesday 14th May 2024 Lords Chamber

[Lord Coaker (Lab)]

My Lords, as I have said on behalf of His Majesty’s Opposition on a number of occasions, we will always work with the Government on matters of national security. All of us want to protect our country, our people and our democracy, and we will stand with our friends and allies across the world in order to do this. We join the Government in condemning Russian interference and hostile activity here in the UK and throughout Europe. There have been numerous examples of such activity, not least the current cases that we have seen and many others, as outlined by the Home Secretary in his Statement in the other place. We read consistently of such attacks in our newspapers.

We also remind everyone that we remain absolutely at one with the Government with respect to Ukraine and that should there be any change of government in the near future, there will be no change of policy at all. It is important for us all to recognise—and continue to recognise—that the defence of the UK starts in Ukraine, against the illegal invasion by Russia, but that there are also challenges and threats to our homeland security, so we support the measures that the Home Secretary outlined a few days ago in his Statement. It is in this spirit of cross-party support that I will make a number of further points and ask some questions of the Government.

Notwithstanding recent changes to the law, there remain questions about illicit Russian finance. Can the Minister reassure us about the priority that the Government are giving to this? What are the latest figures he has available that he can share with us about the amount of illicit Russian finance that the Government believe there to be and how much has so far been seized? As I say, there is continuing concern that we could and should be doing more.

Can the Minister outline what diplomatic response the Government expect from Russia? The Home Secretary said:

“We will always ensure that we protect our ability to have lines of communication with Russia … Routes for de-escalation”


and so on

“are very important … We will seek to maintain”

those lines

“even while we take these decisive actions”.—[Official Report, Commons, 8/5/24; col. 587.]

We all agree with that, so can the Minister say anything further on any diplomatic response one way or the other, notwithstanding the obvious difficulties with respect to that?

On the question of seizing Russian assets to fund reconstruction in Ukraine, a policy that the Government have said they support in principle, has this policy been progressed in any way? In the United States, more than 70 individuals have been charged with sanctions evasion and huge amounts of assets seized. Can the Minister give an equivalent figure for the UK? It is my understanding that no one has been charged. If so, can he explain whether any cases are ongoing and, if not, why not? It is also the case that we have still not had a full update on the scale of risks from golden visas. When can we expect that from the Government?

Finally, there can be no doubt that from Iranian-sponsored “kidnap and kill” threats to attacks on so-called dissidents, the repression of Hong Kong protesters outside the Chinese consulate in Manchester, Salisbury and many other examples on home soil in the UK, we have witnessed a fundamental shift in the threat landscape. State actors are targeting us in our own country, sometimes with the co-operation of serious and organised crime. Even in this Parliament, a parliamentary aide and more alleged spies have been charged, as we have recently seen in our papers, although with respect to China. How are the Government responding to this increased threat and supporting the amazing work of our police and intelligence agencies, which we all recognise?

This is one of the fundamental questions of our democracy today, so the co-ordination of that effort across government is of extreme importance. I wonder whether the Minister could say a little about that. We must not be found lacking in our response as we defend our hard-won freedoms, and that co-ordinated effort must be at the heart of it.

[Lord Purvis of Tweed (LD)]

My Lords, I associate myself with many of the remarks of the noble Lord, Lord Coaker. I agree with what he said. These Benches also welcome the Statement repeat and support the Government’s actions. I too pay tribute to the security and intelligence services, which remain vigilant in keeping us safe from foreign malign activity. It is of course a very serious matter when we have to take action against so-called diplomats—those who are abusing not only the protections that diplomatic conventions afford them but their position within the United Kingdom—but actions have been necessary.

I note that the Home Secretary indicated in the Statement that this was the first legislation under the National Security Act on which the noble Lord, Lord Coaker, and I, along with my noble friend and others, worked closely with the Minister. He was very open and worked on a cross-party basis. When it comes to national security and keeping our country safe, we are of the view—I think the Minister agrees—that this is not a partisan issue, no matter what the Prime Minister may have said this week. I pay tribute to the Minister for his work on that, and it is rewarding to see that the measures we put in place on a cross-party basis have been activated. That demonstrates to any country around the world that government and Parliament are united in ensuring that our people will be safe.

As the noble Lord, Lord Coaker, indicated, we should of course expect a tit-for-tat response. What advice are His Majesty’s Government giving to the wide network of UK journalists and other nationals still operating in Russia in the genuine field of culture, trade and people-to-people relations? I have said repeatedly that our concern is not with the people-to-people relations between the UK and Russia but with the Putin regime. What vigilance will they therefore have to have, and what advice are the Government giving?

Concerning the wider issues on sanctions and assets, as indicated in the Statement, I think I have spoken to almost all the sanctions that Parliament has approved and that the Government have put in place. We support them all, of course, but unfortunately there are certain areas that are vulnerable to sanctions circumvention. What actions will the Government now take on those who are actively circumventing the sanctions cited within the Statement? This includes, for example, shadow fleets that ship the oil exports from Russia, which means that Russia is continuing to make a profit out of the war. It means those within metal trading and within the financial relationships that the UK has with the Gulf. When it comes to the assets, the Statement indicated that the £22 billion of assets that we have frozen is from October. That is six months ago so, as the noble Lord, Lord Coaker, asked, what is the live figure of the assets?

The Home Secretary said in response to questions in the House of Commons that

“no one has seized or liquidated Russian assets”.—[Official Report, Commons, 8/5/24; col. 588.]

But we know that that is not the case, and not just within those that Ukraine has. What is the exact legal blockage to the UK seizing assets that we have frozen? The Foreign Secretary replied to me in this Chamber a number of weeks ago that he was frustrated with the delays. What are the delays and why have the Government not presented legislation? If legislation is required to be passed, I am certain that the Front Benches will be supportive of that move and that it can be expedited through Parliament.

I was reading this week that the EU now has mechanisms in place to charge the interest of those frozen assets, with an estimate of up to €8 billion. One estimate of the £20 billion frozen by the UK Government could mean, depending on how it is invested, that it could accrue interest of up to £1 billion over this year. Why is that not being seized for immediate use?

Can the Minister confirm to me that the mechanisms the Government have put in place to allow for frozen assets to be sold to UK businesses or individuals can never be used for them to make a profit out of any frozen assets? I understand that the mechanisms will allow bodies to buy a frozen asset but not to sell it until it is unfrozen. But it could accrue interest, so I would be grateful if the Minister could indicate that that could never be the case.

Finally, given that we are likely to see further actions from the Putin regime—we see today’s very worrying news from the Georgian Parliament and we see it in the Balkans—and, as the noble Lord said, from the China regime, now is the time for the Government to give proactive briefings to Opposition Front Benches on likely or possible future threats. We had that when we were tackling the Daesh problem but we need it now when it comes to China and Russia, and I hope the Minister can respond positively to that point.

[The Parliamentary Under-Secretary of State, Home Office (Lord Sharpe of Epsom) (Con)]

I thank both noble Lords for their remarks. I will briefly outline a few highlights, as it were, from the Statement given by the Home Secretary last week, because it has been a few days and we need to tease out and probe a few important points. My right honourable friend the Home Secretary pointed out in the other place that the Prime Minister said in Poland last month that we are at a “turning point” for European security. With our allies, we will stand firm in the face of the Russian threat to the UK and our way of life—it is worth restating that for the record.

On the actions we have taken, as is well understood, we have expelled the Russian defence attaché, who was an undeclared military intelligence officer. We will remove diplomatic premises status from several Russian properties in the UK, including Seacox Heath, which is a Russian-owned property in Sussex, and the trade and defence section in Highgate. We believe they have been used for intelligence purposes. We are imposing new restrictions on Russian diplomatic visas, including capping the length of time Russian diplomats can spend in the UK.

As reported on Friday 26 April, five individuals have been charged in connection with an investigation into alleged offences under the National Security Act, which both noble Lords referred to. They rather pre-empted what I was going to say, because I obviously want to thank all noble Lords who were involved in the successful passage of what is proving to be critical legislation. It is a good example of working together, and it gives me an opportunity to thank the security services. This rather proves the point that there is co-ordinating action on behalf of the security services, the police, other government agencies and of course the Home Office, in dealing with the threats we all face. I am grateful to all the people who work so hard on our behalf in those various organisations.

I will go into the sanctions in a moment, but first I will repeat the headlines that my right honourable friend the Home Secretary mentioned in his speech. We have sanctioned over 1,700 individuals, over 90% of the Russian banking sector and over 130 oligarchs and family members, with a combined net worth of around £147 billion at the time of the invasion. As of October— I am not sure I can improve on an October figure at this point—over £22 billion of Russian assets were reported frozen as a result of UK sanctions. Those assets can no longer be taken back to Russia to fund the Putin war machine. Obviously, we consider Russia’s campaign to undermine our support unacceptable and destined to fail.

On the individuals who have been charged in connection with the investigation, and with others related to other countries that have subsequently occurred, the Crown Prosecution Service, in relation to the 26 April individuals, has confirmed that the charges relate to alleged hostile activity in the UK in order to benefit a foreign state—namely, Russia. Beyond that, I obviously cannot say very much, particularly as regards ongoing investigations.

Both noble Lords asked about illicit finance. We have swiftly implemented the strongest set of economic sanctions ever imposed against a G20 country. We have frozen over £22 billion of Russian assets under the sanctions regime, as I said, and the UK alone has sanctioned 2,000 individuals and entities under the Russian sanctions regime, over 1,700 of which have been sanctioned since Putin’s invasion. We have set up the combating kleptocracy cell in the National Crime Agency to target corrupt elites and their assets in the UK, ensuring that there is nowhere for this dirty Russian money to hide. The combating kleptocracy cell—CKC—can account for over 150 disruptions since the invasion of Ukraine, all of which demonstrably removed or reduced a criminal threat facing the UK.

I will digress briefly. The noble Lord, Lord Coaker, asked about golden visas. That scheme was closed in February 2022, following the recommendation of the Intelligence and Security Committee to review our approach to it. I have no further information about publication or anything else yet.

Returning to sanctions and what we are doing to enforce them in the UK, we are obviously committed to ensuring that they are robustly enforced and that potential breaches are investigated. Illustrating the co-ordinated approach, departments from across HMG—including the FCDO, the Treasury, OFSI, HMRC, the Home Office, DfT and the National Crime Agency—work together and with UK companies to ensure that sanctions are enforced. In August 2023, for example, HMRC fined a UK company £1 million in relation to the unlicensed trade of goods in breach of Russia sanctions. OFSI published an enforcement notice against Wise Payments Ltd, an FCA-regulated company, for breaching Russia sanctions by making funds available to a company owned or controlled by a designated person. So, firms should carefully consider what steps are appropriate to manage their sanctions risk exposure and take steps fully to address that risk. The Government have committed £50 million to support a new economic deterrence initiative to further boost our diplomatic and economic tools and improve sanctions implementation enforcement, as well as tackling sanctions evasion across the trade, transport and financial sectors.

On our collaboration with our international partners, we work closely with the G7, particularly the EU and the US, and we have stepped up our engagement with a range of third countries to highlight circumvention risk—the noble Lord, Lord Purvis, alluded to this—and support them to tackle this issue. That includes joint diplomatic outreach to countries where we see spikes in the trade of sanctioned goods with Russia. We are particularly focused on the goods published in the CHP list.

In recent months, we have sent joint delegations to the UAE, Kazakhstan, Uzbekistan, Kyrgyzstan, Georgia and Armenia, as well as having senior bilateral engagement with Turkey and Serbia, to highlight these risks and offer technical support. We have funded technical support sessions delivered by UK legal experts to business and government contacts in Armenia, Georgia, Uzbekistan and Kyrgyzstan to improve understanding of and compliance with the UK sanctions measures and regime. These efforts are paying off: a number of countries have announced concrete measures to reduce the risk of sanctioned goods reaching Russia. The latest trade data indicates a downward trend in direct exports of these items to Russia from countries of interest, including some that I mentioned.

On why we have yet to seize Russia’s assets, we remain committed to exploring all lawful routes to using Russian sovereign assets in support of Ukraine. We continue to drive ambition within the G7, which has agreed to consider this issue collectively. We continue to work at pace ahead of the G7 leaders’ summit. I commit to keeping the House updated on significant developments as appropriate. While G7 discussions continue, the UK has taken a number of steps domestically. We were the first to introduce legislation explicitly enabling us to keep sanctions in place until Russia pays for the damage it has caused. We are establishing a route by which sanctioned individuals can donate frozen funds for Ukrainian reconstruction, and we have introduced new powers to compel sanctioned individuals and entities to disclose assets they hold in the UK.

With noble Lords’ indulgence, I will address a slightly broader question which I have perhaps not been asked entirely: how we are combating Russia’s war economy. We have banned all known items found on the battlefield in Ukraine. We have banned dual-use and critical industry, aviation, defence and security goods. We have published a common high-priority items list—a list of 50 battlefield items that are important for Russia’s war effort—helping businesses identify the most critical items to focus their efforts on. This is degrading Russia’s military and high-tech industries. Production of the next-generation airborne early-warning and control aircraft has stalled due to a lack of foreign components, including semiconductors. Russia is therefore turning to other countries to supply these goods. We see reports of that in the newspapers, but I reassure noble Lords that the UK is very much leading on this work and delivering results.

On the tit-for-tat arrangement mentioned by both noble Lords, I of course cannot account for what Russia may or may not do. Regarding advice to UK residents, journalists and other interested parties in Russia, I have not looked at the recent Foreign Office advice, but I am sure it has been kept very much up to date on a regular basis. But obviously, I caution all journalists operating in Russia to be aware of the case of Evan Gershkovich, whom the Russians really should have released by now.

I think I have answered all the questions. I cannot commit to proactive briefings now, but I will certainly bear in mind what the noble Lord said and make sure it is understood in the department.