Metropolitan Police: Operational Independence

Debate between Lord Sharpe of Epsom and Lord Sandhurst

Thursday 9th November 2023 Lords Chamber

[Lord Sharpe of Epsom (Con)]

My Lords, I have already spoken about the operational independence of the police, which I think we all regard as sacrosanct. The Answer that I repeated included the line:

“it would be disrespectful and demonstrably wrong for protests to take place on Armistice Day and Remembrance Sunday”.

Actually, I do not think that my right honourable friend the Prime Minister used the word “demonstrably”, but what he did say was “disrespectful”. However, he went on to say:

“part of that freedom is the right to peacefully protest. And the test of that freedom is whether our commitment to it can survive the discomfort and frustration of those who seek to use it, even if we disagree with them. We will meet that test and remain true to our principles”.

I happen to think that is exactly right and describes the country I am proud to be a citizen of.

[Lord Sandhurst (Con)]

My Lords, as we have heard, Peel’s fifth principle requires the police to demonstrate complete independence of policy. Of that, it is equally plain that my noble friend the Minister is well aware. Will he therefore remind the Home Secretary of this principle, since her public criticisms of the Metropolitan Police make it impossible for the commissioner to retain his operational independence or at least the appearance of operational independence, which is vital to public confidence? The Home Secretary seems either to be ignorant or to be flouting it.

[Lord Sharpe of Epsom (Con)]

My Lords, I have already referred to the policing protocol, which governs all the actors’ principal responsibilities. We should focus on taking steps to reassure the various communities that are coming under pressure; —the police are definitely doing that. Police forces up and down the country have stepped up neighbourhood patrols to support local Jewish and Muslim communities, including visiting schools, synagogues and mosques. Sadly, we have seen a significant increase in hate crime reported since Hamas’s terrorist attack in Israel, and the Metropolitan Police has made a number of arrests to date linked with that. That shows that the Metropolitan Police is more than capable of exercising its responsibilities and is doing a good job.

Perhaps I may say from a personal point of view that the virulent anti-Semitism that we have seen makes me feel physically sick. My Jewish friends are afraid, and in this country that is disgusting.

Economic Crime and Corporate Transparency

Debate between Lord Sharpe of Epsom and Lord Sandhurst

Committee stage
Thursday 27th April 2023 Grand Committee

[Lord Sharpe of Epsom (Con)]

Absolutely; I shall get my abacus out. I turn to Amendment 101 on senior managers’ liability for failing to prevent economic crime, also tabled by my noble and learned friend Lord Garnier.

I agree that it is important that individuals, particularly the most senior ones, do not go unpunished for their involvement in committing economic crimes. Prosecutors already have a range of powers at their disposal to pursue decision-makers who enable or commit criminal offences in a corporate setting. This includes the power to prosecute individuals for substantive offending. For example, last year an individual was jailed for 12 years following a Serious Fraud Office investigation into a £226 million fraud.

Additional powers also exist which enable senior managers and directors to be prosecuted where they consent or connive in fraud, theft, money laundering or bribery. A director or manager who is convicted on the basis of their consent, connivance or neglect can be dealt with accordingly by the courts, including being sentenced to imprisonment. Also, under the Serious Crime Act 2007, a person, including a senior manager, is liable for encouraging or assisting the commission of a criminal offence. That includes fraud, false accounting or money laundering—the offences captured by the amendment tabled by my noble and learned friend Lord Garnier. The individual found to be encouraging or assisting the commission of the offence can be prosecuted in the same way as if they commit the offence itself.

This amendment seeks to extend liability for senior managers on a lower basis for culpability than is normally provided for. It would allow a senior manager who takes a decision to be imprisoned for taking that decision, even if the offence is the action of a rogue employee. That would place a disproportionate burden on corporations and their senior management, which is likely to deter legitimate business from seeing the UK as a fair and safe place to conduct business. This amendment is therefore not appropriate.

The noble Lord, Lord Coaker, asked about extraterritoriality. Our approach is focused on cutting crime in the UK and protecting UK victims. As he noted, the powers have sufficient extraterritorial extent to do this, even if the perpetrators or the organisation is based outside the UK. Other countries can take steps to prosecute fraud under their own law. As for the precise mechanics of how it would work, it would be on a case-by-case basis, so it is pointless to speculate.

The noble Lord also asked for more detail about guidance. As he knows, we intend to publish guidance setting out reasonable prevention procedures before the offence of failure to prevent fraud comes into force. It will give organisations clarity about what they need to do. It is important that we engage and consult the right stakeholders in this process and that we engage further with the organisations this will impact. Once the Bill has received Royal Assent, we will start engaging with law enforcement, prosecutors, relevant government departments, public sector organisations, trade associations for businesses, other organisations in scope and other experts to draft the guidance.

We anticipate that the guidance will follow similar themes to those seen in many regulatory regimes—albeit that in this case they are not requirements—and to guidance for existing failure to prevent offences. This includes regular risk assessments to establish the level and type of fraud risks to be addressed; establishing fraud controls and due diligence processes designed to prevent fraud or spot it in the early stages before the offence is carried out; leadership and training to ensure that employees implement controls and create a culture within the organisation that does not accept fraudulent practices as a route to boosting performance and profits; and monitoring and review to ensure that procedures remain effective. I am happy to hold further discussions on this subject at the noble Lord’s convenience.

[Lord Sandhurst (Con)]

I was waiting to hear the tenor of my noble friend’s response. He opened by saying that a relevant body includes a telecoms company. That is not my point. A telecoms company is obviously likely to be a relevant body. My complaint is that those within scope include only associated persons and not the fraudster who actually makes money indirectly or directly by paying charges to the telecoms company. That target is missed altogether by this Bill and the Online Safety Bill. Is it the intention that telecoms companies will continue to have no responsibility at all for spoof calls and so on?

[Lord Sharpe of Epsom (Con)]

We will come on to this in more detail on a later group. Perhaps we should leave the detail of this debate until the third group, which we will get to at some point.