Oral Answers to Questions

Debate between Alan Mak and Peter Kyle

Wednesday 20th November 2024 Commons Chamber

[Alan Mak (Havant) (Con)]

On the Opposition Benches we are proud that it was the last Conservative Government who created the Department for Science, Innovation and Technology. I am glad that Labour is following our agenda, and I look forward to my exchanges with the Secretary of State.

Under the last Conservative Government, Britain was home to more billion dollar tech start-ups than France and Germany combined, but last month an industry survey found that nearly 90% of tech founders would consider leaving Britain if Labour raised taxes on tech businesses. Yesterday, Labour U-turned on policy in Scotland, so today will the Secretary of State commit to reversing Labour’s jobs tax, which damages tech businesses across the entire country?

[Peter Kyle]

I welcome the hon. Gentleman to his post. We worked together on the all-party parliamentary group on the fourth industrial revolution, which he chaired, and I look forward to having a constructive relationship going forward.

The hon. Gentleman mentioned the last Government. Given the way the Conservatives are going, that will have been their last Government. To be honest, the circumstances that businesses, large and small, operating in the tech landscape have asked for are a smooth regulatory process—we have already delivered regulatory reform; reform to planning—we have delivered reform to the planning system; a stable financial settlement—we have delivered that with a Budget for—

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[Alan Mak]

I thank the Secretary of State for his kind words, but he has punished labour: figures from his own Department show that workers will be losing out by nearly £800 each per year as a result of Labour’s Budget. Will he stand up to the Chancellor and oppose any further tax rises on Britain’s hard-working tech sector?

[Peter Kyle]

The Budget gave a pay rise to working people in this country and set the conditions for a stable economy, fixing the black hole left in our economy by the mismanagement of the last Government.

Charities (Protection and Social Investment) Bill [ Lords ] (First sitting)

Debate between Alan Mak and Peter Kyle

Tuesday 15th December 2015 Public Bill Committees

[Mr Alan Mak (Havant) (Con)]

It is a pleasure, Mrs Main, to serve under your chairmanship. I welcome the Bill and will refer to clause 1, as well as to other provisions.

Charities play a vital role in civil society and local communities across Britain. They care for the sick, feed the hungry, raise money for veterans and protect the natural and built environment. They rely on generous public support and confidence in order to continue their vital work. Deliberate abuse of charities is relatively small, given the size of sector. However, it needs to be tackled robustly to protect public trust and confidence.

The Bill, particularly clause 1, would equip the independent regulator, the Charity Commission, with the tools that it needs to tackle more effectively the types of abuse it faces. That in turn should protect charitable donations and reassure the giving public that charities are well regulated. Clause 1 inserts into the Charities Act 2011 new section 75A, which provides the Commission with a power to issue an official warning to a charity or a charity trustee. That warning may be given where there is a breach of trust or duty by a charity or trustee, or other misconduct or mismanagement in the charity. Breach of duty can also include non-compliance with a commission order or direction. That warning system is similar to powers vested in other regulators, but it is a more reasonable and proportionate way to deal with breaches of the 2011 Act and fiduciary duties or other mismanagement episodes, particularly where the risks and impacts on charitable assets and services are relatively low.

Before I had the privilege of entering this House, I was fortunate to be a trustee of a small but successful children’s charity working across the UK. My experience of working with donors, funders and beneficiaries suggests that the new powers in clause 1 will be welcomed by all those in believe in the proper governance and oversight of charities by bolstering public confidence in charities.

The new power is a more proportionate use of the Charity Commission’s powers, and a better alternative to a number of other remedial powers such as suspension or removal of trustees, or restitution action against trustees. An example of where the power might be used is where a charity makes unauthorised payments, for example, to a connected company or for the benefit of a particular trustee. In such a case, the size of the sums involved may mean that it is disproportionate to take stronger action but the Commission could issue an official warning on future conduct, as stipulated under clause 1.

Another case might be where the charity’s governing documents have been breached. For example, there has been a failure to call elections or annual general meetings, which would compromise the proper functioning of the charity and public faith in the charitable sector. The powers in clause 1 would be a proportionate and effective means of ameliorating that situation.

[Peter Kyle]

It is a privilege to speak under your chairmanship, Mrs Main. Like the hon. Member for Havant, I have served on charity boards. In fact, I was involved in founding two charities and have seen them grow and thrive. My role included the challenge of recruiting trustees to two charity boards.

I have seen the charitable sector from many different perspectives, including working for almost six years for an umbrella organisation in the sector. I can see from different perspectives the challenges but also the opportunities that the voluntary sector provides to society. It is embedded fully in civil society, and increasingly delivers public services, which are often integrated in the welfare state. That is a fantastic and growing part of our voluntary sector, and we should be proud of it.

The delivery of public services is an aspect of the voluntary sector that does indeed need greater regulation and scrutiny. The public needs to know, since the sector is funded by taxpayers’ money, that it is scrutinised accordingly. I therefore welcome many aspects of the Bill.