Oral Answers to Questions

Alex Burghart Excerpts

Thursday 23rd November 2023 Commons Chamber

[James Murray (Ealing North) (Lab/Co-op)]

13. What steps he is taking with Cabinet colleagues to help ensure value for money in public procurement.

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

Value for money is central to the Government’s long-standing procurement policy, as set out in everybody’s favourite Treasury document, “Managing Public Money”. Current procurement regulations require contracting authorities to select the most economically advantageous tender. The Procurement Act 2023—I am pleased to say that it has recently received Royal Assent—will streamline procurement processes and ensure that value for money remains one of the central tenets of the UK’s procurement regime.

[Liz Twist]

If the Minister thinks that every pound of taxpayers’ money matters, what are the Government’s plans to recover the loss of billions of pounds in flawed covid contracts?

[Alex Burghart]

I am pleased to be able to remind the House that the Government have already taken extraordinary steps to recover fraud money during the covid period. His Majesty’s Revenue and Customs remains committed to the recovery of covid-19 support scheme fraud. The Government are also committed to bearing down on fraud in the covid loan schemes. Some £13.2 million has been allocated to the National Investigation Service over three years to double its investigative capacity on bounce back loans and to fund other activities. This is just a small sample of the work being done to combat fraud across our Government.

[James Murray]

Further to the comments of my hon. Friend the Member for Blaydon (Liz Twist), billions of pounds of public money was wasted during the covid pandemic through dodgy contracts that we know were signed off by the Government. Labour has said that we will appoint a covid corruption commissioner to pursue every pound of public money that has been inappropriately lost from pandemic-related contracts, fraud and waste. Will the Minister borrow our plans?

[Alex Burghart]

I am sure the hon. Gentleman will have noted—I imagine he pays attention to such things—that we already set out in the spring statement last year the public sector fraud authority, which is based in the Cabinet Office and very ably handled by my colleague Baroness Neville-Rolfe. We have debated fraud during covid many times in the House. All the contracts handed out during covid were signed off by extremely able and capable civil servants who were working in very difficult circumstances and the idea that there was ministerial sign off of these things is wrong and must be contradicted whenever it is raised.

[Greg Clark (Tunbridge Wells) (Con)]

It is clear from the Chancellor’s autumn statement yesterday that we will need to make savings in public sector budgets for some years to come to overcome the impact of inflation, so can the Minister say how artificial intelligence will play a role in that in the public sector and what efforts he is making to procure the necessary systems?

[Alex Burghart]

My right hon. Friend makes an excellent point. We are still coming to terms with the potential of artificial intelligence to speed up Government processes, improve productivity and deliver value for money for the taxpayer. While we have procurement frameworks at present that help Departments across Government identify good AI systems they might wish to secure, we are also interested in developing our own AI within Government. My right hon. Friend the Deputy Prime Minister announced earlier this week that we would hire more people with the highest levels of innovative skill to come into Government to build those systems for us and deliver value for money.

[Dame Diana Johnson (Kingston upon Hull North) (Lab)]

3. What progress he has made on implementing the final recommendations on compensation in the second interim report of the infected blood inquiry, published on 5 April 2023.

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[Martin Vickers (Cleethorpes) (Con)]

4. What steps his Department is taking to improve access to public sector procurement processes for small and medium-sized businesses.

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

The Procurement Act 2023 will deliver simpler, more effective public sector procurement and help small and medium-sized enterprises secure a greater share of approximately £300 billion of expenditure per year. The Act places a requirement on contracting authorities to assess the particular barriers facing SMEs throughout the entire procurement life cycle and to consider what can be done to overcome them.

[Martin Vickers]

The renewable energy sector offers great opportunities for SMEs to become involved in the supply chain. Many of them are unaware of the public sector tenders that are out there. What are the Government doing to ensure that SMEs are made more aware of the opportunities available?

[Alex Burghart]

I very much encourage my hon. Friend to take this matter up with the Department for Energy Security and Net Zero, but for my part I understand that anyone bidding for contracts for difference, our main renewable support scheme, must submit supply chain plans, including how many applicants will support SMEs. The Department is also consulting on reforms that will give greater revenue support to applicants using more sustainable supply chains, including those that make greater use of SMEs.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his response and the hon. Member for Cleethorpes (Martin Vickers) for raising this matter. Northern Ireland, and particularly my constituency of Strangford, have a great many small and medium-sized businesses that depend greatly on opportunities for Government contracts. What discussions has the Minister had with the Department of Finance in Northern Ireland on a united approach, similar to that referred to by the hon. Member for Cleethorpes? I would love to see that in Northern Ireland.

[Alex Burghart]

My hon. Friend will be pleased to hear, and will remember from discussions we had as the Procurement Act 2023 was making its way through Parliament, that Northern Ireland will benefit from the new post-EU regime that we have brought in. Unlike our friends in Scotland, who chose to opt out, England, Wales and Northern Ireland have been able to shrug off the overly bureaucratic regime that we inherited from the EU and create, alongside small and medium-sized businesses, a brand-new way of doing things. I know that small and medium-sized enterprises in his constituency will ultimately benefit from that.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

5. Whether he has had discussions with the independent adviser on Ministers’ interests on declarations of interest by the Secretary of State for Foreign, Commonwealth and Development Affairs.

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[Daniel Zeichner (Cambridge) (Lab)]

10. What recent assessment he has made with Cabinet colleagues of the potential impact of the border target operating model on cross-border flows of goods.

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

The Government are delivering an ongoing programme of engagement with stakeholders across all sectors in all parts of the country and with key European Union trading partners to ensure goods continue to move across the border. We have not identified any specific risk to the cross-border flow of goods.

[Daniel Zeichner]

It has been a very long wait to get border checks in place on the UK side. What evidence does the Minister have that EU businesses have the appropriate systems in place, including enough vets, to make them work smoothly? What estimate has he made of the impact on UK food security?

[Alex Burghart]

The whole purpose of the exercise is to ensure that we have UK food security. The border target operating model will implement its next three major milestones on 31 January 2024, 30 April 2024 and 31 October 2024, which means that the regime will be introduced by increments. This will be good for British food and good for British animals.

[David Linden (Glasgow East) (SNP)]

11. What assessment he has made of the adequacy of the list of Ministers’ interests in ensuring that Ministers (a) declare and (b) avoid any conflict of interest.

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[Jon Trickett (Hemsworth) (Lab)]

15. What steps he is taking to increase transparency of lobbying by businesses.

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

The Government outlined wide-ranging improvements to transparency in lobbying in their policy statement “Strengthening Ethics and Integrity in Central Government”, which was published in July. They include revising guidance to widen the range of lobbying engagements declared by Departments, and linked reforms of the consultant lobbying framework.

[Jon Trickett]

If you are one of the tens of thousands of small and medium-sized enterprises bidding for contracts from the public sector, you will be met with a wall of bureaucratic paperwork designed to prevent relationships between the contractor and the service provider. If you are an ex-Prime Minister, you can make dozens of phone calls on behalf of an interest in which you seem to have been involved, including nine texts to the current Prime Minister. Is it not clear that that was reprehensible behaviour, and that the lobbying rules allowed it to happen? When will the Minister tighten the lobbying rules properly to prevent people from being able to benefit from the old system of “It is not what you know, but who you know”?

[Alex Burghart]

I refer the hon. Gentleman to my previous answer; we have published a document called “Strengthening Ethics and Integrity in Central Government”.

On small and medium-sized enterprises, I am delighted to be able to tell the hon. Gentleman that the Procurement Act 2023, which recently received Royal Assent, will make life much easier for SMEs that want to do business with the Government and get a share of the £300 billion of public procurement this Government have to offer.

[Kate Osamor (Edmonton) (Lab/Co-op)]

T1. If he will make a statement on his departmental responsibilities.

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[Bob Blackman (Harrow East) (Con)]

T8. My constituents who run small and medium-sized enterprises constantly complain about their ability to get Government contracts. The passing of the Procurement Act 2023 will obviously make that a lot easier. Will my right hon. Friend update the House on when that will be enacted? What will be the benefits to SMEs not only in my constituency but across the country?

[The Parliamentary Secretary, Cabinet Office (Alex Burghart)]

My hon. Friend is absolutely right that the Procurement Act is a landmark piece of legislation that is going to make life considerably easier for SMEs, and it will do that in a number of ways. A new online procurement platform will make it easier for people to enter information once and use it many times, and make it easier to see the pipeline of upcoming contracts. Crucially, contracting authorities will also now have to have regard to the needs of SMEs in order to break down barriers and give them a bigger share of the pie.

[Mr Speaker]

I call the shadow Minister.

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[Jon Trickett (Hemsworth) (Lab)]

T3. Palantir has this week received one of the largest contracts imaginable. The company is based in silicon valley in California. It was established by the CIA and it has continuing links with the American defence network. It looks as though huge amounts of British NHS money and profits will be migrating back across the pond to California, but the most concerning thing is that information about millions of our fellow citizens—their health data—will be handled by that company. How can that be right?

[Alex Burghart]

Obviously, any contract of any size that the Government deal with—the Department of Health and Social Care and the NHS in this case—goes through an extremely detailed and careful process in order to ensure that we get the best value for money for the British public, that we help our public services solve the problems they face and that national security is maintained. If the hon. Gentleman has a problem with a particular element of that contract, he should bring it before the House. Otherwise, I believe he is just scare- mongering.

[Sir Christopher Chope (Christchurch) (Con)]

Will my right hon. Friend help with a situation where Thales, the French defence contractor, and its UK subsidiary are insisting that materials should be procured not from the UK, but from India. How is that consistent with the Government’s procurement policy?