Procurement Bill: Consultation on Draft Regulations

Alex Burghart Excerpts

Monday 19th June 2023 Written Statements

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

One in every three pounds of public money—over £300 billion a year—is spent on public procurement. By improving the way public procurement is regulated, the Government can save the taxpayer money and drive benefits across every region of the country.

Following the UK’s exit from the EU, we now have an opportunity to develop and implement a new procurement regime. The Procurement Bill will help deliver the Prime Minister’s promise to grow the economy by creating a simpler and more transparent system that will deliver better value for money, reducing costs for business and the public sector.

The Government want to make it easier for small businesses to work with the public sector by ripping up unnecessary rules and tackling late payment in the supply chain. We will ensure that all public bodies consider small and medium-sized enterprises when designing their procurements.

Following wide-ranging public consultation and stakeholder engagement, and close working with colleagues in the devolved Administrations, we have brought forward legislative proposals to establish the new regime. These measures and the training we will roll out to support them will deliver greater value for the public purse, from huge infrastructure projects to services by local councils.

In support of the Bill, which last week completed Third Reading in this place, I am launching a public consultation on the draft implementing regulations that will form part of the new regime. This consultation, which is highly technical and not seeking views on policy development, will be split into two parts, with the first part of the consultation remaining open until 28 July. The first part of the consultation, announced today, focuses on policy areas that require specific detail, such a calculation of thresholds, or lists of services or organisations, in secondary legislation. The forthcoming second part will address the transparency provisions and notices that will be used by contracting authorities to fulfil their legal requirements under the Bill. The second part will also include information on the proposed approach to transitional arrangements for procurements already underway at the time that the new regime enters into force and the position on other legislation that will need to be amended in order for the full provisions of the Bill to take effect. I expect to launch the second part in July.

The consultation we are publishing today, and laying in Parliament, gives everyone an opportunity to help shape public procurement for the future and I wish to encourage all involved in public procurement to have their say.

[HCWS859]

Procurement Bill [Lords]

Alex Burghart Excerpts

Report stage
Tuesday 13th June 2023 Commons Chamber

1.33 pm

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

I beg to move, That the clause be read a Second time.

[Madam Deputy Speaker (Dame Eleanor Laing)]

With this it will be convenient to discuss the following:

New clause 1—Removal from the procurement supply chain of physical surveillance equipment produced by companies subject to the National Intelligence Law of the People’s Republic of China—

“(1) Within six months of the passage of this Act, the Secretary of State must publish a timeline for the removal from the Government’s procurement supply chain of physical surveillance equipment produced by companies subject to the National Intelligence Law of the People’s Republic of China.

(2) The Secretary of State must lay the timeline before Parliament.”

New clause 9—Application of this Act to procurement by NHS England—

“(1) Omit sections 79 and 80 of the Health and Care Act 2022.

(2) For the avoidance of doubt, the provisions of this Act apply to procurement by NHS England.”

This new clause includes the NHS under this Act and procurement by NHS England under the Health and Care Act 2022.

New clause 10—Tax transparency—

“(1) This section applies to any covered procurement for a public contract with an estimated value of £5 million or over.

(2) When assessing tenders under section 19 or awarding a contract under section 41 or 43, a contracting authority must require the submission of a tax report where a supplier is a multi-national supplier.

(3) Where a multi-national supplier fails to submit a tax report, a contracting authority must exclude the supplier from participating in, or progressing as part of, the competitive tendering procedure.

(4) Subject to subsection (5), a contracting authority that enters into a contract with a multi-national supplier must publish a copy of the tax report—

(a) if the contract is a light touch contract, before the end of the period of 120 days beginning with the day on which the contract is entered into;

(b) otherwise, before the end of the period of 30 days beginning with the day on which the contract is entered into.

(5) Where a copy of a contract is by virtue of regulations under section 95 published under section 53(3) on a specified online system, the tax report relating to that contract must be published on the same specified online system—

(a) if the contract is a light touch contract, before the end of the period of 120 days beginning with the day on which the contract is entered into;

(b) otherwise, before the end of the period of 30 days beginning with the day on which the contract is entered into.

(6) A ‘multi-national supplier’ is a supplier with two or more enterprises that are resident for tax purposes in two or more different jurisdictions.

(7) A ‘tax report’ means a report setting out—

(a) the income booked in the UK,

(b) the profit before tax attributable to the UK,

(c) the corporate income tax paid on a cash basis in the UK,

(d) the corporate income tax accrued on profit/loss attributable to the UK, and

(e) any other information specified in regulations under section 95

for the multinational supplier.

(8) A Minister of the Crown may by regulations amend this section for the purpose of changing the financial threshold.”

This new clause would require large multinational corporations bidding for a public contract to provide information about their Income booked in the UK, their profit before tax attributable to the UK, their corporate income tax paid on a cash basis in the UK and their corporate income tax accrued on profit/loss attributable to the UK, and that information to be published.

New clause 11—Public interest—

“(1) Where a contracting authority is considering outsourcing public services that are at the time of consideration delivered in-house or where contracts are due for renewal, the contracting authority must demonstrate that they have considered whether outsourcing or re-contracting provides greater public value than direct service provision.

(2) As part of the duty in subsection (1), the contracting authority should demonstrate that it has assessed the potential benefits and impact of outsourcing the service in question against a public sector comparator with assessments being based on criteria to be set by the Secretary of State, including taking a five year consideration of—

(a) service quality and accessibility;

(b) value for money of the expenditure;

(c) implications for other public services and public sector budgets;

(d) resilience of the service being provided;

(e) implications for the local economy and availability of good work in relevant sub-national labour markets;

(f) implications for public accountability and transparency;

(g) effect on employment conditions, terms and standards within the provision of the service to be outsourced and when outsourced;

(h) implications for public sector contributions to climate change and environmental targets;

(i) implications for the equalities policies of the contracting authority and compliance with the public sector equality duty.

(3) The contracting authority and the supplier of the outsourced service must monitor the performance of any contracted service against the public interest test and the stated objectives set by the contracting authority pre-procurement to demonstrate that outsourcing the service in question has not resulted in a negative impact on any of the matters mentioned in subsection (2)(a) to (i).

(4) The Secretary of State must from time to time set budget thresholds for when a public interest test would be required.”

The new clause would create a process to ensure that contracting authorities safeguard the public interest when considering whether or not to outsource or recontract services.

New clause 12—Protection of subcontractors’ payments under construction contracts—

“(1) A project bank account must be established for the purpose of subsections (2) to (4) in accordance with the following requirements—

(a) the account must be set up by the contracting authority and the contractor under a construction contract as joint account-holders;

(b) the monies in the account are held in trust by the contracting authority and contractor as joint trustees;

(c) the contracting authority must deposit in the account all sums becoming due to the beneficiaries and any disputed sums must remain in the account until the dispute is resolved and any retention monies remain in the account until they are released to the beneficiaries;

(d) due payments from the account must be made to all beneficiaries simultaneously; and

(e) the beneficiaries include—

(i) the contractor;

(ii) all subcontractors where the value of each subcontract is at least 1% of the value (excluding VAT) of the construction contract entered into between the contracting authority and the contractor; and

(iii) any other subcontractor which has specifically requested that its payments be discharged through the account.

(2) Subsections (3) and (4) have application to construction contracts having a value in excess of £2 million (excluding VAT).

(3) Not later than 30 days after entering into a construction contract a contracting authority must ensure that a project bank account is in place.

(4) In the event that a contracting authority fails to comply with this subsection the construction contract ceases to be valid and may not be enforced by either party.

(5) The Secretary of State must provide statutory guidance on the operation of project bank accounts to ensure that such operation is standardised amongst all contracting authorities.

(6) Subsections (7) to (10) apply where retention monies are not protected within a project bank account.

(7) The contracting authority must establish a retention deposit account with a bank or building society which fulfils the requirements of subsection (1)(a) and (b).

(8) On each occasion that retention monies are withheld the contracting authority must lodge them within the retention deposit account and maintain a record of the names of each subcontractor having contributed to the withheld monies and the amount of the monies contributed by each.

(9) Subject to subsection (10), not later than 30 days after the date of handover of each subcontracted works at least 50% of the withheld retention monies must be released, and not later than the date which is 12 months from the date of handover of each subcontracted works the balance of the retention monies must be released.

(10) A contracting authority has a right of recourse to subcontractors’ retention monies but such right is limited to any subcontractor which is in default of its subcontract in having delivered works which are defective and in breach of the subcontract.

(11) Paragraphs (9) and (10) also apply where retention monies are protected in a project bank account.

(12) Non-compliance with subsections (6) to (11) renders any entitlement to withhold retention monies in a construction contract or subcontracts of no effect.

(13) Subsections (6) to (12) do not affect the right of any subcontractor to pursue recovery of any outstanding or wrongfully withheld retention monies against its other contracting party.

(14) The Secretary of State must provide statutory guidance on the operation of retention deposit accounts to ensure such operation is standardized amongst all contracting authorities.

(15) Any dispute under this section is referrable to adjudication in accordance with section 108 of the Housing Grants, Construction and Regeneration Act 1996.

(16) The Secretary of State must carry out a review of the operation of this section within 5 years of it coming into force.

(17) In this section—

“bank” has the meaning given to it in section 2 of the Banking Act 2009;

“building society” has the meaning given to it in section 119 of the Building Societies Act 1986;

“contractor” is the party engaged under a construction contract with a contracting authority;

“construction contract” has the meaning given to it in section 104, Housing Grants, Construction and Regeneration Act 1996;

“handover of each subcontracted works” signifies the date when the works as defined in each subcontract are substantially complete;

“project bank account” is an account set up with a bank or building society which has the requirements listed in subsection (2);

“retention monies” mean a proportion of monies withheld from payments which would otherwise be due under a construction contract, subcontract or any ancillary contract the effect of which is to provide security for the current or future performance by the party carrying out the works;

“subcontract” and “subcontractor” includes sub-subcontracts and sub-subcontractors.”

This new clause ring-fences monies due to subcontractors in construction supply chains through mandating use of project bank accounts and ensuring retention monies are safeguarded in a separate and independent account.

New clause 13—Dependence on high-risk states—

“(1) The Secretary of State must within six months publish a plan to reduce the dependence of public bodies upon goods and services which originate in whole or in part in a country considered by the United Kingdom as a high risk sourcing country.

(2) For the purposes of this section, a country is considered a high risk sourcing country by the United Kingdom if it is defined as either a systemic competitor or a threat in the latest Integrated Review of Security, Defence, Development and Foreign Policy.”

New clause 14—Procurement and human rights—

“(1) A contracting authority may apply a policy under which it does not contract for the supply of goods, services or works from a foreign country or territory based on the conduct of that foreign country or territory relating to human rights, provided that—

(a) the contracting authority has a Statement of Policy Relating to Human Rights, and

(b) that statement of policy is applied consistently and not specifically to any one foreign country or territory.

(2) Within six months of the passage of this Act, the Secretary of State must publish, and lay before Parliament, guidance on the form, content and application of Statements of Policy Relating to Human Rights for the purposes of subsection (1).

(3) Contracting authorities must have regard to the guidance published under subsection (2) when applying a policy in accordance with subsection (1).”

This new clause would enable public authorities to choose not to buy goods or services from countries based on their human rights record. They would not be able to single out individual nations to apply such a policy to, but would have to apply it consistently, and in accordance with guidance published by the Secretary of State.

New clause 16—Eradicating slavery and human trafficking in supply chains—

“(1) The Secretary of State must by regulations make such provision as the Secretary of State thinks appropriate with a view to eradicating the use in covered procurement of goods or services that are tainted by slavery and human trafficking.

(2) The regulations may, in particular, include—

(a) provision as to circumstances in which a supplier is excluded from consideration for the award of a contract;

(b) provision as to steps that must be taken by contracting authorities for assessing and addressing the risk of slavery and human trafficking taking place in relation to people involved in procurement supply chains;

(c) provision as to matters for which provision must be made in contracts for goods or services entered into by contracting authorities, including mandating or enabling the use of forensic supply chain tracing.

(3) In this section— “forensic supply chain tracing” is the process of using forensic techniques to track the movement of goods and services through a supply chain; “slavery and human trafficking” has the meaning given by section 54(12) of the Modern Slavery Act 2015; “tainted”: goods or services are “tainted” by slavery and human trafficking if slavery and human trafficking takes place in relation to anyone involved in the supply chain for providing those goods or services.”

New clause 17—Food procurement—

“(1) A public contract which includes the supply of food must include provisions ensuring that the supply of food under that contract—

(a) is aligned with the Eatwell Guide, and

(b) includes options suitable for a plant-based diet.

(2) The ‘Eatwell Guide’ is the policy tool used to define government recommendations on eating healthily and achieving a balanced diet published by Public Health England on 17 March 2016, as updated from time to time.”

This new clause would require public contracts for the supply of food to be aligned with current nutritional guidelines and to include plant-based options.

Amendment 14, in clause 2,  page 2, line 15, after “funds,” insert “including the NHS,”.

This amendment includes the NHS in the definition of a public authority for the purposes of this Act.

Government amendments 19 and 20.

Amendment 60, in clause 13, page 10, line 11, at end insert—

“(3A) When the Minister lays the statement before Parliament, the Minister must also lay before Parliament a report which sets out—

(a) the Secretary of State’s assessment of the impact of the statement on meeting environmental and climate targets,

(b) the steps the Secretary of State has taken or intends to take in relation to procurement to support the meeting of those targets.”

This amendment would require the Secretary of State to explain in a report laid before Parliament the Government’s assessment of the impact of the national procurement policy statement on meeting environmental and climate targets and to set out any intended steps in relation to the meeting of those targets.

Amendment 4, in clause 19, page 13, line 31, at end insert—

“(aa) must disregard any tender from a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors;”

This amendment, together with Amendments 5 to 8, is designed to ensure that no public contract can be let unless the supplier guarantees the payment of the Real Living Wage to all those involved in the delivery of the contract.

Amendment 5, in clause 41, page 28, line 26, at end insert—

“(3A) A contracting authority may not award a contract under this section to a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors.”

See explanatory statement to Amendment 4.

Amendment 1, in clause 42, page 29, line 14, at end insert—

“(3A) Provision under subsection (1) must not confer any preferential treatment on suppliers connected to or recommended by members of the House of Commons or members of the House of Lords.”

This amendment is intended to prevent the future use of “VIP lanes” for public contracts.

Government amendments 21 to 23.

Amendment 6, in clause 43, page 30, line 3, at end insert—

“(5A) A contracting authority may not award a contract under subsection (1) to a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors.”

See explanatory statement to Amendment 4.

Amendment 2, in clause 44, page 30, line 16, at end insert—

“(4) Any Minister of the Crown, Member of Parliament, Member of the House of Lords or senior civil servant involved in recommending a supplier for a contract under section 41 or 43 must make a public declaration to the Cabinet Office of any private financial interest in that supplier within 10 working days.”

This amendment would implement a recommendation by the National Audit Office that any contracts awarded under emergency provisions or direct awards should include transparency declarations.

Amendment 7, in clause 45, page 31, line 6, at end insert—

“(aa) permit the award of a public contract to a supplier that does not guarantee the payment of at least the Real Living Wage to all its own employees and contracted staff and those of any sub-contractors.”

See explanatory statement to Amendment 4.

Government amendments 24 to 30.

Amendment 61, in clause 58, page 40, line 38, leave out paragraph (c).

This amendment would remove provision allowing a contracting authority to have regard to commitments to prevent circumstances giving rise to the application of an exclusion ground from occurring again when considering whether a supplier should be excluded.

Amendment 62, page 40, line 41, leave out paragraph (e).

This amendment would remove provision allowing a contracting authority to have regard to evidence, explanations or factors not specified elsewhere in the clause when considering whether a supplier should be excluded.

Amendment 63, page 41, line 8, leave out subsection (3).

This amendment removes clause 58 (3), which limits the ability of a contracting authority to require whatever evidence is necessary to make their assessment about whether a supplier is reliable.

Government amendments 31 to 50.

Amendment 17, in clause 68,  page 49, line 15, at end insert—

“(10A) Within a year of the passage of this Act, the Secretary of State must prepare, publish and lay before Parliament a report on the effectiveness of this section in ensuring prompt payment of small and medium-sized enterprises.

(10B) Not later than 6 months after the report has been laid before Parliament, a Minister of the Crown must make a motion in the House of Commons in relation to the report.”

This amendment would require the Government to report to Parliament on the effectiveness of this section in ensuring prompt payment of SMEs.

Amendment 68, in clause 71,  page 51, line 11, at end insert—

“(6A) When a planned procurement notice is published under section 15 or a tender notice is published under section 21, the contracting authority must include a statement of the outcomes which the contract is intended to achieve.

(6B) The contracting authority must commission an independent evaluation of whether each contract delivered the outcomes mentioned in subsection (6A), unless the contract is excluded by regulations under subsection (6D).

(6C) An evaluation under subsection (6B) must—

(a) be performed by an independent body in accordance with UK Government Evaluation Standards, and include a clear recommendation on whether similar further public contracts should be begun, renewed or extended;

(b) be commissioned in time to be completed within six months of contract termination, renewal or extension;

(c) be published in full by the contracting authority immediately it is received from the independent external body.

(6D) The Secretary of State may by regulations specify types of contracts that do not require independent evaluations under subsection (6B).

(6E) Where the independent evaluation under subsection (6B) recommends that similar public contracts should not be begun, extended or renewed, any contracting authority which nonetheless intends to do so must publish its reasons not less than 30 days before the agreement is begun, extended or renewed.”

Government amendments 51 to 55.

Amendment 13, page 78, line 12, leave out clause 119.

Amendment 8, in clause 122, page 82, line 5, at end insert—

“‘Real Living Wage’ means the hourly wage rates for London and for outside London calculated annually by the Resolution Foundation and overseen by the Living Wage Commission (or their successor bodies);”.

This amendment inserts a definition of the Real Living Wage for the purposes of Amendments 4 to 7.

Government amendment 56.

Amendment 64, in schedule 6, page 106, line 7, at end insert

“or an offence under section 86, 88 or 92 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.”

This amendment is intended to ensure that the full range of criminal offences for money laundering are properly captured for the purposes of exclusion from public procurement.

Amendment 65, page 106, line 12, leave out “or 6” and insert ”, 6 or 7”.

This amendment includes the failure of commercial organisations to prevent bribery as an offence which is a mandatory exclusion ground.

Amendment 66, page 106, line 14, at end insert—

18A An offence under Schedule 3 of the Anti-Terrorism, Crime and Security Act 2001 (sanctions evasion offences).”

This amendment is intended to make criminal offences for sanctions evasion grounds for mandatory exclusion from public procurement.

Government amendment 57.

Amendment 15, page 110, line 12, at end insert—

“National security

42A A mandatory exclusion ground applies to a supplier if a decision-maker determines that the supplier or a connected person poses a threat to the national security of the United Kingdom.”

This amendment would move national security from among the discretionary exclusion grounds in Schedule 7 to the mandatory exclusion grounds in Schedule 6.

Government amendment 58.

Amendment 18, in schedule 7, page 113, line 2, at end insert—

“1A A discretionary exclusion ground applies to a supplier if a contracting authority determines that a supplier, within a year leading to the date of tender—

(a) has been found by an employment tribunal or court to have significantly breached the rights of an employee or worker engaged or formerly engaged by it with one or more aggravating features, or has admitted to doing so; and

(b) has not conformed with applicable obligations in the fields of environmental, social and labour law established by national law, collective agreements or international environmental, social and labour law provisions; and

(c) has not taken steps to rectify the situation through—

(i) paying or undertaking to pay compensation in respect of any damage caused by the breach of rights; and

(ii) clarifying the facts and circumstances in a comprehensive manner by actively collaborating with any relevant employment tribunal or court process and the parties thereto; and

(iii) taking concrete technical, organisational and personnel measures appropriate to prevent further breaches of rights of a similar kind.

1B In making a decision on whether a discretionary exclusion ground applies to a supplier under paragraph 1A, a contracting authority must—

(a) evaluate the adequacy of any action taken by the supplier in accordance with sub-paragraph (c) of that paragraph, taking into account the gravity and particular circumstances of the breach or breaches of rights, and

(b) make reasonable provision for the employer and the employee or worker concerned to make representations, which may be made by agreement by a trade association or trade union.”

This amendment would give contracting authorities the discretion to exclude suppliers who have significantly and repeatedly breached the rights of staff in the last year unless they have “self-cleansed”.

Amendment 67, page 113, line 17, at end insert—

“Financial and economic misconduct

3A A discretionary exclusion ground applies to a supplier if the decision-maker considers that there is sufficient evidence that the supplier or a connected person has engaged in conduct (whether in or outside the United Kingdom) constituting (or that would, if it occurred in the United Kingdom, constitute) any of the following offences—

(a) an offence under section 327, 328 or 329 of the Proceeds of Crime Act 2002 (money laundering offences);

(b) an offence under section 86, 88 or 92 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017;

(c) an offence under Schedule 3 to the Anti-terrorism, Crime and Security Act 2001 (sanctions evasion offences);

(d) an offence under section 2, 3, 4, 6 or 7 of the Fraud Act 2006 (fraud offences);

(e) an offence under section 993 of the Companies Act 2006 (fraudulent trading);

(f) an offence under section 1, 2, 6 or 7 of the Bribery Act 2010 (bribery offences).”

This amendment is intended to allow relevant Ministers and Contracting Authorities the power to exclude suppliers from procurement where they have evidence of financial and economic criminal activity, such as fraud, money laundering, bribery or sanctions evasion, but there has not yet been a conviction by a court.

Amendment 16, page 116, line 6, at end insert—

“Sanctions offences

14A(1) A discretionary exclusion ground applies to a supplier if the decision-maker considers that the supplier or a connected person has engaged in conduct constituting—

(a) An offence established in any regulations made under Part 1 of the Sanctions and Anti-Money Laundering Act 2018;

(b) An offence established under Part 5 of the Customs and Excise Management Act 1979.

(2) A discretionary exclusion ground applies to a supplier if the decision-maker considers that there is sufficient evidence that the supplier or a connected person has engaged in conduct outside of the United Kingdom that could result in such an offence being committed if that conduct occurred in the United Kingdom.”

This amendment would create a discretionary exclusion ground where a supplier (or connected person) has violated UK sanctions or export controls, or would have done so if they were in the UK.

Amendment 3, page 116, line 10, at end insert—

“Involvement in forced organ harvesting

14A(1) A discretionary exclusion ground applies to a supplier if a decision-maker determines that the supplier or a connected person has been, or is, involved in—

(a) forced organ harvesting,

(b) unethical activities relating to human tissue, including anything which involves the commission of an offence under sections 32 (prohibition of commercial dealings in human material for transplantation), 32A (offences under section 32 committed outside UK) or 33 (restriction on transplants involving a live donor) of the Human Tissue Act 2004, or under sections 20 (prohibition of commercial dealings in parts of a human body for transplantation) or 20A (offences under section 20 committed outside UK) of the Human Tissue (Scotland) Act 2006, or

(c) dealing in any device or equipment or services relating to conduct mentioned in paragraphs (a) or (b).

(2) “Forced organ harvesting” means killing a person without their consent so that their organs may be removed and transplanted into another person.”

This amendment is designed to give a discretionary power to exclude suppliers from being awarded a public contract who have participated in forced organ harvesting or unethical activities relating to human tissue, including where they are involved in providing a service or goods relating to such activities.

Government amendment 59.

[Alex Burghart]

It is a genuine honour to take the Procurement Bill through Report stage. As the House will know, this is a major piece of post-Brexit legislation that enables us, for the first time in many decades, to reform our procurement system, to the benefit of contracting authorities, suppliers and taxpayers.

I begin with new clause 15 and amendment 52. We are inserting into the Bill a new clause that allows us to meet the UK’s international obligations on record keeping. We are strengthening record keeping obligations in the Bill to more fully reflect our obligations in both the agreement on Government procurement—the GPA—and the comprehensive and progressive agreement for trans-Pacific partnership. They both require records to be kept for a minimum of three years. New clause 15 sets out the obligation on contracting authorities to

“keep such records as the authority considers sufficient to explain a material decision made for the purpose of awarding or entering into a public contract.”

A material decision is one that requires a contracting authority

“to publish or provide a notice, document or other information in relation to the decision”,

or decisions, that are required to be made under the Bill. Records must be kept for three years from award of, or entry into, a contract—or, if the contract is awarded but not entered into, from the date of the decision not to enter into it.

The primary goal of the Bill is to streamline procurement regulations and ensure the overall efficiency of the system, while avoiding overwhelming businesses and contracting authorities with a multitude of rules and regulations—a point that we will no doubt return to this afternoon. As such, and in line with international requirements, the obligations attach only to the award of, and entry into, contracts; they do not apply to the management stage of a contract.

Information on the management of major contracts will of course be put into the public domain, thanks to the Bill’s considerable transparency obligations. That includes information on key performance indicators, such as performance against them; information on amendments to contracts; and information on contract termination, which will require reporting on performance. The time limit already in the Bill on the duty to maintain records of communications with suppliers is being relocated to sit alongside the new record keeping duty. The record keeping requirement is intended to act as a minimum; contracting authorities may of course keep records for longer, and indeed may be required to do so under other legislation.

Government amendments 24 and 25 change the point at which, under clause 52(1), contracting authorities are required to publish key performance indicators. They will no longer have to do so before entering into a public contract. Instead, there will be a requirement to publish them under proposed new subsection (2A) of clause 52. Clause 53, on contract details notices, provides that the details of KPIs will be specified in regulations under clause 95. That is because it is not possible to publish the KPIs before entering into the public contract, as they arise as part of the process of entering into the contract.

Government amendments 19, 20 and 56 make a necessary technical adjustment to ensure that the City of London Corporation is caught by the Bill in respect of its public sector functions, but not its commercial functions. The Bill is intended to apply to local authorities—clause 2 makes it clear that publicly funded bodies are caught by it—but due to its evolution and structure, the corporation does not operate solely as a local authority. It has significant private sector trading activities—for example, it operates private schools and undertakes property management—that are clearly not intended to be caught by the Bill. Unlike district and county councils, being a local authority is not the corporation’s raison d’être; rather, it has some local authority functions bolted on to its wider organisational functions. Without the amendments to clause 2 and schedule 2, there would be a risk of unintended consequences; the Bill would apply to either all the corporation’s activities, including its commercial activities, or none of them, depending on whether the corporation’s balance of income was derived mainly from its trading activities or from public funds in any one year.

Government amendments 21 to 23 resolve a drafting inconsistency between clause 19, which governs the award of contracts following a competitive procedure, and clause 43, which has rules allowing a contracting authority to switch to direct award if no suitable tender was received in a competition. Under clause 19, a tender may be disregarded in a competition if it breaches a procedural requirement set by the contracting authority—for example, if it is submitted late or is over its word count. Abnormally low tenders can also be disregarded, provided the tenderer has advance notification and the chance to respond, pursuant to subsections (4) and (5).

The changes proposed to clause 43 will ensure that only a material breach of procedural requirements will render a tender unsuitable: for example, being 10 words over the set count should not result in an unsuitable tender permitting direct award. Abnormally low tenders cannot be deemed unsuitable unless the supplier has had an opportunity to demonstrate that it will be able to perform the contract for the price offered, as is required under clause 19.

Moving on to amendment 59, paragraph 2(3) of schedule 10 inserts new section 14(5A) into the Defence Reform Act 2014. The DRA, and the Single Source Contract Regulations 2014 made under it, make provision for the pricing of defence contracts to procure goods, works and services that are not let competitively and meet the necessary criteria, including a financial threshold. New section 14(5A) is being introduced to address uncertainty about when an agreement for new goods, works and services should be regarded as an amendment to an existing contract within the scope of the DRA regime, and when it should be regarded as a new contract in its own right. The proposed new subsection currently addresses the situation by identifying two specific categories of existing contract not subject to the DRA regime that, when amended on a non-competed basis to add further goods, works or services, would become subject to that regime.

A third such category of contract not currently addressed by proposed section 14(5) has subsequently come to light. That category covers a single source contract that was below the financial threshold set by the SSCRs that is subsequently amended to add new goods, works and services that take it above that threshold. Amendment 59 will ensure that such contracts are brought within the regulation-making power. A hypothetical example would be a contract that was let competitively for £6 million a few years ago and was not subject to the regulations, where proposed section 14(5) and section 14(3)(b) —which excludes contracts let through competitions—did not apply, and a single source amendment was subsequently placed a few years later for £10 million of new work. That kind of amendment is referred to in section 14(5), and under the proposed new regulations, it would be treated as a new contract for the purposes of the regulations. Under the current wording of schedule 10, the agreement covering the new work would fall under the regulations.

Amendments 38, 32, 36, 37, 39 to 51, 57 and 58 significantly strengthen the exclusions and debarment provisions for exclusion on national security grounds. As the Bill stands, placing a supplier on the debarment list on national security grounds will make it excludable from all contracts within the scope of the Bill. That means that the supplier will be identified as posing a threat to the national security of the UK, but contracting authorities will have discretion as to whether they exclude the supplier in each particular procurement. Having engaged with colleagues in the House and reflected on their concerns, I can confirm that the Government are content to further strengthen those provisions. The new amendments will enable a Minister of the Crown to take a stronger approach in response to a specific risk profile of a particular supplier and make targeted decisions about whether the debarment should be mandatory for particular types of contracts, depending on the nature of the risk.

[Bob Seely (Isle of Wight) (Con)]

I thank the Minister for the work he has been doing on the Bill, and for listening to colleagues—there is more work to be done, but we are certainly moving in the right direction. There is an issue about dual use stuff: we are talking about national security, but for technology such as cellular modules in Government cars that may or may not be being used by competitor nations to listen in to conversations, it is not just a narrow definition that we should be worried about, but a rather more expansive definition of some of the risks posed by that technology and where it is placed in either very specific national security contexts or, more broadly, among things that are critical to our national infrastructure.

[Alex Burghart]

I thank my hon. Friend for his remarks, and for the constructive dialogue that we have had while preparing for today’s debate. As he hopefully knows from what we have already said on this subject—he will hear it again in what I am about to say—the structure that we are putting in place will be able to make exactly that sort of assessment.

If a supplier poses an unacceptable risk in relation to certain goods, such as network communications equipment, the Minister will be able to enter on the debarment list that that supplier is an excluded supplier for contracts for the supply or support of that type of equipment, but that will not necessarily mean that the supplier will be excluded from all other types of contract. Similarly, the entry may also—or as an alternative—stipulate that the supplier is excluded from contracts relating to certain locations or sites, or contracts let by certain contracting authorities. That removes discretion from contracting authorities regarding exclusions where a supplier poses a threat for particular contracts, thereby reducing the risk of a supplier being allowed to participate in a procurement when they should not be.

By allowing this type of targeted and proportionate approach, we can direct that suppliers must be excluded where the risks are unacceptable, and allow contracting authorities to make appropriate choices where a risk is manageable—for example, if a supplier is providing pencils or plastic furniture. We think that approach to national security exclusions is both proportionate and robust, and will allow us to effectively counter the risk posed by some suppliers, including those that many in this House are concerned about.

[Damian Green (Ashford) (Con)]

The Minister has said that he wants a proportionate response and I take that point. I also thank him for the talks we have had about this issue, which is the basis of my support for new clause 1. However, one thing he has not yet addressed is the timescale. Clearly, a lot of kit that we would regard as suspicious under the Bill needs to be removed. Can he give some indication of what sort of timescale we will need to remove it?

[Alex Burghart]

I thank my right hon. Friend for the constructive conversations that we have had in getting ready for today’s debate. He is slightly pre-empting some remarks that I will come to later. I hope that he saw the announcement that the Government made the other day. It is in the nature of the work that we are doing that, first, we wish to remove devices and components that pose a security risk to sensitive sites—I will say more about the timescale for that later. Secondly, we intend through the use of the unit and the provisions in the Bill to prevent similar devices and components from entering our sites in future. It is a two-part process: first, get rid of what is already there and, secondly, prevent other such services from coming in in future.

[Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)]

The Minister has mentioned sensitive sites. I do not quite understand what that phrase means—I am hoping that we will get a proper explanation in due course—but what I would observe is that, as far as I can see, every single Government site is by nature and definition sensitive. The Department for Work and Pensions is very sensitive because any disruption of its payments would render the UK in a terrible state. Is it not the case that all Departments of central Government are by nature sensitive sites and, therefore, should take upon themselves the reality that they must all rid themselves of these things?

--- Later in debate ---

[Alex Burghart]

My right hon. Friend makes a good point, and I thank him for his constructive engagement with me and the Minister for the Cabinet Office on this issue. We understand and hear his concerns about sensitive and non-sensitive sites—not least, we understand his view that the definition could incorporate a broader range of assets, where information gleaned on the movement of officials and politicians could be detrimental to our national security. We will continue to work on that issue with him, both in today’s debate and in the Lords debate that will follow it. I am sure that we can reach a sensible conclusion that will be to his satisfaction.

[Bob Seely]

If I remember correctly, in January, the security services took apart a UK Government vehicle because data was being transferred via a Chinese cellular module, a Chinese eSIM. We do not know who was in that car—whether it was the Defence Secretary or the Prime Minister. Evidence from a separate Tesla car scandal suggests that it would be possible for Chinese engineers to record private conversations using cellular modules. Just out of curiosity—I suspect I know the answer—are we ever going to get an update on what happened to that car and what was happening with it?

[Alex Burghart]

My hon. Friend will know that I am not in a position to comment on matters of national security, but he will have heard me say in answer to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) that we understand the view that the definition in the Bill could incorporate a broader range of assets, where information is gleaned on the movement of officials and politicians that could be detrimental to national security.

Amendment 34 will commit a Minister of the Crown to keep suppliers under review for potential investigation for debarment on national security grounds. We recognise that proactive consideration of suppliers will be highly advantageous in minimising the risk of suppliers who pose a threat to our national security being awarded public contracts. The amendment will therefore commit Ministers to proactively consider a new debarment investigation where there is evidence of risk, so that the Government can act effectively and on time.

I am also pleased to announce that the Government will be creating a new specialist unit with dedicated resources within the Cabinet Office to take on and manage this new approach. That new national security unit for procurement will regularly monitor Government supply chains and review pertinent information to determine which suppliers should be investigated for debarment on national security grounds. The unit will be able to draw on the full range of expertise within government and access the latest intelligence, including that from Five Eyes partners. It will be able to respond swiftly to emerging threats. The unit will also carry out investigations of suppliers for potential debarment, which will be overseen by a committee. Following the outcome of an investigation, the committee will make recommendations to the Minister as to whether the supplier should be added to the debarment list. The final decision will be made by the Minister.

[Anthony Mangnall (Totnes) (Con)]

The Minister is making an excellent speech and I agree with the broad thrust of everything he is saying, but in terms of the practical application—how we debar businesses and organisations bidding in through a procurement process—can he just tell us how long an investigation would take? I realise it would be a case-by-case process, but if a procurement tender is put out, and a business or entity bids into it, how long would it expect that investigation to go on before that business or entity is debarred or not?

[Alex Burghart]

My hon. Friend will know that is a length of a piece of string question. In setting up the unit and providing it with resource, we are mindful of the need for it to be able to respond swiftly to emerging threats and to new entities. The unit will not serve its purpose if investigations go on too long. I cannot give him any guarantees on maximum length of time for investigation, but I can assure him that those concerns are very much in our thoughts as we go about establishing this new way of working.

The new unit will also have a role in supporting and upskilling contracting authorities. By directly engaging with them and providing guidance, the unit will help contracting authorities confidently implement the national security exclusion and debarment regime correctly, maximising its effectiveness.

Amendments 26, 27, 29, 30, 31, 33, 35, 38, 53, 54 and 55 are minor and technical amendments to ensure that the exclusions and debarment regimes can function effectively.

I take this opportunity to thank all colleagues who have engaged with us on this, including my hon. Friend the Member for Rutland and Melton (Alicia Kearns), who is not in her place today. She has been instrumental in helping us to formulate these ideas in regard to national security and in particular our commitment to the national security unit for procurement.

The Government are taking national security extremely seriously, as the Bill and the amendments just mentioned make clear. Concerns have been expressed in the House regarding the use of surveillance equipment provided by entities subject to the national intelligence law of the People’s Republic of China, the risks of which we fully understand. I take this opportunity to remind the House that, in November, the Government published a written ministerial statement asking Departments to consider the removal of visual surveillance equipment from Government sensitive sites and to cease any future procurement of such equipment.

Today, we are going further. I commit to this House that, within six months of the Bill’s Royal Assent, the Government will set out the timeline for the removal of surveillance equipment supplied by companies subject to the national intelligence law of China from sensitive sites. I make it clear that we are taking firm and decisive action on this important matter and that we will be held to account for that action. That is why we will provide a clear plan for delivering on it, adhering to the timeline requested by my right hon. Friend the Member for Chingford and Woodford Green. I hope that addresses his and other Members’ wishes that the Government take appropriate action.

If I may, I will address two final points. First, I thank each of the devolved Administrations for their constructive engagement during the drafting and passage of the Bill. I am pleased that the Senedd and the Scottish Parliament have agreed to the procurement aspects of the Bill, which are the vast majority of the clauses. However, despite our best efforts and several amendments, we have been unable to secure full legislative consent motions for the concurrent powers in the Bill relating to the implementation of international obligations. That is disappointing, but not unexpected, given that it is consistent with the position taken by the Scottish and Welsh Governments on the recent Trade (Australia and New Zealand) Act 2023.

I reassure the House that, as with current practice, we will continue to engage and consult with the devolved Administrations if they choose not to legislate for themselves in implementing the UK’s international obligations, in so far as they relate to areas of devolved competence. In the absence of a Northern Ireland Executive, a legislative consent motion for Northern Ireland was not possible. However, the permanent secretary for the Northern Ireland Department of Finance has written to the permanent secretary of the Cabinet Office to welcome the Bill as drafted and the close working relationship that has developed between officials.

Secondly, I take the opportunity to clarify the rules for private utilities where they have been directly awarded rights, for example, through a directly awarded contract at the request of the Department for Transport. Private utilities are within the scope of the Bill only where they have been granted a special or exclusive right to carry out a utility activity, effectively creating a monopoly situation. Clause 6(4) clarifies that the right is not special or exclusive where the right is granted following a competitive tendering procedure under the Bill or otherwise on the basis of a transparent procedure and non-discriminatory criteria. That has the effect, for example, that, if a contract for a utility activity with an incumbent supplier is renewed or replaced without competition, the supplier will have been granted a special or exclusive right. The supplier would therefore be classed as a private utility under the Bill. An example would be where an incumbent train operating company awarded a contract following competition has been directly awarded a new contract under DFT legislation.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

Three years ago, in the aftermath of the covid-19 pandemic, vital frontline staff across our NHS were struggling against dangerously low stocks of personal protective equipment. We all heard the stories of frontline workers in the early stages of the pandemic. These stories show us the impact of not procuring adequate reserves for a pandemic such as covid-19, and they show us why we need the right culture to rapidly respond to emergency procurement demands whenever they may show. Sadly, what we saw during the pandemic did not live up to standards. What followed, with the horror stories of frontline workers in the early stages of 2020, was a case study in wasteful and inefficient emergency procurement.

In January, the National Audit Office found that nearly £15 billion was wasted on unused covid supplies. That is £15 billion that could be going towards tens of thousands of full-time nursery places. It is £15 billion that could be going towards clearing the backlog in our NHS. It is £15 billion that could hand every single person in this country £220 and still have change left over. Instead, the incompetence we saw from this Government cost this country a fortune. In fact, the Government’s record keeping was so flawed that the Public Accounts Committee’s July 2022 report on the awarding of contracts to Randox during the pandemic stated it was

“impossible to have confidence that all its contracts with Randox were awarded properly.”

It is not just incompetence that costs the country. During the pandemic, the Government created a VIP lane for those offering to provide PPE. The system was extremely useful for some suppliers, with the Public Accounts Committee finding that one in 10 suppliers coming through the high-priority lane were awarded a contract. That compares with just one in 100 for the ordinary lane. The Cabinet Office and the Department of Health and Social Care also accepted that leads that went through the high-priority lane were handled better. Who was in that lane?

In the Public Account Committee’s report on PPE procurement, it stated

“The British Medical Association and the Royal College of Nursing told us that their organisations did not have access to the high-priority lane, even though they were being contacted by, and therefore would have been able to put forward, credible leads based on the knowledge of their members. The British Medical Association also noted that suppliers which had contacted them, including suppliers trusted by doctors, tried the normal channels of reaching out to the Government but had ‘hit a brick wall’. Care England told us that it had similarly shared the details of potential suppliers but there had been no follow-through.”

Instead, those with contacts with Government Ministers and officials, MPs and Members of the House of Lords were given access to this VIP lane. That included PPE Medpro, a company set up only a few days before but—surprise, surprise—with links to a Tory politician, which was awarded more than £200 million of public money. In total, £3.4 billion of taxpayers’ money in the form of contracts went to Conservative donors and friends. At a time when we were asking people up and down the country to come outside and clap, the Tory Government were giving cash to their donors. The Bill must be used to ensure that that never happens again.

--- Later in debate ---

The Bill is necessary: it is necessary to have procurement legislation and it is necessary that we ensure that it is as sound as it can be. I am not sure exactly how much time we will have for Third Reading, but I hope we will have the opportunity to thank all who took part in Committee, particularly the Clerks who, as ever, have been excellent during the passage of the Bill. We will not oppose the Bill on Third Reading, but we will do what we can to support amendments. Again, I welcome the Government’s commitment to make some changes on the back of conversations that they have had with both Conservative and Opposition Members who have been pushing for change.

[Alex Burghart]

It is a pleasure to wrap up a very interesting Report stage on this landmark piece of post-Brexit legislation that will allow our country to rewrite its procurement rules for the first time in decades.

It is a pleasure to follow the hon. Member for Aberdeen North (Kirsty Blackman), who had interesting reflections on the Bill. One could be forgiven for being able to listen to her remarks and not understand that the SNP has absented Scotland from the legislation. That is a great shame, and I believe that deep down she recognises the potential of the legislation. As the years go by, and small and medium-sized enterprises, and other businesses and contracting authorities in England, Wales and Northern Ireland benefit from the new regime, we will take pleasure in reminding businesses and contracting authorities in Scotland that it was the SNP that chose to keep Scotland out of it.

I touched on new clause 1, tabled by my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith), in my opening remarks. I am grateful for his saying that he will not push the new clause to a vote today. In return, I am pleased to reaffirm what I said earlier: we are happy to talk to him and other colleagues who are concerned about the definition of “sensitive”, to ensure that it captures the issues about which he is concerned. We do not consider “sensitive” to attach itself just to sites of military significance or intelligence centres controlled by the agencies. It goes further, and we will take his points away regarding ministerial movements.

[Sir Iain Duncan Smith]

May I be clear? On the question I was asking, and have been asking, the Government have moved, particularly in reference to the national security laws of China, but my key point is that the Government should consider that all Departments fall into that category. There should not be any “B” definition. It would be far better if everybody were incorporated into that definition by the time the Bill got to the other place. Supplication would then have to be made for a variation or change, which the Cabinet Office will make a decision about. Start with the power; then let them come and ask for it to be changed. That is the way to do it.

[Alex Burghart]

I thank my right hon. Friend for his comments. He will have heard me say earlier that we understand his views that “sensitive” could incorporate a broader range of assets, where information gleaned on the movement of officials and politicians could be detrimental to our national security.

I reaffirm our commitment to make a statement in the House within six months of Royal Assent, setting out the timeline for the removal from sensitive sites of surveillance equipment supplied by companies subject to the national intelligence law of China. I state again my gratitude to my right hon. Friend for his important work in this area and for the constructive dialogue that we have had with colleagues on the matter.

Amendment 3, tabled by the hon. Member for St Helens South and Whiston (Ms Rimmer), introduces a new ground for the exclusion of suppliers involved in forced organ harvesting. The amendment replicates an amendment made to the Bill in the other House, and subsequently removed by Committee of this House. I reassure her that the Government are not turning a blind eye to the extraordinarily important subject that she raises and highlights consistently.

We are in full agreement that complicity in the abuses associated with the overseas organ trade must not be tolerated. The Government have taken action to address that issue on a number of fronts. The Health and Care Act 2022 prohibits commercial organ tourism. I know the hon. Lady was involved in discussions leading to those provisions being included in the Act. The Government continue to monitor and review evidence relating to reports of forced organ harvesting in China, and maintain a dialogue with leading NGOs and international partners on that very important issue. I reassure her that forced organ harvesting is already covered by the exclusion grounds for professional misconduct. These grounds cover serious breaches of all ethical and professional standards—whether mandatory or not—that apply to different industries and sectors. The mandatory grounds in relation to corporate manslaughter and human trafficking are also relevant in this context. We have sought to limit the grounds—particularly those which, like this one, require an assessment of factual circumstances by the contracting authority—to those where there is a major and particular risk to public procurement. We are not aware of any evidence that a supplier to the UK public sector has been involved in forced organ harvesting, but I want to reassure the hon. Lady that the Bill will be able to deal with this horrendous practice appropriately.

--- Later in debate ---

[Debbie Abrahams]

I just want to make sure that the Minister has not forgotten my new clause 12.

[Alex Burghart]

I absolutely have not, and I am very much looking forward to getting to it after I gone through the intervening amendments. I appreciate the hon. Lady’s enthusiasm.

The mandatory grounds for exclusion cover the types of misconduct that raise only the most serious risks for contracting authorities. We have strengthened the mandatory grounds significantly in comparison with the EU regime, but they cannot and should not cover every offence that could raise a risk to contracting authorities. However, I can offer reassurance that the offences in question could justify discretionary exclusion on the ground of professional misconduct. This means that contracting authorities would have the flexibility to consider excluding the supplier, but could also factor in the nature of the contract being tendered and other relevant considerations in exercising their discretion.

Amendment 67 seeks to add a discretionary exclusion ground where there is evidence of financial and economic crime activity but there has not been any conviction of the listed offences. These concerns would already be caught by the ground of professional misconduct, which permits contracting authorities to weigh up the available evidence in the context of their procurement and use their discretion in determining whether an exclusion would be appropriate.

New clause 9, tabled by the hon. Member for Richmond Park (Sarah Olney), revisits the issues we discussed in Committee on the application of this Bill to certain healthcare services. New Clause 9 would insert a new clause 119 that would amend the Health and Care Act 2022, effectively deleting the power that enables the Department of Health and Social Care to make bespoke procurement regulations for the purposes of certain healthcare services, known as the provider selection regime. Amendment 13 deletes the existing clause 119 that provides a Minister of the Crown with a power to disapply the Bill to enable the provider selection regime regulations to be applied to those healthcare services.

The combined effect of these two amendments would be to stop the Department of Health and Social Care making separate procurement rules for certain healthcare services, and make the Procurement Bill apply to all healthcare services instead. As was discussed in Committee, the idiosyncrasies of healthcare delivery necessitate some special rules. The decision to create a free-standing scheme of healthcare-specific rules was taken in 2021 to give the NHS the tools required to deliver more joined-up patient pathways through the health system and to avoid some of the problems of double regulation of both the existing healthcare rules and the standard procurement rules. Significant effort has been expended and invested in consulting on and developing that free-standing scheme over several years now. All sides of the marketplace, including commissioners and providers in the healthcare industry, are expecting this new scheme to be delivered promptly to meet the policy aspirations that they have been so extensively consulted upon.

The Procurement Bill does not address any special measures tailored to support the healthcare reform made by the Health and Care Act 2022, as these measures have always been intended to be provided for in the new provider selection regime regulations. For example, the provider selection regime would permit direct awards to be made in defined circumstances, such as critical A&E services, that cannot be disrupted or when a certain provider is required to play a pivotal role in an integrated healthcare system. It would be incredibly unhelpful for both schemes at this critical stage, when both these healthcare regulations and the Procurement Bill are on the cusp of delivery, to start attempting to unpick it all now. Doing so would add unacceptable and entirely avoidable costs and delays to both programmes, for no tangible benefit. It would also mean more NHS contracts being subject to the rules of the Procurement Bill without due consideration of the exemptions and specific arrangements required to safeguard sustainable and joined-up delivery of NHS services to patients.

Of course Parliament will have its rightful opportunity to scrutinise the provider selection regime regulations, but it cannot be right to do this through the Procurement Bill for the purpose of killing off a near-ready scheme that supports important healthcare reforms that have already been debated and agreed by Parliament in the Health and Care Act.

Amendment 14, also tabled by the hon. Member for Richmond Park, would explicitly name the NHS in the definition of a contracting authority, a matter also discussed in Committee. Although I understand and entirely agree with the view that NHS bodies should be contracting authorities within the scope of this legislation, there is no need for any amendment in this respect, as the Bill already applies to NHS bodies in its current form.

New Clause 10, tabled by the hon. Member for Vauxhall, would require the submission of a tax report where a bidder is a multinational supplier. The tax reports of winning bidders would then be published. I understand that the aim of this amendment is to encourage contracting authorities to favour suppliers that can demonstrate responsible tax conduct. However, hon. Members will know that the basis on which contracts must be awarded under the Bill is by reference to award criteria that relate to the contract being tendered, not to other matters such as where a supplier pays tax. This is the right principle to deliver value for money for the taxpayer. Crucially, it is also a feature of the UK’s international obligations under the World Trade Organisation’s Government procurement agreement. Of course, the Government expect businesses to take all necessary steps to comply with their tax obligations. It is for His Majesty’s Revenue and Customs to enforce the law on tax, and indeed UK-based multinational enterprises are required to make an annual country-by-country report to HMRC.

Turning to amendment 2, tabled by the right hon. Member for Ashton-under-Lyne (Angela Rayner), we consider that the Bill already has the balance right in terms of achieving greater transparency on direct award. Indeed, save for the small subset of user-choice contracts, it will now be mandatory to publish a transparency notice declaring an intention to award a contract in every case. This will include confirmation of the contracting authority having undertaken a conflicts assessment prior to signature of the contract.

In addition, the Bill also requires the conflicts position to be kept under review and to be revised at key points in the procurement, which will be confirmed via the contract details notice, after the contract is signed. This further ensures contracting authorities comply with ongoing statutory requirements contained in the Bill. Of course, we are all aware that MPs and peers are already required to register their interests, and civil servants are required to confirm annually that their declarations of interest are up to date. Furthermore, the Bill includes an additional safeguard in clause 83(4) so that where

“a contracting authority is aware of circumstances that…are likely to cause a reasonable person to…believe there to be a conflict”

these must also be addressed. We take these matters very seriously, and there is no need for additional provision to cover this issue. We will continue to work with contracting authorities to show that they know the requirements around conflicts of interest and that they are implemented effectively.

On new clause 12, I welcome the ongoing efforts of the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) to improve liquidity for small businesses, including by advocating for and championing the increased use of project bank accounts. We recognise the energy and enthusiasm she brings to that campaign.

As I said in Committee, project bank accounts are most often an effective way to ensure fair payment and to protect suppliers, and they are already the Government’s preferred vehicle for construction contracts where it is cost-effective and cost-efficient. Government Departments have made a commitment to use PBAs in construction projects unless there are compelling reasons not to do so. However, it is not the Government’s position that PBAs should be mandated across all contracting authorities, as they are not always suitable or cost-effective, particularly where the subcontractor is very small or is paid more frequently than monthly, or where the supply chain is short. Instead, we intend to continue educating contracting authorities, through guidance, on the circumstances in which we believe PBAs are practical and effective.

[Debbie Abrahams]

I remind the Minister that new clause 12 covers contracts worth over £2 million, so it is not for all contracts.

[Alex Burghart]

I accept the hon. Lady’s point, but there are other circumstances to consider, which I have just outlined.

We are already working with industry to discourage the withholding of retentions by supporting zero retention for high-quality work pilot projects and reducing the default rate of retentions within certain types of contract to zero. However, we do not support dictating the operation of construction contracts to the degree proposed.

Oral Answers to Questions

Alex Burghart Excerpts

Wednesday 7th June 2023 Commons Chamber

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

Throughout the pandemic, the Government took their responsibilities to people with disabilities extremely seriously. We all remember the daily press conferences, which almost always had signers present, but that was just one element of a much broader communications strategy that ensured guidance and information were provided in easy-read, large text, audio and many other formats.

[Liz Twist]

Many people with disabilities would disagree with the Minister’s assessment of the communications and feel that, throughout the pandemic, the Government often failed to provide specific communications to disabled people about their rights and access to support. What steps is he taking to ensure that public health announcements, public health information and daily briefings are accessible to and are reaching people with disabilities, particularly those with a learning disability?

[Alex Burghart]

I thank the hon. Lady for her question. On covid, I understand that this is something the inquiry will be considering. On her broader point, she will know that the NHS and publicly funded social care in this country have a duty, under section 250 of the Health and Social Care Act 2012, to ensure that patients and people in care receive information in formats appropriate for them. I know the NHS takes that responsibility extremely seriously.

[Mr Speaker]

I call the shadow Minister.

[Yasmin Qureshi (Bolton South East) (Lab)]

Research from Scope shows that, in the last four years, the cost of running a disabled household rose from £583 a month to £975 a month. The Conservative cost of living crisis has forced disabled people to choose between using life-saving equipment and food. After 13 years of this Government, there are now over 1 million disabled people living in poverty. What action has the Minister taken to support these people?

[Alex Burghart]

The hon. Lady will know the extraordinary lengths to which this Government have gone to support people through the cost of living crisis. Help has been extended to people of all means and abilities, including the people she is speaking about, and we will continue to do what is necessary to help them.

[Nicola Richards (West Bromwich East) (Con)]

5. What steps the Government are taking to ensure that the major conditions strategy improves health outcomes for women.

Digital Economy Act 2017: Data Sharing

Alex Burghart Excerpts

Tuesday 23rd May 2023 Written Statements

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

This Government are committed to transforming the delivery of public services, so that they are easier to use, joined-up and provide better value for money to the taxpayer. To this end, the Cabinet Office has today published the Government’s response to the public consultation on new data sharing regulations, which will help more people prove who they are online so that they can access the services they need simply and quickly.

From January to March 2023, the Government consulted on draft regulations to improve data sharing so that people may more easily access public services online. The regulations would create a new objective under the Digital Economy Act 2017 for this purpose, allowing controlled data sharing between a number of public bodies already specified in the Act and with four additional organisations: the Cabinet Office, the Department for Transport, the Department for Food, Environment and Rural Affairs, and the Disclosure and Barring Service. These public bodies either hold information that can be used to verify someone is who they say they are, and/or require the outcome of such checks in order to provide access to their services. The proposed legislation would enable data sharing between the specified organisations only for the purpose of helping someone confirm their identity, when they are requesting access to a Government service online. All data sharing under the regulations would continue to comply with robust existing data protection legislation.

Every response has been read and the Government thank those respondents who expressed their views through the consultation. The devolved Administrations support the proposed regulations.

The Government are clear that there is not public support for national identity cards in the UK and this is not something prosed in, or enabled by, this legislation. Where responses did engage with the specific consultation questions, they highlighted the wider potential benefits of the data sharing regulations, including to physical health and social well-being, and we will make a minor amendment on this basis. The Government have also proposed that the draft regulations would come into force 21 days after, rather than the day after, being approved by Parliament.

The UK Government intend to take forward legislation as soon as parliamentary time allows. I have asked that the Government response be deposited in the Libraries of both Houses in Parliament and published on www.gov.uk.

[HCWS802]

Oral Answers to Questions

Alex Burghart Excerpts

Thursday 11th May 2023 Commons Chamber

[Karin Smyth (Bristol South) (Lab)]

12. What steps the Government are taking to support small and medium-sized enterprises bidding for public contracts.

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

This Government are supporting small and medium-sized enterprises in a variety of ways, from transparently publishing contract pipelines to simplifying bidding procedures. The Procurement Bill, which is making its way through Parliament and will be on Report soon, will create a simpler and more transparent procurement regime that will further open up public procurement to SMEs. The Bill includes a new duty on contracting authorities to have regard to the particular barriers facing SMEs.

[Karin Smyth]

I am pleased to hear about the Procurement Bill, because small and medium-sized businesses are fundamental to the economy of Bristol South and for jobs. What steps will the Minister be taking to address gaps in the Procurement Bill to enforce payment deadlines and to make sure that filters down through the supply chain to help small businesses in my constituency?

[Alex Burghart]

I am glad to hear the hon. Lady refer to that, because the principles behind the Procurement Bill for SMEs were given to us by SMEs. We want transparency, simplicity and fairness. On that third point, we are keen to see people pay their bills promptly, so that SMEs throughout the supply chain can get their money when they need it.

[Mr Speaker]

I call the shadow Minister.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

The Government may offer warm words on SMEs, but small businesses need those opportunities to thrive. Let us look at the evidence to see whether those warm words are backed up. In Brentwood, SMEs missed out on £3 in every £4 of viable suitable Government contracts in 2022. In Hertsmere, they missed out on 79%. In Horsham, SMEs got less than 5% of suitable public money. That amounts to £8.6 million. The Tories may talk about being a party of small businesses, but this Government have had 13 years to help small businesses—why have they not?

[Alex Burghart]

I am very pleased that the hon. Lady has been paying attention in the Committee stage of the Procurement Bill, where she has heard that we have done a great deal of work to overhaul the archaic regime that the EU left us with. It is precisely because of that Bill that small businesses will get contract pipelines, a single digital platform, prompt payments and a single regime that reduces bureaucracy and administrative burdens. With transparency, simplicity and fairness, this Government are delivering for small and medium-sized enterprises.

[Mr Speaker]

Bob Blackman is not here—he is struck in traffic—but in order for the other two Members to ask their questions, would the Minister answer as though he was here?

--- Later in debate ---

[Ian Levy (Blyth Valley) (Con)]

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

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

It is Government policy to award contracts on value-for-money terms, as is set out in “Managing Public Money”. We always look for the optimum combination of cost and quality over the lifetime of any project. The Procurement Bill will drive value for money by providing greater flexibility to contracting authorities to design efficient, commercial and market-focused competitions, and it removes overly prescriptive rules contained in existing regulations that we would have been bound to if, as the Opposition wanted, we had stayed in the European Union.

[Ian Levy]

I am fiercely supportive of the project to build a gigafactory on the Blyth estuary, which would provide much-needed jobs for my constituents. However, I also believe in due diligence when spending public money. Would my hon. Friend agree with me that it was a wise decision for the Government to withhold the release of a £100 million grant for this project? The Labour party wanted to release this large sum of public money without ensuring the financial stability of the business, once again spending other people’s money.

[Alex Burghart]

My hon. Friend is absolutely right: taxpayer money must always be used responsibly. Unfortunately, the conditions of the grant were not met and therefore no funds from the automotive transformation fund were paid out. We are pleased that Britishvolt has successfully been acquired and we will continue to work closely with the local authority to ensure the best outcome for this sale.

[Kerry McCarthy (Bristol East) (Lab)]

19. What assessment he has made of the role of public procurement policy in helping the Government meet their net zero targets.

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

It is very nice to take another question from Bristol. Under our rules, Government suppliers are required to report their emissions and commit to the UK’s net zero target when bidding for contracts valued above £5 million per annum. If they fail to do so, they risk being excluded from procurement.

[Kerry McCarthy]

I thank the Minister for that response. Around £5 billion a year is spent on public sector food and catering services, and the national food strategy—Henry Dimbleby’s version—said that public food procurement is dominated by a quasi-monopoly, so very big companies are involved. How does that fit in with the policy note on carbon reductions, and are the Government looking to food suppliers through those contracts to reduce their carbon emissions?

[Alex Burghart]

The hon. Lady asks an important question. It is true that net zero is a big principle for Government and feeds through into all our work, including the public procurement contract. We have had some important debates around this during the passage of the Procurement Bill.

[Marco Longhi (Dudley North) (Con)]

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

--- Later in debate ---

[David Duguid (Banff and Buchan) (Con)]

T5. May I first associate myself with the Secretary of State’s remarks about the coronation? I think we can all agree that it was a fantastic event. I add my thanks to the security personnel and armed forces who kept us safe on the day. What steps is the Department taking to improve access to public sector procurement for small and medium-sized enterprises, particularly in Scotland?

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

My hon. Friend knows the answer to this question all too well, having been on the Procurement Bill Committee. We are creating access to public procurement for small and medium-sized enterprises as never before. Alas, the Bill will not apply to Scotland because the Scottish Government refused to take part in it. That is a great shame, because it means that small and medium-sized enterprises in Scotland will be deprived of the opportunities that those south of the border will get.

--- Later in debate ---

[Munira Wilson (Twickenham) (LD)]

T4. Let me put on the record my thanks to Ministers for backing my campaign to ensure that police authorities across the country can sell disused police stations such as Teddington in my constituency below market value for community benefit. I hope that they agree that the same principle should apply to Government Departments. Can Ministers please advise me on when the Office of Government Property will finally reissue its updated guidance on the disposal of public assets, so that bids for community benefit such as affordable housing and GP surgeries can be prioritised?

[Alex Burghart]

I am happy to look into the hon. Lady’s suggestion, and I am delighted that she sees our support for local communities and value for money.

--- Later in debate ---

[Oliver Dowden]

rose—

[Alex Burghart]

rose—

[Mr Speaker]

Come on!

--- Later in debate ---

[Pete Wishart (Perth and North Perthshire) (SNP)]

Has the Secretary of State made any assessment or has he any estimates of the number of people who were turned away from the local elections last week? Does he have a number in mind that would suggest that the policy needs to be looked at again or to be abolished and scrapped, because people did not get the opportunity to vote?

[Alex Burghart]

This is a matter for the Secretary of State for Levelling Up, Housing and Communities. I know that his Department and the Government will be looking at the after-effects of this major change. What I can tell the hon. Gentleman is that in my constituency, and in the constituencies of many hon. Members, there were absolutely no problems at the polling booths, despite all the woeful predictions of people like himself.

[Kerry McCarthy (Bristol East) (Lab)]

May I return to my earlier question? It seems to me that the Cabinet Office is not taking enough interest in food procurement. I urge Ministers to speak to the Department for Environment, Food and Rural Affairs, because we are still awaiting a response to the consultation that closed on 4 September. Part of that consultation was about how we can ensure that the Government procure more food locally and sustainably. Will the Minister assure me that he will talk to DEFRA and try to ensure that that is the trajectory of public food procurement?

[Alex Burghart]

I am always talking to DEFRA colleagues and always delighted to do so. I am pleased to tell the hon. Lady that the Crown Commercial Service is looking specifically at how we can involve small and medium-sized enterprises in public food procurement.

[Jim Shannon (Strangford) (DUP)]

The Secretary of State referred earlier to cyber-security. Bearing in mind the fact that Belfast is now known as the cyber capital of the world, will the Cabinet Office and the Secretary of State build on that strong foundation, invest in the existing industry, and allocate the funding to create more jobs and use the highly skilled based that is already there?

Closure of Gov.UK Verify

Alex Burghart Excerpts

Tuesday 2nd May 2023 Written Statements

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

I would like to update the House on the Gov.UK Verify programme, following the written ministerial statement in April 2022 made by my colleague Heather Wheeler MP. As planned, the Gov.UK Verify programme has now closed. The final Government service stopped using the platform on 30 March 2023.



Many services which used Gov.UK Verify have moved to Gov.UK One Login—the new Government-built solution which enables users to prove their identity and access central Government services online. The Government Digital Service is using lessons learnt from Gov.UK Verify to help in the development of Gov.UK One Login and provide people with an experience that is representative of a modern, forward-looking democracy.

[HCWS755]

List of Ministers’ Interests and Ministerial Code

Alex Burghart Excerpts

Monday 24th April 2023 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

(Urgent Question): To ask the Prime Minister if he will make a statement on the register of ministerial interests and the ministerial code.

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

I am pleased to confirm that the latest list of Ministers’ interests was published last week on 19 April by the Prime Minister’s independent adviser on Ministers’ interests, Sir Laurie Magnus. The list has been deposited in the Library of the House and is also available online on gov.uk.

I note that the hon. Lady’s question talks of a register of ministerial interests. I am afraid that I must point out, for the sake of clarity, that that is not an accurate term. It is important that I provide a little explanation about the list, what it contains and the role it performs. The ministerial code makes it clear that

“Ministers must ensure that no conflict arises, or could reasonably be perceived to arise, between their public duties and their private interests, financial or otherwise.”

It is their personal responsibility

“to decide whether and what action is needed to avoid a conflict or the perception of a conflict, taking account of advice received from their Permanent Secretary and the Independent Adviser on Ministers’ interests.”

On appointment, each Minister makes a declaration of all interests. They remain under an obligation to keep that declaration up to date throughout their time in office. Ministers are encouraged to make the fullest possible disclosure relating to themselves, their spouses and partners, and close family members, even where matters may not necessarily be relevant. The information supplied is then reviewed and advised upon by their permanent secretary and also by the independent adviser. Where needed, steps are taken to avoid or mitigate any potential conflicts of interest. That is the process by which Ministers’ interests are managed. It is thorough and ongoing, and it provides individual advice to all Ministers that reflects their circumstances and responsibilities.

Twice a year, a list is published, covering those interests that are judged by the independent adviser to be relevant to each Minister’s portfolio. The list is not a register. It is designed to be read alongside the Register of Members’ Financial Interests, which is maintained by this House, and the register of Members’ interests that operates in the other place. For that reason, the list does not generally duplicate the information that is available in the registers.

The independent adviser, Sir Laurie Magnus, makes it clear in his introduction to the list published last week that it would not be appropriate for all the information gathered as part of the ministerial interests process to be made public. He states that such a move would

“represent an excessive degree of intrusion into the private affairs of ministers that would be unreasonable, particularly in respect of”

hon. Members’ families. I am sure hon. Members will understand that the system is designed to gather the fullest amount of information, provided in confidence, so that the most effective advice can be given.

All Ministers of the Crown uphold the system that I have described. That is true for all Ministers, from the Prime Minister, who has been clear that all his interests have been declared in the usual way, all the way down to, and including, an assistant Whip. In the latest list, the independent adviser highlights the importance of Ministers and their permanent secretaries remaining alert in the context of their respective portfolios if Ministers’ interests change. That is, of course, right. Importantly, though, Sir Laurie Magnus provides his opinion as independent adviser on Ministers’ interests that

“any actual, potential and perceived conflicts have been, or are in the process of being, resolved”.

[Wendy Chamberlain]

When he was appointed, the Prime Minister promised that he would govern with integrity. He went inside No. 10 and his first act was to appoint Ministers. Of that cohort, three have now departed in controversy, including two in relation to allegations of bullying.

One thing the Prime Minister did not do at that time was publish an updated list of ministerial interests. It was finally released last week, 320 days after the last publication. That list does not include the interests of Ministers from the past year who have either been dismissed or resigned, such as the right hon. Member for Stratford-on-Avon (Nadhim Zahawi). That means that, on my count, there are almost 120 missing registrations from that period. Nor is there any setting out of what is referred to by the ethics adviser in his introduction to the list as

“actual, potential and perceived conflicts”

that are

“in the process of being…resolved”.

I hope the Minister can give more clarity on that situation.

Will the Minister accept the ethics adviser’s statement that a Minister’s interests are only clear when reading the ministerial list and the MPs’ register together? That is difficult to do, with one being published monthly and the other twice a year, or—as we have found—much less frequently. Members rightly disclose their interests regularly, because transparency is essential. The Leader of the House promised swift action to strengthen the system and agreed to consider more regular reporting. The publication last week suggests that she has failed in that effort to provide more transparency, so will the Government end this undemocratic two-tier system and bring publication forward to every 28 days, and will they publish the missing interests of former Ministers? It is absurd to think that had the former Deputy Prime Minister, the right hon. Member for Esher and Walton (Dominic Raab), resigned just three days earlier, we would never have been told what his interests were during his time as Justice Secretary.

Registration of ministerial interests is a key principle of the ministerial code; so, too, are behavioural standards. Last week, the former Deputy Prime Minister was found to have bullied civil servants in line with the definition under the code. According to the independent report, he acted in a way that was “intimidating” and

“involved an abuse or misuse of power in a way that undermines or humiliates”,

but Ministers have remained silent. Will the Government therefore publish any advice the Prime Minister was given on conduct before appointing the former Deputy Prime Minister? Is it the view of the Government that the former Deputy Prime Minister did breach the ministerial code? Will the Minister affirm that there is a duty on Ministers under the code to uphold the impartiality of the civil service, and will he accordingly affirm that impartiality today? Finally, does he acknowledge that the Government’s silence is deeply damaging and demoralising for hard-working officials?

[Alex Burghart]

I thank the hon. Lady for her question. She will be aware that Sir Laurie Magnus, who took up his post in December, has said that he will return to the regular cycle of publications. This list is his—he has oversight of it. It would be wrong if the Government were to interfere in that process, and we will obviously continue to engage fully with him to make sure that the list is up to date and reflects the ongoing interests of Ministers, so that the system can operate effectively.

On the point that the hon. Lady makes about the former Deputy Prime Minister, she will know from listening to previous statements and debates in this House that no formal allegations were made against my right hon. Friend the Member for Esher and Walton (Dominic Raab) before the Prime Minister appointed him. The moment those formal allegations were made, the Prime Minister and the Deputy Prime Minister agreed that there should be an independent investigation. Adam Tolley KC conducted his investigation, and the Deputy Prime Minister then resigned.

On the hon. Lady’s point about civil service impartiality, of course we accept and respect civil service impartiality. It is one of the things that makes government work so effectively in this country.

[Sir Peter Bottomley (Worthing West) (Con)]

The Minister will agree that there is much more openness and transparency now than 13 years ago. Through him, can I put it to the Prime Minister that Sir Laurie Magnus should be asked each year whether he would like to write a public letter to the Prime Minster on how the system is working, and any changes or improvements he would like to see made?

[Alex Burghart]

I thank the Father of the House for his long view on these things, and I am sure that Sir Laurie will have heard his remarks.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the shadow Minister.

[Fleur Anderson (Putney) (Lab)]

I thank you, Madam Deputy Speaker, and Mr Speaker for granting this urgent question. Last week, the Prime Minister saw a third senior Minister resign in disgrace, jumping because he was not pushed. Can the Minister confirm that the former Deputy Prime Minister, the right hon. Member for Esher and Walton (Dominic Raab), did break the ministerial code? Did the Government know of or approve his statements blaming the victims, which appeared before the official findings of the report? Can the Minister say whether he agrees with the brave victims who came forward for that report, or with the former Deputy Prime Minister himself, that unacceptable bullying and misconduct took place? Does he think that the former Deputy Prime Minister should apologise to victims?

We also saw the list of ministerial interests miraculously appear just minutes before Prime Minister’s questions. Can the Minister say whether the Prime Minister declared his financial interest in Koru Kids as a Minister and as Chancellor before he became Prime Minister? Will the Minister meet his own commitment to more regular updates of the ministerial interests list and put it on the same basis as the Register of Members’ Financial Interests, which is published fortnightly while the House is sitting? The Ministers’ list seems to be annual. Will the Prime Minister finally introduce an independent adviser with the power to launch their own investigations? Have all the recommendations of the Boardman review been implemented? How many of the recommendations from the Committee on Standards in Public Life report have been implemented? A recent audit by Spotlight on Corruption revealed that, 18 months after both reviews were published, just 7% of the recommendations have been implemented.

While the Government have been preoccupied with yet more Tory psychodrama, working people are still battling the worst cost of living crisis for a generation. Labour is focused on cutting the cost of living, cutting crime and cutting waiting lists with our long-term plan to give Britain its future back. Has not this past week proved beyond doubt that it is time for a Government laser-focused on delivering for Britain, instead of one mired in misconduct?

[Alex Burghart]

I will take the hon. Lady’s questions in reverse. This Government are absolutely committed to tackling the cost of living crisis. It is because of that that the Prime Minister’s No. 1 preoccupation is ensuring that inflation comes down. Without inflation coming down, we cannot have growth, and without growth we cannot have more money for our public services. The Labour party would do very well to support us in that endeavour, otherwise we will fall into exactly the same trap that it fell into in the 1970s, where unions chase pay, pay chases inflation and the economy cannot grow for 10 years.

On the point that the hon. Lady made about the Prime Minister’s declarations, I draw her attention to the remarks made by the previous independent adviser Lord Geidt, who said that the Prime Minister had been “assiduous” in declaring all his relevant ministerial interests in all his roles. The Prime Minister personally asked Lord Geidt to look into that, and Lord Geidt was satisfied, as, it must be said, is Laurie Magnus likewise. On her remarks about the former Deputy Prime Minister, my right hon. Friend the Member for Esher and Walton (Dominic Raab), I draw her attention to the fact that in his letter to the Prime Minister last week, the Deputy Prime Minister said:

“I am genuinely sorry for any stress or offence that officials felt”.

[Madam Deputy Speaker (Dame Eleanor Laing)]

I call the Chair of the Select Committee.

[Mr William Wragg (Hazel Grove) (Con)]

It surely cannot be beyond the wit of man, notwithstanding the constitutional differences between Members of Parliament and members of the Government, that some form of co-operation might not be devised by talking to one another. Might I make the suggestion to my hon. Friend, who is one of the ablest Ministers in the Cabinet Office, that he would be just the person to reach out in such circumstances, so that some degree of co-operation and co-ordination on this issue might be found?

[Alex Burghart]

My hon. Friend is an assiduous student of the constitution, the workings of this place and the Cabinet Office, and he will know that, while it is very important that we have separate lists, it is also within the remit of anybody who wishes to pick up those two separate reports—the list and the register—to compare them and to draw their conclusions, as necessary.

[Madam Deputy Speaker]

I call the SNP spokesperson.

[Kirsty Blackman (Aberdeen North) (SNP)]

We have ministerial declarations—interests list—that are updated not timeously, if they are updated at all. Will the Minister ensure that all ministerial declarations are published, not just those of Ministers who happen to have been sitting in the hot seat when the music stopped? We have Ministers and the Prime Minister announcing policy to the press first on a regular basis. The Prime Minister has lost numerous Ministers as a result of code breaches and there are various investigations ongoing. It seems that Ministers are happy to carry on erring until the point—beyond the point, in fact—that they are caught and until the point that the investigation finally reports and they finally choose to resign. What is the point in having a ministerial code if Ministers do not abide by either the letter or the spirit of that code, and continually breach it?

[Alex Burghart]

I think the hon. Lady is arguing for no due process. The moment that formal allegations were made against the former Deputy Prime Minister, both he and the Prime Minister decided it would be necessary to call an independent investigation into the Deputy Prime Minister’s conduct. That was conducted by a leading KC and, following the conclusion, the Deputy Prime Minister resigned. The alternative would have been to have no investigation at all—no independent assessment—and in our opinion that would have been wrong.

[Sir Desmond Swayne (New Forest West) (Con)]

How swiftly will the Government act to reduce the time in which complaints about ministerial behaviour can be made?

[Alex Burghart]

My right hon. Friend is a lover of brevity, and the truth is that he will have seen in the Prime Minister’s letter to the former Deputy Prime Minister that it is necessary to make sure any

“shortcomings in the historic process”

are addressed. He has asked the Cabinet Office to look at that and we intend to do so swiftly.

[Dame Angela Eagle (Wallasey) (Lab)]

But the system that we came into this Parliament with only works if the Prime Minister has integrity and he does not keep ignoring the adviser on ministerial interests and the reports that they come up with into things like bullying by Cabinet Ministers. The fact is that we have had two of those advisers resign because their reports were not followed, and that has led to the ministerial list of interests being unavailable to the public for many, many months and many, many more changes of Government. That is completely unsatisfactory. Does the Minister not therefore agree that we need a much more rigorous, transparent system that does not rely on the honour of Prime Ministers, which can now no longer be counted upon?

[Alex Burghart]

I hope that the hon. Lady was not suggesting that my right hon. Friend the Prime Minister was dishonourable, because I think that would have been out of order, Madam Deputy Speaker. However, I am sure she will appreciate that the former independent adviser Lord Geidt said that the Prime Minister had been “assiduous” in his reporting. The report—the list— published by Sir Laurie Magnus just a few days ago suggests that he has been likewise in this return, as have all Ministers, and that wherever any perceived conflicts of interest have been found, they are being dealt with.

[Madam Deputy Speaker (Dame Eleanor Laing)]

Order. I want to just make absolutely certain that nothing has been said that ought not to have been said. I totally trust the hon. Member for Wallasey (Dame Angela Eagle) not to have said anything that she should not have said, but just let me make it clear to the House as a whole that, when we are discussing a sensitive subject such as this in particular, moderation is important and that reputations are important. I am sure the hon. Lady was indeed moderate in her use of words, as the Minister has been. I just want to make sure everybody else is.

[Jackie Doyle-Price (Thurrock) (Con)]

The ministerial code is, of course, there to regulate the broader aspects of ministerial behaviour, not just financial interests—that tends to be the issue that the House gets really concerned about, but actually it is the broader behaviours that are more important. Given that we have had such a turbulent 18 months with regard to the code, will my hon. Friend, or the Prime Minister, consider rebooting it and focus on exactly the values that we expect of Ministers? Specifically, could I invite him to clarify that the ministerial code is very important when Ministers are deploying their operational responsibilities?

[Alex Burghart]

The ministerial code is obviously a bedrock of the way the Government operate and, on my hon. Friend’s point about operations, she is right. One reason the code exists is in order to give guidance to Ministers in that regard.

[Sir Chris Bryant (Rhondda) (Lab)]

Of course the Minister is defending the status quo—that’s his job—but I gently suggest that the whole system of the ministerial code is now bust. It does not fit with the parliamentary code of conduct. There are lesser rules for Ministers than there are for ordinary Back-Bench MPs. The new list, which was published only last week, is already an inaccurate list of Ministers, let alone a list of ministerial interests. It seems bizarre that a Minister would declare something to their Department and to the adviser, who would then say, “Oh yes, but we’re not going to bother telling the public about that.” Surely the time has come to have a new system for the whole ministerial code that is truly independent, so that the Prime Minister does not make the ultimate decision, others make an independent decision on when there has been a breach of the code, and we unite the two codes—the ministerial code and the code of conduct—because all Ministers have to be members of one or other House.

--- Later in debate ---

[Alex Burghart]

The hon. Gentleman is a powerful advocate for the approach he has outlined. On his point about examples of declarations of interest that might be made to a permanent secretary that may not be relevant—[Interruption.] If he gives me a moment, I will come to an example. For example, a Minister in the Department for Environment, Food and Rural Affairs may declare that their brother-in-law works in a company producing electric car parts in their declaration of interest form. That will be considered by the permanent secretary and the independent adviser. That may not be included in the published list, on the ground that it would be unlikely to present a conflict in relation to a DEFRA portfolio. It also would not be relevant to the register of the Minister’s parliamentary interests. If the Minister then moved to the Department for Transport, the Department for Business and Trade, or the Department for Science, Innovation and Technology, the interest would become more relevant and would be much more likely to be published in a list. I use that lengthy and exciting example to outline to the hon. Gentleman that the two things are not the same. The list and the register are different and are there for different reasons. They operate in different ways and consequently have different rules pertaining to them.

[Simon Hoare (North Dorset) (Con)]

If we are serious about supporting and defending the independence and sagacity of our senior civil servants—I certainly am and I know my hon. Friend is—their advice on whether something should be in the public domain or not should surely be enough. Otherwise, it is a direct challenge to the authority of those senior civil servants to whom a Minister is making a declaration. Does the Minister agree with that? Does he also agree that the clue is in the title—a blind trust is just that?

[Alex Burghart]

Absolutely. A blind trust must be a blind trust. On my hon. Friend’s point about the integrity of official advice to Ministers, absolutely, our system requires officials to be able to give advice candidly and freely, safe in the knowledge that it will not routinely be disclosed.

[Karin Smyth (Bristol South) (Lab)]

In our Public Administration and Constitutional Affairs Committee report into the Greensill affair, we suggested:

“The Government should outline the range of sanctions and indicative examples of breaches to which they might apply. Without this, the suspicion is that the only determinant of the level of sanction will be political expediency.”

In the discussions with the Deputy Prime Minister last week, was he offered a range of sanctions with regard to the breach of the ministerial code before he resigned?

[Alex Burghart]

I was not party to those discussions, so I am unable to say.

[James Wild (North West Norfolk) (Con)]

The transparency provided by the list is important, which is why I welcome its publication. Does my hon. Friend agree with me that the Opposition should follow the Government’s lead on transparency, and publish details of all meetings and contacts that they had with senior civil servant Sue Gray before her appointment as Labour party chief of staff?

--- Later in debate ---

[Alex Burghart]

Like my hon. Friend, I await that publication.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

When the new, latest Prime Minister took charge, he promised integrity, professionalism and accountability, but after yet more sleaze and scandal was exposed by investigative journalists, and just minutes before Prime Minister’s questions, the register of interests was miraculously updated to include shares in Koru Kids which is owned by the Prime Minister’s wife, who would end up benefiting significantly from her husband’s policy changes. So, does the Minister not agree—[Interruption.]

--- Later in debate ---

[Mr Dhesi]

Thank you for that advice, Madam Deputy Speaker. Does the Minister not agree that we now have a Prime Minister who has to be forced—compelled, if not embarrassed—into showing any sort of transparency?

[Alex Burghart]

Absolutely not.

[Ronnie Cowan (Inverclyde) (SNP)]

When Sir Laurie Magnus gave evidence to PACAC on the compliance of Ministers with the ministerial code, he said:

“I think you have to rely on their honesty, their compliance with the seven principles of public life and their recognising that if they are to have the privilege of a ministerial position, they have to comply with the expected standards.”

What can we do in this place when they do not?

[Alex Burghart]

The hon. Gentleman, I am sure, as a member of PACAC, will have read Sir Laurie Magnus’s list, published last week, in which he outlines that Ministers are doing what they are expected to do and that permanent secretaries are helping them to do so.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

There are so many loopholes in the regulatory system for all the codes of conduct, but in that of the ministerial code in particular. The so-called Independent Adviser on Ministers’ Interests is anything but independent, and unable to initiate their own investigations or to decide on what sanctions are appropriate. When will the Government adopt my Elected Representatives (Codes of Conduct) Bill, which I introduced at the beginning of the year to close the existing loopholes?

[Alex Burghart]

With all due respect to the hon. Lady, it is completely the case that the Independent Adviser on Ministers’ Interests is independent. He is independent and he conducts his duties accordingly in that role.

--- Later in debate ---

[Patricia Gibson]

Thank you, Madam Deputy Speaker. I was simply going to ask the Minister if he can explain why he thinks the Prime Minister seems so accident prone when it comes to running his Government?

[Alex Burghart]

The Prime Minister is doing an excellent job of delivering on the people’s priorities. Scottish National party Members want to be very careful before picking up rocks in their glasshouse.

[Clive Efford (Eltham) (Lab)]

We had the fast track for covid contracts, where people did not have to be a Conservative party member or donor—but it didn’t half help—to get a contract. We have had Ministers having to resign over various misconducts. We have had gaps in their declarations of interest, and now we have this investigation into the Prime Minister. That is a fact: that is happening. Does the Minister not think it is time that we had an independent ethics investigator who could look into these matters? Regardless of who is in government, the public’s view is that these things bring down our politics. Should we not all work together to clean it up and make sure that there is an independent investigator with power to independently investigate?

[Alex Burghart]

We have an independent adviser and a ministerial code. This Government are delivering on the Prime Minister’s commitment to integrity and professionalism.

[Madam Deputy Speaker]

The last word, as ever, goes to Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

Thank you Madam Deputy Speaker. I thank the Minister for his clarification and the answers that he is trying to deliver. Will he further outline whether clear guidance will be issued on what constitutes a conflict of interest and how far that extends, to ensure that this House does not continue to consider these matters with the current greyness?

[Alex Burghart]

I refer the hon. Gentleman to Sir Laurie Magnus’s report and list published last week. The process by which it is decided what conflicts Ministers might have is in conjunction with ministerial declarations, the permanent secretary and the independent adviser.

[Sir Chris Bryant]

On a point of order, Madam Deputy Speaker. I am grateful for what you said earlier. It is important for the Standards Committee and the commissioner to be able to do their work that we do not refer—preferably anywhere but certainly not in the Chamber—to ongoing investigations by the Parliamentary Commissioner for Standards.

State of the Estate in 2021-22

Alex Burghart Excerpts

Thursday 20th April 2023 Written Statements

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

I have today laid before Parliament, pursuant to section 86 of the Climate Change Act 2008, the “State of the Estate in 2021-22”. This report describes the progress made on the efficiency and sustainability of the central Government estate and, where relevant, records the progress that Government have made since the previous year. The report is published on an annual basis.

[HCWS732]

Draft Border Target Operating Model

Alex Burghart Excerpts

Monday 17th April 2023 Written Statements

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

The Minister of State, Baroness Neville-Rolfe DBE CMG, has today made the following statement:

An important follow-up to Brexit is border controls on goods, including sanitary and phytosanitary checks critical to the protection of animal and plant health and potentially even human health. On 28 April 2022, the right hon. Member for North East Somerset (Mr Rees-Mogg) announced that the UK Government decided to delay the introduction of the final set of planned controls on EU imports. We have instead worked with industry to develop a new model for imports into Great Britain. On Wednesday 5 April 2023 we published the draft “Border Target Operating Model”. We have also started a period of engagement with stakeholders across all affected sectors and all parts of the United Kingdom, and the EU, to ensure that they understand the coming changes and are ready to continue to move goods across the border on that basis.

The Model sets out the rules and processes that will apply to the importation of all goods into Great Britain. It will, for the first time, implement security and biosecurity controls on imports from the EU. These controls will ensure our environment is protected, deliver food that is safe to eat whilst maintaining security of supply for consumers, and disrupt criminal activity before it can harm our communities.

The Model will fulfil the UK’s domestic and international obligations with regard to biosecurity and public health, upholding our reputation for high regulatory standards that underpin our agri-food trading relationships. Through the UK single trade window, we will simplify the way importers provide information to Government. This is significantly less burdensome than our original plans, and it supports our wider efforts to drive UK exports.

The gradual roll-out of controls will ensure impacts and costs are managed: we will implement the Model through three major milestones, the first of which importers and their suppliers should begin to prepare for now:

31 October 2023 - The introduction of health certification on imports of medium risk animal products, plants, plant products and high risk food—and feed—of non-animal origin from the EU.

31 January 2024 - The introduction of documentary and risk-based identity and physical checks on medium risk animal products, plants, plant products and high risk food—and feed—of non-animal origin from the EU. At this point imports of sanitary and phytosanitary goods from the rest of the world will begin to benefit from the new risk based model.

31 October 2024 - Safety and security declarations for EU imports will come into force from 31 October 2024. Alongside this, we will introduce a reduced dataset for imports and use of the UK single trade window will remove duplication where possible across different pre-arrival datasets.

We will phase in controls on the west coast for Irish goods from October 2023, while ensuring that Northern Ireland businesses have unfettered access to their most important market in Great Britain, whether they move goods directly or indirectly through Ireland to Great Britain. Further to the Windsor Framework, this will entrench a significant competitive advantage for NI business on the island of Ireland, reflecting Northern Ireland’s integral place in the United Kingdom’s internal market.

Following the engagement period we will publish a final version of the Target Operating Model later this year.

[HCWS713]

Correction to Written Statement HLWS648

Alex Burghart Excerpts

Tuesday 28th March 2023 Written Statements

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

The Minister of State, Baroness Neville-Rolfe DBE CMG, has today made the following statement:

In order to take account of the Easter recess and the bank holiday for the celebration of the Coronation, the period of the consultation on the effectiveness of the Digital Economy Act 2017 Debt and Fraud Powers has been extended. It will now run until 11 May 2023.

Further to this change, the following text outlines the Government’s approach, updating the approach outlined in the written statement that I made on 22 March 2023:

I am pleased to announce the launch of a consultation on the effectiveness of the Digital Economy Act 2017 Debt and Fraud Powers.

The Debt and Fraud Powers, as contained in Chapter 3 and Chapter 4 of the Digital Economy Act 2017 respectively, allow specified public authorities to disclose information for the purpose of managing and reducing debt owed to a public authority or to the Crown and combating fraud against the public sector.

These powers must be reviewed, three years after their operation, for the purpose of deciding whether they should be retained, amended or repealed. As part of this review, I am required to consult certain persons and publish a report on the review’s outcomes.

As part of this consultation, I shall engage with:

the Information Commissioner,

the Scottish Ministers,

the Welsh Ministers,

the Department of Finance in Northern Ireland,

members of the Home Affairs Committee,

bodies which have used the Debt and Fraud Powers of the Digital Economy Act 2017; and members of the Digital Economy Act Debt and Fraud Information Sharing Review Board.

The Consultation is now open and will end on 11 May 2023.

[HCWS681]