Financial Statement

Alex Norris Excerpts

Wednesday 23rd March 2022 Commons Chamber

[Rishi Sunak]

I fear this is getting a little repetitive. I believe that we will see more investment in British industry, more investment in the North sea, more energy security and more jobs created. I look forward to companies bringing forward their plans for that in the coming weeks and months.

[Alex Norris (Nottingham North) (Lab/Co-op)]

I am old enough to remember when levelling up was the centrepiece of the Government’s domestic policy. People will be incredulous that we did not hear a single mention of it from the Chancellor this afternoon. He talks of low growth; we have low growth because we are not unleashing the potential of the regions of this country. It is time for the Chancellor to just admit that levelling up is a sham.

[Rishi Sunak]

The White Paper from the Secretary of State for Levelling Up, Housing and Communities was in fact warmly welcomed by many colleagues from across the House. More broadly, is backed up with tens, if not hundreds, of billions of pounds of extra funding. The results are seen in our employment growth, which has been strongest in those regions outside London and the south-east.

Oral Answers to Questions

Alex Norris Excerpts

Tuesday 9th March 2021 Commons Chamber

[Rishi Sunak]

My hon. Friend is right to raise this important issue, as he has done with me several times on behalf of his local businesses. He is right that we are reviewing business rates. We are in the midst of that process. The next stage will be to publish all the consultation responses that we have received, which will happen shortly, and we will take forward the policy process over the course of this year. We outlined many options for potential reforms in the paper. I look forward to receiving from him some ideas on what the reforms might be. In the short term, we are providing a £6 billion tax cut in business rates, delivering a 75% discount on business rates for the vast majority of small and medium-sized businesses as they emerge from this pandemic.

[Alex Norris (Nottingham North) (Lab/Co-op)]

Every year of delay in integrated rail improvements in the midlands and the north means a missed £5 billion boost for our economy as well as delaying an additional 150,000 jobs. The Chancellor’s Build Back Better plan promises the long-awaited integrated rail plan within three months. Will he confirm that this is an absolute maximum, and will he or one of his Ministers meet me and regional businesses to hear more about our exciting plans for our community?

[Rishi Sunak]

This Government are committed to record amounts of investment in infrastructure, both road and rail, as we heard from my right hon. Friend the Financial Secretary earlier. The Budget announced upgrades for several stations in and around the midlands after representations that we heard from the fantastic Mayor, Andy Street, about the needs of his area. We remain committed to publishing the integrated rail plan in due course.

Oral Answers to Questions

Alex Norris Excerpts

Tuesday 26th January 2021 Commons Chamber

[Rishi Sunak]

We are doing the technical work required to make sure that the launch of our green gilts is successful. I hope to provide an update at the Budget, but the hon. Lady can rest assured that we are working very hard at it. As I said, this will be the first step in building out a green curve. By doing that and making sure that the curve has fidelity in terms of confidence in where the money is going, we can unlock investment for the private sector across the economy. I know that she will join me in welcoming that progress.

[Alex Norris (Nottingham North) (Lab/Co-op)]

What fiscal steps he is taking to support self-employed people ineligible for the self-employment income support scheme.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

What steps his Department is taking to support the newly self-employed during the covid-19 outbreak.

[The Financial Secretary to the Treasury (Jesse Norman)]

The self-employment income support scheme was designed to target support at those who most need it while protecting the taxpayer against error, fraud and abuse. The Government recognise that some of the rules and criteria that have been vital to ensuring that the scheme worked for the vast majority have meant that, in some cases, people were not able to qualify. This is one reason why the Government put in place a much wider £280 billion support package, including increased levels of universal credit, bounce back loans, tax, deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.

[Alex Norris [V]]

It is understandable that, as support schemes were constructed at short notice, there would be gaps in them. It is less understandable why, a year later, those gaps have not been better closed. Many of my constituents are among the millions who have been excluded from support schemes so far, so, as we approach that anniversary, what message does the Minister have for them?

[Jesse Norman]

The message would be that the Treasury is doing everything it can to protect jobs, families and livelihoods in the face of the worst pandemic crisis that we have experienced in recorded history. It is important to say that, in the case of this scheme, we have spent considerable time engaging with groups that have brought forward potential ways of addressing some of the gaps in support that may exist. As I mentioned, we have had meetings in December and evaluated suggestions all the way through last year, including a concrete suggestion in relation to the directors income support scheme, so we are heavily leaning into this issue.

Covid-19: Economy Update

Alex Norris Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

My hon. Friend is absolutely right on his last point. We are lucky to benefit from the considerable business experience that he brings to this place. He is right that, in business as in public policy, it is right that we evolve and adapt to the circumstances. That is what we have done today, but it is right that we do it in a targeted, tiered way, not with the blunt national instrument that, as he rightly says, would unnecessarily cause hardship and cost jobs.

[Alex Norris (Nottingham North) (Lab/Co-op)]

I understand that at half-past 4 today a Government Minister will meet local leaders in Nottingham to put us into the third tier. We had to find that out through the media, because local Members of Parliament have not been invited, which is saddening. If measures need to be taken to protect the health and wellbeing of our community, we will of course support them, but they will have a profound impact on our local economy. If Nottingham moves into tier 3 this afternoon, what package of support will the Chancellor put in place to protect our jobs and businesses?

[Rishi Sunak]

I know that it is a difficult time for the hon. Gentleman’s constituents, and he is right that they should engage constructively. I am glad that he and his local area are doing that. There will be a variety of support available. Closed businesses will receive grants of up to £3,000 a month, paid centrally. Obviously, similar to other areas, there will be a negotiation and a conversation with the Secretary of State for Housing, Communities and Local Government, which will result in an amount of support being provided for businesses. Of course, as the hon. Gentleman will know, there is also a formula to provide the local authority with support of up to £8 per head, and that money is used to enhance local compliance enforcement and contact tracing. I know that those conversations are ongoing and I very much hope that they will have a constructive outcome.

Economic Update

Alex Norris Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

I am pleased to tell my hon. Friend that, as a result of the measures I have taken today, any business in the retail, hospitality and leisure sector, regardless of its rateable value, will now qualify for 100% business rates relief for these next 12 months.

[Alex Norris (Nottingham North) (Lab/Co-op)]

Like colleagues, I spent today talking to businesses in my community. They wanted to know that, when they follow health advice to the letter, and if they keep all their staff on payroll, as they desperately want to, their business will be safe. As a result of the package the Chancellor announced tonight, can I give them that categoric assurance first thing in the morning?

[Rishi Sunak]

I very much hope that the businesses that are looking at the range of measures outlined today will see that there is significant financial support for them, whether that is business rate holidays, direct cash grants or access to incredibly low-cost and accessible financing. The combination of all those measures, on top of the compensation we will pay to small and medium-sized businesses for statutory sick pay, is a significant direct fiscal support for businesses up and down our country to protect people’s jobs.

Oral Answers to Questions

Alex Norris Excerpts

Tuesday 2nd July 2019 Commons Chamber

[Jesse Norman]

I think that my right hon. Friend misstates the case. A disclosure of tax avoidance number was associated with a large number of those cases. The people knew that they were in schemes that were potentially suspect. Every person is responsible for signing off their own tax return. I trust that my right hon. Friend will be reassured by the fact that recently six individuals were arrested on suspicion of promoting fraudulent loan charge arrangements. That speaks to a wider picture.

[Alex Norris (Nottingham North) (Lab/Co-op)]

20. Economic crime defrauds the Exchequer of countless billions in revenue. Two and a half years ago, the Ministry of Justice launched a call for evidence on corporate liability for that. Incredibly, as of this morning, it says it is still analysing the evidence that it received. Clearly, cracking the problem is critical to the Treasury’s funding public services. What are Treasury Ministers doing to wake their colleagues up?

[Jesse Norman]

I can only admire the ingenuity of a man who can crowbar a question about the Ministry of Justice, unrelated to the loan charge, into this issue. Let me point out to the hon. Gentleman that regardless of what may be the case on that, HMRC is taking tens of billions of pounds, relating to avoidance and evasion matters, that are due. He should be very grateful and delighted about that.

Oral Answers to Questions

Alex Norris Excerpts

Tuesday 5th March 2019 Commons Chamber

[Robert Jenrick]

Absolutely. We are very excited about the £100 million Ayrshire growth deal and will continue to support that part of Scotland.

[Alex Norris (Nottingham North) (Lab/Co-op)]

16. What steps he has taken to ensure that HMRC has adequate (a) powers and (b) resources to investigate tax avoidance enablers.

[The Financial Secretary to the Treasury (Mel Stride)]

The Government take a very serious view of those who enable or promote tax avoidance. We have taken a number of measures to clamp down on them, including penalties of up to £1 million.

[Alex Norris]

In 2017, the Government introduced the Criminal Finances Act to great fanfare, claiming that they were clamping down on the facilitators of tax-dodging. Will the Minister please confirm how many prosecutions have been brought for the new offence of failing to prevent tax evasion?

[Mel Stride]

We have taken action against enablers and promoters, and the cumulative amount of time in prison that has resulted from those particular actions is in excess of 100 years.

Oral Answers to Questions

Alex Norris Excerpts

Tuesday 6th November 2018 Commons Chamber

[The Financial Secretary to the Treasury (Mel Stride)]

I obviously cannot comment on the specific case of the Sandbach services employees, but I assure my hon. Friend that I have looked extensively at this matter and consulted various Members across both sides of the House. I am satisfied that HMRC in general has conducted itself appropriately over this whole issue, but I am happy to meet her to discuss the specific point that she raised.

[Alex Norris (Nottingham North) (Lab/Co-op)]

T3. There were over 9,000 words in the Chancellor’s Budget speech, but not one mention of Nottingham or the east midlands. In the east midlands, we have multiple investable schemes that will drive growth in our region. When will the Treasury back the east midlands?

[The Exchequer Secretary to the Treasury (Robert Jenrick)]

The hon. Gentleman obviously missed the Chancellor’s speech at the Conservative party conference, in which he announced the creation of a special area of economic activity at Toton, just south of Nottingham, which we expect to become one of the UK’s leading areas of economic growth. We also announced in the Budget an increase in the transforming cities fund, which will directly benefit Nottingham.

Persistent Rough Sleeping in Nottingham

Alex Norris Excerpts

Monday 2nd July 2018 Commons Chamber

[Lilian Greenwood]

My hon. Friend is quite right to highlight the way in which cuts to our health service and other services are having an impact on the prevalence of rough sleeping.

Of the 38 Opportunity Nottingham beneficiaries, 32% had spent at least two weeks in prison since engaging with Opportunity Nottingham, 42% had experienced at least one eviction from accommodation, 42% had been excluded from a service because of unacceptable behaviour, and 24% reported begging as a source of income. In each case, those proportions are much higher than among the whole beneficiary cohort.

The study also identified common themes in the narratives provided by the street outreach team and Opportunity Nottingham personal development co-ordinators in relation to those persistently sleeping rough, stating:

“rough sleepers…and those who work with them are encountering a diminishing range of options when seeking to leave the streets, arising from cuts in public funding and adverse changes in the housing market. Hostels have closed, Housing Benefit availability is more restricted, affordable tenancies are more limited in terms of quantity and quality, and the supply of tenancy support has all but dried up.”

[Alex Norris (Nottingham North) (Lab/Co-op)]

I congratulate my hon. Friend on the powerful case that she is making on behalf of our city. I served on the council in our city at a time when we virtually eradicated rough sleeping, and now we are back to where we are today. Does my hon. Friend agree that this situation has been caused by a toxic combination of under-employment, poor housing supply, cuts to drug and alcohol services, inadequate mental health services and other eminently tackleable issues?

[Lilian Greenwood]

My hon. Friend is absolutely right. These issues were preventable and they are preventable. The last Labour Government did a great deal to tackle rough sleeping and it is very disappointing that we find ourselves where we are today.

Financial issues obviously loom large in the lives of many rough sleepers. This was found to be particularly true of migrants with no recourse to public funds, but many local rough sleepers also encountered restricted access to welfare benefits. The system can simply be too hard to negotiate, resulting in a preference for begging. Of course, that is an unreliable source of income, and it puts accommodation at risk, which is particularly relevant to the recurrent group.

The high proportion of persistent rough sleepers who have been in prison find that a lack of support on discharge frequently precipitates a return to a previous chaotic lifestyle. The operation of homelessness legislation itself can act as a barrier in some cases. For instance, rough sleepers fleeing from another locality, perhaps because of domestic violence, can be interpreted as having no local connection to Nottingham, while others vacating accommodation because of intimidation may be viewed as having become intentionally homeless.

The level of complex need generates particular problems, with many specialist facilities having been lost, as we have heard. As a result, many rough sleepers carry the baggage of past evictions and negative risk assessments, leaving them barred from many facilities and making them harder to accommodate. They often miss out on mental health or other assessments that might otherwise have opened up access to specialised support.

Ambivalent relationships with hostel accommodation are frequently mentioned, with stories of evictions for rent arrears or inappropriate behaviour, perhaps because of a lack of support. There are also stories of intimidation or financial exploitation by other residents, resulting in many refusing offers out of fear or trying to avoid being lured into a lifestyle they wish to escape. Personal relationships may have a toxic effect on the lives of persistent rough sleepers. Women, in particular, can be trapped in exploitative and abusive relationships that impede solutions to their housing problems.

When those factors are combined, it can often create disillusionment with what is perceived as a hostile system, making the option to live on the streets attractive. Experiences of repeated failure, the sense of there being no alternative, and the effect of growing numbers of rough sleepers in generating a mutually supporting community create an inertia in engaging rough sleepers to pursue better options.

While this was a limited study of rough sleeping in one locality, I hope that it will prompt the Minister to consider initiatives that are worthy of further research and experimentation. The report recognises how an ambivalent relationship with hostels can leave rough sleepers stranded, calling on the city council and other social housing providers to adopt schemes such as Housing First that bypass hostels and accommodate rough sleepers straight from the streets with appropriate support. Housing First is being piloted in Birmingham, Manchester and Liverpool—places with a devolution deal. What resources exist to develop Housing First as part of the solution in areas with high levels of persistent rough sleeping where there is not a directly elected mayor?

The complexities of human relationships should be acknowledged when drawing up personalised housing plans. For example, requirements such as a local connection and intentionality rules should not be applied too harshly to people who have a genuine need to escape a damaging relationship. Couples in a valued relationship should be able to be accommodated together.

As has been said, mental health problems have been shown to feature prominently among Nottingham’s homeless population. The Care Act 2014 was introduced to make social care assessments more readily available, but there is evidence to suggest that homeless people struggle to access this provision. Some councils have taken the view that rough sleepers with poor mental health or alcohol and substance-related problems have no entitlement to a needs assessment under the Care Act because, it is said, their need for care or support is caused by “other circumstantial factors” such as homelessness or rough sleeping rather than an underlying health condition. Can the Minister confirm that that interpretation of the Act, which has the effect of excluding rough sleepers from an entitlement that exists for the rest of the population, is incorrect? Will the Government issue guidance to clarify that people sleeping rough are entitled to a needs assessment under the Care Act on the same basis as everyone else? Does the Minister agree that when an individual who appears to have support or care needs presents to a local authority for assistance under the Homelessness Reduction Act, a referral should be made to the appropriate authority for a care needs assessment, with the outcome of that assessment taken into account when developing any personalised housing plan?

The correlation between persistent rough sleeping and recent spells in prison reflects a failure in offender rehabilitation. That was supposed to have been remedied by the Offender Rehabilitation Act 2014, but there is evidence that despite the passing of this Act, short-term prisoners are still being discharged to no fixed abode. What measures will the Government take to ensure its more effective implementation?

I first started applying for my Adjournment debate on this subject many weeks ago but, as so often happens in this place, the timing of today’s debate has proved incredibly fortuitous, because earlier today St Mungo’s launched a new report here in Parliament entitled “On my own two feet”. That peer research, which I am sure the Minister is aware of, examines why some people return to rough sleeping after time off the streets. It identifies a range of factors that can push people away from housing or services, and also pull factors that can draw people back on to the streets. When push and pull factors work together, they can lead someone to choose to return to rough sleeping or to see no alternative when a crisis comes along. The research also considered how holes in someone’s personal safety net can put them at greater risk. I hope the Government will look carefully at the recommendations in the St Mungo’s report before publishing their rough sleeping strategy next month.

I do not have time to talk at length about the excellent work being undertaken in Nottingham to tackle homelessness over decades. Since 2010, the Framework street outreach team has been identifying rough sleepers and linking them into assessment, support and accommodation. In 2016, Nottingham was successful in bidding for the Government’s £40 million homelessness prevention programme, and it used that to extend the reach of the outreach team across the rest of the county for two years.

Nottingham City Council and Framework have continued to resource and implement a “No second night out” policy after Government funding ended. Since 2016 the city council has committed more than £240,000 in additional funding to enhance its winter measures and ensure sufficient provision to meet the council’s pledge that no one needs to sleep rough in Nottingham. Their co-ordinated approach has formed part of the sound basis for their bid for the new £30 million rough sleeping fund announced by the Department in March 2018 for enhanced year-round support. I hope that the Minister can clarify whether the £30 million announced can only fund emergency measures, or if it can be used to support long-term resettlement for persistent rough sleepers. Is the fund a one-off measure to produce a short-term temporary outcome, or will there be further allocations for future years?

In the 2016 Budget, the Chancellor announced £100 million of capital funding to assist with the cost of developing Housing First and move-on units for people who have been sleeping rough. Some £50 million of that was allocated to the London Mayor, who now has the programme up and running. The other £50 million was for the rest of the country, where rough sleeping has risen more quickly than in the capital. When will it be possible for providers outside London to bid for some of the remaining £50 million, and what is the process for them to do so?

Alongside the city council and housing associations, including Framework and NCHA, there are many voluntary organisations and faith groups that make a huge contribution to supporting fellow citizens in Nottingham via food banks, day centres, night shelters and many other support services. We would not be without them. For some rough sleepers, particularly those with few options, they are a lifeline. What advice does the Minister have for local authorities dealing with long-term rough sleepers who have no recourse to public funds? What accommodation and support options are available to them, and how can they be funded?

Homelessness is a human emergency, but ending it is not an impossible task. The Government say they have a target to reduce rough sleeping by half by 2022, and to eliminate it entirely by 2027. If they are not to fail, Ministers must ensure that their strategy addresses the needs of all rough sleepers, including those who are hardest to identify, reach, support and sustain.

Sanctions and Anti-Money Laundering Bill [Lords] (Sixth sitting)

Alex Norris Excerpts

Tuesday 6th March 2018 Public Bill Committees

[Luke Graham]

Yes, exactly. I am conscious that we have discussed new clause 1 at length and that my right hon. Friend the Minister has listened to private petitions from me and other Members. I reiterate that I am sensitive to the different constitutional arrangements for each overseas territory, the way that local legislatures pass their laws and the reasons why they have interests in different areas of financial services, as the hon. Lady highlighted. However, the United Kingdom Parliament should be clear that, if we find a wrong, we should try to right it. I have received correspondence from overseas territories about the cost of implementing a public register and how that might negatively impact their economies. The United Kingdom Government should try to help them with any transition or implementation costs. In the longer term, if it means a shift in their economies and if implementing a public register creates a large gap, we should commit to helping their economies to transition. We must not just take away one aspect of their economies and leave them to fend for themselves.

I ask my right hon. Friend the Minister to commit to engaging with the overseas territories. We have already made a lot of progress. The United Kingdom mainland is the leading light on financial transparency, and we have led the way with the public register. We must engage with the overseas territories, take them on the journey with us and help them to overcome some of the challenges they will inevitably face in a positive and constructive way.

[Alex Norris (Nottingham North) (Lab/Co-op)]

It is a pleasure to follow the hon. Member for Ochil and South Perthshire. My hon. Friend the Member for Bishop Auckland probably shares quite a few of these views. She made a comprehensive and weighty case; I just want to build on a couple of elements of it. We have recognised on Second Reading and during this discussion that Britain and the British Parliament have a really good record in this area. We should be proud that we are world-leading, and we should continue to be so. As we debate this transition Bill, which is a Brexit Bill at its heart, we should ensure that we remain at the forefront.

We can have the best fence in the world, but there are limits to what we can do if this goes on to our neighbours’ properties. If we have a special relationship with our neighbour, perhaps there are better ways of doing it—I will not torture that metaphor further. At its root, this is clearly a problem that needs solving. The hon. Member for Ochil and South Perthshire characterised it as a wrong that needs righting. The Panama papers listed the British Virgin Islands as the No. 1 location for those issues. Similarly, as my hon. Friend the Member for Bishop Auckland said, Oxfam listed Bermuda as No. 1, and we have seen the briefing materials from Christian Aid. Just so this cannot be portrayed as an activist campaign—as though that could be a bad thing—HSBC and even BHP Billiton say that this is the sort of thing we need. BHP Billiton is the world’s biggest mining company, so it is not often that it and I are bedfellows, but it understands that unclear audit trails for money are bad for its business. They are bad for the communities from which the money comes, but also bad for BHP Billiton’s global finance enterprises, so it is urging us to take action.

This proposal is proportionate. We heard on Second Reading that, given that the overseas territories have had a difficult few months, time has been built into the proposal. There is recognition of how the Crown dependencies ought to be supported. Ministers have said throughout this Bill Committee that, when it comes to the overseas territories, we are responsible for foreign affairs and security. Absolutely—I could not agree more—and anti-money laundering and dirty money passing over borders in massive quantities are at the root of security and foreign affairs. Money laundering underpins global terror, and we ought to be squeezing it wherever we can, because that is one way of cutting off those networks. The combatants we engage with may seem like they are hidden in hills and hard to find, and are perhaps not like us, but from all we have been through over the past 20 years, we know that they have some very sophisticated cells, behind which is big money. This is a chance to clamp down on that.

This will say a lot about us as we go into the brave new post-Brexit world. We have heard the phrase “brand Britain”—the hon. Member for Ochil and South Perthshire talked about our brand—and who we are and where we place ourselves in the world will be very important to it. On the one hand, our Ministers are going round the world saying that we have a great approach to money laundering, but on the other, these are British overseas territories—the Minister referred to them as overseas territories, but they are British overseas territories, and our name is attached to them.

[Jo Stevens (Cardiff Central) (Lab)]

Does my hon. Friend agree that, although there are some very good things in the Bill, not dealing with secrecy in relation to the overseas territories will damage the credibility of the rest of the Bill and will put it in danger?

[Alex Norris]

I thank my hon. Friend for that useful intervention. I absolutely agree. We should not see the Paradise papers and the Panama papers as the past, and assume that we will not see anything about this issue again. We are likely to see such things periodically on different programmes and in different newspapers. Every time that happens, people will ask, “What did you do about it? When you heard about it last time, how did you act?” If we say, “Well, we have this brilliant law, which we consider world-leading, but we stopped short of doing this,” people will wonder why we did that, and that will damage our brand.

This is not just about the British overseas territories—people will say, “Hang on a minute. They are British. What are you doing in your engagement with them?”—but about the Crown dependencies. The Crown will, dare I say, be a very important part of brand Britain, and people will draw a very straight line. Even if we feel that we should not be able to act in this area, people will expect that we can, so we ought to have a pretty clear picture on it. What is being asked for in the two new clauses is proportionate and sensible, and hopefully something that we can all support.

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

I do not want to speak for very long, or repeat what colleagues have said. I very much agree with the comments made by my hon. Friends the Members for Nottingham North and for Bishop Auckland. However, there are a couple of aspects that I would like to emphasise, and provide the Committee with a bit more information on.

First, it is the friends of the overseas territories and Crown dependencies who are deeply concerned about the lack of action in this area. I have had many meetings with representatives from both groups of jurisdictions over the years, both as an MP and as a Member of the European Parliament before that, when I sat on tax committees and the Panama papers committees in the European Parliament. I have had many discussions on these topics. I acknowledge that there is currently some resistance, but there is also an awareness of the reputational damage that is being done to their jurisdictions, as my hon. Friend the Member for Nottingham North mentioned.

There is also concern about having the resource necessary to implement more transparency. I strongly agree with what the hon. Member for Ochil and South Perthshire said in that regard. That is why our new clause calls for support for the overseas territories to implement the changes. We do not want to end up in a situation similar to what happened in the Turks and Caicos Islands, where there were repeated warnings that there were problems but nothing was done until it got to such a height that there had to be what some would say was a very draconian response. We do not want to get to that situation; we want to see change. I will go on to explain what happened in the Turks and Caicos Islands in a moment, because colleagues need to know about that. We have not yet talked about the instances where Britain has exercised its relationships and the levers it possesses.

It is also important that we acknowledge that for many of the overseas territories and Crown dependencies there has been positive legislative change, particularly around 2013 and 2014. However, that has died off a bit recently. One thing that worried me was the fact that the British Virgin Islands have passed new laws against whistleblowers. That has caused a lot of concern, and appears to suggest a shift in the wrong direction. The US State Department, for example, has commented on the fact that low numbers of prosecutions are coming from some of the jurisdictions. Frankly, it is a bit of an embarrassment that the US State Department has commented on that, and we have not seen the necessary action.

It is also a major concern for our country. Others have commented on this, but we have not yet quoted from the National Crime Agency’s “National Strategic Assessment of Serious and Organised Crime 2016”. That report spelled out the problem with having our open register of beneficial ownership without having commensurate obligations in our associated jurisdictions—not to mention the register’s own problems, which we will come on to. The report said:

“When legislation to report beneficial ownership begins to be fully enforced…the UK will be less vulnerable to shell companies formed by professional enablers and others within the UK for the purposes of enabling bribery, corruption and money laundering. The UK will remain at risk from company formation in overseas jurisdictions where similar legislation is not in place.”

It is a direct concern for Britain that we have this leaky fence, to stretch again the metaphor of my hon. Friend the Member for Nottingham North.

It is particularly worrying that the British Government’s position seems to have shifted backwards. Other colleagues have mentioned that, and I wanted to draw attention to the precise language that is now being used by the Government. David Cameron gave us a commitment to beneficial ownership registers—not to public ones. We wanted him to go further, but he committed to getting registers that could at least be used by law enforcement agencies.

As of the debate on the Bill in the other place, we have a new formulation of words, talking instead about either registers, or similarly effective mechanisms to beneficial ownership registers. It would be helpful to hear from the Minister exactly how they are similarly effective. I asked a parliamentary question about this issue and I was told that, for example, electronic search platforms are a technical solution designed to achieve precisely the same result. Well, they do not achieve the same result if it takes longer for law enforcement agencies to get the information they need to root out crooks and prosecute them.

--- Later in debate ---

[The Economic Secretary to the Treasury (John Glen)]

May I say what a pleasure it is to serve under your chairmanship once again, Dame Cheryl? I acknowledge that the amendment seeks to set in legislation an obligation on the Government to implement, within 12 months of Royal Assent, our commitment to establish a public register of company beneficial ownership information for foreign companies that already own or buy property in the UK or who bid on UK central Government contracts. It puts an accelerated timetable on something that the Government are doing anyway. In the next few minutes, I will remind the Committee of the timetable to which the Government are committed for delivery of this policy. I will set out the challenges and complexities of the policy and demonstrate why setting an early and artificial deadline for implementation would inadvertently undermine its aims. I know that these are supported across the House, so it is important to ensure that we get the detail of the policy right.

In listening to the remarks made by the hon. Member for Bishop Auckland, I acknowledge the frustration around this; but this Government are committed to continue to lead by example and improve corporate transparency. Over the past five years, the reforms delivered by the Department for Business, Energy and Industrial Strategy have made the UK a global leader on corporate transparency issues. We were the first country in the G20 to establish a fully and publicly accessible company beneficial ownership register and, across the world, non-governmental organisations lobby their Governments to follow the UK example. There is a reason we have that world-leading reputation: it is because of the quality of the measures we have passed and it is a reputation we would lose if this measure were accepted. A 12-month timetable to draft and pass primary and secondary legislation, empower the responsible agencies and commence the obligations is not realistic. The rush to meet such an unrealistic deadline would inevitably lead to loopholes that would be readily exploited by those seeking to evade the new requirements.

[Alex Norris]

We are not just talking about a 12-month timetable; this was first announced by a Conservative Prime Minister in 2015. What have Ministers been doing since then?

[John Glen]

I will come on to explain the history of this and why we are where we are. I am happy for the hon. Gentleman to intervene if he does not feel satisfied at the end of that.

Mindful that the eyes of the world are on us, hon. Members should recognise that this legislation would be a world first. Successful delivery raises significant challenges and it is right that the Government achieve the right balance in an effective regime with robust enforcement that does not have a negative impact on land registration processes across the UK. I acknowledge that some have accused the Government—and we have also been accused this afternoon—of not acting swiftly enough to implement this policy. Let me address those concerns.

We have committed to publishing a draft Bill before the summer to introduce the Bill early in the second Session and for the register to be operational in 2021. Publishing a Bill in draft is the right approach. As I said before, this register will be the first of its kind in the world, it will affect people’s property rights, including not just new purchasers but existing owners. This is a sensitive and delicate area. Getting it wrong would have significant adverse consequences.

[John Glen]

I am not familiar with that particular map but I would be very happy to examine it. For clarity, and addressing the hon. Lady’s previous point, the register will capture the details of beneficial owners of all non-UK companies—including those in the overseas territories—that own UK property. This will be a world first, so we are moving as fast as possible, ensuring that the register is as comprehensive as possible.

As the Government set out in last year’s call for evidence, for the register to be effective the sanctions to be applied for non-compliance must be a meaningful deterrent. Enforcement must be energetic. Simple criminal sanctions may not be sufficient in isolation. The draft Bill will include enforcement through land registration law. Where an overseas entity buys property, it will never be able to obtain legal title to that property without having complied with the register’s requirements. Similarly, a restriction on the title register for property owned by an overseas entity will signal to third parties that the overseas entity must comply with the regime before selling the property, creating a long lease or legal charge. Those are significant steps on which it is right to consult.

Hon. Members will recognise that there are separate Land Registries in Scotland and Northern Ireland, as well as the Land Registry for England and Wales. The approaches taken to land registration and overseas entities by each of those Land Registries have been different until now. That too will need be streamlined. Delivery of an holistic outcome that complements all three land registration regimes is an exercise touching multiple teams across Government and the Land Registries. Put simply, it is an exercise that will take time to get right and a further demonstration of why publishing the legislation in draft is the appropriate next step if we are to get it right. Although I appreciate that the motive underlying the new clause supports the policy as a whole and demonstrates a desire for early delivery and implementation, it does not take account of the complexities that I have set out or the challenges of delivery and implementation.

The register will further demonstrate the Government’s commitment to combating money laundering through the property market. Hon. Members will have seen recent press reports—the hon. Member for Bishop Auckland drew our attention to the splash on 3 February—that two unexplained wealth orders have been obtained by the National Crime Agency in connection with two properties worth £22 million.

Those are the first orders obtained under the relevant powers conferred by the Criminal Finances Act 2017, which commenced at the end of January. They were obtained only a few days after it came into effect. As the Minister for Security and Economic Crime has said, the orders are an important addition to the UK’s ability to tackle illicit finance, and it is great to see them already in use.

The Government will continue to take action. BEIS’s response to last year’s call for evidence will be published shortly, and it will set out the Government’s approach to areas of particular complexity. BEIS has already made significant progress in preparing draft legislation; the work with the office of the parliamentary counsel to draft the Bill is under way.

Separately, BEIS is working to quantify the impact of the legislation on the UK. The impact assessment will quantify the register’s potential impact on the property market and investment flows, around which foreign direct investment is very specific, to pick up on the point made by the hon. Member for Bishop Auckland. The register will rightly make the UK more hostile to illicit flows of money, but we must understand the potential impact of legitimate inward investment.

All those issues were considered in last year’s call for evidence. Scrutiny of the draft Bill will further stress-test whether it will be effective. I hope that that process demonstrates the Government’s continued commitment to enact the policy, and our commitment to get it right. For those reasons, I hope that the hon. Lady will withdraw the new clause.

[Alex Norris]

rose—

[Sir Alan Duncan]

On a point of order, the hon. Member for Bishop Auckland earlier asserted that New Century Media is owned by a disreputable Ukrainian oligarch called Dmytro Firtash. That is completely untrue. New Century Media is owned by a former Member of this House, Mr David Burnside, whose reputation she has inadvertently maligned. I ask her to withdraw her comment immediately, or to say the same thing outside the House and take the full legal consequences of doing so.

--- Later in debate ---

[The Chair]

The hon. Lady has made a response, but it is really not a point of order for the Chair. Members have managed to put it on record, and we will move on. I apologise to Mr Norris, who did not catch my eye before I called the Minister. I call him now.

[Alex Norris]

You are very kind, Dame Cheryl. I am not a very good bobber—I find myself inadvertently bobbing in the wrong place or staying in my seat. My wife is currently doing the 100 squat challenge, and I wonder whether an afternoon of questions on a particularly good statement is a good way to make a down-payment on that. That is not the point I rise to make, however—proud of her though I am.

The new clause comes back to our place in the world after Brexit. There are very legitimate anxieties across the House, which are often played out in the Chamber, that post-Brexit, Britain will become the low standards capital of Europe: people will have all the benefits of being in Europe, but will not have to put up with those pesky regulations. We have what we consider to be very legitimate concerns about workers’ rights, product regulations and environmental standards that we raise frequently, and we hear back from Ministers—to their credit, we always hear back—“No, that is not our plan post-Brexit. That is not the Britain we want to live in.” We say that we will hold them to that, as we will.

The Ministers are exceptionally lucky that this is a good opportunity to raise that flag and demonstrate that. The Bill will send a strong signal about what Britain will be like and about our role in the world. The Ministers have said that it will be the first of its kind, which is a good thing. We should seek to lead on such important issues. We have a chance to lead and show that Britain is a high-standards, high-quality economy to occupy and if people come to Britain, they should expect to have the relevant level of scrutiny if there are questions over the assets that they bring or purchase. So it is time: that is what campaigners tell us and what we feel too. We are not asking for this to be done overnight. This is something that Ministers have had since 2015 and that will still have another year after this legislation passes, which is some way away. It is time.