(9 months, 3 weeks ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
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I am very sorry to hear what happened to Mr Ward-Best. His family should be able to get compensation through the historic shortfall scheme. That scheme is there to put Mr Ward-Best, if he were still with us, back to where he would have been had this detriment not occurred, and that can take into account things such as bankruptcy. That money would then be paid to his estate, which would then flow through to his family. The same compensation is available, despite Mr Ward-Best very sadly no longer being with us.
One sinister feature of this scandal has been how the Post Office has tried to intimidate and scare people into compliance. While researching this, I read that those receiving an historic shortfall scheme offer had been erroneously told by the Post Office that they were not allowed to talk about the terms of their compensation. The Post Office had no right to do that, but there will be a legacy of people who will be scared to talk out about this, or cause a fuss, because they believe that they are not allowed to do so.
Can the Minister put something on the record to give reassurance to those people who have been deliberately and maliciously misled by the Post Office into silence? The Post Office should not be able to do that, and those affected should be able to have their story told and to get justice.
I thank the hon. Lady for her point. I am not aware of the particular case to which she refers, but it is certainly our position that we want to work closely with people who have been through that scheme. The advisory board originally just covered the group litigation order claims. We then expanded its remit to cover all three schemes, so that it could ensure that they provided fair outcomes to all those involved. We wanted to give a level of consistency across the three schemes. The hon. Lady may want to contact Lord Arbuthnot or the right hon. Member for North Durham (Mr Jones) to discuss her concerns. I am happy to discuss the matter with the advisory board to see what might need to be done.
(1 year ago)
Commons ChamberI knew that when you referred to us all as distinguished and experienced Members you did not mean me, Madam Deputy Speaker.
This is the third time we have been back here, and I think it incumbent on the Government to listen to the Lords. They have made it clear that they feel strongly about their very reasonable amendments, which shows how important they are and how we should be getting this right. There is no question that, as the Minister suggested, we are going to let the Bill fall today. I think that if he were worried about that he would accept the Lords amendments this afternoon, rather than allowing the process to go on and on. We did not need to be here at the last minute; he could have accepted many of the amendments at a much earlier stage, because fundamentally he agrees with them. We know that, because he said it on many occasions before he took ministerial office. I think that a great deal can be done if the Minister will make that compromise this afternoon.
The notion that 99.5% of businesses can be exempted from the “failure to prevent” offence is absolutely mad. Small businesses are both part of and victims of economic crime. Some figures from UK Finance arrived in our inboxes earlier today. According to its findings, criminals stole £580 million through unauthorised and authorised fraud in just the first half of 2023. UK Finance says that that is a 2% decrease, but it is still a significant amount of money. Businesses as well as individuals are losing out, and the Government should be paying more attention to that.
The Minister described “failure to prevent” as a distraction for business. I wonder if he also thinks, for consistency’s sake, that the “failure to prevent bribery” offence in the Bribery Act 2010 and the “failure to prevent tax evasion” offence in the Criminal Finances Act 2017 are distractions for business. If he thinks that “failure to prevent” economic crime is a distraction for business, he must surely think that those other offences are also an unnecessary bit of bureaucracy that businesses have to carry out. It does not make any sense.
I fully support the level playing field for cost protections. We must give our enforcement agencies both the tools and money to do their job. No enforcement agency should be thinking, “We cannot afford to take on this case. We cannot afford to prosecute these economic criminals.” The Government should be supporting law enforcement, allowing this Lords amendment to go through, and ensuring that we make the best possible legislation. There is no excuse for the Government not to do these things. The Government agree with them, and we in the House agree with them on a cross-party basis. The Government should get on with it, and not return the Bill to the Lords.
I will certainly remember your exhortation to brevity, Madam Deputy Speaker. As you know, that is something of a challenge for me at the best of times.
(1 year, 1 month ago)
Commons ChamberThis is an important Bill and there is much good in it, but I am afraid that a number of areas require further attention. Now is not the time for discursive speeches, but I regret to say that notwithstanding the good in the Bill, the Government have fallen into error in relation to the two Lords amendments that they seek to reverse.
Let me say first that while a measure to deal with “failure to prevent” offences is a good idea, this measure is too widely drawn. The Minister made a point about the burden of costs on small businesses, but the definition of a medium-sized business is significant: the risk is less to do with the size of a business than with where it does its business, and also its corporate structures. One of the important things we have learned from the United States is that “failure to prevent” offences are not simply about prosecuting, important though that is, but also about changing corporate behaviour. I did not hear a word about that in the Minister’s speech, and I think it might be better to reflect on it again.
Lord Garnier tabled an amendment to compromise on micro-entities; perhaps we should think again about a third tier, consisting of medium-sized as opposed to small entities. That would not be unreasonable, given that many medium-sized entities do significant work abroad where there is some risk, and given that the costs are tax-deductible from profit. I urge the Government to think again, because having done so much good in the Bill, it will be a shame if we weaken its enforcement by widening the net too much.
As for the cost caps, when the Minister said that no prosecutions had been brought yet, he did not add that that was because of their chilling effect. People will not risk bringing prosecutions if their budgets are going to be eroded after the event by costs being awarded against them. Only yesterday, in the House of Commons, I had the pleasure of meeting Bill Browder, who has set out very clearly why that has been the case for a number of years. The Serious Fraud Office tried to bring a prosecution a few years ago and got its fingers burned, and there have been few prosecutions since then. This is about behaviours rather than outcomes.
I have to say—with apologies to the Minister, whom I like and respect—that the Government have taken an unduly restrictive and literalist approach to these matters. It would be far better to find compromises—to think again, go back to the Lords, and see whether there is somewhere between Lord Garnier’s position and that of the Government. Perhaps that third tier of the medium-sized entity is a way around this. The Government are committed to a review of cost caps in 12 months’ time, but, as my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland) said the last time this came up, what is there to review? The evidence is there: cost caps are chilling. As the Minister will see if he reads the evidence given to the Cambridge economic crime summit—at which I had the pleasure of speaking last week—it is overwhelmingly clear that not a single one of the experts could understand the Government’s position on this, so I ask them please to think again about it as well.
I strongly very much with what the hon. Member for Bromley and Chislehurst (Sir Robert Neill) said. Let us just agree with the Lords. Let us get on with this. Let us do this legislation, and do it properly.
Let me say first that it is important for us to have as much information as possible about those who own companies. It is clear from all the evidence that has come before us that the lack of such information causes people to find ways of hiding their money, and the UK has become a magnet for that. The Minister has suggested that there will be a significant cost to businesses, but businesses are already doing work on failure to prevent bribery. As Lord Garnier said on Monday, there is a clear read-across: it would be easy to add fraud to the current provisions. It would not be difficult, and it would bring about an economic benefit. The Minister also suggested that economic growth would be hampered in some way, but he himself has said that
“ a corporate offence of failure to prevent economic crime and money laundering would reduce the amount of money that is illegally shifted out of the UK into foreign jurisdictions and increase the amount of tax that is paid.”—[Official Report, 22 February 2020; Vol. 672, c. 220.]
Why does the Minister now disagree with himself? Why does he disagree with statements that he has made in the past? He knows that this is an important measure, and that this is an issue that we can deal with here today and it will be done. We will not have to come back to it, we will not have to keep debating it, and the Minister will be able to see that he has finished it off and done a good job.
On the issue of adverse costs, I agree with what Bill Browder said in his evidence to the Bill Committee. By not introducing such a measure, we are inhibiting law enforcement when it comes to economic crime. We know that those on the other side of the equation who want to hide their money have plenty of it to throw at the best lawyers and at the best accountants to make things look a particular way. If we are to be in this fight, we need to give the law enforcement agencies the resources that they require, and cost capping is a key element of that.
As I said the previous time we debated these matters, there is no need for a review. We need to get on with things. An election is coming, and we do not know when we will pass this way again. The Minister should accept the Lords amendments, and get on with the work.
I shall be brief. The hon. Member for Glasgow Central (Alison Thewliss) repeated her phrase of last week—and, indeed, we have passed this way again. I will resist the temptation to be too biblical today; I will simply reiterate to the my hon. Friend the Minister the points that I made last week. Lord Garnier has moved on the position in the Lords and offered an olive branch to the Government, in the sense that this is a different amendment. It rightly now affords what, in the opinion of many of us, will be greater protections for businesses. What is being ignored in this debate is the fact that businesses that take reasonable measures will not be the subject of a prosecution or investigation. Businesses that are not within this regime will not have that protection, so there is a cogent argument that failing to extend the “failure to prevent” offence to more businesses would leave them less well protected.
(1 year, 2 months ago)
Commons ChamberI am grateful to the hon. Gentleman for that clarification. The important thing is that journalists do not find themselves called before the courts through SLAPPs and this type of litigation, and that is the point we are trying to make here. I am sure the Minister has heard the hon. Gentleman.
As has been said, SLAPPs are used to silence and cover up. To effectively root out economic crime, it is right that we address their use, but I think the Government can go further still by reforming the UK’s whistleblowing laws. In doing so, we could encourage more people to come forward with evidence of economic crime, secure in the knowledge that the system is on their side. We must have a system that recognises any person as a potential whistleblower, not just an employee, as our current legislation does. We must have a system that values whistleblowers, not one that ignores or punishes them. We must have a system that makes whistleblowers feel supported and valued.
I know the Government are currently reviewing the UK’s whistleblowing framework, and I will continue to push for the reform we need. Meanwhile, these amendments are an important step forward, and I am pleased to support them.
I welcome the moves the Government have made on this Bill. It is important that they have done so, but they could still go much further.
I pay tribute to the work of the right hon. Member for Barking (Dame Margaret Hodge) on the all-party parliamentary group for whistleblowing, and to the organisations in this sector that do so much to bring light to what can be a very complex and detailed issue.
The Minister talks about the UK having a reputation for allowing legitimate businesses to thrive, but we are here this evening to challenge the other reputation that has built up over the years. The UK has now become a hub for dirty money, which is funnelled through the UK’s financial system by an army of enablers. This Bill is an opportunity to dam that flow and to stop this dirty money, but as the excellent “Catch me if you can: Gaps in the Register of Overseas Entities” report, published by the London School of Economics and CAGE Warwick, says,
“there is no point building a dam halfway across a river.”
Without closing the loopholes and the gaps, that is what this Government are doing.
The Minister has promised consultations and further things to come in the future. It is fine to dangle these things before us, but we all know that we are heading towards an election and the Government cannot promise to deliver on any of the consultations he hopes to bring forward. Whatever happens, there will be an election. This House is almost out of time, and we should take the opportunity tonight to do this Bill right.
I will run through the Lords amendments, given the time constraints you mentioned, Mr Deputy Speaker. The Lords amendment on nominee shareholders was tabled by Lord Vaux, and as other Members have said, there is an awful lot more we could do on that. It is not enough for the Government just to say, as they did in their letter to Members, that such a measure would most likely be ignored by illegitimate actors and would be difficult to enforce. That is not much of a reason not to legislate and not to try. There is a real issue with how complex structures have been brought about, and the Government need to grab hold of it. This Bill is an opportunity to close a loophole before it is further exploited.
Enforcement is a big part of this, and the Government do not enforce the current rules. Saying a measure would be difficult to enforce when they are not enforcing the rules to begin with does not give us great confidence. Between 2012 and 2022 only three fines were issued for false filing to Companies House. As of October 2022, only one fine of £210 has been issued for not filing the person with significant control of a Scottish limited partnership. If the Government do not enforce the rules they have brought forward, they cannot really ask for more rules. They need to get real about enforcement. They need to make sure the laws we pass this evening are effective.
Updates to the register of overseas entities are a significant gap in the system. As others have said, updates can take almost an entire year, in which time other things could happen. Event-driven updates would hold companies to account. If we think about it, there will be paperwork when companies make any change, so they might as well do the update at the same time. That would be logical.
Lords amendment 117 in the name of Lord Agnew, on the transparency of trust data on the register of overseas entities, makes a critical point. We must deal with trusts without further delay, without further consultation and without kicking the can further down the road. Here is the opportunity to do that. As Transparency International and the BBC showed in February, trusts are being used to hide the ownership of thousands of overseas entities under the current regime. They estimate that more than 7,000 overseas entities on the register, about a quarter of the total, are hiding the ownership of roughly 20,000 properties. Why would the Minister not want to close that loophole? Why would he not want to improve this system right now?
Is the point not that in the 400 pages of legislation we have before us we are doing exactly that: closing these loopholes, making it easier for businesses and making it easier for Companies House to make sure that these entries are valid? We are also committed to increasing the fees at Companies House to make sure that the proper resources are in place for it. Indeed, we have increased the resources for enforcement at the National Crime Agency by 40% since 2019, with this now standing at just below £800 million a year.
I thank the Minister for that point, but the number of incorporations is massive and the resource to Companies House is not keeping pace to check on each and every company that is going. I direct him to the tweet from Graham Barrow highlighting some of these issues, because there are so many companies and we need as many eyes as possible on this data. Companies House does not have the resource to do this and neither does law enforcement. Allowing those researchers who have the time, expertise and patience to tease out this data to do this and do it well is important. They must be allowed to do this.
Let me turn to the amendment on failure to prevent fraud, from Lord Garnier. I recall the Minister being keen on such an amendment beforehand and there is an awful lot more the Government could be doing on this. As other Members have said, if this can be done for bribery and tax evasion, there is no reason why doing it for fraud should present an additional burden. As the Minister himself pointed out, 99% of businesses are not in scope under what is being proposed here—again, that is ludicrous.
There is also an effect on small and medium-sized businesses to consider, because they also stand to lose money through fraud. They stand to be targeted by those who want to commit this fraud. So those businesses that are perhaps more exposed—those local businesses that do not have the power to stand up to those who would bully them to engage in such activity—are put at risk and should be better protected by this legislation, were they to be kept in line with it.
The hon. Lady has made a point, which the shadow spokesperson also made, about harms being done to small businesses by businesses that are committing fraud against them. But there is already a law against committing fraud, so why does the additional law about not taking any actions to prevent fraud help in those circumstances?
Because such a law has helped in the case of the Health and Safety Executive. The Minister used to talk about how when the health and safety legislation came in, the number of deaths at work dropped dramatically, because the measure was a preventive one, whereby one had to prevent people from being injured and killed at work. This works the same way for bribery and tax evasion, so why would it not also work for fraud?
I will not give way, as I am conscious of the amount of time for this debate. As I was saying, it is important that we recognise the significance of this to small businesses—this is there to help them, not hinder them.
I move on to the cost protection for civil recovery cases. Again, this is incredibly important, because the balance we have is not right. Those who can pay—the enablers, the lawyers, the sharp accountants—have a huge advantage over law enforcement agencies, which do not have significant resource and expertise to do this. As Bill Browder said when he gave evidence to the Bill Committee in October 2022:
“What has to happen here—this is plain as day—is that you have to get rid of this adverse costs issue in a civil case brought by the Government… If you make that point, it will change the whole dynamic—the whole risk-reward—for these people.”––[Official Report, Economic Crime and Corporate Transparency Public Bill Committee, 25 October 2022; c. 66, Q140.]
On adverse costs, the Government are saying that they are sympathetic to this, and they are going to consult and do some other things later on, but by not putting this measure in this Bill, they are allowing this uneven playing field to continue and be perpetuated. Because the law enforcement agencies know that it is going to cost them an absolute fortune, which they do not have, these cases go unpunished and those who perpetrate all of this money laundering, with all this money washing through the UK financial system, will see this continue, because people can afford to get away with it. The Government should be deeply concerned about that.
Let me recommend to the Minister Bill Browder’s latest book—if he has not already read it. It exposes the capture of all of these enablers, from lawyers to everybody else; we need to be looking to close the door on that in this Bill. The Government have an important opportunity here. This important situation does not come along very often and we do not know when we will pass this way again. We have a Bill in front of us. The Government could go for accuracy and for transparency in the register. They could close the door, fix the loopholes and do all of these things that they must do. They could accept these Lords amendments tonight. They could fix this Bill and do it right, and we would not have to come back here to legislate again.
It is a pleasure to follow the hon. Member for Glasgow Central (Alison Thewliss). She said that we might not pass this way again. Indeed, this has been a very long way for me and for many others in this House who have been making the case for a failure to prevent offence for many years, both in office and as Back Benchers. I am delighted that the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake) is in his place, because he is a true believer as well.
I hoped that tonight could have been a Simeon moment—I could have sung my Nunc Dimittis and departed in peace—but no, I am afraid that, as a result of the welcome but somewhat limited amendments made by the Government in the Lords, I am reduced to the role of Moses; I can see the promised land but I am not, it seems, according to the Government, destined to get there. Therefore my exhortation to my good friend the Minister is, “You can be Joshua. You can knock the walls of Jericho down. You can go the extra mile and finish the job.”
We have heard a lot about this failure to prevent offence, and the word “fraud” has been bandied about as if we were dealing with fraud in general. May I, perhaps uncharacteristically for some hon. Members, draw the attention of the House to the Lords amendments themselves, because they are what we are considering?
I, like you, Madam Deputy Speaker, am a stickler for ensuring that we stick to the point, so I turn to page 46 of the bundle and, in particular, amendment 151, which is the proposed new clause “Failure to prevent fraud”. It ain’t any old fraud; it is fraud intending to benefit “the relevant body”. That is not a fraud in general, about loss to the taxpayer or the company—in fact, there is a specific defence on that basis that says if the fraud causes loss to the company, it is not a criminal offence—but a very targeted type of fraud that is about benefit to the company.
As a lawyer, Madam Deputy Speaker, you know that we have something called the criminal standard of proof. This is not any old regulatory device; this is a criminal offence. The threshold and standards that have to be applied by the police, the investigating authorities and the prosecutors are high. As my right hon. and learned Friend the Member for Kenilworth and Southam (Sir Jeremy Wright) said, the defence set out in clause 4, about reasonable prevention proceedings, is crucial. When I hear people talk about regulatory burden, I have to say, in all candour, that that is a misplaced understanding of what this rather limited offence will achieve.
I think my right hon. and learned Friend will accept there will also be a requirement to analyse actuarily the business to see what risks there are, and any perceived risk would of course require those prevention procedures to be put in place. We have analysed this and tried to get some context around the costs to businesses and think it would be in the order of £4 billion, so there would be significant burdens. For that reason, we are not persuaded to change our threshold.
Let me correct myself to the hon. Member for Rhondda (Sir Chris Bryant). I was only out by a factor of 100 when I talked about the number of warning notices sent to overseas entities; 1,000 warning notices have been sent.
The hon. Member for Feltham and Heston (Seema Malhotra) talked about the introduction of SLAPPs, and we are clearly keen to do that at the earliest possible time. We have to work with the Civil Procedure Rule Committee to implement a new cost protection scheme for SLAPPs defendants and the early dismissal mechanism via secondary legislation as soon as possible. We cannot give a definite date, however.
I thank my hon. Friend the Member for Cheadle (Mary Robinson) for all the work she does with the all-party group on whistleblowing, which I was heavily engaged with as a Back Bencher. We have a review of whistleblowing that should conclude by the end of 2023. On extending SLAPPs to areas of our economy outside the economic sector, we are considering further legislative options. Clearly, in this proposed legislation it could only pertain to economic crime due to the extent of the Bill.
The hon. Member for Glasgow Central (Alison Thewliss) rightly talked about enforcement resources and also some of the limitations in the current regime, and that is exactly why we are legislating. The provisions we will make will increase the incorporation fee for Companies House. In addition to the £63 million we have put in to pump-prime this work—the extra people at Companies House will therefore be resourced, and there are already 400 people there to enforce the provisions of this legislation—we expect to increase incorporation fees to around £50 and also to extend the costs of annual returns to raise the money as necessary to make sure that the requirements of the Bill are fully implemented.
Given the woefully low number of fines for false filing and the single one for not registering a person of significant control for Scottish limited partnerships, will we see that increase?
That is exactly why we are legislating. These are the biggest reforms to Companies House in 170 years. We have to legislate first and ensure that the resources and the enforcement are in place. We are on the same page in this area.
(1 year, 5 months ago)
Commons ChamberLet me start by referring the House to my entry in the Register of Members’ Interests and the fact that I am a proud member of the Glasgow city branch of Unison, one of the largest trade unions across these islands.
Like many other Members, including my hon. Friend the Member for Glasgow East (David Linden), I am completely puzzled as to why there seems to be industrial action on the Government Benches every time we discuss industrial action law. Could it be that Government Members are so outraged by this Bill, and indeed support the Lords amendments, that they are at the TUC rally outside? I doubt it somewhat. Or is it simply the fact—as I believe to be the case—that Government Back Benchers do not have the confidence in their own arguments for this legislation to come here and defend the Government’s position?
It seems that the unelected House—the comrades in ermine down the corridor—has a greater understanding of what happens in workplaces across these islands than the Government do, and we can see that in some of the amendments. It is quite incredible that the Government oppose an amendment that would make it the employer’s responsibility to serve a work notice. The Government then say that they want to keep the measures in the Bill for dismissing a worker. This is quite incredible.
Imagine the scene. The day after industrial action, a poor individual who went on strike goes back to their work and is asked by the employer, “Where were you yesterday?” They are going to answer, “I was on strike.” But they are then told, “Well, you were served a work notice,” and that person will rightly say, “Where’s the proof from you as the employer that I was served a work notice?” The employer is going to say, “Under the legislation, we don’t need to serve the work notice, but we have the right to dismiss you, because we think you should have been served one,” and they will end up being dismissed—with no right, incidentally, as I understand the legislation, to an employment tribunal. You really could not make this up.
The Government also oppose a sensible amendment to ensure oversight of the powers in the Bill. A Government who are confident in their own legislation should welcome an amendment to ensure oversight of the Bill and a Committee of each House to look at how the powers are exercised. Of course, as the Minister has indicated, he opposes that Lords amendment, too.
Then we have Lords amendment 1. I heard the Minister say that industrial relations is reserved. Well, not quite, Minister, because when there are elections to Scotland’s Parliament or the Senedd in Wales, political parties—at least the sensible and good ones—will have in their manifestos how industrial relations should be addressed in areas of devolved competence. That would seem the sensible approach for a good political party to take, which is why there are debates in both those devolved Parliaments about the fair work agenda. We should have more of those debates in this place—but of course, the Government would not know fair work or the fair work agenda if it crossed them in the street.
The reason I think the Lords have got it right in their amendment 1 is that the Government seem to believe, and take the position, that they know better than the Scottish Parliament or the Welsh Senedd about devolved areas of responsibility. In seeking to reject Lords amendment 1, the Government are arguing that Ministers at Westminster level have the expertise to know what the minimum service levels should be in transport, health or anything else in Scotland or Wales, when they cannot even manage their own minimum service levels in this Chamber. What chance have we got that they will understand?
If anyone seriously believes that a Minister in this place has an understanding of what the minimum service level should be in a devolved competence, then I would suggest that they must be a right Michael Blackley. Frankly, you could not make it up. It is laughable position, and the Lords have got it right. In this respect, the law should apply to England only, and then England’s representatives should decide whether, possibly, the legislation should apply at all.
My hon. Friend is making excellent points about the importance of industrial relations and Scotland having the expertise to deal with that. Does he agree that industrial relations in Scotland in recent years have been much improved on the situation under the Westminster Government, certainly in negotiating pay and conditions for workers in Scotland?
I thank my constituency neighbour for that excellent intervention, because as my good Friends the Members for Glasgow East and for Kilmarnock and Loudoun (Alan Brown) indicated earlier, the area of the United Kingdom with the least industrial action is Scotland. That is because there seems to be a mature relationship between employers and trade unions in Scotland—far more mature, it would seem, than in England, for example, where we see Government Ministers bashing trade unions on a daily basis on the sofas of breakfast television.
I want to end my remarks, because I am conscious that others want to speak in this debate. The fact that the Government want to dismiss workers for exercising the human right to withdraw their labour is what makes this an absolutely despicable and disgraceful piece of legislation, which would tie them in with countries such as Russia and Hungary. We might think that those are not examples that the Government should follow. It seems quite frankly bizarre that they do want to follow them. I will be in the No Lobby tonight, because I agree with these Lords amendments.
(1 year, 5 months ago)
Commons ChamberI read that with interest, and I spoke to my hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) yesterday about the matter. It is important that all regulators with responsibility for regulating and promoting growth continue to be held to account for delivering on those objectives. His proposed joint committee of Members of both Houses is for the House authorities to consider, but I note that in a regulatory system that already has a number of accountability mechanisms, adding another layer could risk more uncertainty rather than clarity.
Leaving the cost of formula up to the market has resulted in soaring prices, as Sky News has revealed this week. Parents are stealing formula from shops, relying on baby banks and formula foraging on Facebook, while profits and marketing spends of the companies have soared. Will the Minister instruct the Competition and Markets Authority to investigate the sector to protect our younger citizens?
The CMA is an independent body that decides where it should intervene. We keep these matters under very close scrutiny. Competition is the best regulator. We have a very competitive market for the supermarkets. There are 14 supermarkets, all regulated by the Groceries Code Adjudicator. It is important that competition is allowed to play its role in driving down prices, but we will keep an eye on that.
The answer is yes; we are actively working on the issue, and we are not the only country impacted by it. Just yesterday, officials from Germany were talking about how they needed to look into it. It is due to the rising cost of components, which we will look at as part of our trade and co-operation agreement, but it is something that both sides are interested in resolving, so I assure the hon. Lady that we are actively working on it.
Businesses and organisations in my constituency, and no doubt beyond, have ended up marooned on exceptionally high energy tariffs because they were forced to sign contracts at the height of the crisis. What conversations have Ministers had with Ofgem and with the energy companies to see what can be done to support those businesses, as those tariffs will be a drag on their future growth and development, and in some cases threaten their very survival?
The hon. Lady makes an important point. Alongside the Minister for Energy Security and Net Zero, I met energy suppliers and Ofgem recently to discuss the matter. The problem is principally that energy prices have fallen, so businesses entering into new contracts today are getting more competitive rates, but the ones who entered contracts between July and December last year are facing difficulties. The energy suppliers have promised to help, but if the hon. Lady wants to talk to me about any particular instances, I am happy to help.
(1 year, 5 months ago)
Commons ChamberThe answer is yes. I wrote back to and engaged with all the Members who wrote to me about this issue as soon as I became Business Secretary. The response had been so quiet that it felt to me very much like a technical change, which is what it is. I am very happy to explain as much as possible on the Floor of the House. But I emphasise that this was my decision; it was not that of the Prime Minister or civil servants. It was me looking at the detail and deciding that this was the best approach because it is how we will get to that number but create more time for reform. It is about accelerating the process. I do not think anyone in this House can claim that I am not a Brexiteer. I stood here less than a month ago talking about how we had successfully negotiated the comprehensive and progressive agreement for trans-Pacific partnership, the biggest trade deal that we have ever done in this country since we left the EU. That is a benefit of Brexit. I am very proud to continue to do that. This is the best way for us to deliver more benefit over and over again rather than spend our time on parliamentary procedure, which does not mean much to people on the doorstep.
As chair of the all-party parliamentary group on working at height, I have been trying to get clarity for some time on the very specific Work at Height Regulations 2005. Can the Secretary of State tell me whether those regulations will be included or protected? The assurances that I have had so far have not provided the clarity that the sector needs.
The hon. Lady will know that I was not privy to those conversations. If she writes to me with the specifics, I should be able to provide an answer. What we have talked about changing is the bureaucracy around reporting, and that does not sound like what she raised.
(1 year, 8 months ago)
Commons ChamberI believe that my hon. Friend is the trade envoy to Pakistan, and I look forward to collaborating with him. Pakistan already has a preferential trading relationship with the UK through our generalised scheme of preferences. This will be replaced by the developing countries trading scheme, and Pakistan will continue to benefit from duty-free exports to the UK and the removal of tariffs on 156 products. I look forward to working with my hon. Friend.
Edusport Academy, based in my constituency, was set up in 2011 and had a thriving business prior to Brexit. It brings young sports people over to Scotland, combining sport and English language training. Since Brexit, Edusport has struggled to make the business work due to restrictions put in place by the Home Office. Will the Minister meet me and Edusport to discuss how we can make this business work and continue to thrive?
As I have said, we will continue to work with the EU to try to reduce barriers that do exist. I cannot make a promise on behalf of the Home Office, but I note what the hon. Lady has said, and I will try to facilitate the appropriate meeting with the appropriate Minister for her.