Economic Crime and Corporate Transparency Bill

Andrea Leadsom Excerpts

Report stage
Tuesday 24th January 2023 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

Before I call Dame Andrea Leadsom, I remind everybody that a number of cases are still before the courts, and we do not know all the cases that there are. Even though the sub judice rule does not apply when we are legislating, Mr Speaker has urged caution for those live cases. If Members could do us a favour and look up cases that they intend to mention, that would be really useful.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

It is a pleasure to follow the hon. Member for Glasgow Central (Alison Thewliss). I agree with much of what she said, particularly about this House wishing her mum a very happy 70th birthday.

I also pay tribute to the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake). I find it amazing that he has only recently become a Minister, as he has been such a stalwart and incredibly diligent in promoting better performance by the banking and business sectors. It is great to see him in his rightful place at the Dispatch Box.

I rise to speak to new clause 20, in the name of my hon. Friend the Member for Barrow and Furness (Simon Fell), and to the two amendments I tabled that, very annoyingly, have not been selected, which are to do with phoenixing. I agree in general terms with the thrust of the debate: for reform of Companies House to be effective, it needs to be required to do new things. It is not enough to facilitate things; it needs to be given new duties and therefore the resources to be able to fulfil those duties. I can tell the House that in the brief time I spent as the Secretary of State for Business, Energy and Industrial Strategy, I had discussions with the excellent team of civil servants who are looking at company law reform, corporate governance and the Insolvency Service, and it is true to say, I am afraid, that they were not invited to go and talk to Ministers terribly often. They were definitely a bit of a Cinderella out there in BEIS, and this incredibly important area needs much more focus.

Oral Answers to Questions

Andrea Leadsom Excerpts

Tuesday 17th January 2023 Commons Chamber

[Kevin Hollinrake]

That is an interesting point. We are looking at pay reporting, especially in larger companies. We want to minimise the burden of regulation on smaller companies, of course, but the hon. Gentleman raises an interesting point, and we will have a close look at it.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

My right hon. Friend knows only too well our energy triple challenge of keeping the bills down, keeping the lights on and decarbonising. As chairman of the 1922 Backbench committee on Business, Energy and Industrial Strategy, I draw his attention to the fact that we have just published a report on the future of energy. In my humble opinion, the report is packed full of incisive and actionable policy suggestions. May I invite him to meet me and my vice-chairs to discuss it and the implications for his Department?

[Grant Shapps]

My right hon. Friend is absolutely right in her analysis: I have not yet read her report but I look forward to receiving a personalised copy of it, and I certainly look forward to meeting her, alongside the Minister for Energy and Climate, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart).

Retained EU Law (Revocation and Reform) Bill

Andrea Leadsom Excerpts

2nd reading
Tuesday 25th October 2022 Commons Chamber

[Dean Russell]

I will come back to the hon. and learned Lady in a little while.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

Has my hon. Friend noticed, as I have, that Opposition Members seem to think that the only place that can possibly regulate, possibly have high standards and possibly deliver laws for this land is the EU? Does he agree that, actually, we have created much better regulation and far stronger standards that are much more flexible and suited to these islands than the EU and that we should carry on doing that?

[Dean Russell]

I thank my right hon. Friend—she is a very good friend—for her comments. The Bill is ultimately about making sure that we continue to do what we have done for decades, if not centuries: exporting high-quality products, exporting doing the right thing and exporting making sure that the world is a better place.

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[Mr Rees-Mogg]

I am not giving way again. Otherwise, my hon. Friend would not have intervened at this stage, because I was setting out the issue of supremacy before coming to the crucial point about why the Bill is now necessary and how it works in practice.

[Dame Andrea Leadsom]

rose—

[Mr Rees-Mogg]

I give way to my right hon. Friend.

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[Dame Andrea Leadsom]

I am grateful to my right hon. Friend for all the work that he has done. I was actually hoping to clarify the point that our hon. Friend the Member for Gloucester (Richard Graham) was making. Having myself held the role of Leader of the House during that attempt to leave the EU between 2017 and 2019, I recall that the House was able to get through some 800 or 900 pieces of secondary legislation. In my opinion, it is very much within the realms of possibility that this amount of legislation can and will be dealt with by the House very successfully.

[Mr Rees-Mogg]

I am very grateful to my right hon. Friend, who has made an excellent point. The ability of the House to get through its business is exceptionally good, and it is able to do so in an orderly way, as my right hon. Friend showed in dealing with the no-deal Brexit legislation.

Oral Answers to Questions

Andrea Leadsom Excerpts

Tuesday 7th June 2022 Commons Chamber

[Kwasi Kwarteng]

As I have said once and am sure I will repeat, my right hon. Friend the Chancellor of the Exchequer has dedicated £37 billion precisely to help people through what is a very difficult time in relation to the cost of living.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

I congratulate my right hon. Friend on the excellent package of support for consumers and businesses, but I am sure he will agree with me—unlike the Opposition parties—that it is not just about what the Chancellor can do to step in: there are lots of steps that consumers and businesses can take for themselves to reduce their own energy costs before the energy price cap is changed again this autumn. Will my right hon. Friend update the House on what more can be done to help consumers and businesses to cut their own energy costs?

[Kwasi Kwarteng]

I am delighted that my right hon. Friend has raised that issue. As a keen follower of these matters, she will know what we have done in relation to the heat and buildings strategy, which sets out clearly the kinds of steps that we want people to see in respect of insulation and the possibility of selling energy back to the grid. We are doing lots of exciting things in this policy area. I am sure that my right hon. Friend will be pleased to hear that I am always interested in her ideas and I am delighted that she is heading our Back-Bench policy committee in this area.

Energy Security Strategy

Andrea Leadsom Excerpts

Tuesday 19th April 2022 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Don’t forget: we want short questions and short responses, please.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

My right hon. Friend is aware that the Back-Bench committee on business, energy and industrial strategy has done a very swift and urgent inquiry into how businesses and households can reduce their energy bills this winter. Will he and the Minister for Energy, Clean Growth and Climate Change meet me and my vice-chairs to discuss some of the very sensible and practical measures in the inquiry?

[Kwasi Kwarteng]

Absolutely. I always want to take the opportunity to commend the great work that my right hon. Friend did when she headed the Department, when I was Energy Minister. We are really continuing in that vein. The Minister for Energy, Clean Growth and Climate Change and I will be delighted to meet her and her committee to discuss ideas that will give us security, affordability and sustainability.

Shale Gas Production

Andrea Leadsom Excerpts

Tuesday 15th March 2022 Commons Chamber

[Greg Hands]

What happens to the wells is soon to be a matter of discussion between the Oil and Gas Authority and Cuadrilla. On what the hon. Lady said about maintaining local support, the support of the local community is incredibly important. It is stating the obvious to some extent, but as Energy Minister I have discovered that for all energy projects—whether offshore wind, onshore wind or solar—we need local community support, and fracking would be absolutely no exception to that.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

I pay tribute to my hon. Friend the Member for Fylde (Mark Menzies), who has done so much over many years to support his constituents, who have been adamantly opposed to shale gas extraction. However, frankly, the Opposition talk a load of tosh when it comes to how we are going to meet our net zero ambitions. My right hon. Friend the Minister has set out our amazing achievements in renewables and in our commitment to achieving net zero. Nevertheless, to meet the exponential increase in electricity demand in order to make the transition, we have to look at the lowest-emission fossil fuel, which is gas. If we have safe and secure resources in this country, which we undoubtedly do, it is absolutely right that we talk to communities about whether they would like to have free gas in return for committing to shale gas extraction in their area. That is only right.

[Greg Hands]

A huge part of the Government’s delivery on renewables in the past 12 years is down to my right hon. Friend, first as Energy Minister and then as Secretary of State at my Department. In both those roles, she drove forward a big increase and made some of the early, tough decisions on renewables, so I absolutely pay tribute to her.

My right hon. Friend is absolutely right on gas: the Climate Change Committee itself has said that the use of gas can still be consistent with reaching net zero in 2015, and—let us face it—it is vital for our energy mix today. She also made some strong points about how we keep local consent and local communities on board. In respect of all forms of energy, that is one of the central principles that the Government are keen to maintain.

Nuclear Energy (Financing) Bill

Andrea Leadsom Excerpts

Report stage & 3rd reading
Monday 10th January 2022 Commons Chamber

[Kwasi Kwarteng]

I am pleased that the hon. Gentleman mentions tidal, because for the first time, I think, in the history of the technology—in the history of the world—this Government committed to supporting tidal stream only last year. I am pleased that he should support that initiative.

I would like to make a few brief comments on some of the key themes that the debate has covered. One of the Labour party’s amendments would have put investment in new nuclear in the deep freeze. It would have prohibited investment from abroad. The very purpose of the Bill is not only to reduce the UK’s reliance on overseas developers for finance, but to widen—and this is often overlooked—the pool of potential investors, including British institutional investors and investors from some of our closest allied countries. That is why we rejected the Opposition amendment and why we feel that the Bill broadens our ability to finance new projects. The amendment would have ruled out many companies and prevented like-minded allies such as Canada, Norway and Singapore, with their large pools of capital, from being able to invest in our industry.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

I sincerely congratulate my right hon. Friend on bringing forward this Bill. There is absolutely no doubt that nuclear provides the zero-carbon baseload that we need in our transition to net zero, and this is really going to help, so many congratulations to him.

[Kwasi Kwarteng]

I thank my right hon. Friend for her intervention. The House will know that she and I worked very closely in the Department for Business, Energy and Industrial Strategy, and she was one of the first in the new Parliament to realise the key importance of nuclear. I pay tribute to the work that she, among others, did to drive this agenda. Clearly, this Bill is timely because, as she said, we cannot reach net zero without a substantial commitment to nuclear.

Subsidy Control Bill

Andrea Leadsom Excerpts

2nd reading
Wednesday 22nd September 2021 Commons Chamber

[Kwasi Kwarteng]

As I have stressed, this regime has been discussed extensively with the devolved Administrations. Clearly we have conflicting views, but I believe the Government have worked constructively with the devolved Administrations and we feel that, along with our localism agenda, this is a step in the right direction. Compared with where we were for nearly 50 years in the EU state aid regime, this Bill is a significant improvement and enhancement that represents much greater devolution in this area than we have ever seen before.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

Is my right hon. Friend as afraid as I am that the nationalists in Scotland will use any opportunity to be different and will impose big, generous subsidies to artificially support their own businesses simply to try to ensure that the English feel hard done by because it suits their agenda of separatism? That is not, in any sense, in the interest of the taxpayer.

[Kwasi Kwarteng]

My right hon. Friend makes a legitimate and correct observation about the general obstructionism we sometimes see. There are seven principles outlined in the Bill, however, and one of them is not to distort the UK internal market, so what she says would clearly raise issues.

Our emphasis in this regime is on transparency, accountability and, of course, agility. This all means that we will not simply be replicating the European Commission’s role in the process, requiring a central body in Brussels to sign off on specific subsidies. In other words, the UK Government did not go to great lengths to secure autonomy from the European Union on subsidy control only to reimpose the same old EU rules months later. That is not what this is about. I hope hon. Members will agree that outside the EU we will have the opportunity to do things differently. We did not leave the EU simply to settle back into the old ways of thinking and into the way things were done before. Those days are over.

I strongly believe that making the most of this new regime will need a culture change, not just in public bodies, devolved Administrations and local authorities but in central Government. It will be a culture change to take more responsibility for our own decisions, not simply outsourcing difficult decisions to the European Commission as we did for nearly 50 years. It will mean that we can be more accountable to the electorate for when and how taxpayers’ money is spent, and that we will be more agile in distributing public resources.

The Bill will ensure that our new subsidy system will maintain a competitive, free-market economy that has been central to the UK’s economic prosperity and success for decades. In that spirit, I commend the Bill to the House.

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[Seema Malhotra]

I thank the hon. Member for his comments. I will be making a considerable contribution on the issues associated with devolution and our grave concerns about this Bill, which we would want to see corrected. They need to be addressed because we want legislative consent to be given and the concerns being raised by devolved Administrations to be addressed.

Much in this proposed regime reflects EU state aid rules, including the definition of a subsidy, the prohibition of unlimited state guarantees and the condition that subsidies should be justified on public interest grounds. Where the Bill significantly differs from the EU’s rules is in its departure from a pre-notification system, where subsidies had to be approved before they were granted. The Bill offers the potential of a quicker system where subsidies are not required to be approved in advance of being implemented, but are subject to a review and appeal system. We want this regime to be robust and to stand the test of time, but the new system will work only if it provides transparency, oversight and scrutiny, and there are key areas of the Bill where those are missing.

First, there are huge gaps in the Bill and crucial aspects are yet to be defined. The Bill may establish a regulatory framework of subsidy control, but it fails to provide any clear indication as to how and where the Government plan to see those subsidies being spent and at what scale. Labour is in favour of a subsidy system that backs British businesses and our economy, but it must operate in the context of a strong UK-wide industrial strategy, which for all intents and purposes is not nearly where it needs to be. Furthermore, there is no clear plan for how the new subsidy control regime will be used to support national priorities such as net zero. Much more needs to be joined up and coherent in the new regime.

Secondly, the Bill in its current form does not provide a fair role for devolved Administrations—we have heard that in hon. Members’ interventions—in developing and implementing the new regime. We believe that changes must be made.

Thirdly, we are concerned that the Bill does not strike the right balance between efficiency and oversight, particularly regarding the role of the Competition and Markets Authority. Transparency is also severely lacking in the case of some subsidies, putting the country at risk of allowing damaging subsidies on the scale of hundreds of thousands of pounds, and allowing the use of public money to continue unknown and therefore unchallenged.

Although the Bill may propose a quicker subsidy regime, we want to understand further how the Government plan for those subsidies to be used, what will be brought forward from the contributions to the Government’s consultation and the response to it, and how that will manifest in the guidance to come.

We have heard the concerns about support for assisted areas or key British sectors and foundation industries, such as steel. As the Minister for Finance and Local Government in the Senedd asked in her letter to the Government:

“If areas that have suffered historical economic disadvantage will no longer have the right to greater flexibility of subsidy over other regions… what alternative approach does the Government propose to ensure that disadvantaged areas can compete on a level playing field?”

Is the equivalent to an assisted areas policy implied under the seven principles, for example, equity rationale or specific policy objectives? In that case, will the Government make that clear in the guidance? Public authorities that will transition to the new regime in our devolved Administrations need that clarity.

Parliament is right to be concerned that the Conservatives are more interested in levelling-up rhetoric than in actually levelling up. In March last year, the regional deprivation fund highlighted that clearly, which led to considerable debate in the House. The Government appeared to direct money not to areas that needed it most, but to areas that seemed to serve their interests. If the Government are truly committed to their levelling-up agenda and their plan for growth, they need to show it. The Secretary of State should publish their plans and detailed guidance on how the subsidy control regime will direct public funds to the communities and businesses that need it most, in the interests of genuinely levelling up in deprived areas and our wider economy.

We also know that the UK has historically spent far less on subsidies than its international counterparts. For example, in 2019 the UK spent just 0.38% of GDP on state aid, far lower than Germany, which spent more than three times that or Hungary and Denmark. Indeed, we were seventh lowest in the EU.

The Secretary of State does not have the strongest record on industrial strategy, given that he scrapped his predecessor’s plan and wound up the Industrial Strategy Council in March.

[Dame Andrea Leadsom]

Why does the hon. Lady equate the fact that the UK has an excellent track record of allowing businesses to stand on their own two feet rather than being bailed out with state aid with not having an industrial strategy? Surely we are backing capitalism as the way for everybody to become richer and be in work.

[Seema Malhotra]

I will just leave the right hon. Lady with the Institute for Government’s feedback on the Government’s plan for growth, which was that it seemed more like a shopping a list than a prospectus. If those who independently look at what the Government are producing in terms of a plan and our industrial strategy make such comments, the Government would be wise to heed some of that feedback, in the interests of our country. I would like to be having a different debate. I would prefer to have a debate that was much more about content than on whether there is a clear plan.

Let me come back to my speech. We recognise the debate about whether the Government have a strong record on industrial strategy. Last week, the Confederation of British Industry urged the Government to

“build an economy of the future through catalytic public investments”

and to re-find its “role as market maker”. On research and development, innovation, regional growth and hydrogen—on which, perhaps, a strategy has since come forward—the CBI said that further action was needed for the UK

“to remain internationally competitive against peer nations where business investment levels–and public spending…far outstrips our own.”

Sufficiency of strategy is important here; it is not just about the publication of a document. There has been feedback on that, too.

We want to see well-designed, proportionate subsidies as part of the wider industrial strategy that we need to grow the businesses and industries of the future and to invest in our transition to net zero. Labour has also said that we must buy, make and sell more in Britain, as called for by our shadow Chancellor, my hon. Friend the Member for Leeds West (Rachel Reeves). That is part of how we can ensure resilience in our economy—the need for which has been highlighted only too starkly by the gas-price challenge and the CO₂ challenge of the past week.

The Bill lacks in not only vision but key details and scrutiny. The Institute for Government has expressed concerns about the ability of this House and the other place properly to scrutinise the new subsidy control regime, given the important issues that are being left to secondary legislation or guidance. The Institute for Government claims that the gaps left in the Bill by the Government

“could deny Parliament a proper chance to scrutinise how the new system will work”.

The Government’s own impact assessment says:

“There are considerable unknowns—because key features of the regime will be defined later in secondary legislation or statutory guidance. The analysis of the regime’s impact is also based on historical data when UK public authorities had to comply with the EU State aid regime.”

The impact assessment also says:

“We should expect the behaviour of public authorities”—

perhaps the Secretary of State was alluding to this when he talked about culture change— “and the resulting distribution of subsidies to change under the new regime—although it is not possible to forecast how this will change.”

We are yet to hear how the Government plan to define categories such as subsidies “of interest” and “of particular interest”—categories that will determine which subsidies are voluntarily or mandatorily referred to the Competition and Markets Authority. Such definitions are to be determined not now, but through secondary legislation, in respect of which Parliament is given less opportunity to scrutinise the Government’s decisions. To aid scrutiny, which I believe the Secretary of State will want to be to the standards we would want in this House for a regime that will stand the test of time, he should set out the timeline for consultation on and the publication of secondary legislation that covers critical aspects of the new system.

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[Seema Malhotra]

The right hon. Member makes an important point. I will make some points in that regard later in my remarks.

As I was saying, on the evidence of the legislation it appears that the Government have not reflected in the Bill a true four-nations approach in order that we have a UK-wide subsidy regime that commands the confidence and support of all parts of the UK. We do not contest that subsidy control is a reserved matter, but we recognise and support the requirement on public authorities to consider the impact of a subsidy on competition or investment within the UK. It is important for the Secretary of State to make it clear to the House why there is such a limited role for the devolved Administrations in the development of this new regime. They are not even required to be consulted beforehand on advice given by the Secretary of State on the implementation of subsidies.

Under the legislation, the Competition and Markets Authority’s new subsidy advice unit will play an important role in protecting the UK’s internal market, yet the Bill provides no formal role for the devolved Administrations in appointing members to the new unit. Remarkably, the Bill is even less generous than the United Kingdom Internal Market Act 2020, which at least requires the Secretary of State to seek the consent of the devolved Administrations before making an appointment to the Office for the Internal Market. Can the Government not see how this flies in the face of a four-nations approach?

It is imperative that the devolved Administrations be involved in the development of secondary legislation and in the amendments to the Bill. Even more worryingly, the powers given to the Secretary of State and First Ministers are significantly asymmetric. Although the Secretary of State is explicitly able to challenge Scottish, Welsh and Northern Irish subsidies that may damage English interests, no complementary power is given to First Ministers. Unlike the Secretary of State, the devolved Administrations seem unlikely to be able to challenge English subsidies that may be perceived to be causing harm to Scottish, Welsh and Northern Irish interests. Will the Secretary of State clarify whether this is correct, or is it his intention that First Ministers would be considered as interested parties for the purposes—

[Dame Andrea Leadsom]

Will the hon. Lady give way?

[Seema Malhotra]

I have given way to the right hon. Lady already and I hope she will not mind if I continue my remarks.

Will the Secretary of State clarify whether it is the Government’s intention that First Ministers, or public interest groups, be considered interested parties for the purposes of being able to bring forward a challenge to a subsidy decision—if so, why will the Government not put that in the Bill?—or will a challenge have to be made via the Secretary of State?

This is not where the devolution challenges end. Perhaps the Secretary of State could clarify his remarks on Northern Ireland, because, as I understand it, under article 10 of the Northern Ireland protocol, EU state aid rules must apply to subsidies that affect trade between Northern Ireland and the EU. This affects not only subsidies granted in Northern Ireland but subsidies granted throughout the UK. There is a risk—unless the Secretary of State wants to correct me—that article 10, taken alongside the new subsidy regime, could cause legal or practical difficulties, particularly if the UK and EU disagree on what affects EU-Northern Ireland trade.

UK Gas Market

Andrea Leadsom Excerpts

Monday 20th September 2021 Commons Chamber

[Kwasi Kwarteng]

I find it extraordinary that the hon. Gentleman is still re-litigating the so-called Brexit wars. This is a serious issue, and it is not the time to re-fight the battles of five years ago.

I am fully conscious of the outstanding contribution of hydroelectric power. In fact, I was just speaking to the Norwegian Minister, and that country has 96% of its electricity derived from hydropower. The geography of our country means that we cannot reach that level, but I have absolutely asked officials to look into it, and the hon. Gentleman will know, given my record both as Energy Minister and as Secretary of State, that I am a very keen supporter of renewable energy. As I have always said, and as I said to the right hon. Member for Doncaster North (Edward Miliband), the Government’s focus on safety, consideration and protecting vulnerable customers is absolute.

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

My right hon. Friend is absolutely right to reassure consumers that energy security in the UK is safe, but does he agree that, as we transition away from fossil fuels towards renewables, we need to move urgently towards far greater electricity market reform? We urgently need an independent system operator, and we need much more local generation and local energy pricing to encourage consumers to use plentiful wind and solar energy, when they are being generated, for their optional energy use.

[Kwasi Kwarteng]

I thank my right hon. Friend very much. I remind the House that when I was appointed as Energy Minister, she was the Secretary of State in the Department, and she pushed a great deal of reform and innovation in this area. I reassure her that conversations about an independent system operator and how we can modernise the way we balance the electricity system are happening all the time, and I would be very open to hearing her suggestions about how we can bring that about. I think that energy security in this country, thanks in part to her efforts when she held the post I currently hold, is good. We have a diversity of supply, we have considered a wide range of renewables, and in fact we are pioneering and leading the world in the development of renewable technology.

Oral Answers to Questions

Andrea Leadsom Excerpts

Tuesday 23rd March 2021 Commons Chamber

[Paul Scully]

I speak to DWP Ministers all the time about how to create jobs for women and for all people in the UK. We had record jobs creation after the last recession. Equally, we are planning to grow and bounce back.

[Andrea Leadsom (South Northamptonshire) (Con)]

May I urge my friends in BEIS to think again about weddings? It is simply not logical and not fair that where venue organisers can arrange safe social distancing we continue to deny young couples who are seeking to marry that vital opportunity to have friends and family around them.

[Paul Scully]

I can guarantee I think of little else at the moment, because of the way my right hon. Friend and her colleagues in the weddings taskforce have pressed that very just cause. In stage 2, wedding ceremonies in churches, register offices, dedicated wedding venues and other premises that can open will be able to take place with up to 15 people indoors and receptions outdoors. We are looking forward to expanding that in stage 3, and the events programme will conduct research to ensure that we can have non-socially distanced events and larger weddings post June.