Illegal Migration Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage
Monday 5th June 2023 Lords Chamber

[Lord Alton of Liverpool (CB)]

My Lords, I support the amendments proposed by my noble friend Lady Meacher, my noble and learned friend Lady Butler-Sloss, the noble Baroness, Lady Hamwee, and the noble Lord, Lord Dubs. I begin by referring to a meeting that my noble friend Lord Singh and I held with Dame Rachel de Souza, the Children’s Commissioner, quite recently. She had personally seen children coming off the boats. The Refugee Council found that, of the 45,000 people who made the journey in 2022, some 8,700 were children—one in five of the overall number. In response to the questions put by the noble Baroness, Lady Lister, perhaps the Minister could confirm the numbers.

Dame Rachel has also visited the accommodation in which many of these children are placed. I would like to ask the Minister a number of questions. When the Children’s Commissioner was consulted, was she consulted about this Bill? How did she respond? How does he respond to her view that the Bill drives a “coach and horses” through the Children Act 1989?

The position of children should certainly concentrate our minds. My noble and learned friend perhaps knows better than anyone in this House, as a former head of the Family Law Division, how important it is that we have proper cognisance of the effects of law on children. I asked Dame Rachel about the origins and stories of some of the children whom she had met, to which my noble and learned friend referred as well. Some had travelled from Sudan, Eritrea, Afghanistan and Iran; some had taken journeys that lasted a whole year; some had been left as orphans; and some had been traumatised by war. Many told horrific stories. For instance, she described the story of an Iranian boy who watched his parents being killed and who made the long and arduous journey here to safety. She also referred to a Down’s syndrome child left on their own. She said that decisions about their treatment and future were being taken by inappropriately low-ranking officials who had “no understanding of safeguarding”. Will the Minister urgently look into this question about whether safeguarding criteria are different from the safeguarding used in children’s homes? Are the provisions in the Bill compliant with the duties contained in the education Acts, and are they Gillick compliant? Does the Minister recognise the Children’s Commissioner’s description of the Bill as a “traffickers’ charter”?

No child should be assumed to be an adult—a point made very well a moment ago by the noble Baroness, Lady Hamwee. There is no cliff edge. There seems to be an assumption woven into the web and weave of this Bill that there is a magic moment when you cease to be a child and become an adult. The position of children should certainly be put into the impact assessment, which we all wait to see with great anticipation. But it is not simply an impact assessment that has been missing from the legislative scrutiny to which I referred earlier. Only one Select Committee—the Joint Committee on Human Rights, of which I am a member—has had the chance to scrutinise this Bill, and it has had to do so at a crazy pace, with many of our meetings clashing with the Bill’s proceedings. All being well, it will reach its final iteration tomorrow—not, I am glad to say, “in due course”. This is simply no way to make legislation. When we legislate in haste, we end up repenting at leisure.

At Second Reading, I referred to my misgivings about a number of aspects of the Bill, and among these was the treatment of children: the subject of these amendments. They are affected by every aspect of the Bill, which clearly infringes the rights of children set out in the United Nations Convention on the Rights of the Child, referred to by my noble friend Lord Hannay.

The Home Office says, as its justification for doing this, that it is protecting the best interests of children by seeking to deter them and the adults accompanying them from embarking on these journeys in the first place. This is a straw man argument. It relies on the assumption that the child or adult knew in advance how dangerous the journey would be and assumes that, in any event, the journey would be less dangerous than, say, staying in Sudan, where millions are now displaced; or think of the plight of women in Iran; or think of those in Nigeria who are facing execution because of their beliefs or orientation, or facing genocidal attacks from Boko Haram. The UN Convention on the Rights of the Child does not revolve around such calculations.

The desire for deterrence cannot negate or supplant the duty of the UK and this Government to protect all children—every child, whatever their origins—within our jurisdiction. How a country treats its children is a mark of whether that country deserves to describe itself as civilised. How do convention duties square with indefinite detention in whatever place the Secretary of State and her officials deem appropriate and for however long she decides is reasonably necessary before she maybe decides that they should be cast out? How can our convention rights be squared with dispatching children to far-flung places without any true idea of what circumstances will await them there? Who will verify that appropriateness? What will be the criteria? How will such assessments be undertaken?

Too many of the Bill’s provisions relating to children are vague and insufficiently rigorous. The Bill puts on to a statutory footing the provision of accommodation for unaccompanied children, but then fails to define what form such accommodation must consist of. It is as if we have learned nothing from the endless ordeals of children in institutional care. I repeat: why is Home Office accommodation not being made subject to the duties set out in the Children Act 1989? Why are standards or requirements not set out in the Bill itself? I ask this against a backdrop of the Home Office accommodating unaccompanied asylum-seeking children in hostels since 2021. Can the Minister remind us how many of those children have gone missing? How many remain missing? How can the Minister justify the provisions to take a child from local authority accommodation, which is subject to the 1989 Act, and put them into Home Office accommodation, which is not? There are also convention implications from age assessment, not least invasive body searches of children who may have undergone trauma or have been subjected to abuse. Is that Gillick compliant?

We should be clear that these and other provisions mean that the Bill is likely to fall short of compliance with the UN Convention on the Rights of the Child. It is also likely to fall short under Article 8 of the European Convention on Human Rights, and potentially Article 3, which deals with prohibition of torture, inhumane and degrading treatment. Has the Minister also considered Article 22 of the convention and any use of powers to remove a child without first considering their asylum claim? These are crucial questions; if they cannot be resolved here in Committee, they will certainly have to be resolved when we reach Report. I hope the Minister will be able to give the Committee the courtesy of a reply to some of these questions today.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise with some hesitation after so many speeches—such powerful speeches—from every corner of your Lordships’ House. Having attached my name, however, to two amendments here—Amendment 17, in the name of the noble and learned Baroness, Lady Butler-Sloss, and Amendment 27, in the name of the noble Baroness, Lady Hamwee—I will make two points.

First, I very much agree with the noble Baroness, Lady Meacher, that no children who arrive as refugees should be covered by this Bill—indeed, no one should be covered by this Bill—but there is a special case to be made for unaccompanied children who have no adult with them to support them. I invite Members of your Lordships’ House to consider what it would be like if, tomorrow, you were dropped into a foreign country where you do not speak the language—or speak it very imperfectly—you have no resources and you know nobody. While you have decades of life experience, think how difficult it would be to cope. Then imagine what it would be like for an 18 year-old who has known only a life of war, torture and suffering; who thought they had found safety but then were thrown out again.

Secondly, I want to pick up a point that the Minister made in the previous group. He suggested that this Bill was the result of an emergency situation that had suddenly arisen overnight and that this was the excuse for why we did not have an impact assessment. Of course, what we have is a situation that has been developing over a decade or more. We saw people seeking to come across the channel, including—since we are focusing on the many unaccompanied children—people getting underneath the axels into sealed lorries or under trains and, all too often, dying as a result.

I am going to go back to 2016—seven years ago—when I went to a memorial service for one of those people, a 15 year-old called Masud. He was an Afghan who died in the back of a lorry trying to get to the UK to be with his sister. This picks up the point made by the noble Lord, Lord Kerr, about the lack of means for such children to get here legally. Masud should have been able to get here, but he could not. He took his chances and he died. Had he made it, think about where he would be now. Masud, as a 15 year-old, would have had three years—or maybe more—in our education system. He would have been part of our society and contributing. Imagine, however, a Masud who arrives here after this Bill comes into operation—this picks up a point made by the noble Baroness, Lady Hamwee, among others. What is Masud going to do just before his 18th birthday? What would any of us do? He is going to have to go into the black economy or the grey economy, which we know our hostile economy has thrust so many people into already: into the illegal car washes or into the illegal marijuana farms, where recently we saw four Vietnamese men, almost certainly victims of modern slavery, die in horrific conditions. Thrust into the gig economy—there has recently been coverage about this—you can rent an identity to be a delivery driver for a night, all under the carpet and all open to abuse and exploitation. Is that what we really want to do to children? Is that what we really want to do to our society: to make a society in which that segment of it grows and grows? As others have said, there is no way that the Government are going to be able to make the removals that they say they are seeking to do.

Net Migration Figures

Baroness Bennett of Manor Castle Excerpts

Thursday 25th May 2023 Lords Chamber

[Lord Murray of Blidworth (Con)]

I agree with some of what my noble friend has said. There is a measure of agreement across the House that the issue of salary discounts is very much in need of consideration. Of course, as the House will be aware, the Migration Advisory Committee is undertaking its review into the shortage occupation list, which I referred to a few answers ago. The Government asked the MAC to consider the 20% salary discount as part of the review when it commissioned it last year. We expect a report in the autumn, after which the Government will respond to any recommendations that it makes.

[Baroness Bennett of Manor Castle (GP)]

My Lords, in the migration figures out this morning, the figures for the asylum backlog—the number of people who have been waiting more than six months for an asylum decision—show that, despite the promise from the Prime Minister to eliminate much of the backlog by the end of this year, the figure has increased by 10,000. There are now more than 128,000 people waiting more than six months for an asylum decision. Would the Minister promise the House that the Prime Minister’s pledge will be met by the end of this year, given that we are now at the end of May? Surely it is time to allow those people to work—indeed, some of them could be working in the hotel to which the noble Lord, Lord Bilimoria, referred.

[Lord Murray of Blidworth (Con)]

As the noble Baroness knows, the Government are taking immediate action to eliminate the backlog of people waiting for initial asylum decisions by the end of 2023. The Home Office has already doubled the number of decision-makers and the number will double again. To further accelerate decision-making, the Home Office is driving productivity improvements by simplifying and modernising the system. We have doubled the number of decision-makers in 2021-22, as I said, and we will continue to do so.

Illegal Migration Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage
Wednesday 24th May 2023 Lords Chamber

[Baroness Lawlor]

I think the noble Lord is not aware of the very good access to news which people coming to this country have—and which people traffickers have. It was no surprise that this Bill had its First Reading on 7 March.

I conclude on a point made earlier. This is not a Bill against asylum seekers; it is a measure to deter and prevent those coming to this country by unsafe and unlawful routes.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I will go where I was going without being distracted. I am aware that there is no Green group name on any of these amendments, which is the result of an administrative hitch earlier in the week, so I will be very brief—I am also aware of the hour. I shall make just three points about this group of amendments.

First, we have discussed the issue of retrospectivity a great deal. I align myself with the comments of the noble Baroness, Lady Chakrabarti, among many others, who talked about approaching this as a lay person, which indeed I do as a non-lawyer. However, I have had a lot of contact with the law through my time as a journalist, and one of the things you learn is that the nature of the law is that they do not make laws retrospectively. That is in the general public understanding of what is law, so I associate myself with all the anti-retrospectivity amendments.

However, I particularly want to address Amendment 91, to which there has not been much attention given, which aims to prevent victims of human trafficking and modern slavery from having their leave retrospectively revoked to permit their deportation. This is leave granted to people under the Nationality and Borders Act 2022. I am sure many noble Lords taking part in this debate can think of victims of trafficking and modern slavery whom they have met. I am thinking of one in particular, whom I will not identify in detail. She was a person who had clearly been enormously mentally scarred by the experience of losing control of her own life and being a slave. To think that we would put them in this position again, having granted them status and then snatched it away, highlights the emotional damage that that would do to people.

Secondly, my favoured position is to write out this whole Bill but, if we do not do that, then that Clause 2 should not stand part. The noble Baroness, Lady Lister, made a powerful speech on this point. I want to raise a point no one else has raised. I ask the Minister to answer, although I expect he will be reluctant to, so maybe some of the other legal minds in the Committee can be put to this. Let us imagine that, after the next election, we have a change of government, and there has been written into law a duty for the Secretary of State to deport people. There is going to have to be an emergency Bill passed as soon as possible to stop that. I very much hope that would be the case for whoever the next the Government are. But there is going to be a total legal mess, I would imagine, when the people of the country have elected a Government standing on a different platform—I would hope—but that is the law of the land. I am not sure where that would leave us; I do not know if anyone could help me with that one.

I also want to address why the duties to remove in Clause 2 should not remain. Some 90% of the people in need of international protection who come to the UK could not do so directly as defined by this Bill. The refugee convention prohibits states from imposing penalties on refugees for how they have entered the country, because most people have no choice but to enter a country irregularly. The convention explicitly states that you do not have to come directly to the country; there is no requirement of “first safe country”. That is the convention, yet we are writing this piece of this Bill. This clause simply must not stand part.

Thirdly, I want to identify particularly with Amendment 8. The noble Lord, Lord Cashman, and the noble and learned Lord, Lord Etherton, have already made this argument very powerfully. All I want to say is that my Second Reading speech addressed this issue at some length, and I would like to stress the Greens’ support for Amendment 8 in particular.

[Lord German (LD)]

My Lords, there are two matters in this group that are in my name, but I shall address just one of them briefly—the other matters having been covered by earlier speakers—and that is the issue about coming directly to the United Kingdom.

The UNHCR, in its legal opinion, says that the vast majority of people in need of international protection will meet those criteria of not being able to come directly to the UK. Almost 90% of people in need of international protection globally come from countries where it is impossible to come directly to the UK—there are no direct flights, nowhere to get a visa, nowhere to make any of the paper arrangements we have set up. We will come to the issue of safe routes later, but the question I have to ask relates to the role of the UNHCR in supporting those who are in need of protection.

Apart from the one relating to Afghanistan, the UNHCR states that there are only two active legal resettlement schemes in the UK. The first is the UKRS, which is the UK resettlement scheme. Since 2020, the UNHCR

“has been requested by the Government not to submit new cases other than in extremely compelling circumstances and on an ad-hoc basis, amounting to a handful per year”.

The second one is the mandate resettlement programme, which provides a pathway for refugees:

“An average of fewer than 25 people a year come to the UK on this route. … they must be identified and referred by UNHCR in accordance with criteria agreed upon with the receiving State”.


So, essentially, the UNHCR has been told that it can have probably about 25 and perhaps five or six more. That is the total—apart from the Afghani stream—from the resettlement schemes that are open. In his reply, perhaps the Minister could tell us how people can get to the UK directly from the places from which they are seeking refuge, and also how these people can be filtered so that only the 30 or so people who can currently come per year will be accommodated.

--- Later in debate ---

[Baroness Ludford (LD)]

Sorry—I will look and check that it covers the point.

[Baroness Bennett of Manor Castle (GP)]

The Minister, not to my surprise, did not address my question about what happens after the election. I will phrase the question another way. In your Lordships’ House, we often ask about “must” and “may” provisions. Rather than a duty to remove, surely the Government could make it that the Secretary of State “may” remove. That would allow this Government to act as they wish but would not attempt to tie the hands of any future Government.

[Lord Murray of Blidworth (Con)]

I am afraid the structure of the Bill is that it creates a duty on the Secretary of State. That is in order to send the deterrence message that entering the country illegally is unacceptable and to reduce the number of people crossing the channel. I am afraid to say that it is a logical step that if the Government were to change, then it would be open to that other Government to pass legislation of their own. That is democracy.

Economic Crime and Corporate Transparency Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage
Thursday 11th May 2023 Grand Committee

If there is going to be a register—and it is quite possible that there will be one as far as I can see for investment zones—for a whole variety of purposes, that register should be in the public domain as well, pursuing the underlying principle that has been established so long in the UK: that sunlight, transparency and the capacity of the public to see through are critical pillars of cleaning up transactions and our economy. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I apologise to the noble Baroness, Lady Kramer, because I would certainly have attached my name to these two amendments had I been able to get my head sufficiently above the parapet in the face of the barrage of legislation that your Lordships’ House currently faces. They are terribly important amendments, as was highlighted yesterday in the other place in Prime Minister’s Questions, when the Prime Minister in response to a question about what is happening on Teesside said:

“Contracts at the site will be a commercial matter for the companies involved”.—[Official Report, Commons, 10/5/23; col. 334.]


There is great public concern about what is happening on Teesside, and it is at the moment extremely opaque.

I shall concentrate mostly on freeports, because, as the noble Baroness said, investment zones are such a “fluffy” area that is very hard to grasp on to it. As to what we know about freeports and what is happening, a lot of the questions are being asked by the independent media and the civil society organisations referred to by the noble Baroness. I would point anyone who is interested to an excellent, 44-page report from the Byelines Network that was put out by local journalists from around the country in areas directly affected. It does a great job of examining some of the issues, but butting up again and again against commercial confidentiality and lack of recording. One of those reports notes that in 2020, the Royal United Services Institute Centre for Financial Crime and Security Studies submitted evidence to the International Trade Committee saying that

“there is evidence of criminal activity taking place in multiple freeports around the world. It often involves trade in counterfeit goods, drug trafficking, smuggling of untaxed goods or trade-based money laundering”.

If we were to think of something that is essential to the purposes of the economic crime Bill now before us, shining the light, opening the doors and being able to see what is happening would clearly be it. What we are talking about with freeports are huge concessions from the Government. As the noble Baroness, Lady Kramer, said, they include freedom from all kinds of usual customs controls, but also stamp duty land tax relief, enhanced structures and building allowance, enhanced capital allowances, employer national insurance contributions relief, and business rates relief and retention. Those are huge concessions. Surely it would only be absolutely fair and reasonable to demand full transparency about who is responsible and who is making those decisions.

It is very evident that there is great public concern. This is one way that the Bill or some other mechanism—I directly put the question, “If not this Bill, where else?”, to the Minister—will make sure of what will happen if we create these structures. The reason why people are so suspicious about this seems to go back to an uncredited blog from 2010 on the website of a right-wing lobbying group, the TaxPayers’ Alliance, which raised the idea of charter cities. People are very suspicious. Surely the Government would want to dispel some of those suspicions by ensuring that there is absolute transparency and openness.

[Lord Agnew of Oulton (Con)]

My Lords, I rise because I hope that I might be able to provide some help to my noble friend the Minister, as this is obviously not his area of expertise; this is at the Companies House end.

Right at the beginning of Committee, I tabled Amendment 44. Its explanatory statement says:

“This amendment mandates companies to disclose whether their shareholders are acting as nominees. Nominee shareholders protect the identity of the beneficiary of the shareholding. This measure will help mitigate the risk of abuse through nominee shareholders. Failure to comply would incur a penalty”.


Last night, I met the Minister, my noble friend Lord Johnson, who indicated to me that the Government were sympathetic to this approach. I do not want to put words into his mouth, as he is not here now, but I suggest to the Minister, my noble friend Lord Sharpe, that he talks to my noble friend Lord Johnson to see whether there is any way that we could look at this; that would deal with the specific concern raised by the noble Baroness, Lady Kramer, in relation to freeports.

Economic Crime and Corporate Transparency Bill

Baroness Bennett of Manor Castle Excerpts

Committee stage
Tuesday 9th May 2023 Grand Committee

[Lord Fox (LD)]

My Lords, this is a mixed set of amendments. I do not think that we will debate the philosophy of what a fact is, although we may come back to that in a few minutes. I rise to move Amendment 102 on behalf of my noble friend Lord Wallace and to speak to both an amendment in my name and a series of amendments in the name of the noble Lord, Lord Coaker.

Amendment 102 refers to tier 1 investor visas, otherwise known as golden visas. As I am sure the Minister will jump up and tell me, the scheme was closed relatively recently, but that is not the point of this amendment. We know that the scheme allowed individuals with a high net worth into the UK through the investment of large sums. We also know that, during its operation, it became increasingly clear that there was abuse, or the possibility of abuse. Visa beneficiaries under the scheme largely came from Russia, former USSR states and China, more so than from any other third country. It must have been clear to the Home Office and others that the sources of the wealth of many of these applicants were dubious at best.

The scheme was closed in February 2022. When it closed, the Government promised a review into so-called golden visas, because they were clearly an issue and something that needed to be reviewed so that we could find out what went wrong and ensure that future decisions did not make similar mistakes. It was, therefore, an object of some despair when, instead of publishing the findings of the review in full, the Home Secretary published a Written Statement in January this year with a summary of the review’s findings. The Statement told us what we already knew, in fact, but not much more. The scheme had been used by individuals who were, to quote the Statement,

“at high risk of having obtained wealth through corruption or other illicit financial activity, and/or being engaged in serious and organised crime”.

It also told us that this concerned a

“small minority of individuals”

who had obtained visas under the tier 1 investor route but gave no indication of the actual figures on where a risk had been identified. More than 6,000 visa holders were reviewed. What is a “small minority” of 6,000? How many were at risk?

We also know that 10 oligarchs who had been sanctioned as part of the response to Russian aggression in Ukraine used this scheme. How many more applicants with ties to Putin have been given visas that allowed them to embed themselves in the UK economy and UK society? Are any still in the UK? If so, have they gone through the process of acquiring citizenship? The Statement answered none of these questions.

This amendment would require the findings of the review, where they relate to economic crime, to be published in full. It is a review of a scheme that, according to the Home Office, attracted a disproportionate number of applicants from the countries identified as being particularly relevant to cross-border money-laundering risks faced and posed by the UK. As I said, the scheme benefited Russian and Chinese oligarchs above all. Key questions remain unanswered. Parliament needs to know what went wrong so that we can hold the Government to account in future. We are entitled to know more about what the Home Office conducted in this review and the impetus that it gave to various other elements of what we are seeing now. In other words, has anything learned from the review seen its way into the legislation that we are now talking about? If not, why not?

The refusal to publish either this report or the fuller details of Russian penetration into British politics, which the ISC recommended should be published, makes it difficult not to conclude that the Conservative Government have some significant and embarrassing issues to hide, most probably around donations to the party. If the Minister has nothing to hide, I am sure that he will be able to announce the publication of these reports.

As I said, I also want to speak to Amendment 104 in my name, which has, to some extent, a similar motive to the three amendments proposed by the noble Lord, Lord Coaker. Without putting words in the noble Lord’s mouth, I suspect that, like me, he is an enforcement sceptic. He is sceptical not about the need for enforcement but that sufficient enforcement will support the legislation we have spent all this time debating. My amendment is one way of trying to expose the resources and the effect that they are having. I am sure that the Minister will step forward and tell us that the NCA publishes an annual plan but Amendment 104, particularly subsection (3) of its proposed new clause, sets out a rather different set of things that we would need to know but which are not currently included in the annual plan published by the NCA.

I am quite happy to support other ways of doing this, which the noble Lord, Lord Coaker, is probing, but, at the heart of this, Parliament needs to know how effective enforcement is and that the primary agency running the enforcement process has the resources it needs in order to meet the challenges that it faces. Those challenges are getting bigger, harder and more sophisticated every day. This is one way of exposing whether the resources are sufficient and what Parliament needs to worry about in future in terms of delivering support to agencies so that they can actually enforce these things. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I have attached my name to Amendment 102 in the name of the noble Lord, Lord Wallace of Saltaire. I begin by quoting the noble Lord, Lord Evans of Weardale, who chairs of the Committee on Standards in Public Life. Speaking in this Room last year, he said that

“we have clearly, as a matter of policy, turned a blind eye to the perpetrators of corruption overseas using London for business or leisure purposes”.—[Official Report, 13/10/22; col. GC 156.]

The golden visa scheme was clearly a significant part of that issue, as highlighted by the noble Lord.

I begin by paying great tribute to the noble Lord, Lord Wallace of Saltaire, who has been an absolute terrier—no, that sounds too small. A bulldog is better.

[A noble Lord]

A Yorkshire terrier.

[Baroness Bennett of Manor Castle (GP)]

We will not get into that one. The noble Lord, Lord Wallace, has been an absolute bulldog in pursuing this issue over a number of years. The reason why I chose to attach my name to this amendment is that I worked with the noble Lord on this issue, during my modest role in what became the Financial Services Act 2021. As the noble Lord, Lord Fox, outlined so clearly, we must be able to diagnose the illness fully if we are to find the medicine we need to deal with it. At the moment, we are not being allowed to see that diagnosis; we are getting a very rough, top-line kind of summary.

As the noble Lord, Lord Fox, said, we know that more than half of the visas issued—some 6,000—were being reviewed in 2022 for possible national security risks. Being told about a small minority does not get us anywhere near where we need to go. We are looking at this particularly in the context of the Russian attack on Ukraine and the current geopolitical situation. More than 200 Russian millionaires bought their way into the UK in the seven years after the scheme was supposedly tightened, before it was finally closed. We have to look at that with respect to security issues as well; we are talking about economic crime here but economic crime and security are surely interrelated. We need to know about those issues.

This amendment deals only with the review relating to economic crime. I am sure that that is because the Bill Office said that anything broader would be out of scope—I have no doubt about that—but it is worth putting on the record that, to learn lessons for the future, we need to assess the impact of the scheme much more broadly. I do not know whether the Home Office report looked at this—I cannot see it—but it would be interesting to see what impact it has had on our current housing crisis and on house prices; surely it has had an impact.

It is also worth highlighting the broader impact of entrenching wealth-based and racialised inequality in the UK. Take the contrast between the 250 family members and dependents of the Russian millionaires who came in versus the fact that so many British people are unable to live in their own country with their foreign spouse or partner because they do not earn enough money to be able to do so. That contrast is really shocking; we should be looking at the impacts of that on our society. These golden visas were a disaster. We can only understand that disaster and seek to deal with its effects if we are open about the Government’s own report.

[Lord Coaker (Lab)]

My Lords, I support much of what the noble Baroness, Lady Bennett, and the noble Lord, Lord Fox, have said. In speaking to my amendments in this group, I start by welcoming the publication of the fraud strategy last week. I know that the Minister has been pushing for it to be published as speedily as possible; its publication is helpful to the Committee.

The fundamental question behind much of what I am going to say is this: how will the fraud strategy published last week answer some of the problems that have been raised—indeed, that I will raise? My Amendments 106B, 106EA and 106EB are clearly probing amendments but they have at their heart the question posed by the noble Lord, Lord Fox: how will the Government bring together all this legislation, statutory instruments, enforcement papers, reforms of Companies House and so on? How is all of that in the landscape of government being brought together, co-ordinated and made effective? It is not an easy question to answer but, looking at all these things, they seem cluttered, to say the least. Even with this Bill, things are cluttered. Some sort of review or report to Parliament to try to do something about that would be helpful. Does the fraud strategy do that? How will the strategy report to Parliament to see whether it has been successful or not?

--- Later in debate ---

[Lord Sharpe of Epsom (Con)]

My Lords, I thank all noble Lords, who have made some extremely thought-provoking points in this debate. I will do my best to address them all.

Scrutinising the activity of government is obviously a key function of Parliament, and of course the Government are entirely supportive of it. I reassure the noble Lord, Lord Browne, that this particular part of the government machinery is always grateful for any help that is offered and will receive it in that spirit. However, the amendments in this group are unnecessary, as they are duplicative of existing reporting arrangements and scrutiny structures.

On investor visas, I take my noble friend Lord Leigh’s points. If done in the right way, they are potentially an important engine of economic growth—that should be acknowledged. Of course, we should not forget that they were introduced by a Labour Government and maintained during the coalition years. However, on Amendment 102, tabled by the noble Lord, Lord Wallace of Saltaire, and moved by the noble Lord, Lord Fox, I am aware that there are concerns about how the now-closed tier 1 investor route operated—in particular, that it was used by those relying on funds that had been illegitimately acquired and those who may have posed a wider risk to the UK’s national security.

It was because of those concerns that the Government committed in the first place to the review of the visas issued under the route between 2008 and 2015. As has been acknowledged, the Home Secretary made a Written Ministerial Statement on 12 January setting out the findings of that review. This included that the review had identified a minority of individuals connected to the tier 1 investor visa route who were potentially at high risk of having obtained wealth through corruption or other illicit financial activity or being engaged in serious and organised crime. The Statement of 12 January represents the Government’s substantive response to the commitment to undertake a review and publish its findings, including its findings in respect of economic crime.

Obviously, there was a delay; we are aware that considerable time elapsed between the commissioning of the review and the setting out of those findings. However, delay is regrettable but not unreasonable when issues of national security are at stake. Let me expand on that a little, if I may. It would have been preferable had the review been able to include more information about specific individuals but we have had to act sensibly and responsibly with regard to the UK’s national security; this includes striking the right balance between setting out the review’s broad findings and observing the constraints on disclosing sensitive details, which must be withheld, at the request of our operational partners, to protect our border and the vital work of our law enforcement agencies.

The noble Lord, Lord Fox, raised the subject of party-political donations. Without getting into a slanging match on this subject, I think it is worth restating that UK electoral law already sets out a stringent regime of spending and donation controls that prioritise transparency and safeguard the integrity of our elections. All political parties recognise that third-party campaigners and candidates must record their election spending and report it to either the Electoral Commission or their local returning officer. This information is all publicly available. The measures in the Elections Act 2022 also updated the political finance regulatory framework by increasing transparency and fairness and strengthening the controls against ineligible foreign spending on electoral campaigning. That is a fairly comprehensive transparency regime concerning the funding of political parties.

The House has considered similar amendments to other legislation, most recently during the passage of the National Security Bill. As before, the Government’s view is that this amendment is not necessary. The Government have set out the key findings of the review of the operation of this route and have acted to close it. I therefore ask the noble Lord, Lord Fox, to withdraw the amendment.

[Baroness Bennett of Manor Castle (GP)]

My Lords, the Minister suggested that it was the inability to identify individuals that meant that some aspects of the report could not be released. I think that everyone understands the retraction of names where necessary, but surely that would not prevent the release of absolute figures rather than a summary of the figures.

[Lord Sharpe of Epsom (Con)]

As I said, it was also to do with the disclosure of sensitive details related to operational partners—the sorts of things that protect our border and the work of law enforcement agencies.

I thank the noble Lord, Lord Fox, for tabling Amendment 104, to which I will now speak. The impact of fraud and economic crime affects the whole of our society. The cost of fraud to the UK runs into the billions and is assessed by the National Crime Agency to be the most common crime type in England and Wales. We take this threat type seriously and have delivered a strengthened approach to reduce its impact. Obviously, as I referenced, the fraud strategy is one part of that; I will come back to it in a moment. The NCA currently leads the national response to serious and organised crime, including economic crime. As predicted, the NCA’s director-general is accountable to the Home Secretary and, through the Home Secretary, to Parliament.

The agency already publishes an annual plan and an annual report. The annual plan sets out how it intends to exercise its functions in co-ordinating the operational response to serious and organised crime, having regard to the Home Secretary’s strategic priorities and the director-general’s operational priorities. The annual report details its performance over the previous financial year, including efforts to tackle economic crime. The NCA also reports annually on the impact of suspicious activity reports in tackling economic crime and, as I set out earlier in response to Amendments 93 and 95 in the previous group, in respect of UWOs. Given this current reporting and the potential for duplication, the Government do not believe that this amendment is required at this time, so I ask the noble Lord, Lord Fox, not to press it.

I thank the noble Lord, Lord Coaker, for his Amendment 106B. Before I get into the amendment itself, let me say that I take the noble Lord’s points about the diversity of response to the sorts of crime that are being discussed. Of course, that partly reflects the diversity of the crimes being investigated, as he will be aware. The fact is that this is a fast-moving, rapidly evolving space; there is no doubt that the operational response to it reflects that particular set of circumstances.

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[Lord Oates (LD)]

My Lords, on behalf of the noble Lord, Lord Hain, who cannot be in the Committee today, I rise to move Amendment 103 in his name, my name and those of the noble Baronesses, Lady Wheatcroft and Lady Altmann. In doing so, I pay tribute to his tireless efforts in exposing corruption, particularly the key role he played in bringing the kleptocracy of former South African president Jacob Zuma to the world’s attention.

This amendment would require the UK Government to begin negotiations for the establishment of an international anti-corruption court, or IACC, within six months of the passing of this Bill. International corruption is estimated to cost $2 trillion, or 5% of global GDP, every year. In a 2021 report, the UN High-level Panel on International Financial Accountability, Transparency and Integrity calculated that as much as 2.7% of global GDP is laundered by criminals through illicit global financial flows. While these opaque transactions occur in all countries, they have a much heavier impact on low and middle-income countries. The Washington-based organisation Global Financial Integrity found in its most recent report that from 2004 to 2013 developing and emerging economies lost $7.8 trillion in illicit financial flows—around 10 times more than the entire sum of foreign aid, including aid from the UK, that they received over the same period. Illicit outflows are increasing rapidly at an average rate of 6.5% per year, nearly twice as fast as global GDP.

A substantial proportion of that corruption comprises theft by a nation’s leaders of state funds for their own use—in other words, kleptocracy. Putting an end to that kleptocracy and recovering assets stolen by corrupt leaders would enable millions of the poorest in our world to be adequately housed, clothed and fed by helping prevent national treasuries being looted to line the pockets of corrupt politicians and their business cronies.

That so many kleptocrats succeed is not because of a lack of domestic laws; there are 189 parties to the UN Convention against Corruption. Most of them have complied with their obligations under the convention to have appropriate domestic anti-corruption legislation, but to facilitate their criminal activities kleptocrats have gutted their domestic criminal justice systems and taken control of the prosecuting authorities, police and, frequently, courts. There is no better current illustration than President Putin, who with his oligarch accomplices has looted the country.

Another prime example, whom I have mentioned already, is former South African President Jacob Zuma, who with his business cronies the Gupta brothers looted on an industrial scale and deliberately disabled police and prosecutors, so much so that the country was estimated to have lost fully one-fifth of its GDP during his infamous state-captured decade. Across the border in Zimbabwe, the ZANU-PF regime is mired in corruption, which has robbed the Zimbabwean people of what should be a bright economic future. Instead of serving the people, regime leaders, aided by corrupt businesspeople and a prosecutorial and judicial system entirely captured by the ruling party, loot the country at will. Just last week, opposition politician Jacob Ngarivhume was sentenced to four years’ imprisonment simply for calling for peaceful protests against corruption in July 2020.

Few of these kleptocrats keep their ill-gotten gains at home. Billions of dollars of stolen assets are laundered in a number of countries, including China, Hong Kong, Dubai, Singapore, Monaco, Switzerland, some states of the United States, UK overseas territories and, shamefully, London. Recently, the Al Jazeera documentary “Gold Mafia” secretly filmed Zimbabwe officials and business contacts conspiring to launder illicit funds. Those filmed included at least three British citizens—Uebert Angel, Rikki Doolan and Kamlesh Pattni—who made clear on camera their willingness to act corruptly. I know that the Minister cannot comment on those individual cases, but I hope that the National Crime Agency is investigating the activities of these individuals and others named in the documentary and the sources of their wealth, and that the authorities will not hesitate to freeze their funds while these investigations are being pursued.

However, while British authorities can act on crimes committed under UK jurisdiction, there is no international mechanism to prosecute kleptocrats and to seize and return their illicit funds. This gaping vacuum can be filled only by establishing an international anti-corruption court that can hold corrupt leaders and their co-conspirators accountable.

If some of the countries where laundered funds are held would join such a court, the stolen assets could be frozen and then, through orders of restitution, be repatriated to the countries from which they were stolen. If the risk of those funds being misused if returned to a corrupted state are too high, they could be repurposed and repatriated only at a time when they would reach the real victims: the millions in need in those countries.

The envisioned court would have jurisdiction over crimes committed by nationals of an IACC member state and crimes committed on the territory of an IACC member state. It would enforce existing national anti-corruption legislation and would be a complementary new international counterpart to these laws against kleptocrats and their collaborators.

The IACC would be a court of last instance, meaning that it would acquire jurisdiction only in cases in which the appropriate domestic authorities are unable or unwilling to investigate or prosecute the corruption. For the IACC to succeed, it would not be necessary for the countries governed by kleptocrats to join the court—it goes without saying that they would not. The IACC could be established by treaty and quickly become effective if it consisted initially of even a relatively small number of representative states, so long as they included some financial centres and other attractive destinations where kleptocrats frequently launder, hide and spend their stolen assets.

In this way, the IACC would have the potential to prosecute, punish and recover illicit assets from kleptocrats who rule or are very powerful in the countries that might not initially join the court. Most importantly, the threat of criminal prosecution at the IACC would deter other potential crimes of grand corruption by leaders who may otherwise be tempted to emulate the example of the kleptocrats.

The cost of the IACC would constitute a small fraction of the amount of illicit assets that it could seize and return to their originally intended purpose for the public good. In addition to orders of restitution, it could levy funds on those found guilty, which could be used to defray some of the cost of its prosecutions and proceedings.

If the court demonstrates during its early years that it can work effectively and efficiently, many other countries are likely to join it. In the aftermath of kleptocratic government, some developing countries may not have the human and financial resources to fight kleptocracy, so could approach the IACC to come to their assistance. A senior United States federal judge, Mark Wolf, is leading a campaign to establish such a court. Together with others, including the renowned South African jurist Richard Goldstone, he launched a civil society called Integrity Initiatives International. Its main project is to establish the IACC, and it has convened a number of the world’s top international lawyers to begin drafting a treaty for the court. None of its supporters see the court as a panacea that will end the kleptocracy any more than the International Criminal Court has ended illegal or genocidal activity by political leaders. However, it would be one of many tools, domestic and international, that are absolutely essential to combat and, I hope, ultimately defeat kleptocracy.

Almost 300 leading figures from across the world, including 45 former presidents and Prime Ministers and 32 Nobel laureates, have signed a declaration calling for the creation of the IACC. Three Governments—the Netherlands, Canada and Ecuador—have made the establishment of the court an element in their official foreign policy. In January this year, Nigeria became the fourth country to publicly state its commitment to working with other states towards the establishment of the court. Recently, the President of Moldova, Maia Sandu, also committed to joining the emerging coalition of states for the IACC. Additional countries from each region of the world have also expressed their interest in the idea.

The United Kingdom and our legal profession have always led in establishing and participating in international courts of last resort. This started with the ground-breaking Nuremberg trials and went on to include the International Court of Justice and, of course, the International Criminal Court.

The Government’s Integrated Review Refresh, published earlier this year, committed the UK to championing global efforts to ensure that revenues and assets lost to illicit finance are identified and recovered so that low and middle-income countries can self-finance their own development. This commitment was reiterated by the Minister for Development and Africa in his Chatham House speech on 27 April when he said that

“we will bear down on money-laundering and the flows of dirty money which deprive countries of their legitimate tax receipts and represent money stolen particularly from Africa and African people”.

We must live up to these commitments. I therefore urge the Government to accept our amendment and ensure that the UK becomes one of the early and leading supporters of the establishment of the IACC, lending the UK’s weight and expertise to finding the fastest route to the creation of the court and the most effective framework for its operation.

I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I rise with great pleasure to follow the noble Lord, Lord Oates, who made a powerful, persuasive and rich speech. I echo him in paying to the noble Lord, Lord Hain, for all the work he has done in this area.

The noble Lord, Lord Oates, rightly acknowledged that the international anti-corruption court, which I absolutely back—backing for it is clearly growing by the day—is one of many tools that we need to tackle economic crime. My Amendment 106A seeks to put another tool in the toolkit. At the moment, it is perhaps in a prototype stage and is earlier in development than the international anti-corruption court, but it is growing fast and has significant international backing.

I am proposing that the Government should provide leadership in supporting UN General Assembly Resolution 77/244, which was passed on 30 December last year with leadership from Nigeria and the Africa group. It calls on the Secretary-General to prepare a report on how

“to strengthen the inclusiveness and effectiveness of international tax co-operation”.

This has been seen as a step towards a UN convention on the issue and the establishment of international bodies to enforce it. I hope that some noble Lords who are taking part in this debate or who read Hansard later will be interested in joining me in pushing this forward as an issue on which Britain can and should be a leader. Due to the limited scope of the Bill, I have had to cut down somewhat what the General Assembly resolution says, but there are still steps that we can take forward here; I will be very interested to hear the Government’s response to this UN General Assembly resolution.

Following on from what the noble Lord, Lord Oates, said, it is clear that chasing economic crime money, particularly tax evasion, is what is known in the jargon as a wicked problem. The aims of the evaders are simple; their reach is global and the ability to act is measured in seconds. Money can be shifted in less than a click of my fingers. However, national states have very complex goals in development, rights and the rule of law, and their powers are individually restricted within their own borders. Their legal framework is limited in resources, as we discussed in our debate on the previous group, and frequently takes a lot of time to move into action.

It is worth looking at what Attiya Waris, the UN independent expert on the effects of foreign debt, told the UN General Assembly last year:

“The shortcomings of the international and national tax systems require international cooperation and assistance. They cannot be addressed unilaterally”.


The idea of a UN convention got virtually no coverage or attention in the UK but, internationally, there is a great deal of work going on. That was reflected in a letter sent in March to the UN Secretary-General by scores of civil society organisations—including some that will be familiar to noble Lords, such as Action Aid, the Tax Justice Network and World Economy, Ecology and Development.

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[Lord Sharpe of Epsom (Con)]

My Lords, I thank the noble Lord, Lord Hain, and the noble Baroness, Lady Bennett, for their amendments in this group. I also thank all noble Lords for speaking in this debate.

I turn first to Amendment 103, which was tabled by the noble Lord, Lord Hain, but spoken to by the noble Lord, Lord Oates. If I may, I associate myself with the remarks of the noble Lord, Lord Ponsonby: the noble Lord, Lord Oates, made an incredibly powerful and eloquent case in moving this amendment 103, which also spoken to by the noble Baronesses, Lady Bennett and Lady Wheatcroft. Ensuring that those who are responsible for the most egregious acts of corruption are held to account is obviously vital. There should be no tolerance towards those who steal from the public to satisfy personal greed. The Government wholeheartedly endorse the premise that this amendment seeks to advance. The international community can and must do more to deter and punish acts of corruption.

The Government are taking robust action to ensure that the UK leads by example. That is why, in March, we published the second public-private economic crime plan, to which I referred in our debate on the previous group of amendments, which outlines ambitious actions to prevent the UK’s open economy being exploited by criminals and corrupt actors. The Government are also developing a new UK anti-corruption strategy to build on the progress made by the previous strategy and outline a refreshed approach to tackling corruption and illicit finance both in the UK and internationally.

The recently published fraud strategy also sets out the Government’s commitment to raise the priority of fraud on the international stage. We will drive forward global action through developing stronger relationships with international partners, culminating in a global fraud summit chaired by the Home Secretary and held in the UK next year. The summit will bring together leaders from Governments, law enforcement and the private sector to announce the ambition to deliver a comprehensive and co-ordinated approach to tackling fraud over the next five years.

The Government have consistently invested in efforts to bring those responsible for corruption to justice. The international corruption unit in the National Crime Agency is a specialist capability that investigates corruption cases with UK links.

[Baroness Bennett of Manor Castle (GP)]

On the summit, the problem with ideas such as that put forward by the noble Lord, Lord Ponsonby, about a transatlantic council or similar, is that it would be focused on global north countries. Can the Minister assure me that there will be full representation of global south countries at the summit he just outlined and that the UK will provide resources to ensure that some of the least developed countries, which are some of the biggest victims of this, are also able to participate in that summit?

[Lord Sharpe of Epsom (Con)]

I cannot provide that reassurance; I do not know who will be involved, but I will endeavour to find out and will write.

I shall return to where I was in my speech. In addition, the UK leads and hosts the International Anti-Corruption Coordination Centre—the IACCC—which brings together specialist law enforcement officers from multiple agencies around the world to tackle allegations of corruption. The IACCC has helped to secure convictions in high-profile money laundering cases, including in Malaysia and Angola. In 2022 alone, the IACCC identified more than £380 million of stolen and hidden assets.

I forgot to mention part of my previous paragraph. Since 2006, 30 people and companies have been convicted of corruption offences and more than £1.1 billion of stolen assets have been frozen, confiscated or returned to developing countries. That is in relation to the international corruption unit in the NCA.

Economic Crime and Corporate Transparency

Baroness Bennett of Manor Castle Excerpts

Committee stage
Thursday 27th April 2023 Grand Committee

I urge the Minister to continue the discussions about what more can be done and to give serious consideration between now and Report to including this amendment, or something like it, in the Bill as it proceeds to the statute book. I beg to move.

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is a great pleasure to follow that powerful, comprehensive and, I think, highly persuasive speech from the noble Lord, Lord Alton. I will be extremely brief but, given there was not space to attach my name to this amendment, I wanted to briefly offer Green support. I hardly need to declare my position as co-chair of the All-Party Parliamentary Group on Hong Kong, as the noble Lord, Lord Alton, has already done that, but I will do so for the record.

I just want to make two points. I am perhaps slightly less optimistic than the noble Lord, Lord Alton, who said that if we create this law, the sanctioned individuals will declare. However, this amendment would create a weapon to use against them when they do not. So I would perhaps frame that slightly differently. This really relates to the debate on the previous day in Committee when we talked about SLAPPs. We know the limitations—we have just been discussing the limitations of the resourcing and capacity of our enforcement vehicles. It will likely very often be NGOs and journalists who expose this, but if we bring in the anti-SLAPP rules and this rule, we will see the seizures actually happening and the Bill being effective.

Secondly, through this Bill we are aiming—as we aimed with the previous economic crime Bill—to close lots of loopholes. I assume, however, that not even the Minister will say that, once we have done all this, everything will be fixed and we will not have any future problems. As evidence for that, in August last year the register of overseas entities came in and yet the figures show that little more than half the relevant properties owned by overseas companies have been declared.

We in this Committee are looking at making a difference not just in theory but in practice, and that is what this amendment would do.

[Lord Fox (LD)]

My Lords, it is a great pleasure to support the noble Lord, Lord Alton, on this amendment. I have supported him on a number of amendments in other areas, and I have learned not to do too much research because however much you have done, he will have said it by the time you get the chance to say it.

The Government have recognised the importance of asset seizure. Back in the heady days of March 2022, the then Exchequer Secretary to the Treasury, James Cartlidge—he has of course moved on since then—said that the Government were looking at

“how we can go further to crack down on illicit money in British property, including considering temporary asset seizures beyond the freezing regime that we already have in place”.—[Official Report, Commons, 22/3/22; col. 147.]

However, that is not an easy task, and this is a bit more than closing a few loopholes. Many experts have flagged risks relating to seizing assets—I am sure that the Minister will remind us of that when we come to it—particularly without the necessary proof of criminality. For assets belonging to individual oligarchs, concerns have been raised over the rule of law, due process and property rights. In the case of state assets, objections include sovereign immunity—something that I think I mentioned in a previous debate—and the fear that other states may withdraw their reserves. This is a big issue, as the noble Lord, Lord Alton, mentioned. When we focus on the Russian sanctions, for example, we see that the UK has frozen billions of pounds of Russian assets under the sanctions following the invasion of Ukraine. The Office of Financial Sanctions Implementation—OFSI—has reported that £18 billion owned by individuals and entities associated with Russia’s regime has been frozen since the beginning of that war. Some estimates suggest that more than £40 billion could be frozen or immobilised if further sanctions were put in place.

However, assets frozen under sanctions are passive. Funds frozen under the UK sanctions regime cannot be retrieved or repurposed. In fact, these should be returned at the end of the war if sanctions are lifted. Meanwhile, as the noble Lord, Lord Alton, pointed out, the UK is asking the taxpayer to fund the war effort and, no doubt, the repair of Ukraine if and when we get to that point. So, there is quite a lot at stake.

Amendment 85 is a way of trying to do this and cut through the complication relatively simply and ingeniously —for which I claim no credit. It seeks to strengthen the UK sanctions regime and find a route that allows us to recover these frozen assets, which have been concealed in the past. As we have heard, the mechanism we propose would impose a duty on sanctioned persons proactively to disclose all their assets held in the UK and criminalise the failure to disclose such assets as a form of sanctions evasion.

If a sanctioned person fails to declare all their assets and further assets are uncovered by the authorities, they are guilty of a criminal offence—sanctions evasion. Those undisclosed assets may then be seized under the Proceeds of Crime Act 2002. This seizure would be subject to the same safeguards that courts currently uphold in criminal and civil recovery processes, following due process and ensuring that any deprivation of private property is not disproportionate to the public interest in seizing the proceeds of crime.

Given that sanctions evasion is already a criminal offence in the UK, this amendment would be a straightforward way rapidly to scale up assets that may be susceptible to seizure. Adding a requirement to disclose all assets held within six months prior to designation would also capture assets such as those set out by the noble Lord, Lord Alton. It is for these reasons that we support this amendment.

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[Lord Vaux of Harrowden (CB)]

My Lords, it is a pleasure to follow the noble Baroness, Lady Morgan, who so ably chaired the Fraud Act 2006 and Digital Fraud Committee of which I was also a member. She has given a lot of detail, so I will try to slash out bits of my speech that she has already covered and not repeat too much—I apologise if I fail slightly in that.

I think that we all know about the scale of fraud in this country. However, I think it is worth repeating what the noble Baroness, Lady Morgan, said about the impact that fraud has on the victims. This is not just a financial crime and “Oh, I’ve lost some money”. We heard stories about mental health issues, even suicide, arising from frauds. It is a really serious matter. Losing your life savings is serious but it goes way beyond that.

Yet we do not seem to have taken much action. We have heard several times about the 1% of law enforcement resources that are focused on it. The government response has been fragmented—we refer in our report to an “alphabet soup” of bodies dealing with it. Our report referred to this creating

“a permissive culture across Government and law enforcement agencies towards fraud and the criminals who perpetrate it”.

At the risk of sounding like a stuck record, we have been waiting for months for the national fraud strategy—I think I detect that the Minister is as frustrated as we are about the delay. I am pleased that it has moved from “shortly”, as he said on 15 November last year, to “genuinely imminent” today. We look forward to it. However, the delay does not inspire huge confidence in how seriously the Government are taking this.

The noble Baroness, Lady Morgan, described what we called the “fraud chain” in our report. It is sometimes known as the “kill chain”; we decided that that was not a particularly pleasant phrase, but it again conveys the seriousness of it. Some parts of the chain are, at last, taking action. In particular, the banking sector has taken a number of actions that have had a positive impact; the introduction of the confirmation of payee process is a good example. But why has that sector in particular taken action? I would argue it is because it has had, almost alone in the chain, a real financial incentive to do so with the voluntary reimbursement code. It has been on the hook for paying back and reimbursing, therefore it is trying to do something to stop it. The voluntary code is now becoming mandatory under the Financial Services and Markets Bill, which is welcome.

It is also interesting to see, in the financial services and banking area, some competitive elements creeping in. The TSB uses the fact that it now reimburses all APP fraud losses as a selling point, which is encouraging. On the other hand, those banks that did not sign up to the voluntary reimbursement code are often cited as being more likely to see greater fraud levels on their customers; with less incentive to take action, they have taken less action. Making the code mandatory will, I hope, force them to start to do so.

We have heard about the other players in the fraud chain, those who make it possible for the fraudster to carry out the fraud—the enablers, if you like. They have no such incentive to act at the moment and, as a result, they have not acted, or not in any meaningful way. These enablers are players such as social media companies, search engines, online dating companies, the telecoms industry, website hosting companies, email platforms, ISPs, online gaming platforms, intermediary platforms and those selling bulk SIM cards or SIM farms, which the fraudsters use—and many more. I am sure that, as this area moves and changes, as it does very rapidly, we will see fraudsters constantly jumping into new areas and doing new things. They will react; there will be plenty more that we have not thought about.

From speaking to a major UK fintech, I know that around half the frauds it sees start from platforms operated by Meta, and more than half arise on just four platforms. In a debate on protecting vulnerable people from fraud on 2 December 2021, the noble Baroness, Lady Williams of Trafford, answering for the Government, said:

“As for discussions with Facebook, I have lost count of the number of discussions that I have had. One thing that we said way back in the day was, ‘Look, if you don’t sort some of these problems out, we’re going to legislate to sort them out’—and this is where we are now”.—[Official Report, 2/12/21; col. 316GC.]


A year and half later, we are still there.

As we have heard, we were particularly unimpressed with the telecoms industry, which was at best depressingly complacent. Who in this Room has not received a fraudulent SMS message or phone call appearing to come from a UK number such as HMRC or Royal Mail? I guarantee that nobody in this Room has not. To be fair, some telecoms companies are now taking action. EE, for example, flags suspicious calls, which proves that it can be done. But most have not taken action. They are paid for all these calls and texts, as the noble Lord, Lord Sandhurst, has said but, because there is no come-back on them at all, they have taken little or no action to stop them. I have not been able to find reliable data as to what proportion of scams originate from telecoms companies; rough data seems to indicate that it is somewhere around 20% to 25%.

Amendment 94 aims to create an incentive for all players in the fraud chain to take action. Effectively, it creates an offence of failing to take reasonable steps to prevent the use of a company’s services for the purpose of committing fraud—by a third party; it does not have to be related to the company. The amendment is deliberately scoped widely, rather than industry by industry; it tries to make it so that anyone providing a service that could reasonably be expected to be used by fraudsters should have to take reasonable steps to detect and prevent that use. That does not seem particularly extreme. It creates a defence that the company had in place such procedures as it was reasonable, in all the circumstances, to expect to detect and prevent the use of its services for the purposes of committing fraud, or that it could not reasonably have known that they were being used for such purposes.

When we get to the discussion that we will no doubt have about this being disproportionate, I will disagree. Any court is going to look at a small company, and that is one of all the circumstances that it will take into account when deciding what would be reasonable for detecting and preventing fraud. It cannot be too much to ask that companies should have to put reasonable procedures in place. I think that it is a pretty low bar, but I am sure that we would all be very happy to discuss how the amendment might be tweaked or changed to ensure that it does not have a disproportionate impact on businesses. But it would be good to hear whether, first, the Minister agrees that there is genuinely a problem in this area and, secondly, whether he agrees conceptually that creating a real incentive for companies to take more care to ensure that their services are not being used by criminals is necessary.

The Online Safety Bill goes some way to achieving this in some respects—and I thank the Minister for arranging for me to meet officials yesterday, who were extremely helpful in getting me up to speed on what that Bill does. It does that especially in relation to fraudulent advertising, and that is very welcome, but it does not cover all the enabling industries, even the ones we know about now, let alone those in future. It does not cover telecoms, email providers or web-hosting companies, for example, and is more focused on the large players. It also does not cover all the activities. Previously I mentioned people selling SIM farms or other tools used by fraudsters. They would not be caught by it. It will not catch the SMS with a link to a fake Royal Mail site, for example.

What worries me is that the approach of using lots of different pieces of legislation to deal with this problem, such as the Online Safety Bill and the others that the noble Baroness, Lady Morgan, mentioned, leaves us in danger of creating a piecemeal approach, mirroring the alphabet soup of responsible bodies that I mentioned. This amendment would create an overarching obligation on any business to take reasonable steps to prevent the use of its services by fraudsters, whether on or offline.

Amendment 91, in the name of Baroness Bowles, attacks the problem from the point of view of regulators, conferring a duty on them, or giving them the option, to create a duty to prevent or facilitate crime regulation. It names a number of regulators, including Ofcom in respect of telecoms and other communications platforms. It mentions the ICAEW, so I should remind the Committee of my interest as a member of that body—I keep doing that, I am very boring. Personally, I think these two amendments would actually work quite well together. If Ofcom, for example, set out a code of conduct for telecoms companies to follow, that could work as the defence mentioned in Amendment 94.

However we do it, we must incentivise all enablers in the fraud chain to do the right thing. There is an excellent opportunity in this Bill to do it now. Further delay will lead to countless more innocent people losing their savings and being traumatised. I very much hope the Minister will be willing to approach this constructively, even if he does not like some of the specifics in the amendments. I support the noble Baroness’s suggestion about the analysis of how all these Bills work together, which would be very helpful.

[Baroness Bennett of Manor Castle (GP)]

My Lords, it is a pleasure to follow the noble Lord, Lord, Lord Vaux, and everyone who has contributed to this crucial debate. I feel I should begin with an apology for not taking part in the debate on the failure to prevent in the first group, but that is because I was in the debate on the Online Safety Bill, with an amendment to which I had attached my name. It is a grave pity that we are debating two such important and closely linked Bills on a Thursday, with the pressures that is putting on your Lordships’ House, but in this group we have seen that we are overcoming those challenges and doing a great job of scrutiny, as we should be doing.

I will be quite brief and again try not to go over any of the same ground as others, but something that struck me when I looked at the Online Safety Bill was that action against fraud and other crime was utterly missing from it. In fact, I considered tabling amendments, but the drafting job was, frankly, beyond the capabilities available to me. The way it has worked out fits very well with this Bill and draws on the capacity of people involved with this Bill, whereas the other Bill has been taken in a somewhat different direction. It is worth noting that this is a safety issue—the noble Baroness, Lady Morgan, and the noble Lord, Lord Vaux, referred to this. The noble Baroness said that it does not only affect older people, but it is worth noting that it is particularly an issue for them. If you are hit by a fraud when working in a system that you already found challenging and difficult to engage with, you lose confidence in your ability to operate in the world. We have a loneliness epidemic, with many people struggling to survive, with the Government stressing digital first, digital first. The impact on older people in particular is an earthquake through their lives, and that needs to be noted.

Lots of people talked about the scale of that problem, but I do not think anyone has mentioned that UK Finance, the trade association for the UK banking and financial sectors, said that financial fraud is now a national security threat. That ties in with the earlier amendment of the noble Lord, Lord Alton. In the first half of 2021, more than £750 million was stolen, and that was a 30% increase on the same period from the previous year, so we are looking at something that is escalating and absolutely demands action.

Short-term Holding Facility (Amendment) Rules 2022

Baroness Bennett of Manor Castle Excerpts

Tuesday 18th April 2023 Lords Chamber

[The Lord Bishop of Leeds]

My Lords, I support the Motion to Regret in the name of the noble Baroness, Lady Lister. The Government were clearly right to openly acknowledge that the Manston short-term holding facility had been operating outside of legal requirements and that action was needed to improve conditions at the site. Therefore, the decision then to use secondary legislation not only to extend the length of detention powers at such facilities but to reduce the required safeguarding standards must be highly regrettable. It cannot be right that, when the immigration estate fails to meet legislation passed by this House, the response is simply to rewrite the rules. I am reading a lot about the Soviet Union at the moment, and there is an echo of that: if the five-year plan was not met, you simply changed reality to meet what you were going to get.

It is important not to forget that short-term holding facilities accommodate families, children, and survivors of torture and trafficking, following people’s often traumatic journeys. We should be committed to the highest safeguards when seeking to accommodate individuals in this position, and take the right steps to identify those with protection needs. I therefore ask the Minister why it was deemed necessary to reclassify Manston as a residential holding room, thereby disapplying key safeguarding rules for short-term holding facilities. Why was only one fewer day of permitted detention justification for such a downgrade in safeguarding rules and standards?

I want to be brief, so I will pay attention to just two key issues. First, it is unclear whether the Rule 32 process will fully apply to residential holding rooms. Will detention therefore be reviewed within the mandatory timeframes for those identified as vulnerable through the Rule 32 process? The modification to a review as soon as is practicable, as suggested in the Explanatory Memorandum, is highly concerning, as individuals, including children, may be harmed further by their continued detention.

Secondly, why is there no requirement for minors or families to be in sleeping accommodation in residential holding rooms that is inaccessible to other detained individuals not known to them? Surely this requirement should never be downgraded when it comes to a child, and the risk is even greater with extended detention for up to 96 hours.

Given that the Government are looking to impose a duty on the Secretary of State to detain those in contravention of Immigration Rules for any length of time deemed appropriate through the Illegal Migration Bill, this debate reminds us that detention safeguards and accommodation rules are vital in protecting the most vulnerable people. I therefore ask the Government to ensure full scrutiny of these rules as facilitated through the passage of the Bill, rather than has been the case in this instance thus far.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I first thank the noble Baroness, Lady Lister, for tabling this Motion to Regret, and echo her call for these rules to be withdrawn—they are unacceptable.

I think it is useful to put this in the context of Oral Questions earlier. We heard the noble Lord, Lord Ahmad of Wimbledon, speaking for the Government on their plans for the Council of Europe summit in Reykjavik. The noble Lord said that this was

“an important opportunity for member states to renew their commitment to human rights, democracy and the rule of law”.

Yet here we are, debating regulations that clearly fail to meet basic standards of human rights. Basic standards are being denied to people in the UK. That is horrifying in its own moral terms but, thinking about the state of the world and the role the UK Government say they wish to play in it, it is definitely going to damage our status and our ability to have impact in the rest of the world.

It might be said that it is some of the usual suspects in your Lordships’ House who are saying these things, but we are reflecting the conclusions of the Secondary Legislation Scrutiny Committee. These regulations remove important safeguards and reduce standards, including for children and vulnerable adults, and the Government have

“not provided an adequate policy justification”

for or consulted on these changes. This was brought in while the House was in recess. There are blows everywhere to democracy, the rule of law and all the things that the Government say they are standing up for.

I want to briefly reflect, drawing on a report by Amelia Gentleman in the Guardian last month, on what was happening at Manston and what is apparently being regularised. The journalist quoted a Home Office employee who said that what was happening in Manston

“had got way beyond what was ethical and humane … There were people who’d been sleeping on a mat on the floor of a marquee for 20 days”.

Some families had been

“shut inside tents without access to fresh air”

for seven days. This is unacceptable.

One of the other issues was private security contractors. It is a particular concern where we see removal of democratic oversight through outsourcing and privatisation. A company that usually does security for festivals and shopping centres suddenly had staff, clearly not trained for the practices, who had to deal with a very difficult situation.

There is a lot to say, but we have limited time, so I want to focus on a couple of issues. There are much broader issues around immigration detention and the fact that the UK is one of the very few countries in the world that locks up for an indeterminate period—sometimes for years—people who have not even been accused of any crime. I ask the Minister directly, under the RHR regulations we are debating, why is there no maximum legal time limit, as there is to an STHF? Will the Government commit to introducing a time limit?

What kind of system have we now arrived at? Will the Minister confirm that the current changes will see a dramatic change in the amount and form of detention being used in the UK in the coming months and years? Is the Minister concerned about increasing breaches of human rights, in particular the right to be protected from arbitrary detention, torture and inhumane and degrading treatment?

[Baroness Hamwee (LD)]

My Lords, if I did not speak to this Motion and support it, I think I would be haunted by the ghost of the late Lord Eric Avebury, for whom improvement of the conditions in which people are held at the border was something of a mission. I appreciate that I am speaking of a Member of this House who died some time ago, but his legacy lives on with some of us.

The noble Baroness, Lady Lister, has been very thorough. I hope that the Minister managed to note all her questions. If I repeat any of them, I apologise to the House; I do not think my editing quite kept up with all she had to say. The noble Baroness said that the House did not need reminding of the concern there has been, and which remains, about conditions at Manston and the number of people held in those conditions. Perhaps we should not be surprised that, instead of changing “facilities”—a term which I find rather inappropriate in this context—to fit the rules, the rules are being changed to fit the facilities.

Anti-social Behaviour Action Plan

Baroness Bennett of Manor Castle Excerpts

Wednesday 29th March 2023 Lords Chamber

[Lord Sharpe of Epsom (Con)]

I take what the right reverend Prelate says very seriously. She raised very interesting points. She will appreciate that it is above my pay grade to commit to look at definitions and so on, but I will certainly take that back and make sure that discussions are advanced on the subject.

[Baroness Bennett of Manor Castle (GP)]

My Lords, I declare my position as a vice-president of the Local Government Association. Paragraph 71 of the Anti-Social Behaviour Action Plan refers to the youth investment fund, which it says is

“investing over £300 million in … new and refurbished facilities”.

Can the Minister confirm a report this afternoon from Civil Society that said that the Department for Culture, Media and Sport has, given the “challenging financial climate”, just given £31 million of what was previously a £380 million capital fund for this programme back to the Treasury? This programme was announced as a £500 million plan in 2019 by the then Chancellor, Sajid Javid. Can the Minister confirm that this is indeed a cut in the provision for this capital programme? Further, can the Minister comment on the fact that local authority spending on youth clubs in 2020-21 was £379 million—a 74% real cut over the previous decade? How will the Government be able to deliver on this plan without youth clubs, which are an important way of involving young people and children in communities, giving them a place to go and a route towards the future?

[Lord Sharpe of Epsom (Con)]

I can neither confirm nor deny the first part of the noble Baroness’s question because I have not seen the report, so I do not have detailed knowledge of the situation to which she refers. I go back to my answer in my initial remarks, which is that 1 million extra hours of youth services are planned under this programme. We will invest over £500 million to provide high-quality local youth services so that, by 2025, every young person will have access to regular clubs and activities, adventures away from home and opportunities to volunteer—the sort of life-enriching stuff that we would probably all take for granted. I hope they make the most of those opportunities.

[Baroness Bennett of Manor Castle (GP)]

My Lords, on a different subject, the Statement refers to cracking down on illegal drugs. This would seem to be entirely going against the advice of the National Police Chiefs’ Council, which in December was recommending the extension nationwide of its very successful schemes piloted in Durham and Thames Valley where, instead of prosecuting users of hard drugs such as heroin, cocaine and ecstasy, users were offered access to addiction services. At that time, when the Government were talking about being harsher on drug users, the Association of Directors of Public Health wrote to the Government to protest at the plan to criminalise the vulnerable and double down on a failed model. Has the war on drugs not clearly failed over decades? Why are the Government not taking advice from experts and the police on the direction of travel on how to deal with what is clearly a huge blight on the lives of individuals and on communities?

[Lord Sharpe of Epsom (Con)]

My Lords, it sounds to me as if the noble Baroness is asking whether we should decriminalise or go in that direction. We have no plans to do so. Our approach on drugs remains clear. We must prevent drug use in our community, support people through treatment and recovery and tackle the supply of illegal drugs. There is a substantial body of scientific and medical evidence to show that controlled drugs are harmful and can damage people’s mental and physical health and our wider communities. The decriminalisation of drugs in the UK would not eliminate the crime committed by the illicit trade, nor would it address the harms associated with drug dependence or the misery it can cause. Of course we take the plight of addicts seriously, and I do not think anything in this anti-social behaviour plan will make life harder for them. The point is to go after the anti-social behaviour; it is about the behaviour, not their plight.

Illegal Migration Bill

Baroness Bennett of Manor Castle Excerpts

Wednesday 8th March 2023 Lords Chamber

[Baroness Williams of Trafford (Con)]

My Lords, my noble friend Lord Murray is going to hate me, but I have just had agreement through the usual channels that we will go an extra 10 minutes, given the demand for questions. So we will hear from the noble Baroness, Lady Bennett, from my noble friend Lord Balfe and from the Cross Benches.

[Baroness Bennett of Manor Castle (GP)]

I am sure the Minister will wish to correct an erroneous statement that he made in responding to the Front-Bench questions. He said there are 100 million refugees in the world. That is not what the Statement says. The figure from which the Statement draws comes, I believe, from the UNHCR: 100 million displaced people in the world, most of whom are in the countries of origin. I am sure the Minister will want to correct that. I am going to pick up on the question of children. Have the Minister or the Government considered what life would be like for a 16 year-old, a 15 year-old or a 17 year-old being held—warehoused—in this country and then, the day they turn 18, being thrown out, even though we know they are a refugee?

[Lord Murray of Blidworth (Con)]

I thank the noble Baroness and I entirely accept her correction. She is quite right about the figure of 100 million: it is displaced persons. On her second point, I am afraid I do not accept that it would be appropriate to exclude everyone under 18 from the operation of the scheme, and it is obvious why that should be: sadly, such an exception would generate very great abuse.

Prostitution

Baroness Bennett of Manor Castle Excerpts

Tuesday 21st February 2023 Lords Chamber

Asked by

[Baroness Bennett of Manor Castle]

To ask His Majesty’s Government what steps they are taking in response to the report of the House of Commons Home Affairs Select Committee on Prostitution (Third Report, Session 2016–17, HC 26); and in particular, the recommendations on (1) decriminalising soliciting; and (2) amending brothel-keeping laws to allow independent sex workers to operate together indoors for safety.

[The Parliamentary Under-Secretary of State, Home Office (Lord Sharpe of Epsom) (Con)]

My Lords, following the committee’s report, the Government commissioned research on the prevalence and nature of sex work. This did not lend itself to clear recommendations on a new approach. We continue to engage with the police and others, with a focus on reducing the harm that can be associated with prostitution. We know there are links between brothels and organised criminal gangs and have no plans to amend legislation in this area.

[Baroness Bennett of Manor Castle (GP)]

I thank the Minister for his Answer. I note that the Independent reported in December that the National Police Chiefs’ Council’s lead on prostitution and sex work said he was working alongside the Government to reassess the brothel-keeping legislation particularly. His words were

“I don’t think that is helpful.”

This occurs, of course, in the context of the cost of living crisis. To quote a sex worker from Leeds:

“We’re in the middle of a cost of living crisis, and although sex work is legal there aren’t any regulations and safe places for people to work legally, and the wages haven’t gone up at all. Survivalist sex work is a massive issue”.


In December, the talk was of action.

[Noble Lords]

Question!

[Baroness Bennett of Manor Castle (GP)]

If you will let me. The talk in December was of action. Are the Government going to urgently look at this question, particularly in light of the cost of living crisis?

[Lord Sharpe of Epsom (Con)]

The noble Baroness is quite right. The DCC and the Safeguarding Minister had an introductory conversation at the end of January in which they discussed all those issues. The Safeguarding Minister highlighted that the Government are not minded at present to seek to change the law, based partly on a lack of unequivocal evidence. On the cost of living crisis, we are obviously extremely concerned to hear of women who feel they have no other choice but to turn to sex for survival. We are committed to ensuring that no one finds themselves in this position.