Economic Activity of Public Bodies (Overseas Matters) Bill Debate

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Department: Ministry of Housing, Communities and Local Government
Angela Rayner Portrait Angela Rayner
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My hon. Friend makes a very important point, which is why we are trying to gain consensus across the House through our amendments. It is important that people should be able to raise concerns appropriately and in the best way. The Bill does not allow that. Even the Foreign Secretary’s office warned No. 10 about the impact of the Bill on our foreign commitments. For that reason, we welcome amendment 7 in the name of the right hon. Member for North West Hampshire (Kit Malthouse), which has support across the House—including from Members from the Liberal Democrat and SNP Benches. We think it will go some way to addressing the problem.

Thirdly, I want to re-emphasise the concerns raised by Members from all major parties about clause 4—the so-called gagging clause. I acknowledge the changes made to the explanatory notes in this area, but this unprecedented restriction could have far-reaching consequences for our democracy, and I urge the Secretary of State to think again. I have tabled amendment 16, which would address the issue of elected bodies. It is a mark of the concern across the House that there are so many amendments to the clause, including from Members from the Government and the SNP Benches. The seriousness of the clause must not be underestimated. It is an unprecedented restriction on the ability of the public bodies—many of them directly elected—to express a view on policy, effectively gagging them from even talking about it.

We are concerned that clause 4 would be incompatible with article 10 of the European convention on human rights, which protects freedom of expression. Labour’s amendment 14 seeks to remove the most sweeping provisions in the Bill through which the Secretary of State intends to hand himself unprecedented power to change the scope and application of the Bill through regulations.

Lastly, it is important to note that the Bill in its current form will not set out what it seeks to achieve. There are loopholes that will allow discriminatory acts to continue unchallenged. Our new clause 3 presents just one example, and I am sure that there are many more. The new clause requires the Government to review the impact of the Bill on discrimination, and addresses one form of it that has been raised with me—refusal to provide kosher food. We on the Labour Benches know that that impacts on many British Jews across this country, causing much distress and suffering. That is the type of concerning practice that should be tackled, but the Bill in its current form will not address it. I urge the Secretary of State to take a pause, take a step back, and consider that there might be another way through.

I assure the Secretary of State that Labour feels strongly that BDS practices against Israel offer no meaningful route to peace for the people of either Palestine or of Israel. As my hon. Friend the Member for Wigan said on Second Reading,

“We on the Labour Benches do not claim that all those who support BDS, despite our profound disagreement with them on that issue, are antisemitic.”—[Official Report, 3 July 2023; Vol. 735, c. 527.]

But let us be clear: the effect of BDS would be the total economic, social and cultural isolation of the world’s only Jewish state, and there are those who use the campaign to whip up hostility towards Jewish people, providing no route to peace and a two-state solution. I can assure the Secretary of State that Labour will continue to condemn and oppose that in the strongest terms. I do not believe there is genuine disagreement between us on that point.

But let me be totally clear, too, both as a shadow Minister and as deputy leader of the Labour party: now more than ever we expect councils to bring all their communities together and represent all their citizens. It would be utterly wrong to choose one community over another—or worse, pit one against another.

Brendan Clarke-Smith Portrait Brendan Clarke-Smith (Bassetlaw) (Con)
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I agree 100% with the right hon. Lady that we must be moderate in our tone and the language we use. Does she agree it was therefore very unhelpful for the Scottish Labour leader to use terms accusing Israel of breaching international law when we are discussing such a sensitive subject?

Angela Rayner Portrait Angela Rayner
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As I said at the start of the debate, people have to be responsible—and, in fairness, I acknowledged that the Prime Minister at the start of this week also outlined that people have to be responsible. I say that across the whole House and genuinely mean it: we all have to be responsible. I know people feel very strongly at the moment about these issues, and rightly so, and I hope the hon. Gentleman sees from my contribution to this debate that I am taking that very seriously as well.

We rightly expect that our local government must surely stay by the principles I mentioned, but we must also make sure that our national Government do too. That is real leadership—of our communities, and of our whole country. Instead, I fear we have a Government unwilling to recognise what is needed from them at this moment on this Bill: careful, precise deliberation and to bring communities and the country with us.

I am disappointed that the Secretary of State has taken the reckless path of forcing the Bill back to Parliament today—a Bill that fails on its own terms. His approach risks dividing our country, our communities and even his party. I urge him now not to divide the House and to accept the amendments proposed by Members on the Opposition side and his own.

For our part, Labour stands ready—as we have at every single stage of the Bill—to work constructively with the Government and other parties to build consensus behind a workable, sensible solution. There is no doubt that the people of our country want us to speak with one voice. Labour stands ready and willing to work in good faith to achieve that goal. The question is, are the Government?