Public Authorities (Fraud, Error and Recovery) Bill

David Chadwick Excerpts

2nd reading
Monday 3rd February 2025 Commons Chamber

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

It is an honour to follow such an excellent speech from the hon. Member for Normanton and Hemsworth (Jon Trickett). As a Welsh Liberal Democrat, I find myself concerned with the civil liberties aspects of this Bill, particularly the influence and power it gives to the big banks. I spent seven years working in data privacy as a data protection consultant, and reading this Bill created more questions than it answered. I worked on datasets involving different businesses, Governments and organisations from across the world. In particular, I want to speak to the points around the banks, because as we speak, customers from Lloyds and Halifax cannot access their bank accounts because of an outage. We should be concerned about making banks the judge, juries and executioners of social policy, particularly with something as important as welfare policy.

The UK has strong data protection laws that have been carefully negotiated over time and inherited from the European Union, and this Bill threatens to erode some of those protections and implicates treaties that we have already signed, such as the data adequacy agreement we have with the European Union. If the EU was to turn around and say that it was unhappy with the Government’s decision to monitor their subjects and citizens in this way, that would create many more problems for organisations across the UK. Citizens should have the right to object to automated decision making, and I struggle to see how asking banks to scan their datasets for potential fraud could not be regarded as decision making. Let us give citizens the right to be able to object to these decisions being made about them. If we do not, we might be violating the data privacy agreements that are already in place.

What do the Government expect the process to look like, when they are asking the banks to provide this information? The Secretary of State said that the information would be provided in a digital format, but what will that actually look like in practice? What could go wrong if, as has been mentioned, the banks are having to relay huge datasets to the Government and to the DWP in particular? That could create honeypots of data that might be easy for hackers to intercept and interfere with.

In data protection, if there is not data integrity, availability and confidentiality, essentially all of the agreements that exist with the data subject and the data processor can be said not to be valid. I therefore wonder what the Government see as the perfect framework for this data to be provided. Does it mean that the banks will have to export the names of everyone who has more than £16,000 in savings and send that to the Government to see whether they are in receipt of welfare payments?

One of the core principles of a free society is the right to privacy, yet in its current form, this Bill represents an intrusion by the state into the privacy of individual citizens. Under the Bill, the Government would be granted sweeping powers to access and monitor the personal financial records of citizens, even without any evidence of suspicious activity to justify such actions.

Many people are in receipt of welfare payments through no fault of their own, and this Bill could result in the mass surveillance of private financial information, potentially affecting 9.4 million citizens. The presumption of innocence is a cornerstone of our justice system, yet the Bill would fundamentally alter that principle. Under the Bill, individuals could be presumed guilty until proven innocent, with their personal data shared, investigated and scrutinised without sufficient cause or due process. That sets a dangerous precedent, where the burden of proof falls on citizens, not the state. We have all seen the devastating impact of errors made by the Department for Work and Pensions on individuals. Such a system could lead to disastrous consequences, where it falsely flags someone as fraudulent due to simple administrative errors or unintentional mistakes. The hon. Member for Normanton and Hemsworth acknowledged that the banks had raised concerns about whether they are the right organisations to do this.

The Bill risks creating a two-tier society where certain groups are subjected to intrusive financial monitoring by the state while others are not, which would undermine the principles of equality and fairness that our society is built on. In the current climate where banks are closing branches left, right and centre—Lloyds bank has announced that it will close its branch in Pontardawe—the Government should not be asking banks to act as judge, jury and executioner in social welfare policy while granting themselves access to people’s bank accounts but not requiring those banks to ensure that citizens have access to their bank accounts. That does not sit well with the liberal society that I want to live in, and I do not believe that my citizens want to live in such a society, either. I call on the Government to rethink their proposals and to assure us that the Bill will not undermine our data protection adequacy agreement with the European Union.

Agricultural Property Relief

David Chadwick Excerpts

Tuesday 28th January 2025 Westminster Hall

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the hon. Member for Caerfyrddin (Ann Davies) for securing this important debate, and I applaud the cross-party work she is doing to ensure that Welsh farmers have a strong voice in this place. We also heard from my hon. Friend the Member for Tiverton and Minehead (Rachel Gilmour), who pointed out the holes in the proposed policy change. I welcome the contribution from my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), whose voice is so valued by the agricultural community across these isles. He pointed out that there is still time for the Government to engage properly with the sector, and that it is in the public interest to preserve these farms.

Last weekend, a group of farmers came to Llandrindod Wells to show me their accounts. What they wanted to show me was not how much they were making, but how little. Their figures were corroborated by statistics released this month by the Welsh Government, which show that farming incomes have fallen by a staggering 34% across Wales in the last year. The average income now sits at just £22,000, which is perhaps not surprising considering what farmers have had to cope with recently: rising energy costs, runaway fertiliser inflation, supermarkets forcing unfair prices on producers, the transition away from the EU customs union, disastrous Conservative trade deals with Australia and New Zealand, and extra regulations from the Welsh Government. Those are just a few of the issues they are coping with, and we can now add to that the rise in national insurance and the changes to APR and BPR announced in the autumn Budget. Family farms are on the brink.

The people working on our farms in Wales deserve a decent living. Farming is already a tough business, but those figures and challenges highlight how unsustainable the situation is for many families. The Government’s proposed changes to agricultural property relief make things worse by forcing farmers either to sell parts of their land or to make repayments that will wipe out any annual profit. The Government are relying on outdated APR claim figures from 2021-22 and including non-commercial holdings in their calculations, which downplays the policy’s impact. According to NFU Cymru, the number of farms in Wales that will be affected is closer to 75% than the 27% claimed by the Government. If the Government are so confident in their numbers, why will not they release a full impact assessment that includes national breakdowns for Wales and Scotland?

When speaking to people in the sector, it is clear that they know what the impact will be: a further contraction in the rural economy. More young people will be forced to leave farming, placing our food security at risk, driving up food prices and damaging the wider rural economy. The process of rural depopulation will continue, making it harder for local councils to provide services. In Wales, the policy could have a calamitous impact on the Welsh language.

Recently, I visited Llanelwedd primary school, and a nine-year-old pupil asked me about the rising cost of fertiliser. I asked him whether he was going to farm when he grew up, and he looked me in the eye and said, “I am a farmer already.” Yet, under these new policies, this young man may inherit a smaller farm with little profit and fewer opportunities.

Farming is not a typical business, but it is an essential one. In Wales, we have already seen the decline of many industries as a result of political decisions, and I fear that the proposed changes to APR could have the same devastating effect on farming. Who will farm the Welsh countryside? Will it be Welsh farming families who have worked the land for generations, or will it be the super-rich? It is reported that the Government plan to soften the blow for non-doms, but they seem unwilling to listen to the farmers who are the backbone of our rural economy. Our farmers are patriots and servants of the land. Who will feed us when they are gone?

Surely, Ministers must now look again at this policy. It is not just Opposition parties and farming unions that are criticising it, but the Office for Budget Responsibility, supermarkets and even, as of this weekend, the Labour First Minister of Wales. Rural Labour MPs need to stand with them and to pressure the Government to reconsider, and I applaud the hon. Member for Montgomeryshire and Glyndŵr (Steve Witherden) for doing exactly that in this debate.

There are alternatives. Many in my constituency are already asking why Labour is targeting family farms, small businesses and charities for tax rises, while letting big banks, oil companies and tech giants off the hook. That is where the full troughs lie.

APR is not a loophole. As has been mentioned, it was purposefully introduced to protect family farms and safeguard our food security. If the Government want to stop tax evasion, they must work with the farming sector to find a solution that does not punish struggling farmers, because Welsh farmland belongs in Welsh farming hands.

Food Banks

David Chadwick Excerpts

Tuesday 19th November 2024 Westminster Hall

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

I congratulate the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) on securing this important debate. The work that food banks do is invaluable. I would like to thank all the dedicated volunteers in my constituency of Brecon, Radnor and Cwm Tawe who run food banks—they do tremendous work across our communities. There is PANTRY food bank in Pontardawe. There are food banks in Brecon, Knighton and Presteigne, Llandrindod Wells, Rhayader, Ystradgynlais, Ystalyfera and Gwaun-Cae-Gurwen, all of which provide vital support to people in our communities and help those in need.

That need is growing across Wales. Food-bank parcel distribution has increased by 77% since 2018. An estimated 6% of households in Wales accessed food aid last year, and one in four households in Wales are either eating smaller meals or skipping meals altogether. In Wales, child poverty rates are significantly worse than elsewhere in the United Kingdom. In my own region, a staggering one third of children in Neath Port Talbot council and 20% in Powys live in absolute poverty. These high child poverty rates have remained stubbornly high across Wales, moving barely at all since the early 2000s.

That can only represent a failure of policy and political will across successive Governments on both sides of the M4. Volunteers often say that, although the work they do is valuable, food banks should not need to exist at all. They exist due to our state’s failure to address poverty within our communities, and are needed to support adequately those struggling to make ends meet.

Tackling food poverty requires a cross-sector approach. Rising energy and housing costs are pushing more and more people into poverty. The cost of energy itself makes producing food in this country even more expensive. In Wales, we urgently need more investment and well-paying jobs should be brought back in deprived areas. Former mining communities, such as those in the south of my constituency, are still waiting for new industries to arrive. The new Government cannot afford to continue to make the mistakes of the past. We cannot end up in a situation in which the same number, or even more, children are relying on food banks in 10 years’ time. We will continue to hold this Government, as well as those in the devolved Parliaments, to account to ensure that that is not the case.

[Valerie Vaz (in the Chair)]

Order. I have to reduce the time limit to two minutes.