Whistleblowers

Lloyd Hatton Excerpts

Wednesday 2nd July 2025 Westminster Hall

[Lloyd Hatton (South Dorset) (Lab)]

I beg to move,

That this House has considered the contribution of whistleblowers.

It is a pleasure to serve under your chairship, Mr Turner. Last week we marked World Whistleblower Day, so it is only right that we come together in this place to recognise the contribution that whistleblowers make to our society. Time and again, whistleblowers bravely expose wrongdoing, often at great personal and professional risk. Whistleblowers are key to alerting law enforcement agencies about criminal activity, and they play a crucial role in delivering successful prosecutions.

We all know that whistleblowers on the inside are often the most valuable sources of information, notably when it concerns illicit financial activities. Indeed, 43% of fraud was detected by tip-offs last year. The Serious Fraud Office frequently cites whistleblowers as a vital source of information for its investigations, and over half of whistleblowing reports received by the Financial Conduct Authority led to regulatory action by the watchdog last year.

With all that in mind, to open the debate, I would like to focus on one particular whistleblower: Raphaël Halet. That case shows the real impact that whistleblowers can have, bringing about positive change in society by shining a spotlight on issues of public concern—in this instance, aggressive tax avoidance. Ten years ago, Mr Halet, then a PricewaterhouseCoopers employee, revealed documents to the press that exposed a major global network of tax avoidance schemes based out of the tax haven of Luxembourg. These shocking revelations captured headlines around the world and quickly grew into a bigger scandal known as the LuxLeaks.

The documents that Mr Halet leaked exposed the secret deals used by hundreds of the world’s largest companies—firms like Pepsi, IKEA, Amazon and Disney—to reduce their tax bills to next to nothing. These leaks helped to set the stage for ongoing efforts to impose a minimum global tax on corporations and, eventually, for a ruling last year by the European Court of Justice, which ordered the corporate giant Apple to return about $14 billion of unpaid taxes in Ireland.

However, those documents became the subject of criminal charges in Luxembourg against Mr Halet. Thankfully, 10 years later, he was exonerated, alongside the other two LuxLeaks whistleblowers. I firmly believe that those leaks have helped the European Union to improve whistleblower protections and ensure that future whistleblowers do not unjustly face criminal charges.

Here in the UK, despite the important contribution of whistleblowers, individuals often lose their job when they come forward, simply because the existing legal framework lacks sufficient protections. As it stands, just 4% of whistleblowers in the UK win their cases if they are unfairly dismissed by their employer. I am quite sure that this deters any would-be whistleblower from ever speaking up and speaking truth to power. Our current framework also fails to adequately respond to whistleblowing. Employers are not duty-bound to have whistleblowing arrangements or to investigate when a whistleblower reports. Over 40% of the whistleblowers that Protect, which is the UK’s leading whistleblowing charity, spoke to in 2024 reported that they had been ignored.

To ensure that whistleblowers are better listened to, the Government should consider introducing a legal duty for companies to hold investigations into legitimate whistleblower concerns. This proposal has strong cross-party support, including from Sir Robert Buckland, the former Conservative Justice Secretary; Baroness Hodge of Barking, a former Labour Minister; and a former Liberal Democrat Cabinet Minister, the right hon. Member for Orkney and Shetland (Mr Carmichael), who joins us today. I expect there will also be support from Members who speak later in the debate.

Ignoring or failing to protect whistleblowers carries not just a human cost but a financial one. The Protect charity found that ignoring whistleblowers in just three scandals—the Post Office Horizon scandal, the Countess of Chester scandal and the Carillion scandal—cost the taxpayer a combined £423 million in the long run, which is a staggering figure. That could have funded the construction of 14 new schools, or even run a prison for some 20 years.

As I have said, speaking up can have career-ending and life-altering consequences. Whistleblowers often suffer immense professional, personal and psychological harm. The contribution of whistleblowers is huge, so we should offer fairness in return. That is why I support creating a whistleblower award initiative, as part of a comprehensive set of reforms to better protect and listen to whistleblowers.

The Royal United Services Institute has found that the United States and Canadian whistleblower award programmes, accompanied by safeguards and protections, as well as well-resourced regulators, have successfully increased the number of whistleblowers coming forward, enhanced law enforcement outcomes and improved the rates of financial recovery. This Government have already indicated that they recognise the potential benefits of introducing such rewards here in the UK. Just over a year ago, my right hon. Friend the Member for Tottenham (Mr Lammy), the shadow Foreign Secretary at the time, said that he would launch a new whistleblower award scheme to incentivise and encourage sources to step forward.

That is a commitment that we all want to see, and it is exactly where we should open today’s debate. I look forward to hearing from the Minister on current thinking on whistleblower awards nearly one year into government. It is clear from all the evidence—I expect that we will hear much more today—that we need to do far more to collectively support, protect, reward and, most importantly, listen to whistleblowers.

[Several hon. Members rose—]

--- Later in debate ---

[Lloyd Hatton]

I would like to conclude today’s debate by summarising some of the helpful and constructive contributions of hon. Members. I thank the hon. Member for Strangford (Jim Shannon) for outlining the bravery of his constituent Brian. I also thank my hon. Friend the Member for Congleton (Sarah Russell) for describing the high-risk culture around whistleblowers and the fear that it creates for many.

I thank my hon. Friend the Member for Bolton West (Phil Brickell), who has been a tireless champion on this issue, for highlighting, first, the scale of the economic crime epidemic that we face in the UK, and secondly, the critical role of whistleblowers in tackling the problem head on. I thank the hon. Member for Torbay (Steve Darling) for making it clear that we are a stronger society because of whistleblowers, and that when they come forward in the public interest, we all benefit.

Finally, I thank the Minister for his remarks. He was right to outline that the current framework is in need of modernisation and does not deal with the challenges that we face. I look forward to further action from the Government. I also welcome his looking at the US model and seeing how it works to adequately reward and protect whistleblowers. I hope that we can learn from that example. I welcome what he said about HMRC, and urge him and the whole Government to be bold in properly empowering and equipping HMRC to work more effectively with whistleblowers and to tackle the scandal of aggressive tax avoidance and evasion.

Question put and agreed to.

Resolved,

That this House has considered the contribution of whistleblowers.