UK Trade Performance

Lord Bellingham Excerpts

Tuesday 7th May 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I just wish the noble Baroness had been at breakfast this morning at No. 10 Downing Street, where my noble friend Lord Petitgas and I hosted 16 SMEs which are exporters to Europe and elsewhere. They reported on how their businesses are trading up and that they now have the opportunity to trade around the world beyond Europe. I have been through the numbers; they do not lie. The numbers say that in terms of our manufacturing there has been no difference between Europe and the rest of the world. There are of course individual circumstances and individual companies where there have been ups and downs. That is business, but, overall, we are very clear that our SMEs have a great appetite to export. We need to get more of them exporting—as I said, 300,000 out of 2.5 million VAT-registered companies do so; I personally feel that we should push that up to half a million. We can do that, especially with the new digital industries coming through. Certainly, I would be very happy to introduce the noble Baroness to a number of the export champions today. Some of them are actually bringing manufacturing back—onshoring manufacturing —to the UK following Brexit. That is a very pleasing development.

[Lord Bellingham (Con)]

My Lords, I thank the Minister for his optimistic and dynamic Statement about the economy and these trade figures. Can he confirm again that the UK’s exports are at an all-time high? The UK is the largest net exporter of financial and insurance services in the world. Those are surely staggering figures, and all of us ought to make more of them.

Can I ask the Minister to refer again to the new border checks that will be put on animal and plant products, as raised by the Lib Dem spokesman a moment ago? A number of trade associations estimate that these new checks will cost in the region of £2 billion per year. I think we all agree that there needs to be no let-up in the maintenance of standards and that we need consistency across Europe, particularly post-Brexit —farmers and the rural community will demand nothing less. However, is there not an argument for looking at more of a light-touch regime and relying on spot checks based on intelligence-led—perhaps communications intelligence-led—policing of individual consignments rather than imposing this very large potential blanket burden?

[Lord Offord of Garvel (Con)]

That is exactly the regime being implemented. We might even consider that some of the delays in implementing the regime are precisely for that reason—to make sure that it is light touch and not a blanket position.

We have a very interesting future on the border, largely because of the Northern Ireland situation. We had to solve the problem of how to make a meaningful trade border without recreating a hard border. The only way to do that is digital and through self-certification and pre-checking. Hence, we have ended up with the green lane and red lane and the trusted trader system—which the rest of the world is now going to adopt—where you pre-certify your goods and check them before they go through the border. The CEO of the Channel Tunnel recently said that trade is moving through the tunnel faster than when we were in the EU, because it is all on a QR code on the phone that is pre-checked and pre-certified. You certify where it is going to and what goods need to be checked. The checking being done is therefore on a confirmatory basis—an exceptional basis—and not on a blanket basis. If we include the Electronic Trade Documents Act and the single trade window, the direction of travel in the next five years will be to collapse trade very quickly into, in effect, a digital passport, which will speed things up considerably.

Yes, there will be costs in putting in place a border, but I can see you and raise you on the benefits that will come from a digital border.

Economic Growth (Regulatory Functions) (Amendment) Order 2024

Lord Bellingham Excerpts

Monday 15th April 2024 Lords Chamber

[Lord Bellingham (Con)]

I am grateful to the Minister for giving way, as I understand that it is not normal practice for Ministers to give way in a debate like this. I would be grateful if he would look again at the point made by the noble Lord, Lord Fox. I know a bit about the Wye Valley and the damage that has been done by the excessive number of nitrates going into the river. It was not so much that all those poultry producers were breaking the law; it was the sheer scale of those operations that was having such an impact. Could the Minister comment on that particular point?

[Lord Johnson of Lainston (Con)]

I am grateful to my noble friend for the intervention. I did not realise I did not have to give way; my newness to the House probably insisted that I did so.

What is important is that we were discussing the guidance on growth for 52 or 53 regulators. This is not a debate about the Wye Valley. I have heard what the noble Lord, Lord Fox, said about that situation. I understand that the Government have announced this week an action plan and full review. I am delighted that this is a good example of where there is cause and consequence.

I want to bring us back to the guidelines. It is important that a functioning economy allows all stakeholders to operate in it. Clearly, that is the whole principle. If there is one stakeholder that is dominating its universe through its own actions, that is unacceptable in terms of creating the trust and framework we need in the market.

I return, in conclusion, to what has been a very important debate. I hope it will continue to be an important debate. I stress again that in four years we will have a full review of the growth duty so that we can see how it has been successful. One of the questions asked was: how soon will we know whether it has been successful? I hope it will start to show economic growth, in some of the points I will come to in a moment, immediately. We will certainly do a review after four years. There will be an explicit focus on ensuring that areas such as the derogation of consumer rights, the environment, or whatever it may be, will clearly be included in this.

I will touch on two final points because it is good to have this on the record. Regulators should have regard to medium- and long-term growth—not necessarily short-term growth or the profitability of the actions of any one company—by ensuring that key policy decisions and strategic choices are informed by consideration of key drivers of economic growth. This may include, but is not limited to, innovation, infrastructure and investment, competition, skills, efficiency and productivity, trade, and environmental sustainability, which I have touched on before. That is very important because, if you are running a business, you want to produce phenomenal products for the future of our nation. All too often we have had issues with regulators and the Government being slow to regulate on the innovative products we need to make this economy successful, both for our health and the economy around that.

How many times have businesses come to noble Lords—not all of your Lordships will have been approached by businesses, but many will—to complain about the lack of transparency around the regulator’s decision-making or the timeliness of its response on permitting, or to suggest that international standards could be used or that our own standards could be improved on, or to ask for more skills in regulators or for regulators to help them be skilful? It is so important that we respond to this. I am aware of the comments made around the water industry, and I hope that, to some extent, I have reassured noble Lords that this in no way derogates our responsibilities and abilities to act.

National Minimum Wage Legislation

Lord Bellingham Excerpts

Thursday 21st March 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

One of the sanctions available to the Government is the naming and shaming scheme, which is very successful. We have a large number of companies which have been subject to that, and we have therefore increased greatly the number of companies complying as a result. When HMRC finds employers which breach this, it can impose a penalty of up to 200%; the penalties are severe for companies which do not comply.

[Lord Bellingham (Con)]

My Lords, the Minister pointed out the work by the HMRC national minimum wage enforcement team, and the general consensus is that it is doing an effective and professional job. Does it concern him that 95% of the 65,000 HMRC staff are working from home at least one day a week? Can he tell the House whether this is hampering effectiveness?

[Lord Offord of Garvel (Con)]

I thank my noble friend for his question. There are a number of bodies that enforce our employment laws in the UK. Obviously, HMRC is the body that oversees the national minimum wage; my department, DBT, ensures that agency workers are well protected; and within the Home Office, we have the Gangmasters and Labour Abuse Authority. So we have three very effective regulators, which are well funded, and we continue to pursue, name and shame, and impose penalties on companies that do not respect the law.

Post Office Horizon: Compensation and Legislation

Lord Bellingham Excerpts

Tuesday 27th February 2024 Lords Chamber

[Lord Johnson of Lainston (Con)]

I am genuinely grateful to the noble Lord for that point. I agree in many instances. Governments—or the state, as he rightly said; this is not party political or individually associated —and large bureaucratic machines find it difficult to accept fault. I think that there are fears of precedent-setting and financial conversations. Indeed, for those in the wrong, quite rightly there are the principles we are debating today—with significant cost to the citizenry of this country, as well as the reputational damage and other issues we have inflicted on the individuals, both those involved and those who have suffered the consequences.

Unquestionably, there will be—and rightly so—a significant discussion about how arm’s-length bodies of this nature are managed by government departments and Ministers, and how those Ministers are then called to account by Parliament. The issue, probably over the last 30 years or so, has been a culture of creating more and more arm’s-length bodies, the virtue of which seems to be their so-called independence. At a time when there should have been higher degrees of scrutiny, the culture was the issue, not necessarily the governance processes, because the governance is there in many instances. In the case of the Post Office, the Government is the only shareholder, so they were clearly in the line of slight; of course, the Post Office was also being heavily subsidised by the Government. In many instances, the structures are there, but the culture around the so-called ability for Ministers to interfere or take a greater degree of scrutiny, interest and responsibility has been reset. I think there is a significant view that a review of how those governance processes work in a cultural sense is absolutely right. We should be aware of the chilling power of bureaucratic indifference—we certainly are; it is something I take very seriously in my own role.

[Lord Bellingham (Con)]

My Lords, I speak from the experience of a former MP who represented a number of sub-postmasters and sub-postmistresses. There were two in particular in my constituency who, with hindsight, we know were wrongly accused, but they simply handed their leases in and left. Their lives were turned upside down and ruined. Across the whole country, there must be many more in that position who have not appeared on the department’s radar screens. Can the Minister say what can be done to help that cohort? How can we find ways of stopping them being ignored? Can he find a way of including them in the scheme?

[Lord Johnson of Lainston (Con)]

I thank my noble friend. Absolutely, we can compensate only people who come forward. In the different pools, a large number of people who have been identified have not submitted claims for compensation yet. That makes some of the data look as though we have not been responding, when that is not in fact the case. We are here to respond, we are keen to respond, money has been allocated to respond, and we want to make sure that we do the right thing and redress those cases.

My ask to all Members of this House, if they have former constituents, neighbours or people of their association whom they believe should be entitled to compensation, is to ask them to come forward. There is no final date. The closing date has been removed— I think there was supposed to be a closing date in August this year. Clearly, we do not want this to go on for ever; we want people to come forward and get the compensation that is right. I press people to spread the word.

Workers’ Rights

Lord Bellingham Excerpts

Thursday 23rd November 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

I thank the noble Lord for his question. I believe that, over the last 13 years, we have made significant and wholehearted reforms to workers’ rights legislation to ensure that they are properly protected. On the matter that he specifically referred to, we launched a consultation on repealing Regulation 7 on 16 November. It will remain open for eight weeks, and I very much invite his participation in the process, which will finish on 16 January next year.

[Lord Bellingham (Con)]

My Lords, does the Minister agree with me that rights are of course important but, as I know from my experience as an MP for 32 years, what workers want most of all is improved pay? Does he welcome the increase in the national minimum wage from £10.42 to £11.44, which is a significant move?

Electronic Trade Documents Act 2023

Lord Bellingham Excerpts

Thursday 14th September 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank my noble friend for that. The purpose and intent of the Act is to give equal weight to paper and digital proof of ownership—bills of lading, letters of credit et cetera—so they can be in either form. On the legal regime, the Bill is modelled on the United Nations law, so it comes from, as it were, a higher authority, but through custom and practice and mercantile law over the last 300 years or so, maritime law is governed largely under English law. There is therefore an easy adoption and an understanding that mercantile trade can continue under English law. As the rest of the G7 countries come forward and adopt similar legislation, I am sure we will find alignment in these matters.

[Lord Bellingham (Con)]

My Lords, the Minister and his colleagues need to be congratulated on making sure that the UK is very much in the lead. He mentioned that the UK would encourage other countries to make sure that their systems are moved on to a digital and electronic platform. Which international organisations will he work with to ensure that this is encouraged and happens? One point puzzled me: why does Part 1 refer only to Scotland?

[Lord Offord of Garvel (Con)]

I will take my copy of the Act here to refer to. In terms of international bodies, this has come through the UN system and the major body we are working with to get to businesses directly is the International Chamber of Commerce. On the small jurisdictional point in relation to Scotland, under the devolution settlement Scots law needs to be separate from English law—although it is largely the same when it comes to mercantile. There is a provision in the Act to make sure there is alignment between Scotland and England.

Industrial Strategy

Lord Bellingham Excerpts

Tuesday 20th June 2023 Lords Chamber

[The Earl of Minto (Con)]

My Lords, I quite agree with the noble Lord about the success of the announcement from JLR. It is extremely important that we continue to invest in all sorts of technologies and advances. We are continuing to see investment into that sector. As for where the tipping point comes, I am not quite clear. But I will go back and write to the noble Lord with specifics.

[Lord Bellingham (Con)]

My Lords, is the Minister aware that only 15% of SMEs actually export? If that figure could be increased substantially, maybe to 20% or 25%, it would not only create a lot of jobs but help our balance of trade and be a crucial part of our industrial strategy.

[The Earl of Minto (Con)]

I entirely agree with my noble friend. I assure him and the whole House that the Department for Business and Trade is specifically making it easier for small and medium-sized enterprises to consider and go through the process that they fear is difficult—and in fact is not so difficult—to start exporting, to the benefit of all.