Queen’s Speech

Lord Rana Excerpts

Wednesday 25th May 2016 Lords Chamber

[Lord Rana (CB)]

My Lords, I will address the criminal finances Bill and the soft drinks levy, included in the gracious Speech.

After the revelations of the Panama papers, it is all too clear that we must do more to tackle corruption not just in the UK but globally. Some of the UK’s overseas territories facilitate individuals and companies in avoiding tax and allow corrupt leaders and politicians to hide their ill-begotten wealth. The noble Lord, Lord Chidgey, mentioned in his speech yesterday that London is considered by some as the money laundering capital of the world. That must change and we must act against corrupt individuals from abroad who hide their stolen wealth by buying property in London and who settle here mostly with immunity.

I am glad that the UK is now leading in its attempt to tackle corruption on a global scale, and I welcome the criminal finances Bill. It was only a few weeks ago when we hosted the global anti-corruption summit. I hope that the Government’s proposals to reform crime legislation on illicit money and strengthen the UK’s anti-money laundering regime will be translated into unexplained wealth orders. Such measures would reverse the burden of proof on to the suspect and would be a vital step for tackling corruption. Equally, I am heartened to see the Government’s efforts to introduce a corporate offence for tax evasion. This would mean firms would be required to bolster measures against money laundering and corruption.

Strong legislation must have capable enforcement. HMRC is currently making cuts of £100 million, including the closure of 137 offices, and the Office for Budget Responsibility report on this year’s Budget noted that it was not able to follow up on disclosure in tax havens due to underfunding. Similarly, opacity in our overseas territories will continue to hinder progress on corruption unless it becomes more transparent. The Government must resist vested interests that would seek to water down these proposals. Corruption has stymied the development of many Asian and African nations and, of course, those in many other parts of the world. Economic development of these countries would be a great benefit to us all.

I also welcome the Government’s soft drinks levy. Such legislation is an important step in tackling obesity and the unhealthy diets that contribute to it. It has been found that one in three children between the ages of two and 15 is obese, and that 20% of the NHS budget is spent on dealing with health problems that are a direct result of unhealthy lifestyles. However, if the logic of the sugar tax is to help tackle the growing health problems in the UK, it is sad to see that other measures are not included. Why are there no other proposals on high-sugar products, such as chocolate and confectionary? The soft drinks levy should be the beginning rather than the end of financial legislation and seek to promote a healthy lifestyle. But fiscal measures alone cannot solve our health problems. Legislation must be complemented by education on a holistic approach to healthy living. India has long practised this through Ayurveda and yoga. Such practices would save lives and money in the long run. Last year, 21 June was declared International Yoga Day by the UN.

Finally, there has been a lot of debate about the implication of the referendum on the UK’s economy. I believe that the world is more interconnected than ever before and that to pull out of the European Union would be an unbelievable risk. However, whatever the result of the referendum, we need to make more consistent efforts in developing our trade relations with the Commonwealth countries. The Commonwealth is undervalued and underutilised. Despite the economic recession in many developed countries, many Commonwealth countries such as India are growing at around 7% per annum. This offers a unique opportunity for the UK to partner with the development process and it would be a win-win situation for all—promoting growth that looks forward to the future and builds on our shared past.