Public Procurement and the Civil Society Strategy

Lord Young of Cookham Excerpts

Thursday 23rd May 2019 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, I begin by thanking my noble friend Lady McGregor-Smith for initiating and introducing this important and timely debate, and thank all noble Lords who have taken part. It is has been a well-informed, consensual and thoughtful debate on a subject that, as many noble Lords have said, is not often discussed. It has been particularly helpful to the Government, since our policy is, as I shall explain, in the process of development.

To sum up the debate, the view is that what we have done is good, but we need to do more, and do it better and faster; that is the message I shall take away. My noble friend Lady McGregor-Smith produced an ambitious menu of reforms, which we take seriously. If I do not address them all, I shall write to her. I know that this subject has been one of her special interests for some time and I very much welcome her input.

My noble friend Lord Maude should be answering this debate as he knows much more about it than almost anyone else. I would like to say how much I welcomed his input when I was working with him. He secured very real changes, reforms and savings in public procurement when he was in office. He reminded me of how things have changed since I was first a Minister some 40 years ago. I remember the narrowly focused, time-consuming, bureaucratic tendering. What a contrast that is with the changes he has introduced: the more flexible, market-oriented approach, which enables the taking account of social value. As he said, he has put this into the DNA and the genes are doing well as they flow around the system. He identified the barriers to entry: the performance bonds, the tender documents and the three-year requirement to produce accounts that have historically stopped some of the SMEs getting involved. I will say a word about that in a moment.

My noble friend mentioned public service mutuals. I remember him championing these in the health service when he was in office. They have an important role to play in delivering high-quality public services. At the moment there are 115 mutuals operating in diverse sectors from health to libraries, delivering approximately £1.6 billion of public services. In January last year, the DCMS launched a package of support worth £1.7 million to help new mutuals to emerge and existing ones to grow and flourish.

My noble friend also asked about the Commissioning Academy, a development programme for senior decision-makers across the public sector. It supports participants to learn from best practice across the country and is a key component in the culture change that many noble Lords have been advocating. We continue to provide leadership through the Commissioning Academy, working with the social enterprise PSTA—the Public Service Transformation Academy. The DDCMS has worked with the PSTA to ensure good commercial practice, promoting early engagement with the market, contract management, and social value.

I was interested in what my noble friend and the noble Lord, Lord Wallace, said about local commissioning and a cross-government approach. Again, perhaps I have been in government too long, but I remember the Property Services Agency, which owned the government estate and the Government Car Service. That was able to look at a town such as Horsham, then look at the totality of the government estate—the DHSS and all the other departments—and engage local contractors. After a time, government departments thought this was a remote, bureaucratic and expensive organisation and demanded autonomy, because we charged them quite a lot to change a lightbulb. It was devolved to local departments, which then discovered that they were all having to replicate particular skills and were losing the ability for local commissioning. We now seem to be moving back towards the PSA model, on which I have an enormous wealth of experience.

My noble friend and one or two other noble Lords mentioned the liquidation of Carillion. That has been used by some, although not in this debate, as a case for stopping the outsourcing of the delivery of public services to the private sector. The Government’s view, and that of previous Governments, is that the private sector has a vital role to play in delivering public services in this country, bringing a range of specialist skills, world-class expertise and deeper knowledge to bear. As we have heard, the public sector is the largest purchaser of goods and services in the UK, spending over £250 billion on procurement. Central government alone accounts for £49 billion of that figure.

As we have heard, there is so much more that the Government could do to create and nurture a vibrant, healthy, innovative, competitive and diverse marketplace of public service suppliers, with values at its heart, where wider social benefits matter and are recognised. This is reflected in the Civil Society Strategy, mentioned by my noble friend, which was published last year. It commits the Government to use their huge buying power to drive social change by championing social value through their commercial activities and levelling the playing field for all types of businesses, including small businesses, voluntary and community-sector organisations and social enterprises—a theme mentioned by many noble Lords in this debate. In turn, that would encourage employment opportunities, develop skills and improve environmental sustainability.

The Public Services (Social Value) Act 2012 already places a requirement on relevant contracting authorities to consider in respect of procurement for services: first, how the economic, environmental and social well-being of the relevant area may be improved by what is being procured; and secondly, how, in conducting the procurement, they might act with a view to securing that improvement. Contracting authorities must also consider whether to consult the market on these issues before the procurement process starts. There have been a number of suggestions during our debate about how that Act might be amended.

I confess to noble Lords something that may already be apparent: that this is a subject with which I was less than familiar before my noble friend tabled the Motion and it fell to me to reply to it. I am a lot wiser after this debate. To get my mind around what was going on, I asked officials for an example of how incorporating social value in the tendering process would lead to a different outcome. They came up with a Ministry of Defence contract with Future Biogas and the energy company EDF to develop an electricity supply for RAF Marham in Norfolk. The MoD could have taken the conventional lowest-price approach, without considering the social, economic and environmental benefits that could flow to the local area, but did not. Instead, it engaged up front with the supply market and developed an ambitious social value plan.

The airbase will now get 95% of its electricity from biogas generated by fermenting crops grown by local farmers, an option which did not exist before the engagement. This will directly save £300,000 a year on electricity costs, but there is more to it than that, which is what struck me. The fuel is a green and sustainable solution, helping to tackle climate change. Locally grown crops will power the plant, supporting the local rural economy and ensuring continued business and employment in the area. Building, running and maintaining the anaerobic digestion plant supports skilled, long-term employment opportunities in Norfolk. Future Biogas employs five highly skilled engineers on site and an apprentice who started a four-year apprenticeship at the end of 2018, and an agricultural contracting business supporting the plant has increased its full-time employees by five and seasonal staff by a further 10. As part of an improved crop-rotation regime, soil quality is boosted and the weed and pest burden lessened, and the digestate output from the plant is a sought-after organic fertiliser, improving yields of food crops and locking up carbon in the soil.

I found that a very helpful illustration of the case for social value and it is that sort of lateral thinking that we want to promote. Other cases were included in the helpful briefings sent to noble Lords for this debate. My noble friend Lady McGregor-Smith mentioned Crossrail, as did my noble friend Lord Pickles. The important thing about RAF Marham is that it is in the Chief Secretary’s constituency. There have been one or two comments about the potential inflexibility of the Treasury in taking social value on board. Perhaps she has now been persuaded by that local example.

In June last year, the Chancellor of the Duchy of Lancaster announced the Government’s intention to extend the application of the 2012 social value Act in central government. While the Act currently requires commissioners to only “consider” social value while awarding contracts, the new proposals will strengthen this further by making it an explicit requirement in central government contracts with the private and third sectors. This work to extend the application of the Act across all central government procurement represents one of the most significant changes in public procurement in recent years. It will ensure that contracts are awarded on the basis of more than just price, looking, as all noble Lords have suggested, at a contract’s social impact too, and giving firms much-deserved recognition for their positive actions in society.

The objective for the Government’s commercial activities will always remain achieving good commercial outcomes for the taxpayer. However, it is right that commissioning and procurement should support social outcomes as well, providing that these outcomes are relevant and proportionate to what is being procured.

A number of noble Lords, including my noble friend Lady McGregor-Smith and the noble Lords, Lord Shipley and Lord Stevenson, wanted the Government to increase the minimum weighting for social value in central government procurement awards from 10% to 20%—or up to 50%, in her case. As mentioned, we launched a consultation paper in March. One of the areas on which we are seeking feedback is whether a minimum 10% weighting is appropriate. The 10% weighting was developed with input from supplier representatives; we are genuinely consulting on this and have an open mind. It is important that we change at a rate that suits each sector. In particular, we want to prevent barriers to entry for SMEs.

The noble Lord, Lord Haskel, and my noble friend Lady McGregor-Smith were worried that public procurement favours large companies. I will say a word about that in a moment. The expanded use of the social value Act is widely recognised as a measure that will encourage greater diversity in public sector supply chains.

The noble Lord, Lord Haskel, warned me that he would raise BSI 95009. The standard is aimed at public and private sector buyers, and proposes a framework for those in procurement to demonstrate or assess trustworthiness, transparency and ethical practice. The Cabinet Office is in discussions with the BSI. We have not yet endorsed the standard, but will consider it most important to ensure that we do not burden suppliers unnecessarily—a point I made earlier—and create barriers to entry for SMEs.

The noble Lord, Lord Shipley, asked if we would show leadership on social value by committing to producing an annual social value budget, showing how much social value has been created by central government procurement each year. On 25 January last year, the Chancellor of the Duchy announced the Government’s intention to extend the application of the social value Act in central government departments. This included a requirement to report on social value.

A number of noble Lords, including the noble Lord, Lord Shipley, asked if we would expand the social value Act to cover goods and works as well as services, so that the value of every penny of public money is maximised. As part of the joint Cabinet Office and DCMS programme of work, central government departments should apply the terms of the social value Act to goods and works, as well as services. There will be markets common to both central government and the wider public sector so it will have a broader impact.

The noble Lord, Lord Shipley, asked whether the social value criteria were compulsory and whether the Government will be using them. The new social value framework will be mandatory for central government departments, their executive agencies and non-departmental bodies for procurements subject to Part 2 of the Public Contracts Regulations.

[Lord Shipley]

My query specifically related to whether it was simply advisory for local government or whether local government should be required to do what central government departments do.

[Lord Young of Cookham]

My understanding is that it is advisory, because it was not included in the mandated list I just read out. If I am wrong I will write to the noble Lord.

The noble Lord asked why the strategy guidance has not been issued and whether we will produce a quick guide on it. We actually published guidance on how to work with central government, including social value, working with the VCSE Crown representative Claire Dove. The DCMS and the Cabinet Office are working with the advisory panel to understand the needs of the sectors and to prepare for the changes to social value. We will work with the sector representative bodies to produce the guidance the noble Lord just asked for.

The noble Lord asked for an annual report on social value procurement. Again, in his announcement in June last year the Chancellor of the Duchy of Lancaster included a requirement for central government departments to report on social value.

I was asked why large government contracts are out of scope for social value procurement. The answer is that the balanced scorecard is already in place to cover procurement of over £10 million. That already covers socioeconomic factors. The new social value framework covers everything below £10 million and above the Public Contracts Regulations threshold.

[Lord Stevenson of Balmacara]

On that point, use of large construction contracts was particularly mentioned. Could the noble Lord take that back and consider it further? The point is not so much the value of the goods and services concerned, but the point made by the Equality and Human Rights Commission—that the impact on employment and the way it is inclusive of a diversity of employees and on apprenticeships and training is so great that the sheer numeric value cut-off was limiting the effect of the social value Act. Would he consider that again?

[Lord Young of Cookham]

I will reflect on that. I understand exactly the point that the noble Lord makes and that there would be value in extending it upwards. Perhaps I will write to him when I have taken advice on that.

We would be very happy to discuss the network of social value champions with partners in the sector.

One of the main themes emerging from the debate has been the need for the Government to encourage as wide a range of suppliers as possible to deliver the objectives we have been discussing. We remain fully committed to supporting small and medium-sized enterprises and the voluntary, community and social enterprise sector, and indeed helping the mutuals that my noble friend referred to. Our work with sector bodies and individual companies through the Crown representative network will continue, unlocking more opportunities for smaller businesses and those owned by underrepresented groups, as well as mutuals and charities.

Initiatives around prompt payment, simpler bidding processes, better visibility of opportunities in the supply chain and the Public Procurement Review Service have all been established to stimulate SMEs and VCSE organisations as the lifeblood of the economy. Our approach underpins this. I understand the point made by my noble friend Lady Finn and the noble Lord, Lord Stevenson, about prompt payment. I believe prompt payment is a condition of any public sector contract. If a contractor does not promptly pay he runs the risk of being removed from the list of approved contractors. I was interested in the noble Lord’s suggestion that the Small Business Commissioner might have his energies harnessed in this area. I will certainly reflect on that.

With the Crown representative for VCSEs we are producing supporting guidance for smaller organisations bidding as part of consortia, and have helped buyers to better understand how they can level the playing field for SMEs and VCSEs in our introductory guidance on the social value Act. In line with best practice in policy-making, we are piloting the outline framework to see how it will be applied in practice and to help formulate the guidance on evaluating bids fairly and consistently. Two of these pilots are for major national contracts and one is a national framework agreement. Let me be clear that, in doing so, the Government are absolutely committed to ensuring it does not add complexity or cost to the procurement process. We do not want to restrict markets or exclude small businesses and voluntary, community and social enterprise organisations from government contracts.

It is always the misfortune of the Opposition spokesman to have the answers to his questions arrive right at the end of a debate. I am afraid that misfortune has fallen once again on the noble Lord, Lord Stevenson. I will convert the handwritten notes I have in front of me into something legible and typed up and write to the noble Lord to deal with the issues he raised about instilling social value procurement, what steps we are taking to create a standard definition, how this will link to the public sector equality duty, which is an important point that he raised, and how we will make Whitehall a leading partner in social procurement.

We want to see more good practice and to accelerate the opportunities available for the UK’s small businesses and VCSEs. In the words of I think my noble friend Lady Finn, we want to put social values at the heart of service delivery. This new approach is the next step in our journey of transforming how the Government are delivering smarter, more thoughtful and effective public services. We will utilise our huge purchasing power to deliver on our promise of a fairer society that works for everyone.

Electoral Commission: Referendums and Elections Spending

Lord Young of Cookham Excerpts

Thursday 23rd May 2019 Lords Chamber

[Lord Foulkes of Cumnock]

To ask Her Majesty’s Government what assessment they have made of the powers available to the Electoral Commission to deal with breaches of spending rules for referendums and elections.

[Lord Young of Cookham (Con)]

My Lords, the Government are considering recommendations from the Electoral Commission on whether it should be granted more powers. Political parties vary considerably in size and professionalism, so regulation should be proportionate and not undermine local democracy or discourage engagement. We are also reviewing the commission’s report Digital Campaigning, the Information Commissioner’s recommendations on the use of data in politics and the DCMS Select Committee’s inquiry on fake news.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, I am grateful to the Minister for his helpful Answer as usual, but has he seen that the fines imposed on Vote Leave and Darren Grimes by the Electoral Commission have been upheld in the courts? Given that their misdemeanours have resulted in the paralysis of the Government for three years and our moving towards a disastrous no-deal Brexit, surely the Electoral Commission should have more powers to send people to jail and to declare such fraudulent referenda null and void.

[Lord Young of Cookham]

The Electoral Commission’s annual report for 2017-18 shows that it issued £126,625 in fines and penalties. Penalties were imposed in 86 cases, £30,000 being the highest charged to any one party, with a further two of over £10,000. As the noble Lord will know, for more serious criminal offences the Electoral Commission can refer the matter to the police and to the National Crime Agency—which it has done—and if anyone is convicted, then the maximum fine is unlimited. So the potential exists to go above the Electoral Commission’s powers. I do not accept his suggestion that we should rerun the referendum, which resulted in a 1.3 million majority of one side over the other. We should accept it; and I do not accept that it has led to the total paralysis of the Government.

[Baroness O'Neill of Bengarve (CB)]

My Lords, this is the fourth Question that the Minister has answered in this general area during the past week. Although his Answers are detailed and useful, they do not seem to reflect the urgency of the issues. We cannot sit here saying, “Oh, there are consultations and consideration of these problems going on”, because we may face a referendum or election before many of us would wish. We would not wish that election or referendum to be corrupted, as is possible with the range of regulatory powers that our Electoral Commission and our Advertising Standards Authority have.

[Lord Young of Cookham]

I accept what the noble Baroness has just said. As I said earlier, were there to be another referendum, there would have to be primary legislation as there was with the last referendum. Noble Lords would have the opportunity to change the law if they felt it was defective in the way that the noble Baroness has indicated. On the other matters, we are taking action. We issued a document earlier this month on the intimidation of voters and candidates, and we are taking action on digital imprints. We are making progress on a number of key issues to uphold the integrity of our electoral system.

[Lord Cormack (Con)]

My Lords, my noble friend has said several times that there is a little bit of spare time to do things. This is such an important issue, and as we have his guarantee that the Government are not suffering total—though perhaps partial—paralysis, can we please have a debate when we come back on this general issue which affects us all?

[Lord Young of Cookham]

I notice the impassive face of my noble friend the Chief Whip, who of course has great influence on what issues we discuss. He will have heard my noble friend’s suggestion, and I know that he will want to discuss it through the usual channels.

[Lord Wallace of Saltaire (LD)]

My Lords, the Minister said that political parties “vary considerably”. Their finances also vary considerably, and one of the structural problems in British politics is that the Conservative Party is now able centrally to raise so much more finance than any of the other parties. I recognise—as a member of a party which has activists under the age of 50 and is therefore able to deliver its own leaflets without having to pay others to do so—that it needs some of this. But is it not urgent that financing that comes into the centre of the Conservative Party should be carefully examined to eliminate those large donations that come from people who are not domiciled in the United Kingdom or are not British citizens? Is it not also urgent that the rules be tightened to allow central spending to be directed to particular constituencies and thus get round the limitations on constituency campaign funding?

[Lord Young of Cookham]

On the last point that the noble Lord raised, there was a court case relevant to this. The Electoral Commission is now in the process of issuing guidance which will give clarity to what scores against the local candidate’s expenditure and what should score against the party’s national expenditure. I hope the noble Lord welcomes that. I was relieved to hear that my party now finds it so much easier to raise money than any other party; this will come as welcome news to the party treasurer. So far as donations to the party are concerned, my party tries to stick rigorously to the rules—as I am sure all parties do. If an impermissible donation is presented, we are obliged to return it within 30 days.

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I thank the noble Lord for offering yesterday to speak to the Minister for the Constitution to seek another meeting to discuss these important matters further. Could the noble Lord also consider the need for a thorough review of the powers, functions and purpose of the Electoral Commission? Maybe that could be part of our future discussions.

--- Later in debate ---

[Lord Young of Cookham]

Following our exchange yesterday, I have been in touch with the Minister for the Constitution and he has agreed to the meeting that was discussed. It took me 24 hours to agree to that proposition; the noble Lord may think he is on a roll when it comes to the second one. So far as that is concerned, the Government have regular contact with the Electoral Commission on a range of issues, including its powers, and we keep those matters under review.

[Lord Forsyth of Drumlean (Con)]

My Lords, in his contacts with the Electoral Commission, could my noble friend encourage it to consider the issue of collusion between trade unions and the Labour Party in campaigning in general elections? Expenditure made by trade unions in campaigning should be accounted for as part of the Labour Party’s contribution.

[Lord Young of Cookham]

The Electoral Commission will have heard the suggestion from my noble friend, which aroused some excitement on the Benches opposite. I am sure that all political parties want to abide by the law, and declare donations as appropriate.

Political Parties: Donation Rules

Lord Young of Cookham Excerpts

Wednesday 22nd May 2019 Lords Chamber

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what plans they have to review the donation rules for political parties.

[Lord Young of Cookham (Con)]

My Lords, on 5 May the Government announced a consultation on safeguarding UK elections. Recommendations for closing loopholes on foreign spending in elections and preventing shell companies sidestepping the current rules on political finance could be addressed in the consultation. The Government will take the views of interested groups such as the Parliamentary Parties Panel and the Electoral Commission to better understand the problems that we could seek to address in the consultation.

[Lord Kennedy of Southwark (Lab Co-op)]

I thank the noble Lord for that Answer. He is highly respected in this House and, more importantly in this case, in his party. The Government often come out with consultations but we really have a problem in this country with our electoral law, with law governing political parties, with donations, loans and everything else in this area. Can he give an assurance to the House that, despite other problems, he will do everything in his power to make sure that we address this urgently?

[Lord Young of Cookham]

I am grateful for the consensual approach adopted by the noble Lord. Quite recently he attended a meeting with me, the noble Baroness, Lady Kennedy, my noble friend Lord Hayward, the noble Lord, Lord Rennard, and, I believe, the noble Lord, Lord Stunell, at which we sought to see whether there was a consensus on some of the challenges facing the electoral system. Subsequently, a meeting was held with the Electoral Commission. I would be more than happy to contact the Minister for the Constitution, who was also at that meeting, to see whether it would be helpful to have another round-table discussion to identify areas of consensus and to see whether we can make progress in developing a rigid and credible electoral system.

[Lord Wallace of Saltaire (LD)]

My Lords, if we are to re-establish trust in where money for politics comes from, we need to have answers to challenges fairly quickly. It is now nearly three years since the last referendum and we still do not have any indication of where the largest donation to the Vote Leave campaign came from and whether it was legitimate or illegitimate. Should we not somehow provide extra resources immediately for the Electoral Commission and all those investigating what are potentially criminal acts to make sure that we have answers as quickly as possible, if not during the campaign then at least soon afterwards?

[Lord Young of Cookham]

The noble Lord will be aware that some cases concerning the Leave.EU campaign have been referred to the police. On his question about resources for the Electoral Commission, the last time he asked me that I pointed out that there had been an underspend. Since then, the Electoral Commission has put in an increased bid for next year of, I think, 11% for resource expenditure and 18% for capital expenditure. That has been approved by the Speaker’s Committee on the Electoral Commission, because it is that committee that finances the Electoral Commission, not the Government. It has yet to be ratified by the other place but I hope that it will be. That would give the Electoral Commission the resources that it needs, to which the noble Lord referred.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, is my noble friend aware that there is a Law Commission Bill on electoral reform which is, as they say, shovel-ready? It has many important changes in it and, being a Law Commission Bill, is relatively uncontroversial. Could we not find time to bring it forward to remedy some of the deficiencies in our electoral law?

[Lord Young of Cookham]

As I said on Monday, there appears to be some headroom in the Government’s legislative programme at the moment. Sitting beside me are two members of the relevant Cabinet sub-committee that processes bids for legislation and they will have heard my noble friend’s suggestion. Were there to be such a Bill, I hope that it would be taken through by law officers and not by me.

[Lord Forsyth of Drumlean (Con)]

My Lords, given that the largest ever political donation to the Liberal Democrats was given by a convicted fraudster, Mr Michael Brown, and that they refuse to return that money to the people who have been defrauded, will my noble friend look at the law to see whether we should require political parties who have been given money by convicted criminals to return it on behalf of those who have lost out?

[Lord Young of Cookham]

That was a slightly less consensual approach from my noble friend than that from the noble Lord, Lord Kennedy. If we did go down that road, I doubt whether any legislation would be retrospective. I suspect my noble friend would agree. It would be for the Electoral Commission in the first place to put proposals forward for such legislation.

[Lord Leigh of Hurley (Con)]

My Lords, I refer to my interests as a senior treasurer of the Conservative Party. Does my noble friend the highly respected Minister agree that, unless we want political parties funded by taxpayers, there needs to be a sea change in the way that donors to all political parties are treated and respected? There should be no discrimination against them, and they should stop being vilified in the national press.

[Lord Young of Cookham]

I agree. Political parties are an essential part of our democratic system. They give people choice at election time; they incubate and nurture the politicians who will run the country; and they provide a forum for political discussion and policy development. If they were not going to be funded by volunteers, they would be funded by the taxpayer, which would be a deeply unpopular suggestion. I applaud all those who, out of their post-tax income, subscribe to the political party that most accurately reflects their values. They should be applauded rather than denigrated. I am particularly grateful to my noble friend for the generosity that he has shown to my party.

[Lord Blunkett (Lab)]

My Lords, I welcome the Minister’s consensual approach, and there is universal applause for the way he handles himself. Would he consider putting himself forward for the leadership of the Tory party?

[Lord Young of Cookham]

I am deeply flattered by what the noble Lord has just said but I think it would be better if the leader of my party came from the other place.

[Lord Tyler (LD)]

My Lords, the Minister will be aware that, ever since the report of the CSPL some eight years ago, I have been putting forward draft legislation to deal with the problem that is now before us. Does he recognise that his colleagues in the Conservative Party will get a drubbing tomorrow precisely because, for so many years, they thought that this particular system was working to their advantage and have done nothing about it?

[Lord Young of Cookham]

Were my party to do badly tomorrow, I think it would be for reasons other than those the noble Lord has just given.

EU Referendum: Lessons Learned

Lord Young of Cookham Excerpts

Monday 20th May 2019 Lords Chamber

[Lord Dobbs]

To ask Her Majesty’s Government what plans they have to establish a Royal Commission or equivalent inquiry to examine the lessons to be learned from the 2016 European Union referendum and subsequent events.

[Lord Young of Cookham (Con)]

My Lords, the Government have no plans to establish a public inquiry on the conduct of the EU referendum. We continue to actively consider the recommendations made by Parliament, the Electoral Commission and others on the referendum and subsequent election, and recently responded to some of the consultations in our response to Protecting the Debate. We are determined to have an electoral system that is fit for purpose and enhances confidence in our democratic institutions.

[Lord Dobbs (Con)]

I thank my noble friend for that encouraging reply, but it seems that our constitution is becoming a bit of a parliamentary pantomime— Downing Street, the House of Commons, the Cabinet and even the Speaker are making it up as they go along. No one knows what to expect any longer. As for that solemn and binding promise to the voters before the last referendum—that they would decide—it is quite clear that our constitution is not only unwritten but unravelling. There is a growing suspicion that Theresa May is not a direct descendant of Erskine May. Will the Government accept as a priority the need to rebuild that trust which binds our constitution and which we politicians have thrown away? If not a royal commission, will my noble friends on the Front Bench at least consider allowing a full-scale debate in this House to get the ball rolling?

[Lord Young of Cookham]

My Lords, as I listened to my noble friend warm to his theme of trust, I asked myself whether his infamous depiction in House of Cards of the Government Chief Whip—a position I was privileged to hold—as a duplicitous, homicidal adulterer had enhanced trust in our profession. As for my noble friend’s question and request for a debate, he will have noticed that the Government’s legislative programme currently has a bit of headroom. I hope there will be time for a debate, and the usual channels will have noted his request. To answer his question more seriously, since the referendum there has been a serious issue of trust between the people and Parliament. It is well known that most of Parliament voted to remain and the people voted to leave, and the resultant deadlock has helped undermine confidence in our democratic institutions. My view is that we will not begin to restore trust until that deadlock is resolved one way or another.

[Lord Tyler (LD)]

My Lords, does the Minister recognise that members of all parties represented in Parliament share the concerns of the noble Lord, Lord Dobbs? We need to take them seriously, despite what the Minister just said. Surely, however, a royal commission is far too slow. Given that the 2016 leave campaign has been found guilty of breaking electoral law, and accepting that a further referendum may be required later this year, surely the Government will have to act much faster. As the Minister knows and has indicated, there is space for legislation at the moment. The legislation drafted by our cross-party group could be approved and receive Royal Assent before the Summer Recess, and then the poll could take place in September. However, does he not agree that effective regulation of campaign expenses should be agreed as a matter of urgency?

[Lord Young of Cookham]

Were there to be another referendum, as the noble Lord knows, there would have to be primary legislation first, so noble Lords would have an opportunity to amend it. Last time, the House of Lords changed the legislation for the referendum to make it more difficult for parties to act in concert. However, if the noble Lord wants a referendum, my advice to his party is that it needs to vote for the deal. Unless you have a deal, you cannot have a referendum, and the referendum does not just happen—you need a Bill. The right thing for the noble Lord and his colleagues to do is to vote for the deal and then seek to amend the Bill to see whether there is public support in the other place for a referendum.

[Baroness O’Neill of Bengarve (CB)]

Will the Minister recognise that we may have a referendum or an election before many would wish either to happen? Is it not prudent, therefore, to take some steps to regulate political advertising, both online and digitally, to try to get an imprint on every political advertisement and to bring political advertising back under the requirement to say who paid for it?

[Lord Young of Cookham]

I entirely agree with the noble Baroness. I welcome what Facebook has already done in identifying political advertisements on its system. A review of online advertising was announced on 12 February to look into what is called the advertising ecosystem. As regards digital imprints, I agree with the noble Baroness; we announced two weeks ago that we agreed in principle that there should be an imprint on digital advertising, as there is on printed material, and we are about to consult on exactly what that should cover and when it should be introduced. But again, were there to be a referendum in the near future, there would need to be specific legislation to deal with it.

[Lord Tomlinson (Lab)]

My Lords, I am not wildly enthusiastic about referenda—I was not enthusiastic the first time round and I am not for a second one. Would it not be better to take action now to create the circumstances in which we can have a proper national debate about what we want rather than what we do not want, which would best be facilitated by revoking Article 50?

[Lord Young of Cookham]

As the noble Lord will know, that is not the Government’s policy, nor would it be consistent with the decision of the electorate two years ago. To return to the first part of his question, I agree that we should have a debate. A good report on referendums was produced by the Constitution Unit at UCL, on which the noble and right reverend Lord, Lord Eames, sat, together with Jenny Watson, the chair of the Electoral Commission. There have been other reports on referendums, which I mentioned in my original reply. I agree wholeheartedly that we could have a useful debate. I am not in favour of a royal commission—we do not have time for that.

[Viscount Hailsham (Con)]

My Lords—

[Viscount Hailsham]

My noble friend has referred to deadlock. Does he agree that the answer to that is to hold a further referendum?

[Lord Young of Cookham]

I think I heard the question of my noble friend Lord Hailsham more clearly than the one behind me. I think my noble friend said that we should have another referendum. If he wants another referendum, and if there is enough support for it in the other place—which at the moment looks doubtful—everyone in the other place who wants another referendum should vote for the deal. They can then seek to amend the legislation to facilitate a referendum, but without a deal and without a Bill, you cannot have a referendum.

[Lord Tebbit]

Does my noble friend not agree that the most important thing to decide is that we should never again allow a Government to spend vast amounts of taxpayers’ money on the subject of the referendum immediately before they then declare the campaign open? We had Project Fear last time: a whole load of tax-financed rubbish designed to influence the outcome. That should be prohibited.

[Lord Young of Cookham]

I am not sure whether my noble friend is against referendums.

[Lord Tebbit]

No, I said government spending on one side.

[Lord Young of Cookham]

Ah. The legislation in the PPERA guaranteed that were there to be a referendum, there would be a certain amount of public support for both sides. I think my noble friend is referring to the leaflet issued by the Government. Again, that is in accordance with the legislation, which is exactly what happened in the 1975 referendum: leaflets were issued on the Government’s behalf setting out their view.

Banks: Fraud Prevention

Lord Young of Cookham Excerpts

Monday 20th May 2019 Lords Chamber

[Baroness Ludford]

To ask Her Majesty’s Government what further action they propose to take, and for banks to take, to prevent fraud perpetrated on bank customers.

[Lord Young of Cookham (Con)]

My Lords, in 2016, we set up the Joint Fraud Taskforce, including law enforcement, banks and government, to tackle fraud. It has already delivered on initiatives such as the banking protocol, which prevented £38 million falling into fraudsters’ hands and led to 231 arrests in 2018. The Joint Fraud Taskforce must build on its successes and not just make it more difficult for fraudsters to operate but bring them to justice.

[Baroness Ludford (LD)]

My Lords, I thank the Minister for that reply, but I am thinking more of action that banks could take. Let us hope that the, frankly, poor, often dismissive and hit-and-miss response by banks to defrauded customers truly is on the brink of change—and not before time. Since I tabled my Question, my bank, TSB, has issued its fraud refund guarantee, promising not to claim that customers authorised a payment when they fell for a scam. Will the regulator oblige all banks to follow suit?

A new voluntary code comes into force next week, offering the so-called confirmation of payee next year. Will legislation be brought forward if the voluntary code proves ineffective?

[Lord Young of Cookham]

The voluntary code that comes into effect next week will in fact extend to all banks the facility to which the noble Baroness just referred, which has been undertaken by the TSB. As from next week, as long as you have done everything that you should and it was not your fault, you will get your money back. Vulnerable victims will get their money back even if they have not exercised due care. I welcome this not just because it gives added protection to customers, but because it means that the banks will have to pick up the bill, which will add to their incentive to reduce, so far as possible, incidents of fraud.

The noble Baroness then referred to confirmation of payee. She is quite right: at the moment, an electronic payment is processed on the basis of the sort code and the account number. As from later this year, banks will have confirmation of payee—in other words, they will check the name. That means that it will be difficult for fraudsters to intercept funds designed, for example, for solicitors on conveyancing, and misdirect them.

[Lord Davies of Oldham (Lab)]

My Lords, the country is well aware of the extent to which scams and frauds have been successful in recent years, and it is an acute problem. I accept that the Government and the banks have made some progress with the voluntary code, but will the Minister undertake that, if that does not provide satisfactory protection for our people, the Government will legislate to ensure that victims get repaid?

[Lord Young of Cookham]

It is exactly because the Government were not satisfied with the progress being made that the former Home Secretary asked HMRC to inspect the police response to fraud. It responded on 2 April with 16 recommendations that the Government, together with banks and the police, are in the process of implementing. There is a range of recommendations, including a more co-ordinated national response and more support for the customer. Action Fraud is also introducing a more responsive service so that, if you report a fraud, you will get feedback from the banks; that was not necessarily the case before. I am not sure whether we need more legislation; we need to see how the initiatives I referred to work through.

[Lord Hayward (Con)]

My Lords, my noble friend referred to the policies adopted by banks. This morning, I received a completely unannounced phone call from Barclays, asking me questions relating to my account details. Is it not possible for banks, where they know that they will contact customers in relation to the contents of their accounts, to send them an email or a letter beforehand rather than calling on an ad hoc basis?

[Lord Young of Cookham]

If I got a telephone call from the bank, I would hang up and then ring back. An additional measure will be introduced later this year for larger payments and payments where the banks think that there is a risk, in that they will have what they call multifactor authentication. In that case, they would text my noble friend saying that a payment was going through and asking him to confirm it. In the case my noble friend referred to, as I said, my instinct would be to hang up and ring the number on the back of my card.

[Baroness Kramer (LD)]

My Lords, it is beyond me why this code remains voluntary, creating an opportunity for banks to opt out of the system if they so wish when it offers only the most basic and minimal protection against fraudsters. Anyone going into a bank to move money by wire transfer, which I do for safety’s sake, is asked a series of questions about the payee; the bank also takes other steps because it knows that the responsibility will fall on it and that it is required by law. Should not the same strength be put behind online banking?

[Lord Young of Cookham]

We should welcome the steps forward I announced. Three initiatives are being taken by banks: confirmation of payee; the interception or interrogation of large sums; and the voluntary code. I will reflect on what the noble Baroness said and see whether there is a case for legislation, but we are making good progress with the steps I announced.

[Lord Vaux of Harrowden (CB)]

My Lords, are we not getting this the wrong way round? All, or most, frauds have one thing in common: the money is received and processed by another bank account, usually in the UK. Should we not make the receiving bank—the bank that has handled and processed the stolen money—automatically liable for the loss? If we did, banks would have a real incentive to stop accounts being used by fraudsters. We do it for credit cards.

[Lord Young of Cookham]

Again, that is a very helpful suggestion. This is not my specialist subject but it seems that it is too easy, in some cases, to open a bank account. That account is then emptied instantly by whoever has committed fraud and no one is left to seek compensation against. I like the noble Lord’s suggestion that, where they have not undertaken due diligence to establish the real identity of the person opening an account, the banks should be held liable.

Spending Review: Intergenerational Fairness and Well-being

Lord Young of Cookham Excerpts

Monday 20th May 2019 Lords Chamber

[Baroness Tyler of Enfield]

To ask Her Majesty’s Government what steps they are taking to ensure that issues of (1) inter- generational fairness, and (2) well-being, are properly considered as part of the forthcoming spending review.

[Lord Young of Cookham (Con)]

My Lords, inter- generational fairness and improving living standards are core considerations for the Government’s tax and spending policy. The Government routinely assess the impact of all their policies, in line with the obligations of the Equality Act and their strong commitment to promoting fairness. To fulfil these commitments, the Government will consider carefully the distributional impact of spending decisions made in the forthcoming spending review.

[Baroness Tyler of Enfield (LD)]

I thank the Minister for his Answer. Given that the idea of intergenerational fairness is coming ever more under the spotlight, with real concerns that our current younger generation will be the first to experience worse pay, job security and housing prospects than their parents, what specific steps are the Government taking to collect regular data on the intergenerational impact of tax and benefit policies and spending decisions, and to publish a distributional breakdown of the effects of government budgets and spending reviews by age group to allow for independent scrutiny of their long-term sustainability?

[Lord Young of Cookham]

I commend the noble Baroness and her colleagues on the Select Committee on Intergenerational Fairness and Provision for its report. It has just come out and I read it over the weekend. I like the sentence in paragraph 3:

“Policy based on the expectation that future generations will disproportionately pay for present or past consumption cannot be considered just or sustainable”.


I agree with that. One of the ways of reducing intergenerational unfairness is to take further steps to reduce the deficit, and the report explains exactly why it is unfair for any Government to go on borrowing and borrowing and load on to subsequent generations ever higher debt. I hope that that part of the report will encourage support for the difficult decisions that the Government may have to take on public spending.

On the specific question about publishing a distributional analysis of the impact, I understand that that is quite difficult to do. If, for example, the Government decide to spend more money on high-quality childcare, would that score as an advantage for the child, who is getting the benefit of the childcare, or as a benefit for the parent, who would then be able to go out to work or who would not have to pay for that childcare? There are some real issues about definition before we can go too far down the road of identifying a solution along the lines suggested by the noble Baroness.

[Baroness Symons of Vernham Dean (Lab)]

My Lords, does the noble Lord agree that one of the most important problems here is the enormous debts that young people are building up through university charges? Our generation did not face such huge debts but the next generation does. As far as I can see that is one of the most important issues. I wonder what the noble Lord thinks about that point.

[Lord Young of Cookham]

Steps were taken last year to raise the threshold at which debt starts to be repaid. However, as I said in my original reply, one of the report’s recommendations is to take this issue into account in the spending review. However, we have seen a huge reduction in unemployment among young people, with the rate among 16 to 24 year-olds having halved since 2010, which is a good record.

[Lord Davies of Oldham (Lab)]

My Lords, the Minister is being somewhat complacent in his answers to the third Question of the day. He must be aware that a large number of young people feel outrage because the scales are tilted against them not just on university fees but on the kind of jobs that he has just identified, which are often in the gig economy, where young people are exploited rather than rewarded. Does he appreciate that a great deal of the anger in our communities is being generated by this Government having presided over an economy in which, in the past decade, ordinary wage earners have had absolutely minuscule increases while the bosses of the FTSE industries have been coining fortunes?

[Lord Young of Cookham]

I am not sure that that is an intergenerational issue; rather, it is about income levels between different groups in the population. Perhaps I may put this into context. This Government have legislated to raise the retirement age, which has begun to tilt the terms of trade between the older and younger generations. Over the past 10 years, interest rates have been at a record low, which has tended to disadvantage those who have retired and may have savings, while tending to help younger people with mortgages. That is not wholly reflected in the report before us. As regards exploiting young people, in December we introduced the Good Work Plan to protect agency workers and give more rights to people on short-term contracts. Moreover, I have just received some in-flight refuelling: university fees—30 years to pay off and a new threshold of £25,000.

[The Lord Bishop of Winchester]

My Lords, the Social Mobility Commission’s report has highlighted that twice the number of disadvantaged 16 to 18 year- olds are in further education than are in sixth forms. Does the Minister agree that this, combined with the 20% decrease in FE funding in real terms, is limiting opportunity and social mobility, and that the forthcoming spending review should therefore propose an increase in FE funding?

[Lord Young of Cookham]

This was another recommendation made in the report and can again be taken into account when we come to the spending review. On educating 16 to 19 year-olds, I am advised that there is a £7 billion spend on that particular age group. The right reverend Prelate has pointed to the discrepancy in funding between FE colleges and sixth forms, which I know has been an ongoing issue. I will ensure that that is taken on board in the spending review.

[The Earl of Listowel (CB)]

My Lords, I recognise the Government’s investment in children with a disability, but does the Minister recognise that we now have 1 million disabled children in this country, that this is 33% more than a decade ago and that local authorities are so short of funds that they are finding it difficult to provide the specialist services these children need? Will he keep this in mind in the spending review?

[Lord Young of Cookham]

The noble Earl is a tireless advocate on behalf of the disadvantaged, and he has reinforced the case. I will ensure that Ministers at the DWP and the MHCLG, which funds local government, are aware of the point and that this is taken on board in the next spending review.

Census (Return Particulars and Removal of Penalties) Bill [HL]

Lord Young of Cookham Excerpts

2nd reading (Hansard): House of Lords
Monday 13th May 2019 Lords Chamber

Moved by

[Lord Young of Cookham]

That the Bill be now read a second time.

[Lord Young of Cookham (Con)]

My Lords, I am delighted to present this Bill today. This may be some noble Lords’ first encounter with the census legislative process. I have an advantage, in that I was responsible for taking through the legislation in another place to enable the taking of the 1981 census. I now have the pleasure to present a Bill that paves the way for new questions in the 2021 census, 40 years later.

The purpose of the Bill is very simple: it will remove the penalty for not responding to new census questions on sexual orientation and gender identity. This means that the questions will be voluntary. Given the sensitive nature of these questions, they will be asked only in respect of those aged 16 and over in the 2021 census.

This delivers on the proposals set out in December 2018 by the White Paper Help Shape our Future. The Office for National Statistics undertook an extensive three-year programme of research and evidence-gathering, including a large public consultation on the 2021 census, and the White Paper sets out its recommendations. This includes new questions on sexual orientation and gender identity to help decision-makers monitor their services and provision. The White Paper also recommends that nobody should have to disclose their sexual orientation or gender identity if they do not want to.

To make these questions voluntary, the Bill amends the Census Act 1920 to remove the penalty for not responding to them. As some noble Lords will recall, this reflects the approach taken in the Census (Amendment) Act 2000, which removed the penalty attaching to a failure to answer a question on religious affiliation in future censuses.

The Bill also extends to Northern Ireland by amending the Census Act (Northern Ireland) 1969 to ensure that there is a consistent statutory basis across the UK for asking voluntary questions on sexual orientation and gender identity. The Bill does not direct either question to be asked in Northern Ireland but extends the voluntary nature of both questions, should it be decided to include these questions in this or a future Northern Ireland census. Without an amendment to the census primary legislation for Northern Ireland, questions on these topics would remain subject to a penalty for non-response. Following consultations with the Northern Ireland Office and the Northern Ireland Statistics and Research Agency, we are therefore extending this Bill to Northern Ireland. Noble Lords may wish to note that the Scottish Parliament has separately introduced a Bill to make new questions on sexual orientation and transgender status and history voluntary by removing the penalty for failing to answer these questions.

The census provides an opportunity, once every 10 years, to build a detailed and comprehensive picture of the nation. The 2021 census will be a primarily online census for the first time. This will help to improve data quality and pursue the Government’s aim of increasing the provision of public services online.

Confidentiality remains paramount. All personal data collected by the census will be stored confidentially and will not be released for 100 years. In 2021, respondents will be provided with a unique access code and anyone aged 16 years and over will be able to request a code, or individual paper form, if they wish to respond privately. This will enable people to answer these questions without having to tell the householder that they have done so. This is vital, given the clear need for this data.

The research and consultation conducted by the Office for National Statistics to inform the recommendations for the 2021 census showed a clear need to collect data on sexual orientation and gender identity. National and local organisations have confirmed that need, including the Government Equalities Office, the Department for Health and Social Care and Sport England. There has also been significant consultation with stakeholders in the voluntary sector, which I know the ONS values, and which will continue throughout the census.

The Office for National Statistics recommends new questions or changes to questions only where its consultations and research has shown a compelling case to do so. Data on sexual orientation, down to local authority level, is not currently available and there is no official data at all in this country on gender identity. This has a direct impact on the provision of public services. The NHS has highlighted that the absence of reliable gender identity information is a challenge for its provision of gender dysphoria services, and local authorities have sought the information to tackle homophobic incidents in the night-time economy. Without robust data on the size of the LGBT population at a national and local level, decision-makers are operating in something of a vacuum. They are unaware of the extent and nature of the disadvantages LGBT people may experience and, critically, they are unable to design and monitor the effectiveness of policies to address these issues.

I have written to my noble friend Lord Blencathra, of the Delegated Powers and Regulatory Reform Committee, to set out the delegated powers memorandum accompanying the Bill. The Bill includes no new delegated powers but will have an effect on existing ones as they operate in England and Wales. Copies of the memorandum have been made available.

The Bill ensures that, in delivering on the White Paper’s proposals, the Office for National Statistics can arrange to include new questions on sexual orientation and gender identity in the 2021 census on a voluntary basis, ensuring that the penalty for not responding to these questions is removed. It ensures that robust data can be collected to inform policymakers in the planning and provision of vital public services to support citizens across the UK. I therefore urge noble Lords to join me in supporting this simple, worthwhile legislation. I beg to move.

--- Later in debate ---

[Lord Young of Cookham]

My Lords, I am grateful to all those who have taken part in this relatively short debate, and particularly welcome the broad support for the legislation we have brought forward. I will try to answer the questions that have been raised, but if I do not, I will ensure that noble Lords have the answers before the Committee stage.

I am grateful to the noble Baroness, Lady Hayter, for her support. The business managers will have noted her suggestions that there are other pieces of legislation—some of them controversial—that should be introduced. She set out why we need firm data in order for the public services to be effectively targeted. The census will be trialled later this year in a number of places, including Tower Hamlets, and there will be further consultation on the detailed questions.

The noble Baroness and the noble Lord, Lord Kennedy, asked a key question about how homeless people will be counted. I agree that it is vital that those who face severe challenges in their lives are reached when we assess how public services are to be delivered. Since 2011, further research and engagement with charities have been undertaken to understand how people without a fixed place of abode can make a census response, so the ONS is planning to make forms available in night shelters and day centres, with practical help for filling them in. The ONS continues to work with these centres and other groups to ensure that people who may attend them only on a given day will also be able to take part.

The noble Baroness, Lady Hayter, and the noble Lord, Lord Kennedy, also asked about the Armed Forces and veterans. We will consult the Royal British Legion and others on the detailed question or questions, which will be determined by secondary legislation later this year. There was a question about whether the veterans’ questions should be voluntary. I do not think they raise quite the same sensitivities as the two questions that will be voluntary, so they will be part of the compulsory section. In response to the noble Lord, Lord Wallace, the only voluntary question is the one introduced in 2001 on religion and the two questions being dealt with today. All the others are voluntary.

[Noble Lords]

Oh!

[Lord Young of Cookham]

Sorry, did I misspeak? All the questions are compulsory, apart from the religious question and the two questions before us today—corrigendum.

The new question on past service in the Armed Forces is proposed for the 2021 census to identify those who are 16 and over and who are veterans. This will enable us to serve those who have served their country and keep the commitment which we made to them when they joined the Armed Forces. As I said, the detailed question will be determined later in the year.

The term “head of household” has not been used since 1991, so the argument that some noble Lords on the Cross Benches have with their wives as to who is the head of household is unnecessary. It has gone to a more neutral form, either “householder” or “joint householder”.

On the 100-year rule, there is such a rule but of course Parliament could always change that if it wanted to. It has 100 years in which to come to that decision if some of the concerns voiced by the noble Baroness, Lady Barker, took place. The noble Baroness asked a number of questions and I will do my best to answer them. One was about what intersex people do. The ONS is recommending that there be a note on the sex question, to advise that a gender question follows and include guidance that those who wish to can use the free-text box on gender identity to write “intersex” or another identity. Engagement by the ONS with the intersex community has not shown any objection to this proposed approach. She asked what we will do with this data and how it will be protected. Public confidence in the security and confidentiality of all information given in the census is paramount, including in particular on the questions that we have referred to today.

The noble Baronesses, Lady Barker and Lady Hayter, asked whether we were going to consult on the guidance. The guidance for the online and paper versions of the census is in development and being informed by research and testing with members of the public, and by input from stakeholders. On an additional point raised by the noble Baroness, Lady Hayter, we do not use “issue born in marriage” in the census. Just to clarify, responsibility for completion now falls to the householder or joint householder, as I said, which is defined as the person who owns or rents the property, or is financially responsible for day-to-day expenses.

A homeless person would use the address of the establishment—the day or night shelter—where they fill the form in. I am grateful to my noble friend Lady Finn, who worked in the Cabinet Office and helped to move a number of public services online, as that has made the forms much more convenient for the citizen to fill in.

Yes, we have an objective of 75%, which I will come on to in a moment. My noble friend also referred to the value of cross-referencing census data to other data to build a more granular picture of society as a whole.

The 2021 census is part of a wider modernisation programme to transform ONS data collection to provide improved population statistics. As part of this programme and by using data-sharing provisions in the Digital Economy Act, the ONS is exploring how administrative data could replace the need for a decennial census after 2021. As to whether this is the last census, the UK Statistics Authority will make its recommendations on the future of the census in 2023. The ambition remains as set out in 2014: censuses, after 2021, will be conducted using other sources of data and by providing more timely statistical information. How will we hit the 75% target? ONS will provide assistance, including in-person support sessions, for example in schools and libraries. There will be a dedicated census contact centre working with community groups, and also work by census field staff on the doorstep.

Along with the noble Lord, Lord Kennedy, and me, the noble Lord, Lord Lipsey, welcomed this being a non-controversial debate. I suspect that, had I introduced this provision in 1981 in another place, the debate would have lasted slightly longer than it lasted today. I welcome the support of the noble Lord, Lord Lipsey, as a statistician, particularly for his reference to the value of data at a ward level.

The noble Lord, Lord Wallace, asked when we will get the order. We hope to debate it towards the end of the year, around October. “Later in the year”, my briefing tells me—that is perhaps a broader definition than the one I just used.

A person can tick as many national identity boxes as they like and write another. The noble Lord, if he wants to, can identify himself as English and Yorkshire. I think I have addressed most of the issues raised in the debate.

[Baroness Barker]

On exactly that point, I put two questions to the Minister to which he has not responded. How do the Government expect non-binary people to respond? Are trans people expected, as they do now, to reply to questions going by their lived-in experience? Perhaps the Minister will write to me about the interrelationship between this and the Gender Recognition Act.

[Lord Young of Cookham]

In so far as the compulsory question is concerned—the binary question of male/female—the guidance is minded to say, “Fill in what was on your birth certificate”. If you have changed your gender and have a gender certificate, you would put in that gender. The noble Baroness’s question underlines the importance of the guidance being right, and we propose to consult on it. If she agrees, I will write to her on the other question. Having said all that, I beg to move.

Bill read a second time and committed to a Grand Committee.

Mobile Phones: Public Alert Systems

Lord Young of Cookham Excerpts

Monday 13th May 2019 Lords Chamber

[Lord Harris of Haringey]

To ask Her Majesty’s Government, further to the remarks by Lord Young of Cookham on 5 July 2018 (HL Deb, cols 766–770), what progress they have made on the introduction of public alert systems for mobile phones in the event of an emergency.

[Lord Young of Cookham (Con)]

My Lords, the Government recognise the potential benefits of an emergency alerting scheme that sends text messages to mobile phones. The Cabinet Office has undertaken further work to address some of the technical and operational issues of implementing such a scheme on the UK’s communications networks, and is working across government and with emergency responders to explore the potential benefits and opportunities further.

[Lord Harris of Haringey (Lab)]

My Lords, I am grateful to the Minister for his Answer, but not a lot seems to have happened in the year since I last asked him about this matter.

It is seven years since Australia adopted a location-based text alert system, since when there have been no bushfire deaths. It is five years since the Cabinet Office published its report on the three successful trials it had carried out of these systems. It is three years since my report on London’s preparedness, which made recommendations in this area. It is two years since the Grenfell fire, when, had the technology been in use, residents in the tower could have been advised of the change in evacuation advice. That would have saved lives. It is two weeks since the Indian authorities sent 2.6 million text alerts warning people in the path of Cyclone Fani, possibly saving thousands of lives. Can the Minister tell us what exactly the problem is in this country, and when UK residents are going to get the protection that is available elsewhere in the world?

[Lord Young of Cookham]

I understand the noble Lord’s impatience, and commend him for the regularity with which he has addressed this issue. Ministers have made it absolutely clear that doing nothing is not an option. Two weeks ago, there was a workshop of the Cabinet Office, the Home Office and the police to identify more accurately the precise specifications of the scheme that the noble Lord refers to. Later this year, the Environment Agency will be launching a trial scheme using cell broadcasting, and testing the 4G technology to compare it with existing alerting capabilities. The previous trials in 2013 which the noble Lord referred to, were disappointing, but they were based on older technology and the 2G network. Since then, things have moved on.

Finally, the noble Lord referred to the cyclone in India. Most of the existing schemes are used to warn people of tsunamis, flooding and fires. His report used it against a background of terrorism. That raises different issues, in that it is impossible to forecast exactly what is going to happen, and also, in the case of terrorism, the protagonists are also receiving the message alerts. That means that one requires a slightly different approach if one is to use it for those purposes rather than the purposes it is normally used for abroad.

[Lord Paddick (LD)]

My Lords, as the noble Lord, Lord Harris, has just said, on 28 October 2016 he launched his report on improving London’s terror preparedness. He recommended the installation of hostile vehicle mitigation barriers and the wider installation of protective bollards in areas of vulnerability around London. Sadly, no action was taken before the terrorist attacks on Westminster Bridge and London Bridge, the first being six months after the publication of the report. Does the Minister accept that any unnecessary delay to the implementation of the recommendations made by the noble Lord, Lord Harris, regarding the introduction of public alert systems could result in preventable loss of life?

[Lord Young of Cookham]

I agree. One of the themes that came out of the debate in July, which the noble Lord participated in, was the importance of getting the message right and of any message coming from an alerting system being compatible with what the BBC, Sky and social media are doing—all of which may have more on-the-spot responses. This is why, as I said, it requires a slightly different approach the schemes that are already up and running. On the issue of the bollards and other obstructions, I will of course take that up with the relevant government department.

[Lord Cormack (Con)]

My Lords, will my noble friend assure the House that no alert system will ever be capable of foreign intervention? I know that many Members, in all parts of both Houses, are acutely concerned about this.

[Lord Young of Cookham]

One of the advantages of cell broadcasting technology as opposed to SMS texting, which is the alternative scheme, is that cell broadcasting is better proofed against the risks that my noble friend has referred to.

[Lord Watts (Lab)]

My Lords, is there something fundamentally wrong with this Government? Even when they want to do something, it takes years for them to actually act. Should we not review the way that the Government are proceeding on these issues, so that we do not have ongoing issues that last for years without being resolved?

[Lord Young of Cookham]

Again, I understand the noble Lord’s impatience which, for all he knows, may be more widely shared than he thinks. What has changed over recent years is that previous trials were based on an outdated technology, 2G. Now that we have 4G and the arrival of 5G is imminent, it is possible to have a scheme which was not possible three or four years ago. As I said a moment ago, we are testing a public trial of cell broadcasting later this year, which could then be developed into the sort of scheme proposed by his noble friend.

[Baroness Hamwee (LD)]

My Lords, one problem which is common to terrorist attacks and environmental disasters is the anxiety of friends and family about those whom they are concerned might be affected. Their phone calls, using mobile systems as well as landlines, put a load on the whole system. That was obvious in 2005. Does the work which the Government are doing take account of the need to ensure that that load is minimised?

[Lord Young of Cookham]

Cell broadcasting does not run the risks of congestion on the network that the previous system, SMS, did.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, confession is good for the soul, even for Ministers. Can the Minister be absolutely precise about whether the workshop to which he referred was planned before or after my noble friend Lord Harris tabled his Question?

[Lord Young of Cookham]

I am flattered that the noble Lord thinks that I have such influence that the moment a Question is tabled to me, I immediately ask for a workshop to be established. The workshop was planned before the noble Lord tabled his Question.

Public Appointments: Diversity

Lord Young of Cookham Excerpts

Thursday 9th May 2019 Lords Chamber

[Lord Holmes of Richmond]

To ask Her Majesty’s Government what steps they are taking to increase diversity in public appointments.

[Lord Young of Cookham (Con)]

My Lords, the Government are committed to improving diversity in public appointments. We have made good progress. New appointments of women, candidates from BAME backgrounds and those with a declared disability have all increased since 2013-14, but there is more to do. We aim to publish around the end of June a refreshed public appointments diversity action plan alongside a response to my noble friend’s excellent review into opening up public appointments to disabled people.

[Lord Holmes of Richmond (Con)]

My Lords, I thank the Minister for everything that is happening in the Cabinet Office. What is happening across Whitehall and in all government departments, which obviously have to play a role in this incredibly important issue?

[Lord Young of Cookham]

My noble friend is quite right. Although the Cabinet Office has overall responsibility for this topic, the actual appointments are made by individual government departments. One reason that we have taken a little longer to publish the document to which I have just referred is that we are anxious to get buy-in from all government departments to hit the ambitions that we are about to set out. I know from experience that Ministers in individual departments take public appointments very seriously. They are accountable for them, there is a Commissioner for Public Appointments to make sure the code is observed, and I know that Permanent Secretaries also take seriously the process of sifting applications before they go to Ministers. I will draw my noble friend’s remarks to the attention of relevant Permanent Secretaries and Ministers.

[Baroness Burt of Solihull (LD)]

My Lords, unless we get rid of the traditional recruitment methods of CVs and formal, structured interviews, we will never be able to recognise the talent lying on our own doorsteps. HS2 has succeeded in recruiting a workforce which exactly reflects the population. Will the Government look at its methods and consider the option of blind, online applications that reflect the needs of the job, not what is written down on a piece of paper? That would at least be a first step towards an inclusive Civil Service that looks like the people it represents.

--- Later in debate ---

[Lord Young of Cookham]

When I re-read my noble friend’s document I was struck by the sentence:

“Currently, talent is everywhere, but opportunity is not”.


He is absolutely right. One of his recommendations, concerning CVs, is that we should take non-standard CVs into account. His report states that,

“lived experience ... is a talent”.

Standard CVs and application processes sometimes do not reflect the life history of those who have a disability. I hope that when the noble Baroness sees our response to my noble friend’s document, she will recognise that we have taken on board some of the unconscious discrimination against those with a disability when it comes to public appointments.

[Lord Clark of Windermere (Lab)]

My Lords, I am very supportive of the Government’s efforts in this field but I want to raise one point. The Minister just said that talent is everywhere. It is indeed everywhere but, unfortunately, appointments are largely concentrated in the south-east of England. Will the Government make an effort to see how the spread is in other counties throughout the United Kingdom?

[Lord Young of Cookham]

The noble Lord is quite right. Discrimination is not just about gender, race or disability; it is also about age, diversity of experience and regional balance. My noble friend’s recommendations, although focused on disability, have wide implications for other underrepresented groups, not just in the public sector but in the private sector as well.

[Baroness Finn (Con)]

Does my noble friend agree that a consistent, rigorous focus on the action needed to overcome the barriers to employment is more important than another grand strategy? That was our approach during the coalition Government when increasing appointments of women, with very impressive results. Is it not sensible to learn from what worked successfully then?

[Lord Young of Cookham]

I pay tribute to the work that my noble friend did alongside my noble friend Lord Maude at the Cabinet Office when we had an ambition that 50% of new appointments should go to women. In the five years that followed, the percentage went up from, I think, 34% to 49%. My noble friend is quite right that some of the lessons that were learned from the Cabinet Office at that time have been taken on board by my noble friend Lord Holmes, and he has built on them and applied them where necessary to adjust for issues connected with disability. That is why I said in my initial response that we will refresh the public appointments diversity action plan, building on the one that I think my noble friend was closely involved with.

[The Lord Bishop of Rochester]

My Lords, I am conscious that these Benches may not embody everyone’s image of diversity. None the less, I was pleased to lead the final stages of the process by which these Benches were opened to women as well as men, although none of them is here today. I have also been chairing for the last five years a process within the Church where we are tasked with increasing the proportion of BME people in senior roles in the life of the Church. We have made some modest progress, though there is lots still to do. Nevertheless, we have learned that while legislation and processes are important, as has been indicated, so are culture, attitudes and bias. I wonder whether the Government might welcome some kind of forum within which quasi-public bodies might engage with public bodies so that we can share our learning on these matters.

[Lord Young of Cookham]

I welcome the suggestion from the right reverend Prelate. An event was held at Windsor called Faith in Leadership to encourage those with a faith perspective to apply for public appointments. In response to his suggestion, we are anxious to learn any lessons that the Church may have to ensure that the recommendations in the disability review go forward. So the short answer to the right reverend Prelate’s question is yes.

[Baroness Hayman (CB)]

My Lords, does the Minister agree that, for people who do not have a conventional CV, the confidence to make an application for a board appointment can itself be a barrier? I believe that some important work has been done in Northern Ireland to give potential candidates, with talent but perhaps suffering from one of those barriers—it might well be class, as much as gender—experience of serving on a board and seeing how one functions to prepare them to be competent and able board members.

[Lord Young of Cookham]

That is a very helpful suggestion from the noble Baroness. One of the recommendations in the review was that we should seek out talent, encourage people to apply who might otherwise not have done and then support them through the process. There is also an issue about the visibility of appointments, in that there is a risk of this applying just to a self-selecting group if one does not reach out to underrepresented groups. I am very happy to learn from the experience in Northern Ireland to which the noble Baroness referred.

Conduct of Debate in Public Life

Lord Young of Cookham Excerpts

Thursday 9th May 2019 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, I have wound up many debates in my time but I find this the most difficult of all, not least because we have had some great speeches which it will be very difficult to match but also because some of the issues that we have been discussing—what sort of country we are, how our institutions are letting the country down and how our political parties are not working properly—have no easy answers. But noble Lords have been good enough to identify some ways forward, so let us have a go.

The noble Lord, Lord Harris, was quite right to raise this serious issue, and I commend the speech that he made in introducing the debate. He made some very moving references to Jo Cox, also referred to by the right reverend Prelate the Bishop of Leeds and others. The noble Lord cares passionately about our democracy. He articulated the threats that he sees, including the loss of confidence in democratic institutions, and identified some potential solutions. One theme that has run through the debate is the need for strong political leadership—a point he mentioned with which I agree. That was picked up by others, including the noble Lord, Lord Liddle. He also mentioned the need for political parties to put their own house in order, and again I endorse what he said.

I am grateful to all noble Lords who participated in the debate with some very thoughtful and thought-provoking interventions. They discussed how best to restore confidence in the institutions of our country, asking how we can promote good conduct and healthy political debate, alongside respect for those with a different view—the tolerance that the noble Lord, Lord Wallace, mentioned—and what both government and those of us in active politics can do as individuals to heal the divisions. A theme developed by the noble Lord, Lord Harris, the noble Baroness, Lady Prashar, and others was that it is not just up to the Government. The noble Lord, Lord Parekh, mentioned the importance of the language that we use, and the right reverend Prelate the Bishop of Leeds was, rightly, concerned about the normalisation of violence in our language.

The noble Lord, Lord Harris, referred to my noble friend Lord Bates—an unerringly friendly, courteous and popular Minister, who took stock of the vitriol, anger and intolerance in British politics and resigned, calling for reflection and change. He has decided to make his contribution by talking to people on his journey from Belfast to Brussels, to get a deeper insight into the current malaise and how we might restore national unity. We hope to hear from him on his return.

Picking up a theme from the noble Baroness, Lady Morris, the noble Lord, Lord Wallace, and others, next week I am going to do something which many noble Lords have done. I shall be addressing a masterclass for year 12 at a secondary school, where those representing different career options will be making their pitch to school leavers. Listening to the debate this afternoon has brought home to me the challenge of persuading teenagers to opt for elective office when there are so many other careers that offer greater job security, less media intrusion, less risk of personal harm, and better pay, and which enjoy higher prestige in the public eye—and there is not even an estate agent coming with whom I could compete on equal terms.

I also remember recently addressing a roomful of university students on the Upper Committee Corridor. They were in their last year of a politics course. At the end, I asked how many would consider becoming an MP. Not one hand went up—a point made by the noble Baroness, Lady Prashar, who talked about the difficulty of engaging. Yet I was struck by a point that the noble Baroness, Lady Morris, made: never have young people had more reason to become engaged in public life and shape their future. We saw last month how strongly young people feel about climate change.

In fact, we have a good story to tell about politics and democracy. In many ways, becoming an MP is more attractive now than when I started 45 years ago. MPs have better working conditions in Portcullis House, more generous pay and realistic allowances, proper staff, civilised working hours and, through technology, an increased facility to communicate with their constituents.

My noble friend Lady Bottomley put in a broader context the violence in society and asked what was different this time. I shall certainly read the speech of the noble and learned Lord, Lord Judge, as she recommended, and I will come on to the theme of social media, which she touched on, in a moment.

As part of the response to the issues that have been raised, I will explain what the Government have tried to do to remove some of the barriers to public life, to mitigate online abuse—one of our themes today—to tackle hate crime and hate speech, to prevent parliamentary intimidation and to promote democratic engagement, and I shall answer some of the questions raised.

This is a timely debate because, over the weekend, the Government announced plans to safeguard our democracy, addressing the mounting need to protect public debate and the integrity of our elections. In recent years, we have witnessed rising levels of violence and abuse directed towards those taking part in that debate. This increased prevalence of intimidation in public life risks stopping talented people from standing for public service and putting voters off politics.

The noble Baroness, Lady Hussein-Ece, mentioned the independent Committee on Standards in Public Life. It was asked by the Prime Minister to look at this very issue of the intimidation of parliamentary candidates, MPs and other public officeholders following the 2017 general election. It looked at the nature of intimidatory behaviour and considered what measures might protect the integrity of public service effectively, especially given the rise of social media. As I said, we published a response last weekend, entitled Protecting the Debate: Intimidation, Influence, and Information. Additionally, the Minister for the Constitution announced that the Government will legislate for a new electoral offence of intimidatory behaviour—a matter raised by the noble Baroness, Lady Hussein-Ece. Those found guilty of intimidating a candidate or campaigner during the run-up to an election will be stripped of their right to run for elected office for five years.

Passions run high in politics and political debate, and it is right that we should care about how we govern or are governed. However, there is absolutely no excuse for anyone, no matter who they are, to threaten or abuse a candidate or campaigner whose views they do not agree with. Neither do individuals have the right to impose their views on others. I deplore, as others have done, the comments made about Jess Phillips by a UKIP candidate; that candidate’s feet would not have touched the floor had he been standing for any party represented in our debate today.

The right reverend Prelate the Bishop of Rochester raised the need for a conversation about national identity, asking questions about who we are, to try to fill the vacuum—the “dark place” referred to by the noble Baroness, Lady Morris. He referred to the hostile emotions that have filled that vacuum and then sketched out how it might be done. This theme was developed by my noble friend Lord Patten, who suggested the possibility of a forum which might do some lateral thinking to work out the agenda for a way ahead. The noble Lord, Lord Hunt, suggested a new role for the Government in reassuring minority groups—I would like to reflect on that—as well as the idea of a parliamentary committee looking at how outside bodies deal with the sort of conflicts that we have been wrestling with this afternoon.

Brexit was one of the themes that ran through our debate; a large number of noble Lords mentioned it. A referendum has the potential to set people against Parliament when the people vote for a proposition with which the majority of parliamentarians disagree, and are then frustrated—as the noble Lord, Lord Liddle, mentioned—when three years later the result they voted for has not been delivered. We have seen a sort of polarisation of leave versus remain, which is beginning to replace the traditional right/left divisions that we have seen in our politics. The noble Lord, Lord Parekh, referred to the polarisation of a metropolitan elite on the one side and the rest of the country on the other.

I have reservations about referendums. I think it is legitimate to have a referendum to see whether Scotland or Northern Ireland wants to remain part of the UK, but I have reservations otherwise. I happen to believe that democracy is a conversation between people and Parliament, rather than a one-off instruction from one to the other. But, whatever one’s views, nothing can excuse the hatred and violence that we have recently witnessed.

The right reverend Prelate the Bishop of Leeds developed the themes by referring to the language of betrayal that has been used by some of those currently campaigning. I deplore the language that has been used—in some cases by my party—to talk about politicians. But the whole House welcomed the two memorable thoughts for the day offered by the two right reverend Prelates.

To the noble Lords, Lord Liddle and Lord Wallace, I say that we have had a look at electoral reform; we tried it but the public did not buy it, and I am not sure that it will happen in the near future. I was moved, as I am sure we all were, by the speech of the noble Lord, Lord Puttnam, who spoke of the risk of the slippery slope—the drift—if we do not confront extremists. He reminded us how nationalism can get out of control. Yes, we will stand up for the values he described.

While we have been talking about the toxicity in public life, it struck me that the increasing levels of violence that we have mentioned extend beyond the walls of Westminster to the lives of councillors—as the noble Lord, Lord Liddle, mentioned—and to hard-working teachers, nurses, doctors, judges and police and prison officers, who have also been targets and victims of toxicity and, in some cases, the intimidation and violence referred to in our debate today.

I was concerned to read in today’s Times, as I am sure were other noble Lords, that a number of MPs no longer feel secure walking across Westminster Bridge and are increasingly taking taxis. Noble Lords will have seen at times the aggressive behaviour of protesters during the recent Brexit debates. I looked out of the window of the Chief Whip’s Office this morning and saw a large placard saying, “Self-serving liars are destroying our nation”. Security arrangements at the Palace of Westminster are under constant review, and there is an ongoing police operation on the Parliamentary Estate as the debate on Brexit continues. The Metropolitan Police will do its best to balance the legitimate right to peaceful protest, but its members will deal robustly with incidents of harassment and intervene wherever they see or hear breaches of the law.

A number of noble Lords mentioned social media and the online harms White Paper, and talked about the abuse that takes place online and the damage it can do to people’s lives, careers and health. That is why we are taking action through the joint DCMS and Home Office online harms White Paper, which was welcomed by a number of noble Lords. We will establish a new statutory duty of care, as referred to by my noble friend Lady Bottomley, to make companies take more responsibility for the safety of their users and tackle harm caused by content or activity on their services. Compliance with that duty of care will be overseen and enforced by an independent regulator. As we debate these measures, there will be opportunities for noble Lords to add their own thoughts about how the legislation might be improved.

Accountability was a theme mentioned by the noble Baroness, Lady Prashar. Companies will be held to account for tackling a comprehensive set of online harms, including behaviours that may not be illegal but are none the less highly damaging to individuals or threaten our way of life in the United Kingdom. We expect that to include hate crime. We would also expect the regulator to include in a code of practice guidance to companies to outline what activity and material constitutes hateful content, content that may directly or indirectly cause harm to users—for example, in some cases of bullying or offensive material—and expectations around clear and accessible guidance to users on what constitutes hate crime and how to report it. We are consulting on the most appropriate powers for the regulator.

I thought the noble Baroness, Lady Prashar, made a good point, on the other side of the scales, in accentuating the positive benefits that can come from the intelligent use of information technology.

On fake news and state actors, the noble Lord, Lord Harris, asked why we did not have a toolkit such as the one that they have in Europe to deal with misinformation. In fact, the RESIST toolkit was launched last month to help communicators to spot and respond to disinformation. There is also a rapid response unit in the Cabinet Office to try to address disinformation.

The noble Baroness, Lady Morris, asked what we are doing to educate schoolchildren. We are looking at critical thinking skills in schools and launched a secondary schools resource last year to raise awareness of democracy. However, focusing just on children is not enough; we must do more now, which is why we launched the RESIST toolkit, as well as an awareness campaign targeted at 18 to 24 year-olds to give them the tools that they need. However, all the evidence is that people still look to the news agencies and news websites and give greater credibility to them than news on social media.

I am conscious that I am not going to get through all the issues that have been raised, but I will say a word about hate crime, an issue raised by the noble Baroness, Lady Hussein-Ece. We are clear that hate crime and hate speech are completely unacceptable, that victims should be supported, and that those who commit these hateful attacks should feel the full force of the law. We are committed to upholding free speech, and legislation is in place to protect fundamental rights. However, this freedom cannot be an excuse to harm or to spread hatred. Current UK legislation values free speech and enables people who wish to engage in debate so to do, regardless of whether others agree with the views being expressed. Importantly, the law ensures that people are protected against criminal activity, including threatening, menacing or obscene behaviour, online and offline. In this way, we believe the law strikes the right balance between protecting citizens and protecting their right to expression.

I will say a word about Prime Minister’s Questions, an issue raised by the noble Lord, Lord Winston—this will be a personal view. For many people, the weekly session of PMQs, which now lasts nearly twice as long as Standing Orders provide for, shapes their perception of politics. It is like Marmite. Some people love it—it is good box office, with at times some good one-liners worked up by spads and brisk exchanges on the issues of the day. For others, it is a poor advertisement for our democracy and our elected representatives, which switches many people off a career in public life and downgrades their faith in the democratic process. No one understands more than I do the passions that exist in the other place and the function of Prime Minister’s Questions as a sort of safety valve, but it could be a better advertisement for the political process if the context was less rowdy. I admire the way the Prime Minister handles this bear-pit with dignity, and I suspect it is not how she would prefer to conduct political discourse. I hope at some point it might be reset, retaining it as the forum of political debate but without the concomitant uproar.

Of course, the other place should never be like your Lordships’ House, where herbivores like me prefer our debates without the large decibel count, personal animosity or a binary approach to issues. We need to embody civility—a word raised by many during our debate. I agreed with what the noble Lord, Lord Winston, and the right reverend Prelate the Bishop of Rochester said: this might be a better forum for addressing the issues we have been discussing than the other place. I cannot remember who complained about it, but there are fewer people in the upper House who read out prepared scripts from the Whips’ Office.

I thank all those who have taken part in the debate. We must all work together to protect, respect, and promote our democracy. I will share with ministerial colleagues the helpful suggestions that have been made, and I hope that, working together, we will create a better environment in which our democracy can thrive and in which we can all deliver on our collective responsibilities.