Procurement Bill [Lords]

Debate between Mark Francois and Angela Rayner

2nd reading
Monday 9th January 2023 Commons Chamber

[Angela Rayner]

I will come to chapter 3, which addresses transparency—although, again, I think it is unambitious. Look at what Ukraine does in terms of transparency; it is streets ahead. These are baby steps and are nowhere near enough. The hon. Member needs to look at the situation and at the Bill. It is not ambitious enough for the UK and does not prevent situations in which billions of pounds of taxpayers’ money is wasted, as we have seen under this Conservative Government. The only fast-track lane that Labour would allow would be one for local businesses and enterprises that create wealth in our communities and contribute to a fairer society. The VIP lanes under a Labour Government would be for local businesses bringing innovation and wealth to their neighbourhoods, so social value would be a mandatory part of procurement. I hope that the Minister will look at that.

The Bill also misses a crucial opportunity to introduce real and workable non-performance claw-back clauses to contract design. There are ways of baking such clauses into contracts so that failing providers must return taxpayers’ money above a certain threshold. The current system just is not working; eye-watering waste continues without consequence. Being granted taxpayers’ money is a privilege. When suppliers do not deliver—just as we saw with PPE Medpro—we want our money back, but under the current proposals there is no way of even checking a provider’s past performance. Again and again, local authorities fall foul of the same failed providers as their neighbours.

Can the Minister explain why he is not using the Bill to make past performance a central pillar of our procurement? When I go to a restaurant, I can see past customers’ reviews of the food. Should the same not apply to multimillion-pound Government contracts? The Green Paper mentioned a procurement unit, but that has since been removed and replaced with a vague concept of “procurement investigations”. That toothless proposal will do nothing to crack down on waste or protect taxpayers’ money. By contrast, Labour’s office for value for money, which would be advised by a social value council, would have real teeth to ensure that taxpayers’ money is spent responsibly with regular checks. I hope that the Minister will work with me to strengthen that aspect of the Bill.

I have mentioned chapter 3 of the Bill, which I think is another sticking-plaster solution that misses the opportunity to create real transparency in public procurement. Although I welcome the limited measures the Bill takes to move towards transparency—by obligating authorities to issue a transparency notice before awarding a contract, for example, which the Minister mentioned—those are baby steps that barely scratch the surface of what is required. We must see end-to-end transparency, which means the creation of a public dashboard for Government contracts.

Clause 95 gives an unnamed authority the power to make rules about what procurement information can be shared and through which channels. That is symbolic of the poverty of ambition on display from the Government. The Minister could have used this opportunity to announce a system inspired by Ukraine’s anti-corruption blueprint, a dashboard that guarantees transparency in how taxpayers’ money is spent and bakes trust and integrity into the system. Even under attack from Russia, Ukraine is honest about how it spends public money. What is this Government’s excuse?

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

The right hon. Lady may not be aware, but the Infrastructure and Projects Authority audits all major infrastructure projects across the whole of Government every year and grades them on a dashboard system, so we already have one.

[Angela Rayner]

I say to the right hon. Member that we do not have a system that works. That is pretty clear to me because we can see the disastrous waste that currently happens in the system, and because companies that should be rewarded with contracts are not, while others get around the system.

I think we should go further still by finally shedding light on the amount of taxpayers’ money being shelled out to tax havens. Labour will push for the Bill to introduce full transparency about whether suppliers pay UK taxes, as well as public country-by-country reporting by multinational corporations. A Labour Government would go further by using public procurement to drive up standards of responsible tax, including by asking big corporations and businesses publicly to shun avoidance and artificial presence in tax havens.

Transparency is not just a nice thing to have; it actually saves money. A lack of transparency in the procurement system reduces competition and increases costs, leaving the taxpayer to shoulder the burden, so the adoption of open transparent contracting makes good financial sense. It leads to a more competitive procurement process and, ultimately, to cost savings.

As I said earlier, being granted public money is a privilege, and suppliers should in turn uphold the highest standards in the workplace. The Bill is an opportunity to drive up standards across the economy and ensure that public procurement is used as a means to promote decent work throughout supply chains and to reward businesses that treat their workers right. We must back the workers and the employers who create Britain’s wealth by using procurement to raise the floor on working conditions for all. I hope that the Minister will engage openly in Committee with proposals to include good work and the promotion of quality employment as strategic priorities.

That brings me to outsourcing. This Government have become too dependent on handing away our public services on the cheap, and we are all paying the price. It is ideological and not based on sound service delivery. The Bill presents an opportunity to introduce measures to end the knee-jerk outsourcing trend and to ensure that, before any service is contracted out, public bodies consider whether work could not be better done in house. When I worked in local government, we coined the phrase “not outsourcing but rightsourcing”. That is what a Procurement Bill should facilitate.

The pandemic showed us that a decade of Tory Government had shattered the resilience of British businesses and services and of our local economies. Instead of handing out billions to British firms to deliver services, jobs and a better future, big contracts were given to Tory cronies and unqualified providers. The Tories eroded standards at work, encouraging a race to the bottom.

But it does not have to be this way. From the Welsh Government and London’s Labour Mayor to local governments in Manchester, Southwark and Preston, Labour in power is showing that things can be done better. What we need is a public procurement policy that the public can trust and that will make winning contracts a force for our country’s good. Not more sticking-plaster solutions but a Bill that will restore trust in the way public money is spent.