UK-Rwanda Partnership

Peter Grant Excerpts

Wednesday 6th December 2023 Commons Chamber

[James Cleverly]

No.

[Peter Grant (Glenrothes) (SNP)]

The Home Secretary wants us to take great comfort from the fact that the treaty with Rwanda will be binding in international law. Then, in the next page of his statement, he assures us that next week he will bring in legislation that will, in certain circumstances, make it a legal requirement for British courts to act contrary to that same international law. How can he expect Rwanda to comply with its treaty obligations when his Government will pick and choose what treaties they comply with and what treaties they tear up?

[James Cleverly]

We will absolutely remain in compliance with international law.

Oral Answers to Questions

Peter Grant Excerpts

Monday 27th November 2023 Commons Chamber

[James Cleverly]

The historic backlog has been reduced by 65%. It has fallen by more than 59,000 cases since the end of November 2022. We have recruited 2,500 asylum decision makers, and we have increased tenfold the pace at which these decisions are made.

[Peter Grant (Glenrothes) (SNP)]

The Secretary of State is well aware that under international law an asylum seeker cannot be described as an illegal immigrant. They are here legally unless and until they are found to have no valid claim to asylum after due process. Is it the policy of the Home Office and this Government to act within international law or to act outwith it?

[James Cleverly]

The hon. Gentleman makes reference to the refugee convention, but his definition is only accurate if they come directly from a place of danger. I have visited France and it is a wonderful country. I can assure the House that it is not a dangerous country.

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[The Minister for Security (Tom Tugendhat)]

My hon. Friend makes an excellent point. That is exactly why we are having an emergency meeting of the Defending Democracy Taskforce tomorrow to assess these issues. The incidents that we have seen in this country since 7 October—absolutely hateful incidents—have left some people feeling unable to make the arguments that their constituents would expect them to make because they feel vulnerable or they feel threatened. That is why I have been engaging on a protective security review not just for the Government, but for all Members of this House, and for other elected officials around our country. It is completely wrong for our democracy to be silenced by anyone, and it certainly should not be silenced by cowards.

[Peter Grant (Glenrothes) (SNP)]

T6.   My constituent, Dr Lubna Hadoura, has given almost 30 years of service in a specialised role to our NHS. Today, all she can think about is her 84-year-old mum and other members of her family who are stuck in Gaza with no hope of escape. Will the Secretary of State agree to meet urgently with me and Dr Hadoura so that she can set out to him more powerfully than I ever could the urgent humanitarian and moral imperative to get the families of UK citizens out of Gaza before it is too late?

Student Visas

Peter Grant Excerpts

Wednesday 24th May 2023 Commons Chamber

[Robert Jenrick]

We said in the announcement this week that, with the Department for Education, we will launch a consultation with the university sector to design a longer-term alternative to the system that previously operated, which could be a more nuanced approach. But I think that the determination that we have made this week is the right one, which is that those people coming into the UK to study will be able to bring in dependants only if they are doing those high-value, usually longer-term, research-based courses such as PhDs, and those coming for short courses will invariably not be able to do so. That will cut out some of the abuse that we have seen in the system and will focus universities on their primary responsibility, which is teaching and education, rather than in some cases being a back door to immigration and to work.

[Peter Grant (Glenrothes) (SNP)]

Later this afternoon, my much-valued international student Jacqueline will spend the last few hours of her time here before she completes her internship. She has been a massive asset to my office, as were the other London School of Economics interns and other interns I have had the privilege of working with over the last number of years. What should I say to her? Should I say, “Thank you—you have been a boon to this place and these islands” or, “You’re a problem that has to be controlled”?

[Robert Jenrick]

It would be helpful if the hon. Gentleman did not spread misinformation to his researcher or indeed anyone else. It was the Government, through the international education strategy, who created this commitment, which has proven to be so successful that it has led to 600,000 international students coming to the UK—perhaps including the lady he referred to. We also created the graduate route, which has enabled people—potentially including his researcher—to move seamlessly into the workplace here in the UK after their studies rather than having to apply immediately for a work or family visa as used to happen. There is no suggestion of any diminution in our support for universities or international students, but it is right that we get a grip on abuses or unintended consequences. That is what Governments have to do when trying to control an immigration system. Perhaps he does not want controlled immigration. We do, and that is why we have to take these steps.

Public Order Act 2023

Peter Grant Excerpts

Tuesday 16th May 2023 Commons Chamber

[Alison Thewliss]

The hon. Lady makes the most important point: although the Bill’s territorial extent is England and Wales, anybody who comes to this city to protest—it could be any of our constituents, or any of us—falls under the remit of the Act. It does not discriminate by where someone is from. An Australian could end up getting arrested by accident. Any person who happens to be in the city and in the wrong place at the wrong time, or in the right place at the right time—exercising their right to protest—could end up in a jail cell because of the Act.

[Peter Grant (Glenrothes) (SNP)]

Is not the most important point that a lot of the things that our constituents in Scotland want to protest about are bad decisions taken in this place by the Government here? Quite rightly, they want to come to this Parliament to protest against the actions of this Parliament. To do so now, they have to put themselves at risk of being arrested simply for being in the wrong place at the wrong time.

[Alison Thewliss]

I absolutely agree. That is the dangerous nature of the Act.

Freedom of assembly in the UK now exists on the Government’s terms—when the Conservative party deigns to give that right. That right is now so conditional as to be meaningless. In my life, I have—like many of my colleagues—joined many protests, including the Make Poverty History march through the streets of Edinburgh, and protests and marches against the Iraq war. As a member of Scottish CND, I have protested outside Faslane. For migrant rights, I have protested on Brand Street and Kenmure Street. I protested against Labour’s school and nursery closures some years ago in Glasgow, for self-determination in Kashmir, and in support of Pride.

--- Later in debate ---

[Joanna Cherry]

As others have said, it is a question of balance. I think it was a Conservative Back Bencher who, during one of our many debates over the past year on the right to protest, listed all the laws that already applied in England and Wales and the huge amount of powers the police already had to deal with disruptive protests prior to the passage of the Public Order Act and part 3 of the Police, Crime, Sentencing and Courts Act. On one level, we could say this legislation is quite performative, because the police could already use existing laws, but on another level it is much more than performative because, as we saw at the coronation, it could have a chilling effect on the right to protest.

I am grateful to the right hon. Gentleman for the generous things he said about me, and I am happy to tell him that I have been uncancelled as a result of taking legal advice. For women like me who are being cancelled because we do not agree with self-identification of sex without any safeguards, it is not just a question of our right to freedom of speech; it is also a question of our right under the Equality Act 2010 not to be discriminated against because of the philosophical beliefs we hold, which an appeal court has said are worthy of respect in a democratic society.

I digress, because the point I want to make is that the right to protest is an aspect of freedom of expression. Conservative Members say they care about freedom of expression when it comes to freedom of speech in the now defunct Bill of Rights and in the Higher Education (Freedom of Speech) Act, but they seem to care about it rather less when it comes to their crackdown on the right to protest.

Both those Acts and the Public Order Act, which we want to see repealed, apply only in England and Wales, but as my hon. Friend the Member for Glasgow Central (Alison Thewliss) ably explained, in her usual way, many Scots come to London because, unfortunately, the seat of power is still at Westminster and a lot of legislation is passed in Westminster on matters about which Scots feel very strongly, such as nuclear weapons, so we often come here to protest. It also matters what happens to foreigners who come to London. What happened to that Australian lady who was lifted by the police and kept in jail all day on the day of the coronation was a disgrace. I hope she has taken legal advice, because she ought to be able to get hefty damages for wrongful arrest. I can just about understand why the police might have made a mistake, but I do not understand why they did not realise their mistake sooner and why that poor woman was kept in the cells for hours on end. There is a suspicion that political pressure was on the police to crack down, and I will come to that in a moment.

At the time of the death of Her late Majesty Queen Elizabeth, there were some protests when the new King was proclaimed. Many of us were concerned about heavy-handed arrests of people, both north and south of the border, who were protesting in the name of republicanism, anti-imperialism or disapproval of the behaviour of a certain member of the royal family. Some might question whether it was the appropriate time to do that, after the death of the Queen, but the right to protest is fundamental and should be facilitated. The fact that it might upset some people does not mean it should not be allowed to happen. After what happened in the aftermath of the Queen’s death, many of us warned that in future greater care would need to be taken by the police to facilitate the right to protest, particularly during the coronation. What is so awful about what happened to those six republican protesters lifted because of their luggage straps, under the locking-on provisions of the 2023 Act, is that they had gone to incredible lengths to discuss in advance with the police the nature and extent of the protests they wanted to make. They were then lifted at the start of the day and, again, held until after 11 o’clock at night. I do not understand why they had to be held for so long when a mistake had been made.

Instead of looking at the necessity of facilitating protest, what happened prior to the coronation was that parts of this Act were rushed into force with incredible haste and they appear to have been used to crack down on protesters who had gone to considerable lengths to try to clear their actions in advance with the police. As I said, there is a suspicion that political pressure was brought to bear on the police. If that was to have happened in a democracy, it would be scandalous. It is not me making this accusation, because a senior source in the Metropolitan police said that “pressure” had come from above and Sir Peter Fahy, the former chief constable of Greater Manchester police, said on Radio 4’s “Today” programme that what happened with the wrongful arrests at the coronation has to be seen in the “context” of media, political and public pressure on the police. He referred to what he called

“some pretty direct and personal feedback”

brought to bear on Sir Mark Rowley before the Home Affairs Committee on 26 April. Sir Peter, a senior retired police officer, also said, as the Opposition and the SNP have said in this House and are saying again today, that the 2023 Act is poorly defined and far too broad. That is what Opposition MPs said about the offence of locking-on and it was proved to be right by the arrest of those six innocent protesters at the coronation.

[Peter Grant]

I have no doubt that the Government will deny until they are blue in the face that any political pressure was ever put on the Met, but does my hon. and learned Friend agree that the deliberate timing of the rushed passage of the Bill through its final stages could not have done other than send a clear message to the Met that it was expected that that legislation was to be vigorously enforced on coronation day, the first major day of protests after it was put in place? Is it not the case that the Met commissioner’s statement could only have been intended to make every police officer on duty that day feel that they were under pressure to deliver the goods?

[Joanna Cherry]

That very much seems to be the case.

As my hon. Friend the Member for Glasgow Central (Alison Thewliss) said, the Home Affairs Committee will be conducting an inquiry on this tomorrow and hearing evidence. I am pleased that both the Chair of the Justice Committee and myself, as Chair of the Joint Committee on Human Rights, have been asked to join in that inquiry. I am very much looking forward to getting to the bottom of the question of whether political pressure was brought to bear, because I want to be clear: it would be absolutely unacceptable if political pressure had been brought to bear on the police. That sort of thing should not be happening in a democracy.

I will wind up in a minute. I have been speaking so far in a personal capacity, but, as Chair of the Joint Committee on Human Rights, I wish to point to our legislative scrutiny of the Public Order Act and of part 3 of the Police, Crime, Sentencing and Courts Bill. The Joint Committee is a cross-party Committee of six MPs and six peers—Tory, Labour, Liberal Democrat, SNP and Cross-Benchers. We produced two unanimous reports saying that both Bills, as they were then, went too far in cracking down on the right to protest and did not get the balance right under articles 10 and 11 of the European Court of Human Rights.

--- Later in debate ---

[Peter Grant (Glenrothes) (SNP)]

I want the Act to be repealed because it is a dangerous Act and, in spite of the protests we have heard, it very much affects the people of my constituency. It is not my choice that their laws are too often made here, but that is the way we have it for now. If they want to protest against the laws that have been made against them and pushed on to them, this is the place that they should come to protest. Scotland’s citizens are not yet in the same position relative to this place as the French citizens the Minister mentioned earlier. One day soon we will be, but for now, if my constituents want to protest against the obscenity of nuclear weapons, against the theft of the WASPI women’s pensions, against the daylight robbery that is inflation in food prices and electricity prices, against the billions of their pounds that are being thrown away through incompetence on HS2 and against the further billions being gobbled up by Tory party donors and friends through dodgy covid contracts, the place to protest against all those things is here—either outside this place or in the vicinity of this place—and anything that impedes the right of citizens to protest outside this place does affect my constituents. I notice, by the way, that even though the Tories and Labour think this is nothing to do with Scotland, they were quite happy to whip their Scottish MPs to vote on the Bill’s passage through this House.

It used to be a matter of television satire in a “Not the Nine O’Clock News” sketch that a police officer could arrest a completely innocent man on a whole series of trumped-up charges—because, we were led to believe, of the colour of his skin—such as possession of an offensive mother-in-law, or wearing a loud tie in a residential area during the hours of darkness. We now have it confirmed that, among the reasons that people—possibly my constituents—can be arrested and charged on the whim of a police officer on suspicion of having intent to cause serious disruption, are that they are protesting outside this place while walking too slow, running too fast, shouting too loud, having shoelaces that are long enough to tie themselves up to a lamppost with, carrying a megaphone or simply being close to a police officer who thinks they might have the intent to do any of those things. It could even be, as was the case with one unfortunate ultra-royalist last week, that they are standing in a crowd close to somebody who a police officer thinks might be thinking about doing one of those things. That can get them huckled, locked up and, as my hon. and learned Friend the Member for Edinburgh South West (Joanna Cherry) said, made to spend the whole day in the cells, when they had clearly neither done anything wrong nor ever had any intent to do anything wrong. It strikes me that, in the same way as “Not the Nine O’Clock News” had all those ludicrous offences, the Minister, who is no longer in his place, appears to have accepted that if he is not quite the Minister for silly walks, he probably is the Minister for walking too slowly.

The Minister has said today what he said in answer to the urgent question last week, and it is an important point. He referred to clear evidence of multiple plots to deliberately cause a stampede to endanger the public. That would be a serious and reckless way to behave. Very interestingly, in the detailed statement the commissioner has issued—the statement is still on the Metropolitan police website—he does not say that that was the intent. The police were concerned about loud, noisy conduct that might have upset the military horses—military horses that are scared of noise, really? But very pointedly, they have not made a public statement that the intention was to cause danger to the public. That is important, because I cannot believe that the commissioner would not have said that if they thought they had the evidence to say it. I hope the Minister will clarify that point when summing up, or at least by responding in another way.

Where there is a genuine threat to public safety, we expect the police to intervene. The police thinking that somebody might have in their possession something that could potentially be used to cause disruption is not a legitimate cause for arrest; at least one Scottish Conservative MP could be arrested for carrying a whistle on his way home from one of his many jobs. Almost every significant advance in the rights of citizens, not only here but across the world, has relied on people doing things that would now be unlawful, criminal offences in the United Kingdom, with its mother of Parliaments; I notice no one seems to know who the father was.

This is a bad law, it is a dangerous law and it cannot be allowed to stand. This law would never be acceptable in Scotland. We heard earlier that when the people of Wales get a proper chance to decide their own future, they will get rid of this law as well. This debate offers Parliament a chance to accept that it has made a mistake and to put its mistake right now, not wait 10 years for the mistake to bed in.

National Crime Agency Investigation: Javad Marandi

Peter Grant Excerpts

Tuesday 16th May 2023 Commons Chamber

[Chris Philp]

I am afraid I do not know the details of the cash flows connected with that gentleman; nor do I know the details of the live investigation. I suggest to Members of the House that we wait until the investigation is concluded. All political parties should be careful, in the way the hon. Gentleman just described, in making sure that donations they receive are properly sourced and untainted.

[Peter Grant (Glenrothes) (SNP)]

I find it astonishing that a Minister who knew he was coming to the Dispatch Box to answer this question did not bother to read the BBC’s webpage, which had a very simple diagram showing exactly where the £40 million Mr Marandi received had come from. I commend my hon. Friend the Member for Glasgow Central (Alison Thewliss) not only on securing this urgent question, but on her determination in dragging the Government kicking and screaming to the point that they are finally going to do something about the Scottish limited partnerships, because, as we all know, there has never been any legitimate purpose for establishing them. Two of the partnerships she mentioned, Hilux Services and Polux Management, have been named in court by a judge as part of a money laundering ring. During the short period that Hilux Services existed, from 26 March 2013 to 3 October 2016, a time in which Mr Marandi was a significant beneficiary of the company, he donated £143,000 to the Conservative party. Does the Minister accept that, if it is established that, during the time Mr Marandi was making the donations, he was also in receipt of dirty, laundered money, that money must be paid back immediately?

[Chris Philp]

As I have repeatedly said, the Government cannot, will not and should not comment on live investigations, and we never have. The hon. Member asserts as fact what he has read on a news website, but let us wait for the investigation to conclude before drawing conclusions. The last people I will take lectures from on campaign transparency when it comes to finance are the nationalists, who are under investigation by Police Scotland as we speak.

Coronation: Policing of Protests

Peter Grant Excerpts

Tuesday 9th May 2023 Commons Chamber

[Peter Grant (Glenrothes) (SNP)]

The Minister has repeatedly told us that there was evidence of, in his words, a well-developed plot to misuse activated rape alarms in a way that would clearly have been criminally reckless, which no one would condone. Given that that plot was so well developed, with the exception of three Night Stars volunteers who have been mentioned, can the Minister tell us, of all the people arrested, how many were found to be in possession of rape alarms, how many have been charged with intent to use those rape alarms for criminal purposes, and how many rape alarms were seized on Saturday? If the answer to all those questions is nil or next to nil, does he accept that in this case the police intelligence was badly and dangerously misinformed?

[Chris Philp]

I think that there is an update on all the arrests on the Metropolitan police website, which provides some of the information for which the hon. Gentleman asks. Some arrests were made close to the ceremonial footprint, including people who had large quantities of paint. Other arrests were made at locations away from the ceremonial footprint at what might be described as a safehouse. The briefings that I received from the Met the night before—I believe the Mayor of London received them and possibly the Home Secretary; I am not sure—indicated multiple, well-developed and credible plots materially to disrupt the coronation, and it is greatly to the credit of the Metropolitan police that they prevented those from unfolding.

Illegal Migration Bill

Peter Grant Excerpts

Report stage
Wednesday 26th April 2023 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

I thank the hon. Lady for her point of order and forward notice of it. I can only respond to the bits for which the Chair is responsible, and I am content that the House has proceeded perfectly properly, but her comments are on the record.

[Peter Grant (Glenrothes) (SNP)]

Further to that point of order, Mr Deputy Speaker. Have you or Mr Speaker had any contact from the Leader of the House to indicate whether in future the Government intend to allow sufficient time for major pieces of legislation to be properly considered before being pushed through?

[Mr Deputy Speaker]

I thank the hon. Gentleman for his point of order. I can only speak for myself—I have not spoken to Mr Speaker—but no one has been in touch with me.

Fishing Industry: Visas for Foreign Workers

Peter Grant Excerpts

Thursday 20th April 2023 Commons Chamber

[Miss Dines]

The Government are fully aware of shortages in all sorts of industries in the country, which is why we want to get more British people back working, particularly the over-50s, and there have been a lot of schemes on that. The Government are working hard, and there will be a package of support to enable employers to implement this measure, so that the fishing industry is the same as every other industry. We are cognisant of differences—geographical and otherwise—and the idea is that the will of this House to have a skilled worker scheme is brought into play.

[Peter Grant (Glenrothes) (SNP)]

The Minister may not be aware that the Scottish Fishermen’s Federation was literally the only part, across the entirety of Scottish civic society, that openly supported Brexit. It continued to support the Government’s approach for a number of years. Even it now says that it has gone badly wrong. If the only cheerleaders that Brexit ever had in Scotland are telling the Minister that they have been sold a pig in a poke, is it any wonder that as well as resoundingly rejecting her party and her Brexit, the vast majority of people in Scotland now believe that her Union’s days are severely numbered?

[Miss Dines]

It is unfortunate when the nationalists try to bring everything down to Brexit or independence. This is a whole of the United Kingdom system. We have a skilled worker programme, and fishermen will need to apply. There will be generous support. Despite the six-month delay, we need to give further assistance to the industry, and we will announce a generous package imminently.

Illegal Migration Bill

Peter Grant Excerpts

Tuesday 7th March 2023 Commons Chamber

[Suella Braverman]

My hon. Friend puts it very well. Labour’s policy on this issue is indeed open borders. A former Labour Home Secretary did grant an amnesty to asylum seekers. It is about ensuring that illegal migration continues through the back door. That is not what the British people voted for; that is not what this Parliament will vote for.

[Peter Grant (Glenrothes) (SNP)]

It will not have escaped the Home Secretary’s notice that despite what I have no doubt have been the best efforts of her Government Whips, they have not found a single Member of Parliament from a Scottish constituency to have a single good word to say about the Bill. The fact is that Scotland’s MPs, Scotland’s Government, Scotland’s local authorities and Scotland’s people speak as one in saying that our biggest complaint about the UK asylum system is that her Government will not allow us to welcome as many refugees and asylum seekers as we want to. May I make a suggestion to the Home Secretary? Will she agree, even on a temporary pilot basis, to allow the Scottish Government to take control of our asylum system? We will see whether the best way to deal with asylum seekers is to treat them like human beings or to treat them in the way she wants to treat them.

[Suella Braverman]

All the Scottish National party can point to is a track record of failure when it comes to discharging its humanitarian duties to asylum seekers. It totally failed to support Ukrainians and had to hand over responsibility to the UK Government. It totally failed to take its fair share of refugees in comparison to other parts of the UK. It is failure, failure, failure from the SNP.

Economic Crime and Corporate Transparency Bill

Peter Grant Excerpts

2nd reading
Thursday 13th October 2022 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

I am glad to follow the right hon. Member for East Hampshire (Damian Hinds), whom I believe was the Minister who said he was not happy with the progress that had been made on tackling economic crime thus far. None of us in this place are happy about the situation on economic crime.

SNP Members of course welcome this Bill, which is overdue. Many of its aspects could have been picked up in legislation years ago. Members of the anti-corruption coalition across the House have been clear in calling for more action from the UK Government on this, and all this delay has cost us very dearly; openDemocracy believes that economic crime across these islands costs us £290 billion a year—just think of the services we could all be enjoying if that money were not being plundered by those people engaging in economic crime. As with all things around dirty money, we have to ask: who benefits from this? Who benefits from action not having been taken for all these years? There is much to be done, and the panoply of agencies involved must be properly co-ordinated and resourced to tackle it.

This is a big Bill and there is a lot more that could be said. My not saying something in particular now does not discount my saying something about it later, when the Bill goes into Committee. I thank everybody who has sent briefings ahead of this Bill, because that has been incredibly useful.

The UK Government must go after not only those committing economic crimes, but those enabling it. Robust supervision and proper deterrents need to be in place for those responsible for economic crime. Directors and enablers of economic crime need to face proportionate sanctions, and effective anti-money laundering supervision needs to be carried out consistently across sectors. Legislation on economic crime needs to be futureproofed, as a failure to ensure that means that legislators are always playing catch-up with criminals. We see that particularly in the field of crypto.

As Companies House reform is a significant part of this Bill, I will start with a few red flags from the UK Government that I would like to deal with straight up. Having lots of companies on the Companies House register is not the win that Ministers often seem to think it is, mainly because a good chunk of the register is absolute guff. It is like a kid in the playground with an impressive looking pile of football stickers for swapsies; but instead of getting an easy trade for the Kevin van Veen of your dreams, you find that the kid has a pile of doublers, triplers, old stickers from previous seasons, stickers from rugby and cricket, a few with Stormtroopers on and some they have drawn themselves. Sorting out that pile of stickers is pretty easy, but sorting out the millions of companies on the Companies House register is a much tougher task. Even the Department for Business, Energy and Industrial Strategy impact assessment, which I would draw everybody’s attention to, hints at the difficulty in unpicking the duplicates from the system. It is riddled with error, never mind the impact of those using it for nefarious purposes.

Having looked myself up on the register, it appears that I am on it three times; three different Alison Thewlisses exist out there in the world—just imagine that! The register believes I am three separate people, rather than the same person having been a director at different points in my life. The Home Secretary, who, disappointingly, has disappeared out of this place before hearing from the third party in this House, is on the register in her own name and in her maiden name, with no link to suggests that we are talking about the same person. The BEIS Secretary is on it as the director of 11 companies with his surname hyphenated and a further three companies with it unhyphenated. I am unclear what the process is by which Companies House will set about tidying up this basic type of messiness within its register. It should not just be put on individuals to fix this; there needs to be some mechanism by which it is all corrected.

The new objectives being given to Companies House are welcome—they are a step up from its being a passive recipient of duff information—but it is unclear how exactly they will work. The querying power must be a wider, separate piece of work to pick through in detail the existing register and figure out what is actually valid, rather than relying on helpful citizens such as Oliver Bullough, Graham Barrow, Richard Smith and David Leask to report in their concerns, as they often do.

[Peter Grant (Glenrothes) (SNP)]

There is, of course, only one Alison Thewliss. She mentioned Graham Barrow as one of a number of exceptional individuals who do a lot to expose the kind of things going on at Companies House that it should really be doing. I do not know whether she has followed his Twitter account recently. On 10 October, he tweeted that Companies House had just accepted the registration of a business called “Legat Business Limited”, which has a single director, called “Andrei Perezhogin”. His nationality is “Russian”, his place of residence is “Russia”, and he describes his occupation as “Men”. He claims to have set up this company with £100 million of capital. Does she share my alarm that it appears that a Russian living in Russia can invest £100 million in a British company and—this is without the powers in this Bill—nobody at Companies House thinks anything of it?

[Alison Thewliss]

I absolutely agree and share my hon. Friend’s concerns. Graham Barrow does great work on Twitter and in other places to highlight such scenarios. Whether or not that person exists, whether or not that company is valid, and whether that money is even being invested anywhere, never mind in this company—this exposes the nature of the garbage in the Companies House register. The Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Dean Russell) should consider what he intends to do about that situation, because the register also contains abusive names and people being registered when they do not know they have been registered. How do such people go about correcting the register where companies have been registered in this way without their knowledge or consent? Home addresses are being used although the person who lives there has no knowledge that their address has been used until a whole wheen of paperwork from Companies House arrives at their door. These things are being regularly exposed; they should not come as news or as any surprise to Companies House or to Ministers in this place. In the interim between this Bill making progress through the House and its eventually coming into force, what will happen to stop these “companies”? They are among the thousands of companies registered every week at Companies House.

The power to query company names where people might be setting them up to impersonate another company or for criminal purposes stands in contrast with the continued objective to allow companies to turn around their registration in 24 hours. There is a substantial industry in creating fake but similar names, and then using those companies to rip off the public. Without a vast increase in staffing in Companies House to assess and sense-check all these applications coming in, it seems that many will continue to slip through the net, even after these reforms. I suggest to the Minister that perhaps it would be better to build in a slightly longer application period to allow proper verification to take place. It is unclear—I seek confirmation from the Minister—whether the verification that is being referred to will be though the existing UK Government verify scheme used for passports, driving licences and tax returns, or whether a separate verification scheme will used. Using the existing schemes seems to work reasonably well for passports, driving licences and tax returns, and I am not aware of any particular issues being flagged for those—if there are, I shall stand corrected.

The BEIS impact assessment dismisses the opportunity to verify the link between directors or persons of significant control and their companies. Again, this should be changed. Furthermore, we have a golden opportunity here to clamp down on opaque ownership structures and I cannot understand why the Government would not want to do so. The Bill must bring in provisions that prevent all companies from being controlled by opaque offshore entities, which do not need to disclose information on their owners or structures because of where they are based.

I still seek to understand from the Ministers why Companies House cannot be an anti-money laundering supervisor in its own right; this is a huge gap within the system. The Office for Professional Body Anti-Money Laundering Supervision has had mixed results in holding the AML supervisors under its wing to account; professional bodies have not done all they can to interrogate their members. That would perhaps fall into the area of a failure to prevent offence. Culpable directors, senior managers and other enablers of economic crime, including professional enablers, need to face sanctions, and rules on AML supervision need to be applied consistently. That is not currently happening.

The non-governmental organisation Spotlight on Corruption noted that there are 22 industry bodies that currently oversee AML compliance in the legal and accountancy sectors. In 2021, OPBAS found that just 15% of supervisors were effective in using predicable and proportionate supervisory action; 85% were not. It also found that just 19% had implemented an effective risk-based approach to supervision. This disjointed approach to tackling money laundering is just not working: it is allowing too many to sail through the net.

In the UK, an estimated £88 billion of dirty money is cleaned by criminals every year, compared with the lesser, but still significant, amounts of €54.5 billion in France and €51.53 billion in Germany. To tackle the issue, it is vital that support is offered to smaller firms, which are often targeted by those who wish to engage in money laundering, criminality and other illicit activities, to enable such companies to spot red flags in respect of potential clients.

It is beyond me why the UK Government allow the verification process for company registration to be carried out by company formation agents when they are the very bodies that have to a large extent created the problem that the Government are trying to solve. As the Home Office report “National risk assessment of money laundering and terrorist financing 2020” pointed out:

“Company formation and related professional services are…a key enabler or gatekeeper of TBML”—

trade-based money laundering. We should be reducing their power, not endorsing it.

Under the Bill, all third-party agents who set up a company on behalf of someone else will be required only to declare that the information they are providing on behalf of that person has been verified. I return to my verification question: what is the system for that? Without giving Companies House the ability to carry out independent checks to ascertain whether the “verified” third-party information is correct, it is just going to become a box-ticking exercise. The verification requirement in itself has no teeth and is unlikely to lead to any material change in how third-party agents carry out that key verification process.

Before I leave Companies House, I should say that I am deeply disappointed that the UK Government seem to show no willingness to increase the ridiculously low company registration fee: £10 or £12 is nothing in the scheme of things. In Germany the equivalent fee is €400, and in the Netherlands it is around €52; I am sure the Minister would regard neither country as anti-business. Having a low fee is not the benefit that Ministers seem to think it is. I am open-minded as to what the figure ought to be, but in its economic crime report the Treasury Committee agreed that £100 would be perfectly reasonable and give Companies House more resources to deal with the huge challenges it faces.

Improving relations between Companies House and the various law enforcement agencies is welcome. The Treasury Committee report on economic crime called the landscape “bewildering” and noted that both co-ordination and economic crime itself should be higher priorities for the Government. The scale of the issue is outlined in the BEIS impact assessment, with law enforcement referrals to Companies House rising from 1,400 per annum in 2015 to 9,300 in 2021. Given that we have heard how little economic crime is actually prosecuted, this feels like the tip of a very large iceberg.

With talk of future austerity and cuts, it is important that the UK Government invest in the enforcement agencies to investigate and prosecute economic crime. It is a specialist area and it requires well-paid specialist staff to tackle this scourge. The Scottish crime campus at Gartcosh is a great example of both efficiency and inter-agency working, but it can do this only if properly funded. A further round of Westminster austerity puts it all at risk.

I feel like I have been raising Scottish limited partnerships forever, and I have no hesitation about doing so again. Because SLPs hold legal personality and can possess property, they have become a very popular mechanism. The BEIS analysis was quite stark: between 2010 and 2016 they had a growth rate—one that the Government would love—of 459%. That alone should have set off alarm bells from Companies House to the Government Front Bench, but nothing terribly much happened for a long time. BEIS figures also state that as of 31 March 2021, SLPs made up 64% of all limited partnerships on the Companies House register. If we compare that with the fact that companies registered in Scotland make up just 5% of companies in the UK, we can see that something is badly out of whack.

SLP registrations have plateaued since the rules were tightened, but they have not gone away. They have also continued to be implicated in money laundering, arms running and sanctions busting, including in respect of the Russian aggression against Ukraine. They are set up with partners in secrecy jurisdictions, with companies named as persons of significant control, which is against the rules. Linking to an actual person with an actual address would be progress, as would limiting the number of times that an address or person could be a company director. To date, enforcement and fines for breaching the rules that the Government themselves set up have been few and far between. There is little point in having rules that are just not enforced.

As I have pointed out before in this place, there are also knock-on effects to our neighbours in Ireland. As there has been a slight tightening of the rules here, registrations of Irish limited partnerships have soared. What conversations has the Minister had with his counterparts in the Republic to ensure that we are not just shifting criminal activity from here to there? All possible co-operation must be undertaken to avoid criminals shifting their business over the sea.

I wish to ask about the links with other legislation that is currently going through this place. The Financial Services and Markets Bill has a significant section on the regulation of cryptocurrencies, which have become incredibly popular with organised crime incredibly quickly, as a means of shifting money as well as of scamming naive members of the public. It is unclear how the legislation before us interacts with that Bill and the halo effect that might be created by the regulation of certain cryptoassets but not others.

When the Treasury Committee took evidence on the Online Safety Bill—which has disappeared but will hopefully come back at some stage—we were concerned about crimes being carried out via the internet and social media platforms. Currently, the banks of those who are scammed have to pay up, but the social media companies themselves are not held accountable. For example, scams conducted over Instagram or Facebook Marketplace, scam messages sent over WhatsApp and unregulated financial advice given via platforms like TikTok are not currently covered. They should be given an awful lot more attention.

I was glad to hear from the Home Secretary that there have been some conversations with the Scottish Government about the implications of this legislation in Scotland, because Scots law is, of course, a devolved area. Registers of Scotland administers the register of persons holding a controlled interest in land, which was launched on 1 April and shows who controls the decisions of owners or tenants of land and property in Scotland. I would like a bit more information from the Government about the conversations they have had with Registers of Scotland and the interaction with the register of oversees entities. Scotland did not hang around waiting for the UK Government to make legislation on this issue; we got on with the job.

I look forward to tabling amendments to try to improve this Bill, and I really hope that for once the Government will listen and be constructive on some of the issues we raise. We would not be in the situation we are in today had they done so during the debates on the Sanctions and Anti-Money Laundering Bill or umpty other bits of legislation over the years. We are all clear in this place that robust supervision and proper deterrents need to be in place for those responsible for economic crime.

We on the SNP Benches are looking forward to independence and setting up our own robust systems to register companies and to prevent economic crime. Nobody would choose the UK system as it stands, and it remains to be seen whether it can be adequately repaired.

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[Kevin Hollinrake (Thirsk and Malton) (Con)]

It is a pleasure to speak in this debate and a particular pleasure to speak after the right hon. Member for Barking (Dame Margaret Hodge). She has done incredible work in this area for many years, for which we should pay tribute to her, and I hope she will continue for many years to do the same. I know that she has talked once or twice about hanging up her political boots—if the accommodation Whip is listening, I would very much like to inherit her office if she ever does—but nevertheless I hope she continues in Parliament for many years to come.

On a more serious note, all hon. Members deal with tragic cases and I want to refer to a couple of mine. Leah Heyes was a 15-year-old girl whose life ended in a carpark in Northallerton in 2019. Andrew Bellerby took his own life aged 35 in 2015. The connection between those two tragic cases is, of course, drugs. Lia suffered an adverse reaction to her first experiment with ecstasy, and Andrew’s life had been devastated by drug dependency. We also try to help families in those tragic cases, who are trying to pick up the pieces and make the best of what has happened to them, by putting in place measures to stop such things happening again. Too often we look at ways to try to deal with suicide cases more effectively or clamping down on people who deal drugs, but that is treating the symptoms, not the causes.

The causes are linked to economic crime. Many people will have watched the television series “Narcos”. The big cartels make a huge amount of money distributing the drugs that result in those tragic cases. They make so much that they bury hundreds of millions of pounds, because it is difficult to legitimise the money. They are not supposed to be able to pay that dodgy money into a bank or buy a yacht or a house with it, because questions should be asked about where the money has come from. Without the ability to launder the money, it is pointless perpetrating those horrendous crimes and being the linchpins behind those tragic cases.

The reality, however, is that many of our large financial institutions facilitate the laundering of that money. In 2012, HSBC, which we regard as a trusted organisation, was fined £1.9 billion for laundering money for the Sinaloa cartel, which was run by El Chapo. It is incredible that that would happen, but the obvious reason it does is money. The banks can make huge amounts of money themselves. My friend the right hon. Member for Barking mentioned the Danske Bank case. Normally a regional branch of a bank would have a profit margin of about 20% on turnover. The Estonian branch of Danske Bank that dealt with the £200 billion of Russian kleptocrat money had a profit margin of 460%, and that huge amount of money was the incentive. It is inconceivable that the people at the top of HSBC and Danske Bank did not know what was going on. It is impossible to make such extraordinary profits without those at senior levels knowing what is going on. But time and again we simply fine the bank and do not hold the individuals to account.

Drugs are not the only issue. Some of them are problems that we are trying to solve, such as the small boats crisis. Traffickers are making huge amounts of money and they need to be able to move that money around. Paul Stanfield, the head of economic crime at Interpol, says that it is all about the money and

“If you want to tackle organised crime, you have to go after the money”.

But the reality is that the UK makes all this easier. Because of some of our lax regulations on shell companies, which allow money to be hidden behind the veils of different companies in different jurisdictions, and because of the expertise in London and our overseas territories, the UK is the destination of choice for money laundering. The money may go to different places but it is laundered through London.

That is why many of the measures in the Bill are welcome, including those on transparency and Companies House. This is a big job. It is not only new companies whose directors must be verified, but existing ones. That is millions of companies. The Minister has been excellent in engaging on these issues, as was the previous Security Minister, but I would like to understand how that will be achieved. We may be putting £63 million into Companies House, but verifying the identities of people who have significant control over organisations will be a big job.

The resources going to Companies House need to be beefed up, and it makes sense to increase the very low fee of £12 for setting up a company in the UK to £50 or £100. I have set up quite a lot of companies in my time, and a fee of £50 or £100 would not have deterred me. That could increase resources to make sure that the enforcement happens. Too often, we look at innovation and legislation but we do not look closely enough at implementation. Without that, it is pointless having this debate. Implementation is key, and resources are key to that.

We are bound to focus on measures that are not in the Bill—that is what Back Benchers do. I have said many times that the No. 1 measure we need is an extension of the failure to prevent provisions on bribery and tax evasion, which have been so effective. People say that we talk a lot and never get anything done, but the bribery provisions have been massive in holding corrupt companies to account. The Serious Fraud Office has deferred prosecution agreements for Rolls-Royce for Airbus, with almost £1 billion in fines going to the Treasury. The SFO also prosecuted the GPT Special Project Management Ltd case. The SFO does not get many successful convictions but GPT Special Project Management Ltd pleaded guilty in Southwark Crown court in 2020, and paid £28 million in financial forfeitures as a result, on the back of the Bribery Act 2010.

I pay tribute to my hon. Friend the Member for Cheadle (Mary Robinson) for her work on whistleblowers. It is an area that the Bill does not cover at the moment, but I hope that the Minister will introduce more provisions. My constituent Ian Foxley blew the whistle in 2011, resulting in a conviction 10 years later. He was well paid, operating in the middle east for GPT, but he has had 11 years without any remuneration. He was earning probably £200,000 a year, so he is millions of pounds down. We do not protect or compensate whistleblowers, and that is wrong. Those people do the right thing and come forward but—not to put too fine a point on it —we hang them out to dry.

[Peter Grant (Glenrothes) (SNP)]

Does the hon. Gentleman agree that there is a grave injustice when those who have done the right thing have a lifetime loss of earnings of millions of pounds, but when crooked accountants are called up before and disciplined by the Financial Reporting Council, their loss of earnings from being suspended for a short time, which could run into millions of pounds, is taken into account? The sentence is often more lenient if it will have a significant financial impact on an accountant who has given false information to the FRC. It appears that the crooks are better treated than the people who try to bring them to justice.

[Kevin Hollinrake]

The hon. Gentleman makes a very interesting point. We need to clamp down on enablers of all kinds, and we need to get tougher in lots of ways to crack down on this in the way that we would all like to see. I know that provisions on whistleblowers will not be part of this Bill—although there may be amendments in Committee to that effect—but we want those brought forward as quickly as possible.

The failure to prevent is so important. It has to include the ability to hold an individual director to account, which would start to reduce the incidence of money laundering and the facilitation of all kinds of offences, including the huge profits made from drug dealing. An illustration of this is what happened with health and safety legislation back in 1974, when directors were made individually responsible and could go to jail if they did not prevent or seek to prevent serious injuries on their building sites. It became a health and safety offence that could be pinned on the individual. After that happened, deaths and serious injuries dropped by 90%. Of all the measures we have talked about today, this would have the biggest effect in terms of cutting down on economic crime, because lots of our financial organisations are complicit when it suits their interests to be so.

There are many other things we should do. We should extend what we did with unexplained wealth orders in terms of cost protection to other elements of the Proceeds of Crime Act 2002 such as property freezing orders and recovery orders. Bill Browder, who is very outspoken in these cases, has come up with an interesting idea. If an individual is sanctioned, anyone who has dealt with that individual—whether it be an accountant, a solicitor or anyone else—should have to hand over their records in connection with that individual to the authorities, so that we can track down the money more effectively. I cannot see a good argument against that.

We have talked about freezing and seizing assets. That is difficult to do, because we have to prove that there was a crime, and we believe in property rights and the rule of law in the UK, so taking these assets off individual oligarchs is tough. One thing that seems like an open goal is the fact that we hold about £30 billion in Russian foreign currency reserves. It is clear that Russia is guilty of international crimes in its invasion of Ukraine. We could legislate to ensure that that money is not just frozen, as it is currently, but confiscated, seized and used to pay reparations to Ukraine.

There are many other things we could do, which I will talk about further during the later stages of the Bill. I may well table one or two amendments, which I know Ministers will continue to engage with and, I hope, will look kindly on, because all these measures will clamp down on economic crime, which is good for the UK and good for business. It is not bad for the economy—it is good for the economy—and it will drive out these heinous crimes all around the world, not just in the UK. We will then be able to point proudly at our record on tackling economic crime, and I hope the Minister will take credit for that as this legislation passes through the House.

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[Layla Moran (Oxford West and Abingdon) (LD)]

It is a pleasure to follow the hon. Member for Weston-super-Mare (John Penrose), who has championed these matters for an incredibly long time, along with so many other hon. Members. It is always an honour to take part in such debates because it feels as if it is Parliament pushing Government to go faster, further and deeper.

I do not suspect that economic crime Bill 2 will be any different from economic crime Bill 1. We all welcome the fact that we are here, finally, but we all have a “but”, which is that we wish to do more. Certainly, the speeches so far indicate that the spirit with which we approached economic crime Bill 1 lives proudly within us. We achieved quite a lot in that and I hope that economic crime Bill 2 will be equally as fruitful.

In some ways, I hope it will be the last economic crime Bill, because I hope we can get it done properly this time. In economic crime Bill 1 we kept being told, “Well, don’t worry about that. We are going to put it to one side. It’s a bit complicated. We need to go away and look it, and then we will come back and sort it in economic crime Bill 2.” When we picked up our copies of economic crime Bill 2 and saw that it was nice and hefty, I thought, “This is good.” Then I looked at it and, I am afraid to say, I was quite disappointed. There was a lot that was mentioned, both from the Dispatch Box and in private with Ministers, that we thought we were going to tackle this time, and it simply is not there.

That frustration leads us all to want to push the Government to go further. There is also the deep frustration that it has taken a war to get to this point. I see bombing in Kyiv, Crimea and elsewhere, and I have a Ukrainian guest living with me who feels these things very deeply. Every time I see that, in the back of my mind I think, how much of the money that has gone into Putin’s coffers to help pay for what is being done to her and her family came through our economic system? How shameful that there is that direct link. We know that link is there because that is what caused us to act as quickly as we did with economic crime Bill 1. I know there is that feeling of frustration in all parts of the House and that we want to tackle the issues as comprehensively and finally as we can, this time.

In common with other hon. Members, I welcome the measures in the Bill, in particular the reform of Companies House and Scottish limited partnerships, which are significant steps forward. We have not even had a framework to deal properly with many parts of economic crime. However, even if we have a legal framework for something, we still have to be realistic. We have a legal framework for burglary, muggings and all sorts, but there still needs to be adequate resourcing for the enforcement agency. In that case, the enforcement agency is the police but with economic crime there are 22 different agencies that are meant to do that, in particular the National Crime Agency. The funding for those agencies is falling, not increasing. If we are serious about tackling economic crime, there needs to be a commitment of money to the agencies that are the force behind those warm words from the Government. When the Home Secretary was questioned on that earlier, she gave very woolly answers.



As the Bill progresses through the House in the next few weeks, I am hoping to hear the Government say that they know how much money they need to do the job they have to do. The reasons for doing it are entirely in our self-interest. There is not just the geopolitical reason that I described—the shame that money flowing through our systems is in any way funding nefarious purposes—but the fact that HMRC has something to gain. If we can get our hands on some of that money and find ways to divert it, we can find ways to spend it better, away from the criminals. That is surely in the taxpayer’s interest.

As was mentioned by the right hon. Member for Barking (Dame Margaret Hodge), if we want to be seen as a good place to do business, we cannot allow ourselves to be a country that accepts this money. It taints all businesses—the good ones with the bad—that are deciding to trade in our financial markets. It is in our gift to make this country the best and safest place in the world to do business. It is in our own self-interest to tackle corruption. It is not just about the war; there are more far-reaching consequences.

I want to draw the Minister’s attention to a few areas now so that he has plenty of time to work on them before we get to Committee and the Bill goes through its next few stages before eventually reaching the other place. First, and most importantly, we need to start with the provisions of the first economic crime Act and look again the register of beneficial ownership. While it has now come into force, if I was an enabler wanting to make a mint from my oligarchs, it would be really easy for me to tell them how I would get around the new legislation. All I would have to do is transfer the entity into one of my relatives’ names, or, instead of having four people registered as beneficial owners, I would just need a fifth, and all of a sudden the problem would disappear. Those are two simple examples of how people can get around that register. Everyone recognises that economic crime Act 1 happened quickly, but given the time that we have had to properly scrutinise and think about these matters, I ask the Minister to consider amendments that would improve it. There is a small part of the Bill where the Government have started to do that for the register, so such amendments would be in scope. I therefore urge him to consider further amendments to that end.

My second question, which I posed to the Home Secretary, is about golden visas. We have heard absolutely nothing about them. It is not enough to say, “We’ve put a freeze on them and we’re not giving out any more.” The fact is, we did give them out. She clearly misspoke when she said that we sold them—that was rightly picked up on—but it is quite an interesting way of looking at it. Actually, many of the people who “bought” them will have seen it that way. There would have been an exchange. At the time, the idea was, “If you invest in this country, you get something back,” and in this case it was citizenship. Other countries do that, too. However, we know that golden visas were being used as a way essentially to whitewash people who should never have been given the right to reside here, let alone passports or anything else, and unless we understand fully the extent to which they were used, how and by whom, this place cannot hold the Government to account for what they are trying to achieve with the Bill.

We are in a perverse situation. We understand that the Minister has access to that review—it has been done, it is finished, and it is sitting there on Ministers’ desks—but Parliament has not seen it. That is unacceptable. At the Dispatch Box, the Minister should not say that he will look at it, as the Home Secretary did. I do not want her to look at it—I want to look at it. I want all hon. Members to be able to look at it. The Government should publish it so that we can see it. On economic crime, the slogan for all of us must now be “Better out than in”.

The third thing that I want to raise, as several hon. Members have, is the Law Commission’s look at the “failure to prevent” offence. While I was sat down I searched for that, because the pace has been so glacial that wanted to remind myself of the phases that it has already gone through. If I remember rightly, it was back in 2016, before I entered this place, that David Cameron mentioned it as part of his anti-corruption plan—in fact, I think he first mooted it in an article in The Guardian —and nothing happened. After having done a consultation announced in 2016, the Law Commission reported back in June. So we have been talking about the failure to prevent for five or six years.

The point made first by the hon. Member for Thirsk and Malton (Kevin Hollinrake) and then by the hon. Member for Weston-super-Mare (John Penrose) was that if we put the onus on the entities to prevent economic crime in the first place, that would be hugely powerful and speak to all of our concerns about the lack of resource for the National Crime Agency and the other agencies that are meant to enforce this area. That is really neat. Actually, it would be even better, because by putting the onus on the entities themselves, it would not have to cost the Government that much.

[Peter Grant]

What does it say about the Government’s priorities if they have taken six years and not brought in failure to prevent legislation for economic crime but have managed to bring in failure to prevent legislation that fines companies tens of thousands of pounds if they unintentionally give a job to somebody who under immigration law is not entitled to be here? Is there a question of priorities that needs to be looked at?

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[Peter Grant (Glenrothes) (SNP)]

Being a Scot, and in deference to the sensitivities of supporters of Celtic, Rangers and the Scottish women’s football team, I will maybe not talk about football, if that is okay by everybody else. Hopefully we will still have somebody left in Europe after tonight.

I welcome this long overdue Bill, but let us not kid on that it was made necessary by the illegal war crimes that have been committed in Ukraine over the past year, or even by the illegal war crimes that started in 2014. This Bill was needed 20 years ago, if not earlier. I welcome it because it gives us the opportunity to turn Companies House into what most people probably thought it was: an effective regulator playing its part in the fight against fraud, rather than an innocent bystander that watches while companies on its register scam our constituents out of billions of pounds every year and enable some of the most evil regimes and criminal gangs on the planet. Companies House has become a spectator because this Government and generations of previous Governments could not be bothered to give it the powers to be anything else.

My criticism of the Bill, like that of most other hon. Members who have spoken today, is that in too many areas it does not go anywhere near far enough. As has been mentioned, it is completely silent about one of the biggest obstacles to tackling corporate fraud: the fact that literally any company can easily dodge the existing requirements, and the requirements in the Bill, just by making sure that its ultimate owner is not a human being but a brass nameplate on the door of a building, probably in some dodgy Crown dependency. And while we are talking about Crown dependencies, why is it that we still allow Crown dependencies and British overseas territories to be such willing enablers of the evil perpetrated by Putin and so many others? That has to stop.

A few hon. Members have reminded us that, as well as enabling large-scale acts of barbarity around the world, economic crime hits our constituents very hard. I do not apologise for bringing up Blackmore Bond again; I will keep bringing it up until Phillip Nunn and Patrick McCreesh have been properly brought to book. They were able to move on from the £1 million they had made on the fringes of the London Capital & Finance fraud to set up their very own £46 million scam called Blackmore Bond.

At about that time, Nunn and McCreesh were directors of 35 companies registered at Companies House. Last time I checked, those 35 companies had collected 59 formal notices of disciplinary action—59 formal notices of compulsory wind-up—because they were acting illegally. They were failing to comply even with the woefully weak requirements currently imposed by Companies House. There was no way of flagging up the fact that the same directors were in charge of all those defaulting companies. There was no way of totting up their offences, like bookings for a footballer or speeding points for a motorist. Indeed, it was as if the motorist were able to get off by arguing that his licence could not be taken away because each time he was caught speeding he was in a different car.

We need to tighten that up. We need to be able to identify those who are directors of several companies that are all in default. There must be an accumulation of culpability; there must be speedy action, which means not just closing down the companies—that is often exactly what the directors want to happen, and it was certainly what Nunn and McCreesh wanted to happen—but taking effective sanctions against the directors.

A year or two before Blackmore Bond finally collapsed, it said in the accounts that it submitted to Companies House that it was relying on incoming money from future investors to pay back what it had previously claimed was guaranteed money to previous investors. In other words, the directors sent a document to Companies House, which put it on the website, saying, “We are a Ponzi scheme.” No one at Companies House noticed, because it was no one’s job to notice.

The auditors who signed off the accounts of one part of the group, which was a plc, were required to express a view on whether the company could be truly regarded as a going concern, but they were under no obligation to run up a red flag and say, “Not only can we not be sure that it is a going concern, but this company is designed to collapse, and it is going to collapse very soon.” Because they were under no obligation to tell anyone, client confidentiality meant that they were under an obligation to tell no one.

I commend to Members who have not seen it the BBC’s “Panorama” programme on Blackmore Bond—and not just because I am in it for about 10 seconds; the rest of it is very interesting as well. From that programme, I learned that Phillip Nunn—poor diddums—had been declared bankrupt. What a shame! I checked the Companies House records this morning, and found that he was still a registered director of two companies. I thought it was an offence for a bankrupt person to be a director of a company. Why has no one picked up on that? Perhaps we can at least find something for him to be charged with while the Serious Fraud Office and others are carrying out their checks.

However, you do not need to set up a company to get rich. Mr Nunn’s latest scheme is to set himself up on social media as some kind of lifestyle self-help guru. To be fair, helping himself is something that he seems to be quite good at. No one could fail to see what this is about. He is going online in order to reach a much wider audience. He comes across as very plausible and very personable, but he is grooming innocent victims, not just in the UK but all over the world, until he is ready to say to them, very confidentially, “Do not tell anyone else, but I have just found about a brilliant investment scheme: you are guaranteed to get money back.” It will be Blackmore Bond and LCF all over again, and at present there seems to be nothing anyone can do to stop it. They know it is going to happen, but they have to wait until it is too late and then try to console the victims.

Let me draw attention to one feature of many corporate scams and frauds. Instead of setting up one company, people set up a whole sequence of small companies. They run a company for about 18 months to two years, and just at the point when they have to publish a set of accounts, they close it down, shift what is left of the assets to a different company and start all over again. It is possible to run a business for 20 years without ever having to tell Companies House, or anyone else, anything about the money going into and out of the accounts. That should raise the reddest of red flags. If the same one or two directors are seen to be setting up a sequence of fairly small companies that never seem to do anything and are then wound up, Companies House should be looking at that, as should the fraud squad, because 90% of the time fraud will be the answer.

Between 2019 and 2022, a gentleman called Richard Philip Wells set up 24 such companies. Members who are interested in motor racing may recognise the name, because Richard Wells owns a motor racing team; he is not a poor man. Most of those 24 companies have never filed a set of accounts, and most have lasted for less than two years before being wound up. The few that have filed accounts have filed them on the basis of being dormant: it is basically, “Nothing to report, Sir.” But just how dormant were those companies?

On 15 November 2020 two of his companies, SHP Litigation Ltd and SHP Security Trustee Ltd, were set up on the same day. Companies House knows that two weeks later, on 30 November 2020, SHP Litigation granted a charge—effectively, a mortgage—to SHP Security Trustee. The charge document was signed on behalf of one company by its only director, Richard Wells, and a wee bit further down the page Richard Wells signed on behalf of the other company to confirm that he agreed with the conditions of the money that he was lending to himself.

A few months later, the same Richard Wells certified on the accounts of both companies that they had not traded, that they had been dormant and that they had carried out no activities during the previous 12 months. One of the statements that he submitted to Companies House has to be a lie. We cannot possibly have money being lent back and forth between two companies and then say that the companies did nothing—unless a company that did not have money lent money it did not have, secured against the assets of another company that had no assets at all. There is clearly something very sinister going on in that network of companies. On 5 July 2022, he shut down both companies, because by that time they had achieved their purpose.

It is noticeable that a lot of Richard Wells’ more recent companies had SHP in their names. One of them, SHP Capital Holdings Ltd, he set up on 29 November 2019. He used that company to buy a funeral plan company called Safe Hands Plans Ltd, which we have all now heard of. Why would somebody buy a funeral plan company that would never be able to comply with the Financial Conduct Authority’s requirements for the running of a funeral plan company after July 2022? Why spend money buying a company when he knew it would be illegal to operate less than two years later? The reason was that he was not interested in the company; he was only interested in an associated company where its money lived.

That money was not the company’s, but the customers’. The previous directors had lied to the customers that the money was held securely in an independent trust, but it was held in an associated company, with the same shareholders and the same directors. One of Mr Wells’ first acts was to sack the fund manager and move the fund management to a different, newly set up company that was run by his best mate. Fast forward a couple of years, and the whole façade crumbles. Safe Hands Plans goes into administration, thousands of people discover that their funeral plan money has disappeared and nobody knows where it has gone. I know where it has gone, Madam Deputy Speaker, and so does the Serious Fraud Office. I hope that it can quickly establish that sufficiently to bring charges.

There is no legitimate, lawful business reason for Wells, Nunn, McCreesh or dozens of others to set up so many tiny companies for a relatively small-scale operation. Companies House records show all the hallmarks of the kind of company set-up that is a red flag for money laundering, but nobody at Companies House spotted it. Nobody looked more closely to see whether there was a legitimate reason for it or whether it was a scam in preparation, because nobody in this place had ever made it the job of anybody at Companies House to prevent fraud, rather than to try to chase down the money afterwards.

I ask the Minister to confirm, in summing up, where in the Bill Companies House is given the responsibility, the legal powers and the resources to identify and investigate suspicious patterns of company formation and dissolution. If it is not in the Bill just now, will the Government undertake to bring forward an amendment in Committee to enable that?

I also ask the Government to consider some other amendments. HMRC has the power to look through the labyrinth of a company’s structure and tax the company based on what it does, rather than how it structures itself. Why do we not give the same powers to bodies such as Companies House? Why do we not extend the circumstances in which directors can be held personally and speedily liable in civil and criminal courts for their misconduct? Why do we not just outright ban the registration of any company whose ultimate owner is not a person with a pulse? The Minister may be able to explain why it is sometimes necessary to allow a computer bot to own a company that trades in the United Kingdom. I cannot think of an answer, but I hope he can enlighten me on that.

Why do we not base the reporting and audit requirements on the total size of the undertaking, rather than ignoring the fact that if we chop a big company into 30 bits, they all become so wee that they do not have to publish accounts and nobody is allowed to see what is going on? When the Financial Reporting Council publishes a sanction against a company’s auditors because of some flaw in the company’s accounts, why not also require that company to lodge the same document at Companies House so it appears on the front page of the record, rather than as a footnote on page 26 of the accounts in a couple of years’ time?

The Bill will make things better, but it will not make them anywhere near better enough. There is very little in the Bill that I am opposed to, but there is a lot that I am disappointed not to see in it. I became interested in this subject, as I suspect many Members did, after having people break down in my surgery because they had been cleaned out by people like Wells, Nunn, McCreesh and so many others. It became obvious to me quite quickly what changes needed to be made to legislation, first to stop these chancers scamming our constituents, and secondly to make sure that those who do it in the future and those who have done it in the past are brought speedily to a court of law, dealt with and locked up.

If I were the sort of person who broke into someone’s house and stole £1 million, no police force in these islands would rest until I was safely behind bars. If I set up a company and stole £20 million, the chances of me getting away scot-free would be very high indeed. The Bill makes it a wee bit more likely that I would get caught, but if I were criminally minded, it would still be a gamble worth taking. Until we make the law tight enough that economic crime never pays, our constituents will continue to pay the price of our failure.