Richard Fuller debates involving the Home Office during the 2019 Parliament

Leasehold and Freehold Reform Bill (First sitting)

Richard Fuller Excerpts
Mike Amesbury Portrait Mike Amesbury (Weaver Vale) (Lab)
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Q Hello Martin, good to see you. Are there any risks in banning new leasehold houses but not flats?

Mr Martin Boyd: Yes, there are risks. Currently, we do not have a viable commonhold system. Even if the Government were to come forward with the full Law Commission proposals, those had not reached the point where they created all the systems necessary to allow the conversion of leasehold flats to commonhold flats. I see no technical reason at the moment why we should not move quite quickly to commonhold on new build for extant stock. I think it will take longer—and, at the end of the day, conversion will be a consequence of consumer demand. People would want to do it. On my side, I would not want us to convert to commonhold, because I could not yet be sure that it would help to add to the value of the properties. It would make our management of the site a lot easier, but I could not guarantee to anyone living there that it would add to the value of their property—and that is what people want to know, before they convert.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
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Q Mr Boyd, I want to pick up something you said in answer to the shadow Minster, when you were talking about the treatment of property managers or managing agents in the private sector. You enumerated a list of three options: a code of conduct, which you said existed in the social sector; legislation or regulation; and also qualification, which I took to be professional qualification. Which of those three is the preferred path, in your view?

Mr Martin Boyd: I do not think the Leasehold Advisory Service would have a specific preferred path. At least two of those are important. I will add a fourth, actually. It is illogical that we do not have a requirement for professional qualifications for those managing particularly complex buildings.

Richard Fuller Portrait Richard Fuller
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Q Why is it illogical? I have no qualifications to be an MP; I am supposed to look after lots of things.

Mr Martin Boyd: I will be cautious, so that I am not rude in answering that. There are a set of skills that you would expect to acquire as an MP, and a certain set of skills that you need to acquire as a property manager. Buildings are complex entities, particularly large buildings. They have a lot of plant and a lot of complex systems. There is quite a complex interaction with the people who live in those buildings. There are voluntary qualifications that we have in the sector. The Secretary of State decided recently that there should be a mandatory level of qualification in the social sector. I do not see there being a logic in saying that we need one or the other.

In terms of regulation of managing agents, there is a problem. The ex-chair of the managing agents’ trade body said that it is perfectly legal to set up a property management company in your back bedroom in the morning and be collecting a large amount of money in the afternoon, without any regulation. I think that is a problem. One of the issues not considered in the Bill—perhaps it would not be relevant, although the Government need to consider it at some point soon—is that there is still no proper control of leaseholders’ funds. It is very likely that the two largest managing agents in this country hold between them somewhere between £1 billion and £2 billion. There is no Financial Conduct Authority regulation of how that money is held.

None Portrait The Chair
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Just one more question—we have many coming up.

Richard Fuller Portrait Richard Fuller
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Q I notice in Mr Boyd’s resume that LEASE is

“to champion the rights of leaseholders and park homeowners.”

I have a number of park home owners in my constituency, as I am sure many colleagues do. Are there any provisions in the Bill, or is there anything that could be added to it, that would improve the lot of park home owners?

Mr Martin Boyd: Yes, there is, but again that goes on to the long list of things that could be added to the Bill. Park homes have been a difficult area for many years. It is a relatively small part of LEASE’s work, but it is work that will be expanding as we move forward. I am more than happy to talk to you about some of the provisions on park homes that could be added.

Richard Fuller Portrait Richard Fuller
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There is nothing that leaps out at this stage.

Mr Martin Boyd: Nothing leaps out.

Barry Gardiner Portrait Barry Gardiner (Brent North) (Lab)
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Q Mr Boyd, you just spoke about the accounting of funds. At the moment, there is no requirement to show any separation between sinking or reserve funds and the normal service charges for managing the property. Many leaseholders have suggested that that is a problem, and that they are not clear what is happening with their sinking fund. Sometimes they believe that the moneys that were there for future capital works on the property are being raided. Would it be a good idea for the Bill to contain something that enabled leaseholders to see precisely what was happening to those reserve or sinking funds?

Mr Martin Boyd: There were proposals in sections 152 to 156 of the 2002 Act to help to improve protection for leaseholders’ funds. Currently, we are left with a set of voluntary codes. One is applied by the Association of Residential Managing Agents—the Property Institute, as it is now called—and sets out that managing agents should hold separate bank accounts for each of the sites that they manage. The Royal Institution of Chartered Surveyors’ code does not require that. I am aware from experience of my and other sites that, in the recent period of higher inflation, some managing agents used consolidation accounts, accrued the interest in the service charge funds to themselves and passed very little on to the leaseholders. So yes, I think it would be very helpful if we had greater transparency and protection.

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Mike Amesbury Portrait Mike Amesbury
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Q I have two brief questions. Are there any risks in terms of banning new leasehold houses but not flats? Why do you think this country is an outlier in the world and is so wedded still to this day to the feudal system of leasehold?

Katie Kendrick: You cannot just ban leasehold houses and not flats—70% of leaseholders live in flats, so you are not tackling the problem. You are cherry-picking the easy things, and banning leasehold houses is easy. It is more tricky with flats, but that does not mean it is not achievable. As you have said, it has been achieved everywhere else in the world. We do not need to continue to mask that leasehold system. It is deeply flawed and it ultimately needs to be abolished.

We do understand that there is no magic wand and this is not going to happen tomorrow, but there have been a lot of campaigners, well before us, who have highlighted the issues of leasehold, and yet here we are, still, again, trying to make it a little bit fairer. It does not need to be a little bit fairer—it needs to go. That needs to be the ultimate aim. Everybody needs to work on this. There is something better out there, despite what the other lobbying groups will tell you.

Richard Fuller Portrait Richard Fuller
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Q This is a question I will ask a number of witnesses. We do an impact assessment for legislative change to all Bills, sometimes done well and sometimes less so. This has an assessment of the total cost of the Bill, with the best estimate being £2.9 billion. That is quite large for a Bill. A large part of that—about two thirds—is a transfer of the value from freeholders to leaseholders. That is at £1.8 billion, or £1.9 billion. What are your thoughts about that transfer of wealth?

Jo Derbyshire: It is long overdue; bring it on.

Richard Fuller Portrait Richard Fuller
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Q From that, are you implying that your view is that it has been a rip-off to date, and therefore there are monies that you should have been having for all the years you have been paying and there was no value to it?

Jo Derbyshire: If I think of my estate, there was no reason whatsoever to create leasehold houses other than to make money from the people who had bought them. That is partly why, going back to an earlier question, it is taking so long to dismantle the system in this country: it is because there is so much money for nothing in it. That is why it is so hard to dismantle it.

Richard Fuller Portrait Richard Fuller
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Q I cannot remember whether it was you, Jo, or Kate—if I may call you by your first names—who works in a pension fund.

Jo Derbyshire: I work in a pension fund.

Richard Fuller Portrait Richard Fuller
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Q On the change in pension funds and investments, you may have different views about how important that is and my colleague asked you that question. However, putting yourself in the place of the people who own the freehold—some may be large overseas entities, some may be members of the peerage of the realm and there may be others—what is your view and what assessment have you made of the impact on them?

Jo Derbyshire: From my perspective, it is just about how all investment carries risk. This is no different. This is about rebalancing the scales in terms of leaseholders and freeholders. For me, it is about fairness for leaseholders. That is what the Law Commission was tasked with a few years ago, it is what we have been fighting for over the last however many years and that is what this does.

Barry Gardiner Portrait Barry Gardiner
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Q I apologise because I came in slightly late today, Chair, so I do not know if people have declared their interest. I should say that I am a freeholder; I am not a leaseholder. I have been a leaseholder in the past, but always with a share of the freehold.

Ms Kendrick, you said that there were things that the Law Commission report had talked about that have not been included in the Bill. One of those is in relation to shared services. Often, in a mixed development, if there is a commercial element to the block of flats, with flats above, you will find that there is a common plant room or a common car park. I welcome the provisions in the Bill that say that you can go from 25% commercial to 50%; that is a good move. However, the Law Commission actually said something specific about whether you should be allowed, if there are shared services such as the car park or the plant room, to be able to take over control, because the flats—the leaseholders—would only have control over the plant room as it related to their block. Is that a provision that you think should be introduced? Otherwise, it makes a mockery, to a certain extent, of increasing from 25% to 50% if you are still going to be precluded from gaining control of your block because of the plant room or shared services.

Katie Kendrick: Yes, there are clever ways in which they exclude people from being able to do that. We welcome the increase to 50%, but they are very creative when they design these buildings, with the underground car parks and stuff, as to what they can do to exclude the leaseholders from taking back control of their blocks. It is all about trying to have control over people’s homes. We should be able to control our homes—what is spent. No one is saying that you should not have to pay service charges, but it is about being in control of who provides those services. At the moment, leaseholders have no control. They just pay the bills.

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Matthew Pennycook Portrait Matthew Pennycook
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Q I suppose what I am getting at is that you would not need to withhold if the enforcement clause properly covers all the requirements therein.

Amanda Gourlay: It seemed to me that when I was reading through the clauses in the Bill that it was really section 25D that stood out as the measure that was not covered by clause 30. Clause 30 very clearly enumerates that we have section 21C(1) which is about the demand for a payment; 21E, which is about the reports—obviously, between C and E there is D, which is not in there—and then we also have 21E covered. You can literally trace those measures through. D was the one that stood out for me as being a necessity.

It might be said that that is because the provision of those accounts is outside the control of the landlord, because the accountant is the person who is preparing the accounts and they may—you will understand that I am trying to argue both against myself and for myself. There is that possible argument that may be proposed as a counter-argument to mine.

Richard Fuller Portrait Richard Fuller
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Q Ms Gourlay, I just wanted to go to part 4, which is about the regulation of estate management charges. You talked at the outset about bringing everything together in the process and we have heard a lot about people saying how it is all a bit of a David and Goliath process, so I wanted to get your views on how effective you think some of the measures in the Bill are when it comes to trying to help David in his battle against Goliath. We should always remember that David actually beats Goliath; I do not know why or whether that is a bad thing.

You talked also about the provision of information and how important it is that people have access to annual reports and so on. In clause 49, there is a provision whereby the failure to provide things such as annual reports will carry a charge, with a maximum charge of up to £5,000. Then in clause 51, which addresses other aspects of what should be provided—in this case, charge schedules; you said how important they were—there is a maximum charge of £1,000. Does that sound like a sufficiently large sling from which a shot may be fired, or is it just a cost of doing business?

Amanda Gourlay: Again, we come back to the fact that for some landlords, particularly those that might be management companies with no other assets, £1,000 would be crippling; effectively, that might put them into insolvency unless they can recover those moneys from other leaseholders. For other landlords, even £5,000 will be next to nothing. It is a shot across the bows; it is clear that such failure is regarded with disapproval.

What I would like to do is to take those figures back, because they appear in part 3 as well as in relation to the estate management charges. The way in which they are formulated is that they are damages that can be awarded to a tenant if they make an application, certainly on the leasehold side of things—

Richard Fuller Portrait Richard Fuller
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Q Not in this section.

Amanda Gourlay: Not in that section.

If it is effectively a civil fine, there needs to be a sliding scale. In the tenancy deposit scheme, the way that things work is that, as you may know, if the landlord has not protected the deposit, they have to pay back an amount that is between one and three times that deposit. Some form of sliding scale would seem to be appropriate. I am not the right person to ask about sums and amounts; that is a policy question, really.

Richard Fuller Portrait Richard Fuller
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Q However, I think you have given some view about how you think it should be assessed.

Amanda Gourlay: I think it should be assessed on a sliding scale, to take account of the differences of interest—

None Portrait The Chair
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We have four more people who want to ask questions, so we need quick answers.

Richard Fuller Portrait Richard Fuller
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Q The other part is that bringing a lot of this together will mean that the first-tier tribunal has a lot more work. Do you think that people may want to get justice, but that it will be denied because the first-tier tribunal is going to be overwhelmed?

Amanda Gourlay: I would not anticipate that the first-tier tribunal would be overwhelmed. At the moment, I find that my hearings go through within a reasonable period of time. That is the best I can say.

Mike Amesbury Portrait Mike Amesbury
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Q Would commonhold being the default position make your job less complex?

Amanda Gourlay: In the first few years, it would make it more complex, because I would have to learn about it. I have read the Law Commission’s report, and any new scheme is going to involve some bedding down. From what I read and hear about commonhold, it should make matters less litigious. That is what I hear. I have no experience of commonhold directly, however.

Leasehold and Freehold Reform Bill (Second sitting)

Richard Fuller Excerpts
Barry Gardiner Portrait Barry Gardiner
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Well, it has been with us for a very long time, hasn’t it?

Professor Hopkins: Yes. So the system has to work, and that is what the Bill achieves in relation to leasehold.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
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Q Can we talk a little about discount rates? I think there are two, but there may be more. There is the capitalisation rate and the deferment rate. Could you explain how, if at all, the Bill changes either of those discount rates and what the rationale for that change is?

Professor Hopkins: The Bill ensures that those rates will be prescribed by the Secretary of State. At the moment, on every enfranchisement claim—whether it is the lease extension or the purchase of the freehold—the rate used to capitalise a ground rent and to determine the price paid for the reversion has to be agreed for the individual transaction. That is a significant source of dispute, and it is a dispute where there is a real inequality of arms.

The leaseholder is only interested in what they have to pay for their home and the landlords have an eye not only to that particular property, but also to what it would mean for their portfolio of investments—so they agree a particular rate on one flat in a block, for example. The Bill ensures that those rates are fixed by the Secretary of State and mandated, so there is then no argument about what rate applies in an individual case. It takes away that whole dispute and ensures that the same rates are applied in all claims.

Richard Fuller Portrait Richard Fuller
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Q What is the merit of allowing politicians to fix the rate? Does that not that create other hazards?

Professor Hopkins: The politician will be fixing the rate through advice that they receive.

Richard Fuller Portrait Richard Fuller
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Q Well, we do not allow politicians to set interest rates any more, because we realise that that was subject to political whimsy and error, so we gave that to the Bank of England—which of course is always right. I am just wondering, does there not seem to be some hazard here? I understand the point about trying to get the rate fixed and the imbalance in individual discussions, but why is it not in the Bill that it would be based on market conditions or prevailing rates? Why not go for something like that, which everyone can see and is transparent—you can feed it into a calculator—rather than allowing politicians to have that role?

Professor Hopkins: In our report on valuation, we set out a number of options for reform to reduce the price payable. In relation to the fixing of rates, we identified two separate options: they could be fixed at market rate; and they could be fixed at below market rate to reduce the price leaseholders pay to a greater extent. We put the decision on how to fix the rates as a matter for the Government to consider, and now the power is given to the Secretary of State.

Richard Fuller Portrait Richard Fuller
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Q If I may, I have another question. We always do an impact assessment on Bills. This one has quite a large impact assessment, which is in the billions of pounds—£2.984 billion is the present value for costs. I looked in detail at that, and the vast majority is about a transfer of value from freeholders to leaseholders; it is not about benefits from more efficient systems. If I look at the first section, £2.8 billion is transfers and £400 million is benefits. Is there a particular reason why it is so heavily weighted to transfers?

Professor Hopkins: The impact assessment is not a Law Commission impact assessment. We have provided technical input to the Government in preparing that assessment. I am not sure that I can give a definitive reason why so much more was in one pot than the other. It is probably because the Bill removes marriage value from the premium, which adds a significant sum to premiums now for leaseholders who have 80 years or less, so I think a lot of that sum is the saving.

Richard Fuller Portrait Richard Fuller
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Q And that was the Law Commission’s objective.

Professor Hopkins: The terms of reference that we agreed with Government for the project in relation to premium were that we would provide options to reduce the price payable while providing sufficient compensation to landlords, recognising their legitimate property interests.

Richard Fuller Portrait Richard Fuller
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That was very helpful; thank you very much.

None Portrait The Chair
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Mindful of the fact that we will be drawing this to a close at half-past, I call Matthew Pennycook.

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Mike Amesbury Portrait Mike Amesbury
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Keep going.

Karolina Zoltaniecka: I would not give up on it; it is well worth waiting for.

Harry Scoffin: We need share of freehold in the meantime, at least.

Richard Fuller Portrait Richard Fuller
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Q Part 4 of the Bill is called “Regulation of estate management”, which I think is a particular area of interest for you. You said that it all starts at the beginning, when councils and developers decide to do that. Do you think that getting control of that is an essential part of the effective regulation of estate management?

Halima Ali: I do not agree that it is. All it is doing is creating a two-tier system where a set of homeowners, like myself, living on a private estate are dealing with this situation, whereas other homeowners are not. I do not see how regulating it is helping, because overall, the management company still get to set the fee.

Richard Fuller Portrait Richard Fuller
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Q Actually, I was trying to say that we should stop it altogether because—

Halima Ali: Oh right, sorry—

Richard Fuller Portrait Richard Fuller
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I was not being very clear, I am sorry—it is my job to be clear, not yours. I think what you were saying is that this is trying to fix the problem, but the root of the problem is that councils are permitting this to go ahead.

Halima Ali: Yes, absolutely.

Richard Fuller Portrait Richard Fuller
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Q I am sure we will have a debate about what is and is not in scope of this Bill, in terms of that very important issue, but I wanted to hear you say that that is a crucial part of what you would understand by effective regulation of estate management.

Cathy Priestley: Yes. There are other detrimental effects on estates, other than those on the homebuyers, because non-adopted areas are not built up to adoption standard, so there is a quality issue. There is also a community cohesion issue, if you have one lot of people paying for everybody else’s open space.

Richard Fuller Portrait Richard Fuller
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Q The whole issue of adoption may or may not be in scope, but there were some other suggestions that you had, such as that estate management charges may not include fees for areas that are open to the general public. You feel—this is on your website—that someone can walk down a grass verge or by some trees and you are paying for that twice, through your council tax and through estate management charges. Is that right?

Halima Ali: That is correct. I will make a specific point; I am sure this is the situation nationwide as well. When I purchased my property, the council tax for band C was around £1,000. Currently, it is at £2,000. If you look at that and the average family income, there is a big disparity. How are we able to afford all this? Ultimately, we are paying council tax twice. It is unfair on us. It is unfair on vulnerable people who generally do not understand all these arbitrary rules and regulations and who are coming to us for support.

Cathy Priestley: Most of the people in our group were unaware of what they were getting into. They are unaware of the unlimited liability, because this cannot be capped. It is what it is, and it costs what it costs.

Richard Fuller Portrait Richard Fuller
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Q I think we can look at strengthening some of the provisions at the start and at the end, in terms of the rights if someone wants to sell their property and how people are leant on if they have not paid all the fees, affecting their ability to sell their property. I know we have limited time, but another aspect is the compensation for those who suffer these charges. If we cannot look within scope at adoption and just cancelling the whole lot, what are your thoughts, since there will be a separation of charges and a new cost structure, about enabling people who have estate management fees for common areas to deduct that off their council tax? Essentially, you would not pay twice. There will be a number of those costs that generally would be seen as being covered by your council tax in other circumstances. Do you think the Bill should include a provision where you would be entitled to pay only once for those by deducting that cost from your council tax?

Cathy Priestley: I do not know what councils would think about that. About 50% of the estate charges are just administrative fees. Councils could do it much cheaper. I do not think it would be acceptable to councils, but it would be great for us, yes.

Richard Fuller Portrait Richard Fuller
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It would make them adopt them quicker though, wouldn’t it?

Cathy Priestley: It certainly would, yes.

None Portrait The Chair
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Finally, we have two minutes left—Marie, please.

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None Portrait The Chair
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Apologies: I mis-spoke earlier and missed out Richard Fuller.

Richard Fuller Portrait Richard Fuller
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That’s all right, Dame Caroline. Let’s stick with net present values, shall we, Professor?

Professor Leunig: Go for it—I’ll get out the calculator.

Richard Fuller Portrait Richard Fuller
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Q You will be aware that impact assessments are required now for all legislation, very helpfully.

Professor Leunig: Indeed, yes. It’s a very long one, by the look of it.

Richard Fuller Portrait Richard Fuller
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Q It is, and it seems very expensive legislation. Do you agree with that?

Professor Leunig: Yes.

Richard Fuller Portrait Richard Fuller
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Q The top line says that the best estimate of present value is £90 million, but then it says that the low estimate is minus £1.5 billion and the high estimate is £1.5 billion. Doesn’t that indicate that the Government don’t have a clue?

Professor Leunig: Oh, yes, absolutely. That is not necessarily reprehensible, because sometimes you just cannot have a clue.

I am often asked to forecast the future. I say, “Why did economists get the last four years wrong? Because we didn’t predict that Vladimir Putin would invade Ukraine.” Making predictions about the future as a social scientist is, by and large, a mug’s game. All you can do is stand up from first principles and say, “When do market economies work well? They work well when contracts are simple and plain and everybody understands them.” That is much truer of commonhold than of leasehold, which is why I support commonhold rather than leasehold.

Richard Fuller Portrait Richard Fuller
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Q What is clear, though, is that the business net present value is scored at minus £1.7 billion, so presumably we can pretty much say that the impact on business is going to be—

Professor Leunig: Does it have a range?

Richard Fuller Portrait Richard Fuller
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Q Not on my copy; I presume it must have, but this figure is listed at the front.

Professor Leunig: I have not seen the impact assessment.

Richard Fuller Portrait Richard Fuller
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Q Well, let me draw on that. The core of this is something I mentioned earlier. If you look at the benefits, there is a total of £2.8 billion of impact monetised, which is under a heading of “transfers” —so transfer of value—and there is £418 million under the heading of “benefits”. The numbers might be different because of other things later, but that is not material to the main point. What strikes you about the intention of the Bill if three quarters, 80% or 90% is about transfers and not efficiencies or benefits?

Professor Leunig: I would want to read it before giving a definitive answer, but the information that you have given me tells me that this Bill is above all a redistributive Bill. However, both of those are static estimates. The main change in property rights is usually dynamic; for example, what does it do to the incentives for people to improve their own homes? I would be surprised if that were captured in those benefits. If it is captured, I would be interested in seeing over how many years it is captured, and so on and so forth. Of course, a lot of this Bill, as I understand it—assuming that it is like every other Bill—leaves all the important stuff to secondary legislation and regulations. I imagine that those figures, in particular the figure of £2.8 billion under “transfers”, are heavily dependent on exactly how the secondary legislation is written.

Richard Fuller Portrait Richard Fuller
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Q So it is redistributive, primarily. It sounds that way from those numbers, but there may be some hidden benefits that have not been monetised in the report. That is helpful.

Professor Leunig: Yes.

Richard Fuller Portrait Richard Fuller
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Q That is helpful. What is your instinct? Most of this is about removing marriage value payments. In your understanding, what would you expect the geographic distribution of that transfer redistribution to be?

Professor Leunig: The biggest winners and losers will be in the south-east and in London, because that is where the marriage values are greatest because that is where property prices are highest. If you own a flat in Peterlee, one of the lowest value housing markets in Britain, the marriage value will be trivial at the moment, so changing the rules on marriage values will have a very small effect.

Richard Fuller Portrait Richard Fuller
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Q So this is a London wealth transfer.

Professor Leunig: That will be the biggest—

Richard Fuller Portrait Richard Fuller
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Q Is it right to say that this Bill is a wealth transfer from rich freeholders to rich leaseholders? This is primarily just moving money between rich people, isn’t it?

Professor Leunig: No. Not every leaseholder in London is rich, by any means. If you are buying a flat for £300,000 in London, that will make you rich by the standards of someone in Peterlee, but I do not think a young couple buying a flat for £300,000 would meet The Daily Telegraph’s definition of “the rich”.

Richard Fuller Portrait Richard Fuller
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Q So the geographic dimension—there are more leasehold properties in London—and the redistribution argument is stronger than the “all properties in London are expensive compared to everywhere else” argument.

Professor Leunig: Yes.

Richard Fuller Portrait Richard Fuller
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Q That is helpful to know. Therefore, does redistribution matter—it could be a social good or not—and does it matter who and how that redistribution happens? Are those things material? Should we be looking at them in detail?

Professor Leunig: Redistribution is ultimately a political issue; it is about who you think should have the money. Government engages in redistribution all the time. Sometimes it does so explicitly through the tax system— I am looking forward any day to my tax cheque coming back from HMRC for the money I overpaid last year—and in other ways it does so implicitly.

For example, as somebody who has been employed in universities for most of my academic career, my income was constrained by the fact that Government limits university fees. I teach at the London School of Economics. The fee that we charge for a master’s suggests that we could charge much higher than £9,250 to undergraduates, but the Government do not let us. That is a legitimate decision by the Government. It makes me directly poorer. That is a transfer away from someone like me—broadly speaking, on the richer end of the spectrum—to people who are currently not very well off but who later on will be rich.

That is just the right of a Government to define property rights in such a way that some people are winners and some are losers. The right to borrow Jeffrey Archer’s books from the library, for which he gets virtually no compensation, is exactly the sort of political decision that you are entitled to make by dint of having a democratic mandate. Apart from agreeing with you that there is redistribution, I do not think that there is a great deal that any of us at this straight table can say to those of you around the horseshoe. It is your right, privilege and responsibility to make that decision.

Richard Fuller Portrait Richard Fuller
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That is very helpful. I will stop there, but I want to come back on discount rates later if I have time.

Professor Leunig: Excellent.

None Portrait The Chair
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We have a very enthusiastic witness. I call Barry Gardiner.

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None Portrait The Chair
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In that case, we will go to Richard and it might pop back in again.

Professor Leunig: Oh no, he is going to test me on net present value.

Richard Fuller Portrait Richard Fuller
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Q No: discount rates. As I understand it, there are two discount rates that are currently used in the calculations—the capitalisation rate and the deferment rate—and one is sort of fixed by a legal process. In terms of making changes to the marriage value, there is also a change in the way in which the discount rate is going to be determined; it will be done by the Minister by regulation. What are your thoughts about that?

Professor Leunig: The default rate chooses 3.5% because that is the rate in the Green Book. Again, it is fundamentally a political decision, because you put the rate one way and the value goes up. You put the rate the other way and the value goes down. It is just a political decision. I really do not think that there is a right or wrong answer to that.

The only thing to say is that I would be very cautious in using the current Bank of England base rate because it is so volatile. The idea that if we had made the calculation two years ago we would have used a discount rate of 0.25%, but today we would use 5.25%, is absurd. You need one number that you stick with through thick and thin, and the default rate, I think, is the Green Book discount rate of 3.5%. I am happy to believe that if we were in the Department and I was employed, you could sway my belief that 3.5% is the right answer, but that is where I would start.

Richard Fuller Portrait Richard Fuller
- Hansard - -

Q I am interested because so many other purchase decisions—indeed the mortgage you get—will be subject to market rates at that time. Those rates can go up and down, and that will have a very material effect on the cost of your mortgage, so why take this out of traditional market principles?

Professor Leunig: Because this is a one-off decision. For example, we saw Paul Johnson mention this week that the cost of student loans has gone up dramatically because of the rise in interest rates. We do not suddenly cut the number of people who can go to university and then increase it when interest rates are low, because we accept that most people de facto get one shot at university when they are 18 or 19. Over the 25 years of your mortgage, you will re-mortgage a number of times so it averages out, whereas this is a one-shot thing. We do not really want people acting strategically on which day to do it. That is why we would prefer to have a single number over time.

It is not a stand-up case; I grant you. You have a case. It is the classic thing of marking to market, right? When you retire, if you have a defined contribution pension scheme, you are to some extent at the whim of the market on the day you retire and in the five years before, as you move out of equities and into bonds. If you are a defined benefit pension holder, de facto we use the scape rate, which is a long-run average. I argue, in effect, for something similar to the scape rate for something like this.

Richard Fuller Portrait Richard Fuller
- Hansard - -

Q At the moment, we do not know what will be in the regulations in relation to how the Minister should go about determining that. Do you have any advice for how he should structure that part?

Professor Leunig: As I say, my main advice would be to make a political decision and pick an interest rate, rather than to make a political decision without realising you have made a political decision and go for Bank rate, or Bank rate plus two or minus one, and to have complete randomness over the following years.

None Portrait The Chair
- Hansard -

If there are no further questions from Members, I thank the witness very much. We will move on now to the final panel.

Professor Leunig: May I say well done? You have had a very long day.

Examination of Witness

Dr Douglas Maxwell gave evidence.

Oral Answers to Questions

Richard Fuller Excerpts
Monday 15th January 2024

(2 months, 1 week ago)

Commons Chamber
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Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

What I will commit to, as far as the people of Bedfordshire are concerned, is an increase in funding of £10.2 million for next year, 2024-25. That is an extra 6.5% compared with this year. They will also have 1,455 police officers. That is about 200 more than Bedfordshire’s police force has ever had at any time in its history.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - -

It is not unusual to hear from two Bedfordshire MPs when it comes to the police funding formula, because this goes all the way back to the last Labour Government, but there is a cross-party view in Bedfordshire that our police force is underfunded. Will my right hon. Friend agree to meet all Bedfordshire MPs so that we can press the case for increases in funding for Bedfordshire Police?

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

I am always happy to meet my hon. Friend to discuss these issues. As I say, Bedfordshire Police will receive an extra £10.2 million next year—an increase of about 6.5%—which I am sure will be welcome up and down the county, but I am of course happy to meet my hon. Friend whenever he would like.

Oral Answers to Questions

Richard Fuller Excerpts
Monday 3rd July 2023

(8 months, 4 weeks ago)

Commons Chamber
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Robert Jenrick Portrait Robert Jenrick
- Hansard - - - Excerpts

I am familiar with the hotel in my hon. Friend’s constituency and the concerns he has raised. I will take a look at that, but as I have said previously, the answer to this challenge is to stop the boats coming in the first place. That is why we all need to support the Illegal Migration Bill. Those who want more hotels would oppose it. The Labour party’s policy will see more hotels, and the shadow Home Secretary will end up with more hotels to her name than Paris Hilton.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - -

I do not know how to follow that, Mr Speaker.

All Members would like to see a reduction in the number of hotels used for asylum accommodation—I am sure that is true—but will the Minister spend a moment to congratulate the community of Sharnbrook, and in particular Rev. Paolo Di Leo and Councillor Doug McMurdo, on providing a welcoming environment for people who are put in such accommodation? I think there are signs across the country that communities do come together in these difficult circumstances to achieve an outcome that is beneficial for everyone.

Robert Jenrick Portrait Robert Jenrick
- Hansard - - - Excerpts

I would be very happy to put on record my view of the good work being done by my hon. Friend’s constituents. He is right to say that there are voluntary and community groups, charities and churches right across the country that support asylum seekers while they are in this form of accommodation, and we and our providers facilitate that wherever possible.

Oral Answers to Questions

Richard Fuller Excerpts
Monday 22nd May 2023

(10 months, 1 week ago)

Commons Chamber
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Robert Jenrick Portrait Robert Jenrick
- Hansard - - - Excerpts

As my hon. Friend has said, the Taliban have banned Afghan women and girls from competing in sports and exercising in gyms. Afghan women who competed in sports, ranging from football to cycling, are now forced to stay home, amid the kind of intimidation to which she refers. I think particularly of the bravery of those Afghan women who recently posed for photos with the Associated Press, alongside the equipment that they used to be able to use, now covering their faces with burqas. These are the reasons why we have made our important and generous offer through the ACRS, which is a scheme we want to take forward to help more women and girls out of Afghanistan to a place of safety and a new life in the UK.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - -

7. What discussions she has had with representatives of Serco on improvements to security at the Yarl’s Wood immigration removal centre.

Robert Jenrick Portrait The Minister for Immigration (Robert Jenrick)
- Hansard - - - Excerpts

The Government take the protection of the public and security incidents at immigration detention centres extremely seriously. I met senior Serco executives on 4 May to discuss their response to the incident at Yarl’s Wood in my hon. Friend’s constituency. An independent investigation into the incident is now under way; we will consider its findings in detail.

Richard Fuller Portrait Richard Fuller
- Hansard - -

Will my right hon. Friend join me in thanking the chief constable of Bedfordshire, Trevor Rodenhurst, for working with other police forces across the country? I understand that all but one of those who absconded have been rearrested, and that arrests have been made of others who have facilitated people being out of detention. However, there remain serious questions to be answered, both about the comparative ease with which people were able to abscond from the facility and about the interaction between Serco and the police. Will my right hon. Friend please look at those issues?

Robert Jenrick Portrait Robert Jenrick
- Hansard - - - Excerpts

I join my hon. Friend in thanking Bedfordshire police for leading the national response to the incident. He is correct that of the eight men who escaped, only one now remains at large and we are determined to find him as quickly as possible. There are robust security measures in IRCs, but they are now being reviewed again in the light of this incident. I have met senior Serco executives to hold them to account for their conduct and to ensure that they take the incident extremely seriously. I know that my hon. Friend will be visiting Yarl’s Wood soon; I would be very happy to speak to him and understand his reflections.

Draft Police, Crime, Sentencing and Courts Act 2022 (Extraction of Information from Electronic Devices) (Amendment of Schedule 3) Regulations 2023

Richard Fuller Excerpts
Tuesday 9th May 2023

(10 months, 3 weeks ago)

General Committees
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Chris Philp Portrait The Minister for Crime, Policing and Fire (Chris Philp)
- Hansard - - - Excerpts

I beg to move,

That the Committee has considered the Draft, Police, Crime, Sentencing and Courts Act 2022 (Extraction of information from electronic devices) (Amendment of Schedule 3) Regulations 2023.

It is a pleasure, as always, to serve under your chairmanship, Mr Vickers. In recent years, the extraction of information from electronic devices has become a pivotal part of preventing, detecting, investigating and prosecuting crime. With around 90% of all crime having a digital element, digital forensics has become crucial in criminal investigations.

For that reason, the Home Office led on the introduction of the extraction of information powers in the Police, Crime, Sentencing and Courts Act 2022, which came into force in November last year. Those powers established a statutory basis for extracting information from electronic devices, ensuring that information is extracted only for specific purposes, when necessary and proportionate, and where relevant to a reasonable line of inquiry.

In relation to victims and witnesses, there were various specific safeguards to ensure that information is extracted only once an individual has volunteered their device and agreed to the extraction of information from it. Additional measures were included to ensure that victims and witnesses are notified in writing of what information is being sought and how it will be used. They are also provided with various rights to refuse permission, if appropriate.

Those powers can be exercised by the authorised persons named in schedule 3 to the Act. The schedule is divided into three parts, which set out the different purposes for which authorised persons may exercise the powers. It is crucial that only authorised persons can extract information for the purposes set out in the schedule.

Those listed under part 1 of the schedule can exercise these powers for the purposes set out in section 37 of the Act, which concerns the investigation of crime, and for the purposes set out in section 41, which concerns an investigation or inquest into a person’s death. Those listed under part 2 may extract information only for the purposes of section 37. Part 3 lists the authorised persons who can extract the information only for the specific purpose under section 37(1), which is preventing, detecting, investigating or prosecuting a crime.

The draft regulations set out the requirement to move the Royal Navy Police, the Royal Military Police and the Royal Air Force Police from part 2 of schedule 3 to part 1 of schedule 3. That means that those forces can extract information not just for the purposes of section 37, but also for the purposes of section 41—supporting an investigation or inquest into a person’s death. I am sure the Committee would agree that, where a person has died in unexplained circumstances, it is crucial that the various military police forces are able to investigate the death as thoroughly as their civilian equivalents. That is what these simple regulations aim to provide for.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - -

The Minister has given a very clear exposition, but it does prompt a question as to why those police forces were not given the powers in the original legislation passed in 2022 and why there is a need for the change now.

Chris Philp Portrait Chris Philp
- Hansard - - - Excerpts

In answer to my hon. Friend, I am afraid that I do not recall the details of the debates at the time. I am not convinced that I was a Minister at the time this went through the Bill Committee, although I may have been—in fact, I may have been a Ministry of Justice Minister, and a Home Office Minister may have taken this through the Committee.

--- Later in debate ---
Sarah Jones Portrait Sarah Jones
- Hansard - - - Excerpts

It is a pleasure to serve under your chairmanship, Mr Vickers. As the Minister stated, this relatively straightforward statutory instrument adds a new group of authorised persons—members of the Royal Navy Police, Royal Military Police and Royal Air Force Police—to part 1 of schedule 3 to the Police, Crime, Sentencing and Courts Act. The Opposition will not vote against it today.

The regulations give those authorised persons the power to extract information from a device, when the user has died, for the purpose of an investigation or inquest into the person’s death, as well as for the purpose of investigating crime and safeguarding others. When we debated the Police, Crime, Sentencing and Courts Bill—the Minister is correct that he was the Justice Minister and therefore debated some aspects of the Bill and not others—we had extensive debates about the changes it introduced, and Labour tabled several amendments that would have placed new checks on the police powers to extract data from electronic devices. We agreed with the direction of travel of the Bill, but we were concerned about vulnerable people and about those who do not want to hand over phones and the like because of the intrusive nature of such searches.

We spent months urging the Government to protect victims, particularly victims of rape and sexual abuse, from painful and often unnecessary intrusion into their lives by the mining of their phone data. In the end, the Government accepted some vital changes that mean that the police officer or other authorised person must “reasonably believe” that information stored on the device is relevant to a “reasonable line of enquiry”. It took the Government time to accept those amendments, but they did so in the end.

In this case, of course, the situation is slightly different as the owner of the device is deceased, but that person must still be treated with respect and we have to ensure that we are not too intrusive in how we mine people’s devices. I would like an assurance from the Minister that information will be used sensitively, because people deserve that even after they have passed away.

Serious problems remain about the lack of resources available to the police when it comes to carrying out data extraction from electronic devices—in this case, when a user has died. We know that there is a real problem with a lack of digital resources in forces. Just last year, a report by His Majesty’s inspectorate of constabulary and fire and rescue services found a raft of errors in this area. The inspectorate found

“delays...so egregious that victims were being failed”,

and a system of digital forensic examination that was “slow” and “ineffective”, and where

“the needs of victims were rarely taken into consideration”.

It noted that

“there are no set standards or oversight services”,

with victims let down by a postcode lottery.

At a time when most, if not quite all, crimes have some form of digital footprint—the Minister gave us the stats—the delays, oversights and lack of professionalism exposed by the inspectorate are unacceptable.

Richard Fuller Portrait Richard Fuller
- Hansard - -

If I can drag the hon. Lady back to the regulations we are discussing today, they are about expanding the number of people who can extract information from devices. She has listed a litany of concerns, but can she answer the question that I put to the Minister, as I think she was involved in the scrutiny of the Bill? Why did Labour agree to this separation and why has she changed her mind today?

Sarah Jones Portrait Sarah Jones
- Hansard - - - Excerpts

I thank the hon. Gentleman for his intervention. I suspect that it was an oversight in the legislative drafting that is being rectified, and I would rather it was rectified than not. The emphasis in our discussions on the Bill was on living people, particularly rape victims, who were loth to give up their electronic devices but who needed to. We needed to ensure that the legislative framework was right for them so that they could give up their devices in a way that they were prepared to and that protected them. We did not have a debate about inquests or about cases where people had passed away, but clearly that is increasingly a consideration as digital devices are used more and more.

Specifically on the Royal Military Police, the inspectorate recommended in a separate investigation that a formal digital investigation strategy should be introduced, because:

“RMP investigators don’t give enough consideration to how digital investigation would help the specific cases they are working on”.

That statement does not give me much confidence. I would like some reassurance from the Minister that he has faith that extending these powers to these forces will have tangible positive impacts on inquests and on the investigation of crime. Does he have evidence to suggest that the situation in the military forces, covering the Army, Navy and RAF, is any better than in the 43 territorial forces?

On recommendation 5 of the HMICFRS report, what progress has been made on reviewing digital forensics budgets and funding? I note that a formal consultation has not taken place, but the views of three military forces were captured on why this amendment is necessary; I do not know whether the Minister can share any of those findings with us. I would be grateful if he indicated when the code of practice for the extraction of information from electronic devices is likely to be updated, and if he explained how the forces that this statutory instrument relates to—the RAF Police, Royal Military Police and Royal Navy Police—will be trained to exercise their new powers, but we will not be objecting to this legislation today.

Oral Answers to Questions

Richard Fuller Excerpts
Monday 20th March 2023

(1 year ago)

Commons Chamber
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Suella Braverman Portrait Suella Braverman
- Hansard - - - Excerpts

I do not think the hon. Lady has quite got the point of the Human Rights Act. Section 19(1)(b) is designed for exactly these purposes. Although the Government believe our provisions are capable of being compliant with the Human Rights Act and the European convention on human rights, we are, none the less, testing legal arguments and legal bases, and there is nothing wrong with that. In fact, a previous Labour Administration also introduced legislation carrying such a section 19(1)(b) statement.

The SNP is all talk and no action. Although Scotland makes up 8% of the UK population, only 1% of the UK’s asylum seekers are housed in contingency accommodation in Scotland. It is very easy for the SNP to make all the right noises, but it has taken zero action to stop the boats.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
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The 1951 convention and the 1967 protocol are fundamental foundations of how humanity deals with refugees at times of crisis, but there are questions to be asked about whether the convention and the protocol remain robust enough, effective enough and sufficient to meet the challenges of refugees in the decades to come. Will my right hon. and learned Friend have the courage, as Home Secretary of the United Kingdom, to lead international discussions on this topic?

Suella Braverman Portrait Suella Braverman
- Hansard - - - Excerpts

My hon. Friend makes an incredibly powerful point, and I agree with his sentiment. The historic conventions to which we subscribe are fundamentally challenged by modern travel and a global migration crisis in which more than 100 million displaced people are on the move today. It is right that western and democratic nations, which take pride in our duty and track record of offering refuge to vulnerable people, start a conversation to ensure that we strike the right balance.

Oral Answers to Questions

Richard Fuller Excerpts
Monday 14th November 2022

(1 year, 4 months ago)

Commons Chamber
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Suella Braverman Portrait Suella Braverman
- Hansard - - - Excerpts

I am not going to repeat myself, but I think the deal is a good step forward and a great platform from which to build deeper co-operation. I say gently to the hon. Gentleman that his question would have much more credibility if Scotland stepped up further and took a better share of those who come here seeking refuge and asylum.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - -

T2. If she will make a statement on her departmental responsibilities.

Suella Braverman Portrait The Secretary of State for the Home Department (Suella Braverman)
- Hansard - - - Excerpts

The UK is working closely with France to reduce illegal small boat crossings over the channel. Over the past year, those efforts have produced results. Today, I was in Paris with my French counterpart, Gérald Darmanin, to agree a more integrated and strengthened approach aimed at making that lethally dangerous route unviable, with world-class law enforcement teams from both countries working even more closely together. That is a positive step forward.

For the first time, UK officers will join French law enforcement teams as embedded observers, sharing real-time information on the ground and in command HQ. We will provide investment of up to £62 million this year, supporting cutting-edge surveillance technology, the expansion of the UK-France joint intelligence cell, and more French officers patrolling the French coast. This is an international problem; it requires an international solution.

Richard Fuller Portrait Richard Fuller
- Hansard - -

May I raise a question about the Afghanistan citizens resettlement scheme on behalf of a constituent whose father has played a prominent role in women’s education, achieving recognition and awards from the United Nations? The ACRS is a clearly structured scheme, but may I request a meeting with my right hon. Friend the Home Secretary to discuss the very special circumstances of my constituent’s father?

Suella Braverman Portrait Suella Braverman
- Hansard - - - Excerpts

The Afghan citizens resettlement scheme, which commenced on 6 January 2022, will see up to 20,000 at-risk people resettled to the United Kingdom. If my hon. Friend sends me the details, I will ask the relevant teams to look at that case.

Public Order Bill

Richard Fuller Excerpts
2nd reading
Monday 23rd May 2022

(1 year, 10 months ago)

Commons Chamber
Read Full debate Public Order Act 2023 View all Public Order Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts
Priti Patel Portrait Priti Patel
- Hansard - - - Excerpts

My hon. Friend is absolutely right; her constituents are right to be outraged and concerned, and she is voicing their concerns as their representative in the House. In 2019 alone, the cost to the public purse of the Extinction Rebellion protests was £37 million. The cost of the HS2 protests is estimated at £122 million. In my county of Essex, where I have spent a great deal of time with the amazing teams, the cost has been more than £4.6 million. When I visited the Navigator site, I met police officers from Scotland, Wales, Devon and Cornwall, such is the extent of the resources that have to be brought in to police these protests.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - -

I may be the sole dissenting voice on the Government Benches about some of these provisions. When my right hon. Friend talks about specific examples, particularly those relating to infrastructure, the population can get strongly behind her points. However, several clauses of the Bill are drawn very broadly and there is legitimate concern about how they will be applied. What reassurance can she give me that she seeks a tightly scripted Bill, rather than a general threat to our individual freedoms?

Priti Patel Portrait Priti Patel
- Hansard - - - Excerpts

I thank my hon. Friend for his question and comments; he is absolutely right. That is the purpose of scrutiny of the Bill. We know from the past two years of protest activity that the police are seeking clarification about certain requests and powers. We are looking at how the courts can work much better to take action, and how to ensure that policing resources are not being cannibalised or used in this way. That is why I think we are right to focus on the core aspects of disruption and the key tenets that need to be addressed, and the Policing Minister has been working on that in particular.

Finally, we are lowering the rank of officer to whom the commissioners of the City of London and Metropolitan Police Forces can delegate powers to prohibit or set conditions on protests. The rank is being lowered from assistant commissioner to commander. That is very significant in London, because of the extent of the activity that we have seen there. It will bring London forces into line with forces across England, Wales and Scotland, whose chief officers can already delegate their powers to the commander-equivalent rank of assistant chief constable.

It is not only criminals who have rights. The public need Parliament to put the law-abiding majority first, and that means backing the Bill, which will enable that law-abiding majority to go about their day-to-day business and live their lives freely.

--- Later in debate ---
Yvette Cooper Portrait Yvette Cooper
- Hansard - - - Excerpts

I will first give way to the hon. Member for North East Bedfordshire (Richard Fuller), next to my right hon. Friend the Member for Hayes and Harlington (John McDonnell) and then come back to the right hon. Member for New Forest East.

Richard Fuller Portrait Richard Fuller
- Parliament Live - Hansard - -

I was following the right hon. Lady’s argument until this last piece, where she outlined a series of cases—political issues—that the Labour party is against. I am just wondering why and how she differentiates that from the proposals in the Bill, which seem to provide the basis for her to make those moves directly.

Yvette Cooper Portrait Yvette Cooper
- Parliament Live - Hansard - - - Excerpts

That is exactly the point that I am about to make, because the Bill does not address any of those points. All those cases are areas where there are existing offences, but there are and have been problems with enforcement. The Bill does not tackle that issue or solve the problem. Instead, in a whole series of areas, it makes the problem worse.

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Tom Hunt Portrait Tom Hunt (Ipswich) (Con)
- Parliament Live - Hansard - - - Excerpts

I am very pleased to speak in this debate, and to speak quite early on as well. I was pleased to support the policing Bill and I am pleased to support this Bill as well. It was disappointing that some of the amendments made through that Bill were defeated in the other place. It has made this Bill very timely in strengthening and going further on much of what was good about the previous Bill.

There is a clear distinction and a difference between what I think everybody in this place would want to defend, which is peaceful protest, and what we see demonstrated by a very small minority of people who seem to have very little consideration for the welfare of others and for the general economy. I think that this Bill makes that distinction. I do not see anything in this Bill, just like I did not see anything in the policing Bill, that threatens peaceful protest. That is not on the table today.

What is on the table, though, is a Bill that seeks to strike the balance right between allowing peaceful protest and putting clear limits in place when it comes to the reckless activity that meant I had—and I always remember this—one email from a constituent whose carer could not get to them because of the consequences of the reckless behaviour that we saw in East Anglia. Try telling that person who depends upon that care that the Government should not make this issue a priority. I absolutely think that, if I spoke to that constituent today, they would be pleased that this Bill was being debated today and they would see it as a priority. So I am not going to trivialise the importance of this Bill, as some on the Opposition Benches have done.

Richard Fuller Portrait Richard Fuller
- Hansard - -

My hon. Friend is making a very important point about the role of the Opposition in opposing this Bill in principle. Whatever concerns one might have about some details, the fundamental point that something needs to be done about the issues that Members on both sides have mentioned is the reason why this Bill is being proposed, which is why it is of such great concern that the Opposition are opposing on first principles.

Tom Hunt Portrait Tom Hunt
- Hansard - - - Excerpts

I very much agree with my hon. Friend’s comments. We have heard—both today, but also outside of this debate—from senior Opposition Members that they get it, and that actually they do want to put some restrictions in place to stop excessive protests that can have very damaging consequences for people. But we have seen absolutely no evidence that, in practice, they are prepared to do that, and whenever there is an opportunity to vote in favour of what they claim they support, they have opposed it, which I do think is quite damaging.

This points to the wider problem that those in the Labour party have, which is that, on the one hand, they know that actually the majority of people do see this distinction between peaceful protest and the reckless behaviour of a minority, but on the other they want to pander to extremist elements to the left of the political spectrum, and they are caught between those two different pressures. Fortunately, on this side of this House, we feel no such pressure. On this side of the House, we are absolutely clear who we support. We support the 63% of people who, when polled very recently, said that they support the criminalising of locking on—and actually it is not populist to listen to the overwhelming majority who find it deeply frustrating.

In East Anglia, we were among the worst regions impacted, partly because of the oil terminals around Tilbury, the Thames estuary and south Essex. We were incredibly badly affected for days on end by the behaviour of some of these individuals, and on a bank holiday weekend. We obviously have the story of the care giver, but we also have the example of businesses—small businesses—desperately trying to get themselves back on their feet after an incredibly difficult period, being stifled and limited in their ability to do so, again because of the reckless behaviour of a small minority. I myself remember the day—I think it was the Monday that was particularly bad in our area—that it was only at the sixth petrol station I got to that I was able to get petrol. The amount of petrol that the average petrol station held in East Anglia went from I think 45% of capacity to lower than 20%. That is a direct consequence of the protesters’ behaviour.

I welcome the fact that we are introducing these new criminal offences for some of the most reckless behaviour, such as the individuals who go on to the M25 and block hugely strategic roads. That is dangerous to themselves, it is dangerous to drivers and it causes immense disruption, and the targeted action the Government have taken is to prevent that reckless activity. But the point here is that there have been too many occasions where the police have not been as hands-on as they should be. It has caused huge frustration to my constituents when they have seen pictures of reckless protests. Actually, let us be clear: these are not protesters; they are criminals. I am going to stop calling them protesters, because at the point at which they decided to sit down on the M25 and endanger themselves and others, they ceased to be peaceful protesters, so I will unashamedly call them criminals.

When these individuals take that decision, why are we seeing images of police forces that are just, frankly, dilly-dallying—dancing around and doing very little? Why are we seeing that? Why, when the roads to key oil terminals in south Essex are blocked, cannot the police immediately go in there, intervene and move them off, with no pause and no delay whatsoever? So, yes, this Bill is a step in the right direction, and I very much hope that it will create a powerful deterrent to prevent this sort of activity, but I also believe that a firm signal needs to be sent to the police that there have been times when perhaps they have not been as proactive as they could have been in moving some of these individuals on.

I have spoken about the Opposition and what I think of their views on this matter, but some of the comments made by organisations such as Greenpeace and Amnesty International have also been deeply regrettable. Trying to compare the measures in this Bill with measures promoted and implemented by the Putin regime and the regime in Belarus deeply demeans the whole argument, and those organisations do themselves no service whatsoever if they cannot in their own minds make the distinction between peaceful, legitimate protest by individuals in Russia campaigning for democracy, free speech and the ability to live in a world without persecution or fear and the behaviour of individuals who have every democratic channel open to them but who just want to get their own way. These people say, “I’ve used every democratic channel open to me, but I haven’t got exactly what I want, so I am going to disrupt and undermine our economy and divert police resources.” That is not good enough.

--- Later in debate ---
Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
- Hansard - -

It is a pleasure to follow the hon. Member for Brighton, Pavilion (Caroline Lucas). She certainly put out the most certain bet that she has been on more protests than most other people in this House and she is honourable for doing so. She said that the contributions to the debate from the Government Benches had promoted divisiveness. I do not agree with her—people have been trying to express their point of view—but, standing alone, perhaps I shall be a sole voice in expressing some reservations about the intent behind some of the measures in the Bill.

I was grateful to hear some of the contributions by the Home Secretary, particularly her willingness to look at the Bill’s focus. I would like to take that up with the Policing Minister, who has been able to explain to me some of the more detailed provisions of previous Bills.

At some points in the debate, it has not been clear whether Members have been focusing on the Bill in the context of protest, climate change or criminal damage. The Bill is at its best when it focuses on those who would use protest as a cover to cause damage or create unreasonable disruption. It starts to lose its way when it strays away from that into an area where all democratic Governments need to be careful, which is how a Government of the day pass legislation that has an effect on protest.

My first concern of principle, then, relates to imprecision, in respect of which I shall mention a couple of clauses. Before I started to speak, I wrote down that I had concerns about why, with the Government having only recently taken a large Bill through Parliament, we had the provisions sort of re-presented today in this Bill. The right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper), who spoke for the Opposition, had a point about why these measures have come back to the House so soon and whether we have had time to see the impact of the measures passed previously. Again, I can see the rationale for the Bill when it is tight to its intent; when it goes broader than that, I have significant questions.

One reason I am a Conservative is that I believe in freedom of speech—the right of people to express themselves freely. Indeed, as a Government we are emphasising that in a number of other pieces of legislation we are bringing forward. In questions to the Secretary of State for Education earlier, we highlighted the importance of free speech in schools and the need not to have ideological perspectives. We are talking about it in universities, too. As I thought in respect of the Police, Crime, Sentencing and Courts Bill, the Government are at risk of being in conflict with their freedom of speech priorities in proposing a Bill that focuses on some of the restrictions on protests.

Another point that came up in respect of the previous Bill and does with this one, too, is the risk that it puts on police officers being seen as political because of their decisions, given the very broad framework that is set out and the fact that it is hard to explain to someone who is being noisy or disruptive why they are being selected rather than others. I do not expect the Policing Minister to address that today, but it would be helpful to learn a bit more about that in my conversations with him.

I think all Members present will recognise my final concern of principle. It is surely true that our politics have become far more divisive over the past decade. Whatever the reasons for that may be—perhaps it is a matter of political decisions or of social media—when people feel very divided on politics it is important that we keep open to them as many avenues as we possibly can for them to express dissent or an opinion or to say where something is wrong. That is an important context for the Policing Minister and the Government to consider as they think about the application of the Bill.

Let me turn to some points about the Bill’s provisions. I talked earlier about it being imprecise and straying from areas in which it is strong—its focus on the use of protest as cover for criminal damage—and unfortunately clauses 1 and 2 are where that level of imprecision starts. They are worded far too openly. Everyone here seems to know what attaching on means. Is that the phrase? I cannot remember exactly what it is.

Richard Holden Portrait Mr Holden
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Locking on.

Richard Fuller Portrait Richard Fuller
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I thank my hon. Friend. I have no clue what locking on is. I do not know. Some colleagues have made the point. What does one have to attach oneself? I have no idea and there is nothing in the Bill to explain to me what locking on may be. It would be helpful for the Government to produce further provisions on that. It is disappointing that the Government are then extremely precise in clauses 3, 4 and 5 about some of the measures they wish to introduce. Precision is clearly not unavailable to them; it is a matter of choice where they have applied it.

A number of Members have spoken to clause 7, which introduces powers on stop and search. Some people have rightly made the point about the disproportionality of stop and search, which has been an important issue for me in my time in Parliament. My right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes), who is no longer in his place, made his point by saying, “But what about the number of knives and the number of offences that have been caught?” First, that does not answer the question of disproportionality, which is the fundamental reason why many of us have concerns about the use of stop and search. Secondly, that argument is completely inappropriate when stop and search is applied to people going on a protest, because it is about not the other aspects of serious crime or serious drug dealing that we talk about, but people expressing their points of view. I say to the Government, “Please, if you are going to look at the extension of stop and search, think carefully before putting that provision in this legislation.”

Stewart Hosie Portrait Stewart Hosie
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The issue is not just the extension of stop and search but many of the extensions in the Bill. I was struck that, if Lord Hain—then Peter Hain—could be convicted of criminal conspiracy for leading direct action events in the 1970s, which he was as part of the anti-apartheid movement, why do we need this panoply of illiberal measures now? The law was more than capable of dealing with many of the same issues 40 or 50 years ago.

Richard Fuller Portrait Richard Fuller
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The right hon. Gentleman is entitled to his point of view about the broader panoply; my point is specifically about stop and search. I hate the fact that a black man, perhaps with his son, who walks in the streets of London or in my constituency in Bedfordshire is 14 times more likely to be stopped, and very often for no good reason. He may then have to explain to his son or daughter why that has happened. Until we as a population start to find some balance about whether stop and search is useful or not and focus on what it means to the next generation, we will be letting down our young people.

Clause 7(7) is chilling:

“A constable may, in the exercise of the powers conferred by subsection (6), stop any person or vehicle and make any search the constable thinks fit whether or not the constable has any grounds for suspecting that the person or vehicle is carrying a prohibited object.”

That is on the way to a demonstration. We can do better than that.

What is serious disruption? It has been mentioned by many Members. It is a lynchpin in the Bill for many aspects of what may happen, but it is not defined in the Bill. Does the Policing Minister intend to come forward with some more precise language about what constitutes a serious disruption, so that we do not put undue pressure on police officers to work it out for themselves in the heat of the moment when people are going on demonstrations? One Opposition Member—I cannot remember which—said that a large demonstration is very likely to cause serious disruption by dint of being a large demonstration. If there is a protest of hundreds of thousands of people going through a city, there is likely to be serious disruption. If we are not going to define “serious disruption”, we will be at risk of having some of these powers misapplied.

Richard Holden Portrait Mr Holden
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Surely, large protests such as the ones we saw over the Iraq war or the hunting ban, would have engaged with the police at an earlier stage to facilitate a proper, lawful and peaceful protest. What the Government are trying to target are those small, sporadic numbers of people who are causing deliberate harm to specific areas of key infrastructure. Does my hon. Friend understand the difference between those two cases?

Richard Fuller Portrait Richard Fuller
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I do; that was why I said that the Bill is at its best when it focuses on those things. I am just saying to the Minister that we should have more precise definitions in the Bill.

Clause 14(4) lists the prohibitions that may be imposed on someone subject to a serious disruption prevention order. Let me tell the Minister what this reminds me of. Earlier in my time as Member of Parliament for Bedford, I had a constituent who was under a control order. Control orders were brought in for people who our intelligence services said were terrorists or were at high risk of causing a major terrorist incident. Some of the provisions in clause 14(4) remind me very much of the control order provisions that my constituent was under. I ask the Minister please to look at whether that level of intervention on the activities of an individual, who has merely gone about protesting in a way that, yes, may have caused disruption and, yes, may have been subject to the provisions of this Bill, is truly what we should be seeing in a free society.

Nationality and Borders Bill

Richard Fuller Excerpts
Tom Pursglove Portrait Tom Pursglove
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My hon. Friend, who speaks with real experience given his time as a distinguished local authority leader, raises an important point. Of course these ethical considerations are very important in relation to all this. I am acutely mindful of the enormous burden that age assessment has placed on local authorities over a number of years. Some local authorities do this work very well, but the situation is patchy. The capacity that exists, and the speed, thoroughness and ease with which this work is done, depends on where you are in the country. It is important that we are developing this national resource to help with some of this work so as to relieve some of the burdens. One thing I will certainly want the national age assessment board to do is reflect on the best practice that exists in local authorities around the country and bring together that model of best practice to make sure that we get this right.

Finally, the amendment would lower the current standard of proof for social worker age assessments from the “balance of probabilities”, which is long established in case law, to a “reasonable degree of likelihood”. Lowering this standard would require social workers to accept individuals as children whom on balance they believe to be adults. For the House’s benefit, it is important to note that there are safeguarding considerations that flow in either direction. Children being placed in adult settings is clearly not acceptable, and it is not good for adults to be placed in children’s settings either. For those reasons, we cannot accept the amendment.

I will turn to consider the amendments relating to modern slavery, beginning with amendments 23 and 24, which would omit from the Bill the clause that deals with late compliance with a slavery or trafficking information notice. I understand the motivations behind the concerns expressed by the noble Lords who tabled these amendments. This Government are completely committed to supporting victims of modern slavery and tackling perpetrators, but removing the clause would mean that we were unable to clearly set out the consequences of not complying with the slavery or trafficking information notice, which would not help decision makers or individuals involved in the process. It would also create a lack of transparency and certainty.

It is clear on the face of the Bill that where there is good reason for late compliance, there will be no damage to credibility. We have given repeated assurances that, in keeping with the approach taken in our current statutory guidance, “good reasons” will allow for things such as individual vulnerabilities or the effect traumatic events and coercive control can have on people’s ability to accurately recall, share, or recognise such events. I expect that work to be carried out through a trauma-informed approach, which will ensure that decision makers have the flexibility and discretion to appropriately consider “good reasons” without prejudging what that should cover. We therefore cannot agree to the amendments.

Amendment 25 would remove from the Bill the clause that deals with disqualification from modern slavery protections where an individual is a threat to public order or has claimed to be a victim in bad faith. It would replace the clause with a new clause that does not provide a definition for public order and, as a result, the Government would remain unable to operationalise the public order disqualification. That would mean we were unable to remove individuals who had committed serious criminal offences or who posed a risk to national security, despite it being in line with our international obligations to do so.

The Government have been clear that the disqualification will not be applied in a blanket manner. Rather, following a referral to the national referral mechanism, where an individual meets the public order definition or has claimed in bad faith, the specific circumstances and vulnerabilities of each case will be carefully considered. It is our view that amendment 25 does not fulfil the aims of the original clause and would not protect the modern slavery system from those who act in bad faith, nor protect our communities from those who present a threat to public order or a risk to national security.

Richard Fuller Portrait Richard Fuller (North East Bedfordshire) (Con)
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The Minister said that in those cases, there would be an assessment of the risk to public order. Has he made an assessment of what proportion of the cases, say in 2020, would have had these individual assessments based on the criteria presented in the Bill? He may not have that information to hand, but if he could reply to the House on that later, it would be helpful.

Tom Pursglove Portrait Tom Pursglove
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I recognise entirely the interest that my hon. Friend shows in these matters. If I may, I will take that point away, ponder it and then comment on it specifically when I wind up the debate. I am grateful for the question, and I am happy to revisit that point.

For the reasons I have outlined, we cannot agree to amendment 25. Amendment 26 would remove the clause that provides leave to remain for victims of modern slavery or human trafficking and replace it with a new clause. I pay tribute to my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and to Lord McColl for their work in this area. We agree that confirmed victims should be granted leave where necessary to assist them in their physical and psychological recovery from harm caused by exploitation, to seek compensation in respect of their exploitation or to assist the authorities with investigations or prosecutions in respect of that exploitation.

The Government have already committed to providing all those who receive a positive conclusive grounds decision and are in need of specific support with appropriate tailored support for a minimum of 12 months, where necessary. That will be set out in guidance, but the amendment does not make the critical link between relevant exploitation and the grant of leave. That means that someone could be granted leave to remain on the basis of personal circumstances unconnected to their exploitation, or to pursue an unrelated compensation claim or to assist an unrelated investigation. For those reasons, we are not able to support the amendment.

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Richard Fuller Portrait Richard Fuller
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To maintain the hon. Lady’s record of Conservative interventions that are somewhat supportive, is not what she has just said about that 48% the answer to the question I posed to my hon. Friend the Minister? Under the Bill as presented, the Home Office will be required to intervene in half the cases to make the very difficult judgment whether to exclude or not exclude. Does that not open us up to a huge amount of potential risk?

Holly Lynch Portrait Holly Lynch
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I thank the hon. Gentleman for that helpful contribution. As we learn more about county lines gangs and their operating model, we see more and more young people and children subject to the worst exploitation by some of the vilest criminal gangs. Those are the children who are referred into the national referral mechanism. They have been encouraged, exploited and forced to commit crimes as part of their exploitation, so if we are to bust those gangs they are the children we need to be looking after and supporting, and we need to support them through the prosecutions of their abusers. That 48% were criminally exploited, so we must ensure that children who have been victims of county lines gangs have protection.

It will drive more people underground and make it significantly harder for the police and authorities to investigate the perpetrators of human trafficking without the trust and support for victims in place. It also sends a clear message to perpetrators of human trafficking that they are free to exploit vulnerable people with a criminal record, knowing they will now be exempt from protection. Clause 62 represents a massive step backwards in our shared ambition to see more traffickers before the courts if it passes unamended.

Lords amendment 26 removes clause 64 and introduces a minimum 12 months leave to remain, and tailored support for all individuals who have been found to be confirmed victims of modern slavery. To demonstrate how difficult it still is to have your migration status resolved upon recognition of your exploitation, data obtained from the Home Office shows that in 2019-20 only 2%, or 17 out of 754, of child victims of modern slavery in the UK were granted discretionary leave to remain. The amendment would ensure that victims are provided with protection, support, security and stability to support their recovery in a way that promotes engagement with police and prosecutors. This proposal has gathered significant cross-party support, and I wish to highlight the work that has been conducted across the House and in the other place, specifically by the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and Lord McColl. On the Labour Benches, we strongly support the amendment. Once again, it is frustrating that the Government have failed to listen and to act on the commitments they made in earlier stages of the Bill in this place.

Just last week, the Court of Appeal rejected the Government’s attempt to overturn the High Court ruling last October that granted thousands of victims of human trafficking leave to remain. During the court case, the Government stated that they want to ensure the Government are in keeping with the European convention on action against trafficking in human beings, yet that differs from what the Government have argued in both Houses. That would have a considerable impact, given that 91% of conclusive grounds decisions made in 2021 were positive, which means the Home Office deemed the individuals to be confirmed victims of modern slavery.

In conclusion, the amendments seek only to bring the Bill closer to adhering to the Government’s own guidance and best practice on supporting vulnerable victims of modern slavery and trafficking. There are others, but I have made the case for Lords amendments 24, 25, 26 and 27, all of which would significantly improve the proposed legislation before us. Lords amendment 22 also has our full support. The sector has been unified in its condemnation of the initial measures contained within that section of the Bill and there has been overwhelming evidence in support of the Lords amendments at every stage. The most recent number of referrals to the NRM was 12,727, representing a 20% increase in referrals compared to the previous year—the highest number of referrals since the NRM began. That is a deeply worrying trend and more must be done to tackle this abhorrent crime that continues to see shockingly low prosecution rates.

All sides of the House have worked to end the abhorrent crime that is modern slavery. We should be seeking to build on the Modern Slavery Act 2015 and on our commitments in that legislation. We want to work with the Government, as do the sector and the victims themselves. I therefore strongly urge the Government to think again and accept the Lords amendments.

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Rosie Winterton Portrait Madam Deputy Speaker (Dame Rosie Winterton)
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Order. I am afraid that I have to reduce the time limit to three minutes.

Richard Fuller Portrait Richard Fuller
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I want the UK to be known as a place of refuge and justice as well as a place of opportunity and freedom. When examining immigration Bills over the years, I have always looked to see where there could be an issue of moral hazard in what is being proposed and the changes being made. In this Bill, my eyes were immediately drawn to clause 62 and to Lords amendment 25. The title of clause 62 is “Identified potential victims etc: disqualification from protection”. The clause is replete with moral hazards in whatever actions the Government might take. As it happens, I do not think that the Government have got the balance right, but I am also not sure that the Lords amendment is quite right.

My request to the Minister, who is ably managing the Bill, is to continue the conversation with their lordships on this provision, because of the risks of moral hazard. For example, is it really right that we should continue to include taking away this protection from children? Is it right that we should continue to have a provision that someone who in their past has undertaken a crime under duress should be liable to the protections being taken away? The Minister has argued that it is important to define this, so that the issues of public order can be applied, and I see some relevance there, but why is it important to rely so heavily on information that relates to an individual’s past, rather than take into account their circumstances and the potential risk they pose today? That balance has not been struck correctly.

The noble Lords Coaker and Randall in the other place sought to correct that by trying to draw a tighter definition about the risks, stating that there has to be

“an immediate, genuine, present and serious threat”,

but I think they have overcooked it a little bit. It is quite a lot to say that all those criteria have to apply. Between the Government’s present criteria, which rely too much on an individual’s past, and the Lords amendment, which is drawn a bit too tightly about where these protections should be applied, there is scope for the Government to find some ground for compromise. I certainly hope so.

Alistair Carmichael Portrait Mr Carmichael
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I shall of necessity be very brief. First, I would like to place on record my appreciation of my colleagues in the other place, in particular Lord Paddick, Baroness Hamwee, Baroness Ludford and Baroness Suttie.

I find myself somewhat perplexed about the measures relating to modern slavery because, as the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) said, the Conservative party has until recently had a really good story to tell on modern slavery. It started with the work of Anthony Steen. The right hon. Gentleman spoke about the passing of the Modern Slavery Act 2015, and in this context I pay particular tribute to the former Prime Minister, the right hon. Member for Maidenhead (Mrs May). I saw how, as Home Secretary, she drove this agenda in Government. Believe me, the Home Secretary in the coalition Government was not always an immediate ally for Liberal Democrat Ministers. She had a particular knack for generating tension, not just within the coalition but occasionally within her own party, but she really understood the importance of this issue and drove it forward in a way that I think the party should be proud of. I am afraid that what I see in relation to Lords amendments 24 to 26, coming from people such as Lord Randall—someone with whom, again, I was pleased to work during his time in this House—flies in the face of that work. It undermines the tremendous progress this country and the Conservative party have made.