Draft Accounting Standards (Prescribed Bodies) (United States of America and Japan) (Amendment) Regulations 2024

Rushanara Ali Excerpts

Wednesday 24th April 2024 General Committees

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hollobone. I welcome the regulations, which correct an error. A mistake was made, as the Minister has described. Of course, we support this correction and support regulations that aim to enhance the attractiveness of the UK as a domicile for businesses. We must ensure that the UK remains an inviting destination for businesses. We must continue to work towards making our country an important destination for businesses to do business and somewhere they feel welcomed, and our legal arrangements must be such that that is the case.

The 2015 regulations provide to US and Japanese-listed parent companies an extended transition period of up to four financial years, after incorporation in the UK, to convert to UK accounting principles. We support the objective of the regulation to encourage US and Japanese-listed companies to re-domicile in the UK. As the Minister set out, regulation 4 of the 2023 regulations was laid incorrectly, under the negative resolution procedure, and today’s legislation corrects that error. Parent companies are therefore not subject to any enforceable obligation to note their group accounts under the existing, incorrectly laid regulation. I am glad that the new instrument corrects the mistake.

Driving growth in the UK must be one of our top priorities. To enable that, we need to ensure that we attract inward investment. I therefore welcome the correction to the regulations, which ensures that the aim of the process of overseas companies integrating into the UK is fulfilled.

Draft Economic Growth (Regulatory Functions) (Amendment) Order 2024 Draft Growth Duty: Statutory Guidance Refresh

Rushanara Ali Excerpts

Tuesday 23rd April 2024 General Committees

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Paisley.

I thank the Minister for introducing the draft proposals, which will cover three of the UK’s regulators, Ofwat, Ofgem and Ofcom. As the Minister set out, the regulations we are considering concern the growth duty under section 108 of the Deregulation Act 2015, which requires particular regulators to consider how best to promote economic growth as they exercise their core functions. We recently saw the growth duty expanded to the financial services regulators, the Financial Conduct Authority and the Prudential Regulation Authority, as part of the Financial Services and Markets Act 2023, and there are now more than 50 regulators bound by the growth duty.

This draft legislation will see the growth duty expanded to Ofgem, Ofwat and Ofcom, and will therefore mean that those regulators will also have to consider how their functions can promote economic growth. I would be grateful if the Minister could set out some of the lessons learned from the experience of the regulators that already have the growth duty built into their objectives.

Labour recognises the importance of the water, energy and communications sectors to our economy and the vital role that the three regulators under discussion play in shaping those sectors. We agree in principle with the need for those regulators to formally recognise their role in contributing to economic growth where viable. However, as I am sure many colleagues will agree—the Minister has already alluded to this point—such a move has the potential to create frictions or opposing and competing demands on regulators as they carry out their core regulatory functions. We must make sure that we strive for sustainable economic growth that is forward looking, inclusive and based on strong and secure foundations.

As the Minister will be aware, where the competitiveness duty was introduced in the regulation of financial services, there were extensive discussions, which as members of the Treasury Committee he and I were a part of, about making sure that the regulator’s primary objective of stability did not conflict with that of competitiveness. Much work has been done and lessons have been learned about how to make sure those things happen appropriately and do not cause confusion within the regulatory system, as well as out there in the market.

I am sure it has not escaped Members’ attention that, of the three regulators under consideration, Ofwat is already under significant scrutiny and pressure. Last year saw the highest number of sewage discharges on record. There will, rightly, be public concern that additional duties, while welcome, should not create an additional set of pressures that are hard to deliver on. I hope the Minister can shed more light today on how the regulators can fulfil existing duties as well as the new duty.

After 14 years of this Government being in power, the sewage scandal has resulted in waters and open spaces across the country being polluted with filthy raw sewage. Not one English river is classified as being in a healthy condition. None meet good chemical standards and few meet good ecological standards. Environment Agency data shows that sewage has been dumped every 2.5 minutes since 2016. Not only have the Government allowed the water companies to dump sewage and neglect our vital water infrastructure, some of the companies responsible have been rewarded, through allowing shareholders to receive dividends and water bosses to pocket bonuses. I know this is not the Minister’s direct responsibility, but I hope he will take note of the public concerns about the need for strict regulation to make sure standards are met and people do not suffer the consequences of neglect.

Given the pressures on Ofwat, can the Minister tell us how confident he is that it has the appropriate resources to not only fulfil its current duties but also respond to the growth duty? Does it and the other regulators have the expertise within their institutions to be able to focus on the growth duty? If we want the growth duty to be effective and successful, it is important that the people within those institutions are able to work with the industry and with Government to make sure that it is meaningful.

The economic impact assessment estimated that the familiarisation costs of the growth duty would have some resource implications. Will the Minister make those resource implications clear? Can they be met within existing budgets or are additional resources needed? Will they be provided?

I also seek assurances from the Minister that the regulator’s core consumer and environmental responsibilities will not be jeopardised by this move. I am assured by some of the points that he has already made, but could he say more about precisely how his Department and other relevant Departments will work with the regulators to make sure that they have a clear understanding of the need to meet their respective commitments and obligations?

Understandably, many respondents to the Government’s consultation shared concerns, with 25% opposing the changes. To that end, while we welcome the Government updating the statutory guidance, as the Minister has referred to, to clarify how the growth duty should fit within the regulators’ existing obligations, it would be helpful to have more information on precisely how that will be done. Given the delicacy and importance of regulators’ roles in policing their various sectors, how do the Government intend to closely monitor the impact of these changes in a timely manner?

As an example related to Ofcom, could the Minister imagine a situation where the expanded growth mandate could result in the green light being given to a takeover that could compromise our national security and a free and fair media, or lead to one provider dominating the media landscape? He will be aware of examples where foreign Governments have sought to buy stakes in our media, and so on. Are there provisions in place that cover those concerns and that he is comfortable with? If not, what further steps can be made to reassure the public that the growth duty, while welcome, necessary and helpful, needs to be applied appropriately to protect our free media and national interest?

We on the Labour Benches recognise the importance of a long-term plan to grow the UK economy, particularly after such a long period of sluggish growth. That is why we have made securing the highest sustained growth in the G7 the central mission of a future Labour Government. However, it seems that this has only recently come to the fore for the Government. Why have the three regulators been added on now, rather than at the time the growth duty was introduced? There may be very good reasons. It would be helpful to understand better. Is it because the Government wanted to do further preparatory work with the regulators before introducing the growth duty? Were those regulators considered earlier on, when the others were first introduced?

In summary, we support this instrument, but urge the Government to meticulously monitor its impact and effectiveness in delivering long-term growth, and to ensure that the safeguards are in place to make sure that the regulators fulfil their primary objectives, although those are not framed in the same way. Is there a differentiation between primary and secondary objectives, as was the case for the example I mentioned earlier, or are they parallel objectives? Are there issues about competing demands on the regulators?

--- Later in debate ---

[Rushanara Ali]

I asked the Minister about the primary and secondary objectives, and whether he sees any parallels in how these changes are thought of—I know this is about having due

“regard to the desirability of promoting economic growth”.

Does he think there is a parallel with the way that the competitive duty has been applied?

There is a potential tension to be managed in how regulators think about the importance of sector regulation and the Government imperative to promote growth. When regulatory officials think about our priorities, they might err on one side or the other, and that tension could be a problem. Does he feel that more work is needed to emphasise how the measures are applied, so that consumers do not suffer while we try to promote growth?

We need to do these things in tandem, so that we do not end up with a false economy, where damage is done to the economy through protections and standards that then cost the taxpayer a significant amount. That would leave us in the worst of all worlds, and is surely something that all different parties want to avoid.

[Kevin Hollinrake]

I do not disagree with anything the hon. Lady says. This is a parallel objective, not one that should replace the current objectives. It is a consideration for regulators. It is about not just obviating the risk, but looking at other factors. Investment is hugely important for our consumers and our citizens. This draft order is not about one thing or the other—for example, it will not replace the environmental duties of Ofwat. Indeed, the Environment Agency, which has had this duty since 2017, has issued about £150 million in fines to 60 different companies, so this is not about backing off on environmental protections. The hon. Lady raises an important point, however, and we have committed to reviewing how these measures will affect the general regulatory regime to ensure that there are no unintended consequences, although we do not feel that there will be, as long as the right balance is struck.

Of course, regulation must be used only where absolutely necessary, and must be implemented in a way that provides the right foundations for our economy to thrive. The purpose of the duty is to ensure that the specified regulators give appropriate consideration to the potential impact of their activities and decisions on economic growth, alongside their consideration of other statutory duties. It does not create a hierarchy over existing protections.

With that, I believe I have addressed all the questions posed by right hon. and hon. Members, and look forward to the Committee’s support and commendation of the order.

Draft Post Office Network Subsidy Scheme (Amendment) Order 2024

Rushanara Ali Excerpts

Wednesday 17th April 2024 General Committees

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Vaz. I thank the Minister for outlining the details and explaining why this statutory instrument has been brought to Parliament today. Since the exposure of the Horizon scandal, Labour Members have sought to work with the Government while applying the necessary scrutiny to ensure the most effective process for the wrongly accused sub-postmasters to receive the justice and compensation they deserve.

We will continue to provide the necessary scrutiny and critique where necessary, both in the Post Office (Horizon System) Offences Bill as it continues to progress through Parliament, and this piece of secondary legislation. I hope the Minister will not have too many objections. As the Minister has pointed out, the cap has been raised by the Government from £500 million to £750 million, and we do not oppose their reasons for doing so. I would, however, like to press the Minister on a few outstanding points.

The annual limit on the Government’s Post Office funding stood at £160 million until 2011, when the cap was raised to £500 million, and has remained unchanged. We can see the rationale, given the context of what has happened recently, of increasing the cap to £750 million. As the Minister has laid out, the Government have pointed to the range of factors that risk breaching the current £500 million spending limit: the focus on the compensation for sub-postmasters relating to the Horizon scandal, the funding for the replacement of the Horizon IT system, and the ongoing financial demands to keep the branch network operating given the cost pressures and the economic climate.

It is good to hear the Minister highlight the 6,000 rural branches. In discussions that I have had with sub-postmasters since I took on this position, it is very clear that there are huge pressures, and we have seen the closure of a number of post offices in different communities. I am sure the Minister will understand the unease many will feel about this uplift, given the recent scandals and the role of the Post Office in that context. That is not to say that the network of sub-postmasters, who have been doing such a phenomenal job around the country, is at issue. It is about management, leadership and many of the issues that have been exposed in the recent scandals, such as the removal of the chair and the other recent issues that have come through over the course of the inquiry hearings. That is what the public are hearing about regularly.

It would be helpful if the Minister provided some assurances. He has mentioned compensation, and his answer to the right hon. Member for North West Cambridgeshire was helpful. Can he explain roughly what those allocations might be, perhaps later if he is not able to explain today? Should that uplift be used, does he have in mind the kind of amounts intended for the compensation scheme, the Horizon replacement scheme and the wider network? Will those allocations strike an appropriate balance in providing that? Will that be sufficient or will there be a need to provide further uplifts?

The other issue that sub-postmasters have raised with me in discussions is a general concern about a bonus culture at the Post Office, as well as the wider culture at the senior management level and the tick-box attitude to sub-postmaster engagement. That is a snapshot of impressions that I have received, but it would be useful to know what discussions the Minister is having with the broader organisation, as well as management, about how that uplift will be used, and to receive an assurance that the uplift is going to be used properly and effectively.

The public will want to know that the uplift—the Minister may well be able to answer this right now—will not be used to provide bonuses and increase remuneration for people in senior management. As we have heard recently in the public domain and in the media, as well as in a Select Committee hearing in February, pay and remuneration issues have come up quite a lot. It would be helpful if the Minister can reassure us that this uplift is not about that.

I hope that the Minister will accept the spirit of another point I want to make. It is a wider point that has come up—I know he is doing a lot of thinking on this—about reform of the Post Office and tackling the wider sets of issues about institutional culture, the governance of the organisation and learning the lessons of what has been exposed through the Horizon scandal. Of course, there is much more work to do in following up the outcomes of the inquiry report. While we support the uplift, I hope that the Minister can address some of those questions. If he is not able to address all of them today, I hope that he will be able to do so subsequently.

I would like to ask a few questions about Fujitsu. As the Minister has sought the uplift in relation to the compensation programme, I would like briefly to turn to the specific issue of funding and his assurances about seeking to recover funds from Fujitsu, given its role in the Horizon scandal. As we all know, the tech giant’s faulty Horizon IT system is at the heart of the Horizon scandal. Its senior executives have already accepted moral responsibility, but it remains unclear what role it will have in the compensation process. As I think most Members will agree, it is only fair that Fujitsu at least contributes to the compensation funding, rather than leaving the British taxpayer to foot the entire bill. This is particularly pertinent given that Fujitsu has held Government contracts worth more than £3.4 billion since 2019. Many have raised this issue over the past weeks and months. I raised it on Second Reading of the Post Office (Horizon System) Offences Bill, and my colleague Lord McNicol raised it in the Lords when this SI was debated.

Based on previous Government responses, I think it is fair to say that the Government do intend to seek payments from Fujitsu, and we look forward to working with the Minister and his team to continue the pressure to make this happen as quickly as possible. However, we remain somewhat in the dark over how much progress has been made. It would be really helpful if the Minister outlined whether he has a timeline in mind for when payments will be made, how much progress has been made, and whether he requires cross-party support in getting the job done, with the total cost of compensation likely to be upwards of £1 billion. If the Minister is not able to provide further answers today, could he provide them in writing?

In conclusion, I thank the Minister for the work he has been doing and look forward to working with him to provide the necessary support to the post office sub-postmasters and their network to ensure that it is stabilised and gets the support it needs. The compensation programme is there to support victims as quickly as possible. I also look forward to working with him to ensure that Fujitsu is made to pay for what it is ultimately responsible for.

[The Chair]

I remind Members that the scope of the Bill is setting a new cap on spending of up to £750 million. I call the SNP spokesperson.

Post Office (Horizon System) Offences Bill

Rushanara Ali Excerpts

2nd reading
Wednesday 20th March 2024 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

We are now over two decades into this scandal, with the victims still suffering the ongoing consequences of this injustice: unjust prison sentences, bankruptcy, ostracisation from communities, family breakdown and homelessness. Tragically, as we have heard, this scandal has led to some people taking their lives. According to the Post Office Horizon IT inquiry, at least 60 sub-postmasters had died without seeing justice or receiving compensation as of 10 August 2023, and at least four had taken their own lives. All our thoughts continue to be with their families.

This scandal has been a seismic tragedy at every stage. The mental toll and stress that victims have faced is beyond what many of us can begin to comprehend. This scandal has been defined at every turn by an abuse of power, disregard for sub-postmasters’ lives, the passing of blame and perpetual delay.

This Bill is an important step forward in addressing the greatest miscarriages of justice in our country. It will mean that hundreds of innocent victims will have their rightful innocence returned to them. However, this is just one of a number of actions that need to be taken to make amends and to correct this terrible injustice. We need to see convictions quashed, compensation delivered urgently and justice sought from the independent inquiry.

Along with other colleagues, I pay tribute to Alan Bates and the many sub-postmasters who have campaigned and worked tirelessly to see justice. This Bill marks an important victory for sub-postmasters, and I pay tribute to their bravery and perseverance in the face of so much suffering and adversity. They have had so much taken from them, and yet they have kept fighting. This is truly remarkable, and it is wonderful to hear the tributes that have been paid by so many across the House and also across our country.

I pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) for all his work fighting on behalf of sub-postmasters, and to Lord Arbuthnot for his years of work on tackling this injustice. I also thank the Minister for postal affairs, the Under-Secretary of State for Business and Trade, the hon. Member for Thirsk and Malton (Kevin Hollinrake), for all his work, from the Back Benches as well as from the Front Bench. There have been many Members across the two Houses who have highlighted the injustice suffered by sub-postmasters, and I extend the Opposition’s appreciation for the work they have done and for the cross-party nature of the campaigning that has gone on thus far.

I think we can all agree that the influence of the ITV drama “Mr Bates vs the Post Office” has been very significant in this campaign. The Minister has done a huge amount of work, but there is no denying that that programme has brought to the attention of the wider public the scandal that has affected so many sub-postmasters. However, it should not have taken the release of that drama to get to where we are today. This is in no way a criticism; it is a recognition of the fact that certain scandals have needed that wider attention from the media, from programmes and documentaries, before attention is received. But we are where we are, and it is encouraging to see the steps that have been taken.

This Bill will quash the convictions of the sub-postmasters and others who worked in the Post Office branches who suffered as a result of the Horizon scandal. As has already been said, and I further stress, the quashing of these convictions must not set a precedent. The Bill undermines a key part of our democracy, the separation of the legislature and judiciary. As has been said earlier, it is a constitutional anomaly. We must understand the weight of this so that such action is never considered again. The legal solution of this Bill is a wholly exceptional and isolated case, where these necessary actions will be taken to match a miscarriage of justice unprecedented in both scale and impact. As the shadow Business Secretary, my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), has made clear, an incoming Labour Government would never use this kind of action again.

I echo the comments on the territorial scope of today’s Bill and restate that the Labour party supports the calls to extend the provisions of the Bill to the cases in Northern Ireland. Every party in Northern Ireland and every Minister in the new Assembly is calling for their inclusion in the Bill. Their exclusion will sadly only delay the exoneration of victims in Northern Ireland all the more, so I hope the Minister will seriously consider this decision and what can be done further, and take on board the points that have been made by hon. Members including my hon. Friend the shadow Business Secretary.

We have heard many powerful contributions in today’s debate, and there is broad agreement on the Bill’s necessity. The right hon. Member for Haltemprice and Howden (Sir David Davis) highlighted his misgivings, and he described the Bill as representing

“the best of a bad job.”

Of course, he extended his support and highlighted the Bill’s unprecedented nature.

My right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) made the case for speed in granting compensation. My right hon. Friend the Member for North Durham (Mr Jones) raised important concerns about the potential limitations of setting deadlines for paying compensation. While ensuring the proper handling of complex cases, I hope the Government will take those points into consideration.

My right hon. Friend also raised important points about the need for the judiciary and the Government to learn broader lessons from this scandal so that they can be applied to other scandals, a number of which have been mentioned in the debate, including the contaminated blood scandal and the Windrush scandal. It is encouraging to see such eagerness to reflect and learn so that things do not have to go this far before being addressed.

The hon. Member for Motherwell and Wishaw (Marion Fellows) has been a tireless advocate and campaigner for justice for sub-postmasters, and she rightly highlighted the need to continue our laser-sharp focus on supporting victims. She and others in her party relayed, once again, the concern that Scotland has been left out of the Bill.

The hon. Member for Sutton and Cheam (Paul Scully) spoke powerfully about his time as postal affairs Minister. As he is standing down, I commend him for his work in the Department and for his wider cross-party work on a number of issues, including Myanmar with me and many other colleagues. We wish him well in his future endeavours. Like others, he raised the need to learn lessons and to ensure that, when we say that scandals of this scale must never happen again, we truly ensure that they never happen again.

The hon. Member for North Norfolk (Duncan Baker) spoke powerfully about his career as a sub-postmaster. He brings insight to this debate and the campaign, and he reflected on how he has supported his constituent who has faced trauma, and how he has drawn those lessons into the Minister’s work. I was struck by the way in which he reflected on the wider issues.

The hon. Gentleman said that work is needed on the Post Office’s culture in tackling wider systemic issues, and he said that the Post Office is “losing its soul”. As we look to the future, I hope the Government will consider how we make the necessary reforms so that the Post Office is fit for purpose. He rightly said that Fujitsu needs to be held accountable, and that it should pay compensation. Although that is outside the scope of this Bill, the Minister and others need to ensure that Fujitsu pays for what was caused by its technological failures.

The right hon. Member for East Antrim (Sammy Wilson) made a powerful case for those whose appeals have been rejected, and he argued that their cases need to be reconsidered. I know that the Minister has responded and will look at those issues closely. The right hon. Member also made the point about territorial scope, reinforcing the point about the need for Northern Ireland to be included in the Bill. The point about the 12-week consultation has been made consistently, as it means that the 27 or 30 Northern Irish cases will face huge delays. That means further suffering, so it is important for the Government to consider including Northern Ireland, as we have called for.

The right hon. Member for Orkney and Shetland (Mr Carmichael) made the case for the Scottish Government to introduce legislation in parallel in Scotland. Much work has been done in Scotland and the case for needing to work in parallel, in lockstep, to ensure that there are provisions in Scotland has been made. The hon. Member for North Down (Stephen Farry) spoke about prosecutions that should never have taken place. Once again, he made the case for Northern Ireland’s inclusion and for avoiding delay.

We have heard many powerful testimonies from victims who have said that they lost decades of their lives to this scandal. Katie Downey, who set up the group Lost Chances for the Children of Sub-postmasters to support the children of some of the victims of the scandal, said that when her father was made bankrupt by the scandal she was 11 years old and her family had to flee to France. She stopped speaking for two years as a result of the trauma; her childhood was shaped by this injustice. We must not forget the wide-reaching impact of this scandal on family members. There are children, spouses, parents, close friends and neighbours who have not only journeyed with the victims, but suffered themselves and lived out the consequences of this injustice.

Seema Misra was jailed on her son’s 10th birthday, while she was pregnant, after being pronounced guilty of stealing £74,000 from the post office she ran—she had been wrongly accused. Ms Misra and her husband had been trying for a baby for eight years and what should have been one of the happiest moments of their lives became a nightmare. She was put under suicide watch in prison and describes how she reached “rock bottom”. Those are only two stories of the horrors that have defined the lives of victims.

Today, I thank colleagues from across the House for powerfully sharing the examples of the cases they have dealt with, be they those of constituents or cases they have come across through their campaigning work. I also thank colleagues for the tireless work they have done in advocating for those people, telling their stories, talking to Ministers and persisting. These people’s stories and voices must be central in shaping our next steps in the pursuit of their compensation, of justice and of their exoneration. We welcome this crucial piece of legislation, but it is by no means anywhere close to an end point. It is merely a further step in the right direction in securing justice for the sub-postmasters.

We support the work of the independent inquiry in uncovering the full and precise truth of all that has unfolded in the Post Office. Truth and justice has been denied to sub-postmasters at every turn, and I hope that the inquiry will finally provide the transparency that is desperately needed. There is much still to be done in the pursuit of justice for sub-postmasters, and we must all continue to support them and do all we can to right the many wrongs they have suffered.

Draft Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024 Draft Economic Crime and Corporate Transparency Act 2023 (Financial Penalty) Regulations 2024

Rushanara Ali Excerpts

Thursday 14th March 2024 General Committees

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Vaz. I start by thanking the Minister for outlining the case for these regulations. I am sure those colleagues who worked long and hard on the Economic Crime and Corporate Transparency Act 2023 welcome its implementation and the ambition to stamp out economic crime.

I begin with the consequential, supplementary and incidental provisions instrument. This technical instrument will ensure that company law applies coherently by making amendments to other primary and secondary legislation and ensuring that the law operates effectively and consistently for all registrable business entities. It will help strengthen the role of Companies House. It is not forecast to have a material impact and amends various existing laws to enact the 2023 Act, effectively tidying up existing legislation. As such, we are content to support the regulations.

I turn to the financial penalty regulations, which will allow the registrar to impose fines on a person if satisfied beyond reasonable doubt that they have committed misconduct, as opposed to resorting to penalties via the criminal justice system. Thus far, the only civil penalty regime operated by Companies House is the late filing penalty regime. In that situation, a company faces an automatic penalty if it fails to submit its accounts within the designated timeframe.

This new regime will operate in conjunction with potential criminal sanctions and will allow the registrar to decide whether to pursue a pathway of financial penalty or criminal sanction. Compared with criminal prosecution, we recognise that civil financial penalties provide a less costly and time-consuming process to hold people to account and to punish wrongdoing. I am conscious that, when the 2023 Act was going through Parliament, this change in the implementation of penalties sparked some debate. However, we are content to support these regulations.

I have one question for the Minister about the support being provided to Companies House. Could he provide some assurances that it is getting the back-up and resources to make sure that it can fulfil its very important role?

I thank everyone for their time in helping to implement these regulations. I know we all want to achieve the shared goal of improving the effectiveness of the way that we tackle and punish economic crime.

Post Office Legislation

Rushanara Ali Excerpts

Wednesday 13th March 2024 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

I thank the Minister for advance sight of his statement. Before I respond to it, I would like to put on the record my deep disappointment at the Minister’s comments this morning on “BBC Breakfast”. He failed to categorically condemn the Tory party donor Frank Hester’s horrific and racist remarks about the right hon. Member for Hackney North and Stoke Newington (Ms Abbott). Despite No. 10 finally, after much delay, describing the remarks as “racist and wrong”, the Minister appeared to contradict that position this morning.

[Shailesh Vara (North West Cambridgeshire) (Con)]

On a point of order, Mr Speaker. This is a statement on Post Office legislation. May I respectfully say that what the hon. Lady is saying is irrelevant to this statement?

[Mr Speaker]

The shadow Minister will be moving on.

[Rushanara Ali]

I will move on. I simply hope that the Minister will reflect on the reversal of the statement he gave this morning, in which he took the position that he would take a donation from that donor. I hope he reflects on the impact that the issue is having on many of us.

I turn to today’s crucial statement. The Horizon scandal is truly shocking, and is one of the most devastating miscarriages of justice in British history. The scandal has brought devastation to the lives of hundreds of falsely convicted sub-postmasters. Over 20 years on, they and their families still suffer from the consequences and the trauma of all that they have been put through. I pay tribute to them for their determination in pursuing justice, and to Alan Bates and the sub-postmasters who pioneered the campaign and worked tirelessly to seek justice. Without their bravery and perseverance, the campaign would not be where it is today. I also pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) for all his work, to Lord Arbuthnot for his campaigning on this issue for many years, to others in this House and the other House, and to members of the Business and Trade Committee and its Chair, my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne).

We of course welcome the legislation that is being laid before Parliament today, but before giving a full verdict on it, we will need to properly scrutinise the details and analyse its potential impacts. In the first instance, the legislation leaves a series of outstanding issues, and the question of when justice and compensation will be delivered, and to whom. First, I will address the territorial scope of the legislation, which currently applies only to England and Wales, even though the Post Office is not devolved, and the Horizon system and the impacts of the scandal are UK-wide.

Approximately 30 cases need overturning in Scotland and Northern Ireland, but a series of outstanding questions remain as to when sub-postmasters in Scotland and particularly Northern Ireland will receive justice and compensation. I welcome the Minister’s assurance that there will be regular dialogue with the devolved Administrations, but I would be grateful if he provided more detail on how that will work in practice, given the different legal processes.

As we know, 80% of the redress budget is yet to be paid out. There remains considerable uncertainty about when sub-postmasters will receive their compensation. I am sure that we can all agree that they have waited long enough, and the delays are causing further financial distress and suffering. We note the Business and Trade Committee’s recommendation that there be a legally binding timeframe for the period between an offer being first tabled and a settlement being reached. If those legally binding targets are not adopted, what assurances can the Minister give that he will meet his target of ensuring that all compensation is out of the door by the end of the year? What mechanisms will he put in place to ensure that there are no further delays? I know that he is committed to ensuring that there are no further delays, but sub-postmasters will want to know that this will actually happen.

Given the recent chaos in the Post Office’s leadership, we welcome the decision to take the Post Office out of the redress process. As the Minister said, redress must have independent oversight. The Post Office is in disarray, and we need focus and efficiency in ensuring that compensation is paid to the sub-postmasters as soon as possible.

Financial redress alone cannot come close to repaying sub-postmasters for their suffering, though it is so important that we get it right. The very least the Government can do is ensure that sub-postmasters receive fair compensation and exoneration as soon as possible. There are those impacted by the scandal who have sadly passed away, and did not live to see their innocence proven or to receive the compensation that they deserved. It is vital that the Government act with the urgency and speed that is needed to correct this terrible injustice.

[Kevin Hollinrake]

The shadow Minister’s comments are on the record, so I shall deal with them briefly. I think this is the second time she has made comments at the Dispatch Box that have been unfair or factually incorrect, and I hope that she will correct the record. If she had actually watched the interview I gave, she would know that I absolutely did condemn the words of Mr Hester. I said they were wrong. I said they were racist, and I think it is absolutely right that he has apologised. She should watch the full broadcast, and I hope that she will apologise to the House and correct the record.

The points that the hon. Lady raised pertain largely to the Scottish and Northern Ireland devolved Administrations. I quite understand the concern around those issues, and I am very keen to ensure that we get this right across the United Kingdom. As she acknowledges, there are different legal processes in those areas, and we think it would be inappropriate for us to legislate for parts of the United Kingdom that have different legal processes and different prosecutors. Justice is devolved, although the Post Office is a UK-wide organisation, as she rightly says. That is why we think the legislation should allow devolved Administrations to legislate for themselves, if they choose to. We will work closely with them. Officials meet them weekly to assist wherever we can, so that compensation can be delivered UK-wide; that is how the scheme operates.

I think the hon. Lady said that 80% of compensation was yet to be delivered. I may be wrong there, so I will check the record. Across all the schemes, in around two thirds of cases, full and final compensation has already been received. That being the case, about 2,000 people will be topped up to £75,000, as I announced earlier, but it is not right to say, as I think she did, that the majority of people are waiting for compensation.

The hon. Lady asked whether we wanted to deliver the compensation by the end of the year. Absolutely we do, but as I said, not everything is in our gift. We cannot compel a claimant to submit a claim, or know when that will happen. If somebody puts in a claim right towards the end of the year, for example, it may not be possible to deal with it before the end of the year. Not everything is in our gift, but we are keen to expedite anything that is.

It is absolutely critical that we have independent oversight; all schemes have it. In the overturned conviction scheme, we have retired High Court judge Sir Gary Hickinbottom, and the £600,000 fixed-sum award; but on Mr Hickinbottom’s advice, we have also introduced the £450,000 payment as soon as a full claim has been submitted. We are doing everything we can to make sure that people are compensated as quickly as possible.

Oral Answers to Questions

Rushanara Ali Excerpts

Thursday 7th March 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

The perfect storm of rising borrowing, rent and labour costs is continuing to cripple businesses, and the UK small business index fell 78 points last December, according to Xero Small Business Insights, to the lowest reading since the middle of the pandemic in August 2020. The Government have had 14 years to tackle the barriers facing SMEs. What specifically will the Small Business Council do, and what will Ministers do to halt the alarming trend of more businesses closing than opening?

[Kevin Hollinrake]

I am sorry that the shadow Minister is so pessimistic about the world of business. We have spoken at events together many times, and she hears the mood in those audiences, which is far more positive than she sets out. We are active in many areas, as she knows. At the event we both spoke at this week, I talked about access to finance, support and advice, and removing barriers. Access to finance has been key, with £1 billion of Start Up loans having been made to 100,000 businesses. If she listened to the Budget yesterday, she will have heard about the rise in the VAT threshold and the growth guarantee scheme. There are many opportunities for small businesses. We will have 200,000 more workers coming back into the workplace, tackling another barrier for businesses. Get with the programme; it is much more exciting than she thinks.

Post Office Board and Governance

Rushanara Ali Excerpts

Wednesday 28th February 2024 Commons Chamber

[Mr Speaker]

I call the shadow Minister.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

What we saw yesterday was unedifying and, at points, a fiasco. Sub-postmasters watching will have rightly been dismayed and will have felt that, if anything, they were moving further away from justice. The ongoing conflict at the top of the Post Office and the failure of the Government to get a grip is helping no one and is only further eroding trust in this process. The Secretary of State should reflect on how her approach to the news of recent weeks has only exacerbated that. We, and especially victims, have all had enough of the “He said, she said”. Does the Minister now recognise that the best way to end this is by fully clarifying what the Government have or have not said, through an independent Cabinet Office investigation?

May I also pick up on some very worrying evidence given yesterday by Carl Creswell, the director of business resilience in the Department for Business and Trade? When talking about the financial provisions set aside for Horizon compensation, he said:

“I personally think we will end up spending more money on compensation overall than that £1 billion figure, which was modelled at an earlier stage.”

That is incredibly serious. Does the Minister share that view held by one of his senior civil servants? If so, what conversations has he had with Government colleagues and will we see that reflected in next week’s Budget?

Will the Minister clarify whether he or the Secretary of State were aware that Nick Read was also under investigation, as was allegedly stated in the 80-page document referred to by Henry Staunton in yesterday’s Select Committee hearing? In response to me during an urgent question on 29 January, the Minister said that Henry Staunton’s sacking was not due to a falling out, but that it was

“about very serious governance issues related to the person who headed the board of the organisation, which are obviously confidential human resources issues.”—[Official Report, 29 January 2024; Vol. 744, c. 612.]

Will the Minister confirm whether he had sight of the confidential human resources report referred to in yesterday’s Select Committee hearing? If so, why was he selective in his update to the House?

Finally, it is very important to make sure that we restore trust, by urgently bringing forward legislation. I hope that, unlike yesterday’s unseemly events, our focus can return to making sure that we exonerate the sub-postmasters and deliver the recompense that they rightly deserve.

[Kevin Hollinrake]

When the hon. Lady says that I was “selective” about what I said, is she accusing me of being economical with the truth? If so, I would take exception to that. It would be absolutely wrong for anybody in this House to disclose information about an investigation that has not concluded and where the presumption of innocence must apply for the individuals concerned. If she thinks I should come to this House to talk about those kind of sensitive, confidential matters, she does not understand how the corporate world works.

[Rushanara Ali]

rose—

[Kevin Hollinrake]

I will not give way, as I am answering the hon. Lady’s question.

Draft Paternity Leave (Amendment) Regulations 2024

Rushanara Ali Excerpts

Tuesday 27th February 2024 General Committees

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Hosie. The birth of a child, and their early years, are crucial periods for the child and their development. They are special and very important for parents to be involved in. Parental leave is crucial to making this period a smoother, healthier and more beneficial time for parents and newborns alike. I welcome these reforms, which make parental leave more flexible and thereby open up the opportunity for increased parental involvement in the child’s first year. These changes are a step in the right direction, and we will not stand in the way of measures that facilitate greater take-up of important workers’ rights, particularly those that will help more women to return to work after having a child.

The current paternity leave system is too rigid: leave must be taken in one block of no more than two consecutive weeks within a period of eight weeks after the child’s birth and the employer must be notified 14 weeks beforehand. We will all be familiar with cases in our families and constituencies of how that can be a barrier to parents, particularly fathers and partners, who want to take that leave. It is limiting for them, and I am glad that these changes will go some way towards making improvements.

Although I welcome these changes, I still have concerns that this will not go far enough to meet the stated aims of the policy in the impact assessment, which is to allow

“more fathers/partners to play a greater role in caring for their children”.

It is a shame that this opportunity has not been used to reform the failed shared parental leave system. In October 2020, the Women’s Budget Group commission on a gender-equal economy noted:

“At the root of women’s disadvantage in the labour market is inequality in unpaid work…75% of mothers face pregnancy or maternity-related discrimination”

Along with many other campaign groups, it has reiterated the need for implementing equal parental and caring leave policies as a crucial step in addressing this.

If the Government are committed to encouraging fathers and partners to play a more active role in lessening the burden on mothers, doing this would no doubt have a greater impact. Take-up of shared parental leave is measured in two ways: as the proportion of eligible fathers who take a shared parental leave each year, or as the proportion of new mothers starting statutory paid maternity leave each year who used the shared parental leave scheme to transfer some of that paid leave to the child’s father. The second method is more meaningful because the size of the pool of eligible fathers is unknown. According to Maternity Action, in 2021 and 2022, only 2% of mothers used shared parental leave to transfer leave to a partner. That figure shows that shared parental leave is not reducing the domestic burden on women. It is not helping women to return to the workplace, and it continues to restrict the involvement of fathers and partners in this crucial time in their child’s life. The Government’s consultation on shared parental leave concluded that the system was found to be “too complicated” for many respondents to use and there was a lack of awareness about the available leave. Despite receiving that report, the Government stated:

“We are not proposing any changes to shared parental leave or unpaid parental leave at this time.”

Can the Minister explain why the Government refuse to take further action to reform shared parental leave?

Today’s changes in the policy area stem from the 2019 Conservative party manifesto, which committed to

“look at ways to make it easier for fathers to take paternity leave.”

It is only now, five years later and just before another general election, that that manifesto pledge is being looked at. The consultation took place in 2019 and the response was published in June 2023. I would be grateful if the Minister could explain why there was such a long delay, which has meant that we have not seen the benefits of the changes that could have happened sooner. The delays to this crucial legislation speak to a wider context in which the Government have not prioritised the importance of addressing workers’ rights.

The Minister has a great track record of being persistent on issues for which he has responsibility. I hope that he will speak to his colleagues to ensure that we continue to build on what has been announced and done today to address the wider issues affecting parental leave and the discrimination faced, particularly by women, and make the much-needed reforms to ensure that shared parental leave in practice derives the benefits that are desperately needed for parents.

Post Office Horizon: Compensation and Legislation

Rushanara Ali Excerpts

Monday 26th February 2024 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

May I thank the Minister for advance sight of his statement? The Horizon scandal has rightly left the public outraged by the scale and shocking details of the injustice that has been committed. The scandal is one of the greatest miscarriages of justice in British history. It has robbed innocent people of their livelihoods, their liberty and, sadly, in numerous cases, their lives. More than 20 years on, the victims and their families are still suffering the consequences of the trauma of all that they have been put through. Until recently, there has been little progress and delays at every turn, which has caused even further distress.

Victims and their families have been trapped in a nightmare for too long. We all want to see the exoneration of all the remaining convictions, and the delivery of rightful compensation to all those affected sub-postmasters as quickly as possible. On the Opposition Benches, the Labour party has made it clear that we want to see a swift and comprehensive resolution to this insidious injustice, and we are committed to working with the Government to ensure that happens.

I recognise the important work that the Minister has done, both on the Back Benches and in his current role. The unprecedented scale of the legal work being carried out will be possible only with cross-party working and cross-party support. I want to take the opportunity to thank the advisory board for its tireless work in supporting the Government in getting this right, as well as hon. Members on both sides of the House and in the other House.

I welcome the Minister’s commitment to progressing the legislation. Labour is committed to working with the Government to deliver rightful exonerations, but I know that many Members will have had questions following last Thursday’s written ministerial statement, so I welcome the Minister returning to the House. I have a series of questions to pose to him. First, in the light of what he has said today, what further details can we expect on the legislation being tabled? Will he further clarify why convictions prosecuted by the Department for Work and Pensions are excluded from the legislation and what steps he will take to get the Department to deliver exonerations as soon as possible?

The Minister’s proposals set a very difficult precedent, as he said, on the relationship between the legislature and the judiciary. Will he outline what conversations he has had with the Lord Chancellor about this matter and his views on it, which might alleviate some people’s continued concerns?

As the Minister mentioned, there are also issues around precedent that could be exploited in the future for less appropriate purposes. Although I appreciate the assurances that he has provided on that, it would be helpful to understand and get clarification on what specific safeguards will be put in place to avoid this becoming a precedent. The cross-party nature of this work is critical to ensure that happens. However, some people are asking whether he considers that this particular example could be relevant in the future for other worthy causes.

May I also ask the Minister about the pre-Horizon system, Capture? Will he confirm whether prosecutions were made using Capture data and whether any sub-postmasters lost money due to Capture failings? If so, will he commit to those convictions being in the scope of the legislation and compensation schemes?

[Kevin Hollinrake]

I thank the hon. Member for her collaborative comments. I am keen to work with her going forward, as we have every step of the way on this issue. I do not accept that we have made little progress. Let us be clear that 78% of all full claims that have been submitted have been settled—that is 2,700 claims that have been settled. Nor do I accept that there have been delays at every turn. That is not a correct characterisation of the situation.

With regard to our next steps, as I said, we expect the legislation to be tabled next month, which is as quickly as possible. I am working on this on very much a daily basis. On the differences between Post Office and CPS cases—those we are seeking to overturn with this legislation—and DWP cases, I think it is fair to say there was a different standard of evidence. Those DWP cases relied on evidence independent of Horizon such as the surveillance of suspects, collation and examination of cashed orders from stolen benefit books and girocheques, handwriting comparisons and witness statements. Those cases were very much not simply relying on Horizon evidence.

My engagement with the Lord Chancellor has been extensive, and our engagement with other stakeholders—including the hon. Member’s shadow Front-Bench colleagues—has also been extensive. We decided that was the right thing to do. Having said that, these are unprecedented steps. I think that again speaks to the fact that we are keen to make as much progress as possible, rather than as little.

The hon. Lady mentioned safeguards. The standard of evidence is critical to get to this point. It is fair to say that the trailblazing 555, who successfully took their case to the courts in the first place, set a high bar for anyone to emulate or replicate. We will be clear in the legislation that convictions will be overturned based on objective criteria, as another way to deal with this. That speaks to the hon. Lady’s last point on Capture, which I am very aware of and I have discussed with the right hon. Member for North Durham (Mr Jones) on several occasions, including immediately prior to this statement. We need to ensure that we have the right evidence base. I am happy to continue the dialogue on that, but it is important that we do not include cohorts where we do not have the evidence base, as we have for the cohorts that we have set out—where the CPS and the Post Office prosecuted cases. We are taking very serious measures to overturn the convictions. We should never resort to this kind of approach lightly.