Contingencies Fund (No. 2) Bill

Saqib Bhatti Excerpts

2nd reading
Thursday 11th March 2021 Commons Chamber

[Saqib Bhatti (Meriden) (Con) [V]]

I refer Members to my entry in the Register of Members’ Financial Interests. I also take note of your indication to limit our contributions, Mr Deputy Speaker. I could speak for hours on the Bill, but I will refrain from doing so.

I want to speak in favour of the Bill because, quite frankly, if there was ever a time when we needed a contingencies Bill it would be during a pandemic, and we are still in a pandemic. As the Financial Secretary said, for those members of the public who will be watching today, the Contingencies Fund Act 2020 enabled Government Departments to increase their percentage of spending at a time when the country needed it most. It was vital to make sure that the Government could act in a timely manner to safeguard the people of our country.

This is, of course, a contingency. It is not additional spending. It is there to ensure that Departments have access to funds if needed. If there is one takeaway from the past 12 months, it is that we should be prepared for every eventuality. It is appropriate that the percentage of the total supply expenditure is reduced to 12%, as opposed to the 50% it was last year. Of course, last year, when the previous Bill was passed, we knew we had a crisis, but it would have been near impossible to estimate the full cost of Departments’ needs at that time.

Today, we know more. We have a world-leading vaccination programme, which means we have vaccinated over 22 million people. We know that infection rates are falling and, thankfully, the Prime Minister has laid out a road map as to how the economy will open up. In the light of that, it is correct to reduce the contingency need while not yet returning to the normal 2%. We are, after all, not in normal times, so the normal 2% cannot apply. I would go further. This Bill, in my view, represents strong leadership, as the previous one did at the start of the pandemic.

We should not forget what the previous Bill allowed Government Departments to do. The urgent procurement of contracts allowed the Government to be swift in their response. It allowed us to deliver 32 billion items of personal protective equipment—32 billion, Mr Deputy Speaker—and 22,000 ventilators, when at the start of the pandemic there was an acute need. Those were quite literally matters of life and death. In such instances, the Government have but one duty: to take every possible measure to provide security and safety for their citizens. Since then, we have also completed 96 million tests. That is a phenomenal achievement and we should not downplay that.

As we look to the Bill, it is correct to think about how the resources will be applied until the supply and appropriation Bill is voted on in this House. The Chancellor last week set out a characteristically world-leading Budget, ensuring, to name just a few: the furlough scheme, which has been a lifeline for so many, continues until September; more money for apprenticeships and restart grants to get our worst-hit businesses back up and running; and the extension of universal credit. There are also infrastructure spends across the country, which are a testament to my right hon. Friend’s focus on the next stage of dealing with this pandemic. As we emerge from the public health crisis, we must look to the economic recovery stage.

Accountability and transparency matter, of course, and the Bill does not take away the usual mechanisms that have been in place for ensuring that expenditure is met through the contingency fund and that it is scrutinised. Advances made in this way are presented in the usual way in the estimates booklet and the memorandums that Parliament can scrutinise and vote on.

To hinder the Bill would in my view seriously hinder the Government’s response in dealing with the pandemic. It would risk undermining the measures by the Government to help those who need our urgent support. That is why I am supporting the Bill.

Contingencies Fund (No. 2) Bill

Saqib Bhatti Excerpts

Committee stage & Committee of the whole House
Thursday 11th March 2021 Commons Chamber

[Saqib Bhatti (Meriden) (Con) [V]]

I cannot support the Opposition’s new clause 1 because, in my view, it would do nothing but introduce an additional layer of bureaucracy where, frankly, sufficient and robust transparency and accountability systems are already in place.

As I said on Second Reading, of course accountability and transparency matter. The Bill does not take away the usual mechanisms already in place to ensure that expenditure met through the Contingencies Fund is scrutinised. Requiring private sector procurement to be referred to the National Audit Office would do exactly what businesses cry out against time and again when it comes to procurement practices. They want less bureaucracy and less burden, not more unnecessary red tape that would hinder engagement from the private sector.

To me, the new clause speaks to the intent of the Opposition and their general attitude to the private sector. It does not recognise the crucial role that business has played over the last 12 months in helping to tackle one of the greatest public health crises of our times. It does not recognise the businesses that otherwise would have been shut down—Formula 1 teams such as McLaren, for example—that adapted their processes to make ventilators; the companies, such as Burberry, that retooled to make personal protective equipment; or the companies, such as the National Exhibition Centre in my constituency, that gave up part of their business to build Nightingale hospitals to ensure that the national health service was not overwhelmed.

The new clause does not recognise, either, the big pharma companies that came up with new drugs at unprecedented rates, using innovative methods that only the private sector can come up with to vaccinate and protect the most vulnerable in our society. Frankly, it is time that the Opposition recognised the role that the private sector played in overcoming this crisis. While it is not yet done, we on the Government side of the House certainly will not forget that role.

While I am on the subject of intent, I commend the Government for their aspiration to reform procurement rules. The Green Paper put forward by the Government puts value for money and transparency right at the heart of the United Kingdom’s procurement rules. The Government buy around £292 billion-worth of services from the private sector. Their proposed reforms will allow UK procurement rules to be more modern and flexible, allowing the Government to consider things such as social value, including economic, social and environmental factors.

These new measures will also allow competition for Government contracts under £4.7 million for public works and £122,000 for goods and services to be limited to small businesses, whether they are voluntary, community or social enterprises. Fundamentally, that will improve the quality of suppliers’ output, and it will also increase competition, ensuring that taxpayers get a better deal while our small and medium-sized businesses have greater access to Government procurement contracts.

That intent can only be applauded, in contrast to the Opposition’s desire to make the process clunkier, more difficult and less accessible.

On accountability, as has been said, Ministers cannot choose to use the Contingencies Fund. That is managed entirely by Treasury officials, and the accounting officer must ensure that advances are given in line with strict rules agreed between Parliament, the National Audit Office, and the Treasury. Such rules can be found in the Estimates Manual. Finally, business is and can be a force for good. We would do well to recognise that.

[Sarah Owen (Luton North) (Lab)]

I rise to speak in favour of the amendment tabled by the Leader of the Opposition, which hopes to improve the transparency behind emergency spending that we are being asked to sign off. When the Conservative party took office 11 years ago, it promised people transparency and responsible spending. The Prime Minister’s predecessor even told us that sunlight was the best disinfectant—could we not do with some disinfectant to rid us of the stench of cronyism right now?

One hundred and eight million pounds to a pest control firm to make PPE; £60 million on antibody tests that did not work. To top it off, a £37 billion test and trace system that at times did not test and did not trace. It was run not by clinicians or the NHS, but by a failed phone company executive, who just so happened to be one of the Prime Minister’s mates from the other place.

Cronyism, irresponsible spending and sweetheart deals that handed the public’s taxes to their mates are what this Government are all about—a £133 million testing contract to a Tory donor, £108 million to Serco, and a £40,000 pay rise to Dominic Cummings. Under this Government, someone who breaks the rules and fails at their job gets a pay rise; those who save people’s lives get a pay cut. If the Conservative party cannot be trusted to spend people’s taxes wisely, it does not deserve to serve our country.

The Minister asked for questions, and I am sure we all look forward to some answers. Will he tell the House why as much as £11 million was spent on the initial trial version of the NHS Test and Trace app before it was abandoned? Will he confirm whether he personally played any part in recommending contractors to the Government over the past year? We are often told by the party of Government that money cannot be found to feed hungry schoolkids, or that the healthcare heroes who looked after our loved ones during the pandemic cannot have a pay rise. We are told by Conservative peers that nurses should be grateful for the job security they have.

The public have a right to know how their money is being spent. Covid contracts handed out to Tory friends and donors have now risen to almost £2 billion. Such money could have provided free school meals to each of the 1.4 million children in poverty, including nearly 4,000 children in Luton North. If there is money for the Prime Minister’s mates, there is money to feed hungry kids. If we can find £30 million for the bloke down the pub, we can find money to give nurses, and every other healthcare worker, a pay increase.

Conservative Members will say there was no choice at the start of the crisis and that it was an emergency, as it was. However, there is always a choice. Instead of turning to established PPE providers from the UK safety industry, Ministers chose a deal that handed £30 million to the Health and Social Care Secretary’s mate from down the pub. That is a cruel and blatant failure by this Government. The Bill asks us to sign off up to £266 billion in emergency loans by the Government. That might be necessary, but it is unnecessary for such a number to go unchecked.

It is our job as MPs across the House to hold the Government to account. The public expect better and for us to spend their money properly, which is why Labour has tabled this amendment. We are not saying that the Government should not do everything in their power to help people in an emergency; we are saying that they must never forget whose money they are spending, and who they need to answer to in the end: the British people.