Rural Depopulation
Valerie Vaz Excerpts(3 months, 2 weeks ago)
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Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
I beg to move,
That this House has considered depopulation in rural areas.
Tapadh leibh, Ms Vaz; thank you. It is an honour to have you in the Chair. I thank all colleagues for their attendance and support in what I am sure will be an illuminating 90-minute debate. Staging your first Westminster Hall debate is a bit like throwing a birthday party and wondering whether anyone will turn up—at least we know there is not a depopulation crisis in Westminster. I also thank the Minister for taking this debate. It may not seem obvious at first what the demographics of the Western Isles have to do with the Home Office, but if she bears with me, I will explain and expand on why this issue, which now affects the periphery of the UK, influences the entire economy and should inform the decisions that we make at national level on immigration.
First, let me give some context. In Na h-Eileanan an Iar, the Western Isles, we are in the middle of a depopulation crisis, and I am here to sound that alarm. We are painfully aware of what is a rapidly changing population. An older, strongly Gaelic-speaking demographic is passing on, and we see the rapid out-migration of younger, economically active families. They sometimes face insurmountable challenges: being priced out of housing and facing failing transport connections, stuttering health provision and childcare and a host of other issues, which weigh heavily in the scales of deciding whether to stay or go. And while we sound the warnings at home, the lights should be flashing on the dashboard in this place, too, and in offices across Whitehall. That is why I am staging this debate—to highlight the fact that we are simply running out of people to take up key public sector and private sector posts to keep our islands going. That affects the viability of vital services and it ill serves the local economy and the national one, too.
Just to give some further context, the estimated population of the Western Isles is 26,200. That represents a 5.5% decrease since the 2011 census and the highest percentage decrease in Scotland. According to estimates from the Western Isles health board, which has an obvious interest in this issue from a staffing and care point of view, the working-age population of the islands is set to decrease by 6% by 2028, while the over-75 population with the highest levels of comorbidity—people who have more than one illness—is set to rise by 25%. The situation is frightening. According to the board, these population changes will result in a year-on-year reduction in the available workforce—nurses and care staff—to attend the most important, most vulnerable people, and ultimately undermine the ability to sustain services.
I say we have to address this with local responses, Scottish responses and action at UK level to prevent the situation from entering that downward spiral. We know that an ageing-population pattern is part of a Europe-wide trend, and somehow we kid ourselves that this is an over-the-horizon event that we will deal with later, but for us in the islands, it is an urgent reality, and our breakfast will become everyone else’s lunch; if we do not address these issues on the edge of Europe, they will become structural problems for the rest of the country and the rest of the continent.
More than worrying about an ageing population, I worry about the exodus of a working population, particularly the female population. Since 2007, the number of women aged between 25 and 44 on the islands has dropped by 15%, from 3,289 down to 2,787. There are many reasons for that rapid decline but, for most parents, they can be encapsulated in one word—childcare. Of course that is a challenge for parents everywhere, but the lack of a working-age population, as well as the burdensome regulation, has strangled childcare in the islands. I am sure that is the experience of colleagues across the board. Working parents and primarily working mothers, of course, find it hard to return to work—to balance childcare and careers—and despite the many strong family connections and networks they have on the islands, ultimately they give up in frustration, and ultimately they speak to me, as they spoke to me during the election campaign, about giving up and moving to the mainland. And when we lose families, we lose the working-age population.
During the successful election campaign, I was joined by the then shadow Business Secretary, now the Secretary of State for Business and Trade, on a visit around some of the key ports in Stornoway. We went to a shellfish export company that was successful, with a £4 million turnover and rising, which was a great investment by the port and the parent company in the local fishing fleet. But the actual processing of the product in the chill of the packing room could not operate were it not for the Ukraine war. Most of the staff that packed the products were refugees from that conflict. They are a welcome and valuable addition to the workforce and the islands, but we cannot have our economic growth dependent on a conflict on the other side of Europe.
At a seafood processor on another island, a £3 million business at the end of a single-track road, there were sustainable stocks and work for perhaps 30 employees, but only 15 workers were available because there are simply no workers to be found locally. This was an operation that, pre-Brexit, had a large and well-integrated European workforce. Now it cannot find a local workforce, and the regulatory and bureaucratic challenge of sourcing staff is almost overwhelming.
In the fishing industry offshore, the present immigration requirements as I understand them require staff employed under the sponsored visa scheme to pass stage 4 English language tests. That is quite a high academic bar for an industry that seeks crewmen who are primarily experienced in working in noisy and challenging conditions where hand signals are often as useful as linguistic ones.
Torcuil Crichton
I agree entirely with the right hon. Member. The language requirement is just one aspect of the present visa system that is unsuitable for our fishing industry, the islands, and rural economies, and which we have until now been unable to navigate around. Hopefully it will undergo a fresh review under a new Home Office team.
The new Home Office team and immigration policy are rightly the reserve of the UK Government. I do not seek to break up control of the system. I stood on a platform of a properly managed, points-based immigration system that links up the needs of the workforce, the economy and the country. But I counter the narrative, which this summer was in danger of becoming the prevailing one, that the country is somehow “full up”. There are parts of the UK and Scotland where we are crying out for skilled workers to come and be part of our workforce, and to then stay and become part of our communities.
Scotland has specific needs for our skills base, and the islands and rural areas of Scotland and the UK have some very specific asks of their own. The lesson of policy in almost every area—not just immigration—be it administered from here or Holyrood, is that one size does not fit all. What works at a UK level may need more flexibility at a Scottish level, and again at a rural and island level.
In the past, the UK Government in other guises have worked with the Scottish Government to show flexibility. The former First Minister Jack McConnell, now Baron McConnell of Glenscorrodale, promoted the fresh talent initiative for post-study work visas for overseas students at Scottish universities, enabling them to stay on for a period. There is, and should be, interest in reviving that plan, and the idea of rural visa projects, which was advanced by the Scottish Government with the Migration Advisory Committee before the previous UK Government stamped on the idea.
There are many levers of Government that are not at the hand of the Minister, but that bear mentioning because they are part of local and Scottish solutions to rural depopulation. In the islands, we are lucky to have a system of crofting tenure, a uniquely Scottish system which has kept generations in their home community, but crofting has been hollowed out by political forces that neither understand nor value its work. Crofting tenure, properly regulated, should be a defence against the property market, but instead it has become an enabler. The sale of croft tenancies at inflated rates has become a critical factor in the housing shortage.
Crofting needs urgent reform. I commend the Shucksmith report, “The Future of Crofting”, now more than a decade old but an excellent piece of work, which sought to rebalance—or restore the balance—between crofters’ right to security of tenure and their responsibilities to keep the market at bay. It should be dusted down and re-enacted, but that is probably a subject for another debate and another place.
The lack of affordable housing, however, is an issue that many other Members here and elsewhere will recognise. I hope that it will be taken up by other speakers in the debate. In many of our areas, it is impossible for anyone with modest means to secure a house, which is a pretty basic precondition for retaining a working-age population and keeping the economy spinning.
We therefore need action on housing and on crofting regulation; we need access to land; and we need access and action on depopulation. As I said, the dashboard lights are flashing. More than anything we need focus. We need economic focus on the peripheries of the north and west of Scotland, those areas of continued depopulation. We need economic incentives, state aid, perhaps a reduction in VAT on construction, and enhanced capital allowances. I do not want the Minister to worry too much about those issues, because they are for the Treasury and other Departments, and I will take them up with them.
My time is running out, and I do not want to end on a note of despondency. There is hope. There is hope in community ownership of the many crofting estates in the Western Isles, a quiet revolution that has injected not just a new wave of development, but a growing sense of confidence and assurance that, given the tools, we can tackle the issues for ourselves. There is the vast opportunity of community ownership of, and a community share in, the wealth of wind in onshore and offshore developments, which are due offers. That change is so tantalisingly close and could be so transformative in terms of finance and confidence that it cannot be ignored as part of the UK Government’s GB Energy strategy.
There is also hope in individuals, families and communities and their resilience, which make the islands not just a great place to visit, but a precious place to stay. There are examples of local initiatives like the Uist repopulation zone, which has provided training opportunities and much-hallowed childcare provision to parents. It is led by Comhairle nan Eilean Siar and has received £60,000 from the Scottish Government. I commend the work of that project and of many other individuals and communities who focus themselves on the issue of depopulation at a local level.
As I said, we have a sense of urgency about this in the islands: we are experiencing a depopulation crisis. I hope now that that can find an echo not just in the contributions to this debate, but in the UK Government’s awareness and response to the issue.
Valerie Vaz (in the Chair)
I expect to call the Lib Dem opposition spokesperson at 3.28 pm.
Several hon. Members rose—
Valerie Vaz (in the Chair)
Order. We will start the wind-up speeches at 3.28 pm and we have three more speakers, so hon. Members can do the maths.
Ben Lake (Ceredigion Preseli) (PC)
Thank you, Ms Vaz, for the unexpected pleasure of contributing to this important debate; I congratulate the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton) on bringing it to this Chamber. I thought I would offer a Welsh perspective, to ensure that all the nations of these islands are spoken about in this debate, although I fear that much of what we have heard rings true in Wales, too.
I represent Ceredigion Preseli. At the last census, Ceredigion—the majority of my constituency—recorded a 5.9% decrease in its overall population, and the communities in Preseli or Pembrokeshire that I now represent saw their population flatline. This is a problem that we are very much living with today. What does it mean? In practice, it means that we are having very difficult discussions about, for example, the provision of public services and whether the school estate is sustainable for the future. We are talking about the lack of GPs and the fact that we do not have an NHS dentist any more in much of the constituency. The hon. Member for Strangford (Jim Shannon) mentioned bank closures. I shall not name them now, but there are three well-known banks in the UK that no longer have a single branch in the two counties that I represent. This is the real consequence of depopulation.
I very much align myself with the comments made by all colleagues on what needs to happen to try to reverse this trend. However, I will add that a Labour predecessor of mine in what was then the constituency of Cardiganshire, the great—and sadly late—Baron Elystan-Morgan, talked in his maiden speech about how the outmigration of young people sapped the vitality of rural communities. He was speaking in the 1960s, but I fear that that is as true today as it was then. As well as sapping the vitality from private enterprise and having a detrimental impact on the provision of staff for key public services, this outmigration is also sapping and undermining the viability of our rural communities.
This is something that the UK Government can help with, and it should be on their radar. When the Cabinet Office looks at the range of risks it must monitor as part of its remit—something that the Public Accounts Committee discussed in the previous Parliament—it should look at how the discrepancies in demographic trends across these islands might have an impact on key public services, because in certain areas of rural Wales we will, I am afraid, see a collapse of public services. That will have a knock-on impact on more urban areas, which are themselves struggling with different demographic pressures.
This is an important debate, and I would ask the Home Office Minister to consider, as part of her important work in this new Parliament, the lessons to be drawn from experiences across the world. My hon. Friend the Member for Perth and Kinross-shire (Pete Wishart) mentioned the experience of Quebec. As west Walians, we often turn on the radio to hear adverts from the Government of Western Australia trying to attract many of our young doctors and nurses to migrate to that part of the world. Are there incentives we could use to persuade more of our young people to stay or to attract those from other parts of the world? There are many benefits to rural living, as all hon. Members have outlined today. Perhaps we could be more creative in grasping this problem by the scruff of the neck, because I fear we do not have much time left to deal with it.
Financial Fraud and Economic Crime
Valerie Vaz Excerpts(3 months, 2 weeks ago)
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Mr Luke Charters (York Outer) (Lab)
I beg to move,
That this House has considered the impact of financial fraud and economic crime.
It is an honour to serve with you in the Chair, Ms Vaz. I thank the House for allowing me to secure this debate. I also welcome the Minister to their place, and I thank the shadow Minister, the hon. Member for Hamble Valley (Paul Holmes), and the Liberal Democrat spokesperson, the hon. Member for Dorking and Horley (Chris Coghlan), for attending.
I must start by declaring an interest. In my previous role before entering this place, I was head of fraud and compliance for a fintech firm, responsible for screening billions of dollars of transactions a year. When it comes to dealing with financial criminals, unfortunately I have seen it all. From the use of artificial intelligence—
Valerie Vaz (in the Chair)
Order. Apparently, there is an acoustic problem for everybody sitting in the front row. Could the hon. Gentleman move to the back as the mics are not working?
Valerie Vaz (in the Chair)
I am really sorry, but Hansard may not have picked up the earlier part of your speech, so could I ask you to start again, please? Thank you very much. You are doing a grand job for your first attempt.
Mr Charters
With apologies to right hon. and hon. Members who will be hearing the same thing, I will start again.
It is an honour to serve with you in the Chair, Ms Vaz. I thank the House for allowing me to secure this debate. I also welcome the Minister, and I thank the shadow Minister, the hon. Member for Hamble Valley, and the Liberal Democrat spokesperson, the hon. Member for Dorking and Horley, for attending.
I start by declaring an interest. In my previous role before entering this place, I was head of fraud and compliance for a fintech firm, responsible for screening billions of dollars of transactions a year. When it comes to dealing with financial criminals, unfortunately I have seen it all. From the use of artificial intelligence avatars to bypass biometric screening, to sophisticated shell companies and complex layering, to spearfishing and parasitically targeting legitimate companies to advanced cloning techniques, I cannot overemphasise the danger that fraud and financial crime now pose or the complex layers that exist behind it.
Fraud places an emotional burden on victims. It ruins lives. We all know that as MPs from our surgeries. I will touch on a case that I heard about recently. The criminal aspect of fraud is not just about hobbyists in basements; we are increasingly talking about nation states who in some cases are working alongside advanced organised crime groups that are taking the mantle. They are often experienced professionals who work to circumvent the systems we use. Criminals are smart and frequently shift their modus operandi to get around our systems.
Although the responsibility to be smarter and take that proverbial step ahead falls to Government and firms, the situation is more complex than that. The risks are real, and if scams continue to increase exponentially we will have a dangerous environment for businesses. We will have more constituents telling more stories about how they have fallen victim to fraud, and the national cost could become so undesirable that we may well become the worst developed country globally per capita when it comes to fraud rates. If we do not act, there is a risk that fraud and economic crime could suffocate growth.
We currently suffer from relatively weak national co-ordination in tackling fraud and economic crime, which is made more complex by the fact that the perpetrator is often not in the same geographical location as the victim. This can cause local police forces to deprioritise fraud reports, but if we can fix that, we may be able to fix the foundations. Although the online fraud charter introduced by the last Government was a positive step, it is non-statutory and voluntary. Nothing in the charter addresses the issue of compensating consumers who have been defrauded by content originating online. There are no penalties for non-compliance, and that must be thought through, but we can turn the page.
While this Government are in their early stages, I believe it is time to smell the coffee and grasp the nettle —whichever analogy hon. Members prefer—so that we can become a world leader in anti-fraud and protecting consumers and businesses, and become a country where companies want to do business and will not be ripped off. The prize is that our fintech, regtech and financial services sector will want to become ever more internationally competitive if we truly get to the heart of fraud and economic crime.
Before I go any further on how we can make some fixes, I will quantify the challenges that we face. Fraud accounts for more than 40% of crime in the UK but receives only 1% of police resources. That statistic is chilling, but wait until we hear the cost of payments fraud to the UK economy: it is roughly £1.2 billion. There is also a cost to individuals. I have a constituent who attended an advice surgery just this weekend and told me that they had lost life savings, to the tune of a five-figure sum. Fraud often hurts the most vulnerable, either those on low incomes or those with lower tech proficiency, who are also more likely to fall victim.
However, more than three quarters of authorised push payment fraud originates online. Research from Innovate Finance on fintech illustrates the challenge posed by online purchase scams. It found that Facebook Marketplace represented a staggering 51% of all fraud cases for the firm in question. After I secured this debate, a main UK bank got in touch with me outlining similar statistics in which a huge part of the fraud that it encountered originated from Facebook Marketplace, so we must get better at stopping fraud at the source. There are some positives to consider: tackling payment fraud could contribute £6 billion to the UK’s GDP over five years, which would really strengthen our economy.
A smorgasbord of issues are causing our downfall, so I will outline seven positive steps to begin to tackle fraud and economic crime. They come from meetings that I have had with trade bodies, consumer groups, banks and payment providers and from many industry reports. We can become a world leader in anti-fraud and economic crime. Little investment is needed from the Government, but a new regulatory apparatus and new levels of co-ordination are needed. I stand as a firm friend to the Minister and the Government in making that change happen, so I will outline some positive suggestions for tackling fraud.
Recommendation 1 is that the new Government should set an anti-fraud target. In June 2023, the previous Government published their fraud strategy, saying that they would cut fraud by 10% on 2019 levels by December 2024. They achieved that, but the target was not ambitious enough and, importantly, excluded businesses, so the Government should commit to a fraud target that is genuinely ambitious and do so in collaboration with business. I do not want to pick an arbitrary number, because it is about focusing on action rather than aims, so one option is to set a target that we should have a lower fraud rate per capita than international peers—for example, an ambitious target that the per capita rate of fraud should be lower in the UK in five years’ time than that in France, Germany and other countries.
Recommendation 2 is for the creation of a new national anti-fraud centre. We need a strong new anti-fraud centre to face the complex interdisciplinary challenges that fraud poses. Action Fraud has skilled individuals, but regrettably it is no longer fit for purpose. That is my view, and often the view of industry. We need to reform it, and that means a review of its shortfalls, as well as the ways in which we can build on some of its successes in receiving reports. During my career, I came across a case in which a UK business was scammed out of more than £200,000. It submitted dozens of pages of detail to Action Fraud, and did not even get a call back from the police.
We should look to Australia and create a national anti-fraud centre to drive forward the Government’s fraud strategy with a clear vision and clear accountability. It could be part of the Serious Fraud Office or the National Crime Agency, or it could be its own entity, but it should be able to bring charges. The Australian Labour Government launched a cutting-edge national anti-scam centre in 2023. They rightly recognised the scale of the challenge, and took it on directly. The first action was to tackle investment scams, before disrupting criminal gangs who were advertising non-existent jobs. It is time to refresh the ecosystem that will fight fraud for decades to come, with a strong new national anti-fraud centre at the heart of Government. That would join up the SFO, the Financial Conduct Authority, Action Fraud, the NCA, the Met police, the National Fraud Intelligence Bureau and local police forces, and it would do that with a central leadership, because our institutions are currently too fragmented to properly deal with fraud.
Recommendation 3 is that this Government should replicate the previous Government’s appointment of an anti-fraud champion in Parliament. The appointment of an anti-fraud champion would ensure better co-ordination across Departments and could be a precursor to a new national anti-fraud centre.
Recommendation 4 is that we should support data sharing between sectors. We have to create a framework to enable data sharing between social media companies and payment participants. If information can be shared between the two, there is an opportunity to stop transactions at the source. Because of GDPR, there is no clear mechanism for data collaboration, but if we can find a way to create a precedent, that would provide regulatory certainty.
Recommendation 5 is to create a new framework that requires banks to share payment data. If we are to make progress, we need to find a way for banks to work collaboratively on payment data sharing. I regularly meet banks and industry leaders who are receptive to that recommendation.
Mr Charters
It is brilliant to have Members such as my hon. Friend, with his experience at Pay.UK, in this place, and I completely agree about the renewal of the payments architecture. If it had risk analysis and artificial intelligence monitoring at its heart, we could detect payments fraud at the very centre, which could save banks billions of pounds in compensation and be a better result for consumers.
Industry innovations such as “money mule insights” prove that the latest data analytics allow for much more sophisticated ways of targeting of criminals via data sharing between payment providers. Lloyds Bank got in touch with me this week to highlight that its mule-hunting team had identified a 44% increase in money mules over the past year. Data sharing between banks is critical in targeting money mules. At present, banks file suspicious activity reports, but they are often unable to share suspicious payment transaction data with each other. If they did, there would be an opportunity to harness suspicious payment data to detect and block fraudulent and criminal transactions in real time. I now believe that we have an unmatched opportunity to rebuild fraud and economic crime analysis with the renewal of faster payments and a new payments architecture. In conclusion on this recommendation, much greater payments data sharing is crucial if we want to stop fraudulent transactions from being processed.
Let me turn to recommendation 6, on the obligations on social media companies. The Government could introduce a shared responsibility and liability for social media and telecommunications firms to tackle fraud origination and incentivise them to invest to prevent fraud. A new anti-fraud centre could govern regulatory powers over social media companies and impose penalties or issue guidance to reduce fraud. That would tackle the things we heard about earlier, such as fraud originating from Facebook Marketplace.
I turn to my final recommendation: to expand the Financial Conduct Authority’s powers over the Post Office, which is the biggest cash provider in the country, through its everyday banking service, and has always played an integral role in providing access to cash for the nation. That should continue. As banks close their branches, the importance of the Post Office is growing. However, following the Horizon scandal, its reputation has been damaged. The Horizon system is still fundamentally being used today for the everyday banking service, which processes billions in cash deposits and withdrawals each and every month. To give banks and consumers confidence in the Post Office, the FCA should gain direct regulatory oversight of the everyday banking service. That is critical for resilience and managing financial crime risks. I can confirm that I am in the process of writing to the FCA’s CEO to encourage them to provide an update on their work on money laundering via the Post Office.
In conclusion, those are seven recommendations that I would like to implement. I think they would have a huge impact on our ability to better target fraud and economic crime. I will write to the Government outlining the recommendations, which are the culmination of meetings across industry, and I stand willing to work closely with them on implementing them, should they be interested in doing so. I look forward to hearing from colleagues across the House in the debate and to working constructively with Government and other hon. Members to tackle fraud. It is crucial we do that for financial credibility, for our constituents and for our country.
Valerie Vaz (in the Chair)
I thank the hon. Member for his assistance. I expect to take the first of the Opposition spokespersons at 5.08 pm. They will have five minutes each and the Minister will have 10 minutes. If hon. Members wish to speak, they should bob.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
I commend my hon. Friend the Member for York Outer (Mr Charters) for securing this important debate and for shining a light on an issue that has been neglected for far too long.
A growing concern facing my constituents in Wolverhampton North East is the rise of fraud, particularly scams perpetrated from overseas. We often hear calls for more arrests and prosecutions of the criminals, and I fully support that. However, we also need to acknowledge that a significant and increasing number of these fraudsters are not operating from within the UK. Instead they are part of international fraud rings based in hotspots such as India, the Philippines, South Africa, Brazil and parts of eastern Europe.
With advanced technology we have machines capable of making thousands of calls or sending thousands of texts per minute. The criminals can easily target people here in Britain. Our country unfortunately is a prime target for such activity. We do much of our shopping and banking online, and the widespread use of the English language makes it easier for fraudsters abroad to deceive and manipulate their victims here.
The real question is what we do about this. I suggest that when we negotiate trade deals with countries where such criminal activity is prominent, we push for stronger co-operation in fighting fraud. Let us make fraud prevention part of the agreements, giving the countries a real incentive to work with us to tackle the issue. Without such action, fraud will continue to grow, impacting more and more families in places like Wolverhampton North East. It is time we took strong, global, co-ordinated action to protect our residents from the scourge of international fraud.
Chris Coghlan
I thank the hon. Gentleman for his intervention and I agree that there should be more emphasis on that area. I also thought that the hon. Member for York Outer made a really interesting point about the lack of FCA regulation of the Post Office, and I agree that that appears to be a gap in our existing regulatory framework.
We heard some really moving personal accounts about the cost of these online scams in the speech made by the hon. Member for Southend West and Leigh (David Burton-Sampson). We are also calling for the naming and shaming of the banks that have the worst records on preventing fraud and reimbursing victims. They should be held accountable. Financial institutions have a duty to protect their customers and we need to call them out when they do not.
The hon. Member for Strangford (Jim Shannon) talked about the power of social media scams, and we are also calling for a public awareness campaign. We need to empower everyone to spot, avoid and report fraud and scams. But let me be clear: the onus should not be on individuals to prevent fraud. Victims should never be blamed for falling prey to sophisticated scams. This issue is about building a society that protects citizens and not one that burdens them with responsibilities that should lie with institutions.
As we have heard, the numbers involved are staggering, both in terms of the billions of pounds that have been lost to fraud and the sheer volume of crime that is now online. Despite those facts, however, the previous Government’s response was lacklustre. I was moved by the hon. Member for York Outer’s point that 40% of crime is fraud, including online fraud, yet only 1% of police resources is dedicated to tackling fraud. The previous Government treated fraud with such little seriousness that they did not include it in crime statistics. Will the Minister commit to including fraud in crime statistics to demonstrate the new Government’s seriousness about this issue?
The Government must also recognise that economic crime poses a significant threat to our democracy. For too long, the previous Government allowed oligarchs to treat the UK as their personal playground, so that they could funnel dirty money into our economy and undermine our values. The Liberal Democrats are calling on the Government to begin seizing frozen Russian assets and to use the proceeds to support Ukraine; to close loopholes in economic crime legislation, which allow associates of authoritarian regimes, such as Putin’s cronies, to funnel corrupt funds into our country; and to properly resource the NCA to ensure that it has the tools to tackle complex financial crimes. We are also calling for an audit of UK-based assets owned by officials from countries with troubling human rights records, such as China and Iran, to ensure that we are not enabling regimes that abuse their own citizens.
As a former counter-terrorism officer, I know how important cross-border co-operation is. The hon. Member for Wolverhampton North East (Mrs Brackenridge) really brought out the importance of such co-operation when she made the point that the people conducting these scams are not necessarily all in the same geographical location.
I also know the damage that Brexit caused to our cross-border co-operation on serious and online crime. Will the Minister commit to improving co-operation with our European allies and with other countries more widely on financial fraud and economic crime?
I look forward to hearing the Minister’s response to the debate. It was a pleasure to serve with you in the Chair for this debate, Ms Vaz, and I again thank the hon. Member for York Outer for securing it.
Valerie Vaz (in the Chair)
I call the shadow Minister, who was appointed this morning, to speak.
Mr Charters
Thank you for chairing the debate, Ms Vaz. I am delighted that the House has been able to consider today’s motion. It is a matter of real importance and one that it is clear the Government will take seriously. I am grateful to the Minister for attending the debate, and to the shadow Minister and the Lib Dem Front Bencher for engaging, too. I am grateful to the Minister for considering my seven recommendations. The Members who have contributed are powerful advocates for their constituents. Many have experienced constituents coming to their surgeries and sharing harrowing stories of being scammed. I hope to work with some of the Members present on these issues over the months and years ahead.
I outlined in my maiden speech that under this Government there should be
“no safe harbour for fraudsters, no compromise in our pursuit of their schemes and”
—importantly—
“no escape from justice.”—[Official Report, 17 July 2024; Vol. 752, c. 124.]
More than that, I am encouraged by the Minister’s words and know that this Government take fraud seriously. By the end of this Parliament, I hope we can look back and see that we have made huge steps forward. We can become a world leader in tackling fraud once and for all.
Valerie Vaz (in the Chair)
I thank the audio technician for sorting the problem out earlier.
Question put and agreed to.
Resolved,
That this House has considered the impact of financial fraud and economic crime.