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I am glad that the British Government are taking the lead in combating international financial fraud and money laundering, particularly now that cryptocurrency and its problems are so much in our minds. I note that one of the Government’s priorities as president is improving information sharing. The British Government are responsible for a large number of Crown dependencies and overseas territories, many of which are offshore financial centres. They do not share information fully, and I note that the British Virgin Islands, for example, are on the FATF’s grey list, which deals with countries with strategic deficiencies in efforts to prevent fraud
and money laundering. What do the Government intend to do to make sure that our leadership against financial fraud includes making sure that our overseas territories and Crown dependencies are up to the mark?
I am glad that the British Government are taking the lead in combating international financial fraud and money laundering, particularly now that cryptocurrency and its problems are so much in our minds. I note that one of the Government’s priorities as president is improving information sharing. The British Government are responsible for a large number of Crown dependencies and overseas territories, many of which are offshore financial centres. They do not share information fully, and I note that the British Virgin Islands, for example, are on the FATF’s grey list, which deals with countries with strategic deficiencies in efforts to prevent fraud
and money laundering. What do the Government intend to do to make sure that our leadership against financial fraud includes making sure that our overseas territories and Crown dependencies are up to the mark?
The noble Lord raises an important point. The overseas territories and Crown dependencies are committed to meeting international standards on tax transparency, anti-money laundering and illicit finance. They have committed to introducing publicly accessible registers of beneficial ownership, going beyond international standards set by the Financial Action Task Force and putting them ahead of most jurisdictions. The UK Government respect their constitutional autonomy on domestic tax matters while supporting the implementation of these commitments, including through technical assistance and engagement with organisations such as Open Ownership. The overseas territories and Crown dependencies are also independent members of FATF and therefore are subject to those standards that are set out. They have committed to combating financial crime in their relevant jurisdictions.
To ask His Majesty’s Government what progress in combatting international financial fraud they hope to make during their two-year presidency of the Financial Action Task Force.
To ask His Majesty’s Government what progress in combatting international financial fraud they hope to make during their two-year presidency of the Financial Action Task Force.
My Lords, the UK assumed the presidency of the Financial Action Task Force in July and has made tackling fraud its key priority. Under UK leadership, FATF is developing practical steps to help countries prevent, detect and disrupt fraud, particularly scams linked to organised crime groups operating across borders. This work will also focus on strengthening co-operation between Governments, law enforcement, banks, technology companies and online platforms.
Lords motion to take note of the threats to democratic institutions in the United Kingdom, including disinformation, foreign interference, and levels of public trust in politics. Agreed to on question.
Lords motion to take note of the threats to democratic institutions in the United Kingdom, including disinformation, foreign interference, and levels of public trust in politics. Agreed to on question.
My Lords, on Thursday, this House will be discussing threats to democracy. We are close to the point now where one has to see X— and Elon Musk—as something of a threat to British democracy, deliberately putting out misinformation, using algorithms to promote the most anti-democratic candidate in the Makerfield by-election, and so on. Do the Government not need to look at much tighter regulation on X and other social media which are actively attempting to bias the way in which people in Britain understand our democratic life?
My Lords, on Thursday, this House will be discussing threats to democracy. We are close to the point now where one has to see X— and Elon Musk—as something of a threat to British democracy, deliberately putting out misinformation, using algorithms to promote the most anti-democratic candidate in the Makerfield by-election, and so on. Do the Government not need to look at much tighter regulation on X and other social media which are actively attempting to bias the way in which people in Britain understand our democratic life?
The noble Lord is absolutely right. Everything that every Member of your Lordships’ House does every day is to promote British values and ensure that they are protected. That is why we have the Defending Democracy Taskforce and why we have just had the Rycroft review; it is also why, in the most recent by-election, the Joint Election Security Preparedness Unit was set up to try to tackle some of these issues. Although I am a huge advocate of freedom of expression—I ran Index on Censorship until the general election—it is about making sure that, within the prism of freedom of speech, we are protecting the values that we hold most dear. That is why we have given powers to Ofcom; obviously, we will continue to review those powers, and, if they do not work, we will need to do more.
My Lords, as someone who has spent most of my life living in the north of England, I strongly agree with the Minister that we need very considerably to improve the capacity of railway lines to the whole of the north of England, north-west Yorkshire and the north-east. That clearly justifies completing the line, to Yorkshire as well as Manchester. The Minister has explained that the circumstance in which these consultants were brought in was entirely exceptional. May I tempt him, however, to talk about the Government’s use of consultants, which has expanded over the last 15 years? Does there
not come a point, in dealing with outsourcing contractors and public procurement, when the Government should be insourcing some its capacity to examine what outside contractors provide, and not so often outsource it to consultants, who charge a good deal more than civil servants do?
My Lords, as someone who has spent most of my life living in the north of England, I strongly agree with the Minister that we need very considerably to improve the capacity of railway lines to the whole of the north of England, north-west Yorkshire and the north-east. That clearly justifies completing the line, to Yorkshire as well as Manchester. The Minister has explained that the circumstance in which these consultants were brought in was entirely exceptional. May I tempt him, however, to talk about the Government’s use of consultants, which has expanded over the last 15 years? Does there
not come a point, in dealing with outsourcing contractors and public procurement, when the Government should be insourcing some its capacity to examine what outside contractors provide, and not so often outsource it to consultants, who charge a good deal more than civil servants do?
I certainly thank the noble Lord for his clarity about the purpose of HS2. I am not the best person to stand here and talk about consultancy expenditure in government in general, but I sympathise with him about getting long-term work done, because the cheapest way of getting it done is to get people to do it on an employment basis. However, if we look at what has had to be done by Mark Wild, under the supervision of Mike Brown and the new board, we see that a company that does not know how it spent its own money and what work was done for it, in circumstances where there are currently cost-plus contracts, is in need of serious help. That serious help, frankly, can be established in the short term only with the use of consultants.
My Lords, the report that the noble Lord, Lord Pack, referred to was by a French government agency about the apparent operations of an Israeli company in exerting influence over campaigns in France, Britain and a number of African countries. The report mentions co-operation between the French government agency and the Swedish, British and Dutch Governments, as well as others. But would it not have been appropriate to alert our own population to what was going on? Now that we know that we have this sort of foreign influence through social media, coming from a number of different countries—not just from state actors but from private actors, such as the Israeli company and private actors in the United States, which exert considerable influence—should the British Government not have reported to their own public to tell us what was going on?
My Lords, the report that the noble Lord, Lord Pack, referred to was by a French government agency about the apparent operations of an Israeli company in exerting influence over campaigns in France, Britain and a number of African countries. The report mentions co-operation between the French government agency and the Swedish, British and Dutch Governments, as well as others. But would it not have been appropriate to alert our own population to what was going on? Now that we know that we have this sort of foreign influence through social media, coming from a number of different countries—not just from state actors but from private actors, such as the Israeli company and private actors in the United States, which exert considerable influence—should the British Government not have reported to their own public to tell us what was going on?
The noble Lord raises an important point. Obviously, France is one of our key allies—we have seen images only today of the President with the Prime Minister at the G7. I reassure your Lordships’ House that our position is that it is dangerous to jump to any conclusions on the basis of a single report. The UK Government will draw on our own analysis and draw our own conclusions.
Will the Minister confirm that it has always been very strongly in the interests of the British police and other authorities to promote closer co-operation with our neighbours? I remember when I was a very junior Minister being told in Yorkshire that there was no organised crime in Britain which was not international. I also remember much earlier, in 1989, when I was director of research at Chatham House, being approached by the Metropolitan Police to ask whether we could run a seminar on how to build police co-operation with our European neighbours—after which the British police played an active role in the establishment of Europol. This is all very strongly in our national interest, and we ought to be pursuing it as closely as we can.
Will the Minister confirm that it has always been very strongly in the interests of the British police and other authorities to promote closer co-operation with our neighbours? I remember when I was a very junior Minister being told in Yorkshire that there was no organised crime in Britain which was not international. I also remember much earlier, in 1989, when I was director of research at Chatham House, being approached by the Metropolitan Police to ask whether we could run a seminar on how to build police co-operation with our European neighbours—after which the British police played an active role in the establishment of Europol. This is all very strongly in our national interest, and we ought to be pursuing it as closely as we can.
: Absolutely. I can even recall a time when a UK citizen was head of Europol and worked in co-operation with our European partners to reduce transnational crime. When we had access to SIS II between 2015 and 2020, we had access to those police records; they were lost at Brexit. I am not going to revisit the Brexit debate. We all voted our different ways—but I know which way I voted, and which way has proved to be right in the long term. Ultimately, we will do what we can to get closer co-operation to achieve the objectives that the noble Lord has outlined.
To ask His Majesty’s Government what consideration they have given to including in the Cabinet Manual guidelines for government formation in the event of the next election not providing a Commons majority for a single party.
To ask His Majesty’s Government what consideration they have given to including in the Cabinet Manual guidelines for government formation in the event of the next election not providing a Commons majority for a single party.
My Lords, as the Prime Minister announced yesterday, the Government have committed to updating the Cabinet Manual to ensure that it remains an authoritative guide to our constitutional arrangements. This update will restate and underline the rules and conventions that underpin our democracy, including those relating to elections and government formation. We will ensure that the second edition accurately articulates arrangements where there is no overall majority in the House of Commons. We will engage with parliamentary committees in both Houses on the draft text.
My Lords, I welcome this announcement and thank the Minister for alerting me to the Statement yesterday. The coalition Government produced the Cabinet Manual as a guide for future Governments to the conventions of our unwritten constitution. It was intended that successive Governments should update it after each election, but the chaos of single-party government and rapid turnover of Prime Ministers means that this is the first one. As it is now highly likely that the outcome of the next election might be one in which no single party has a majority, can the Government pay particular attention to the area of government formation to allow sufficient time to negotiate and establish another stable coalition Government?
My Lords, I welcome this announcement and thank the Minister for alerting me to the Statement yesterday. The coalition Government produced the Cabinet Manual as a guide for future Governments to the conventions of our unwritten constitution. It was intended that successive Governments should update it after each election, but the chaos of single-party government and rapid turnover of Prime Ministers means that this is the first one. As it is now highly likely that the outcome of the next election might be one in which no single party has a majority, can the Government pay particular attention to the area of government formation to allow sufficient time to negotiate and establish another stable coalition Government?
The noble Lord knows how fond I am, and I am delighted to have been able to announce that we are updating
the Cabinet Manual. While I understand that everybody in this building is very excited about elections—we all campaign for them—it is not yet two years since the previous general election and there are another three to go, and I look forward to ensuring that there is another Labour Government. In terms of ensuring the premises of formation of government, as ever, the convention remains that it is those best able to command the confidence of the other place.
My Lords, does the Minister remember the argument, at the time of the Brexit referendum, that the divide in Britain was between the intellectual elite, who were people from anywhere, and the real people of Britain, who were people from somewhere? Are we not hearing an argument that it is the rich who are the people from anywhere, who
do not have any particular loyalty to Britain and who might move, and that the rest of us are much more patriotic? Could we not hope to hear an argument from the Conservative Party and Reform that the rich should also be patriotic and committed to this country?
My Lords, does the Minister remember the argument, at the time of the Brexit referendum, that the divide in Britain was between the intellectual elite, who were people from anywhere, and the real people of Britain, who were people from somewhere? Are we not hearing an argument that it is the rich who are the people from anywhere, who
do not have any particular loyalty to Britain and who might move, and that the rest of us are much more patriotic? Could we not hope to hear an argument from the Conservative Party and Reform that the rich should also be patriotic and committed to this country?
I absolutely understand the points that the noble Lord is making but am not sure that it is for me to speak on behalf of any other party. I just point to my noble friend’s remarks about Patriotic Millionaires: the vast majority of people in this country feel patriotic about their country and want to pay their taxes here.
The Minister mentioned music hubs. The key thing in getting an opportunity for disadvantaged students from schools that do not have good musical education is to put them in touch with music hubs. I declare an interest as I used to be chair of the VOCES8 Foundation. What shocked us when we started taking singing into schools was how many primary schools did not have a teacher with any music education, and some secondary schools had almost no expertise in music. Enthusiastic and expert music teachers are the way to get disadvantaged children into music hubs and give them the opportunities they need. What are the Government going to do to make sure that every school has a teacher with at least some training and skills in music?
The Minister mentioned music hubs. The key thing in getting an opportunity for disadvantaged students from schools that do not have good musical education is to put them in touch with music hubs. I declare an interest as I used to be chair of the VOCES8 Foundation. What shocked us when we started taking singing into schools was how many primary schools did not have a teacher with any music education, and some secondary schools had almost no expertise in music. Enthusiastic and expert music teachers are the way to get disadvantaged children into music hubs and give them the opportunities they need. What are the Government going to do to make sure that every school has a teacher with at least some training and skills in music?
The noble Lord raises a critical point, which I think was the basis of the initial Question. Too many children and young people in this country have no access to the arts in any form before they go to school, and that is something we are going to address. Family hubs are part of this picture, opening up access and opportunities, as is making sure that music hubs work with all local partners—obviously, they have to bring in private money to support them. Through that, we can move on to making sure that we have the right teacher training and the right opportunities in every school, as he suggests.
My Lords, this is about local government pension funds and we are discussing guidance; the Minister has just talked about an instruction. Does she recognise that the autonomy of local government ought to be an important principle that we all hold to and that we need to be very careful about how much we limit it? In this respect, including in foreign policy, we are limiting local government autonomy more than happens in most comparable democracies, including the United States.
My Lords, this is about local government pension funds and we are discussing guidance; the Minister has just talked about an instruction. Does she recognise that the autonomy of local government ought to be an important principle that we all hold to and that we need to be very careful about how much we limit it? In this respect, including in foreign policy, we are limiting local government autonomy more than happens in most comparable democracies, including the United States.
The Fit for the Future reforms do not seek to undermine the fiduciary duty of local pension funds in any way. The responsibility to set investment strategies—the key driver of investment returns—remains with the funds, making sure that they retain local accountability. New LGPS regulations will continue to require administering authorities to include preferences on environmental, social and governance factors in their investment strategies.
My Lords, I declare an interest as a recipient of very considerable welfare payments in the form of my old-age pension and my wife’s old-age pension. The whole discussion about cutting welfare seems to leave out the very substantial chunk of welfare that goes to those of us who are retired. Does the Minister think that all the effort in cutting welfare has to be on the young, or does he think that any discussion about cutting welfare has to include the old as well?
My Lords, I declare an interest as a recipient of very considerable welfare payments in the form of my old-age pension and my wife’s old-age pension. The whole discussion about cutting welfare seems to leave out the very substantial chunk of welfare that goes to those of us who are retired. Does the Minister think that all the effort in cutting welfare has to be on the young, or does he think that any discussion about cutting welfare has to include the old as well?
Clearly, we need a welfare system that works. No one believes that the system that we inherited is working. It abandoned too many people to a life on benefits, wrote off too many people as too sick to work and condemned too many children to be too poor to eat. That is why we are reforming the welfare system.
My Lords, a quick look at international comparisons for introducing digital voting suggests that experiments in other advanced democratic countries have shown that it is okay at the local level, where the likelihood of cyber attack is low, but at the national level it is open to too many risks to try it out. Is that also the Government’s view?
My Lords, a quick look at international comparisons for introducing digital voting suggests that experiments in other advanced democratic countries have shown that it is okay at the local level, where the likelihood of cyber attack is low, but at the national level it is open to too many risks to try it out. Is that also the Government’s view?
We absolutely understand the interest in online voting but, when it comes to electing representatives, the integrity and security of the process must come first. At present, serious concerns are shared internationally about the risks of online voting, including cyber threats, fraud and the challenge of ensuring a fully secure and anonymous ballot. That is why we currently have no plans to introduce online voting for statutory elections in the UK, but we are focused on strengthening the current systems for absent voting, such as postal and proxy voting, so that they remain secure, reliable and accessible for everyone.
My Lords, if we are going to have a whole-society response, we had better make sure that the whole society is informed about the nature of the threat. Nearly a year ago, the strategic defence review talked about the need for
“a national conversation led by the Government”—
political leadership by the Government—to inform and educate the wider public about the nature of these new cyber and other hybrid threats from a number of different countries: Iran, Russia, China and others. When are the Government going to provide that political leadership through the national conversation which was proposed?
My Lords, if we are going to have a whole-society response, we had better make sure that the whole society is informed about the nature of the threat. Nearly a year ago, the strategic defence review talked about the need for
“a national conversation led by the Government”—
political leadership by the Government—to inform and educate the wider public about the nature of these new cyber and other hybrid threats from a number of different countries: Iran, Russia, China and others. When are the Government going to provide that political leadership through the national conversation which was proposed?
My Lords, I am disappointed that not everybody looks at the NCSC’s website in the same way that I do to ensure that they are updated. The noble Lord is right that we need to make sure that people are aware. It was one of the reasons why it was so important in the run-up to the national alerts we had on all our phones last year that materials were made available about what else could be done in terms of resilience and
what other things needed to be done. I urge all noble Lords to make sure they are also protected. I hate to do this, but there is a cyber offer available to every Member of your Lordships’ House, and I believe only 10 of us have accessed it. It would be very good if all Members of your Lordships’ House took up the security offering provided to protect us while we talk about others too.
My Lords, family voting, as it is now called, is not an entirely new phenomenon. When I first started out as a candidate, a very long time ago, it was most common in working-class communities; it is now rather more common in communities of south Asian origin. There should have been sufficient staff and police to observe whether the report by Democracy Volunteers—that there was an unusually high incidence of family voting in this by-election—was correct. Was there a problem with staffing? Are the Government ensuring that adequate staffing and policing of polling stations is being maintained?
My Lords, family voting, as it is now called, is not an entirely new phenomenon. When I first started out as a candidate, a very long time ago, it was most common in working-class communities; it is now rather more common in communities of south Asian origin. There should have been sufficient staff and police to observe whether the report by Democracy Volunteers—that there was an unusually high incidence of family voting in this by-election—was correct. Was there a problem with staffing? Are the Government ensuring that adequate staffing and policing of polling stations is being maintained?
It is an offence to accompany a voter into the polling booth with the intention of influencing how they vote. That was brought forward by the noble Lord, Lord Hayward, as part of the Ballot Secrecy Act, and it put that matter beyond doubt. Elections are run by independent returning officers, who will take account of guidance from the Electoral Commission. The commission’s polling station handbook provides guidance for polling station staff on this matter. It is for returning officers to ensure that their polling stations are staffed. In all the areas I have ever been involved with, returning officers have taken this role incredibly seriously, and they make sure that their staff are well trained and kept up to date on election law. On the police, in my own area I have always found the police very co-operative and supportive of what returning officers and their staff do. We will continue to work to make sure that polling station staff are aware of the rules and confident in challenging individuals, and we will continue to work with the commission and Crimestoppers on the annual Your Vote is Yours Alone campaign to raise awareness of these issues.
My Lords, can we be assured that the police are now fully supportive of preventing intimidation? I do my politics in Bradford where there has been quite active intimidation of candidates. I recall a conversation with the noble Lord, Lord Kennedy, in a previous election campaign precisely about the reluctance of the Bradford police to intervene. Have we now had absolute assurance that the police will regard this as one of their important functions during election campaigns?
My Lords, can we be assured that the police are now fully supportive of preventing intimidation? I do my politics in Bradford where there has been quite active intimidation of candidates. I recall a conversation with the noble Lord, Lord Kennedy, in a previous election campaign precisely about the reluctance of the Bradford police to intervene. Have we now had absolute assurance that the police will regard this as one of their important functions during election campaigns?
There are two important responses to that question. We are taking forward legislation to extend disqualification orders to protect electoral staff and ensure that those who abuse them can be disqualified from standing for or holding elected office, and we are empowering courts to hand out tougher sentences to people who abuse. As I have said, the Government have also introduced legislation to restrict protests outside the homes of public officeholders. So we are strengthening the law in this regard. With regard to the police, the concern that emerged from the Speaker’s Conference, which we will address in our response, is the consistency of responses between different police forces, and that will be a very important priority as this work unfolds.
Can I press the Minister on what she said about being in favour of public appointments having parliamentary scrutiny? We on these Benches strongly support that. It sounds a very welcome thing, not necessarily for all our
ambassadors but certainly for all senior public appointments. After all, we are supposed to be a parliamentary sovereignty and the idea that these are entirely in the hands of the Prime Minister clashes with the myth, at least, of parliamentary sovereignty. Can she explain a little more about whether this is now government policy?
Can I press the Minister on what she said about being in favour of public appointments having parliamentary scrutiny? We on these Benches strongly support that. It sounds a very welcome thing, not necessarily for all our
ambassadors but certainly for all senior public appointments. After all, we are supposed to be a parliamentary sovereignty and the idea that these are entirely in the hands of the Prime Minister clashes with the myth, at least, of parliamentary sovereignty. Can she explain a little more about whether this is now government policy?
Government policy as regards the narrow issue that the noble Lord raised has not changed. That is not to say it cannot or will not ever change as a consequence of the considerations being made now. It is possible for the Foreign Affairs Committee to summon an ambassador and to want to hear from them. That is available under existing arrangements. I take his comment that he feels that Parliament should have greater input and greater oversight of many of those things. I think that is a welcome suggestion.
My Lords, I declare an interest: I used to work for the all-party think tank Chatham House, which always declares its donors, as all partisan or non-partisan think tanks should. The Minister may have noticed that, some days ago, the Free Speech Union took out an emergency injunction to prevent the publication of its donors. We are talking about a range of bodies which are partisan think tanks, lobbies trying to influence the political debate, and third parties, in effect, and we need to tighten the rules on those bodies. It is money coming in from the United States and the UAE, as well as from hostile states such as Russia and China in much smaller numbers. Some of the money coming in from the Gulf states to the Blair Foundation, I think, is very considerable. Should there not be tougher rules to make sure that transparency is insisted on in all cases?
My Lords, I declare an interest: I used to work for the all-party think tank Chatham House, which always declares its donors, as all partisan or non-partisan think tanks should. The Minister may have noticed that, some days ago, the Free Speech Union took out an emergency injunction to prevent the publication of its donors. We are talking about a range of bodies which are partisan think tanks, lobbies trying to influence the political debate, and third parties, in effect, and we need to tighten the rules on those bodies. It is money coming in from the United States and the UAE, as well as from hostile states such as Russia and China in much smaller numbers. Some of the money coming in from the Gulf states to the Blair Foundation, I think, is very considerable. Should there not be tougher rules to make sure that transparency is insisted on in all cases?
The noble Lord will be aware that last year, we published our anti-corruption strategy, which outlined the risks posed by corrupt actors who are seeking to influence UK institutions or launder their reputations by engaging in some organisations. As I have said before from this Dispatch Box, we have also recently launched the Counter Political Interference and Espionage Action Plan, which addresses how some state actors use different elements of the state. But the one thing that is incredibly important within the context of all these issues is that fundamentally, our country is run by the Government, and it is Ministers who make final decisions, supported by an impartial Civil Service. Those aspects are key and, while engagement with wider stakeholders is incredibly important and is covered by the Ministerial Code, it is about the integrity of our Ministers and making sure that we have a consistent, impartial Civil Service.
To ask His Majesty’s Government what proposals they are considering to reverse the decline in public trust of national politics in the UK.
To ask His Majesty’s Government what proposals they are considering to reverse the decline in public trust of national politics in the UK.
The Government are committed to restoring public confidence in our politics. On entering office, the Prime Minister issued a new Ministerial Code strengthening the powers of his Independent Adviser on Ministerial Standards, increasing transparency on ministerial gifts and hospitality, as well as establishing the Ethics and Integrity Commission. The Public Office (Accountability) Bill will place a new legal duty on public servants to act truthfully and to fully assist inquiries and investigations. The Government have also announced an independent review into foreign financial influence and interference in the UK’s political and electoral system.