NHS: General Medical Practitioners

Lord Bishop of St Albans Excerpts

Monday 20th November 2023 Lords Chamber

[Lord Evans of Rainow (Con)]

I completely agree with my noble friend. The 2022 GP patient survey showed that 72% of patients reported a good overall experience at their GP practices. GP practices that innovate tend to get better results in customer patient satisfaction.

[The Lord Bishop of St Albans]

My Lords, how many doctors, including GPs, have come from outside the UK in the last year for which we have records? What long-term plan is there to stop us relying on having to bring in doctors from countries that need them far more than we do because they are much poorer than here in the UK?

[Lord Evans of Rainow (Con)]

The right reverend Prelate the Bishop of St Albans asks an important question but the recovery plan introduced new measures to support international medical students, who make up more than half of all doctors in GP training, so if we were to stop those students coming over we would be in real trouble ourselves. On his wider point he is absolutely right, but it is not just GPs and doctors; it is also healthcare professionals in social services and elsewhere.

Democracy Denied (DPRRC Report)

Lord Bishop of St Albans Excerpts

Thursday 12th January 2023 Lords Chamber

[The Lord Bishop of St Albans]

My Lords, as has already been noted by other speakers in this debate, delegated legislation is indeed a necessary part of the process, but I echo the concerns about the increasing use of skeleton legislation, Henry VIII powers, disguised legislation and tertiary legislation. I support these two excellent reports that look at how we might limit the use of delegated legislation and address the culture that is now taking it for granted. Both committees highlighted very valid concern about the transfer of power from Parliament, with clear democratic oversight and public scrutiny, to instead ruling by Executive edict.

The past few years have been turbulent times, although probably if anybody looked back over any decade in the life of this nation they would see that there have always been turbulent things happening. Therefore, I guess it is easy to understand why the Executive may need to respond in unusual and challenging circumstances with delegated authority. However, it is absolutely crucial that this is done sparingly and in a transparent manner. The Government’s response to the pandemic is the classic example of this. Of course, there are times when a national emergency will demand that we fast-track legislation, or grant broad delegated powers, but those should be exceptional and rare cases. The Government must always recognise the importance and value of parliamentary scrutiny. What is concerning, as is brilliantly highlighted in these reports, is that the Government’s widening use of delegated legislation is not limited to emergencies but is now being used routinely.

We were promised by this Government that we would “take back control” by putting power back into the hands of the British people through Brexit, but it looks as though the opposite is in fact happening. The DPRRC report has described Brexit-related Bills as some of the “starkest examples” of disguised legislation. A year ago, the noble Lord, Lord Lisvane, who is speaking later in the debate, summed it up perfectly when he said:

“The real losers are our citizens.”—[Official Report, 6/1/22; col. 780.]


It is for them that we are standing here today, to appropriately scrutinise the laws that affect their daily lives. To take this away from them is to do all of us a great disservice.

His Majesty’s Government would be advised to think very carefully about the use of skeleton Bills, Henry VIII powers and so on, as they will have no grounds for complaining if a future Government of another political persuasion use the very same powers. If this becomes the norm, any Government will take it for granted that they can ignore scrutiny by Parliament. As a minimum, we need policies that have the support of both Houses and all parties and clear principles on what needs primary legislation and what can, in exceptional circumstances, be dealt with by delegated legislation. We also need to agree on more effective ways for Parliament to scrutinise things such as statutory instruments.

Parliamentary scrutiny is one of the core constitutional functions, and the Government need to have a willingness to be scrutinised, particularly on any matter relating to the rights of the individual: their privacy, security and right to speak or assemble. So, from these Benches, I reiterate our support for the recommendations of these reports and some of the interesting material that is now being produced by the Hansard Society—which we will need to look at when we have, I hope, more time and leisure—and express my grave concerns about the shifting balance of power from Parliament to the Executive.

Tributes

Lord Bishop of St Albans Excerpts

Tuesday 20th December 2022 Lords Chamber

Finally, on behalf of these Benches, I add our thanks to all the staff who are still with us. We wish them, and all noble Lords, a very happy Christmas and a safe and peaceful New Year.

[The Lord Bishop of St Albans]

My Lords, I will not detain the House for long but, on behalf of the Lords spiritual, we thank all those extraordinary staff who, through their dedication, have served us so well. I am thinking of the clerks, the doorkeepers, and the catering, security and domestic staff. We really could not function without them and the extraordinary level of professionalism and dedication that they bring.

I will not go through a list of people, although I highlight—because she was a huge help to me— Philippa Tudor and her extraordinary competence and professionalism. We on these Benches also extend our best wishes to the family and friends of Lee Barnes. We offer all those who have been mentioned today our best wishes as they move either into retirement or on to new challenges, and we wish them a very happy Christmas.

COP 27

Lord Bishop of St Albans Excerpts

Tuesday 15th November 2022 Lords Chamber

[Lord True (Con)]

Well, my Lords, we will use such diplomatic power as we have. I have discovered in life, at a relatively advanced age, that you may pour wisdom into many people’s ears but they will not necessarily listen. I think the whole House agrees with what my noble friend just said; it is essential that all nations step up to the plate. The best we can do—and I believe that we did it in Glasgow, and that the Prime Minister has done it at COP 27—is use the UK’s considerable diplomatic influence in partnership with our allies. For example, we are working on Just Energy action with South Africa and Indonesia, and we are working alongside other developed nations.

We must use our diplomatic power to the greatest extent possible and we must, by our exertions, set an example to the rest of the world. If I could tell your Lordships’ House that with a click of the fingers, I could change the policy of very powerful nations in other parts of the world, I would, but every time Ministers of this Government meet Ministers from high-polluting countries, we will certainly make that point.

[The Lord Bishop of St Albans]

My Lords, is the Minister able to confirm that the pledges for international climate finance are not being taken from the ODA budgets?

[Lord True (Con)]

My Lords, on the ODA budget, my right honourable friend the Prime Minister has made it very clear that he wishes to see a return to 0.7% as the target for overseas aid. That remains the position of the Government. As far as specific action and lines of finance are concerned, I am not in a position to say anything at the Dispatch Box. Again, I will contact the right reverend Prelate, but I remind the House that we are a world leader in development support. We spent more than £11 billion on overseas development aid in 2021. We remain committed to the International Development (Official Development Assistance Target) Act 2015 and to spending 0.7% of GNI once the fiscal situation allows. That has been made clear from the top of the Government.

Financial Services Bill

Lord Bishop of St Albans Excerpts

3rd reading & Report stage
Monday 19th April 2021 Lords Chamber

[Baroness Neville-Rolfe (Con)]

My Lords, I rise to speak on Amendment 33 in the name of the noble Lord, Lord Sikka, having studied the comments made in Committee and repeated today. I can understand his frustration with history in this area. In particular, I would highlight the long delay and prevarication by Lloyds and the then regulator in dealing with the HBOS scam, which led to the demise of a number of small businesses banking with HBOS’s corporate division in Reading. Maybe more transparency would have helped there but it was actually a failure by the bank itself and by the regulator, which I very much hope would not happen again today. I am still not entirely sure what eventually happened; I know that there were some high-profile convictions. Perhaps my noble friend the Minister could update us on that sorry tale. I share everyone’s wish to see a system where it could never happen again.

However, I always worry that bad cases make bad law. The cases being quoted are generally old, while the FCA’s powers have been strengthened over the years and the culture has changed so that it is now very pro-consumer. Moreover, as my noble friend the Deputy Leader of the House explained on 10 March, the FCA is an independent body and the power of Ministers to intervene is very circumscribed. I suspect we will come back to these issues in the next financial services Bill, so I would like to make two points today.

First, reports from the United States have to be treated with some care. It is a sad fact that, unlike our own regulatory authorities, the US ones are more than a little protectionist. They come down harder on foreign entities than their domestic ones and like to levy huge fines whenever they can. It is not a level playing field, unlike the UK, which is of course one of the reasons why investors like it here. Secondly, in the sort of cases we are talking about, Ministers—I speak from experience, first as a civil servant and secondly as a Minister at BEIS, DCMS and HM Treasury—act on advice, not as free-talking politicians. If they make a direction in an investigation, it will reflect a public policy need and that could be a confidential matter, such as security or a government interest. Once that is made public it might be difficult for those being investigated to get a fair hearing, which is unfortunate in itself and likely to lead to aborted prosecutions. Whichever party is in power, this would not be in the public interest. For all these reasons, I encourage those involved to withdraw their amendment today.

[The Lord Bishop of St Albans [V]]

My Lords, I will be brief in my support for this amendment. I am very grateful to the noble Lord, Lord Sikka, and the noble Baroness, Lady Bennett of Manor Castle, for speaking at great length. I therefore do not need to add a huge amount more, not least as I intend to go into a bit more detail on my concerns about transparency when speaking in support of Amendment 34, which touches on similar issues of accountability.

I am a little puzzled why the noble Baroness, Lady Neville-Rolfe, thinks that this is a case of bad cases making bad laws. It seems to me that there have been very considerable concerns in the past. Surely those ought to be investigated.

We are facing a real crisis of trust in public bodies at the moment, and I believe that this amendment will be a beneficial addition to this Financial Services Bill. In making provisions for an additional layer of transparency, it will act as an incentive against any possible interference; whether done formally or informally, it will still have that effect. The truth is that we do not know whether ministerial interference in FCA investigations has occurred, and positively stating either way is speculative.

Although I was not privy to the written response from the noble Earl, Lord Howe, which he promised to send to the noble Baroness, Lady Kramer, confirming whether there were provisions within the Ministerial Code to allow for interventions in FCA investigations, the assumption in Committee was that any attempt to steer an FCA investigation would constitute a breach of the Ministerial Code. That would require breaches of the Ministerial Code or other offences to be taken seriously, and not treated lightly or even dismissed. Last year, an inquiry found evidence that the Home Secretary had breached the Ministerial Code, yet the consequences extended little further than an apology. In February, it was revealed that the Health Secretary had acted unlawfully when his department failed to reveal details of contracts signed during the Covid-19 period. Just before Easter, we all started reading about allegations surrounding conflicts of interest in a former Prime Minister’s dealings with the financial services firm Greensill, and there have been concerns about the current Prime Minister’s dealings during his time at City Hall. It is vital that, if we are to rely on breaches of the Ministerial Code, they are given some teeth and have some effect.

I have no evidence, but it may be that no Minister has ever interfered in any FCA investigation, in any way. I sincerely hope that that is the case, but we cannot rule it out. If interferences have occurred, it would be doubtful to assume that investigations are always steered in the interests of consumers. Although provisions are in place to prevent misconduct, they should not discount the contribution that this important amendment can make in strengthening those rules and further disincentivising any possible ministerial interferences in FCA investigations. If Her Majesty’s Government have concerns about small parts of the wording here, I hope they come back with some improvements to ensure that the levels of transparency are clear to everybody, in every part of the system.

[Baroness Kramer (LD)]

My Lords, unfortunately, I did not bring with me a copy of the letter that the noble Earl, Lord Howe, kindly sent me in response to my question about the Ministerial Code. I expect that a copy is in the Library and available to everyone, but I am sure that the Minister will follow through. While reading the content was reassuring, I do not want it to be a distraction—it is one of the reasons that I have not signed this amendment—from the underlying issue of whether there is adequate transparency to act as the cleansing light that we need in an industry sector that will always be subject to misbehaviour. There is just too much money and opportunity, and an awful lot of power, washing through this industry. Insight, clarity and visibility are probably more important than in almost any other sector of our economy.

The noble Baroness, Lady Neville-Rolfe, talked as if all the misbehaviour was in the past, but we are talking about Greensill today and I have questions. I know that there are many task forces and investigations going on, but I still have no understanding of how a company with as many red flags against it as Greensill got through the accreditation process to enable it to participate in the CBILS. Other than writing to the British Business Bank—and I doubt that I will get an adequate answer—I am not sure what mechanism I can possibly use to get to the bottom of that. We do not have transparency in the areas where we need it.

I remember many conversations, in the midst of the 2008 financial crisis and subsequently, with regulators that were anxious not to rock the boat. The economy and industry were fragile enough, and they were disinclined to investigate. It is to that which I have always attributed the FCA’s inaction with regard to HBOS. I support the description of the HBOS crisis given by the noble Lord, Lord Sikka. It was purely by chance that the fraud—it was literally fraud that sent people to jail for 10 years—at HBOS was exposed. Thames Valley Police decided to investigate when all the regulators, the Serious Fraud Office and the most relevant and obvious police forces had refused. Part of that was due to a lack of resources, from the police forces’ perspective.

I do not think I have ever forgiven the Treasury for its actions in this regard. It cost £7 million for Thames Valley Police to investigate that fraud and it was never reimbursed that money. The fine, of about £45 million, went to the Treasury and was deliberately not shared with the police force. Had it been, it would have encouraged and enabled police forces around the country to be more acutely aware and engaged when there was evidence of fraudulent behaviour. Even today, the various companies that were defrauded have not yet been fully compensated. Nearly 14 years on, it has not been resolved. We have two more bodies now involved in trying to clean up that mess.

The other area that leaves me with great concern is that the response I always get when I raise issues around transparency and enforcement in financial services is: “We now have the senior managers regime.” I was on the Parliamentary Commission on Banking Standards, which drove a lot of the thinking that led to that regime, but, as we have often discussed in this House, it has been holed below the waterline by decisions of the FCA not to pursue senior executives. We know mostly about Barclays and Jes Staley—who had hired private investigators to track down a whistleblower—being fined but not declared unfit to hold his position. The fine was of a size that was more than made up by the bonuses he received in the following years, so it was pointless.

We have an underlying problem. It is not that the senior managers regime does not do some good—it establishes some procedures and processes—but it focuses on more junior people and does not hold people accountable at the senior level. With Greensill coming into the picture now and triggering a much wider discussion, I very much hope that the Government will take back the message that they have to sit the regulators and the various enforcement bodies down, and work out a way to make this system more effective. They are up against powerful forces and there is inequality of arms, but this industry has to be kept under oversight and control because, when it goes wrong, it takes a large part of our economy with it, as well as creating many individual victims.

--- Later in debate ---

[Baroness Noakes (Con)]

My Lords, I am sure that the noble Lord, Lord Sikka, will not be surprised to find that I do not support his Amendment 34. In particular, as a former director of a supervised bank, I do not recognise the regulatory capture that he majored on in Committee and again today. In my experience, the relationships are always challenging and, sometimes, worse than that.

I have two main reasons for opposing the amendment. First, a supervisory board sitting over the top of the existing regulators undermines a fundamental characteristic of regulation in the UK—namely, that regulators are independent. That means that they are independent of government, certainly, and of Parliament and anyone else who thinks that they might have an interest in what they do. They are certainly accountable for delivering against their objectives and expect to be scrutinised by Parliament, but they are autonomous bodies. This amendment runs against that.

Secondly, the regulators already have governance structures that oversee the work that the executives undertake. In the FCA, it is the FCA’s own board, which has a chairman and a majority of non-executive directors. I believe that the only executive on the FCA board is, in fact, its chief executive. In the case of the PRA, there is a Prudential Regulation Committee, which has Bank of England executives and outside members, and is chaired by the Governor of the Bank of England. More importantly, in governance terms, as the PRA is part of the Bank of England it is overseen by the Court of the Bank of England, which, again, is a largely non-executive body chaired by a non-executive, although it does have the governor and the deputy governors, including the head of the PRA.

Governance of the regulators is carried out in the way in which governance in the UK is normally done. It covers the very things mentioned in proposed new subsection (8), which is therefore duplicative. If there are concerns, they should be dealt with within the organisations concerned, without writing reports to Parliament. I believe in transparency, but there is a point at which transparency becomes counterproductive, and I am sure that this amendment is way beyond that point.

Accountability to Parliament takes many forms, a key one being the annual reports that are laid before Parliament, setting out the regulators’ performance against their objectives, which is required by existing statute. It really is difficult to see what added value this amendment would create.

The amendment is also deficient in a number of respects. Perhaps the most glaring is the reference to the “Executive Board” of the PRA and of the FCA. As far as I am aware, there is no such thing specified in legislation or the governance arrangements of either body. I believe that each regulator has an executive committee or equivalent, but they do not have an “Executive Board”, with a capital “E” and a capital “B”.

The amendment would require the exclusion from the supervisory board of anyone who might actually understand what the PRA and the FCA actually do. Proposed new subsection (5) would disqualify “current and past employees” not just of the FCA and the PRA but of any organisation that they supervise. I have never thought that ignorance was a good qualification to be a member of a board.

Proposed new subsection (10) talks about “open meetings” but does not explain what that means in practice. Proposed new subsection (11) says that all the supervisory boards papers must “be made publicly available”, but it seems to pay no heed to the need for confidentiality or data protection. I could go on. These are unnecessary and ill-thought-out proposals, and I hope that my noble friend the Minister will not accept them.

[The Lord Bishop of St Albans [V]]

My Lords, I will speak in support of Amendment 34, in the name of the noble Lord, Lord Sikka, which is an interesting contribution to the question of governance. I am keen that we find any ways that we can to speak into those organisational cultures that every industry adopts and promotes, and which sometimes lead to groupthink.

There are times when it takes someone from the outside to ask intelligent questions. I am reminded of Her Majesty the Queen asking the Bank of England why there had been a financial crash back in 2008, when many people in the industry, who were paid extraordinary amounts of money because of their supposed expertise, had not spotted that it was coming. I do not think that this is about inviting people who are ignorant to come on to boards; this is a question about whether there is a wider contribution that might be very useful and of help to thinking about issues of governance responsibility.

I will comment briefly on a further development in the FCA’s investigation into car finance, which I have referred to in the House in the past. Since the FCA introduced its new rules banning discretionary commission models in January 2021 and subsequently closed its investigations into Lookers, the car dealership firm, for possible mis-selling, it was revealed that the UK’s accounting watchdog, the Financial Reporting Council, was investigating accounting giant Deloitte for its role in auditing the very same Lookers that the FCA had only just ended its investigation into a few weeks earlier. The FCA never confirmed or dismissed whether there had been any mis-selling, remarking that it had made its concerns clear and did not intend to impose penalties on this FTSE 250 firm. However, the opening of a new investigation relating to Lookers raises questions about the thoroughness of the original FCA investigation: were all aspects investigated?

Financial Services Bill

Lord Bishop of St Albans Excerpts

Committee stage
Wednesday 10th March 2021 Grand Committee

[The Deputy Chairman of Committees (Lord Duncan of Springbank) (Con)]

I call the next speaker, the Lord Bishop of St Albans, but I cannot hear anything. I wonder whether he might be on mute.

[The Lord Bishop of St Albans [V]]

My Lords, I apologise; I am so sorry.

I am glad to speak in support of Amendment 107 in the names of the noble Lord, Lord Sikka, and the noble Baroness, Lady Bennett of Manor Castle. Throughout the course of this debate, there have been a number of comments on the current functioning of the FCA, the scope of its remit and whether it is properly undertaking its duties.

As the noble Lord, Lord Sikka, pointed out, there have been occasions when financial misconduct has not been fully disclosed, and it is worrying that this may have been due to interventions from those within government. As we establish our new position in the world following Brexit and seek to build on our financial services sector, it is vital that we are known for our honesty and transparency throughout the world. Our future will depend on this. So surely the amendment is entirely uncontroversial. The FCA is meant to be an independent regulator, not a direct arm of the Government. Hence, if Ministers have sought to intervene in any sort of FCA work or investigation, it should be a matter of transparency and disclosed.

Recently, the FCA dropped its investigation into Lookers, arguing it had instead made its concerns clear relating to the

“historic culture, systems and controls”

of the group. Why the investigation was not carried out to the full remains unclear—certainly to me, despite trying to find out. I imagine that many, including me, find the FCA’s answer unsatisfactory. It does not give us the assurances that we would hope an independent regulator would give.

Some commentators have noted that the dropping of this investigation seemed to coincide rather conveniently with the FCA’s new rules relating to car finance, brought in at the end of January 2021. Yet even these changes fell short of a mis-sell, which would undoubtedly have cost the providers of finance billions—strongly hinted at by the FCA’s 2019 report into car finance.

How the FCA came to its decision was in-house, even if it was sometimes perplexing to those of us outside. Nevertheless, in this instance, for example—and in many others—what we do not know is whether there has been any direct ministerial intervention to steer the FCA into any specific course of action. Many people would like reassurances that any intervention should be made in the interests of all and for the common good, particularly in customers’ best interests.

The amendment, in shining a light on what happens behind the FCA’s closed doors, would be a valuable addition to the Financial Services Bill. It would help in a mission that I know many in this House share to create a more transparent, robust and, dare I even say, moral financial system that in the long run will benefit all of us. I hope that the Government will look closely at either the amendment or something similar as we return to the matter later during the passage of the Bill through your Lordships’ House.

[Baroness Kramer (LD)]

My Lords, I need to spend more time, frankly, trying to understand the amendment. I would be genuinely shocked if Ministers interfered with an investigation of any of the regulators—certainly the FCA, the body at the centre of the amendment. I am not sufficiently familiar, I confess, with the Ministerial Code, but if the code does not make that clear, it would seem absolutely necessary that it does.

I perfectly understand concerns about the effectiveness of the FCA as a regulator in dealing with wrongful behaviour. It needs to be much more aggressive and transparent. We have talked earlier in Grand Committee about the HBOS Reading fraud scandal. The FCA was finally pressured into commissioning a report from Promontory, then did not publish it—only a summary that did not reflect in any significant way the actual conclusions of the report. That was extremely disturbing. We have also talked about the FCA’s actions under the senior managers and certification regime against Jes Staley, chief executive of Barclays—

Financial Services Bill

Lord Bishop of St Albans Excerpts

Committee stage
Monday 1st March 2021 Grand Committee

Moved by

[The Lord Bishop of St Albans]

46: Clause 22, page 28, line 23, at end insert—
“32B Gibraltar-based persons: taxation reporting(1) A Gibraltar-based person carrying on an activity approved under Schedule 2A, or which has permission by virtue of relevant Gibraltar provision to carry on an activity, in the United Kingdom must, as soon as reasonably practicable after the end of each financial year, submit to the Treasury a statement in respect of that year of the gross profit made from carrying on that activity or, where it is carrying on more than one such activity, from carrying on each activity.(2) The report under section 32A must specify—(a) the number of Gibraltar-based persons who submitted a statement under subsection (1) in the reporting period concerned,(b) the number of persons referred to in paragraph (a) who, at any time in that reporting period, were also authorised persons on some other basis under section 31,(c) the total of the amounts of gross profit in each statement submitted under subsection (1) in that reporting period, and(d) the total of the amount of tax chargeable in the United Kingdom on the amounts specified under paragraph (c) and, where tax is chargeable on a different basis for different amounts, the amount chargeable on each basis.(3) The report under section 32A must include an analysis of the difference between the taxation regime in the United Kingdom on profits made from carrying on activities of the kind referred to in subsection (1) and the equivalent regime in Gibraltar.(4) The report under section 32A must, in the light of the analysis under subsection (3), include such recommendations as the Treasury considers appropriate for improving transparency in the processes in the United Kingdom, and in the processes in Gibraltar, for levying and collecting tax on activities of the kind referred to in subsection (1).(5) A failure to submit a statement under subsection (1), or a failure to submit a statement under that subsection which is complete and accurate, is to be treated as a breach of the general prohibition.(6) A reference to a relevant Gibraltar provision is to be read with section 23 of the Financial Services Act 2021.”Member’s explanatory statement
This amendment would require any Gibraltar-based person carrying on activities in the UK to provide an annual statement to the Treasury of the profits it has made from those activities. The Treasury would then report to Parliament on the amount of tax chargeable on those profits and make any recommendations it thinks appropriate for improving transparency.

--- Later in debate ---

[The Lord Bishop of St Albans]

My Lords, Amendment 46, in my name and those of the noble Lord, Lord Sikka, and the noble Baroness, Lady Bennett of Manor Castle, probes whether the reporting requirements on financial firms operating from Gibraltar in the UK market are sufficiently robust, and it questions whether we might find a way to make them more transparent. The Gibraltar authorisation regime continues the established practice of companies operating from Gibraltar in the UK, which is why it is important to review whether the UK taxpayer receives a fair deal from this arrangement. The Companies Act 2006 already mandates foreign companies to register and file accounts to Companies House, yet some Gibraltar-based companies with registered subsidiaries in the UK have successfully used this system to reduce their tax bill.

Transfer pricing plays a major role in switching money between jurisdictions so that the costs are burdened on the area with the highest tax rates, with the profits channelled to the areas with the lowest tax. This is of course a global issue that requires global tax co-operation, but that does not mean that where possible we as a nation should not take measures to remedy the situation where we can. Financial services are one of Gibraltar’s primary industries, which is why I have tabled the amendment. Ideally, through stricter and more thorough reporting standards between Gibraltar and the UK, these should apply to all sectors. For example, in the online services and gaming industry, transactions are often placed in the UK by customers but processed by servers in Gibraltar, a technicality that allows what in reality is taxable income in the UK to be taxed in Gibraltar.

If such practices are well documented among the online gambling sector, I do not doubt that they extend to the financial sector as well. Without public country-by-country reporting, identifying dubious transfer pricing will continue to remain difficult. However, that should not deter us from strengthening reporting between Gibraltar and the UK, particularly given our official links. Surely it simply cannot be right that some of the major UK gambling firms pay an actual corporation tax in the UK of between 3% and 13% by either headquartering or using subsidiaries based in Gibraltar. Incidentally, we only know this because the size of these firms has brought them under the scrutiny of journalists who have investigated them. Given the commonality of these methods among larger corporations, financial firms of the SME variety could, and possibly do, engage in similar methods.

The fact that companies have been able to rather openly reduce their corporation tax bill by incorporating some of their operations in Gibraltar calls into question the current mechanisms for the effective and proper exchange of information between the two jurisdictions in relation to profits subject to tax. During his evidence session, the Minister said that corporation tax rate was not a factor in relocation to Gibraltar. No doubt, the Mediterranean climate and lifestyle make it a very attractive place to reside. Indeed, I have thought of little else over the recent cold days. However, for the purposes of reducing your corporation tax bill, only a partial relocation is required. Furthermore, Gibraltar provides a unique service in the “non-resident company”, a simple and cheap offshore corporate tax entity that even the most cursory search online will see marketed as an international investment and tax-planning vehicle, with all the usual connotations that this implies.

I do not want the many good people of Gibraltar to confuse my concerns as an attack on their territory, but the continuation of access to UK financial markets by permitted Gibraltar-based persons without a review into the effectiveness of the information exchange and the transparency of reporting requirements between the two jurisdictions will leave open avenues and incentives for businesses to reduce their actual UK tax obligations through Gibraltar-based tax planning. I hope that the Minister will be able to reflect on some of these issues and perhaps help me understand what we can do to improve the situation because we might need to revisit this later on. I beg to move.

[Lord Eatwell (Lab)]

My Lords, the provisions in the Bill dealing with relations with Gibraltar raise a number of intriguing questions. The probing amendment in the names of my noble friend Lord Tunnicliffe and myself is really seeking some answers. The Bill in effect creates a single financial market with Gibraltar, even to the extent of offering customers of Gibraltarian entities access to the Financial Services Compensation Scheme. In doing so, it forges a single market with a different jurisdiction, a jurisdiction that includes a different regulatory authority and notably—as the wording of the amendment in the name of the right reverend Prelate the Bishop of St Albans suggests—a fiscal jurisdiction that diverges significantly from that of the UK. I welcome the right reverend Prelate’s amendment.

When this country was a member of the European single market, there was, in essence, a single regulatory regime in the UK and Gibraltar, although the implementation of EU directives was not entirely uniform. In the Bill, the provisions on Gibraltar have been presented as a continuity measure. However, the UK’s new-found ability and declared intention to deviate from EU rules signals a substantial shift in our regulatory framework and potentially in its interplay with that of Gibraltar. The first part of Amendment 47 asks the Treasury to present in detail its assessment of how compatible the regulatory systems in the UK and Gibraltar actually are. It is important that people have confidence in the firms that will be allowed to operate in the UK. The Gibraltar authorisation regime, as it is called, being introduced by the Bill seeks alignment of law and practice in the UK and Gibraltar, but it does not prohibit Gibraltarian divergence.

I turn to the impact assessment. It is pointed out that the Gibraltarian authorisation regime will be established by a mix of primary legislation, secondary legislation, regulators’ rules, MOUs, policy statements and guidance. Given the unique nature of the creation of the single financial market, it is important that Parliament has the opportunity to assess this plethora of measures; hence the need for a Treasury statement in 12 months’ time.

It is further noted in the impact assessment that about 20% of motor insurance policies in the UK are written with Gibraltar-based insurers. When replying to the debate, will the Minister tell the Committee why he thinks that might be? What are the peculiar advantages of Gibraltar that have attracted such an extraordinarily high proportion of this UK business, and will those peculiar advantages continue as a result of the Bill?

At a time when the entire regulatory framework is under review, the Government might consider this to be the time to reassess the financial services relationships with the Crown dependencies as well. I am aware of the very different legal status of the Crown dependencies from that of Gibraltar and the fact that, given that the Crown dependencies were never members of the European Union, the UK’s exit does not pose the same range of new problems. However, the Minister will be aware that the financial services provided in the Crown dependencies are a vital part of the financial infrastructure of the UK, in particular with respect to the flow of liquidity into the London markets. Will the regulatory framework review cover the issue of the financial market relationships between the UK and the Crown dependencies? The regulatory framework review could take note, for example, of the fact that many regulatory practices in some Crown dependencies, such as the registration of beneficial ownership, are significantly superior to current practice in the UK. Given that the UK Government happily promote financial relations with Gibraltar, even though the Gibraltarian fiscal regime is significantly different from that in the UK, are they considering some enhancement of financial relationships with the Crown dependencies by, say, extending access to the Financial Services Compensation Scheme?

--- Later in debate ---

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

I have not received a request from anyone wishing to speak after the Minister, so I call the right reverend Prelate the Bishop of St Albans.

[The Lord Bishop of St Albans]

My Lords, I am most grateful to the Minister for the points that he has made. I too want to underline my support for Gibraltar. In this new post-Brexit world, I want us as a nation and our neighbouring countries, as well as Gibraltar, to flourish. However, we are also in a time of huge financial stringency, and there are very important issues here about tax justice. As so often when I sit in a debate in your Lordships’ House, I find myself realising that I am in a seminar and learning far more than I am giving. I am grateful to my noble colleagues and friends here for some of their explanations.

I am still unclear how the GAR will be reciprocated in terms of why we are giving these extraordinary benefits. I need time to go away and think about what the Minister has said. I certainly still look at the situation with puzzlement. I was struck by the comment by the noble Lord, Lord Sikka, that there are two registered companies for every citizen on the Rock. It sounds as if there are some extraordinary benefits which to some of us do not look to be reciprocated justly.

I will probably return to this on Report, but in the light of the comments and some of the limitations of the amendment as it is currently drawn up, I beg leave to withdraw it.

Amendment 46 withdrawn.

Covid-19

Lord Bishop of St Albans Excerpts

Thursday 28th January 2021 Lords Chamber

[Baroness Evans of Bowes Park (Con) [V]]

The noble Baroness makes an eloquent case, but I have set out where we are with prioritisation. As we have said, the JCVI’s advice is clear that we should initially focus our efforts on those in care homes, health and social care workers, the elderly and the extremely vulnerable.

[The Lord Bishop of St Albans]

My Lords, the position for young people in school and education is mixed, with some students in poorer areas still not having access to online education and those in remote rural areas with not-spots simply not able to get online. Could the noble Baroness comment on the priority of trying to ensure that we move much more rapidly on the provision of broadband, particularly in those difficult areas? Secondly, we are going to have to do a big catch-up on educational standards and achievements, but it is important, at the same time, to look holistically at the spiritual, emotional and psychological work we are going to have to do with our young people. What plans are being made by Her Majesty’s Government?

[Baroness Evans of Bowes Park (Con) [V]]

The right reverend Prelate is absolutely right. While we are putting in support to help now, we recognise that the long-term damage caused by this extensive period in which young people and children have not been able to go to school is clear and significant. We have set out that we will work with parents, teachers, schools and colleges, and, I am sure, wider community representatives, to develop a longer-term plan to make sure that pupils have a chance to make up their learning over the course of the Parliament. While we of course have short-term schemes to attempt to address issues now—for instance, partnering with the UK’s leading mobile network operators to guarantee internet access and providing free data to key educational websites for disadvantaged families—there is a much longer-term issue that we want to address, and we will be doing that in partnership.

Gambling

Lord Bishop of St Albans Excerpts

Thursday 20th October 2016 Lords Chamber

Asked by

[The Lord Bishop of St Albans]

To ask Her Majesty’s Government what steps they are taking to protect those at risk of gambling-related harm.

[The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Ashton of Hyde) (Con)]

My Lords, the Government are committed to ensuring that people are protected from being harmed or exploited by gambling and that those who require treatment receive it. The industry is required to contribute towards research, education and treatment programmes to prevent gambling harm. The majority of provision for treatment is through responsible gambling trusts and the funding of organisations such as GamCare, which provides helpline and counselling services. Local treatment can also be found through GPs and NHS clinics.

[The Lord Bishop of St Albans]

I thank the Minister for his Answer. Gambling-related harm is not restricted to people with problem gambling—it affects family, it affects friends, it affects even people who work in gambling shops. I recently put in a freedom of information request to the Metropolitan Police which revealed that since 2010 there has been a 68% rise in violent crime associated with betting shops across the capital. In the light of that, will the Minister tell the House what assessment the Government have made of the link between this rapid rise in violent crime associated with betting shops and the increase in the number of fixed-odds betting terminals in those shops?

[Lord Ashton of Hyde]

Any rise in crime figures is of course concerning, and Ministers and the Gambling Commission will look at those figures closely. One of the three licensing objectives that all operators must comply with is to prevent gambling being a source of crime. On the right reverend Prelate’s specific question about the link between fixed-odds betting terminals and the rise in crime, I hesitate at the moment to draw a causal link between them in the absence of evidence on the specific means of betting. However, this is exactly the sort of evidence that should be provided to the forthcoming triennial review.

Apprenticeships: Rural Economy

Lord Bishop of St Albans Excerpts

Thursday 14th July 2016 Lords Chamber

[Baroness Evans of Bowes Park]

I am sorry: I did not hear exactly what was being said. We take careers advice extremely seriously and we are taking steps, because we are well aware that it is too patchy. We want to ensure that all young people get good careers advice. Perhaps I might speak to the noble Lord outside the Chamber where I can hear what he was saying.

[The Lord Bishop of St Albans]

My Lords, despite record numbers of graduates from agricultural colleges and some interesting rural apprenticeships, it is proving almost impossible for young farmers to get a tenancy unless it is by inheritance. What plans do Her Majesty’s Government have to offer additional support to young farmers to secure tenancies, such as the young entrants’ schemes in place in Scotland and Wales—or is there something else we could do to address this serious problem as we seek to get a new generation of farmers?

[Baroness Evans of Bowes Park]

I thank the right reverend Prelate for his question. To give him a full response, I will have to go back and write to him; I do not have the information he asked for.