Employment Rights Bill

Debate between Lord Hunt of Wirral and Lord Leong

Committee stage
Tuesday 29th April 2025 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I am very grateful to the noble Baroness, Lady Kramer, for setting out the position so clearly, but I am particularly grateful to my noble friend Lady Noakes because, as a result of her moving the key Amendment 5, we have had a remarkably positive debate about what I believe is the lifeblood of the UK economy, namely the small and medium-sized business sector. The noble Lord, Lord Londesborough, of course, is a great authority on all this, and it was good to hear from the noble Lord, Lord de Clifford, as well.

When we reflect for a moment on the speeches that have been made in this debate—apart from that of the noble Baroness, Lady Kramer—we have not had any contributions from the Government Benches. But, as my noble friend Lord Leigh of Hurley pointed out, the most important contribution will be made by someone who really does understand. The noble Lord, Lord Leong, knows all about small businesses, and I am thrilled and delighted that he is summing up the debate because he understands what so many of my colleagues have tried to point out. The noble Baroness, Lady Neville-Rolfe, said that bureaucracy can get in the way of success. Look at the amount of rules and regulations and bureaucracy.

I agreed with all my noble friends, including my noble friend Lord Ashcombe when he pleaded for a sensible and measured response. We all want to see bereavement leave—all good employers allow for bereavement leave. We want to see rights established very clearly, but my noble friend Lady Verma pointed out that if we impose them on the small and medium-sized sector in the way that my noble friend Lady Noakes outlined, three, four or five employees will suddenly have to deal with all this legislation.

Let us remind ourselves of the importance of small businesses. As several of my colleagues pointed out, at the start of last year there were 5.45 million small businesses with up to 49 employees, making up a staggering 99.2% of the total business population in the UK. We are talking about a massive sector, and therefore we have to worry and concern ourselves about the effect of the Bill. As the Federation of Small Businesses put it, in its current form the Bill risks becoming nothing short of a disaster for small and micro-businesses.

The noble Baroness from the Liberal Democrat Benches spoke about a two-tier workforce system, which those Benches object to. But as my noble friend Lady Noakes pointed out, we do in fact have tiering alive and well throughout the UK economy. It is not trying to impose one size fits all; it is recognising that over 99% of businesses in this country are small and cannot possibly cope with the burden of this Bill.

It just so happens that I already have a quotation from the noble Lord, Lord Leong, which I readily move to. We have heard from the Government on multiple occasions that they are committed to supporting SMEs and ensuring that they are not burdened with excessive costs or red tape. The noble Lord, Lord Leong, made a very important point during the passage of the Product Regulation and Metrology Bill:

“we do not want to burden SMEs with additional regulatory or financial cost”.—[Official Report, 25/11/24; col. GC 138.]

What wise words: we would love to hear those words from him again tonight. He will realise that the reality of this Bill is starkly different. The only thing this Bill seems to do for SMEs is to burden them with additional regulatory and financial costs. It is incredibly difficult to reconcile the Government’s stated intentions with the actual impact this legislation will have on small and micro-businesses across the country.

I know that my noble friend Lord Sharpe of Epsom and I have Amendment 282 in this group, but I do not want to go into it. I was taking the old Companies Act definition, and I do not need to go into all the findings of the Bolton committee and all those who have sought to define this, because I think my noble friends have done a great deal to define small and medium-sized enterprises.

We just need to know what the Government intend to do to alleviate the burden on small and micro-businesses. The impact assessment has highlighted the significant challenges that these businesses will face in implementing these reforms, and at the moment there is no adequate plan to support them.

I would like to ask the Minister these questions. First, will he please outline what the three main expected benefits of this Bill will be for small and micro-businesses? Secondly, how will the Government support small businesses in complying with the provisions of this legislation? What kind of guidance, training and resources will be made available to ensure that these businesses can navigate the new regulations without inadvertently falling foul of the law? Finally, can the Minister provide an assessment of the risk of unintentional non-compliance by small businesses? What steps are the Government taking to mitigate this risk and ensure that these businesses are not unduly penalised as a result of a lack of guidance in the legislation?

The Government have not consulted the small and medium-sized sector. If they have, can we please have a great deal more detail on what their conclusions were? If they have not consulted, will they please do so now?

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I thank all noble Lords who contributed to this group of amendments with such passion. The noble Baroness, Lady Noakes, together with the noble Lords, Lord Sharpe and Lord Hunt, tabled several amendments—Amendments 5, 124 and 282—that seek to remove micro-businesses and small and medium-sized businesses from the scope of large sections of the Bill.

Product Regulation and Metrology Bill [HL]

Debate between Lord Hunt of Wirral and Lord Leong

Report stage
Wednesday 5th March 2025 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, to echo what my noble friend Lord Lansley has just said, we are reflecting at the moment on how this country is governed and the extent to which the Executive can be held to account.

In many ways we take pride in our committees. I know from what he has said in the past about government legislation that the noble Lord, Lord Hunt of Kings Heath, has many times criticised what we describe as skeleton Bills. In effect, the Government are saying, “Please allow us to do whatever we eventually decide we would like to do, but give us that power now and we will then do it by secondary legislation”. Speaking as the immediate past Chair of the Secondary Legislation Scrutiny Committee, I always worked very closely with my colleagues in the Delegated Powers and Regulatory Reform Committee. Although my noble friend Lord Lansley said a few moments ago that the Government had introduced a number of amendments, they came back before the Delegated Powers and Regulatory Reform Committee, which said, “That’s not enough”. So, in a way, we are now deciding whether or not the Government are right to ignore the unanimous report of the Delegated Powers and Regulatory Reform Committee.

I turn to Amendments 48, 57 and 58 standing in the name of my noble friend Lord Sharpe. I commend my noble friend Lady Lawlor, and my noble friends Lord Frost, Lord Jackson of Peterborough and Lord Lansley, for all that they have said. But, to summarise, this is our last real opportunity to deal with what is in effect a skeleton Bill that allows an unacceptable transfer of power from an elected legislature to the Executive.

We welcome the amendments the Government have put forward, but let me quote from paragraph 8 of the unanimous report of 20 February from the Delegated Powers and Regulatory Reform Committee, from which I have quoted before. Having considered all the issues, it said,

“these are limited changes that do not address the fundamental concern we have about the skeletal nature of this Bill”.

There is of course provision for consultation, which is warmly to be welcomed, but the committee said,

“consultation is not a substitute for Parliamentary scrutiny”.

Surely, we as a House must agree with that.

It is not enough simply to engage stakeholders behind closed doors while sidelining proper legislative oversight. The Bill in its current form creates a dangerous precedent. This Parliament is asked to cede control over critical regulatory decisions in favour of unchecked Executive power. That is surely not how this democracy should function. If the Government are serious about ensuring transparency, accountability and proper legislative oversight, they must surely go beyond mere consultation and commit to meaningful parliamentary scrutiny at every stage of the regulatory process.

In a moment we will hear from the noble Lord, Lord Leong. Will he allow me to quote him? In Committee on 20 November, he said this:

“Some regulations will relate to very minor technical changes, so it really would be taking up too much parliamentary time for that, whereas other regulations may need a full scrutiny, and we will have avenues for that”.—[Official Report, 20/11/24; col. 39.]


What I ask is—and I hope the Minister will reply in a moment—what are those avenues exactly? The Government are yet to provide any clarity at all on how they will distinguish between so-called minor technical changes and more significant regulatory shifts. They have yet to explain why the negative procedure will apply to all subsequent provisions. If some regulations will require full scrutiny, as the Minister acknowledged, why do his Government, in this Bill, predetermine that every future provision beyond the first use of the power will require the negative procedure?

The Government cannot state for a fact that all future provisions will be technical. Markets change, technology advances and legal interpretations, as all lawyers in this House know only too well, will shift. This is precisely why proper parliamentary scrutiny must remain in place for all product and metrology regulations, as recommended by a committee of this House. If the Government concede that some regulations may need full scrutiny then it follows that the affirmative procedure should apply in all cases. Anything less simply hands Ministers a blank cheque to determine the level of scrutiny after the fact, with Parliament left powerless to insist on proper oversight.

I said that I would refer to the noble Lord, Lord Hunt of Kings Heath, because I remember what he said. I looked it up when I heard he was going to be here. He said about the Medicines and Medical Devices Bill, admittedly in 2021:

“We are increasingly seeing the use of skeleton Bills and Henry VIII clauses. We really must come to a point where we say to the Government”—


I would add any subsequent Governments—

“that we will not put up with this any longer”.—[Official Report, 12/1/21; col. 657.]

As he reflects on his words, I hope he will offer some wise advice to his good colleague.

I urge the Government to reconsider their position and accept the DPRRC’s recommendation that powers should be constrained so that product regulations and metrology regulations are, in all cases, subject to affirmative procedure scrutiny. Surely that is the very least that is required to ensure proper democratic accountability.

[Lord Leong (Lab)]

My Lords, I thank all noble Lords who have spoken. I will speak to the government amendment and respond to the debate. I thank all noble Lords who have contributed to the development of the government amendment for raising in Committee the important matter of ensuring that there is appropriate parliamentary scrutiny of regulations made under the Bill.

I will touch first on the affirmative procedure. In the light of concerns from Peers, the DPRRC and the House of Lords Constitution Committee, Amendment 55 increases the number of provisions that will be subject to the affirmative procedure to include certain types of new or novel provisions. These provisions are product regulations made in relation to online marketplaces and where requirements are imposed for the first time on any new category of actors in the market. The amendment will ensure that appropriate parliamentary scrutiny is applied to new regulatory approaches for online marketplaces, and for regulations that place duties and product requirements on new supply chain actors for the first time, while maintaining the flexibility to make timely, uncontentious technical updates to existing regulations.

However, the Government accept that making regulations for new or novel matters makes the higher level of parliamentary scrutiny more appropriate. Therefore, when product regulations made under the Bill seek to impose a requirement on a new type of supply chain actor that is not otherwise listed in Clause 2(3), the affirmative procedure will apply the first time such requirements are laid.

I turn to Amendments 48, 56, 57 and 58. I thank all noble Lords for their concerns regarding the affirmative procedure. On Amendment 48, we discussed the importance of consultation last week, particularly in relation to the Government’s statutory consultation amendment. I do not really want to repeat these arguments, apart from saying that regulations brought forward under this Bill will have been informed by consultation with key stakeholders. Specifically, on Amendment 43A, our recently published code of conduct sets out that regulations under this Bill will be subject to assessment and engagement with an appropriate range of stakeholders, including scientific evidence where appropriate.

Product Regulation and Metrology Bill [HL]

Debate between Lord Hunt of Wirral and Lord Leong

Report stage
Wednesday 26th February 2025 Lords Chamber

[Lord Leong (Lab)]

My Lords, I will try to be brief on this set of government amendments, as outlined in the Marshalled List. They are largely intended to ensure absolute clarity and that the Bill covers a number of matters raised by noble Lords in Committee. Amendments 14 and 17 make clear that the Bill’s powers are able to set requirements on how products are installed in wider systems and on the people who carry out that installation. Many products do not operate in isolation and their safety can be significantly affected by how they are installed in the wider systems. As I explained in Committee, the Bill already enables requirements to be set on the installation of products. However, I accept that absolute clarity on this matter in the Bill is helpful.

Amendment 23 covers a similar matter. The Bill covers tangible products and the risks they present. Software is now a fundamental component of many physical products and can significantly affect their risk profile. Amendment 23 makes clear that software as a component of the physical product is included.

Amendments 50 and 51 relate to the definition of online marketplaces. These amendments reflect the points raised by noble Lords in Committee and aim to ensure that marketplaces that are part of a wider platform —such as Facebook Marketplace as part of Facebook—are captured. Our use of a broad and clear definition of online marketplaces in the Bill enables new requirements to be introduced in a flexible and proportionate way via secondary legislation by using the powers provided in the Bill—for instance, by tailoring specific requirements to particular online marketplace activities or business models.

On Amendment 67, which addresses aviation, in Committee my noble friend Lord Liddle raised the question of wider products used in aviation. The Department for Transport oversees a comprehensive body of legislation that extends beyond the finished aircraft to the whole system of components that make it up. The Government have no plans to create any kind of parallel regulatory framework. This amendment therefore clarifies that, alongside the exclusion of aircraft, the Bill does not apply to component products and parts in so far as they are used or designed for use in aircraft. As an exception to this, the amendment would allow for the Bill’s powers to be used in relation to unmanned aircraft that are toys, or for radio equipment used to operate or control unmanned aircraft.

It is useful to clarify that aviation safety products are exempted from the Bill, but we are aware of questions from industry about several other areas. We will always work closely with all sectors before bringing regulations, but it is not our intention to use the powers under the Bill to regulate where there are existing comprehensive product regulatory regimes—for example, in relation to transportable pressure equipment and ships and their equipment.

I hope I have been able to provide assurance to noble Lords and I beg to move.

[Lord Hunt of Wirral (Con)]

My Lords, while the Minister recovers his breath, we will all carefully reflect on every word that he has just said but, given the speed with which he delivered that speech, I hope he will forgive me if I do not respond in detail. I shall just deal with what we believe is the overly broad current definition of an “online marketplace”, as the scope could be inadvertent. I speak to Amendments 49 and 53 on behalf of my noble friend.

The current definition of an online marketplace would inadvertently capture a number of online services not thought of as marketplaces, such as search engines, online advertisements and price comparison websites. Potentially, even further removed services, such as app stores, could be captured by this proposed definition. This risks placing disproportionate requirements on services whose functionality is not what the Bill is intended to regulate and will require careful drafting of the necessary secondary legislation to avoid confusion and potential challenges. That is not guaranteed, however, due to the extensive delegation of powers and limited oversight provided by the Bill.

This broad scope will create unnecessary regulatory burdens on businesses that were never intended to be covered by the legislation. It could also discourage innovation and investment in digital services if companies fear that they will be subject to complex and costly compliance requirements. Our amended definition would therefore capture services that are not meant to be dealt with under the Bill but is more appropriate in its scope when it comes to goods and products, giving greater context and identifying the subjects of the sellers being provided, namely consumers and third-party sellers. I hope that gives an indication to the Minister of why we feel these amendments are required.