Children’s Wellbeing and Schools Bill

Debate between Lord Nash and Baroness Bennett of Manor Castle

Tuesday 17th June 2025 Lords Chamber

[Lord Nash (Con)]

Transparency is a good start. I think it is the case, and I know there are vastly different prices charged around the country, perhaps for different reasons, property prices or whatever; but I think transparency is key. I agree with the noble Lord, Lord Addington: I think that trying to interfere in markets is generally dangerous and you generally have unintended consequences. Everybody knows that I am a career venture-capital private-equity guy, but I do know that these assets are completely out of favour.

There are a number of groups that have these assets and cannot sell them, and we are just going to run out of money, so I think the Government need to be very careful. I say that as somebody who is very concerned about this sector, and that is why I am here. I do not have any magic solutions, but I think that, if people are threatened with fines, who is going to want to run these homes? Individuals. It is something that needs to be thought about very carefully.

[Baroness Bennett of Manor Castle (GP)]

The noble Lord has just essentially agreed with what I said, that some of these entities are financially unstable and uncertain. Would the noble Lord understand, at least, the argument that it is better to bring these back? These facilities are going to have to stay open: we need them. It is better to bring them back into non-profit hands in an orderly manner rather than, if one of these private equity companies goes down, having an immediate crisis. What do the Government do then?

[Lord Nash (Con)]

The care sector is slightly different, for the reasons people have mentioned. But what are we going to do—nationalise it for nothing? Are we going to become a communist country? Are we going to pay for it, and if so, where will that money come from? Anyway, even if you deal with the ownership issue—obviously, I do not agree with the idea of nationalisation—threatening people who operate them with fines just does not seem reasonable. That is why I support the amendments on limiting fines and not applying them to natural persons, as opposed to corporations.