(2 years, 6 months ago)
Lords ChamberMy Lords, I am grateful to the two noble Baronesses for their questions. I was not clear from the contribution of the noble Baroness, Lady Merron, whether the Labour Benches are closed-minded to the future funding model of the BBC and wedded to the licence fee model. Nor was I clear from the noble Baroness, Lady Bonham-Carter, whether the Liberal Democrat Benches think the rise for licence fee payers ought to be higher.
What we have done this year and since the beginning of 2022 is, initially in 2022, agree a funding settlement with the BBC, which froze the licence fee at £159 for two years. That has already saved households £17 over this year and last. Under the terms of the settlement, the licence fee must now increase annually in line with CPI but, because of the decision we have taken to calculate this using the annual rate of CPI in September, rather than a rolling six-month period, the increase will be kept as low as possible.
In April the licence fee will therefore rise by 6.7% to £169.50 annually. That is an increase of just 88p per month, as opposed to a rise of £14.50, which would have happened under the previous way of measuring CPI using an average of the 12 months preceding September. We have done this because we recognise that household budgets remain under pressure. This decision, alongside the two-year freeze, will save individual licence fee payers more than £37 by the end of 2024. It will also ensure that the BBC is provided with more than £3.8 billion to continue to produce the world-leading content for which it is rightly renowned across this country and the world. That is a fair deal which provides value for money for the licence fee payer, while ensuring that the BBC can continue its important work and play its important role in our national life.
The BBC has made a statement about the impact of the decisions as it sees them—the noble Baroness, Lady Merron, asked about that. It is of course for the BBC to make its decisions about how it spends this £3.8 billion, but we are providing it with a significant cash uplift that will support the corporation in delivering its mission and public purpose and continue to deliver for licence fee payers.
The noble Baroness, Lady Bonham-Carter, was right to highlight the work that the BBC does across the country reporting on the lives and interests of people across these islands, as well as the important work done by the BBC World Service across the globe. That is the world’s largest international broadcaster and plays a hugely important role providing accurate and impartial news, analysis and discussion in more than 40 languages to more than 360 million people around the world every week. The Government strongly support the BBC’s mission to bring high-quality impartial news to global audiences, particularly in places where free speech and the freedom of journalists is limited. We will consider how the topics that the future funding review will explore apply to the funding arrangements of the BBC World Service and to the important work that the BBC does in broadcasting in minority languages here at home in the United Kingdom.
The next steps of the funding review will include appointing an expert panel, engaging with interested parties and commissioning research. The review will aim to report to the Secretary of State by next autumn. The findings will inform the charter review, which is where any final decisions on changing the BBC’s funding model will be made by His Majesty’s Government. Given the commercial sensitivities, the findings of the review will remain confidential until the review has concluded. Decisions about the membership of the panel will be made by Ministers, but we will ensure that the panel incorporates a broad range of views. Its role will be to provide advice and external challenge to the review, so that we can consider the best way to equip the BBC with the income it needs to continue the important work that it has done for more than a century, and that we look forward to it continuing to do in an increasingly complex media landscape. It is vital that it is able to continue doing that for the reasons the noble Baroness, Lady Bonham-Carter, highlighted about the contested news sources we see and have debated many times in your Lordships’ House.
I must disagree with the noble Lord. We want to ensure that the BBC continues to be able to do its work over the next hundred years just as brilliantly as it has over the past century. That is why we are trying to find a settlement that is fair for licence fee payers, who bear the cost at the moment, but which is also good for the BBC, sustainable for the long term, and supports the BBC in its important work.
The noble Lord drew attention to the rising cost of other service providers. He is right to do so; it highlights what a good deal people get when they pay their licence fee and get to enjoy the work of the BBC. Of course, the number of households holding a TV licence fell by 400,000 last year, and has declined by around 1.7 million since 2017. We want to ensure that the costs are not borne by an increasingly small number of people. Of course, people are consuming television, including on the BBC, in different ways. That is why it is right to look at the future funding model, to make sure that the BBC can continue to do its important work in a very different media landscape over the decades to come.
My Lords, we are regularly told that the licence fee is not a tax, but on the other hand it walks like a tax and quacks like a tax. Of course it is a very flat tax, in that it impacts enormously on people who cannot easily afford it. As the noble Lord, Lord Birt, has referred to, the BBC is coming under enormous competition from many other forms of media. Surely this settlement is quite generous, looked at in those terms.
I agree with my noble friend. We want to strike a balance that is fair to licence fee payers, who are, of course, facing pressures on the cost of living. We want to show that the BBC, like them, is having to make decisions about how it spends its money in the current climate, but also highlight the brilliant way it spends it, the important work it does and the important role it plays with the output it produces.
My Lords, I find the Minister and the Government’s position quite confusing. I declare an interest as a former deputy chair of the BBC, and commend the noble Baroness, Lady Bonham-Carter, and the noble Lord, Lord Birt, for their exposition of the real, parlous state that the BBC finds itself in.
The Minister is saying that he is supportive of the BBC’s role. We have a unique thing in the BBC; it is a jewel in the crown internationally and it provides a huge range of behind-the-scenes and in-front-of-camera services to this nation. Yet the position of this Government has been, consistently since 2010, to squeeze and squeeze the BBC harder. This is at a time when 81% of the households in this country subscribe to multiple streaming services, costing them up to £400 a year, when they are getting a bargain, even with a properly inflated licence fee payment, with the BBC.
I will ask the Minister just one question. When this review of the basis of the funding of the BBC is taking place, is the objective to make sure that the BBC will have adequate funds to do the thing that it really needs to do? That is to help reshape its already changing offering to be relevant in the modern world, both nationally and internationally, and to ensure this jewel in the crown that we have is not destroyed inadvertently by a fruitless debate about the licence fee basis of payment.
The review aims to ensure that the BBC’s funding model is fair to licence fee payers, sustainable for the long term and supports the BBC in the vital work it does, including its important role in growing our thriving creative industries. We know that, if we want the BBC to continue to succeed, we cannot freeze its income but, at the same time, we cannot ask households to pay more to support the BBC indefinitely. So, the review will look at a range of options for funding the corporation, including looking at how the BBC can increase its commercial revenues to reduce the burden on licence fee payers.
My Lords, I am not against a review of the funding model, but that is a completely different matter entirely from the long-term squeezing of funds available to the BBC—which is surely, as has just been said, the central problem. One problem should not be used as an excuse not to solve the other problem.
As we know from previous exchanges, there is the immediate decision about licence fee increases and the settlement that the Government reached with the BBC at the beginning of 2022—which saw the two-year freeze to help house- holds at the time—and the longer-term questions which are right to ask to make sure that we are funding the BBC in a sustainable way, so that it can continue to do important work in the decades to come, which are going to look very different from the BBC’s first century.
My Lords, many of us despair at the way in which the Government praise the BBC and yet constantly undermine it. In terms of future funding, is the Minister aware that your Lordships’ Select Committee looked at this and rejected a straightforward advertising funding model on the grounds that it would not provide enough funding for the BBC and would damage other public service broadcasters. It also ruled out a sponsorship funding scheme as well. Will the Government rule out those two options and accept that guaranteeing the universality of the BBC will always require some form of public funding?
I do not agree that providing the BBC with more than £3.8 billion is undermining it. That is a large amount of money for the BBC to do its important work. The noble Lord is right to draw attention to the work of your Lordships’ Communications and Digital Committee. I know that my noble friend Lady Stowell of Beeston would have liked to be here for this exchange, but the committee is on an external visit today. We will, of course, engage with her and the ideas and work of the committee. As I say, the future funding review will look at such matters as we weigh all that up and make decisions about the best way to provide the BBC with the sustainable income it needs.
My Lords, the BBC is a thriving part of a much wider creative industries sector. That sector has transformed in recent years and continues to transform. The McKinsey report on the arts sector, which came out last month, described the creative industries as now having reached a £126 billion contribution to GVA, which is exactly equivalent to the entire construction sector, with 2.5 million jobs. This is the universe in which the BBC is now swimming. The expert panel will be looking at a funding model, but is it not slightly strange to have a funding model in search of a strategy? Should not that expert panel also consider what we want the BBC to provide as a public service broadcaster, whether on news—local, regional and international—education, children’s programming and so on? I hope that the expert panel will think more on that as well, so that we do not just have £3.8 billion looking for something to do.
My noble friend is right to draw your Lordships’ attention to the excellent report done by McKinsey and published recently, which highlights the successes of our creative industries. They were growing nearly twice as quickly as the rest of the economy before the pandemic. As he knows, the Government are determined, through our Creative Industries Sector Vision, to continue to help the sector grow and thrive. He is also right that the BBC and our other public service broadcasters play an important role in the success of the creative industries. That is why, as I have said, we want to take that into account as we look at the best way to fund the BBC in the decades to come. We want the BBC to continue to succeed as a public service broadcaster long into the future, providing high-quality public service content and supporting our thriving and growing creative industries.
Will the review look at what the BBC generates for the nation, as well as what goes in? Arguably, it generates far more money than the £3.8 billion, but this cannot be reduced to just an economic debate. Will what the BBC generates in good will around the world and our standing as a nation, because of what it does, be taken into consideration?
I hope the right reverend Prelate can tell from what my right honourable friend the Secretary of State said in another place that we do appreciate the huge value that the BBC brings to viewers and listeners across the country, as it has done for more than a century. It is because we value it that we want to ensure that it is able to survive in decades to come. We are also looking at how we can support the BBC in that fast-changing broadcasting landscape. We have more than doubled the borrowing limit of the BBC’s commercial arm to enable it to access private finance, so that it can pursue an ambitious commercial growth strategy of its own, which of course will have an important impact on boosting investment in the creative economy of the whole UK.
The Minister has explained that at the centre of the financial arrangements which he has described is the concept of fairness. If we consider fairness in respect of licence fee payers and in respect of the BBC, we are really talking about apples and pears. Could the Minister explain how the Government balance fairness to the licence fee payer with fairness to the BBC? It seems that there may be a bit of a risk that we end up with a solution that is rather fairer to one side than the other.
That thorny question is one for the future funding review, but it is important. We want to ensure that the BBC has a sustainable income, but also that the sources of that are fair. I have pointed already to the declining number of people who are paying for a licence fee and the declining number who watch television live. Funding models which are predicated on some of those conceptions of the past will look increasingly anachronistic as we move into the BBC’s next century. We have also seen licence fee evasion rising, so it is right that we look at this to make sure that we are coming up with a good answer to the difficult question that the noble Lord poses.
My Lords, have the Government looked at models of public service broadcasting in comparable countries in terms of both international and domestic activities? In the United States, France and Germany the international dimension of Voice of America and so on is publicly funded, but here the international dimension of the BBC has been financially squeezed by the Government in recent years, which is a disaster for British foreign policy.
In France, Germany and the Netherlands the domestic side is also substantially publicly funded, while in the US it is not; it is given over to commercial interests. The Minister will be as painfully aware as the rest of us of the destructive impact that has had on maintaining a national dialogue at the centre of democratic politics in the US; instead, it encourages culture wars. There are powerful commercial interests in this country—the Murdoch press more than anything else—that would very much like to see that happening here, and it is not at all clear that all members of the Conservative Government are still committed to the principle of public service broadcasting.
Can the Minister, as a One Nation Tory and not a member of any of the “five families” on the right, say that he, at least, is committed to the principle of public service broadcasting, which implies a broadcaster that one can trust—the BBC comes out high on public trust in all public opinion polls—and a substantial chunk of public funding?
The whole of the Government are committed to the BBC’s important role as a public service broadcaster. My right honourable friend in her Statement in another place rightly called the BBC “a great British institution” that
“plays a vital role in our culture and creative economy”.—[Official Report, Commons, 7/12/23; col. 514.]
As we look at future funding options, we will look at how public service broadcasting is delivered in other countries, both the ways in which that is done and the pros and cons of those models.
The noble Lord is right to highlight that the BBC plays its role in a globally exceptional way. I have already talked about the more than 360 million people who tune into and rely on the BBC World Service for impartial news and analysis. We should be very proud that it is our national broadcaster that people across the world tune into, and we want to ensure that it is sustainably funded for many decades to come.
When considering the financing of the BBC, will my noble friend clearly bear in mind all the issues that have been raised by noble Lords across the House concerning its importance worldwide and its contribution to society in general? However, what concerns me is that the BBC has not looked deeply into other areas to see what can be brought under control. I have typed “apple crumble recipes” on my phone. The first four entries come from the BBC. Why on earth, when the BBC should be providing services worldwide in multilingual circumstances, are we confronted by an organisation that provides food recipes to anyone who wants them and who can get them for free from other sites as well?
I did not know there were so many ways to make an apple crumble, but I am sure my noble friend’s was delicious, however he made it. He is right. The BBC is getting more than £3.8 billion, which is a large amount of money, for it to continue to do the important work that it does. It is up to the BBC to decide how it spends its money, but it is right that it makes sure that it is doing so in a way that would delight all licence fee payers.
My Lords, I hate to intervene twice—I know it is against the rules and the noble Lord, Lord Harlech, will tell me that I cannot—but I think I am right in saying, and the noble Lord, Lord Birt, will be able to confirm this, that the BBC’s recipes are an entirely commercial venture and are no longer funded from the licence fee.
I have indeed pointed to the extra freedom that the Government have given the BBC to pursue its commercial income, so that it can continue to do its excellent work and be funded in a sustainable way that is fair to licence fee payers, viewers, listeners and indeed bakers.
My Lords, given that a full-scale rebellion is under way against my noble friend Lord Harlech’s—
(2 years, 6 months ago)
Lords ChamberTo ask His Majesty’s Government whether they intend to take steps to improve support for classical music, particularly for orchestras and opera companies.
My Lords, opera, orchestras and classical music enrich our lives. Through its investment programme, Arts Council England is spending almost £60 million per year on classical music and opera. More opera organisations are being funded than previously, and support for orchestral organisations has increased in both number and value, with nearly two dozen sharing over £21 million a year. We have also extended the higher rate of cultural tax reliefs, including orchestra tax relief.
My Lords, many of us will no doubt have had recent listening experiences which give us hope that there is a future for classical music in this country. But will the Minister accept that this excellence does not describe the wider narrative of declining educational opportunities and funding cuts, which have led inevitably to a necessarily costlier art form being under considerable threat wherever it is located? Among numerous concerns, can a way can be found to retain orchestra tax relief claims on EEA expenditure as, on top of Brexit, this may otherwise prove disastrous for touring in Europe?
Since it was introduced in 2016, £75 million has been paid out through orchestra tax relief. We have extended it at the headline rates for another two years and are grateful to the Association of British Orchestras and many others who have joined the consultation since that was announced in the Budget. Since our departure from the EU, we are of course bringing our tax reliefs in line with World Trade Organization rules. I am grateful for the collaboration we have had. We have made changes on connected party transactions and the going concern rule, and we are keen to continue discussion with orchestras to ensure that they know that only 10% of orchestral output needs to be produced in this country; they will still be able to tour around the world, so that people overseas as well as here may enjoy their brilliant work.
My Lords, I wonder whether the Minister will reflect, along with the Arts Council, on the situation in the north of England. With the move of English National Opera to Manchester, the Hallé Orchestra being in Manchester and the Liverpool Philharmonic patently being in Liverpool, east of the Pennines is somewhat bereft of a critical mass, which can be absolutely crucial in encouraging young people to come forward into this critical cultural area. Perhaps the Minister will talk to the Arts Council about this.
Well, I have had the pleasure of hearing both the Royal Liverpool Philharmonic and the Hallé perform. Of course, as the noble Lord may know, English National Opera has this week announced its intention to base itself in Greater Manchester, as well as continuing its season at the London Coliseum. It is doing so partly because of the great strength of classical music across the north-west of England. The Arts Council, of course, is spending its money more equitably across the country. More organisations are being funded than ever before in more parts of the country, and we want to see people wherever they live benefiting from world-class cultural and artistic output.
My Lords, my noble friend will know that orchestras need a strong pipeline of talent. This will be achieved only when high-quality music education is available for all across all the country, and particularly those with potential. The national plan for music education, which I chaired, will help—when it is finally implemented. Many schools and music teachers are already doing remarkable work, but they would certainly welcome some encouragement. When can we expect to see senior members of government cheering our brilliant orchestras, choirs and young musicians from the front rows of our concert halls, and in schools?
I am delighted to tell my noble friend that last night, while some of us were voting on four regret amendments, our right honourable friend the Chancellor was at the Royal Festival Hall enjoying the London Philharmonic Orchestra performing Beethoven’s “Emperor” Concerto and Rimsky-Korsakov’s “Scheherazade”, which he tells me was a fantastic production. So, I hope that my noble friend will be glad to hear that members of His Majesty’s Government do go and enjoy the output of our world-class orchestras. I commend her for the work she did on the national plan for music education, which will ensure that more people from this country are able to forge careers and continue producing that wonderful output which makes us all very proud.
My Lords, anyone who has heard the annual performance of “Messiah” by the Halifax Choral Society, with the Black Dyke Mills Band and orchestra, will know that we are not entirely without some high-quality music in Yorkshire. The classical music industry is a net surplus invisible exporter for this country, and it is absolutely vital that we keep supporting it. I declare an interest as a former chair of Voces8, which spends quite a lot of time touring on the continent and in North America. Are the Government now within sight of getting rid of these bilateral arrangements, which do not really provide for orchestras and others to do proper tours of the continent—all the way from school orchestras such as the London Schools Symphony Orchestra, which is superb, to classical orchestras as such?
We are tripling funding for the Music Export Growth Scheme to more than £3 million over the next two years, which will enable more touring artists to break into new international markets. We are also expanding our Export Support Service to further help creative exporters, including touring musicians. We want our musicians to tour the world so that their work can be enjoyed overseas, just as it is here in the UK—including in Yorkshire.
May I ask the Minister to comment at a more grass-roots level? In the last few months, we have lost the Dartington summer festival, which is educational as well; we have lost Oxford Brookes University teaching music; and we have lost a lot of the Cheltenham Festivals’ work. I declare my interest as an ex-director of the Cheltenham international festival of music. I was there for 10 years and commissioned works—more than 100—as my successors continue to do. Not only are we losing this commissioning opportunity, which is so important for young composers, but local audiences in places that identify as being under-resourced in music are losing out.
On a recent visit to Devon, I had the opportunity to meet the new chief executive of Dartington Trust. The noble Lord is right to point to the brilliant work done by Cheltenham Festivals in his time and subsequently. Arts Council England has maintained its level of funding for Cheltenham Festivals at £217,000 per year, but I would be very happy to meet people from Cheltenham Festivals as well as others.
The Minister will be aware that opera and classical music still suffer from a quite widespread perception that they are not for anything other than a very small audience. This makes fundraising extremely difficult for small organisations such as OperaUpClose, with which I declare a personal connection, which are trying to take high-quality music and opera into communities where they are not generally available and to engage them in that work. By the way, they are also commissioning young composers. Can the Government encourage a better fundraising environment for those companies, particularly by encouraging, for example, match-funding schemes such as the Big Give, which closed this week?
I congratulate OperaUpClose, which is one of the new operatic organisations that have joined the Arts Council national portfolio. I met another, Pegasus Opera, which is doing great work as well in encouraging new audiences and new compositions so that opera can continue to be a rich art form that people of all backgrounds get to enjoy. The noble Baroness is right that private philanthropy as well as public subsidy plays an important part. My right honourable friend the Secretary of State and I have had meetings with arts organisations and funding bodies to look at ways in which we might be able to create further incentives for giving. But I hope that people will be able to leverage their part in the national portfolio through the Arts Council—not just to spend the public subsidy that is given but also to be part of that network, which they now are.
My Lords, leaving aside the extreme concern that the Chancellor is favouring EU composers over British composers—I hope that nobody tells the Prime Minister that—may I ask my noble friend what he is doing to increase diversity in classical music? Will he join me in congratulating the Chineke! Orchestra on its success and all it has done to increase diversity in our orchestras, and perhaps illuminate us regarding the discussions he has had with the Arts Council to continue this impressive progress?
The Arts Council did a very valuable study on diversity in classical music—diversity in every form. As I say, companies such as Pegasus Opera are doing important work in bringing people from diverse backgrounds into art forms that we can all enjoy, as are the Chineke! Orchestra and many others. Through its new national portfolio, the Arts Council is investing in more companies and organisations in more parts of the country than ever before, including those led by a more diverse range of people.
(2 years, 7 months ago)
Lords ChamberThat the draft Order laid before the House on 11 September be approved. Considered in Grand Committee on 24 October.
(2 years, 7 months ago)
Grand CommitteeThat the Grand Committee do consider the Dormant Assets (Distribution of Money) (England) Order 2023.
My Lords, I am pleased to move this order, which was laid before the House in draft on 11 September. The order names community wealth funds as a cause to receive dormant assets money, in addition to the existing three causes in the dormant assets scheme: youth, financial inclusion and social investment wholesalers.
To explain why the order is being made and a new cause is being included in the scheme, it may be helpful if I outline the background. Led by the financial services industry and backed by the Government, the dormant assets scheme is a brilliant example of what can be achieved when the public and private sectors come together to address some of the biggest challenges facing people in this country. The scheme’s priority is always to ensure that customers are protected and able to reclaim what they are owed. Where the asset owner cannot be found, the scheme has allowed hundreds of millions of pounds that have been lying idle to be used to support important social and environmental causes across the UK.
Since it began over a decade ago, the scheme has unlocked almost £1 billion to be spent across the United Kingdom. In England, this has sought to address the barriers that young people from deprived and disadvantaged backgrounds face when trying to gain employment. I am pleased to say that over 22,000 young people across the country have been supported to find meaningful work, thanks to the scheme. It has also supported 150,000 people with no-interest loans totalling over £150 million. This has kept honest and hard-working people out of the clutches of dangerous and manipulative loan sharks and saved them over £50 million in interest payments, ensuring that those who are financially excluded are given a hand up to get back on track.
The scheme has also helped to scale up the social investment market by more than tenfold, giving 5,000 organisations such as charities and social enterprises the investment needed to ensure they can continue to serve the communities and people who need it most. Soon dormant assets funding will also be about supporting communities across the country, placing decision-making into the hands of local residents to enable them to invest in what matters most to them and in a way that works best for their community.
Last year, I had the pleasure of leading what is now the Dormant Assets Act through your Lordships’ House in its final stages. It is thanks to the passage of this legislation that the Government were able to give people and participants in the scheme a voice in deciding how we should use dormant assets funding in England. Last year’s public consultation made it clear that the scheme enjoys widespread support from the public, and it is wonderful to see how this unique policy is bringing people and organisations together.
This order makes good on the Government’s commitment that the scheme will support the four causes that people told us matter most to them. By supporting youth, financial inclusion and education, social investment wholesalers and community wealth funds, we can ensure that the scheme is capable of delivering meaningful change for the next decade and beyond, providing support for those who need it most across the country. I commend the order to the Grand Committee and beg to move.
My Lords, I thank the Minister for presenting this instrument, which is subject to affirmative approval. I declare an interest as a member of your Lordships’ Secondary Legislation Scrutiny Committee.
I welcome the use of dormant funds, particularly being ploughed back into local communities for the benefit of those communities. When I was a Minister in the Northern Ireland Executive several years ago, we set up an arrangement for dormant funds there. It took about 12 years to be realised for investment in local communities, but there is no doubt that they provide that added resource when other resources may not be available to underpin community initiatives.
Thanks to the pioneering investment of dormant assets over the last decade and the work of organisations such as Big Society Capital, Access—the Foundation for Social Investment—and many others, social investment in the UK has grown more than tenfold in 10 years, with £9.4 billion invested into charities and social enterprises. This includes £1.8 billion committed to social enterprises and charities in 2022 alone, which has gone into over 1,310 projects delivering measurable social impact such as affordable homes, community food banks and tech start-ups tackling mental health.
There is no doubt, and we have all seen examples, that social investment has had a transformative effect on communities most in need. Around 43% of social investment deals have gone to levelling up priority 1 areas. Perhaps that is one area where levelling up has worked. But the next wave of dormant assets—I think the Minister was referring to that in talking about the initial legislation and this subsequent legislation on community wealth funds—will build on these foundations and take social investment further. A group of leading social enterprise, voluntary sector and social investment organisations have mapped out a plan for how best to do it. Known as the community enterprise growth plan, it proposes using dormant assets to deliver three proven interventions. Only yesterday, I talked to one of those organisations, and they have exciting initiatives for local communities through the investment of this resource.
There is no doubt that this plan has a number of benefits. It is a proposal to create jobs, boost growth and address regional inequalities, targeting communities affected by long-term economic decline. The plan uses existing systems, which would allow capital to begin flowing quickly and deliver results. Crucially, through social investment, the money invested is repaid and recycled, enabling funds to be used again and again to grow future support.
I am well aware that the Minister brought the initial legislation through your Lordships’ House, but I would like to be assured, as I am sure other noble Lords present would, that the dormant assets fund can continue into perpetuity for whatever that perpetuity means, because it brings much-needed benefits alongside government and other community resources. I would like to see it continue and to receive assurances to that effect.
My Lords, like everybody else, I am grateful to the Minister for the way in which he introduced this. It is a short SI. That has not stopped noble Lords this afternoon asking a plenitude of questions, but all of them are highly relevant. Many of them are repeats from when we discussed the Bill back in 2021-22, but they are nevertheless highly relevant today.
This is of huge importance to community organisations and individuals who will benefit from the funding. I thought that the testimony of the noble Baroness, Lady Ritchie, was very good on that point because she gave very good examples of the benefits of using the funds in the way in which they are used. I am sure that the Minister will fondly remember his many hours taking the Bill through the House; I have a feeling that it was his first Committee, and he did it very well and with tact and skill.
During the passage of the Bill, we had a lot of discussion about the potential inclusion of community wealth funds as beneficiaries of the dormant asset moneys. In the best tradition of the Lords, there was cross-party support, including in particular from the noble Lord, Lord Hodgson of Astley Abbotts, the now-retired Bishop of Newcastle, and, speaking on her behalf, the right reverend Prelate the Bishop of Ely. That collaboration gave rise, as I recall, to an amendment that many of us signed, which led to a shift in the position of the Government. It was initially resisted by the Minister, who stressed that
“current evidence for community wealth funds, as well as concrete designs for how they would operate, are relatively sparse”.
He did, however, go on to say that
“there is more work to be done in this area before a commitment can firmly be made”. [Official Report, 16/11/21; col. 177.]
In a refreshing break from tradition, the Government have followed through with their promise. I congratulate them on that, because it is a very important and significant one.
Based on the outcomes of their consultation, which saw 71% of respondents agree or strongly agree that community wealth funds should be included as a cause for dormant assets, they have rightly included them on the list in this instrument. This is, without doubt, a very exciting time for those involved in the creation and scaling up of community wealth funds. However, the Minister will know that some in the sector are concerned by the direction indicated in the recent technical consultation document published jointly by DCMS and DLUHC. We understand the need to build the evidence base for community wealth funds. Limiting their work to smaller towns of fewer than 20,000 people appears counterintuitive to us—I will not say counterproductive. Some of the most deprived areas across our country have populations larger than 20,000, yet for a variety of reasons they lack the type of social infrastructure that these funds could provide. The noble Lord, Lord Hodgson, gave a very good case example of where that sort of community capacity can be missing.
Yes, we need to build the evidence base for community wealth funds over time, but I hope the department will consider whether this rather arbitrary threshold is wise. If the pilots are run in the wrong areas or to the wrong criteria, we may never see an accurate picture of the role these funds can play in improving communities and people’s lives and livelihoods. Will the department reflect further on this? This design principle is not even subject to consultation, and I think that needs to be given some urgent thought. At the least, we would like to see the Minister prepared to welcome views on the point and the issue.
While we are glad that community wealth funds have been named as a cause, we are equally pleased to see the existing three causes keep their place in the list. Dormant assets have funded a variety of important services for young people and those with debt or financial inclusion issues, which the Minister referenced. It is vital that their work is able to continue, particularly at a time where our economy continues to struggle and inflation remains a problem for people up and down the country. The Minister will be familiar with the work of organisations such as Big Society Capital, Local Trust and so on, that fall under the third category on the list. As I am sure the Minister is well aware, Big Society Capital has come up with a community enterprise growth plan, which aims to put dormant asset funds to even better use by leveraging additional private capital and multiply the impact that the initial investment generates. While I understand that the Minister will not be able to announce individual allocations today, will he commit to looking closely at least at that plan?
Some questions will remain over elements of the Government’s approach, but we are generally pleased to support this SI. As I have already noted, there is cross-party support for the scheme, and we should harness that energy. At the same time, there are legitimate concerns over particular aspects of the policy. Ministers like to talk about levelling up but, despite the fantastic work of social enterprises across the country, it is not clear that we are yet seeing it on the ground. With that in mind, I hope the Minster can commit to further discussions in the months to come.
For me, the dormant assets scheme is an original great Labour success story. It started in 2008 and was authored by Gordon Brown. The current Government have taken it a stage further and broadened the range of options for paying into that fund. It has put millions of pounds to good use around the country. We are happy to support the expansion of the asset categories through the 2022 Act. Once the finer details have been ironed out, we hope that even more will soon go to good causes.
A number of questions that colleagues asked were particularly important, such as on additionality. Ensuring the restoration of money to the right place is important. The size of the reserve fund seems questionable. We must ensure that we get the right distribution of funds and that they deliver additionality, rather than just paying for things that would otherwise be paid for by government programmes through local government.
This has been an impressive and useful debate. I hope this is an issue that we can keep at the forefront of the House’s consideration. Perhaps we could return to the point about monitoring and analysing the impact at some stage in some form or other. It might be the sort of thing that could be the subject of a Lords’ report, because this is an exciting opportunity. It is all about building capacity, providing opportunities and getting funds to communities that most require them.
I certainly agree with the noble Lord, Lord Bassam of Brighton, that this has been an important and useful debate. I am very grateful to all noble Lords who have contributed to it. I am grateful to the noble Baroness, Lady Ritchie of Downpatrick, and her fellow members of the Joint Committee on Statutory Instruments for the work they have done in this regard. I reassure her that we do indeed want this scheme to continue long into the future. The expansion of the dormant assets scheme is expected to unlock a further £738 million for England alongside the almost £1 billion which has already been unlocked, as I mentioned in my opening contribution. We are committed to ensuring the success of this expansion so that ample funding can be distributed across the four causes. That is what the primary legislation—the 2022 Act—and the secondary legislation intend to promote and protect.
I can also reassure the noble Lords, Lord Davies of Brixton and Lord Addington, and other noble Lords who underlined the importance of the additionality principle that it will be adhered to. Ensuring additionality is an essential criterion of the dormant assets scheme. The Government are committed to ensuring that a community wealth fund is designed and delivered in a way which does not replace or undercut central or local government funding. We specifically sought views on how to embed the principle of additionality in the design of a community wealth fund in the technical consultation, which closed on 19 October and which we are working our way through at the moment. That will include ensuring that any interventions provided to communities to support their decision-making will exclude statutory duties. We will work with the National Lottery Community Fund as the main distributor. Lottery funds are also subject to the additionality principle, so the National Lottery Community Fund already has its own policies and practices in place to maintain that important principle.
The noble Lord, Lord Davies, asked about the pensions dashboard. Ensuring that efforts are made to reunite dormant assets funding with its rightful owner remains the first priority of the scheme. A number of ongoing initiatives are aimed at preventing pension assets reaching dormancy, including pensions dashboards, which will enable people to access their information online, securely and all in one place.
(2 years, 7 months ago)
Lords ChamberI am very grateful to my noble friend Lord Harrington of Watford for introducing his Bill so clearly and, indeed, for the work that he, his fellow trustees, and all the Royal Albert Hall’s staff and supporters do to protect and champion this cherished institution.
Noble Lords have highlighted many ways in which the hall has played an important part in their lives, and in the life of our nation. I know that if my noble friend Lord Lexden had been a participant in the debate, rather than being on the Woolsack for the previous hour of it, he would have mentioned the many historic events to which it has played host. For many years, the Conservative Women’s Organisation held packed-out meetings there. Winston Churchill spoke there on 30 occasions; the first was as a member of the Liberal Government in 1909. The noble Baroness, Lady Barker, may be dismayed to hear that his 10,000-strong audience were all men, the Liberal Party having banned women for fear that suffragettes might interrupt and campaign for votes for women. But, reflecting the long-standing and important neutrality of the hall, it had in fact played host to a meeting of the Women’s Social and Political Union the evening before, some members of which attempted to hide overnight in order to disrupt the meeting. Sadly, they were discovered in the small hours.
As Minister for Arts and Heritage, I have the pleasure of visiting the hall very regularly, from the Proms to the Olivier Awards, and most recently on Monday evening for a delightful concert hosted by Classic FM Live. Like other noble Lords, I would not hesitate to call the hall a true icon in our cultural life. It is for this reason I am not surprised to see so many noble Lords taking an interest in this Bill and in the governance of the hall.
As noble Lords will know, in relation to private Bills, the Government do not generally adopt a position unless the Bill contains provisions which are considered to be contrary to public policy. We take the view that the Bill does not contain any such provisions; therefore, as is the usual form with private Bills, the Government neither support nor oppose it.
Noble Lords have taken the opportunity to ask a number of questions. The noble Viscount, Lord Chandos, referred to what he called cuts by the Arts Council. As he will recall from the excellent debate we had at his instigation earlier this year, the amount distributed by the Arts Council in the new portfolio is higher than in the previous one. It benefits from an additional £43 million of grant in aid secured by my department at the spending review. Thanks to that, and increases from the National Lottery—
The cuts in real terms since 2010 of the Arts Council’s grant in aid are, I believe, about 40%.
Thanks to increases from the National Lottery as well, the Arts Council is spending £30 million a year additionally in this portfolio than in the last. The challenges of inflation certainly do beset many cultural institutions, and I speak to them about it, but I did want to correct what the noble Viscount said there.
More pertinently, the noble Viscount mentioned the decisions by previous Attorneys-General not to refer the matter to the tribunal. I cannot speak for decisions made by previous Attorneys-General, but the Attorney-General, as parens patriae, is the constitutional defender of charity and charitable property. She is required to prepare a report for the other place on certain private Bills affecting charitable interests. If she is asked to report on this Bill in another place, she will of course make her views known.
My noble friend Lady Stowell of Beeston and others referred to the loan which the Royal Albert Hall got through the unprecedented culture recovery fund. That £1.5 billion of funding provided assistance to more than 5,000 cultural institutions across the country during the challenging period of the pandemic. It was emergency support to help them through those difficult months, and no conditions were imposed upon it other than to make sure that where there were loans, they would be repaid. It was not designed as an instrument of wider policy, but as an instrument of assistance to organisations that needed it.
Other noble Lords have—
I wonder whether the Minister would agree with me on this point. All that he said about that loan is absolutely true, and the loan is repayable, I believe, at 2%. Does he not understand the point that some of us are trying to make that, for a member of the council of the Royal Albert Hall, which has to take decisions about the repayment of that loan, it is also possible for that same person to be the owner of a business which is conducted within the Royal Albert Hall, and that therefore they might well take the view that paying back to the Government at a low rate of 2% is better than having to pay back other loans at a higher rate? Therefore, what is actually happening is that something that was proposed for a particular public institution is actually benefiting private companies in a way that was not envisaged.
The cultural recovery fund assisted more than 5,000 organisations across the country of different sizes, constitutions and setups. Some were given grants, while others were given loans, as the noble Baroness said, at a favourable rate to try to assist them at a time when the pandemic made the running of those businesses difficult. Where there are loans, the Government are clear that they must be repaid, but it is for institutions to make the decisions about how they run themselves in the light of that.
Noble Lords took the opportunity to raise a number of broader issues, which I am sure my noble friend Lord Harrington will want to reflect on when he concludes in a moment. Indeed, he may wish to reflect on them as the Bill proceeds to the Private Bill Committee.
(2 years, 8 months ago)
Lords ChamberThat this House do not insist on its Amendment 17 and do agree with the Commons in their Amendments 17A and 17B in lieu.
My Lords, I beg to move Motion A and, with the leave of the House, I shall also speak to Motions B to H.
I am pleased to say that the amendments made in your Lordships’ House to strengthen the Bill’s provisions were accepted in another place. His Majesty’s Government presented a number of amendments in lieu of changes proposed by noble Lords, which are before your Lordships today.
I am grateful to my noble friend Lady Morgan of Cotes for her continued engagement on the issue of small but high-risk platforms. The Government were happy to accept her proposed changes to the rules for determining the conditions that establish which services will be designated as category 1 or 2B services. In making the regulations, the Secretary of State will now have the discretion to decide whether to set a threshold based on either the number of users or the functionalities offered, or on both factors. Previously, the threshold had to be based on a combination of both.
It remains the expectation that services will be designated as category 1 services only where it is appropriate to do so, to ensure that the regime remains proportionate. We do not, for example, expect to apply these duties to large companies with very limited functionalities. This change, however, provides greater flexibility to bring smaller services with particular functionalities into scope of category 1 duties, should it be necessary to do so. As a result of this amendment, we have also made a small change to Clause 98—the emerging services list—to ensure that it makes operational sense. Before my noble friend’s amendment, a service would be placed on the emerging services list if it met the functionality condition and 75% of the user number threshold. Under the clause as amended, a service could be designated as category 1 without meeting both a functionality and a user condition. Without this change, Ofcom would, in such an instance, be required to list only services which meet the 75% condition.
We have heard from both Houses about the importance of ensuring that technology platforms are held to account for the impact of their design choices on children’s safety. We agree and the amendments we proposed in another place make it absolutely clear that providers must assess the impact of their design choices on the risk of harm to children, and that they deliver robust protections for children on all areas of their service. I thank in particular the noble Baroness, Lady Kidron, the noble Lords, Lord Stevenson of Balmacara and Lord Clement-Jones, my noble friend Lady Harding of Winscombe and the right reverend Prelate the Bishop of Oxford for their hard work to find an acceptable way forward. I also thank Sir Jeremy Wright MP for his helpful contributions to this endeavour.
Noble Lords will remember that an amendment from the noble Baroness, Lady Merron, sought to require the Secretary of State to review certain offences relating to animals and, depending on the outcome of that review, to list these as priority offences. To accelerate protections in this important area, the Government have tabled an amendment in lieu listing Section 4(1) of the Animal Welfare Act 2006 as a priority offence. This will mean that users can be protected from animal torture material more swiftly. Officials at the Department for Environment, Food and Rural Affairs have worked closely with the RSPCA and are confident that the Section 4 offence, unnecessary suffering of an animal, will capture a broad swathe of illegal activity. Adding this offence to Schedule 7 will also mean that linked inchoate offences, such as encouraging or assisting this behaviour, are captured by the illegal content duties. I am grateful to the noble Baroness for raising this matter, for her discussions on them with my noble friend Lord Camrose and for her support for the amendment we are making in lieu.
To ensure the speedy implementation of the Bill’s regime, we have added Clauses 116 to 118, which relate to the disclosure of information by Ofcom, and Clauses 170 and 171, which relate to super-complaints, to the provisions to be commenced immediately on Royal Assent. These changes will allow Ofcom and the Government to hold the necessary consultations as quickly as possible after Royal Assent. As noble Lords know, the intention of the Bill is to make the UK the safest place in the world to be online, particularly for children. I firmly believe that the Bill before your Lordships today will do that, strengthened by the changes made in this House and by the collaborative approach that has been shown, not just in all quarters of this Chamber but between both Houses of Parliament. I beg to move.
My Lords, I thank the Minister very warmly for his introduction today. I shall speak in support of Motions A to H inclusive. Yes, I am very glad that we have agreement at this final milestone of the Bill before Royal Assent. I pay tribute to the Minister and his colleagues, to the Secretary of State, to the noble Baronesses, Lady Morgan, Lady Kidron and Lady Merron, who have brought us to this point with their persistence over issues such as functionalities, categorisation and animal cruelty.
This is not the time for rehearsing any reservations about the Bill. The Bill must succeed and implementation must take place swiftly. So, with many thanks to the very many, both inside and outside this House, who have worked so hard on the Bill for such a long period, we on these Benches wish the Bill every possible success. He is in his place, so I can say that it is over to the noble Lord, Lord Grade, and his colleagues at Ofcom, in whom we all have a great deal of confidence.
My Lords, I too thank the Minister for his swift and concise introduction, which very carefully covered the ground without raising any issues that we have to respond to directly. I am grateful for that as well.
The noble Lord, Lord Clement-Jones, was his usual self. The only thing that I missed, of course, was the quotation that I was sure he was going to give from the pre-legislative scrutiny report on the Bill, which has been his constant prompt. I also think that the noble Baroness, Lady Finlay, was very right to remind us of those outside the House who we must remember as we reach the end of this stage.
Strangely, although we are at the momentous point of allowing this Bill to go forward for Royal Assent, I find that there is actually very little that needs to be said. In fact, everything has been said by many people over the period; trying to make any additional points would be meretricious persiflage. So I will make two brief points to wind up this debate.
First, is it not odd to reflect on the fact that this historic Parliament, with all our archaic rules and traditions, has the capacity to deal with a Bill that is regulating a technology which most of us have difficulty in comprehending, let alone keeping up with? However, we have done a very good job and, as a result, I echo the words that have already been said; I think the internet will now be a much safer place for children to enjoy and explore, and the public interest will be well served by this Bill, even though we accept that it is likely to only be the first of a number of Bills that will be needed in the years to come.
Secondly, I have been reflecting on the offer I made to the Government at Second Reading, challenging them to work together with the whole House to get the best Bill that we could out of what the Commons had presented to us. That of course could have turned out to be a slightly pointless gesture if nobody had responded positively—but they did. I particularly thank the Minister and the Bill team for rising to the challenge. There were problems initially, but we got there in the end.
More widely, there was, I know, a worry that committing to working together would actually stifle debate and somehow limit our crucial role of scrutiny. But actually I think it had the opposite effect. Some of the debates we had in Committee, from across the House, were of the highest standard, and opened up issues which needed to be resolved. People listened to each other and responded as the debate progressed. The discussion extended to the other place. It is very good to see Sir Jeremy Wright here; he has played a considerable role in resolving the final points.
It will not work for all Bills, but if the politics can be ignored, or at least put aside, it seems to make it easier to get at the issues that need to be debated in the round. In suggesting this approach, I think we may have found a way of getting the best out of our House —something that does not always occur. I hope that lesson can be listened to by all groups and parties.
For myself, participating in this Bill and the pre-legislative scrutiny committee which preceded it has been a terrific experience. Sadly, a lot of people who contributed to our discussions over that period cannot be here today, but I hope they read this speech in Hansard, because I want to end by thanking them, and those here today, for being part of this whole process. We support the amendments before the House today and wish good luck to the noble Lord, Lord Grade.
My Lords, I am very conscious that this is not the end of the road. As noble Lords have rightly pointed out in wishing the Bill well, attention now moves very swiftly to Ofcom, under the able chairmanship of the noble Lord, Lord Grade of Yarmouth, who has participated, albeit silently, in our proceedings before, and to the team of officials who stand ready to implement this swiftly. The Bill benefited from pre-legislative scrutiny. A number of noble Lords who have spoken throughout our deliberations took part in the Joint Committee of both Houses which did that. It will also benefit from post-legislative scrutiny, through the Secretary of State’s review, which will take place between two and five years after Royal Assent. I know that the noble Lords who have worked so hard on this Bill for many years will be watching it closely as it becomes an Act of Parliament, to ensure that it delivers what we all want it to.
The noble Lord, Lord Stevenson, reminded us of the challenge he set us at Second Reading: to minimise the votes in dissent and to deliver this Bill without pushing anything to ping-pong. I think I was not the only one in the Chamber who was sceptical about our ability to do so, but it is thanks to the collaborative approach and the tone that he has set that we have been able to do that. That is a credit to everybody involved.
That this House do not insist on its Amendment 20, to which the Commons have disagreed for their Reason 20A.
That this House do not insist on its Amendment 22, to which the Commons have disagreed for their Reason 22A.
That this House do not insist on its Amendment 81 and do agree with the Commons in their Amendments 81A, 81B and 81C in lieu.
That this House do not insist on its Amendment 148 and do agree with the Commons in their Amendment 148A in lieu.
That this House do agree with the Commons in their Amendment 182A.
That this House do agree with the Commons in their Amendments 349A and 349B.
That this House do agree with the Commons in their Amendments 391A and 391B.
(2 years, 9 months ago)
Lords ChamberTo ask His Majesty’s Government what assessment they have made of the recent decisions by the governments of (1) Victoria, Australia, and (2) Alberta, Canada, to withdraw from bids to host the Commonwealth Games in 2026 and 2030.
My Lords, His Majesty’s Government recognise the great value of major sporting events such as the Commonwealth Games, particularly with the United Kingdom having hosted the Games twice in the past decade. Last year’s Games in Birmingham demonstrated the power of sport in bringing people together and building a foundation for a wide-ranging legacy that will deliver benefits for many years to come. We therefore urge the Commonwealth Games Federation to work towards a sustainable resolution for 2026 and 2030.
I thank the Government very much for their urgency in trying to ensure that we find a solution: I hope that we see that in the weeks and months to come. The Commonwealth Games are a fabulous exhibition of the benefit of the Commonwealth and the coming together of many nations from right across the globe. They are one of the most popular and successful multisport international events that we see. In both Birmingham and Glasgow in the past decade, we have seen not just the sporting benefits but the economic benefits of the Games to the cities and the wider regions. So, will the Government work with the national teams of Scotland, England, Wales and Northern Ireland to make sure that they rule out no options in order to deal with this immediate emergency of the Games not having a host for 2026? Will they also work with other Governments in the Commonwealth and with the Commonwealth Games Federation to make sure that, in the long term, the Commonwealth Games are able to be hosted by countries that are not the large, richer, white countries of the Commonwealth but are other countries in the Commonwealth, so that “commonwealth” goes back into the Commonwealth Games?
Yes, we absolutely agree with the noble Lord. It is important that the Games remain a truly global Games. He is right to point to the economic benefits as well as the many other benefits that hosting the Games can accrue; he will know this very well, of course, from his own involvement with the successful Glasgow Games in 2014. Our interim assessment of the Games in Birmingham last year shows that they added £870 million of GVA to the UK economy, more than half of that going to the West Midlands, and we look forward to the fuller economic analysis coming soon. My right honourable friend the Sports Minister has met the Commonwealth Games Federation to talk about the urgency with which it is looking at this issue and we are keen for it to find a resolution.
My Lords, the noble Lord, Lord McConnell, is quite right. Will the Government work very closely with Marlborough House and the secretariat to ensure that there is momentum behind recovery, and we do not let the Games just die? Will his colleagues bear in mind that the Commonwealth network is in many ways our own gateway to the great markets of Asia and Africa, as well as a bulwark against Chinese domination in the developing world? We need them just as much as they need us.
My noble friend, who is a strong supporter of the Commonwealth, makes a very valuable point about the Games’ geopolitical importance as well the great fun they involve for everyone taking part and the legacy they can bring in terms of sports participation and economic benefit. We are speaking to the Commonwealth Games Federation, which makes the decision here, but it is an issue we will of course raise with the Commonwealth at every appropriate level.
My Lords, I declare an interest as chair of Sport Wales and I also competed at three Commonwealth Games at the beginning, middle and end of my career. We should not forget that the Manchester inclusive Games played a big part in us winning 2012. What assessment has been made of the impact on disability sport of potentially losing the Games, as they do have a significant role to play in developing talented British athletes?
Your Lordships’ House benefits from sports people who have competed at every level, and I am glad that the noble Baroness has made her point. We hope that we do not lose the Games; we are working with the Commonwealth Games Federation to ensure that the Games go ahead and there is a sustainable resolution for both 2026 and 2030. She is right to point to their importance in the sporting pipeline for people of all abilities, and that is why we would like to see them continue.
Lord Razzall (LD)
My Lords, I accept that this is not the direct responsibility of the Government, except Chancellor as a leading member of the Commonwealth. Does the Minister believe that this disaster may be the responsibility of the Commonwealth Secretariat, which has not handled it terribly well, or does he believe that the Games have become a financial extravaganza, way beyond the days when my noble friend Lord Campbell participated? May I cheekily ask whether he believes it would help if the Commonwealth Games followed the recent proposal of the Olympic Committee to add cricket to the roster of games played?
The Governments of Alberta and Victoria have cited cost as a reason for their decision. That is curious in the light of Birmingham’s experience, where the Games came in £70 million under budget and the Government gave that money to the West Midlands Combined Authority to spend on a variety of important initiatives, including cultural and sporting ones, in that part of the UK. So it is possible to deliver a Games that everyone can enjoy, as they did in Birmingham, on time and on budget, and we are very happy to share the lessons of Birmingham’s successful hosting with those who might want to bid. My right honourable friend the Sports Minister has been speaking to the federation about learning those lessons.
My Lords, this has happened a few times before. Can the Minister ensure that His Majesty’s Government do more to facilitate discussions on the future direction of the competition? Does it need to be reinvented somehow or does more thought need to be given to reducing the costs to hosts? Would it perhaps be more sustainable if the frequency of the Games was varied to match economic needs? Thinking about my own city, which has finally entered the Europa League this year, there are clear economic benefits demonstrated from hosting events like that. Are the Government doing enough to promote participation in wider international sporting competitions so that we can reap the benefit of the economic boost they bring to our country?
Yes, we fully recognise the important economic boost that hosting major sporting events can bring. Sport is estimated to be worth over £38 billion a year to our economy. The hosting of the women’s Euros in 2022 generated economic activity of £81 million across the eight host cities that welcomed visitors and supported 1,200 full-time equivalent jobs. It also saw a 140% increase in participation among girls in the season after the tournament—so the benefits are manifold. The Commonwealth Games Federation is exploring all options to secure the long-term viability of the Commonwealth Games. It has committed to putting a firmer plan in place by the time of its general assembly in November.
My Lords, my noble friend the Minister will know that the highly successful 1908 summer Olympics in London was a multisport event that ran for seven months, with many sports being organised sequentially. Given how expensive it is to run the Commonwealth Games and how few countries can afford to do so, would the Government consider supporting a Commonwealth Games where different Commonwealth countries were invited to host different sporting events in the same year? It would make the Games a great festival of Commonwealth sport that would be more affordable and would allow more sports and more countries to be added to the Games’ agenda.
I missed the Games that my noble friend mentioned at the outset of his question, but his suggestion is a good one. The Commonwealth Games Federation is looking at all options. It is important that the Games remain a truly global event and I will pass on his very sensible suggestion to my right honourable friend the Sports Minister.
My Lords, the Minister mentioned the increase in sports participation that followed the Commonwealth Games. Typically, there is also a rise in volunteering, and we know from 2012 that sadly this was not sustained after the Games. What lessons were learned from that, and did we see a rise in volunteering around the Birmingham Commonwealth Games that we will see sustained?
Our full impact assessment of the Birmingham Games will follow early in the new year, so I will draw out the points the noble Baroness rightly raises. The legacy of hosting these major events is manifold. There was a brilliant cultural programme that sat alongside the Birmingham Games and was enjoyed by millions of people around the world watching on television, as well as those who visited in person. That is exactly why we are so proud to host such large events.
My Lords, would my noble friend agree that it is entirely possible to have an economic model that works for Commonwealth Games, as has been seen in Birmingham, Glasgow and Manchester? Would he like to remind the House that when good Games become great Games there is an economic, educational, environmental, social, sporting and infrastructure legacy for decades to come?
I wholeheartedly agree with my noble friend and would remind your Lordships’ House that the Birmingham Games came in £70 million under budget. They brought great joy to everyone who watched them and participated, and they were done with great economic success.
(2 years, 9 months ago)
Lords ChamberMy Lords, I will make a brief statement on the devolution status of the Bill. I am pleased to inform your Lordships’ House that both the Scottish Parliament and Senedd Cymru have voted to grant consent for all the relevant provisions. For Scotland, these provisions are the power to amend the list of exempt educational institutions, the power to amend the list of child sexual exploitation and abuse offences and the new offence of encouraging or assisting serious self-harm. For Wales, the provisions are the power to amend the list of exempt educational institutions, the false communications offence, the threatening communications offence, the flashing images offences and the offence of encouraging or assisting serious self-harm.
As noble Lords will be aware, because the Northern Ireland Assembly is adjourned the usual process for seeking legislative consent in relation to Northern Ireland has not been possible. In the absence of legislative consent from the Northern Ireland Assembly, officials from the relevant UK and Northern Ireland departments have worked together to ensure that the Bill considers and reflects the relevant aspects of devolved legislation so that we may extend the following provisions to Northern Ireland: the power to amend the list of exempt educational institutions, the false communications offence, the threatening communications offence and the offence of encouraging or assisting serious self-harm. His Majesty’s Government have received confirmation in writing from the relevant Permanent Secretaries in Northern Ireland that they are content that nothing has been identified which would cause any practical difficulty in terms of the existing policy and legislative landscape. Historically, this area of legislation in Northern Ireland has mirrored that in Great Britain, and we believe that legislating without the consent of the Northern Ireland Assembly is justified in these exceptional circumstances and mitigates the risk of leaving Northern Ireland without the benefit of the Bill’s important reforms and legislative parity.
We remain committed to ensuring sustained engagement on the Bill with all three devolved Administrations as it progresses through Parliament. I beg to move that the Bill be read a third time.
Clause 44: Secretary of State’s powers of direction
Amendment 1
My Lords, His Majesty’s Government have listened carefully to the views expressed in Committee and on Report and have tabled amendments to the Bill to address concerns raised by noble Lords. Let me first again express my gratitude to my noble friend Lady Stowell of Beeston for her constructive engagement on the Secretary of State’s powers of direction. As I said during our previous debate on this topic, I am happy to support her Amendments139 and 140 from Report. The Government are therefore bringing forward two amendments to that effect today.
Noble Lords will recall that, whenever directing Ofcom about a code, the Secretary of State must publish that direction. Amendment 1 means that, alongside this, in most cases a direction will now need to be laid before Parliament. There may be some cases where it is appropriate for the Secretary of State to withhold information from a laid direction: for example, if she thinks that publishing it would be against the interests of national security. In these cases, Amendment 2 will instead require the Secretary of State to lay a statement before Parliament setting out that a direction has been given, the kind of code to which the direction relates and the reasons for not publishing it. Taken together, these amendments will ensure that your Lordships and Members of another place are always made aware as soon as a direction has been made and, wherever possible, understand the contents of that direction. I hope noble Lords will agree that, after the series of debates we have had, we have reached a sensible and proportionate position on these clauses and one which satisfies your Lordships’ House.
I am also grateful to the noble Baroness, Lady Kennedy of The Shaws, for her determined and collaborative work on the issue of threatening communications. Following the commitment I made to her on Report, I have tabled an amendment to make it explicit that the threatening communications offence captures threats where the recipient fears that someone other than the person sending the message will carry out the threat. I want to make it clear that the threatening communications offence, like other existing offences related to threats, already captures threats that could be carried out by third parties. This amendment does not change the scope of the offence, but the Government understand the desire of the noble Baroness and others to make this explicit in the Bill, and I am grateful to her for her collaboration.
Regarding Ofcom’s power of remote access, I am grateful to noble Lords, Lord Knight of Weymouth and Lord Allan of Hallam, my noble friend Lord Moylan and the noble Baroness, Lady Fox of Buckley, who unavoidably cannot be with us today, for raising their concerns about the perceived breadth of the power and the desire for further safeguards to ensure that it is used appropriately by the regulator.
I am also grateful to technology companies for the constructive engagement they have had with officials over the summer. As I set out on Report, the intention of our policy is to ensure clarity about Ofcom’s ability to observe empirical tests, which are a standard method for understanding algorithms and consequently for assessing companies’ compliance with the duties in the Bill. They involve taking a test data set, running it through an algorithmic system and observing the output.
My Lords, I do not know how everyone has spent their summer, but this feels a bit like we have been working on a mammoth jigsaw puzzle and we are now putting in the final pieces. At times, through the course of this Bill, it has felt like doing a puzzle in the metaverse, where we have been trying to control an unreliable avatar that is actually assembling the jigsaw—but that would be an unfair description of the Minister. He has done really well in reflecting on what we have said, influencing his ministerial colleagues in a masterclass of managing upwards, and coming up with reasonable resolutions to previously intractable issues.
We are trusting that some of the outcome of that work will be attended to in the Commons, as the noble Baroness, Lady Morgan, has said, particularly the issues that she raised on risk, that the noble Baroness, Lady Kidron, raised on children’s safety by design, and that my noble friend Lady Merron raised on animal cruelty. We are delighted at where we think these issues have got to.
For today, I am pleased that the concerns of the noble Baroness, Lady Stowell, on Secretary of State powers, which we supported, have been addressed. I also associate myself with her comments on parliamentary scrutiny of the work of the regulator. Equally, we are delighted that the Minister has answered the concerns of my noble friend Lady Kennedy and that he has secured the legislative consent orders which he informed us of at the outset today. We would be grateful if the Minister could write to us answering the points of my noble friend Lord Rooker, which were well made by him and by the Delegated Powers Committee.
I am especially pleased to see that the issues which we raised at Report on remote access have been addressed. I feel smug, as I had to press quite hard for the Minister to leave the door open to come back at this stage on this. I am delighted that he is now walking through the door. Like the noble Lord, Lord Allan, I have just a few things that I would like clarification on—the proportional use of the powers, Ofcom taking into account user privacy, especially regarding live user data, and that the duration of the powers be time- limited.
Finally, I thank parliamentarians on all sides for an exemplary team effort. With so much seemingly falling apart around us, it is encouraging that, when we have common purpose, we can achieve a lot, as we have with this Bill.
My Lords, let me first address the points made by the noble Lord, Lord Rooker. I am afraid that, like my noble friend Lady Stowell of Beeston, I was not aware of the report of your Lordships’ committee. Unlike her, I should have been. I have checked with my private office and we have not received a letter from the committee, but I will ask them to contact the clerk to the committee immediately and will respond to this today. I am very sorry that this was not brought to my attention, particularly since the members of the committee met during the Recess to look at this issue. I have corresponded with my noble friend Lord McLoughlin, who chairs the committee, on each of its previous reports. Where we have disagreed, we have done so explicitly and set out our reasons. We have agreed with most of its previous recommendations. I am very sorry that I was not aware of this report and have not had the opportunity to provide answers for your Lordships’ House ahead of the debate.
The report was published on 31 August. It so happens that the committee has been forced to meet in an emergency session tomorrow morning because of government amendments that have been tabled to the levelling-up Bill, which will be debated next Wednesday, that require a report on the delegated powers, so we will have the opportunity to see what the Minister has said. I am very grateful for his approach.
The committee will have a reply from me before it meets tomorrow. Again, I apologise. It should not be up to the committee to let the Minister know; I ought to have known about it.
I am very grateful to noble Lords for their support of the amendments that we have tabled in this group, which reflect the collaborative nature of the work that we have done and the thought which has been put into this by my ministerial colleagues and me, and by the Bill team, over the summer. I will have a bit more to say on that when I move that the Bill do now pass in a moment, but I am very grateful to those noble Lords who have spoken at this stage for highlighting the model of collaborative working that the Bill has shown.
The noble Baroness, Lady Ritchie of Downpatrick, asked for an update on timetables. Some of the implementation timetables which Ofcom has assessed depend a little on issues which may still change when the Bill moves to another place. If she will permit it, once they have been resolved I will write with the latest assessments from Ofcom, and, if appropriate, from us, on the implementation timelines. They are being recalculated in the light of amendments that have been made to the Bill and which may yet further change. However, everybody shares the desire to implement the Bill as swiftly as possible, and I am grateful that your Lordships’ work has helped us do our scrutiny with that in mind.
The noble Lord, Lord Allan, asked some questions about the remote viewing power. On proportionality, Ofcom will have a legal duty to exercise its power to view information remotely in a way that is proportionate, ensuring, as I said, that undue burdens are not placed on businesses. In assessing proportionality in line with this requirement, Ofcom would need to consider the size and resource capacity of a service when choosing the most appropriate way of gathering information. To comply with this requirement, Ofcom would also need to consider whether there was a less onerous method of obtaining the necessary information.
On the points regarding that and intrusion, Ofcom expects to engage with providers as appropriate about how to obtain the information it needs to carry out its functions. Because of the requirement on Ofcom to exercise its information-gathering powers proportionately, it would need to consider less onerous methods. As I said, that might include an audit or a skilled persons report, but we anticipate that, for smaller services in particular, those options could be more burdensome than Ofcom remotely viewing information.
Will my noble friend draw attention to the part of Clause 122 that says that Ofcom cannot issue a requirement which is not technically feasible, as he has just said? That does not appear in the text of the clause, and it creates a potential conflict. Even if the requirement is not technically feasible—or, at least, if the platform claims that it is not—Ofcom’s power to require it is not mitigated by the clause. It still has the power, which it can exercise, and it can presumably take some form of enforcement action if it decides that the company is not being wholly open or honest. The technical feasibility is not built into the clause, but my noble friend has just added it, as with quite a lot of other stuff in the Bill.
It has to meet minimum standards of accuracy and must have privacy safeguards in place. The clause talks about those in a positive sense, which sets out the expectation. I am happy to make clear, as I have, what that means: if the appropriate technology does not exist that meets these requirements, then Ofcom will not be able to use Clause 122 to require its use. I hope that that satisfies my noble friend.
My Lords, in begging to move that the Bill do now pass, I add my words of thanks to all noble Lords who have been involved over many years and many iterations of the Bill, particularly during my time as the Minister and in the diligent scrutiny we have given it in recent months. The Bill will establish a vital legislative framework, making the internet safer for all, particularly for children. We are now closer than ever to achieving that important goal. In a matter of months from Royal Assent, companies will be required to put in place protections to tackle illegal content on their services or face huge fines. I am very grateful to noble Lords for the dedication, attention and time they have given to the Bill while it has been before your Lordships’ House.
The Bill will mark a significant change in children’s safety online. Last month, data from UK police forces showed that 6,350 offences relating to sexual communications with a child were recorded last year alone. These are horrifying statistics which underline the importance of the Bill in building a protective shield for our children online. We cannot let perpetrators of such abhorrent crimes stalk children online and hide behind their screens, nor let companies continue to turn a blind eye to the harm being done to children on their services. We are working closely with Ofcom to make sure that the protections for children established by the Bill are enforced as soon as possible, and we have been clear that companies should not wait for the legislation to come into force before taking action.
The aim of keeping children safe online is woven throughout the Bill, and the changes that we have made throughout its passage in your Lordships’ House have further bolstered it. In order to provide early and clear guidance to companies and Ofcom regarding the content from which children must be protected, rather than addressing these later via secondary legislation, the categories of primary priority and priority content which is harmful to children will now be set out in the Bill.
Following another amendment made during your Lordships’ scrutiny, providers of the largest services will also be required to publish summaries of their risk assessments for illegal content and content which is harmful to children. Further changes to the Bill have also made sure that technology executives must take more responsibility for the safety of those who use their websites. Senior managers will face criminal liability if they fail to comply with steps set by Ofcom following enforcement action to keep children safe on their platforms, with the offence punishable with up to two years in prison.
Noble Lords have rightly raised concerns about what the fast-changing technological landscape will mean for children. The Bill faces the future and is designed to keep pace with emerging technological changes such as AI-generated pornography.
Child sexual exploitation and abuse content generated by AI is illegal, regardless of whether it depicts a real child or not, and the Bill makes it clear that technology companies will be required to identify this content proactively and remove it. Whatever the future holds, the Bill will ensure that guard rails are in place to allow our children to explore it safely online.
I have also had the pleasure of collaborating with noble Lords from across your Lordships’ House who have championed the important cause of strengthening protections for women and girls online, who we know disproportionately bear the brunt of abhorrent behaviour on the internet. Following changes made earlier to the Bill, Ofcom will be required to produce and publish guidance which summarises in one clear place measures that should be taken to reduce the risk of harm to women and girls online. The amendment will also oblige Ofcom to consult when producing the guidance, ensuring that it reflects the voices of women and girls as well as the views of experts on this important issue.
The Bill strikes a careful balance: it tackles criminal activity online and protects our children while enshrining freedom of expression in its legislative framework. A series of changes to the Bill has ensured that adults are provided with greater control over their online experience. All adult users of the largest services will have access to tools which, if they choose to use them, will allow them to filter out content from non-verified users and to reduce the likelihood of encountering abusive content. These amendments, which have undergone careful consideration and consultation, will ensure that the Bill remains proportionate, clear and future-proof.
I am very grateful to noble Lords who have helped us make those improvements and many more. I am conscious that a great number of noble Lords who have taken part in our debates were part of the pre-legislative scrutiny some years ago. They know the Bill very well and they know the issues well, which has helped our debates be well informed and focused. It has helped the scrutiny of His Majesty’s Government, and I hope that we have risen to that.
I am very grateful to all noble Lords who have made representations on behalf of families who have suffered bereavements because of the many terrible experiences online of their children and other loved ones. There are too many for me to name now, and many more who have not campaigned publicly but who I know have been following the progress of the Bill carefully, and we remember them all today.
Again, there are too many noble Lords for me to single out all those who have been so vigilant on this issue. I thank my colleagues on the Front Bench, my noble friends Lord Camrose and Lord Harlech, and on the Front Bench opposite the noble Lords, Lord Knight and Lord Stevenson, and the noble Baroness, Lady Merron. On the Liberal Democrat Benches, I thank the noble Lords, Lord Clement-Jones and Lord Allan of Hallam—who has been partly on the Front Bench and partly behind—who have been working very hard on this.
I also thank the noble Baroness, Lady Kidron, whom I consider a Front-Bencher for the Cross Benches on this issue. She was at the vanguard of many of these issues long before the Bill came to your Lordships’ House and will continue to be long after. We are all hugely impressed by her energy and personal commitment, following the debates not only in our own legislature but in other jurisdictions. I am grateful to her for the collaborative nature of her work with us.
I will not single out other noble Lords, but I am very grateful to them from all corners of the House. They have kicked the tyres of the Bill and asked important questions; they have given lots of time and energy to it and it is a better Bill for that.
I put on record my thanks to the huge team in my department and the Department for Science, Innovation and Technology, who, through years of work, expertise and determination, have brought the Bill to this point. I am grateful to the staff of your Lordships’ House and to colleagues from the Office of the Parliamentary Counsel, in particular Maria White and Neil Shah, and, at the Department for Science, Innovation and Technology, Sarah Connolly, Orla MacRae, Caroline Bowman and Emma Hindley as well as their huge teams, including those who have worked on the Bill over the years but are not currently working on it. They have worked extremely hard and been generous with their time to noble Lords for the use of our work.
The Bill will make a vital difference to people’s safety online, especially children’s safety. It has been a privilege to play a part in it. I was working as a special adviser at the Home Office when this area of work was first mooted. I remember that, when this Bill was suggested in the 2017 manifesto, people suggested that regulating the internet was a crazy idea. The biggest criticism now is that we have not done it sooner. I am very grateful to noble Lords for doing their scrutiny diligently but speedily, and I hope to see the Bill on the statute book very soon. I beg to move that the Bill do now pass.
My Lords, I am grateful to the Minister for his very kind words to everybody, particularly my Front Bench and me. I also wish him a speedy recovery from his recent illness, although I was less sympathetic when I discovered how much he has been “managing upwards”—in the words of my noble friend Lord Knight—and achieving for us in the last few days. He has obviously been recovering and I am grateful for that. The noble Lord has steered the Bill through your Lordships’ House with great skill and largely single-handedly. It has been a pleasure to work with him, even when he was turning down our proposals and suggestions for change, which he did in the nicest possible way but absolutely firmly.
I rise briefly to raise the question of access to data by academics and research organisations. Before I do so, I want to express profound thanks to noble Lords who have worked so collaboratively to create a terrific Bill that will completely transform and hold to account those involved in the internet, and make it a safer place. That was our mission and we should be very proud of that. I cannot single out noble Peers, with the exception of the noble Baroness, Lady Kidron, with whom I worked collaboratively both on age assurance and on harms. It was a partnership I valued enormously and hope to take forward. Others from all four corners of the House contributed to the parts of the Bill that I was particularly interested in. As I look around, I see so many friends who stuck their necks out and spoke so movingly, for which I am enormously grateful.
The question of data access is one of the loose ends that did not quite make it into the Bill. I appreciate the efforts of my noble friend the Minister, the Secretary of State and the Bill team in this matter and their efforts to try and wangle it in; I accept that it did not quite make it. I would like to hear reassurance from my noble friend that this is something that the Government are prepared to look at in future legislation. If he could provide any detail on how and in which legislation it could be revisited, I would be enormously grateful.
My Lords, I will be brief and restrict myself to responding to the questions which have been raised. I will hold to my rule of not trying to thank all noble Lords who have played their part in this scrutiny, because the list is indeed very long. I agree with what the noble Lord, Lord Clement-Jones, said about this being a Back-Bench-driven Bill, and there are many noble Lords from all corners of the House and the Back Benches who have played a significant part in it. I add my thanks to the noble Baroness, Lady Benjamin, not just for her kind words, but for her years of campaigning on this, and to my noble friend Lord Bethell who has worked with her—and others—closely on the issues which she holds dear.
I also thank my noble friend Lord Moylan who has often swum against the tide of debate, but very helpfully so, and on important matters. In answer to his question about Wikipedia, I do not have much to add to the words that I have said a few times now about the categorisation, but on his concerns about the parliamentary scrutiny for this I stress that it is the Secretary of State who will set the categorisation thresholds. She is, of course, a Member of Parliament, and accountable to it. Ofcom will designate services based on those thresholds, so the decision-making can be scrutinised in Parliament, even if not in the way he would have wished.
I agree that we should all be grateful to the noble Lord, Lord Allan of Hallam, because he addressed some of the questions raised by my noble friend Lady Stowell of Beeston. In brief, the provision is flexible for where the technological solutions do not currently exist, because Ofcom can require services to develop or source new solutions.
This close to the gracious Speech, I will not point to a particular piece of legislation in which we might revisit the issue of researchers’ access, as raised by my noble friend Lord Bethell, but I am happy to say that we will certainly look at that again, and I know that he will take the opportunity to raise it.
Noble Lords on the Front Benches opposite alluded to the discussions which are continuing—as I committed on Report to ensure that noble Lords are able to be part of discussions as the Bill heads to another place—on functionalities and on the amendment of my noble friend Lady Morgan on category 1 services. She is one of a cavalcade of former Secretaries of State who have been so helpful in scrutinising the Bill. It is for another place to debate them, but I am grateful to noble Lords who have given their time this week to have the discussions which I committed to have and will continue to have as the Bill heads there, so that we can follow those issues hopefully to a happy resolution.
I thank my noble friend Lady Harding of Winscombe for the concessions that she wrought on Report, and for the part that she has played in discussions. She has also given a great deal of time outside the Chamber.
We should all be very grateful to the noble Lord, Lord Grade of Yarmouth, who has sat quietly throughout most of our debates—understandably, in his capacity as chairman of Ofcom—but he has followed them closely and taken those points to the regulator. Dame Melanie Dawes and all the team there stand ready to implement this work and we should be grateful to the noble Lord, Lord Grade of Yarmouth, and to all those at Ofcom who are ready to put it into action.
(2 years, 9 months ago)
Lords ChamberMy Lords, I will speak to this group of amendments as Minister for Heritage. I will speak first to Amendments 202A and 202B, which regard building preservation notices.
His Majesty’s Government recognise that, although building preservation notices provide a useful means of protecting buildings for up to six months while they are being considered for listing, it is important that they should not be used inappropriately or injudiciously.
Further to our debate in Committee, my amendment to Clause 99 should help to provide that reassurance. It introduces a requirement on local planning authorities to consult Historic England before serving a building preservation notice, drawing on Historic England’s expert knowledge about the historic environment to help advise local planning authorities before they issue a building preservation notice. This practice is common- place today, although not universal; the amendment seeks to solidify this practice as a duty on the local planning authority. In addition, His Majesty’s Government will issue guidance after the Bill has become law, setting out the manner in which local planning authorities need to consult Historic England. For example, where the planning authority’s view differs from Historic England’s, it should set out why it has come to that conclusion.
By tabling this amendment, the Government are showing that we have listened to the concerns raised at earlier stages yet remain committed to ensuring the best protection possible for our nation’s most loved and valued heritage.
I am grateful in particular to Historic Houses for the time and willingness they have shown in discussing this issue with me.
I turn to Amendment 271A, in my name, which concerns blue plaques. For a century and a half, blue plaques have helped people to learn about and celebrate their local heritage and to take pride in their local community. More than 900 have been erected, celebrating people as diverse as Ada Lovelace, Jimi Hendrix and Mohandas Gandhi—but only in London, for, while there are many brilliant local schemes across the country, the official scheme backed in statute is limited to London alone.
I thank all noble Lords who have taken part in this very interesting debate. I start by thanking the noble Lord, Lord Parkinson of Whitley Bay, for his introduction and for the amendments that he introduced. It was good to see that we have the negative procedure being applied in some areas. As others have done, I too welcome the rollout of the blue plaques, but I also support the comments regarding women and diversity. I am sure that he will take those away.
My noble friend Lady Andrews, as always, introduced her important amendments eloquently and clearly. I will not go into detail but want to let the House know that we fully agree with and support her amendments and the arguments that she put forward urging the Government to accept what she believes is absolutely the right way to move forward on this. I thank the Victorian Society for its very helpful briefing on this. I absolutely agree with my noble friend that one big concern that has come across in the debate, particularly regarding the Crooked House, of course, is that we have been too casual about demolition in our society. The Crooked House demolition raised very highly up the agenda the public’s concerns when something like that happens in their local community. As the noble Lord, Lord Carrington, said, it appeared that the building was about to be listed, so it is quite shocking that it was able to happen. We need to ensure in future that buildings of such importance to localities cannot just be demolished like that.
We heard during earlier discussions on the Bill about the release of carbon when buildings are demolished. The noble Lord, Lord Ravensdale, had an amendment on this and it was mentioned by my noble friend and by the noble Baroness, Lady Bennett of Manor Castle. Again, that now needs to be part of the discussions. Also, I really agree with the noble Baroness’s comments on tidiness. We are too concerned about tidiness and that has impacts on all sorts of areas and our environment.
My noble friend also had an amendment around the importance of the local list that communities now have of buildings that are important to those local communities. We should all applaud my noble friend Lady Taylor, because I understand that she has set up such a list. But the concerns are how little weight that then has in planning and how little understanding there is of it, so my noble friend’s amendment is important in this aspect.
The noble Lord, Lord Northbrook, introduced his amendments, which are similar to those he had in Committee, so I will not go into detail. However, he raised concerns about the approval of inappropriate developments and the importance of what local residents feel about them. That should be taken proper account of and, again, we would very much support him in that. We believe that local residents should be listened to and that there should be proper consultation.
On replacement windows in conservation areas, it is really important that we have a sensible and practical approach to this. I know that we talked about like for like and heard that other materials can be used, but that is not always the way things are interpreted, unfortunately. There is a house near to me where the windows are going to fall out because like for like insists on hardwood, and the residents cannot afford it. There needs to be more flexibility and practicality. Also, in the conservation area in Cockermouth after the flooding, households were told that they were not allowed to put in flood doors, which seems a ridiculous situation for us to be in.
In my last two comments, I thought the noble Lord, Lord Redesdale, made some very good points on his amendments, particularly regarding dispute resolution, environmental record services and archives. The noble Earl, Lord Lytton, as always, made some very important points. He has enormous knowledge and practical expertise in this area.
This debate has shown that there are serious concerns about heritage and conservation, areas that could move forward quite sensibly and practically with government support. I look forward to the Minister’s response.
I am grateful, first, to all those noble Lords who expressed their support for the amendment relating to the extension of the blue plaque scheme. I am glad to see that it has had support from across the House, as it did from the cross-party Local Government Association, so I am grateful to all those who mentioned it in their contributions now.
My noble friend Lord Lexden was particularly kind. He was right to point out that one of the motivations here is to increase people’s curiosity and knowledge about the past, including untold or surprising stories. I am glad to hear of the progress that he and the noble Baroness, Lady Stuart of Edgbaston, are making with their campaigns for plaques—not blue ones, but important ones—in Birmingham to the two sons of that city and of Joseph Chamberlain, who is already commemorated. My noble friend is right that they are people of international and national significance, as well as of great local pride. I look forward to seeing those plaques added to the Chamberlain memorial.
I am also grateful for what my noble friend Lord Mendoza said about the importance of the blue plaques scheme in increasing people’s connection to and sense of pride in place. That is a very important aspect of the scheme.
The noble Baronesses, Lady Bennett of Manor Castle and Lady Hayman of Ullock, are right to point to the need for a greater diversity of stories. That is something that English Heritage has been focusing on in recent years. For instance, of the plaques that have been unveiled since 2016, more than half have been to women. The noble Baroness is right that there is a job of work to do to ensure that we are telling more untold stories of women, working-class people, people of colour, people of minority sexualities and so much more. I hope one of the benefits of extending the scheme across all of England will be being able to draw on the greater diversity of the country in telling those stories, which are always so interesting and important.
The noble Baroness, Lady Pinnock, asked some questions on blue plaques. Yes, local schemes—which, as I say, have operated for many years in parallel—will be able to do so. In fact, a number of London boroughs organise their own schemes on top of the blue plaques scheme which has operated in the capital—so the more the merrier, I say.
I was remiss in not thanking the noble Earl, Lord Lytton, in my opening speech in relation to the amendment when I thanked the Historic Houses association, with which I know he has been in touch. I am grateful to him for the time and attention he has given this and for the discussions we have had on that amendment.
The noble Baroness, Lady Pinnock, rightly asked a few more questions on BPNs. Our original proposal was without this further amendment recognising the need for speed in these instances. I reassure her that Historic England is adept at dealing with these and other listing and heritage matters quickly when the situation needs, and there is an expedited process for listing when something is believed to be at risk. One of the advantages of having Historic England’s chairman in your Lordships’ House is that my noble friend Lord Mendoza will have heard those points and be able to reflect them back to Historic England, which already works quickly. That point will be carefully considered in the production of the necessary guidance. I hope that addresses her concerns on BPNs.
I turn now to the amendments in this group tabled by other noble Lords. I am very grateful to my noble friend Lord Northbrook for tabling Amendment 203 and for the correspondence we have had on this issue this week. His amendment seeks to require that, in meeting their statutory duty under Section 72, local planning authorities should have regard to any relevant advice produced by Historic England. I agree that this should be the case, but it is already something that local planning authorities do, and the Government’s planning practice guidance points them to Historic England’s advice.
My noble friend Lord Bellingham is right to remind us that Historic England has a duty to liaise with local authorities, and I hope he will be reassured by what our noble friend Lord Mendoza said about the frequency with which it does that. When our guidance is next reviewed, I am happy to ask officials to consider whether the links to Historic England’s advice could be strengthened. I hope that, with that assurance, my noble friend Lord Northbrook will be content not to press his Amendment 203.
Amendment 204, also in my noble friend’s name, relates to replacement windows in conservation areas. An existing permitted development right allows for enlargement, improvement or other alteration to a dwelling-house. That is subject to a condition that the materials used in any exterior work—other than those used in the construction of a conservatory—must be of a similar appearance to those used in the construction of the exterior of the existing dwelling-house. That applies to replacement windows in conservation areas. The Secretary of State for Levelling Up, in his housing speech in July, launched a consultation which included a proposal to apply local design codes to permitted development rights. He also announced that the Government will consult this autumn on how to better support existing homeowners to extend their homes. On top of that, the Government are undertaking a review of the practical planning barriers which house- holders can face when installing energy-efficiency measures.
Although I am grateful to my noble friend for raising this issue, I hope he will understand that it would be premature to accept his Amendment 204, as it would curtail the scope of any legislative recommendations that the review might set out in due course. Additionally, powers to amend permitted development rights already exist in primary legislation. For these reasons I cannot support Amendment 204 but am happy to reassure my noble friend that we keep permitted development rights under review.
I thank the noble Lord for what he has just said. It is an important step forward to get a consultation on the two propositions and the two sets of dates that might apply with Amendment 204A. That is very important and very good news, and I am very grateful. Can the noble Lord say anything about the timetable? I presume that he is talking about the normal 12-week public consultation period. Is there anything we can pass on to the community about preparation for such a consultation? Could the Minister write to me about whether there is a consultation within DLUHC on permitted development as a whole? It would be very useful to have that information.
I will happily write to the noble Baroness with the information she seeks, including confirmation of the timelines for the consultation, which I expect will meet the normal provisions. I am afraid I cannot give her a date, but we will do it shortly—if I am able to give any greater finesse to her in writing, I will do so gladly.
(2 years, 10 months ago)
Lords ChamberMy Lords, the government amendments in this group relate to content reporting and complaints procedures. The Bill’s existing duties on each of these topics are a major step forward and will provide users with effective methods of redress. There will now be an enforceable duty on Part 3 services to offer accessible, transparent and easy-to-use complaints procedures. This is an important and significant change from which users and others will benefit directly.
Furthermore, Part 3 services complaints procedures will be required to provide for appropriate action to be taken in response to complaints. The duties here will fundamentally alter how complaints systems are operated by services, and providers will have to make sure that their systems are up to scratch. If services do not comply with their duties, they will face strong enforcement measures.
However, we have listened to concerns raised by your Lordships and others, and share the desire to ensure that complaints are handled effectively. That is why we have tabled Amendments 272AA and 274AA, to ensure that the Bill’s provisions in this area are the subject of a report to be published by Ofcom within two years of commencement.
Amendment 272AA places a requirement on Ofcom to undertake a report about Part 3 services reporting and complaints procedures. The report will assess the measures taken or in use by providers of Part 3 services to enable users and others to report content and make complaints. In assessing the content reporting and complaints measures in place, the report must take into account users’ and others’ experiences of those procedures—including how easy to use and clear they are for reporting content and making complaints, and whether providers are taking appropriate and timely action in response.
In this report, Ofcom must provide advice to the Secretary of State about whether she should use her power set out in Amendment 236C to make regulations imposing an alternative dispute resolution duty on category 1 services. Ofcom may also make wider recommendations about how the complaints and user redress provisions can be strengthened, and how users’ experiences with regard to complaints can be improved more broadly. Amendment 274AA is a consequential amendment ensuring that the usual confidentiality provisions apply to matters contained in that report.
These changes will ensure that the effectiveness of the Bill’s content reporting and complaints provisions can be thoroughly assessed by Ofcom two years after the commencement of the provision, providing time for the relevant reporting and complaints procedures to bed in.
Amendment 236C then provides that the Secretary of State will have a power to make regulations to amend the Act in order to impose an alternative dispute resolution duty on providers of category 1 services. This power can be used after the Secretary of State has published a statement in response to Ofcom’s report. This enables the Secretary of State to impose via regulations a duty on the providers of category 1 services to arrange for and engage in an impartial, out-of-court alternative dispute resolution procedure in respect of complaints. This means that, if the Bill’s existing user redress provisions are found to be insufficient, this requirement can quickly be imposed to strengthen the Bill.
This responds directly to concerns which noble Lords raised about cases where users or parents may feel that they have nowhere to turn if they are dissatisfied with a service’s response to their complaint. We believe that the existing provisions will remedy this, but, if they do not, these new requirements will ensure that there is an impartial, alternative dispute resolution procedure which will work towards the effective resolution of the complaint between the service and the complainant.
At the same time, it will avoid creating a single ombudsman, person or body which may be overwhelmed either through the volume of complaints from multiple services or by the complexity of applying such disparate services’ varying terms of service. Instead, if required, this power will put the onus on the provider to arrange for and engage in an impartial dispute resolution procedure.
Amendment 237D requires that, if regulations are made requiring category 1 services to offer an alternative dispute resolution procedure, such regulation must be subject to the affirmative parliamentary procedure. This ensures that Parliament will continue to have oversight of this process.
I hope that noble Lords are reassured that the Bill not only requires services to provide users and others with effective forms of redress but that these further amendments will ensure that the Bill’s provisions in this area will be thoroughly reviewed and that action can be taken quickly if it is needed. I beg to move.
My Lords, I am grateful to hear what the Minister has just announced. The scheme that was originally prefigured in the pre-legislative scrutiny report has now got some chance of being delivered. I think the process and procedures are quite appropriate; it does need review and thought. There needs to be account taken of practice on the ground, how people have found the new system is working, and whether or not there are gaps that can be filled this way. I give my full support to the proposal, and I am very glad to see it.
Having got to the Dispatch Box early, I will just appeal to our small but very important group. We are on the last day on Report. We are reaching a number of issues where lots of debate has taken place in Committee. I think it would be quite a nice surprise for us all if we were to get through this quickly. The only way to do that is by restricting our contributions.
My Lords, I declare an interest as chair of Trust Alliance Group, which operates the energy and communications ombudsman schemes, so I have a particular interest in the operation of these ADR schemes. I thank the Minister for the flexibility that he has shown in the provision about the report by Ofcom and in having backstop powers for the Secretary of State to introduce such a scheme.
Of course, I understand that the noble Baroness, Lady Newlove, and the UK Safer Internet Centre are very disappointed that this is not going to come into effect immediately, but there are advantages in not setting out the scheme at this very early point before we know what some of the issues arising are. I believe that Ofcom will definitely want to institute such a scheme, but it may be that, in the initial stages, working out the exact architecture is going to be necessary. Of course, I would have preferred to have a mandated scheme, in the sense that the report will look not at the “whether” but the “how”, but I believe that at the end of the day it will absolutely obvious that there needs to be such an ADR scheme in order to provide the kind of redress the noble Baroness, Lady Harding, was talking about.
I also agree with noble Baroness, Lady Morgan, that the kinds of complaints that this would cover should include fraudulent adverts. I very much hope that the Minister will be able to answer the questions that both noble Baronesses asked. As my noble friend said, will he reassure us that the department and Ofcom will not take their foot off the pedal, whatever the Bill may say?
I am grateful to noble Lords for their warm support and for heeding the advice of the noble Lord, Lord Stevenson, on brevity. We must finish our Report today. The noble Lord, Lord Allan, is right to mention my noble friend Lady Newlove, who I have spoken to about this issue, as well as the noble Lord, Lord Russell of Liverpool, who has raised some questions here.
Alongside the strong duties on services to offer content reporting and complaints procedures, our amendments will ensure that the effectiveness of these provisions can be reviewed after they have had sufficient time to bed in. The noble Lord, Lord Allan, asked about timing in more detail. Ofcom must publish the report within the two-year period beginning on the day on which the provision comes into force. That will allow time for the regime to bed in before the report takes place, ensuring that its conclusions are informed by how the procedures work in practice. If necessary, our amendments will allow the Secretary of State to impose via regulations a duty on the providers of category 1 services to arrange for and engage in an impartial, out-of-court alternative dispute resolution procedure, providing the further strengthening which I outlined in opening.
I can reassure my noble friend Lady Morgan of Cotes that reporting mechanisms to facilitate providers’ removal of fraudulent advertisements are exactly the kinds of issues that Ofcom’s codes of practice will cover, subject to consultation and due process. As companies have duties to remove fraudulent advertising once they are alerted to it, we expect platforms will need the necessary systems and processes in place to enable users to report fraudulent adverts so that providers can remove them.
My noble friend Lady Harding asked the question which was posed a lot in Committee about where one goes if all avenues are exhausted. We have added further avenues for people to seek redress if they do not get it but, as I said in Committee, the changes that we are bringing in through this Bill will mark a significant change for people. Rather than focusing on the even-further-diminished possibility of their not having their complaints adequately addressed through the additional amendments we are bringing today, I hope she will see that the provisions in the Bill and in these amendments as bringing in the change we all want to see to improve users’ safety online.
My Lords, Amendments 238A and 238D seek to change the parliamentary process for laying—oh, I am skipping ahead with final day of Report enthusiasm.
As noble Lords know, companies will fund the costs of Ofcom’s online safety functions through annual fees. This means that the regime which the Bill ushers in will be cost neutral to the taxpayer. Once the fee regime is operational, regulated providers with revenue at or above a set threshold will be required to notify Ofcom and to pay a proportionate fee. Ofcom will calculate fees with reference to the provider’s qualifying worldwide revenue.
The Delegated Powers and Regulatory Reform Committee of your Lordships’ House has made two recommendations relating to the fee regime which we have accepted, and the amendments we are discussing in this group reflect this. In addition, we are making an additional change to definitions to ensure that Ofcom can collect proportionate fees.
A number of the amendments in my name relate to qualifying worldwide revenue. Presently, the Bill outlines that this should be defined in a published statement laid before Parliament. Your Lordships’ committee advised that it should be defined through regulations subject to the affirmative procedure. We have agreed with this and are proposing changes to Clause 76 so that Ofcom can make provisions about qualifying worldwide revenue by regulations which, as per the committee’s recommendations, will be subject to the affirmative procedure.
Secondly, the committee recommended that we change the method by which the revenue threshold is defined. Presently, as set out in the Bill, it is set by the Secretary of State in a published statement laid before Parliament. The committee recommended that the threshold be set through regulations subject to the negative procedure and we are amending Clause 77 to make the recommended change.
Other amendments seek to make a further change to enable Ofcom to collect proportionate fees from providers. A provider of a regulated service the qualifying worldwide revenue of which is equal to, or greater than, the financial threshold will be required to notify Ofcom and pay an annual fee, calculated by reference to its qualifying worldwide revenue. Currently, this means that that fee calculation can be based only on the revenue of the regulated provider. The structure of some technology companies, however, means that how they accrue revenue is not always straightforward. The entity which meets the definition of a provider may therefore not be the entity which generates revenue referable to the regulated service.
Regulations to be made by Ofcom about the qualifying worldwide revenue will therefore be able to provide that the revenue accruing to certain entities in the same group as a provider of a regulated service can be taken into account for the purposes of determining qualifying worldwide revenue. This will enable Ofcom, when making such regulations, to make provisions, if necessary, to account for instances where a provider has a complex group structure; for example, where the regulated provider might accrue only a portion of the revenue referrable to the regulated service, the rest of which might be accrued by other entities in the group’s structure. These amendments to Clause 76 address these issues by allowing Ofcom to make regulations which provide that the revenue from certain other entities within the provider’s group structure can be taken into account. I beg to move.
My Lords, we have not talked much about fees in our consideration of the Bill, and I will not talk much about them today, but there are some important questions. We should not skip too lightly over the fact that we will be levying revenues from online providers. That might have a significant impact on the markets. I have some specific questions about this proposed worldwide revenue method but I welcome these amendments and that we will now be getting a better procedure. This will also allow the Minister to say, “All these detailed points can be addressed when these instruments come before Parliament”. That is a good development. However, there are three questions that are worth putting on the record now so that we have time to think about them.
First, what consideration will be given to the impact on services that do not follow a classic revenue model but instead rely on donations and other sorts of support? I know that we will come back to this question in a later group but there are some very large internet service providers that are not the classic advertising-funded model, instead relying on foundations and other things. They will have significant questions about what we would judge their qualifying worldwide revenue to be, given that they operate to these very different models.
The second question concerns the impact on services that may have a very large footprint outside the UK, and significant worldwide revenues, but which do very little business within the UK. The amendment that the Minister has tabled about group revenues is also relevant here. You can imagine an entity which may be part of a very large worldwide group making very significant revenues around the world. It has a relatively small subsidiary that is offering a service in the UK, with relatively low revenues. There are some important questions there around the potential impact of the fees on decision-making within that group. We have discussed how we do not want to end up with less choice for consumers of services in the UK. There is an interesting question there as to whether getting the fee level wrong might lead to worldwide entities saying, “If you’re going to ask me to pay a fee based on my qualifying worldwide revenue, the UK market is just not worth it”. That may particularly true if, for example, the European Union and other markets are also levying a fee. You can see a rational business choice of, “We’re happy to pay the fee to the EU but not to Ofcom if it is levied at a rate that is disproportionate to the business that we do here”.
The third and very topical question is about the Government’s thinking about services with declining revenues but whose safety needs are not reducing and may even be increasing. I hope as I say this that people have Twitter in mind, which has very publicly told us that its revenue is going down significantly. It has also very publicly fired most of its trust and safety staff. You can imagine a model within which, because its revenue is declining, it is paying less to Ofcom precisely when Ofcom needs to do more supervision of it.
I hope that we can get some clarity around the Government’s intentions in these circumstances. I have referenced three areas where the worldwide qualifying revenue calculation may go a little awry. The first is where the revenue is not classic commercial income but comes from other sources. The second is where the footprint in the UK is very small but it is otherwise a large global company which we might worry will withdraw from the market. The third, and perhaps most important, is what the Government’s intention is where a company’s revenue is declining and it is managing its platform less well and its Ofcom needs increase, and what we would expect to happen to the fee level in those circumstances.
My Lords, there is very little to add to that. These are important questions. I simply was struck by the thought that the amount of work, effort and thought that has gone into this should not be kept within this Bill. I wonder whether the noble Lord has thought of offering his services to His Majesty’s Treasury, which has difficulty in raising tax from these companies. It would be nice to see that problem resolved.
I am looking forward to returning to arts and heritage; I will leave that to my noble friend Lady Penn.
The noble Lord, Lord Allan, asked some good questions. He is right: the provisions and the parliamentary scrutiny allow for the flexibility for all these things to be looked at and scrutinised in the way that he set out. I stress that the fee regime is designed to be fair to industry; that is central to the approach we have taken. The Bill stipulates that Ofcom must charge only proportionate and justifiable fees to industry. The provisions that Ofcom can make via regulation about the qualifying worldwide revenue aim to ensure that fees are truly representative of the revenue relating to the regulated service and that they will encourage financial transparency. They also aim to aid companies with complex structures which would otherwise struggle to segregate revenues attributable to the provider and its connected entities.
The revenue of the group undertaking can be considered in scope of a provider’s qualifying worldwide revenue if the entity was a member of the provider’s group during any part of the qualifying period and the entity receives during the qualifying period any amount referrable to a regulated service. The regulations provide Ofcom with a degree of flexibility as to whether or not to make such provisions, because Ofcom will aim to keep the qualifying worldwide revenue simple.
I am grateful for noble Lords’ support for the amendments and believe that they will help Ofcom and the Government to structure a fair and transparent fee regime which charges proportionate fees to fund the cost of the regulatory regime that the Bill brings in.
My Lords, as I was eagerly anticipating, government Amendments 238A and 238D seek to change the parliamentary process for laying the first regulations specifying the category 1 threshold conditions from the negative to the affirmative procedure. I am pleased to bring forward this change in response to the recommendation of your Lordships’ Delegated Powers and Regulatory Reform Committee.
The change will ensure that there are adequate levels of parliamentary scrutiny of the first regulations specifying the category 1 threshold conditions. This is appropriate given that the categorisation of category 1 services will lead to the most substantial duties on the largest and most influential services. As noble Lords are aware, these include the duties on user empowerment, user identity verification, journalistic and news publisher content, content of democratic importance, and fraudulent advertising.
Category 2A services will have only additional transparency and fraudulent advertising duties, and category 2B services will be subject only to additional transparency reporting duties. The burden of these duties is significantly less than the additional category 1 duties, and we have therefore retained the use of the negative resolution procedure for these regulations, as they require less parliamentary scrutiny.
Future changes to the category 1 threshold conditions will also use the negative procedure. This will ensure that the regime remains agile in responding to change, which I know was of particular concern to noble Lords when we debated the categorisation group in Committee. Keeping the negative procedure for such subsequent uses will avoid the risk of future changes being subject to delays because of parliamentary scheduling. I beg to move.
My Lords, I shall speak to Amendment 245. I would like to thank my noble friend the Minister, and also the Minister on leave, for the conversations that I have had with them about this amendment and related issues. As we have already heard, the platform categorisation is extremely important. So far, much of it is unknown, including which sites are actually going to be in which categories. For example, we have not yet seen any proposed secondary regulations. As my noble friend has just outlined, special duties apply, especially for those sites within category 1—user empowerment in particular, but also other duties relating to content and fraudulent advertisements.
Clause 85 and Schedule 11 set out the thresholds for determining which sites will be in category 1, category 2A or category 2B. I am very mindful of the exhortation of the noble Lord, Lord Stevenson, about being brief, but it is amazing how much you have to say about one word to explain this amendment. This amendment proposes to change an “and” to an “or” in relation to determining which sites would fall within category 1. It would move from a test of size “and” functionality to a test of size “or” functionality. This would give Ofcom more flexibility to decide which platforms really need category 1 designation. Category 1 should not be decided just on size; it should also be possible to determine it on the basis of functionality.
Functionality is defined in the Bill in Clause 208. We will get to those amendments shortly, but there is no doubt from what the Government have already conceded, or agreed with those of us who have been campaigning passionately on the Bill for a number of years, that functionality can make a platform harmful. It is perfectly possible to have small platforms that both carry highly harmful content and themselves become harmful in the way that they are designed. We have heard many examples and I will not detain the House with them, but I draw attention to two particular sites which capture how broad this is. The perpetrators of offline hate crimes are often linked to these small platforms. For example, the perpetrator of the 2018 Tree of Life synagogue mass shooting had an online presence on the right-wing extremist social network Gab. In the UK, Jake Davison, the self-proclaimed incel who killed five people in Plymouth in 2021, frequented smaller incel forums after he was banned from Reddit in the days leading up to the mass shooting.
I also want to share with noble Lords an email that I received just this week from a family who had been to see their Member of Parliament, Matt Rodda MP, and also the noble Baroness, Lady Kidron, who I know is very regretful that she cannot be here today. I thank Victoria and Jean Eustace for sharing the story of their sister and daughter. Victoria wrote: “I am writing to you regarding the Online Safety Bill, as my family and I are concerned it will not sufficiently protect vulnerable adults from harm. My sister, Zoe Lyalle, killed herself on 26 May 2020, having been pointed towards a method using an online forum called Sanctioned Suicide. Zoe was 18 years old at the time of her death and as such technically an adult, but she was autistic, so she was emotionally less mature than many 18 year- olds. She found it difficult to critically analyse written content”. She says that “The forum in question is not large and states on its face that it does not encourage suicide, although its content does just that”. The next part I was even more shocked about: “Since Zoe’s death, we have accessed her email account. The forum continues to email Zoe, providing her with updates on content she may have missed while away from the site, as well as requesting donations. One recent email included a link to a thread on the forum containing tips on how best to use the precise method that Zoe had employed”.
In her note to me, the Minister on leave said that she wanted to catch some of the platforms we are talking about with outsized influence. In my reply, I said that those sites on which people are encouraged to take their own lives or become radicalised and therefore take the harms they are seeing online into the real world undoubtedly exercise influence and should be tackled.
It is also perfectly possible for us to have large but safe platforms. I know that my noble friend Lord Moylan may want to discuss this in relation to sites that he has talked about already on this Bill. The risk of the current drafting is a flight of users from these large platforms, newly categorised as category 1, to the small, non-category 1 platforms. What if a platform becomes extremely harmful very quickly? How will it be recategorised speedily but fairly and involving parliamentary oversight?
The Government have run a variety of arguments as to why the “and” in the Bill should not become an “or”. They say that it creates legal uncertainty. Every Bill creates legal uncertainty; that is why we have an army of extremely highly paid lawyers, not just in this country but around the world. They say that what we are talking about is broader than illegal content or content related to children’s safety, but they have already accepted an earlier amendment on safety by design and, in subsections (10) to (12) of Clause 12, that specific extra protections should be available for content related to
“suicide or an act of deliberate self-injury, or … an eating disorder or behaviours associated with an eating disorder”
or abusive content relating to race, religion, sex, sexual orientation, disability or gender reassignment and that:
“Content is within this subsection if it incites hatred against people”.
The Government have already breached some of their own limits on content that is not just illegal or relates to child safety duties. In fact, they have agreed that that content should have enhanced triple-shield protection.
The Government have also said that they want to avoid burdens on small but low-harm platforms. I agree with that, but with an “or” it would be perfectly possible for Ofcom to decide by looking at size or functionality and to exclude those smaller platforms that do not present the harm we all care about. The Minister may also offer me a review of categorisation; however, it is a review of the tiers of categorisation and not the sites within the categories, which I think many of us will have views on over the years.
I come to what we should do on this final day of Report. I am very thankful to those who have had many conversations on this, but there is a fundamental difference of opinion in this House on these matters. We will talk about functionality shortly and I am mindful of the pre-legislative scrutiny committee’s recommendation that this legislation should adopt
“a more nuanced approach, based not just on size and high-level functionality, but factors such as risk, reach, user base, safety performance, and business model”.
There should be other factors. Ofcom should have the ability to decide whether it takes one factor or another, and not have a series of all the thresholds to be passed, to give it the maximum flexibility. I will listen very carefully to what my noble friend the Minister and other noble Lords say, but at this moment I intend to test the opinion of the House on this amendment.
My Lords, I have good news and bad news for the Minister. The good news is that we have no problem with his amendments. The bad news, for him, is that we strongly support Amendment 245 from the noble Baroness, Lady Morgan of Coates, which, as others have said, we think is a no-brainer.
The beauty of the simple amendment has been demonstrated; it just changes the single word “and” to “or”. It is of course right to give Ofcom leeway—or flexibility, as the noble Baroness, Lady Finlay, described it—in the categorisation and to bring providers into the safety regime. What the noble Baroness, Lady Morgan, said about the smaller platforms, the breadcrumbing relating to the Jake Davison case and the functionality around bombarding Zoe Lyalle with those emails told the story that we needed to hear.
As it stands, the Bill requires Ofcom to always be mindful of size. We need to be more nuanced. From listening to the noble Lord, Lord Allan of Hallam—with his, as ever, more detailed analysis of how things work in practice—my concern is that in the end, if it is all about size, Ofcom will end up having to have a much larger number in scope on the categorisation of size in order to cover all the platforms that it is worried about. If we could give flexibility around size or functionality, that would make the job considerably easier.
We on this side think categorisation should happen with a proportionate, risk-based approach. We think the flexibility should be there, the Minister is reasonable—come on, what’s not to like?
My Lords, I shall explain why the simple change of one word is not as simple as it may at first seem. My noble friend’s Amendment 245 seeks to amend the rule that a service must meet both a number-of-users threshold and a functionality threshold to be designated as category 1 or 2B. It would instead allow the Secretary of State by regulation to require a service to have to meet only one or other of the two requirements. That would mean that smaller user-to-user services could be so categorised by meeting only a functionality threshold.
In practical terms, that would open up the possibility of a future Secretary of State setting only a threshold condition about the number of users, or alternatively about functionality, in isolation. That would create the risk that services with a high number of users but limited functionality would be caught in scope of category 1. That could be of particular concern to large websites that operate with limited functionality for public interest reasons, and I am sure my noble friend Lord Moylan can think of one that fits that bill. On the other hand, it could capture a vast array of low-risk smaller services merely because they have a specific functionality—for instance, local community fora that have livestreaming capabilities. So we share the concerns of the noble Lord, Lord Allan, but come at it from a different perspective from him.
My noble friend Lady Morgan mentioned the speed of designation. The Bill’s approach to the pace of designation for the category 1 watchlist and register is flexible—deliberately so, to allow Ofcom to act as quickly as is proportionate to each emerging service. Ofcom will have a duty proactively to identify, monitor and evaluate emerging services, which will afford it early visibility when a service is approaching the category 1 threshold. It will therefore be ready to act accordingly to add services to the register should the need arise.
The approach set out in my noble friend’s Amendment 245 would not allow the Secretary of State to designate individual services as category 1 if they met one of the threshold conditions. Services can be designated as category 1 only if they meet all the relevant threshold conditions set out in the regulations made by the Secretary of State. That is the case regardless, whether the regulations set out one condition or a combination of several conditions.
The noble Baroness, Lady Finlay, suggested that the amendment would assist Ofcom in its work. Ofcom itself has raised concerns that amendments such as this—to introduce greater flexibility—could increase the risk of legal challenges to categorisation. My noble friend Lady Morgan was part of the army of lawyers before she came to Parliament, and I am conscious that the noble Lord, Lord Clement-Jones, is one as well. I hope they will heed the words of the regulator; this is not a risk that noble Lords should take lightly.
I will say more clearly that small companies can pose significant harm to users—I have said it before and I am happy to say it again—which is why there is no exemption for small companies. The very sad examples that my noble friend Lady Morgan gave in her speech related to illegal activity. All services, regardless of size, will be required to take action against illegal content, and to protect children if they are likely to be accessed by children. This is a proportionate regime that seeks to protect small but excellent platforms from overbearing regulation. However, I want to be clear that a small platform that is a font of illegal content cannot use the excuse of its size as an excuse for not dealing with it.
Category 1 services are those services that have a major influence over our public discourse online. Again, I want to be clear that designation as a category 1 service is not based only on size. The thresholds for category 1 services will be based on the functionalities of a service as well as the size of the user base. The thresholds can also incorporate other characteristics that the Secretary of State deems relevant, which could include factors such as a service’s business model or its governance. Crucially, Ofcom has been clear that it will prioritise engagement with high-risk or high-impact services, irrespective of their categorisation, to understand their existing safety systems and how they plan to improve them.
I associate myself with the comments of my noble friend Lady Stowell on this whole issue, and I refer to my register of interests. One question we should be asking, which goes wider than this Bill, is: who regulates the regulators? It is a standard problem in political science and often known as principal agent theory, whereby the principals delegate powers to the agents for many reasons, and you see agency slack, whereby they develop their own powers beyond what was perhaps originally intended. For that reason, I completely associate myself with my noble friend Lady Stowell’s comments—and not because she chairs a committee on which I sit and I hope to get a favour of more speaking time on that committee. It is simply because, on its merit, we should all be asking who regulates the regulators and making sure that they are accountable. We are asking the same question of the Secretary of State, and quite rightly, the Secretary of State should be accountable for any measures they propose, but we should also be asking it of regulators.
My Lords, I have always felt rather sorry for the first Viscount Addison, because what we refer to as the Salisbury convention is really the Salisbury-Addison convention. So while I am grateful to the noble Lord, Lord Stevenson, for his flattering speech, I shall insist on calling it the “Parkinson-Stevenson rule”, not least in the hope that that mouthful will encourage people to forget its name more swiftly.
I am grateful to the noble Lord for his attention to this matter and the useful discussions that we have had. His Amendment 239 would go beyond the existing legislative process for the delegated powers in the Bill by providing for parliamentary committees to be, in effect, inserted into the secondary legislative process. The delegated powers in the Bill are crucial for implementing the regime effectively and for ensuring that it keeps pace with changes in technology. Regulation-making powers are an established part of our legislative practice, and it would not be appropriate to deviate from existing processes.
However, I agree that ongoing parliamentary scrutiny of the regime will be crucial in helping to provide noble Lords and Members in another place with the reassurance that the implementation of the regime is as we intended. As the noble Lord noted, the establishment of the Science, Innovation and Technology Select Committee in another place means that there is a new dedicated committee looking at this important area of public policy. That provides an opportunity for cross-party scrutiny of the online safety regime and broader issues. While it will be, as he said, for respective committees to decide their priorities, we welcome any focus on online safety, and certainly welcome committees in both Houses co-operating effectively on this matter. I am certain that the Communications and Digital Committee of your Lordships’ House will continue to play a vital role in the scrutiny of the online safety regime.
We would fully expect these committees to look closely at the codes of practice, the uses of regulation-making powers and the powers of direction in a way that allows them to focus on key issues of interest. To support that, I can commit that the Government will do two things. First, where the Bill places a consultation requirement on the Government, we will ensure that the relevant committees have every chance to play a part in that consultation by informing them that the process is open. Secondly, while we do not wish to see the implementation process delayed, we will, where possible, share draft statutory instruments directly with the relevant committees ahead of the formal laying process. These timelines will be on a case-by-case basis, considering what is appropriate and reasonably practical. It will be for the committees to decide how they wish to engage with the information that we provide, but it will not create an additional approval process to avoid delaying implementation. I am grateful to my noble friend Lady Stowell of Beeston for her words of caution and wisdom on that point as both chairman of your Lordships’ committee and a former Leader of your Lordships’ House.
I hope that the noble Lord will be satisfied by what I have set out and will be willing to withdraw his amendment so that our rule might enter into constitutional history more swiftly.
I am very grateful to everyone who has contributed to the debate, despite my injunction that no one was to speak other than those key persons—but it was nice to hear views around the House in support for this proposal, with caution. The noble Baroness, Lady Stowell, was right to be clear that we have to be focused on where we are going on this; there is quite a lot at stake here, and it is a much bigger issue than simply this Bill and these particular issues. Her willingness to take this on in a wider context is most welcome, and I look forward to hearing how that goes. I am also very grateful for the unexpected but very welcome support from the noble Baroness, Lady Fox. It was nice that she finally agreed to meet on one piece of territory, if we cannot agree on some of the others. The noble Lord, Lord Kamall, is right to say that we need to pick up the much broader question about who regulates those who regulate us. This is not the answer, but it certainly gets us a step in the direction.
I was grateful to the Minister for suggesting that the “Parkinson rule” could take flight, but I shall continue to call it by a single name—double-barrelled names are not appropriate here. We will see the results of that in the consultation; the things that already have to be consulted about will be offered to the committees, and it is up to them to respond on that, but it is a very good start. The idea that drafts and issues that are being prepared for future regulation will be shown ahead of the formal process is exactly where I wanted to be on this, so I am very grateful for that. I withdraw the amendment.
My Lords, if I may, I shall speak very briefly, in the absence of my noble friend Lady Kidron, and because I am one of the signatories of this amendment, alongside the noble Lord, Lord Stevenson, and the right reverend Prelate the Bishop of Oxford. Amendment 240, together with a number of amendments that we will be debating today, turns on a fundamental issue that we have not yet resolved.
I came in this morning being told that we would be voting on this amendment and that other amendments later today would be consequential—I am a novice at this level of parliamentary procedure, so forgive me if I have got myself confused during the day—but I now understand that my noble friend considers this amendment to be consequential but, strangely, the amendments right at the end of the day are not. I just wanted to flag to the House that they all cover the same fundamental issue of whether harms can be unrelated to content, whether the harms of the online world can be to do with functionality—the systems and processes that drive the addiction that causes so much harm to our children.
It is a fundamental disagreement. I pay tribute to the amount of time the department, the Secretary of State and my noble friend have spent on it, but it is not yet resolved and, although I understand that I should now say that I beg leave to move the amendment formally, I just wanted to mark, with apologies, the necessity, most likely, of having to bring the same issue back to vote on later today.
My Lords, His Majesty’s Government indeed agree that this is consequential on the other amendments, including Amendment 35, which the noble Baroness, Lady Kidron, previously moved at Report. We disagreed with them, but we lost that vote; this is consequential, and we will not force a Division on it.
We will have further opportunity to debate the fundamental issues that lie behind it, to which my noble friend Lady Harding just referred. Some of the amendments on which we may divide later, the noble Baroness, Lady Kidron, tabled after defeating the Government the other day, so we cannot treat them as consequential. We look forward to debating them; I will urge noble Lords not to vote for them, but we will have opportunity to discuss them later.
My Lords, these amendments are concerned with Ofcom’s powers under Clause 111 to issue notices to deal with terrorism content and child sexual exploitation and abuse content.
I acknowledge the concerns which have been aired about how these powers work with encrypted services. I want to make it clear that the Bill does not require companies to break or weaken encryption, and we have built in strong safeguards to ensure that users’ privacy is protected. Encryption plays an important role online, and the UK supports its responsible use. I also want to make it clear that we are not introducing a blanket requirement for companies to monitor all content for all harms, at all times. That would not be proportionate.
However, given the serious risk of harm to children from sexual abuse and exploitation online, the regulator must have appropriate, tightly targeted powers to compel companies to take the most effective action to tackle such reprehensible illegal activity which is taking place on their services. We must ask companies to do all that is technically feasible to keep children safe, subject to stringent legal safeguards.
The powers in the Bill are predicated on risk assessments. If companies are managing the risks on their platform appropriately, Ofcom will not need to use its powers. As a last resort, however, where there is clear evidence of child sexual abuse taking place on a platform, Ofcom will be able to direct companies either to use, or to make best efforts to develop or source, accredited and accurate technology to identify and remove this illegal content. To be clear, these powers will not enable Ofcom or our law enforcement agencies to obtain any automatic access to the content detected. It is simply a matter of making private companies take effective action to prevent child sexual abuse on their services.
Ofcom must consider a wide range of matters when deciding whether a notice is necessary and proportionate, including the impacts on privacy and freedom of expression of using a particular technology on a particular service. Ofcom will only be able to require the use of technology accredited as highly accurate in detecting illegal child sexual abuse or terrorism content, vastly minimising the risk that content is wrongly identified.
In addition to these safeguards, as a public body, Ofcom is bound through the Human Rights Act 1998 by the European Convention on Human Rights, including Articles 8 and 10. Ofcom has an obligation not to act in a way which unduly interferes with the right to privacy and freedom of expression when carrying out its duties, for which it is held to account.
If appropriate technology does not exist which meets these requirements, Ofcom cannot require its use. That is why the powers include the ability for Ofcom to require companies to make best endeavours to develop or source a solution. It is right that we can require technology companies to use their considerable resources and expertise to develop the best possible protections for children in encrypted environments.
Despite the breadth of the existing safeguards, we recognise that concerns remain about these powers, and we have listened to the points that noble Lords raised in Committee about privacy and technical feasibility. That is why we are introducing additional safeguards. I am grateful for the constructive engagement I have had with noble Lords across your Lordships’ House on this issue, and I hope that the government amendments alleviate their concerns.
I turn first to our Amendments 250B, 250C, 250D, 255A, 256A, 257A, 257B, 257C and 258A, which require that Ofcom obtain a skilled persons’ report before issuing a warning notice and exercising its powers under Clause 111. This independent expert scrutiny will supplement Ofcom’s own expertise to ensure that it has a full understanding of relevant technical issues to inform its decision-making. That will include issues specific to the service in question, such as its design and relevant factors relating to privacy.
I am grateful to noble Lords for their further scrutiny of this important but complex area, and for the engagement that we have had in the days running up to it as well. We know how child sexual exploitation and abuse offenders sadly exploit private channels, and the great danger that this poses, and we know how crucial these channels are for secure communication. That is why, where necessary and proportionate, and where all the safeguards are met, it is right that Ofcom can require companies to take all technically feasible measures to remove this vile and illegal content.
The government amendments in this group will go further to ensure that a notice is well informed and targeted and does not unduly restrict users’ rights. Privacy and safety are not mutually exclusive—we can and must have both. The safety of our children depends on it.
I make it clear again that the Bill does not require companies to break or weaken end-to-end encryption on their services. Ofcom can require the use of technology on an end-to-end encrypted service only when it is technically feasible and has been assessed as meeting minimum standards of accuracy. When deciding whether to issue a notice, Ofcom will engage in continual dialogue with the company and identify reasonable, technically feasible solutions to the issues identified. As I said in opening, it is right that we require technology companies to use their considerable resources and expertise to develop the best possible protections to keep children safe in encrypted environments. They are well placed to innovate to find solutions that protect both the privacy of users and the safety of children.
Just to be clear, am I right to understand my noble friend as saying that there is currently no technology that would be technically acceptable for tech companies to do what is being asked of them? Did he say that tech companies should be looking to develop the technology to do what may be required of them but that it is not currently available to them?
For clarification, if the answer to that is that the technology does not exist—which I believe is correct, although there are various snake oil salespeople out there claiming that it does, as the noble Baroness, Lady Fox of Buckley, said—my noble friend seems to be saying that the providers and services should develop it. This seems rather circular, as the Bill says that they must adopt an approved technology, which suggests a technology that has been imposed on them. What if they cannot and still get such a notice? Is it possible that these powers will never be capable of being used, especially if they do not co-operate?
To answer my noble friend Lady Stowell first, it depends on the type of service. It is difficult to give a short answer that covers the range of services that we want to ensure are covered here, but we are seeking to keep this and all other parts of the Bill technology neutral so that, as services develop, technology changes and criminals, unfortunately, seek to exploit that, technology companies can continue to innovate to keep children safe while protecting the privacy of their users. That is a long-winded answer to my noble friend’s short question, but necessarily so. Ofcom will need to make its assessments on a case- by-case basis and can require a company to use its best endeavours to innovate if no effective and accurate technology is currently available.
While I am directing my remarks towards my noble friend, I will also answer a question she raised earlier on general monitoring. General monitoring is not a legally defined concept in UK law; it is a term in European Union law that refers to the generalised monitoring of user activity online, although its parameters are not clearly defined. The use of automated technologies is already fundamental to how many companies protect their users from the most abhorrent harms, including child sexual abuse. It is therefore important that we empower Ofcom to require the use of such technology where it is necessary and proportionate and ensure that the use of these tools is transparent and properly regulated, with clear and appropriate safeguards in place for users’ rights. The UK’s existing intermediary liability regime remains in place.
Amendment 255 from my noble friend Lord Moylan seeks to prevent Ofcom imposing any requirement in a notice that would weaken or remove end-to-end encryption. He is right that end-to-end encryption should not be weakened or removed. The powers in the Bill will not do that. These powers are underpinned by proportionality and technical feasibility; if it is not proportionate or technically feasible for companies to identify child sexual exploitation abuse content on their platform while upholding users’ right to privacy, Ofcom cannot require it.
I agree with my noble friend and the noble Baroness, Lady Fox, that encryption is a very important and popular feature today. However, with technology evolving at a rapid rate, we cannot accept amendments that would risk this legislation quickly becoming out of date. Naming encryption in the Bill would risk that happening. We firmly believe that the best approach is to focus on strong safeguards for upholding users’ rights and ensuring that measures are proportionate to the specific situation, rather than on general features such as encryption.
The Bill already requires Ofcom to consider the risk that technology could result in a breach of any statutory provision or rule of law concerning privacy and whether any alternative measures would significantly reduce the amount of illegal content on a service. As I have said in previous debates, Ofcom is also bound by the Human Rights Act not to act inconsistently with users’ rights.
Will the Minister write to noble Lords who have been here in Committee and on Report in response to the fact that it is not just encryption companies saying that the demands of this clause will lead to the breaching of encryption, even though the Minister and the Government keep saying that it will not? As I have indicated, a wide range of scientists and technologists are saying that, whatever is said, demanding that Ofcom insists that technology notices are used in this way will inadvertently lead to the breaking of encryption. It would be useful if the Government at least explained scientifically and technologically why those experts are wrong and they are right.
I am very happy to put in writing what I have said from the Dispatch Box. The noble Baroness may find that it is the same, but I will happily set it out in further detail.
I should make it clear that the Bill does not permit law enforcement agencies to access information held on platforms, including access to private channels. The National Crime Agency will be responsible for receiving reports from in-scope services via secure transmission, processing these reports and, where appropriate, disseminating them to other UK law enforcement bodies and our international counterparts. The National Crime Agency will process only information provided to it by the company; where it determines that the content is child sexual abuse content and meets the threshold for criminality, it can request further information from the company using existing powers.
I am glad to hear that my noble friend Lord Moylan does not intend to divide on his amendment. The restrictions it sets out are not ones we should impose on the Bill.
Amendments 256, 257 and 259 in the name of the noble Lord, Lord Stevenson of Balmacara, require a notice to be approved by a judicial commissioner appointed under the Investigatory Powers Act 2016 and remove Ofcom’s power to require companies to make best endeavours to develop or source new technology to address child sexual exploitation and abuse content.
I appreciate the tone of the Minister’s comments very much, but they are not entirely reassuring me. There is a debate going on out there: there are people saying, “We’ve got these fabulous technologies that we would like Ofcom to order companies to install” and there are companies saying, “That would be disastrous and break encryption if we had to install them”. That is a dualistic situation where there is a contest going on. My amendment seeks to make sure the conflict can be properly resolved. I do not think Ofcom on its own can ever do that, because Ofcom will always be defending what it is doing and saying “This is fine”. So, there has to be some other mechanism whereby people can say it is not fine and contest that. As I say, in this debate we are ignoring the fact that they are already out there: people saying “We think you should deploy this” and companies saying “It would be disastrous if we did”. We cannot resolve that by just saying “Trust Ofcom”.
To meet the expectation the noble Lord voiced earlier, I will indeed point out that Ofcom can consult the ICO as a skilled person if it wishes to. It is important that we square the circle and look at these issues. The ICO will be able to be involved in the way I have set out as a skilled person.
Before I conclude, I want to address my noble friend Lady Harding’s questions on skilled persons. Given that notices will be issued on a case-by-case basis, and Ofcom will need to look at specific service design and existing systems of a provider to work out how a particular technology would interact with that design system, a skilled person’s report better fits this process by requiring Ofcom to obtain tailored advice rather than general technical advice from an advisory board. The skilled person’s report will be largely focused on the technical side of Ofcom’s assessment: that is to say, how the technology would interact with the service’s design and existing systems. In this way, it offers something similar to but more tailored than a technical advisory board. Ofcom already has a large and expert technology group, whose role it is to advice policy teams on new and existing technologies, to anticipate the impact of technologies and so on. It already has strong links with academia and with external researchers. A technical advisory board would duplicate that function. I hope that reassures my noble friend that the points she raised have been taken into account.
So I hope the noble Lord, Lord Allan, will not feel the need to divide—
Before the Minister finishes, I posed the question about whether, given the debate and issues raised, he felt completely satisfied that we had arrived at the right solution, and whether there was a case for withdrawing the amendment at this stage and bringing it back at Third Reading, having had further discussions and debate where we could all agree. I take it his answer is “no”.
I am afraid it is “no”, and if the noble Lord, Lord Allan, does seek to divide, we will oppose his amendment. I commend the amendments standing in my name in this group to the House.
“Section (Assessment duties: user empowerment) | Assessments related to duty in section 12(2)” |
My Lords, in moving Amendment 262A, I will speak also to the other government amendments in the group. These amendments address the Bill’s enforcement powers. Government Amendments 262A, 262B, 262C, 264A and 266A, Amendments 265, 266 and 267, tabled by my noble friend Lord Bethell, and Amendment 268 tabled by the noble Lord, Lord Stevenson of Balmacara, relate to senior management liability. Amendment 268C from the noble Lord, Lord Weir of Ballyholme, addresses interim service restriction orders.
In Committee, we amended the Bill to create an offence of non-compliance with steps set out in confirmation decisions that relate to specific children’s online safety duties, to ensure that providers and individuals can be held to account where their non-compliance risks serious harm to children. Since then, we have listened to concerns raised by noble Lords and others, in particular that the confirmation decision offence would not tackle child sexual exploitation and abuse. That is why the government amendments in this group will create a new offence of a failure to comply with a child sexual exploitation and abuse requirement imposed by a confirmation decision. This will mean that providers and senior managers can be held liable if they fail to comply with requirements to take specific steps as set out in Ofcom’s confirmation decision in relation to child sexual exploitation and abuse on their service.
Ofcom must designate a step in a confirmation decision as a child sexual exploitation and abuse requirement, where that step relates, whether or not exclusively, to a failure to comply with specific safety duties in respect of child sexual exploitation and abuse content. Failure to comply with such a requirement will be an offence. This approach is necessary, given that steps may relate to multiple or specific kinds of illegal content, or systems and process failures more generally. This approach will ensure that services know from the confirmation decision when they risk criminal liability, while providing sufficient legal certainty via the specified steps to ensure that the offence can be prosecuted effectively.
The penalty for this offence is up to two years in prison, a fine or both. Through Clause 182, where an offence is committed with the consent or connivance of a senior manager, or attributable to his or her neglect, the senior manager, as well as the entity, will have committed the offence and can face up to two years in prison, a fine or both.
I thank my noble friend Lord Bethell, as well as our honourable friends Miriam Cates and Sir William Cash in another place, for their important work in raising this issue and their collaborative approach as we have worked to strengthen the Bill in this area. I am glad that we have reached a position that will help to keep children safe online and drive a change in culture in technology companies. I hope this amendment reassures them and noble Lords that the confirmation decision offence will tackle harms to children effectively by ensuring that technology executives take the necessary steps to keep children safe online. I beg to move.
My Lords, I will briefly comment positively on the Minister’s explanation of how these offences might work, particularly the association of the liability with the failure to enforce a confirmation decision, which seems entirely sensible. In an earlier stage of the debate, there was a sense that we might associate liability with more general failures to enforce a duty of care. That would have been problematic, because the duty of care is very broad and requires a lot of pieces to be put in place. Associating the offences with the confirmation decision makes absolute sense. Having been in that position, if, as an executive in a tech company, I received a confirmation decision that said, “You must do these things”, and I chose wilfully to ignore that decision, it would be entirely reasonable for me to be held potentially criminally liable for that. That association is a good step forward.
My Lords, we welcome the government amendments in this group to bring child sexual exploitation and abuse failures into the scope of the senior manager liability and enforcement regime but consider that they do not go far enough. On the government amendments, I have a question for the Minister about whether, through Clause 122, it would be possible to require a company that was subject to action to do some media literacy as part of its harm reduction; in other words, would it be possible for Ofcom to use its media literacy powers as part of the enforcement process? I offer that as a helpful suggestion.
We share the concerns expressed previously by the noble Lord, Lord Bethell, about the scope of the senior manager liability regime, which does not cover all the child safety duties in the Bill. We consider that Amendment 268, in the name of my noble friend Lord Stevenson, would provide greater flexibility, giving the possibility of expanding the list of duties covered in the future. I have a couple of brief questions to add to my first question. Will the Minister comment on how the operation of the senior manager liability regime will be kept under review? This has, of course, been something of a contentious issue in the other place, so could the Minister perhaps tell your Lordships’ House how confident he is that the current position is supported there? I look forward to hearing from the Minister.
I did not quite finish writing down the noble Baroness’s questions. I will do my best to answer them, but I may need to follow up in writing because she asked a number at the end, which is perfectly reasonable. On her question about whether confirmation decision steps could include media literacy, yes, that is a good idea; they could.
Amendment 268, tabled by the noble Lord, Lord Stevenson of Balmacara, seeks to enable the Secretary of State, through regulation, to add to the list of duties which are linked to the confirmation decision offence. We are very concerned at the prospect of allowing an unconstrained expansion of the confirmation decision offence. In particular, as I have already set out, we would be concerned about expansion of those related to search services. There is also concern about unconstrained additions of any other duties related to user-to-user services as well.
We have chosen specific duties which will tackle effectively key issues related to child safety online and tackling child abuse while ensuring that the confirmation decision offence remains targeted. Non-compliance with a requirement imposed by a confirmation decision in relation to such duties warrants the prospect of criminal enforcement on top of Ofcom’s extensive civil enforcement powers. Making excessive changes to the offence risks shifting the regime towards a more punitive and disproportionate enforcement model, which would represent a significant change to the framework as a whole. Furthermore, expansion of the confirmation decision offence could lead to services taking an excessively cautious approach to content moderation to avoid the prospect of criminal liability. We are also concerned that such excessive expansion could significantly increase the burden on Ofcom.
I am grateful to the noble Lord, Lord Weir of Ballyholme, and the noble Baroness, Lady Benjamin, for the way they set out their Amendment 268C. We are concerned about this proposal because it is important that Ofcom can respond to issues on a case-by-case basis: it may not always be appropriate or proportionate to use a specific enforcement power in response to a suspected breach. Interim service restriction orders are some of the strongest enforcement powers in the Bill and will have a significant impact on the service in question. Their use may be disproportionate in cases where there is only a minor breach, or where a service is taking steps to deal with a breach following a provisional notice of contravention.
My Lords, I think the upshot of this brief debate is that the noble Lord, Lord Knight —how he was tracked down in a Pret A Manger, I have no idea; he is normally too fast-moving for that—in his usual constructive and creative way is asking the Government to constructively engage to find a solution, which he discussed in that Pret A Manger, involving a national helpline, the NSPCC and the Children’s Commissioner, for the very reasons that he and my noble friend Lord Allan have put forward. In no way would this be some of kind of quango, in the words of the noble Baroness, Lady Fox.
This is really important stuff. It could be quite a game-changer in the way that the NSPCC and the Children’s Commissioner collaborate on tackling the issues around social media, the impact of the new rights under the Bill and so on. I very much hope that the Government will be able to engage positively on this and help to bring the parties together to, in a sense, deliver something which is not in the Bill but could be of huge importance.
My Lords, first, I reassure noble Lords that the Government are fully committed to making sure that the interests of children are both represented and protected. We believe, however, that this is already achieved through the provisions in the Bill.
Rather than creating a single advocacy body to research harms to children and advocate on their behalf, as the noble Lord’s amendment suggests, the Bill achieves the same effect through a combination of Ofcom’s research functions, the consultation requirements and the super-complaints provisions. Ofcom will be fully resourced with the capacity and technological ability to assess and understand emerging harms and will be required to research children’s experiences online on an ongoing basis.
For the first time, there will be a statutory body in place charged with protecting children from harm online. As well as its enforcement functions, Ofcom’s research will ensure that the framework remains up to date and that Ofcom itself has the latest, in-depth information to aid its decision-making. This will ensure that new harms are not just identified in retrospect when children are already affected by them and complaints are made; instead, the regulator will be looking out for new issues and working proactively to understand concerns as they develop.
Children’s perspectives will play a central role in the development of the framework, as Ofcom will build on its strong track record of qualitative research to ensure that children are directly engaged. For example, Ofcom’s ongoing programme, Children’s Media Lives, involves engaging closely with children and tracking their views and experiences year on year.
Alongside its own research functions, super-complaints will ensure that eligible bodies can make complaints on systemic issues, keeping the regulator up to date with issues as they emerge. This means that if Ofcom does not identify a systemic issue affecting children for any reason, it can be raised and then dealt with appropriately. Ofcom will be required to respond to the super-complaint, ensuring that its subsequent decisions are understood and can be scrutinised. Complaints by users will also play a vital role in Ofcom’s horizon scanning and information gathering, providing a key means by which new issues can be raised.
The extensive requirements for Ofcom to consult on codes of practice and guidance will further ensure that it consistently engages with groups focused on the interests of children as the codes and guidance are developed and revised. Children’s interests are embedded in the implementation and delivery of this framework.
The Children’s Commissioner will play a key and ongoing role. She will be consulted on codes of practice and any further changes to those codes. The Government are confident that she will use her statutory duties and powers effectively to understand children’s experiences of the digital world. Her primary function as Children’s Commissioner for England is promoting and protecting the rights of children in England and to promote and protect the rights of children across the United Kingdom where those rights are or may be affected by reserved matters. As the codes of practice and the wider Bill relate to a reserved area of law—namely, internet services—the Children’s Commissioner for England will be able to represent the interests of children from England, Scotland, Wales and Northern Ireland when she is consulted on the preparation of codes of practice. That will ensure that children’s voices are represented right across the UK. The Children’s Commissioner for England and her office also regularly speak to the other commissioners about ongoing work on devolved and reserved matters. Whether she does that in branches of Pret A Manger, I do not know, but she certainly works with her counterparts across the UK.
I am very happy to take back the idea that the noble Lord has raised and discuss it with the commissioner. There are many means by which she can carry out her duties, so I am very happy to take that forward. I cannot necessarily commit to putting it in legislation, but I shall certainly commit to discussing it with her. On the proposals in the noble Lord’s amendment, we are concerned that a separate child user advocacy body would duplicate the functions that she already has, so I hope with that commitment he will be happy to withdraw.
My Lords, I am grateful to those who have spoken in this quick debate and for the support from the noble Lord, Lord Allan of Hallam, and the noble Baroness, Lady Fox, about children’s voices being heard. I think that we are getting to the point when there will not be a quango or indeed a minefield, so that makes us all happy. The Minister almost derailed me, because so much of his speaking note was about the interests of children and I am more interested in the voice of children being heard directly rather than people acting on their behalf and representing their interests, but his final comments around being happy to take the idea forward means that I am very happy to withdraw my amendment.
My Lords, as we have heard, the noble Baroness, Lady Harding, made a very clear case in support of these amendments, tabled in the name of the noble Baroness, Lady Kidron, and supported by noble Lords from across the House. The noble Baroness, Lady Morgan, gave wise counsel to the Minister, as did the noble Lord, Lord Clement-Jones, that it is worth stepping back and seeing where we are in order to ensure that the Bill is in the right place. I urge the Minister to find the time and the energy that I know he has—he certainly has the energy and I am sure he will match it with the time—to speak to noble Lords over the coming Recess to agree a way to incorporate systems and functionality into the Bill, for all the reasons we have heard.
On Monday, my noble friend Lord Knight spoke of the need for a review about loot boxes and video games. When we checked Hansard, we saw the Minister had promised that such a review would be offered in the coming months. In an unusual turn of events, the Minister exceeded the timescale. We did not have to hear the words “shortly”, “in the summer” or “spring” or anything like that, because it was announced the very next day that the department would keep legislative options under review.
I make that point simply to thank the Minister for the immediate response to my noble friend Lord Knight. But, if we are to have such a review, does this not point very much to the fact that functionality and systems should be included in the Bill? The Minister has a very nice hook to hang this on and I hope that he will do so.
My Lords, this is not just a content Bill. The Government have always been clear that the way in which a service is designed and operated, including its features and functionalities, can have a significant impact on the risk of harm to a user. That is why the Bill already explicitly requires providers to ensure their services are safe by design and to address the risks that arise from features and functionalities.
The Government have recognised the concerns which noble Lords have voiced throughout our scrutiny of the Bill, and those which predated the scrutiny of it. We have tabled a number of amendments to make it even more explicit that these elements are covered by the Bill. We have tabled the new introductory Clause 1, which makes it clear that duties on providers are aimed at ensuring that services are safe by design. It also highlights that obligations on services extend to the design and operation of the service. These obligations ensure that the consideration of risks associated with the business model of a service is a fundamental aspect of the Bill.
My noble friend Baroness Harding of Winscombe worried that we had made the Bill worse by adding this. The new clause was a collaborative one, which we have inserted while the Bill has been before your Lordships’ House. Let me reassure her and other noble Lords as we conclude Report that we have not made it worse by so doing. The Bill will require services to take a safety by design approach to the design and operation of their services. We have always been clear that this will be crucial to compliance with the legislation. The new introductory Clause 1 makes this explicit as an overarching objective of the Bill. The introductory clause does not introduce any new concepts; it is an accurate summary of the key provisions and objectives of the Bill and, to that end, the framework and introductory statement are entirely compatible.
We also tabled amendments—which we debated last Monday—to Clause 209. These make it clear that functionalities contribute to the risk of harm to users, and that combinations of functionality may cumulatively drive up the level of risk. Amendment 281BA would amend the meaning of “functionality” within the Bill, so that it includes any system or process which affects users. This presents a number of concerns. First, such a broad interpretation would mean that any service in scope of the Bill would need to consider the risk of any feature or functionality, including ones that are positive for users’ online experience. That could include, for example, processes designed for optimising the interface depending on the user’s device and language settings. The amendment would increase the burden on service providers under the existing illegal content and child safety duties and would dilute their focus on genuinely risky functionality and design.
Second, by duplicating the reference to systems, processes and algorithms elsewhere in the Bill, it implies that the existing references in the Bill to the design of a service or to algorithms must be intended to capture matters not covered by the proposed new definition of “functionality”. This would suggest that references to systems and processes, and algorithms, mentioned elsewhere in the Bill, cover only systems, processes or algorithms which do not have an impact on users. That risks undermining the effectiveness of the existing duties and the protections for users, including children.
Amendment 268A introduces a further interpretation of features and functionality in the general interpretation clause. This duplicates the overarching interpretation of functionality in Clause 208 and, in so doing, introduces legal and regulatory uncertainty, which in turn risks weakening the existing duties. I hope that sets out for my noble friend Lady Harding and others our legal concerns here.
Amendment 281FA seeks to add to the interpretation of harm in Clause 209 by clarifying the scenarios in which harm may arise, specifically from services, systems and processes. This has a number of concerning effects. First, it states that harm can arise solely from a system and process, but a design choice does not in isolation harm a user. For example, the decision to use algorithms, or even the algorithm itself, is not what causes harm to a user—it is the fact that harmful content may be pushed to a user, or content pushed in such a manner that is harmful, for example repeatedly and in volume. That is already addressed comprehensively in the Bill, including in the child safety risk assessment duties.
Secondly, noble Lords should be aware that the drafting of the amendment has the effect of saying that harm can arise from proposed new paragraphs (a) (b) and (c)—
Can I just double-check what my noble friend has just said? I was lulled into a possibly false sense of security until we got to the point where he said “harmful” and then the dreaded word “content”. Does he accept that there can be harm without there needing to be content?
This is the philosophical question on which we still disagree. Features and functionality can be harmful but, to manifest that harm, there must be some content which they are functionally, or through their feature, presenting to the user. We therefore keep talking about content, even when we are talking about features and functionality. A feature on its own which has no content is not what the noble Baroness, Lady Kidron, my noble friend Lady Harding and others are envisaging, but to follow the logic of the point they are making, it requires some content for the feature or functionality to cause its harm.
Yes, even if the content is not harmful. We keep saying “content” because it is the way the content is disseminated, as the Bill sets out, but the features and functionalities can increase the risks of harm as well. We have addressed this through looking at the cumulative effects and in other ways.
This is the key question. For example, let us take a feature that is pushing something at you constantly; if it was pushing poison at you then it would obviously be harmful, but if it was pushing marshmallows then they would be singularly not harmful but cumulatively harmful. Is the Minister saying that the second scenario is still a problem and that the surfeit of marshmallows is problematic and will still be captured, even if each individual marshmallow is not harmful?
Yes, because the cumulative harm—the accumulation of marshmallows in that example—has been addressed.
Noble Lords should also be aware that the drafting of Amendment 281FA has the effect of saying that harm can arise from proposed new paragraphs (a), (b) and (c)—for example, from the
“age or characteristics of the likely user group”.
In effect, being a child or possessing a particular characteristic may be harmful. This may not be the intention of the noble Baronesses who tabled the amendment, but it highlights the important distinction between something being a risk factor that influences the risk of harm occurring and something being harmful.
The Government are clear that these aspects should properly be treated as risk factors. Other parts of the Bill already make it clear that the ways in which a service is designed and used may impact on the risk of harm suffered by users. I point again to paragraphs (f) to (h) of Clause 10(6); paragraph (e) talks about the level of risk of functionalities of the service, paragraph (f) talks about the different ways in which the service is used, and so on.
We have addressed these points in the Bill, though clearly not to the satisfaction of my noble friend, the noble Baroness, Lady Kidron, and others. As we conclude Report, I recognise that we have not yet convinced everyone that our approach achieves what we all seek, though I am grateful for my noble friend’s recognition that we all share the same aim in this endeavour. As I explained to the noble Baroness, Lady Kidron, on her Amendment 35, I was asking her not to press it because, if she did, the matter would have been dealt with on Report and we would not be able to return to it at Third Reading.
As the Bill heads towards another place with this philosophical disagreement still bubbling away, I am very happy to commit to continuing to talk to your Lordships—particularly when the Bill is in another place, so that noble Lords can follow the debates there. I am conscious that my right honourable friend Michelle Donelan, who has had a busy maternity leave and has spoken to a number of your Lordships while on leave, returns tomorrow in preparation for the Bill heading to her House. I am sure she will be very happy to speak even more when she is back fully at work, but we will both be happy to continue to do so.
I think it is appropriate, in some ways, that we end on this issue, which remains an area of difference. With that promise to continue these discussions as the Bill moves towards another place, I hope that my noble friend will be content not to press these amendments, recognising particularly that the noble Baroness, Lady Kidron, has already inserted this thinking into the Bill for consideration in the other House.