Investigatory Powers Bill
David Lammy Excerpts(8 years, 1 month ago)
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Mrs May
It is impossible to put a time on it, because each decision differs. The amount of information that is available, the type of case that one is looking at and the extent to which it refers to a matter that is already being considered vary. The amount of time I give to each case is the amount of time necessary to make the right judgment.
Mr David Lammy (Tottenham) (Lab)
I am grateful to the Secretary of State, and I recognise the sensitivity of these matters. She will know that there have been cases in which police misconduct is alleged and intercept has been used, and subsequently it has been very hard to use that evidence in front of a jury, particularly in a coroner’s court. Does she envisage any change in that? Is she minded to put that in the legislation?
Mrs May
The right hon. Gentleman has raised a very important point. He will be aware of one particular case in recent years in which the admissibility of evidence at inquest has been an issue. That is not a matter that we are putting in the Bill. It was explored when the closed material proceedings were brought into legislation through certain cases. We are looking actively at whether there are other means by which we can ensure that the appropriate information is available when such cases are being considered.
Gangs and Serious Youth Violence
David Lammy Excerpts(8 years, 2 months ago)
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Mr David Lammy (Tottenham) (Lab)
I am very grateful for the opportunity to participate in this important debate. I congratulate my hon. Friend the Member for Streatham (Mr Umunna) on holding it. I know that, behind the scenes, my hon. Friend the Member for Lewisham, Deptford (Vicky Foxcroft) has been quietly campaigning in the Tea Room for such a debate because of the concerns in her constituency. It is fantastic to be joined by my hon. Friend the Member for Westminster North (Ms Buck), who has huge experience of these issues and has continually brought them, certainly during my years in Parliament, to the House’s attention.
This is where I start: the issue is not new. In a sense, it is very important not to have this debate as though this is a year zero moment. We have had this problem for several years. Problems with young people getting caught up in crime, particularly in urban and deprived areas, are absolutely not new. Those at home over Christmas who landed on the show “Dickensian”, an adaptation of many of Dickens’s books, and those very familiar with both “Great Expectations” and “Oliver Twist” will know that we had gangs in London. We had groups of young people getting up to criminality in London, and above such gang activity was usually the adult activity running the gangs, so these issues are not new. I was born in the period just after the huge public concern about mods and rockers congregating in different parts—
Mr Lammy
I notice that the Front-Bench Opposition spokesman is absolutely aware of that. She is ever so slightly older than me. At that time, there was real concern about gang activity in seaside areas or in urban areas of the country. The debate in this House about young people and crime and about gang activity is not new, so what is new? I think that the level of violence is new, the age profile is worrying and the geographic spread feels out of control.
On the age profile, the Met police says that its matrix—its central way of recording who is caught up in what it describes as gang activity—had a total of 3,459 individuals at the last time of publication in May 2014. There were 500 individuals under the age of 18: two 13-year-olds, 21 14-year-olds, 71 15-year-olds, 138 16-year-olds and 268 17-year-olds. There were also 356 18-year-olds, while 55% of the total were aged 18 to 22. Something is going on, and it is something we should be very worried about.
Any Members with significant housing estates in their constituency will talk about the arrival in this country of a phenomenon, which we often associate with America, of young people—teenagers—running drug activity on behalf of older individuals.
Helen Hayes (Dulwich and West Norwood) (Lab)
Does my right hon. Friend agree that the serious violence against women and very young girls associated with gang-related activity is not presently recorded appropriately or understood, and that not enough action is being taken on that specific part of this important problem?
Mr Lammy
I am so pleased that my hon. Friend raises that issue, because that is the other factor that is new. I am about to come on to that.
The young age profile has something to do with the fact that enforcement on this national problem is working: the police are locking people up. We are serious about people carrying a knife and, historically, we have been serious about people carrying a gun. The police have locked up some of the older individuals, particularly after the 2011 riots, but all that has done is to drive the crime down to younger individuals.
My hon. Friend the Member for Streatham made a point about the definition of gangs. It is very dangerous to call any congregation of young people a gang. It almost feels as though we call any congregation of young black and brown people a gang. Those of us in the House who have children, particularly children who are getting to their teenage years, know that, to a 12 or 13-year-old, joining a gang is quite attractive. We therefore need to be very careful about the definition of gangs.
Matthew Pennycook
My right hon. Friend rightly raises what happens when the police target older members of criminal gangs—I am talking about criminal gangs, not groups of young people—in operations. It leaves a vacuum that triggers a spike in violence among the younger, lower orders of the gangs, who have been drawn in for the very reasons he cites.
Mr Lammy
My hon. Friend is completely right. What is unfortunately being said about the moral compass of these young people is incredibly worrying. They are impressionable; they are young. For reasons that my hon. Friend the Member for Streatham raised, when I say that they are impressionable, I am referring to the fact that we live in a society that has prioritised choice for the individual above everything else. We live in a society where people have the choice of whether to be exposed to quite serious violence on social media, on television and in parts, although not all, of the games industry. It is hard for modern parents, however much money they have, to distinguish between access to those images and that impression.
We therefore have young people stabbing others, almost as if they do not realise the consequences. It is quite, quite bizarre that someone might not realise that puncturing skin and causing blood loss might lead to a loss of life. I have seen images—they are on YouTube, so we can see them—of young people being stabbed continuously and it being almost like a pastime. My hon. Friend the Member for Lewisham, Deptford is right that much of this goes completely unreported. It never turns up in our hospitals. It is solved by self-medication. People go to the pharmacy and get their band aid. It is sorted out in the community, so there is an indication that this violence is going down.
My hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) raised something else that is new and worrying and that we would not associate, historically, with mods and rockers or Dickensian times: the phenomenon of women, including young women, being at the centre of the action. Again, as some of the older individuals who run the gangs have been locked up—actually, let us be clear that they can still run a gang from prison—they bring in the younger folk. Why? Young folk are less likely to get a sentence if they are caught. They also bring in the women on the estates and prey on the young women. Historically, the Children’s Commissioner has done tremendous work to raise issues such as the sexualisation of women and the way in which women become the victims of gang activity. Someone can hide the knife in their girlfriend’s bedroom or hide their stash with her. She can walk quietly over to the opposite estate and perhaps not get detected or picked up in quite the same way, so the profile is changing.
Mr Umunna
I am grateful to my right hon. Friend for giving way during his powerful speech. The issue is not just girls and women concealing weapons or being used to conceal weapons, but the straightforward exploitation of women in our communities, who are passed from one group of young lads to another. That just does not get talked about nearly enough in my view, as my fellow Lambeth MP, my hon. Friend the Member for Dulwich and West Norwood (Helen Hayes), said.
Mr Lammy
Absolutely; there is a deeply disturbing pattern in the sexualisation of these women, and they are victims. That issue has not been picked up, as has been debated in other places.
All of this leads to a disturbing combination of violence, sexual activity, real victims, both young and female, and criminality in our areas. It is not just Members who are saying that. Dean Haydon, head of Scotland Yard’s homicide and major crime command, said that the presence of 13 and 14-year-olds on the gangs matrix was concerning and warned of exploitation. It is very worrying that 17 men aged 18 or under were fatally stabbed in London just last year.
The Minister published a strategy in January 2016. I ask her as gently as I can, does this problem merit an eight-page strategy or something more considerable? At the back of the strategy in annex A, there is a list of the constituencies that are described as being “Ending Gang and Youth Violence areas”. The first question I have in relation to that is what we mean by “ending”. Are we really dedicated to ending this problem?
I have been in the House for 16 years and this story began around about the time that I came here. In 1994 or ’95, at about the time that Tony Blair became the leader of the Labour party and John Major was coming to the end of his leadership of the Conservative party, we would not have had a debate about youth violence and gangs. It just was not present in the British lexicon at that point in our history. Towards the end of the ’90s, we started to see an upsurge in gun violence and Operation Trident began. I thought this was inappropriate, but it was termed black-on-black violence. That morphed into the strategies that we saw, particularly under Charles Clarke’s leadership as Home Secretary, under the Tony Blair Government. After the riots under the coalition Government, there was also an upsurge.
Why am I talking about annex A? We have to decide whether we want to end this problem. I am afraid that it is going in the wrong direction. I have talked about the young people. I have talked about the women. I have talked about the violence. Other hon. Members have mentioned trauma. Let us look at the geography. In April 2012, the areas that were identified were places like Hackney, Haringey, Islington, Lewisham, Liverpool, Manchester, Nottingham and Sandwell. Hon. Members will not be surprised that those were the areas we wanted to deal with. By December 2012, it had moved on to include Hammersmith and Fulham, Merton and Leeds. When it got to Barnet, Bromley, Havering and Thanet, it started to get quite worrying. Last year, it included Basildon, Grimsby, Harrow, High Wycombe, Southampton and Swindon.
What is going on here? Something that was urban and inner-city has become incredibly suburban. Murders that were traditionally black have become white. It is reflecting on all our young people and they are being caught up in this violence. The picture is not unique to particular communities, but is spreading. There is a geographic spread.
I therefore come back to whether this problem is worth just an eight-page strategy of very anodyne statements:
“We will continue to prioritise the reduction of gang related violence including tackling knife crime.”
How? By when? Local areas are encouraged to continue to follow the approach of
“bringing key partners together and developing an effective local response to gang violence.”
How? Who is going to do that? How do we know what is best practice? We have evidence that some of the gangs straddle different local authorities. There is real spread. Gangs in London—adults, actually—are running young people into the suburbs to sell drugs. How does the strategy in Lewisham or Haringey relate to the strategy in Kent? What is the pattern? That is not mentioned.
Apparently, the Ministry of Justice has brought together analysts
“to examine the evidence base”
and
“ensure responses will be more coherent”,
but how is that analysis being shared? Where do I get hold of it? How are we coming together to deal with it? It does not feel that there is enough of a grip on a spreading epidemic that is taking the lives of young people and inflicting real pain and hardship on differing communities. I believe that is why my hon. Friend the Member for Streatham secured today’s debate.
What is required? We need much better understanding of best practice, and we have to get into the issue of violence in society. Any social worker or youth offending team worker will tell us that domestic violence is often going on in the homes of the people involved. We have the troubled families initiative, but what impact is it having on the problem that we are discussing, given that it seems to be getting worse? The statistics are worrying. The figures up to January 2016 show that there has been an 18% increase in assault with injury and a 22% increase in violence against the person in London. Data from the London ambulance service—we know that there are profound problems with its data, so they are not necessarily the best—show a 9% increase in assaults involving knives. Knife crime is up by 14% in London as a whole over the past 12 months. The situation is urgent, yet it is not figuring in our national conversation and responses in the way that it ought to.
After the 2011 riots, there was huge fanfare, because the Mayor of London, now the hon. Member for Uxbridge and South Ruislip (Boris Johnson)—he is obviously very good at fanfare—brought in Bill Bratton, the commissioner from New York. Hon. Members will remember that he had all the strategies and plans, but what happened to them? There has been some discussion of the model used in Glasgow, where there was a significant problem. What bearing does what Glasgow has done with its violence reduction unit have on the Government’s plans? We have also heard about what has gone on in Chicago and in Boston. The ideas to end the problem are out there, and there are solutions, but where is the coherent strategy to deal with it?
I am sorry to challenge the strategy document, but to people living in or representing one of the areas affected it feels like a civil service exercise, not the deliberate action that we will require. We particularly need not enforcement but diversion activities, especially for our very young souls.
Several hon. Members rose—
Vicky Foxcroft (Lewisham, Deptford) (Lab)
As a new MP, nothing can prepare you for receiving the call from the police telling you that a teenager has been murdered in your constituency. Once was hard enough, but within weeks of each other, it happened twice on exactly the same estate. In fact, since becoming an MP last year, four young people from my constituency have lost their lives due to the needless violence on our streets: Shaquan, Naseem, Kabba and Jamar. I have sat down with many of the family and friends left behind. Many of them are here today. Losing loved ones is hard enough. For them to have been murdered, and to not be able to understand what has happened, is even harder.
I have been calling for a debate on this subject since October last year. I am therefore grateful to my hon. Friend the Member for Streatham (Mr Umunna) for securing the debate, and to the Backbench Business Committee for granting it time.
There is so much we could talk about; there is so much that needs to be said—but we also need to listen. We can all stand here and give passionate speeches about gangs and youth violence, but the truth is that nothing will change. There is no speech that any one of us could give today that will stop our young people killing each other. That is the harsh reality, so what do we do? Do we accept that it happens and simply move on? No. Each one of us has an obligation to find solutions. I believe that they will come from building a stronger, more resilient community base for our country—one where we look out for each other.
Do we write another report, pull some words together and call it a policy? No. The Government need to realise that writing down 2,500 words, giving it the grand title of “Ending Gang Violence and Exploitation” and then calling it a policy simply will not work. There can be no more top-down solutions. Things have changed and we must listen and respond. There are some huge Departments looking at this: the Home Office, the Ministry of Justice and the Mayor’s Office for Policing and Crime in London. None of them can possibly understand the issues being faced by young people on a daily basis. They all engage with young people, but they do so in a tokenistic way. They do so to tick the box that says, “Must engage with young people.” They do not engage in a youth-led way; no, they do so in a “led youth” way. This whole approach needs to change.
Young people and our communities have the solutions, because they are the ones facing the problems. We need a far-reaching, youth-led consultation to really get to grips with the core issues that underpin the reasons for and the impact of the violence that is present in young people’s lives. This is not just about gangs. If we ask 10 people what a gang is, we will get 10 different answers. It is not just about youth violence, either. We need to drop the negative language. Young people are fed up with constantly being portrayed negatively by politicians and the media.
Vicky Foxcroft
I agree with everything my right hon. Friend says. As he said in his speech, the document is so brief that it barely defines anything or suggests what any of the solutions should be. We need to transform the debate fundamentally.
Karen Bradley
I will come on to funding shortly. I am trying to be non-party political, but I might have to make some comments shortly if I am not allowed to continue in that vein. However, I am trying to be non-partisan and I want to work with hon. Members from across the House. I know that they are facing this problem in their communities and I want to ensure that the Home Office extends whatever support we can in order to get a local solution that is right for their area. That will not be a top-down solution, however, and it will not be one size fits all.
Karen Bradley
I will address that point briefly, but I must make some progress because I am conscious that this debate is to be followed by an extremely important debate on Welsh affairs in which many Members want to take part. On the figures, on which the hon. Member for West Ham (Lyn Brown) commented, we want to see these crimes recorded. We want the police to know about them and we want to understand what is happening. I recently visited the A&E department at King’s College hospital in the constituency of the hon. Member for Dulwich and West Norwood (Helen Hayes). It is absolutely tragic that the first opportunity we get to have a teachable moment with these young people is when they turn up at A&E. They are turning up not in an ambulance—the gangs do not phone an ambulance or any other blue light service—but in private cars and being dumped at A&E, and that is the first opportunity that any agency has to make contact with them.
I want to pay tribute to Redthread, which provides young people’s advocates at A&E departments across London. Those advocates are important in making contact not only with the young person who has been the victim of an attack but with their family when they come to visit. They play an important part in keeping that young person in hospital and getting them to speak to someone they trust. That might be the first opportunity we have to speak to them, and we need to find a way of making that happen sooner. This is about education, about working with schools and about working in vulnerable locations. When I talk about the revised programme, I will mention some of the approaches that we are using in that regard. I want all those hidden crimes that are not being recorded at the moment to be reported and recorded so that we can understand what the problem is. [Interruption.] I sense that the hon. Member for Brent Central (Dawn Butler) might want to intervene on me, but this must be the final intervention as I need to make some progress.
Riot Compensation Bill
David Lammy Excerpts(8 years, 3 months ago)
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Mr David Lammy (Tottenham) (Lab)
I am grateful for the manner in which the hon. Gentleman is putting his points. Central Government or local government will often put up the money to persuade big business to get engaged, because businesses want to see match funding. In those circumstances, I am concerned that that money will then be counted against those who go on to claim compensation.
Mike Wood
The right hon. Gentleman makes an extremely important point, one with which I think we would all agree. That is why, to make sure that in that kind of joint venture we do not preclude local authorities or central Government from contributing to what are essentially private, business-led appeals, I would not expect that kind of fund to be deducted from riot compensation payments. This is not a black and white issue, however, and there are points on the spectrum where that kind of detail is far better dealt with in regulations than in a clause of this kind in the Bill. I therefore cannot support the amendment. It is sensible that payments from public funds should not be provided for the same purpose twice, because we have a duty to limit unnecessary burdens on the taxpayer. The right hon. Gentleman is absolutely right in saying that there are occasions when public funds contribute to private appeals. I hope the regulations drawn up to implement the provisions in the clause will allow for such initiatives.
Anne Marie Morris (Newton Abbot) (Con)
I rise to give my support to amendments 1, 2 and 3 in the name of my hon. Friend the Member for Dudley South (Mike Wood). I congratulate him on his hard work in getting the Bill to this stage. He deserves a great deal of credit.
Amendment 1 seeks to insert substantial time limits in the Bill and introduce a two-tier system for making a claim. That will allow those affected by the riots to register a claim within 42 days of the riots starting and then submit evidence within a further 90 days after that. As my hon. Friend says, that gives those affected 132 days from the start of the riots to make their claim and submit evidence. It is crucial that those affected have adequate time to make their claim, especially considering the likelihood that paperwork and/or laptops will have been destroyed in the riots.
Riots are not only physically destructive but emotionally draining. With that in mind, it is important to consider the priorities of those forced from their homes and stripped of their possessions. The immediate reaction is probably not to call the insurance company but to consider urgently where they and their families are going to sleep that night and to ensure that everyone in the family is safe and well. Time will also be needed to process what has happened. I have no doubt we have all been in a position where something so distressing has happened that we fail to take in all the details straightaway.
The days available to make a claim also give the police force in an area struck by riots the ability not only to get the community back into some sort of order but to get their own house in order. There may well be internal processes to decide the best way to proceed or establish the date the riot started. I am sure that many cities, since the 2011 riots, will have put in place better protocols. We hope they will not have to use them, but every police force would need time to get everything in order before considering compensation claims. It has taken us 130 years to modernise the law on riot damages and compensation. I am happy we are doing it and that it is being considered in a measured way on both sides of the House. I therefore support amendment 1.
Amendment 2 is another very good amendment. I am thankful that my constituency was fortunate enough not to experience the riots that gripped many areas of the country in 2011. Despite threats on social media of rioting in Exeter, Plymouth and Truro, Bristol was the only area in the south-west unfortunate enough to be confronted with violent disorder. During the riots in London, more than 100 people were forced from their homes, driven from their livelihoods and forced to make alternative arrangements while their homes were under repair. While unfamiliar with riots, the west country is sadly very familiar with flooding. Floods in my constituency in 2012 caused damage to more than 180 homes, with many forced to seek alternative arrangements, so I know how important the provision of alternative accommodation is when exceptional circumstances occur.
A person’s home is at the centre of their life. People’s day-to-day lives revolve around it. The home is a place of stability, and when that is taken away, it is the most traumatic experience, particularly given the circumstances of a riot. Many who were caught up in the riots across the country experienced activity totally unknown to them. Vandalism, arson, violence and theft are not day-to-day happenings, so we need to make the healing process as smooth as possible, which includes support with alternative accommodation, should we face a similar situation again.
Without the amendment, victims of riotous offenders would be left to pick up the bill for the alternative accommodation required through no fault of their own. I have no doubt that some people who took out insurance will have been told, after their home was destroyed and deemed uninhabitable, that the insurance would not cover the additional costs incurred while essential repairs were carried out on the home. The British Insurance Brokers Association said in 2011 in an article in the Financial Times that
“some insurance policies will also cover people for alternative accommodation costs if they cannot stay in their home”.
I emphasise the word “some”. It means that some were not covered, and although I am not sure on which side the majority falls, if it affects anyone, it is too many.
The amendment is purely a reflection of the clauses normally included in commercial insurance policies that pay out compensation for financial loss caused by disruption. In the instance we refer to, we are compensating the loss of a home due to disruption. Not having a home can inconvenience essential tasks, such as going to work to continue earning or taking children to school. Although neither the amendment nor the Bill replaces insurance, they do provide a safety net for the unexpected circumstances we are all exposed to at some point in life. In the instance of rioting, it is imperative we legislate to compensate people sufficiently, and that is why the amendment is particularly important.
Amendment 3 gives the Secretary of State the power to make regulations setting out the
“considerations that decision-makers must take into account in deciding the amount of compensation payable”.
It is right that she have the power to take these situations into account when making regulations regarding the amount payable to those who need it after riotous behaviour. The ability to curtail the amount one can claim is welcome. Although we must help those who genuinely need support to get back on their feet, we must not allow the taxpayer to pay for the support longer than is necessary.
The extra cost incurred from having to stay in hotels or other rented accommodation would put pressure on most people, but those who have also lost a business are in even greater need of support and assistance. Business owners are the backbone of the British economy, and it is only right that we support them, after they have contributed to our growing economy, by helping them back on their feet and back into their own homes. Of course, the Secretary of State does not have to use the powers—with any luck, she will not have to—but her having them at her disposal will I hope be a comfort to those affected previously by reassuring them that the House has heard their cries for help and support and is taking them seriously. On that note, I add my support to amendments 1, 2 and 3.
Lyn Brown (West Ham) (Lab)
If it is okay with you, Mr Speaker, I would like to associate myself with your kind and apposite remarks about Harry. My sympathies go to his wife Gill and all those who mourn him. My friends on these Benches are in real shock and great sadness at his passing.
I rise to speak to amendments 1, 2 and 3, which have been tabled by the hon. Member for Dudley South (Mike Wood). I shall also speak to amendment 8, which has been tabled by my excellent right hon. Friend the Member for Tottenham (Mr Lammy).
Amendment 1 would ensure that victims of rioting had at least 42 days in which to make a claim for compensation and then a further 90 days in which to submit the necessary evidence. We support that amendment. The Bill is about supporting riot victims, and in order to do that we need to give them adequate time to complete claims for compensation. Can any of us imagine trying to rapidly process a legal claim when our papers have been destroyed, we have no access to our home or business, and our life has been completely and utterly turned upside down? That is exactly the situation in which many riot victims found themselves in 2011. That situation was made all the more difficult by the fact that so many of the victims were unaware that they were entitled to compensation. They needed the time to get their affairs in order.
In 2011, the Home Office appeared to recognise that a short time limit on claims was unfair, and extended the time limit from 14 to 42 days. Amendment 1 gives us certainty that any future victims will be guaranteed at least 42 days in future. That has to be right. The amendment also provides an additional 90 days for victims to gather the necessary evidence to complete their application for compensation. Three months’ breathing room seems entirely appropriate, given the total upheaval that can be wrought to businesses and individuals by the kind of rioting we saw.
My right hon. Friend—the magnificent Member for Tottenham—spoke movingly in Committee about some of the challenges faced by his constituents in 2011. Many had English as a second language, some had their health devastated by the riots, and all had their daily routines completely shattered. They desperately needed more time to put their lives back together before they could deal with compensation claims. I congratulate him on raising the issue of time limits in Committee. If the House accepts amendment 1 today, he will have played a vital role in ensuring that any future victims of rioting are not left in the lurch, as his constituents and those of my hon. Friend the Member for Croydon North (Mr Reed) were.
Mr Lammy
My hon. Friend will know, perhaps more than anybody else in this House, the juxtaposition between shopping centres such as Westfield, where there is big business, and small businesses, which in a constituency such as hers are often run by people newly arrived in this country, making the very best of their lives. Her experience in this matter needs to be recorded.
Lyn Brown
My right hon. Friend is absolutely right—the businesses that were affected in my constituency were small businesses along the Barking Road in Canning Town and, indeed, some in Green Street. As he rightly says, they are not like the businesses in Westfield that have massive resources behind them to enable them to make the claims, clean up quickly and get on with their economic lives.
Amendments 2 and 3 would ensure that victims were entitled to compensation for costs incurred as a result of having to seek alternative accommodation. We support those amendments too. Families should not be pushed into severe financial difficulty because their homes have been rendered uninhabitable by circumstances way beyond their control. Some families affected by the 2011 riots were not able to live in their homes for months, and some for years afterwards, putting them in severe financial difficulty. That was particularly the case in the private rented sector, but it also applied to some homeowners. We all know how expensive short-term rented accommodation can be, particularly here in London. It is only right, therefore, that that should be accounted for in the compensation awarded. I therefore urge the House to accept amendments 2 and 3.
Finally, let me turn to amendment 8, which would ensure that any money claimed in compensation for emergency relief in the immediate aftermath of a riot did not lead to a reduction in the amount of compensation a claimant might receive. It is shameful that this sort of deduction was made in 2011. We support the amendment, because people putting money into charity buckets to help their neighbours through the turmoil of rioting do not expect the compensation due to those victims to be reduced as a result of their kindness. I am not surprised that my hon. Friend the Member for Croydon North reports that his constituents were aghast that their donations led to a reduction in the compensation doled out.
My right hon. Friend the Member for Tottenham also argued in Committee, I thought convincingly, that we do not want to discourage big businesses from helping out small businesses with which they share a high street. Deducting payments as a result of charitable giving would have precisely that unwelcome and rather unpleasant effect. I urge the House to accept amendment 8 so that, in the unwelcome event of future riots, the police and charities can work together to help communities, rather than treating support as a zero-sum game.
I heard what the hon. Member for Dudley South had to say on that matter, but I now look forward to hearing from the Minister on these issues, because I am sure he is going to make us very happy today.
The Minister for Immigration (James Brokenshire)
I, too, want to associate myself with your comments, Mr Speaker, following the sad loss of Harry Harpham. Members throughout the House can all say that Harry was a dedicated public servant. Although we had the privilege of having him in the House only for a short time, he clearly served with distinction in his community, having sat on Sheffield City Council, and he was dedicated to public service. The fact that as recently as 20 January, Harry was here at Prime Minister’s questions standing up for constituents on an issue he believed in, Sheffield Forgemasters, underlines the sort of person he was, the dedication he showed and the fact that he always wanted to stand up for his constituents. The whole House will wish to pass its condolences, thoughts and prayers to his wife, Gill, his children and his whole family, his friends, colleagues and everyone who knew him and who mourns his loss.
I congratulate my hon. Friend the Member for Dudley South (Mike Wood) on the manner in which he has sought to advance the Bill. He has clearly reflected on the helpful debates in Committee, to which the Minister for Policing, Crime and Criminal Justice responded. The Committee worked on themes that were started on Second Reading. I believe that my hon. Friend’s amendments are helpful additions and clarifications to the Bill.
Amendment 1 deals with the time limits, which are set at not less than 42 days and 90 days respectively for lodging claims and producing detailed evidence. That is the right approach to the lodging of an initial claim, and then it is right to allow more time for detailed information to be provided. We support placing those minimum requirements in the Bill.
For clarification and for the further assurance of right hon. and hon. Members, I underline that there might be some exceptional circumstances in which more time is required, perhaps when a claimant falls ill and cannot meet the deadlines, when evidence has been destroyed or cannot be accessed owing to riot damage, or when final cost estimates are contingent on other processes such as planning permission or some other regulatory requirements. We expect the regulations sitting alongside the Bill to provide some flexibility in extenuating circumstances and to allow extensions of time, while recognising the framework and the statutory minimums set out in the Bill.
Amendments 2 and 3 deal with payments for alternative accommodation. They will allow compensation to be paid to uninsured individuals whose home has become uninhabitable as a result of a riot, to cover the cost of alternative accommodation. Amendment 3 makes it clear that regulations may provide for further details of considerations to be taken into account when such claims are made, as well as the length of time for which such costs may be covered.
During the passage of the Bill, Members have highlighted a number of cases in which their constituents had suffered significant hardship following the 2011 riots. We have certainly heard that from the right hon. Member for Tottenham (Mr Lammy) and the hon. Member for Croydon North (Mr Reed).
Mr Lammy
On the issue of constituents who live in private rented accommodation, I recognise that regulations might be the best place to indicate the length of time for which support will be given, but can the Minister provide us with any clarity about whether he considers that to be a matter of weeks or months? People can be living without virtually everything for a considerable length of time after a catastrophe of this sort.
James Brokenshire
At this stage, it is probably best for me to say that we will reflect further before we bring forward the regulations. The right hon. Gentleman has made some important points on behalf of his constituents. I know from our discussions back in 2011 the direct impact of the issues that he rightly took up on behalf of his constituents. Other Members also made direct challenges on behalf of their constituents. We will continue to reflect carefully on the issue as we move towards drawing up the regulations. That is the right approach and provides us with an opportunity to reflect further on the important and powerful points that have been made.
It is the Government’s position that consequential losses should not be covered by the Bill, particularly bearing in mind the impact on the public purse. We agree that it would be unfair for legislation intended to help those in the greatest need not to provide support to people who have lost their homes, so we support the proposed exception to the prohibition on compensation for consequential losses to permit individuals to recover the additional costs of alternative accommodation following a riot.
Mr Speaker
With this it will be convenient to discuss the following:
Amendment 6, page 5, line 19, leave out from “maximum” to “per”.
Amendments 6 and 7 together represent an alternative to amendment 4 and to amendment 5. They would make determining the compensation cap subject to parliamentary approval and also provide for its review and revision on the same basis without recourse to further primary legislation.
Amendment 5, page 5, line 19, leave out “1” and insert “10”.
This amendment is an alternative to amendment 4 and would increase the £1 million compensation cap to £10 million.
Amendment 7, page 5, line 20, at end insert—
‘(1A) The compensation cap (the “cap”) under subsection (1) must be determined, and revised every three years, by regulations made by the Secretary of State, with the following elements:
(a) the cap may apply differently, or be set at a different level, in different areas; and
(b) the Secretary of State must publish:
(i) the methodology used; and
(ii) the first draft determination of the cap for public consultation within a month of the day after the day on which this Act is passed.
(1B) The Secretary of State must lay before the House of Commons a draft of the regulations making the final determination or revision in a statutory instrument alongside a statement of whether and how the responses to the public consultation were taken into account.
(1C) A statutory instrument under subsection (1B) must be laid in draft before the House of Commons and may not be made until approved by resolution of that House.
(1D) Notwithstanding section 12, section 8 shall come into force on the day after the day on which this Act is passed for the purposes of subsection (1A).
(1E) Until a determination has been approved by the House of Commons, no cap shall apply.
Amendments 6 and 7 together represent an alternative to amendment 4 and to amendment 5. They would make determining the compensation cap subject to parliamentary approval and also provide for its review and revision on the same basis without recourse to further primary legislation.
Amendment 9, page 6, leave out lines 16 and 17.
This amendment is consequential on amendment 4 and on amendment 7.
Mr Lammy
The amendments address the issue of the £1 million compensation cap. It is important for the House and for individuals beyond it who, unfortunately, may find themselves caught up in a riot that we interrogate how the Government reached that figure. In Committee, I raised the issue of the cost of running a business and the fact that it varies across the country. The price of running a newsagent, off-licence or small gift shop in Yeovil is different from the cost in Northumbria and different again from the cost in Tottenham, yet this £1 million figure exists for all those businesses.
I was grateful that the Minister for Policing, Crime and Criminal Justice, who led for the Government in Committee, wrote to my right hon. Friend the Member for Knowsley (Mr Howarth), who also served on the Committee, in response to some of the points I had made and that he shared that with members of the Committee. The letter stated:
“In finding a solution it was important for the Government to come up with a balanced approach that protected the public purse from unlimited liability whilst also ensuring that significant numbers of businesses would not be inhibited from making claims. A further key issue was to minimise the bureaucracy around the administration process.
A number of respondents to the consultation suggested an alternative, and more simple administrative approach, of a cap on the amount of money…We examined data provided by forces and found that 99% of claims from businesses and insurance companies made after the 2011 riots were under £1m.”
It is important to stress that we do not know when there will be another riot. We hope there will not be one, but we are here this morning because we suspect there will be, given the history of our country and the fact that from time to time these things happen. It is important to emphasise that the fantastic nature of our policing model, with policing by consent and our police not routinely carrying guns, means that the public stand alongside them. When that consent is withdrawn and a riot happens, it is not the fault of the business or the homeowner, who have paid their taxes and expect to be protected. Therefore, setting a £1 million cap is an important moment, particularly given the nature of our economy at the moment and the cost of a property in a city such as London. The average price here is now running at half a million, so the average shop front on a high street in Tottenham is about the same and the £1 million cap is an important figure to understand fully.
Anne Marie Morris
Clearly the right hon. Gentleman makes an important point about ensuring that people are properly compensated, but does his amendment not give him a concern that it would provide people with a disincentive to be responsible and take out insurance? How does he suggest we get a better balance between the obligation of the taxpayer and that of the individual?
Mr Lammy
The hon. Lady makes an important point and there is a balance to be struck, but I hope she will understand that it is important to interrogate why we have arrived at the £1 million figure. It is also important that we recognise something about parts of the country that experience these upheavals from time to time. It remains the case in a constituency such as mine, which has had two riots in a generation, that when someone walks down Tottenham High Road they do not see the sort of scene they would see in Detroit, with boarded-up shops, houses in which people do not live and no-go areas—areas that have failed. Fortunately, in these fantastic islands of ours there are no communities that have failed—we do not allow them to fail. We do not want to see that kind of failure. We need to get the balance right between having people, rightly, insuring themselves, and recognising that in the poorest parts of our country people are often under-insured or not insured, so when there is a riot we must still try to put them back into a situation where they can get on with their lives and with their business, and get on with the economy.
The 2011 riots were unusual, in that, surprisingly, there were riots in Clapham Junction and in Ealing. There were riots in parts of the country where one might not have expected riots. However, riots occur most often in the most deprived communities and we do not want the economies of those communities to disappear completely. Insurance premiums can also be so high in communities such as the one I represent, and such as those represented by my hon. Friends the Members for Croydon North (Mr Reed) and for West Ham (Lyn Brown), that they are a disincentive to insuring or they encourage under-insuring in the first place.
Amendment 4 seeks to get further explanation about the £1 million cap. Amendment 5 would take the figure up to £10 million, and it is a probing amendment to understand how the £1 million figure has been reached. Amendment 7 is the most important amendment I have tabled and it asks for greater transparency. I have asked for the methodology being used to be put before this House, for Parliament to be able to understand that methodology every three years or so and for this House to be a bigger determinant in reaching the figure for the compensation level.
Mr Nuttall
I am a bit confused—I am always confused, but I am particularly so this morning—by these amendments. Could the right hon. Gentleman briefly explain which of his three different proposals he would personally like to see enacted? It seems to me that he is proposing no cap, a cap of £10 million and a cap to be decided by a formula that is yet to be determined.
Mr Lammy
Forgive me. The hon. Gentleman was not on the Committee, but if he reads the Hansard report of its proceedings he will see that there was quite a lot of debate about this figure. The Government were unable to give much detail of how they arrived at the figure. The Minister has since written to my right hon. Friend the Member for Knowsley, who chaired the Committee—its members were copied in—and given greater clarity on what the Government were told by the insurance industry and on the amount of figures that came under £1 million. I received that letter after tabling these amendments. However, the amendments are probing, because it would be quite wrong for a Bill of this kind to pass quietly through the House without discussion and scrutiny. I see the hon. Member for Croydon Central (Gavin Barwell) nodding in agreement, because his constituency was caught up in the riots. My amendments have been tabled in that spirit.
The hon. Member for Bury North (Mr Nuttall) is right: there is of course a difference between removing the £1 million cap and raising it to £10 million. I suspect that not all of my amendments will be pressed to a vote. However, I emphasise amendment 7, in particular, because it facilitates scrutiny and the need to return to this figure in future, which must be right. I do not want the House to settle on £1 million and then find in 10 or 15 years that it would leave a lot of people, particularly in London and the south-east, really short if their property were damaged in a riot.
Anne Marie Morris
The right hon. Gentleman talks about the challenge of striking a balance between the Home Office and other potential sources for the unpaid sum, but I do not think he has offered sufficient clarity on the role of insurance. He has talked about the challenge of insurance being extraordinarily expensive. In my constituency we have a similar issue with flooding. Flood Re and the negotiations that the Government have had in that regard have clearly been very helpful. What conversations has he had with the insurance industry, and indeed with the Government, on what can be done to make insurance more affordable?
Mr Lammy
There are parts of this country that routinely experience flooding, as I said in Committee, and there is considerable experience in the system in relation to how we deal with those communities and how the insurance industry reacts in those circumstances. Floods happen more frequently in our country than riots, but a similar catastrophe befalls those who find themselves caught up. I hope that the bureau that will be set up as a result of this Bill can draw on the experience in those areas.
I have heard hon. Members in those areas raise concerns about loss adjustors and the manner in which they treat our constituents. In circumstances in which everything has been lost in the flood or burnt to the ground in a fire, the individual concerned is expected to go and find a receipt for a stove or oven that they now have to claim for. How are they going to find that receipt? Where is it? It is a miserable situation, and I am afraid that during the riots we found the performance of loss adjustors very patchy, and some of them behaved quite inappropriately to my constituents.
However, as I have indicated before, we have a situation of insurance, underinsurance and no insurance at all. That is why we have the Riot (Damages) Act 1886 and why we should inquire as to what the appropriate levels of this newly introduced cap should be. For all those reason, this clutch of amendments address that point. As I have indicated, they are largely probing amendments. I look forward to hearing what the hon. Member for Dudley South (Mike Wood) has to say both about regulations and the need for greater clarity. Perhaps this House might have a greater role in determining that figure, scrutinising it and returning to it over time, because I fear that £1 million may well look very different to people in the wider country in 10 or 15 years’ time, long after the Bill has passed through both Houses.
Mike Wood
Let me start with amendments 5 and 6, tabled by the right hon. Member for Tottenham (Mr Lammy), which would either remove or raise the compensation cap. Although I fully understand his reasons for asking that the level of the cap be considered, I am unable to support either amendment. As I have stated at earlier stages in the legislative process, we simply cannot continue to have a situation in which the public purse is subject to unlimited liability.
Neil Kinghan’s excellent independent review of the reforms necessary after the 2011 riots set out convincingly and comprehensively the reasons for retaining the principle of strict liability for police forces when the basic contract to uphold law and order, to which the right hon. Gentleman has referred, breaks down, and that police should be liable for the costs of that. However, Neil Kinghan went on to say that it is not reasonable to expect those liabilities to be unlimited. That is why he put forward a number of alternative ways of controlling liabilities—capping them—in order to deliver a fairer deal for police forces and the taxpayer.
The effect of either amendment would be to impose a still higher liability on police forces and therefore on the taxpayer. The right hon. Gentleman asks how the £1 million figure was reached. The Home Office put the figure forward in response to an earlier consultation, and it received widespread support. At present, the cap is generous. It has been set to make sure that it would have protected as many of the claims made in 2011 as reasonably possible.
Analysis by the Home Office and the Association of British Insurers estimates that, had a £1 million cap been in place in August 2011, 99% of claims paid then would still have been paid in full; that compares with about 33% had we continued with the alternative option of a cap on turnover of business, which Neil Kinghan ended up recommending. The £1 million cap is far more generous to the victims of riots and recognises exactly the points made by the right hon. Member for Tottenham: of course such victims are in no way to blame and could have done nothing to prevent their loss. We want to make sure that they continue to be compensated, within a reasonable limit.
I also take note of the right hon. Gentleman’s point about big businesses and the important role they play in our high streets. However, like most businesses, big or small, they have a responsibility to insure themselves adequately—not only against riots, but against a broad range of risks. The £1 million compensation cap applies directly to riots, as defined in the legislation. We would similarly expect such businesses to insure themselves against fire and looting caused by arsonists and against gangs of people rampaging riotously, although perhaps made up of fewer than 12 people and so falling outside the scope of normal riot legislation.
Damage caused by looters or gangs on the rampage is every bit as serious, but police forces would not have liability unless negligence could be demonstrated. There is a need for adequate levels of insurance and it is not unreasonable for businesses with assets running into millions to take out such insurance. Setting a cap at £10 million would largely benefit insurers far more than big or medium-sized businesses on the high street, as they could subrogate those claims under the Bill and the existing scheme. Furthermore, of course, they tend to provide the insurance for big business.
The most pertinent example from the 2011 riots was the claims, which have not yet been settled, arising from the destruction of the Sony warehouse in Enfield. Those run into tens of millions of pounds. That money would go entirely to insurers if the claims ended up being accepted. From the Home Office research, it seems that increasing the £1 million cap to £10 million would have affected six uninsured businesses in 2011—six businesses among all those affected, at a massive cost to the taxpayer without any real benefit to our communities. That is why the £1 million cap has been widely welcomed by Members as well as by the insurance industry. The Government have published their intentions in response to the consultations following the 2011 riots on reforming the compensation arrangements. The £1 million cap was very widely welcomed in that response by stakeholders who took part in the consultation.
James Brokenshire
A £1 million cap strikes the appropriate balance between protecting the public purse and helping those who need it most. Increasing it to £10 million would increase police and public purse liability tenfold, which is neither necessary nor appropriate. If the cap were raised to £10 million, the most likely beneficiaries would be insurance companies seeking to reclaim the costs of any very large claim from the relevant police and crime commissioner. I do not think that that was the intent behind the right hon. Gentleman’s approach in his amendment, but I respect the manner in which he has sought to draw the House’s attention to how we have reached this point and why we judge that £1 million is the appropriate level.
The right hon. Gentleman has proposed, as an alternative, that there should be regulations following a public consultation, with reviews taking place every three years. As I said, we believe that there is a compelling reason for having a cap in place. There are benefits that attach to having certainty on the level of the cap, with it being clearly defined, rather than perhaps having further uncertainty in the future as to what it might be. Leaving it to be set by regulations after a public consultation would serve only to remove certainty and increase bureaucratic burdens. A public consultation would achieve very little, given that 99% of claimants would have been paid in full from August 2011.
Mr Lammy
As this Bill and its consequences are a matter of public record, will the Minister undertake to write to hon. Members who have one of the six businesses beyond the Sony claim in their constituencies? I would certainly like to know whether there were any businesses in Tottenham that experienced a claim of more than £1 million, and the nature of those businesses. That would be helpful for the record as we move forward.
James Brokenshire
I do not know whether I am able to give the right hon. Gentleman the assurance he seeks, on the basis of legal constraints or data protection issues, but I note his point. I will reflect on it, and if there is anything more that I may be able to add, then I will obviously be happy to write to him. However, I draw the House’s attention to the fact that this might not be quite as straightforward as he suggests and there may be inhibitions that would prevent that sort of broader disclosure.
The Bill already provides for the power to amend the compensation cap through regulation should it be necessary to adjust it to reflect inflation. It would be a relatively simple task to examine cost of living and property price changes in the period since the cap was last set and apply any change to its level before making compensation payments.
In Committee and again today, the right hon. Gentleman raised the issue of regional variations that might affect the cap. The £1 million cap was determined using claims information from the London riots in 2011. One could say, therefore, that the analysis was conducted on claims from one of the most destructive riots in a generation in one of the most costly regions in which to live. It was a very serious example and the right benchmark. On that basis, the cap would not only adequately cover Londoners in the event of a future riot, but more than adequately cover those in other regions. That is the approach we have taken. I reiterate that according to our analysis and that of the Association of British Insurers, had the £1 million cap been in place for the August 2011 riots, then 99% of claims would still have been paid in full.
I hope that in the light of those comments the right hon. Gentleman will be minded to withdraw his amendment.
Mr Lammy
As I indicated, these are probing amendments. The whole House has heard what the Minister and the hon. Member for Dudley South (Mike Wood) said, and I understand that the Bill will now go to the other place and receive further scrutiny. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Amendments made: 2, page 5, line 23, at end insert
“, except in the circumstances described in subsection (2A).
‘(2A) Where a claimant’s home is rendered uninhabitable, the amount of compensation may reflect costs that the claimant incurs as a result of needing alternative accommodation.”
Amendment 3, page 5, line 26, at end insert—
‘( ) considerations that decision-makers must take into account in deciding the amount of compensation payable as a result of a claimant needing alternative accommodation (and the regulations may include provision limiting the amount of time for which the costs of alternative accommodation may be claimed),”—(Mike Wood.)
Mr Lammy
I beg to move amendment 10, page 6, line 17, at end insert—
(a) after any riot in relation to which compensation was paid under this Act; and
(b) after each period of five years beginning on the date that section 8 came into force.”
This amendment would require the Government to undertake post-legislative scrutiny.
Amendment 10 is about making and returning to the House with a proper assessment after there has been a riot and after the Bill has taken effect. With all that has been written by Mr Kinghan, all the work that has gone into the production of this Bill—I pay tribute to the hon. Member for Dudley South (Mike Wood) for everything he has done—and all that I, and shadow Ministers, have sought to do through it, we have learned a lot from the 2011 riots. Much of what we have learned finds effect in this Bill.
All riots are different. The hon. Gentleman said earlier that the 2011 riots were a particular case in that they were in London, and that he therefore believes that, in terms of regional impact, the £1 million cap is set about right. He will understand, though, that in the past few years we have seen anarchist groups marching in our country and things sometimes getting out of hand. They have marched in parts of the capital that have very expensive retail areas. We do not know where a riot could take place; they are all a bit different.
Given the impact of those riots and our understanding of them, and in terms of how this Bill works and its effectiveness, the issue of what compensation was paid out is hugely important. That is what amendment 10 speaks to. I sincerely hope that Conservative Members understand that and might be able to indicate that they do see the need for a mechanism, given that we are now updating the legislation. We are putting in place new mechanisms such as the bureau, which has not been discussed this morning but was discussed in Committee and on a previous occasion. It would therefore be very beneficial to provide for some assessment after a riot takes place; we do not know when. I hope that I might get some comfort from the hon. Member for Dudley South or the Minister following my decision to table this amendment.
Mike Wood
Although I absolutely agree with the right hon. Member for Tottenham (Mr Lammy) that the effectiveness of legislation needs periodically to be reviewed, I am less convinced of the need to set that out in the Bill. Of course, we all hope and pray that there will be no repeat any time soon of the kinds of riots we witnessed in August 2011, but should such riots occur in future it would be absolutely appropriate to consider how well the legislation is working and whether any changes are required, which is what happened following the 2011 riots.
The amendment proposes that the legislation should be reviewed after any riot, but that means that that provision would be triggered by any relatively small disturbance that leads to a claim being made under the riot compensation scheme. That would be unnecessarily bureaucratic and it is certainly not needed, because, as I have said, there is a Government commitment in place to review all new legislation within three to five years of the date it receives Royal Assent. That timeframe provides an opportunity for post-legislative scrutiny in the early years and consideration of non-legislative processes and support systems. I would like us to go further after that three to five-year period.
Mr Lammy
Does the hon. Gentleman agree that, if there had been an assessment mechanism in the ineffective Riot (Damages) Act 1886, it might have been better legislation in the first place? There might be a riot—we hope not—during the period of three to five years. I understand that he may not accept the amendment as drafted, but surely the Government should be prepared to consider some sort of assessment mechanism after a riot, which, thank God, happens so infrequently in our country. Perhaps that could happen in the other place when the Bill receives further scrutiny.
Mike Wood
The right hon. Gentleman makes the point that I was about to move on to. Although the initial three to five-year period provides an important chance to reflect on the early years and to consider whether all the commas are in the right place and all the details are right, it is important that regular reviews take place after that period. I hope the regulations will allow for such reviews. If there is a repeat of anything like what happened in August 2011, it is inconceivable that there would not be a review. That should be a given. Outside of the times of serious riots—which, of course, we hope will last many years or even decades—it is important to have some sort of periodic review, but I do not believe that there is a particular case for this Bill to carry a specific provision for post-legislative scrutiny. As I have said, such a provision could be triggered by a fairly small and limited disturbance, but we must make sure that it does not take another 130 years before we next review whether the legislation is working.
James Brokenshire
The hon. Lady makes a fair point. I am sure that anyone who has been caught up in a riot, and who has suffered loss or damage as a consequence, feels that hugely keenly. We are talking not just about the immediacy of the situation and the fear that it creates, but about what that means in restoring a life, putting property back into place and dealing with adverse effects on a business. That has been at the heart of our debates on the Bill, and that is why I welcome and strongly endorse the approach of my hon. Friend the Member for Dudley South in bringing forward the Bill and seeking to address the problem.
There are a couple of points that I would make. First, the Bill has been drafted in a manner that allows greater latitude than the Victorian legislation. I return to the point about not requiring primary legislation. Dealing with things in secondary legislation gives greater latitude and flexibility to make changes to the regulatory framework more swiftly. That reflects the fact that other items may need to be covered, or the cap may no longer be appropriate. The Bill provides a real benefit in offering that level of flexibility.
Secondly, the hon. Lady made a point about individual occurrences and events, and she pointed to some serious incidents that might have made a review appropriate. The latitude provided by the Bill lends itself well to that, because it will not be necessary completely to recast primary legislation. Some riotous disturbances may not lead to a significant number of claims, so it might not be appropriate to trigger a formal procedure such as that proposed in the amendment. The student riots in 2010, for example, involved significant policing challenges but attracted fewer than five compensation claims. We have the ability to carry out such a review, but we do not need anything with quite such a rigid structure. I suggest to the House that the Bill gives the Government the flexibility and the latitude that they need. In that context, I hope that the right hon. Member for Tottenham will be minded to withdraw his amendment.
Mr Lammy
The shadow Minister, my hon. Friend the Member for West Ham (Lyn Brown), has expressed my views strongly from the Dispatch Box, and I hope that the matter will receive greater scrutiny in another place. Self-evidently, issues arise in the peculiar event of riots, and the Government ought to think seriously about producing some sort of impact assessment, which need not be onerous. I undertake to write to colleagues in the other place to ensure that that receives further examination.
As I have listened, not to myself but to my hon. Friend, I have been convinced of my own argument. Nevertheless, I will not press the amendment to a Division. This is an important Bill, and it must find its way to the other place. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Third Reading
Riot Compensation Bill
David Lammy Excerpts(8 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr David Lammy (Tottenham) (Lab)
Does the hon. Gentleman accept that the areas that experience riots are often the most deprived in our country? In those communities, increasingly, particularly in London—in the constituency of my hon. Friend the Member for Croydon North (Mr Reed), and certainly in mine—many constituents speak English as a second language. I can think of a constituent who had a heart attack after the riots. Forty-two days is still a very short time after experiencing shock of this kind.
Mike Wood
I recognise the right hon. Gentleman’s point. It is important that alongside any new legislation and regulation we have the co-ordination at a community level to support the people he mentions, who, as he says, are often in our most vulnerable communities.
The basis for switching from old-for-old to new-for-old is one of basic fairness for riot victims. It cannot be fair for them to be expected to engage in extensive negotiations on the book value of a three-year-old dry cleaning machine, as was the case in one claim in 2011, and then to have to search for such a machine at the specified price just at the point when they are trying to rebuild their homes or their businesses. A new-for-old system is already used in most private insurance policies, and it would mean that victims could set about the important business of getting their lives, homes and businesses back on track.
Mr Lammy
I am grateful to the hon. Gentleman for giving way again. His point about new for old is incredibly well made.
There are many small business owners in areas that have experienced riots. I think of my area in particular, which is unfortunately one of the few areas of the country to have experienced two riots in a generation. Those small businesses are under-insured because of the cost of insurance, which is because those areas have had riots. Unless we want such areas to be completely boarded up, like cities in the States such as Detroit, we ought to think carefully about consequential loss. We should not place further insurance burdens on the private sector. After all, the fact that a riot has occurred is not the fault of a business.
Mr David Lammy (Tottenham) (Lab)
I am grateful to have the opportunity to speak in the debate and congratulate the hon. Member for Dudley South (Mike Wood) on bringing the Bill to the House. I have reservations that I want to put before the House, but I agree with the general consensus that the 1886 Act is in serious need of review and change. It is right and appropriate that we have arrived at that point today.
The starting point for any discussion on riots is understanding that the basis of our policing in this country is consent—it is a source of great pride, and countries throughout the world look at policing in this country and try to learn from it. That is the idea that our police do not routinely carry guns and do not police by force. They police alongside the general public, and the general public act as citizens alongside them in the matter of policing. When that consent breaks down in a catastrophic way, we experience riots, which we do from time to time in our communities.
Because we all pay our taxes, and because we supply the uniforms and the badge and contribute to the training of our police officers, we rightly and appropriately say that, when the consent breaks down, people should be compensated for their loss—obviously, in our country, the vast majority of us do not participate in that consent breaking down and would not dream of participating in a riot. The detail of what that compensation should be is described in the 1886 Act.
It was a devastating four days for my constituency. It was a devastating moment. In constituencies such as Tottenham, we do not want another riot in a generation. Fortunately in Britain, we do not have areas that are so crippled by social unrest that the prospect of regeneration and a future looks bleak. Parts of the United States—I think of the city of Detroit—effectively went bankrupt when industry left, people fled, populations fell and buildings lay derelict for year after year. We do not want that in any community in this country, which is why the subject of the debate is so important.
When catastrophic riot occurs to a community, we must do all we can to put that community back together as quickly as possible, so that we do not see business and industry flee such that economic activity can never occur in that community again. I said this at the time of the 2011 riots: the vast majority of my constituents, including the vast majority of young people, were terrified in their homes. They did not participate in the riots. Indeed, because of the nature of the 24-hour media these days, with flames going up and the same scenes being repeated over and over again, it was a red rag to criminals all over London to participate in those riots.
I spent a lot of time with those small business owners on Tottenham High Road. I also spent some time with small business owners in communities such as Croydon. These were the most decent people, people who get up very early in the morning and finish work very late at night and who, frankly, do not rely on the state at all other than when they are ill. They were devastated by what had happened to them in the rioting over those four days.
For the first time, we saw riots in parts of London—Clapham, Ealing, in the constituency of my hon. Friend the Member for Ealing Central and Acton (Dr Huq), and Enfield—in which we might not previously have thought we would see them. Somehow, this was a moment in time when we needed to take stock and to ensure that the arrangements were right not only for those individuals who lost their businesses but for those who lost their homes. I pay tribute to the men and women of my constituency who, the morning after the riots, standing only in their pyjamas, holding their children, had had their homes burnt to the ground. At the time, promises were made. A riot was declared, and it is appropriate that we return to the circumstances in which a riot is declared as that is covered in the Bill. The assumption is that that decision will be made by the police.
The Government then said, quite rightly, tough things about those who had rioted and said to the victims, “We will compensate you. We will put you back to where you were.” That was said by the Prime Minister, by the Mayor of London and by other city leaders across the country. Sometimes, when we see a terrible event, usually in a country a long way from here—an earthquake, a tsunami, a flood, a terrible and horrific natural event that disrupts lives and causes damage—we can go to a bank and contribute a little bit of money towards a relief fund. One gets the sense that the whole world combines so that people affected by the event can be brought back to normal. Why, then, did small business owners up and down the country find that three months, four months, six months, a year, two years or three years after the events of 2011 they still had not been compensated? I can think of one business in Tottenham that still has not been compensated.
It was a shocking example of bureaucracy out of control. The performance was patchy across different police forces, and patchy in partnership with the insurance industry. I was very critical of the insurance industry at the time, and the insensitivity of loss adjusters was extraordinary. People were weeping because of the hurdles they were being put through and how they were made to feel as though the rioting was somehow their fault. I must put these comments in the strongest terms because if I had some of those small business owners standing by my side they would expect me to say this. It was not a pretty sight. They said to me time and time again that if their business had been caught up in a tsunami in Thailand, they would have been better treated. They have said to me: “This was no fault of mine. I pay my taxes, I do not rely on the state, but my business is gone, I have had a heart attack. I can’t eat. I keep seeing flashes of the fire. Everything has been destroyed and a year later I have nothing.” Time and time again those were the stories we heard across the country.
Mike Wood
I strongly agree with what the right hon. Gentleman is saying, but does he recognise that the key part of this Bill, putting the riot claims bureau on a statutory footing, will address exactly the kind of issues that he identifies, such as the unnecessary and unacceptable delays in getting the money that is needed to the people who are trying to rebuild their lives and their businesses?
Mr Lammy
The hon. Gentleman is right, of course. The riot claims bureau will be a step forward, but let us be absolutely clear about it. It sounds good, does it not, the riot claims bureau? We get the sense of bureaucrats hard at work somewhere in the Home Office as we speak. No one is staffing the riot claims bureau as a result of the Bill; I suspect it will be brought together rapidly in the event of a riot.
It is important to ensure that the expertise and knowledge are present, that there have been practice exercises and that there is understanding of the sorts of communities that experience such things. There must be a sense that we must put small businesses first on these occasions, because often the big businesses can defend themselves. Members might remember from the riots the atrocious behaviour of the head of JD Sports, who said that it was great that people were breaking down windows to grab trainers because it showed how important his products were. I would suggest that that chief executive can defend himself, but he was in a very different position from those on the high street.
I pay tribute to Sir Bill Castell, chair of the Wellcome Trust and one of the great industrialists of our country. He was chair of the High Street Fund, which did so much to support small businesses across the country. I will never forget Sir Bill ringing me up just a day after the riots, determined to make a difference and to bring big business together to support small business and to bring those funds to individuals. I will also not forget Bill’s consternation that months later funds had not been paid out under the Riot (Damages) Act and that when those funds were paid out, despite the fact that the High Street Fund was a charity relying on contributions from big business, they were discounted against that money. I say to the hon. Member for Dudley South, will we see that happen again?
In these circumstances, when there is philanthropy and charity and when human beings come on side and say that they will support somebody, that should not be discounted against the obligations of the state. We should not be saying that it is for charity to pick up the tab and reduce the burden that we all face as taxpayers when consents break down in this way. I know that Sir Bill felt very strongly about that and I hope that we might get an answer about what will happen in the future in this regard.
I come back to the point about the expertise. Will the bureau have the expertise? How many people will staff it? How will it be brought together? How will it be different from the patchy performance we have seen? For example, I understand that the police in Manchester performed quickly and were able to pay out quickly, although they had a smaller group of businesses involved, whereas the Met were woefully slow in paying out. That led to the then Leader of the Opposition coming to the Dispatch Box during Prime Minister’s questions and asking when businesses would receive their funds. He did that well over a year after the riots—the Met’s performance was that poor. It is important to understand what the bureau will look like and to make sure that it is not just a fancy name, but will work effectively.
I come to the role of loss adjusters. The hon. Gentleman is right that new-for-old compensation will mitigate some of the insensitivity that so many business owners said they experienced as they were quizzed about the age of their products, whether they were sure those products were in the premises, where they were in the building, why they could not get into the building, why their English was not good enough to fill in a form, and so on. I hope new for old will lead to a better system.
In these circumstances there should be a loss of earnings component. If we were able to pay out relatively quickly, the loss of earnings component would be reduced, which was not the case last time round when the process was so poorly handled. Many of us may not be here for the next set of riots in our country. I hope we are not here—I hope it is that far away—but if the claims process goes on for a long time, there is a terrible loss of earnings for small businesses. I can think of a wonderful mechanic’s business that was burned to the ground. It sat next to the iconic Union building in Tottenham that was also burned to the ground. I think of the wonderful Cypriot owner. He came to see me, devastated by the flooding and destruction of his family business. The road was shut off, the building next to it had been burned down and it was months before he could get into his business premises. He had a heart attack. He was laid low at home, panicking about the pressure of finance and money. I will remember that man and his family for the rest of my life. So I believe that loss of earnings should be a component of the compensation. Consequential earnings are also fundamental when the state breaks down in this way.
The cap of £1 million is right and totally understandable. It is important, though, that that cap is sufficiently high to compensate the vast majority of businesses. I think that that probably is the case, but I would like reassurance that it is index-linked and will rise. It is £1 million today, but what will it be in 50 years or 100 years? In areas of the country that are fragile, where there is deprivation or pockets of deprivation, we must not scare big business away because it fears that it would not be adequately compensated in the event of a riot. We must not do what has happened in other parts of the world, particularly the United States. It is important that private insurance is available for larger businesses for which, if they were to suffer a loss, it would be substantially more than £1 million.
It is easy to see how a relatively small business with stock could lose more than £1 million over several months in the circumstances. I am a little bit nervous about what the effect of the cap may be and whether it will harm regeneration and the prospect of those communities moving forward towards prosperity through regeneration. On the whole, people do not tend to riot if they have a job and a mortgage, but in parts of the country that cannot always be guaranteed, so it is important that big business is there, small business is supported, the £1 million cap is not too low, and that we are sure the insurance industry will provide support beyond that £1 million.
We need to be clear that under-insurance is common in the kind of communities that saw rioting in 2011 and communities where riots have historically taken place in this country. Because of the delicate margins with which businesses operate in such communities, there is often under-insurance. It was the people who were under-insured who paid the heaviest price last time round. They were able to claim from the High Street Fund, but that was discounted down the line. They were the ones who found it hardest to get payments under the Riot (Damages) Act in good time.
The 42 days feels like a long period. People know the riot has happened to them. They must know that there is some means of compensation. People say that on the news, but it does not reach them because they are in shock, because everything they own has been burned to the ground, and they have no paperwork, they have no ID, they do not know who they are. This is not just about shops; it is about homes as well. I am worried about the 42-day period. I can think of many constituents who would not meet that.
The Minister for Immigration (James Brokenshire)
It might help the right hon. Gentleman to know that if the Bill were to pass, that would be dealt with in regulations. Our intention is that the 42 days would be a notification period—a time for people to give notice that they were going to make a claim—but there would a further 90-day period to quantify that claim and provide further details. I hope I can offer him some reassurance that we are thinking carefully about lessons from 2011 and about time periods that will allow people to gather paperwork and quantify the amounts that they are claiming for.
Mr Lammy
I am grateful for that indication. My hon. Friend the Member for West Ham (Lyn Brown) on the Opposition Front Bench also has the kind of constituency where I am sure she would recognise that, in our multicultural London, many businesses are run by people who speak English as a second language and who, in times of riots, are a long way from the state. That is because they do not rely on the state very much at all. Even notifying their intention to make a claim is not something that they would understand. Many of my constituents did not understand that they could make a claim. They simply sat with their head in their hands, under-insured and not aware that the state would support them in this way. They got to the understanding that they could make a claim because word about the High Street Fund spread quickly among the businesses alongside theirs. That was how they started to realise that they, too, could make a claim. I am grateful that the Minister has indicated some flexibility on that, but I wanted to stress my concerns that people might be caught out of the system.
I broadly welcome what has been said today, with some reservations about the nature of the bureau and the expertise that it will need, and real concern that we should understand the sort of areas that can experience riots in our country and why it is important that, as a nation, we support those communities.
There is a potential conflict between the Met declaring a riot and the fact that the budget comes from the declarer. I hope that the Minister will say a little more about the circumstances in which a riot is declared, because in 2011 the situation was so patently clear that it would have been very hard for the Met not to declare a riot, but that is not always the case. I remember just a few hours into the rioting the former Member for Holborn and St Pancras said to me, “Watch and see if it actually declares this to be a riot.” I would therefore like some reassurance about the circumstances in which a riot is declared, because that could be a source of contention.
When the London Assembly looked into the 2011 riots, it came to the view that the police were handling the situation so badly that the money ought to be in the local authority’s pot. There is some merit in that, because local authorities are much closer to local businesses and can liaise very intently with Government. The money is coming from the Treasury anyway—let us be clear about that—but how it works within Government is the big question. I had sympathy with the London Assembly’s view, although I think that it is important that the police understand that consent must not break down and that, if it does, it comes from their budget stream. There is a discussion to be had about that potential conflict. The Bill is settled on the money coming from the police. It is therefore important to understand the moment at which a riot is declared and how that decision is reached.
There was a sense in those early months that the Met was losing money as a consequence of having to give money out—that there was no extra money from the Treasury. We need our most deprived communities to be policed; we do not want all the money available to go to compensation. That is a complexity in the Bill that I think requires further explanation.
Mr Lammy
On the very sensible point that the hon. Gentleman is making, is he worried, as I am, that the Government will recognise that £1 million is inadequate only after another riot? It is very unlikely that the Government would return to the limit between riots, because there would be no reason to do so.
Mr Nuttall
That is my concern. We need an assurance from the Minister that someone will look at the limit every few years because, as the right hon. Gentleman says, there is a danger that the legislation will be dusted down and looked at only after the event, as happened after the 2011 riots, when everybody realises that it is woefully out of date. A proactive approach is therefore needed.
Where I perhaps part company with the right hon. Gentleman is on whether the riot claims bureau should be a permanent body. Was he suggesting it should be?
Mr Nuttall
No, he was not suggesting that. I would not have agreed with that. I do not think we could set up such a body and have it permanently in operation.
Mr Nuttall
That is the point I am making. Thinking back to the Toxteth riots in the early ’80s, they are mercifully infrequent.
In urban areas that are seen as most at risk, it would make sense to have a stand-alone leaflet available that could be distributed in the event of a riot, so that business owners and affected individuals could be given information simply and straightforwardly in the immediate aftermath to put their minds at ease. They would then know what they needed to do and that they needed to do it within 42 days, or whatever the limit was. They would be aware straight away of the need to take action. In this day and age, there could also be a permanent website after the Bill reaches the statute book, as I hope it will, that can be found easily by somebody who does a search on the internet.
Lyn Brown (West Ham) (Lab)
Sorry, Madam Deputy Speaker; I was sat quite comfortably, waiting for the hon. Member for Bury North (Mr Nuttall) to perform his usual tour de force to the Chamber, and thought I had more time.
I congratulate the hon. Member for Dudley South (Mike Wood) on bringing the Bill before the House. I was saddened to hear that his popularity has declined. I hope that it does not spoil his Christmas. I was rather worried to hear the story about the rogue squirrel. As a city girl who has only just started to experience these creatures in her back garden, it has made me a little more wary of coming into contact with them.
The riots that blighted many of our cities and towns in August 2011 were a truly destructive event. More than 5,000 crimes were recorded in just a few days, five people lost their lives and it has been estimated that the material cost of the London riots alone was over half a billion pounds. That material cost has fallen on the public, local businesses, the police and the taxpayer during a period of harsh economic conditions.
As we have heard today, the existing legal framework for compensating the victims of riots has proven to be inadequate. It is therefore right that we consider carefully how the financial burden of any future riot events should be shouldered.
The House has heard that there is an established principle that the police are liable for damage incurred during riots. There is an implied contract between the public and the police: the public will respect the authority of the police and, in return, the police will secure law and order for the public. It has been contended that when riots break out and property is damaged, the police have failed to keep their end of the bargain and are therefore strictly liable for damages incurred.
As we have heard a number of times today, that principle is enforced through the Riot (Damages) Act 1886. It was perhaps inevitable that a 130-year-old piece of legislation did not prove to be up to the task of handling the aftermath of the 2011 riots, which were as widespread and destructive as any we have seen for a generation. The language of the Act, as Members have said, is archaic, defining riots as
“persons riotously and tumultuously assembled together”.
That sounds like a decent football match.
Lyn Brown
No, we are doing quite well.
The 1886 Act pays no consideration to what are now important questions for any legislation dealing with insurance and compensation. For understandable reasons, there is no mention of motor vehicles. There is no consideration of interim compensations for victims while claims are being processed or of the new-for-old replacement of damaged goods, and there are no powers for the police to delegate administering the compensation process to experts in legal claims. As a result, in 2014, three years after the 2011 riots, victims were still waiting for over £40 million of compensation to be paid out. This is an inordinately long wait for compensation. The existing legislation has therefore been shown to be not fit for purpose, and so the hon. Member for Dudley South is doing the House a favour today.
I pay tribute to my hon. Friend the Member for Croydon North (Mr Reed) for his work on this issue. His constituency was hit as hard by the 2011 riots as many others, and he has worked tirelessly highlighting the difficulty that locals have had in receiving the compensation that they should be entitled to. He used the Freedom of Information Act to show that three years after the riots, 133 victims in London had yet to receive a penny in compensation from the police. Just 16% of the requested compensation had been paid out at that point. These victims of rioting must feel badly let down considering that the Prime Minister had promised they would not be left out of pocket. Without his tireless work and that of my right hon. Friend the Member for Tottenham (Mr Lammy), I gently say that I doubt this Bill would have been before the House today.
To be fair to the Government, being even-handed on a Friday, they have recognised the problems that people have had in receiving compensation. They commissioned an independent review of existing legislation chaired by Neil Kinghan. The Kinghan review was published in September 2013, and it made a series of recommendations. It recommended that the principle that the police are strictly liable for damages incurred during riots ought to be maintained; that legislation ought to protect insurers so as not to deter people from taking out insurance policies, or to inflate the cost of insurance; and that payments to insurance firms should be limited to businesses insured with an annual turnover of less than £2 million. It suggested that legislation should allow the police to delegate the administering of claims to a body made up of insurance professionals rather than the police having to take on that complex administrative task themselves. A further important recommendation was that allowance be made for compensating at the cost of replacement goods—old for new—as is the case in most modern insurance practice. The review judged that new legislation replacing the 1886 Act would be necessary.
The Government ran a consultation exercise after the publication of the Kinghan review, and the Bill before us, as we have heard, has the support of the Government and takes up many of the review’s recommendations. This includes a number of provisions that are uncontentious but nevertheless important, such as including cars within the scope of compensation and providing for interim payments. Given the clear need to update the legislation that governs riot compensation, we welcome this Bill and believe that it ought to move forward to Committee, where it can receive further scrutiny.
While we support the principle that the police ought to be strictly liable for damages incurred during the course of a riot, it is important that our police forces are not asked to promise a blank cheque. It is impossible for police forces to plan and budget for the possibility of having to compensate victims of riots without some understanding of the likely costs to be involved. This is particularly true when our police forces are still absorbing the 17,000 police officer cuts from the previous Parliament. It might be Friday but this is not politics-free.
To deal with this problem, the Kinghan review originally proposed that insurers would be able to claim only for businesses with an annual turnover lower than £2 million. The Bill instead places a £1 million cap on the total claim that can be made, and removes any reference to company turnover. The Association of British Insurers estimates that 99% of commercial property claims for material damage from the August 2011 riots would have been fully covered by this new £1 million limit. The Home Office makes similar estimates, and the impact assessment that accompanies the Bill suggests that just 19 of 1,988 impacted businesses would wish to claim over £1 million in the case of large-scale rioting. This appears to be a significant improvement on the turnover-based model suggested by Kinghan. According to the ABI, only 33% of commercial property claims for material damage during the August 2011 riots came from businesses with a turnover of less than £2 million. There were serious fears that the £2 million turnover limit would have therefore created a disincentive for large businesses to set up in areas that they would possibly consider to be susceptible to rioting, and that some businesses would be left unfairly out of pocket. These details need to be looked at very closely as the Bill moves through Committee, particularly as the £1 million limit represents a departure from the recommendations by the Kinghan review and may have an impact on insurance premiums. I want to ensure that the Government are taking seriously the competing interests of the insurance industry, businesses, the police, and the public finances.
Another area of concern that we will pursue in Committee is what constitutes a riot and who decides when a riot has taken place. At present, the Bill empowers police and crime commissioners to determine whether there has or has not been a riot, which they must do in accordance with the definition of a riot provided by the Public Order Act 1986. It is the budgets of police and crime commissioners that will ultimately be hurt if they do judge that there has been a riot, so we might, in effect, be allowing the police to mark their own homework. This was raised by Mark Shepherd of the ABI, who has called for
“a more independent determination of when a disturbance is a riot”.
That might be appropriate given the quasi-judicial nature of the decision.
My final area of concern is that the Bill does not cover loss of trade for businesses, loss of rent for landlords, or the cost of alternative accommodation needed in the wake of a riot. These are all instances of what insurers call consequential loss. Many of those most severely impacted by the 2011 riots would therefore not have been be fully compensated through the provisions in this Bill. That is particularly true of businesses with small capital holdings who rely on trade that has been disrupted by rioting. This needs to be carefully looked at during the next stages of the legislative process so that we can provide the most equitable deal possible between the police and the community in the unwelcome event of future riots.
The current arrangements for dealing with compensation after riots is clearly inadequate, and a new framework is required. I look forward to going through the details of the Bill to make sure that we can have a system that commands the support of the public, business, and the police alike. That will mean looking carefully at the caps on compensation, the process of determining when a riot has taken place, and the clauses setting out which losses are, and which are not, eligible for compensation. We must make sure that we try to minimise the numbers of people who fall victims of future riots, as, unfortunately, so many did in 2011.
The Minister for Immigration (James Brokenshire)
I thank hon. Members from both sides of the House for an informative and passionate debate that has reflected the interests of their constituents on the issue of riot compensation. I particularly commend my hon. Friend the Member for Dudley South (Mike Wood) for his hard work, his approach in bringing the Bill before the House, and the way that he has sought to conduct this morning’s debate. He has achieved consensus on the need to move forward and the need for change, and I know how hard that can be. He stated that as a new Member, he has become popular ever since he was successful in the ballot to introduce a private Member’s Bill, but given how he has conducted himself thus far, I suspect that he will remain very popular in future, and I commend him for that.
I have listened to the speeches made during this debate, and there is no doubt that the 2011 riots remain fresh in the minds of many. As my hon. Friend said, it is important that we respond effectively and promptly to those whose lives have been wrecked as a consequence of the riots. I share his hope that this Bill will never be used, but it is right that we prepare for such eventualities and learn the lessons of the past to meet the potential challenges of the future. The Government acknowledge that payment of riot compensation in the aftermath of August 2011 was not as streamlined as it could have been, first because processes had to be put in place at short notice, and secondly because decision makers were required to work with a piece of legislation that is almost 130 years old.
We may not have “riotous” assembly in this House—we certainly do not—but we might have “tumultuous” assembly. The sense that that terminology may remain—and indeed was—relevant when claims were being considered after the August 2011 riots, underlines the need for us to improve and modernise the way that we approach the payment of compensation to individuals and businesses who experience losses or damage to property caused by riots. I therefore commend the hon. Members for Ealing Central and Acton (Dr Huq) and for West Ham (Lyn Brown), the right hon. Member for Tottenham (Mr Lammy), and my hon. Friends the Members for Torbay (Kevin Foster), for Solihull (Julian Knight), and for Bury North (Mr Nuttall), who broadly welcomed the need to move forward on this issue.
James Brokenshire
My hon. Friend rightly makes a point about the need for certainty and clarity, and that is precisely what the Bill provides. Clause 1(6) seeks to achieve that by reference to the 1986 Act, and it is right to provide the sense of certainty outlined by my hon. Friend. The right hon. Member for Tottenham and my hon. Friend the Member for Bury North mentioned the need to inform the public about this issue, and if the Bill is enacted we would produce guidance to inform the public about the process and entitlements in the Bill, and subsequent regulations.
There has been some debate about why the Bill seeks to set the cap at £1 million. Alternative proposals were considered, but I think my hon. Friend the Member for Dudley South has captured well the analysis that informed his thinking, which I know is based on research. Such a cap would have dealt with around 99% of claims made after the 2011 riots. We have also discussed the fact that the Bill does not provide cover for consequential loss. The independent reviewer thoroughly considered that issue when considering recommendations, but believed that that would be a step too far in a Government scheme. We agree with that analysis, particularly given the potential impact on the public purse, which is likely to run to tens of millions of pounds. The Bill is not intended as a catch-all, but it was right to raise the issue of its inter-relationship with insurance. This is intended as a safety net, not as an alternative to insurance provision.
We have touched on how the Bill would seek to cover motor vehicles—an issue that, as we have heard, could not have been captured by the original 1886 Act. Again, the cover is not intended to replace insurance, and any claims would be checked to ensure that the vehicle was maintained in full compliance with the law. My hon. Friend has struck the right balance in bringing forward those provisions.
The Bill would also make provision for a riot claims bureau. It is not intended for a bureau to be in place for every instance of rioting—for example, it would not be efficient to make such arrangements where a small-scale disturbance occurred that was perhaps confined to one force area. Experience has highlighted the approach that should be taken to allow for a speedier, more efficient and effective response. The Bill provides for that flexibility, as well as allowing for further regulation.
The right hon. Member for Tottenham talked about how the arrangements would differ from those in the past. If the Bill were to proceed, our approach would be to create regulations setting out the detail of the bureau. The Home Office has had discussions with the insurance industry, police and loss adjusters, and I anticipate that there would be a management board made up of relevant experts, overseeing contracted loss adjusters who would have the capability and capacity to respond quickly. Again, that reflects some of the lessons we have learned.
Mr Lammy
I am grateful for that reassurance. The management board sounds very sensible. There has been some suggestion from the Home Office that some of the expertise that existed following the Bradford and Oldham riots in 2001 has been lost. Might there be a mechanism to contact staff with previous experience of riots—or indeed of floods, after which similar issues come up—so that their expertise can be drawn on quickly?
James Brokenshire
The right hon. Gentleman makes an interesting and fair point. Should the Bill proceed, there will be an opportunity to reflect on such experience when we form the regulations that will set out the structure of the bureau. I hope that we will be able to learn the lessons not only from 2011 but from other times when compensation has been paid. The parallel that he draws with a flooding incident is important.
We believe that the structure of primary police liability, albeit that it was set out in 1886, remains valid. When the police fail to prevent the breakdown of law and order in such a way that a riot occurs, we judge that they should provide compensation to those who have suffered financial loss through no fault of their own. I have sympathy with the arguments that have been made about that strict liability approach, but the independent reviewer came to the same conclusion after much consideration and discussion with police and other stakeholders.
The Bill will bring much-needed reform by ensuring that after future riots, there will be modern, transparent and fair arrangements for individuals and businesses that have experienced losses through no fault of their own. Important points have been made today about payment arrangements, including points about charity payments by the hon. Member for Croydon North (Mr Reed) in an intervention and by the right hon. Member for Tottenham and my hon. Friend the Member for Torbay in their speeches. It is our intention that charitable donations should not be deducted from compensation, but that formal aid such as that funded by local government should be. I think that clarity can be provided.
The hon. Member for Ealing Central and Acton talked about the police marking their own homework, and other Members developed that theme. We expect claims, other than those of relatively low value, to be subject to a loss adjustment-type process, as most insurance claims are. I also underline that clause 9 provides for a reviews and appeals mechanism, which gives an important assurance about how claims will be addressed.
My hon. Friend the Member for Morecambe and Lunesdale (David Morris) rightly focused on small business, and he asked whether mobile businesses might be covered. That is an interesting question that may be worthy of further development in Committee. Members also mentioned the compensation cap, and as we have heard, there is provision for it to be extended. Any legislation requires regular Government assessment, and there are processes in place for that, which I hope will allow for reflection on the level of the cap. I am sure that that point, too, will be subject to further examination in Committee.
Several of the proposals in the Bill will make compensation arrangements more generous. The way compensation has been paid in the past has created hardship for some vulnerable people and businesses, and it is right to ensure that those in the greatest need can recover more easily from the impact of riots. We are mindful of our responsibilities to protect public money, and the proposals to limit payments to large businesses and to apply excesses to compensation will help balance out the impact of increased compensation.
Ultimately, however, the purpose of the Bill tabled by my hon. Friend the Member for Dudley South is to protect vulnerable people from hardship. The current provisions may have been suitable to provide for the living standards of Victorian Britain, but they do not reflect the needs of our modern society. That is why I agree with him about the need for change. I commend him again for bringing the Bill before the House. In the light of today’s debate and the clear need for reform, I hope that the House will not just commend him but give his Bill a Second Reading.
Child Sexual Abuse (Independent Panel Inquiry)
David Lammy Excerpts(9 years, 3 months ago)
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Mrs May
I thank my hon. Friend for his comments. We received a very clear message that the inquiry needed statutory powers, which is why I have brought them forward. It is important that the inquiry is able to compel people to give evidence and that appropriate sanctions are in place in relation to that. I thank him for his comments, given his experience in this area.
Mr David Lammy (Tottenham) (Lab)
I am grateful for the Secretary of State’s statement. Very sadly, a constituent of mine was horribly abused throughout his teenage years at Highgate Wood school in the London borough of Haringey. That led to a conviction last summer. There are suggestions that there were other examples of abuse at that school and in the London borough of Haringey. Will that matter fall within the scope of the inquiry?
Mrs May
The inquiry will look at abuse that has taken place in state institutions and non-state institutions. It will look at why it was possible for that abuse to take place. Those who are in authority in a school have a duty to protect the children and not to abuse them. The inquiry will look at whether the duty of care was exercised properly by people in those institutions, and at what lessons we need to learn to ensure that such abuse does not happen in the future.
Student Visas
David Lammy Excerpts(9 years, 10 months ago)
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James Brokenshire
My right hon. Friend underlines again the need for the Government to continue to focus on the problems that we were left by the previous Government. Their lack of appreciation of the scale of what they handed on is striking. He makes some important points about the some of the detailed applications and courses. I will, of course, look at any representations that he may wish to make on the nature of the points that he has raised, particularly in medicine.
Mr David Lammy (Tottenham) (Lab)
UK universities contribute 2.8% to our GDP. The last time we had concerns about student visas, just one university in London was involved. This involves many colleges and universities. How long will this continue? As it continues, students from countries around the world who are contemplating coming to England will decide to go elsewhere. The Minister mentions hundreds of visits: 48,000 people are out there who should not be. Can he give us some time scales, please?
James Brokenshire
I appreciate the right hon. Gentleman’s knowledge of the university sector. This will take time to work through on the evidence and information available. It is right that meticulous work is conducted by our immigration enforcement officers to pursue their leads and lines of inquiry, where students who have relied on bogus certificates have sought to go on to university or college studies. I should like to reassure him of the Government’s commitment to supporting the whole universities sector. Indeed, I have had conversations with Universities UK and the Russell Group more generally on the excellent work that many of our universities do. They are world leading, and we should be proud of what they achieve and their ability to attract genuine students from overseas. We support that, but clearly we will rigorously focus on the abuse. I will certainly provide regular updates to the House on progress with the work to remove students and on further information that we may receive from ETS, as it continues to analyse its results from other centres.
Extremism
David Lammy Excerpts(9 years, 11 months ago)
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Mrs May
My hon. Friend is absolutely right. He is right to promote and recognise in this House the good work being done by the Bury Muslim Christian Forum in his constituency. It is exactly that sort of work at community level—people coming together to increase their understanding of each other—that is so valuable in the work of integration of our communities.
Mr David Lammy (Tottenham) (Lab)
In December 2009, when I was Minister with responsibility for higher education, a young man, Abdulmutallab, boarded a plane between Amsterdam and Detroit intent on bombing that plane. There were, as the Home Secretary would imagine, intense conversations between the Department with responsibility for universities and the then Home Secretary. Those conversations never made their way into the public domain. Given the seriousness of what has happened, and with the attack in Pakistan just yesterday, should the Home Secretary not come to this House and apologise, like the Secretary of State for Education, for what has happened in the past few days?
Mrs May
First, the right hon. Gentleman does well to remind us of the terrible incident that has taken place in Pakistan. Our thoughts should go out to all those who have been victims of that terrible attack. Pakistan has suffered more loss of life through terrorist acts than anywhere else. That is a fact I have recognised on a number of my visits to Pakistan and it is a fact we should recognise in this House. As to other matters, the question of those who go and preach, and attend and speak at universities is important, and is one that I discuss with the Department for Business, Innovation and Skills. We ensure that Prevent co-ordinators are there to be able to support universities in the necessary work they are doing to help to support those on their campuses.
Stop-and-Search
David Lammy Excerpts(10 years ago)
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Mrs May
I am grateful to my hon. Friend for welcoming the wider work I have commissioned from HMIC. She is absolutely right. I have announced a package of proposals today. Obviously, we have to see those being taken up by forces. This is about a process, and it is about changing attitudes in the way my hon. Friend has described as so necessary.
Mr David Lammy (Tottenham) (Lab)
The Secretary of State will be aware that after the riots, the victims panel set up by the Government targeted section 60 blanket notices as the root cause of stop-and-search. I was also grateful to be able to serve on the review set up by HMIC. I say to the Secretary of State that this will require legislation. I welcome the progress she has made, but section 60 came in through legislation and we need to change it through legislation.
Mrs May
I thank the right hon. Gentleman not only for the explicit work he has mentioned, but for raising the issue over the years during his time in this House. The Roberts case has established case law in relation to the interpretation of section 60, and that makes it clear that there must be necessity rather than just expediency.
UNHCR Syrian Refugees Programme
David Lammy Excerpts(10 years, 3 months ago)
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Mr David Lammy (Tottenham) (Lab)
I am grateful to be able to contribute to the debate and I congratulate the Secretary of State for International Development, in particular, on the £600 million in aid that she has been able to give to Syria and the region.
My seat of Tottenham can be described as one of the country’s gateway constituencies for people claiming asylum or seeking to immigrate into this country. That has been the case for many hundreds of years and it makes the Tottenham constituency the most diverse three-mile area in Europe, with more than 250 languages spoken. At the corner of my constituency, for example, is the Orthodox Haredi Jewish community, which had to flee parts of eastern Europe because of the pogroms and the awful anti-Semitism displayed in Europe at that time.
Of course, my constituency is also the place to which my family came from the Caribbean, my father arriving in 1956. It took me some time, as the son of immigrants, to understand that some of my classmates at primary school, secondary school and university, were not immigrants, as my parents were. They were refugees, building a life for themselves in this country. Poverty, finding one’s way in a new system and sometimes dislocation are part of that, but they also had deep scars and had suffered deep trauma.
Looking over the four decades of my life, I think particularly of those fleeing Cyprus and this country’s outreach to the Cypriots. I think also of those fleeing Uganda because of Idi Amin’s terrorising and expulsion of Ugandan Asians. I think of the Vietnamese boat people and the Vietnamese I was at secondary school with. Then I think of those who, at about the time I was graduating and onward, came here from Bosnia and Kosovo. In each case, we reached out to those people, in part because of a shared understanding of the importance we must always give to refugee status.
That is scarred on the history of this country, beginning to some extent with the first world war, which we will commemorate later this year, and those who fled Belgium and the lowlands. Then, the second world war brought the holocaust, which we remember this week, and the many millions who fled, some finding refuge in our country. So when we talk about the UNHCR, we talk about a very important institution. Of course I welcome the statement, and I am pleased that we will not divide the House on the motion, but I have reservations about the manner in which we are choosing to exclude ourselves from the UNHCR scheme. There are times when we look to others—recently, in the context of Syria, to China and Russia—to play their part in the international family that is the United Nations. If we then step outside the UN systems, what message does that send?
In evoking the Ugandans, it is important to remember that in 1972, this country took in 25,000 Ugandans. In thinking of Cyprus, we should remember that we took in 50,000 Cypriots. In thinking of the Vietnamese boat people, we recall that we took in 10,000 Vietnamese. In thinking of Kosovo, we remember that we took 10,000 Kosovans into this country. Although we welcome today’s announcement, the way in which we set the language of “several hundred” should be seen in that context.
It would be remiss of me not to say how sad it is that this debate is held against a backdrop of concern in this House about immigration. Refugee status is quite different. The truth is that, because of legislation passed under the previous Government, those coming to this country as refugees now account for only 4.5% of people coming here to make a life for themselves. There is an elephant in the room, but I hope that we will look again at the numbers, because I fear for those who are trying to escape Syria today.
Oral Answers to Questions
David Lammy Excerpts(10 years, 3 months ago)
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Mrs May
As I said in response to my hon. Friend the Member for Esher and Walton (Mr Raab), the Police Federation is considering its response to the Normington review, and I look forward to seeing what it proposes to bring forward as a result of its consideration. The Home Office stands ready to make the necessary changes to enable the federation to put in place the right structure to ensure that it is truly representative of police officers.
Mr David Lammy (Tottenham) (Lab)
T8. The Independent Police Complaints Commission cannot suspend officers, it cannot compel them to give interviews, it cannot prosecute them and its budget is smaller than that of the Met’s complaints department. Given what the Prime Minister said at Prime Minister’s questions, is it not time to reform this organisation so that we have a proper, independent, efficient investigatory body looking at the minority of police officers who offend?
Damian Green
It is absolutely time to reform and improve the IPCC, which is precisely why the Government have given it not just a bigger budget, but more powers, under legislation currently passing through Parliament, so that we can achieve reforms that make it efficient and large enough to do the very important job we ask it to do.