Local Government (Exclusion of Non-commercial Considerations) (England) Order 2022

Lord Khan of Burnley Excerpts

Tuesday 28th June 2022 Grand Committee

[Baroness Pinnock (LD)]

My Lords, I draw attention to my relevant interests as a councillor on Kirklees Council and as a vice-president of the Local Government Association. I support the terms of this statutory instrument, which, as the Minister said, is a reaction to the heinous acts of what has become a murderous Russian regime that is directing its unrelenting firepower on the citizens of Ukraine. As a result, it is incumbent on us to do whatever small act we can to reduce links that might enhance businesses based in Russia or Belarus.

Following on from the questions asked by the noble Lord, Lord Jones, does the Minister know, or can he find out for us, the total value of local government business currently placed with Russian or Belarusian businesses? If he does not have that information, will he write to us and perhaps put the information in the Library? People would widely welcome that information, I think.

When I saw this SI, I thought it demonstrated how overcentralised we have become that we must have secondary legislation to enable local government to make decisions about where it places its contracts. What the Minister said—that there was pressure from local council leaders on the Government to enable this action to take place so that local authorities did not open themselves to legal challenge—proves my point. It spoke to me. For goodness’ sake, precious government time has had to be spent on drawing this measure up so that councils can make the sane and sensible decision to stop making new contracts with Belarus and Russia. We need to change that. Perhaps we will get another SI from the Minister in future just to release councils from this burden of insensibility, but clearly I totally agree with what is contained in this order.

[Lord Khan of Burnley (Lab)]

My Lords, first, I refer noble Lords to the register, which details that I am still a local councillor in the finest borough in the country, Burnley Borough Council. I thank the Minister for his speech outlining the sensible and pragmatic proposal before us, which responds to the sector and ensures that we show our solidarity at not only the national government but the local government level across the United Kingdom.

I am pleased to say that we on these Benches strongly support this statutory instrument. We support the Secretary of State and the Government giving local authorities the flexibility to make the decisions that are right for their localities. It is the right thing to do. We have continuously called on the UK Government to move faster and harder on economic and diplomatic sanctions against Putin’s barbarous regime. Too often we have lagged behind the EU and the US, while some promised measures have yet to be implemented. Ministers need urgently to introduce a new US-style law to act against those who act as proxies for sanctioned individuals and organisations. Supporting this statutory instrument further demonstrates that our support for Ukraine at all levels of government remains undiminished. The UK and our allies have shown remarkable strength and unity in response to President Putin’s invasion of Ukraine. We will not be party to funding his war machine. Noble Lords have spoken with great solidarity in relation to the situation in Ukraine and supporting the order.

Having listened to noble Lords—in particular my noble friend Lord Jones, who, like the noble Baroness, Lady Pinnock, asked some excellent questions—I want to ask the Minister a few questions of my own in the same spirit. How has the department engaged with local authorities to make them aware of these new powers? Will the Minister encourage local authorities to exercise these powers? If so, how? What assessment has the department made of the level of contracts in the public sector with Russia and Belarus?

I just want to pick up on the point made by the noble Baroness, Lady Pinnock, about highlighting the challenge of overcentralisation. Like the Minister and the department for levelling up, we must look to ensure that, rather than responding after pressure from local authorities, we lead from the front so that local authorities are not put in difficult positions. I look forward to the Minister’s response.

[Lord Greenhalgh (Con)]

My Lords, I thank the Committee for considering the order and for all the contributions to the debate. I am sure we can agree that it will further simplify our already strong message to Russia that we stand firmly with Ukraine and will use all levers possible to cut off funding to this illegal invasion. Allow me to try and respond to the points made by noble Lords.

I start with the points raised initially by the noble Lord, Lord Jones, and then backed up ably by the noble Baroness, Lady Pinnock, around what we know about which local authorities have contracts with Russian and Belarusian-backed companies and the value of those contracts. The Government do not hold data on how many contracts and sub-contracts are held by local authorities with organisations under the control of Russia or Belarus. However, we know that there are contracts and that the Secretary of State has been asked by a number of council leaders to amend legislation to allow councils to terminate such contracts.

The noble Lord, Lord Jones, wanted some examples of contracts that fall into this. I will give one, which makes two points that have been raised by noble Lords. The first is that Portsmouth City Council has a contract with Gazprom and has decided not to terminate the contract. I make this point because it is not for Ministers or central government to use the bully pulpit. In response to the noble Lord, Lord Ahmad, I say that we are giving a permissive power for local authorities to make the decision about whether they withdraw from these contracts or not. We want them to go through the process and have the ability to do so, which currently in theory they do not, which is why we are bringing in this statutory instrument. We have been asked by the noble Lord, Lord Jones, about the impacts of employment—

[Lord Greenhalgh (Con)]

What paper?

[Lord Khan of Burnley (Lab)]

It is Lord Khan, not Ahmad.

[Lord Jones (Lab)]

From the officials.