Trade Union (Levy Payable to the Certification Officer) Regulations 2022

Lord Razzall Excerpts

Monday 7th March 2022 Lords Chamber

I hope—not with much expectation—that the Minister will adopt a sensible and proportionate course of action this evening, but in the absence of that, I hope the House will support my amendment to the Motion. I beg to move.

[Lord Razzall (LD)]

My Lords, like many debates on statutory instruments in this House, the real substance of this debate is not particularly about the topic on the agenda. A moment’s thought will tell us that this is really about party funding. Of course, the noble Lord, Lord Bassam, on behalf of the Labour Party, has to oppose this in the way the Labour Party will oppose most attempts to place any form of restriction on the trade union movement. As we all will realise, historically, the Labour Party started as the political wing of the trade union movement. Of course, in recent years Labour is even more dependent on funding from the trade union movement.

I have obviously been a critic for many years of our system of funding, which has led Labour to be in a position where they require this, but the problems Labour has are as nothing compared with the current funding problems of the Tory party, with Russian donations and skirting very close to the line on the sales of honours. I do not think it is for the Tory party to criticise Labour for taking the position of the trade union movement on this.

I have every sympathy with the noble Lord, Lord Bassam, on this issue. As he and one of his colleagues in the House of Commons commented, to make trade unions pay for certification is like making charities pay for the Charity Commission. That is a very valid point that the Minister needs to answer.

As the noble Lord, Lord Bassam, indicated, the sums taken from the unions, for minimal advantage to the taxpayer, would mostly be spent on the necessary protection of their members. I know people assume that unions are simply political activists, but most of the money they raise is spent on that. This money will be taken directly from their members and will not be used for that purpose.

Finally, I thought the noble Lord, Lord Bassam, went slightly light on the Tory party and the Government on this issue. Having watched them over my 25 years in your Lordships’ House, I think that hostility to the trade union movement is deep in the Tory party’s DNA. It goes back to the reforms created by Margaret Thatcher, which they believe sets the standard for all future activity by the Tory party. It is unfortunate. I support the noble Lord, Lord Bassam. These proposals are very unfair.

[Lord Woodley (Lab)]

My Lords, this is the first opportunity I have had to speak since my near-death experience nine months ago. It would be wrong not to thank the Lord Speaker for all the support he has given me and my family and to thank the rest of the noble Lords here who know what has gone on. I also thank Dr Wong in Liverpool general hospital for somehow saving my life. It is a privilege to be back.

I declare an interest as the former leader of Unite. This levy is correctly being called a trade union tax. Indeed, it is nothing less, as we know, than an ideological attack on workers and their families. It is part of a pattern of anti-trade union legislation that also includes the Elections Bill. As the previous speaker just said, taxing trade unions to fund their own regulator makes as much sense as taxing charities to fund the Charity Commission. It could be up to 2.5% of annual income. How on earth can that be justified? How on earth can that be right? By taking this money from trade unions, the Government are restricting their ability to support members at work at a time when workers are facing a cost-of-living crisis and trade union help is needed more than ever.

The new regulations unfortunately also open the door to vexatious complaints—whether from vindictive employers, far-right organisations or even the Conservative Party itself—which threaten to consume the regulator’s time and resources, and therefore cost more money for the trade unions. Is that the aim? As has been said, last year, 34 complaints were made to the Certification Officer and no enforcement action was taken. Clearly, this is a solution to a problem that does not exist. Unions naturally fear that this number will dramatically rise when absolutely anybody, not just union members, has the power to make complaints. Of course, it will be the unions who foot the bill.

I will close on some straightforward questions for the Minister, one or two of which have already been mentioned. Why are the Government bringing forward these aspects of the Trade Union Act 2016, but not making any progress on the important issue of electronic balloting? Where are the pilot projects called for in the Knight review, which could be very helpful? We find ourselves in a situation where they are not being brought forward now. Is it the very fact that, democratically, people do not want trade unions to really be democratic? It is just an attack. Could the Minister also tell me when we can expect to see the much-promised employment Bill that will

“make the UK the best place in the world to work”—

a manifesto commitment no less, unlike so much of the government business we are currently dealing with—or was this just an empty pledge to fool the workers into voting for the bosses’ party at the last election? Actions speak louder than words, and this cynical and repressive trade union tax speaks for itself. We must stop or remove this vindictive legislation.