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It is a pleasure to serve under your chairship, Mr Turner. I congratulate my hon. Friend the Member for South Dorset (Lloyd Hatton) on securing this important debate, during which I wish to talk about the contribution of whistleblowers through the specific lens of tackling economic crime—an endeavour to which I dedicated almost 15 years of my life.
Economic crime costs this country an eye-watering £350 billion a year. That is the equivalent of 15% of our GDP, siphoned away by fraudsters, the corrupt, bribe takers, and the organised crime gangs that thrive off illicit finance, and yet the UK allocates a meagre 0.05% of its GDP to law enforcement agencies that are tasked with combating this national threat. Our public finances are in a very challenging position, so we need to give those agencies cost-effective tools to catch the criminals, recover stolen assets and hold corporations to account. That is why we must empower one of our most powerful underutilised resources: whistleblowers.
Whistleblowers are the eyes and ears inside organisations where economic crime is committed. They are our frontline allies. Often, they are the only ones who can see fraud taking place or corruption being buried, and yet all too often they are ignored, unsupported or, regrettably, even punished for speaking out. Let me be clear: if we are serious about tackling economic crime, we must also be serious about supporting whistleblowers.
The evidence is compelling. Research by the campaign group Spotlight on Corruption found that in the United States from 1986 to 2022, whistleblowers were responsible for 69% of all the proceeds that the Department of Justice recovered through civil fraud cases involving Government funds. That it not a trickle; it amounts to an incredible $50.4 billion out of the $72.6 billion recovered by the US DOJ in that period. That is a flood of stolen public money returned to taxpayers because someone had the courage to speak up. The UK should learn from that example.
Our system does not work as well as it could for whistleblowers. Speaking up about wrongdoing can lead to the end of someone’s career, and it can mean personal, psychological and financial ruin, as my hon. Friend the Member for Congleton (Sarah Russell) admirably spoke about. As researchers at the Centre for Finance and Security at RUSI have made clear, moral motivation alone is not enough to sustain a whistleblowing culture. We need a systemic shift and a new approach that recognises whistleblowers as vital sources of intelligence, not just idealists acting out of principle.
The Post Office Horizon scandal came to light not because of Government oversight, but because brave individuals took it upon themselves to blow the whistle. The Danske Bank money laundering affair, which involved €200 billion in illicit funds flowing through Estonia, unravelled thanks to an insider who refused to look away. Those are not isolated examples; they are warnings of what happens when systems fail and people are silenced. We must do better.
What can be done? The all-party parliamentary group on anti-corruption and responsible tax, of which I am a member, has put forward two measures in its economic crime manifesto that could make the UK a leader, not a laggard, when it comes to whistleblower protection and impact.
First, the manifesto proposes that companies must be required to investigate whistleblower concerns relating to economic crime, with independent oversight of those investigations. Too many companies currently treat whistleblowing as a reputational threat to manage, not a red flag to act on. I know that myself having spent more than a decade tackling economic crime and bribery in the financial services sector. Employees raise concerns, but they can be swiftly buried or dismissed, and there is no statutory duty to take the disclosures seriously and no independent body to check whether an investigation was conducted fairly, or even at all. That must change. We should compel companies to treat whistleblowing disclosures with the seriousness they deserve and ensure oversight to prevent cover-ups; otherwise, the very people who know what is happening are driven into silence or despair.
Secondly, the Government should look at the merits of establishing a central, easily accessible, secure and responsive whistleblowing body that can offer advice, support and a safe route to report wrongdoing. Currently, potential whistleblowers are left navigating a bureaucratic maze. They often do not know who to turn to and, when they do, they might be met with silence, confusion or—worse—retaliation. We must take this out of the shadows. A central body would not only simplify the process for blowing the whistle, but build trust, ensure consistency and act as a much-needed conduit between whistleblowers and law enforcement.
I welcome the leadership shown by the Serious Fraud Office under its director Nick Ephgrave. The SFO has rightly identified whistleblower incentivisation reform as a key strategic priority for 2025-26. As my hon. Friend the Member for South Dorset mentioned, it is vital that we have a framework for rewarding and supporting those who blow the whistle. I accept that that marks a critical shift in thinking, from viewing whistleblowers as risks to seeing them as assets. Strengthening our whistleblowing framework would help law enforcement gather evidence earlier, reduce investigative delays and save public funds.
With the withdrawal of US leadership on this front internationally, has the Minister considered that strengthening our own whistleblowing framework and incentivisation schemes could prompt more whistleblowers from other jurisdictions to view the UK as a jurisdiction of choice in which to blow the whistle? That could have economic benefits for our agencies and the Exchequer.
Ultimately, we need to engender a cultural shift—one that reframes whistleblowing not as betrayal, but as public service, and says to financial professionals, civil servants and corporate employees alike, “If you see wrongdoing, we’ve got your back.” That is why I pay tribute to the whistleblowing charity Protect, which for decades has supported individuals who took the hardest step of all: to tell the truth in the face of adversity. Its work is so important, because economic crime is not victimless. It robs pensioners, rips off taxpayers and funds everything from kleptocracy abroad to serious organised criminals peddling drugs or firearms at home.
Whistleblowers help us see the unseen, name the unnamed and hold the untouchable to account. I call on the Minister to look at giving whistleblowers the legal backing and institutional support they deserve; learn from the United States, where whistleblowing incentives drive billions in recoveries; and, above all, let us create a system that protects those who protect the public interest.