Oral Answers to Questions
Debate between Rushanara Ali and Kevin Hollinrake(5 days, 18 hours ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rushanara Ali (Bethnal Green and Bow) (Lab)
Shoplifting cost UK retailers £1.8 billion in 2023, the highest figure on record. The Government’s £200 shoplifting threshold has effectively decriminalised this offence, which is costing businesses dear. What discussions has the Minister had with the Home Secretary about scrapping it, as Labour plans to do, so retailers and customers are protected and high street businesses can thrive?
Kevin Hollinrake
It is not true to say that we have decriminalised thefts under £200. The hon. lady needs to speak to police officers and her local chief constable to make sure she understands how this works. I have worked very closely with the Home Office and the Policing Minister to make sure we have a retail crime action plan, which includes a vexatious offence with more severe sentences for people who assault shop workers. We have got an action plan together and it is working well with retailers, and I am very keen to see her support that plan.
Rushanara Ali
Well, it is not working, and the Minister and the Secretary of State should take this seriously, because it is damaging our high streets and causing huge concern up and down the country. He and the Secretary of State should go and meet those businesses, and hear from them directly.
Turning to another issue, we have seen 14 years of Conservative under-investment in public infrastructure, a failure to provide certainty and a failure to get a grip on the economy. Business investment has also suffered. Had it matched the average investment levels of France, Germany and the US, our GDP would be nearly 4% higher today, and wages would have been boosted by £1,250 a year. Can the Secretary of State outline how she plans to fix this crippling investment gap, and what will she do to make sure businesses get the support they need so that we can get the economic growth this country desperately needs after 14 years of under-investment?
Draft Economic Growth (Regulatory Functions) (Amendment) Order 2024
Draft Growth Duty: Statutory Guidance Refresh
Debate between Rushanara Ali and Kevin Hollinrake(2 weeks ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rushanara Ali
I asked the Minister about the primary and secondary objectives, and whether he sees any parallels in how these changes are thought of—I know this is about having due
“regard to the desirability of promoting economic growth”.
Does he think there is a parallel with the way that the competitive duty has been applied?
There is a potential tension to be managed in how regulators think about the importance of sector regulation and the Government imperative to promote growth. When regulatory officials think about our priorities, they might err on one side or the other, and that tension could be a problem. Does he feel that more work is needed to emphasise how the measures are applied, so that consumers do not suffer while we try to promote growth?
We need to do these things in tandem, so that we do not end up with a false economy, where damage is done to the economy through protections and standards that then cost the taxpayer a significant amount. That would leave us in the worst of all worlds, and is surely something that all different parties want to avoid.
Kevin Hollinrake
I do not disagree with anything the hon. Lady says. This is a parallel objective, not one that should replace the current objectives. It is a consideration for regulators. It is about not just obviating the risk, but looking at other factors. Investment is hugely important for our consumers and our citizens. This draft order is not about one thing or the other—for example, it will not replace the environmental duties of Ofwat. Indeed, the Environment Agency, which has had this duty since 2017, has issued about £150 million in fines to 60 different companies, so this is not about backing off on environmental protections. The hon. Lady raises an important point, however, and we have committed to reviewing how these measures will affect the general regulatory regime to ensure that there are no unintended consequences, although we do not feel that there will be, as long as the right balance is struck.
Of course, regulation must be used only where absolutely necessary, and must be implemented in a way that provides the right foundations for our economy to thrive. The purpose of the duty is to ensure that the specified regulators give appropriate consideration to the potential impact of their activities and decisions on economic growth, alongside their consideration of other statutory duties. It does not create a hierarchy over existing protections.
With that, I believe I have addressed all the questions posed by right hon. and hon. Members, and look forward to the Committee’s support and commendation of the order.
Post Office Legislation
Debate between Rushanara Ali and Kevin Hollinrake(1 month, 3 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rushanara Ali
I will move on. I simply hope that the Minister will reflect on the reversal of the statement he gave this morning, in which he took the position that he would take a donation from that donor. I hope he reflects on the impact that the issue is having on many of us.
I turn to today’s crucial statement. The Horizon scandal is truly shocking, and is one of the most devastating miscarriages of justice in British history. The scandal has brought devastation to the lives of hundreds of falsely convicted sub-postmasters. Over 20 years on, they and their families still suffer from the consequences and the trauma of all that they have been put through. I pay tribute to them for their determination in pursuing justice, and to Alan Bates and the sub-postmasters who pioneered the campaign and worked tirelessly to seek justice. Without their bravery and perseverance, the campaign would not be where it is today. I also pay tribute to my right hon. Friend the Member for North Durham (Mr Jones) for all his work, to Lord Arbuthnot for his campaigning on this issue for many years, to others in this House and the other House, and to members of the Business and Trade Committee and its Chair, my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne).
We of course welcome the legislation that is being laid before Parliament today, but before giving a full verdict on it, we will need to properly scrutinise the details and analyse its potential impacts. In the first instance, the legislation leaves a series of outstanding issues, and the question of when justice and compensation will be delivered, and to whom. First, I will address the territorial scope of the legislation, which currently applies only to England and Wales, even though the Post Office is not devolved, and the Horizon system and the impacts of the scandal are UK-wide.
Approximately 30 cases need overturning in Scotland and Northern Ireland, but a series of outstanding questions remain as to when sub-postmasters in Scotland and particularly Northern Ireland will receive justice and compensation. I welcome the Minister’s assurance that there will be regular dialogue with the devolved Administrations, but I would be grateful if he provided more detail on how that will work in practice, given the different legal processes.
As we know, 80% of the redress budget is yet to be paid out. There remains considerable uncertainty about when sub-postmasters will receive their compensation. I am sure that we can all agree that they have waited long enough, and the delays are causing further financial distress and suffering. We note the Business and Trade Committee’s recommendation that there be a legally binding timeframe for the period between an offer being first tabled and a settlement being reached. If those legally binding targets are not adopted, what assurances can the Minister give that he will meet his target of ensuring that all compensation is out of the door by the end of the year? What mechanisms will he put in place to ensure that there are no further delays? I know that he is committed to ensuring that there are no further delays, but sub-postmasters will want to know that this will actually happen.
Given the recent chaos in the Post Office’s leadership, we welcome the decision to take the Post Office out of the redress process. As the Minister said, redress must have independent oversight. The Post Office is in disarray, and we need focus and efficiency in ensuring that compensation is paid to the sub-postmasters as soon as possible.
Financial redress alone cannot come close to repaying sub-postmasters for their suffering, though it is so important that we get it right. The very least the Government can do is ensure that sub-postmasters receive fair compensation and exoneration as soon as possible. There are those impacted by the scandal who have sadly passed away, and did not live to see their innocence proven or to receive the compensation that they deserved. It is vital that the Government act with the urgency and speed that is needed to correct this terrible injustice.
Kevin Hollinrake
The shadow Minister’s comments are on the record, so I shall deal with them briefly. I think this is the second time she has made comments at the Dispatch Box that have been unfair or factually incorrect, and I hope that she will correct the record. If she had actually watched the interview I gave, she would know that I absolutely did condemn the words of Mr Hester. I said they were wrong. I said they were racist, and I think it is absolutely right that he has apologised. She should watch the full broadcast, and I hope that she will apologise to the House and correct the record.
The points that the hon. Lady raised pertain largely to the Scottish and Northern Ireland devolved Administrations. I quite understand the concern around those issues, and I am very keen to ensure that we get this right across the United Kingdom. As she acknowledges, there are different legal processes in those areas, and we think it would be inappropriate for us to legislate for parts of the United Kingdom that have different legal processes and different prosecutors. Justice is devolved, although the Post Office is a UK-wide organisation, as she rightly says. That is why we think the legislation should allow devolved Administrations to legislate for themselves, if they choose to. We will work closely with them. Officials meet them weekly to assist wherever we can, so that compensation can be delivered UK-wide; that is how the scheme operates.
I think the hon. Lady said that 80% of compensation was yet to be delivered. I may be wrong there, so I will check the record. Across all the schemes, in around two thirds of cases, full and final compensation has already been received. That being the case, about 2,000 people will be topped up to £75,000, as I announced earlier, but it is not right to say, as I think she did, that the majority of people are waiting for compensation.
The hon. Lady asked whether we wanted to deliver the compensation by the end of the year. Absolutely we do, but as I said, not everything is in our gift. We cannot compel a claimant to submit a claim, or know when that will happen. If somebody puts in a claim right towards the end of the year, for example, it may not be possible to deal with it before the end of the year. Not everything is in our gift, but we are keen to expedite anything that is.
It is absolutely critical that we have independent oversight; all schemes have it. In the overturned conviction scheme, we have retired High Court judge Sir Gary Hickinbottom, and the £600,000 fixed-sum award; but on Mr Hickinbottom’s advice, we have also introduced the £450,000 payment as soon as a full claim has been submitted. We are doing everything we can to make sure that people are compensated as quickly as possible.
Oral Answers to Questions
Debate between Rushanara Ali and Kevin Hollinrake(2 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rushanara Ali (Bethnal Green and Bow) (Lab)
The perfect storm of rising borrowing, rent and labour costs is continuing to cripple businesses, and the UK small business index fell 78 points last December, according to Xero Small Business Insights, to the lowest reading since the middle of the pandemic in August 2020. The Government have had 14 years to tackle the barriers facing SMEs. What specifically will the Small Business Council do, and what will Ministers do to halt the alarming trend of more businesses closing than opening?
Kevin Hollinrake
I am sorry that the shadow Minister is so pessimistic about the world of business. We have spoken at events together many times, and she hears the mood in those audiences, which is far more positive than she sets out. We are active in many areas, as she knows. At the event we both spoke at this week, I talked about access to finance, support and advice, and removing barriers. Access to finance has been key, with £1 billion of Start Up loans having been made to 100,000 businesses. If she listened to the Budget yesterday, she will have heard about the rise in the VAT threshold and the growth guarantee scheme. There are many opportunities for small businesses. We will have 200,000 more workers coming back into the workplace, tackling another barrier for businesses. Get with the programme; it is much more exciting than she thinks.
Post Office Board and Governance
Debate between Rushanara Ali and Kevin Hollinrake(2 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Rushanara Ali (Bethnal Green and Bow) (Lab)
What we saw yesterday was unedifying and, at points, a fiasco. Sub-postmasters watching will have rightly been dismayed and will have felt that, if anything, they were moving further away from justice. The ongoing conflict at the top of the Post Office and the failure of the Government to get a grip is helping no one and is only further eroding trust in this process. The Secretary of State should reflect on how her approach to the news of recent weeks has only exacerbated that. We, and especially victims, have all had enough of the “He said, she said”. Does the Minister now recognise that the best way to end this is by fully clarifying what the Government have or have not said, through an independent Cabinet Office investigation?
May I also pick up on some very worrying evidence given yesterday by Carl Creswell, the director of business resilience in the Department for Business and Trade? When talking about the financial provisions set aside for Horizon compensation, he said:
“I personally think we will end up spending more money on compensation overall than that £1 billion figure, which was modelled at an earlier stage.”
That is incredibly serious. Does the Minister share that view held by one of his senior civil servants? If so, what conversations has he had with Government colleagues and will we see that reflected in next week’s Budget?
Will the Minister clarify whether he or the Secretary of State were aware that Nick Read was also under investigation, as was allegedly stated in the 80-page document referred to by Henry Staunton in yesterday’s Select Committee hearing? In response to me during an urgent question on 29 January, the Minister said that Henry Staunton’s sacking was not due to a falling out, but that it was
“about very serious governance issues related to the person who headed the board of the organisation, which are obviously confidential human resources issues.”—[Official Report, 29 January 2024; Vol. 744, c. 612.]
Will the Minister confirm whether he had sight of the confidential human resources report referred to in yesterday’s Select Committee hearing? If so, why was he selective in his update to the House?
Finally, it is very important to make sure that we restore trust, by urgently bringing forward legislation. I hope that, unlike yesterday’s unseemly events, our focus can return to making sure that we exonerate the sub-postmasters and deliver the recompense that they rightly deserve.
Kevin Hollinrake
When the hon. Lady says that I was “selective” about what I said, is she accusing me of being economical with the truth? If so, I would take exception to that. It would be absolutely wrong for anybody in this House to disclose information about an investigation that has not concluded and where the presumption of innocence must apply for the individuals concerned. If she thinks I should come to this House to talk about those kind of sensitive, confidential matters, she does not understand how the corporate world works.
Kevin Hollinrake
I will not give way, as I am answering the hon. Lady’s question.
Post Office Horizon: Compensation and Legislation
Debate between Rushanara Ali and Kevin Hollinrake(2 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rushanara Ali (Bethnal Green and Bow) (Lab)
May I thank the Minister for advance sight of his statement? The Horizon scandal has rightly left the public outraged by the scale and shocking details of the injustice that has been committed. The scandal is one of the greatest miscarriages of justice in British history. It has robbed innocent people of their livelihoods, their liberty and, sadly, in numerous cases, their lives. More than 20 years on, the victims and their families are still suffering the consequences of the trauma of all that they have been put through. Until recently, there has been little progress and delays at every turn, which has caused even further distress.
Victims and their families have been trapped in a nightmare for too long. We all want to see the exoneration of all the remaining convictions, and the delivery of rightful compensation to all those affected sub-postmasters as quickly as possible. On the Opposition Benches, the Labour party has made it clear that we want to see a swift and comprehensive resolution to this insidious injustice, and we are committed to working with the Government to ensure that happens.
I recognise the important work that the Minister has done, both on the Back Benches and in his current role. The unprecedented scale of the legal work being carried out will be possible only with cross-party working and cross-party support. I want to take the opportunity to thank the advisory board for its tireless work in supporting the Government in getting this right, as well as hon. Members on both sides of the House and in the other House.
I welcome the Minister’s commitment to progressing the legislation. Labour is committed to working with the Government to deliver rightful exonerations, but I know that many Members will have had questions following last Thursday’s written ministerial statement, so I welcome the Minister returning to the House. I have a series of questions to pose to him. First, in the light of what he has said today, what further details can we expect on the legislation being tabled? Will he further clarify why convictions prosecuted by the Department for Work and Pensions are excluded from the legislation and what steps he will take to get the Department to deliver exonerations as soon as possible?
The Minister’s proposals set a very difficult precedent, as he said, on the relationship between the legislature and the judiciary. Will he outline what conversations he has had with the Lord Chancellor about this matter and his views on it, which might alleviate some people’s continued concerns?
As the Minister mentioned, there are also issues around precedent that could be exploited in the future for less appropriate purposes. Although I appreciate the assurances that he has provided on that, it would be helpful to understand and get clarification on what specific safeguards will be put in place to avoid this becoming a precedent. The cross-party nature of this work is critical to ensure that happens. However, some people are asking whether he considers that this particular example could be relevant in the future for other worthy causes.
May I also ask the Minister about the pre-Horizon system, Capture? Will he confirm whether prosecutions were made using Capture data and whether any sub-postmasters lost money due to Capture failings? If so, will he commit to those convictions being in the scope of the legislation and compensation schemes?
Kevin Hollinrake
I thank the hon. Member for her collaborative comments. I am keen to work with her going forward, as we have every step of the way on this issue. I do not accept that we have made little progress. Let us be clear that 78% of all full claims that have been submitted have been settled—that is 2,700 claims that have been settled. Nor do I accept that there have been delays at every turn. That is not a correct characterisation of the situation.
With regard to our next steps, as I said, we expect the legislation to be tabled next month, which is as quickly as possible. I am working on this on very much a daily basis. On the differences between Post Office and CPS cases—those we are seeking to overturn with this legislation—and DWP cases, I think it is fair to say there was a different standard of evidence. Those DWP cases relied on evidence independent of Horizon such as the surveillance of suspects, collation and examination of cashed orders from stolen benefit books and girocheques, handwriting comparisons and witness statements. Those cases were very much not simply relying on Horizon evidence.
My engagement with the Lord Chancellor has been extensive, and our engagement with other stakeholders—including the hon. Member’s shadow Front-Bench colleagues—has also been extensive. We decided that was the right thing to do. Having said that, these are unprecedented steps. I think that again speaks to the fact that we are keen to make as much progress as possible, rather than as little.
The hon. Lady mentioned safeguards. The standard of evidence is critical to get to this point. It is fair to say that the trailblazing 555, who successfully took their case to the courts in the first place, set a high bar for anyone to emulate or replicate. We will be clear in the legislation that convictions will be overturned based on objective criteria, as another way to deal with this. That speaks to the hon. Lady’s last point on Capture, which I am very aware of and I have discussed with the right hon. Member for North Durham (Mr Jones) on several occasions, including immediately prior to this statement. We need to ensure that we have the right evidence base. I am happy to continue the dialogue on that, but it is important that we do not include cohorts where we do not have the evidence base, as we have for the cohorts that we have set out—where the CPS and the Post Office prosecuted cases. We are taking very serious measures to overturn the convictions. We should never resort to this kind of approach lightly.
Oral Answers to Questions
Debate between Rushanara Ali and Kevin Hollinrake(3 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rushanara Ali (Bethnal Green and Bow) (Lab)
Business closures now exceed new business openings, with 345,000 businesses across the UK closing in 2022—the highest since records began. This week, the Financial Times reported that more than 47,000 businesses are on the verge of collapse. Former Prime Minister Johnson used an expletive to describe his party’s commitment to business. His successor well and truly delivered on that commitment by crashing the economy. Is it not time the Government put businesses out of their misery by calling a general election, so that the country can get back to business?
Kevin Hollinrake
On this side of the House, we are for business because we are from business, and we understand the needs of businesses.
Post Office (Horizon System) Compensation Bill
Debate between Rushanara Ali and Kevin HollinrakeTuesday 19th December 2023
(4 months, 2 weeks ago)
Commons ChamberRead Full debate Post Office (Horizon System) Compensation Act 2024 View all Post Office (Horizon System) Compensation Act 2024 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Committee of the whole House Amendments as at 19 December 2023 - (19 Dec 2023)
Rushanara Ali (Bethnal Green and Bow) (Lab)
I thank my right hon. Friend the Member for North Durham (Mr Jones) for speaking powerfully to new clause 1. As the Minister heard, he raised the important point that 93 convictions have already been overturned, and there are hundreds of other people who just do not have the bandwidth to face the trauma of having to go through the legal process. It is imperative that the Government ensure that we get ahead of this issue and do not have to come back to the House to consider how we support that group of people who do not have the appropriate compensation programme in place. I encourage the Minister to consider the new clause seriously, and to work with us to ensure that we address the issues that that group of sub-postmasters face.
As my right hon. Friend pointed out, many of those sub-postmasters’ convictions were not built on sound evidence, and they were based on guilty pleas that they were advised to offer to reduce the sentences put before them for false reasons. As he also pointed out, we saw the spectre of the Post Office spending £100 million of public money—taxpayers’ money—to go after those sub-postmasters and cause the injustice that we are now trying to correct. It is therefore crucial that those who do not want to go through a legal process, because of the trauma they have faced, have the support of the Government in dealing with this issue separately through the Department’s work. My right hon. Friend is involved in that, working with the Minister, his officials and my party.
The new clause would ensure that the victims of all Horizon-related convictions that have not been quashed were entitled to compensation on the same basis, as has been pointed out. My right hon. Friend is not pressing the new clause to a vote, but I hope the Minister takes it seriously. I know that when he was on the Back Benches, he was a powerful campaigner on not only this issue but many others. As he is in a position of power, we look to him to make sure that the hundreds of others in this position are properly supported and protected, and that they do not face the double jeopardy of being victims without the compensation that the vast majority of them rightly deserve.
Kevin Hollinrake
I thank the right hon. Member for North Durham (Mr Jones) for his new clause on the eligibility of convicted claimants to access compensation. Eligibility for compensation currently depends on a conviction being overturned. Appeals against convictions in a magistrates court go to the Crown court, where a retrial of the original offence is held. When deciding whether to oppose an appeal in the Crown court, the prosecution must apply the relevant test in the code for Crown prosecutors. That test has two parts. First, the evidence must be such that there is a realistic prospect of conviction. In some cases, that test is met because a prosecution concludes that Horizon evidence was not essential to the case. In those cases, the prosecution must consider the second test, which is whether it is in the public interest to hold a retrial. Retrying someone for an offence allegedly committed years ago, for which they have already been punished, would be harsh. In such cases, the convictions are quashed on public interest, rather than on evidential grounds. Those cases differ from those where Horizon evidence was essential to the prosecution and an appeal is conceded by the Post Office.
In response to the right hon. Gentleman’s point about guilty pleas, there are cases where convictions have been made upon Horizon grounds where there were guilty pleas, but those have now been overturned. A guilty plea is not a barrier in itself. Notwithstanding that, it is open to claimants to submit a claim to the Post Office compensation scheme.
I recognise the concerns expressed by many about how the Post Office appears to have discharged its prosecutorial powers. Accordingly, we should remain open to considering any new evidence on liability in relation to these specific public interest cases. The right hon. Gentleman’s new clause refers to the payment of compensation to people with convictions. He is right to say that to date the courts have only overturned 93 cases, which is a small fraction of the more than 900 convictions prosecuted by Post Office and non-Post Office prosecutors during the time that Horizon was active that therefore could be unsafe.
I note that in addition to the work of the Criminal Cases Review Commission, the Post Office has adopted a more proactive approach to encouraging appeals by conducting a review of cases that have not yet been appealed. Independent counsel instructed by the Post Office will review cases to determine whether it already holds sufficient material to reach a view as to whether an individual’s case could be conceded, were an appeal to be brought. Where the Post Office identifies such cases, it will write to the postmaster to notify them that it would not oppose any future appeal based on the information it currently holds and to set out what to do next to initiate an appeal. I strongly share the advisory board’s desire to see more innocent postmasters receive compensation.
The right hon. Gentleman set out the letter that the advisory board recently sent to the Justice Secretary, and I completely understand the reluctance of postmasters to come forward to appeal their convictions. It must be very hard to trust authority when it is authority that has let them down for decades.
Some of the evidence given to the Williams inquiry about the way prosecutions were handled by Post Office is horrifying. There are obvious implications for the safety of prosecutions, and the way disclosures seem to have been handled meant that defence lawyers were inevitably fighting a losing battle. When a postmaster does get to the Court of Appeal, the onus is on them to show that their conviction is unsafe. I recognise all the difficulties that that burden of proof causes, especially with the passage of time leading to evidence being lost or destroyed. It does not seem right that these people face an uphill battle to clear their names.
Economic Crime and Corporate Transparency Bill
Debate between Rushanara Ali and Kevin HollinrakeWednesday 25th October 2023
(6 months, 2 weeks ago)
Commons ChamberRead Full debate Economic Crime and Corporate Transparency Act 2023 View all Economic Crime and Corporate Transparency Act 2023 Debates Read Hansard Text Read Debate Ministerial Extracts Amendment Paper: Commons Consideration of Lords Message as at 25 October 2023 - (25 Oct 2023)
Kevin Hollinrake
The hon. Gentleman raises a very important issue relating to the concerns about de-banking that we have across the economy. The Economic Secretary to the Treasury, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith) is looking at it, as is the Treasury. In future, it is our intention to ensure that when banks close accounts they give a valid reason why, rather than closing them summarily. He is absolutely right to raise the point and I am very happy to engage with him on it, because it affects businesses as well as community groups.
To conclude, I encourage everyone to agree with the Government’s position on these two areas. It is vital that we achieve Royal Assent without delay, so we can proceed to implement the important reforms in the Bill as quickly as possible.
Rushanara Ali (Bethnal Green and Bow) (Lab)
It is an honour to speak on the Bill again. I was hoping that we could conclude the proceedings on the Bill as soon as possible and it is disappointing that the Government are yet to make further compromises. The Bill is welcome in principle, but it should not have taken the war on Ukraine to prompt the Government into action. I am grateful to my right hon. Friends the Members for Barking (Dame Margaret Hodge) and for Birmingham, Hodge Hill (Liam Byrne), and to Members across the House for working together to improve the Bill.
Economic crime poses a threat to our country’s national security, our institutions, our economy, and causes serious harm to our citizens and wider society. Conservative estimates place the cost of economic crime at £290 million a year, according to the National Crime Agency, and the failure to stop criminals benefiting from the proceeds of their crime can fund further criminality. That can include offences such as funding organised crime groups, terrorist activity, drug dealing and people trafficking—this is a very serious issue.
Economic crime, as the Minister knows, has many victims. For too long, the Government have turned a blind eye to corrupt and dirty money, allowing Russian illicit finance to flood into Britain. That lets Putin’s cronies stash ill-gotten gains and even recycle the proceeds of crime into luxury properties. That is well documented and has been highlighted by many Members across the House, as well as in Select Committees. According to analysis by Transparency International, properties to the tune of £6.7 billion have been bought through suspicious wealth. Of those, almost a quarter in value were
“bought by Russians accused of corruption or links to the Kremlin.”
Most are held via secretive offshore companies. That drives up property prices for ordinary people in our country. More than two-thirds of English and Welsh properties held by foreign shell companies do not report their true owners. Research by the London School of Economics and Warwick University shows that the Register of Overseas Entities is not fully effective. For 71% of such properties, essential information about their beneficial owners remains missing or publicly inaccessible, despite the register. That means we still cannot know whether sanctioned individuals, money launderers or other corrupt individuals are benefiting from those properties.
We must not sustain economic growth off the back of dirty money. The Government have already delayed the Bill and these actions for too long. In that time, money has been lost, economic crime has become ingrained and the UK economy has once again lost out. Given that the nature and necessity of the Bill has already been discussed at length, I will focus on addressing the two amendments.
During the passage of the Bill, helpful alterations have been made to ensure that it is robust. The Lords amendments before us today seek to address two omissions. We are very disappointed that the Government are not willing to compromise and not willing to heed the wise and expert input of the Lords. That is deeply disappointing, because a great deal could be achieved if the Minister and his Government took note, including from hon. and learned Members on their own side.
Rushanara Ali
If the Minister is brief, rather than talking the Bill out like he did last time, I will give way.
Kevin Hollinrake
I will be very brief. On the question of compromise, the hon. Lady will have noticed that there was no “failure to prevent” offence when the legislation was first tabled, nor was there an identification doctrine. There has been significant compromise on the Government side. Our preference, clearly, is to move forward in that spirit of compromise. We have achieved a great deal with the Bill, which has moved from under 300 pages to 400 pages. I do not think it is right to say that the Government have not compromised.
The Economy
Debate between Rushanara Ali and Kevin Hollinrake(4 years, 6 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts