1. What steps she is taking with the Home Secretary to tackle the potential causes of recent trends in the level of reported sexual offences.
10. What steps she is taking with the Home Secretary to tackle the potential causes of recent trends in the level of reported sexual offences.
We know that rape and sexual offences are still too often hidden crimes and we want to see more victims having the confidence to report. We have seen a large increase in police-recorded sexual offences. There is some good news in that, because it is likely to reflect victims having additional confidence to come forward to report in the wake of some high-profile cases and the reopening of the night-time economy. We are committed to doing everything we can to prevent these crimes and bring perpetrators to justice. That is why we have outlined, through our rape review, a robust plan of action to drive improvement at every stage of the criminal justice system.
One in 75 women who report rape see their case come to a conclusion and a conviction. What does the Minister say to women who say, “I haven’t had my case properly investigated, I haven’t had my day in court and the police are telling me there will be no further action—why don’t I just get my brothers and cousins to go round and sort him out?”? What does she say to people who are so desperate that they take the law into their own hands?
I would never condone people taking the law into their own hands, and I am sure that the hon. Member agrees. However, we are aware that there are issues across the whole criminal justice system. On the Crown Prosecution Service and court system, we have opened ourselves up to transparency and our partners in the police forces and the CPS have said that they need to do more. To improve the rate of rape prosecutions, we have set ambitious asks of all our partners across the criminal justice system, and I will continue pushing that.
Labour Members believe it is time for judges to be able to hand out enhanced sentences and increased punishments for all crimes that are committed on the basis of prejudice against women, so why are the Government seeking to overturn our call to make misogyny a hate crime?
I have had a number of questions on this topic this morning. The Government are considering the Law Commission’s proposals on this issue. That is sensible and right. I am sure that all hon. Members would agree that there is no point in our putting measures on the statute book that would have a harmful effect on prosecutions, but that is exactly what the Law Commission’s legal experts have suggested would happen. We are therefore not minded to make misogyny a hate crime, because that is not the way to tackle these systemic issues. We are determined to deal with violence against women and girls, but I am afraid that that is not the way to do it.
I call the Chair of the Women and Equalities Committee, Caroline Nokes.
Public sexual harassment is a gateway crime to some of the more serious sexual offences highlighted by my hon. Friend. She may not agree that misogyny should be a hate crime, but does she agree with the Law Commission that public sexual harassment should be a specific crime? Please can we see action to have it legislated for quickly rather than pushed into the long grass?
My right hon. Friend is right that the Home Office is looking carefully at whether there should be additional offences. I draw her attention to the fact that a number of measures are already on the statute book. I encourage women and girls to come forward; in fact, we are producing and creating a high-profile national communications campaign across TV and all our broadcast systems to encourage exactly that. We want to stamp it out and for perpetrators to be tackled.
Women and girls who are victims of human trafficking suffer the most appalling sexual offences, yet in 2020 there were only 13 convictions for human trafficking. Today, I have published my private Member’s Bill—the Human Trafficking (Sentencing) Bill—which would require the Government to review the situation to ensure that more victims see the perpetrators behind bars. Given what the Minister has said, will she assure me that the Government will support my Bill on Friday?
I thank my hon. Friend for his consistent advocacy for the victims of some of these most appalling crimes. He and I have spoken in detail about the measures that the Government are already taking to protect women and girls. Through our modern slavery legislation, they are at the centre of our protective measures. We will put our arms around them. We are already supporting them through the national referral mechanism, and we should be proud of that work. We are leading the world in our support for victims of trafficking.
The Minister’s awareness of problems with tackling sexual crimes is not good enough. We need action. Recording misogyny as a hate crime helps to “seek justice and get support for victims”. It helps to “build a picture of intelligence which informs policing plans,” and it sends “a powerful message that this behaviour is not acceptable and there will be consequences.” Those are direct quotes from officers in the North Yorkshire police and Nottinghamshire’s chief constable. Can the Minister explain why the Government seem to disagree and are planning to overturn Labour’s amendment to make misogyny a hate crime?
I am afraid the hon. Lady was not listening to the response I gave earlier. I was very clear that we do not seek, as responsible legislators, to put measures on the statute book that have a harmful effect. The experts at the Law Commission—[Interruption.] I wonder why she is shaking her head. I advise her to read its report in detail, which is clear that the Labour amendment she champions would make it harder for us to prosecute sexual offenders and rapists. We on the Government Benches would not like to see that taking place.
I have been listening: I have been listening to police forces, to their officers and to victims. That is why we support the amendment Next week marks a year since Sarah Everard’s kidnap and murder. That appalling case should have spurred action to tackle the epidemic of violence against women. Instead, sexual offences and rape have hit record highs, while prosecutions have fallen to record lows. We must treat this violence as seriously as we treat terrorism and organised crime. Will the Government make violence against women and girls a strategic policing requirement?
I think there is a lot of agreement across the House, despite the tone with which the hon. Lady has spoken to me. Violence against women and girls and dealing with rape prosecutions is a priority, which is why we have allocated record sums to tackle those horrendous crimes. The measures she mentions are something we are looking at and we will come forward with more information shortly.
2. If she will take steps with Cabinet colleagues to de-medicalise the process of obtaining a gender recognition certificate. [R]
The Government are clear that we want transgender people to be able to live their lives as they wish. The previous Government consulted on the Gender Recognition Act 2004. Having listened to the full range of views expressed, we concluded that the balance currently struck in the legislation is correct. We therefore do not intend to change the requirements of the Act.
On Monday, the Minister for Equalities, the hon. Member for Finchley and Golders Green (Mike Freer) said the Government would remove the rule whereby a trans person’s spouse has to consent to their gaining a gender recognition certificate. Yesterday, that had changed to helping to avoid spousal consent issues. Can the Minister categorically confirm today that the Government will remove that veto power altogether?
Yes, I did use the shorthand of spousal veto, which I know lawyers say does not exist. The no-fault divorce legislation about to be enacted will remove that effect that people are being asked to have removed. That is the advice I have received. If the hon. Lady says that the advice is wrong I will double-check it, but the advice I have received is that the new Act will remove that obstacle to divorce.
3. What steps the Government are taking to improve social mobility.
9. What steps the Government are taking to improve social mobility.
The Government believe the circumstances of one’s birth should not determine life outcomes. As part of our plan to increase opportunity, we recently published the levelling-up White Paper to address regional disparities, which is one of the key drivers of social mobility across the UK.
In the civil service’s most recent diversity data, there is data on all the protected characteristics but nothing on social background, which has historically been a problem in the civil service, particularly at senior levels. Will my hon. Friend look at that so that we know whether the civil service is open to all backgrounds and is making its own contribution to social mobility?
Social background is not a protected characteristic in the Equality Act 2010, but the civil service did begin implementing socio-economic background measures for its workforce in 2018. Many Departments collect that data, but declaration rates have not yet reached a sufficient threshold for publication. However, I understand that the Cabinet Office is working with Departments to increase declaration rates to enable publication in next year’s civil service statistics publication.
On a visit to Holy Family School in Keighley earlier this month, I was able to share the fantastic news that my constituency will become one of the Government’s key education investment areas. What role will my hon. Friend’s Department play to ensure that increasing social mobility is at the heart of plans, alongside the levelling-up White Paper, to transform the life chances of young people across Keighley?
I am delighted that my hon. Friend’s constituency will benefit from the Government’s education investment areas and will invest in areas where educational attainment is weakest. Important initiatives such as that will help us to spread opportunity and level up the country. Equality has an important role to play and my officials are working closely with Departments to encourage focused and evidence-based action.
On social mobility, does the Minister appreciate that some are concerned about the proposals that would mean that people would not have access to funding for tuition fees unless they meet certain grades at GCSE and A-level? Will that not impact more heavily on poorer families?
I thank the right hon. Lady for her question. The Department for Education will have done an equalities impact assessment on any new policies that it will announce. Those will be taken into account to make sure that people who are most at risk and most vulnerable are not prevented from taking up education in any way.
Children from poorer backgrounds are four times more likely to suffer a serious brain injury by their fifth birthday and again in their teenage years than children from wealthier backgrounds. That obviously limits their opportunities in life. What will the Government do about that?
I am afraid that I do not have an answer specifically on what we are doing on brain injuries, but I will get the relevant Minister to write to the hon. Member and provide the appropriate information.
That was a bit of a stretch, in fairness.
4. What plans she has with the Home Secretary to bring forward legislative proposals to make misogyny a hate crime.
6. What plans she has with the Home Secretary to bring forward legislative proposals to make misogyny a hate crime.
As I said, the Government currently have no plans to make misogyny a hate crime. The reason is that we have consulted the legal experts on that subject. The Law Commission concluded that the proposal could do more harm than good in our efforts to tackle violence against women and girls, and I am sure that the hon. Lady would not wish to see that happen.
I thank the Minister for that, but the reality is that more than 80% of 18 to 24-year-olds have already experienced sexual harassment in a public place. If the Government were to legislate, it would allow the police to act. Does she not agree that, more importantly, it would also send a message out to people across this country that misogyny, sexual harassment and bullying based on gender is unacceptable in every sector of life?
No, I do not agree, and that is not what the Law Commission said. It said that that would be actively unhelpful and harmful to our efforts to tackle exactly the issues that the hon. Lady mentioned. I am afraid that I am at risk of repeating myself: we want to bring these perpetrators to justice and we are tackling this issue at the source. Making misogyny a hate crime would make it more difficult to prosecute all forms of hate crime, including those related to race and ethnicity.
I fear that I am going to ask the Minister to repeat herself, because the Government’s response to persistent violence against women and girls has been to support the Path Community app, which asks women to protect themselves by sharing journeys home, and to launch StreetSafe, which asks women to report where they feel unsafe. That yet again puts the onus on women when they are not the problem. Last year, a study of sexual aggression in UK male university students found a correlation between misogynistic views and a proclivity for sexual violence against women. What message does it send that the Government’s response to persistent violence against women is, “There’s an app for that.”? I urge the Minister, please, to tackle the root cause and work with the Home Office to make misogyny a hate crime.
I refer to my previous remarks.
5. What steps the Government are taking to support women in the workplace.
To support women in the workplace, the Department for Business, Energy and Industrial Strategy will extend redundancy protections after return from maternity leave and introduce neonatal leave and pay and one week of unpaid carer’s leave. It has also recently consulted on measures to increase the availability of flexible working, and it looks forward to publishing its response to that in due course.
We know that women face particular challenges in, for example, caring responsibilities and making progress in paid work, but rather than addressing that problem, the Government’s Way to Work scheme will pressure people to take any job quickly rather than helping them to obtain good, sustainable jobs that they are qualified for. What discussions has the Minister had with colleagues at the Department for Work and Pensions about supporting women into good-quality, well-paid jobs and not just the first thing that turns up?
I am afraid that I disagree with the hon. Gentleman. As I have just heard from the Minister responsible—the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies)—individual circumstances are taken into account and we are doing the very best we can for women in the workplace.
I call the SNP spokesperson.
Maternity Action has recently highlighted that “over the past decade the value of the basic rate of maternity, paternity and parental pay has also declined relative to women’s median weekly earnings, from 42% in 2012, to just 37% from April this year.” Of course, new parents now also face a Tory cost of living crisis. There is overwhelming evidence for the value of supporting the youngest members of our society and the families who care for them, so will the Minister urge her colleagues to match reality to the rhetoric, introduce the long-awaited employment Bill and take the steps necessary to support parental leave and pay to better support new parents?
The Government take the issue very seriously; I know that my colleagues in the Department for Business, Energy and Industrial Strategy are working very hard on it. I expect that we will hear very much more on the matter shortly.
12. The Equality and Human Rights Commission has an important role to play in supporting women in the workplace through its statutory duty to enforce the Equality Act 2010. What support are the Government giving the EHRC as it faces attacks from those who seek to undermine its independence?
I thank my hon. Friend for that really important question. I have to say that I have been shocked by the really disgusting remarks that have been levelled at the chair of the Equality and Human Rights Commission in particular. It is a disgrace that people are attacking the body that is supposed to be furthering equality in this country. No good can come of that I am sure that colleagues across the House share my desire for more people from minorities to take part in public life. That is one goal that we all share, but it is in jeopardy when the EHRC chair, an experienced parliamentarian from an ethnic and religious minority, can be subjected to vile, horrific personal abuse simply for encouraging others to comply with equality law. We support her. It is not healthy for our democracy for online smears and falsehoods, especially the ones that have been put forward by Vice News, repeated by those in the mainstream media who should know better, and deliberately designed to undermine public confidence in the independent regulator responsible—
Order.
7. If she will take steps with Cabinet colleagues to ratify ILO convention 190 on violence and harassment in the world of work.
The Government have made clear our intention to ratify International Labour Organisation convention 190 on violence and harassment. I am pleased to confirm that the Secretary of State for Work and Pensions plans to deposit the signed instrument of ratification at the ILO in Geneva shortly.
Ratifying ILO convention 190 on workplace violence and harassment is a key demand of the new “Get me home safely” campaign led by Unite the union. It is also meant to be a key priority for this Government, but the Minister has simply said that there will be moves to sign the convention. There have been many, many promises. What on earth is happening? Is there a seeming reluctance to accept ILO convention 190? Will the Minister get on and make sure that it is signed? There has been a huge increase in violence against women, particularly in the workplace.
The UK already has the necessary legislation in place to implement the convention. We will be required to report on compliance to the ILO in due course. The visit to deposit the ratification has been delayed as a result of covid-19 and the omicron variant; we will achieve it at the soonest possible date.
T1. If she will make a statement on her departmental responsibilities.
The appointment of Katharine Birbalsingh as chair of the Social Mobility Commission has been a welcome boost to the agenda. I would like to inform the House that she has begun the recruitment process for new social mobility commissioners to support her in delivering change. I look forward to meeting the new board when the process is complete. Its work will be critical to helping the Government to deliver our levelling-up agenda.
Under new rules introduced last month, out-of-work universal credit claimants have just four weeks to find work; the previous limit was three months. Given that women are more likely than men to claim universal credit, as Welsh charity Chwarae Teg has highlighted, will the Minister confirm what consideration, if any, was given to how women would be affected? Has a full equalities impact assessment been carried out?
I am reassured by one of my colleagues that that is not the case. Individual circumstances are taken into account. I am sure that if the hon. Lady writes to us, we shall be able to provide more details in order to correct the record.
T2.   As the Minister will know, a hate crime occurs when a crime is committed and is aggravated by the victim’s protected characteristic, yet in recent weeks we have seen the existence of a statue described as a hate crime, along with the sale of Midget Gems in a supermarket. Neither is a crime, let alone a hate crime. Does the Minister agree that trivialising such incidents and misrepresenting hate crime will make victims of disability hate crime less likely to report those crimes?
I fully agree with my hon. Friend and would encourage all of us to choose our words wisely. It is important to remember that hate crime is a devastating and often violent crime, requiring evidence to be presented in court and proved to a criminal standard. I would encourage victims always to report such crimes.
Black, Asian and ethnic minority women face overwhelming health inequalities in our country, as has been revealed by the recent NHS Race & Health Observatory report. The Government promised us a comprehensive women’s health strategy by the end of 2021, and they have broken that promise. Instead, we have had a vague vision document, and now a taskforce to increase understanding of the problem, but no concrete steps to solve it. The Conservatives have had 12 years in which to act. When are they going to do so?
I am afraid it is not the case that nothing has been done. I have been working very closely with Ministers across Departments, looking at the very issues the hon. Lady has raised. We did launch a women’s health strategy in December, and more will be coming. She may not have noticed this, but on 23 December the Government published “Our Vision for the Women’s Health Strategy for England”, and there is far more detail to come. These are not issues on which we ever stop working, and I hope to be able to work with Members across the House to deliver on the strategy.
T5. I have a tragic case in my constituency. A 14-year-old girl was a victim of rape, and now her attacker has been allowed to live 120 metres away from her, causing her and her family intolerable distress. Will the Minister meet me to discuss the case, and will she work with me to ensure that victims can live safe in the knowledge that their abusers will never be allowed to live near them again, and that judges will prioritise the rights of victims over their attackers?
I am of course appalled to hear of that tragic case, and either I or a Minister from the Ministry of Justice will be happy to meet my right hon. Friend. It is vital that we protect the public, particularly from sex offenders, which is why offenders on licence are subject to a number of conditions, including where they live and work.
T3. We know that hate crime is often intersectional, especially in diverse constituencies such as mine. Many victims have more than one identity: they may be black, and they may also be LGBT women. However, the current legislation does not allow multiple characteristics to be recorded, so often the data lacks accuracy and depth. Will Ministers please work with us to address this, so that we can build a real picture of the people who are being targeted by hate crime?
The hon. Lady raises a very interesting and important point. My right hon. Friend the Minister for Women and Equalities and I will work on this, and see what more we can do to address that specific issue.
T7. Shared parental leave was a brilliant idea, introduced by a Conservative Government, but there is one type of new parent who receives almost no support: the kinship carer of a baby. What can my hon. Friend do to ensure equality for all types of parenting?
The Government value the vital role that kinship carers play. Eligible kinship carers who adopt are entitled to adoption leave and pay, and employed kinship carers may also be eligible for other leave entitlements to balance work with caring, including emergency leave, the right to request flexible working, and unpaid parental leave. However, we will continue to look at this issue.
T4. I want to share the words of one of my constituents with the House:“I am emailing you because of the unfairness of people on legacy benefits who did not receive the extra £20 a week support because of Covid… This is discrimination of Disabled people which I am one of… I could not leave my home for nearly eighteen months because of Covid, this money would have helped with heating costs.”This month, Kamran Mallick, CEO of Disability Rights UK, said:“With rising energy bills, increasing inflation and benefits pegged at a horrendously low level, millions of Disabled people are living in conditions comparable to the nineteenth century work house.”Can the Minister let me know—
Order. Sorry. I call the Minister.
In relation to the challenge in the High Court to the Government’s decision not to extend the universal credit uplift to those on legacy benefits during the pandemic, Mr Justice Swift said: “My conclusion is that the difference in treatment…resulting from the 2020 Regulations was justified” I would ask the hon. Gentleman’s constituent to please use the benefits calculator on gov.uk and to talk to his work coach in case there is any support locally that he is missing out on.
Four in 10 young women in this country have received an unsolicited naked image of a man’s genitals. This sort of abuse has absolutely no place in our society. Will my hon. Friend please ensure that this is made a sex offence in the online safety Bill?
I thank my right hon. Friend for her consistent campaigning against this disgusting form of abuse against women and girls. I can do no more than refer to my right hon. Friend the Prime Minister, who is sitting behind me and who has himself committed to introducing cyber-flashing as an offence as soon as possible.
Before we come to Prime Minister’s questions, I would like to point out that the British Sign Language interpretation of proceedings is available to watch on parliamentlive.tv.
1. If he will list his official engagements for Wednesday 23 February.
I can announce to the House that in the light of the increasingly threatening behaviour from Russia, and in line with our previous support, the UK will shortly be providing a further package of military support to Ukraine. This will include lethal aid in the form of defensive weapons and non-lethal aid I am sure that the whole House will want to join me in congratulating Team GB’s curling teams for winning gold and silver medals at the winter Olympics I know that Members across the House will want to offer condolences to the family and friends of our former colleague Sir Richard Shepherd, who sadly died earlier this week. He served as the MP for Aldridge-Brownhills for 36 years This morning I had meetings with ministerial colleagues and others. In addition to my duties in this House, I shall have further such meetings later today.
By 2027, Didcot in my constituency will be 42% larger than it was a decade earlier; Wantage and Grove will be 59% larger. There are thousands more houses going up in Wallingford, Faringdon and all the villages I represent, but not a single new GP surgery. Does my right hon. Friend agree that where we build new houses, we have to build new infrastructure so that people can still access the services they need?
Yes, of course my hon. Friend is right. That is why we are making record investments in the NHS and in schools and roads—as we can, thanks to the strong growth in our economy. I will make sure that he gets a meeting with the relevant Minister to discuss his immediate local concerns.
I join the Prime Minister in his comments in relation to Sir Richard Shepherd. We all want to deter aggression in Europe. We are not dealing with breakaway republics, and Putin is not a peacekeeper; a sovereign nation has been invaded. The Prime Minister promised that in the event of an invasion, he would unleash a full package of sanctions. If not now, then when?
As I said, the UK has been out in front in offering military support to Ukraine, and I am grateful for what the right hon. and learned Gentleman said yesterday about the need to make sure we keep ammunition in reserve for what could be a protracted struggle over this issue Let the House be in no doubt about the extent of the package set out yesterday and about what we are already doing, because I do not think people quite realise that the UK is out in front. We have sanctioned 275 individuals already, and yesterday we announced measures that place banks worth £37 billion under sanctions, in addition to more oligarchs. There is more to come. We will be stopping Russia raising sovereign debt, and we will be stopping Russian companies raising money or, as I said yesterday, even clearing in sterling and dollars on international markets That will hit Putin where it hurts, but it is vital that, after this first barrage, we work in lockstep with friends and allies around the world to squeeze him simultaneously in London, Paris and New York. Unity is absolutely vital.
I hear what the Prime Minister says about sequencing and further sanctions, but there has already been an invasion. There is clearly concern across the House that his strategy could—unintentionally, I accept—send the wrong message. If the Prime Minister were now to bring forward his full package of sanctions, including excluding Russia from financial mechanisms such as SWIFT and a ban on trading in Russian sovereign debt, he will have the full support of the House. Will he do so?
I am grateful for the general support that the Opposition have given not just to our economic sanctions but to the package of military support, which will intensify. We want to see de-escalation by Vladimir Putin. There is still hope that he will see sense, but we are ready to escalate our sanctions very rapidly, as I have set out Under the measures that this House has already approved, we can now target any Russian entity or individual. Not only can we already target the so-called breakaway republics in the oblasts of Donetsk and Luhansk but we can target members of the Duma who voted to recognise them. This is the most far-reaching legislation of its kind, and I am glad that it has the right hon. and learned Gentleman’s support.
It does have my support, and we will support it if it is used. We must also do more to defeat Putin’s campaign of lies and disinformation. Russia Today is his personal propaganda tool. I can see no reason why it should be allowed to continue broadcasting in this country, so will the Prime Minister now ask Ofcom to review its licence?
I believe my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport has already asked Ofcom to review that matter, but we live in a democracy and a country that believes in free speech. I think it is important that we leave it to Ofcom to decide which media organisations to ban, rather than politicians—that is what Russia does.
The request was for a review, and I am glad to hear that the review is now happening. [Interruption.] I will not be deflected from the unity that this House needs at the moment At the weekend, the Prime Minister said that if Russia invades Ukraine, he will “open up the matryoshka dolls” of Russian-owned companies and Russian-owned entities to find the ultimate beneficiaries within. Well, Russia has invaded and it is time to act. If he brings forward the required legislation to do this, he will have Labour’s support. Will he commit to doing so in the coming days?
As I said, we are bringing forward in the next wave of sanctions measures that will stop all Russian banks, all oligarchs, all Russian individuals raising money on London markets. We are also accelerating the economic crime Bill, which will enable us in the UK to peel back the—[Interruption.] In the next Session. It will enable us to peel back the façade of beneficial ownership of property in the UK and of companies. It has gone on for far too long and this Government are going to tackle it. But on all these measures it is very important that the House remembers that they are more effective when all financial centres move forward together, and that is what the UK has been organising.
I think I heard the Prime Minister say that the economic crime Bill will be in the next Session, but I hope I misheard that. I can assure him that if he brings it forward in this Session, in the coming days, it will have our support. There is no reason to delay this Let me turn to the Elections Bill. As it stands, the Bill would allow unfettered donations from overseas to be made to UK political parties from shell companies and individuals with no connections to the UK. Labour has proposed amendments that would protect our democracy from the flood of foreign money drowning our politics. We can all now see how serious this is, so will the Prime Minister now change course and support these measures in the House of Lords?
We have very tough laws—tough rules—in this country to stop foreign donations. We do not accept foreign donations; people have to be on the UK electoral register in order to give to a UK political party. Before the right hon. and learned Gentleman starts chucking it around, I just remind him that the largest single corporate donation to the Labour party came from a member of the Chinese communist party. [Interruption.]
No, Mr Speaker, at this moment, as the House agreed yesterday, we have to stand united, and I am not going to be deflected from that. I note that the Prime Minister did not agree to change the Elections Bill. I think that is a mistake, and I ask him to take it away and look at those amendments in the Lords again. Putin has invaded a sovereign European nation. He has attacked because he fears openness and democracy, and because he knows that, given a choice, people will not choose to live under erratic, violent rule. He seeks division, so we must stay united. He hopes for inaction, so we must take a stand. He believes that we are too corrupted to do the right thing, so we must prove him wrong, and I believe we can. So will the Prime Minister work across the House to ensure that this is the end of the era of oligarch impunity by saying that this House and this country will no longer be homes for their loot?
I do not think any Government could conceivably be doing more to root out corrupt Russian money, and that is what we are going to do. We can be proud of what we have already done and the measures we have set out. I am genuinely grateful for the tone of the right hon. and learned Gentleman’s last question and for the support he has given. He is right to say that it is absolutely vital that we in the UK should stand united. People around the world can see that the UK was the first to call out what President Putin was doing in Ukraine. We have been instrumental in bringing the western world together in lockstep to deal with the problem—to bring together the economic package of sanctions that I have set out As I have said, there is still time for President Putin to de-escalate, but we must be in absolutely no doubt that what is at stake is not just the democracy of Ukraine, but the principle of democracy around the world. That is why the unity of this House is so important today. It is absolutely vital that the United Kingdom stands together against aggression in Ukraine, and I am grateful for the broad support that we have had today from the Leader of the Opposition.
2.   Following last week’s Q&A at the Shepley Village Association, and after receiving a huge number of complaints from constituents, it is clear to me that speeding is a major problem not just in Shepley, but across all parts of Dewsbury, Mirfield, Kirkburton and Denby Dale. Does my right hon. Friend agree that rather than action being taken after people have been killed or seriously injured in collisions, prevention is better than cure and the Department for Transport circular 2007 needs a long overdue review?
Yes. As a cyclist, I share my hon. Friend’s passion on this issue. We do need to crack down on speeding, which plays a role in excessive deaths on our roads. The Department for Transport is updating the circular on the use of speed and red-light cameras that my hon. Friend mentioned and I urge him to get in touch with my right hon. Friend the Secretary of State for Transport.
Yesterday, we on the SNP Benches made it clear that the SNP stands united against the Russian invasion of Ukraine, which needs to be met with tougher and stronger sanctions. As the Chair of the Foreign Affairs Committee, the hon. Member for Tonbridge and Malling (Tom Tugendhat) rightly said, however, we should not be waiting for Russia to attack others before we clean up the corruption that Russian money has been fuelling in the UK Under the Tories, a sewer of dirty Russian money has been allowed to run through London for years. In 2017, I went to the Prime Minister when he was Foreign Secretary and raised the issue of limited partnerships, of which 113 have been used to move $20.8 billion out of Russian banks—corruption on an industrial scale. Why did the Prime Minister do nothing back then, and why is he still doing nothing now?
The right hon. Gentleman was right to come to me then—I have always enjoyed talking to him, as I have told him many times—and he is right on the issue. We do need to stop corrupt Russian money in London and every other financial capital. That is why we have already taken the steps we have taken, but we are going much further to uncloak the true owners of Russian companies and Russian properties in this country, and it is high time. No country is doing more than the UK to tackle this issue.
That meeting was five years ago, and I offered to work with the Prime Minister. Five years ago, and nothing has happened. The truth is that Russian oligarchs who give the right people in power a golden handshake have been welcomed into London for years. Their activities were not stopped; they were encouraged. Plenty of those golden handshakes just so happened to find their way into the coffers of the Conservative party—in fact, £2.3 million since the Prime Minister took office. A leading American think-tank has publicly raised concerns that “the close ties between Russian money and the United Kingdom’s ruling conservative party” are a block to stronger sanctions. How can our allies trust this Prime Minister to clean up dirty Russian money in the UK when he will not even clean up his own political party? Will he finally commit to giving up the £2.3 million that his party has raised from Russian oligarchs?
I just think it is very important for the House to understand that we do not raise money from Russian oligarchs. People who give money to this—[Interruption.] We raise money from people who are registered to vote on the UK register of interests. That is how we do it. The right hon. Gentleman’s indignation is, I am afraid, a bit much coming from somebody whose very own Alex Salmond is a leading presenter, as far as I know, on Russia Today, which the Leader of the Opposition has just called on this country to ban.
4. The River Wye, pollution, flooding, house building and the wider environment are all important to my right hon. Friend, so will he meet me to discuss the future of the Environment Agency?
I am always happy to meet my hon. Friend—and I congratulate him on his recent elevation—but I must say that the Environment Agency faces many challenges and does an outstanding job of building flood defences. Some 314,000 homes are better protected since 2015 and we continue to invest massively to help them. I am always happy to meet my hon. Friend.
Yesterday, when I asked the Prime Minister about Russian meddling in UK elections, he looked very shifty before claiming that he was not aware of any. Yet, when he was—[Interruption.] Yet, when he was Foreign Secretary in 2017, he appeared at a joint press conference with the Russian Foreign Minister. When Lavrov claimed that there was no evidence that Russia had interfered in UK elections in any way, the now Prime Minister corrected him by saying that there was no evidence of “successful” interference. Can the Prime Minister tell us what evidence he has seen of unsuccessful interference? Has he actually read the Russia report, which is very clear that there is credible evidence of interference? [Interruption.] Given that, as his Defence Secretary said earlier this week, information is as powerful as any tank, can he explain why he is turning a blind eye to allegations of Russian disruption—
Order. I hope that you are coming to the end of your question. I do need to move on.
Mr Speaker, I could be a lot faster if I were not being barracked by Conservative Members.
The challenge is to get those on the Front Bench moving quickly. We want to get speed into this, so I am sure that she is ending now.
Given that, as his Defence Secretary said earlier this week, information is as powerful as any tank, can he explain why he is turning a blind eye to allegations of Russian disruption? Why is he playing fast and loose with our national security—
Order. I call the Prime Minister.
I repeat what I told the hon. Lady ages ago—if I have got her right. I have seen absolutely no evidence of successful Russian interference in any electoral event.
7. I welcome the steps that the Government are taking this year to help hard-working families in Orpington with their energy bills. The majority of people receive at least £350 of support. Can my right hon. Friend confirm that even those not eligible for the council tax rebate will still receive additional support thanks to discretionary funding set aside for local authorities?
My hon. Friend is absolutely right. I can tell him that the people of Orpington and elsewhere will receive support if they do not qualify for the council tax rebate from the £144 million fund that he rightly mentions.
5. How does the Prime Minister think it looks, when we are in a cost of living crisis, with our constituents struggling to put food on the table or coats on their kids’ backs, and members of his Cabinet are throwing their toys out of the pram because they want to eat foie gras and wear fur?
We are tackling the cost of living crisis, which is caused by a global inflation spike, with everything that we can. I thank my right hon. Friend the Chancellor in particular for what he is doing to abate the costs of energy—lifting the living wage by the biggest ever amount and helping people on universal credit. The single best thing that we have done on the cost of living is making sure that we have millions more people into work. There are 430,000 more in employment now than there were before the pandemic began. That is how we are tackling the cost of living, and we will get on with it.
8. Last month, I held a careers fair at the Woodlands Campus of Solihull College, which trains apprentices for the automotive, construction and aviation industry. These apprentices are talented and hard-working, which is why Flybe has chosen Birmingham Airport in my constituency as its national headquarters. Will the Prime Minister take up my invitation to visit Solihull College and meet these wonderful apprentices and then also visit Birmingham Airport to see how the aviation industry is recovering from the pandemic?
I am only too happy—thrilled—to visit my hon. Friend in Meriden at any time.
6. The right hon. Member for Sherwood (Mark Spencer) is currently under investigation for Islamophobia, following accusations that he told a fellow MP that her being a Muslim was making colleagues uncomfortable. How did the Government punish this behaviour? With a promotion that puts the accused Member in charge of the complaints procedure. Of course, we all know that the Prime Minister himself is no stranger to derogatory remarks about Muslim women, so let me ask the Prime Minister—
Order. This is not the appropriate place to be raising that. We now go to Nickie Aiken.
10.   I have just come from a meeting with the London Pedicabs Operators Association, Transport for London and the Department for Transport, where sadly my hon. Friend the Member for Christchurch (Sir Christopher Chope) confirmed that on Friday he will be objecting once again to my Pedicabs (London) Bill, which means it will fall. Does my right hon. Friend the Prime Minister agree that it is time we legislated for pedicabs, to ensure that they are safe for women and girls to use, that we rid ourselves of the dodgy fares and that the noise they create is regulated? Will he work with me to legislate for and to regulate pedicabs once and for all?
When I was Mayor of London I always yearned to be in a position to put that through Parliament, and now I am. I am very grateful to my hon. Friend and we will ensure we give parliamentary time to make it possible. It will be a boon for cyclists and a boon for taxi drivers, and it is high time we did it.
9. We have a humanitarian crisis of food poverty in all the constituencies represented in this House. We have more food banks than branches of McDonald’s, and people face starving or freezing in their homes at this very moment because of the horrific cost of living crisis and because of political choices made by this Government. In 2015, the Government signed up to delivering the 2030 sustainable development goals domestically, including ending hunger. Can the Prime Minister tell me who, and what Department, is responsible for delivering the goal of ending hunger domestically, and can he send me a copy of the plan to deliver it?
The whole of Government is engaged in that campaign. To that end, we have expanded free school meals for five to seven-year-olds, which helps 1.3 million children, we have boosted the Healthy Start vouchers by one third and, of course, the holiday food and activities programme continues to run, with a £200 million fund. The best thing we can do as a country and a society, however, is keep going with our plan for economic growth with higher-wage, higher-skilled jobs putting bread on the table of families up and down this country.
12. Liberty Speciality Steels is an important steelworks in my Stocksbridge constituency, which produces high-quality steel and has provided high-value jobs for generations. Sadly, following the collapse of Greensill Capital, the parent company Liberty Steel has faced financial uncertainty for some time, threatening the business and thousands of jobs. Does my right hon. Friend agree that the steel industry sits at the heart of our levelling-up agenda, and will he commit to looking at all options to support the business through this period of uncertainty, as the Government have done so effectively for Sheffield Forgemasters and British Steel?
I thank my hon. Friend for everything she does to champion steel. She is right that it is of strategic importance for our country; we must look at ways we can help the steel industry to have access to cheaper, low-carbon energy, and this Government will do everything we can to ensure that that happens. So far we have provided over £600 million since 2013 to help with the cost of energy and put in a £350 million industrial energy transformation fund, but I stress to the House that that alone will not be enough. As we transition to a low-carbon future, hydrocarbons must also have their place.
11. Unpaid family carers are treated appallingly by this Government. I am not talking about paid care staff in care homes, but about people who provide care, unpaid, for family members. While food and energy costs skyrocket, carer’s allowance is increasing in April by only £2 to a miserly £69 a week. That insulting amount will be more than swallowed up by the £2.50 cost of a single lateral flow test so that carers can keep the person they care for safe. How can the Prime Minister justify this tax on caring?
I think that the whole House understands the pressures on carers and the immense amount that they contribute to our society. We are doing our best to support people throughout our country. I think the House also understands that we cannot indefinitely support universal free testing. We are uprating the carers allowance, and of course carers are also entitled to the increases that we are putting through in universal credit.
14. Can I follow up my right hon. Friend’s statement on Monday on removing the covid restrictions? I welcome the further support for the immunosuppressed. Will he ensure that the NHS reviews the system for identifying the most vulnerable, as I think that some who are at risk are in danger of being missed—for example, those with blood cancers—and will he then ensure that the relevant testing and antiviral drugs will be readily available, alongside boosters, for the immunosuppressed but also for their carers?
My hon. Friend makes a very important point about the immunosuppressed and the need to identify them correctly. We currently think that there are 1.3 million. Yes, of course they will have access not only to testing but to vaccines and boosters, as well as priority access for new therapeutics and antivirals.
13. Last October, a promising young footballer in my constituency called Kamran Khalid, a former winner of Chelsea FC’s Asian Star scheme who had played for the famous Senrab FC in Wanstead, was on his way home to see his mum after finishing at the gym, and he was stabbed 24 times—murdered just yards from his front door. One of the alleged perpetrators was as young as 15. I hope that the Prime Minister would agree with me that far more needs to be done to stamp out the scourge of knife crime, including addressing the underlying causes. Will he agree to meet me and Kamran’s mother Samina, who has said that losing her 18-year-old son has “left a void in her heart forever”,to discuss what more can be done to make our streets safer and ensure that other families do not ever have to suffer this heartbreaking loss?
I totally share the hon. Gentleman’s feelings about his constituents and the tragic loss in the family concerned. We must crack down more on knife crime. That is one of the reasons we are putting more police out on the streets. It is also why we are rounding up the county lines drugs gangs, who play a big part in this, sadly. We have done 2,000 so far and there is more to do. That is why we are recruiting many more police and giving them the powers they need to come down hard on those gangs.
15. The Government’s commitment to £25 million for a new electric bus fleet in Warrington will have a transformational effect on public transport across Warrington. Does the Prime Minister agree that the right way to spend that £25 million is by buying British-made buses, supporting highly skilled manufacturing jobs right across the United Kingdom?
Yes, I thank my hon. Friend, who is a great champion for Warrington. Warrington has secured £20 million for new zero-emission buses. I am delighted to say—this is a statistic that I can barely believe but it is here in my brief—that 80% of buses in Britain’s urban areas are already produced domestically, which is a fantastic thing. We all want to see more of that, and I hope that Warrington will consider excellent UK bus manufacturers when it comes to its next contract.
Yesterday the Prime Minister told me that we can sanction Duma members through the Government’s new sanctions package. The Minister for Europe and North America, the right hon. Member for Braintree (James Cleverly), told the House that we can sanction Duma members not through the new regime but as an extension of pre-existing sanction rules. Yet this morning the Foreign Secretary said that the legislation for sanctions against Duma members will take weeks to be made legally watertight. So, Prime Minister, who is right? How can we say that we are standing strong against Russian aggression when our sanctions response is such a muddle and such a mess?
The whole House would agree, I hope, that it is quite a thing to sanction parliamentarians, and that is what we are doing, and not only that—just in the past couple of days, we have put forward the biggest package of sanctions against Russia that this country has ever introduced, and we are coming forward with even more. They will have an impact not just on Duma Members and people who voted for the secession of the oblasts of Donetsk and Luhansk, but on the entire Putin regime, and I am glad that the Labour Opposition, at least for now, support the sanctions.
This is day six for thousands of households across East Sussex who have no power and no water. As we become more and more reliant on electricity, we must become more resilient. Can I ask the Prime Minister to ensure that the utility companies work together, that water companies have to have generators in place so that the water does not fail when the power does, and that local resilience forums are fit for purpose and communicate with their local communities? We need more help on this, Prime Minister—please help us.
I thank my hon. Friend very much for what he says about people in East Sussex. I know how tough it is for people who have been short of power for days on end, and it is no consolation to them for me to say that 97% of those who lost power have now been reconnected. We are working as fast as we can with local authorities and the electricity companies to ensure that they get their power back, but also to ensure that we build in more resilience for the future.
Let us be clear about this: is it not an absolute disgrace that a Privy Counsellor, adviser to the Queen and former First Minister of Scotland sees fit to broadcast his half-baked world views week after week on Russian television?
That was a brilliant, powerful question with which I think the whole House assented. Would it not have been more powerful if it had come from the leader of the Scottish National party?
The Prime Minister will have seen the devastation in Shrewsbury from the flooding of the River Severn. This is the third year in a row that Shrewsbury has faced these appalling floods. I chair the caucus of 44 Conservative MPs who have the River Severn, Britain’s longest river, flowing through their constituencies. Will my right hon. Friend help me and our caucus to do everything possible to find a long-term solution to managing Britain’s longest river? In the meantime, we have put forward four opportunities for flood defences in Shrewsbury to the Department for Environment, Food and Rural Affairs. Will he please take an interest in those, because Shrewsbury cannot afford a fourth year in a row of flooding?
My hon. Friend is completely right in what he says about the Severn and the violence of the flooding in the Severn area, which I have seen for myself several times. There are still flood warnings in place along the Severn, and all I can tell him is that we are working flat out to put in place the remediations to help people who have suffered from flooding, but we are also investing £5.2 billion in the flood defences of this country.
The leader in this morning’s Times is a scathing criticism of the Government’s limited sanctions against Russia. If the Prime Minister will not listen to Members of this House, will he at least listen to The Times newspaper?
I have the utmost respect for the media, and I of course study it as much as I can, but I have to say that the package that the UK has put forward has been leading the world, and there is more to come. [Interruption.] I hear somebody on the Opposition Benches saying that it is weak so far, but it is not—it is strong and it will be very strong. Something that would also be strong would be to take the Whip away from the 14 Labour Members who say that the aggressor in Ukraine is NATO. That would be a strong thing to do.
That is the end of Prime Minister’s questions.
On a point of order, Mr Speaker. Have you been given notice that an Education Minister will make a statement to the House on the Government’s response to the Augar review; the future of student and university finance; and the financial arrangements governing student loan repayments? No less than 1,000 days after Augar reported, it seems that the Government are, once more, more interested in briefing journalists than in informing the House on the future of our universities. It is extraordinary that the Government are yet again choosing to announce serious changes to higher education in that way. This morning, students will have seen their hard work belittled by Ministers—
Order. You have raised the point of order; you cannot make a speech on it. The Secretary of State may wish to answer you.
Further to that point of order, Mr Speaker. As you know, I am making a statement to the House tomorrow.
That resolves that problem.
On a point of order, Mr Speaker. Can you give me some guidance? Twice in Prime Minister’s questions, the Prime Minister referred to Alex Salmond and talked about him being one of our own, which is quite disgraceful. Alex Salmond has nothing to do with the Scottish National party. He is the leader of—[Interruption.]
Order. I am sorry, but I want to hear the point of order, because I have to answer to the question. I must hear the question.
Alex Salmond is not a member of the Scottish National party. Indeed, he is a member of another party. Moreover, the SNP has made it quite clear that no parliamentarian is permitted to appear on RT. To be traduced in the way that we were by the Prime Minister is simply unacceptable and he should withdraw his comments.
You have absolutely put it on record that Alex Salmond is no longer the leader of the SNP. That was many years ago and, as I understand it, he is now a member of the Alba party. That has now been corrected and I am sure everyone is aware of it.
On a point of order, Mr Speaker. You will recall that, yesterday, I raised a point of order about the Prime Minister saying to the House that Roman Abramovich had been sanctioned when it turned out that he had not been. I gather that the Prime Minister has now corrected the record. I wonder whether there is a means of ensuring that, tomorrow, Hansard is printed in gold letters, or red letters, because that is the first time. It is particularly exciting that it has only taken a Russian billionaire to get the Prime Minister to correct the record.
I think it has just been gold-plated. It has certainly been registered and you will be able to read it tomorrow.
On a point of order, Mr Speaker. Earlier today, before PMQs, a joint written ministerial statement was published on the decision to waive the right to remain application costs for non-UK personnel of our armed forces who have served at least six years—a cause that was supported by 200 Members of the House in a letter to the Home Secretary some while ago. It provides a clear and affordable pathway to British citizenship for all those, of whatever nationality, who have been prepared to serve the United Kingdom. Could you help to secure time for a debate on that important measure?
The hon. Member has been here long enough to know that business questions are tomorrow and he will be wanting to raise this. I will give him a pat on the back because he has done a great job.
On a point of order, Mr Speaker. The leader of the SNP may have inadvertently misled the House earlier. He said that no SNP member appears on Russian television. I am told—[Interruption.] I thought he did; perhaps he would like to clarify. I thought he said that every member of the SNP—[Interruption.]—had been told not to appear on Russian television.
Order. We cannot both be on our feet at the same time. I would say that is not the case. We will be able to read Hansard tomorrow and if you feel it is not correct, you can come back with a point of order.
I beg to move, That leave be given to bring in a Bill to make provision about the application of the energy price cap in relation to households without mains gas supply; to require the Secretary of State and Ofgem to make proposals for measures to ensure that households do not have to pay more for energy because they do not have access to mains gas supply; and for connected purposes Let me lay out the key points of the issue and then describe how vital it is for people to be protected from a crisis on top of a crisis, because they are caught in a specific energy price trap that is none of their making and that is set to bring additional hardship and misery to people already being financially crushed by a cost of living crisis that has been imposed on them The current price cap introduced by the UK Government and Ofgem is based on the assumption that households across the nations of the UK consume energy with a split of 80% gas and 20% electricity. However, about one in six households across the nations of the UK are currently off gas grid. The result is that these households are forced to pay about four times more for their energy bills than the so-called average household. We have a ridiculous situation in which Ofgem’s own statistics tell it that more than 15% of all UK households cannot get mains gas, yet it treats them as if they do, based on that 80:20 split in favour of gas. This ignores the energy price consequences for those who need to fill that 80% gap with other forms of fuel, such as domestic oil or other unregulated fuel, all of which have soaring prices themselves. This is grossly unfair. The inevitable result is that most off gas grid households then become wholly reliant on electricity. This is discrimination, and this is unacceptable. The UK Government are failing families across the nations of the UK simply because of where they live However, that is not the worst of it. From 1 April, Ofgem will set its price cap tariffs—they will be painful for most households, as we know already—at 28.34p per unit for electricity and 7.37p per unit for gas. What this means is that those who cannot access the assumed 80% of their energy from mains gas will be paying four times as much as those who can and nearly twice as much for the standing charge. The Ofgem average consumer faces an eye-watering rise in their bill of 54% or £700 a year, which takes them to about £2,000 a year. That is bad enough, but spare a thought for off gas grid customers, many facing colder rural conditions, who will see their bills hit an outrageous £4,416 for the same net energy usage. It gets even worse for those on prepayment meters, who face even higher energy price caps People and families are already struggling even before this combined cost of living crisis and energy price conundrum, coupled with the callous UK Government cut of £20 a week in universal credit. People now find themselves in some cases literally powerless. They no longer have a choice even between heating or eating. For some—too many now, and many more coming soon—that is the shameful reality of life in the UK under this UK Tory Government. The kick in the teeth is that consumers in off gas grid areas, such as those in the highlands and islands that I represent in my constituency of Inverness, Nairn, Badenoch and Strathspey, can often see clean and cheap renewable energy being generated in their own backyards People in off gas grid areas are also likely to be faced with higher transport costs. They are highly likely to be living in older properties that are less energy efficient. Crucially, they are likely to have lower than average incomes. What chance do they have if nothing is done to help them? Fuel poverty, and the extreme fuel poverty I am describing, can lead to many negative outcomes—far too many for me to list in the time that I have here—but the charity Crisis has raised concerns about rapidly accelerating homelessness. That is just one of the possible consequences of the rising debt, rent and mortgage arrears for many as a result of this What is the point in having a UK energy regulator if it is unwilling to ensure that, at very least, people are equitably treated, whether they live in an off gas grid area or with the benefit of being on it? Either Ofgem or the UK Government can make the required change, and they must not be allowed to play off each other, or to deflect and hide behind each other on this issue. The Government could choose a mechanism such as a vulnerable area designation, ensuring that all off gas grid households are not charged any more than on-gas households are for the same number of units used The UK Government should also commit to an immediate and urgent review of regulated energy prices and their component costs, to level the playing field for all households. That process should begin immediately. There is an undeniable moral duty to intervene, and to rescue the affected families and children right now from impending financial disaster. Sorting that injustice should be swift, but while those levers are being pulled, there should be no delay in emergency action to support people facing those impossible challenges Along with longer-term reform, and in addition to the designation of vulnerable areas, the UK Government should play catch-up and help people in other ways. For example, while instructing Ofgem to create vulnerable area mechanisms and commencing that review of regulated energy prices, they could reinstate the £20 per week cut to universal credit. The Chancellor’s loan scheme does not provide meaningful help for those I have described; it simply pushes a small part of the problem out The Scottish Government are using the consequential funding, but as the Cabinet Secretary for Finance and the Economy, Kate Forbes MSP, pointed out, much more is needed than small loans and council tax discounts. The UK Government could give further assistance, for example by copying the Scottish Government, who have introduced the Scottish child payment and now doubled it to £20 a week, and are operating the child winter heat allowance, up by 5%. They are supporting carers and disabled people with additional grants, including help for severely disabled children and low-income households. Replicating all that will not solve the problems people face, but it would help people across the UK, and allow Scotland to provide even more help through consequentials and spending, so that more people might be helped through this escalating crisis I mentioned older, less energy-efficient homes. The Scottish Government announced an additional £80 million to help households to install energy efficient measures aimed at reducing heating bills. I urge people to take advantage of that, but the UK Government should play catch-up on their own commitment to boost it. The UK Government have so far allocated only a fraction of the £2.5 billion they pledged for the home upgrade grant—another measure that could exist in the longer term if the will existed on the Government Benches At the heart of this issue is a badly broken, discriminatory system that must be fixed. Yes, it needs emergency interventions, but the problem will persist and get worse, driving people into desperation, due to the lack of thought given to the problem of off gas grid inequality. This Bill would fix that. Ofgem and the UK Government cannot now say that they have not been warned of the dire consequences of inaction. Let us see them work together to grasp this challenge for once, to do the right thing, to support people and families, and to support the Bill and take the urgent steps that are desperately required Question put and agreed to. Ordered, That Drew Hendry, Ian Blackford, Brendan O’Hara, Jaime Stone, Pete Wishart, Angus Brendan MacNeil, Alan Brown, Ben Lake, Liz Saville Roberts, Hywel Williams, Richard Thomson, and Stephen Flynn present the Bill Drew Hendry accordingly presented the Bill Bill read the first time; to be read a Second time on Friday 18 March, and to be printed (Bill 258).
On a point of order, Mr Speaker. I want to correct the record. Yesterday, I said that the Israeli Labor party and Meretz party—Labour’s two equal sister parties in Israel—had written to our current leadership in support of a boycott of goods and companies in the occupied territories. The letter, sent in July 2020, in fact came from the former Speaker of the Knesset, the former party chair, the former interim President of Israel, and other former and current MPs from the respective parties. Although that might be the view of the Meretz party—the larger of the two sister parties at the time—it has been expressed clearly to me that that was not the view of the Israeli Labor party, and it did not say that in the letter. I wish to correct that for the record clearly today.
I thank Lloyd Russell-Moyle for the correction.
On a point of order, Mr Speaker. The House will be aware that recent storms have battered and bruised much of the country. First Storm Arwen hit parts of Scotland, and more recently Storms Dudley, Eunice and Franklin left more than half a million homes without power and saw some rivers burst their banks. We have been reached out to by people in Sussex and Surrey, specifically near Guildford and in areas such as Peaslake, Frimley Green and Cranleigh, which are still without power after the storms. Have you had any indication, Mr Speaker, of a forthcoming Government statement about those ongoing issues? Have Ministers made any commitments about travelling to meet people in those areas that are still affected by the storms?
As the hon. Lady knows, normally the Government would not bring forward a statement on an Opposition day, but she has certainly ensured that those on the Government Benches have heard the point about Ministers visiting the area. There is a great opportunity to raise that issue once more at business questions.
I beg to move, That this House expresses solidarity with the people of Ukraine, and supports their sovereignty and Ukraine’s territorial integrity; condemns Russian aggression and emphasises the UK’s commitment to NATO; resolves to end illicit finance that rewards and sustains the Putin regime in Russia; calls on the Government to introduce an Economic Crime Bill, an Overseas Entities Bill and a register of beneficial ownership by the end of March 2022; and further calls on the Foreign Secretary to make a statement to this House on the implementation of the recommendations of the Intelligence and Security Committee’s Russia Report, HC 632, published on 21 July 2020 My ancestors knew what it was like to have freedom taken away at the barrel of gun. They knew what the twisted lies of imperialism sounded like. They knew what it was like to live without the vote. They were taken from their homes, enslaved, shackled to ships, and forced to work for the profit of a foreign empire. No act of authoritarianism is ever the same, but Vladimir Putin’s actions in Ukraine in recent weeks are an ugly attempt to restore the Russian empire The Russian President denied the right of a sovereign nation to exist. He unilaterally recognised separatist movements that seek to dismember Ukraine. Then, under the cowardly shield of the night, he sent in tanks and soldiers to enforce his diktat. Putin’s crimes against peace need a united and immediate response: a full set of sanctions, possible now; to provide continued support for the Ukrainian army; and to clean out the dirty Russian cash in our system. However, to stand up to Putin in the long term, we need to stand up to Putinism. Putin is not unique. He is the figurehead of an ideology that is being emulated by despots and dictators around the world.
My right hon. Friend is making an excellent speech. Does he agree that not nearly enough action is being taken to crack down on illicit Russian influence in the UK? Our structures are set up to be so opaque that we have no idea of how strong Russian influence is. With Putin’s money still being funnelled, can we not create a proper register of overseas entities, clearly to see and address this issue?
My hon. Friend is right. The cornerstone of any democracy is the accountability and transparency that allows the general public to see who owns what. I will come on to more of that in a moment.
I appreciate that my right hon. Friend will say more on this issue. It is estimated that there is at least £2 billion of dirty money in the London property market—much of it is concentrated in high value areas including Kensington and my borough of Westminster—and we do not know the beneficial owners of those properties. Was he as surprised as me to hear the Prime Minister say that we may not expect the economic crimes Bill until the next Session?
My hon. Friend is so right. These properties are pricing out young people and challenging working people. Often, the lights are off and no one knows who owns them. If that is not an urgent issue, I do not know what is. I was staggered when the Prime Minister said that it did not merit action until the next Session.
It is not just about urgent action. Does my right hon. Friend agree that it is outrageous that legislation on publishing the beneficial ownership of UK properties owned by entities abroad was promised by the Government in 2016, there was consultation on a draft Bill—I think a Bill is sitting in Government, ready to go—and it was promised again in the 2019 manifesto and at G7 meetings but has yet to appear? Is that not an utter scandal?
My right hon. Friend is right. In six years, there has been promise after promise—we have had more promises from the Dispatch Box today—and we are still waiting. It is not worthy of our great democracy. The public deserve better.
I will give way one last time and then make some progress.
Further to that point, my right hon. Friend will be aware that the Treasury Committee has published a report on economic crime in which it calls for an economic crime Bill, so this matter is supported not just by Opposition Members but by many Conservative Members. There is support right across the House, so why is there a lack of urgency from the Government?
My hon. Friend is right. We are talking about foreign ownership of property in our country, and that ought to command cross-party support. Just six or seven years ago, I would never have thought that this would feel like a partisan issue and be the basis of an Opposition day debate. It should have had time on the Floor, and we should have had an economic crime Bill years ago, but it takes the Opposition dragging the issue into the public domain to get a response To stand up to Putin in the long term, we need to stand up to Putinism, because Putin is not unique; he is the figurehead of an ideology that is being emulated by despots and dictators around the world. Putinism is imperialism. Putinism is authoritarianism. Putinism is ethno-nationalism. The Russian regime represents a fundamental geopolitical threat and we will not defeat the broader threat until we tackle the ideology that underlies it. Part of our message to Putin must be that his actions are a historic mistake This is not the first time that a Russian leader has waded into conflict as a result of his ideology. The same thing happened in East Berlin in 1953 when the USSR moved in to suppress riots. It happened in Hungary in 1956 when Russia sent in troops to invade the country as well as in Czechoslovakia in 1968 and in Afghanistan in 1979. None of those acts of aggression was a success in the long term for Russia, and civilians caught in the middle always pay a terrible price. In the invasion of Czechoslovakia, Russian soldiers strode in convinced that their invasion was liberating the Czech people from capitalism, but, when they are arrived, normal Czechs surrounded the invading forces and said, “Why are you here? You aren’t liberators—you are aggressors.” The Russian troops were deflated; the propaganda that they had been fed was a lie. The same thing will happen if Putin moves on the rest of Ukraine Only the Ukrainian people should have the freedom to determine their own futures. That fundamental belief in self-determination is shared across so many of our borders. It is a founding principle of so many of our closest allies and partners across this great continent and beyond it. The logic of democracy is why Putin will never win in the end. Any reward that he gains will be pyrrhic Putin has made his move. The wider threat that Ukraine faces is immediate, but the consequences for Europe and the west are also stark. This is likely the end of the post-cold war era, but we do not yet know what era is next, because it has not been decided. The effects of this moment will depend as much on our response to this aggression as on the aggression itself.
I thank the right hon. Member for putting forward an impressive contribution to the debate. Following his line of thought, does he agree that, having decided our first step of imposing sanctions, we must do so properly and with wisdom? We also need to act in co-operation with other nations to ensure that we do not see Russian money supply transferred from our banks to friendly banks—those in Switzerland, for example, among other nations—in the next few days.
The hon. Gentleman is right. He knows a lot about violence and the corruption of money to fund that violence, and I am sure that the whole House is grateful for his wisdom What we know is that autocrats from around the world are watching to see if we meet this test of our strength and resolve. China will be watching to see how the west responds to Russia as it plots its next move. We must be strong not only to defend the people of Ukraine whose dignity and resilience has been an inspiration to all of us throughout the crisis but to defend the liberal international order that we need to stay safe Labour would go deeper, broader, stronger and faster on sanctions. The Government’s targeting of just five banks and three individuals is simply not enough. They claim that these are the toughest ever sanctions on Russia, but, after the annexation of Crimea, the UK froze the assets of almost 200 individuals and 50 entities alongside a range of other measures. Labour would go much further. We would increase the depth of sanctions by targeting more oligarchs and more banks. We would increase the breadth of sanctions by widening the measures beyond just asset freezes to sectoral measures, blocking dealing in Russian sovereign debt and banning the fake-news producing Russia Today. We would ramp up the speed of sanctions—we would not wait for Putin’s next act of war but introduce the full set of sanctions now. We would increase their coherence, moving in lockstep with our allies who have sanctioned more people more quickly than us. We would have stopped Nord Stream 2 and targeted Belarus as well, and we would make our sanctions stronger by targeting the systems people operate in as well as individuals. That means reforming Companies House so that it is fit for purpose, creating a register of overseas owners of UK property, as has been mentioned, delivering a strong economic crime Bill, as has been mentioned time and again, and implementing the recommendations of the Russia report finally in this House.
My right hon. Friend will be aware that an estimated £100 billion a year is run up through money laundering, fraud and corruption, so he is right that it is imperative that the Government take action now. When the Minister for Security and Borders, the right hon. Member for East Hampshire (Damian Hinds), gave evidence to the Treasury Committee, he admitted that the Government have been found wanting—not his words, but more or less so—and that there is much to do. This week is the moment to act.
My hon. Friend mentions £100 billion a year: money that could have been spent on schools, money that could have been spent on hospitals, money that could have been spent on our post-covid recovery.
I thank my right hon. Friend for allowing me to intervene once again. The words the Minister for Security and Borders, the right hon. Member for East Hampshire (Damian Hinds) used when giving evidence to the Treasury Committee were that he was “not happy”—that is the quote in our report—with the progress the Government have made in tackling economic crime. That is in the Treasury Committee report. I share his unhappiness with the progress the Government have been making. If the Minister is not happy with the progress the Government are making and we are not happy with the progress the Government are making, we can only guess why there still seems to be a lack of progress.
I have to say to my hon. Friend that it is challenging all our consciousness when the Government say they are not happy and the Minister says he is not happy and nothing happens. They are in charge and they have to fix this Sanctions are the way we punish Russia for its crimes, but there is so much more action we should have taken years ago to defeat the corruption, crime and lies that define the ideology and operating system of Putinism. That means rooting out the dirty money that is corrupting our economy and our democracy. It is no use tackling Russian aggression abroad while doing nothing to tackle Russian corruption at home. For a decade, the Tories have failed on this. Worse, they have enabled it. We are working with the Government on standing up against Russian aggression in Ukraine, but we must work in the UK to get our own house in order. It is a great shame that the UK is regularly described as the money laundering capital of the world. It is shameful that our US allies have said they are concerned that the influence of Russian money has compromised us. It is shameful that the Tories have failed to stop Russian money from turning London into a laundromat for ill-gotten gains. Our openness to kleptocracy and its money has weakened our country. Dirty Russian money props up Putin’s regime by shielding the dark money of the Russian oligarchs and Putin himself. It fuels crime on our streets. When kids risk their lives to deal drugs on county lines, that is dirty money. When vulnerable women are trafficked across the country to be abused, that is dirty money. When people are forced to live in fear because of criminal gangs on the streets, that is funded by dirty money. Dirty money makes the housing crisis worse by inflating prices and buying up properties to lie empty as assets not homes. And it leads people to ask questions about the Conservative party, which has accepted £2 million in donations since Boris Johnson took power in 2019. Mr Speaker, it must give that money back.
One thing my right hon. Friend has not mentioned yet is tier 1 visas. I note that Lubov Chernukhin was given a tier 1 visa in 2011 and Alexander Temerko was given a tier 1 visa in 2011 by Conservative Home Secretaries. Subsequently, between them they have given millions of pounds to the Conservative party and lots of individual Members of this House have taken money from those individuals. It certainly looks like corruption, does it not, if you give out a visa, do not insist on that person surrendering their Russian nationality, and those people use extensive shell companies in the British Virgin Islands and elsewhere to hide where their money is coming from? That is corruption, is it not?
My hon. Friend is right. We cannot have one tier for the elite and another tier for everybody else. That is the problem and it should have been dealt with years ago.
What concerns me is that the way that Russia is set up at the moment—I described it yesterday as a mafia state—means that if you are going to make money out of Russia you have to have the permission of Mr Putin, otherwise you are out of the picture. Does my right hon. Friend therefore not share my concern that a lot of the money coming in is directly or indirectly linked to the activities of Putin himself?
My hon. Friend is absolutely right. We note, do we not, individuals who are the target of sanctions in Europe and who have been the target of sanctions in the United States since 2018? And we wait and we wait and we wait. And we wonder why this Government are so slow to act Today, we call on the whole House to come together to end the tidal flow of dirty Russian money flooding into our country by: ending our openness to fraud and money laundering with an economic crime Bill that should be brought forward this month; fixing our inadequate regulation of political donations by reversing the Conservative’s Elections Bill that is setting us back; strengthening our lax mechanisms of corporate governance; enabling our national agencies to clamp down on economic crime; and blocking the threat of foreign interference in our politics. We need transparency with an overseas entities Bill and the reform of Companies House to shut down the shell companies that obscure the origins of wealth and hide corruption, and reveal who owns land from abroad. Finally, this House must come together and recognise the urgency of implementing the Russia report, which was published in July 2020—nearly two years ago.
I am grateful to my right hon. Friend for giving way and I welcome the commitments he has made on the sort of action a Labour Government would immediately put in place. There is one area he has not covered, which I think is of great importance: the role played by the financial services sector and the enablers here in London in supporting money laundering and illicit finance. Whether lawyers, accountants, the banks or other advisers, they are often complicit in this activity. Does he agree that the economic crime Bill also needs clauses that tackle the role of enablers in enabling illicit finance?
My right hon. Friend is exactly right. Over two thirds of our economy is the service sector. The consultants, lawyers and accountants are absolutely a part of the process of dirty money and the laundromat. We must act to deal with them. [Interruption.] Of course not all of them, but there are facilitators and we expect to see the appropriate clauses in the economic crime Bill Defeating Putinism starts with leadership that represents our values. If we are to be taken seriously on the world stage when we talk about democracy, we cannot be watering it down at home with unfair reforms such as voter ID and loose rules about overseas donations. If we are to be credible champions of international law, our leaders must practise the laws they set at home. The best way to defend the rule of law is to follow it.
The right hon. Gentleman rightly emphasises what the UK can do to clean up matters in the UK. One commentator has talked about the need to tackle what he calls the ecosystem of Russian influence over UK democracy, which would mean going further and including direct donations to politicians—some of whom are Members of this House—the actions of public affairs companies and lobbying companies, and in particular the funding of think-tanks. Does he agree that a very comprehensive package of measures is needed?
The hon. Gentleman makes the list more comprehensive and he is exactly right Enough is now enough. Putin has invaded Ukraine, a sovereign state and a friend and partner of the United Kingdom. That is an attack on the hopes, dreams and aspirations of ordinary Ukrainians. We can no longer let him exploit the holes in our system at home to enable his aggression abroad. This is not a partisan issue, and nor should it be difficult. It is shameful that the Government have not acted long ago. We want to work with the Government not only to win against Putin’s aggression abroad, but to defeat the ideology of Putinism at home. We are united in this House in support of NATO, in support of freedom, and in support of democracy and equality. Let us send a clear message to President Putin and authoritarians around the world that the UK is no longer a haven for dirty money.
I thank the right hon. Member for Tottenham (Mr Lammy) for securing this timely debate and join him in expressing our united support for the people of Ukraine and their territorial integrity. We have seen events unfolding that none of us thought we would ever witness again We have unreservedly condemned this outrageous and unjustified act. This action is inconsistent with the United Nations charter and a clear breach of international law. It demonstrates flagrant disregard for Russia’s commitments under the Minsk agreement and represents a further attack on Ukraine’s sovereignty and territorial integrity. We continue to call on Russia to observe its obligations under article 2(4) of the United Nations charter to “refrain…from the threat or use of force against the territorial integrity or political independence of any state” We reiterate our unshakeable commitment to the sovereignty, territorial integrity and independence of Ukraine. We insist that the Russian Federation immediately returns to compliance with its obligations under the United Nations charter and its commitments under the Helsinki Final Act and the 1994 Budapest memorandum. We demand that the Russian Federation immediately withdraws all its military forces from the territory of Ukraine, unconditionally and without exception. We also insist that the Russian Federation allows and facilitates the safe and unobstructed access of humanitarian assistance by international agencies for those in need in Ukraine. Yesterday, the Prime Minister announced, here in the House, the UK’s response to this action.
I agree with the Minister’s fine words, but two weeks ago, the Prime Minister told the House, on Ukraine, that the UK’s role was “to lead the West”. In the meantime, Germany has put Nord Stream 2 on hold indefinitely. Today, the European Union has sanctioned Duma deputies, the Russian Defence Minister and the Russian air force and Black sea fleet commanders, and it has brought in asset freezes and sanctioned 23 individuals, five banks and an internet troll factory. The USA has also extended sanctions. Is the UK actually leading the west?
I thank the hon. Gentleman for his intervention. I would say that we absolutely are leading, with our allies. I will come on to the package of measures and some of the points that have been raised, as well as what we will go on to do The UK is one of the largest and most open economies, and London is one of the world’s most attractive destinations for overseas investments. Those factors not only make the UK attractive for legitimate business, but expose the UK to illicit finance and money laundering risks. We are well aware that individuals with links to the Russian state may seek to further their reputation and influence in the UK through strategic investments. We continue to look in close detail at the nature of those relationships. We examine the intentions of those individuals; professional enablers, individuals or entities who facilitate corrupt elites; and what that money can be and is being used for in the UK Money obtained through corruption or criminality is not welcome in the UK or in our Crown dependencies and overseas territories. The Government are at the forefront of tackling illicit finance, combating the threat from source to destination, including those linked to Russia.
Does the Minister share the concerns of our security services that Putin and Russian individuals who happen to be Tory donors could have undue influence in this House or the other place?
We are conscious of all influences from different states. I will come on to some of the measures that the Government have taken to combat illicit finance and some measures that we will take forward.
I believe that there are Ministers and Government Members who are frustrated at the lack of progress that the Government are making in tackling money laundering and fraud, which brings me back to the question of why. The Government have the majority that they need, they control the timetable and they have been in power for more than a decade, so why is there a lack of progress on the issue of Companies House? Our Treasury Committee report again talked about the slow pace and the lack of progress. What else does the Minister need for us to make progress on this issue, when we in the Opposition are offering an open door and saying, “We will support it.”?
I am very grateful to the hon. Lady for her intervention. I will set out the steps that the Government have taken and come on to—[Interruption.] Let us start with the actions that we have taken and then look at what we will do First, we have announced significant new investments. In the 2021 spending review settlement, £42 million was announced for economic crime reforms and £63 million for Companies House reform. In addition, the introduction of the economic crime levy will raise an estimated £100 million a year from 2023-24 to fund new economic crime initiatives Secondly, we are strengthening our law enforcement powers. The Criminal Finances Act 2017 introduced new powers to combat dirty money in the UK. It allowed for the proactive investigation of assets owned by suspected criminals and corrupt public figures Thirdly, we are developing new tools to target illegitimate wealth. [Interruption.] I will come back to these points. In April last year, the UK launched the global anti-corruption sanctions regime, which allows the Government to impose asset freezes and travel bans on those involved in serious corruption around the world. That is a strong personal deterrent and has been used so far to sanction 27 individuals in 10 different countries.
I am delighted that we have Magnitsky sanctions; I campaigned for them for 12 years—as did many other Members, including the hon. Member for Isle of Wight (Bob Seely), who is on the Government Benches—so it is a great thing that they are there. However, when the Minister talks about Companies House reform, the legislation is there. It is ready and waiting. The most disgraceful thing that I have ever heard is a Companies House official telling a Committee of this House, “I’m really sorry. We sometimes just daren’t take things forward because we know that Russian oligarchs have much deeper pockets than we do.” The truth is that our integrity as a country is being bought. We have to change that.
I am grateful to the hon. Gentleman for his intervention. I will talk about what we want to crack down on, but, as he will recognise, such things need to be legally robust To go back to the examples that I was giving before that intervention, the UK is a world leader in corporate transparency. It is the first country in the G20 to implement a central public register of company beneficial owners, showing who ultimately owns and controls UK companies. However, we are determined to go further to crack down on dirty money and financial exploitation, and we are enhancing the already strong regulation, supervision and legislative powers that are at our disposal.
More in sorrow than in anger, I raise the issue of Russian money and its role within the Conservative party. Fedotov, Temerko, Chernukhin, Mikheev, Knaster and New Century Media are all Russians or Russian companies who have close links to the Conservative party and have given money to Conservative MPs, Conservative constituencies or the Conservative central office. The figure I have is greater than the one that Labour Front Benchers have been using; I think it has been at least £3.6 million over the past decade I urge the Minister—I really do say this more in sorrow than in anger—to go back to her colleagues, sort this out and get that money out. I would not give it back to Russia; I would give it to organisations such as Transparency International, which does a fantastic job helping us to fight corruption. Until the Conservative party does so, it will have no credibility at all in the argument on fighting corruption.
Let me be clear. The Conservative party does not accept foreign donations—after all, they are illegal. All donations to the party are received in good faith, after appropriate due diligence, from permissible sources. Donations are properly and transparently declared to the Electoral Commission and published by it, and they comply fully with the law.
Will the Minister give way?
Let me just finish this point. There are people of Russian origin in this country who are British citizens. Many are critics of Putin, and it is completely wrong and discriminatory to tar them with the same brush.
I am sorry that the Minister has to defend the indefensible. Will she confirm to the House today whether the vetting of Mohamed Amersi’s donation surfaced the news that he made $4 million in a business deal with a man who was President Putin’s telecoms minister? Did the vetting cover that—yes or no?
As I say, donations to the Conservative party are received in good faith. They receive appropriate due diligence, are from permissible sources, are properly and transparently declared to and published by the Electoral Commission, and comply with the law.
I will make progress, because I want to turn to sovereign debt. If Russia stages any further invasion into Ukraine, we will not hesitate to implement a comprehensive and unprecedented package of sanctions in close co-ordination with our allies around the world.
On that point, will the Minister give way?
May I make a little progress? I have been quite generous, to be fair The package will include measures to stop the Kremlin’s access to UK financial markets for sovereign debt. That means that the Russian Government will be unable to access UK services to raise capital through the issuing and trading of sovereign debt To pick up on the point about Nord Stream 2, we welcome Chancellor Scholz’s strong response to Russia’s egregious actions: Germany’s decision to suspend Nord Stream 2. We in Europe must now wean ourselves off dependence on Putin’s oil and gas. For example, in 2020 less than 3% of the UK’s total gas supply came from Russia Many hon. Members have mentioned the economic crime Bill. We are committed to bringing it forward.
The Minister says we need to wean ourselves off Russian gas. That is eminently sensible, but I have a slightly wider question: do we need to wean ourselves off Russia more generally? Let me put it this way: does the Minister think it right in any circumstances that Tony Blair went to see then acting President Putin in 2000 or that David Cameron went to Moscow in 2011, almost to beg for Russian investment and placings and listings on the stock exchange? Surely we have made mistakes over a long period that have to do with political reputation as much as with the practicalities of gas supply.
The point that I want to make is about where we are today and where we have been for the past few days, weeks and months. Let us be honest: the build-up of troops on the border of Ukraine has been happening over some time We are committed to bringing forward the economic crime Bill. It will establish a new public register of beneficial ownership of overseas companies and other entities that own or want to buy UK property. It will ensure that individuals and entities can no longer hide in the shadows. It will also include reforms to Companies House that will bear down on the thousands of UK companies and other corporate structures used as vehicles for facilitating international money laundering, including from Russia We have increased checks on private flights, customs and freight travel under existing powers to prevent security threats to our people. On 17 February, the Home Secretary took decisive action to shut the tier 1 investor visa route to all new applicants of all nationalities, with immediate effect In response to the Russian invasion of Ukraine yesterday, we announced our first package of sanctions measures. With immediate effect, we froze the assets of five Russian banks. Four of those banks are involved in bankrolling the Russian occupation: Bank Rossiya, which is particularly close to the Kremlin; Black Sea Bank for Development and Reconstruction; IS Bank; and GenBank.
Will the Minister give way?
Sorry, but I will just make a little progress. [Interruption.] Just a moment—just hold fire for a second, if you do not mind The assets of one further bank—Promsvyazbank, the pivotal bank in propping up Russia’s defence sector—have also been frozen. We will also freeze the assets of, and impose travel bans on, three oligarchs: Timchenko, Russia’s sixth richest oligarch; and Boris and Igor Rotenberg, long-standing associates of the regime.
The Minister is being very generous in giving way. I am hearing that apparently No. 10 is telling the media that sanctions on the Duma members who voted are still being finalised because it needs evidence. What more evidence does it possibly need, considering that the EU has already announced that it is sanctioning 351 Members of the Duma?
The hon. Lady is very lucky to be looking at her mobile phone. I am not looking at my mobile phone; I am fairly focused on the debate in hand. [Interruption.] I am going to focus on the sanctions that we announced yesterday and the statutory instrument that the House approved To go back to my last point, no UK individual business will be able to deal with them until they have returned to Ukrainian control.
Will the Minister give way?
I will make progress, if the hon. Gentleman does not mind. I think I have been pretty generous so far Over the coming weeks, we will extend the territorial sanctions imposed on Crimea to territory occupied by Russian forces in the so-called breakaway republics of Donetsk and Luhansk. We will also sanction those Members of the Russian Duma and Federation Council who voted to recognise the independence of Donetsk and Luhansk, in flagrant violation of Ukraine’s territorial sovereignty This will not be the end. Yesterday’s announcement was just the start of our upward ratchet.
The Minister has repeated the points made yesterday about sanctions against banks. Can she explain to the House what her Government will do to sanction the large state-owned banks? If we sanctioned Sberbank, VTB and Gazprombank, for example, as well the non-state owned Alfa bank, it would actually have a serious impact on the Russian Government. At the moment, we are neither here nor there.
I am not going to speculate on further sanctions. That is normal, standard Government policy, because to do so would undermine future sanctions. All I will say is that this will not be the end. Should Russia stage any further invasion into Ukraine, we will not hesitate to implement a comprehensive and unprecedented package of sanctions in close co-ordination with allies around the world.
Will the Minister give way?
If the hon. Gentleman does not mind, I would like to make a little progress That package of sanctions will include measures to stop the Kremlin’s access to UK financial markets for sovereign debt, which means the Russian Government will be unable to access UK services to raise capital through the issuing and trading of sovereign debt. These measures will curtail the ability of the Russian state, and Russian companies, to raise funds on our markets, and will further isolate Russian banks’ ability to operate internationally. We will also introduce measures to limit Russia’s ability to trade internationally, and to degrade the development of its military industrial base for years to come. We will keep ratcheting up the pressure, targeting more banks, elites and companies that are of significance to the Kremlin.
rose—
rose—
I will give way to the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), because he has been quite persistent.
I am grateful to the Minister. Is there not a danger that the UK has taken a peashooter to a bazooka contest? As we are targeting a few individuals and a few peripheral banks, the Kremlin can sit back and allow oil and gas prices to rise, which will hit every single household in the UK.
I thank the hon. Gentleman for his intervention, and also for his persistence. As I have said, this is the first tranche of measures, and we are prepared to go further In conclusion, as we have shown consistently in recent years, and in recent days, the UK takes the threat of international illicit finance, including that from Russia, extremely seriously. We have taken decisive action to demonstrate that corrupt elites and individuals who seek to exploit our financial systems to hide their illegitimate wealth are not welcome in the UK, and we can and will go further to ensure that the UK is safeguarded from these threats.
On a point of order, Madam Deputy Speaker. Are you able to help me? I may have inadvertently misled the House earlier today when I said in a point of order that the Prime Minister was intending to correct the record of what he had said yesterday regarding whether Roman Abramovich had or had not been sanctioned—the Prime Minister said yesterday that he had, but I think he now admits that he has not. I was told by one of the Prime Minister’s Parliamentary Private Secretaries yesterday afternoon that he was going to write to me, and that there would be an apology. I gather that a version of the Prime Minister’s apology was submitted a while ago for a clarification, as is standard practice for Ministers, but I understand that has now been withdrawn. So the Prime Minister was going to correct the record, but now he is correcting correcting the record by not correcting the record. Can you confirm that that is the case, Madam Deputy Speaker?
I thank the hon. Gentleman for his point of order but, to be perfectly honest, I am having difficulty in grasping what his actual question is. He has asked me to confirm something, but I would have to be absolutely certain what it was that I was confirming before I could say that I was confirming it. This is a very serious matter and I want to make sure that we get the facts correct. I am told that a written ministerial statement has now been published and is available online. It might be that that contains the information for which the hon. Gentleman is searching. I am quite sure that if the record requires to be corrected, the Prime Minister will have it corrected.
Further to that point of order, Madam Deputy Speaker. I just wonder whether that is the correct procedure for a Minister. Normally we have a specific procedure in the House for correcting the record, which is only available to Ministers, so it would seem very odd to have sent forward a correction of the record through the standard process and now suddenly to divert down a completely different route, namely a written ministerial statement. My understanding was that written ministerial statements were normally announced in advance, rather than being suddenly sprung on the House.
I understand the point that the hon. Gentleman is making, and there does seem to be some confusion. My understanding is that the written ministerial statement, which the hon. Gentleman is suggesting has been withdrawn, has not been withdrawn, and that it stands. Does that help the hon. Gentleman?
Further to that point of order, Madam Deputy Speaker. No, I am sorry, but it does not. As I understand it, earlier this afternoon, during this debate, the Prime Minister submitted a correction to the record, as is standard practice for a Minister who has misled the House inadvertently—in those circumstances, Ministers correct the record. As far as I know, this is the first time the Prime Minister has chosen to do so—hurrah What I understand you now to be saying, Madam Deputy Speaker, is that instead of correcting the record—which is the standard, proper process for a Minister—the Prime Minister has decided to table a written ministerial statement. As I understand it, written ministerial statements are only meant to be tabled when they have been announced in advance on the Order Paper, and, as far as I am aware, that is not available.
Now I understand the point that the hon. Gentleman is making. I have to say that I think it is better that I tell the truth to the House, because I am not aware of exactly what this situation is, but I will immediately, by the methods available to me, find out precisely what the situation is, because—I note that those on the Government Front Bench are agreeing with me—it is very important that the information available to the House, to the Chamber and more widely is correct and accurate. I have a great appreciation of the point made by the hon. Gentleman. I want to make sure that the information I give to the House is accurate, and as I do not have it at my fingertips, I will find it and announce it as soon as I possibly can Now, where were we? I call Alison Thewliss.
Thank you, Madam Deputy Speaker. I am sorry that you were drawn into such a Pythonesque sketch show, but it is indicative of some aspects of the situation that I feel we are in with the Government today. They are absolutely all over the place on this issue. I could not quite believe it when the Minister said that the Government were taking it seriously, because we would not be here today if there were any sense whatsoever that they were taking it seriously. They have not taken it seriously, and that has been the case for years I thank the official Opposition for initiating the debate. It seems as though we have spoken a fair amount about economic crime in the past few weeks, but this motion could not be more topical or more significant During the sanctions debate yesterday afternoon, Members on both sides of the House rightly made clear that we have no quarrel with the people of Russia, and I want to start by reiterating that today. The cities of Glasgow and Rostov-on-Don have been twinned since 1986, hosting exchanges and working together to build bonds of friendship Rostov-on-Don now finds itself on the Russian frontline, and my thoughts are with residents there, as well as, of course, with all those in Ukraine, who must be very fearful of what more is to come after eight years of hostile action taken by Russian forces. We on these Benches are very clear about the fact that Ukraine and its sovereignty must be respected, and its people protected from Russian aggression I found it striking yesterday afternoon that Members in all parts of the House—perhaps forbye the Minister—were standing up to say that sanctions against five banks and three individuals were not enough. They are quite clearly not enough. These individuals have been on the US sanctions list since 2018, and are hardly likely to find this additional step a surprise or, indeed, an inconvenience It was billed that, post Brexit, the UK would be able to act in a nimble fashion and sanction more and more individuals as it saw fit, but it seems that we are not even going as far as the EU. Germany’s ending of Nord Stream 2 yesterday was a hugely significant move. European Union Foreign Ministers agreed unanimously on Tuesday to sanction 27 Russians and entities, as well banks and the defence sector, and to limit Russian access to European capital markets. The EU’s measures will also target as many as 351 members of the Russian Duma, as well as individuals and businesses linked to Russian actions in the separatist regions I appreciate that the Prime Minister said during Prime Minister’s questions, and the Foreign Secretary said this morning, that they will escalate sanctions in the event of full-scale invasion, but by that time it will be far too late.
Does the hon. Member agree that it is important that, as far as possible, Britain acts in concert with its allies, and that it is therefore strange that the Government have come forward with a very weak package of sanctions while the European Union has a very strong package?
I agree completely. This package is very weak, and commentators across the board have described it as very weak.
Does this whole crisis not demonstrate the strategic malfunction of the Conservative party’s obsession with the European Union over the years, especially given all the negative energy that has consumed politics in this place over the last five years in the fallout from Brexit? We have taken our eye off the ball when it comes to the biggest foreign policy challenges that the UK—the state—faces.
The hon. Gentleman is absolutely correct on that. There is a real need to work together on this, but the UK has been several steps behind, unfortunately I note with interest that it was reported that shares in Russia’s two biggest banks went up yesterday, in relief that they had not been targeted. The five banks targeted represent a mere fraction of the Russian banking sector. Only one of the five is on the Russian central bank’s list of systemically important credit institutions. The Black Sea bank is Russia’s 197th largest bank by assets, IS bank is 155th and GenBank is 92nd. They were hardly the biggest fish to go after. Ministers have assured us that there will be a ratchet process, but it feels to many that they are not moving fast enough or taking enough action to make a real impact here. Those cronies and oligarchs who have money to shift will no doubt be doing so already. The Minister of Foreign Affairs of Ukraine, Dmytro Kuleba, has tweeted this morning: “To stop Putin from further aggression, we call on partners to impose more sanctions on Russia now. First decisive steps were taken yesterday, and we are grateful for them. Now the pressure needs to step up to stop Putin. Hit his economy and cronies. Hit more. Hit hard. Hit now.” The UK Government should listen to that plea from our allies There was much talk during the recent statements of military action and of sending tanks and guns, and while that might be of immediate assistance in an escalating scenario with tens of thousands of Russian troops on the march, we must not neglect to tackle the long-standing scandal on the doorstep of this Parliament that has allowed President Putin to gather his strength and finance his corrupt regime. What frustrates me, other colleagues across this House, anti-corruption experts in the field and the Glasgow Central constituents who email me is the lack of action and urgency on illicit finance. The UK Government alone have this responsibility, but they have not taken the ample opportunities they have had over the years to stop the flow of Russian dirty money through the City of London. The Minister for Security and Borders, the right hon. Member for East Hampshire (Damian Hinds) told the Treasury Committee that he was not happy, and we are not happy either. The Government could have taken stronger measures in the Sanctions and Anti-Money Laundering Bill Committee, on which I sat. They did not do so. They have their registration of overseas entities Bill, which is still waiting for action. They have had ample opportunity to reform Companies House and to tackle Scottish limited partnerships and the lack of investment in enforcement agencies. People are getting away with this corruption through a lack of proper enforcement One of the most egregious examples is the Russian laundromat case, in which some 113 Scottish limited partnerships played critical roles in a massive Russian money-laundering scheme that moved $20.8 billion out of Russian banks. One of those involved was Igor Putin, cousin to the Russian president. I would like to pay tribute to my former colleague in this House, Roger Mullin, who did so much to tackle the scourge of the misuse of SLPs, along with the researcher Richard Smith and the journalist David Leask. The UK Government’s actions to tackle that were painfully slow and they have still not nailed the issue of the abuse of SLPs or the lack of enforcement on persons of significant control. Money has been taken from Ukraine recently via SLPs as well. Some £36 million in a scam being investigated by authorities last year ended up in the bank account of the SLP Remini Consulting Let us not kid ourselves: this is profitable business. The lack of enforcement has allowed an industry to flourish unchecked in the leagues of enablers right here in the UK. The journalist David Leask has pointed out: “The mundane, unhappy reality is that we have outright crooks and a fair number of white-collar professionals happy not to look too closely at where money comes from. These ‘enablers’ here”— in Scotland— “and in England are a threat to the UK and to the wider world. They corrode our democracy and distort our markets. And they are laced throughout our society. They are company formation specialists, corporate lawyers and accountants who provide financial services to oligarchs, gangsters and corrupt politicians. They rarely think of themselves as bent. But that is what they are, ethically if not legally .” The UK Government cannot talk seriously about tackling illicit finance if they do not go after those who enable it. They ought to start by looking in their own coffers for the donations with dubious sources and for those whose funds allow them to come into the Government’s inner circle. The Conservative party has accepted nearly £2 million in donations of Russian-linked money since the Prime Minister came into office in 2019, with a quarter of the Cabinet reportedly having Russian-linked donations. The Prime Minister and the Minister said that these were legitimate donations from British citizens, but handing them golden visas first, before getting the money, completely undermines the whole principle. I have constituents who have waited years for a visa, but anyone with enough money can waltz right in and do what they like.
The hon. Lady and I both sat and listened with increasing incredulity during the Treasury Committee hearings on economic crime. Does she share my frustration at the Government’s seeming inability to act on any of their stated concerns?
I absolutely agree with the hon. Lady. The evidence is so clear but the action is non-existent. It just is not being done.
On the issue of golden visas, prior to the tiered scheme there was the old UK investor visa, which was introduced in 1994. It ran from the end of the Major years through Blair, Brown, Cameron and all the Prime Ministers since, and now the tier 1 visa scheme has been done away with. Is my hon. Friend as frustrated as I am, given that the issue of dirty Russian money is not new, that the action is always too late and never quite enough?
My right hon. Friend is absolutely correct. The Government are several steps behind those who wish to bend the rules and wash their money through the City of London This morning, in response to questioning about a photo taken with Lubov Chernukhin, the wife of Putin’s former Finance Minister, the Foreign Secretary said: “I think we’ve got to be very careful to distinguish between those who are supporters of the regime, those who are propping up Vladimir Putin and those people who may have moved from Russia years ago and who are part of the British political system.” I would gently suggest to the Government that when those oligarchs and good pals of President Putin are seen by the British Foreign Secretary as being “part of the British political system”, it really does illustrate the scale of difficulty that the Conservative party has got itself into.
On that particular individual, it does seem odd that dual nationals can give vast amounts of money, especially when they have hidden nearly all of their assets from clear view and when, on top of that, it is pretty clear that a lot of their ownership has sprung from their time spent prospering under Putin.
That is absolutely correct. No questions seem to be asked about where this money has come from, the legitimacy of it or even who it really belongs to in the end A notable absence from the Prime Minister’s sanctions announcement was any commitment to extend them to those Tory party donors. Maximilian Hess, a fellow at the Foreign Policy Research Institute, has described some Russian business people as “a champagne glass removed from Westminster’s political elite” And it comes to Scotland too. At a Tory black and white ball in 2018, the then Scottish Conservative leader, Ruth—now Baroness—Davidson, auctioned off a lunch with herself to Lubov Chernukhin, who bid £20,000 to win it. It is said that Baroness Davidson has not yet even come good on that lunch, but if the £20,000 has been accepted, it is a significant donation, whether or not sandwiches, cakes and tea have been taken The Prime Minister repeatedly refused to allow publication of the report by Parliament’s Intelligence and Security Committee in the run-up to the 2019 general election. The Times quoted sources suggesting that his reluctance was due to his embarrassment at the links the Committee had discovered between Conservative party donors and the Kremlin. His Government have yet to act on the recommendations of that report. To make matters worse, the Tories’ Elections Bill will water down the Electoral Commission and make foreign donations easier, so their denial just now, stating that it is not foreign money, is not even going to stand when that Bill comes into force.
The hon. Lady is making an excellent speech. Does she share my concern that when the Prime Minister’s spokesperson was questioned about these donations, they just repeated the same answer, which was that due diligence had been met, but when they were asked what that due diligence actually consisted of and what was involved in it, they were unable to give an answer?
Yes, the hon. Lady is absolutely correct. It is a disrespect to everybody who donates with honesty to political parties in this country—those small donors who give a tenner or put money into a raffle—that so little is asked about these absolutely massive donations that go to the heart of our democracy and compromise the very place in which we sit today The Government must also act on the economic crime Bill. We heard earlier that it would be introduced in the next Session. We have heard before that it will be introduced when parliamentary time allows. Well, there has been tons of parliamentary time over these past couple of years and yet no economic crime Bill. The disappearance of that Bill was part of the reason that Lord Agnew resigned as the Minister for economic crime We have not yet seen the Government’s registration of overseas entities Bill. The register of overseas entities was supposed to be up and running last year, but we are still waiting to see the legislation. I sat on the Joint Committee on the draft Bill, and this morning I dug out the Committee’s papers and our report to refresh my memory. The Committee made suggestions to improve the Bill by closing loopholes such as trusts and introducing verification, the lack of which makes the current register at Companies House so utterly useless and full of guff Lord Faulks, the former Conservative Minister who chaired the Joint Committee, recently revealed that, under the previous Prime Minister, Downing Street leant on him when he tabled amendments to introduce a public register of overseas property owners. He said: “I was obviously misled because nothing has subsequently happened. I can only think a deluded desire to protect the City of London has led to all these delays It is a real irony that our reputation for protecting the rule of law is one of the things that attracts people who have very little regard for the rule of law themselves and come from countries which ignore it almost altogether.” That is the nature of the money being attracted Meanwhile, the anti-corruption watchdog Transparency International has said that Russians accused of corruption or of links to the Kremlin own around £1.5 billion-worth of property in Britain, 28% of it in the City of Westminster on the doorstep of British democracy This House is united in our cross-party support for the Government and people of Ukraine. Members across the House want to see more action by way of sanctions against those involved in Putin’s regime, but this report rings hollow when this Government have, time and again, failed to take action to halt the flow of dirty money through the City of London, tarnishing both credibility and reputation The Scottish Parliament does not have the powers to act on this, although my colleagues and I dearly wish it did. This UK Government have a chance to put that right, and they must do so without further delay, else the stream of questions as to why not and who benefits will become a flood.
Order. The hon. Member for Rhondda (Chris Bryant) made a perfectly reasonable point of order, and I could not give a clear answer. As I consider it to be extremely important that information given in the House, particularly from the Chair, should always be absolutely clear, I would like to make clear the proper answer to his question The hon. Gentleman is concerned that the Prime Minister sought to clarify, by means of a written ministerial statement today, something that he said in the House yesterday. That is perfectly proper. The written ministerial statement was notified on today’s Order Paper and has since been properly published. It has not been withdrawn, so it stands. It says: “Further to my answer to the Rt Hon member for Barking during my oral statement on Ukraine, it is the position that oligarchs at the heart of Putin’s inner circle and banks which have bankrolled the Russian occupation of Crimea have been targeted by the first wave of UK sanctions in response to Russia’s further violation of Ukraine’s sovereignty. As I said in my answer, these include Gennady Timchenko, Russia’s sixth richest oligarch, to whom she referred in her question, and Boris and Igor Rotenberg, two long-standing associates of the regime. In the event of further aggressive acts by Russia against Ukraine, we have prepared an unprecedented package of further sanctions ready to go. Further details can be found at: UK hits Russian oligarchs and banks with targeted sanctions: Foreign Secretary’s statement—GOV.UK (www.gov.uk) Roman Abramovich has not been the subject of targeted measures More generally anyone who comes to this country on an Israeli passport is a non-visa national. Israelis are required to obtain a visa if they want to live, work or study in the UK.” I hope that clarifies the position and that the hon. Member for Rhondda will be pleased the matter is now absolutely clear. [Interruption.] We will have no more on this. I have clarified it.
The second half of the Opposition’s motion relates to the economic crime Bill and, as many do, I have great sympathy with the points raised by hon. Members on both sides of the House over a period of time. I look forward to the economic crime Bill being introduced, and I think we could go further. We could provide further resources for the National Crime Agency, which has asked for them, and many of us on both sides of the House are underwhelmed by the extent of the British sanctions so far in response to what is clearly a Russian invasion of Ukraine It may be that we are not party to deliberations on the calibration of the response from western allies, and it may be that Nord Stream 2 was phase one and the City of London withdrawing its facilities will be a further step. In the absence of knowing what those deliberations are, the Government, on the face of it, have clearly not done enough in response through these petty, small sanctions considering the scale of the crime itself—the invasion of a sovereign, democratic country. With Members on both sides of the House having called it out as an illegal invasion of a sovereign country, we should remember that it is not a one-off. This Russian aggression started with the invasion of Georgia in 2008. Not everybody outside this place knows that 20% of the country of Georgia, a fifth, is still occupied by Russian troops. We tend not to dwell on that too often, but it has been followed by the annexation of Crimea and the war in eastern Ukraine. It is abundantly clear that Russian aggression must be met with the strongest possible response, including by providing the Ukrainian Government with all the means required to defend themselves.
Given that Georgia was 2008 and Crimea was 2014, should we not have been better prepared for sanctions?
I told the House yesterday that I think we should have stronger sanctions. And it is not just about stronger sanction, as we also need stronger defence and more defence spending In the absence of any knowledge about the calibration of our response—that is not to say it does not exist—the sanctions were pitifully woeful. Many hon. Members on both sides of the House have been very underwhelmed by them We need to do everything we can to provide the Ukrainian Government with all the means required to defend themselves. That means economic support and additional supplies of lethal weapons with which to protect their sovereignty, primarily and hopefully to act as a deterrent but also, if it comes to it, for use in battle. If Russia does invade, there will be an ongoing resistance to support. NATO must also continue its programme of beefing up deployments across eastern Europe, the high north and the Black sea. We must show to Russia that NATO is serious about protecting its members, and we must remind Russia of our article 5 undertaking There are people in this country who say this is overly aggressive, but we should make it absolutely clear in this place that we do not seek conflict. I was a soldier back in the 1980s, and I remind the House that I have consistently voted against our military interventions over the past two decades. I opposed war in Iraq, believing that we went to war on a false premise. I opposed the morphing of the mission in Afghanistan after we had got rid of al-Qaeda in 2001. I was the only Conservative MP to vote against our Libyan intervention. And I opposed trying to arm certain sections of the rebels in Syria, as I felt that we underestimated the task at hand and that those weapons would have fallen into the wrong hands. I was opposed to all of that, but, as a former soldier, I also recognise that strong armed forces are the best way of deterring aggression.
On deterrence after the fall of the Soviet Union, this political state, along with a range of other western states, gave opportunity for finance through oligarchy yet ignored ordinary Russians. Does the hon. Gentleman not think that if we had supported ordinary Russians to get the benefits of freedom and liberty in the west through golden visas for them, we would not now have 190,000 Russian troops on the borders of Ukraine?
That is a bit of a tenuous link. Let us be clear: an aggressor is going to consider invading a country regardless of what visas have been given in a third country. Having said that, I agree that we need to look at this, and I made that point clear when I first stood up We need to be clear that we need strong defence. One reason I opposed those recent interventions over the past 20 years is because I felt that they distracted us from the real business of countering traditional state-on-state threats. War should always be a means of last resort, once all other avenues have been exhausted, but the real danger was state-on-state threats, including Russia and, increasingly, an assertive China. We all know that jaw-jaw is better than war-war, but jaw-jaw is most effective when supported and backed up by strong armed forces, because potential adversaries then listen. After a decade of hollowing out our defence capabilities and cutting the number of soldiers, we need to get serious about defence and reverse those trends. The Prime Minister is right to say that we have had the largest increase in the defence budget since the end of the cold war—we are standing at about 2.4%, if we believe Government figures—but I suggest that we need to do much more. We still have the smallest Army since the Napoleonic times, if not before. We still have too few ships able to guard our aircraft carriers, and our air defences are thin. As a former soldier, I can promise the House that there is no substitute for boots on the ground. I buy the technology argument—everything about drones and how we have to be up to speed with cyber and all the rest—but there is no substitute for boots on the ground if we want to dominate ground. That is a simple fact I ask the Government to seriously think about this, but I also ask the Opposition to do so. For 20 years I have been in this place and I have banged on, together with others, on both sides of the House, about the need for increased defence spending. That has largely fallen on deaf ears. Some Opposition Members will remember that in 2013 I led the revolt from those on the Government Benches on the Bill that became the Defence Reform Act 2014, which was cutting regular troops and trying to replace them with reservists. With the help of the Scottish nationalists and Labour, we tried to get the Government to think again. Unfortunately, I was unable to carry a sufficient number of Conservative Members, but we came close. So I am not standing here being a hypocrite and suggesting this in a way to try to make party political points. I am asking the Labour party, the official Opposition, to do something. The establishment in this country still does not get it on defence. We need a substantial and sustained increase in defence spending, to act as a deterrent, not to be used in an offensive manner. Deterrence is the best way The Labour party has a very proud history in this area. It was a Labour Government who signed us up to NATO and who were determined that we had a nuclear deterrent. I suggest to the official Opposition that we need to start at 3% for defence spending but not tie this to a particular percentage of GDP, because GDP fluctuates. We need to start at 3% and then build on it, because we are entering an era where there is a battle for democracy yet to be had. I hope I am not being too dramatic when I say that. We need strong armed forces for that, and the Labour party, the official Opposition, has a role in this Having these debates is great, but we have had them so many times before about defence spending and other issues and interventions. If the Labour party was to say, “We are going to commit to a substantial and sustainable level of defence spending”, it would move the dial in the debate. The official Opposition would be surprised at just how much support there is on the Conservative Benches for a substantial increase in defence spending—well above the 2.4% figure we heard bandied about by the Prime Minister yesterday. The official Opposition have an opportunity to move the dial on this, and I encourage them to take it. This is an important issue on the doorstep, contrary to what many people suggest; people are proud of their armed forces. There is also an opportunity to be a force of good for the Union, as we are proud of our armed forces across the four nations of the UK I am conscious that others wish to speak, but may I briefly return to this point about the new era we have now entered with regard to the battle for democracy? We believed that democracy would sweep the field after the cold war, because it was blatantly obvious that it was the right thing, but democracy is a fragile concept. We fundamentally believe in it in this place, but let us never underestimate the number of oligarchs and totalitarian individuals out there—states, even—who want to overthrow democracy. We have to nurture, encourage and protect it. But what are we doing? We have a weak foreign policy when it comes to potential aggressors, and not just potential ones; when there is an invasion of a sovereign country we are debating quite petty sanctions. We need to step up to the plate I also suggest to the House that this is not just about hard power—quite the contrary, as the cold war was won largely because we won the soft power battle. We need to further finance our diplomatic sources and our diplomacy generally. One reason why I voted against the Libyan intervention, when I was the only Tory to do so and was very unpopular with my own party, was because we simply did not know what was happening on the ground. We did not have the diplomats there kicking the tyres and feeling the dust. We used to have great expertise in this area but we have hollowed it out, through cuts, and those cuts can be counterproductive. They can be a false economy. If we do not know what is happening on the ground, these decisions are much riskier. Satellites and technology take us only so far; we need experts on the ground.
I concur with what my hon. Friend was saying a moment ago about the need for the Labour party to commit to greater defence spending. Labour Members often challenge us about the need to increase development spending and I agree with them on that. He mentions diplomacy as well, and I wonder whether there is the opportunity for a cross-party agreement on sustained investment in our defence and our diplomatic service, and restoring development spending to 0.7% as soon as possible—and perhaps even going beyond it? I wonder whether there is an opportunity to increase all of our commitments to the international community and perhaps achieve a cross-party consensus.
I thank my hon. Friend for the intervention, and I certainly think there is greater scope for cross-party consensus on these key issues. We come together in condemnation of Russia and events such as this, but we need also to come together on such things as defence spending and diplomatic spending Let me return to soft power. I am chairman of the all-party parliamentary group on the British Council, and I know that some Members on the Opposition Benches have served with the British Council. We work together in trying to promote the interests of the British Council, but let me cite a further example of where we are going wrong as a country. Last year, the Government failed to meet the £10 million shortfall between the British Council’s commercial activities—predominantly the teaching of English in the far east, mostly in China—and the money the Government supplied. That £10 million shortfall has resulted in the closure of 20 country operations. That is not global Britain or the furthering of the interests of soft power. The British Council is a key instrument of our soft power capability. We are a soft power superpower, but we should never take that for granted.
My hon. Friend is taking us on a journey. I appreciate the point he made about increased military spending and an increase in boots on the ground in our armed forces, but does he feel that we as Members of Parliament do not have the full facts, whereas Ministers and officials do and see far more than we do? It is not necessarily right to criticise them for what they may or may not have seen. On top of that, we should be aware that there must be a sliding scale in respect of the sanctions on Russia. We cannot put everything on Russia all at once; we have to see how the situation develops.
I am afraid my hon. Friend has greater faith than I have. We have an excellent civil service and, by and large, parties on both sides of the Chamber have supplied good Ministers, but I would not have blind faith in every single Minister or official. The bottom line is that we are making cuts when there should not be cuts. When it comes to the calibration of the response, what my hon. Friend says may be the case, but there has been no calibration of the response since Russia’s invasion of Georgia in 2008. There has been absolutely nothing, so I would not necessarily assume that we should suddenly come round and say there must be a calibration now I have had the nod from Madam Deputy Speaker, so I am conscious that I need to move on. On the issue of soft power, in addition to the closure of 20 country operations last year, we face further country closures this year because, despite the FCDO’s budget going up 21% in the comprehensive spending review, the British Council’s budget is, believe it or not, falling again, stirring up questions about cuts In conclusion, in taking on the oligarchs and those who do not believe in democracy, we have to have a rounded response. We need to increase defence spending—I have called on the Labour party to help us to move the dial on that and to work in as cross-party a fashion as possible; we need more money for the diplomatic service; and we need to make sure we fund every avenue of our soft power capability, because it is going to be a battle of minds and ideas as much as it is going to be a battle of hard power.
Order. I hope we can manage without a formal time limit. If everybody takes around six minutes, we will manage without one, but if that does not happen, I shall put on a time limit.
It is a pleasure to follow the hon. Member for Basildon and Billericay (Mr Baron). I wish to focus a bit more on the economic crime and money laundering aspect of today’s debate, because we talked about sanctions last night and the political situation has been well covered I am a member of the Treasury Committee. A couple of weeks ago we published our 11th report of the Session, which is before the House, and we await the Government’s response with interest. It was frustrating to take evidence for that report in the knowledge that in 2019 our predecessor Committee had come up with detailed recommendations on dealing with the issues of money laundering, economic crime and fraud that were then becoming a problem, only for us to have seen the levels of all those crimes rise rapidly from 2019 and onwards into the pandemic, costing this country billions of pounds Others have pointed out how we allow London to be described as a laundromat for dirty Russian money, which is what the Intelligence and Security Committee’s Russia report told us was the case when it was published in 2020, after a significant delay that was down to the Prime Minister’s not allowing it to be published. It is frustrating to be two years further on from that report and to see no effective response to many of the things it said. If the Minister had come to the Dispatch Box and said, as a result of this debate, “We’ve seen the Russia report; we’ve been a bit tardy but we’re now going to put its recommendations into effect”, I would have been reassured. Yesterday, I asked the Prime Minister whether, in the light of Putin’s actions in Ukraine, he would do that, but he did not answer in the affirmative We are, then, in a situation in which London can still be described as a laundromat for dirty Russian money. It is now seen as the jurisdiction of choice for dirty money. One of the most vivid things I recall from when the Treasury Committee sought evidence for its report on economic crime was the ministerial evidence we were given. Ministers provided no satisfaction whatsoever that proper progress was being made. Where is the hold-up? Where is the blockage that is preventing what should be obvious progress from being made? Some measures have been announced for years and years, yet we have seen no proper or legislative progress We all welcome our City’s importance as a financial centre, but it is now being compromised by a baffling lack of urgency in dealing with economic crime. Our security is being threatened by international criminal gangs, kleptocrats and terrorist financing, yet the Government seem to have become fixated on describing complex processes rather than acting to stop their outcome, which is rising levels of economic crime and fraud, affecting many of our constituents when they are scammed out of hard-earned money.
I apologise for interrupting the hon. Lady and for not having read that report. Did it include anything on the reform of Companies House to include more transparency in respect of ownership and structures? That is a huge issue.
Perhaps the hon. Member should read the report, which is very comprehensive. If he had read it, he would know that it did indeed deal with that issue. It is something that we have been talking about, and our predecessor Committee was talking about, for a very long time, yet there is still no action. Apparently, the Chancellor has put aside a little money and the Government are talking about doing something in 2023-24. Our predecessor Committee was talking about this in 2019. Nothing has happened. Why has nothing happened We urgently need greater transparency, tougher regulation and tougher enforcement. As others have said, we need to introduce an open register of beneficial ownership of companies. The Prime Minister repeats that that is what the Government are doing, but there is no sign of it. David Cameron promised one in 2015 to get him through a G20. The legislation exists in draft—the hon. Member for Glasgow Central (Alison Thewliss) served on the Joint Committee on it and read it in minute detail—but there is still no progress. The Prime Minister reiterated that we were going to have an open register of beneficial ownership of companies to get him through the G7 in 2020, but there is still no sign of it. Why? We have enough time. The Prime Minister has had offers from the Opposition to facilitate the passage of legislation quickly to get it on the statute book, but the will does not seem to be there We need an economic crime Bill. Lord Agnew, who was responsible—you could not make it up, Madam Deputy Speaker—for fighting fraud in the Treasury, resigned at the Dispatch Box in the House of Lords in frustration because he could not perceive any urgency or determination to tackle the rising levels of fraud in the pandemic support schemes. He was so aghast at the lack of willingness there seemed to be in the Government that he felt he had to resign to “smash some crockery”, as he put it We need reform of the corporate liability law to crack down on money laundering and facilitation of this kind of crime in the banks. We need to deal with the urgent reform of Companies House. I have already discussed this. It is on the Government’s so-called agenda year after year after year. People can still create a company at Companies House, say that the owner of it is Vladimir Putin or Mickey Mouse and nobody will tell them not to do it. They can then use that to defraud various people and launder their cash. This is a joke and there is still no urgency in dealing with it We need to deal with the fragmentation of law enforcement if we are to deal with economic crime. No one part of the law seems to have any kind of coherent responsibility for enforcing it, so even if we had tougher regulation, we do not have the enforcement muscle to make sure that we get the outcome. Why are the Government dragging their feet? Why are they so ineffectual? Why is there no measurement of the outcome? Why do we have this kind of benign neglect as the forces of darkness gather, as they focus on laundering their dirty money through the City of London? We know how this affects people in terms of property prices. How can we have sanctions if we do not know who owns the companies that the money is flowing through? This has to be dealt with. The problem is getting far, far more urgent than it has ever been before. Our democracy is at stake and we expect this Government, finally, to get off their backside and do something about it.
I thank and congratulate the Opposition on bringing forward this debate. It is a very, very important and timely matter. I am impressed by the unanimity that has been shown across the House in response to what is happening in eastern Europe and by the support that has been given to the Government’s measures so far The shadow Foreign Secretary said earlier that the world is watching to see whether the west meets this test, and he is absolutely right. The Foreign Secretary said recently that there has been a decade of drift in regard to Russia, and, sadly, that is true as well, but that is no longer the case. I applaud the measures that have been announced: the clampdown on the activities of the oligarchs in the UK; the suspension of banking; and the restrictions on the Russian state and Russian companies from raising debt in London markets What more can and should be done? Yes, we must take resolute action to get illicit Russian money out of the City. I was powerfully struck by what the hon. Member for Wallasey (Dame Angela Eagle) said about Companies House. From my constituency work, I have become very conscious of the deficiencies of the system there and the ability that fraudsters have to establish companies. There is also a danger from a security perspective, so action must be taken, and I am sure that the Government are hearing that Many Members and commentators have suggested that Russian trading should be suspended through the SWIFT banking system. I defer to others on that, but I do just observe the potential economic turmoil that that would induce and recognise that it might be necessary for us to experience pain in this country, even at a time when our own economy is fragile and when the cost of living is going up. We recognise that, because of the decade of drift that the west has allowed to take place in Russia, there may be economic pain in consequence.
Does my hon. Friend agree that SWIFT is a messaging system between banks, so cutting off other Russian banks from the messaging system is not quite the nuclear option that people suggest it is, although it would complicate matters?
As I said, I defer to others on that, but I thank my hon. Friend for that information The same applies to the impact on wholesale gas prices, which will naturally ensue as European countries in particular restrict their imports of Russian gas. That is necessary. Thankfully, we are not dependent on Russian gas to the same extent as our friends in Europe. I commend Germany for its brave decision to suspend Nord Stream 2. I hope that that will become a permanent commitment The Opposition accuse us of not doing enough. Of course there can, should and will be more steps taken, but I invite them to consider what they would be saying if we had shot off every measure possible all in one go, without consultation and without collaboration with our partners. They would be accusing us, no doubt, of precipitate, hasty action and of lack of partnership with our allies. We would probably be accused of Brexit Britain little Englandism, impotent sabre rattling, and trying to distract attention from political problems at home. They would be making those accusations if we were shooting off every possible measure in the book. Actually what we are doing is taking deliberate action. We should not mistake a measured approach for a lack of resolution. On the contrary, this is a steady, deliberate ramping up of the sanctions that are necessary, in partnership with our allies. This is the responsible way to proceed. It is the way that this Government proceeded when the Russian state attacked people on the streets of this country in Salisbury in my county of Wiltshire. It was the right action to take. It took a little while to convene an international response to that, but it was the right one What can we do beyond finance? I applaud the military commitments that have been made in recent months, and particularly those in recent weeks, including: the increase in the military support that we give to Ukraine; our commitment of further troops to Estonia and Poland; the increase in our RAF presence in Cyprus; and the dispatch of warships to the eastern Mediterranean and the Black sea. Those are all the right measures to take. Putin said rather preposterously that Russia was being encircled by NATO. That now will come true because of what he has done. I commend the Government from before this crisis for their increased funding—£20 billion extra—to our armed forces, which includes investment in cyber and in all the grey zone defences that we need to counter the sort of threats that Russia poses. I agree with what my hon. Friend the Member for Basildon and Billericay (Mr Baron) said a few moments ago. I cannot believe that we do not also need an increase in the number of men and women in uniform able to act as a deterrent to the sort of aggression that we are seeing. As I said in my intervention on him, as a nation, we need to increase development spending, diplomatic spending and defence spending I had the honour of meeting some of the soldiers going out to service part of Operation CABRIT in Estonia last year when they were training on Salisbury plain in my constituency. I want to take this opportunity to press for those soldiers to be awarded a campaign medal in recognition of their activities to defend Europe and the west as part of Operation CABRIT. Under the current circumstances, it is extremely necessary and appropriate to recognise that they are not just undertaking a training exercise; they are actually defending Europe and defending the UK. I hope that we will see a medal for our troops who are serving in eastern Europe and that we will increase our armed forces in the years to come.
May I make an observation before I start properly? The Minister for Asia and the Middle East, the right hon. Member for Cannock Chase (Amanda Milling), appeared to suggest earlier that, in the event of further Russian aggression, there would be tougher sanctions. That mirrors the prime ministerial statement that Madam Deputy Speaker read out earlier. However, in the debate on sanctions last night, the Minister for Europe and North America, the right hon. and gallant Member for Braintree (James Cleverly), said that there would be tougher sanctions as a result of what Russia “has already done”. Those two things are not the same. They may just have been slips of the tongue, but what we cannot have is confusion added to the delay, the dither and what many consider to be an already inadequate response. I would add—I think this rather mirrored the mood yesterday and I suspect mirrors the mood today—that Russia has already invaded and annexed a sovereign state. We do not have to wait until the tanks encircle Kyiv in order to take the necessary sanction action, which it is possible to do I very much welcome and support the motion we are debating today. I am glad that it refers to the Intelligence and Security Committee’s Russia report. I had a hand in that report and I am very proud of it. I shall refer to only three paragraphs—all on Russian expatriates. The part entitled “Welcoming oligarchs with open arms” ties in directly to the question of what we do about dirty money. Paragraph 49 begins: “Whilst the Russian elite have developed ties with a number of countries in recent years, it would appear that the UK has been viewed as a particularly favourable destination for Russian oligarchs and their money. It is widely recognised that the key to London’s appeal was the exploitation of the UK’s investor visa scheme, introduced in 1994,”— almost 30 years ago— “followed by the promotion of a light and limited touch to regulation, with London’s strong capital and housing markets offering sound investment opportunities.” One could easily read that last half-sentence as, “excellent opportunities to launder dirty cash,” because that is precisely what happened Paragraph 50 goes on to explain that the UK offered “ideal mechanisms by which illicit finance could be recycled through what has been referred to as the London ‘laundromat’. The money was also invested in extending patronage and building influence across a wide sphere of the British establishment—PR firms, charities, political interests, academia and cultural institutions were all willing beneficiaries of Russian money, contributing to a ‘reputation laundering’ process.” It was not simply the money that the first generation of oligarchs managed to seize with Yeltsin’s privatisations, but everything that has gone on since then—a “reputation laundering” process That leads us to the preposterous situation my hon. Friend the Member for Glasgow Central (Alison Thewliss) referred to earlier. When the Foreign Secretary was asked about £2 million of donations to the Tory party—including, the report said, to the Deputy Prime Minister and the Chancellor of the Exchequer—she said that those donors are “part of the British political system”, as if accepting donations of that sort of money was normal. It is not. No matter how many times it has been laundered or how many assets have been purchased and sold and purchased and sold to clean the cash, it is still dirty cash I understand perfectly well why a donor would wish to offer money to a political party—it buys them political influence—but I am at a bit of a loss to understand why any political party would accept such money. It does not make that party part of a normal political process; it makes it part of a racket The report went on to say that “there are a lot of Russians with very close links to Putin who are well integrated into the UK business and social scene, and accepted because of their wealth. This level of integration—in ‘Londongrad’ in particular—means that any measures now being taken by the Government are not preventative but rather constitute damage limitation.” As the hon. Member for Wallasey (Dame Angela Eagle) said earlier, this report was published in July 2020, almost two years ago. Much of the evidence is a year or two older still, and the issue of dirty money predates that. We all know what is going on. The idea that we have to debate this as part of an Opposition day, rather than actively considering the various pieces of legislation that are necessary, is quite shameful. We have spent enough time on partygate and being ambushed by cake, but when it comes to billions of pounds of stolen cash sloshing about London, we have to talk about it on an Opposition day. That is frankly a disgrace That section of the report went on to say: “It is not just the oligarchs either: the arrival of Russian money resulted in a growth industry of enablers—individuals and organisations who manage and lobby for the Russian elite in the UK. Lawyers, accountants, estate agents and PR professionals have played a role, wittingly or unwittingly, in the extension of Russian influence which is often linked to promoting the nefarious interests of the Russian state. A large private security industry has developed in the UK to service the needs of the Russian elite, in which British companies protect the oligarchs and their families, seek kompromat on competitors, and on occasion help launder money through offshore shell companies and fabricate ‘due diligence’ reports, while lawyers provide litigation support. William Browder”— the head of the global Magnitsky justice movement— “told the Committee that: ‘Russian state interests, working in conjunction with and through criminal private interests, set up a “buffer” of Westerners who become de facto Russian state agents, many unwittingly, but others with a reason to know exactly what they are doing and for whom. As a result, UK actors have to deal with Russian criminal interests masked as state interests, and Russian state interests masked by their Western agents.’” I will conclude by saying that I can think of no stronger justification for the immediate introduction of an economic crime Bill, an overseas entities Bill and the register of beneficial ownership.
I will aim my remarks very much through you, Madam Deputy Speaker, but at the Minister. There has been a lot of smoke about events; it would be nice if he could give us some light on what will actually be happening I am slightly concerned that, broadly speaking, we still do not understand as much as we should about Russian hybrid conflict, about the economics, the military, the espionage, the lawfare, which some hon. Members have referred to, the finance and the propaganda. That is something we should be much more concerned about Some hon. Members have talked about Russian past form in this area; I lived in the Soviet Union and the post-Soviet states from 1990 to 1994, and arguably the first time that paramilitaries and front groups were used was in Transnistria in 1991 and the first Georgian war in Abkhazia and South Ossetia between 1991 and 1993. We saw there a simplified version of the much bigger thing we saw in 2014 in eastern Ukraine and the annexation of the Crimea. Arguably even before that, in the dying days of the Soviet Union, the Soviets played an imperial policing role, using similar front groups and violence, in Nagorno-Karabakh as well. This practice is not new and it is very much part of the playbook In Ukraine now, the frontline is the border; in Germany, the frontline is the gas pipelines and, as many people have pointed out, the frontline in the UK flows along the Thames to the City of London. There are a series of Bills that it would be useful for the Minister to discuss and for us all to be aware of.
Does the hon. Gentleman agree that one way to stop that flow up the Thames is to abolish unincorporated associations, which are utilised not only by political parties but by Members of Parliament?
I do not know enough about that, so I will have to respect the experts’ opinions, but the hon. Gentleman makes a potentially valid point I would like us to look at the economic crime Bill; most importantly, given that not enough people are talking about it, I suggest a foreign lobbying Bill. I also respectfully suggest amendments to data protection and libel laws. Many people have already talked about the economic crime Bill, but it is shocking that we have 2,000 UK-registered companies involved in laundering and corruption cases linked to Russia, involving £80 billion—staggering sums of money—and £1.5 billion of property owned by people close to Putin or involved in crime and corruption I understand that historically the City wanted a light touch, to be more competitive than New York, but on the back of that light touch we have taken in some very unsavoury kleptocrats and oligarchs, and the tide of dirty money is damaging us. Why on earth do we need a culture of shadowy offshore trusts in this country? In what way does it help? I know it enriches a few thousand people with fancy bonuses, but in what way does it help our national interests? It is great that the Home Secretary has stopped the golden visa scheme, but really that horse bolted a long time ago On foreign lobbying laws, the UK is an influence-peddler’s paradise. Oligarchs pay for the best PR and the best reputation-launderers, and they pay for senior politicians to navigate through the rules. I understand that some people are attacking the Conservatives in this regard. I do not support wrongdoing on any side, any more than I support Alex Salmond tarting himself around Russia Today. Does anyone wish to defend Peter Mandelson’s record—
Will the hon. Gentleman give way?
I will make some progress Does anyone here respect Peter Mandelson, or does anyone want to—
Order. The hon. Gentleman must not directly criticise a Member of Parliament, and that includes peers. I would like him to change his remarks somewhat and make his point without reference to the peer he has just mentioned.
Thank you, Madam Deputy Speaker. Would anyone like to defend the actions of various peers who have defended—
Maybe we could ask the hon. Gentleman about the £5,000 donation he took from the Conservatives’ Patrons Club, which is an unincorporated association?
I have a Patrons Club on the Isle of Wight. Their structure is legal. I am afraid I do not know more about it, but if the hon. Gentleman wants more information, I am sure I can find it. I find his remark tediously parochial and completely out of character with the serious nature of this debate, and more fool him for making it.
rose—
I shall make some progress and not take another intervention, thank you so much When we are talking about influence, we need to be talking about the influence that senior peers and former Prime Ministers may offer. These are not unsavoury characters in this country but they are doing some very unsavoury business working for people who know the value of reputation-laundering and of using the City and our legal culture. The Guardian takes these things very seriously, and yet on the Scott Trust for many years, and now on The Guardian’s board, we have Geraldine Proudler. According to Bill Browder, Geraldine Proudler was on the wrong side of the Magnitsky case. She gave legal advice to people involved in allegedly organised crime with a multi-million-pound fraud that was involved ultimately in the murder of Sergei Magnitsky. So again I ask Katharine Viner: if The Guardian is so keen to make sure that the Conservatives, and indeed Labour and the SNP, obey high standards in public life, why does Geraldine Proudler sit on the Scott Trust board and now the Guardian Foundation? These are serious questions for those on both sides of the House. I do not defend those peers who have gone to work for Deripaska and other people, but neither should Opposition Members defend those peers who do the wrong thing One of the most depressing things about the Intelligence and Security Committee report on Russia was the statement from the National Crime Agency that it felt that it was unable at times to take on certain potentially bad actors because those bad actors’ pockets were so deep. I am sorry, but if the NCA is saying that it is unable to uphold the law in this country because of the wealth of the bad people it wants to go after, we are knowingly participating in the undermining of the rule of law in this country, and that is an extraordinarily serious and bad thing to be happening We had a great debate on lawfare, and the right hon. Member for Birmingham, Hodge Hill (Liam Byrne) and my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) have also talked about it. Some of the most sophisticated law firms in Britain are offering intimidation, kompromat and dirt-digging services to some of the most corrupt people on earth. When we talk about an economic crime Bill or a foreign lobbying Bill, can we also talk about amendments to data protection law and to libel law to ensure that we uphold freedom of speech and ensure that those journalists trying to do the right thing in trying to investigate bad actors are supported by the law and not hounded to financial ruin?
I congratulate Labour Front Benchers on calling this debate, because we are required to come together today to discuss, to expose and to unravel what could be the greatest coincidence in British politics. The cynical would say, in the words of Yogi Berra, that it is almost too coincidental to be a coincidence, although of course this House would not hazard such a judgment, but here it is: on the one hand we have a Government who have presided over the most comprehensive failure to tackle economic crime, which is a failure so profound that we have earned a reputation around the world as one of the world’s capitals of money laundering, yet on the other hand we have a flood-tide of money—not £2 million, not £3 million but over £4 million, and counting—that has come into Tory party coffers from generous souls with close ties to Russia. The ministerial code, for what it is worth, says that Ministers are required not only to avoid a conflict of interest but to avoid an appearance of a conflict of interest I therefore speak today in a spirit of great generosity to the Minister, because I want to try to extract him from the pickle that he now finds himself in. I am seriously concerned that Tory Ministers are now exposed to the allegation that they are quite simply poodles on roubles. In that spirit of generosity, I want to set out the two problems that the Minister will be required to resolve if he is to escape such an appearance over the weeks, months and years to come. Problem No. 1 is the gaping hole where a plan for tackling economic crime should be. We know the scale of the problem because the National Crime Agency has told us. It says that the scale of economic crime is some £100 billion a year in money laundering and £190 billion lost to fraud—a total of £290 billion. That is a significant chunk of our nation’s GDP, so this is not an insignificant problem: it is a monumental problem over which the Government are presiding. Secondly, the reputational damage is so serious that think-tanks in Washington are writing reports saying things like: “uprooting Kremlin-linked oligarchs will be a challenge given the close ties between Russian money and the United Kingdom’s ruling Conservative Party” How on earth has the Conservative party got itself into this mess? Well, it is quite a story. I am going to rattle through the 10 key steps that have led the Government to get into this mess. First, they abolished the Minister in charge of economic crime. When the Minister was appointed—[Interruption.] Well, he was appointed with the title of Minister for Security and Borders, whereas his predecessor was known as the Minister for Security and Economic Crime. So the Government are taking economic crime so seriously that they deleted it from the title of the Minister who has been asked to wind up this debate Secondly, the Government have now tasked not one, not two but 12 different agencies with tackling the problem of economic crime without going to the trouble of appointing someone to be in charge of these 12 different agencies so as to lead the charge. Thirdly, they have neglected to implement 60% of the measures in their own economic crime plan. Going through the list of measures rated “red” by the Royal United Services Institute, some of them are pretty significant, such as making sure that the police get serious about tackling fraud and economic crime Next, the Government have starved the National Crime Agency of so many resources that its director general says that it will not take on cases where it thinks the legal costs will be too high. Then they have failed to equip Companies House with the powers to check information sent in by people setting up shell companies. According to the Minister, there are now 11,000 companies on the register that still have not filed returns on who is the person with significant control, yet how many prosecutions have we had? One hundred and nineteen. It is pathetic; it is lamentable. Then they have failed to bring forward a register of beneficial ownership of property, like the multi-million-pound mansions in Westminster. Then they have failed to use our unique role in the global financial economy to light up where bad actors are doing bad things. SWIFT, the financial messaging system, is based in the UK. We are the global hub, along with New York, of financial settlement worldwide. We could be using the panorama of information to which we have access to light up bad people, to create intelligence packages and then to ensure that those people are pursued to the ends of the earth We have failed to stop our courts being used as arenas to silence journalists such as Catherine Belton and Tom Burgis, who are pursuing bad and corrupt companies. Thank God for HarperCollins and Arabella Pike because, frankly, without such brave publishing houses, we would not have the truth brought into the public domain. Then we have the Government’s failure to introduce a foreign agents registration Act, despite the fact that it works in America and Australia. To cap it all, they have failed to offer us any kind of hard timetable for the economic crime Bill, which is an omission so serious that they lost their own Minister to it in the House of Lords Those 10 elements—this 10-step decent into chaos—is why we now have a situation where the grand total of unexplained wealth orders targeted against oligarchs is zero. Apart from the Magnitsky sanctions, which came from a list of the crimes handed to us in 2007, we have not proposed any sanctions for economic crime against Russian-born individuals since 2014. Some might say that is benign neglect; others might say it is malign neglect; and others might say that the Conservative party has been paid to look the other way I am sure we were all reassured by the Secretary of State for Instagram’s appearance on “BBC Breakfast” this morning, where she—the Foreign Secretary—told a grateful nation that the Tory party vets its donors and that we must not confuse Russian heritage with proximity to President Putin. I think we would all agree with that, which is why, in the spirit of generosity and helpfulness, I offer my vetting services to those on the Conservative Front Bench this afternoon Let us start with Lubov Chernukhin, who has donated £2.1 million. The Guardian revealed that her husband, Vladimir, who was appointed deputy chairman of VEB, which was not sanctioned yesterday, received $8 million from Suleiman Kerimov, who was sanctioned by the US Treasury in 2018. The transfer to Vladimir came on 29 April 2016, mysteriously just before a donation of £1.5 million to the Conservative party. Then there is Alexander Temerko, a man who, it is said, “forged a career at the top of the Russian arms industry and had connections at the highest levels of the Kremlin” He was a former deputy chairman of Yukos Oil Company and somehow mysteriously escaped the purge of his colleagues. He has now donated £747,000. He has been working very closely with Viktor Fedotov, a director of Aquind, a source of great largesse to many Members in the House. Mr Fedotov is the former head of a subsidiary of Lukoil, and was revealed in the Pandora papers as a man who, along with two others “made fortunes from the company in the mid-2000s, around the time it was alleged to have been siphoning funds from the Russian state pipeline monopoly Transneft.” Then we have Dmitry Leus, who has donated £54,000. According to the Daily Mail, he was “found guilty of money laundering and jailed in Russia in 2004. The conviction was later overturned and he insists the prosecution was politically motivated.” Here is the mystery: he also donated to the Prince’s Foundation, which has decided to return Mr Leus’s money. The House will be amazed to hear that the Conservative party has not Then we have Mohammed Amersi. He and his wife have given £793,000 to the Conservative party. The BBC said he was involved in one of Europe’s biggest corruption scandals, which entailed $220 million being paid to a Gibraltar-based company owned by the daughter of the President of Uzbekistan. He has always insisted that his donations came from UK profits, but the Financial Times tells us that he “received $4m from a company he knew to be secretly owned by a powerful Russian”— Putin’s then telecoms Minister Then we have Murtaza Lakhani, whose firm Mercantile & Maritime has donated £500,000. This is the chap who Bloomberg tells us has been revealed as making large parts of his fortune through channelling “a $6 billion torrent of cash” from the Russian oil giant Rosneft to Kurdistan. The money flowed to a company registered in the tax haven of Belize, with a mailing address in Cyprus Then we have David Burnside, formerly of this parish. His firm has donated £200,000. Mr Burnside boasts links to senior figures in the Kremlin. The Guardian reported that he “has introduced several prominent Kremlin figures to senior Conservatives”, including Mr Putin’s old friend, Vasily Shestakov.
Order. I note that the right hon. Gentleman has a long list. I wonder whether he could just deliver it a little bit faster.
I will conclude, Madam Deputy Speaker, because I think my vetting services have been exhausted for the Front Bench. I will conclude by saying that Conservative Ministers are behaving like innocents abroad in a world that is not innocent. No wonder people are now saying that the capital of Londongrad is not Mayfair but Matthew Parker Street, home of Conservative central office. The cruel would say it is 5 Hertford Street, co-owned by Jamie Reuben, scion of the family that made its fortune in the Russian aluminium wars and, as we know, the place where the Foreign Secretary insists on her £3,000 lunches The Government have to work harder to persuade us that there is not a coincidence. They have to persuade us that they are not poodles on roubles. They have to bring forward a proper plan for tackling economic crime, not least because of the fact that the financial services industry is worth £165 billion to this country, and it employs millions of people who work hard every day. But we trade on our reputation, and right now, this Government are destroying that reputation for good.
We are doing quite well, but I have to impose an informal time limit of five minutes.
I want to make a few short remarks in favour of the motion and expressing my solidarity with our Ukrainian friends, who, as the Prime Minister rightly said, “threaten no one and ask for nothing except to live in peace and freedom.”—[Official Report, 22 February 2022; Vol. 709, c. 175.] Of course, that is the plight of so many across the globe who find their lands illegally occupied by their neighbours. I applaud our Front-Bench team for bringing this motion to the House, and I endorse entirely the remarks of my right hon. Friend the Member for Tottenham (Mr Lammy) in his excellent exposition on this Government’s failures to better regulate, control and monitor the influx of Russian oligarch moneys, among other things I have three brief points to make. First, the measures announced by the Prime Minister have been widely criticised as insufficient, and we heard from the hon. Member for Basildon and Billericay (Mr Baron) on that very point, so the criticism is well-founded and widespread. The current extent of the sanctions to three individuals and some banks—we have been told that they are not the major players—is hardly the punitive sanctions that we were led to believe would be imposed Time after time, we have seen some Government Members cuddling up to powerful Russians, many of whom have benefited from the break-up of state-owned industries in Russia to the detriment of the Russian people, and it is those Tory politicians who have had direct financial benefit. It seems more than a bit rich for the governing party of this country to talk about sanctioning the sorts of people who have been filling their party political coffers. We have heard mention of Alexander Temerko. It is true that not every Government Member has had funds from that individual, but I ask the vast legions who have had that benefit: what do they think he wants or expects of them Secondly, and worse still perhaps, we have just had the Elections Bill go through this House. One of the most dangerous provisions within it, as pointed out by Opposition Members, was the open door to political donations from overseas. This dual citizen route to influencing politics in our country will come back and bite the governing party for some considerable time to come. The Government should understand that there is great scepticism out in the country that they really mean it when they talk about being tough on Russian oligarch money or any other dodgy money coming into British politics Finally, I will finish on regulation and control. Undoubtedly, there needs to be a major overhaul of company law, which allows 761 companies to be registered above a takeaway in Somerset, with directors declaring themselves to be “Jesus Christ” or “Adolf Hitler”. Until recently, I though a slap was a form of physical violence, but it is also a SLAPP—strategic lawsuits against public participation. It is a type of litigation, or threat of litigation, that is used, as the name suggests, strategically by claimants against organisations and individuals, including NGOs, activists, academics, whistleblowers and journalists, to shut down free speech. We are not going to settle the appropriate mechanisms here and now, but as we cannot give into Putin, we cannot give into the bully boy tactics of oligarchs or anyone else who wants to abuse their power and wealth Perhaps the Government can give some thought to protecting investigative journalists, as raised by the hon. Member for Isle of Wight (Bob Seely), who have the courage to take on people, and to ensuring that agencies of the state are properly equipped and protected and have the capability and capacity to take on such people through unexplained wealth orders and other measures. We could all do with rereading the Treasury Committee’s report on economic crime. Certainly, the single enforcement body that it alludes to would go some way to providing the real teeth that are clearly necessary but sadly absent.
On a point of order, Madam Deputy Speaker. In my speech, I was going to name another Member of the House of Lords—I will not do so—who has recently taken leave of the House of Lords to work for Russian interests but does not want to declare what he is doing. Because that person has taken leave, could one mention them in a speech—or despite them taking leave, is one still not allowed to mention them?
I thank the hon. Gentleman for his point of order. My immediate answer, but I stand to be corrected if I am wrong, is that someone who has taken leave is still a Member of Parliament—a Member of the House of Lords—and must be treated as such in a debate here and not criticised directly by name. There are good reasons why we do things in this way. That is my answer to the hon. Gentleman.
I start by declaring an interest as I lived and worked in Russia from 2005 to 2008 as director of the British Council in St Petersburg. I have great respect and affection for the Russian people. The tragedy, of course, is that for centuries, with the exception of a brief period of democracy in the 1990s, Russia has been led by a succession of kleptocratic thugs who have plundered the country’s vast natural resources and ruled with total disregard for the freedoms, rights, talents and potential of the Russian people Vladimir Putin is a product of that system. He is rotten to the core. He is the embodiment of the mafia state that Russia has become. He is not a grand master of the game of geopolitical chess; he is a gangster. He has sent his army into eastern Ukraine not because he is worried about NATO, but because he is frightened of democracy and terrified of freedom. He has seen the recent popular uprisings in Belarus and Kazakhstan, and he has seen the support that is building around opposition figures such as Alexei Navalny. He knows that in Russia, when revolution comes, it is swift and decisive Let us be clear: the invasion of Ukraine has absolutely nothing to do with NATO or some grand geopolitical strategy. Putin has sent his troops across the border because a thriving, prosperous and democratic Ukraine spells disaster for him and his cronies, so they will do their utmost to destroy the hopes and aspirations of the Ukrainian people. Tragically, the international community has allowed Mr Putin to get away with it for far too long, and I am afraid that the sanctions that were announced by the Prime Minister yesterday show that we are still failing to respond with the strength that is required. Just five banks and three individuals were sanctioned, but none of the Russian banks that are of any real significance were included—for example, VTB, VEB, Alfa-Bank or Sberbank. The named individuals are also relatively minor players. Where is Abramovich? Where are Kostin and Usmanov? They should all be on the list. It was a slap on the wrist when far more hard-hitting measures were needed If we are to truly act with the robust moral authority that is required, we must get our own house in order. London has become the destination of choice for the crooks and thieves who run Russia. The cancelling of the tier 1 visa scheme over the weekend was a welcome move, but the Home Secretary’s refusal to publish the long-completed report on the scheme is deeply troubling, as it is bound to give rise to the suspicion that the Government have something to hide. Currently, 700 Russian millionaires live in the UK on the basis of tier 1 visas. What financial due diligence was done on their applications? Have the national security implications of their presence in our country been properly assessed? Have they had access to the Prime Minister or other senior members of the Government On the matter of Russians buying political influence, the Home Secretary must surely now review all the donations that have been made to the Conservative party by dual British-Russian citizens with connections to the Russian state, and she must update the House on that as a matter of urgency. The House also needs to know why only four individuals have been the subject of unexplained wealth orders since those measures were introduced in 2017 The Opposition have repeatedly warned the Government about the links between the City of London and the corridors of power in the Kremlin, but in recent years the Conservative party has received almost £4 million in donations from individuals with close links to the Russian Government, which has clearly created a conflict of interest that has prevented any meaningful action. Enough is enough. Our national security and our reputation as a country that believes in and upholds the rule of law are at stake. We need a root-and-branch overhaul of the broken system; we need an economic crime Bill; we need a registration of overseas entities Bill; we need a total overhaul of Companies House, so that it is empowered to be a guardian of propriety rather than a passive library; and we need the full implementation of the Russia report Ukraine is being attacked by a rogue state that is intent on destroying democracy, liberty and the rule of law—a state led by a thug who orders mafia-style hits on the streets of our country. We must stand firm against Mr Putin and his cronies, and we will, but the Government must also take stronger action, and they must do so now.
I think I have been here before. We have discussed the role of unincorporated associations in providing a loophole for political campaign finance in the UK, particularly for the Conservative party, and notably, the role of the Constitutional Research Council, which seeks to promote the Union in all its parts. We are all mindful of the £435,000 that it donated to the DUP during the Brexit campaign Although I knew we were sure to hear a fairly good overview of the myriad examples of Tories having their mouths full of Russian gold this afternoon, along with the excellent article by John Kampfner in this morning’s edition of The Times, I realised that it might be worth considering a longer view of the modern history of illicit finance in this political state. I support the official Opposition’s motion but I will give a broader historical narrative as to why we are where we are The excellent work done by Peter Geoghegan at openDemocracy on campaign finance and by David Leask in The Herald, as mentioned by my hon. Friend the Member for Glasgow Central (Alison Thewliss), on the abuse of Scottish limited partnerships deserves greater scrutiny. I also refer hon. Members to my Westminster Hall debate in February 2019 on the saga of unincorporated associations. The whole morass of state capture by financial interests, often from overseas, was not inevitable and could have been avoided Oliver Bullough, who has done so much to document the nexus of Russian illicit finance and political influence, has written quite a few times about the advent of the Eurodollar age, as the Soviet Union found a rather deflated 1960s City of London a willing recipient of its foreign exchange reserves and the modern practice of offshore financing was born. That was just the start, however, of the competitive advantage that the City enjoyed when the sluice gates were opened It was to the great detriment of the good people of Russia that at the very moment they were experiencing economic shock therapy and the systemic looting of their country’s great wealth, those looking for convenient places to stash the loot were welcomed—I have to say; it is a historical reality—by a new Labour Government desperate to show that they could be trusted to do right by the City. That is well documented. I will just dip into the economist Brett Christophers’ superb book “Rentier Capitalism”: “It was New Labour that in the late 1990s shrunk the City’s regulatory system into the minimalist form of the Financial Services Authority...the FSA’s architects and administrators were themselves entirely up-front about just how hands-off and permissive this pared-down new regulator would be.” The alarm bells were already ringing for those who could see what was happening in Russia after 1999. I have spoken about John Kampfner’s article in The Times today, and I think we should be really mindful of some of the other things he has said in the past It is not as though the signs were not there for the wider public. In 2006, not only did Putin’s increasingly murderous domestic agenda become clearer with the assassination of the journalist Anna Politkovskaya, but he began to demonstrate the contempt with which he saw the UK with the cruel and calculated murder of Alexander Litvinenko here in London. I am afraid that that began under the premiership of Tony Blair, and the phrase “Tough on crime, tough on the causes of crime” seems to ring a wee bit hollow We all know very well what happened next, and we have had a pretty good run through the ways that the looted wealth of the Russian people—ordinary Russians who, as I mentioned earlier, should maybe have been given the golden visas to come here and enjoy the benefits of freedom and democracy—has entered the body politic not only in buying football clubs, art galleries and prestige property, but in keeping private schools and charitable foundations, as well as Members on both sides of the other Chamber, financially solvent The UK often likes to see itself as some sort of soft underbelly of superpower, but that soft power has never been as soft an underbelly as it is now, in that too many of our ruling class have been happy to have been rubbed. We are beginning to see the results of this almost three decades-long infatuation with illicit Russian finance, and I have to say that I cannot help but wonder if we are not correct in concluding that this very fabric of the British political state really could not help itself.
It is a pleasure to follow the hon. Member for West Dunbartonshire (Martin Docherty-Hughes), and to take part in this debate. This debate is so important at this point in our history, and I think we are all disappointed that it has to take place As a child of the cold war, I remember the feeling of relief in the 1990s that the constant threat and fear of a war in Europe had been lifted, yet here we are. As a student of international relations, I studied the Cuban missile crisis, but it is only in the past few weeks that I have fully appreciated what it is like to watch and wait, and to hope that, like Khrushchev, Putin would blink first and the crisis would be averted. We all know now that that is not what is going to happen and is not what has happened There has been the so-called incursion—the invasion—of east Ukraine, and the threat of sanctions as presented by the Government was not enough to prevent it. They did not propose sufficient financial pain for Putin and his allies to give any of them pause for thought. It was not enough to protect the people of Ukraine. The people of Kyiv—it is twinned with my own city of Edinburgh, and we have shared exchanges and had receptions with them—may now face the most horrific of ordeals, and that strengthens my resolve. I am so disappointed that the action proposed by this Government was not strong enough to deter it The Liberal Democrats welcome tough sanctions on Russia, and we wish to preserve the unity that will be so important in controlling this evil—not just unity in this House, but unity with our NATO allies. However, I fear we need something stronger and more far-reaching if Putin is to take our resolve seriously—something much stronger than we have at the moment. The current list of those who will face sanctions is weak, with only three individuals on it, and it allows many of Putin’s cronies simply to get away scot-free. It is time that we used the full force of the sanction powers at our disposal, and Putin’s Russia must be treated like the rogue state it is The Government have dithered and delayed on the draft registration of overseas entities Bill for more than 2,000 days now. It went through pre-legislative scrutiny in 2018, and we are told by a Minister in the Lords that it is sat on a shelf gathering dust. The Lib Dems, on the other hand, have been doing the Government’s work for them. My hon. Friend the Member for Oxford West and Abingdon (Layla Moran) has introduced the Registration of Overseas Entities Bill, using the text of the Government’s draft Bill, and it has support from all parties of the House. Why are we not accelerating its passage through the House? We would be prepared to sit night and day to get it passed this week, and I am sure others would be too, in order to put a stop to Russian interference in the UK property market We have heard much today about the Russian money with which London is awash, as well as about the kleptocracy. We have heard about the golden visas, which have now ended, but the Government dithered and delayed, while not prepared to offer visas to the foreign nationals working at the forefront of the pandemic. We need the long and overdue report on those golden visas and who is in receipt of them We will not persuade Putin of our resolve if we do not send a stronger message immediately. If we are saying that we will get more sanctions after further action, that is not enough. Measures such as moving the champions league away from St Petersburg are essential, but they are not enough We must be both united and strong in our stance against the outrage perpetrated on the people of Ukraine. We must be united on their behalf, and we must make sure that Putin is deterred, is deterred now and does not ignore the next warning. We must keep adding layers of warning before he has invaded Ukraine—all of Ukraine—and destroyed its democracy, denied its people their freedom and begun to look elsewhere.
Order. I now have to reduce the time limit to four minutes.
It goes without saying that the response from the Government yesterday was totally inadequate. We have had a great deal of warning over a very long period of Putin’s intention and the likelihood of what happened yesterday taking place, so it really does prompt the question why we were not better prepared with stronger sanctions from the outset when he seized control of yet further parts of Ukraine We have been waiting for a considerable time for Government legislation. People have mentioned the economic crime Bill, reform of Companies House, the law to register foreign agents, the registration of overseas entities Bill and the replacement of the outdated Computer Misuse Act 1990, while the Government’s Elections Bill will enable overseas donations to be given in our political system. We have also had—nearly two years ago—the Intelligence and Security Committee report on Russia, and all the time we have been waiting for the Government to act Even if we accept the fact that the £2.3 million of donations to the Conservative party that have taken place since the Prime Minister took over the leadership of that party are legitimate, the Conservatives have to acknowledge that accepting that sort of money—while sitting on this legislation and regulation, and with the delay in action and the delay in the response to the Intelligence and Security Committee report—at best looks dodgy. We also have the photograph of the Foreign Secretary—a photograph she published herself—with Lubov Chernukhin, wife of the former Deputy Minister of Finance of Russia, who has given £1.7 million to the Conservative party. All that prompts a question about what the Government’s motives are for delaying the legislation that we need to deal with the Russian dirty money that has been laundered through the City of London Our legal system is being distorted in favour of these aggressive criminals who are using SLAPP orders to silence journalists and newspapers, and to attack publishing companies that publish books about the affairs of those individuals. Eminent law firms such as Carter-Ruck and Schillings are allowing themselves to be used to corrupt our legal system in favour of those dangerous individuals. We should be calling those law firms out, because their activities are providing an opportunity for criminals who are laundering money through the City of London to operate. They are taking blood money from those people. They are using a plethora or a confetti of letters to individuals, to stop them being able to do their jobs, or to soak up their resources and prevent them from investigating those activities. They have even gone as far as taking the Serious Fraud Office to Court. The Eurasian Natural Resources Corporation has taken a Government agency that has a duty to investigate such activities, and tried to shut it up using its resources. It has even attacked individuals in the Serious Fraud Office. That must be stopped, and the Government need to act.
This debate has exposed the gulf between what is needed to deal with illicit finance—and, one could add, what the Government say they are doing or intend to do—and what they are actually doing, which is almost nothing, in terms of either introducing measures or enforcing the measures that already there. Whether oligarchs, the companies they set up to hide behind, or agents of hostile powers, they can operate freely We heard about sanctions from the shadow Foreign Secretary in his opening remarks, from my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne) and from my hon. Friend the Member for Wallasey (Dame Angela Eagle), so we know what has to be done—there is a list of things that have to be done. There is the Russia report, and there is the economic crime report—why will not the Government act on those? That is not partisan or party political, because we also heard what Lord Agnew said, which is that what is being done is “desperately inadequate”, particularly the failure to bring forward an economic crime Bill. We heard from Lord Faulks, a former Conservative Minister, who said that the Government are turning a “blind eye” to what is going on and have done nothing to stem the flow of illicit funds, and that he was misled regarding the introduction of a property register. For all the great furore that the Home Secretary made about tier 1 visas, everyone who wanted one has got one already. This is shutting the door after the horse has bolted, and there has been no enforcement related to it. Indeed, a new type of visa will be introduced, so presumably it will start all over again In the limited time I have, I want to address the failure of regulation, enforcement and prosecution. We have heard from other Members about the failure of the courts, about Companies House, about trusts and unincorporated associations, and about how things are easily concealed. It gives me no pleasure to say this, but the Serious Fraud Office suffers from its budget being a fraction of what the company it is prosecuting has to spend on lawyers and defence. But it is also true that the head of the Serious Fraud Office is under investigation for the conduct of the Ziad Akle case. The accusation is that the SFO went after the minnows and let the sharks swim away, which is exactly what the Government are doing on sanctions. Many senior people in the SFO end up working for those very law firms we have heard about which are defending the oligarchs. What are the Government doing about that? It is a laughing stock in terms of criminal enforcement and prosecution in this country What are the Government doing about SLAPPS? We have heard about that issue several times, including in the excellent debate we had here last month, led by the right hon. Member for Haltemprice and Howden (Mr Davis) and my right hon. Friend the Member for Birmingham, Hodge Hill. They identified the way that oligarchs and companies can persecute and prosecute investigative journalism What will the Government, who love interfering with the courts, do in response to the Bloomberg v. ZXC case last week? That shows that when an investigative journalist publishes details of an individual before charge, the individual can, on the grounds of privacy, hide behind that ruling. Nothing is being done to support those who wish to expose what is wrong and everything is being done to protect that wrongdoing. The fact that there is Tory party money behind this stinks.
I am honoured to be called in this important debate and agree with all the concerns of the shadow Foreign Secretary, my right hon. Friend the Member for Tottenham (Mr Lammy), about Russian aggression and the illicit finance sustaining the Putin regime that is responsible for the aggression. That aggression threatens not just the Ukrainian people—I met a Ukrainian constituent of mine this morning and share her deep concern and love of her country—but the wider region and regions across the world. For example, in Bosnia, and in Republika Srpska in particular, ongoing Russian interference is threatening peace. Putin’s dirty money coming through London is a big part of that, and it is right that we have time to discuss it in this place and urge the Government to do so much more. President Roosevelt said that the key to diplomacy is to “speak softly and carry a big stick”, but the Government are doing totally the opposite: they are talking tough and acting very soft In Putney, when we look around the big developments by the river, we see dark windows. We wonder who owns those houses, why they are they not living in them and why they are putting up prices for us in London. Of course, illicit money thrives on secrecy and darkness, and that is what we see here What would Labour do were we in government now? We would do so much more. First, the Elections Bill is being debated in the House of Lords tomorrow, so there is time to look again at Labour’s new clause 2, which would have cut the connection between the increased number of overseas voters that we will have and the open door for donations that will be allowed to flood through with the increased allowance. Why do we not simply cut that connection? I hope that the Minister will address that. I urge him to bring new clause 2 back in the Lords tomorrow Labour would also implement all the recommendations of the Russia report. We would push for Russia to be excluded from financial mechanisms such as SWIFT and ban trading on Russian sovereign debt. We would tackle Putin’s campaign of misinformation. We would work with our European allies to ensure that the Nord Stream 2 pipeline is cancelled. We would take steps to ensure a robust and transparent register of beneficial owners of overseas entities. We would urgently reform Companies House. We would bring in the economic crime Bill that has been promised for six years. We would fix unexplained wealth orders. We would also not leave the sanctions at just three oligarchs and five banks, which shows that we have one weak and out-of-touch Government. By contrast, the EU has announced sanctions for the 351 Duma members and, in the US, Biden has already announced sanctions on the country’s sovereign debt. Our allies are going further than us. To say that we have to go in step with them is just an excuse; actually, we are not in step. I hope that the Minister will say something about that It is time to bring an end to the Tory party donations from Russian oligarchs that are linked to all this slow action by the Government—surely there is a link. If there is no such link, the Government should do far more, show us that and put the security of the Ukrainian people and the British people before those who pollute our financial system and wish us harm.
I commend the Labour party on the motion. It is an important consideration and it is right that, as well as supporting Ukraine and condemning Russian aggression, we should look deeper into how the Kremlin finances itself as well as our own resilience against bad actors and dirty money. It is not a pretty picture. It is frustrating because, as my hon. Friend the Member for Glasgow Central (Alison Thewliss) said, the SNP has been calling for action on it for years, and although we do not have the legal powers in Holyrood to act ourselves for Scotland, the UK Government do have the power but do not have the desire to act and have done far too little, far too late I listened carefully to the Minister’s response to the shadow Foreign Secretary’s speech. I have much respect for her and wish her a long and happy career at the Dispatch Box, but she must be reassured to know that she has a great future in stand-up comedy if it all goes wrong. It is flatly not credible to say that the UK Government have treated this as a priority. Actions do count. Actions do matter. We can judge the Government by their record on this issue and it is a pretty poor one. The numbers are stark: at least 2,189 companies involved in laundering £82 billion of Russian dirty cash. Transparency International calculates that Russians accused of corruption or links to the Kremlin own about at least £1.5 billion-worth of property in the UK. Billions more is owned by opaque offshore trusts. We do not know who owns them. The sanctions announced yesterday are wholly insufficient to deter future aggression or punish malfeasance in the past. We want more, but I would make a wider point: it is probably worth cracking down on dirty cash anyway and making sure that we are resilient to bad actors in the future. The fact that we have vast tracts of Scotland owned by opaque trusts, and we do not actually know who owns them, is a scandal and it is well past time we deal with it I hope the Government recognise the opportunity they have. I take Labour Members at face value that there is an opportunity for the Government here. There is a consensus in the House to act and a real willingness to see progress. We do need an economic crime Act. We do need an overseas entities Act. We do need a register of beneficial ownership. We do need reform of and investment in Companies House. We also need to see the full implementation of the Russia report and the “Moscow’s Gold” report. All those things will strengthen our democracy, strengthen our financial integrity, strengthen our resilience against bad actors, and strengthen the faith of the people of these islands in democracy on these islands. All those things are worth doing. There is a need to act. There is a consensus for action. There is no excuse for delay It is a matter of fact that the Conservative party has received £2.3 million of Russian-linked donations since the Prime Minister was elected. Continued delay on this range of issues will only fuel suspicion that that delay is for the very worst reasons. I hope those on the Treasury Bench recognise the opportunity they have on this issue.
In our armoury of responses to countering Russian aggression, tackling illicit finance should be one of our most powerful weapons. We all recognise that Putin’s actions on Monday were a gross violation of international law and showed complete disregard for the sovereignty of Ukraine, but the sanctions announced yesterday were widely recognised as more feeble than the Prime Minister’s tennis backhand. The scale of the proliferation of illicit finance, particularly in London, has allowed Putin and his cronies to spread their dark money through the west, and with it a dark web of influence. As it trickles down through the system, it impacts upon our politics, our economy, our housing market and our public finances Under the leadership of the current Prime Minister, the Conservative party has accepted £2.3 million from donors of Russia-linked money in recent years. It also accepted £160,000 from a Russian donor for one tennis match—we could call that the ultimate backhander. The Pandora papers revealed that Mohamed Amersi, a major Conservative party donor who funded the Prime Minister’s campaign to become Conservative leader, advised on a deal that was later found to be a £220 million bribe for the daughter of the then President of Uzbekistan. Like many of my colleagues, I want to see any money with links back to Putin’s regime returned. Shedding our politics from the influence of dubious cash is in the interests of us all and our democracy, and bolsters our firm stance against Russia As we have heard, London is the “laundromat” for corrupt money. Those are not my words, but the words of the Russia report, published in July 2020. Half of the estate agents advertising properties for sale in London at £5 million failed to register with Her Majesty’s Revenue and Customs for anti-money-laundering supervision in 2019, or had failed to pay their annual fees for that. A Treasury report published in December confirmed that luxury London homes are an “attractive method to launder illicit funds” We all know that the housing market is broken, but part of the reason for that is the impact of illicit money flushing through the market and pushing up house prices for all our constituents in all parts of the land Perhaps worst of all is the illicit finance that is costing the British taxpayer dearly. The National Crime Agency estimates that money laundering costs the British economy £100 million—almost five times what we spend on social care. Recognising the toxic effect of illicit finance, it is time to act. If not now, when Six years since the then Prime Minister, David Cameron, promised to introduce a register of beneficial owners of overseas entities, we are still waiting. In Prime Minister’s questions today, the Prime Minister confirmed that an economic crime Bill will not be introduced in this parliamentary Session. We do not have time for dither and delay. We need to know who the real beneficiaries of shell companies are to end the attractive secrecy of the UK market for fraudulent cash. In that vein, Companies House is no longer fit for purpose and is not doing the job that we need it to. The Treasury Committee agreed that reform of Companies House has been too slow and is “essential” to end the scourge of illicit money Finally, let me turn to the question of why the Government have failed to use unexplained wealth orders, which are an effective method to prevent or deal with illicit finance. In theory, they provide an opportunity to confiscate assets without ever having to prove that the property was obtained from criminal activity, but only nine orders have been issued relating to four cases, as of February 2022. As the Russia report stated, it is far too easy for businesses that have been investing their dirty money in the UK for many years to find lawyers and accountants to somehow explain their wealth. We need to ensure that the Government have effective tools at their disposal that are fit for purpose and challenge those who enable illicit finance as well as benefit from it.
I thank all the right hon. and hon. Members who have contributed to this debate. Many points have been made over the past few hours, but two in particular stand out. First, there was a consensus across all parts of the House—with the exception of one Member who spoke—that the Government have not gone anywhere near far enough with the package of sanctions that was announced yesterday. Secondly, there is an enormous gulf between the rhetoric employed by Ministers and the lack of action that we have seen on illicit finance over many years Let me reiterate the Opposition’s position on these issues. We support the Government in taking a firm stand against Russian aggression and in favour of Ukraine’s freedom to decide its future. We support solidarity with our NATO allies. We reject the imperialist notion of “spheres of influence” by which Russia seeks to limit the choices and freedoms of its neighbours. There can, of course, always be a nationalist appeal to people who speak the same language living across different borders, but if we follow that route, we will be in a never-ending cycle of ethnically based conflicts. No one has pointed out the dangers of that road more eloquently this week than Martin Kimani, the Kenyan ambassador to the UN Security Council, who urged the world to leave behind the mindset of dead empires. His warning not to take refuge in nostalgia and grievance but to look to the future was a leadership lesson for our times. What a contrast between that powerful eloquence and the recent essay on Ukraine by President Putin. Anyone reading that will have seen declarations of love and common history laced with threats and denial of freedom on every single page, and the desperate, needy pleas for respect.
I thank the right hon. Member, my friend, for allowing me to intervene. The real worry is that Putin’s forces have now gone into the area where his proxy forces have operated: Luhansk and Donetsk. Two thirds of those provinces are still in Ukraine, yet the Duma has said that they are now Russian, so at any moment, we can expect Russian troops to go across those demarcation lines. We therefore have to be extremely strong in response and our sanctions have to be much harder.
I respect the right hon. Member’s experience and agree absolutely with his intervention. Let us call things what they are: not breakaway republics, but step-by-step annexation; not peacekeepers, but an invading force. We have seen the pattern over and over again The former High Representative of the European Union, Baroness Ashton, has spoken about President Putin’s strategy of the wedge. He seizes part of the territory of a neighbouring country—Abkhazia and South Ossetia in Georgia, or parts of the Donbas in Ukraine. By holding the wedge, he seeks to limit the freedom of those countries to join international associations. He seeks to absorb the rest of the country in managing the conflict that he has created. He uses up resources, he creates a refugee problem and, if he cannot take over neighbouring countries entirely, he at least ensures that they are not free to develop as they wish because they are not whole and their freedom is compromised That “Greater Russia” mindset has been behind President Putin’s policy towards Ukraine for the past eight years. Right now, it is not fully clear whether he will be content just to hold the wedge or whether he will go further, but even what he has done so far is already limiting Ukraine’s options and choices for the future How should we respond? Some lessons have been learned. The solidarity shown by the United States, the United Kingdom and most European countries in recent weeks has been important and impressive. Calling out the troop build-up and the creation of flashpoint incidents and false flag pretexts has shone a welcome light on what is happening. The development of open source intelligence has exposed the ham-fisted propaganda emerging from Russia and its troll factories Allied unity is important, but so too is allied resolve. In the past, we have set red lines, but when they were breached we have drawn back. The result in Syria was the repeated use of chemical weapons and the ability for Russia to dictate the course of events for years afterwards. This time, if we talk about maximum sanctions for military action, we have to be prepared to carry them out. Who really believes that sanctioning just three people who have already been on the US list for years will deter President Putin from acting further? No wonder the Royal United Services Institute, the respected defence and foreign policy think-tank, described yesterday’s actions as like having “turned up to a gunfight with a peashooter.” The Government’s actions have to match their rhetoric. Yesterday, that simply was not the case. The Minister’s defence is that this is simply the first tranche and that there is more to come, but what is the case for waiting, given what we have seen? Is there anything in President Putin’s actions in recent days to suggest that he is in compromise mode? He is not. He is testing us every hour Not only do we need a sanctions regime that matches the seriousness of what has been done, but we need determined action to clean up what the Intelligence and Security Committee has called the London laundromat.
Will the right hon. Gentleman give way?
I will press on, because we are short of time Our country and our capital city should not be a welcome home for illicit finance, the proceeds of looting and the proceeds of kleptocracy. There is a basic problem: if sanctions are to work, we have to know what people own. The Government have been sitting on a registration of overseas entities Bill for four years, and it has been six years since it was first talked about. How can sanctions be effective if we do not have legislation to show us what people own? Queen’s Speech after Queen’s Speech has passed without action. Only a few weeks ago, the Government’s own counter-fraud Minister resigned, saying that that legislation was once again to be set aside. Today, it looks as if it may be delayed further. It must be brought forward as soon as possible At the heart of money laundering is the use of shell companies to hide the true nature of ownership behind layer after layer of needless complexity. That lack of transparency is the fraudster’s friend. Reform of Companies House is long overdue, but, again, pledges to reform it have not been matched by action. If we are serious about policing kleptocracy and fraud, we have to change this situation and empower our register of companies to be a regulator, not just a library of information—and sometimes a library of dodgy information at that. The recommendations of the Intelligence and Security Committee’s report on Russia have to be implemented. Our agencies have to be resourced to use the powers that they have, otherwise the legislation that we pass in this place is just bits of paper. We also have to be alive to the network of enablers who act as the praetorian guard for the oligarchs here in the UK As has already been said, it is not only money that is laundered here, but also reputations. The donation to a university, the purchase of a football club, the sponsoring of a gallery, donations to the Conservative party—all that is designed to burnish the reputations of those involved. In the whole history of this, one fact stands out: the interests of finance have trumped those of security. Then, when people call this out, there is the punitive legal action designed to shut people up and designed to stop the brave investigative journalists whom we should be thanking for the work they have done in exposing what is happening The Prime Minister’s defence yesterday was to accuse those of us who question many of these actions of Russophobia, and indeed the Minister repeated that today in her opening remarks. Does she, and does he, really think that the CVs of those involved in this are those of ordinary Russians? Russia is a country where the vast majority of the wealth is owned by about 500 people. We should not confuse those who live off Russia’s wealth with the sweat and toil of the Russian people who created the wealth in the first place. That is no defence for the funding of the Conservative party, and it is no defence for the actions of oligarchs. How does the Prime Minister think they made their wealth in the first place? They did it with the support and backing of the Russian regime. It is the wealth of the Russian people that is being laundered, not the proceeds of exceptional talent or enterprise or creativity or ingenuity We stand at a dangerous moment, one that requires not only unity between allies but resolve, for weakness here will be noticed by those elsewhere in the world who are looking for territorial gains. This is not just a matter of finance; it is a matter of national security, and that means the maximum package of actions. It means sticking to the red lines that we have set. That is what we urge the Government to do, and it is action that today’s Labour party will support.
I welcome this important debate. I thank the Opposition for securing it, and I am grateful for the manner in which the shadow Foreign Secretary opened it, the manner in which the shadow Chief Secretary to the Treasury closed it, and the tone in which it has largely, if not quite completely, been conducted Of course Government must be scrutinised and must be held to account. In our oppositional parliamentary liberal democracy, that is what we do, and I think it is what this House does rather well. But is also a great strength of this House that we can come together to show the unity of our ultimate purpose—the defence of freedom and democracy at home and abroad—and I believe that, collectively, we have done that today In his statement yesterday, the Prime Minister was clear. In recognising the supposed independence of the so-called people’s republics of Donetsk and Luhansk in eastern Ukraine, President Putin has flagrantly violated international law. Ukraine is a sovereign country, and has a right to choose its own security arrangements. It is clear that the deployment of Russian forces in sovereign Ukrainian territory amounts to a renewed invasion of the country. The Prime Minister referred yesterday to “our valiant Ukrainian friends”, and added: “We will keep faith with them in the critical days that lie ahead, and whatever happens, Britain will not waver in our resolve.”—[Official Report, 22 February 2022; Vol. 709, c. 175.] The United Kingdom also has an absolute commitment to defend our NATO allies. We have already doubled the size of our deployment in Estonia, where the British Army leads the NATO battlegroup. Yesterday the UK, in co-ordination with international partners, announced a first wave of targeted sanctions. I say a first wave, but in fact more than 270 individuals are already sanctioned under previous programmes. Yesterday’s measures placed banks worth £37 billion under sanctions, in addition to more oligarchs, and there is more to come. My hon. Friend the Member for Basildon and Billericay (Mr Baron) rightly mentioned the importance of calibration. It is also vital that after this first barrage we continue to work in lockstep with our friends and allies around the world, as my hon. Friend the Member for Devizes (Danny Kruger) rightly pointed out. These measures will hit more oligarchs and banks close to the Kremlin, sending a clear message that the UK will use our economic heft to inflict pain on the Putin regime and degrade its strategic interests The UK will also sanction those members of the Duma and the Federation Council who voted to recognise the independence of Donetsk and Luhansk, violating Ukraine’s territory. We will extend the territorial sanctions imposed on Crimea to non-Government controlled territory in the so-called breakaway republics of Donetsk and Luhansk, and we are ready to go much further if Russia does not pull back from the brink. In the event of further aggressive acts against Ukraine from Russia, we have an unprecedented package of further sanctions ready to go. I will not, from the Dispatch Box, go into future designations or who we will target and with what measure, but Moscow should be clear that we will use these powers to maximum effect if Russia further invades Ukraine Corruption and illicit finance are the lifeblood of the kleptocratic Russian Government, and individuals associated with the Russian state can try to further their influence through investment. This Government are strongly committed to tackling—and we continue to act against—the threat from illicit finance. Through the economic crime plan launched in 2019, we are overhauling our suspicious activity reports framework against money laundering, including from Russia. We are increasing the number of financial investigators in the National Crime Agency, and we are substantially increasing funding for our economic crime response, with an additional £400 million over the next three years, funded in part by a new economic crime levy.
I want to clarify one point. The Minister seemed to imply that further sanctions would be contingent on a further roll-forward of Russian troops, but that is not what the Minister for Europe and North America, the right hon. Member for Braintree (James Cleverly) said to the House yesterday. He said that there would be further sanctions regardless of whether there was any further advance. Can the Minister clarify that point?
We will work together in lockstep with our friends and allies around the world. I will not go into detail now about what future designations might be or the precise nature of them, but as I said earlier, Moscow should know that we will use these measures to their full effect.
Will the Minister give way?
Unfortunately we are overrunning, and I will not get through responding to the points made in the debate if I take a lot of interventions. I can do either, but I think it is important that I respond to the points made in the debate Specifically in relation to Russian illicit finance, the National Crime Agency has increased the number of investigations into corrupt elites. Some of that response will be visible through law enforcement, policy and international engagement. Other options are less visible but that does not mean they are not impactful. We are going further. It is vital in the fight against dirty money that we increase transparency in order to know who ultimately controls and owns a company or property, and the Prime Minister is committed to bringing forward new legislation to include reforms to Companies House and to limited partnerships, and to introducing the register of overseas entities beneficial ownership Bill Last week the Home Secretary announced the closure of the tier 1 investor visa scheme—
rose—
Just a moment We want innovators to invest in Britain, and the replacement visa programme will be about creating a positive economic impact, not just volume of cash. I was about to come on to responding to the points that the hon. Member for Wallasey (Dame Angela Eagle) made about the Intelligence and Security Committee report, but I will wait to hear what she has to say now.
I appreciate that. Given that a register of overseas beneficiaries has been promised since 2015, will the Minister say when we are going to get it? All we get is Prime Ministers telling us that it is coming, but it never arrives.
I am not making an announcement today on the programme of debates and legislation in this House. We are committed to these measures, and I will say a little more about them The hon. Lady and others spoke about the ISC report. Since the Salisbury attack, we have made real progress in disrupting malign influence in the UK. At that time, as hon. Members will recall, 23 Russian intelligence officers in diplomatic roles were expelled from this country. The Counter-Terrorism and Border Security Act 2019 strengthened the powers of our police to stop, question, detain and search individuals travelling through UK ports to determine whether they are involved in hostile-state activity, and we have strengthened our scrutiny of inward investment through the National Security and Investment Act 2021 We are looking to bring forward legislation to strengthen our powers to counter threats from foreign states and to update our counter-espionage laws. This will provide the security services and law enforcement agencies with the tools they need to tackle the wide range of future threats and evolving tactics of other states My hon. Friend the Member for Isle of Wight (Bob Seely) brings particular expertise to this debate, and he spoke about the range of ways in which other states may seek to harm us. I reassure him of our intent to bring forward legislation on precisely that range of state threats My hon. Friend the Member for Basildon and Billericay spoke about the wider forces of history, the need to defend and nurture democracy and the twin role of defence and soft power, and I absolutely agree. I reassure the hon. Member for Glasgow Central (Alison Thewliss), who speaks for the Scottish National party, that the Government remain committed to reforming limited partnership law and recognise the important role of limited partnerships My hon. Friend the Member for Devizes spoke of the financial system’s critical role and the possible leverage effect. I reassure him that nothing is off the table. The hon. Member for Aberavon (Stephen Kinnock) asked about the report on tier 1 visas issued between 2008 and 2015, and I confirm that we will publish that report. The right hon. Member for Birmingham, Hodge Hill (Liam Byrne) asked, among other things, about the economic crime plan. Thirty-four of 52 actions are now complete, with good progress having been made on the remaining 18 We take illicit finance very seriously. The UK is an open economy, it is an attractive place to live and it has one of the world’s leading financial centres. That combination attracts many legitimate investors, but I do not underestimate the extent of the illegitimate, nor do I understate the imperative to clamp down on it We have the global human rights sanctions and the anti-corruption sanctions. Building on the Proceeds of Crime Act 2002, the Criminal Finances Act 2017 brought in account freezing and unexplained wealth orders. We reformed and have now ended tier 1 visas. We created the National Economic Crime Centre and set out the economic crime plan, and we are going further by increasing investment in law enforcement, reforming anti-money laundering alerts and embarking on a major reform of Companies House We already have a register of beneficial ownership and will introduce a register specific to real estate, and we will further strengthen unexplained wealth orders. Those key economic crime measures are an urgent priority for this Government, as we recognise the collective threat that serious criminals, kleptocrats and corrupt elites present to our financial system and national security. Dirty money and kleptocracy are at the heart of the Putin regime, and they are not welcome. This Government will use all the powers at our disposal against individuals and entities that seek to harm our democracy and our people Question put and agreed to. Resolved, That this House expresses solidarity with the people of Ukraine, and supports their sovereignty and Ukraine’s territorial integrity; condemns Russian aggression and emphasises the UK’s commitment to NATO; resolves to end illicit finance that rewards and sustains the Putin regime in Russia; calls on the Government to introduce an Economic Crime Bill, an Overseas Entities Bill and a register of beneficial ownership by the end of March 2022; and further calls on the Foreign Secretary to make a statement to this House on the implementation of the recommendations of the Intelligence and Security Committee’s Russia Report, HC 632, published on 21 July 2020.
I beg to move, That this House notes the significant increase in the numbers of people housed in non-commissioned exempt accommodation under successive Conservative Governments; regrets the opportunities that this increase has provided for unscrupulous operators to exploit vulnerable individuals for financial gain at the taxpayers’ expense; recognises that a range of factors have driven the marked growth of this sector including a chronic shortage of genuinely affordable housing, reductions in funding for housing-related support, new barriers to access for single adults requiring social rented housing or mainstream privately rented housing, and a weakening of regulation and oversight; further regrets the detrimental impact that the growth of poor quality non-commissioned exempt accommodation is having on the health and well-being of those vulnerable individuals placed in it and on the public purse; and calls on the Government to introduce a package of emergency measures designed to secure immediate improvements in the quality of non-commissioned exempt accommodation and associated support, to ensure claims for exempt Housing Benefit consistently provide value for money and to drive unscrupulous operators out of the sector We move from the global to the very, very local. There is a scandal quietly unfolding in communities across this country, and today we set out our determination that the Government will finally take this seriously and act to put it right. Across Britain, from Blackpool to Birmingham, houses are being bought or rented supposedly to house vulnerable people in accommodation with extra care and help. Instead, these shameless profiteers are leaving vulnerable people languishing in disgusting, unsafe housing, and people who badly need our help are denied it. The taxpayer is paying for all of this and it is blighting entire neighbourhoods It was right to ensure that those who genuinely provide or need supported housing could access enhanced housing benefit, because the cost of housing vulnerable people who need care and support is undeniably higher. Before I came to this place, I worked for Centrepoint, whose work with care leavers, and young people with mental health problems and addiction issues is second to none. It takes time, care and commitment to help those young people build the lives they deserve. But it is utterly wrong that we have allowed this system to be abused and used by people who are destroying entire communities Very many good organisations do provide proper support through supported exempt accommodation, and they are as appalled as we are at this scandal—it cannot continue. Colleagues on the Opposition Benches have raised this issue time and again with Ministers. How can it possibly be that nearly 18 months after the Government recognised the problem and commissioned pilots to consider how to solve it, this is still going on? Over the past few years, this problem has skyrocketed. More than 150,000 households in this country are living in exempt accommodation—that is a 62% increase in five years. Not all of them are bad placements—some of them are a lifeline—but it is crystal clear that there is an growing scandal of rogue operators, who know how to cheat the system, and are making life a misery for the people they are supposed to care for and the people who live in these proud communities. They deserve so much better and we are determined that they are going to get it. I would like to thank colleagues from across this House, and particularly Members from Birmingham and Bristol, who have long recognised the growing scandal and campaigned hard to make it right. They are here today and I am sure that they will have plenty to say to the Minister about it. Many of our local councils, too, are doing great work to address the problem head-on. For example, Birmingham City Council has introduced greater scrutiny of new exempt benefit claims and encourages all providers to sign up to a set of quality standards for exempt accommodation. It has joined a partnership of voluntary and statutory agencies to produce a charter of rights for residents of supported exempt accommodation. But such efforts are thwarted by weak laws and a Government that will not grant them the powers to take action This Government have not even given us the information that we deserve. It took a Freedom of Information Act request from the charity Crisis to tell us how many tenancies there are—we do not know where they are. There has been no announcement about the pilots for several months. We have not even been told whether they have ended, what they have concluded or the timetable for when action is going to be taken. But we do know this: the law is too weak. It says a provider must deliver care, support and supervision that is, in legal terms, “more than minimal”. But “more than minimal” has no firm definition, test or criteria It could mean having a manager who visits the property once in a blue moon or installing a CCTV system. As my hon. Friend the Member for Birmingham, Yardley (Jess Phillips) told the Minister in a recent Westminster Hall debate, in one shocking incident a key worker visited a property where the tenant had just been murdered, mistook the murderer for the victim and told her mother she was fine—she was dead We will hear many terrible stories today from colleagues in this House that show that this “more than minimal” definition is allowing these disgraceful firms and individuals to milk the taxpayer at the expense of some of the most vulnerable people in our country; they are destroying neighbourhoods and we are determined that the stories of those people affected will be heard in the highest levels of Government today.
What do the local authorities or governments say when a specific case is reported of totally unsatisfactory accommodation in the way the hon. Lady alleges?
They say, “Give us the powers to act. Give us the powers and the laws that we need and we will take action.” The people who lead authorities throughout the country have skin in the game: they live in these communities. These are not just the people they are elected to represent; they are friends, family and neighbours, as well as constituents. The people who lead authorities care deeply about taking action but simply do not have the power to do so.
Analysis carried out by the homelessness charity St Mungo’s estimates that between 2009 and 2018 funding for single homeless people fell by a shocking £1 billion—a cut of more than 50%. Does my hon. Friend agree that 10 years of devastating Conservative cuts are the cause of the growth in exempt accommodation and that the Government must now properly fund local authorities so that they can provide the homeless accommodation and build the council homes that we need?
My hon. Friend is absolutely right, particularly on the latter point about building social housing. She is right, too, to say that it is a symptom of a housing market that is fundamentally broken. The warning light is flashing on the dashboard, but for too long we simply have not recognised it. It was precisely in the city of my hon. Friend, a superb MP for Coventry, that the Prime Minister launched his levelling-up agenda and created the levelling-up Department, promising to wrap his arms around people and communities and to help them to level up. What we are talking about is precisely the opposite.
The issue raised by the right hon. Member for Wokingham (John Redwood) is not right, because once a person comes to an area and offers themselves as a person in need of services, the council has obligations under legislation to provide services. It is not local authorities but the Government who have not sorted this issue out.
I thank my hon. Friend for his work to draw attention to this appalling scandal As the Minister knows, it is not unusual to find properties in complete disrepair that would not be considered fit for human habitation in any way. It is not unusual for vulnerable women to be housed in properties with dangerous men and for them to be at risk of attack or to have been attacked Many years ago, I was prompted to enter elected politics as a councillor in the London Borough of Hammersmith, where I then lived, by the story of a 16-year-old girl in bed and breakfast accommodation at the height of the housing crisis at the time. She told me she had been raped by the owner of the property and nothing had been done—she was still in that accommodation. I went to see Hammersmith Council, which was superb and acted to close the facility down, but it had the powers to do so. I thought we had left those sorts of days behind. When I heard from my hon. Friends the stories about what is happening in their communities and how many times they have raised issues to no avail, I simply could not believe that in 2022 we stand here and allow this to continue.
With one particular problematic property in Bristol, we found we could get only so far with the Charity Commission, because we had questions about the management structure; we could get a little way in trying to enforce planning permission, because too many people were living there; and adjustments kept being made to housing benefit—if we said that they were not offering more than minimal support, they would add a little bit of support. It was so frustrating and we were going round and round the houses. We need a set of regulations that we can go in and enforce straight away.
I pay tribute to my hon. Friend for her work on this issue. It was clear from the recent Westminster Hall debate led by my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) that there was a particular problem in Birmingham, but my hon. Friend the Member for Bristol East (Kerry McCarthy) did a sterling job in that debate of reminding us that this is a problem not just in Birmingham but in Bristol and right throughout the country. All the Members who contributed to that debate spoke with one voice: we know what the problem is and what needs to be done; all we are lacking is a Government who will get behind what needs to be done and make sure that it happens.
The hon. Lady says that she entered local government to deal with this issue. She entered local government in 2006, following a housing crisis after eight years of Labour Government. Does she not agree with me that the real, fundamental issue, under parties of all shades for too many years, is the lack of homes being built? There has been a massive increase in the past few years, but is that not something we need to do more fundamentally for the entire housing sector?
Let me just say that I really regret this partisan tone. The hon. Gentleman is absolutely right to say that I entered local politics in 2006 having worked not just with children in care and young homeless teenagers at Centrepoint, but with child refugees, campaigning against practices such as those at Yarl’s Wood immigration detention centre that had happened under a Conservative Government but were also happening under a Labour Government. I will fight injustice wherever I find it and whoever is responsible for it, and I will stand up for people who do not have a voice. That is the great gift and privilege of this place. We are handed a megaphone through which we can shout loudly and make things change for some of the most vulnerable people in this country, and that is what we should do. I gently remind him, too, that the record under this Government has been appalling. Social housing builds have fallen off a cliff and housing-related support has been stripped away. Talk to any of the organisations, including Centrepoint, which I was proud to work for, and they will tell you that that situation is causing enormous harm not just to the people affected, but to many of the people who live in those communities, and it has to change.
I do not mind being partisan on this issue. Although the Labour Government, between 1997 and 2010, should have built more social housing, the absolute brutal fact of the matter is that the number of social lettings available for tenants has fallen from just under 400,000 to 300,000 in the past decade, and that is on this Government’s watch and they must take responsibility for it.
I defer to my hon. Friend on that. She has been a superb champion for housing reform in this country over many, many years, including under the last Labour Government, and particularly in the past decade when we have seen exactly what she describes unfold. She has done more to reform and tighten up the law in this area through the Homes (Fitness for Human Habitation) Act 2018 than the Government have done in the past 12 years, so, absolutely, I defer to her on that.
I am grateful to my hon. Friend for giving way. Does she also agree that one problem with the shortage of housing supply is that Government support goes in completely the wrong direction, particularly in terms of buy to let, which I will speak about later if I get called, whereby billions of pounds are going to support private landlords?
My right hon. Friend is right: it is a waste. It is a waste of human potential, a waste of good, thriving neighbourhoods, and a waste of taxpayers’ money. It is more than that actually. The distortion in the housing market in these communities means that working families are being priced out of good, viable family homes. Other social tenants cannot access them either; when a person cannot get enhanced housing benefits, they are subject to the local housing allowance. The regulation is non-existent. Providers are exempt from planning and licensing laws that enable councils to limit the types and proliferation of houses of multiple occupation. The social housing regulator does not have the powers to deal with rogue operators as they set themselves up as small operators outside the direct oversight of the regulator. The effect of all of that is that whole streets and communities become saturated with family homes that are converted into HMOs, providing exempt accommodation and housing vulnerable tenants who are left without support. That creates problems for the whole community, and it is all happening in plain sight What is worse is that the people who are most affected—as I said to the hon. Member for North West Durham (Mr Holden)—are those who cannot do anything about it. Only the Government have the power to make changes for the better, which is why today we are calling for a package of emergency measures to set this situation right.
I am a fellow Greater Manchester MP. We have the “Places for Everyone” scheme that has been submitted to the Government. I am very sympathetic to a lot of what the hon. Lady has been talking about. In Wigan and Bury over many, many years—from the way that the hon. Lady is looking at me, I think she knows the important point that I am making—there has been a dearth of action by Labour-controlled councils to build and to provide affordable social housing. Does she share with me a disappointment that there is no plan within “Places for Everyone” to deliver that?
The hon. Gentleman should spend some time with my hon. Friend the Member for Westminster North (Ms Buck), because she would set him straight very quickly. I know his community very well—it is where I grew up and went to college, and it is where my mum lives—and he has a superb Labour council that backs its community at every turn and was part of dramatically improving the life chances of young people in its community and supporting the community. When Bury Football Club was collapsing, much to our desperate regret, it was his Labour council who stood by the community, while the Government stood and watched as the club fell apart.
Will the hon. Lady give way?
I think the hon. Gentleman should listen for once. His Labour council has stood in as a lifeline for people as support was stripped away over 12 years of Tory Government. It is about time that he not only acknowledged that, but got behind his local community and started standing up to this Government. The regulation is non-existent. This is all happening in plain sight. The regulations must be toughened up. We need a proper test for what counts as care, support or supervision set out in law. It is right of the Minister to say, as I heard him say in the Westminster Hall debate, that that must be done thoughtfully and with care, but that is no excuse for inaction. Surely it is not beyond the collective wit of Government to come up with a scheme that roots out the bad providers and protects the good We need a regulator with the full range of powers needed to deal with the problem, with a fit and proper person test that must be passed before any provider can set itself up to care for vulnerable people. Local authorities need the power to reject applications on grounds of saturation or oversupply in a specific area and to insist on community impact assessments that have the power to prevent such over-saturation.
I refer to my entry in the Register of Members’ Financial Interests; I am a former local Labour councillor who tried to deal with these issues in our communities. Those powers are there, but does my hon. Friend agree that central Government frustrated local councils from using article 4 directions, for example, to manage that saturation, and that we need to move beyond that?
My hon. Friend is absolutely right. Local councils cannot do this on their own. That is why we have brought the issue to the House today and why my hon. Friend the Member for Birmingham, Ladywood brought it to Westminster Hall a few weeks ago. It is why we will keep going and keep on until councils have the powers and the support they need to end this scandal for good We need an inspections regime to keep providers on their toes and a regulator that has full powers of enforcement, both to clamp down on those who will still try to flout the system, and to destroy the business model of the rogue operators who know that they carry on in plain sight and get away with it. I know the Minister cares about this issue—he spoke very movingly about it in the Westminster Hall debate—but caring is not the same as acting These rogue operators have effectively been handed a licence by the Government to exploit people, abuse public money and destroy neighbourhoods. Bobby Kennedy once said that, “there is another kind of violence, slower but just as deadly, destructive as the shot or the bomb in the night. This is the violence of institutions; indifference and inaction and slow decay.” We cannot continue to be violently indifferent to what is being inflicted on communities up and down this country What is worse about this situation, for me, is that it is overseen by the Government Department that was created to support and rebuild proud neighbourhoods, towns, villages and cities—the places that once powered this country and built our wealth and influence, and could do so again. The Prime Minister stood in Coventry and promised to give us the tools to change our areas for the better. He said that, “all they need is the right people to believe in them, to lead them and to invest in them and for Government to get behind them, and that is what we are going to do”, but they have not. I ask the Minister today to set this right. Can he tell his boss that this is not like the fight he just had and lost with the Treasury? He does not have to beg the Chancellor for funds and permission that are not forthcoming. He simply has to get his own Department in order and deliver. Otherwise, what is the Department for, if it cannot even get behind our communities when the power to do so lies squarely within its remit What were once modest, quiet residential streets, home to tight-knit communities, are becoming no-go areas, plagued by rogue operators, some with links to organised crime. People who work hard and try hard are left, for all their efforts, watching their community go to rack and ruin. As my hon. Friend the Member for Birmingham, Ladywood has said many times, people are in utter despair. They are faced with a choice between leaving the places that they have always loved and called home or tolerating what is now an intolerable situation. That is no choice at all. We should not ask them to bear this for a single day longer. I commend this motion to the House.
Could I encourage people who are intending to speak to actually stand, because otherwise I will not know?
I think it goes without saying that the matter we are here to discuss today is one of the utmost seriousness and utmost importance. It has far-reaching implications that go beyond the housing benefit bill and impact on the lives of hundreds of people who are among the most vulnerable in our society. There is no greater priority for any Government than protecting the welfare of our citizens and, wherever possible, preventing people from finding themselves living in accommodation that is poor in terms of quality and security During my years working for YMCA Birmingham, I saw first-hand just how tough and life-limiting it can be for people living in these kinds of homes, but I also saw the transformational difference that genuinely good-quality supported exempt accommodation makes to people, so, to put it mildly, I have a strong personal interest in us getting this right.
The fact that this debate is about non-commissioned exempt accommodation goes to the heart of it, because in an ideal situation Bristol would be able to commission all the supported housing that it needed to look after people in need within its own city boundaries. The situation we are getting now is suppliers moving in and buying up housing in inner-city areas, with other councils not taking responsibility for their own residents. If the Minister speaks to the hon. Member for Weston-super-Mare (John Penrose), he will find that there is a massive issue with people being sent there. Does he agree that this housing ought to be commissioned, if possible, rather than leaving it to the private sector?
I strongly suspect that during the course of my speech there will be many interventions that I find myself in agreement with, and that is one example. Speaking personally, I have heard of people parking up outside prisons waiting for prisoners to leave and then taking them off to non-commissioned exempt accommodation. It is beholden on all of us to try to make sure that there is good-quality accommodation, that people are appropriately signposted to it, and —the hon. Lady is absolutely right—that wherever possible it is commissioned rather than non-commissioned accommodation I guess my job, and the job of this Government, is to improve the life chances of people living in these kinds of situations, and that is one of the main reasons that I came into politics. However, poorly conceived quick-fix answers are not going to help us to solve this problem. We are all in agreement on the urgency of the issue and we all share a determination to change things for the better, but if we want to tackle the problems that plague this sector, then the way to do it is through considered and meaningful reforms. What the sector needs is not sticking plasters but more support for the high-quality supported housing providers who are delivering services that are genuinely changing people’s lives. The whole country is facing difficult economic headwinds, and those providers who are fulfilling their roles and helping to protect people by keeping a roof over their heads during this time of difficulty need support. I am therefore glad that this issue is drawing considerable interest from parliamentarians. Every single Member of this House will have constituents affected by it, and I am certain that through our collective efforts and collaboration we can work together across the House to solve these problems This kind of accommodation often acts as a safety net for people who have fallen on hard times. It helps them to get back on their feet and gives them the platform from which they can rebuild their lives. Its importance is difficult to overstate. Despite that, however, there are flagrant examples of rogue providers who are abusing the system and misusing taxpayers’ money by not providing anywhere near the right standard of services for their residents. This failure is intertwined with the harsh reality of the concentrated proliferation of exempt accommodation in specific areas and cities. That is bringing its own set of challenges, with pockets of neighbourhood issues, antisocial behaviour and criminal behaviour, which is completely unacceptable We are not sitting on our hands. We have introduced a range of curbs to stem the growth of these organisations in areas right across the country, including in Birmingham. The Housing and Communities Research Group have combined with the Birmingham Safeguarding Adults Board to play a pivotal role in highlighting the growing number of shoddy, second-rate units that have been allowed to develop unchecked in Birmingham. Off the back of that, officials in my Department have worked tirelessly with Birmingham City Council and local charities to unpick these issues and to enhance our understanding of them. That work is already beginning to bring to light the full scale of the problem, its underlying drivers and, more importantly, the impact it has on residents and their communities.
Has the Minister made sure that all future contracts are properly set up and policed at the beginning, so that the Government know what they are buying?
My right hon. Friend makes an interesting point, but we leave those decisions to councils that are commissioning locally. I guess it is up to us to try to ensure appropriate standards against which such accommodation is measured and then to give them the necessary powers to enforce that. Personally, I think that councils already have a considerable number of powers. I am not disagreeing with Opposition Members about what powers are required; I am just saying that I would like to see the existing powers used to the absolute max before we necessarily go reaching for others. If people feel they do not have the necessary powers, I would consider it not inappropriate for the Government to legislate, but we need to consider that carefully We are committed to finding the right approach to this issue, and we invested £5 million in a number of pilots in recent months to support the worst-affected areas, including Birmingham, Blackburn with Darwen, Blackpool, Bristol and Hull. Through the injection of those funds, we have been working with local authorities to test approaches to improving the quality of this type of accommodation. We chose these specific areas partly because of the existing commitment to tackle these issues, and I pay tribute to the local authorities, which have worked collegiately and collaboratively with us during the pilots To take Bristol as an example, it has been conducting thorough assessments of new schemes and providers for some time. The council was able to use its funding to complete its work in summer last year. Meanwhile, Hull’s supported accommodation review team was implemented in 2019, and the council has already shown a strong commitment to making the changes needed to solve the problems besetting exempt accommodation. Through the pilot, it was able to fund a large part of its programme and to take its approach to that programme one step further. As the House would expect, we know that the need stretches beyond these pilot areas and that local authorities in other parts of the country want to invest in tackling these problems, too.
This is a little frustrating, because there is a strong sense that we agree about this, yet it is difficult to work out why nothing yet has been done. The pilots were initiated in October 2020, so why have they not concluded and reported, and why have we not got a timetable by which action will be taken? Perhaps the Minister can give us that today.
I have a horrible feeling that I will mention this point now and repeat it subsequently if I am not able to recalibrate in the course of my speech. We have the report from those pilots, and we are working with authorities and officials in my Department to unpick it and to ensure that we completely understand what the information we have gathered is telling us and that any changes we deploy in the future are appropriate. I completely accept and understand the hon. Lady’s frustration. I am keen to see that report published as quickly as possible, and I am sure I will repeat that point later in my speech—my apologies for the duplication Some places have taken their inspiration from the work of those pilots and have set up teams bringing together different expertise, including housing benefit and environmental health officers, to focus on emerging issues. We have heard of, and been inspired by, the initiative shown by local authorities such as Nottingham, which have implemented multidisciplinary approaches to supported housing within the council and with key external partners that have a critical role to play in the experience of supported housing tenants. That set-up enables local authorities to keep a constant stream of information going about rogue providers and to conduct consistent and thorough assessments of those organisations and their ability to deliver good support and good outcomes for tenants My Department has also been speaking to local authorities in Derby, Cannock Chase and Staffordshire, and to councils across Greater Manchester and Lancashire on those issues. We are engaging with them on how they are progressing. On top of that, I am delighted that work is taking place across boundaries as we are encouraging councils to share good practice so that others can apply it. For example, in Blackburn, housing benefit officers have been working closely with other local authorities in Manchester and Lancashire, discussing and learning from each other’s experience while sharing their knowledge on the common issues that they are encountering locally The local pilots have been critical to helping us to understand how the issues are playing out in different places, but we know that they will not solve the issues on their own. At a national level, the Government have continued to act and to raise the bar on the standard of accommodation across the board. In 2020, the Department published the “Supported housing: national statement of expectations”, which was vital in setting out the Government’s vision for better ways of working in supported housing and for introducing much higher minimum standards in accommodation The guidance gave providers and councils a clear vision from the Government of exactly what good looks like while highlighting where providers and councils are working in a joined-up fashion to drive up quality. Ministers and officials have also engaged with councils, housing providers, the regulator of social housing and other regulatory bodies to help us to improve our understanding of the issues and to refine our approach Although I have not yet received the report, I assure hon. Members that the work of the pilots has already delivered, and is delivering, real results by creating the kind of models for best practice that councils will be able to adopt. In Birmingham, a charter of rights for residents of supported housing has been developed along with a programme of support reviews and scrutiny of housing benefit claims. In Blackpool, the council has carried out a review of the support provided in accommodation for victims of domestic abuse to ensure that it is sufficient and tailored. We have seen great examples in other pilots of local government and the community working together to improve supported exempt accommodation Once published and made available to interested parties, the evaluation report will help us to tailor what action is needed and will be taken in future, but this is a complex area. It is important to take the time to consider the next steps carefully to ensure that we get them right. We must be careful to avoid knee-jerk measures that could have unforeseen consequences and only serve to make life harder for residents and the majority of good providers, who we would not wish to see inadvertently pushed out of the vital work that they do in the area.
I hear the good work that the Minister is doing on the pilots, but what is to stop a rogue landlord, who wants to just take the cash and provide no services, carrying on as before in the pilot areas that he is talking about?
The hon. Lady gives me the opportunity to make an important point. The “more than minimal” line was not prescribed in law—to a degree, one might say that it is even worse than that, because it came about through case law and legal challenge. Landlords and the services that they provide are a difficult area and are difficult for councils to challenge Fortunately, through the pilots, we have been able to help to educate council officers and explain best practice so that they have been able to challenge. The problem is that that needs to be focused and done all the time. Obviously, any council can challenge the support that is being provided, but that requires the council to put in the effort—perhaps to go round and visit the property and speak to the tenants to understand the support that is being provided—and determine whether it feels that meets the threshold and subsequently challenge. Part of the problem is that councils have done that, but because of the low level, they have lost such challenges. We need to ensure that we are helping those providers because there are a lot of good providers out there. We need to do our best to support and encourage them and then, I hope, signpost people to the appropriate accommodation for them. I appreciate and accept the difficult situation, but as I say, I hope that we will understand best practice better from the pilots and share it more widely. As I have said, should legislative changes be required, that is not something we would shy away from.
But this is bigger than just the regulation. What we have in the most deprived communities, such as Walton and Anfield, is property management companies in London, Milton Keynes and other parts of the country buying up swathes of property to run a supported housing racket. It needs intervention from Government.
Just as a particular example, it is possible for councils to investigate such properties, and where landlords are seen to be letting out unsafe properties, they can apply for banning orders and fines of up to £30,000 are available, so powers are available—
indicated dissent.
I appreciate that the hon. Gentleman is shaking his head, but I would just say that councils need to be encouraged to use the legislation already available to them to the max before we reach for a legislative answer to the problem.
The Minister is well aware that, if councils make a decision not to provide housing benefit and they are challenged in a court of law, they will lose such cases because the law itself is not sufficiently tight to prevent the abuse that is occurring. I would like to push the Minister: he has implied that he does not want to move quickly on tightening up the regulations because he is concerned about the impact that would have on the good providers, which we all agree are trying to do the best they can in difficult circumstances, but what is it about tightening up the regulations that would be so onerous for the good providers and take out the bad providers? The way I see it, the good providers are doing what they should be doing anyway, and it is only the bad providers that would be targeted by tightening up the regulations. I really do want to hear from him what he thinks would be onerous on the good providers if he tightens up the regulations.
I agree largely with what the hon. Lady says, but on what other burdens we may place on people to meet the barriers to entry or the conditions we set, we are talking about providers that work on very low margins, and any further legislative burden placed on them may just push them out of the market. On my reservation to act quickly, I am very keen to deal with this problem as quickly as we can, and I strongly suspect that she and I will be having many conversations in the coming weeks and months. I am hoping that progress will be made—so we will talk again It is interesting that the hon. Lady intervened at that point, because I was about to refer to the Westminster Hall debate she held recently. One of the things that struck me about that debate was that very well-tempered, very well-informed and very passionate contributions were made across the Chamber, and it feels to me as though the spirit of that debate will be extended today in the way we discuss this problem and tackle it in the future. I think we should continue in that tone, because this is not a political issue. It is something we all care about passionately, and we can all see that rogue landlords are taking money and using it inappropriately when we are talking about some of the most vulnerable people in society Finally, there are some exceptional providers out there that provide great-quality accommodation. They have very passionate and dedicated staff, and I would hate to think that they were in any way tarred with the brush of these rogue providers. As well as dealing with the rogue landlords, we should celebrate the success and the great work that is done by others for some of the most vulnerable in society. I look forward to the rest of the debate.
I thank the Minister for the tone of his response to my hon. Friend the Member for Wigan (Lisa Nandy). Perhaps we can wait to see whether the actions match that tone. I take issue with him on a point he made a few moments ago, which was that this is not a political issue. For as long as this issue exists, without any further regulation or resources to resolve it, it is political. We are not necessarily trying to turn it into a party political issue, but we need a political solution to sort it out I rise to support the motion in the name of my right hon. and learned Friend the Leader of the Opposition, my hon. Friend the Member for Wigan and others. My hon. Friend the Member for Wigan put the case with characteristic clarity and force, so I will not repeat her arguments. I do, however, support the approach of the homelessness charity Crisis, which calls on the Government to outline when they plan to publish the findings and evaluations of exempt accommodation pilots in Birmingham, Hull, Blackpool, Bristol and Blackburn. The Minister referred to those pilots a few moments ago in his speech, and I did not see in anything he said any reason why their findings cannot be published. Will he reflect on whether it would be helpful if a lot of other organisations had the opportunity to look at those findings and make helpful suggestions Secondly, Crisis calls on the Government to identify ways to close loopholes in the regulatory frameworks that oversee the provision of exempt accommodation, while at the same time ensuring that local authorities are adequately resourced and supported to implement that oversight framework. As others have made clear, local authorities cannot do what they do not have the powers or resources to do. Thirdly, Crisis calls for an improvement in the data captured about exempt housing benefit claims, so that future statistics can provide an accurate picture of the scale of the provision and trends. Finally, it calls on the Government to develop and strengthen the national statement of expectations for supported housing, so as to provide an effective quality assurance for all forms of exempt accommodation. If the Minister has not already read those recommendations, I hope he will look at them and consider where he can go with them in the short term, because they are important For the remainder of my speech I want to deal with the broader context of the problem as referred to in the motion, such as the way the private rented sector is regulated, buy-to-let support from the Government, and how financial support is given. There are currently—even I was shocked by this—4.4 million households in the country who rent their homes from a private landlord. That figure is from 2019-20, so it is likely to be an underestimate of the true scale. The English housing survey of 2019 estimated that 23% of homes in the sector—about 1.1 million—do not meet the decent homes standard. That compares with just 12% of homes in the social rented sector, which is still unacceptable but considerably lower. There is genuine cause for concern that local authority enforcement powers cannot be used as consistently and forcefully as they should be, because of the resources and appropriate regulations. As the Marmot review concluded, that has an impact on the health, safety and wellbeing of those who rent from private landlords. In Knowsley, we have about 7,300 private renters—people who rent from private landlords—who are a considerable source of complaints that I have to try to deal with, as the local MP, along with local councillors. I am sure that other colleagues find the same A report by the Collaborative Centre for Housing Evidence published in August 2020 made these recommendations, which I fully support. First, “advice and guidance available to local authorities on regulating” the private rented sector should be improved. Secondly, local authorities need better data on the private rented sector in England, so “a national registration system of all landlords and letting agents should be introduced” —and that should be done quickly Thirdly: “Local authorities should receive, and allocate, adequate funding to develop appropriate and effective responses to the changing nature and context of the PRS.” Fourthly: “Clearer sentencing guidelines need to be provided to criminal courts and tribunals to ensure that punishment is proportionate to the nature of the offence.” Finally: “Trading standards should have the power to serve civil penalties against the company directors who are the controlling figures behind a non-compliant company.” It is fair to conclude that the power imbalance between tenants and private landlords puts tenants at a risk of eviction or rent rises when they legitimately seek repairs and maintenance to their homes. The same concerns apply to exempt accommodation, where people are in a vulnerable situation and unable to use the resources available to them to pursue that There is also concern about a lack of understanding of rights and responsibilities on the part of landlords and tenants. Research commissioned by Citizens Advice in 2019 entitled “Getting the house in order: How to improve standards in the private rented sector” highlighted the lack of understanding and knowledge of housing in the private rented sector. It found that nine out of 10 tenants did not know whether a repairing responsibility was theirs or their landlord’s—how can they assert their rights when they do not know what they are? One in four landlords were unable to correctly identify any of the potential outcomes of failing to meet their obligations towards tenants, and one in three landlords found it difficult to keep up with rules and regulations. If the people letting properties do not understand, what chance have the tenants got I return to the buy-to-let scheme and its effect on the sector. What public policy objective does the scheme and increases in the private rented sector serve? It is worth noting that the number of people with property wealth outside their main residence rose from 3.6 million in 2001 to 5.5 million in 2014-15. I have been unable to find more up-to-date figures, but, again, that almost certainly underestimates the picture now. Buy-to-let is the largest contributing factor to the growth of private landlords. The system is attractive for landlords because they get mortgage interest tax relief on private rented property and, tragically, because shorthold tenancies enable them to evict tenants easily. But it is hardly a panacea for giving tenants more security of access to decent homes In the eight years from 2008 to 2016, additional properties, which includes second homes—people have them for all sorts of reasons; I do not question that—accounted for £6 trillion of property wealth. That is a staggering sum—we talk about international conflicts costing that sort of money—and that requires us to pay serious attention to it According to the English Private Landlord Survey, there are some 1.5 million private landlords, while other studies put the figure as high as 1.7 million. Either way, it is a source of prolific growth that has led to further intergenerational inequality. Second homes are owned by some of the wealthiest members of each generation, including private landlords, and predominantly by those born in the 1950s and 1960s. The net effect is that more of today’s young adults will not be able to become homeowners and will have no choice other than to rent in the private rented sector The policy implications of those trends are that additional properties should be taxed at least as heavily, if not more so, than primary residences. The Resolution Foundation’s commission on intergenerational inequality recommended: halving the rates of stamp duty on main properties at a cost of £2.7 billion across Great Britain in 2020, with existing first-time buyer reliefs retained; introducing a time-limited capital gains reduction for owners of multiple properties looking to exit the market when they sell to a first-time buyer; and replacing council tax with a new progressive property tax, which I think is widely accepted as important and necessary As I move towards the end of my speech, it is worth returning to the question I posed earlier: what public policy objective does the buy-to-let scheme and the consequent growth of private landlords serve? Given that a decent home should be a right, it cannot be the case that in a prolonged period of a national shortage of housing, which was referred to earlier, the source of additional housing should be through private landlords who, at best, see them as a source of profit and, unfortunately, in some cases, as a way of laundering dirty money, whether from home or abroad. From my own city region and my own constituency, I know that a lot of drug money is being laundered into private landlord lets. In some cases—the Government really should be worried about this—I suspect they are being subsidised by the Government through the buy-to-let scheme. That, surely, cannot be an acceptable way to deal with things The Government should be helping people in housing need into either the social rented sector or owner occupation. That applies equally to exempted property. As a country, we urgently need to change direction, so that the right to a decent home is a primary policy objective and that the onward march of the private rented sector is halted in its tracks.
It is a pleasure to follow the right hon. Member for Knowsley (Sir George Howarth), who made a lot of important points. I agree with him and I welcome the tone of the debate. This is an incredibly important issue and I welcome the consensus we are hearing. A lot of Members mentioned big cities, where there is clearly a very big problem, but I would like to flag that it is not limited by geography, social class or anything like that. So-called wealthy areas still suffer from pockets of deprivation. People in those areas still have vulnerabilities—mental health and domestic abuse know no dividing lines—so there is a wider application that makes it even more important that we discuss this issue, and that consensus is very useful It is almost a truism to say that everyone deserves a stable, secure and supported environment in which to live and thrive. That is a human right and when people do not have that, it makes everything else worse. This affects the most vulnerable in our society doubly because they already have needs, and then not having that environment impacts on them in a different way. I saw that time and again in my decade as a magistrate. People came before us with complex support needs and them having the right support, including housing and supported housing, was a big part of that.
My hon. Friend is making some excellent points. In a previous life, I was a criminal defence solicitor for 16 years. I used to stand up and say, as the main point of my mitigation, “Can you sentence this person to a house?”, because a house is stability. Does she agree that some of the problems that we have heard today mean that rehabilitation and some of the real issues that go the heart of the criminal justice system are ignored?
I thank my hon. Friend; I am trying to make exactly that point. Having a revolving door in the criminal justice system does not help anyone. It does not help victims or perpetrators. Supported housing and getting people the right support at the right time, in the context of secure, safe and decent housing, to a decent standard, is very much part of the solution. I welcome the Minister’s comments because he recognises that, as do the Government. It is important to recognise that there are many organisations out there providing caring support and working tirelessly to do so in conjunction with local councils. I am sure that we all welcome that across the House and want to expand the cohort of good, responsible, caring providers We must focus on the rogue providers that we are talking about, because they are a scourge on this activity and on the efforts of so many good providers. Rogue providers profit on the back of the most vulnerable in our society, and that damages not only the most vulnerable, but taxpayers and our society in a wider context. We have heard from the Minister and seen from Government actions that that has been recognised. We recognise how important that is and how important it is to drive up standards I welcome the Minister’s extra detail about the five pilot projects and the more than £5 million that has gone into supporting them. This is about learning the lessons, not putting on a sticking plaster. It is about bringing innovation, new ideas and experience to how we tackle this issue across the country. The national statement of expectations, setting minimum standards, helps in that regard. I hear comments about the flaws in them but that is an important concept that we need to focus on and constantly review to improve those standards all the time When I was a magistrate, I specialised in domestic abuse courts, and I was privileged to sit on the Bill Committee last year for what became the Domestic Abuse Act 2021. I want to emphasise how important that Act was in bringing together so many different elements that recognise women and children—the whole family—as victims of domestic abuse and in bringing into that equation the importance of safety, security and protective accommodation for women and children affected by domestic abuse. That exemplifies the Government’s commitment, because that issue was intrinsic to the Bill, and that lifeline was supported by £125 million of funding During the pandemic and since we have seen a focus on rough sleeping from the Government. The fact that this area involves domestic abuse, mental and physical vulnerabilities and rough sleeping shows us how complex it is, with multifaceted approaches needed to different problems. We have invested more than £200 million to deliver the commitment to provide 14,500 bed spaces, plus another £433 million for the rough sleeping accommodation programme. It is not a one-size-fits-all approach, but the actions of the Government prove that there is a commitment not only to improve, constantly change and review where we are, but to provide the funding that goes along with that. I welcome the debate, welcome the Minister’s comments and welcome the consensus across the House.
At any one time, there will always be tens of thousands—probably hundreds of thousands—of people throughout our society who need help and support, including housing support. They are the most vulnerable people any of us will deal with. They include people leaving prison, people leaving the National Asylum Support Service, people fleeing domestic violence, and people whose homelessness is made worse by factors such as substance dependence or mental health needs. Without the right housing support and the support that wraps around housing, the circumstances that leave them vulnerable will be made dramatically worse I do not believe that there was a golden age—there is a degree of consensus in that respect. However, I do not think it is possible to argue that there were not conditions in place years ago whose absence has led to the present situation, which in some parts of the country is nothing less than a crisis. Many people at a point of vulnerability could once have accessed social housing and/or intervention and support from local authorities, including through schemes such as Supporting People that simply no longer exist. As a consequence, many of those people are left adrift, as my right hon. Friend the Member for Knowsley (Sir George Howarth) said, at the bottom end of a private rented sector that is unregulated, as has been well documented, or in conditions that are now classified as being part of exempt accommodation If we get this right, and many providers do get it right, the experience of supported housing will transform people’s lives and give them an opportunity. Often, their needs are transitional and they are able to get back on their feet after fleeing domestic violence or coming out of prison. That is exactly what we want—again, there is cross-party agreement. I commend the many individuals, charities and other organisations working in the field; they are often underpaid, and they deserve all our thanks for working in extremely challenging circumstances If we get this wrong, we will find that we are wasting public money at scale—as I believe we are doing—and letting down extremely vulnerable people. I do not think it an exaggeration to say that in some cases we are casting them back into the kind of crisis of physical or mental health from which we are notionally trying to help them escape. As I am sure hon. Members who represent constituencies more directly affected than mine will say, the situation is also causing a crisis in neighbourhoods because of the over-concentration of some of the poorest types of accommodation. This has been happening at an escalating pace over the past five or six years. There are now 150,000 people in the sector: the numbers have gone up by well over half in the past few years I am well aware, and want to hear from colleagues, that exempt accommodation and its associated problems are overwhelmingly concentrated in areas such as the midlands and in cities such as Leeds and Sheffield. In a way it is no surprise, because the landlords and providers who see an opportunity to make money—this has been described as a gold rush—will exploit cheap accommodation, particularly houses in multiple occupation, that they can buy cheaply and rent out at the maximum level they can extort from the state, providing next to no services in exchange. They walk away rich, and their tenants and residents are left in terrible circumstances Central London has largely escaped the worst of that, simply because it is clearly less profitable for landlords to move into that market, and less easy to buy up and make a killing. However, it is striking that some of the largest apparent increases—here I must sound a note of caution about the data that we should all be able to share, data that I would love the Government to have more of and to be able to tell us more about—are now occurring in inner London, including my own borough We do not know for certain whether all the accommodation in this sector was classified on the same date—the information is not always comparable or reliable—but I can say that while there is a clear economic argument for exempt accommodation to be based in cheaper areas, some of this appears to be less about the economic drivers than about landlords and providers talking to each other, seeing opportunities in a particular area, and then piling in and exploiting those opportunities. Sometimes when the market becomes saturated, or a local authority such as Birmingham starts working effectively to clamp down in a particular area, they will up sticks and move somewhere else where they think they can make a killing. Some of that is likely to happen in London, but it could happen anywhere in the country. There is a danger that a bit of a whack-a-mole is going on, and that the whole process is too slow for anyone to keep track of what is going on in the real world, because it is likely that the crisis currently affecting cities such as Birmingham will be somewhere else in a few months’ time Why have we seen this situation emerge, and what do we need to do about it? The first point is that we know very little. We need more information from the pilots; we have had too little, too late. The truth is that a deregulatory approach in areas where we should not have deregulated has left the Government in the dark, and that needs to change Secondly, it is clear that the decade-long local authority funding crisis plays a major role. Supporting People was a valuable programme, and the ring fence was lifted during a time of reasonable economic success when local authorities were being properly supported for the work that they were doing. However, as a result of the removal of the ring fence combined with the crisis in local authority funding, we saw £1.6 billion disappear from the sector as local authorities had to deal with the crisis in statutory services, particularly care services, and a number of people with significant but less often statutory care needs were neglected as a consequence If local authorities cannot provide funding for support services, that will inevitably have an impact on the quality of care that residents receive. It means that the only funding available to cross-subsidise service costs comes from the profit that landlords make on rents. The end of the Supporting People programme and the quality assurance framework that accompanied it, subsequently compounded by reductions in social security after 2011, created the conditions that led to the emergence of some of the poorest-quality services and the consequent risk to residents. It is worth pointing out that Supporting People had a built-in regulatory framework because of the nature of the contracting system, and of course that went too. The decade-long downward pressure on other housing options, about which we have already heard, was another factor. The social housing grant was halved in 2010, and housing support for renters was also slashed, which left hundreds of thousands of people in housing need competing at the bottom of the private rented market Thirdly—and, in my view, most importantly—there are significant gaps in the relevant regulatory systems which the ruthless and the indifferent will always exploit to their own advantage. As Inside Housing makes clear in a characteristically excellent analysis, “case law states that there only needs to be a ‘more than minimal’ level of care and support to qualify as ‘exempt’, meaning some providers can reap huge rental yields” while providing almost no support So, we have a situation where exempt accommodation is not required to meet any specific property standards or standards of management and where many properties are exempt from the licensing requirements that otherwise apply to houses in multiple occupation The Minister was keen to stress the role that local authorities should have in inspection and regulation, but it is worth noting that environmental health services on the frontline of this kind of regulation have taken a major hit from 10 years of reduced spending in local government. Not all local authorities will apply the same degree of rigour and interest in this field, but there is no doubt that the lack of resources available for environmental health officers is a critical part of the problem. So, once again we find ourselves in a situation where those most in need receive some of the weakest protection, with consequences for them and, where concentrations of these properties build up, for their neighbours. Moving away from a regulatory framework that is enforced by the Government and by local government to a situation in which the subsidy applies to individual residents through the housing benefit system means that we are relying on those very vulnerable people to exercise some degree of control themselves and to try to enforce standards on their own. When they have so little bargaining power, that is not going to be realistic There is much that can be done to improve the situation, not least through the better management of housing stock through licensing, through the requirement for providers to meet a fit and proper person test, through better information sharing and through tougher penalties being used against landlords who breach the rules or who get around the rules by setting up a new company after having been found to be in breach. But changes to the regulatory framework have to backed by inspection and, where necessary, enforcement. It is simply no good, as we have seen so clearly in recent years, to set new rules and simply hope that everyone will behave themselves. Some of the providers operate with goodwill, but they will always be undercut by the rogues. The fact is that the issues in the exempt accommodation sector do not exist in a vacuum. If we undermine support and housing services generally, this is where we will inevitably end up. The Government need to bear down on what has been a regulatory failure, but also to look at the bigger picture; otherwise, they will be shutting more stable doors for many years to come.
It is a genuine honour to follow the hon. Member for Westminster North (Ms Buck). We have sat through many meetings of the all-party parliamentary group on legal aid over many months. She personifies the best of this place, in that what motivates her is hopefully what motivates all of us here: the desire to find solutions. Solutions are never simple, however, and this is a very important debate on a hugely significant issue Many different strands feed into the solutions that we need to address this issue, but the underlying problem—dare I say it—is one of levelling up. The sector contains accommodation that is provided for those with support needs. It is the aim and desire of this Government’s policy, of the Opposition and of every politician here that the solutions to those support needs are bespoke and are seen to help, to drive forward change in a person’s life and to give them the best chance to enrich their life with positive experiences. However, that is not happening. In certain parts of the country, rogue landlords are charging the taxpayer a fortune and essentially providing no support whatsoever. That is absolutely morally bankrupt We are very lucky, in that the Minister for Housing, my right hon. Friend the Member for Pudsey (Stuart Andrew), is a genuinely good man. Having spoken to him about this, I know that the words he says are genuinely meant. He wants to find a solution. He wants to work with the Opposition, and I am delighted by the tone of this debate. He is a good man and I know that he will work to ensure that we have a response that is appropriate to address some of these needs. We have heard a number of interesting speeches, and the right hon. Member for Knowsley (Sir George Howarth) made a very good speech highlighting the housing market and buy to let. He asked what we as politicians wanted to do to set up a housing market that worked for people. I think he was suggesting—he will correct me if I am wrong—that we should ban second homeowners.
I did say that there were also a lot of legitimate reasons for people wanting to own a second home. What I am concerned about is those who are acquiring additional properties just in order to let them.
The right hon. Gentleman raises a fair point As I said in my intervention on the shadow Secretary of State, the motion says the sector is being impacted by “a chronic shortage of genuinely affordable housing, reductions in funding for housing-related support, new barriers to access for single adults requiring social rented housing” I agree. For a single person in my borough it is nigh on impossible to get any accommodation whatsoever. As I said to my hon. Friend the Member for Hertford and Stortford (Julie Marson), I battled for 16 years to get housing for clients with the most acute social problems. I told court after court that unless these people were put somewhere with appropriate support and stable accommodation, the sentence imposed by the justice system would be pointless, because they would come back. I said the same thing time and again, and nothing ever changed. We must be open and honest, and we must not be critical. We have to think about how we can improve the housing stock in all our boroughs. When I start my contribution by saying that we do not have enough housing for people in my borough, there is clearly something wrong and we have to do something about it We have a plan called “Places for Everyone” on Greater Manchester’s strategic housing need. It has been submitted to the Secretary of State, and I am sure it will come across the Minister’s path at some point. Such documents will affect all our areas, and certainly the areas that the shadow Secretary of State and I represent, for years to come. In a document of well over 300 pages, I can find virtually no reference to social housing or social rented housing. This is our strategic housing plan to meet the needs of individuals in Bury and elsewhere Throughout my 10 years as a councillor in Bury, I said that our housing stock is far too expensive. It costs more than £300,000 to buy a three-bedroom house in the vast majority of my constituency in the north of England, which is beyond people, certainly people with support needs. There is a glaring and obvious need to build social rented housing and genuinely affordable housing in Bury. There are brownfield sites in the borough that could be used for this purpose, and we still do not have it. We can talk about sticking plasters to address the problem, but we also have to focus on the long-term strategy to overcome it The only such provision in Greater Manchester’s strategic plan for the next 25 years says: “Make provision for affordable housing in accordance with local planning policy requirements, equivalent to at least 25% of the dwellings on the site and across a range of housing types and sizes (with an affordable housing tenure split of 60% social or affordable rented and 40% affordable home ownership)” In a document of many hundreds of pages, that is it. That is literally it. There is no bespoke plan—the shadow Secretary of State has disappeared—whether it is in Wigan, Rochdale or wherever it may be. Unless we have that plan, social rented housing will not be at the centre of public policy. Local authorities cannot run away from this. The temptation of local authorities of all political persuasions is always to blame the Government for everything.
Is the hon. Gentleman not aware that local authorities cannot put anything about social rented housing in their strategic plan without a Government commitment to fund it? My council, Hounslow, is building 1,300 council homes, almost all of it from the council’s own proceeds. That is it, and the council is doing it at a slower rate than the right to buy. Even at this rate, the council is losing council homes because it does not have the funding from central Government. We were building hundreds of thousands of new council homes in previous decades because they were funded by Conservative and Labour Governments, and he needs to be challenging his Government to do that now.
I thank the hon. Lady for that intervention, but, in respect of Greater Manchester, I think she has answered her own question. If what she says is the case, what an indictment it is of the Labour councils in Greater Manchester that they have not even bothered applying for the Government funding that would underpin that long-term strategy. I have been a councillor for a long time and we have been asking them for that strategy, in order to take advantage. I could cite the billions of pounds that are available to support these strategies, but Labour councils in my area—[Interruption.] Heads are being shaken, but Labour councils in my area have made no effort to address this problem. I want to take this opportunity in this Chamber to encourage my local councils to be as proactive as the hon. Lady’s.
My hon. Friend rightly mentions housing supply and making sure we have a balance on that, as well as having affordable housing for people. Does he agree that the proposals in the recent White Paper on levelling up and looking at what more we can do with brownfield sites give local authorities more of an opportunity to explore that, think outside the box a little and provide the kind of homes he has mentioned?
My hon. Friend is absolutely correct. The desire and policy of this Government is to ensure that we have beautiful homes developed for the benefit of everyone in our country, and there is money behind this: a £12 billion boost for affordable homes, including social rented homes, to help those with physical or mental challenges; and £5.4 million of additional funding for a pilot scheme in key areas, helping us to understand the most effective interventions for future national policy. We are also introducing a higher minimum standard for supported accommodation. So the money and the desire are there, and the policy direction from central Government says that local authorities come to us—[Interruption.] I am answering the point that has just been made. We want to support councils on this. We want to provide the funding that is going to develop those brownfield sites in their boroughs, but what are the Government to do if local authorities do not even have that conversation with the Government? I am assuming that the councils have not had it with the Mayor of Greater Manchester. What is the point if they do not do that? I am known as a collegiate parliamentarian, and I am simply here to encourage my local authority in Bury to work with the Government, who want to work with it to ensure that we get the housing stock that is absolutely needed in our borough. I am proud to be part of a Government who have this strategy, want to support local accommodation and do not take the view of my local authority. This is a difference of opinion. My local authority, in terms of prioritising social need, social housing or social rented housing, believes in the policy document, and believes in building four-bedroom and five-bedroom houses on the green belt. That is its choice, as a local Labour authority. I believe, and support this Government’s intention, that we should be prioritising the development of brownfield sites, and ensuring that people have access to a home and that those support services are in place. In my local authority, over the 18 months of the pandemic, over £180 million was provided, on top of the normal grant funding, to support important services—
Fewer than 6,000 homes for social rent were built last year. The homes in the “affordable homes” programme are not affordable at all—it is a skewed, vandalised definition of “affordable homes”. Local councils, certainly in Greater Manchester, and up and down the country, have their hands tied behind their back; they cannot build those social rented homes. They cannot do it.
The hon. Gentleman makes an important point about the definition of what “affordable housing” is in respect of the percentages in new housing developments. The hon. Gentleman, whom I like very much, puts the point on this. Sadly, my local authority shares that attitude of not doing anything and being beaten before it starts, rather than looking at the relationships with Government, in order to provide the funding and the vision, which has been offered by Bury Conservatives for many years. That is the vision we need.
Birmingham set out its own house building programme, but it has not been able to provide the volume of housing that it needs because of the Government restrictions. It is not that Birmingham does not want to build houses; it does want to build houses itself, but it was not able to do it.
I hope the hon. Gentleman will speak to the Labour leader of Bury Council and encourage him to set up his own housing company, as we have been suggesting, to address some of the needs and provide the housing needed for people who come into the sector. I agree completely with the sentiment that has been expressed in the debate I know that you would not wish me to sit down, Mr Deputy Speaker, without correcting a comment made by the shadow Secretary of State—I am sure inadvertently—about Bury football club. I refer to Gigg Lane, which relates to this discussion in that one way we sought to ensure that Gigg Lane was truly representative of the community was to investigate the possibility of putting social housing there. Over the two and a half years since September 2019, when I first stood up in Bury Council and addressed the matter, we have been looking to those types of conversations and actions to improve housing and support services. During that period, Labour-controlled Bury Council has provided no help, assistance, money or contribution whatsoever for the purchase of Gigg Lane. I just wanted to make that correction. Gigg Lane, as part of the levelling-up agenda, was paid for with £1 million provided by the Government, to make it a central part of the Government’s levelling-up agenda.
I am pleased to contribute to such an important debate. The Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Walsall North (Eddie Hughes), is aware of my long-standing interest in this subject and I look forward to the further discussions he alluded to that will take place as the pilot reports are all completed and we think about the next steps, particularly in respect of the legislative framework We should be clear that we are talking about a situation unfolding throughout the country, as we all speak, in which rogue landlords, total cowboy operators and some with links to organised crime groups and established criminal enterprises, are getting their hands on taxpayers’ cash—our constituents’ money—and not using it for the purposes for which it was intended but simply lining their own pockets, and they are able to do so with absolute impunity. That situation is the subject matter of this debate: the fact that so many people can do such terrible abusive things, well within the rules, and totally get away with it. No criminal enterprise is going to get done for abusing taxpayers’ cash in this way, and that is a problem of the law I take issue with the Minister’s saying earlier in the debate that “this is not a political issue” I agree with him in that I do not wish this to be a party political football with which we play knockabout in the Chamber, but this is a deeply political issue. It is full of political choices. We have talked a lot about local authorities, what local government can do or does not do and all this “he said, she said” about local government powers, but the fundamental problem and the failure in respect of the subject matter of this debate is one of the law itself, and only the Government have the power to change the law of this land. This is an arena of politics, but it is also the UK legislature. We are pushing the Government today not because of matters of party politics but because only they can act to prevent the abuses that we are all seeing unfold across our constituencies There is no point in my going to the chief constable of West Midlands police and saying, “I know that a drug dealer is basically setting up as a housing provider in my constituency, is going to get enhanced housing benefit payments, is going to line his own pockets and is probably going to abuse some of the poor, vulnerable constituents who end up in the property he manages,” because I know the chief constable can do nothing about it—not a single thing. That is the problem that I and all Members in this House with experience in this matter are desperate for the Government to fix. The problem is the law and only the Government can fix the law.
I fully take the hon. Lady’s point about rogue landlords, whom we absolutely must tackle. Does she agree that the way to do so is through making sure that higher minimum standards are in place? For example, the national statement of expectations is there. Does the hon. Lady agree that is the best route to make sure that standards are adhered to?
I thank the hon. Member for that intervention. I accept that it is meant to be in the spirit of being helpful and adding to the debate, but the idea that criminal enterprises currently lining their pockets with our constituents’ money will be put off exploiting this business model because of a national statement of expectation is absolutely for the birds. I am sorry, but that will not work here. If it did, I would support it, because I want this problem fixed. I am desperate to see vulnerable people no longer being exploited and communities no longer being destroyed, but that measure will not cut it. These are proper operators and they have spotted a loophole in the law. They have calculated correctly that, instead of going further into the drugs business where they might have to do 20 years in prison, they can just get into the housing sector and no one will put them away for it—at all. In fact, they can do so in plain sight and nobody can do a thing about it. That is what I want the Government to take action on, because that is what I have seen in my own constituency of Birmingham, Ladywood. That is what my colleagues in Birmingham have seen in their constituencies, and some of them have truly horrific examples of abuse of vulnerable tenants. We are seeing that problem all across the country. I was very grateful to the hon. Member for Hertford and Stortford (Julie Marson) for saying that this is national issue. It can become a little too easy for Members in this place to think that this is a problem for some cities—let us be honest, if we are to be party political about this, it is problem for some Labour-run cities. As my hon. Friend the Member for Westminster North (Ms Buck) said, piecemeal action—a pilot here and a little bit of a change there—just creates a whack-a-mole system. A problem that starts in Birmingham will soon spread to Sandwell, to Stoke and then to Dudley, and to other places too, unless we have a national change in the law of our land that stops the problem dead for everybody. Then, a Member whose constituency is currently not afflicted by it would not have to worry about a proliferation of exempt accommodation taking place in their patch. If they do have it in their constituency already, they could at least see that there was an end in sight to this absolute abuse of the system, which, as Mr Deputy Speaker can tell, leaves most of us utterly impotent with rage because, unless the Government change the law, we can simply not fix this problem The first area of the law that requires change is the “more than minimal” test, which has been discussed today. The Minister made the point that the “more than minimal” requirement for the access to enhanced housing benefit regulations has come about as a matter of case law. He is, of course, right; that was done by a housing benefit tribunal. In this country, though, we do not distinguish between case law and Acts of Parliament or statutory instruments. The law is the law and if a judicial authority—a judge or a tribunal—comes to a clarification or a statement of the law that is against what the Government expect to happen, all that creates is a system that is open to abuse. It is the job of this legislature, this House of Commons, to put it right, and only the Government have the power to introduce that legislation to make it so. That rule—the “more than minimal” requirement—must be changed. It must be tightened up I do not buy the argument that, somehow, tightening up the access to enhanced housing benefit will somehow drive the good providers out of the sector. That is also for the birds. Those providers are already doing the things that are required in order to help vulnerable people turn their lives around. In the end, that is the thing in which we should all be interested. These are people who have escaped abusive relationships, who have come out of the prison system and are desperate to turn their lives around, and who have had addiction issues and need help to turn their lives around. They need good quality housing in order to do that. The hon. Member for Bury North (James Daly) was right when he said that people should be sentenced to a house so that they can have stability—the stability that is required to help them turn their life around and become a citizen able to play their full part in society once more. That is not possible if the rogue operators get their hands on these people first. The good providers, who have a moral and a social mission when it comes to supported housing, will already be doing the right thing. I do not buy the idea that they will be pushed out of the system if the regulations for access to the cash in the first place are tightened up The Government and the Department for Levelling Up, Housing and Communities in particular, rather than the Department for Work and Pensions, need to tighten up the broader regulatory framework. It should not be possible to be providing housing to some of the most vulnerable people in our country and to not even have to pass some sort of character test. The idea that the good providers who are operating will fail fit and proper persons tests is a joke. They will pass it because they have a social, moral mission and they can prove their track record in helping people to turn their lives around. If they do not pass it, they should not have access to vulnerable people in the first place. We know what happens when vulnerable people get into bad accommodation: they are ripe for further abuse, ripe for further grooming into drug activity, and ripe for further grooming into sexual exploitation. We should not allow any provider who cannot pass a fit and proper person’s test to get anywhere near some of these people because they will exacerbate the problem rather than alleviate it. Frankly, I have no sympathy with anyone who we currently think of as a good provider but who ends up failing that test, because it proves they were not a good provider in the first place We also need more powers for local authorities—a point that was also raised earlier in the debate—to prevent the dumping of problem people from one part of a country to another. I accept that there are some classes of vulnerable individuals who need to break the link with their local area if they are going to turn their lives around, but that is not the case for the vast majority of people who have ended up in exempt supported accommodation.
My hon. Friend is making an excellent speech. She speaks from deep experience and her legal background stands her in good stead on these important matters. Does she agree that this is part of a series of problems where the Government have got the emphasis quite wrong in their housing policy? They have not given enough powers to local government, they have not regulated the system enough and they have allowed exactly the wrong type of landlords to drive a coach and horses through what limited regulation there is. In many ways, that reflects a bigger picture, not only of the poor vulnerable people who are being mistreated, but of a lack of emphasis on council housing and a lack of regulation of private rented accommodation. The whole system needs a complete rethink and Ministers need to listen to what my hon. Friend is saying.
I agree wholeheartedly with my hon. Friend that we need a system-wide approach. Local authorities need the power to reject applications for exempt accommodation on the grounds of saturation or oversupply. We must break the habit of putting huge amounts of need into already stretched areas and then wondering why those areas can never recover. We wonder why people who have raised their families and committed themselves to stable communities in modest properties that they are proud of, whether they are socially renting or have managed to become owner-occupiers, are so desperate to leave the areas that they were committed to, when we have loaded all sorts of high need into those areas and provided none of the services to support them People dumping has to stop, over-saturation has to stop and local authorities need the power to prevent an over-saturation of supply. We need community impact assessments before we get large numbers of exempt supported accommodation across our different communities, to ensure we are not loading more need into already difficult areas As I said earlier, the vast majority of tenants in exempt accommodation should be able to demonstrate some sort of local link to the area. Unless it is a requirement because of a prison or domestic violence-related issue, most people need some such link in order to have the stability to turn their lives around Finally, we need an inspections regime. We need to keep providers on their toes so that it is not the case that once someone has accessed the system, nobody will ever ask them questions again. There should be at least an annual check to ensure that people who have access to vulnerable tenants and taxpayer cash are doing the thing they said they would do and fulfilling the promises they made Only with Government action can we turn the dial on a huge problem that affects not only my constituency, but people all across this country. Our communities deserve nothing less. When the Minister stands to close this debate, I hope he will not simply say, “We’re watching, and we’re waiting and seeing, and we’re going to think about what we’re going to do,” but give us a legislative timetable for making the changes that are needed.
If everybody takes 13 or 14 minutes, we will not get everybody in. If people could be mindful of their colleagues, we will try to squeeze everybody in.
I refer hon. Members to my entry in the Register of Members’ Financial Interests I wanted to start with a small tribute. In the weeks before he died, exempt accommodation was one of the last campaigns I was working on with my dear friend the then Member for Birmingham, Erdington, the late Jack Dromey. Parts of Stockland Green in his constituency had been saturated with HMO-style exempt conversions and caused serious issues with crime and community unrest Jack spent his career fighting to improve the lives of his constituents in Erdington. Sorting out the scandal of exempt accommodation was the kind of campaign he lived and breathed. That is why, working with his local inspector, he was able to get an extra 24 officers deployed to Stockland Green to address the antisocial behaviour and crime associated with some of this transient accommodation. All of us have lost a great champion with his passing, but for his sake and for the people of Erdington it is important that we fix this issue once and for all Birmingham has the most units of non-commissioned exempt accommodation in the country, with some 20,000 units and more than 4,000 properties registered as exempt. As we have heard, safety and quality concerns are widespread. Several of my city’s largest providers have been issued regulatory notices by the Regulator of Social Housing for finance and governance issues. Hundreds of exempt properties in our city have been found to be unsafe. For this, literally millions of pounds of taxpayers’ money is being shovelled to the operators of these properties without apparent due diligence or scrutiny. Over the past few years, I have worked closely with providers, residents, the police, the sector and community groups to get to the bottom of why this sector has doubled in our city in just a few years and why so much of this accommodation is substandard and badly managed. I have had first-hand experience of dealing with this myself in the case of Saif Lodge in my constituency. I had been aware of some of the issues at Saif Lodge for some time since I was elected, but after my constituents alerted me to the shocking rise in crime surrounding this property, I carried out a spot check to see for myself what was going on. I was shocked by what I found—25 men and women, including ex-offenders, housed with severe issues ranging from addiction and substance misuse to mental health problems Just one solitary support worker was on duty, who told me that the hostel was manned only on weekdays, with residents otherwise left to their own devices. The conditions were utterly substandard—cold, filthy and cramped. The downstairs toilet had broken and flooded and been left unfixed. The smell was hair-raising. Access to the property was via a code that was regularly shared with strangers who were always in and out of the property. Communal spaces were in a horrible state. No wonder residents were frequently found spilling out and loitering outside. This was not a place where any of us could happily live, let alone get a life back on track following a crisis I commend my local community, especially the residents on Fountain Road; Birmingham City Council; its leader, Ian Ward; and West Midlands police, including my local Inspector Lee Trinder and Sergeant Bushra Zarif. They have been absolutely brilliant in working with me on this campaign. Jane Haynes from Birmingham Live has been diligent in raising awareness of this issue for many years. Over many months, we were able to gather the evidence we needed to take the case to court, and finally, last year, we succeeded in shutting Saif Lodge down—the first order of its kind in the country. That was a great achievement, but there can be no doubt that this is not evidence of a system that is working. The resources from police and ambulance call-outs, and the misery inflicted on residents and the community alike, have been immense. We cannot shut down every Saif Lodge—there are far too many. Shutting down Saif Lodge did not stop the same people setting up another exempt property in another constituency down the road. Actually, it was in the constituency of my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood), who made such a passionate speech That brings me to the need for reform. Bad landlords are exploiting this system for a profit while our communities and vulnerable people pay the price. I say to the Government today: care cannot be provided on the cheap. Last year Birmingham City Council inspected over 400 exempt properties, in which they found over 1,000 category 1 hazards that posed “a serious and immediate risk to a person’s health and safety” As part of these inspections, the council found a further 600 category 2 hazards, which include fire safety issues, asbestos, and excessive heat or cold. This is from just a fraction of our stock in Birmingham. Of the 21,317 exempt accommodation properties identified by Birmingham City Council as part of its investigation, about 20,000 are not commissioned by the local authority. Landlords who apply for registered provider status seek referrals for vulnerable people beyond the city’s boundaries, bringing people with support needs to Birmingham where they are remote from their natural support networks. The truth is that too many bad landlords are getting into this sector for precisely the wrong reasons. They are exploiting a toxic cocktail of under-regulation, a Conservative housing crisis, and an epidemic of unmet need after years of council cuts. There are good providers, even brilliant ones, operating in Birmingham who are trying to do the right thing, but, as we have heard, there is a growing underbelly too The definition of what support residents receive in exchange for higher rents is far too vague and open to exploitation. In fact, there is no statutory definition at all. The ambit of the Regulator of Social Housing is too narrow and too passive to pick up the exploiters, its “don’t ask, don’t tell” policy to look only at providers with more than 1,000 units of exempt property has become a loophole for exploiters, and our local authorities do not have the powers or resources to crack down on antisocial behaviour and the oversupply of exempt accommodation in certain areas. I have talked to the campaign groups working on this in our city and heard that whole roads of family homes are being converted into HMOs to cash in on the higher levels of rent that these properties can yield. People are gaming the system and making money off the backs of vulnerable people, and this Government have put off the job of reform for too long. Exempt accommodation cannot mean “exempt from responsibility”. That is why it is important to note that there is no statutory definition of what care, support or supervision is in the context of exempt accommodation. Landlords are getting away with providing either nothing or variable ad hoc support to those who need it most Since previously mooted reforms of the supported housing system were shelved in 2018, the exempt accommodation sector has grown by 62% across the UK. The sector is now worth more than a billion pounds, yet in November, at an all-party parliamentary group for ending homelessness event, the Minister’s team said that they were too “light on data” to get on with reform. In recent years, we have had reports from Prospect Housing and Spring Housing and policy recommendations from Crisis, Commonweal Housing and Birmingham City Council. In 2017, the independent chair of the Birmingham safeguarding adults board commissioned a study into the experiences of vulnerable adults living within exempt accommodation. The findings highlighted issues relating to poor quality of accommodation and variable experiences of the quality of support provided and risk management processes. In 2019, a report commissioned by Commonweal Housing set out the issues clearly, concluding that the non-commissioned exempt sub-sector “embodies a range of social injustices; the most salient of which are the risk of social harm, absence of user voice and barriers to employment and social integration.” Several pilots and reports from multiple community groups are all pointing in the same direction, yet the Government have failed to publish their findings from the pilots or even to act on the recommendations. Lives are literally at stake here. Survivors of domestic violence, prison leavers, care leavers and people with mental health and substance abuse issues deserve a supported housing system that supports their transition to happier, more independent lives. Our communities in Birmingham deserve neighbourhoods that are peaceful and safe, not a magnet for crime. The taxpayer deserves to know that their money is going to support people who need it, not lining the pockets of criminals Enough is enough. We need a statutory definition of care, support and supervision, and resources for local authorities to fund inspection programmes for exempt accommodation in their region. We need to ensure individuals and families housed in exempt accommodation have a link to the area they are placed. We need to give local authorities and the social housing regulator greater enforcement powers and to strengthen the vetting process. Birmingham has called for the Government to align the existing planning and HMO licensing policies to capture supported housing provision that is currently exempt and to give local authorities powers to reject applications in a specific area on the grounds of oversupply. Our communities want action now.
It is a pleasure to follow my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill), who represents the constituency I grew up in. More importantly, she made such a powerful point to illustrate the importance of this debate. I also thank my hon. Friend the Member for Wigan (Lisa Nandy), who is temporarily not in her place, for bringing this debate about, and the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Walsall North (Eddie Hughes), who is also not here at the moment, for his response. I listened to him carefully. He certainly understands the issues, because of his former roles at Birmingham YMCA and in the housing movement before he entered this House, but we need more than his understanding and his pilots MPs have raised so many examples of the poor standards, the poor support and the lack of regulation faced by too many tenants living in exempt accommodation or supported housing across the country. We must not forget that almost all those living in exempt accommodation are the most vulnerable and the most in need of care and support, almost by definition. They include those with mental health needs, those recovering from serious addiction, those fleeing domestic abuse, those leaving prison or the care system and those with other vulnerabilities. What they have in common is that they need and deserve to get their lives back on track and to move on, but for many, the abuses of exempt accommodation prevent that from happening There are many good examples of supported housing and exempt accommodation, such as Look Ahead, which provides housing and support for 18 to 25-year-olds with complex needs in my constituency. When I visited last autumn, the residents told me about the help they were getting from Look Ahead staff with their benefits, with getting on courses and into work, with having meaningful activities to occupy them when they were not able to study or work, with support with parenting and with the other basics of day-to-day life that these young people are not able to get from their parents for a variety of reasons. Look Ahead, like other charities and community interest companies, is set up to support vulnerable people, as well as to provide a roof over their heads, and not to make a profit. Staff told me that cuts to funding and universal credit mean that they struggle to provide the level and quality of support that they are set up to offer and want to be able to provide for these youngsters There are also rogue landlords, however, who exploit the system permitted by the exempt housing benefit provisions. They are making obscene profits at the taxpayers’ expense and then costing taxpayers more in the long run through the price of neglect of those vulnerable people. We have heard many examples in the debate Not all exempt accommodation has been exported from London. I am aware of several such houses in my west London constituency. A constituent with mental health problems was placed in a run-down house with no support for his needs and was living in fear of another resident with aggressive and violent behaviour. Constituents living near such supported accommodation have been affected by antisocial behaviour and racist, sexist and homophobic abuse from the residents. Those residents have no meaningful activities to keep them occupied or sanctions on their actions, as they would if the supported accommodation was properly run This is yet another example of the wider trend that we have seen under the Government of the most vulnerable people in society being a mere afterthought. The sweeping cuts to local authorities such as Hounslow, which has lost £150 million in grant funding since 2010, have had an impact. Funding for social housing nationally has seen huge cuts, as has already been raised today. Support services have been shredded before our eyes The safety nets provided by local authorities, Government agencies and the always-valuable third sector have fallen away. The cumulative effect of those cuts has had an impact that hits the most vulnerable hardest—including those living in exempt accommodation owned by rogue landlords. We are talking about people who are vulnerable now, some of whom are a risk to themselves or perhaps those around them. Most want to move on with their lives, but the support that they need to do that is no longer there Exempt accommodation appears to exist in a vacuum largely outside regulations or the control and influence of local authorities. We have the Care Quality Commission to regulate the quality of care in our health and care settings, and the prisons inspectorate for those in custody, but nothing to ensure that such landlords are providing the care and support that the residents badly need. The limited powers that councils have to regulate HMOs do not apply to exempt accommodation and the schemes that we have heard about from the Minister are merely discretionary My hon. Friend the Member for Westminster North (Ms Buck), who is no longer in her place, reminded us of Supporting People, which was a good model of providing support for people in need. It was introduced by the Labour Government and ended by the Conservative Government. Now, 11 years later, the Government must act, and soon. We need stronger regulations, not just discretionary standards. We need a social housing regulator with powers to deal with rogue landlords who are not only ripping off the taxpayer but putting the most vulnerable people in society at risk. We need providers to pass a fit and proper persons test before they are allowed to provide exempt accommodation. We need a stronger inspections regime to keep providers on their toes and a regulator that has full powers of enforcement to clamp down on those who still flout the system. That is the least that the vulnerable residents of exempt accommodation and their neighbours deserve. When I intervened on the Minister, he conceded that he would not shy away from further regulation if a case was made, and I hope that he does not shy away from it.
We are here because, as other hon. Members have said, we have seen a rise in unscrupulous landlords taking advantage of registration loopholes for exempt housing. In many cases, exempt housing is designed to give refuge to some of the most vulnerable people in our society, such as rough sleepers, refugees and those facing domestic abuse. It should maintain a strong focus on the care, support and supervision of its inhabitants Exempt housing certainly has a legitimate and well-intentioned use, but the intentions do not match the reality. Due to a lack of oversight, unscrupulous landlords are buying up large swathes of housing in densely packed neighbourhoods. They claim that they are establishing exempt housing so that they can charge and pocket extortionate levels of rents while providing minimal levels of support for their vulnerable inhabitants, and we have heard numerous examples today of how landlords have done that. These landlords are incentivised because flawed housing benefit provisions allow landlords to receive higher rents than what is the norm for social and privately rented housing in a given neighbourhood. These landlords have been able to take advantage of this system because there is far too little oversight or regulating of who qualifies for it I know that my neighbours in the west midlands are certainly suffering the consequences of this massive and disgraceful loophole. For example, in Birmingham some landlords were charging as much as £200 per week, despite the cap for shared accommodation being placed at just £57. This is completely appalling. While landlords are lining their pockets, vulnerable claimants are not receiving the care they so desperately need, and many are forced to live in inhumane conditions, which certainly has a wider knock-on impact on community cohesion and safety Department for Work and Pensions data shows that the exploitation of this loophole has been growing. In fact, exempt tenancies grew by 62% between 2016 and 2019 alone. I know that my neighbours in Birmingham have had to bear the highest brunt of this increase. I was in Birmingham, Erdington earlier this week, and from talking to so many residents I know that they are just completely fed up with this. They really want this mess to be cleared up as quickly as possible because they have just had enough We urgently need action to stop landlords from taking advantage of the exempt housing system, and I really urge the Minister to take immediate steps to root out this corrupt practice in the west midlands and in the rest of the country too. I also ask the Minister to speak to his counterpart in the DWP to institute a proper legal test for access to enhanced housing benefits from the DWP. What we really need is to enshrine a proper checklist of what counts as care, support or supervision in law Finally, from what we have heard from so many speakers, we know that urgent action is really needed, and I ask the Government to step up and take action as soon as possible because so many people are suffering from this.
I am privileged to follow my hon. Friend the Member for Coventry North West (Taiwo Owatemi) Before I start, I want, as my hon. Friend the Member for Birmingham, Edgbaston (Preet Kaur Gill) did, to pay tribute to Jack Dromey, the Member of Parliament for Birmingham, Erdington. He fused us all together on this issue because of the huge concern that exists, to the extent that a Sky News broadcast was based in his constituency. It was about the appalling way in which his constituents were treated, with single parents—single mothers—living in atrocious conditions, and all sorts of fly-tipping taking place, essentially making the whole place look like a tip. He was very vigilant in fighting against that, and I certainly hope that Councillor Hamilton, who will replace him after 3 March, will continue that fight along with us The leading housing organisations Commonweal Housing, the National Housing Federation, Crisis, Women’s Aid and Housing Justice have all expressed serious concern on this issue, and they are quite right to do so because the people they serve are the most vulnerable people in our community and society. These people are being abused—physically and mentally tortured—in the places they have been put, putting a huge burden on them. People who initially sought refuge because of the abuse they suffered have been further abused, as have those who are under strain because of their own condition I have a constituent with seven children, one of whom is very severely disabled, and the only thing that could be done was to put them temporarily in a hotel that is not fit for habitation. They were put in two rooms—one room for her children down the corridor and one room for her—but in the end she had to put them all together because, quite rightly, she did not want to leave her children on their own One of my constituents has people coming on prison release next door to her, and her life has been turned completely upside down. When she came to see me at the surgery, one would not believe that she was living in her own property with a reasonable job, but she has suffered a huge amount of torture from the antisocial behaviour going on there. The manifestation that has taken place is predominantly in the non-commissioned exempt housing sector, which feels that it is totally lawless. People feel that they can do whatever they want, and they tend to do what they want. They know that they will not be stopped from making millions of pounds on the back of our poorest people, and that should not be allowed to take place We should provide secure accommodation for those who need it. As has been said, we have no inspection regime. That is a huge problem because the sector is taking money from the Department for Work and Pensions, and for social care for which it is not providing a service. That is stealing money from the taxpayer—that is what is happening—but people know they will get away with it, because nobody is there to chase them up and see what is going on, or look at how to deal with it. Those issues are hugely important There is a huge issue about article 4 directions. In my constituency I have essentially lost a community environment because there are so many cases of exempt housing being taken over. People have moved out, and unscrupulous people have bought up those properties. That has led to a huge amount of antisocial behaviour, to the extent that on Oxhill Road in my constituency, a huge brawl blocked the road and the traffic on it. The brawl damaged people’s property in the surrounding area, and people were attacked in different houses, leading to a huge fight on the street. That could have had a huge effect on anybody who was driving past and trying to get through without knowing what was going on. There could have been very serious incidents The one big issue on which I wish to concentrate is the amount of money laundering, and the use of money from drugs and the proceeds of crime that has entered the sector. The pilot scheme in Birmingham acknowledged that that was taking place, which is a very serious charge. Not only are people exploiting and taking money from us, but they are then cleaning up money that is ill-gotten and from criminal proceedings. We should not allow that to happen. We must work with local authorities, and with the people who matter and the communities that want to make a difference. We must deal with this issue I know the Minister, and I have met him both socially and professionally. We have a good relationship, we have good friends in common, and we work together on this issue. I know he is a decent man and that he believes in this. I know that when he says he wants to support some of those good landlords with good practices, he is right to do so, but at the same time we must not drop the ball, because there are unscrupulous people holding the entire exempt housing sector hostage through their work. I urge the Minister, as soon as possible, to consider how we can regulate this industry and move forward, and ensure that those who are vulnerable have some dignity brought back to their lives. We are the people who are supposed to be looking after their interests, but at the moment we are not doing so.
It is a pleasure to follow my hon. Friend the Member for Birmingham, Perry Barr (Mr Mahmood). I pay tribute to my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood), who made a tour-de-force contribution to the debate. The Minister could not do better than getting her into the Department and taking some of her sage advice. It is reassuring to hear us debating exempt accommodation in the House of Commons, because in recent weeks I have visited constituents of mine who are neighbours of some of the rogue providers. It is a dominating issue, because it is about vulnerable people, often with significant challenges, and they are losing out in all of this. Exempt accommodation should be a vital function, helping the most marginalised and vulnerable groups in society, but instead all too often it seems to be making up for the chronic shortages of affordable social housing. We see social housing now at its lowest rate in decades, and there is an annual net loss of 24,000 social homes. One outcome is that we are now over-reliant on exempt accommodation, often at extortionate costs. Supported housing commands far higher rents, which is one of the reasons why it is not under the housing benefit cap. Landlords can demand higher rents than for social or privately rented housing. Of course, there could be a legitimate reason for that, and there are good providers delivering quality services, but let us be under no illusions: unscrupulous agencies are exploiting the enormous gaps in the regulatory regime to rake in higher rents while providing minimal support and, as is too often the case, substandard housing In theory, transitional forms of supported housing should be a bridge to independent living. They should be a way for vulnerable people to have a safe place that they can call home where they receive the support that they need to regain their independence. There are shining examples. Damien John Kelly House in Picton in Liverpool—a home for men in recovery from addiction—is one such place. It is a fantastic community that supports, inspires and allows for transformational change. The difference between substandard housing and a good provider is that the good provider offers a community and support work, including support for mental health, while a bad provider might only give someone a key for a cupboard in a shared kitchen and an extra lock on their door. The difference is so significant, and it either makes or ruins people’s lives People in my constituency have written to me for help. They live in what they thought was supported housing only to realise that the support package they were promised does not exist and might consist of as little as a CCTV camera in the hallway. The reality of the supported housing racket is vulnerable residents with complex needs living in squalor, isolated, without access to local services, sharing a house with residents who all require specialist support. What is bad for those people living in the properties can quickly escalate to blight the lives of their neighbours and the local community. That experience is all too familiar for my constituents in Anfield and Walton and those further afield While vulnerable residents and the community around them suffer, rogue landlords and agencies collect rents from the taxpayer far in excess of allowance rates and without proper regulation. They game the system easily and without consequence. It is a lucrative enterprise for some, operated and funded by the state, and it is almost completely unaccountable. Liverpool has seen a recent influx of these properties, because we have many larger properties that are ripe for conversion to HMOs or exempt accommodation. They are targeted by investment companies from far and wide who buy up cheaper properties in the most deprived areas and lease them to umbrella management companies who moonlight as supported housing providers. The result is that rents are set artificially high to maximise the yield for investors. The net cost to Liverpool after receipt of Government subsidy has risen year on year, to £4 million in 2020. As profits for landlords increase, so do reports of poorly managed, unsafe accommodation that provides threadbare support There are so many loopholes that allow for that profiteering. Registered providers are not even subject to the most basic licensing requirements that HMOs must legally comply with. That must be unjustifiable. In 2020, the Government introduced the national statement of expectations for supported housing, so they have tried to deal with this problem fairly recently. The statement sets out standards for the accommodation element of supported housing. However, it is a reference tool—a polite suggestion at best. It must be developed, toughened up and put on a statutory footing. The standards must be legally enforceable. The statement does not even include minimum quality standards for the support, care and supervision that these companies are being paid inflated rents to deliver. It is so poorly defined that an extra lock on a door would pass the test every time. Local authorities could be given the powers to regulate the sector, but that must go hand-in-hand with proper funding and support Finally, I see providing a decent home for every person as the most important challenge facing our country. The public pays in the region of £20 billion each year in housing support—money that more often than not lines the pockets of property investment companies and landlords. The reason we are not building decent homes for all has nothing to do with constraints on public spending, It is a free-for-all when public spending lines the pockets of profiteers—we see it time and again. It is this Government’s choice not to invest public money in public provision and that is unjustifiable. It would cost the Government half of what they pay in housing support each year to return us to the spending levels on housebuilding of the post-war Governments of the 1940s and 1950s who strived to make this a country that works for all its citizens, and from which we have today diverted so far away.
I would like to begin by thanking my hon. Friend the Member for Birmingham, Ladywood (Shabana Mahmood) for her excellent contribution and for securing the Westminster Hall debate a few weeks ago, and by noting the work done by the late Jack Dromey, the former Member for Birmingham, Erdington, on the issue of exempt accommodation in Birmingham As the Minister is no doubt aware, Birmingham has seen the largest increase in exempt accommodation outside London, with housing benefits claimants linked to the sector increasing to around 21,000. Birmingham City Council has done a great deal of work investigating and attempting to tackle this issue, but an overall lack of regulation from the Government is creating a massive influx of exempt accommodation in Birmingham, for the reasons set out by previous speakers Exempt accommodation often appears in residential areas without any community consultation. Neighbours wake up to find exempt accommodation established in their street and before long reports of anti-social behaviour, drugs, prostitution, exploitation and other serious issues emerge. I have been approached by many constituents across Birmingham Hall Green who are concerned with the significant increase in this type of accommodation in their local areas. Some residents have even reported being threatened with physical violence by tenants of exempt accommodation. That is why I applaud the efforts of local campaigners, councillors and parliamentary colleagues from across Birmingham who have worked so hard to secure an inquiry into exempt accommodation, which is now being undertaken by the Levelling Up, Housing and Communities Committee. I sincerely hope that the Government take note and pay close attention to that inquiry. It is evident that certain landlords are taking advantage of the current system to set up housing without providing any support to tenants, security for neighbours, or accountability for the social issues which may arise The serious reform of exempt accommodation is therefore necessary, with increased regulation across the sector. A fundamental part of that change must be to establish meaningful community consultation on this issue, so that residents are no longer ignored about what happens on the streets in their neighbourhoods. Those residents suffer the brunt of the problems associated with exempt accommodation, so they should have the greatest say in whether exempt properties should be established in their neighbourhoods. Residents need to be heard. Their views must be taken into consideration and more regulation is needed Furthermore, we need to see tougher regulation of exempt accommodation by a social housing regulator that can perform a fit and proper person test, and give local authorities the power to reject exempt accommodation in specific areas because of over-saturation.
I will declare an interest—I believe that the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Walsall North (Eddie Hughes) has already declared a similar interest. I used to be a provider of exempt accommodation, much like him. My brother also lived in exempt accommodation in Birmingham—this seems a very Birmingham issue—as well as in some Conservative constituencies, including, I think, Weston-super-Mare and Blackpool. We traffic vulnerable people around this country to places where there is somewhere available for them to go, far away from their families and people they may need My brother’s experience is of being a recovering drug addict and alcoholic. He was actually the first person who alerted me to the problems in exempt accommodation. He saw things such as women being pimped out from the accommodation that he stayed in, women who were substance-misuse dependent, and the use of some of the people living in the accommodation to run drugs around. That is now, I realise, not just what happened in my brother’s account, because I see it every single day in the constituency that I represent It was unacceptable for my brother to be shifted around the country, but we do that all the time. A bloke recently got in touch with me and asked whether I would give my backing as a Birmingham MP with an expertise in providing supported accommodation to what was basically a Tinder-style app, so that vulnerable people from around the country could be matched up with a local authority of their choosing. I expressed to him that that would be trafficking and that I would rather die than help him do that The reality is that I know what it is to provide supported accommodation, because I have done it, and I know that the Minister knows it, too. I have worked in refuges that were entirely funded by advanced housing benefit, and I am not just talking about commissioned services. Obviously, I worked for a provider that had lots of commissioned services. I saw the level of detail that a provider has to go through to get a commissioned service. If it wants to be the locally commissioned domestic abuse service or the locally commissioned substance misuse service, it will probably have to go through an eight-month process. I literally had to get down to the minutiae of the detail of exactly which sort of thumb-turn screw I would have to use to make sure that it was completely acceptable. I had to have safety planning put in place with the police in case people’s perpetrators turned up. I had to sit on the children’s safeguarding board. I had to take part in lots of statutory requirements, such as domestic homicide reviews. We had to sit on the multi-agency risk assessment conference for both children and adults. That is the level of detail that is gone into to become a commissioned service, but guess what: you can call yourself a refuge and just apply for advanced housing benefit and you will get exactly the same funding as really decent providers I stand here as a representative of decent providers and with the backing of Women’s Aid, which has sent briefings around to all of us today, to say: “Do not think for one second that regulating this is going to push decent providers out.” I would gladly have taken a fit and proper person test. I would gladly have been investigated every single year and had somebody come and look round one of my refuges—without question As well as having run commissioned services, I was also a commissioner on Birmingham City Council for a spell. I think our budget for commissioning domestic abuse accommodation services was about £4 million. The amount currently being spent in Birmingham on exempt accommodation is £100 million! That would be manna from heaven to decent organisations. I tell you what: the Government just need to give me half that—not even half; a quarter—and I will commission brilliant providers who will not bed-block people because they are a nice little earner, and who will not be washing their dirty money and failing to look after people in their accommodation If Birmingham and Solihull Women’s Aid, St Basils in Birmingham, local refugee provision services or the brilliant substance misuse service in my constituency, which was actually the one that saved my brother’s life, had even a quarter of the money that we are currently giving to dodgy landlords, they could provide a service for everyone I went on a ride-along with the police. The day we give to policing is my favourite day of the year—honestly, I am going to be a copper when I give this up. Maybe I will be the Met commissioner. Every single call-out that I went on with West Midlands police that day was to exempt accommodation. Because I am much more expert in it than the police, it got to the point where they just sat in the car and I went in, because I am a properly trained support worker who knows how to work with people who are very vulnerable and calm down the situation. When I said, “Where’s your support worker?”, they said, “I don’t know, I haven’t seen him for a while.” One of the people had paranoid schizophrenia. The lad who eventually turned up was about 19 years old, bless him. A fracas had broken out between the residents, so I said, “Can I please see what medication he is on?” He went to a cupboard in the kitchen and opened it up in front of me. He was like, “I don’t know which one’s his—I can’t find the medication—I’m not sure.” That is cracking medicines management! It would never have happened in a refuge that I ran Think of the cost to West Midlands police, who are currently providing the state service of security. I never needed to call out the police to any refuge that I ran, because I had proper support plans in place, and I am sure the Minister would say the same about those that he ran. We are probably talking about another 20 million quid—and every time the police are called out to this crappy accommodation, they cannot go out to domestic abuse calls or have specialist training on sexual violence. It is such a cost As for the level of scrutiny in order to get that money, disabled constituents in Birmingham, Yardley face a more rigorous test to get funding from the Department for Work and Pensions than any of the landlords operating in my constituency. The landlords never even sit in front of anybody, yet my constituents have to prove whether they can undo their buttons or walk as far as the centre. Vulnerable people in my constituency are literally put through more rigour by the Department for Work and Pensions than people who are taking tens of millions of pounds off the taxpayer. As a taxpayer, I do not want to pay for it any more. I am not going to sit by and see my hard-earned taxes funding things that are harming my constituents. The Government quite simply have to step in That is before I even start on the dreadful cases of violence against women and girls that are going on in these environments. About nine months ago, I wrote to the Secretary of State for “levelling up” about a case in my constituency, which I will keep on raising, of a 19-year-old rape victim living with people who are perpetrators of violence against women. She locks herself in her room every night. She is frightened to live there, and that is where she has been placed I know that the Minister has daughters. He would not for one second allow his daughter to live as my constituent is living—I know he would not, ever. I would never let one of my children live in these places, ever, so I have to fight for everybody’s children not to have to live in them. What is happening is totally unacceptable I have been told that we do not have the parliamentary time to act. The Secretary of State has not even written back to me about the case. I was told, “We do not have the parliamentary time”, weeks before we went into the conference recess to drink warm wine in crappy meeting rooms. My reaction was “Bring us back! This matters!” I like the Labour party conference—I was pinged, although I can’t say I was that upset—but I would rather be here, sorting out the lives of my constituents. We can act now. There is time; there is plenty of time. The Labour party will work with the Government to facilitate that time, to make sure that this can happen. It should happen now, because we are funding dreadful behaviour I will end with a story about the former Sheldon police station, in my constituency. There was a proposal to convert it into exempt accommodation. I was sent a request for support, which said, “We are going to house domestic violence victims alongside people with substance misuse and people who are coming out of prison”—to which I obviously replied, “No, you’re not.” The local people all said, “No, you’re not.” The local council said, “No, you’re not.” When the planning application reached those in the Department of the Ministers who are sitting opposite me, what did they say? Even though the application had been turned down every single time in the local area, they overruled us, and allowed it to pass If Ministers are not willing to stop this on an individual basis, I beg of them: make the regulation exactly as it has been called for by the Labour party, and do it today.
It is an absolute pleasure to follow that powerful speech from my hon. Friend the Member for Birmingham, Yardley (Jess Phillips) This has been an excellent debate, featuring a great many thoughtful and impassioned contributions, and I thank all the Members who have taken part in it. As would be expected, there have been points of contention throughout, but there is clearly agreement across the House that far too many people find themselves living in unsafe, poor-quality shared housing without the support that they need to get back on their feet and improve their lives, and that the beneficiaries of this arrangement are the unscrupulous providers who, by exploiting gaps in the existing regulatory regime, have extracted—and continue to extract—significant amounts of public money through the “exempt” provisions relating to housing benefit As we have heard today from Members in all parts of the House, those who are suffering so that rogue landlords of this kind can get rich are some of the most vulnerable people in our society: those fleeing domestic abuse, those who have served their time in prison and are trying to make a fresh start, those with severe mental health needs, those battling addiction and substance dependence, those leaving care, and those who have sought and secured asylum in our country and are starting the process of building a new life for themselves. The impact of poor-quality, non-commissioned exempt accommodation on vulnerable individuals like those can be devastating, whether it is the physical and mental consequences of living in squalid conditions, the risks that arise from the absence of effective supervision and safeguarding arrangements, the money gouged from hard-up residents through service charge costs that are ineligible for housing benefit purposes, or simply the inability to sustain an exempt accommodation tenancy, or to move on from one, because of a lack of care or support Sharp practice in this sector is causing real harm, and, as we have heard today, it is not only causing harm to the vulnerable individuals placed in this type of housing. Communities with large numbers of badly run exempt-accommodation properties are struggling to cope with the impact of concentrated numbers of people whose lives are, by definition, challenging and often chaotic, and who are not being given the supervision, care and support that they need in order to manage. Most gallingly, it is taxpayers who are subsiding this exploitative arrangement, and are thereby indirectly facilitating its social consequences. This is a situation that cries out for urgent reform, and the motion therefore seeks to ensure that the Government end the exploitation of vulnerable individuals at the hands of unscrupulous agencies, and at the taxpayer’s expense, as a matter of urgency. I want to respond to a number of the points that have been raised in the debate, and to explain why we believe that a package of emergency measures is required to end this profiteering. Today we have heard numerous accounts of the detrimental impact of poorly managed, poor-quality non-commissioned exempt accommodation across the country. That attests to the scale of the problem, and to the fact that it is not an issue that affects only some cities and towns or only a select number of local authority areas. It is obvious that some parts of the country are more badly affected than others, and we have heard how and why cities such as Birmingham have become hotspots for poor practice in this sector, but it is a problem affecting every corner of the UK. Given the steady increase in the number of exempt tenancies over recent years, it is likely to become more widespread and more acute in the years to come if the Government fail to act quickly to stop rogue providers gaming the system Today’s debate has also made it clear that this is a complex problem to which there is no simple single solution, and the necessary first step to addressing it is that the Government accept that it cannot be tackled simply by incremental improvements at local level. Local discretion is of course vital, and there is no doubt that individual local authorities have been able, by their own efforts, through measures such as enhanced scrutiny of benefit claims or the use of voluntary codes of conduct, to reduce their reliance on the exempt accommodation sector and to drive up standards within it However, leaving this problem purely to councils, even with additional support, is not a solution, because it fails to address the fundamental causes of the problem. It is akin to asking the passengers of a ship holed beneath the waterline to do their best to bale the rising water out with their hands rather than seeking to repair the damage at source. Because it does not address the fundamental causes, any progress made in one local area will inevitably mean rogue providers simply pick up sticks and move to prey on another. If the Government are truly committed to bearing down on this problem wherever it arises, it must be a question of how, not if, they should intervene at national level to support the efforts already being undertaken by individual local authorities across the country We know what underlying factors have combined to drive the marked growth of this sector under successive Conservative-led Governments: a chronic shortage of genuinely affordable housing; reductions in funding for housing-related support; and new barriers to access for single adults requiring social rented or mainstream privately rented housing. If we are to stand any chance of reducing reliance on non-commissioned exempt accommodation over the long term, the Government must take meaningful action in those areas However, those individuals and communities that are already suffering at the hands of unscrupulous exempt accommodation providers do not have the luxury of time. They cannot wait for patient reform over many years to reduce overall dependence on the sector and limit the opportunities for rogue operators to take advantage of it. They cannot wait for the Government to get around to analysing the results of local pilots that finished long ago. They require Ministers to act now—in a considered way, yes, but at pace. I have to say that the lackadaisical tone adopted by the Under-Secretary of State for Levelling Up, Housing and Communities, the hon. Member for Walsall North (Eddie Hughes), in his response suggested that the Government had not yet properly taken this on board We must act at pace, and that is why the motion specifically calls for a package of emergency measures to bring an immediate end to sharp practice in the sector. There are two obvious ways in which the Government could act swiftly and decisively to achieve that outcome. The first is to introduce some form of licensing regime, including fit and proper person requirements for providers of exempt accommodation. Ultimately, it is the exempt provisions of housing benefit that enable and encourage rogue providers to enter the sector and exploit vulnerable individuals at the taxpayer’s expense. There is therefore an overwhelming case for better regulating the eligibility for, and therefore access to, exempt benefit claims, to ensure that high-quality supported housing providers are the norm. Just as care home providers need to register with the Care Quality Commission and be subject to regular inspection, an effective licensing regime would see exempt accommodation landlords screened and monitored so that new unscrupulous providers were denied access to the system and the existing ones were progressively weeded out The second change would be to introduce a robust framework of national standards for the sector while ensuring that councils had access to the resources necessary to tailor that framework to local circumstances and enforce standards on the ground. At present, what qualifies as the more-than-minimal care, support or supervision to be provided by an exempt accommodation landlord is incredibly vague. As a result, local authorities are unable to judge effectively whether claims are valid and eligible. The reforms proposed in the social housing White Paper should make a difference to exempt homes that fall within that category, and we urge the Government to bring forward the legislation to enact them as soon as possible. Even if those proposals lead to an improvement, however, they do not cover all kinds of exempt housing, as the Minister well knows. Anyone who examines how rogue exempted accommodation providers are taking advantage of existing regulatory loopholes cannot but conclude that we need a new regulatory regime to drive up standards for supported housing across the board and to give all local authorities the tools they would need to make the regime work in their area These are only the two most obvious changes that are needed if we are to begin effectively bearing down on the problem that the House has debated today. Many other smaller changes are required to bring this scandal to an end. The motion deliberately avoids setting out an extensive shopping list of specific proposals, leaving it open to this House to debate at greater length, on another occasion, precisely what would be included in the kind of emergency package that the motion calls for in principle What is important today is that Ministers accept that the current state of affairs must be brought to an end, that what is required is for this House to enact urgent and fundamental reform at a national level, and that they must commit to bringing forward an emergency package of measures to that end. Anything less is tantamount to accepting that some of the most vulnerable people in our society are not worthy of immediate protection, that unscrupulous operators can continue to exploit them for financial gain and that taxpayers will continue to pick up the bill.
It is a pleasure to take part in this important debate in my new role. I sincerely and genuinely thank all hon. Members on both sides of the House for their frankly powerful contributions I know the Under-Secretary of State for Levelling Up, Housing and Communities, my hon. Friend the Member for Walsall North (Eddie Hughes), takes this issue very seriously, as hon. Members on both sides of the House have fairly commented. I have seen how passionate he is about this in just the few days that I have been in the Department, and I will do everything I can to support him in his work to tackle this issue It is abundantly clear that the problems affecting the supported accommodation sector are having a very real and serious impact on hundreds, if not thousands, of vulnerable individuals in many parts of the country. That, in turn, has knock-on implications for the housing benefit bill, but there is a human cost, too Several hon. Members rightly raised the criminality and antisocial behaviour in their constituencies that stems from people not receiving adequate support and the accommodation that they not only need but deserve. The Government and I are unequivocal in stating that everyone in our society deserves to live somewhere decent, safe and secure, which is why my hon. Friend said in his opening remarks that we have been working relentlessly to crack down on rogue accommodation providers who are exploiting exemptions that were designed to benefit the most vulnerable. Importantly, we have also been working hard to support the high-quality supported housing providers who deliver life-changing services to those who need them most Many of this afternoon’s contributions struck a chord with me, and it was particularly important to hear from my hon. Friend the Member for Hertford and Stortford (Julie Marson), who rightly said that this is not just an issue for cities because, as other hon. Members said, it will start spreading out to the rest of the country. She was also right to praise the good providers, as it is important that we recognise there are excellent providers out there and that we give them that support My hon. Friend the Member for Bury North (James Daly) talked about the Government’s £12 billion affordable homes programme, and it is right that we build beautiful homes for people, including council homes. The hon. Member for Birmingham, Ladywood (Shabana Mahmood) has been passionate about this subject, and we could just feel from her speech that she has done a tremendous amount of work on it. I know that she will be rightly keeping us at pace on the issues. The hon. Member for Birmingham, Yardley (Jess Phillips) spoke movingly, from a very personal perspective, about the experiences of her own family; those contributions are incredibly valuable for us to hear, as we realise that this is about real people First, I would like to take the opportunity to clarify some of the issues raised about the exempt accommodation sector as a whole, because there is a problem with some but by no means all exempt accommodation. The term “supported exempt” is used to define accommodation for housing benefit purposes and covers a wide range of accommodation provided by different providers. So although the term “exempt accommodation” is increasingly synonymous with housing that is of poor quality and poor value for money, we need to be clear that this issue does not apply to all supported exempt providers. More specifically, they should not be tarred with the same brush as the rogue landlords that I, along with many other hon. Members, want out of this system Several hon. Members have highlighted examples from their constituencies of accommodation providers gaming the system, claiming for services that they never provide and then walking away with exorbitant amounts of money. Although we know that only a minority of supported housing landlords are behaving in that way, there is clearly evidence that some accommodation providers are exploiting housing benefit rules for their own financial gain. Obviously, that amounts to an egregious abuse of the supported exempt accommodation system, and we have been taking concerted action to stop it. As we heard, the Government have invested more than £5 million in support, which has gone to places such as Birmingham, Blackburn with Darwen, Blackpool, Bristol and Hull, areas that we know have experienced acute difficulties with the local exempt accommodation sector. This funding has been used to crack down on rogue providers, while trialling new and innovative approaches to improve quality and value for money across the board.
I apologise for not having been here for the whole debate, as I have been speaking at a conference on private renting this afternoon. The Minister has just said that we know that only a minority of providers are operating in this unacceptable way. Given that the system is unregulated and the Government do not collect the information, how does he know that it is only a small minority doing this?
I suppose the point I am trying to make is that an awful lot of people out there are doing an enormous amount of work, and although it is important that we highlight where the rogue landlords are, we must not tar everybody with the same brush. There is a danger that schemes could be tarred with being known as inappropriate when we know that some of them, as the hon. Member for Birmingham, Yardley said, have turned people’s lives around. I want to see more of that, I really do. I want to see people who are coming out of prison being able to get back into the workplace. I want to see people who have been victims of domestic abuse living in safe accommodation and feeling confident in their lives again. So it is important that we tackle the issue but we do not tar everybody with the same brush The other thing I wanted to say was that we are awaiting the final report from the independent evaluators, who are working very hard. I say to the hon. Member for Greenwich and Woolwich (Matthew Pennycook) that they are working with urgency and at pace so that we can get that fully reviewed as quickly as possible.
I just wanted to speak to the point about lots of providers being very good. Those good providers have written to all Members of Parliament about this debate to say that they want to see the exact regulation that the Labour party has called for today. They are on the side of wanting this regulated, and that is because they are good providers.
I take the point on board entirely Several Members have spoken about instances of antisocial behaviour and crime in their constituency that have been directly associated with this sort of accommodation. No one wants to see the proliferation of substandard housing and substandard services bringing down neighbourhoods and, in some cases, even acting as a magnet for antisocial behaviour and criminal behaviour. That is why we are working hand in hand with local authorities to help tackle this issue head on, while championing what we know works and, more importantly, what works well. For example, Hull City Council, one of the five local authorities I mentioned, decided to address the issue by tasking a dedicated antisocial behaviour liaison officer with improving community cohesion by working with landlords and tenants alike Other Members mentioned concerns about links to organised crime. It is extremely concerning that criminals may be exploiting vulnerable people and the benefits system. Any such instances much be reported quickly by the appropriate authorities and dealt with swiftly.
Does the Minister accept that this is not just about supported accommodation? Some rogue landlords use the system to recycle the proceeds of crime, and they need cracking down on too.
Absolutely. My hon. Friend the Under-Secretary is doing work on the private rented sector, so there is more work to come on that issue On rogue domestic abuse provision, I was shocked and appalled to hear the examples of poorly managed, poorly run and poor-quality refuge shelters for women fleeing domestic abuse. It is clear that such places have been anything but shelters from harm. Women fleeing violence have been deliberately misled to believe they will be offered real support and a safe roof over their head. It is not just morally wrong; it is often also illegal. I assure Members that my officials are engaging with councils on all such instances. Through the landmark Domestic Abuse Act 2021, we have given councils new powers and money—£125 million of Government money in 2021-22. That funding is provided specifically to boost the vital support that victims and their children need.
I just want to point out that some of that money, which we all fought for and wanted to see—we should bear in mind that it is £125 million for the entire country, when we are currently giving the majority of bad landlords £100 million just for Birmingham, to put that into perspective—will absolutely go into the pockets of exactly the providers we are talking about.
That is exactly why we will tackle this issue. I would love to stand at this Dispatch Box and say, “We’re going to get it done tomorrow”—
Go for it!
But the reality is—
I’d do it—I’d just make it up!
Well, I am afraid just making it up can sometimes have unintended consequences. Members said that the good providers are ready to go on this; if we do not look at the detail and do it properly, we could introduce real obstacles for some of those good providers. I do not want to do that; I want to get this right, as I know my hon. Friend the Under-Secretary does Let me move on to future action. As I have mentioned, we have already invested more than £5 million to support areas that are grappling with poor supported exempt accommodation. The pilots have been independently evaluated, and while we wait for the report the Government continue to work closely with local authorities on the provision of best practice and guidance. I assure Members that we are considering all options available to us, including further regulation. However, as I said, we need to be absolutely sure that any further changes to the rules do not put off responsible providers so much as to throw out the good with the bad. I believe that Members—
claimed to move the closure (Standing Order No. 36). Question put forthwith, That the Question be now put Question agreed to. Main Question accordingly put.
It is a great honour to be able to open this debate on support for levelling up rural communities in Cumbria. The backdrop to this is that I very much welcome the Government’s White Paper on levelling up, but I want to highlight and stress that this is not just about towns and cities, and shine a light on some important issues facing our rural communities that the levelling-up agenda can address. There are laudable aims in the White Paper, but I say to the Minister, and to the Government, that this is about not just his Department but other Departments. I really plead with the Government to work cross-departmentally to deliver some of the aims for our rural communities Sadly, rural isolation and poor connectivity are endemic issues in many parts of our country, and particularly in my constituency. In addition, there are significant physical connectivity issues. Penrith and the Border is the largest constituency by land mass in England, and that has significant issues for both road and rail connectivity. I very much welcome the A66 northern trans-Pennine project. This major infrastructure project is much needed due to congestion issues, traffic issues, and very importantly, safety issues. I really urge the Government to listen to local communities, and I have been voicing these concerns on their behalf. We need to get this project right. I have raised this with the Prime Minister. We need to make sure that communities such as Warcop, Musgrave and Sandford are listened to with regard to the correct route The major infrastructure projects that are going on up and down the land are very important; they are the major arteries. That is very good, but we also need to consider the veins and capillaries. In rural areas, the capillaries are things like rural buses and rural roads, and we very much need to address that. For buses, we need to look at the funding structure. I very much welcome the rural mobility fund, which Cumbria will benefit from. Sadly, in 2014, Cumbria County Council took the decision to stop using central Government moneys to subsidise commercial services, and unfortunately some services had to close because of that. It left a big gap. We need to revisit that at central Government and local government levels We have fantastic volunteer schemes in Cumbria. We have the Fellrunner bus and the Border Rambler bus, and we have council-run schemes such as Rural Wheels, Village Wheels and Community Wheels in Alston Moor, but I want central Government and local government to work together with local operators. I have met many private operators that stand ready and waiting to reinstate many of the services that were cut. If we get the funding structure right and if local government spends sensibly the money given to it by central Government, we can fulfil that need Sadly, a lot of the positive agenda from the Government is London-centric. We talk about buses and hailing buses with apps and things like that, but if someone is in rural Cumbria and they do not have a signal on their mobile phone, these London-based apps with good connectivity will not work. I am an equine vet by background, so it has to be horses for courses. We have to get it right in our rural settings. I stress to the Government and the Minister that Cumbria is not London On that note, we need support for road transport. As I have said, rural areas are very different. We have different needs in rural parts of the world in terms of fuel and diesel vehicles and so on. We are very much shifting to more electric vehicles, but if we are going to do that, we need a fast roll-out of the charging mechanisms, too. We have to ensure that it is tailored for rural communities With rail connectivity, I would like to see some joined-up thinking across our United Kingdom and in the borderlands region, with the Scottish Government working with the UK Government and local authorities to extend the Borders railway down to Carlisle. That would be fantastic for our region and the United Kingdom. On a smaller note, but a very important one for a northern community such as my constituency, I would very much like to see Gisland station reopened, and we have been working with the Department for Transport on that. Opening up stations and connecting train lines are very important to get people connected to each other That is a bit on physical connectivity, but I want to touch on virtual connectivity, too. That has been brought into sharp relief during the pandemic with people working at home, isolating at home and their kids being taught at home. If people have poor broadband or poor internet, that comes into sharp relief. For farmers trying to file their payments, it has come into sharp relief, too.
As you know, Mr Deputy Speaker, Devon has much in common with Cumbria when we look at the topography and the need to get rural broadband. It is great that my hon. Friend is standing up for Cumbria, but if there is one thing we need to fix across the country, it is rural broadband and broadband generally, because of everything else follows that. The pandemic has shown how much we need it and how much more we can do. Sometimes, broadband stops the need for physical movement, too. I very much support my hon. Friend’s great drive for rural Cumbria, but may I make a plea for rural Devon, too?
Cheeky.
I thank my hon. Friend, the Chair of the Select Committee on which I am privileged to sit. He makes a fantastic point. It is about connectivity across our great country, and rural Devon is the same as rural Cornwall and the same as rural Cumbria, and we need to get it right. We have to ensure that everyone gets good broadband and a good mobile phone signal. It is a point well made The Government aim to have gigabit-capable broadband to 85% of the United Kingdom by 2025. I hope that we can still move that way, but in my constituency, gigabit availability unfortunately languishes at a low 7.2% and the download speed is just over half the national average, so we are well behind. My plea is that we can have some help with that. In our part of the world, the mobile signal is poor. Sadly, there are many notspots in my part of the world The Government have taken some positive steps. I welcome Project Gigabit. The shared rural network will have a key impact, too, as will the voucher schemes. Communities are partnering with fantastic companies, such as Broadband for the Rural North. I have seen that first hand in communities such as Kirkoswald, Mallerstang and Ravenstonedale. I pay tribute to companies such as B4RN, its chief executive Michael Lee, the teams and the volunteers who do fantastic work to connect people in isolated communities. I make a plea to the Minister for more help from his Department, the Department for Digital, Culture, Media and Sport and indeed the Home Office in terms of shared mobile phone masts for emergencies.
I am grateful to the hon. Gentleman, my neighbour, for securing this important debate and I congratulate him on a good speech. Does he agree that the communities of which he rightly speaks are at huge risk as affordable and family homes collapse into the Airbnb and second homes sector? There cannot really be levelling up for rural Cumbria if the Government will not take action to ensure that those communities are protected and that a limit is put on the number of Airbnbs and second homes that there can be in our communities.
I thank the hon. Gentleman for his intervention, which I note. If he can temper his patience, I will get on to that topic shortly. I am surprised to see him here; I expected to see him in my constituency perhaps where he has been a frequent and regular visitor in recent weeks. Anyone might wonder whether boundary changes were imminent. I gently and respectfully remind him that we share similar issues in our two constituencies, but we do not share the same constituency I put it to the Government that we need to be cautious about future changes to things such as the BBC. In rural parts of the world, terrestrial TV is ever important and the BBC and public service broadcasters are a treasured national asset that deliver news, education and drama. Again, that came into sharp relief in the pandemic when kids at home were delivered a fantastic education through it. For rural areas, where we depend on terrestrial TV and where many homes do not have the internet at all, we cannot be thinking at a Government level about moving to a subscription-based model. I caution the Government that we need to be careful when we are making decisions about the treasured asset that is the BBC I turn now to interactions and local democracy. In the pandemic, our vital parish councils, which do such wonderful things for our communities, could meet in virtual or hybrid formats. Sadly, that modality is not now available. That is important and I have raised it with the Secretary of State on a number of occasions. I urge the Government to allow parish councils to continue to meet in virtual or hybrid formats. There are issues with rural isolation and the weather, with people’s jobs or caring responsibilities and with farmers. If we can empower local people to contribute to local democracy through that, we can learn the positive lessons of the pandemic In Cumbria, we are facing significant reform at a local government level with the changes to unitary councils. I am on public record as being against that, as I do not think now is the time for us to be doing it, and the groupings go against the natural geography and the community bonds. That said, we are where we are and we have to make the best of it and make it work. I make a plea to the Department, however, that ongoing projects should not be paralysed by that reshuffling and that we should certainly ensure that local democratic changes do not compromise local communities I turn now to the farming and agricultural sector, which is an important aspect of my constituency economically, as came into sharp relief during the pandemic because of food security. I pay tribute to our fantastic UK farmers and Cumbria farmers who deliver food to us and put food on our tables. Anyone in the food processing and marketing sectors needs to be thanked for what they have done. They are key workers The farming community faces many challenges, such as the changes to the funding system with the new environmental land management schemes. We also face challenges from trade deals. The Environment, Food and Rural Affairs Committee, on which I sit, is now looking at the Australia trade deal. There are significant challenges to our farming communities and we have to ensure that the Government get it right and do not undermine or undercut our farmers so that we can stand up for our values on high environmental and animal welfare standards and can be a beacon for the rest of the world. I ask the Levelling Up Department to work with DEFRA to support that sector That sector has also been significantly challenged by seasonal labour issues—we have been looking at that on the EFRA Committee as well—and there are serious issues in the food processing sector. Again, the farming community now has a crisis that has been ongoing in the pig sector. Currently, in excess of 40,000 pigs have been slaughtered on farm that have not subsequently gone into the food supply chain, and I really urge the Government to work cross-Government to mitigate and avert this crisis Another huge part of the rural economy in Cumbria is tourism and hospitality. Again, they are facing similar labour issues. That has been exacerbated by covid, but Brexit has certainly been a factor, and we need to make sure that we can supply the labour that our vital businesses need locally. This sector needs ongoing support, and I urge the Minister to work with the Treasury to make sure that we can keep some of the measures in place, such as the VAT cut for tourism and hospitality businesses, that will make things better for them. We need to think about tax relief for small rural businesses as well The hon. Member for Westmorland and Lonsdale (Tim Farron) talked about the pressure on housing in local communities. We are a fantastic tourism part of the world up in Cumbria, and we have seen huge numbers of people come during the pandemic and when we started to open up. The pressure on local people to find local affordable housing has again come into sharp relief. With the increasing number of second homes in the area, locals are basically being priced out of their own local community. I really urge the Government to look at and address that with affordable housing, sensible planning and sensible measures, so that people can get on the housing ladder and it is not to their detriment when people come in and take second homes. I really urge the Government to look at that. Housing in our part of the world is very different from that in London. Again, when the Government are making changes and talking about changing boilers and such things, we have to bear in mind that many people in rural parts of the world have oil boilers, and we have to make sure we adapt. It is horses for courses Schools, pubs, shops and churches are the lifeblood of our local communities, and they need support. Many local communities are stepping up and acting together, such as the Kirkoswald community shop, and Bampton Valley community pub has now put together a shared programme to set up the pub again. However, we should not have to rely on the community stepping forward. We must get central Government working with local government and local communities, so I really urge the local government Department to offer more small grants so that we can put the life back into local communities Education is so important, and it plays a huge role in levelling up, with opportunities for young and old. We have had a very difficult time in Cumbria, and we have lost Newton Rigg College, the only land-based college in Cumbria. We worked very hard to try to save the college, but unfortunately that was unsuccessful. We now have pieces of the jigsaw coming together to try to rebuild land-based education in our community. I pay tribute to Newton Rigg Ltd, Newton Rigg Equestrian, Ullswater Community College and Myerscough College, which are working together with the Ernest Cook Trust and local stakeholders to see if we can get pieces of the jigsaw together. It is important that we rebuild land-based education in Cumbria To give an example, Ullswater Community College is a local high school with over 1,500 pupils, led brilliantly by headteacher Stephen Gilby, with a 600 square mile catchment area. I have raised this with the Prime Minister and the Education Secretary, but it urgently needs a rebuild, and I really press that message home to the Government. Outdoor education in Cumbria is a blessing for us, and that sector also needs to be supported. We have fantastic outdoor education centres, such as Blencathra outward bound centre. This is part of the recovery, it is about the life chances of young folk and it is very important for mental health Health underpins levelling up, so I really urge the Government to support rural healthcare. We welcome the fact that we have a new cancer centre that has opened up in Carlisle and a new diagnostic centre in Penrith, but on mental health we need to make sure that the message of parity with physical health comes through loud and clear. In the EFRA Committee, we have triggered an inquiry on rural mental health looking at the key issues and the key stressors. We have significant risk factors in our rural communities. We get shock events; we get floods, we get storms. Professions such as my own—the veterinary profession, but farmers as well—are over-represented with a risk of mental health and suicide, and there are the pressures of running businesses in our isolated communities. I urge the Government to try to address many of those issues at cross-Government level, and to support the communities that we live in and we love. We want to ensure that the people’s voice is heard down here in Westminster and in Whitehall.
Glorious Ribble Valley is not London either, so I wait with eager anticipation, Minister, for your response.
Thank you, Mr Deputy Speaker. I congratulate my hon. Friend the Member for Penrith and The Border (Dr Hudson) on securing this important debate. He is a relentless champion for his community, and the many different issues that he touched on this evening are a small selection of the matters he has raised with us. He always makes important and serious contributions to driving forward the different policy agendas he has raised Let me address some of the specific points raised by my hon. Friend. One of the themes of his speech—appropriately enough for a vet, horses for courses—was about how the levelling-up agenda must be shaped to the needs of rural communities such as the one he represents in Cumbria. He raised the issue of second homes, and I am acutely conscious of the strong feelings held by him and his constituents about that. He will know that we recently closed the second homes tax loophole, which was being abused. That was a serious part of the problem, and a serious contribution to tackling it. Partly as a result of my hon. Friend’s work on this issue, we are considering what further steps we can take to address it. Many local people have a sense of their children not being able to live where they grew up, or of not being able to stay in their own community because it is a wonderfully attractive place. We all love those places, but we must not kill the thing we love by local people not being able to live there. My hon. Friend is completely correct, and it is something we are actively looking at.
Given the urgency of this, I cannot stress how important it is that action is taken, well, yesterday really. In the South Lakeland District, there has been a 32% rise in the number of holiday lets in one single year. That is the private rented sector collapsing into the “not lived in” market. We need action now. Let us please not have another inquiry.
I completely agree with that, and we have the same sense of urgency about this issue My hon. Friend raised a point about the need for small grants in the kind of community he represents. That is exactly why we have set up the new £150 million community ownership fund, which is helping people across the country take control of assets that are of importance to the local community, from pubs to sports pitches to important cultural locations. We are at the start of allocating that fund, and I am sure my hon. Friend will be assiduous in helping us to identify fantastic projects in his constituency that are deserving of such support My hon. Friend raised the issue of how things work in the kind of area he represents, and about parish councils sitting virtually. He has made numerous representations to us on that point, and again today he made a powerful argument. The Government launched a call for evidence last year to gather views and inform our longer term decision about whether to make express provision for councils to meet remotely on a permanent basis. The Department for Levelling Up, Housing and Communities is considering the responses to that consultation, and will respond shortly. I know that many local councillors found it extremely useful to have a wider range of voices able to attend, particularly in areas where the geography is large and the community is somewhat older. A decision has not been made, although once again my hon. Friend made a powerful case on behalf of his constituents Likewise, as part of my hon. Friend’s theme of how Cumbria is not London and has different challenges and different sorts of issues, he made important points about mental health. It is really a crusade for this Government to have true parity between the treatment of mental and physical diseases, of exactly the kind my hon. Friend called for. As part of that, one of the most exciting things that the Government are doing as part of the anti-loneliness agenda is rolling out social prescribing across the country. There is a target to have 900,000 people referred through the NHS to social prescribing by 2023-24. My hon. Friend is a vet, and a long time ago I was a medical student, and when I met patients I was struck how often both their medical needs in the traditional sense and many mental health issues were not being grappled with. Through the social prescribing agenda, we can start to have a proper plan to connect those people to the help that they need. He was right to raise that My hon. Friend was also right to raise terrestrial TV. There are places where people cannot just get on to an ultrafast fibre broadband connection, so that terrestrial TV signal will remain extremely important I will touch on some of the wider things that the Government are doing across the whole of Cumbria—of course, there are huge economic connections between all the parts of the county. Our levelling-up funds are making a big difference. Barrow, Carlisle, Cleator Moor, Millom and Workington are all getting a share of £110 million of investment through the towns fund to improve town centres and public services, which will also benefit my hon. Friend’s constituents. Through the first round of the levelling-up fund, £16 million is being invested, and there is much more of that £4.8 billion fund to come My hon. Friend will be acutely aware that the landmark and historic borderlands growth deal is helping both sides of the border—those in Cumbria and in southern Scotland. It is helping with projects such as the upgrade to Carlisle railway station and creating 5,000 new well-paying jobs. In total, I think it is bringing £452 million of fresh investment into Cumbria, Northumberland and southern Scotland The different funds are doing a lot, but there are also national programmes recognising the central importance of the connectivity issues that my hon. Friend raised—they have the potential to transform the economy of some rural areas—and addressing them. That is exactly why we did the £1 billion deal with mobile network operators. He talked about sharing masts, and that is exactly what we will be doing through the shared rural network. In Cumbria, the deal will mean that 4G coverage from all mobile network operators will rise to a minimum of 88%, up from 73%, and coverage from at least one network will go up from 94% to 98%. We are starting to close off those notspots that he correctly identified. Through Project Gigabit and our £5 billion investment, we will also be connecting broadband across Cumbria and driving up high-quality coverage My hon. Friend has been a brilliant champion on all these issues—he raised so many of them—but I am conscious of time and the need to bring my remarks to a close. He raised devolution and the future of local government in Cumbria. In the levelling-up White Paper we alluded to the prospect of a devolution deal for Cumbria, which is an exciting prospect that we can use to address many of the specific issues that he raised in this important debate My hon. Friend’s fundamental thesis is completely correct: we must have a levelling-up agenda that works with the grain of what is going on locally. When we go to Cumbria, we see its beauty, all the things that are fantastic about it and the new investment, but we are also conscious that, for many people, it is an area of low pay and one with a need for more high-quality jobs and new opportunities to learn and progress. He has been the most fantastic champion across all those issues and I look forward to working together with him as we drive them forward Question put and agreed to.