Georgia Gould MP: speeches

Speeches

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  I will start by talking about clauses 64 and 65, and then I will address the amendment. It is absolutely necessary that there is appropriate independent oversight to ensure the powers in the Bill are used appropriately, and we welcome debate on that. That is why we have introduced the power to appoint an independent person, which might be one person—an independent reviewer—or an organisation such as His Majesty’s inspectorate of constabulary and fire and rescue services. They will augment the existing oversight structures laid out elsewhere in the Bill, such as the role of the Independent Office for Police Conduct, set out in clause 9, which will investigate the most serious complaints into the PSFA’s use of entry, search and seizure powers. Clause 64 mandates that an independent person appointed by the Minister undertakes reviews of the use of powers in the Bill. The independent reviewer will conduct reviews to consider whether the exercise of the powers is in keeping with the legislation, codes of practice and relevant guidance. They will produce a report of their findings for the Minister, including any recommendations they deem appropriate. The Minister is then required to publish the report and lay it before Parliament. That ensures there is both public and parliamentary accountability in the role of the independent person outlined in the Bill. As we state in the explanatory notes, we intend to make the duty imposed by the clause in two ways. First, the Government will commission His Majesty’s inspectorate of constabulary and fire and rescue services to inspect the PSFA’s use of the new investigative powers, which can include the end-to-end investigative process and decision making. HMICFRS has a long-standing history, going back to 1856, and it independently assesses and reports on the performance of police and fire and rescue services in the UK, as well as other public bodies with investigatory powers, such as His Majesty’s Revenue and Customs. HMICFRS reports are already made available publicly, and are an efficient way to hold bodies accountable for their investigative practices. Secondly, the Government are creating a new position for an independent reviewer to whom the PSFA’s oversight team will report. The independent reviewer will assess how the PSFA exercises the powers given to it in the Bill. The independent reviewer will carry out reviews and report on whether the use of the powers is in keeping with the legislation, codes of practice and relevant guidance, as well as considering areas where HMICFRS or other oversight bodies have not already reported. The independent reviewer could, for instance, consider live case reviews or conduct supplementary reviews between those undertaken by other bodies, or look specifically at how the PSFA has taken forward recommendations from past reviews. The independent chair will have discretion in determining where to focus their resources. We do not believe it is necessary to legislate in the manner proposed by the amendment to ensure parliamentary scrutiny. Parliament will scrutinise the independent person’s report, which the Minister is obliged to lay in Parliament. There is also an established process for agreeing posts that should be subject to pre-appointment scrutiny by Select Committees without the need for legislative provision. That process is to reach agreement on posts suitable for pre-appointment scrutiny between my Department and the Chair of the relevant Select Committee. We will be following that process for the appointment of the independent chair. We hope that offers assurance to the hon. Member for Torbay. The appointment of the independent reviewer will also fully comply with the governance code on public appointments which is overseen by the Commissioner of Public Appointments.

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  The clause is essential in protecting specific information, preventing potential harm to individuals and upholding ethical standards in situations where unauthorised sharing could cause damage. The clause ensures that the powers adhere to current data protection legislation by safeguarding data from misuse, damage and unauthorised access. It also ensures that a person’s legal professional privilege rights are protected. The clause safeguards an individual’s rights and prevents them from being forced to provide information that could incriminate them. Amendment 3 is necessary to clarify that this power applies to all processing of information, and to provide consistency with clauses 67(1) and (2). It would replace “disclosure, obtaining or use” of information with “processing”. It would create no additional effect and ensures clear comprehension that clause 67(3) applies in relation to all processing of information.

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  The powers in the Bill are conferred on the Minister, but they will be exercised by officials specifically authorised by the Minister and termed “authorised officers”. The clause is an essential element of the legislation. It sets out the decisions that, if not made by the Minister personally, may be undertaken by an authorised officer only: deciding to give an information notice; deciding to give a recovery notice; deciding to make or vary a direct deduction order; deciding to make or vary a deduction from earnings; deciding to give a notice of intent to impose a civil penalty; and imposing a civil penalty. Furthermore, the clause details some fundamental safeguards on the use of the powers. First, to be appointed as an authorised officer, the individual must be employed in the civil service within the Cabinet Office. That is to ensure strict control over who may use the powers. The clause also defines who may conduct internal reviews, a protection offered widely in the Bill. Any internal reviews must be undertaken by an authorised officer at least one grade senior to the officer involved in the initial decision, or by the Minister. That ensures that officers cannot review their own decisions when challenged for an internal review. Authorised officers form the backbone of the Government’s approach to taking the powers. The officers will need to complete a rigorous bespoke training programme, which will cover all aspects of investigative practice, including the relevant powers under the Police and Criminal Evidence Act 1984 for authorised investigators. That will be to the same standard as for other public bodies using the same powers. Only after the training conditions have been met will an individual be put forward to the Minister for authorisation to act as an authorised officer and then may use the powers. Their use of the powers must follow strict processes, guidance and codes of practice. They will be subject to internal and external independent oversight of their use of the powers. The clause is essential, as it provides a statutory gateway for PSFA officials to use the powers under the Bill. Without the clause, the Government’s intention to improve counter-fraud enforcement would either be impractical, or the powers would be given to more individuals than is absolutely required. I commend the clause to the Committee.

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  I beg to move amendment 3, in clause 67, page 36, line 10, leave out “disclosure, obtaining or use” and insert “processing”. This amendment clarifies that clause 67(3) applies in relation to all processing of information and makes it consistent with clause 67(1) and (2)).

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  The clause creates potential for the Public Sector Fraud Authority to be established as an arm’s length statutory body, as defined in schedule 2. It contains provision for the establishment, constitution and operational framework of a new statutory body called the Public Sector Fraud Authority. It enables the transfer of the functions conferred on the Minister by the Bill to the new PSFA, and other practicalities. The policy intention is not to commence the provisions for the independent PSFA immediately, but at a later date once a review of the effectiveness of the use of the powers has been undertaken. Providing the ability to establish the PSFA as a statutory body allows for future flexibility in how the Government conduct their counter-fraud activities. However, the decision to establish the PSFA as a new arm’s length body should not be taken lightly, nor should any decision to create a new statutory body. The Government have assessed the case for doing so immediately and decided that it would be disproportionate at this time to do so, but that will be kept under review. The PSFA is running a pilot enforcement function. There are a relatively small number of staff and cases, so we judge that turning the PSFA’s limited enforcement function into an arm’s length body would be disproportionate at this time, given the significant cost and administrative burden involved in the short term. The Government intend to focus instead on ensuring that the powers conveyed in the Bill are bedded in effectively and the oversight is strong, so that the PSFA’s valuable work can benefit immediately from the additional investigative tools and debt recovery powers the Bill enables. The Government will review the position on the PSFA as a statutory body once a suitable amount of time has passed to fully understand the required scope and scale of such a body. Schedule 2 ensures that, at the appropriate juncture, the Government will have the tools needed to create that body. It provides precise detail on constitution, make-up and remuneration of a board. It enables the PSFA to appoint staff. Remuneration, pensions and other payments shall be determined subject to the approval of the Minister. Furthermore, the schedule imparts a duty on the PSFA to exercise its functions effectively, efficiently and economically. It allows for the PSFA to authorise a member of the PSFA, their staff authorised for that purpose, or a committee or sub-committee to exercise its functions. The independent PSFA must prepare a report on the exercise of its functions for the financial year, to be sent to the Minister. The Minister must lay the reports before Parliament and publish them. The Minister may create appropriate transfer schemes for assets and liabilities to enable the independent PSFA to exercise its functions. The schedule also provides a regulation-making power to transfer the powers conferred by the Bill to the new body. The schedule allows the Minister to amend part 1 of the Bill and other existing enactments amended by part 1. This is to ensure that part 1 of what will be the Act is fit for purpose when the PSFA is established as a statutory body. The Minister may make regulations that enable the Minister to give the PSFA general or specific directions regarding the exercise of its functions. This would allow the Minister to guide the PSFA’s strategic priorities to align with Government priorities, or to direct the PSFA’s future structural changes, for example.

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  Clause 68 sets out how the powers in part 1 of the Bill variously apply or do not apply to the Crown, to Parliament and to the King and his estates, and in circumstances of grounds of national security. The clause sets important boundaries on the scope of part 1. As such, it is essential that it stands part of the Bill. The clause ensures that the Crown is bound by specific powers and provisions in the Bill. It applies in relation to premises used or held on behalf of the Crown —for example, a building owned by a Government Department—in the same way as any other premises. For instance, an authorised investigator could, if necessary, apply to a court for a warrant to enter, search and seize evidence from Crown premises. However, it does not bind the Crown in respect of some powers, specifically those in clauses 16 to 37, relating to recovery orders and recovery from bank accounts, and chapter 5, relating to civil penalties. If it did, the effect would be the Crown recovering money from itself or imposing a penalty on itself that it would pay to itself, simply moving money within its own accounts. Subsection (4) creates a power for the Minister to certify that it appears appropriate in the interests of national security that the powers of entry conferred by this part should not be exercised on Crown premises specified in the certificate. Authorised investigators could not seek a warrant to enter those premises to search for evidence. This carve-out exists because there are certain Crown premises where searching may compromise national security. It is important that this is respected. In that event, the PSFA would discuss with the relevant Department or agency what alternative approach may be possible. Finally, the clause states that the power of entry conferred by this part cannot be exercised on His Majesty’s private estates or premises occupied for the purposes of either House of Parliament. The King’s private estates are those held by His Majesty as a private person. This does not mean the Crown Estate—the sovereign’s public estates, which are managed by the Crown Estate commissioners on behalf of the Crown. In the incredibly unlikely event that evidence suggested that it was necessary to search the King’s private estates or either House of Parliament, the PSFA would request to be invited by the appropriate authority, which would be the Speaker or the Lord Speaker in the case of this House and the other place, respecting the privileges of Parliament. Clause 70 is the interpretation clause, which sets out the meaning of terms used in part 1. I do not propose to run through the whole list of terms. Many of them are straightforward and refer back to previous clauses we have debated, but some are important to understand the scope of this part or are used in a novel way. I will say a few words about them so that the Committee can understand them in the correct context. The first term is “authorised officer”, which we covered in clause 66. In this part, authorised officer has the meaning given in clause 66, which as we have already seen says that they must be employed in the civil service in the Minister’s Department. This means that other types of public sector workers, such as consultants or contractors, cannot be authorised officers, which is a safeguard on the use of the powers. The clause defines “fraud” as including “the offences in sections 1 and 11 of the Fraud Act 2006…and…the offence at common law of conspiracy to defraud.” The Committee will recall that we discussed this in the debate on clauses 1 and 2, and I can repeat the assurances that I gave then. The definition sets the scope of fraud in relation to the core functions of a Minister in clause 1, and it covers the three main fraud offences: fraud by false representation, fraud by failing to disclose information and fraud by abuse of position. It also covers the common-law offence of conspiracy, which requires that two or more individuals dishonestly conspire to commit a fraud against a victim. Together, these give the scope needed to tackle the key forms of public sector fraud. The clause defines “public authority” as “a person with functions of a public nature so far as acting in the exercise of those functions”. This sets out the scope of the Departments, bodies and agencies that the PSFA would be able to work with and on behalf of. The definition is deliberately wide to enable the PSFA to tackle public sector fraud wherever it may arise. It will allow the use of powers to investigate fraud against all central Government Departments and agencies—except HMRC and the DWP, because they already have existing powers—as well as local government and any arm’s length delivery mechanisms that deliver functions of a public nature. The clause defines “suspected fraud” as “conduct which the Minister has reasonable grounds to suspect may constitute fraud”. We discussed this definition in the debate on clause 3. Reasonable grounds to suspect is an objective test meaning a belief based on specific evidence that a reasonable person would hold. It is not just based on the investigator’s own subjective opinion. It is a reasonable test that asks, “Would an ordinary, reasonable person”—like you or me, Sir Desmond—“being in possession of the same facts as the investigator, agree that it was reasonable to suspect that fraud had occurred?” This is a common standard to initiate an investigation. Finally, beyond the definitions, the clause clarifies references to “giving a notice or other document” and sets out how court proceedings are considered to be finally determined. The clause is essential to ensure the correct understanding and interpretation of key terms used throughout part 1 of the Bill. Clause 71 states that all regulations under this part should be made using statutory instruments. This ensures a structured approach to the regulatory framework. The clause allows for the creation of different types of provisions, such as consequential, supplementary, incidental, transitional or saving measures. This flexibility helps to adapt regulations to various circumstances. The affirmative procedure requires that the regulations be approved by both Houses of Parliament, which ensures that there is oversight and accountability. The negative procedure allows regulations to be implemented promptly, but they can still be annulled by either House of Parliament if necessary. The option to convert regulations from the negative to the affirmative procedure ensures flexibility in response to the significance of particular regulatory provisions. Clause 71 is essential for establishing a coherent and responsive regulatory framework in the legislation. By mandating the use of statutory instruments, it promotes a structured process that enhances accountability and keeps the regulatory system transparent.

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  I am grateful for those questions. As I set out, the code of practice provides additional guidance and operational detail, but the important thing is that the key safeguards we have discussed are covered in a great deal of detail in the Bill. We have gone through the right to appeal and the level of the authorised officer who will be looking at every part of the process, whether that is the initial decision or the review. We have discussed the timeframes, all the appeal routes that are built into the legislation, and the oversight. The key safeguards to the operationalisation of these powers are in the Bill in a great deal of detail. It is right that I went through the kind of operational detail that the code of practice will cover. To hopefully offer some reassurance on the questions of consultation and precedent, in developing the code of practice, we are building on a great deal of precedent within Government—from the DWP, the Home Office and His Majesty’s Revenue and Customs—on the use of these powers and what has worked well. There is already a huge amount of consultation, at ministerial and official level, on developing the code. There will be a public consultation on it as well, and, as we have already committed, we will bring forward the code of practice within the parliamentary process. Question put and agreed to. Clause 62 accordingly ordered to stand part of the Bill. Clause 63 ordered to stand part of the Bill. Clause 64 Independent review

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  This legislation is underpinned by robust oversight and layers of protection for individuals and businesses. Safeguards have been put in place to ensure that there are sufficient opportunities for individuals and businesses to make representations, request internal reviews of decisions and appeal to the relevant courts. Every opportunity will be provided to ensure that no one is penalised unfairly or in error. Clause 60 is an important final safeguard that ensures that everyone has the right to appeal to an independent court or tribunal should they disagree with the PSFA’s final determination. Per clause 14(b), once an appeal is made, recovery measures may not be exercised until after the appeal is heard and completed. The clause includes a delegated power that allows the Minister, by regulation, to make further provisions about appeals. The regulations are subject to the negative procedure. Crucially, the Minister is not given the power to remove the right of appeal; instead, the Minister may amend the clause simply to make the appeal process more efficient—for example, by allowing an appeal against a penalty or debt to be heard at the same time.

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  It is a pleasure to continue to serve under your chairmanship, Sir Desmond. A priority when designing the Bill was that its powers be sufficiently balanced by strong oversight and transparent safeguards to protect the vulnerable and guard against human error. Rightly, a large number of the questions from the Committee have probed that. Clause 56 is a key part of that design. It ensures that certain steps must be taken and assured before a penalty may be issued; these steps cannot be rushed, skipped or subverted. As I have confirmed, the application of these powers will be strictly limited to specifically authorised officers within the Public Sector Fraud Authority, as set out in clause 66. To exercise the powers, these officials will be required to comply with the relevant training and qualifications, as set out in the relevant codes. They will be subject to both internal and external oversight, including scrutiny of training. Further safeguards are embedded throughout the legislation for civil penalties. These include the right to make representations in clause 56, the ability to request an internal review in clause 57, and the ability to request an appeal to an appropriate court in clause 60. Additional details of the safeguards will be set out in a code of practice published before the first use of the civil penalty powers. I will give some detail of what will be in that code of practice when we discuss the later clauses. Clause 56 is essential because it holds the PSFA and this Government accountable, ensuring that the safeguards are not only explained to the public but maintained and reviewed by independent oversight. Clause 57 ensures that a penalty decision notice must be issued before a penalty is imposed, and provides an essential safeguard by giving individuals access to a review and sufficient time for it to be carried out. Powers of review will be available only to authorised officers within the PSFA who are appropriately trained. Penalties are a key part of the deterrent message that this Government wish to send by delivering the Bill. Fraud will not be tolerated, but it is not enough to simply recover money lost to fraud and error. A clear message must be sent that fraudulent actions have consequences. Clause 58 is essential to ensure that the PSFA enforcement unit acts with transparency and is held accountable for its decisions. It is also an essential safeguard for the individuals and businesses that it will deal with, as it provides a right of review and a chance for decisions to be challenged. As part of the process, the penalised person will have the opportunity to request a review of the penalty and state why it should not be imposed; a person may contest the level of the penalty. During review, a penalty will not be imposed, per clause 57(3). If a person is not satisfied with the result of a review, they will have the opportunity to appeal the outcome to an appropriate court, per clause 60. Reviews will be carried out by an authorised officer of higher grade than the authorising officer who made the original penalty decision, as stated in clause 66(3). This is yet another safeguard that ensures a fair review of the penalty.

• 6 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Seventh sitting) · Hansard source

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  I would indeed have been disappointed if the shadow Minister had not had lots of detailed questions for me on the operation of the powers. I agree wholeheartedly about the importance of safeguards. To take the questions in turn, we are confident of the legal robustness of the Carltona principle. It is how Government routinely works, and we are confident that the powers can be exercised by highly trained authorised officers. As the shadow Minister says, 28 days is a minimum. There are no plans at the moment to introduce a maximum, but the intention is for the team to work as quickly as possible to recoup public money. As we have discussed, there might be exceptional circumstances where people need more time, and the authorised officers will be able to provide that time on a case-by-case basis, always bearing in mind the need to return money that is owed because of fraud. We will talk shortly about the oversight and review process, but we want a separate team outside the PSFA that is answerable to an independent reviewer. It could look at the wide range of cases and ensure there is consistency and that powers are used proportionately. It could report to Parliament, so there would be ongoing scrutiny of the exercise of the powers. It is important to remember what will have taken place by the time we get to a penalty. In order to establish the recovery of a debt, if the individual did not agree, the matter will have gone to court. An authorised officer will have reviewed the case and submitted to a senior member of the team the rationale for a penalty to be imposed. There are a number of routes of review. The first is a review by another authorised officer of a higher grade in the PSFA team. If the individual is not satisfied with that, they will, as the shadow Minister set out, have the ability to apply to a court or a tribunal to have that reviewed. There are robust safeguards built in within the PSFA and outside the PSFA. Question put and agreed to . Clause 56 accordingly ordered to stand part of the Bill. Clauses 57 to 59 ordered to stand part of the Bill. Clause 60 Appeals

• 6 Mar 2025 · Topical Questions · Hansard source

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  I thank my hon. Friend for raising this critical issue. The Employment Rights Bill will introduce new measures that will give staff and their chosen trade union a meaningful shot at gaining statutory recognition. I hope those provisions will ensure that GMB Union members across the country can have their voices heard in their workplaces.

• 6 Mar 2025 · Topical Questions · Hansard source

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  The Government take the security of critical national infrastructure extremely seriously. The UK’s national technical authorities, including the National Protective Security Authority, the National Cyber Security Centre and the UK National Authority for Counter-Eavesdropping, already provide expert guidance and best practice to owners and operators of UK critical national infrastructure, including on risk assessments and supply chains. I am happy to meet my hon. Friend to discuss this further.

• 6 Mar 2025 · Topical Questions · Hansard source

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  It is critical that Government property and Government assets support economic growth in constituencies, including that of my hon. Friend, and I would be delighted to meet her to discuss that further.

• 6 Mar 2025 · Topical Questions · Hansard source

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  I know how hard my hon. Friend works for his constituency, and I very much understand his concerns. My understanding is that there are no changes expected at the Smedley Hydro site in the first instance. The Government Property Agency is actively working with the Home Office and NHS Digital to understand the future workforce requirements, but I would welcome a conversation to discuss that further.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  With permission, Mr Speaker, I will answer questions 4, 7, 11, 12, 13, 17 and 20 together—while the rest of the ministerial team go and have a cup of tea. The wide-ranging interest in this topic shows just how much the £400 billion spent on procurement in the public sector matters for growth and for communities across the UK. I was recently in Grimsby, where small businesses are delivering local growth, innovating and providing more than half of local employment. MPs know that SMEs are vital for providing local employment in their communities. Under the previous Government, however, we became overly reliant on large consultants and a small number of big companies. We have too often ended up locked into expensive, poor performing contracts, with companies able to drive up prices in closed markets. That has to change. The new national procurement policy statement asks the public sector to maximise procurement spend with small and medium-sized enterprises, and the Government are leading the way by setting ambitious public targets for Departments on spending on SMEs.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  I really welcome this question. It is so important to small businesses that they are paid on time—I have heard time and again that late payments threaten their very existence. The construction playbook states that project bank accounts “should be used unless there are compelling reasons not to.” We are determined to crack down on late payments. We have announced regular spot checks on prompt payments throughout our supply chains, and in the Budget the Chancellor said that the Government will be required to exclude suppliers from bidding for major contracts if they cannot demonstrate that they pay within an average of 45 days. I welcome my hon. Friend’s work on this matter, and I very much enjoyed meeting her to discuss it. I know that she has built a wide coalition, and I hope we can continue to work together on these important issues.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  I very much welcome these questions— I could happily speak about procurement all day, because it is absolutely critical for delivering the Government’s missions. The Procurement Act 2023 removes some of these challenges, but we need to do more. That is why we are setting ambitious and stretching targets for direct spend on SMEs and have asked officials to review our framework contracts, in particular, to ensure that they are more accessible to SMEs. The challenges raised by businesses in my hon. Friend’s constituency are the same as those I have heard described by SMEs across the country—our procurement is too complex and too slow, and it needs to change. We need to get that £400 billion into real jobs and SMEs in our communities.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  It is brilliant to hear about my hon. Friend’s leadership in supporting small businesses and the work they are doing in her constituency. We are absolutely determined that SMEs should have that fair crack. The new national procurement policy statement asks us to maximise spend with small businesses. It also sets stretching and transparent targets for each Department, which will be brought to the House. We will be held to account for delivering on them.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  I wholeheartedly agree. My hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn) took me to a similar farm in her constituency that had been set up by an ex-prison officer. I have to say that it was one of the most enjoyable visits I have had—it was great for my mental health to feed some alpacas and goats. I have heard powerful stories about how social prescribing has changed lives, from ending chronic loneliness to helping individuals such as a man I met recently, who had found his first stable home in his 50s. The new NPPS specifically asks contracting authorities to maximise spend with voluntary sector organisations, and we will be introducing targets for Government on spend with voluntary sector organisations and social enterprises. The Government have listened to concerns from local authorities and are working to implement changes to allow them to reserve competitions for low-value contracts for local organisations.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  I thank the right hon. Gentleman for his question. I look forward to spending another day with him in the Public Authorities (Fraud, Error and Recovery) Bill Committee later. I have regular discussions with the Crown Commercial Service on a range of issues.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  We have been absolutely clear that there are huge opportunities for AI to support the public sector to better personalise services and save money, but we have to keep up with the speed of innovation in how we buy. I have heard from SMEs specialising in AI and digital transformation that the way we are doing procurement is too slow and too inflexible to keep up with that pace. That is why I am working with the Minister for AI and Digital Government, my hon. Friend the Member for Enfield North (Feryal Clark), to set up a new digital commercial centre for excellence to make sure that that changes, and that we have the best innovation from my hon. Friend’s constituency and across the country in Government.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  That is such an important question. We need to deliver value for money in how we do procurement. One change that we made in the new national procurement policy statement is ensuring that contracting authorities procure collaboratively, crack down on some of the excessive costs of private frameworks and ensure that they are transparent. We are using AI to streamline procurement, and have set up a new commercial innovation challenge at the heart of government to ensure buying supports innovation and growth.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  There is so much young talent in Ipswich and in communities across the country, but too many young people are struggling to get on to the employment ladder, and we know the scarring impact that that can have on their lives. We need to ensure that the £400 billion spent on public procurement means something in communities such as Ipswich. We are streamlining how we measure social and economic value so that there is a very clear ask that is linked to our missions, including the opportunity mission, to deliver jobs and skills to young people out of work. We are asking those who win Government contracts to advertise in local jobcentres so that people in Ipswich and communities across the UK can benefit from Government contracts.

• 6 Mar 2025 · Public Procurement: Support for SMEs · Hansard source

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  As soon as I saw my hon. Friend’s name on the Order Paper, I knew that he would mention buses, because he has never missed an opportunity to raise this critical issue with me. The Government are absolutely committed to supporting the UK’s domestic bus manufacturing industry and ensuring that the procurement system recognises the high standards and quality of UK manufacturers. The new national procurement policy statement aligns with our industrial strategy and pushes us to maximise spend with SMEs. As a result, contracting authorities across the country must now consider how their procurement strategies can support the industrial strategy, including the bus manufacturing strategy.

• 4 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Fifth sitting) · Hansard source

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  First, I want to make absolutely clear that I was not accusing the hon. Member of any fraud, but just using a hypothetical. In that instance, the PSFA would use the lump sum direct deduction orders, so they would be able to take the full amount. They would not need to use the direct earnings attachment. It would be a lump sum direct deduction order that would recover that money. As I said, there are no limits to that, except that it does not cause hardship in meeting essential living expenses. I hope that provides some reassurance. The 40% maximum limit is in line with existing legislation. The amendment seeks to remove the 40% cap for fraud, allowing a higher percentage of regular deductions to be made. To be absolutely clear, for lump sum direct deduction orders, there is no maximum limit on the total amount of deductions. However, the lump sum deduction must still adhere to the core principles, in meeting essential living expenses and be otherwise fair. That ensures that where a higher proportion of the payable amount is present in the account, we can recover the debt more efficiently while maintaining those key safeguards. We are also able to issue a lump sum direct deduction order and then establish a regular direct deduction order. That allows us to take an initial higher amount of deduction, with regular payments thereafter where appropriate. This is a better route than allowing for a higher level of deductions. It builds on established practice, is proportionate while still being impactful, and it limits the disincentive to earn that an unlimited regular deduction would create. A too-high regular deduction would disincentivise earnings so strongly that it would result in slower, not faster, recovery of funds for our public services. I turn to clause 22, which sets out the amount of deductions that there may be under an order. We have ensured that the amount of debt we collect at any given time is fair. That is why we established maximum limits based on whether debt was accrued due to fraud or error. We have discussed the safeguards and precedent at length, and the powers here build on precedent across Government. A key consideration throughout the creation of the debt measures was to robustly prevent hardship, learning from best practice. The challenge was to balance that with the need to send a strong deterrent message to those who have the means to pay their fraud and error-related debt to Government, but refuse to do so. Clause 22 caters for that by ensuring that the terms of the order will not cause the liable person, any other account holder, or a person living with or financially dependent on the liable person or any other account holder, hardship in meeting essential living expenses. To ensure we include other considerations outside of this list, the terms of the order are also required to be otherwise fair in all circumstances. Clause 23 provides the contents and effect of direct deduction orders. Regular and lump sum direct deduction orders must specify the amount, or a method for calculating the amounts, to be deducted and when. A regular deduction may specify different amounts or different methods to be deducted at different times. For example, the first deducted amount may be higher than the following payments to recover the debt in the most efficient way possible. Deductions may not be made until 28 days after an order has been made. That provides a safeguard for the liable person, allowing them the requisite time and opportunity to request a review under clause 45. Banks must comply with the direct deduction order, whether regular or lump sum, to ensure adherence to these measures. A penalty may be imposed for failure to comply under clause 53. Clauses 22 and 23 send a strong message to those with fraud and error-related debt to the Government, while preventing hardship and protecting those who are vulnerable. They play an essential role in the operation of a direct deduction order and align with the core principle of seeking the effective recovery of public funds. I have set out the powers that are available under the Bill, but as I said earlier, they do not prevent the Government also being able to use powers that are already available, such as applying to the courts to seize assets. Having outlined the key provisions in clause 22 and 23, I commend both to the Committee.