Contribution
My Lords, the amendments in this group focus on one central theme: ensuring proper scrutiny, transparency and accountability in how the powers granted under this Bill are exercised. These amendments are about ensuring that, as we build a powerful new framework for tackling public sector fraud, we also build in the right checks, balances and reporting duties, not only for Ministers but for the departments, banks and public bodies that will have to deliver the regime day to day.
The first of these amendments to Clause 38 would require that the outcome of any consultations held before making regulations on deduction orders be laid before Parliament before those regulations come into force. That is a reasonable step. Clause 38 already obliges Ministers to consult such persons as they consider appropriate, but, as things stand, there is no requirement to publish the results of explain how the Government have responded to the views expressed. This amendment simply ensures that Parliament can see the evidence and feedback underpinning any regulatory change. Banks and financial institutions will be at the forefront of implementing these powers: their experience and operational insight will be vital. Parliament should therefore be able to see what those institutions have said, what works, what does not, and what the likely impact of proposed changes will be before new rules take effect.
Alongside that sits our amendment requiring that any future regulations under Clause 38 be accompanied by an impact assessment covering the projected costs and effects on banks and financial institutions. As we have said throughout the passage of the Bill, the partnership with the financial sector must be one of collaboration, not imposition. An impact assessment is not an obstacle: it is a basic instrument of good governance. It ensures that decisions are informed by evidence, that burdens are proportionate and that Ministers, Parliament and industry all have a shared understanding of the practical consequences of what is being proposed.
Our third amendment, after Clause 64, would take that principle one step further. It would require the Minister, within 12 months of these provisions coming into force, to conduct a review of the administrative and compliance costs imposed on the banks by this Bill, including staffing, reporting and opportunity costs. This is about fairness and being realistic. We are asking the financial services sector to play a major operational role in this new system: to respond to information notices, process deduction orders and help recover public funds. That is legitimate for the purposes of the Bill, on which all noble Lords broadly agree, but it comes with a cost. Parliament has a right to know what that cost is and whether it is being managed proportionately and effectively.
At a higher level of oversight, our next two amendments would introduce annual reporting requirements. The first would require the Minister to publish an annual report on the use of the powers conferred under Part 1 of the Bill, setting out how often they have been used, in what context and with what results. This is about shining a light on the operation of the regime itself, how these new powers are working in practice, how effective they are in recovering public money and how proportionately they are being exercised.
The second would require an annual report on the overall extent of public sector fraud: a single, authoritative assessment of the scale and nature of the problem across government. The Public Accounts Committee, the National Audit Office and indeed the Government themselves have all acknowledged that the current picture is fragmented and inconsistent. Without reliable data, it is impossible to design effective policy, measure progress or target resources where they are most needed. An annual report would help close that gap, improve accountability and ensure that both Parliament and the public can see whether we are making headway against the problem.
None of these proposals is designed to delay or frustrate the Bill. We are not seeking to divide the House on these amendments. What we seek is assurance that the Government recognise the importance of these issues, that the machinery of the Bill will operate transparently, that Parliament will be kept informed and that those upon whom these duties fall will be treated fairly and proportionately. They are therefore constructive and common-sense measures. They would strengthen parliamentary oversight, improve the evidence base for future policy and help ensure that the strong powers created by the Bill are matched by equally strong safeguards and accountability.
I hope, therefore, that the Minister will reflect on these proposals in that spirit and that, as the Bill proceeds, the Government will bring forward their own commitments to embed these principles of transparency, consultation and reporting in the way that these powers are used. I beg to move.