Liam Byrne
MP for Birmingham Hodge Hill and Solihull North · Labour · United Kingdom
“The loss of 4,000 jobs at Jaguar Land Rover is a body blow for workers, families and communities across the west midlands, so I commend Richard Parker, the Mayor of the West Midlands, for moving quickly on Monday to put £500,000 on the table to help ensure that everybody gets back to work.”
“I wholeheartedly welcome this well-rounded statement from the Foreign Secretary, and put on record my thanks to the new Prime Minister for the hard yards that I know he has put in over recent days and weeks.”
“I am grateful to my hon. Friend for giving way, and I offer my warmest congratulations to her on her appointment to the role; she will be a brilliant Minister.”
“Let me start with a word of thanks to my hon. Friend the Member for Chester North and Neston (Samantha Dixon), who is not in her place, who said quite rightly that an awful lot has changed since the Bill was first introduced to this House. Indeed, a lot has been revealed over the course of the summer.”
“The effect of new clause 34 would be to ban off-ramping, ban new forms of digital currency transactions and ban memecoins, which are exactly the kind of measures that Ministers now need to bring forward. If we want to take the crypto system out of political finance, this is what we need to do.”
“No doubt we will learn that Mr Cottrell was in fact on the electoral register when that money was passed. No doubt we will discover that his mother, Fiona Cottrell, declared and did not disguise the fact that the money had ultimately come from her son.”
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Every one of 5,360 lines we hold for Liam Byrne, in date order, each linked to its source. Free to read, in full, without an account. Page 20 of 108.
“Yes, it is a gap in the Bill. Thomas Mayne : Absolutely, and many thanks for bringing up the case. As you mentioned, none of the authors had any say in the matter and we did not think it was justified, as the evidence we put in the report is entirely accurate. This is a perfect opportunity for some kind of anti-SLAPP legislation to be put in the Bill. Dame Margaret spoke at a recent debate with David Davis; some other examples were given there. If we do not put it into this Bill, will it just be mothballed and we miss our chance? Meanwhile, more journalists are being threatened, and a lot of information is not being put into the public domain because of the threat of a SLAPP. The Bill is related to transparency, as you say, so is there an opportunity to put that sort of measure in the Bill?”
“Does the Minister understand the depths of the rage of commuters in Birmingham and the west midlands that a company that is incapable of running a train service has just been rewarded with a six-month extension? Surely he can see that Avanti, having treated the public like fools, is now treating him like a fool, because all that it is seeking to do is maximise its profit for the next six months before the inevitable happens and the contract folds. He should get a grip and end this chaos now.”
“Was it the right response to that poisoning to fix a meeting with a former intelligence agent of the KGB—a meeting without officials, minutes, or any report to this House of what the hell happened?”
“According to intelligence reports that I have seen, a serving FSB officer reported in 2017, “Aleksandr Lebedev is considered by the FSB to be an important asset”. More recently, he has significantly expanded his businesses in occupied Crimea; pleaded with the Kremlin for economic help for occupied Crimea; and was revealed as the indirect owner of a company called Energomash, which supplies the Russian nuclear programme. How is it possible for the Prime Minister to stay in office if he is conspiring with an agent of the Russian state?”
“I commend the all-party groups for the publication of their economic crime manifesto. I draw the House’s attention to the Foreign Affairs Committee’s contribution to the debate—our report published last week. The conclusion that we reached, which is set out clearly at paragraph 14, is a pretty damning indictment of where we have ended up: “The Government’s unwillingness to bring forward legislation to stem the flow of dirty money is likely to have contributed to the belief in Russia that the UK is a safe haven for corrupt wealth.” The ecosystem of wealth managers, lawyers, PR merchants, bankers and estate agents who enabled Putin’s kleptocrats have contributed to the strength of Putin in Russia and therefore to the prosecution of war in Ukraine—that is the conclusion that the Foreign Affairs Committee came to last week.”
“I thank the hon. Member for Thirsk and Malton (Kevin Hollinrake) and my right hon. Friend the Member for Barking (Dame Margaret Hodge) for bringing this debate to the House and for all their work in bringing together the superb set of proposals in the economic crime manifesto. It is an important debate for us to have, even on a day like this, for the simple reason that at the heart of every autocracy, every dictatorship and every tyranny is corruption. Those who enable that corruption enable dictatorship, tyranny and autocracy. Our country led the industrial revolution and is a proud hub for the global financial services industry. Just as we once destroyed slave trading around the world, it is imperative that we destroy economic crime around the world in the 21st century. That is why the debate is so important.”
“There is therefore an expectation that when the Government draw together the provisions of economic crime Bill 2, they will look at the economic crime manifesto, the Foreign Affairs Committee’s report and the text of this debate.”
“Exactly. My hon. Friend is absolutely right. I will quickly run through five parts of the economic manifesto that have to be at the core of the next economic crime Bill. One of the virtues of having this debate today, at this moment of great flux in our politics, is that I hope to put on the record the cross-party consensus that now exists about the provisions that need to go into economic crime Bill 2. Many of us argued for a long time for the first Bill, which was rushed through the House in record time for obvious reasons. Many of the amendments that improved the Bill came from participants in this debate. What we are saying to the Government today, through the good offices of the Minister, is that the Bill did not go far enough—it did not begin to touch the scale of the problem.”
“Friend the Member for Barking for initiating the debate.”
“He has a criminal record in Russia., and according to intelligence sources that I have seen, he is “absolutely dependent on the FSB”. However, he is also a significant donor to the constituency of Esher and Walton, the home of—I am not quite sure what position he is in at the moment, but he was Deputy Prime Minister last time I looked. The donation that went to the Prince of Wales’s charity was returned, but the Conservative party has not returned its donation. We are not in a good situation when we are having to discuss this kind of money coming into political parties, and I therefore hope that the future economic crime Bill will ensure that the only money that can come into a political party is from profits that have been created here, in this country. Let me end by again thanking the hon. Member for Thirsk and Malton and my right hon.”
“It is not a good situation for any of us when we have to raise concerns of this kind in the House, not least because we in the House will make mistakes. During a debate on 17 January, for instance, I said that Yuriy Lopatynskyy had questions to answer. I am glad that he has now answered those questions, and has given me reassurances that he has never had links with the Russian intelligence services. I am glad to be able to accept those assurances, and to apologise to him for any distress caused. However, it is not a good situation when we do not have regulators, intelligence agencies and police services that are able to tackle this kind of dirty money. Dmitry Leus, I am afraid, is another example. There is clear knowledge of his recruitment by the FSB, who got him out of prison.”
“The New York Times recently revealed the way in which money came from his father-in-law to Mr Sheleg as a result of business activity in Russia—that was in the suspicious activity report—but when a number of us reported it to the National Crime Agency, the NCA just said, “Well, it has come from the bank account of a UK citizen; nothing to see here.” That is nuts, not least because there is now further evidence that Mr Kopytov is closely linked to business in occupied Crimea, and that money from that Crimean business went into Mr Sheleg’s account in 2018. Worse than that, Mr Sheleg’s father-in-law is now closely connected commercially to Alexander Babakov, who has been sanctioned by countries all over the world.”
“It is a matter of tremendous regret that more than £7 million of the £54 million that has gone to the Conservative party in high-value donations has come from individuals with very suspect links to Russia. Ehud Sheleg, who has been discussed in The New York Times , is deeply connected commercially with his father-in-law, Mr Kopytov.”
“We need to think about creating tough obligations on enablers, on company directors and on politicians in this House and the other place to declare anything that is suspect or corrupt. We almost need a suspicious activity reporting regime that allows us to prosecute people for failing to disclose things that they should be disclosing. That needs to carry a sanction which leads to civil proceedings for confiscation of assets. Unless we find a way of onshoring these offences, we will continue to be bedevilled by the problem of getting hold of the evidence that we need. Out in the world, people are asking why on earth this place has not acted on economic crime. It is understandable that people should draw a connection between the flood of dirty money into our politics and our failure to act.”
“We need to double, at least, the budget for the National Crime Agency. We need to match, at least, the money that the private sector puts into law enforcement. We need to take steps to reduce the costs, which is the only way to start getting unexplained wealth orders through. In America they would love the power of unexplained wealth orders, but we have had to explain that they are currently useless because we just cannot prosecute them successfully through the courts. On top of that architecture, we need to create one further set of offences to tackle the problem that in cases of corruption, the evidence that our agencies need is not carefully organised and filed away in Britain; it is offshore in jurisdictions where it is not available to us. When we cannot onshore the evidence, we have to somehow onshore the offence.”
“We then need to ensure that the regulator is in place. The argument about needing a better Companies House has been well rehearsed; it is just crazy that the “know your customer” provisions that bite on so many commercial organisations do not bite on Companies House, so it is recording directors with names like Mickey Mouse, and in some cases not recording directors at all. I fully agree that we need criminal liability for directors as a third set of provisions. The hon. Member for Thirsk and Malton is absolutely right to sketch out the parallel with the Health and Safety at Work etc. Act, which requires people to identify the harms of which their organisation may be guilty and put provision in place to prevent those harms from happening in the first place. Prevention is always better than cure. We obviously need to transform enforcement.”
“Our Committee has heard that loud and clear, not least in New York last week, where our excellent consular team pulled together a wide-ranging discussion for us. Lots of banks, law firms and so on are saying, “Look, we are spending all our time running platinum-plated processes, but without sieving the information intelligently and focusing on the 0.01% of reports to which we really should pay some attention.” My hon. Friend the Member for Hammersmith (Andy Slaughter) has drawn attention to the way our courts are being used to shut down journalists, which is the third piece of the puzzle. We need courageous journalists to speak the truth; we cannot use English courts to shut them down, as is happening in London. There are some changes that we need to make to ensure that we have good information and intelligence.”
“The hon. Gentleman is absolutely right. The joy of the Minister’s position must surely be that Members of this House have done the heavy lifting for him. Between us, we have sketched out a pretty comprehensive catalogue of measures for the Bill: we have not quite put the clause numbers in, but I think we have set out most of the measures. Those measures have to start with information about the crime. That is why we need the whistleblower provision, because whistleblowers are so often the source of intelligence, and it is also why we have to reform the suspicious activity reporting regime. Not only does the regime need widening so that it bites on more organisations such as estate agents but we have to find a way of pooling the intelligence that comes from suspicious activity reports and focusing on where we think the harm is greatest.”
“I add my congratulations to the Secretary of State on her new appointment. I serve the most income-deprived constituency in the country, yet I am very proud that my constituency sent more children to university than any other constituency in the west midlands last year. In an interview earlier this year, she said that many of the degrees that those students study were Mickey Mouse degrees. Which degrees was she referring to?”
“I am grateful to the Chair of the Select Committee, who is making a brilliant speech. Does she agree that it is in Britain’s interests to use multilateral institutions, rather than to simply donate bilaterally, because that multiplies the impact that we can have?”
“I am grateful to the right hon. Gentleman, my neighbour, but I disagree with him on this point. With the International Monetary Fund, for example, where we have collectively issued $650 billion of special drawing rights, it would have been sensible for the UK to have stepped up and provided some leadership, sharing a much bigger fraction of the £19 billion we have been given. That would have encouraged the rest of the G7 to follow suit, and the G7 is about one third of the SDR issuance.”
“Three years later, at Bretton Woods, President Roosevelt, welcomed delegates from 44 countries from around the world with these words: “the economic health of every country is a proper matter of concern to all its neighbors, near and distant.” As we begin to think about what the new world looks like, those are wise words to guide us.”
“In the midst of a big war, in 1941, the Atlantic charter was signed, and its story is extraordinary. Our Prime Minister at the time, Mr Churchill, was on the other side of the Atlantic with President Roosevelt and the draft of the charter was sent to Downing Street. Clement Attlee was in the Chair and he convened the Cabinet at two o’clock in the morning in order to review the draft and make one vital change. He added article 5, which said that one of our war aims would be that the victors would “desire to bring about the fullest collaboration between all nations in the economic field with the object of securing, for all, improved labor standards, economic advancement, and social security”.”
“The point is that the debt in many of these countries is about to fall over and the G20 common framework process, which we have held up as the great saviour of debt sustainability, has been so successful that precisely zero countries have engaged in it. So it ain’t working and we need a different approach. We could be restructuring developing country debt using IMF and World Bank resources. The World Bank has just committed $170 billion to an emergency programme that we could be using to restructure the debt of vulnerable countries around the world—right now we are simply not doing that. If we do not want to live in a world where China is the lender of last resort to countries around the world, let us use the Bretton Woods institutions that we set up in 1944 to avoid that dilemma.”
“We are not going to lead the mobilisation of this effort if the politicians in charge at the helm are, frankly, in such a shambolic state. So my message to the Minister and the new Administration is: please get a grip of this enormous new resource that we have been given. My final point is, in part, inspired by what my neighbour the right hon. Member for Sutton Coldfield (Mr Mitchell) said about China. For some years now, we have been having a debate in this country and among our allies about the influence of China and this vexed, significant issue of debt diplomacy. If we look at the countries that did not support the UN resolution on Russia, we see that, on average, they owe five times more debt to China than the countries that supported the resolution. As for whether that is a coincidence, you be the judge.”
“So we are miles away from mobilising the $100 billion that was promised at the G7, and people are going to starve this year unless we get a grip. So my call on the Government today is to give us a good explanation for why we should not be sharing three quarters of the special drawing rights we have been given; why we are not leading a global effort to get to that $100 billion target; and why we are not insisting on more flexibility, such as giving the SDRs to multilateral development banks, such as the African Development Bank, which could be making such an impact on the ground. We need to be saying to the IMF that countries do not need to participate in a conditionality programme with the IMF in order to receive some of this money. I discussed that with the Secretary-General of the UN and we both agree on it.”
“They do not have a grip on sharing back and rechannelling some of the biggest assets and resources available to us. The point about multilateralism, which my right hon. Friend the Member for Leeds Central (Hilary Benn) and my hon. Friend the Member for Rotherham (Sarah Champion) mentioned, is fundamental. Last week’s G7 communiqué made a very clear statement that G7 leaders want to step up the mobilisation of $100 billion, but the truth is that, of the G7 countries, we have made a commitment, Japan has made a commitment and the French have made a commitment. Congress has blocked the President of the United States sharing $21 billion, and we do not yet have information from the IMF on the others—I checked yesterday.”
“The Government have so much grip on this topic that, when I asked the Foreign Secretary at last week’s Foreign Affairs Committee how much had actually come in through the special drawing rights, she did not know. She literally did not know that Her Majesty’s Government had just been handed £19 billion, which is twice the aid budget. I then prosecuted the argument and asked, “What is your target for sharing? How much are we supposed to share back?” She answered, “I don’t know.” I asked the Prime Minister the same question this week, and he did not know either. They could perhaps be forgiven if the numbers were not so big and if the crisis were not so serious, but this is absolutely crazy. We have a global crisis and the Government are simply not in control.”
“This is a slightly technical issue, but our SDRs go into something called the exchange equalisation account, which was set up in 1979 and underpins currency stability in this country. It has been restocked with £74 billion over the last 10 years to a level that the Treasury deems to be capital adequate, about £154 billion or $185 billion in total. We have restocked the exchange equalisation account and then, from left field, comes another £19 billion that we did not forecast and that we do not need because we have already restocked the account. Why have we suddenly decided to share just 20% of it? There is no logic for that percentage.”
“In fact, the special drawing rights coming to G7 countries total about $196 billion, which is about a third of the special drawing rights that have been issued. Where are those special drawing rights? Where is the deployment of that resource to tackle this crisis of food fragility and finance? Right now, those SDRs are gathering dust in the vaults of central banks and treasuries around the world. They are just sitting there. We have failed to mobilise that resource in the way we promised when we signed off on the commitment to issue the special drawing rights in the first place. The UK is a big shareholder that helped to found the International Monetary Fund, so we have been given £19 billion of special drawing rights. We have made commitments to share back about 20%. Why is 20% the magic number? We have just been given £19 billion.”
“Frankly, countries and agencies such as Russia and the Wagner Group are already perpetrating barbaric human rights abuses in Mali, Libya, Syria and another 18 countries around the world. This crisis of food fragility and finance will not sort itself out, which is precisely why this is such an appalling time for the Government to make their aid cut. My second point is a particular interest of mine, which is that the Government’s negligence is all the worse because they are not using the new tools they have been given. Last year, under Kristalina Georgieva’s leadership of the International Monetary Fund, the global community took the collective decision to mint $650 billion-worth of special drawing rights. Overwhelmingly because of the quota system, those special drawing rights go to richer countries like us.”
“Governments around the world are out of headroom on taking the fiscal measures needed to alleviate this coming crisis. More and more developing countries now denominate their debt in dollars rather than domestic currency, which means they are super-exposed to rising interest rates in the United States. Average interest rates on lower-income debt are up by about 77 basis points this year, and we now know that something like 12 countries around the world are already on the brink of debt distress. We already see unrest in some countries in Africa, and we see the consequences of the debt crisis in Sri Lanka. Things will become far worse this year unless we get our act together. Of course, the problem is most acute in countries that are fragile and where there is violence.”
“He is fighting tooth and nail for the deal to try to get tens of millions of tonnes of grain out of Ukraine and Russia and, crucially, tens of millions of tonnes of fertiliser out of Russia. If we fail in that task, the spike in food prices that we have seen over the last year will get worse. Even more seriously, if we do not get the fertiliser out in the next few months, we will jeopardise not just the wheat harvest for next year but the rice harvest for next year. We will begin to see up to 1 billion people face a food crisis if we do not make progress on that deal. People were already in a bad position because of covid, and they are in a bad position because of inflation, but it has now deteriorated substantially because of the crisis in Ukraine.”
“Many people here today have said that that decision could not have come at a worse time. The right hon. Member for Sutton Coldfield (Mr Mitchell) was among those who made that point, and he is absolutely right. We now have a crisis of food, fragility and finance that means that 200 million people around the world are facing a food emergency. We know that 60% of workers are still not earning what they did before the covid crisis, but we now have millions of people living almost in famine conditions and 200 million people who will face famine later this year unless things change. Things will change over the course of this year, but they will change for the worse. Just a week or two ago, I was with the Foreign Affairs Committee in New York and we were privileged to see the NATO Secretary-General.”
“Like everyone who has spoken in this debate, I very much hope that the new Administration will look hard at the arguments we have made today and seek to reverse the appalling policy, the appalling cut and the appalling breach of trust represented by the slash in our aid budget. I want to supply three thoughts for today’s debate. The first is that at the heart of it is the simple truth that when the world needed us to step up, we stepped back. We stepped away from our obligations, we stepped away from our duties and we stepped away from our promises. Those promises were enshrined when we signed up to SDG2 and made a commitment to end hunger. Not only has breaking our promise to help to supply the finance for that destroyed trust in our country around the world, but people will die this year as a result of that broken promise.”
“Let me declare my interest, at the outset of this debate, as the chair of the international parliamentary network on the World Bank and the International Monetary Fund. I congratulate the Chair of the Select Committee, my hon. Friend the Member for Rotherham (Sarah Champion), on bringing this debate to the House. Her timing, as ever, is impeccable. All of us here in this Chamber are watching the disintegration of the Government in real time, so in a way this debate is important because it is taking place at a hyphen moment between an Administration that are biting the dust and the construction of the new Administration that will no doubt take shape over the days and weeks to come.”
“The World Bank has just mobilised $170 billion of emergency response to the current crisis, but the first question everybody I have spoken to in the World Bank over the last year is: why on earth has the UK cut its commitment to the World Bank when we could be using that to mobilise more money in the future?”
“I hope that the Minister may come on to not just the £10 billion of the aid budget, but the Government’s strategy on the £19 billion of special drawing rights.”
“I am grateful. Obviously, the debate in the House over the coming week is about the law-breaking Northern Ireland Protocol Bill. It is a matter of great concern to Members in all parts of the House that there is an appropriate inspection regime, especially of live animals crossing into Northern Ireland. How will the amendments the Minister is describing interrelate with that Bill?”
“I was relieved to see the G7 recognise that 200 million people now face starvation around the world, along with the pledge to mobilise £100 billion in IMF special drawing rights to help to alleviate the crisis. Last week, however, the Foreign Secretary could not tell us how much the UK has been given in special drawing rights nor what her target was for sharing them back—presumably because it was not on Instagram—so can the Prime Minister help us? Can he reassure us that all £19 billion of the UK’s new special drawing rights will be shared to help with this crisis in order to set a good example to the rest of the world?”
“My right hon. Friend is making a brilliant speech. Is he aware of comments by the US trade representative Ambassador Tai, from Speaker Pelosi and indeed from a host of our American allies in Congress? They have been very clear with us that there will be no US-UK trade deal unless there is a durable way forward on the Northern Ireland question. Not only does this reckless approach risk destroying relations with the EU, but it puts a deal with America at risk.”
“We want to see: multi-year whole place public funding—pooling budgets between the Department for Work and Pensions and others; a levelling-up zone that would give us tax increment financing, potentially for a new urban development corporation; net zero powers; support for early intervention and preventive work, particularly in health; an enhanced transport package that would allow us to see our metro built through East Birmingham; a lot more funding for schools and for skills; tailored employment support; and greater housing powers. We would love the Minister to meet a delegation from Birmingham along with the east Birmingham MPs in order to discuss this devolution deal in more detail. I am confident that we will also have the support of the Mayor of the West Midlands, too.”
“The potential is enormous, because of the new jobs that will be created by High Speed 2, but we have to make sure that we are not the oasis of inequality in between that wealth. That is why Bridgid Jones, the Deputy Leader of Birmingham City Council, has today written to Andy Street, the Mayor of the West Midlands, to ask that we make East Birmingham the key focus of the west midlands trailblazer devolution deal. We have a number of asks.”
“We have to take a Total Place approach to pooling public sending—crucially, Department for Work and Pensions spending, as well as that of Department for Education and Department for Business, Energy and Industrial Strategy. We should go further and create full-time regional Ministers in government and full-time regional Select Committees in this House. Crucially, we have to fix the gross imbalances in public spending that mean that spending per capita in London is 70 points higher than it is in the west midlands. Secondly, as chair of the East Birmingham Inclusive Growth Taskforce, I can say that East Birmingham is a city the size of Derby, that it is the land between the two high-speed stations, but that it is also the capital of Britain’s unemployment.”
“We will continue to fail until local regions have the power to set up radical university enterprise zones, like the Fraunhofer, to translate innovation into the private sector; regional banks; regional land trusts; and local commissions on skills and enterprise. However, there are a few steps we could take now to drive this forward. First, we have to take the 149 different local spending programmes which, together, have in them £65 billion, spread between eight different Departments, and put them into block grants for local areas. We have the most ridiculous centralisation at the moment as a result of having to bid against different criteria for 149 different programmes.”
“First, as a former Chief Secretary who drove through the Total Place initiative and someone who has spent 20 years working on devolution—as the Minister knows, there are centralisers and localisers on both sides of this House, and I am resolutely a localiser—I am convinced that the inequalities in this country will be impossible to eradicate unless we create the freedom for local regions to begin developing their own institutions. They should be robust enough to mobilise and co-ordinate the demand and supply sides of ideas and innovation, capital and investment and land, and crucially, to intervene in the labour market.”
“I think that what unites us across the House is an ambition to avoid the postcode where someone is born defining their possibilities in life. I think that that is something we share, but it is the reality for too many of the people we represent. We now live in a country where it takes five generations for the heirs of someone born in the lowest income group to rise up and even earn national average wages. That is a complete scandal. Social mobility has broken down in this country, and this Bill should have stepped up to address our ambition. I wish to say two things by way of my contribution.”
“Could the Minister say a word about how he will use the missions to drive the reduction of inequalities in our country? One approach that the Labour Government tried was the use of floor targets in neighbourhood renewal funds. He may have a different approach, but that detail is terribly important.”
“These are the datasets that train the algorithms that will be absolutely critical in co-ordinating drone swarms, running global surveillance systems, and creating mass information—through the mountains of contents that it is possible to create with artificial intelligence—to fire at the west a fire hose of falsehood to confuse us or, still worse, to divide us.”
“I am afraid I think there is a very real risk that this Bill will be out of date by the time our sovereign inks her signature on the parchment. What is well understood by the Americans and the Chinese, and I have to say by our intelligence services, is that artificial intelligence—not simply intelligence, but artificial intelligence—will be the key to the future of warfare and conflict between states. That is why both China and the United States are seeking to be the world leaders in artificial intelligence by 2030. It is also why the head of MI6 warned last year about the risk of countries around the world falling into data traps, because there is very real alarm that the huge datasets necessary to train the algorithms that power artificial intelligence are being exfiltrated from around the world.”